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HomeMy WebLinkAboutNo. 2023 amending and re-adopting the dept. of redevelopment relocation policy and policy of management of acquired property to include the SSDA and the NNDAR1 I RESOLUTION NO. 2023 A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION AMENDING AND RE- ADOPTING THE DEPARTMENT OF REDEVELOPMENT RELOCATION POLICY AND POLICY OF MANAGEMENT OF ACQUIRED PROPERTY TO INCLUDE THE SOUTH SIDE DEVELOPMENT AREA AND THE NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA WHEREAS, on May 10, 1991 the South Bend Redevelopment Commission ( "Commission ") approved and adopted a Relocation Policy and a Policy of Management of Acquired Properties setting forth its policies and procedures and requirements concerning relocation benefits and services provided to persons and businesses displaced as a result of redevelopment activities in certain development areas previously designated by the Commission; and WHEREAS, the Relocation Policy has been amended and re- adopted by the Commission on June 4, 1999; and WHEREAS, the Commission desires to amend and re -adopt the Relocation Policy and the Policy of Management of Acquired Properties to include the South Side Development Area and the Northeast Neighborhood Development Area. NOW, THEREFORE, BE IT RESOLVED by the South Bend Redevelopment Commission as follows: 1. The Department of Redevelopment Relocation Policy and Policy of Management of Acquired Properties are hereby amended to include the South Side Development Area and the Northeast Neighborhood Development Area. 2. The Relocation Policy and the Policy of Management of Acquired Properties, as amended herein, are each re- adopted by the Commission . 3. This Resolution shall be in full force and effect after its adoption by the South Bend Redevelopment Commission. ADOPTED at a meeting of the South Bend Redevelopment Commission held on December 19, 2003 at 1300 County -City Building, 227 West Jefferson Boulevard, South Bend, Indiana 46601. ATTEST: HAWpdata\Reso]utions\Res 2023.wpd SOUTH ND REDEVELOPMENT COMMISSION Robert W. Hunt, President ti c a� .�� ao-21 Department of Redevelopment South Bend, Indiana Relocation Policy The purpose of this statement is to set forth relocation policies, procedures and requirements concerning relocation benefits and services provided to persons and businesses displaced as a result of activities in the South Bend Central Development Area, the Sample -Ewing Development Area, the Airport Economic Development Area, the West Washington- Chapin Development Area, the South Side Development Area or the Northeast Neighborhood Development Area. For purposes of this policy, displaced persons or businesses are defined at 49CFR 24.2 (g). Relocation policies and procedures adopted by the South Bend Redevelopment Commission are subject to the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (Uniform Act). This relocation policy supplements the Uniform Act, which provides for a number of types of relocation payments, and will extend additional assistance to persons and businesses being displaced. This policy summarizes many provisions of the Uniform Act. For exact determinations, it will be necessary to read the appropriate sections of the Uniform Act. I. Relocation Assistance Services A. General. The Department of Redevelopment will assist in relocating displaced families and individuals in purchasing or renting a comparable dwelling of their choice (within their financial means) which is decent, safe and sanitary. The Department will, to the extent possible, locate displaced persons in the neighborhood of their choice, which is reasonably accessible to their place of employment or potential place of employment. The Department of Redevelopment will also assist displaced businesses, farm operations and non - profit organizations in purchasing or renting a suitable replacement location. B. Services to be Provided 1. Information concerning the availability of relocation payments and assistance as well as the requirements and procedures for obtaining those payments will be provided to all displaced persons and businesses which are to be relocated. IL 4- Re- adopted: 12/19/03 2. Personal interviews will be conducted to determine the relocation needs and preferences of displaced persons and businesses, to explain further those relocation payments and other assistance for which they may be eligible, and the procedures for obtaining such payments and assistance. These interviews will be conducted, to the extent possible, at a reasonable time convenient to the displaced person or business. 3. Current information on the availability, location, purchase price, and rental costs of comparable replacement commercial properties shall be provided to displaced businesses. 