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HomeMy WebLinkAbout55F - RESO - FIRST ST APARTMENTSREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 7, 2016 TITLE: RESOLUTION TO APPROVE THE RELOCATION PLAN FOR THE FIRST STREET APARTMENTS PROJECT (STRATEGIC PLAN NO 5, 3C} CITY MANACy R RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: 0 As Recommended M As Amended ® Ordinance on tat Reading [I Ordinance on 2nd Reading 171 Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Adopt a resolution approving the Relocation Plan for the First Street Apartments Project located at 1440 E. First Street. DISCUSSION On April 19, 2016, the City Council approved a proposal with AMCAL Multi- Housing, Inc. (Developer) for the award of inclusionary housing in -lieu fees for an affordable housing project called the First Street Apartments (Project) located at 1440 E. First Street (Exhibit 1) and approved a conditional loan commitment letter that will be contingent on the City's actual receipt of the in -lieu fee payments from Heritage Village OC, LLC. The Project will be an affordable housing project that will provide 69 affordable units, as well as a community room and amenity spaces. Based on California law, when state or local funds are provided to a project which would lead to the displacement of people from their homes and /or businesses, the legislative body must approve a relocation plan. The draft First Street Apartments Project Relocation Plan (Exhibit 2) has been prepared in conformance with applicable provisions of the California Relocation Assistance Law and Relocation Guidelines as well as United States Department of Housing and Urban Development (HUD) regulations. This plan is required due to the necessary demolition of the existing structures. All current Project occupants will need to be permanently relocated. The needs and characteristics of the displaced population, available relocation resources, and the Developer's program to provide assistance to each affected person are general subjects of the Relocation Plan. The Developer is utilizing Overland, Pacific & Cutler, Inc. as their relocation consultant for the Relocation Plan and services. The Relocation Plan was completed on December 18, 2015. Current occupants that will need permanent relocation are ten known commercial businesses and one household as a result of the Project. There is also a cell tower on the site. All 55F -1 Resolution Approving the Relocation Plan First Street Apartments Project June 7, 2016 Page 2 occupants have been interviewed and provided with informational notices of the Relocation Plan in accordance with State and Federal requirements. All project occupants received a copy of the draft Relocation Plan with an Advisory Notice on November 18, 2015 describing the public review and public comment period and providing an address to send written comments and a phone number to call for verbal comments or questions. There were no public comments received during the 30 -day public review and comment period between November 19, 2015 and December 18, 2015. Furthermore, all occupants will be provided relocation assistance including advisory services, moving costs, and re- establishment services provided by the Developer and their relocation consultant. STRATEGIC PLAN ALIGNMENT Approval of this item assists the City in meeting Goal #5 - Community Health, Livability, Engagement & Sustainability), Objective #3 (Facilitate diverse housing opportunities and support efforts to preserve and improve the livability of Santa Ana neighborhoods), Strategy C (Provide that Santa Ana residents, employees, artists and veterans received priority for affordable housing created under the City's Housing Opportunity Ordinance or with City funding to extent allowed under state law). FISCAL IMPACT There is no fiscal impact associated with this action. Robert Cortez Special Assistant to the City Manager City Manager's Office JB /NV /II Exhibits: 1. Location Map 2. Draft Relocation Plan 3. Resolution 55F -2 PROPOSED PROJECT LOCATION 1440 EAST 1 ST STREET 4TH STREET w w w F FM7 > � w ¢ � w N ¢ H PALM STREET z 1ST STREET F7w z J Y J W CHESTNUT AVENUE r EXHIBIT 1 55F -3 55F -4 First Street Apartments Project RELOCATION PLAN Prepared for: AMCAL Multi- Housing, Inc. 2082 Michelson Drive, Suite 306 Irvine, CA 92612 (949) 863 -9408 Prepared by: Overland, Pacific & Cutler, Inc. 1 Jenner, Suite 200 Irvine, CA 92618 949 - 951 -5263 December 18, 2015 F IT6 TABLE OF CONTENTS INTRODUCTION PROJECT DESCRIPTION A. REGIONAL LOCATION B. PROJECT SITE LOCATION C. GENERAL DEMOGRAPHIC & HOUSING CHARACTERISTICS II. ASSESSMENT OF RELOCATION NEEDS A. SURVEY METHOD B. FIELD STUDY DATA— COMMERCIAL 5 1. Current Occupants 5 C. FIELD STUDY DATA— RESIDENTIAL 6 1. Current Occupants 6 2. Replacement Housing Needs 6 3. Income 7 4. Ethnicity /Language 7 5. Senior /Handicapped Households 7 6. Preferred Relocation Areas 7 III. RELOCATION RESOURCES 8 COMMERCIAL A. METHODOLOGY 8 B. REPLACEMENT COMMERCIAL SITES AVAILABILITY 8 RESIDENTIAL A. METHODOLOGY 9 B. REPLACEMENT HOUSING AVAILABILITY 9 1. Residential Rental Housing 9 2. Summary 9 C. RELATED ISSUES 10 IV. THE RELOCATION PROGRAM 11 A. ADVISORY ASSISTANCE 11 B. COMMERCIAL RELOCATION BENEFITS 13 1. Payment for Moving and Related Expenses 13 2. Self Moves 16 3. Fixed Payment In Lieu 16 4. Personal Property Move Only (Storage) 17 C. RESIDENTIAL RELOCATION BENEFITS 17 1. Residential Moving Expense Payments 17 2. Rental Assistance to Tenants Who Choose to Rent 18 3. Down payment Assistance to Tenants Who Choose to Purchase 20 D. GENERAL INFORMATION REGARDING THE PAYMENT OF RELOCATION BENEFITS20 E. LAST RESORT HOUSING 21 F. IMMIGRATION STATUS 22 G. RELOCATION TAX CONSEQUENCES 22 H. PROGRAM ASSURANCES AND STANDARDS 23 V. ADMINISTRATIVE PROVISIONS 24 A. NOTICES 24 B. PRIVACY RECORDS 25 C. GRIEVANCE PROCEDURES 25 D. EVICTION POLICY 25 E. CITIZEN PARTICIPATION 25 F PROJECTED DATE OF DISPLACEMENT 26 G. ESTIMATED RELOCATION COSTS 26 55F -6 LIST OF TABLES TABLE 1: 2010 Census Population — City of Santa Ana & Impacted Tract 3 TABLE 2: 2010 Census Housing Units — City of Santa Ana & Impacted Tract 4 TABLE 3: Available Commercial Replacement Sites - Buildings 8 TABLE 4: Availability and Cost of Replacement Rental Housing 9 TABLE 5: Schedule of Fixed Moving Payments 18 TABLE 6: Computation of Rental Assistance Payments 20 LIST OF EXHIBITS EXHIBIT A: HUD Income Limits EXHIBIT B: Informational Statements EXHIBIT C: General Information Notices EXHIBIT D: Public Comments & Responses 55F -7 First Street Apartments Project Relocation Plan INTRODUCTION AMCAL Multi- Housing, Inc. (the "Developer ") has authorized the preparation of a Relocation Plan to be undertaken in connection with the commencement of the proposed new affordable housing project called the First Street Apartments Project ( "Project "). The Developer has acquired the property located at 1440 E. First Street in Santa Ana, CA as the proposed Project site. Existing structures, including multiple commercial uses, will be demolished to allow for the new construction. The Project entails the new construction of 69 affordable multi - family rental units within six residential buildings. Each