Document Anaheim_doc_c0b63d1530

Lincoln Family Apartments Project DRAFT RELOCATION PLAN Prepared for: JHC IHO Anaheim Housing Partners, LP 17701 Cowan Avenue Suite 200 Irvine, CA 92614 (949) 263-8676 Prepared by: Overland, Pacific & Cutler, Inc. 1 Jenner, Suite 200 Irvine, CA 92618 [PHONE REDACTED] June 4, 2014 ---PAGE BREAK--- TABLE OF CONTENTS INTRODUCTION 1 I. PROJECT DESCRIPTION 2 A. REGIONAL LOCATION 2 B. PROJECT SITE LOCATION 2 C. GENERAL DEMOGRAPHIC & HOUSING CHARACTERISTICS 3 II. ASSESSMENT OF RELOCATION NEEDS 5 A. SURVEY METHOD 5 B. FIELD STUDY DATA - RESIDENTIAL 5 1. Current Occupants 5 2. Replacement Housing Needs 5 3. Income 6 4. Ethnicity/Language 6 5. Senior/Handicapped Households 6 6. Preferred Relocation Areas 6 C. FIELD STUDY DATA – COMMERCIAL 6 1. Current Occupants 6 III. RELOCATION RESOURCES 8 A. METHODOLOGY 8 B. REPLACEMENT HOUSING AVAILABILITY 8 1. Residential Rental Housing 8 2. Summary 8 C. RELATED ISSUES 9 1. Concurrent Residential Displacement 9 2. Temporary Housing 9 D. REPLACEMENT COMMERCIAL SITES AVAILABILITY 9 IV. THE RELOCATION PROGRAM 11 A. ADVISORY ASSISTANCE 11 B. RESIDENTIAL RELOCATION BENEFITS 13 1. Residential Moving Expense Payments 13 2. Rental Assistance to Tenants Who Choose to Rent 14 3. Downpayment Assistance to Tenants Who Choose to Purchase 17 4. Determination of Comparable Housing 17 C. LAST RESORT HOUSING 17 D. COMMERCIAL RELOCATION BENEFITS 18 1. Payment for Moving and Related Expenses 19 2. Self Moves 21 3. Fixed Payment In Lieu 21 4. Personal Property Move Only (Storage) 22 E. GENERAL INFORMATION REGARDING THE PAYMENT OF RELOCATION BENEFITS22 F. IMMIGRATION STATUS 23 G. RELOCATION TAX CONSEQUENCES 23 H. PROGRAM ASSURANCES AND STANDARDS 24 V. ADMINISTRATIVE PROVISIONS 25 A. NOTICES 25 B. PRIVACY RECORDS 26 C. GRIEVANCE PROCEDURES 26 D. EVICTION POLICY 26 E. CITIZEN PARTICIPATION 27 F PROJECTED DATE OF DISPLACEMENT 27 G. ESTIMATED RELOCATION COSTS 27 ---PAGE BREAK--- LIST OF TABLES TABLE 1: 2010 Census Population – City of Anaheim& Impacted Tract 3 TABLE 2: 2010 Census Housing Units – City of Anaheim & Impacted Tract 4 TABLE 3: Businesses by Type and Size 7 TABLE 4: Availability/Cost of Replacement Rental Housing 8 TABLE 5: Available Commercial Replacement Sites 9 TABLE 6: Schedule of Fixed Moving Payments 14 TABLE 7: Computation of Rental Assistance Payments (Section 104(d)) 15 TABLE 8: Computation of Rental Assistance Payments (URA) 16 LIST OF EXHIBITS EXHIBIT A: HUD Income Levels – Orange County EXHIBIT B: General Information Notices EXHIBIT C: Informational Brochures EXHIBIT D: Public Comments and Responses ---PAGE BREAK--- Lincoln Family Apartments Project Relocation Plan 1 INTRODUCTION JHC IHO Anaheim Housing Partners, LP. (“Developer”) has authorized the preparation of a Relocation Plan to be undertaken in connection with the commencement of the proposed affordable housing project called the Lincoln Family Apartments Project (“Project”). The Developer is interested in acquiring the property located at 113-117 S. Fahrion Place and 1256 – 1290 E. Lincoln Avenue in Anaheim, CA as the proposed Project site. Existing structures, including multiple commercial uses and a tri-plex structure of residential units, will be demolished to allow for new construction. The Project entails the construction of 70 affordable multi-family rental units. The Project units will consist of 17 one-bedroom units, 32 two-bedroom units, and 21 three bedroom units. The units will be rented to Extremely Low income families with household incomes at or below 30% of the AMI (Area Median Income) and Very Low income families with household incomes at or below 50% of AMI. Funding for the Project will come from Federal financing sources, including CHDO HOME dollars and project-based vouchers from the City of Anaheim/Anaheim Housing Authority and MHSA funds from the County of Orange. Additional funding will derive from low income housing tax credits, and conventional commercial debt. This Plan therefore conforms to the requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, HUD Handbook 1378, Section 104(d) of the Housing and Community Development Act of 1974, (the Act) as amended [42 United States Code, Section 5304(d)] and implementing regulations at 24 Code of Federal Regulations, Part 42, California Relocation Assistance Law, Government Code Section 7260, et seq. (Law), the Relocation Assistance and Real Property Acquisition Guidelines adopted by the Department of Housing and Community Development and Title 25, California Code of Regulations Section 6000, et seq. (Guidelines), as applicable. Due to the necessary demolition of existing structures, all current Project occupants will need to be permanently relocated. The needs and characteristics of the displacee population, available relocation resources and the Developer’s program to provide assistance to each affected person are general subjects of this Relocation Plan (Plan). This Plan is organized in five sections: 1. Project description (SECTION 2. Assessment of the relocation needs of persons subject to displacement (SECTION II); 3. Assessment of available replacement housing and commercial units within the City of Anaheim and surrounding communities (SECTION III); 4. Description of the Developer’s relocation program (SECTION IV); 5. Description of the Developer’s outreach efforts, Project timeline and budget (SECTION ---PAGE BREAK--- Lincoln Family Apartments Project Relocation Plan 2 I. PROJECT DESCRIPTION A. REGIONAL LOCATION The Project is located in the City of Anaheim within Orange County. Anaheim is located approximately 25 miles southwest of the City of Los Angeles and is easily accessible by Interstate 5 and State Routes 22 and 57. Adjacent communities include Fullerton, Placentia, Orange, Santa Ana, Stanton, Garden Grove and Buena Park. (See Figure 1: Regional Project Location) Figure 1: Regional Project Location B. PROJECT SITE LOCATION AND DESCRIPTION The Project site is located at 113 - 117 S. Fahrion Place and 1256 – 1290 E. Lincoln Avenue, Anaheim, CA generally bordered by E. Broadway to the south, S. East Street to the west, E. Lincoln Avenue to the north and Lincoln Park to the east. (See Figure 2: Project Site Location) The Project area of construction totals approximately 1.83 acres. The site is currently improved with multiple commercial units, including offices and warehouse facilities with a yard area, and three residential units. ---PAGE BREAK--- Lincoln Family Apartments Project Relocation Plan 3 Figure 2: Project Site Location C. GENERAL DEMOGRAPHIC AND HOUSING CHARACTERISTICS According to the 2010 U.S. Census, the population of the City of Anaheim is 336,265, and the population of the impacted Census Tract (Tract 863.01) is 7,474 (see Table Corresponding Census data concerning the housing mix is shown in Table 2. Table 1: 2010 Census Population – City of Anaheim & Impacted Tract Population Tract 863.01 % City % Total Population 7,474 100.0% 324,528 100.0% White 4,339 58.1% 148,838 45.9% Black or African American 101 1.4% 4,856 1.5% American Indian or Alaska Native 60 0.8% 3,260 1.0% Asian 557 7.5% 34,138 10.5% Native Hawaiian or Other Pacific Islander 25 0.3% 976 0.3% Some Other Race 2,134 28.6% 120,789 37.2% Two or More Races 258 3.5% 11,671 3.6% Hispanic or Latino (of Any Race) 5,457 73.0% 253,928 78.2% Source: U.S. Census Bureau, DP-1. Race, Hispanic or Latino, and Age: 2010 ---PAGE BREAK--- Lincoln Family Apartments Project Relocation Plan 4 Table 2: 2010 Census Housing Units – City of Anaheim & Impacted Tract Type Tract 863.01 % City % Total Units 1,784 100.0% 76,896 100.0% Total Occupied Units 1,740 97.5 73,174 95.2 Owner-Occupied 1,187 68.2% 34,756 47.5% Renter-Occupied 553 31.8% 38,418 52.5% Vacant Housing Units 44 2.5% 3,722 4.8% Available for Sale Only (of Total Vacant Units) 13 0.7% 693 0.9% Available for Rent – Full Time Occupancy (of Total Vacant Units) 20 0.1% 1,983 2.6% Sold or Rented – Not Occupied 0 0.0% 183 0.2% Otherwise Not Available (e.g. seasonal, recreational, migratory, occasional use) 1 0.1% 132 0.2% Other Vacant 10 0.6% 731 1.0% Source: U.S. Census Bureau, QT-H1. General Housing Characteristics: 2010 ---PAGE BREAK--- Lincoln Family Apartments Project Relocation Plan 5 II. ASSESSMENT OF RELOCATION NEEDS A. SURVEY METHOD To obtain information necessary for the preparation of this Plan, personal interviews with the resident and business owners to be permanently displaced were conducted in May 2014. Based on the rent roll provided by the former property owner, there are five commercial tenants and one business owner who stores personal property on site related to an off-site business. There are also three residential tenants occupying the Project site. The interviewer was successful in obtaining survey responses from all of the nine Project site occupants, although one business owner provided very limited information and did not complete a full interveiw. The data in this section of the Plan are based solely on the unsubstantiated responses of those individuals who participated in the survey. Inquiries made of the residential occupant concerned household size and composition, income, rent and mortgage payments, length of occupancy, ethnicity, home language, physical disabilities and/or special needs, legal presence in the United States, and replacement housing preferences. Inquiries made of the commercial occupants pertained to the type and description of the business, number of employees, annual revenues, specialty equipment, permits and licenses, hours of operation, legal presence of the business in the United States, and special needs related to the relocation of the business, and preferred area to relocate. B. FIELD SURVEY DATA - RESIDENTIAL 1. Current Occupants There are three residential households to be relocated for the Project. At the time of the interviews, the households consisted of six adults and seven children (17 years or younger). One household occupies a one-bedroom unit, and two households occupy two- bedroom units. The commonly accepted standard for housing density allows two persons per bedroom and one person in the common living area. Based on this criterion and available tenant data, the tenant-occupied households are not over-crowded. 2. Replacement Housing Needs Replacement housing needs, as expressed in this plan, are defined by the total number of required replacement units and distribution of those units by bedroom size. The projected number of required units by bedroom size is calculated by comparing survey data for household size with typical replacement housing occupancy standards. These standards, generally, allow for up to three persons in a one-bedroom unit, five persons in a two- bedroom unit, seven persons in a three-bedroom unit and nine or more persons in a four- bedroom unit. In addition, replacement housing needs must also be based on the legally present members of the household. ---PAGE BREAK--- Lincoln Family Apartments Project Relocation Plan 6 Therefore, based on the criterion stated above, the replacement units required for the displaced residential occupants are one one-bedroom unit and two two-bedroom units within a low-density complex. 3. Income Income information was provided by the tenant households verbally. According to income standards for the County of Orange (Exhibit A) adjusted for family size as published by the United States Department of Housing and Urban Development (HUD), one household qualifies as Extremely Low Income (30% or less of area median income), one household qualifies as Very Low Income (31% - 50% of area median income), and one household qualifies as Low Income (51% - 80% of area median income.) 4. Ethnicity/Language Two households stated Hispanic as their ethnicity, and one household stated Hawaiian/Pacific islander as their ethnicity. All three households speak and understand English. 5. Senior/Handicapped Households No households qualify as a senior household (62 years or older), and no households reported disabilities or handicaps. 6. Preferred Relocation Areas The households surveyed expressed a preference to remain in Anaheim in order to maintain current access to employment, schools, child care and public transportation. One household did also express an interest in relocating to Riverside. C. FIELD SURVEY DATA - COMMERCIAL 1. Current Occupants Based on the rent roll provided by the former property owner, and confirmed via site visits and interviews, there are five commercial occupants on the Project site with operating businesses and one occupants who stores materials and vehicles on site for a business at another location. The interviewer was able to extensively interview all but one of the business owners on site or via telephone. The businesses include a charter school, two insurance offices, an after-school program for children and a photography studio. The charter school did not respond to multiple attempts in writing and via telephone to complete a full interview. Table 3 below describes the types and sizes of the Project businesses. ---PAGE BREAK--- Lincoln Family Apartments Project Relocation Plan 7 TABLE 3: Businesses by Type and Size Type of Establishment No. of Businesses Sq. Ft. Total Usage Avg. Sq. Ft. per Unit Retail/Service Provider 3 5,300 1,766 Non-Profit 2 8,300 4,150 TOTAL 5 Based on lease information provided by the business owners and the property owner, current rental rates range from $2,200 - $7,683/mo. on the Project site. All of the businesses are currently on month to month leases with the exception of the charter school. The charter school has a lease until 2016 with options to extend. The property owner will be responsible for buying out and terminating the charter school lease lease prior to the sale of the property to the Developer. Statistics provided by the business owners indicate the total number of full-time employees and part-time employees (not including the owners) impacted by the Project is 11 and six respectively. (The number of employees at the charter school is unknown at this time.) Special replacement site requirements for the businesses stated by the owners included: appropriate zoning and/or the ability to be approved for a conditional use permit, pedestrian access, nearby public transportation, access to freeways and major arterials, and being close to schools and residential areas for the children’s after-school program. The service and retail businesses should easily be able to relocate into alternate commercial space. A greater challenge will be the identification of a suitable site that will allow a school. ---PAGE BREAK--- Lincoln Family Apartments Project Relocation Plan 8 III. RELOCATION RESOURCES A. METHODOLOGY For residential housing and commercial sites, a resource survey was initially conducted to identify available units for rent within a three-mile radius from the Project site and then expanding throughout Anaheim and surrounding communities. The following sources were utilized: Contacts with real estate/property management companies serving the community Internet sources for rental opportunities, including the Multiple Listing Service Classified rental listings from local newspapers and For Rent publications B. REPLACEMENT HOUSING AVAILABILITY 1. Residential Rental Housing The rental replacement housing survey considered low density residential units for rent in Anaheim and surrounding communities. This data is summarized in Table 4 below. The individual figures for number of units found by bedroom size are presented in the table alongside the number of units needed (shown in parentheses) to meet the re-housing obligations. TABLE 4: Availability and Cost of Replacement Rental Housing Bedroom Size One Two # Found Needed) 6 6 Rent Range $900 - $1,600 $,1200 - $1,750 Median Rent $1,095 $1,375 The median rent amount shown in the table is among the figures used to make benefit and budget projections for the Plan. This amount is, naturally, subject to change according to the market rates prevailing at the time of displacement. 