4. Current information on the availability, location, purchase price, and rental costs of comparable replacement dwellings shall be provided to displaced persons. The Department will provide information as to the criteria for identifying a comparable replacement dwelling and the estimated purchase price or rental cost to be used as the basis for establishing the upper limit of the replacement housing payment. 5. Inspections will be performed by the Department or its representative to ensure that the housing meets the requirements of being decent, safe, and sanitary as described at 49CFR 24.2 (f). 6. Counseling and referral services will be provided with regard to housing, financing, employment, health, welfare and other assistance to minimize hardship. 7. Relocation assistance payments will be applied to the purchase or rental of a comparable replacement dwelling, to moving expenses, to bringing a purchased dwelling up to local, state and federal codes and towards miscellaneous costs eligible under the Uniform Act. Relocation services shall be carried out in a manner that will promote maximum choice within the community's total housing supply. Services shall be provided to assure that the relocation process will not result in different or separate treatment on account of race, color, religion, sex, national origin or source of income. Any person having a grievance resulting from alleged discrimination, violation of federal, state or city codes and laws may follow grievance procedures established by both federal and state law by contacting Legal Services Program of Northern Indiana, Inc., the South Bend Human Rights Commission, or the United States Department of . Housing and Urban Development (Indianapolis office). Further information on the subject of grievances and equal opportunity is available at the City of South Bend, Department of Redevelopment, 1200 County -City Building, South Bend, Indiana 46601, 219 - 235 -9371. -2- Re- adopted: 12/19/03 II. Types of Relocation Assistance Payments and Eligibility Requirements A. Residential Relocation — Replacement Housing Payment 1. Persons who are titled owners and have owned and occupied their home for at least 180 days prior to receiving a written offer to purchase from the Department of Redevelopment may be eligible for either a replacement housing payment for homeowners in an amount not to exceed $22,500 or a rental assistance payment in an amount not to exceed $5,250. Eligibility for this will be determined following 49CFR.24.401 or 49CFR 24.402(b). Such persons are also eligible for payment for moving expenses. 2. Persons who are titled owners and have owned and occupied their home for less than 180 days but more than 90 days prior to receiving a written offer to purchase from the department may be eligible for a rental assistance payment or a down payment assistance payment not to exceed $5,250. Such persons are also eligible for payment for moving expenses. 3. Persons who are purchasing by conventional sales agreement (land contract), have recorded the contract with the St. Joseph County Recorder or can provide physical evidence of such contract, will be entitled to relocation assistance as a displaced homeowner, in amounts and manner described in Paragraph II.A.1. above, based upon their period of occupancy, as detailed in Paragraph II.a.l. above. Such persons are also eligible for payment for moving expenses. 4. Tenants who have occupied the dwelling for at least 90 days prior to the effective date of "Notice of Relocation Eligibility" may be eligible for a rental assistance payment or a down payment assistance payment not to exceed $5,250. Eligibility for this payment will be determined following 49CFR 24.402. Such persons are also eligible for payment for moving expenses. In order to receive assistance, a separate, identifiable tenancy must exist. 5. Certain incidental expenses may be included in computing the Replacement Housing Payment but do not serve to increase the maximum allowable amount. These include: a. Typical and reasonable closing costs on the replacement home. -3- Re- adopted: 12/19/03 b. Such other costs as the Department determines to be incidental to the purchase. 