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HomeMy WebLinkAboutR22-Economic Development Agency CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY FROM: Emil A. Marzullo Interim Executive Director SUBJECT: Public Hearing - Lugo Senior Apartments, LLC Relocation Plan DATE: April 20, 2011 Synopsis of Previous Commission/Council/Committee Action(s): " On March 10,2011, Redevelopment Committee Members Johnson, Marquez and Brinker unanimously voted to recommend that the Community Development Commission consider this action for approval. Recommended Motion(s): Open/Close Public Hearing (Communitv Development Commission) Resolution of the Community Development Commission of the City of San Bernardino approving and authorizing the Interim Executive Director of the Redevelopment Agency of the City of San Bernardino ("Agency") to adopt the Relocation Housing Plan for Lugo Senior Apartments, LLC and appropriate funds for the implementation of the Relocation Housing Plan Contact Person(s): Carey K. Jenkins Phone: (909) 663-1044 Project Area(s): IVDA Redevelopment Project Area Ward(s): 7 Supporting Data Attached: 0' Staff Report 0' Resolution(s) 0' Relocation Housing Plan 0 Agreement(s)/Contract(s) o Map(s) 0 Letter(s) FUNDING REQUIREMENTS: Amount: $ 957,000 Source: Low Moderate Income Housing Fund ~. , ) "', _--: Signature: A . Emil A. 1110. In . xecutive Directo' Budget Authority: Commission/Council Notes: P:\Agend.s\Comm Dev Commission\CDC 2011\05-02-11 Lugo Senior Apartments - Reloc.tion PI.n SR.doc COMMISSION MEETING AGENDA Meeting Date: 05/02/2011 Agenda Item Number: Je-LZ- ECONOMIC DEVELOPMENT AGENCY STAFF REPORT ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------. PUBLIC HEARING - LUGO SENIOR APARTMENTS, LLC RELOCATION PLAN BACKGROUND: On November 22, 2010, the Community Development Commission of the City of San Bernardino ("Commission") authorized the Interim Executive Director of the Redevelopment Agency of the City of San Bernardino ("Agency") to execute an Acquisition and Development Residual Receipts Loan Agreement by and between the Agency and Lugo Senior Apartments, LLC (IVDA Redevelopment Project Area - Affordable Senior Citizen Rental Housing Development), for the purpose of facilitating the purchase and rehabilitation of a 120-unit apartment complex. The complex is a priority for the Agency as a result of the blighting effects the current apartment is having on the immediate area. The project under consideration consists of the major rehabilitation of the 120-unit Lugo Apartments located at 839 Lugo Avenue (the "Project"). Ultimately, the property will be transformed into a 119- unit seniors-only community. The loan agreement calls for Meta Housing ("Developer") to adhere to certain state guidelines related to affordable housing development. One requirement is to justly compensate all eligible displacees of the apartment complex. To accomplish this goal, the Developer has contracted with Overland Pacific & Cutler ("OPC") for the preparation of the relocation plan for the Project and to conduct all relocation activities. Since the Commission's approval, on November 22, 2010, OPC has worked diligently interviewing the tenants and assessing their relocation needs in order to prepare the draft Relocation Plan. As the Project site will be used for senior housing, existing non-senior tenants (those under 62 years of age) must be relocated. State Relocation Law ("Relocation Law") requires that prior to displacement of any resident as a result of redevelopment activities that a Relocation Plan be prepared in order to assess the relocation and housing needs of those being displaced. Further, the Relocation Law states that the Agency will provide relocation assistance and certain benefits to any displaced resident. Relocation benefits will be provided in accordance with the provisions of the California Relocation Assistance Law. Benefits will be paid to eligible displaced persons upon submission of required claim forms and documentation in accordance with the City of San Bernardino's ("City") guidelines and procedures. Specific eligibility requirements and benefit plans will be detailed on an individual basis with all displacees. In the course of personal interviews and follow-up visits, each displacee will be counseled as to available options and the consequences of any choice with respect to financial assistance. CURRENT ISSUE: Overland Pacific & Cutler completed the attached draft Relocation Housing Plan for review and comment. The Plan has been prepared and relocation assistance will be provided in accordance with the standards and provisions of the State of California Relocation Law, Government Code Section 7260, et seq., and Title 25, Chapter 6, Relocation Assistance and Real Property Acquisition, as ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------_. P:lAgendas\Comm Dev Commission\CDC 2011\05-02-11 Lugo Senior Apartments - Relocation Plan SR.dnc COMMISSION MEETING AGENDA Meeting Date: 05/02/2011 Agenda Item Number: Economic Development Agency Staff Report Relocation Housing Plan- Lugo Senior Apartments, LLe Page 2 amended January 1, 1998. Pursuant to Section 6038 of Chapter 6, a 30-day public review period is required prior to consideration ofthe Plan by the Commission and Notice was published for the 30-day notice period which ended on April 11, 2011. The existing tenants will be informed that the draft Plan will be available for review at the offices of the Agency, the apartment complex and other public facilities throughout the City. The total households to be displaced are estimated to be less than 60. Any comments received on the Plan will be included as an addendum prior to submission to the Commission for approval. ENVIRONMENTAL IMP ACT: No impact under the California Environmental Quality Act ("CEQA"), pursuant to Section 15301. FISCAL IMPACT: The estimated total relocation costs are $957,000 and will be funded from the Low and Moderate Income Housing Fund. RECOMMENDATION: That the Community Development Commission adopt the attached Resolution. ~ Emil A. Marzullo, Interim xecutive Director --------------------------------------------------------------------------------------------------------------------------------------------------- P:\Agendas\Comm Dev Commission\CDC 2011\05-02-11 Lugo Senior Apartments - Relocation Plan SRdoc COMMISSION MEETING AGENDA Meeting Date: 05/02/2011 Agenda Item Number: 1 2 3 4 5 6 7 RESOLUTION NO. RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") TO ADOPT THE RELOCATION HOUSING PLAN FOR LUGO SENIOR APARTMENTS, LLC AND APPROPRIATE FUNDS FOR THE IMPLEMENTATION OF THE RELOCATION HOUSING PLAN WHEREAS, November 22, 2010, the Community Development Commission of the City of 8 San Bernardino ("Commission") authorized the Interim Executive Director of the Redevelopment 9 Agency of the City of San Bernardino ("Agency") to execute an Acquisition and Development 10 Residual Receipts Loan Agreement by and between the Agency and Lugo Senior Apartments, LLC 11 (the "Developer") (IVDA Redevelopment Project Area - Affordable Senior Citizen Rental 12 Housing Development) for the purpose of facilitating the purchase and rehabilitation of a 120-unit 13 apartment complex; and 14 WHEREAS, as of December 2010, the Developer is the owner of 120 unit partially vacant 15 apartment building located at 839 Lugo Avenue (the "Site"); and 16 WHEREAS, the Commission authorized the Agency to make Agency Low- and Moderate- 17 Income Housing Funds ("Low-Mod Funds") available for the purposes of acquiring and 18 developing the 120 severely blighted apartment structure located at the Site; and 19 WHEREAS, 120 apartment units of which 40 are currently occupied and the residents will 20 need to be permanently relocated to allow for future redevelopment of the apartment complex; and 21 WHEREAS, the California Community Redevelopment Law ("CRL") Government Code 22 Section 7260, et seq., and Title 25, Chapter 6, Relocation Assistance and Real Property Acquisition 23 requires that prior to displacement of any resident, a Relocation Plan must be prepared in order to 24 assess the relocation and housing needs of each resident and to quantify relocation benefits in 25 accordance with State and Federal Law; and 26 WHEREAS, on March 11,2011, Overland, Pacific & Cutler ("OPS") informed the tenants 27 at the Site that a draft Relocation Plan was available at the onsite property management office, at 28 the offices of the Agency, the Norman Feldhym Library and the Paul Villasenor Library for a 30- 1 P:\AgendasIResolutionslResolutions\201 1\05-02-1 I Lugo Senior Apartments - Relocation Plan CDC Reso.doc 1 day public review and comment period; and 2 WHEREAS, the Agency has not received any public comments during the review period. 