2. Summary Considering the above described availability of replacement housing resources gathered in May 2014, it appears that there are adequate replacement resources for the residential occupants. In addition, many more available, “non-low density,” one and two-bedroom apartment units were identified in Anaheim, but were not included in the table. Based on survey results of rental opportunities and the tenants’ current rent, the tenant occupants will likely have an increase in rent. However, possible increases, if ---PAGE BREAK--- Lincoln Family Apartments Project Relocation Plan 9 any, will be met through the Developer’s obligation under the relocation regulations, including Last Resort Housing (LHR) requirements. (See Section IV, C. RELATED ISSUES 1. Concurrent Residential Displacement At this time, there are no other current public projects causing significant displacements underway in the City of Anaheim or adjacent communities which would compete with the Project for needed housing resources. No residential displacee will be required to move without both adequate notice and access to available affordable decent, safe and sanitary housing. 2. Temporary Housing No need for temporary housing is anticipated. D. REPLACEMENT COMMERCIAL SITES AVAILABILITY Most of the business owners indicated a desire to stay in Anaheim, although one expressed an interest in moving to Anaheim Hills, Fullerton or Placentia. The businesses that are to be displaced should be able to relocate in the Anaheim area. When searching for replacement locations, zoning and other regulatory issues must be considered carefully. The current availability of commercial/retail/light industrial space for lease in Anaheim is adequate. Table 5 below provides a sample of the 27 available retail/commercial/light industrial properties available in Anaheim as of the date of this Plan. Table 5: Available Commercial Replacement Sites Property Type Usage Square Feet Rent Commercial Retail 1,000 – 1,350 $1,500 - $2,362/mo. Commercial Retail 4,000 – 5,174 $6,800 - $7,761/mo. Commercial Office 1,040 – 1,529 $882 - $2,503/mo. Commercial Office 3,027 – 5,184 $3,783 - $8,294/mo. Light Industrial Warehouse 3,000 – 4,992 $2,250 - $4,992/mo. ---PAGE BREAK--- Lincoln Family Apartments Project Relocation Plan 10 At the time of displacement, ongoing referrals to the business will be provided through contacts with local newspapers, property management companies, the multiple listing service and commercial real estate brokers. In addition, the current property owner owns several other properties in the area and has stated they will take an active role in assisting with identifying suitable replacement sites for the displaced businesses. The property owner is currently working with the charter school representatives to discuss replacement site needs and assist with locating a suitable site. ---PAGE BREAK--- Lincoln Family Apartments Project Relocation Plan 11 IV THE RELOCATION PROGRAM The Developer’s Relocation Program is designed to minimize hardship, be responsive to unique project circumstances, emphasize maintaining personal contact with all affected individuals, consistently apply all regulatory criteria to formulate eligibility and benefit determinations and conform to all applicable requirements. The relocation program to be implemented by the Developer will conform with the standards and provisions of the State of California Relocation Assistance Law, Government Code, Section 7260, et. seq., the California Code of Regulations, Title 25, Chapter 6, as amended January 1, 1998, the federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA), as amended, Section 104(d) of the Housing and Community Development Act of 1974, (the Act) as amended [42 United States Code, Section 5304(d)] and the implementing regulations of Handbook 1378 of the Department of Housing and Urban Development (HUD), as appropriate. The Developer has retained Overland, Pacific & Cutler, Inc. (“OPC”) to administer the Relocation Program. OPC has worked on more than 3,000 public acquisition and relocation projects over more than 33 years. Additionally, OPC has an extensive resume of redevelopment and public works projects undertaken in the City of Anaheim and other Southern California communities. Experienced Developer staff will monitor the performance of OPC and be responsible to approve or disapprove OPC recommendations concerning eligibility and benefit determinations and interpretations of the Developer’s policy. OPC staff will be available to assist any relocated business and/or household with questions about the relocation process and/or assistance in relocating. Relocation staff can be contacted at (800) 901-5263 from 8:00 am to 5:00 pm Monday through Friday, and are available via voicemail and/or cellular phones after hours. The Relocation Office is located at 3750 Schaufele Avenue, Suite 150, Long Beach, CA 90808. The Relocation Program consists of two principal constituents: Advisory Assistance and Financial Assistance. A. ADVISORY ASSISTANCE Individuals and businesses, who will need to move from the Project site, will receive advisory assistance. Advisory assistance services are intended to: • inform displacees about the relocation program • help in the process of finding appropriate replacement accommodations • facilitate claims processing • maintain a communication link with the Developer • coordinate the involvement of outside service providers ---PAGE BREAK--- Lincoln Family Apartments Project Relocation Plan 12 To follow through on the advisory assistance component of the relocation program and assure that the Developer meets its obligations under the law, OPC staff will perform the following functions: 1. Distribute appropriate written information concerning the Developer’s relocation program; 2. Inform eligible project occupants of the nature of, and procedures for, obtaining available relocation assistance and benefits (See Exhibit 3. Determine the needs of each displacee eligible for assistance; 4. Provide residential displacees with at least three referrals to comparable replacement housing within a reasonable time prior to displacement. Generally, a comparable replacement dwelling must satisfy the following criteria: The unit is decent, safe and sanitary - electrical, plumbing and heating systems are in good repair - no major, observable hazards or defects. The unit is adequate in size and is comparable to the acquired dwelling with respect to number of rooms, habitable living space and type and quality of construction, but not lesser in rooms or living space as necessary to accommodate the displaced person. The unit is functionally equivalent, including principle features. The unit is located in an area not subjected to unreasonable adverse environmental conditions from either natural, or man-made sources, and not generally less desirable with respect to public utilities, transportation, public and commercial facilities, including schools and municipal services and reasonably accessible to the displaced person’s place of employment. The unit is available both on the private market and to all persons regardless of race, color, sex, marital status, religion or, national origin. 5. Provide referrals to available commercial sites for the business tenants; 6. Maintain an updated database of available housing and commercial resources, and distribute referral information to displacees for the duration of the Project; 7. Provide transportation to the residential displacees, if necessary, to inspect replacement sites within the local area; 8. Inspect replacement housing to assure it meets decent, safe and sanitary standards as described in the URA; ---PAGE BREAK--- Lincoln Family Apartments Project Relocation Plan 13 9. Supply information concerning federal and state programs and other governmental programs providing assistance to displaced persons; 10. Make benefit determinations and payments in accordance with applicable law and the Developer’s adopted relocation guidelines; 11. Assist eligible occupants in the preparation, and submission, of relocation assistance claims; 12. Assure that no occupant is required to move without a minimum of 90 days written notice to vacate; 13. Inform all persons subject to displacement of the Developer’s policies with regard to eviction and property management; 14. Provide additional reasonable services necessary to successfully relocate occupants; 15. Establish and maintain a formal grievance procedure for use by displaced persons seeking administrative review of the Developer’s decisions with respect to relocation assistance; and 16. Provide assistance that does not result in different or separate treatment based on or due to an individual’s sex, marital status, race, color, religion, ancestry, national origin, physical handicap, sexual orientation, and domestic partnership status. B. RESIDENTIAL RELOCATION BENEFITS Specific eligibility requirements and a benefit plan will be detailed on an individual basis with the displacees. In the course of a personal interview and follow-up visits, each displacee will be counseled as to available options and the consequences of any choice with respect to financial assistance. Relocation benefits will be provided in accordance with the provisions of the federal and state guidelines, as applicable, and Developer rules, regulations and procedures pertaining thereto. Benefits will be paid to eligible displaced persons upon submission of required claim forms and documentation in accordance with the Developer’s normal administrative procedures. The Developer will process advance payment requests to mitigate hardships for residents who do not have access to sufficient funds to pay move-in costs such as first month’s rent or security deposits. Approved requests will be processed expeditiously to help avoid the loss of desirable, appropriate replacement housing. 1. Residential Moving Expense Payments ---PAGE BREAK--- Lincoln Family Apartments Project Relocation Plan 14 All residential occupants to be permanently relocated will be eligible to receive a payment for moving expenses. Moving expense payments will be made based upon the actual cost of a professional move, a fixed payment based on a room-count schedule or a combination of both. a. Actual Cost (Professional Move) Displacees may elect to have a licensed professional mover perform the move. The actual cost of the moving services, based on at least two acceptable bids, will be compensated by the Developer in the form of a direct payment to the moving company upon presentation of an invoice. Transportation costs are limited to a distance of 50 miles in either case. In addition to the actual move, costs associated with utility re-connections gas, water, electricity, telephone, and cable, if any), are eligible for reimbursement. b. Fixed Payment (based on Room Count Schedule) An occupant may elect to receive a fixed payment for moving expenses which is based on the number of rooms occupied in the displacement dwelling. In this case, the person to be relocated takes full responsibility for the move. The fixed payment includes all utility connections as described in above. The current schedule for fixed moving payments is set forth in Table 6 following: TABLE 6: Schedule of Fixed Moving Payments Unfurnished Dwelling Room count 1 2 3 4 5 6 7 8 Each additional Amount $685 $880 $1,100 $1,295 $1,570 $1,815 $2,090 $2,365 $250 Furnished Dwelling Room count 1 each additional Amount $450 $85 Source: California Department of Transportation – June 2012 2. Rental Assistance to Tenants Who Choose to Rent To be eligible to receive the rental assistance benefits, the displaced tenant household has to rent or purchase and occupy a decent, safe, and sanitary replacement dwelling within one year from the date they move from the displacement dwelling. Based upon the available data regarding Project displacees, the displaced households may qualify for, and may be eligible to apply for, relocation benefits under URA provisions or Section 104(d). Under Section 104(d), Rental Assistance Payments will be calculated based upon the housing need over a 60 month period for eligible occupants ---PAGE BREAK--- Lincoln Family Apartments Project Relocation Plan 15 whose income level does not exceed 80% of the median income for the County of Orange, as established by the United States Department of Housing and Urban Development (HUD). Recipients of 104(d) benefits would also be eligible to receive reimbursement for security deposit and credit check fees. Except in the case of Last Resort Housing situations, payments to those households whose income level exceeds 80% of the area median income or whom have chosen benefits under the URA, will be payable over a 42 month period and limited to a maximum of $5,250 as stated under URA guidelines. (This limit increases to $7,200 