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HomeMy WebLinkAboutWATERLOO ADMINISTRATIVE PLAN WATERLOO ADMINISTRATIVE PLAN Voluntary Property Acquisition Funded Under the Hazard Mitigation Grant Program for DR-1763 CITY OF WATERLOO, IOWA ADOPTED BY THE WATERLOO CITY COUNCIL ON AUGUST 3, 2009 BY RESOLUTION NO. 2009-766 1.0 Background Information The City of Waterloo experienced substantial property damages as a result of the flood event in June of 2008. For the purpose of the City of Waterloo Hazard Mitigation Grant Program (HMGP) Property Acquisition project,the date of the flood event shall be June 10, 2008. On January 20, 2009, the City Council authorized the submission of an HMGP Property Acquisition application to the Iowa Homeland Security and Emergency Management Division (HSEMD) for the purpose of obtaining federal/state financial assistance under the Robert T. Stafford Disaster Relief and Emergency Assistance Act(PL93-288, as amended) and the Code of Iowa, Chapter 29C. This Administrative Plan is prepared in response to notification by the Federal Emergency Management Agency (FEMA) and HSEMD of an HMGP award for the voluntary acquisition of properties located within the City of Waterloo. A total of 88 properties, including 44 homes on 41 properties and 47 adjacent vacant lots, were approved by HSEMD and FEMA for possible acquisition. In order to add properties to the acquisition list, the Hazard Mitigation Grant Application must be amended by the City's Authorized Representative and reviewed and approved separately by HSEMD and FEMA. Aric Schroeder shall be the Project Manager and the City's Authorized Representative and will be responsible for administering the grant on behalf of the City of Waterloo. Funding for the acquisition program will be provided by HSEMD, FEMA, and the City of Waterloo. HSEMD will provide 10% State funding, FEMA will provide 75% Federal funds, and the Iowa Department of Economic Development (IDED) will provide the 15% minimum Local match through Supplemental Community Development Block Grant (CDBG) funds. Funding for demolitions may be provided through the National Flood Insurance Program's Increased Cost of Compliance Coverage, the State's Public Assistance Program, or the Hazard Mitigation Program. This outline of procedures was created to explain how the program will operate and be administered. The City is committed to making this program work as efficiently and quickly as possible so that the affected property owners may promptly make informed decisions regarding their property. 2.0 Voluntary Acquisition Program The funding for this program requires that certain conditions be met in order for it to be on a voluntary basis. Since this is a voluntary acquisition that is funded under the Hazard Mitigation Program, the City is exempt from following the processes and notices to owners required for acquisition by the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA). However, tenants will be provided assistance in compliance with the URA since relocation is involuntary to them. A voluntary acquisition program, in order to be exempt from URA, must make offers to purchase on a willing buyer/willing seller basis. That is, if the seller rejects the offer, the City will not pursue acquisition of the property by using its eminent domain powers. In addition, the City Waterloo HMGP Acquisition Administrative Plan Page 1 of 17 must not be purchasing the property for a known project. The City will use the same criteria for purchases in all cases for this program. All property owners must sign a voluntary participation statement submitted with the HMGP application. 3.0 The Property Acquisition Process 3.1 Valuation Methodology for Properties to be Acquired The City is using FEMA's Property Acquisition and Relocation for Open Space (44 CFR, Part 80) guidance by utilizing the pre flood fair market value of the property for this voluntary acquisition program. This value is based on the full assessed value of the property according to the County Assessor's records and other public information times a 1.2 multiplier, which equals 120% of the assessed value. The City is using the 2008 tax year assessment. Property owners who purchased the property after the 2008 flood event or property owners who are not a US National or qualified alien, each as defined by applicable federal law, will be offered fair market value (post flood) in accordance with Part 80. For property owners who purchase the property after the flood event (June 10, 2008), the purchase price shall be based on the price paid by such post-flood owner, plus documented costs of any approved flood repairs made by the post-flood owner. Property owners who are not able to certify that they are a US National or qualified alien will be offered the current (post flood) fair market value as established by an appraisal report prepared by a certified appraiser hired by the City. Such appraisals will be undertaken when it has been established that a property owner is unable or unwilling to certify that he/she is a US National or qualified alien. To verify eligibility for pre- flood market value, the City of Waterloo will utilize FEMA Form 90-69B, which requires the property owner to certify that a member of the household is a US National or qualified alien. The property owners are not under any obligation to sell their property to the City and they have an appeal process to permit other information, including independent appraisals, to be submitted for the City's consideration. 3.2 Community Priorities for Property Acquisition The City of Waterloo previously prioritized the acquisition of properties based on criteria established by the City Council. Initial buyout offers will be made in the order of how the properties were prioritized in the HMGP Property Acquisition Project application. 3.2 A Definition of Primary Residence A Primary Residence is defined as follows: The owner's or renter's principal place of residence. The owner or renter must have resided at the site at least six months plus one day out of the twelve months prior to the date of the flood event to be considered primary. This will be verified in order of preference by (1) homestead exemption on the property; (2) income tax returns; or(3) written certification signed by the owner or renter stating that the property is their primary residence or was their primary residence Waterloo HMGP Acquisition Administrative Plan Page 2 of 17 as of the date of the flood event. This definition is relevant to prioritizing the property for purposes of Section 3.2, and not for determining eligibility for benefits. 