3 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE 4 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS 5 FOLLOWS: 6 Section 1. The Commission hereby approves and adopts the Relocation Plan attached 7 hereto and incorporated herein by reference as Exhibits "A" and authorizes the Interim Executive 8 Director of the Agency to proceed with the relocation of the residents residing at the Site pursuant 9 to the Relocation Plan which also authorizes the expenditure from the Low-Mod Funds in the 10 amount of $957,000. 11 Section 2. 12 Commission. 13 III 14 III 15 III 16 III 17 III 18 III 19 III 20 III 21 III 22 III 23 III 24 III 25 III 26 III 27 III 28 III This Resolution shall take effect from and after its date of adoption by this 2 P:\AgendasIResolutionslResolutions\20J 1\05-02-1 J Lugn Senior Apartments - Relocation Plan CDC Reso.doc 1 2 3 4 5 6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") TO ADOPT THE RELOCATION HOUSING PLAN FOR LUGO SENIOR APARTMENTS, LLC AND APPROPRIATE FUNDS FOR THE IMPLEMENTATION OF THE RELOCATION HOUSING PLAN 7 Development Commission of the City of San Bernardino at a meeting , 2011, by the following vote to wit: Nays Abstain Absent 18 19 Secretary The foregoing Resolution is hereby approved this 20 21 22 23 24 25 Approved as to Form: 26 27 By: ~d~ 28 ~ day of , 2011. Patrick J. Morris, Chairperson Community Development Commission of the City of San Bernardino 3 P:lAgendaslResolutionslResolutions\2011105-02-11 Lugo Senior Apartments - Relocation Plan CDC Reso.doc RELOCATION PLAN FOR LUGO SENIOR APARTMENTS PROJECT Prepared for: REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO on behalf of LUGO SENIOR APARTMENTS, LLC Prepared by: Overland, Pacific & Cutler, Inc. 3750 Schaufele Ave., Suite 150 Long Beach, CA 90808 (562) 304-2000 January 31, 2011 Relocation Plan for Lugo Senior Apartments Project - San Bernardino, California ~ TABLE OF CONTENTS I INTRODUCTION .............................................................................................................. 1 I - PROJECT AREA DESCRIPTION ............................................................................... 3 A. The Regional Location............................................................................................ 3 B. Project Site Location............................................................................................... 3 C. General Demographic & Housing Characteristics.................................................. 4 II - ASSESMENT OF RELOCATION NEEDS ................................................................ 6 A. Survey Method.... ......... ....... ..... ..... ..... ... ....... ..... .............. ... .... .......... ........ ... ...... ... ... 6 B. Field Survey Data....... ....... ........ ............... .......... ..... .................. .......... ..... ...... ........ 6 1. Housing Mix........................................................................................................... 6 2. Project Rents.......................................................................................................... 6 3. Occupancy/Overcrowding. ..... ............. ....... ..... ...... ..... ... ... ........... ........... ............ ... 7 4. Replacement Housing Needs... .......... ............ .............. .............. ........... ..... ............. 7 5. Income ........ ..... ....... ........ ..... ... ............... ... .......... ........ ... ...... .... ..... ..... ..... ... ... .......... 8 6. Ethnicity/Language................................................................................................ 8 7. Senior/Handicapped Households....... .......... ............. ..... .......... .......... .................... 9 8. Preferred Relocation Areas ...................... .......... ........ .......... ......... ...... .................. 9 III - RELOCATION RESOURCES ................................................................................. 10 A. Methodology........................................................................................................... 10 B. Replacement Housing Availability........ ..... ............... ........ ......... ............. ......... ...... 10 C. Related Issues.......................................................................................................... II 1. Concurrent Residential Displacement ................................................................. 11 2. Temporary Housing............................................................................................. 11 IV - THE RELOCATION PROGRAM ........................................................................... 11 A. Advisory Assistance.............................................................................................. 11 B. Relocation Benefits............................................................................................... 13 1. Residential Moving Expense Payments ............................................................... 13 2. Rental Assistance to Tenants Who Choose to Rent............................................... 14 3. Downpayment Assistance to Tenants Who Choose to Purchase ......................... 16 4. Assistance to Recipients of Section 8 Housing Assistance................................... 16 5. Payments to Non-Tenured Residential Tenants ................................................... 16 6. Last Resort Housing............................................................................................. 16 C. General Information on Payment of Relocation Benefits..................................... 17 V - ADMINISTRATIVE PROVISIONS ......................................................................... 17 A. Relocation Tax Consequences.... ................................. ..... ..... ..... ....... ................... 17 B. Grievance Procedures........................................................................................... 18 C. Eviction Policy............ ............... ....... ............... ..... .......... .......... .......... .................. 18 D. Citizen Participation.............................................................................................. 19 E. Projected Dates of Displacement....... .......... ..... ........... ..... ................... ..... ...... ...... 19 F. Estimated Relocation Costs.................................................................................. 19 Relocation Plan for Lugo Senior Apartments Project - San Bernardino, California , LIST OF TABLES - TABLE 1: Demographic and Housing Characteristics....................................................... 5 TABLE 2: Housing - Dwelling Bedroom Sizes (16 Households) ..................................... 6 TABLE 3: Actual Project Rents (16 Households).............................................................. 7 TABLE 4: Current Household Size Occupancies (15 Respondents).................................. 7 TABLE 5: Replacement Housing Needs (15 Households)................................................. 8 TABLE 6: Income Levels of Tenant Households (13 Respondents) ................................. 8 TABLE 7: Ethnicity of Project Households (15 Respondents) .......................................... 8 TABLE 8: Availability and Cost of Rental Housing........................................................ 10 TABLE 9: Schedule of Fixed Moving Payments ............................................................. 14 TABLE 10: Computation of Rental Assistance Payments ............................................... 15 ~ LIST OF EXHIBITS ~ EXHIBIT A: Residential Survey Form................. ....... ............... ................ .... ........ ..... .... 20 EXHIBIT B: HUD Income Limits - San Bernardino County......................................... 21 EXHIBIT C: Residential Informational Brochure........................................................... 