on October 1, 2014.) The differences between the two programs are explained in detail in the informational brochure provided to each household (see Exhibit Table 7 provides an example of how a 104(d) rental assistance eligibility amount is determined: TABLE 7: Example Computation of 104(d) Rental Assistance Payments 1. Adjusted Gross Income $600 30% of Household's Adjusted Gross Income* -or- 2. Gross Income $300 10% of Gross Household Income 3. Greater of lines 1 and 2 $600 Total Tenant Payment Subtracted from the lesser of: 4. Actual New Rent $795 Actual New Rent (includes utilities) -or- 5. Comparable Rent $815 Set by Owner (includes utilities) 6. Lesser of lines 4 and 5 $795 7. Need Amount $195 Subtract line 3 from line 6 Rental Assistance $11,700 Multiply line 7 Need) by 60 months *Adjusted gross income means the total annual income of an individual household less the following: a deduction of $480 for each dependent; a deduction of $400 for an elderly household; a deduction for recurring extraordinary medical expenses; defined for this purpose to mean medical expenses in excess of 3% of total income, where not compensated for, or covered by insurance or other sources; a deduction of reasonable amounts paid for the care of children or sick or incapacitated family members when determined to be necessary to employment of the head of household or spouse, except that the amount deducted shall not exceed the amount of income received by the person who would not otherwise be able to seek employment in the absence of such care. Table 8 portrays an example of a benefits determination under the URA: ---PAGE BREAK--- Lincoln Family Apartments Project Relocation Plan 16 TABLE 8: Example Computation of URA Rental Assistance Payments 1. Old Rent $650 Old Rent and Utilities or 2. Ability to Pay $700 30% of the Gross Household Income (for Low Income Households) 3. Lesser of lines 1 or 2 $650 Base Rental Subtracted From: 4. Actual New Rent $750 Actual New Rent and Utilities or 5. Comparable Rent $775 Determined by Owner (includes utilities) 6. Lesser of lines 4 or 5 $750 7. Yields Need: $100 Subtract line 3 from line 6 Rental Assistance $4,200 Multiply line 7 by 42 months Rental Assistance payment amounts are equal to 42 times the difference between the base rent and the lesser of: The rent and estimated average cost of utilities for a comparable replacement dwelling; or (ii) The rent and estimated average cost of utilities for the decent, safe, and sanitary replacement dwelling actually occupied by the displaced person. The base rent for the displacement dwelling is the lesser of: The average cost for rent and utilities at the displacement dwelling for a reasonable period prior to displacement. For owner-occupants or households, which paid little or no rent, fair market rent will be used as a substitute for actual rent; or (ii) Thirty percent (30%) of the displaced person’s average, gross household income if the amount is classified as “low income” by the U. S. Department of Housing and Urban Development’s (HUD) Annual Survey of Income Limits for the Public Housing and Section 8 Programs. (HUD’s Survey is shown as Exhibit If a displacee refuses to provide appropriate evidence of income or is a dependent, the base rent shall be determined ---PAGE BREAK--- Lincoln Family Apartments Project Relocation Plan 17 to be the average cost for rent and utilities at the displacement dwelling; or (iii) The total of the amount designated for shelter and utilities if receiving a welfare assistance payment from a program that designated the amounts for shelter and utilities If a qualified tenant is offered a Section 8 voucher and available comparable Section 8 replacement housing, and the tenant refuses the voucher, the tenant is then limited to relocation benefits under the URA. Qualified Project tenants will be offered Section 8 vouchers on this Project. 3. Downpayment Assistance to Tenants Who Choose to Purchase The displaced household may opt to apply the entire benefit amount for which they are eligible toward the purchase of a replacement unit (Guidelines 49 CFR 24.402(b) and HUD 1378). A displaced household, who chooses to utilize up to the full amount of their rental assistance eligibility (including any Last Resort benefits) to purchase a home, will have the funds deposited in an open escrow account, provided that the entire amount is used for the downpayment and eligible, incidental costs associated with the purchase of a decent, safe, and sanitary replacement home. A provision shall be made in the escrow arrangements for the prompt return of Developer funds, in the event escrow should fail to close within a reasonable period of time. Displacees who qualify for the 60-month calculation, and who want to convert their rental assistance entitlement to down payment assistance, must purchase a cooperative or mutual housing-type replacement home. If a conventional home is purchased, the rental assistance/down payment assistance payment is converted to a 42-month calculation per the URA. Final determination about the type of relocation benefits and assistance for which the household is eligible will be determined upon verification of the household’s occupants and income. 4. Determination of Comparable Housing Relocation staff will evaluate the cost of comparable replacement housing in the preparation of each individual Notice of Eligibility issued to residential displacees. For residential occupants, the cost of comparable replacement housing will be determined by the comparable method, which determines the most comparable dwellings in the local market for each type of unit needed. ---PAGE BREAK--- Lincoln Family Apartments Project Relocation Plan 18 C. LAST RESORT HOUSING Specifically, for renters, when the computed replacement housing assistance eligibility exceeds $5,250 or replacement dwelling rental costs (including utilities and other reasonable recurring expenses) exceeds 30% of the person’s average income, Last Resort Housing will have to be provided. (The $5,250 limit increases to $7,200 on October 1, 2014.) Therefore, if the Project is to go forward, the Developer will authorize its funds or funds authorized for the Project to provide housing of last resort. Funds will be used to make payments in excess of the monetary limit specified in the statute ($5,250); hence, satisfying the requirement that “comparable replacement housing” is available. A displaced tenant household will be entitled to consideration for supplementary benefits in the form of Last Resort Housing assistance when the computed replacement housing assistance eligibility exceeds $5,250 or replacement dwelling rental costs (including utilities and other reasonable recurring expenses) exceed 30% of the person’s average income (financial means) or when a tenant fails to meet the 90-day occupancy requirement and comparable replacement rental housing is not available within the displaced person’s financial means. Calculations of Last Resort rental assistance benefits for tenants who fail to meet the 90- day occupancy requirement will be based solely on household income. Non 90-day qualifiers must meet basic eligibility requirements applied to all other displacees. The Developer will pay Last Resort Housing payments in installments. Recipients of Last Resort rental assistance, who intend to purchase rather than re-rent replacement housing, will have the right to request a lump sum payment of all benefits in the form of downpayment assistance. D. COMMERCIAL RELOCATION BENEFITS As a function of a comprehensive relocation assistance program, relocation staff will provide the displaced business owners with required technical and advisory assistance and distribute all required notices and the informational handbook (Exhibit Close contact will be maintained with the business owners. The Developer will provide relocation benefits in accordance with the Federal Relocation Regulations and the HUD Handbook 1378, if federal funds are secured. The Developer will pay benefits to the claimants upon submission of required claim forms and documentation in accordance with the Developer’s approved procedures. Eligible businesses will have two options with respect to claims for relocation assistance benefits: 1) compensation for actual reasonable and necessary moving and related expenses; or ---PAGE BREAK--- Lincoln Family Apartments Project Relocation Plan 19 2) a fixed payment not to exceed $20,000 (This limit increases to $40,000 on October 1, 2014.) Off-site property owners whose sole business is considered to be the rental of real property to others are not eligible to receive a fixed payment but may file a claim for actual moving costs and compensation for reestablishment expenses described later in this section. 1. Payment for Actual Reasonable and Necessary Moving and Related Expenses Any business which qualifies as a displaced person is entitled to payment for such actual moving expenses, as the Developer determines to be reasonable and necessary, including expenses for: a. Transportation of persons and property from the present location to the replacement location (transportation costs for a distance beyond 50 miles are not eligible, unless the Developer determines that relocation beyond 50 miles is justified); b. Packing, crating, uncrating, and unpacking personal property; c. Disconnecting, dismantling, removing, reassembling, and installing relocated and substitute machinery, equipment and other personal property. Includes connection to utilities available nearby and modifications necessary to adapt such property to the replacement structure or to the utilities or to adapt the utilities to the personal property; d. Storage of personal property for a period not to exceed 12 months, unless the Developer determines that a longer period is necessary; e. Insurance of personal property while in storage or transit and the replacement value of property lost, stolen, or damaged (not through the fault or negligence of the displaced person) in the process of moving, where insurance is not readily available; f. Any license, permit, or certification required by the displaced business, to the extent that the cost is necessary for reestablishment at the replacement location. (These costs may be pro-rated based on the remaining useful life of any existing license, permit or certification); g. Reasonable and pre-authorized professional services, including architects', attorneys', engineers' fees, and consultants' charges, necessary for: planning the move of the personal property; moving the personal property; or, installing the relocated personal property at the replacement location; ---PAGE BREAK--- Lincoln Family Apartments Project Relocation Plan 20 h. Professional services performed prior to the purchase or lease of a replacement site to determine its suitability for the business operation including, but not limited to, soil testing, feasibility and marketing surveys; i. The purchase and installation of substitute personal property limited to the lesser of: an amount equal to the reasonable expenses that would have been required to relocate the property, as determined by the Developer, subject to certain limitations, or, the replacement cost, less any proceeds from its sale or trade in; j. Connection to available nearby utilities from the right-of-way to improvements at the replacement site; k. The modification of machinery, equipment or other personal property necessary to adapt these to the replacement location or to utilities available at the replacement location; l. Relettering signs and replacing stationary on hand at the time of displacement that is made obsolete as a result of the move; m. Actual direct losses of tangible personal property resulting from moving or discontinuing a business or non-profit organization, not-to-exceed the lesser of: the fair market value of the property for continued use at its location prior to displacement less any proceeds from sale of the property; or, an amount equal to the reasonable expenses that would have been required to relocate the property, as determined by the Developer, subject to certain limitations; n. Actual and reasonable expenses incurred in searching for a replacement business or non-profit organization location, not-to-exceed $2,500, and including compensation for transportation expenses; time spent searching for a reasonable location, meals, and lodging; real estate broker or agent fees; time spent in obtaining permits and attending zoning hearings; and time spent negotiating the purchase of a replacement site; o. Impact fees or one-time assessments for anticipated heavy utility usage; p. Low Value/High Bulk: when the personal property to be moved is of low value and high bulk, and the cost of moving the property would be disproportionate to its value in the judgment of the Developer, the allowable moving cost payment shall not exceed the lesser of: the amount which would be received if the property were sold at the site or the replacement cost of a comparable quantity delivered to the new business location. Examples of personal property covered by this provision include, but are not limited to, stockpiled sand, gravel, minerals, metals and other similar items of personal property as determined by the Developer; ---PAGE BREAK--- Lincoln Family Apartments Project Relocation Plan 21 q. A Reestablishment allowance of up to $10,000, available to farms, nonprofit organizations and small businesses with no more than 500 employees. (This limit increases to $25,000 on October 1, 2014.) Reestablishment allowance payments are made in addition to compensation provided for actual, reasonable and necessary moving expenses. Reestablishment allowance expense categories include but are not limited to: 1) Repairs or improvements to the replacement property as required by Federal, State or local law, code or ordinance; 2) Modifications to the replacement property to accommodate the business operation or make replacement structures suitable for conducting business; 3) Construction and installation costs for exterior signing to advertise the business; 4) Redecoration or replacement of soiled or worn surfaces at the replacement site, such as paint paneling or carpeting; 5) Advertisement of replacement location; 6) Estimated increased costs of operation during the first two years at the replacement site for such items as: a. Lease or rental charges b. Personal or real property taxes c. Insurance premiums, and d. Utility charges, excluding impact fees 7) Other items essential to the reestablishment of the business. 