building will be three stories with tuck -under parking. The units within the Project will consist of 35 two - bedroom units, 28 three - bedroom units and six four - bedroom units, all but one unit to be rented to families with household incomes at 30% and 60% of the area median income (AMI). One two - bedroom unit will be a manager's unit. Funding for the Project will come from multiple financing sources, including eight Project Based Vouchers from the Housing Authority of the City of Santa Ana and a conditional pre - commitment of Inclusionary Housing Funds from the City of Santa Ana. AMCAL will leverage these local funds to secure an allocation of 9% tax credits from the California Tax Credit Allocation Committee. The remaining financial gap will be filled with a construction loan and then a permanent loan provided by a to- be- detennined lender. Due to the necessary demolition of existing structures, all current Project occupants will need to be permanently relocated. The needs and characteristics of the displaced 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 conforms to the requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, HUD Handbook 1378, California Government Code 7260, and Title 25 of the California Code of Regulations. (Section 104(d) does not apply, because no residential units will be affected.) This Plan is organized in five sections: Project description (SECTION 1); 2. Assessment of the relocation needs of persons subject to displacement (SECTION II); 3. Assessment of available replacement residential units and commercial sites within the City of Santa Ana (SECTION I1I); 4. Description of the Developer's relocation program (SECTION IV); 5. Description of the Developer's outreach efforts, Project timeline and budget (SECTION V). y �� First Street Apartments Project Relocation Plan I. PROJECT DESCRIPTION A. REGIONAL LOCATION The Project is located in the City of Santa Ana within Orange County. Santa Ana is located approximately 33 miles southeast of downtown Los Angeles and is immediately accessible from Interstate 5 and Highway 55. Adjacent communities include Orange, Tustin, Costa Mesa, Fountain Valley and Garden Grove. Figure 1 below is an area map showing the regional location of the Project. .� Q L San Ben vmtcnwoan, Coamna Fontana g$. Is ^-_*- m ,West`Covina"" �� Ontario 6ioamingtan Lo .Angeles Pomona HJ'�'GIIYof IndLs! Chino f" ewood nowne y? "' Riverside Y m) z Claw sslate Fark� - Yorba Linda 'a &¢.m�'"� r' 91,4 Fullerton F+ # COfOncl Woudciest' fle: CerrltOSs% Into orrance '� Anaheim# c� �"'Y. o-nead xai) take Market F'rell? Of e . :Mounln�`.roerve Figure 1: Regional Project Location 2 55F -9 First Street Apartments Project Relocation Plan B. PROJECT SITE LOCATION AND DESCRIPTION The Project site is located at 1440 E. First Street, Santa Ana, CA generally bordered by E. Chestnut Avenue to the south, S. McClay Street to the west, E. First to the north, and S. Lyon Street to the east. (See Figure 2: Project Site Location) Figure 2: Project Site Location The Project area totals approximately 2.15 acres. The site is currently zoned C2, General Commercial and is improved with a commercial office building that will be demolished to facilitate the new construction. C. GENERAL DEMOGRAPHIC AND HOUSING CHARACTERISTICS According to the 2010 U.S. Census, the population of the City of Santa Ana is 324,528, and the population of the impacted Census Tract 744.06 is 3,797 (see Table 1.) Corresponding Census data concerning the housing mix is shown in Table 2. Table 1: 2010 Census Population — City of Santa Ana &Impacted Tract Population Tract 744.06 % City % Total Population 37,97 100.0% 324,528 100.0% White 1,193 50.4% 148,838 45.9% Black or African American 76 2.0% 4,856 1.5% American Indian or Alaska Native 38 1.0% 3,260 1.0% Asian 72 1.9% 34,138 10.5% Native Hawaiian or Other Pacific Islander 8 0.2% 976 0.3% Some Other Race 1,526 40.2% 120,789 37.2% Two or More Races 164 4.3% 11,671 3.6% Hispanic or Latino (of Any Race) 1 3,335 87.8% 253,928 78.2°/% Source: U.S. Census Bureau, DP -1. Race, Hispanic or Latino, ana Age: zU 1U 3 55F -10 First Street Apartments Project Relocation Plan Table 2: 2010 Census Housing Units — City of Santa Ana & ImpactedTract Type Tract 744.06 % City % Total Units 999 100.0% 76,896 100.0% Total Occupied Units 919 92.0 34,756 47.50% Owner - Occupied 245 26.7% 38,418 52.5% Renter - Occupied 674 73.3% 3,722 4.8% Vacant Housing Units 80 8.0% 693 18.6% Available for Sale Only (of Total Vacant Units) 2 0.2% 1,983 53.3% Available for Rent — Full Time Occupancy (of Total Vacant Units) 29 2.9% 183 4.9% Sold or Rented —Not Occupied 1 0.1% 132 3.5% Otherwise Not Available (e.g. seasonal, recreational, migratory, occasional use) 3 0.3% 731 19.6% Other Vacant 45 4.5% 76,896 100.0% Source: U.S. Census Bureau, QT -Hl. General Housing Characteristics: 2010 55F -11 First Street Apartments Project Relocation Plan II. ASSESSMENT OF RELOCATION NEEDS A. SURVEY METHOD To obtain information necessary for the preparation of this Plan, personal interviews with the business owners to be permanently displaced were conducted in March, April and July 2015 by OPC staff. Based on information provided by the property owner, property manager, and the business owners and collected via on -site inspections and interviews, there are ten business tenants on the Project site and a cell tower. The interviewer was successful in obtaining survey responses from all 11 Project site occupants identified to OPC staff. In addition, the property manager of the site (with full knowledge of the property owner) lives with two or three others in one of the office units and uses the common exterior hallway restrooms. 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 commercial occupants pertained to the type and description of the business, number of employees, annual revenues, specialty equipment, permits and licenses, hours of operation, special needs related to the relocation of the business, and preferred area to relocate. Inquiries made of the residential occupants concerned household size and composition, income, rent and utilities payments, length of occupancy, ethnicity, home language, physical disabilities, legal presence status, and replacement housingpreferences. B. FIELD SURVEY DATA - COMMERCIAL 1. Current Occupants There are ten commercial occupants on the Project site with operating businesses consisting of six non - profit religious organizations, two medical /health care providers, an employment agency and a music production/classes business. The business owners rent spaces ranging from 800 SF - 11,000 SF. Current rental rates range from $0.29 /SF - $1.29 /SF on the Project site. All of the businesses are currently on month to month leases. There is also a cell tower on the site. Statistics provided by the business owners indicate the total number of full -time and part- time employees (not including the owners) impacted by the Project is approximately 31, and there are approximately 17 volunteers that assist several of the businesses on the Project site as well. There were no special replacement site requirements for the businesses stated by the owners other than their desire to remain in the Santa Ana area on a site with adequate meeting /office space, restrooms and adequate parking. The businesses should easily be able to relocate into alternate commercial spaces. 