6. Relocation assistance payments can be applied to bringing a purchased replacement dwelling up to local, state and federal codes. In order to implement this policy in a uniform manner, the following procedures must be followed: a. The displaced person selects the replacement dwelling and the Department of Redevelopment has the home inspected by the Neighborhood Code Enforcement office. b. All code violations are brought to the attention of the displaced person. C. The displaced person obtains a minimum of two proposals for necessary repair work. d. The Department of Redevelopment provides written authorization to the displaced person to enter into a contract with the contractor submitting the lowest proposal. This contract shall specify a time period for completion of all work not to exceed 60 days. e. The amount due under the contract is a factor used in determining the replacement housing payment. f. The replacement housing payment is made for all costs except work under contract. g. Work is done by contractor. h. Inspection is made by Neighborhood Code Enforcement office to assure Department of Redevelopment that work has been completed to code requirements. i. Remainder of replacement housing payment for contract work is made to displaced person by check made jointly payable to both displaced person and with contractor. It will be the displaced person's responsibility to cover all costs that exceed the amount of the replacement housing payment. '' -4- Re- adopted: 12/19/03 B. Re- establishment Expense— Non - Residential Moves In addition to receiving payment for actual moving costs, a business, farm operation or non - profit organization may be eligible to receive up to an additional $20,000 over - and -above what the URA allows for expenses actually incurred in relocating and re- establishing itself at a replacement site. 1. Eligible Expenses. a. Repairs or improvements to bring the replacement site up to code. b. Modifications to the replacement site. C. Up to $1,500 for constructing and installing exterior signage. d. Provision of utilities from the right -of -way to the improvements on the replacement site. e. Redecoration of soiled or worn surfaces. f. Licenses, fees and permits not paid as part of actual moving costs. g. Feasibility surveys, soil testing and marketing studies. h. Advertisement of replacement location, not to exceed $1,500. i. Professional services in connection with the purchase or lease of a replacement site. j. Estimated increased costs of operation during the first 2 years at the replacement site, not to exceed $5,000. k. Impact fees or one -time assessments for anticipated heavy utility usage. 1. Other items that the Department of Redevelopment considers essential to the re- establishment of the business, farm operation or non - profit organization. C, -5- Re- adopted: 12/19/03 2. Ineligible Expenses. IL a. Purchase of capital assets. b. Purchase of manufacturing materials, supplies or inventory. C. Interior or exterior refurbishments except as provided for in 49CFR 24.304(a) (5). d. Interest on money borrowed to make the move or purchase the replacement property. e. Payment to a part-time business in the home which does not contribute materially to the household income. C. Moving Expenses 1. Pavment for actual moviniz expenses— Residential a. Eligible Expenditures. A person displaced from a dwelling is entitled to a relocation payment for actual reasonable moving and related expenses including the cost of (1) Transporting the displaced person and personal property from the acquired site to a replacement site. Transportation costs beyond the first 50 miles from the site from which displacement occurred are not eligible except when the Department of Redevelopment determines that a move of longer distance is justified and reasonable. (2) Packing, crating, unpacking and uncrating the personal property. (3) Storage of the personal property, as the Department of Redevelopment determines to be necessary. (Generally, the period of needed storage will not exceed 12 months.) (4) Utility deposits, except telephone, if the eligible person is receiving a moving payment for actual moving expenses. (Utility deposits may not be included if the eligible person is receiving a fixed moving payment.) (5) Insurance of personal property in connection with the move and any necessary storage as determined by the Department of Redevelopment. (6) Disconnecting, dismantling, removing, re- assembling, reconnecting, and installing relocated household appliances and other personal property. IL -6- Re- adopted: 12/19/03 (7) Other moving - related expenditures that the Department of Redevelopment determines are reasonable and necessary. b. Ineligible Expenditures. A relocation payment for actual reasonable moving expenses may not include the cost of: (1) Moving structures, improvements, or other real property in which the displaced person reserved ownership. (This provision does not preclude the option of moving a house under 49CFR 24.401© (4).) (2) Interest on loans to cover moving expenses. (3) Personal injury. (4) Expenses searching for a replacement dwelling. (5) Actual direct loss of property. (6) Any legal fee or other cost for preparing a relocation claim or representing a claimant. 