22 EXHIBIT D: Public Comments and Response................................................................ 30 Relocation Plan for Lugo Senior Apartments Project - San Bernardino, California ~ INTRODUCTION I The Redevelopment Agency of the City of San Bernardino (Agency) allocated tax increment housing set-aside funds for acquisition and rehabilitation of existing and blighted larger scale multi-family rental housing developments and selected Lugo Apartments (Property) as a recipient of FY 2009-2010 funds. The Property consists of several buildings constructed in three phases. The single-family residence was constructed in 1949, the one-story apartment buildings were circa 1964 and the two-story buildings were constructed in 1975. The Property sustained water damage due to a structural fire in 2010 and there are records of minor rehabilitation efforts in the last two years such as re-roofing, window replacements, new plumbing and water heaters installation. The proposed Property rehabilitation, still in its planning development stage, will provide 119 additional much-needed affordable rental units for senior households known as Lugo Senior Apartments (Project). The rehabilitation will consist of the following: · Project Amenities/Common Space - "resident friendly" access, drought tolerant landscaping, walking area similar to a pet park, pool redesign to include shade structure, solar panel install and ADA access into pool and entire pool area. · Recreation Room/Clubhouse Building - new 9th Street entrance with security entry gates, guest parking, lighting and landscaping, new security accessed clubhouse to provide social gathering space, library and computer room. · Exterior Design to discourage criminal activity - Site lighting, building lighting, security video cameras, a property line perimeter wall and landscaping. · Exterior Design (Building Materials) - metal entrance doors, decorative wrought iron handrails and guardrails, handicap ramps, re-roof, exterior paint, new asphalt pavement in parking and driveway areas, repair and reconstruction of existing carport structures. · Interior Design - First floor ADA accessible units with handicap grab bars, new paint, flooring, energy efficient light fixtures, heating equipment, low flow shower heads, faucets and toilets, kitchen and bath cabinets, countertops and kitchen appliances. · Current Building Design (Non-Compliant Code Issues) - ADA compliance to meet California Building Code height, spacing and structural design requirements and new smoke detectors, and GFI outlets Lugo Senior Apartments, LLC is the owner and developer for the Project. The Developer is specializing in the development and financing of affordable and market-rate apartment communities for families and seniors. As it relates to senior housing, "active living in place" is the credo for their communities, offering amenities and programs that help residents embrace the 1 . Relocation Plan for Lugo Senior Apartments Project - San Bernardino, California full potential of a high quality senior life style. The Developer has a specific expertise in acquiring and rehabilitating existing residential units to suit senior living. Within the immediate areas of Southern California, the Developer owns and actively manages 867 units of rehabilitated affordable senior housing. There are 60 occupied residential dwellings and 60 vacant units located within the planned Project site boundaries, which are subject to displacement should the Project proceed as planned. Prior to undertaking any displacement activity the Agency is required by law (California Government Code Section 7260 et seq.) and regulation (California Code of Regulations, Title 25 Chapter 6) to prepare a relocation plan subject to public review and approval by the Agency Board. The general purposes of a relocation plan are to describe the circumstances of potential displacees, the availability of replacement housing, and the Agency's program to provide required advisory and financial assistance. It is important to be aware that the preparation and approval of a relocation plan fulfills an administrative requirement but does not, by itself, constitute a commitment to proceed with the planned Project. This Relocation Plan (Plan) was prepared by Overland, Pacific & Cutler, Inc. (OPC) a professional consulting firm specializing in public agency acquisition and relocation projects. The Plan is presented in five sections: 1) A description of the planned Project's regional location and specific site settings (SECTION I); 2) A description of survey methodology and an assessment of the aggregate relocation needs of residents to be displaced as a result of the planned Project, with explanation of how these needs are to be met (SECTION II); 3) An assessment of availability of comparable replacement housing units in proximity to the planned Project (SECTION III); 4) A description of the Agency's relocation assistance program (SECTION IV); and 5) Necessary administrative provisions, plus a relocation cost estimate (SECTION V). 2 . Relocation Plan for Lugo Senior Apartments Project - San Bernardino, California I I - PROJECT AREA DESCRIPTION ~ A. The Regional Location The planned Lugo Senior Apartments Project is located to the east of the 1-215 Freeway, south of the 1-210 Freeway and north of the 1-10 Freeway within the City of San Bernardino. The Project site is less than three miles northwest of San Bernardino International Airport and is neighboring the communities of Colton, Rialto, Highland and Redlands. (See Figure 1: Regional Project Location) Figure 1: Project Regional Location B. Project Site Location The Project site is located at 839 North Lugo Avenue and is generally bounded by East 9th Street on the north, North Waterman Avenue on the east, North Sierra Way on the west and East ih Street on the south. (See Figures 2 and 3 for Project boundaries and aerial presentation) 3 . Relocation Plan for Lugo Senior Apartments Project - San Bernardino, California .;;_;..Ji____^.:-J Project Location Figure 2: Project Site Boundaries Figure 3: Aerial Project Site C. General Demographic & Housing Characteristics Table 1 represents general demographic and housing characteristics within one mile, three miles and five miles from the planned Project. 4 . Relocation Plan for Lugo Senior Apartments Project - San Bernardino, California TABLE 1: Demographic and Housing Characteristics Population One Mile Radius Three Mile Radius Five Mile Radius 2015 Projection 25,116 142,477 340,987 2010 Estimate 24,325 140,428 335,731 2000 Census 21,085 127,480 304,734 Growth 2010-2015 3.30% 1.50% 1.60% Growth 2000-2010 14.40% 10.20% 10.20% 2010 Population by Race (% of Total Population) White 7,204 (29.62%) 50,794 (36.17%) 131,553 (39.18%) Black or African American 3,312 (13.62%) 20,312 (14.46%) 45,427 (13.53%) American Indian and Alaska Native 399 (1.64%) 2,134 (1.52%) 4,496 (1.34%) Asian 823 (3.38%) 4,251 (3.03%) 18,675 (5.56%) Native Hawaiian and Pacific Islander 63 (0.26%) 478 (0.34%) 1,215 (0.36%) Other Race 11,180 (45.96%) 54,825 (39.04%) 115,341 (34.36%) Two or More Races 1,345 (5.53%) 7,637 (5.44%) 19,023 (5.67%) Hispanic or Latino (of Any Race) 17,358 (71.36%) 92,757 (66.05%) 199,582 (59.45%) 2010 Population by Education Less than 9th Grade 3,065 (26.14%) 14,499 (20.23%) 28,883 (15.75%) Some High School to Associate 8,228 (70.18%) 51,766 (72.22%) 130,543 (71.19%) Bachelor's Degree and Higher 433 (3.69%) 5,412 (7.55%) 23,949 (13.06%) 2010 Income Figures Average Household Income $28,821 $39,665 $48,638 Median Household Income $20,090 $29,951 $39,824 Per Capita Income $8,944 $11,524 $14,519 2010 Housing Owner/Renter Occupied (%) 22.85%/77.15% 43.36%/56.64% 50.18%/49.82% Average Household Size 3.31 3.53 3.38 Median Year Built 1966 1961 1968 Median Housing Value (owner- $107,756 $120,284 $135,761 occupant) 5 . Relocation Plan for Lugo Senior Apartments Project - San Bernardino, California - I 11- ASSESMENT OF RELOCATION NEEDS A. Survey Method Information necessary for the preparation of this Plan was obtained through personal interviews with Project residents during the month of January 2011. Interviewers were successful in obtaining survey responses from 58 of 60 residential households (96.7%). Interviews were conducted on-site, in English or Spanish, as appropriate or by telephone if the household was unavailable at the time of personal visits. A