55F -12 First Street Apartments Project Relocation Plan There was no special or unique equipment identified within the businesses other than recording and audio visual type equipment. All businesses primarily maintain normal office and meeting room style furniture as well as exam tables for the health careproviders. The cell tower is unique in its relocation requirements, and recognizing the challenges faced with identifying a suitable replacement site that would allow such a usage, the developer initiated early discussions with Sprint, the owner of the cell tower, to work together to locate a potential replacement site as discussed in the Relocation Resources section. Relocation concerns of the business owners include remaining in close proximity to existing patients, not relocating to a high crime area, keeping the same rental rate, and costs and effort associated with updating a vendor database with the business's address change. C. FIELD SURVEY DATA - RESIDENTIAL 1. Current Occupants There is one residential household to be offered permanent relocation assistance. At the time of the interview and during subsequent conversations with the property manager, there was a discrepancy as to how many people actually occupy the unit as their primary "residence." Information provided at different times indicated two adults and one child (17 years or younger) or three adults and one child for a total of three or four occupants. The household occupies a commercial unit without a bathroom or kitchen. (Because the household should not be occupying a commercial space without a bathroom or kitchen, the Developer may grant early eligibility to the residential occupants.) 2. Replacement Housing Needs One of the primary purposes of a Relocation Plan is to demonstrate the availability of comparable, affordable, decent, safe and sanitary housing prior to the displacement of residential occupants. Replacement housing needs, as expressed in this plan, are defined by the total number of required replacement units and distribution of those units by bedroomsize. The projected number of required units by bedroom size is calculated by comparing survey data for household size with the Developer's 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. At the time of actual displacement, each household member will have to provide written documentation proving their occupancy of the unit as their primary residence, and they will have to self - certify in writing as to their legal presence status. The occupants have verbally provided information regarding legal presence status, however, at this time it is unclear whether there are three or four occupants. 6 55F -13 First Street Apartments Project Relocation Plan The Developer will provide relocation assistance to non - lawfully present persons with non- federal funds. Therefore, based on the occupancy standard stated above, the replacement units required for the Project occupants to be offered permanent relocation assistance are either a one - bedroom rental unit or a two - bedroom rental unit. 3. Income Verbal information regarding gross household income was provided by the household who may be permanently displaced. 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), the household qualifies as Extremely Low Income (30% or less of AMI). 4. Ethnicity/Language The household reported their ethnicity as Hispanic and English as the preferred language. All verbal communication and required written notices will be provided in the language understood by the members of the household. 5. Senior /Handicapped Households There are no senior members (62 years or older), and no disabilities werereported. 6. Preferred Relocation Areas The household expressed a preference to remain in the Santa Ana area. 7 55F -14 First Street Apartments Project Relocation Plan III. RELOCATION RESOURCES A. METHODOLOGY For potential, replacement, commercial sites, a resource survey was initially conducted to identify available units and lot space for rent within a five -mile radius from the Project site and then expanding throughout Santa Ana. The following sources wereutilized: 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 COMMERCIAL SITES AVAILABILITY All of the business owners indicated a desire to stay in Santa Ana, although one owner was open to Fullerton or Anaheim. The businesses that are to be displaced should be able to relocate in the Santa Ana area or surrounding communities. When searching for replacement locations, zoning and other regulatory issues must be considered carefully. The current availability of commercial/retail/office space for lease in Santa Ana is adequate. Table 3 below provides a sample of the 33 available commercial /retail /office properties available in Santa Ana as of the date of this Plan. Table 3: Available Commercial Replacement Sites Property Type Usage Square Feet Rent Commercial Commercial/Retail /Office (18) 600-2,000 $0.80 - $2.25 /SF /mo. Commercial Commercial /Retail /Office (13) 2,800 —4,173 $0.83 - $3.00 /SF /mo. Commercial Commercial /Retail /Office (2) 11,000 — 11,059 $0.90 - $2.20 /SF /mo. At the time of displacement, ongoing referrals to the businesses will be provided through contacts with local newspapers, property management companies, the multiple listing service and commercial real estate brokers. A suitable replacement property for the cell tower two parcels away from the Project site has been identified by Sprint and the Developer. Preliminary conversations with the current long- term lessee of the site have been initiated with favorable results, and the City has been contacted and confirmed the site would be approved for cell tower usage. 55F -15 First Street 4partmentsProject Relocation Plan RESIDENTIAL A. METHODOLOGY For residential housing, a resource survey was conducted to identify available rental units initially beginning within a three -mile radius from the Project site. The following sources were utilized: Classified rental listings from local newspapers and For Rentpublications Contacts with real estate /property management companies serving the community Internet sources of rental opportunities B. REPLACEMENT HOUSING AVAILABILITY 1. Residential Rental Housing The rental replacement housing survey considered one and two - bedroom apartments in Santa Ana due to the undocumented and unconfirmed status of the number of residential occupants in the unit at this time. 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 # of Bedrooms One Two #Found ( #Needed) 11 (1) 24(1) Rent Range $884- $1,100 $1,125- $1,500 Median Rent $1,045 $1,450 The median rent amounts 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 actual displacement. The median rent for a two - bedroom unit was used in the rental assistance calculation as the most conservative approach. 