3.2 B Definition of Owner-Occupant Primary Residence An owner-occupant primary residence is defined as follows: The owner: 1. Holds title to the property with valid deed or valid real estate contract that pre-dates the flood event, 2. Continues to hold title to the property to the date of the City's offer to purchase, and 3. Will certify to having lived in the house as his/her/their primary residence as of the date of the flood event. This provision is relevant to prioritizing the property for purposes of Section 3.2, and not for determining eligibility for benefits. 3.2 C Definition of Investor-Owner An investor-owner is defined as follows: Holds title to the property with valid deed or valid real estate contract and did not occupy the unit as his/her/their primary residence as of the date of the flood event. The investor-owner shall provide the City with additional information as may be required by the City, including available information on any tenants. An investor-owner property could consist of an occupied rental, vacant dwelling, or secondary dwelling. 3.2 D Definition of Occupied Rental An occupied rental is defined as follows: The renter will certify to having lived in the house as his/her/their primary residence as of the date of the flood event. This definition is relevant to prioritizing the property for purposes of Section 3.2, and not for determining eligibility for benefits. 3.2 E Definition of Vacant or Secondary Dwelling A vacant or secondary dwelling is defined as follows: Any dwelling not meeting the definition of an owner-occupant primary residence or an occupied rental. Waterloo HMGP Acquisition Administrative Plan Page 3 of 17 3.2 F Definition of Vacant Lot A vacant lot is defined as follows: Any unimproved lot (including portions of a lot or combinations of multiple lots or parcels described by metes and bounds) lacking the development of a principal building (dwelling). For the purpose of the City of Waterloo HMGP Property Acquisition Project, a lot with accessory structures only (garages or sheds) and without a principal building shall also be considered a vacant lot. Vacant lots may be included if the vacant lots are adjacent/contiguous to a main structure that is being acquired, regardless if the vacant lot is not included on the same deed as the main structure. Vacant lots may also be included if the land of the lot is in different ownership than the accessory structure(s) or the principal building. Division by road shall not necessarily render a vacant lot to be considered non-adjacent/contiguous. 3.3 What Is To Be Acquired The City will acquire all land and improvements associated with the properties subject to this program. Any property that is suspected to have hazardous material after inspection will undergo a Phase I environmental site assessment. A clean site certificate would then be needed if the results of the Phase I ESA show contamination from hazardous materials. All clean up of any hazardous materials will be at the sole expense of the seller. Any owner wishing to participate in the buyout program will be required to sell all adjacent/contiguous property under his/her ownership or in which the owner has an interest capable of being conveyed. Accepted buyout offers must include the real estate on which structures are located and all adjacent/contiguous land owned by the same party, including vacant lots. 3.4 Pre-Acquisition Activities The City shall undertake a number of activities relating to each property prior to making an offer to purchase. Briefly,these activities are: 1. Determining pre-flood market value as described above in Section 3.1 "Valuation Methodology for Properties to be Acquired" and preparing a schedule of property values for all properties in the project. 2. Identifying the owners who want their property to be considered for acquisition. 3. After the property owner indicates interest in acceptance of the purchase offer, the City will work with FEMA and the Small Business Administration (SBA) to obtain information on the proceeds received through those agencies' programs for each property to determine duplication of benefits. The City will also obtain a Duplication of Benefit report from FEMA to determine deductions that must be made from the purchase price. Flood relief payments received as compensation for flood damages to the dwelling that cannot be shown to have been spent on flood repairs or other purposes authorized by FEMA shall be deducted from the buyout offer. Waterloo HMGP Acquisition Administrative Plan Page 4 of 17 3.5 Timing of Offers As promptly as possible after completion of pre-offer activities described above, the City will make offers to purchase to willing and eligible property owners. Offers will be presented in groups of a size that the City determines is administratively feasible, with groups of higher priority properties proceeding first. The timing of the presentation of offers for subsequent groups will be dependent on the timing of responses from the preceding groups. 3.6 Offer The City will make its purchase offers in substantially the same form as used with other City purchases of property and will include appropriate terms as provided by or required by the participating State and Federal agencies. Important policy elements of the offer are: 1. Purchase Price: The fair market value of the property as described in section 3.1 above. 2. Deductions from Purchase Price: As applicable, insurance proceeds for real estate damage, other public payments as determined by FEMA that represent a duplication of payment for the real estate, property taxes due and owing, and other payments required to clear special assessments, liens, judgments or title defects, will be paid prior to closing or deducted at the time of closing. The City will receive individual determinations by FEMA and SBA of the deductions or credits on FEMA and/or SBA funds already disbursed. 3. Offer Price: The purchase price less deductions from purchase price. 