sample survey form is attached as Exhibit A. Inquiries made of residential occupants concerned household size and composition, income, monthly rent obligation, length and type of occupancy, ethnicity, home language, disabilitieslhealth problems, and replacement housing preferences. The descriptive data in this Plan concerning residents are based solely on anecdotal responses. No attempt was made to qualify information obtained. B. Field Survey Data The interviewed households included 58 tenant-occupied apartment units. There are 60 vacant units; 59 apartments and one detached single family home. 1. Housing Mix The housing mix includes seven two-story apartment complexes, one single-story apartment complex, two apartment units adjacent to the office and one single family home. Table 2 outlines the breakdown of units based on responses from 58 households and unit information as provided by the property manager for the two non-responsive households. TABLE 2: Housing - Dwelling Bedroom Sizes (60 Households) # of Bedrooms One Two # of Units 54 6 2. Project Rents Table 3, below, represents the monthly rent payments of the tenant households residing at the proposed Project site. Four households reported receiving Section 8 housing assistance and their rents are excluded from the data below. The average monthly rents at the time of the surveys were as follows: one-bedrooms - $543.00; and two-bedrooms - $785.00. 6 . Relocation Plan for Lugo Senior Apartments Project - San Bernardino, California TABLE 3: Actual Pro,ject Rents (56 Houscholds) One Bedroom Two Bedroom A vg. - $543.00 A vg. - $785.00 $500.00 (4) $745.00 (3) $525.00 (12) $825.00 (1) $550.00 (32) $865.00 (1) $575.00 (1) $600.00 (2) 3. Occupancy/Overcrowding The planned Project site consists of 146 individuals among 58 respondent households, 100 of which are adults and 46 are children. The average household size is 2.5 persons per unit. The distribution of household sizes is provided in Table 4, following. TABLE 4: Current Household Size Occupancies (58 Respondcnts) # of People in Household # Households Total Occupants One 17 17 Two 16 32 Three 13 39 Four 6 24 Five 3 15 Six 2 12 Seven 1 7 4. Replacement Housing Needs Replacement housing needs, as expressed in this Plan, are defined by the total number of required replacement units and the distribution of those units by bedroom size. The projected number of required units by bedroom size is calculated by comparing survey data relative to household size with the Agency'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, and seven persons in a three-bedroom unit. Any households consisting of eight or more members require a four-bedroom replacement unit. 7 . Relocation Plan for Lugo Senior Apartments Project - San Bernardino, California TABLE 5: Replaecl11cnt Housing Ne(>ds (58 Households) Bedroom Size One Two Three # Needed - Tenants 44 11 3 The planned Project's replacement housing requirements are to provide comparable units to replace the tenants' displaced dwelling. Comparable housing referrals will be provided and every reasonable attempt will be made to take into consideration individual preferences. 5. Income Income information was provided by all 58 interviewed tenant households. According to income standards for the County of San Bernardino (Exhibit B) adjusted for family size as published by the California Department of Housing and Community Development (HCD), in June 2010, 33 Project households qualify as extremely low income (30% or less of area median), 20 households qualify as very low income (31 %-50% of area median), three qualify as low income (51%-80% of area median), one qualifies as moderate income (81%- 120% of area median) and one household reported income above moderate or high (over 120% of area median). Income survey results are presented in Table 6, following. TABLE 6: Incol11(> Lc\ cIs of Tcnant Households (58 Respondents) Income Level Extremely Very Low Low Moderate High Low # Households 33 20 3 1 1 6. Etltnicity/Language Ethnicity among households within the planned Project site is shown in Table 7. TABLE 7: Ethnicit~ of Project Households (58 Respondents) Ethnicity # Households (%) White 7 (12.1 %) Black 29 (50.0%) Hispanic 22 (37.9%) 8 . Relocation Plan for Lugo Senior Apartments Project - San Bernardino, California Two respondent households identified Spanish as their primary household language and 56 households speak English. No other dialects were reported. 7. Senior/Handicapped Households There are seven senior households among respondent occupants (head of household or spouse 62 years or older) and 17 households reported physical and/or psychological disabilities that could affect the relocation process. Care will be taken to meet the special needs of each household, particularly as these needs involve physical access to accommodations. In all cases involving physical or mental impairments, extra efforts will be made to provide close individual case monitoring. 8. Preferred Relocation Areas Most of the Project households expressed a preference to remain in or around the local community in order to maintain current school enrollment, access to employment, recreational resources and public transportation. Alternative relocation areas mentioned by some were Highland, Rialto, Colton, Fontana, Moreno Valley, Chino, Redlands and Riverside. A couple of households expressed their preference to move out of state. 9 . Relocation Plan for Lugo Senior Apartments Project - San Bernardino, California ~ II1- RELOCATION RESOURCES - A. Methodology An extensive resource survey was conducted in January 2011 to determine the availability of replacement housing units utilizing the following sources: · Classified rental listings from The Press Enterprise, PennySaver, and For Rent publications · Internet sources (local multiple listing services) B. Replacement Housing Availability Replacement housing survey data concerning available units are summarized in Table 8. The survey identified a total of 354 available one-, two-, and three- bedroom rental units in near vicinity to the Project site (no more than three miles from Project). There are more than sufficient amount of available units currently on the market to not require the Agency to plan for any last resort housing to be built. The Agency will provide adequate funds to compensate for increased rents under the Last Resort Housing provisions. The individual figures for number of units found by bedroom size are presented in the table below alongside the number of units needed (shown in parentheses) to meet re-housing obligations. Survey data suggested a more than sufficient supply of replacement housing resources relative to the number of potential displacees. TABLE 8: r\Yailabilit~ and Cost of Rentalllollsing Bedroom Size One Two Three # Found (# Needed) 117(44) 161 (I I) 76 (3) Rent Range $450-$918 $600-$ 1 ,200 $675-$1,500 Median Rent $675 $850 $1,150 The comparable market rent amounts shown in the table above are among the figures used to make benefit and budget projections for the Plan. These amounts are subject to change according to the market rates prevailing at the time of displacement. Average Project rents are currently up to 20 percent less than respective median market rates for surveyed replacement units. 10 . Relocation Plan for Lugo Senior Apartments Project - San Bernardino, California C. Related Issues 1. Concurrent Residential Displacement There are no known public projects underway in the vicinity of this Project which would impact the availability of needed housing resources. 