2. Summary Considering the above described availability of replacement housing resources gathered, it appears that there are more than adequate replacement units for the residential occupants. But, while adequate replacement resources exist, based on survey results of rental opportunities and the tenant's current rent, the tenant occupants will likely have an increase in monthly rent. Possible increases, if any, will be met through the Developer's obligation under the relocation regulations, including Last Resort Housing (LHR) requirements. (See Section IV,E). 55F -16 First Street Apartments Project Relocation Plan C. RELATED ISSUES 1. Concurrent Residential Displacement There are no public projects causing significant residential displacements currently underway in Santa Ana which would compete with the Project for needed housing resources. No residential displaeee will be required to move without both adequate notice and access to available affordable decent, safe and sanitary housing. 10 55F -17 First Street Apartments Project Relocation Plan 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 Developer will retain Overland, Pacific & Cutler, Inc. ( "OPC ") to administer the Relocation Program. OPC has worked on more than 4,000 public acquisition and relocation projects over more than 34 years. Additionally, OPC has an extensive resume of housing, redevelopment and public works projects undertaken in the City of Santa Ana 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 person with questions about the relocation process, relocation counseling and /or assistance in relocating. Victor Estevez can be contacted at (800) 400 -7356 from 8:00 am to 5:00 pm Monday through Friday, and is available via voicemail and/or cellular phone 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 who will need to relocate existing businesses and personal property will receive advisory assistance. Advisory assistance services are intendedto: • 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 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; 11 55F -18 First Street Apartments Project Relocation Plan 2. Inform eligible project occupants of the nature of, and procedures for, obtaining available relocation assistance and benefits (See ExhibitB); 3. Determine the needs of each displacee eligible for assistance; 4. Provide referrals to available commercial sites for business tenants; 5. 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: (a) The unit is decent, safe and sanitary - electrical, plumbing and heating systems 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. (b) 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 ofemployment. (c) The unit is available both on the private market and to all persons regardless of race, color, sex, marital status, religion or, nationalorigin. (d) The monthly rental rate is within the financial means of the displaced residential tenant. 6. Maintain an updated database of available replacement resources, and distribute referral information to displacees for the duration of the Project; 7. Supply information concerning federal and state programs and other governmental programs providing assistance to displacedpersons; S. Make benefit determinations and payments in accordance with applicable law and the Developer's adopted relocation guidelines; 9. Assist eligible occupants in the preparation, and submission, of relocation assistance claims; 10. Assure that no occupant is required to move without a minimum of 90 days written notice to vacate; 12 55F -19 First Street Apartments Project Relocation Plan 11. Inform all persons subject to displacement of the Developer's policies with regard to eviction and property management; 12. Provide additional reasonable services necessary to successfully relocate occupants; 13. 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 14. 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. 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 statement (Exhibit B). Close contact will be maintained with the business owners. The Developer will provide relocation benefits in accordance with the Federal Relocation Regulations and HUD Handbook 1378. 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 2) a fixed payment in lieu not to exceed $40,000. 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, unless the property is acquired through voluntary acquisition. 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: 13 55F -20 First Street Apartments Project Relocation Plan 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; 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: (1) planning the move of the personal property; (2) moving the personal property; or, (3) installing the relocated personal property at the replacement location; 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; The purchase and installation of substitute personal property limited to the lesser of: (1) 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, (2) the replacement cost, less any proceeds from its sale or trade in; Connection to available nearby utilities from the right-of-way to improvements at the replacement site; 14 55F -21 First Street Apartments Project Relocation Plan 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; 1. 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: (1) 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, (2) 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 utilityusage; 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 (1) the amount which would be received if the property were sold at the site or (2) 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; q. A Reestablishment allowance of up to $25,000, available to farms, nonprofit organizations and small businesses with no more than 500 employees. 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; 15 55F -22 First Street Apartments Project Relocation Plan 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 thebusiness. 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 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$40,000. 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 suchmove; is not operated at the displacement site solely for the purpose of renting the dwelling or site to others; 16 55F -23 First Street Apartments Project Relocation Plan • cannot be a part of a commercial enterprise having at least three other establislunents 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 (1) (a- e) above. C. RESIDENTIAL RELOCATION BENEFITS Specific eligibility requirements and benefit plans will be detailed on an individual basis with all 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 guidelines, 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. Specifically, funds from a private debt from a to- be- determined lender will be used by to pay relocation related payments. The Developer will process advance payment requests to mitigate hardships for tenants who do not have access to sufficient funds to pay move -in costs such as first month's rent and/or security deposits. Approved requests will be processed expeditiously to help avoid the loss of desirable, appropriate replacement housing. 1. Residential Moving Expense Payments 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 or a fixed payment based on a room -count schedule. 