4. Closing and Possession: The City will not close and take possession of a property until the house is uninhabited by the seller(s) or tenants(s) and all personal property has been removed from the property. The seller must vacate the property prior to closing, or, upon approval, within seven (7) days of the closing, subject to satisfaction of insurance and indemnity requirements stated below. In order to accomplish this transfer of ownership and possession in a manner that does not place the sellers or the City in a position of financial risk or other liability, a process has been established to manage the acquisition by the City together with the move to a replacement housing location. After the City and the seller have executed the Offer to Purchase,the property has been inspected as needed, notices and meetings with tenants conducted and the deed to the property has been drafted, the closing documents will be held by the City or delivered to the closing agent to retain until the seller has purchased a replacement dwelling or has found other accommodations within 180 days of accepting the City's offer. When the seller has scheduled the closing for the replacement dwelling and arranged to move to that dwelling, City staff or the City's closing agent will coordinate the closing of the transactions such that the seller will move from the property acquired by the City concurrent with the closing. The seller must vacate the property prior to closing, but if requested in writing prior to closing, seller will be allowed an additional seven (7) days after the closing to vacate the property, but only if the seller provides (a) a Waterloo HMGP Acquisition Administrative Plan Page 5 of 17 certificate of insurance naming the City as an additional insured and providing for liability insurance in the minimum amount of $500,000 and (b) an executed document on a form acceptable to the City in which the seller agrees to indemnify, defend and hold harmless the City in connection with any claims of injury or damage arising from seller's post-closing occupancy of the property. The closing can occur when the title issues and other contract requirements have been satisfied. 3.7 Offer Form The City will present the offer to purchase in written form. An example of the form that will be used is attached- Purchase Offer Form. Essential terms and conditions in the form include: Property—A description of what, specifically, will be acquired. Purchase Price—The fair market value of the property as described in section 3.1 above. Deductions—Any deductions (or potential deductions) from the purchase price, including but not limited to duplication of benefits. Offer Price—The purchase price less deductions from purchase price. Closing Date — A mutually agreed upon date by the City and the seller to close on the property sale and purchase, or an agreed deadline by which closing must occur. Clear Title —The seller must, at its sole expense, provide clear and marketable title to all property interests being sold to the City's reasonable satisfaction before the closing can occur. The seller must convey title by warranty deed. For property interests consisting of rights in leased land, the City may also require that the seller convey title by bill of sale. Eligibility — The City must obtain a certification from the property owner that the property owner is either a National of the United States or qualified alien, each as defined by applicable federal law, before offering pre-flood market value for the property. Expiration Date — The City will allow fourteen (14) days from the date the offer is made for the seller to decide whether to accept. An acceptance will be deemed to occur only if all persons having an ownership interest in a property have indicated their acceptance in writing. The City will permit an extension of the expiration date, if requested in writing by the owner, up to an additional fourteen (14) days. It is the intention of the City to make as many offers as quickly as possible. Sellers will be reminded that if they do not want to accept the offer, they must let the City know as soon as possible. Offers not accepted by the expiration date, including approved extensions thereof, shall be considered to have been rejected by the seller. Additional extensions or exceptions may be approved by the City under extraordinary circumstances beyond the reasonable control of the seller. Waterloo HMGP Acquisition Administrative Plan Page 6 of 17 • Property Inspection — The seller will grant access to the City to inspect the flood damaged property for personal property, hazardous materials, etc. that must be removed prior to closing. Removal of Debris — The seller agrees to remove, at their own expense, prior to closing, all vehicles and vehicle parts, firewood, construction material debris, and other personal property located on the site. Relocation Outside the Floodplain — For owner-occupants and tenants, the seller is required to purchase or rent a decent, safe and sanitary housing unit within 180 days of acceptance of the City's offer that is located outside of Zone A, NFIP Flood Hazard map boundaries to be eligible for Replacement Housing Benefits. Subject to Approval of the City Council — The offer is subject to the City Council's approval of the form of offer and the specific offer terms for each property. 3.8 Appeal Process If, after the presentation of the offer, the seller believes the purchase price is incorrect due to factual errors and/or the lack of additional information directly relating to the value offered, the seller may utilize the appeal process as described below (for appeals affecting garages or common ground in the Sans Souci neighborhood, also see Section 14.0 of this plan document): The seller may appeal the purchase price after presentation of the City's offer to purchase and before the expiration date of the offer to purchase. No later than the offer's expiration date, the seller shall file a written statement of appeal, which includes the reason for the appeal, such as factual information and any other data that supports the reason for the appeal to increase the purchase price. The statement of appeal must be filed with the City's planning and zoning office on the second floor of city hall, 715 Mulberry Street, Waterloo, Iowa, 50703. Sellers