2. Temporary Housing No need for temporary housing is anticipated. Should such a need arise, the Agency will respond appropriately and in conformance with all applicable laws and requirements. I IV - THE RELOCATION PROGRAM I The Agency will provide displacees the assistance, rights and benefits required under State relocation law and the relocation guidelines. The relocation program will provide both advisory and financial assistance. Every effort will be made to facilitate relocation arrangements and minimize hardships for displacees. A. Advisory Assistance Advisory assistance services are intended to inform displacees about the Agency's relocation program, help in the process of finding appropriate replacement accommodations, facilitate claims processing, maintain a communication link with the Agency and coordinate the involvement of outside service providers. To follow through on the advisory assistance component of the relocation program and assure that the Agency meets its obligations under the law, relocation staff will perform the following functions: · Distribute written information concerning the Agency's relocation program to each displacee (see Exhibit C); . Individually inform all displacees of the nature of and procedures for obtaining available relocation assistance and benefits; . Determine the eligibility, needs and relocation preferences of each displacee; . Provide residential displacees with at least three referrals to comparable, decent, safe and sanitary replacement housing within a reasonable time prior to displacement; 11 . Relocation Plan for Lugo Senior Apartments Project - San Bernardino, California . Maintain a database of available housing resources and distribute replacement site referrals for the duration of the Project; . Provide transportation to displacees, if requested, to inspect replacement sites within the local area. Offer special assistance to help elderly and handicapped residents find housing near friends, relatives, medical facilities and services and convenient transportation, if applicable; . Make referrals to governmental and non-governmental servIce providers, as needed; . Assist each eligible displacee with the preparation and submission of relocation assistance claims; . Assist residential displacees with arrangements necessary to rent or purchase comparable decent, safe and sanitary replacement housing; . Make benefit determinations and payments in accordance with applicable law and Agency policy; . Assure that no displacee is required to move without a minimum of 90 days written notice to vacate; . Inform all persons subject to displacement of the Agency's policies with regard to management of property; . Establish and maintain a formal grievance procedure for use by the displaced persons seeking administrative review of the Agency's decisions with respect to relocation assistance; and . Provide assistance that does not result in different or separate treatment due to race, color, religion, national origin, sex, marital status or other arbitrary circumstances. The Agency retained services of professional relocation consultants to assist all persons to be displaced as a consequence of the Project. Personal contact will be maintained with all individuals until the relocation process has been completed. Given the number of displacements within the proposed Project, it will not be necessary to setup a fully staffed site office. Should such a need present itself during the implementation phases of the Project, the Agency will make provisions for a site office and all residents will be informed of the location and operating hours of that relocation office. 12 . Relocation Plan for Lugo Senior Apartments Project - San Bernardino, California B. Relocation Benefits Relocation benefits will be provided in accordance with the applicable provisions of the State relocation law and guidelines. Benefits will be paid to eligible displaced persons upon submission of required claim forms and documentation regarding the rental or purchase of decent, safe and sanitary replacement housing. Eligibility requirements and calculations will be detailed on an individual basis with all displacee households. In the course of personal interviews and follow-up visits, each displacee household will receive counseling regarding available benefit options and the requirements to claim compensation for moving payments and replacement housing assistance. Agency staff will promptly evaluate advance payment requests meant to alleviate 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 for advance payments will be processed expeditiously to help avoid the loss of desirable, appropriate replacement housing. 1. Residential Moving Expense Payments All residential displacees will be eligible to receive a payment for moving expenses. Moving expense payments will be based either on the actual cost of a professional move or a fixed payment amount determined by room count. · Actual Cost (Professional Move) Displacees may elect to retain the service of a professional mover. The cost of professional moving services will be based on the lower of at least two acceptable bids obtained from licensed, professional movers. The Agency may also obtain bids, at its own discretion, in order to determine the most qualified low-bidder for the move. The Agency will make direct payment to the selected mover, if requested, or provide reimbursement upon presentation of appropriate documentation substantiating the move. Compensable moving elements include packing, transportation, un-packing and insurance. Transportation costs beyond 50 miles are not eligible, unless the Agency determines that relocation beyond 50 miles is justified. In addition to payment for the actual move, one-time re-connection fees related to gas, water, electricity, telephone, internet and television service, are eligible for reimbursement. Deposits required by utility and other residential service providers are not eligible for reimbursement. · Fixed Payment (Room Count Schedule Method) 13 . Relocation Plan for Lugo Senior Apartments Project - San Bernardino, California As an alternative to a professional move, a residential displacee may elect to receive a fixed payment for moving expenses based on the number of furnished or unfurnished rooms in the displacement dwelling (bathrooms are not considered as part of the eligible room count). Residential displacees who elect to receive a fixed payment assume full responsibility for the move including the expense of utility re-connections described in (a), above. The current schedule for Fixed Moving Payments is set forth in Table 9: I TABLE 9: Schedule of Fixed Moving Payments Unfurnished Dwelling (Tenant Owned Furniture) Room 1 2 3 4 5 6 7 8 Each Count Additional Amount $625 $800 $1,000 $1,175 $1,425 $1,650 $1,900 $2,150 $225 Furnished Dwelling (Landlord Owned Furniture) Room 1 Each Additional Count Amount $400 $65 Source: The Federal Highway Administration (effective 8/22/08) 2. Rental Assistance to Tenants Who Choose to Rent A tenant displaced from a Project dwelling may be entitled to a Replacement Housing Payment in the form of rental assistance not-to-exceed $5,250 for tenants (prior to consideration of eligibility for Last Resort Housing benefits - see Last Resort Housing this Section, Paragraph 6), if the displacee: · Generally, has actually and lawfully (i.e. have a lease and have been paying rent) occupied the displacement dwelling for at least 90 days immediately prior to the initiation of negotiations; and · Has rented, or purchased (as a result of the relocation process), and occupied a decent, safe, and sanitary replacement dwelling within one year (unless the Agency extends this period for good cause) after the date he or she moves from the displacement dwelling. Rental/Downpayment Assistance payment amounts are equal to 42 times the difference between the base monthly rental 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; or 14 . Relocation Plan for Lugo Senior Apartments Project - San Bernardino, California (i) The total of the amount designated for shelter and utilities if receiving government subsidized assistance from a program that designated the amounts for shelter and utilities. The base monthly rental 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, as determined by the Agency. 