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 17 55F -24 First Street Apartments Project Relocation Plan either case. In addition to the actual move, costs associated with utility re- connections (i.e., 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 fall responsibility for the move. The fixed payment includes all utility connections as described in (a), above. The current schedule for fixed moving payments is set forth in Table 5 following: TABLE 5: Schedule of Fixed Moving Payments* Unfurnished Dwelling One room $725 Two rooms $930 Three rooms $1,165 Four rooms $1,375 Five rooms $1,665 Six rooms $1,925 Seven rooms $2,215 Eight rooms $2,505 each additional room $265 Furnished Dwelling First Room $475 Each additional room $90 *Based on the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended— Fixed Residential Moving Cost Schedule (2015) 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 household may qualify for, and may be eligible to apply for, relocation benefits under URA provisions. Except in the case of Last Resort Housing situations, the potential payment to the is 55F -25 First Street Apartments Project Relocation Plan household will be payable over a 42 -month period and limited to a maximum of $7,200 as stated under URA guidelines. The relocation program is explained in detail in the informational brochure to be provided to each permanently displaced household (see Exhibit B). Rental Assistance payment amounts are equal to 42 times the difference between the base monthly rent and the lesser of: (i)The monthly rent and estimated average monthly cost of utilities for a comparable replacement dwelling; or (ii) The monthly rent and estimated average monthly cost of utilities for the decent, safe, and sanitary replacement dwelling actually occupied by the displaced person. The base monthly rent for the displacement dwelling is the lesser of: (i)The average monthly cost for rent and utilities at the displacement dwelling for a reasonable period prior to displacement Average monthly cost of utilities will be determined by actual statements /receipts over a 12 month period or a statement of average usage from the utility company, if provided. The most recent local utility schedule will be used to determine estimated utilities' costs, if actual costs are not provided. 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, monthly 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 C.) If a displacee refuses to provide appropriate evidence of income or is a dependent, the base monthly rent shall be determined to be the average monthly cost for rent/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. Table 6 portrays the benefits determination under the URA: 19 55F -26 First Street Apartments Project Relocation Plan TABLE 6: 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 (if Lowlncome) 3. Lesser of lines 1 or 2 $650 Base Monthly Rental Subtracted From: 4. Actual New Rent $750 Actual New Rent and Estimated Utilities or 5. Comparable Rent $775 Determined by Developer (includes estimated utilities) 6. Lesser of lines 4 or 5 $750 7. Yields Monthly Need $100 Subtract line 3 from line 6 8. Rental Assistance $4,200 Multiply line 7 by 42 months 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 the Developer funds, in the event escrow should fail to close within a reasonable period of time. 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. D. GENERAL INFORMATION REGARDING THE PAYMENT OF RELOCATION BENEFITS Claims and supporting documentation for relocation benefits must be filed with the Developer and City staff no later than 18 months after the date of displacement. Relocation benefits will be 20 55F -27 First Street Apartments Project Relocation Plan paid from private debt from a to- be- determined lender. The procedure for the preparation and filing of claims, and the processing and delivery of payments, will be as follows: 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, move estimates, and escrow material before reaching a determination as to which expenses are eligible for compensation; 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 and City staff; 4. City staff 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. E. LAST RESORT HOUSING Based on data derived from the surveys and analyses of the occupants in the Project area and costs of replacement housing resources, it is anticipated that "comparable replacement housing" will not be available as required for the residential tenants. Specifically, for renters, when the computed replacement housing assistance eligibility exceeds $7,200 or replacement dwelling monthly rental costs (including utilities and other reasonable recurring expenses) exceeds 30% of the person's average monthly income. Therefore, if the Project proceeds, the Developer will authorize sufficient funds to provide housing of last resort. Due to the demonstrated number of available replacement housing resources for all households, as shown above in Section III, B - 1, the need to develop a replacement housing plan to produce sufficient number of comparable replacement dwellings will not be necessary. Rather, funds will be used to make payments in excess of the monetary limits specified in the statute ($7,200); hence, satisfying the requirement that `comparable replacement housing" is available. 21 55F -28 First Street Apartments Project Relocation Plan The Developer may 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. Tenant households receiving periodic payments will have the option to request a lump sum payment of remaining benefits to assist with the purchase of a decent, safe and sanitarydwelling. 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. However, the Developer will authorize the payment of relocation assistance benefits to any otherwise eligible residential displacees from non - federally authorized reimbursable funds. 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. Relocation benefits would be prorated to reflect the number of owners with certified lawful presence in the United States, however, the Developer will authorize the payment of relocation assistance benefits to any otherwise eligible business displacee from non - federal funds. In order to track and account for relocation assistance and benefit payments, Developer staff will be required to seek immigration status information from each member of the household and from each sole proprietor and /or partner having them self-certify as to their legal status. 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 22 55F -29 First Street Apartments Project Relocation Plan Taxation Code, or the Bank and Corporation Tax Law, Part 1I (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 relocationpayments. H. PROGRAM ASSURANCES AND STANDARDS There are adequate funds to relocate the businesses, the cell tower, and the residential household. 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. 23 55F -30 First Street Apartments Project Relocation Plan 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 C) GINs were mailed via regular and certified mail to the affected business occupants in late January 2015 and hand - delivered to occupants in March 2015. The GIN for the residential tenants was delivered in August 2015 after they were identified. A Notice of Relocation Eligibility (NOE) will be distributed to each relocates. The NOE to the commercial occupants includes a description of the benefits categories for which the business owners are eligible. 