are advised that an appeal of a purchase price will cause a delay in the acquisition process for a property. Whether or not the seller is eligible to receive pre-flood value for the property, the seller will assume the responsibility of securing an appraisal at the seller's sole expense from a certified appraiser who is not related to the seller or seller's spouse within the third degree of relationship by blood, adoption or marriage. Appraisals must be conducted in accordance with Uniform Standards of Professional Appraisal Practice (USPAP), and must have been completed after June 10, 2007. The Appeals Committee is not bound by any appraisal or the value shown therein. Sellers are hereby advised that the submitted appraisal and other documentation will be taken under consideration after the total project budget expenses are known and that any offer will be subject to City Council approval. The seller is NOT guaranteed that the appraisal price will be used to determine the purchase price and should anticipate that the City will not exceed its total project budget. Within 30 days of filing the written appeal statement, the seller must provide the appraisal report to the City for review, as well as any additional information requested to be considered in the appeal. The seller may submit a written request to the City for an extension of time not to exceed 30 days to allow additional time necessary to secure the Waterloo HMGP Acquisition Administrative Plan Page 7 of 17 • appraisal. In the case that the seller exceeds the 30-day period to obtain and submit the appraisal, or approved extension thereof, the purchase price set forth in the original offer will prevail. At its own expense, the City may choose to do a second (review) appraisal, but if the price requested in an appeal exceeds 130% of the assessed value (i.e., 10% above the purchase price of the original offer), the City will do a second (review) appraisal. A seller involved with multiple appeals for separate properties (such as one property with a dwelling on it and a second property that is a vacant lot or garage unit) may either submit separate appraisals or one appraisal that gives an itemized value for each and every separate property. If separate appraisals are used, no appraisal shall include the value for any property interest if the value of such property interest is also included in a different separate appraisal to be used in an appeal. The appeal and all related documentation shall be submitted to the Appeals Committee for review. The Appeals Committee shall consist of three individuals, including one member from the City Council who shall be the Chair, one member from the Planning, Programming and Zoning Commission or Board of Adjustment, and one member from the Planning and Zoning Department staff The Mayor shall appoint the members of the Appeals Committee and alternates. If a purchase price is appealed, the request will be set aside for review by the Appeals Committee, and acquisitions staff will move forward making offers to other sellers further down the priority list. When all documentation for an appeal has been submitted, the Appeals Committee shall, at the Committee's convenience, schedule a time at which the seller or any interested parties may be heard on the appeal. The Appeals Committee shall take all information presented into consideration and shall render a decision on the appeal within 30 days. The decision shall be made in writing and mailed to all seller parties. The Appeals Committee is charged with determining the fair market value of the property and for said purpose shall have discretion to: (1) determine that the original purchase price is the fair market value, (2) determine that the price requested in the appeal is the fair market value, or (3) determine a fair market value that is between the original purchase price and the price requested in the appeal. The Appeals Committee's determination of fair market value shall be the final purchase price. All purchase prices to be offered are subject to approval by the City Council. The Appeals Committee shall also have the authority to review and decide on such other disputes that may arise in connection with the City of Waterloo HMGP Property Acquisition Project, which shall utilize the same process described above. The Appeals Committee does not have authority to review or modify any duplication of benefits determination made by a federal or state agency. NOTE: If the City chooses to offer more than what the program funds will pay, the portion over the allowed amount will be the responsibility of the City, to be paid from other funding sources. 3.9 Final Offer At the conclusion of an appeal of a purchase price, the City will present in a written offer the final offer based on the purchase price as determined by the Appeal Committee less any deductions. The City will allow fourteen (14) days from the date the final offer is made for the Waterloo HMGP Acquisition Administrative Plan Page 8 of 17 seller to decide whether to accept. After such time, the offer shall expire. The City will permit an extension of the expiration date, if requested in writing by the owner and upon a showing of extraordinary circumstances beyond the reasonable control of the owner, up to an additional fourteen (14) days. Offers not accepted by the expiration date, including approved extensions thereof, shall be considered to have been rejected by the seller. 3.10 Process After Offer is Accepted If the property owner accepts the City's offer and the offer is approved by the City Council, the parties will proceed as follows: 1. The seller will provide the City with the property abstract of title. If an abstract is not readily available, then the City will obtain a new 40-year abstract. All abstracting will be at the expense of the City. 2. The City will review county records for property line discrepancies. It necessary a "mortgage"property survey will be ordered. 3. The City or an escrow agent that will function as the program's closing agent will be responsible for ordering the abstract work, issuing a title opinion,transmitting the title opinion to the property owner and providing sample forms of affidavits and releases. Upon receipt of the necessary title-clearing documents from the seller, the City or escrow agent will prepare a closing statement utilizing the HUD-1 Settlement Statement Form and other necessary closing documents, and will set up the closing. The City will undertake the required property inspections and prepare appropriate requisitions. 