2. Payment for actual moving expenses— Non - Residential a. Eligible penditures. A displaced business, farm operation or non - profit organization is entitled to payment for actual reasonable moving and related costs including the cost of: (1) Transportation of personal property from the acquired site to the replacement site. Transportation costs for a distance beyond 50 miles are not eligible, unless the Department of Redevelopment determines that relocation beyond 50 miles is justified; (2) Packing, crating, unpacking and uncrating the personal property; (3) Disconnecting, dismantling, removing, re- assembling and re- installing relocated and substitute machinery, equipment, and other personal property. This 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. (4) Storage of the personal property, as the Department of Redevelopment determines to be necessary. (Generally, the period of needed storage will not exceed 12 months.) (5) Insurance of personal property in connection with the move and necessary storage; (6) Any license, permit or certification required of the IL -7- Re- adopted: 12/19/03 displaced person at the replacement location, to the extent such cost is (i) necessary to its re- establishment at the replacement location and (ii) does not exceed either the costs for one year or for the remaining useful life of the existing license, permit, or certification, whichever is less; (7) Professional services, including architect's, attorney's and engineer's fees, and consultant's charges, necessary for (i) planning the move of the personal property, or (ii) moving the personal property, or (iii) installing the relocated personal property at the replacement location; (8) Relettering signs and printing replacement stationery that are on hand at the time of the move and that are made obsolete as a result of the move; (9) Actual direct loss of tangible personal property as described at 49CFR 24.303; (10) Purchase of substitute personal property as described at 49CFR 24.303; (11) Searching for a replacement location as described at 49CFR 24.303; (12) The replacement value of property lost, stolen or damaged in the process of moving (not as a result of negligence) IL where insurance coverage is not readily available. (13) The reasonable cost of attempting to sell an item that is not to be relocated. (14) Other moving- related expenses that are not listed as ineligible under 49CFR 24.303, as the Department of Redevelopment determines to be reasonable and necessary. b. Ineligible xpenditures. A displaced business or farm operation is not entitled to payment for: (1) The cost of moving any structure or other real property improvement in which the displaced person reserved ownership. (This provision does not preclude the option of moving a building under 49CFR 24.4010 (4). 1. (2) Interest on a loan to cover moving expenses. (3) Loss of goodwill. (4) Loss of profits. (5) Loss of trained employees. -8- Re- adopted: 12/19/03 (6) Physical changes to the real property at the replacement location of a business or farm operation except as provided at 49CFR 24.303(a) (3) and 24.304(a). (7) Any additional operating expenses of a business or farm operation incurred because of operating in a new location except as provided at 49CFR 24.304(a) (10). (8) Personal injury. (9) Any legal fee or other cost for preparing a claim for a relocation payment or for representing the claimant before the Department of Redevelopment. 3. Fixed payment for Moving— Residential. As an alternative to receiving a payment for actual moving expenses, a fixed payment may be made. a. Amount. The amount shall be determined according to the applicable schedule approved by the Federal Highway Administration. The Department shall determine the amount of the claimant's moving expense allowance by using the schedule approved for use in Indiana regardless of where the claimant relocates. b. Criteria. The fixed moving expense payment shall be based on the number of rooms of furniture to be moved and the amount shown on the schedule for that number of rooms. The actual cost of the claimant's move shall not be taken into consideration in computing the amount of the fixed moving expense payment, nor whether the person moved himself ( "self- move ") or hired a commercial mover. A displaced person who elects to receive a fixed payment is not required to submit documentation in support of his or her moving claim. 