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 will be issued to any eligible permanent displacee once the Project has been approved and Project funding is inplace. 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. 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. 24 55F -31 First Street Apartments Project Relocation Plan 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 theircontents. 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, or the Developer's property management practices. Written appeals will be reviewed by City of Santa Ana staff. 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: (a) 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; (b) Performance of a dangerous, and /or illegal act in the unit; (c) A material breach of the rental agreement, and failure upon notification to correct said breach within 30 days ofNotice; (d) Maintenance of a nuisance, and failure to abate such nuisance upon notification within a reasonable time following Notice; (e) A requirement under State, or local law or emergency circumstances that cannot be prevented by reasonable efforts on the part of the Developer. (f) A failure to vacate by the end of the 90 -Day notice period. E. CITIZEN PARTICIPATION As the process for considering the Project moves forward, the Developer will observe the following protocol: 25 55F -32 First Street Apartments Project Relocation Plan 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 adoption; and 5. Include written or oral comments concerning the Plan as an attachment (Exhibit D) when it is forwarded to the City of Santa Ana City Council for approval. F. PROJECTED DATE OF DISPLACEMENT The Developer anticipates that with the exception of the residential occupant, date specific Notices to Vacate will not be issued prior to February 2016. 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, including a 10% contingency, is $865,000. The relocation estimate includes the permanent relocation of 10 businesses, the cell tower, and one residential household. This estimate should not be interpreted as firm, "not to exceed," or actual entitlement costs. The estimate is based on the data obtained through the occupant interviews, current project scope, replacement site availability, moving costs, reestablishment costs and the judgment and experience of the Overland, Pacific & Cutler, Inc. staff. 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 theProject. 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. 26 55F -33 EXHIBIT A HUD INCOME LIMITS - ORANGE COUNTY The following figures are approved by the U. S. Department of Housing and Urban Development (H.U.D.) for use in the County of Orange to define and determine housing eligibility by income level. Area Median: $85,900 Family Size Extremely Low Very Low Lower I Person 19,700 32,800 52,500 2 Person 22,500 37,500 60,000 3 Person 25,300 42,200 67,500 4 Person 28,100 46,850 74,950 5 Person 30,350 50,600 80,950 6 Person 32,600 54,350 86,950 7 Person 36,730 58,100 92,950 8 Person 40,890 61,850 98,950 Figures are per the Department of Housing and Urban Development, 2015. 55F -34 EXHIBIT B INFORMATIONAL STATEMENT 55F -35 Relocation Assistance Informational Statement For Business, farm & Nonproffit Displacing Agency AMCAL Multi - Housing, Inc. Project Name: First Street Apartments Project Displacing Agency Representative: Overland, Pacific & Cutler, Inc. 3750 Schaufele Avenue, Suite 150 Long Beach, CA 90808 Phone: 1 -800- 400 -7356 Spanish speaking agents are available. Si necesita esta informacian en espan"ol, par favor Hams a su agente. 55F -36 (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. (OPQ 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. 55F -37 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 (e.g., 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). S. 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. 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. 55F -38 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: 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 J ustified. 2. Packing, crating, unpacking, and uncrating of the personal property. 55F -39 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. S. Reasonable and preauthorized professional services, the Displacing Agency determines to be necessary for (i) 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: (i) 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.) 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 promptly replaced with a substitute item that performs a comparable function at the replacement site, you will be entitled to payment for the lesser of: 55F -40 (i) 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 orestimate. 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 orearnings. 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: 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 yourclaim. 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 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 55F -41 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. S. 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) 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 fixtures. Purchase of manufacturing materials, production supplies, used in the normal course of the business operation. 55F -42 cabinets, and machinery or trade product inventory, or other items • 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. 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. The business contributed materially to the income of the displaced person during the two (2) 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 publicagencies. 55F -43 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. 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: (1) the depreciated reproduction cost of the sign, as estimated by the Displacing Agency, less the proceeds from its sale, or (2) 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 (e.g., 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 promptly 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 55F -44 by the Displacing Agency in accordance with its appeals procedure. Complete details on appeal procedures are available upon request from the Displacing Agency. 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 it (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 Circular230 disclosure: To ensure compliance with requirements imposedbytheIRS, weinform 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 (i) avoiding tax - related penalties under the Internal Revenue Code or (ii) promoting marketing orrecommending to another parry anymatters addressedherein) 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. 