2. Self-Moves If the displaced business elects to take full responsibility for the move of the business, the Developer will make a payment for the business’s moving expenses in an amount not to exceed the lower of two acceptable bids or estimates submitted to the Developer. At the Developer’s discretion, a payment for a low cost or uncomplicated move may be based on a single bid or estimate. 3. A Fixed Payment in Lieu of a Payment for Actual Reasonable Moving and Related Expenses The option to claim a fixed payment enables both for-profit and non-profit businesses to receive relocation assistance compensation without providing documentation of bids and actual expenses. The payment amount available to any individual business is based on an ---PAGE BREAK--- Lincoln Family Apartments Project Relocation Plan 22 average of annual net earnings over a two year period. For businesses which have not been in operation for two years, income figures can be annualized. The method for establishing income is through tax returns and/or certified financial statements. The payment to an eligible business may not be less than $1,000, or more than $20,000. (This limit increases to $40,000 on October 1, 2014.) To qualify for this payment, it must be determined that, a displaced business: • owns or rents personal property, which must be moved in connection with such displacement and for which an expense would be incurred in such move; • is not operated at the displacement site solely for the purpose of renting the dwelling or site to others; • cannot be a part of a commercial enterprise having at least three other establishments which are not being acquired by the Developer, and which is under the same ownership and engaged in the same or similar business activities; • must not be able to relocate without substantial loss of patronage; and • contributed materially, as defined by the Developer, to the income of the displaced person during the two taxable years prior to displacement. 4. Personal Property Move Only (Storage) Eligible displaced persons include those that must relocate personal property from the Project site. The owner of the personal property is entitled to reimbursement for expenses related to the relocation of the personal property as described in D e) above. E. GENERAL INFORMATION REGARDING THE PAYMENT OF RELOCATION BENEFITS Claims and supporting documentation for relocation benefits must be filed with the Developer no later than 18 months after the date of displacement. Relocation benefits will be paid from tax credit equity and/or conventional commercial debt. The procedure for the preparation and filing of claims, and the processing and delivery of payments, will be as follows: 1. Claimant(s) will provide all necessary documentation to substantiate eligibility for assistance; 2. Relocation staff will review all necessary documentation including, but not limited to, income verification, lease documents and escrow material before reaching a determination as to which expenses are eligible for compensation; ---PAGE BREAK--- Lincoln Family Apartments Project Relocation Plan 23 3. Required claims forms will be prepared by relocation staff and presented to the claimant for review. Signed claims and supporting documentation will be returned to relocation staff and submitted to the Developer; 4. The Developer will review and approve claims for payment, or request additional information; 5. The Developer will issue benefit checks to claimants in the most secure, expeditious manner possible; 6. Final payments to residential displacees will be issued after confirmation that the Project premises have been completely vacated and actual residency at the replacement unit is verified; 7. Receipts of payment and all claims materials will be maintained in the relocation case file. F. IMMIGRATION STATUS Federal legislation (PL105-117) prohibits the payment of relocation assistance benefits under the Uniform Act to any alien not lawfully present in the United States unless such ineligibility would result in an exceptional and extremely unusual hardship to the alien’s spouse, parent, or child any of whom is a citizen or an alien admitted for permanent residence. Exceptional and extremely unusual hardship is defined as significant and demonstrable adverse impact on the health or safety, continued existence of the family unit, and any other impact determined by the Developer to negatively affect the alien’s spouse, parent or child. In order to track and account for relocation assistance and benefit payments, Developer staff will be required to seek immigration status information from each displacee 18 years or older by having them self-certify as to their legal status. The Developer may pay relocation benefits to otherwise eligible non-lawfully present persons via the Section 104(d) program, which does not have a legal presence requirement to be eligible for relocation assistance. G. RELOCATION TAX CONSEQUENCES In general, relocation payments are not considered income for the purpose of Division 2 of the Internal Revenue Code of 1954, which has been redesignated as the Internal Revenue Code of 1986 (Title 26, U.S. Code), or for the purpose of determining the eligibility or extent of eligibility of any person for assistance under the Social Security Act (42 U.S. Code 301 et seq.) or the Personal Income Tax Law, Part 10 (commencing with Section17001) of the Revenue and Taxation Code, or the Bank and Corporation Tax Law, Part II (commencing with Section 23001) of Division 2 of Revenue and Taxation Code. The above statement on tax consequences is not intended as tax advice by the Developer or OPC. Displacees are responsible for consulting with their own tax advisors concerning the tax consequences of relocation payments. ---PAGE BREAK--- Lincoln Family Apartments Project Relocation Plan 24 H. PROGRAM ASSURANCES AND STANDARDS There are adequate funds to relocate the businesses and the residential tenant. Services will be provided to ensure that displacement does not result in different or separate treatment of displacees based on race, nationality, color, religion, national origin, sex, marital status, familial status, disability or any other basis protected by the Federal Fair housing Amendments Act, the Americans with Disabilities Act, Title VI of the Civil Rights Act of 1964, Title VIII of the Civil Rights Act of 1968, the California Fair Employment & Housing Act, and the Unruh Act, as well as any other arbitrary or unlawful discrimination. ---PAGE BREAK--- Lincoln Family Apartments Project Relocation Plan 25 V. ADMINISTRATIVE PROVISIONS A. NOTICES Each notice, which the Developer is required to provide to a Project occupant, shall be personally delivered or sent by certified or registered first-class mail, return receipt requested and documented in the case file. Each notice will be written in plain, understandable language. Persons who are unable to read and understand any notice will be provided with appropriate translation and counseling. Each notice will indicate the name and telephone number of a person who may be contacted for answers to questions or other needed help. There are three principal notices: 1) the General Information Notice, 2) the Notice of Relocation Eligibility, and 3) the Ninety-Day Vacate Notice. The General Information Notice (GIN) is intended to provide potential relocatees with a general written description of the Developer’s relocation program and basic information concerning benefits, conditions of eligibility, noticing requirements and appeal rights. (See Exhibit B) GINs were mailed via regular and certified mail and hand-delivered to all affected occupants in June 2013. A Notice of Relocation Eligibility (NOE) will be distributed to each relocatee. The NOE to the residential relocatee contains a determination of eligibility for relocation assistance and a computation of a maximum entitlement based on information provided by the affected household and the analysis of comparable replacement properties undertaken by relocation staff. The NOE to the commercial occupants includes a description of the benefits categories for which the business owners are eligible. The NOE will be issued to any eligible permanent displacee once the Project has been approved and Project funding is in place. No lawful occupant will be required to move without having received at least 90 days advance written notice of the earliest date by which the move will be necessary. The 90-day notice will either state a specific date as the earliest date by which the occupant may be required to move or state that the occupant will receive a further notice indicating, at least 30 days in advance, the specific date of the required move. The 90-day notice will not be issued to any residential displacee before a comparable replacement dwelling has been made available. In addition to the three principal notices, Developer staff will issue timely written notification in the form of a Reminder Notice, which discusses the possible loss of rights and sets the expiration date for the loss of benefits to those persons who: 1) are eligible for monetary benefits, 2) have moved from the acquired property, and 3) have not filed a claim for benefits. ---PAGE BREAK--- Lincoln Family Apartments Project Relocation Plan 26 Reminder Notices will be issued periodically throughout the qualification period. An attempt shall be made to make written contact with all non-responsive relocatees no later than within the last six months prior to the filing expiration date. B. PRIVACY OF RECORDS All information obtained from displacees is considered confidential and will not be shared without consent of the displacee or the Developer. Relocation staff will comply with federal regulations concerning safeguarding of relocation files and their contents. C. GRIEVANCE PROCEDURES The Developer's grievance policy will follow the standards described in Article 5 Section 6150 et seq. of the State guidelines. Briefly stated, displacees will have the right to ask for administrative review when they believe themselves aggrieved by a determination as to eligibility, the amount of payment, the failure to provide comparable replacement housing referrals or the Developer's property management practices. Written appeals will be directed first to the Developer’s Project Manager or an authorized designee of the Developer, and subsequently, further appeal will be reviewed by an independent Hearing Officer. Details concerning the entire appeals process will be provided upon request. D. EVICTION POLICY Eviction will cause the forfeiture of a displacee’s right to relocation assistance or benefits. Relocation records will be documented to reflect the specific circumstances surrounding any eviction action. Eviction may be undertaken for one, or more of the following reasons: Failure to pay rent, except in those cases where the failure to pay is due to the owner’s failure to keep the premises in habitable condition; is the result of harassment or retaliatory action; or, is the result of discontinuation, or a substantial interruption of services; Performance of a dangerous, and/or illegal act in the unit; A material breach of the rental agreement, and failure upon notification to correct said breach within 30 days of Notice; Maintenance of a nuisance, and failure to abate such nuisance upon notification within a reasonable time following Notice; Refusal to accept one of a reasonable number of offers of replacement dwellings; and/or, ---PAGE BREAK--- Lincoln Family Apartments Project Relocation Plan 27 A requirement under State, or local law or emergency circumstances that cannot be prevented by reasonable efforts on the part of the Developer. E. CITIZEN PARTICIPATION As the process for considering the Project moves forward, the Developer will observe the following protocol: 1. Provide affected tenants with full and timely access to documents relevant to the relocation program; 2. Encourage meaningful participation in reviewing the Relocation Plan and monitoring the relocation assistance program; 3. Provide technical assistance necessary to interpret elements of the Relocation Plan and other pertinent materials; 4. Issue a general notice concerning the availability of the Plan for public review, as required, 30 days prior to its proposed approval; and 5. Include written or oral comments concerning the Plan as an attachment (Exhibit E) when it is forwarded to the City Council for approval, prior to tenant displacements. F. PROJECTED DATE OF DISPLACEMENT The Developer anticipates that date specific Notices to Vacate will not be issued prior to August 2014. No occupant will be required to vacate without a minimum of 90 days notice. However, an occupant may choose to vacate prior to a vacate notice being issued, once they have received their Notice of Eligibility, and be assured they will receive any relocation assistance to which they may be entitled. G. ESTIMATED RELOCATION COSTS The total budget estimate for relocation-related payments for this Project is $454,000. This estimate should not be interpreted as firm, “not to exceed,” or actual entitlement costs. The estimate is based on the data obtained through occupant interviews, current project scope, replacement site availability, estimated housing assistance, moving costs, reestablishment costs and the judgment and experience of the Overland, Pacific & Cutler, Inc. staff. ---PAGE BREAK--- Lincoln Family Apartments Project Relocation Plan 28 The estimate does not include any payments related to property acquisition or any compensation for Improvements Pertaining to Realty. In addition, the budget does not consider the cost of any services necessary to implement the Plan and complete the relocation element of the Project. If the Project is to be implemented, and circumstances arise that should change either the number of displaced occupants, or the nature of their activity, the Developer will authorize any additional compensable funds that may need to be appropriated. The Developer pledges to appropriate, on a timely basis, the funds necessary to ensure the successful completion of the Project, including funds necessary for Last Resort Housing as indicated in Section IV, E, of this Plan to meet its obligation under the relocation