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 displacee's monthly gross household income. If a displacee refuses to provide appropriate evidence of income or is a dependent, the base monthly rental shall be determined to be the average monthly cost for rent and utilities at the displacement dwelling. Table 10, following, provides an example of a typical rental assistance eligibility computation. - or- 2. Ability to Pay $550 $550 30% of Monthly Gross Household Income* 3. Lesser oflines I and 2 Subtracted from the lesser of: 4. Actual New Rent $650 Actual New Rent (plus Utility Allowance) - or- 5. Comparable Rent $675 Set by the Agency (plus Utility Allowance) 6. Lesser of lines 4 and 5 $650 $100 Subtract line 3 from line 6 7. Monthly Need Amount Rental Assistance $4,200 Multiply line 7 (Monthly Need) by 42 months * Gross household income means the total annual income of an individual less the following: (1) a deduction of $500 for each dependent in excess of three; (2) a deduction of 10% of total income for the elderly or disabled head of household; (3) a deduction for recurring extraordinary medical expenses defined for this purpose to mean medical expenses in excess of 3% of total income, where not compensated for, or covered by insurance or other sources; (4) a deduction of reasonable amounts paid for the care of children or sick or incapacitated family members when determined to be necessary to employment of the head of household or spouse, except that the amount deducted shall not exceed the amount of income received by the person who would not otherwise be able to seek employment in the absence of such care. 15 . Relocation Plan for Lugo Senior Apartments Project - San Bernardino, California 3. Downpayment Assistance to Tenants Who Choose to Purchase Residential displacees eligible to receive a rental assistance payment, may choose to utilize up to the full amount of their rental assistance eligibility (including any Last Resort benefits) to purchase a replacement dwelling, provided that the entire eligibility amount is used toward the down payment and eligible incidental closing costs. In the case of Downpayment Assistance claims, the Agency will arrange for the deposit of the total rental assistance eligibility amount in an open escrow account. Provisions will be included in the escrow instructions to assure the prompt return of all Agency-provided funds in the event escrow is cancelled by either party or should fail to close within a reasonable period of time. 4. Assistance to Recipients of Section 8 Housing Assistance Households currently receiving assistance through the Section 8 Housing program will be provided referrals to available rental units whose owners have indicated a willingness to participate in the Section 8 program. As long as there are available replacement units with monthly rents at or below current fair market rent rates, Section 8 recipients will not receive cash rental assistance payments. However, some assistance will be provided, as appropriate, with one time security deposits and credit check fees. Section 8 recipients are also entitled to a payment for physical moving expenses on the same basis as market-rate tenants. 5. Payments to Non-Tenured Residential Tenants Median-income and higher income residential tenants with less than 90 days of continuous occupancy prior to the Agency's acquisition of the property, will only be eligible to receive a moving expense payment in accordance with Section 1 above. 6. Last Resort Housing Depending on current market conditions, the Agency anticipates that it might be necessary to make rental assistance payments in excess of the statutory cap of $5,250, (CCR Title 25, Chapter 6, Section 6104) to assure the availability of comparable replacement rental housing. Rental assistance payments to low- income non-90-day tenants and rental assistance and replacement housing payment amounts in excess of the statutory caps are considered (CCR Title 25, Chapter 6, Section 6139) to be Last Resort Housing (LRH) payments. The Agency, at its discretion, may opt to pay LRH rental assistance payments on a periodic basis. Recipients of LRH rental assistance who intend to purchase rather than re-rent replacement housing have the right to request a lump sum payment of all benefits for the purpose of making a down payment and paying standard, non-recurring closing costs. Households receiving periodic payments may elect, at any time, to request a lump sum payment of all remaining benefits to assist with the purchase of a decent, safe and sanitary dwelling. 16 . Relocation Plan for Lugo Senior Apartments Project - San Bernardino, California C. General Information on Payment of Relocation Benefits Claims and supporting documentation for relocation benefits must be filed with the Agency within 18 months from: · The date the claimant moves from the acquired property; or, · The date, on which final payment for the acquisition of real property is made, whichever is later. The procedure for the preparation and filing of claims and the processing and delivery of payments will be as follows: 1) Claimant( s) will provide all necessary documentation to substantiate eligibility for assistance; 2) Payment amounts will be determined in accordance with the provisions of the State relocation law and guidelines; 3) Required claim forms will be prepared by relocation personnel and reviewed with claimants. Signed claims and supporting documentation will be submitted by relocation personnel to the Agency; 4) The Agency will review all claims for payment and determine whether to approve, deny, or seek additional information; 5) The Agency will issue benefit checks for distribution to claimants by relocation staff; 6) Final payments will be issued only after confirmation that the Project premises have been completely vacated and occupancy of the replacement unit is verified; 7) All correspondence, back-up documentation, claims, receipts of payment and notices will be maintained in the relocation case file. I V - ADMINISTRATIVE PROVISIONS ~ A. Relocation Tax Consequences In general, relocation payments are not considered income for the purpose of the Internal Revenue Code of 1968, or the Personal Income Tax Law, Part 10 of the Revenue and Taxation Code. The above statement on tax consequences is not intended to be a provision of tax advice by the Agency. The Agency cannot give 17 . Relocation Plan for Lugo Senior Apartments Project - San Bernardino, California specific advice related to tax law and, displacees are responsible for consulting with their own tax advisors concerning the tax consequences of relocation payments. B. Grievance Procedures The Agency's Relocation Appeals process will be consistent with the Provisions of Article 5 of the State relocation guidelines (Appendix A). The right to appeal shall be described in all relocation explanatory material distributed to displacees. As required under the State relocation guidelines, displacees will have the right to ask for administrative review when they believe themselves aggrieved by a determination as to eligibility, payment amounts, and the failure to provide comparable replacement housing referrals or the Agency's property management practices. Requests for administrative review and informal hearings will be directed to senior administrative staff of the Agency. All requests for review will receive written responses from the Agency within three weeks of their receipt. If an informal appeal is denied, appellants will be entitled to file a written request for a formal hearing before an impartial and independent hearing officer. More detail concerning the appeals process will be provided upon request. Appellants will retain their appeal rights for up to 18 months following the date of displacement from the Project premises or receipt of final payment for relocation benefits, whichever is later. C. Eviction Policy Under the State relocation guidelines, eviction is permissible only as a last resort and may not be used as a means to avoid relocation payment obligations. With the exception of persons considered to be in unlawful occupancy, a displaced person's eviction does not affect eligibility for relocation assistance and benefits. Eviction may be undertaken only for one or more of the following reasons: . Failure to pay rent, except in those cases where the failure to pay is due to the lessor's failure to keep the premises in habitable condition, is the result of harassment or retaliatory action or is the result of discontinuation or substantial interruption of services; . Performance of a dangerous, illegal act in the unit; . Material breach of the rental agreement and failure to correct breach within 30 days of notice; . Maintenance of a nuisance and failure to abate within a reasonable time following notice; 18 . Relocation Plan for Lugo Senior Apartments Project - San Bernardino, California . Refusal to accept one of a reasonable number of offers of replacement dwellings; . A requirement under State or local law or emergency circumstances that cannot be prevented by reasonable efforts on the part of the public entity. D. Citizen Participation As the