55F -45 Displacing Agency: AMCAL Multi- Housing, Inc. Project Name: First Street Apartments Project Displacing Agency Representative: Overland, Pacific & Cutler, Inc. 3750 Schaufele Avenue, Suite 150 Long Beach, CA 90808 Phone: 1- 800 - 400 -7356 Informational Statement Content: 1. General Information 2. Assistance In Locating A Replacement Dwelling 3. Moving Benefits 4. Replacement Housing Payment - Tenants And Certain Others 5. Section 8 Tenants 6. Replacement Housing Payment — Homeowners 7. Qualification For And Filing Of Relocation Claims 8. Last Resort Housing Assistance 9. Rental Agreement 10. Evictions 11. Appeal Procedures —Grievance 12.Tax Status of Relocation Benefits 13. Legal Presence Requirement 14. Non - Discrimination and Fair Housing 15. Additional Information And Assistance Available Spanish speaking agents are available. Si necesita esta information en esparhol, por favor llame a su agente. 55F -46 Informational Statement for Families and Individuals (Federal) 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. (OPQ 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 representative with 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. 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. FM Z II-ITJ 10 � 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: 55F -47 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). 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 -ups and other related moving fees. B. Actual Moving Expense (Commercial Move) Fixed Moving Schedule CALIFORNIAN Effective 2412. Occupant Owns Furniture: 1 room $725 2 rooms $930 3 rooms $1,165 4 rooms $1,375 5 rooms $1,665 6 rooms $1,925 7 rooms $2,215 8 rooms $2,505 Each additional room 265 Occupant does NOT Own Furniture: 1 room $475 Each additional room $90 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. You may be eligible for a payment up to $5,250.00 to assist in renting or purchasing a comparable replacement dwelling. In order to qualify, you must either be a tenant who has occupied the present dwelling for at least 90 days immediately prior to the initiation of negotiations or an owner who has occupied the present dwelling between 90 and 180 days immediately prior to the initiation of negotiations. A. Rental Assistance. If you wish to rent your replacement dwelling, your maximum rental assistance benefits will be based upon the difference over a forty -two (42) month period between the rent you must pay for a comparable replacement dwelling and the lesser of your current rent or thirty percent (30 %) of your monthly household income if your total gross income is classified as "low income" by the U. S. Department of Housing and Urban Development's (HUD) Annual Survey of Income Limits for Public Housing and Section 8 Programs. You will be required to provide your relocation agent with monthly rent and household income verification prior to the determination of your eligibility for this payment. 55F -48 WIM B. Down - payment Assistance. If you qualify, and wish to purchase a home as a replacement dwelling, you can apply up to the total amount of your rental assistance payment towards the down - payment and non - recurring incidental expenses. Your relocation agent will clarify procedures necessary to apply for this payment. When you do move, you may be eligible to transfer your Section 8 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. A. If you own and occupy a dwelling to be purchased by the Displacing Agency for at least 180 days prior to the initiation of negotiation, you may be eligible to receive a payment of up to $22,500.00 to assist you in purchasing a comparable replacement unit. This payment is intended to cover the following items: 1. Purchase Price Differential - An amount which, when added to the amount for which the Displacing Agency purchased your property, equals the lesser of the actual cost of your replacement dwelling; or the amount determined by the Displacing Agency as necessary to purchase a comparable replacement dwelling. Your relocation agent will explain both methods to you. 2. Mortgage Interest Differential - The amount which covers the increased interest costs, if any, required to finance a replacement dwelling. Your relocation agent will explain limiting conditions. 3. Incidental Expenses - Those one time incidental costs related to purchasing a replacement unit, such as escrow fees, recording fees, and credit report fees. Recurring expenses such as prepaid taxes and insurance premiums are not compensable. B. Rental Assistance Option - If you are an owner - occupant and choose to rent rather than purchase a replacement dwelling, you may be eligible for a rental assistance payment of up to the amount that you could have received under the Purchase Price Differential, explained above. The payment will be based on the difference between the fair market rent of the dwelling you occupy and the rent you must pay for a comparable replacement dwelling. If you receive a rental assistance payment, as described above, and later decide to purchase a replacement dwelling, you may apply for a payment equal to the amount you would have received if you had initially purchased a comparable replacement dwelling, less the amount you have already received as a rental assistance payment. To qualify for a Replacement Housing Payment, you must rent or purchase and occupy a comparable replacement unit within one year from the following: 55F -49 • 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. 8. -AST RESORT HOUSING ASSISTANCE If comparable replacement dwellings are not available when you are required to move, or if replacement housing is not available within the monetary limits described above, the Displacing Agency will provide Last Resort Housing assistance to enable you to rent or purchase a replacement dwelling on a timely basis. Last Resort Housing assistance is based on the individual circumstances of the displaced person. Your relocation agent will explain the process for determining whether or not you qualify for Last Resort assistance. If you are a tenant, and you choose to purchase rather than rent a comparable replacement dwelling, the entire amount of your rental assistance and Last Resort eligibility must be applied toward the down - payment and eligible incidental expenses of the home you intend to purchase. 9 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 monthly rent to be paid, when rent payments are due, where they are to be paid and other pertinent information. 10. 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. 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 55F -50 by the Displacing Agency in accordance with its appeals procedure. Complete details on appeal procedures are available upon request from the Displacing Agency. 12. 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 (i) avoiding tax - related penalties under the Internal Revenue Code or (ii) promoting marketing or recommending to another party any matters addressedherein) 13. LAWFUL PRESENCE REQUIREMENT In order to be eligible to receive relocation benefits in federally- funded relocation projects, 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. 14. 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. L5_ 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. 