regulations. ---PAGE BREAK--- EXHIBIT A HUD INCOME LIMITS – ORANGE COUNTY The following figures are approved by the U. S. Department of Housing and Community Development for use in the County of Orange to define and determine housing eligibility by income level. Area Median Income: $84,900 Family Size Extremely Low Very Low Lower 1 Person 19,000 31,650 50,600 2 Person 21,700 36,150 57,800 3 Person 24,400 40,650 65,050 4 Person 27,100 45,150 72,250 5 Person 29,300 48,800 78,050 6 Person 31,450 52,400 83,850 7 Person 33,650 56,000 89,600 8 Person 35,800 59,600 95,400 Figures are per the Department of Housing and Community Development (California), Division of Housing Policy Development, 2013. ---PAGE BREAK--- ---PAGE BREAK--- © 1980-2010 Overland, Pacific & Cutler, Inc. (03/10) Page 1 General Information Notice May 19, 2014 <> and All Other Occupants <> <> Dear Occupants: Jamboree Housing Corporation and Innovative Housing Opportunities, Inc. (called here the “Developer”) is interested in acquiring, and rehabilitating the property you currently occupy at <> for the Lincoln Avenue Apartments Project (Project). This notice is to inform you of your rights under Federal and State law, as applicable. If the Developer acquires the property, and you are displaced for the Project, you will be eligible for relocation assistance under California Government Code 7260, Title 25 of the California Code of Regulations, the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA), as amended and HUD Handbook 1378. However, you do not have to move now. This is not a notice to vacate the premises or a notice of relocation eligibility. The Developer has retained the professional firm of Overland, Pacific & Cutler, Inc. (OPC) to represent the Developer and assist in the relocation process. In order to assess and better plan for the relocation needs of possible displaced households in the Project, the Developer is preparing a Relocation Plan. To prepare this relocation plan, OPC staff will need to meet with you to assess your relocation needs. OPC staff will be out in your neighborhood beginning the week of May 19th and will be trying to contact you then. If you want to make an appointment that is convenient for you, please call the relocation agent identified below. Victor Estevez (800) 400-7356 If you rent your unit, you should continue to pay your rent to your landlord, because failure to pay rent and meet your obligations as a tenant may be cause for eviction and loss of relocation assistance. You are urged not to move or sign any agreement to purchase or lease a unit before receiving formal notice of eligibility for relocation assistance. If you move or are evicted before receiving such notice, you will not be eligible to receive relocation assistance. Please contact us before you make any moving plans. If the Developer acquires the property and you are eligible for relocation assistance, you will be given advisory services, including referrals to replacement housing, and at least 90 days advance written notice of the date you will be required to move. You would also receive a payment for moving expenses and may be eligible for financial assistance to help you rent or buy a replacement dwelling. ---PAGE BREAK--- © 1980-2010 Overland, Pacific & Cutler, Inc. (03/10) Page 2 Any person aggrieved by a determination as to eligibility for, or the amount of, a payment authorized by the Developer’s Relocation Assistance Program may have the appeal application reviewed by the Developer in accordance with its appeals procedure. Complete details on appeal procedures are available upon request from the Developer. Note that pursuant to Public Law 105-117, aliens not lawfully present in the United States are not eligible for relocation assistance, unless such ineligibility would result in exceptional hardship to a qualifying spouse, parent, or child. All persons seeking relocation assistance will be required to certify that they are a United States citizen or national, or an alien lawfully present in the United States. Again, this is not a notice to vacate and does not establish eligibility for relocation payments or other relocation assistance. If the Developer decides not to purchase the property, you will be notified in writing. If you have any questions about this or any other relocation issues, please contact the agent at the phone number listed above. Sincerely, Michele Folk, SR/WA, R/W-RAC, R/W-URAC Managing Director, Public Agencies & Housing Overland, Pacific & Cutler, Inc. 1 Jenner, Suite 200 Irvine, CA 92618 (800) 304-2000 Delivered on/by: Received by Posted on/by: Recipient’s Signature Mailed/receipt received on: Date ---PAGE BREAK--- © 1980-2012 Overland, Pacific & Cutler, Inc. (11/12) Page 1 General Information Notice May 21, 2014 Business Owner Name of Business Address Address Dear Business Owner: Jamboree Housing Corporation and Innovative Housing Opportunities, Inc. (called here the “Developer”) is interested in acquiring the property you currently occupy at <

> Anaheim, CA for their proposed housing project, the Lincoln Avenue Apartments Project (called here the “Project”). This notice is to inform you of your rights under State and Federal law, if applicable. If the Developer acquires the property, and you are displaced for the Project, you will be eligible for relocation assistance under California Government Code 7260, Title 25 of the California Code of Regulations, the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA), as amended and HUD Handbook 1378. However, you do not have to move now. This is not a notice to vacate the premises or a notice of relocation eligibility. The Developer has retained the professional firm of Overland, Pacific & Cutler, Inc. (OPC) to represent the Developer and assist in the relocation process. In order to assess and better plan for the relocation needs of possible displaced non-residential occupants in the Project, the Developer is preparing a Relocation Plan. To prepare this Relocation Plan, OPC staff will need to meet with you at your place of business to assess your relocation needs. OPC will be in the area of your business beginning the week of May 19th and will be trying to contact you then. If you want to make an appointment that is convenient for you, please call the relocation agent identified below. Jill Craig (800) 901-5263 If you rent or lease your unit, you should continue to pay your rent to your landlord, because failure to pay rent and meet your obligations as a tenant may be cause for eviction and loss of relocation assistance. You are urged not to move or sign any agreement to purchase or lease a unit before receiving formal notice of eligibility for relocation assistance. If you move or are evicted before receiving such notice, you will not be eligible to receive relocation assistance. Please contact us before you make any moving plans. If the Developer acquires the property and you are eligible for relocation assistance, you will be given advisory services, including referrals to replacement sites, and at least 90 days advance written notice of the date you will be required to move. You would also receive either a payment for actual moving and reestablishment expenses, or, a fixed payment in lieu of a payment for actual moving and reestablishment expenses. ---PAGE BREAK--- © 1980-2012 Overland, Pacific & Cutler, Inc. (11/12) Page 2 Pursuant to the Public Law 105-117, in order to be eligible to receive non-residential relocation benefits in federally-funded projects, in the case of an unincorporated business, each owner must be either a citizen or national of the United States, or an alien who is lawfully present in the United States. The owner of a sole proprietorship and all owners of a partnership must provide information regarding their lawful presence in the United States, and a for-profit or a non-profit corporation must certify that it is authorized to conduct business within the United States. Owners of sole proprietorships or partnerships, who are not lawfully present in the United States, or who decline to provide this information, are not eligible for relocation assistance, unless such eligibility would result in exceptional hardship to a qualifying spouse, parent, or child. Relocation benefits will be prorated to reflect the number of owners with certified lawful presence in the United States. Again, this is not a notice to vacate and does not establish eligibility for relocation payments or other relocation assistance. If the Developer decides not to purchase the property, you will be notified in writing. Any person aggrieved by a determination as to eligibility for, or the amount of, a payment authorized by the Developer’s Relocation Assistance Program may have the appeal application reviewed by the Developer in accordance with its appeals procedure. Complete details on appeal procedures are available upon request from the Developer. If you have any questions about this or any other relocation issues, please contact me at the address and the phone number below. Sincerely, Michele Folk, SR/WA, R/W-RAC, R/W-URAC Managing Director, Public Agencies & Housing Overland, Pacific & Cutler, Inc. 1 Jenner, Suite 200 Irvine, CA 92618 (949) 951-5263 Delivered on/by: Received by Posted on/by: Recipient’s Signature Mailed/receipt received on: Date ---PAGE BREAK--- ---PAGE BREAK--- © 1980-2012 Overland, Pacific & Cutler, Inc. (Nov-12) Page 1 of 8 Relocation Assistance Informational Statement For Families and Individuals (Federal - Section 104(d)) Displacing Agency: JHC IHO Anaheim Housing Partners, LP Project Name: Lincoln Avenue Apartments Project Displacing Agency Representative: Overland, Pacific & Cutler, Inc. 1 Jenner, Suite 200 Irvine, CA 92618 Phone: (800) 400-7356 Informational Statement Content: 1. General Information 2. Assistance In Locating A Replacement Dwelling 3. Moving Benefits 4. Replacement Housing Payment 5. Current Housing Choice Voucher Tenants 6. Qualification For And Filing Of Relocation Claims 7. Rental Agreement 8. Evictions 9. Appeal Procedures – Grievance 10. Tax Status of Relocation Benefits 11. Lawful Presence Requirement 12. Non-Discrimination and Fair Housing 13. Additional Information And Assistance Available Spanish speaking agents are available. Si necesita esta información en español, por favor llame a su agente. ---PAGE BREAK--- © 1980-2012 Overland, Pacific & Cutler, Inc. (Nov-12) Page 2 of 8 Informational Statement for Families and Individuals (Federal – Section 104(d)) 1. GENERAL INFORMATION The dwelling in which you now live is in a project area to be improved by, or financed through, the Displacing Agency using federal funds. If and when the project proceeds, and it is necessary for you to move from your dwelling, you may be eligible for certain benefits. You will be notified in a timely manner as to the date by which you must move. Please read this information, as it will be helpful to you in determining your eligibility and the amount of the relocation benefits you may receive under the federal law. You will need to provide adequate and timely information to determine your relocation benefits. The information is voluntary, but if you don’t provide it, you may not receive the benefits or it may take longer to pay you. We suggest you save this informational statement for reference. The Displacing Agency has retained the professional firm of Overland, Pacific & Cutler, Inc. (OPC) to provide relocation assistance to you. The firm is available to explain the program and benefits. Their address and telephone number is listed on the cover. PLEASE DO NOT MOVE PREMATURELY. THIS IS NOT A NOTICE TO VACATE YOUR DWELLING. However, if you desire to move sooner than required, you must contact your relocation agent at Overland, Pacific & Cutler, Inc., so you will not jeopardize any benefits. This is a general informational brochure only, and is not intended to give a detailed description of either the law or regulations pertaining to the Displacing Agency’s relocation assistance program. Please continue to pay your rent to your current landlord, otherwise you may be evicted and jeopardize the relocation benefits to which you may be entitled to receive. Once the Displacing Agency acquires the property, you will also be required to pay rent to the Displacing Agency. This brochure describes the relocation payments and other relocation assistance provided under Section 104(d) of the Housing and Community Development Act of 1974 (section 104(d)) to eligible persons displaced from their homes. Persons eligible for assistance have the option of declining the section 104(d) assistance and receiving assistance under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA), if they decide that it is in their best interest. To be eligible for relocation assistance under section 104(d), you must be a lower-income person (family or individual) and must move as a direct result of the "conversion" or demolition of your dwelling unit for a project in which Federal Community Development Block Grant (CDBG), Section 108 Loan Guarantee, or HOME Investment Partnerships funds are used. "Lower-income" means that your income does not exceed 80% of the median income for the area as established by the U.S. Department of Housing and Urban Development (HUD). Generally, "conversion" means that before the project, your unit had a "market rent" at or below the HUD Fair Market Rent (FMR) standard, and, after the project, the market rent exceeds the FMR, or the unit was converted to a nonresidential use. HUD determines the FMRs for use in its programs. The levels vary by metropolitan area and by the size of the unit. ---PAGE BREAK--- © 1980-2012 Overland, Pacific & Cutler, Inc. (Nov-12) Page 3 of 8 The Displacing Agency will determine whether you qualify as a lower-income person and if your home will be demolished or "converted." If you do not qualify for section 104(d) assistance, you may be eligible for relocation assistance under the URA. 2. ASSISTANCE IN LOCATING A REPLACEMENT DWELLING The Displacing Agency, through its representatives, will assist you in locating a comparable replacement dwelling by providing referrals to appropriate and available housing units. You are encouraged to actively seek such housing yourself. When a suitable replacement dwelling unit has been found, your relocation agent will carry out an inspection and advise you as to whether the dwelling unit meets decent, safe and sanitary housing requirements. A decent, safe and sanitary housing unit provides adequate space for its occupants, proper weatherproofing and sound heating, electrical and plumbing systems. Your new dwelling must pass inspection before relocation assistance payments can be authorized. 