process for considering the planned Project moves forward, the Agency will observe the following protocol: · Provide affected tenants with full and timely access to documents relevant to the relocation program; · Provide technical assistance necessary to interpret elements of the Relocation Plan and other pertinent materials; · Issuance of a general notice in English and/or the primary household language, as needed, concerning the availability of the Relocation Plan for public review, as required, 30 days prior to its proposed adoption. Distribution of the Plan, upon request, to all affected and interested parties; · The inclusion of written or oral comments concerning the Plan and the Agency's response as an attachment to the Plan (Exhibit D) when it is forwarded to the Agency Board for adoption. E. Projected Dates of Displacement The Agency contemplates that the relocation process will begin in March 2011 and be completed no later than June 2011. The Agency will update the Plan in the event of delay of more than one year in the implementation of the relocation program. F. Estimated Relocation Costs The total budget estimate for relocation-related payments for this planned Project is as follows: Relocation: Contingency @ 10%: TOTAL: $870,000 $87.000 $957,000 The estimated relocation budget does not include any payments related to property acquisition, or improvements pertaining to realty. In addition, the budget does not consider the cost of any services necessary to implement the Plan and complete the relocation element of the Project. 19 . Relocation Plan for Lugo Senior Apartments Project - San Bernardino, California EXHIBIT A: Residential Survey Form 20 . Client/Project: Case 10: Site Address: Total occupants: Interview Date: o Unoccupied City, St, ZIP: Interviewer: 0 No Contact ~ ~ 1. Name: Relationship (list 1): HEAD OF HOUSEHOLD o ID verified Income srce (list 2): Income/emp!. description: Hire/start date: Mo Income: Lawful presence (list 3): Date of birth: Phone/fax/email: Move-in date: Notes/special needs: 2. Name: I Gender: F M Employer/School: Relationship (list 1): o ID verified Income srce (list 2): Income/emp!. description: Hire/start date: Mo Income: Lawful presence (list 3): Date of birth: Phone/fax/email: Move-in date: Notes/special needs: 3. Name: IGender: F M Employer/School: Relationship (list 1): o ID verified Income srce (list 2): Income/emp!. description: Hire/start date: Mo Income: Lawful presence (list 3): Date of birth: Phone/fax/email: Move-in date: Notes/special needs: 4. Name: I Gender: F M Employer/School: Relationship (list 1): o ID verified Income srce (list 2): Income/emp!. description: Hire/start date: Mo Income: Lawful presence (list 3): Date of birth: Phone/fax/email: Move-in date: Notes/special needs: 5. Name: I Gender: F M Employer/School: Relationship (list 1): o ID verified Income srce (list 2): Income/emp!. description: Hire/start date: Mo Income: Lawful presence (list 3): Date of birth: Phone/fax/email: Move-in date: Notes/special needs: 6. Name: I Gender: F M Employer/School: Relationship (list 1): o ID verified Income srce (list 2): Income/emp!. description: Hire/start date: Mo Income: Lawful presence (list 3): Date of birth: Phone/fax/email: Move-in date: Notes/special needs: @ 1980-2008 Overland, Pacific & Cutler, Inc. (05/08) Page 1 Mailing Address: City, St, ZIP: Carbon Copy Address: City, St, ZIP: Dwelling Type (list 4): Bedrooms: AtticlUtility/Storage: Approx Sq Ft: Kitchen: Basement: Bathrooms: Living/family rooms: Garage: Garage Spaces: Dining room: Other/Extra: Total physical and content rooms to move: Carport Spaces: Den/Office: Parking Spaces: Number of cars: Total Rooms: o Primary residence of all occupants? (If not, explain in notes) o Can someone read/understand English? If not, language: Race/Ethnicity: 0 American Indian/Alaskan 0 Asian o Black/African-American 0 Hawaiian/Pacific Islander o Hispanic/Latino 0 White 0 Other 0 Mixed Subscribe to: 0 Land phone 0 TV service 0 Internet o Home-based business? (describe in notes) o Rent rooms in dwelling? (describe in notes) o On fixed income or public assistance? (describe in Occupants) o Disabled occupants? (describe modifications/needs in Occupants) Replacement site special needs (mark and describe in Notes) Air Cond: o Central DWalllWindow DHeat Pump DEvap.lSwamp DNone 0 Employment access o Shopping Heating: DFAU o Radiant DHot Water DSpace Htr DSolar o Heat Pump 0 Public transport 0 Religious Dwelling Condition: 0 Good 0 Fair 0 Poor 0 Medical facilities/services 0 Social/Public services Neighborhood Condition: 0 Good 0 Fair 0 Poor 0 School needs 0 Relatives/Ethnic Amenities: 0 Childcare 0 Other special needs o All occupants to move to the same dwelling? (if not, explain in notes) Replacement dwelling preference: 0 Rent 0 Buy Can relocate from: 0 Neighborhood 0 City 0 County 0 State Preferred relocation areas: o Rent reduced in exchange for service Monthly contract rent: $ o Unit furnished by tenant Security deposit: $ Landlord/manager name/ph: o Written rental agreement available? o Rent receipts available? o Receiving Section 8 or other housing assistance? Caseworker name/ph: Monthly tenant portion of rent: $ Annual family/child care expenses to allow work: $ Annual non-reimbursed medical expenses: $ Annual non-reimb. handicapped assistance expenses: $ Utilities paid by tenant: Pets: o Gas: $ o Electric: $ Energy source: Gas Electr Oil Other o Water: $ Cooking Stove: 0 0 0 o Sewer: $ Water Heater: 0 0 0 o Trash: $ Space Heat: 0 0 0 o NONE Air Conditioning: 0 0 0 @ 1980-2008 Overland, Pacific & Cutler, Inc (05/08) o Own clear with no mortgages/loans 1 st Loan Information # of stories: 2nd Loan Information Lender: Lender: Loan Type (list 5): Loan Type (list 5): Current % Rate: Current % Rate: Principal Balance: $ Principal Balance: $ Original Date: Original Date: Remaining months: Remaining months: Monthly P&I payment: Monthly P&I payment: Pad space: 0 Rent 0 Own Pad rent: $ Coach length (ft): Coach width (ft): Coach: 0 Rent 0 Own Make/Model: Year: Decal #: Page 2 Spouse, Child, Foster Child, Parent, Partner, Sibling, Aunt/Uncle, Cousin, Grandparent, Parent In-Law, Sibling In-Law, Other Relative, Roommate Wages/Salaries, Social SecuritylDisab/Pension, Child Support/Alimony, WelfarefTANF/AFDC, Family Subsidy/Gift, Business Income, Interest/Dividends, Unempl.lWorkers Comp, AF pay, EITC, Cash Income, Rent Reduction, Other 3. Legal Status: Unknown, Citizen/National, Lawful Other, NOT Lawful, Decline to provide. 4. Dwelling: SFR, Duplex, 3-Plex, 4-Plex, Apartment, CondofTownhome, Hotel/Motel, Mobile Home, RV, Other 5. Loans: Fixed Mortgage, Adjustable Mortgage, Interest Only, Fixed HELOC, Adjustable HELOC, Reverse Mortgage, Other 1. Relation: 2. Income: Date: Signature: @ 1980-2008 Overland, Pacific & Cutler, Inc. (05/08) Relocation Plan for Lugo Senior Apartments Project - San Bernardino, California EXHIBIT B: HUD Income Limits - San Bernardino 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 San Bernardino to define and determine housing eligibility by income level. Area Median: $65,000 Family Size Extremely Low Very Low Lower Moderate 1 Person 13,650 22,750 36,400 54,600 2 Person 15,600 26,000 41,600 62,400 3 Person 17,550 29,250 46,800 70,200 4 Person 19,500 32,500 52,000 78,000 5 Person 21,100 35,100 56,200 84,250 6 Person 22,650 37,700 60,350 90,500 7 Person 24,200 40,300 64,500 96,700 8 Person 25,750 42,900 68,650 102,950 Figures are per the Department of Housing and Community Development (California), Division of Housing Policy Development, June 17,2010. 