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HomeMy WebLinkAboutMO # 1278MUNICIPAL ORDER NO. 1278 A MUNICIPAL ORDER OF THE CITY OF PADUCAH, KENTUCKY, ADOPTING AN OPTIONAL RELOCATION ASSISTANCE POLICY FOR THE FOUNTAIN AVENUE HOUSING REVITALIZATION PROJECT WHEREAS, the City of Paducah, Kentucky, herein referred to as the City, is requesting Community Development Block Grant Funds (CDBG) program funds for the purpose of providing temporary relocation payments and moving expenses for the Fountain Avenue Revitalization Project located in Paducah, Kentucky, and WHEREAS, such activities are within the City's jurisdiction and are in compliance with the eligible activity requirements of the CDBG Program rules and regulations, and WHEREAS, any owner -occupant whose structure will be reconstructed or rehabilitated under last resort housing provisions with CDBG program funds, and WHEREAS, such residential structures are deteriorated to the extent that the owner has to move awaiting the rehabilitation or construction of the replacement structure on the existing site, and WHEREAS, under Section 5305(a)(11) of the Housing and Community Development Act of 1974, as amended (the Act), a grantee may use CDBG funds to provide relocation payments and other relocation assistance to persons displaced by activities that are not subject to the Uniform Relocation Assistance and Real Property Acquisition policies Act of 1974, as amended, (URA or Uniform Act) or in excess if URA requirements, and WHEREAS, the Agency deems it in the best interest of these owner occupants to develop a written Optional Relocation Assistance Policy (Policy) to provide the same level of moving and replacement housing assistance to each household being assisted, and WHEREAS, because this assistance is not required by State or local law, this written Policy will make available to the public a description of the relocation assistance that the City has elected to make available, and WHEREAS, the City does make assurance that it will provide this assistance in an equal and fair manner for those who qualify, and WHEREAS, the City defines and sets forth the eligibility requirements that will be considered for providing this assistance. BE IT ORDERED BY THE CITY OF PADUCAH, KENTUCKY: SECTION 1. The City of Paducah hereby adopts an "Optional Relocation Assistance Policy," for the Fountain Avenue Revitalization Project which will provide a description of the relocation assistance that the City has elected to make available in an M equal and fair manner for those who qualify and sets the eligibility requirements that will be considered for providing this assistance. SECTION 2. This municipal order shall be effective from and after the dates of its adoption. ATTEST: lwm" /f4� Tammara S. Brock, City Clerk Adopted by the Board of Commissioners March 27, 2007 Recorded by Tammara S. Brock, City Clerk, March 27, 2007 \mo\policy-ftn ave relocation assistance .: OPTIONAL RELOCATION ASSISTANCE POLICY FOR THE FOUNTAIN AVENUE HOUSING REVITALIZATION PROJECT TEMPORARY REL O CA TION ASSISTANCE GENERAL Whenever possible, those residents being relocated or whose homes are being rehabilitated ' T will be encouraged to remain in their existing structure while rehabilitation or rehabilitated work is being done. If the Agency staff makes a determination that the owner occupant cannot remain in the structure, the Agency will pay moving expenses and rent at another residence for a period to be determined by the Agency in accordance with the Agency's temporary relocation policy below: ELIGIBILITY Temporary relocation assistance is available only upon notification by the Agency that it is necessary for an owner occupant to move during reconstruction or rehabilitation activities. Temporary relocation costs must be reasonable and approved prior to the occupant entering into a lease or rental agreement. In general, the occupants, not the agency, shall pay refundable deposits. In general, rents at or below Fair Market Rents for the area will be considered reasonable. The Project Manager must approve rents above Fair Market Rent. Expenditures without prior approval of the Agency may be incurred at the risk of the occupant. MOVING EXPENSES Owner occupants who are eligible for a moving expense payment under the Uniform Act will receive the moving expenses they are eligible for in accordance with Uniform Act requirements. They will not be eligible for any additional moving expense payment for a temporary relocation. An occupant who must relocate temporarily while their house is being rehabilitated who is not .eligible for moving expenses under the Uniform Act will receive a lump sum payment for moving expenses based on the number of rooms of furniture in the house following the URA Moving Expense Payment Schedule