3. MOVING BENEFITS If you must move as a result of displacement by the Displacing Agency, you will receive a payment to assist in moving your personal property. The actual, reasonable and necessary expenses for moving your household belongings may be determined based on the following methods: • A Fixed Moving Payment based on the number of rooms you occupy (see below); or • A payment for your Actual Reasonable Moving and Related Expenses based on at least two written estimates and receipted bills; or • A combination of both (in some cases); and • Other Moving Expenses depending on program requirements For example, you may choose a Self-Move, receiving a payment based on the Fixed Residential Moving Cost Schedule shown below, plus contract with a professional mover to transport your grand piano and /or other items that require special handling. In this case, there may be an adjustment in the number of rooms which qualify under the Fixed Residential Moving Cost Schedule. A. Fixed Moving Payment (Self-Move) A Fixed Moving Payment is based upon the number of rooms you occupy and whether or not you own your own furniture. The payment is based upon a schedule approved by the Displacing Agency, and ranges, for example, from $450.00 for one furnished room to $2,365.00 for eight rooms in an unfurnished dwelling. (For details see the table). Your relocation agent will inform you of the amount you are eligible to receive, if you choose this type of payment. If you select a fixed payment, you will be responsible for arranging for your own move, and the Displacing Agency will assume no liability for any loss or damage of your personal property. A fixed payment also includes utility hook-up and other related moving fees. Fixed Moving Schedule CALIFORNIA (Effective 2012) Occupant Owns Furniture: 1 room $685 2 rooms $880 3 rooms $1,100 4 rooms $1,295 5 rooms $1,570 6 rooms $1,815 7 rooms $2,090 8 rooms $2,365 Each additional room $250 Occupant does NOT Own Furniture: 1 room $450 Each additional room $85 ---PAGE BREAK--- © 1980-2012 Overland, Pacific & Cutler, Inc. (Nov-12) Page 4 of 8 B. Actual Moving Expense (Commercial Move) If you wish to engage the services of a licensed commercial mover and have the Displacing Agency pay the bill, you may claim the ACTUAL cost of moving your personal property up to 50 miles. Your relocation agent will inform you of the number of competitive moving bids (if any) which may be required, and assist you in developing a “mover” scope of services for Displacing Agency approval. C. Other Moving Expenses Under the Section 104(d) program, payment of a security deposit required to rent a replacement dwelling and any credit check required to rent or purchase a replacement unit are eligible expenses. Also, interim living costs, when required as a result of the planned relocation program are eligible. 4. REPLACEMENT HOUSING PAYMENT You may be eligible for a payment to assist in renting or purchasing a comparable replacement dwelling. If so, you may choose assistance under section 104(d) or under the URA. For most lower- income tenants, the amount of assistance provided under section 104(d) is greater. A. Section 104(d) Rental Assistance If you are eligible, you will receive assistance based on estimated needs for a period of 60 months. The Agency may offer you that assistance in cash or under the Housing Choice Voucher (HCV) Program. The Agency will tell you which option it is providing to you. • Cash Rental Assistance. A household’s “need” for rental assistance is computed by subtracting the highest of the following calculations from the rent and estimated average utility costs for your new home (or a comparable replacement home, if that cost is lower): 1. 30 percent of the household’s adjusted income, 2. 10 percent of the household’s gross income, or 3. The welfare rent allowance (where designated). That need, if any, is multiplied by 60, to determine the total amount that you will receive. This amount will be paid directly to you in installments or other periodic payments. Example: Let's say that your family's adjusted income is $600, and the rent and estimated average utility costs for the comparable replacement home to which you move are $350. In this case, your need would be $170 [$350 - $180 (30 percent of $600)]. Multiplying this amount by 60 results in $10,200 of rental assistance. • Housing Choice Voucher (HCV) (section 104(d)). You may be offered a HCV. If so, you will also be referred to comparable replacement homes where the owner will accept the voucher. If the rent and estimated average utility costs for both the comparable replacement home and the unit to which you relocate exceed the voucher “payment standard,” you will qualify for cash assistance to cover the gap for 60 months. ---PAGE BREAK--- © 1980-2012 Overland, Pacific & Cutler, Inc. (Nov-12) Page 5 of 8 Advantages of HCV Assistance. The HCV assistance may continue for as long as you have a need. Unlike cash assistance, HCV assistance is recomputed each year to reflect changes in your income, rent or the cost of utilities. While cash assistance will terminate at the end of 60 months, HCV assistance may continue to be available after the 60-month period ends if you still qualify as a lower-income person. B. URA Rental Assistance URA rental assistance is computed by subtracting the "base rent" for your present home from the rent and average cost of utilities for your new home (or a comparable replacement home, if that cost is lower). That need, if any, is multiplied by 42, to determine the total amount that you will receive. This amount will be paid directly to you in installments or other periodic payments. Generally, the base rent for your present home is the lesser of: the rent and average cost for utilities, or thirty (30) percent of your gross household income (if you are low-income based on HUD income limits). Examples: Let's say that the rent and average cost for utilities for your present home are $250; the rent and estimated average utility costs for a comparable replacement home are $350; and your gross income is $700. In this case, your "base rent" would be $210 because you are low-income and that amount (30 percent of your income) is less than the cost of rent and utilities at your present home ($250). • If you rent a replacement home for $360 per month, including estimated average utility charges, you will receive $5,880. That amount is 42 times $140 (the difference between the "base rent" for your present home ($210) and the cost for a comparable replacement home • If you rent a replacement home for $310, including estimated average utility charges, you will receive $4,200. That amount is 42 times $100 (the difference between the "base rent" for your present home ($210) and the actual cost of your new home C. Purchase Assistance If you buy, rather than rent, a replacement home, you may be eligible for assistance to make a down payment. The amount depends on the type of housing that you buy. Section 104(d) purchase assistance is limited to mutual housing and cooperative housing. If you wish to purchase a house that is not mutual or cooperative housing, your purchase assistance would be provided under the URA. Section 104(d) Purchase Assistance. If you buy a replacement home which is mutual or cooperative housing, you may be eligible for assistance based on the present value of the payments you would receive if you rented a comparable replacement home for 60 months. Remember, the payment is generally determined by subtracting 30 percent of your adjusted income from the rent and estimated average utility costs for a comparable replacement home. Example: Assuming the information in the prior section 104(d) example and a 4 percent return on passbook savings, the purchase assistance would be $9,231. Remember, your net ---PAGE BREAK--- © 1980-2012 Overland, Pacific & Cutler, Inc. (Nov-12) Page 6 of 8 contribution is $180, and the rent and estimated average cost of utilities for a comparable replacement home total $350. The difference is $170. The present value of 60 payments of $170, discounted at 4 percent, is $9,231. The full amount of the payment must be applied to the purchase of the mutual or cooperative housing that you buy. URA Purchase Assistance for Renters. URA assistance to make a down payment is equal to the amount you would receive if you had rented a comparable replacement home (42 times the amount obtained by subtracting the "base rent" for your present home from the rent and estimated average cost of utilities for a comparable replacement home). Remember, URA assistance is not limited to mutual housing or cooperatives. Example: Assuming the information in the prior URA examples, the assistance for a down payment would be $5,880. That amount is 42 times $140 (the difference between the "base rent" for your present home ($210) and the rent and estimated average utility costs for a comparable replacement home The full amount of the payment must be applied to the purchase of your new home. 5. CURRENT HOUSING CHOICE VOUCHER TENANTS If you are currently using a Housing Choice Voucher (HCV), when you do move, you may be eligible to transfer your HCV eligibility to a replacement site. In such cases, a comparable replacement dwelling will be determined based on your family composition at the time of displacement and the current housing program criteria. This may not be the size of the unit you currently occupy. Your relocation agent will provide counseling and other advisory services along with moving benefits. If the rent and estimated average utility costs for both the comparable replacement home and the unit to which you relocate exceed the voucher “payment standard,” you will qualify for cash assistance to cover the gap based on the assistance option chosen (URA or Section 104(d)). 6. QUALIFICATION FOR, AND FILING OF, RELOCATION CLAIMS To qualify for a Replacement Housing Payment, you must rent or purchase and occupy a comparable replacement unit within one year from the following: • For a tenant, the date you move from the displacement dwelling. • For an owner-occupant, the latter of: a. The date you receive final payment for the displacement dwelling, or, in the case of condemnation, the date the full amount of estimated just compensation is deposited in court; or b. The date the Displacing Agency fulfills its obligation to make available comparable replacement dwellings. All claims for relocation benefits must be filed with the Displacing Agency within eighteen (18) months from the date on which you receive final payment for your property, or the date, on which you move, whichever is later. ---PAGE BREAK--- © 1980-2012 Overland, Pacific & Cutler, Inc. (Nov-12) Page 7 of 8 7. RENTAL AGREEMENT As a result of the Displacing Agency's action to purchase the property where you live, you may become a tenant of the Displacing Agency. If this occurs, you will be asked to sign a rental agreement which will specify the rent to be paid, when rent payments are due, where they are to be paid and other pertinent information. 8. EVICTIONS Eviction for cause must conform to applicable State and local law. Any person who occupies the real property and is not in unlawful occupancy on the date of initiation of negotiations, is presumed to be entitled to relocation benefits, unless the Displacing Agency determines that: • The person received an eviction notice prior to the initiation of negotiations and, as a result, was later evicted; or • The person is evicted after the initiation of negotiations for serious or repeated violation of material terms of the lease; and • The eviction was not undertaken for the purpose of evading relocation assistance regulations. Except for the causes of eviction set forth above, no person lawfully occupying property to be purchased by the Displacing Agency will be required to move without having been provided with at least 90 days written notice from the Displacing Agency. 9. APPEAL PROCEDURES - GRIEVANCE Any person aggrieved by a determination as to eligibility for, or the amount of, a payment authorized by the Displacing Agency’s Relocation Assistance Program may have the appeal application reviewed by the Displacing Agency in accordance with its appeals procedure. Complete details on appeal procedures are available upon request from the Displacing Agency. 1O. TAX STATUS OF RELOCATION BENEFITS California Government Code Section 7269 indicates no relocation payment received shall be considered as income for the purposes of the Personal Income Tax Law, Part 10 (commencing with Section 170 01) of Division 2 of the Revenue and Taxation Code, or the Bank and Corporation Tax law, Part 11 (commencing with Section 23001) of Division 2 of the Revenue and Taxation Code. Furthermore, federal regulations (49 CFR Part 24, Section 24.209) also indicate that no payment received under this part (Part 24) shall be considered as income for the purpose of the Internal Revenue Code of 1954, which has been redesignated as the Internal Revenue Code of 1986. The preceding statement is not tendered as legal advice in regard to tax consequences, and displacees should consult with their own tax advisor or legal counsel to determine the current status of such payments. (IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting marketing or recommending to another party any matters addressed herein) ---PAGE BREAK--- © 1980-2012 Overland, Pacific & Cutler, Inc. (Nov-12) Page 8 of 8 11. LAWFUL PRESENCE REQUIREMENT In order to be eligible to receive relocation benefits in federally-funded relocation projects under URA, all members of the household to be displaced must provide information regarding their lawful presence in the United States. Any member of the household who is not lawfully present in the United States or declines to provide this information may be denied relocation benefits, unless such ineligibility would result in an exceptional and extremely unusual hardship to the alien’s spouse, parent, or child, any of whom is a citizen or an alien admitted for permanent residence. Exceptional and extremely unusual hardship is defined as significant and demonstrable adverse impact on the health or safety, continued existence of the family unit, and any other impact determined by the Displacing Agency to negatively affect the alien’s spouse, parent or child. Relocation benefits will be prorated to reflect the number of household members with certified lawful presence in the US. (Section 104(d) is not subject to this requirement.) 