4. The City or escrow agent will not close the transaction and the City will not take title to the subject property until the property owner has found a replacement property, obtained an accepted offer on that property, is ready to close and take possession of that replacement property, and has removed all personal property from the flood- damaged property. The intention for this process is that the City wishes to arrange to take title to the flood damaged properties when the owner is ready to vacate and take possession of their chosen replacement property. Any personal property or fixtures left on the property after the seller has vacated the property, but within 14 days of the closing, will be deemed abandoned by the seller and will become the sole property of the City, without further consideration. 3.11 Process if Offer is Rejected If the property owner rejects the City's offer, or negotiations are otherwise terminated after expiration of an offer, the property owner's file will be closed and the property will no longer be eligible for inclusion in the Hazard Mitigation Grant Program for DR-1763. All funds targeted for the acquisition of the property will be "de-obligated" and redirected for other eligible grant program costs. Waterloo HMGP Acquisition Administrative Plan Page 9 of 17 4.0 Acquisition Staff The acquisition staff will present the offer in person or by mail and will be available to answer questions. After the offer is made, the Notice of Relocation Eligibility will be presented and City staff will inspect the property. 5.0 Contract Services The City shall hire a number of services to be performed on a contractual basis to assist in the acquisition program. The services to be contracted for, or that may be contracted for, include: 1. Title certificate and abstracts 2. Appraisals 3. Mortgage property surveys, if required, and/or property encroachment studies 4. Title opinions 5. Acquisition agent 6. Escrow agent/ Closing agent 7. Historical intensive level surveys, if required 8. Demolition and debris removal, including asbestos surveys and abatements, and monitoring 9. Relocation assistance 6.0 Debarred and Suspended Vendors Services will be procured in accordance with the Code of Iowa and the City's policies, as approved by the City Council. Contracts, bid documents, specifications and requests for proposals will be submitted for HSEMD and FEMA approval prior to beginning procurement activities. No contract will be awarded to a debarred or suspended vendor in accordance with 44 CFR § 13.35. 7.0 Property Management 7.1 Summary The City will undertake certain property management activities upon the acquisition of those voluntary-participating, flood-damaged properties that the owners choose to sell. It is the intention of the City to minimize its costs and risks in managing the properties when acquired. 7.2 Inspections The form of the Offer to Purchase provides that the City will have the right to inspect the premises once the seller accepts the offer. The purpose of the inspection is to determine if there are any hazardous materials on site, serious safety risks or unique fixtures to the property that the City would need to deal with upon its acquisition. A further requirement of the Offer to Purchase provides that the seller agrees to remove from the property, at their own expense and prior to closing, all vehicles, wood, construction materials, debris and personal property. The purpose of this provision is to ensure that the City is not Waterloo HMGP Acquisition Administrative Plan Page 10 of 17 burdened with the cost and risk of injury or expense of removal of the abandoned personal property. 7.3 Salvage The City retains the right to sell part or all of the structure, including component parts thereof, following transfer of title from the owner and prior to demolition, including the right to enter salvage contracts with third parties. Revenue from salvage will be considered program income and treated accordingly. Remaining salvage rights will be awarded to the demolition contractor. 7.4 Demolition The City will comply with the "Public Assistance Demolition Guide" that was provided by HSEMD for demolition completion. All acquired property will be returned to and maintained as greenspace. The City will manage the acquired land in accordance with 44 CFR § 80.19(b). 7.5 Program Close-Out Once the owners of all eligible properties have been contacted and acquisitions have either been completed or declined, a review of the files will be completed by staff following the clearing of all structures and fixtures from the acquired properties. Any program revisions that may have occurred will be noted in the Administrative Plan and all files will be kept in accordance with the City's standard file policies and procedures. The City will coordinate a final project and grant closeout meeting with HSEMD. At completion of the grant activities, the City shall provide the following to FEMA through HSEMD: • A photograph of the property site after project implementation • A copy of the recorded deed and attached deed restrictions • Latitude and longitude coordinates for each property 8.0 Relocation Assistance 8.1 Overview The Relocation Assistance portion of this document will describe the City's provision of relocation assistance for the properties that are purchased. Benefits will be made available as described below. 8.2 Funding Sources The City will be utilizing federal, state, and local funding in order to provide relocation benefits for properties that are actually acquired. Waterloo HMGP Acquisition Administrative Plan Page 11 of 17 8.3 Relocation Assistance Program for Owner-Occupants The voluntary nature of this program does not obligate the City to provide relocation benefits. However, the City has opted to provide relocation benefits to owner-occupants of a primary residence who accept the City's offer to purchase their flood damaged residential property. These benefits will help the owner-occupants secure replacement housing. It is anticipated that almost all owner-occupants will be able to use the relocation assistance as a major source of funds to purchase decent, safe and sanitary replacement housing outside of a 100-year special flood hazard area. 1. Eligibility — Owner-Occupants: In order to be eligible for owner-occupant benefits, the owner-occupant must: a. Accept the City's offer to purchase their primary residence. b. Meet the definition of owner-occupant. c. Purchase or rent a decent, safe and sanitary housing unit within 180 days of acceptance of the City's offer that is located outside of Zone A, NFIP Flood Hazard map boundaries. 