Welcome to the
International Right of Way Association’s
Course 504
Computing Replacement
Housing Payments
504PPT.R4.2014.09.02.0.0
1
Introductions
Who we are…
What we do…
Where we do it…
How long we’ve been doing it…
Our goals for the course...
2
Objectives (1)
At the conclusion of the two days,
you will be able to...
• Understand better the processes involved in
computing various replacement housing
payments using realistic, complex situations
• Build on current knowledge and implement
better the Uniform Act provisions; specifically:
3
Objectives (2)
•
Recognize the importance of collecting the
pertinent information at the interview stage
•
Compute replacement housing payments
for less than 90 day occupants
•
Compute replacement housing payments
for 90 day occupants
•
Compute replacement housing payments
for 90 day homeowner occupants
4
Housekeeping
5
Schedule
Day 1
8:00 - 8:30
Introductions, Etc.
8:30 - 9:45
The Project
9:45 - 4:45
Rental Assistance Calculations
4:45 - 5:00
Recap Day One
Day 2
8:00 - 8:15
Recap Day One / Introduce Day Two
8:15 - 2:00
Price Differential Calculations for Owner Occupants
2:15 - 3:45
Other Replacement Housing Payment Calculations
3:45 - 4:00
Summary and Review
4:00 - 5:00
Exam
6
The Uniform Relocation
Assistance and Real Property
Acquisition Act
of 1970 and the Surface
Transportation and Uniform
Relocation Assistance Policies
Act of 1987.
49 Code of Federal Regulations,
Part 24, Uniform Relocation
Assistance and Real Property
Acquisition for Federal and
Federally Assisted Programs.
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8
Gregg and Betty Campbell
1. Does the comparable have to contain at least four
bedrooms?
2. Does the comparable have to be in the Hutchinson
School District?
3. Determine the Campbell’s base monthly rent.
9
Samantha (Sam) Collins
1. Discuss the various factors that determine the income (e.g., each source and
whether or not it should be included in the monthly total).
2. Calculate the income you will use to prepare the rental assistance payment
calculation.
3. Review the following subject dwelling grid and the only three similar dwellings
that are currently available for rent in the area. Choose which of the three rentals
you will use as your primary comparable (the one used to calculate the benefits).
Write a brief but thorough paragraph to the agency justifying why you chose that
dwelling and not one of the other two.
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Frank Carpenter
1. Calculate the base monthly rent you will use to
prepare the rental assistance payment.
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Mabel Chinsky, et al
1. How many households will be entitled to benefits
from this dwelling?
2. How does the daughter’s transportation issue affect
the relocation calculation?
3. Does Moses Hubble’s situation affect Mabel’s
calculation? (24.403(a)(5))
How many bedrooms must the
comparable have?
12
Steven Hamilton and
Sharon Cook
1. How many bedrooms is the comparable required
to have?
2. What income will you use when applying a
financial means test?
3. What would happen
if you knew in advance
that Sharon and Amy
intended to move to a
different replacement
than the others?
13
Gavin and Amanda Martin
1. What replacement housing benefits are
Gavin and Amanda eligible to receive?
2. Compute the rental assistance payment,
based on a comparable that rents for
$875/month plus utilities of $160/month.
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Day One Recap
We...
• Looked at the importance of collecting
the pertinent information at the
interview stage
• Spent most of the day working on a case
study and computing replacement
housing payments for less than 90 day
occupants and for 90 day occupants
1515
Day Two
Today, we will...
Compute replacement housing payments
for 90 day homeowner occupants
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Adam and Ashley Anders
1. What benefits should be calculated for the Anders?
2.If the offer has not been made, does the amount of
time required to calculate, review and receive
approval influence your answer?
3.How does Ashley’s partial
interest in the subject affect
the calculation?
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Adam and Ashley Anders
4. Must the comparable have three bedrooms? Why
or why not? Does the use of the dark room as an
income generator influence the comparable selection?
5. Under what logic might you select each of the
listings?
6. The recommended price
differential calculation
should be based on
Listing No. ___
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Adam and Ashley Anders
7. Calculate the price differential payment based
on Listing No. 2.
8. Based on your calculation, what must the
Anders spend to receive the maximum price
differential payment?
9. What happens if nothing D. S. S.
is available for the amount the
Anders must spend?
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Derek and Elizabeth Rush
1. The replacement housing payment
calculation should be based on Listing No. __
2. What factors did you consider most
important when making your selection?
3. How many bedrooms must the
selected comparable have to
calculate the price
differential payment?
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Derek and Elizabeth Rush
4. Calculate the maximum price differential
for the Rush family.
5. If this parcel went to eminent
domain and they received
$100,000 just compensation,
how does this effect the
maximum price differential
payment?
21
Veronica and Samuel Goldman
1. What would you look for in a comparable
from which to calculate the Goldmans’
maximum price differential?
2. The relocation agent could not find a
handicap accessible home. The agent received
the following contractor estimates:
Acme Remodeling
Able Home Repair
Fix It Quick
$5,800
$6,500
$7,500
Calculate the price differential for the
Goldmans.
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Veronica and Samuel Goldman
3. Would you present the Goldmans with a maximum
price differential that consisted of a single
relocation amount (based on a combination of the
price differential and the modifications) or two
amounts (one for the price differential and a
second for the modifications) or the price
differential plus paying for the actual cost of
modifications to the replacement?
23
Isaac and Ruth Spellman
1. Discuss the concept of major exterior attributes.
When should an item be carved out?
What are reasonable trade-offs?
2. Is the kitchen in the garage
or the alarm system an
“exterior” attribute? If not,
can they be carved out if
they are not contained in
any of the available listings?
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Jorge and Maria Gomez
1. The most appropriate is Listing No. __
2. How should you proceed?
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Jeff and Pamela Gordon
1. Determine the fair market value you would use
to calculate the price differential payment if the
agency did not offer to acquire the entire property.
2. Would the fair market value used in
the calculation differ if the agency
offered to acquire the entire lot and
the owner did not wish to sell?
Explain why or why not?
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Derek and Elizabeth Rush
Mortgage Interest Differential
A. Required Information
B. Development of Revised Principle Balance Figure
C. Development of Increased Interest Figure
D. Amount of Total Mortgage Interest Differential
Payment
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Isaac and Ruth Spellman
Compute the incidental expenses
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Objectives (1)
Now, you are able to...
• Understand better the processes involved
in computing various replacement housing
payments using realistic, complex
situations
• Build on current knowledge and
implement better the Uniform Act
provisions; specifically.
29
Objectives (2)
•
Recognize the importance of collecting the
pertinent information at the interview stage
•
Compute replacement housing payments
for less than 90 day occupants
•
Compute replacement housing payments
for 90 day occupants
•
Compute replacement housing payments
for 90 day homeowner occupants
30
Thank you!
504PPT.R4.2014.09.02.0.0
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