12. NON-DISCRIMINATION AND FAIR HOUSING No person shall on the grounds of race, color, national origin or sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under the Displacing Agency’s relocation assistance program pursuant to Title VI of the Civil Rights Act of 1964, Title VIII of the Civil Rights Act of 1968, and other applicable state and federal anti-discrimination and fair housing laws. You may file a complaint if you believe you have been subjected to discrimination. For details contact the Displacing Agency. 13. ADDITIONAL INFORMATION AND ASSISTANCE AVAILABLE Those responsible for providing you with relocation assistance hope to assist you in every way possible to minimize the hardships involved in relocating to a new home. Your cooperation will be helpful and greatly appreciated. If you have any questions at any time during the process, please do not hesitate to contact your relocation agent at Overland, Pacific & Cutler. ---PAGE BREAK--- © 1980-2012 Overland, Pacific & Cutler, Inc. (Dec-12) Page 1 of 10 Relocation Assistance Informational Statement For Business, Farm & Nonprofit (Federal – Limits Effective as of October 1, 2014) Displacing Agency: JHC IHO Anaheim Housing Partners, LP Project Name: Lincoln Avenue Apartments Project Displacing Agency Representative: Overland, Pacific & Cutler, Inc. 1 Jenner, Suite 200 Irvine, CA 92618 Phone: 1-800/901-5263 Spanish speaking agents are available. Si necesita esta información en español, por favor llame a su agente. ---PAGE BREAK--- © 1980-2012 Overland, Pacific & Cutler, Inc. (Dec-12) Page 2 of 10 Informational Statement for Business, Farm & Non-Profit (Federal) Introduction The property on which you now conduct your business is in an area to be improved by, or financed through, the Displacing Agency using federal funds. If and when the project proceeds, and it is necessary for you to move your business, you may be eligible for certain benefits. You will be notified in a timely manner as to the date by which you must move. Please read this information, as it will be helpful to you in determining your eligibility and the amount of the relocation benefits you may receive under the law. You will need to provide adequate and timely information to determine your relocation benefits. The information is voluntary, but if you don’t provide it, you may not receive the benefits or it may take longer to pay you. We suggest you save this informational statement for reference. The Displacing Agency has retained the professional firm of Overland, Pacific & Cutler, Inc. (OPC) to provide relocation assistance to you. The firm is available to explain the program and benefits. Their address and telephone number is listed on the cover. PLEASE DO NOT MOVE PREMATURELY. THIS IS NOT A NOTICE TO VACATE THE PROPERTY. However, if you desire to move sooner than required, you must contact your relocation agent at Overland, Pacific & Cutler, Inc., so you will not jeopardize any benefits. This is a general informational brochure only, and is not intended to give a detailed description of either the law or regulations pertaining to the Displacing Agency’s relocation assistance program. Please continue to pay your rent to your current landlord, otherwise you may be evicted and jeopardize the relocation benefits to which you may be entitled to receive. Once the Displacing Agency acquires the property, you will also be required to pay rent to the Displacing Agency. Summary of Available Relocation Assistance: A. Advisory assistance to explain the relocation process, the related eligibility requirements, the procedures for obtaining reimbursement for moving expenses and referrals to suitable replacement locations B. Payment for your moving expenses. You may receive one of the following options: Option 1: A Payment for Actual Reasonable Moving and Related Expenses; or Option 2: A Fixed Payment In Lieu of a Payment for Actual Moving and Related Expenses C. Other help to reestablish your business and minimize the impact of the move including help in preparing claim forms to request relocation payments. If you disagree with the Displacing Agency's decision as to your right to a relocation payment, or the amount of the payment, you may appeal that decision. ---PAGE BREAK--- © 1980-2012 Overland, Pacific & Cutler, Inc. (Dec-12) Page 3 of 10 GENERAL RELOCATION QUESTIONS 1. How Will I Know I Am Eligible for Relocation Assistance? Ordinarily, eligibility begins on the date the owner of the property receives the Displacing Agency's initial written offer to purchase the property. Therefore, you should not move before that date or receiving a notice of eligibility. If you do, you may not be eligible for relocation assistance. 2. How Will the Displacing Agency Know How Much Help I Need? You will be contacted at an early date and personally interviewed by an agent of the Displacing Agency. The interviewer will want to get information about your current operation, as well as identify movable personal property and non-movable improvements, determine your needs and preferences for a replacement location, estimate the time required to vacate the premises and your need for advance payments. During the interview, you may want to discuss other issues relative to your move. It is to your advantage to provide as much information as possible so that the Displacing Agency, through its relocation agent, can assist you in moving with a minimum of hardship. The information you give will be kept in confidence. 3. How Soon Will I Have to Move? Every reasonable effort will be made to provide you with sufficient time to find a suitable replacement location and reestablish your business. If possible, a mutually agreeable date for the move will be worked out. Unless there is an urgent need for the property your occupancy would present a health or safety emergency), you will not be required to move without at least 90 days advance written notice. It is important, however, that you keep in close contact with the Displacing Agency so that you are aware of the time schedule for carrying out the project and the approximate date by which you will have to move. 4. I Own the Property. Will I Be Paid for It Before I Have to Move? If you reach a voluntary agreement to sell your property to the Displacing Agency, you will not be required to move before you receive the agreed purchase price. If the property is acquired through an eminent domain proceeding, you cannot be required to move before the estimated fair market value of the property has been deposited with the court. (You should be able to withdraw this amount immediately, less any amounts necessary to pay off any mortgage or other liens on the property and to resolve any special ownership problems. Withdrawal of your share of the money will not affect your right to seek additional compensation for your property). 5. Will I Have to Pay Rent to the Displacing Agency Before I Move? You may be required to pay a fair rent to the Displacing Agency for the period between the acquisition of your property and the date that you move. Your rent and the terms of your tenancy will be generally the same as in the prior arrangement. ---PAGE BREAK--- © 1980-2012 Overland, Pacific & Cutler, Inc. (Dec-12) Page 4 of 10 6. How Will I Find a Replacement Location? Your relocation agent will provide you with current and continuing information on available replacement locations that meet your needs. You will also be provided with the names of local real estate agents and brokers who can assist you in finding the type of replacement location you require. However, you are urged to take an active role in identifying, and relocating to, a location of your choice. No one knows your needs better than you do. You will want a facility that provides sufficient space for your planned activities. You will also want to ensure that there are no zoning or other requirements which will unduly restrict your planned operations. Your relocation agent will explain which kind of moving costs are eligible for reimbursement and which are not eligible. That will enable you to carry out your move in the most advantageous manner. 7. What Other Assistance Will Be Available to Help Me? In addition to help in finding a suitable replacement location, your relocation agent will help you secure the services of outside specialists, as necessary, to plan the move, as well as provide assistance during the actual move and in the reinstallation of machinery and/or other personal property. The range of services depends on the needs of the business being displaced. You should ask the Displacing Agency’s relocation agent to tell you about the specific services that will be available to you. 8. I Have a Replacement Location and Want to Move. What Should I Do? Before you make any arrangements to move, notify the Displacing Agency’s relocation agent, in writing, of your intention to move. This should be done at least 30 days before the date you begin your move. The Displacing Agency will discuss the move with you and advise you of the relocation payment(s) for which you may be eligible, the requirements to be met, and how to obtain a payment. 9. I Plan to Discontinue My Business Rather than Move. What Should I Do? If you have decided to discontinue your business rather than reestablish it, you may still be eligible to receive a payment. Contact the Displacing Agency’s relocation agent and discuss your decision to discontinue your business. You will be informed of the payment, if any, for which you may be eligible, the requirements to be met, and how to obtain your payment. 10. What Kinds of Payments for Moving Expenses Will I Receive? Every business is eligible for a relocation payment to cover the reasonable cost of moving. Assuming you meet certain eligibility criteria, you may choose one of the following options: Option 1: A Payment for Actual Reasonable Moving and Related Expenses; or Option 2: A Fixed Payment In Lieu of Moving and Related Expenses These payment options are described below: ---PAGE BREAK--- © 1980-2012 Overland, Pacific & Cutler, Inc. (Dec-12) Page 5 of 10 Option 1: Payment for Actual Reasonable Moving and Related Expenses If you choose a Payment for Actual Reasonable Moving and Related Expenses, you may claim the cost of: 1. Transportation of personal property. Transportation costs for a distance beyond 50 miles are not eligible, unless the Displacing Agency determines that relocation beyond 50 miles is justified. 2. Packing, crating, unpacking, and uncrating of the personal property. 3. Disconnecting, dismantling, removing, reassembling, and reinstalling relocated machinery, equipment, and other personal property, and certain substitute personal property. This includes connection to utilities available within the building. It also includes modifications to the personal property, including those mandated by Federal, State or local law, code or ordinance, necessary to adapt it to the replacement structure, the replacement site, or the utilities at the replacement site, and modifications necessary to adapt the utilities at the replacement site to the personal property. 4. Storage of the personal property determined to be necessary by the Displacing Agency, not to exceed 12 months, unless the Displacing Agency determines that a longer period is warranted. 5. Insurance for the replacement value of the personal property in connection with the move and necessary storage. 6. The replacement value of property lost, stolen or damaged in the process of moving (not through fault or negligence of the displaced person, his or her agent or employee), where insurance covering such loss, theft or damage is not reasonably available. 7. Any license, permit, fees or certification required of your business at the replacement location. However, the payment may be based on the remaining useful life of the existing license, permit, fees or certification. 8. Reasonable and preauthorized professional services, the Displacing Agency determines to be necessary for planning the move of the personal property, (ii) moving the personal property, and (iii) installing the relocated personal property at the replacement location. 9. Re-lettering signs and replacing stationary on hand at the time of displacement that is made obsolete as a result of the move. 10. Actual direct loss of tangible personal property incurred as a result of moving or discontinuing your business. The payment will consist of the lesser of: The fair market value in place of the item, as is for continued use at the displacement site, less the proceeds from its sale. (To be eligible for payment, you must make a good faith effort to sell the personal property, unless the Displacing Agency determines that such effort is not necessary. When payment for property loss is claimed for goods held for sale, the fair market value will be based on the cost of the goods to the business, not the potential selling price.); or (ii) The estimated cost of moving the item as is, but with no allowance for storage; or for reconnecting a piece of equipment if the equipment is in storage or not being used at the acquired site. (If you elect to discontinue your business, the estimated cost will be based on a moving distance of 50 miles.) ---PAGE BREAK--- © 1980-2012 Overland, Pacific & Cutler, Inc. (Dec-12) Page 6 of 10 11. Purchase of substitute personal property. If an item of personal property which is used as part of your business is not moved but is replaced with a substitute item that performs a comparable function at the replacement site, you will be entitled to payment for the lesser of: The cost of the substitute item, including installation costs at the replacement site, minus any proceeds from the sale or trade-in of the replaced item; or (ii) The estimated cost of moving and reinstalling the replaced item but with no allowance for storage. At the Displacing Agency’s discretion, the estimated cost for a low cost or uncomplicated move may be based on a single bid or estimate. 12. The reasonable cost incurred in attempting to sell an item that is not to be relocated. 