for Kentucky. One half of the lump sum payment will be made when the occupant moves out of the house and the remaining one half will be paid when they move back into their home. RENTAL PAYMENTS Owner occupants will be encouraged to stay with friends or relatives especially when the temporary relocation is for a short period of time (30 days or less). Relatives and friends may charge the relocated family rent for providing shelter. However, the rent must be reasonable and not exceed one-half of the HUD listed fair market rent for the unit. Such agreements must be in writing and approved by the project manager. For longer relocations, the temporarily relocated family will first be given the option of renting any available housing the city may have acquired that would be suitable for temporary housing. Next, the city will work with the local public housing authority to provide temporary housing. If these sources are not available, the family will be assisted in finding a local, moderately priced hotel room (for short relocations) or other available rental properties. Rents must be reasonable for the area and generally should not exceed the HUD fair market rent for the locality. For owner -occupants, the city will pay the monthly rent. The occupants will be responsible for all utilities at the temporary site. The utilities included in the rent shall be considered when determining if the occupant shall pay a portion of the rent. The maximum temporary relocation payment per household for each month of temporary relocation: One Bedroom Unit — $350, If staying with friends or relatives - $175 Two Bedroom Unit - $450, If staying with friends or relatives - $225 Three Bedroom Unit —$600, If staying with friends or relatives - $300 Four Bedroom Unit - $625, If staying with friends or relatives - $315 Five Bedroom Unit - $700, If staying with friends or relatives - $350 r For a rental unit, the number of bedrooms is based on the number of bedrooms of the unit the household is moving out of unless additional bedrooms are needed due to overcrowding. If staying with friends or relatives, it is based on the number of bedrooms occupied by the relocated household. DEPOSITS The occupant shall be responsible for any deposits or lock purchases. The Agency shall not pay any refundable deposits. It is the occupants responsibility to meet all lease or rental requirements to obtain refunds of deposits including notifying the owner or rental agent of when the will be moving out of the unit. STORAGE If rehabilitated or rehabilitation work cannot be completed with the occupant's household goods in place, the Agency may provide insured commercial storage space. Temporary storage costs must be reasonable and approved by the Agency prior to the occupant entering into a rental agreement for temporary storage. Expenditures without prior approval of the Agency may be incurred at the risk of the occupant. No payments will be made to relatives or friends for temporary storage in uninsured spaces such as barns, residential garages or storage sheds. LENGTH OF TEMPORARY RELOCATION For reconstructed houses, the length of the approved temporary relocation shall generally be seven months. For rehabilitated houses, the length will be based on the expected time to complete the work. This will allow time for the occupant to move out, a six-month construction period and time for the occupant to move into the new house. The project manager must approve temporary relocations beyond seven months. Once a certificate of occupancy is issued for the house and the project manager has notified the family that they can now occupy the house, the family will be given a reasonable amount of time to move into the reconstructed /rehabilitated house. This will generally be 14 to 30 days depending on coordination with the rental agreement. It is the occupant's responsibility to move within the allotted time, clean the vacated temporary residence or storage building and return the key to the owner. The owner must provide proof that they have obtained their homeowners insurance prior to occupying the house. Participants must understand that if the house is completed in the winter or during other periods of wet or adverse weather, the yard work may not be completed at the same time as the house. The Agency will not be responsible for rental payments once the house itself is complete. If the occupants fail to vacate the temporary rental property in the time allotted, they shall be responsible for paying any additional rental payments or loss of deposits. If the temporary relocation is extended due to the failure of the contractor to complete the work on time, the Agency shall deduct the cost of any required additional rent or storage payments from the contract amount as liquidated damages.