4. Fixed Payment for Moving —Non- Residential. a. Business. A displaced business may be eligible to choose a fixed payment in lieu of payment for actual moving and re- establishment expenses. The payment shall equal the average annual net earnings of the business as computed in 49CFR 24.306(e) but not less than $1,000 or more than $20,000. Eligibility for this payment will be determined following 49CFR 24.306(a). b. Farm Operation. A displaced farm operation may be eligible to choose a fixed payment in lieu of payment for actual moving and re- establishment expenses. The payment shall equal the average annual net earnings of the farm operation as computed in 49CFR 24.306(e) but not less than $1,000 or more than $20,000. Eligibility for this payment will be determined following 49CFR 24.306(c). C. Non - Profit Organization. A displaced non - profit organization may C, -9- Re- adopted: 12/19/03 choose a fixed payment of $1,000 to $20,000 in lieu of the IL payments for actual moving and re- establishment expenses. Eligibility for this payment will be determined following 49CFR 24.306(d). II. Tunes of Relocation Assistance Payments and Eligibility RRequirements A. Residential Relocation — Replacement Housing Payment 4.1 Rental assistance payment to tenants determined to be eligible under 49CFR 24.402 shall be disbursed in two installments as described below and following 49CFR 24.403. 1. Rental Assistance is Paid to Displaced Individual or Household a. Rental assistance payment shall be made in two (2) equal installments. The first payment shall be made on or after occupation of the replacement rental property. Second payment shall be made six (6) months after initial payment. 2. Partial Payment of Rental Assistance Directly to the Landlord a. Where a displaced individual or household agrees to prepay rent for the replacement rental property, the balance of rental assistance payment shall be made in a lump sum to the displaced individual or household. This payment shall be made on or after occupation of the replacement rental property. C; -10- Re- adopted: 12/19/03 DEPARTMENT OF REDEVELOPMENT SOUTH BEND, INDIANA POLICY OF MANAGEMENT OF ACQUIRED PROPERTY INTRODUCTION This policy implements the requirement that the Department of Redevelopment (City) collect rent from properties acquired, controlled and rented in connection with the South Bend Central Development Area, Sample -Ewing Development Area, West Washington- Chapin Development Area, Airport Economic Development Area, South Side Development Area, and Northeast Neighborhood Development Area. POLICY I. Starting Date for Collection of Rents: All rents will be on a monthly basis, payable in advance, and will be collected by the City on the first of the month. The payment of rent for owner - occupied premises and tenant - occupied premises shall be as follows: A. Owners who occupy their properties at the time of acquisition by the City will be allowed a 60 day adjustment period immediately following the date of acquisition, during which time no rent will be collected. The former owner will commence paying rent on the first day of the month immediately following the end of the 60 day adjustment period: Provided however, that the Redevelopment Commission may extend the adjustment period upon a finding of significant hardship or other extenuating circumstances. B. Occupants who were tenants at the date of acquisition by the City will pay rent to the City beginning with the first day of the month immediately following the City's acquisition of the property. II. Establishment of Rental Rates: Rental rates for all properties acquired by the City, except as provided in Paragraph VIII, whether the properties were formerly owner - occupied or tenant - occupied, and including those occupied by persons, non - profit institutions or businesses, will be established as follows: A. Owners who occupied their properties at the date of acquisition by the City will pay rent at the rate of I% of the purchase price per month. B. Occupants who were tenants at the date of acquisition by the City will pay the same rent that they paid at the time of acquisition: Provided, however, that the HAWpdata\Redevelopment Conm�ission\Mgmt Acq Prop Policy 121603.wpd rent shall not exceed 30% of gross household income. III. Rent Collection and Delinquency, i�yment of Rent: All rents will be payable on the first of each month at the City of South Bend, Department of Redevelopment, 1200 County -City Building, 227 West Jefferson Boulevard, South Bend, Indiana 46601. A. Rent will be due and payable to the City on the first day of each month in advance, for the month during which time the property is occupied. B. If the rent is not paid by the fifth of the month, a written notice of delinquency shall be sent or delivered to the occupant, with an attempt to collect the overdue rent at that time. C. Rent not paid by the fifteenth of the month shall represent severe delinquency, and the occupant involved shall be served a final notice of delinquency which shall state that if the rent is not paid immediately, eviction proceedings will be instituted. IV. Rent Refunds, Rent