55F -51 EXHIBIT C GENERAL INFORMATION NOTICE 55F -52 General Information Notice — Non - residential January 26, 2015 <<NAME>> «BUSINESS /ORGANIZATION NAME>> 1440 E. First Street, Suite _ Santa Ana, CA 92701 Dear <<NAME >>: AMCAL Multi- Housing, Inc. (called here the "Developer') is interested in acquiring the property you currently occupy at 1440 E. First Street, Santa Ana, CA 92701 for the construction of a new apartment building (called here the "Project"). This notice is to inform you of your rights under Federal and State law. If the Developer acquires the property, and you are displaced for the Project, you will be eligible for relocation assistance under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA), as amended and California Relocation Assistance Law (Sec 7260 et. seq. of the CA Government Code. However, you do not have to move now. This is DQLa notice to vacate the premises or a notice of relocation eligibility. If you rent or lease your unit, you should continue to pay your monthly 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. 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. 55F -53 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, Mario Turner Vice President of Development AMCAL Multi-Housing, Inc. 2082 Michelson Drive, Suite 306 Irvine, CA 92612 (949) 863 -9408 Received by Recipient's Signature Date Delivered on /by: Posted Mailed /receipt received on: / 55F -54 General Information Notice ReE August 12, 2015 <<NAME>> 1440 E. First Street, Suite Santa Ana, CA 92701 Dear <<NAME >>: AMCAL Multi- Housing, Inc. (called here the "Developer's is interested in acquiring the property you currently occupy at 1440 E. First Street, Santa Ana, CA 92701 for the construction of a new apartment building (called here the "Project'O. This notice is to inform you of your rights under Federal and State law. If the Developer acquires the property, and you are displaced for the Project, you will be eligible for relocation assistance under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA), as amended and California Relocation Assistance Law (Sec 7260 et. seq. of the CA Government Code. However, you do not have to move now. This is n2La notice to vacate the premises or a notice of relocation eligibility. If you rent or lease your unit, you should continue to pay your monthly 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 not qualified to remain in a Project unit, you will be 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. Note that pursuant to Public Law 105 -117, aliens not lawfully present in the United States are not eligible for Federally- funded 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. 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. 55F -55 If you have any questions about this or any other relocation issues, please contact me at the address and the phone number below. Sincerely, Mario Turner Vice President of Development AMCAL Multi- Housing, Inc. 2082 Michelson Drive, Suite 306 Irvine, CA 92612 (949) 863 -9408 Received by Recipient's Signature Date Delivered Posted on /by: Mailed /receipt received on: J. 55F -56 EXHIBIT D PUBLIC COMMENTS & RESPONSES All project occupants received a copy of the draft Relocation Plan with an Advisory Notice on November 18, 2015 describing the public review and continent period and providing an address to send written comments and a phone number to call for verbal comments or questions. There were no public comments received during the 30 -day public review and comment period between Thursday, November 19, 2015 and Friday, December 18, 2015. 55F -57 55F -58 ROH — 06/07/16 RESOLUTION NO.2016 -xxx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE RELOCATION PLAN FOR RESIDENTIAL PROPERTY LOCATED AT 1440 E. FIRST STREET BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA, AS FOLLOWS: Section 1: The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. On April 19, 2016, the City Council approved a proposal with AMCAL Multi - Housing, Inc. (Developer) for the award of inclusionary housing in- lieu fees for an affordable housing project called the First Street Apartments (Project) located at 1440 E. First Street, and approved a conditional loan commitment letter that will be contingent on the City's actual receipt of the in -lieu fee payments from Heritage Village OC, LLC. The Project will be an affordable housing project that will provide 69 affordable units, as well as a community room and amenity spaces. B. Based on California Law, when State funds are provided to a project which would lead to the displacement of people from their homes and /or businesses, the legislative body must approve a relocation plan with state funds. C. The First Street Apartments Project Relocation Plan (Relocation Plan) has been prepared in conformance with applicable provisions of California Relocation Assistance Law and Relocation Guidelines as well as United States Department of Housing and Urban Development (HUD) regulations. D. This plan is required due to the necessary demolition of the existing structures. All current Project occupants will need to be permanently relocated. The needs and characteristics of the displaced population, available relocation resources, and the Developer's program to provide assistance to each affected person are general subjects of the Relocation Plan, The Developer is utilizing Overland, Pacific & Cutler, Inc. as its relocation consultant for the Relocation Plan and services. The Relocation Plan was completed on December 18, 2015. E. Current occupants that will need permanent relocation are ten (10) known commercial businesses and one household as a result of the Project. Exhibit 3 Resolution No. 2016- 55F -59 There is also a cell tower on the site. All occupants have been interviewed and provided informational notices of the Relocation Plan in accordance with State and Federal requirements. All project occupants received a copy of the draft Relocation Plan with an Advisory Notice on November 18, 2015 describing the public review and public comment period and providing an address to send written comments and a phone number to call for verbal comments or questions. There were no public comments received during the 30 -day public review and comment period between November 19, 2015 and December 18, 2015. Furthermore, all occupants will be provided relocation assistance, including advisory services, moving costs, and re- establishment services provided by the Developer and its relocation consultant. Section 2: The City Council hereby approves the Relocation Plan for the residential Property located at the aforementioned address, and the establishment of an account in accordance with state mandates for the payment of relocation benefits to the displaced households. Section 3: This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this day of , 2016. Miguel Pulido Mayor APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: k Jor- Ryan O. Hodge Assistant City Attorney AYES: Councilmembers: NOES: Councilmembers: ABSTAIN: Councilmembers: NOT PRESENT: Councilmembers: Resolution No. 2016- 55F -60 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2016- to be the original resolution adopted by the City Council of the City of Santa Ana on Date: Clerk of the Council City of Santa Ana 55F -61 Resolution No. 2016- 55F -62