2. Determination of Benefits: The City will provide two types of relocation benefits for owner-occupants: a Replacement Housing Benefit Payment and a Moving Expense Payment. The Replacement Housing Benefit is for the purchase or rental of a unit. A Notice of Relocation Eligibility explaining the specific benefits to the owner- occupant will be provided by the relocation staff after the City's offer to purchase the flood damaged property is presented. The seller will be asked to sign a receipt for the Notice. The Notice will contain a "180 Day Eligibility Provision" notifying the owner of the expiration date of the Replacement Housing Benefit. 3. Replacement Housing Payment/Purchase: The City will make a Replacement Housing Benefit Payment based on the owner-occupant's purchase or rental of qualifying replacement housing which is decent, safe and sanitary within 180 days from the owner-occupant's acceptance of the City's offer to purchase the flood damaged property. The payment amount of the Replacement Housing Benefit cannot exceed $10,000, and the specific amount is based on need as stated in paragraph 6 below. 4. Timing of Release of Replacement Housing Benefit Payment: The payment will be released only after the closing on the property the City is purchasing from the owner- occupant and at the closing on the replacement house or, in lieu of a purchase of replacement housing, after the owner-occupant has entered into a written lease agreement for rental of replacement housing. If a replacement unit is not secured within 180 days of the owner-occupant's acceptance of the City's offer to purchase the flood damaged structure, the relocation money will be de-obligated and made available for additional acquisitions. The owner-occupant may request an extension of the 180-day period to the relocation staff if he/she can show good reason as to why replacement housing has not been secured. Approval of extensions will be at the Waterloo HMGP Acquisition Administrative Plan Page 12 of 17 discretion of the relocation staff if enough time remains before the buyout project is closed out. A request for such an extension must be sent in writing to the City's relocation staff within the 180-day period following acceptance of the purchase offer. 5. Purchase of Replacement Housing Unit Before the City Makes Offer to Purchase: If an owner-occupant purchases replacement housing before the City makes its offer, the purchase is at the owner's risk. If the City then makes its offer to purchase the flood damaged property and the owner accepts, the replacement unit previously purchased must be outside of a 100-year special flood hazard area and pass a decent, safe and sanitary inspection to qualify for the Replacement Housing Benefit. Adjustments to the Replacement Housing Benefit, as described below, will be made as required. The Replacement Housing Benefit Payment will be made at the closing of the City's purchase and upon submission of a deed or other evidence acceptable to the City of the amount paid for the replacement housing unit. 6. Adjustments to the Replacement Housing Benefit Payment: If the replacement housing unit costs less than the combined total of the City's purchase price (before any deductions) and the Replacement Housing Benefit, the City will reduce the Replacement Housing Benefit so that the total of the City's purchase price and the Replacement Housing Benefit does not exceed the cost of the replacement housing unit. If the cost of that unit is less than the City's purchase price of the flood- damaged structure, the Replacement Housing Benefit will not be paid. For the purpose of computing a Replacement Housing Benefit payment, the cost of a replacement rental unit is calculated as the monthly rental fee times 42 months. For instance, the owner-occupant receives $30,000 as the purchase price of the flood damaged property (before any deductions) and qualifies for the $10,000 Relocation Housing Benefit Payment for a total of$40,000. The owner-occupant then purchases a replacement housing unit for $38,000; the City will provide $8,000 as the Relocation Housing Benefit Payment. If the replacement housing unit cost was $30,000 (the City's purchase price for the flood damaged property) or less, the owner-occupant would not receive a Replacement Housing Benefit. The owner- occupant would still be eligible to receive the Moving Expense Benefit. If the replacement housing unit costs less than the purchase price plus the Replacement Housing Benefit, but requires repairs to make it decent, safe and sanitary, the City will let the owner-occupant use the balance of the benefit, up to the actual or estimated cost of repairs to have those specific repairs completed. If the maximum Replacement Housing Benefit is not required to purchase the replacement dwelling selected by the displaced person, certain costs can be considered as part of the replacement unit's purchase price, for the purposes of this program only, when calculating the Replacement Housing Benefit payment. Eligible costs are those costs necessary to correct decent, safe and sanitary deficiencies and to make the replacement dwelling more comparable and functionally similar to the flood damaged unit the City is acquiring. Eligible examples of those items to make the Waterloo HMGP Acquisition Administrative Plan Page 13 of 17 replacement dwelling more comparable and functionally similar are a garage, an extra bathroom and handicapped accessibility that existed in the former dwelling. Excluded are the costs of a cosmetic nature, including general remodeling, carpeting, "updating", siding, window treatments and other items. The displaced person must provide satisfactory evidence of the construction costs of the functionally similar item(s) and a construction schedule which must be approved before the funds can be authorized for release. 