Credits, and Rent Adjustments: The City may approve rent refunds, credits or adjustments under the following conditions: A. If an occupant moves during a period for which he has already paid rent to the City, he will be given a refund, determined by proration, to represent the unexpired portion of the rental period. B. Where an occupant has paid rent to a former owner for a period past the first day of the month when the City starts to collect rent, the occupant shall be given a rent credit for that period, starting from the first day of the month. C. Any rent due the former owner at the time of acquisition by the City, for a period before the acquisition date, will be considered delinquent to the former owner and solely the former owner's responsibility for collection. In no case shall the City act as collection agent for this type of delinquent rent. D. The City may review the rent established from time to time in light of the income and other conditions or circumstances to determine if the established rent is in fact equitable, or if undue hardship exists. V. Collection of Rent From Occupants Who Move While Rent is Delinquent: The City shall take all possible action to collect rent due the Department for the period of occupancy should an occupant move while rent is delinquent to the Department. HAWpdata\Redevelopment ConmtissionNgmt Acq Prop Policy 121603.wpd VI. Lease Agreement: Each occupant of the property acquired by the City shall be required to sign a month-to- month lease agreement with the Department. Tenants shall sign a lease immediately after the real estate closing on the property. For owner /occupants, the lease shall be signed at time of closing on the real estate. VII. Maintenance and Service: A. The occupant is responsible for all maintenance and repair of the interior and exterior of the leased premises. B. The occupant is also responsible for any damage caused by or from plumbing, gas, water, steam, or other pipes, or sewerage or any other repairs necessary for the decent, safe and sanitary condition of the leased premises. C. All repairs, service and maintenance shall not be considered reimbursable as a relocation expense. VIII. Lease of Cleared Land: A. The City may, at its discretion, lease cleared or vacant land on a temporary basis when such lease will not delay or adversely affect the final disposition of the particular,parcel of land. Any such temporary lease may be for the uses permitted under zoning and other regulations. B. Each temporary lease shall be formalized by a written lease agreement between the lessee and the City for such rent as may be agreed upon by the parties and upon a month -to -month basis. IX. Duration of Occupancy of Project Property: The duration of occupancy of property acquired in all project areas will be kept to a minimum. The duration will be such that it will not interfere with the expeditious and orderly carrying out of the redevelopment objectives of the project. X. Partial Occupancy of Multi -Unit Properties: The City shall give consideration to early vacation of multi -unit properties which are partially occupied. The purpose of this action is to avoid costly maintenance and service for large structures which are only partially occupied. HAWpdata\Redevelopment Corronission\lvlgmt Acq Prop Policy 121603.wpd XI. Cause of Eviction: ILI The eviction policy of the City will be used only as a last resort and only for one or more of the following reasons: (1) The occupant fails to pay the rent as established by the rental policy of the City and has been issued the notices prescribed by Section III. (2) The occupant maintains a nuisance on the property or uses the premises for illegal purposes. (3) The occupant commits a material breach of the rental lease. (4) The occupant refuses to consider accommodations which meet relocation standards. (5) The occupant refuses to admit the Relocation Director or staff members during normal and reasonable hours. (6) The occupant is in violation of a standard of occupancy under State or Local law which requires eviction. In the event the occupant commits or suffers any of the above referenced acts or activities, unless otherwise provided for herein, the City shall deliver notice to the occupant of the occurrence and that occupant is ordered to vacate the premises within fifteen (15) days of the issuance of that notice or civil eviction proceedings will begin. XII. Questions Relating to This Policy of Management of Acquired Propert y: Any questions on this Policy of Management of Acquired Property should be directed to the Department of Redevelopment, 1200 County -City Building, 227 West Jefferson Boulevard, South Bend, Indiana 46601, (574) 235 -9371. ILHAWpdata\Redevelopment Conunission\Mgmt Acq Prop Policy 121603.wpd