21 . Relocation Plan for Lugo Senior Apartments Project - San Bernardino, California EXHIBIT C: Residential Informational Brochure 22 . Relocation Plan for Lugo Senior Apartments Project - San Bernardino, California (CA State) ~Iacino Aoency: San Bernardino Redevelopment Agency Proiect Name: Lugo Senior Apartments Project Displacino Aoencv Representative: Overland, Pacific & Cutler, Inc. 3750 Schaufele Ave. Ste. 150 · Long Beach, CA 90808 Phone: 800-400-7356 Informational Statement Content: 1. Generallnformation 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. Non-Discrimination and Fair Housing 14. Additional Information And Assistance Available 23 . Relocation Plan for Lugo Senior Apartments Project - San Bernardino, California . nd Individuals (CA State) 1. GENERAL INFORMATION The dwelling in which you now live has been purchased with assistance of the Displacing Agency using state and/or local 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 state law. You will need to provide adequate and timely information to determine your relocation benefits. The information is voluntary, but if you don't provide it, you may not receive the benefits or it may take longer to pay you. We suggest you save this informational statement for reference. The Displacing Agency has retained the professional firm of Overland, Pacific & Cutler, Inc. (OPC) to provide relocation assistance to you. The firm is available to explain the program and benefits. Their address and telephone number is listed on the cover. PLEASE DO NOT MOVE PREMATURELY. THIS IS NOT A NOTICE TO VACATE YOUR DWELLING. However, if you desire to move sooner than required, you must contact your 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, otherwise you may be evicted and jeopardize the relocation benefits to which you may be entitled to receive. The Displacing Agency has acquired the property; therefore, you are 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 consultant 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. 24 . Relocation Plan for Lugo Senior Apartments Project - San Bernardino, California 3. MOVING BENEFITS If you must move as a result of displacement by the Displacing Agency, you will receive a payment to assist in moving your personal property. The actual, reasonable and necessary expenses for moving your household belongings may be determined based on the following methods: · A Fixed Moving Payment based on the number of rooms you occupy (see below); or · A payment for your Actual Reasonable Moving and Related Expenses based on at least two written estimates and receipted bills; or · A combination of both (in some cases). 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 lor 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 PaymentBJ~~~:I\IIc:>Vil'1g!:~~.~~~UI A Fixed Moving Payment is based upon CAt..IFO.RNIA:tEffective.20 the number of rooms you occupy and Occupant Owns Furniture: whether or not you own your own 1 room $625 furniture. The payment is based upon a 2 rooms $800 schedule approved by the Displacing 3 rooms $1,000 Agency, and ranges, for example, from 4 rooms $1,175 $400.00 for one furnished room to 5 rooms $1,425 $2,150.00 for eight rooms in an 6 rooms $1,650 unfurnished dwelling. (For details see the 7 rooms $1,900 table). Your relocation representative 8 rooms $2,150 will inform you of the amount you are Each additional room $225 eligible to receive, if you choose this type Occupant does NOT Own Furniture: of payment. 1 room $400 Each additional room $65 If you select a fixed payment, you will be responsible for arranging for your own move, and the Displacing Agency will assume no liability for any loss or damage of your personal property. A fixed payment also includes utility hook-up, credit check and other related moving fees. B. Actual Moving Expense (Professional Move) If you wish to engage the services of a licensed commercial mover and have the Displacing Agency pay the bill, you may claim the ACTUAL cost of moving your personal property up to 50 miles. Your relocation representative 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. 25 . Relocation Plan for Lugo Senior Apartments Project - San Bernardino, California 4. REPLACEMENT HOUSING PAYMENT - TENANTS AND CERTAIN OTHERS You may be eligible for a payment of up to $5,250.00 to assist you 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 prior to the initiation of negotiations or an owner who has occupied the present dwelling between 90 and 180 days prior to the initiation of negotiations. A. Rental Assistance. If you qualify, and 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 and estimated utilities or thirty percent (30%) of your gross monthly household income. You will be required to provide your relocation representative with monthly rent and household income verification prior to the determination of your eligibility for this payment. -OR- 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 representative will clarify procedures necessary to apply for this payment. Where a tenant is sharing a dwelling with an owner-occupant and paying the owner-occupant rent for the privilege, the tenant shall not be entitled to more than one-half of the rental assistance otherwise payable. 5. SECTION 8 TENANTS 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 representative will provide counseling and other advisory services along with moving benefits. 6. REPLACEMENT HOUSING PAYMENT - HOMEOWNERS 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 negotiations, 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: 26 . Relocation Plan for Lugo Senior Apartments Project - San Bernardino, California 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 representative 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 representative 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 an economic 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. 7 . QUALIFICATION FOR. AND FILING OF . RELOCATION CLAIMS To qualify for a Replacement Housing Payment, you must rent or purchase and occupy a comparable replacement unit within one year from the following: · For a tenant, the date you move from the displacement dwelling. · For an owner-occupant, the latter of: a. The date you receive final payment for the displacement dwelling, or, in the case of condemnation, the date the full amount of estimated just compensation is deposited in court,: or b. The date you move from the displacement dwelling. 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. 27 . Relocation Plan for Lugo Senior Apartments Project - San Bernardino, California 8. LAST 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 representative 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 Any person, who occupies the real property and is not in unlawful occupancy, is presumed to be entitled to relocation benefits. Except for the causes of eviction set forth below, no person lawfully occupying property to be purchased by the Agency will be required to move without having been provided with at least 90 days written notice from the Agency. Eviction will be undertaken only in the event of one or more of the following reasons: · Failure to pay rent; except in those cases where the failure to pay is due to the lessor's failure to keep the premises in habitable condition, is the result of harassment or retaliatory action or is the result of discontinuation or substantial interruption of services; · Performance of dangerous illegal act in the unit; · Material breach of the rental agreement and failure to correct breach within the legally prescribed notice period; · Maintenance of a nuisance and failure to abate within a reasonable time following notice; · Refusal to accept one of a reasonable number of offers of replacement dwellings; or · The eviction is required by State or local law and cannot be prevented by reasonable efforts on the part of the public entity. 28 . Relocation Plan for Lugo Senior Apartments Project - San Bernardino, California 11. APPEAL PROCEDURES - GRIEVANCE Any person aggrieved by a determination as to eligibility for a relocation payment, or the amount of a payment, may have the claim reviewed or reconsidered in accordance with the Displacing Agency's 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. No federal dollars are anticipated for this project. Therefore, federal regulations may not apply and the IRS may consider relocation payments as income. 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 addressed herein) 13. 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. 14. ADDITIONAL INFORMATION AND ASSISTANCE AVAILABLE Those responsible for providing you with relocation assistance hope to assist you in every way possible to minimize the hardships involved in relocating to a new home. Your cooperation will be helpful and greatly appreciated. If you have any questions at any time during the process, please do not hesitate to contact your relocation representative at Overland, Pacific & Cutler. 29 . Relocation Plan for Lugo Senior Apartments Project - San Bernardino, California EXHIBIT D: Public Comments and Response None received. 30 .