7. Mobile Homes: The owner-occupant may purchase a mobile home and qualify for the Replacement Housing Benefit provided that the unit is decent, safe and sanitary. If the purchase price is less than the combined total of the City's purchase price for the flood damaged structure (before any deductions) and Replacement Housing Benefit, the City will reduce the Replacement Housing Benefit so that the total of the City's purchase price and the Replacement Housing Benefit does not exceed the actual purchase price of the mobile home and lot. See the adjustment example set forth in paragraph 6 above. If the mobile home lot is rented, the City will make a Replacement Housing Benefit payment that is up to the sum of (a) the lesser of actual lot rent for 42 months or $3,000, and (b) the cost of the mobile home. The total Replacement Housing Benefit paid for a mobile home and lot, whether purchased or rented, will not exceed $10,000. 8. Payment After Death: If an owner-occupant dies before receiving payment of a relocation benefit, the City will pay the approved benefit to a surviving spouse who was also an owner-occupant, otherwise to the heirs or assigns of the decedent, if the other family members were living in the flood damaged unit as of the date of the flood event and if they will occupy the replacement housing unit. The purchase or lease agreement on the replacement housing unit must have been accepted if the closing has not yet occurred. A moving expense payment will be made if there is personal property to be moved from the flood damaged structure. 9. Decent, Safe and Sanitary Standard: All owner-occupants receiving the Replacement Housing Benefit must relocate to housing units that are decent, safe and sanitary. The decent, safe and sanitary standard is similar to HUD Housing Quality Standards. The decent, safe and sanitary inspection is performed for program compliance purposes only and is not a certification or guarantee of the house's condition or of its major systems (such as heating, plumbing and electrical) that is intended for the benefit of the owner-occupant or other occupants. A qualified individual will inspect the items that are specifically listed in federal regulations at 49 CFR, Part 24. After the owner-occupant has an accepted purchase agreement for the housing replacement unit and has received the City's offer to purchase the flood damaged property, he/she is to call the grant administrator staff to schedule the decent, safe and sanitary inspection. The owner-occupant will also provide the name and phone number of the person who can provide access to the property. Waterloo HMGP Acquisition Administrative Plan Page 14 of 17 It may take several days for the actual inspection to take place. If the house is located outside the area, it will be necessary for the City to work with the nearest local public agency to schedule an inspection. When the decent, safe and sanitary inspection is made of the replacement housing unit, the inspector will provide a list of items that are violations. Many of the violations can be solved quickly and inexpensively and should not cause the sale to be lost. Common problems are missing hand rails, improperly vented water heaters, missing light switch cover plates and water heater drip legs, copper gas lines and exposed wiring. It is the responsibility of the buyer and seller to reach an agreement as to who pays for the required repairs. 10. Moving Expense Payment: In addition, the City will pay up to $850 as a Moving Expense Payment when the owner-occupant moves into a replacement housing unit. Provided that the owner-occupant meets the eligibility criteria set forth in the URA, the payment amount will be based on the URA Fixed Residential Moving Cost Schedule 2008. 8.4 Relocation Assistance Program for Tenants The City will provide relocation assistance in conformance with the URA in concert with the Robert T. Stafford Disaster Relief Act of 1974 provisions for tenants of the flood damaged property. The tenants of the flood damaged property are considered to be involuntarily displaced when the City accepts an offer to purchase the flood damaged property. Accordingly, the City will award tenant relocation benefits for eligible tenants in accordance with the URA regulations. 1. Eligibility: To be eligible for the Tenant Residential Relocation Benefits, the tenant must: a. Have been, as of the date of initiation of negotiations, a legal residential occupant of the flood damaged property for which the City Council has approved acceptance of the purchase offer. b. The tenant can prove evidence of the tenancy for a minimum of 90 days prior to the initiation of negotiations. c. Purchase or rent a decent, safe and sanitary replacement housing unit that is located outside of Zone A on NFIP Flood Hazard maps. 2. Determination of Benefits: The relocation staff will determine benefits in accordance with the URA and funding source requirements, which will not exceed $5,250 (unless housing of last resort provisions are utilized if approved by FEMA Region VII). 3. Replacement Housing Requirements: All tenants receiving the Replacement Housing Benefit must relocate to housing units that are decent, safe and sanitary that are located outside of Zone A on NFIP Flood Hazard maps. The decent, safe and sanitary inspection is performed for program compliance purposes only and is not a certification or guarantee of the housing unit's condition or of its major systems (such as heating, plumbing and electrical) that is intended for the Waterloo HMGP Acquisition Administrative Plan Page 15 of 17 • benefit of the tenant. A qualified individual will inspect, at minimum, the items that are specifically listed in federal regulations (49 CFR, Part 24). 4. Moving Expenses: In addition, eligible tenants are entitled to reimbursement for moving expenses according to the URA as described in the "Relocation Assistance and Advisory Services"pamphlet. 