13. Searching for a replacement location. Your business is entitled to reimbursement for actual expenses, not to exceed $2,500 as the Displacing Agency determines to be reasonable, which are incurred in searching for a replacement location including: i) Transportation ii) Meals and lodging away from home. iii) Time spent searching, based on reasonable salary or earnings. iv) Fees paid to a real estate agent or broker to locate a replacement site, exclusive of any fees or commissions related to the purchase of such site. v) Time spent in obtaining permits and attending zoning hearings; and vi) Time spent negotiating the purchase of a replacement site based on a reasonable salary or earnings. 14. When the personal property to be moved is of low value and high bulk, and the cost of moving the property would be disproportionate to its value in the judgment of the Displacing Agency, the allowable moving cost payment shall not exceed the lesser of: the amount which would be received if the property were sold at the site or the replacement cost of a comparable quantity delivered to the new business location. 15. Other related moving expenses as the Displacing Agency determines to be reasonable and necessary, including: i) Connection to available nearby utilities from the right-of-way to improvements at the replacement site; ii) Professional services performed prior to the purchase or lease of a replacement site to determine its suitability for your business operation, including but not limited to soil testing, feasibility and marketing studies (excluding any fees or commissions directly related to the purchase or lease of such site). At the Displacing Agency’s discretion, a reasonable pre-approved hourly rate may be established iii) Impact fees or one-time assessments for anticipated heavy utility usage, as determined by the Displacing Agency. The Displacing Agency’s relocation agent will explain all eligible moving costs, as well as, those which are not eligible. You must be able to account for all costs that you incur, so keep all your receipts. The Displacing Agency will inform you of the documentation needed to support your claim. You may minimize the amount of documentation needed to support your claim, if you elect to "self-move" your property. Payment for a self-move is based on the amount of an acceptable low bid or estimate obtained by the ---PAGE BREAK--- © 1980-2012 Overland, Pacific & Cutler, Inc. (Dec-12) Page 7 of 10 Displacing Agency. If you self-move, you may move your personal property using your own employees and equipment or a commercial mover. If you and the Displacing Agency cannot agree on an acceptable amount to cover the cost of the self-move, you will have to submit full documentation in support of your claim. You may elect to pay your moving costs yourself and be reimbursed by the Displacing Agency or, if you prefer, you may have the Displacing Agency pay the mover directly. In either case, let the Displacing Agency’s relocation agent know before you move. The Displacing Agency agent can help you select a reliable and reputable mover. When a payment for "actual direct loss of personal property" or "substitute personal property" is made for an item, the estimated cost of moving the item may be based on the lowest acceptable bid or estimate obtained by the Displacing Agency. If not sold or traded-in, the item must remain at the old location and ownership of the item must be transferred to the Displacing Agency before you may receive the payment. In addition to the reimbursable expenses described above, a small business, farm or non-profit organization may be eligible to receive a payment of up to $25,000 for expenses actually incurred in relocating and reestablishing its operation at a replacement site. Eligible expenses must be reasonable and necessary, as determined by the Displacing Agency. They may include but are not limited to the following: 1. Repairs or improvements to the replacement real property as required by federal, state or local law, code or ordinance. 2. Modifications to the replacement property to accommodate the business operation or make replacement structures suitable for conducting the business. 3. Construction and Installation costs for exterior signage to advertise the business. 4. Redecoration or replacement of soiled or worn surfaces at the replacement site, such as paint, paneling or carpeting. 5. Advertising of replacement location. 6. Estimated increased costs of operation during the first 2 years at the replacement site, for such items as: a. Lease or rental charges b. Personal or real property taxes c. Insurance premiums, and d. Utility charges (excluding Impact fees) 7. Other items that the Displacing Agency considers essential to the reestablishment of the business. The following is a non-exclusive listing of reestablishment expenditures not considered to be reasonable, necessary or otherwise eligible: § Purchase of capital assets, such as, office furniture, filing cabinets, and machinery or trade fixtures. § Purchase of manufacturing materials, production supplies, product inventory, or other items used in the normal course of the business operation. § Interest costs associated with any relocation expense or the purchase of replacement property. § Payment to a part-time business in the home which does not contribute materially to the household income. ---PAGE BREAK--- © 1980-2012 Overland, Pacific & Cutler, Inc. (Dec-12) Page 8 of 10 Option 2: Fixed Payment In Lieu of a Payment for Actual Reasonable Moving and Related Expenses A displaced business, non-profit organization or farm may be eligible to choose a fixed payment in lieu of the payments for actual moving and related expenses and actual reasonable reestablishment expenses. The payment may not be less than $1,000.00 or more than $40,000.00. For a business or farm, the payment is based on the average annual net earnings before Federal, State and local income taxes during the 2 taxable years immediately prior to the taxable year in which it was displaced. For a non-profit organization, the payment is based on the average of 2 years annual gross revenues less administrative expenses. In order to qualify for this payment, the Displacing Agency must determine that: 1. The business owns or rents personal property which must be moved in connection with the displacement and for which an expense would be incurred in such move, and the business vacates or relocates from its displacement site. 2. The business cannot be relocated without a substantial loss of existing patronage (clientele or net earnings). 3. The business is not a part of a commercial enterprise having more than three other entities which are not being acquired by the Displacing Agency, and which are engaged in the same or similar business activities. 4. The business is not operated at the displacement dwelling/site solely for the purpose of renting such dwelling/site to others. 5. The business contributed materially to the income of the displaced person during the two taxable years prior to displacement. If the business or farm was not in operation for the full two years prior to displacement, the net earnings are based on the actual period of operation at the acquired site projected to an annual rate. Average net earnings may be based on a different period of time when the Displacing Agency determines it to be more equitable. Net earnings include any compensation paid to the owners of the business, a spouse or dependents. Proof of net earnings must be furnished to the Displacing Agency through income tax returns, certified financial statements, or other reasonable evidence which the Displacing Agency determines is satisfactory. For a qualified non-profit organization, gross earnings may include membership fees, class fees, cash donations, tithes and receipts from sales or other forms of fund collection that enables the non-profit organization to operate. Administrative expenses are those for administrative support such as rent, utilities, salaries, advertising and other like items as well as fund raising expenses. Operating expenses for carrying out the purposes of the non-profit organization are not included in administrative expenses. The monetary receipts and expense amounts may be verified with certified financial statements or financial documents required by public agencies. The Displacing Agency will inform you as to your eligibility for this payment option and the documentation you must submit to support your claim. Remember, when you elect to take this payment option you are not entitled to reimbursement for any other moving expenses, i.e. Option A described above. ---PAGE BREAK--- © 1980-2012 Overland, Pacific & Cutler, Inc. (Dec-12) Page 9 of 10 11. I Own an Outdoor Advertising Display. What Relocation Payment Will I Receive? As the owner of an outdoor advertising display, you are eligible for a Relocation Payment For Actual Reasonable Moving and Related Expenses. You are not eligible to receive a Payment In Lieu of a Payment For Actual Reasonable Moving and Related Expenses. If you choose not to relocate or replace the sign, the payment for "direct loss of personal property" would be the lesser of: the depreciated reproduction cost of the sign, as estimated by the Displacing Agency, less the proceeds from its sale, or the estimated cost of moving the sign without temporary storage. The Displacing Agency will inform you as to the exact costs that may be reimbursed. 12. How do I Receive a Relocation Payment? You must file a claim for a relocation payment. The Displacing Agency’s relocation agent will provide you with the required claim forms, assist you in completing them, and explain the type of documentation that you must submit in order to receive your relocation payments. If you must pay any relocation expenses before you move because you must provide a security deposit if you lease your new location), discuss your financial needs with the Displacing Agency. You may be able to obtain an advance payment. An advance payment may be placed in "escrow" to ensure that the move will be completed on a timely basis. If you are a tenant, you must file your claim within 18 months after the date you move. If you own the property, you must file within 18 months after the date you move, or the date you receive the final acquisition payment, whichever is later. However, it is to your advantage to file as soon as possible after you move. The sooner you submit your claim, the sooner it can be processed and paid. If you are unable to file your claim within 18 months, the Displacing Agency may extend this period. You will be paid after you file an acceptable claim. If there is any question regarding your right to a relocation payment or the amount of the payment, you will be notified, in writing, of the problem and the action you may take to resolve the matter. 13. Non-Discrimination No person shall on the grounds of race, color, national origin or sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under the Displacing Agency’s relocation assistance program pursuant to Title VI of the Civil Rights Act of 1964, Title VIII of the Civil Rights Act of 1968, and other applicable state and federal anti-discrimination laws. You may file a complaint if you believe you have been subjected to discrimination. For details contact the Displacing Agency. 14. Appeals Any person aggrieved by a determination as to eligibility for, or the amount of, a payment authorized by the Displacing Agency’s Relocation Assistance Program may have the appeal application reviewed by the Displacing Agency in accordance with its appeals procedure. Complete details on appeal procedures are available upon request from the Displacing Agency. ---PAGE BREAK--- © 1980-2012 Overland, Pacific & Cutler, Inc. (Dec-12) Page 10 of 10 15. Tax Status of Relocation Benefits California Government Code Section 7269 indicates no relocation payment received shall be considered as income for the purposes of the Personal Income Tax Law, Part 10 (commencing with Section 170 01) of Division 2 of the Revenue and Taxation Code, or the Bank and Corporation Tax law, Part 11 (commencing with Section 23001) of Division 2 of the Revenue and Taxation Code. Furthermore, federal regulations (49 CFR Part 24, Section 24.209) also indicate that no payment received under this part (Part 24) shall be considered as income for the purpose of the Internal Revenue Code of 1954, which has been redesignated as the Internal Revenue Code of 1986. The preceding statement is not tendered as legal advice in regard to tax consequences, and displacees should consult with their own tax advisor or legal counsel to determine the current status of such payments. (IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting marketing or recommending to another party any matters addressed herein) 16. Lawful Presence Requirement Pursuant to the Public Law 105-117, in order to be eligible to receive non-residential relocation benefits in federally-funded projects, in the case of an unincorporated business, each owner must be either a citizen or national of the United States, or an alien who is lawfully present in the United States. The owner of a sole proprietorship and all owners of a partnership must provide information regarding their lawful presence in the United States, and a for-profit or a non-profit corporation must certify that it is authorized to conduct business within the United States. Owners of sole proprietorships or partnerships, who are not lawfully present in the United States, or who decline to provide this information, are not eligible for relocation assistance, unless such ineligibility would result in an exceptional and extremely unusual hardship to the alien’s spouse, parent, or child, any of whom is a citizen or an alien admitted for permanent residence. Exceptional and extremely unusual hardship is defined as significant and demonstrable adverse impact on the health or safety, continued existence of the family unit, and any other impact determined by the Displacing Agency to negatively affect the alien’s spouse, parent or child. Relocation benefits will be prorated to reflect the number of owners with certified lawful presence in the United States. 17. Additional Information If you have further questions after reading this brochure, please contact the Displacing Agency’s relocation agent at Overland, Pacific & Cutler, Inc. ---PAGE BREAK---