5. Notice to Vacate: No lawful occupant shall be required to move unless he or she has received at least 90 days advance written notice of the earliest date by which he or she may be required to move. 8.5 Relocation Staff Assistance For the owner-occupants participating in the voluntary acquisition program, the relocation staff will present the Notice of Relocation Eligibility in person or by mail after the City's offer to purchase is made. Relocation staff will work with identified tenants if and when investor-owners of residential properties accept offers to purchase made by the City. Relocation staff will present the "Relocation Assistance and Advisory Services" pamphlet in person or in the mail. Relocation staff will be available to answer questions at that time in person and on a phone basis, as needed. 9.0 Post-Settlement Transfer of Property Interest The transfer of an acquired property interest by the City will only be considered if the transferee meets the requirements stated in 44 CFR § 80.19(b). After acquiring the property interest, the City (including successors in interest) shall convey any interest in the property only if the FEMA Region VII Regional Administrator, through the State of Iowa, gives prior written approval of the transfer and the transferee. The transferee must be another public entity or a qualified conservation organization. A qualified conservation organization means an organization with a conservation purpose where the organization maintained that status for at least 2 years prior to the opening of the grant application period that resulted in the transfer of the property interest to the City, pursuant to §170(h) (3) and (4) of the Internal Revenue Code of 1986, as amended, and the applicable implementing regulations. The transferee must document its status as a qualified conservation organization, where applicable. Any request to convey any interest in the property must include a signed statement from the proposed transferee that it acknowledges and agrees to be bound by the terms of the original mitigation grant conveyance, 44 CFR Part 80 and Hazard Mitigation Grant Program programmatic guidance, and must reference and incorporate the original deed restrictions providing the notice of conditions. The statement must also incorporate a provision for the property interest to revert to the City or State in the event that the transferee ceases to exist or loses its eligible status as defined in 44 CFR § 80.19. 10.0 Monitoring Reporting and Inspection HSEMD and the City will work together to ensure that the property is maintained in accordance with land use regulations. Every 3 years, the City must submit documentation to the FEMA Region VII Regional Administrator, through the State of Iowa, certifying that the City has Waterloo HMGP Acquisition Administrative Plan Page 16 of 17 • inspected the property within the month preceding the report and that the property continues to be maintained consistent with the provisions of the grant. The State, FEMA and the City have the right to enter the parcel, with notice, in order to inspect the property to ensure compliance with land use regulations. 11.0 Future Federal Benefits After settlement of the property acquisition transaction, no disaster assistance for any property from any Federal entity may be sought or provided with respect to the property, and no flood insurance benefits for that property for claims related to damage occurring after the date of the settlement will be sought or provided. 12.0 Changes to the Budget or Scope of Work Any changes to the budget or scope of work will be accomplished in compliance with 44 CFR § 13.30, with requests made by the grant administrator. 13.0 Records Retention and Audit Requirements Records will be maintained for a minimum of three years from the date that HSEMD provides written notification to the City that the grant has been closed. Records retention must comply with 44 CFR § 13.26. Audit requirements will be in accordance with the Single Audit Act Amendments of 1996 and OMB Circular A-133 (provisions of June 1997). 14.0 Sans Souci Garages on Leased Land The City of Waterloo Hazard Mitigation Grant Program Property Acquisition Project Application includes a unique ownership situation in the Sans Souci neighborhood. The Sans Souci neighborhood consists of an island in the floodway of the Cedar River with a subdivision consisting of twenty single-family dwellings on lots, each individually owned. Each of the individual owners also owns an undivided interest in Sans Souci Association Inc. (SSA), which in turn owns a large portion of the island as "common ground" for the use and enjoyment of its members. A 5-acre parcel of common ground owned by SSA has multiple garage units located on it. Fourteen of these garage units are individually owned as buildings on leased land, and the remaining units are titled in SSA. The fourteen garage units are separately assessed and taxed to their individual owners. The HMGP requires that property be acquired by warranty deed, free and clear of any encumbrances, and that all structures on the property must be removed and the property maintained as greenspace. Therefore, for any of the Sans Souci garage units or the common ground parcel to be eligible for purchase through HMGP, 100% participation will be required by each and every garage unit owner and SSA. If any of these individuals or SSA does not accept the final acquisition offer, then none of these individuals or SSA will be eligible for purchase through HMGP. To ensure 100% participation, the City will require that the property interests be acquired simultaneously as part of a joint closing. The City will consider an appeal by any of the individual garage unit owners or SSA as an appeal by all, and an appeal shall not be accepted or processed unless an acceptable appraisal(s) is submitted in the form of(1) a single appraisal that gives an itemized value for each and every garage unit and the 5-acre parcel, or (2) a combination of appraisals that together gives an itemized value for each and every garage unit and the 5-acre parcel. Waterloo HMGP Acquisition Administrative Plan Page 17 of 17 CERTIFICATE I, Nancy Eckert, City Clerk of the City of Waterloo, Iowa, do hereby certify that the preceding is a true and complete copy of the Waterloo Administrative Plan for the Hazard Mitigation Grant Program (HMGP) 1763 Structural Acquisition Program as adopted by the Waterloo City Council on August 3, 2009. Witness my hand and seal of office this 4th day of August 2009. Nanc Eck t ity Clerk