HomeMy WebLinkAboutResolution No. 2020-23RESOLUTION NO R2020-23
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF FRIENDSWOOD TEXAS APPROVING THE 2018
COMMUNITY DEVELOPMENT BLOCK GRANT —
DISASTER RECOVERY (CDBG DR), ACQUISITION
GUIDELINES
WHEREAS, on February 3, 2020, the City Council of the City of Fnendswood, Texas
adopted Resolution No R2020-03 approving the CDBG-DR application and
WHEREAS, the City is required to adopt Acquisition Guidelines to support the CDBG
DR acquisitions project.
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FRIENDSWOOD TEXAS -
Section 1. That the facts and matters set forth in the Preamble of this Resolution are
hereby found to be live and correct
Section 2 That the City Council of the City of Fnendswood, Texas has approved and
supports the following grant for the City of Fnendswood
Infrastructure Applications include the Utility Relocate at Clear Creek Utility Bridge and
Deepwood Flood Control Project and Acquisitions include Deepwood Properties and
Frenchman's Creek
Section 3 That the City Council of the City of Fnendswood, Texas, hereby approves and
implements Acquistion Guidelines in accordance with General Land Office (GLO) guidance,
attached hereto as Exhibit' A and made apart hereof for all purposes
PASSED, APPROVED, AND ADOPTED this the 2n° day of November, 2020
M' a Fore
Mayor
ATTEST
nQ •,� k0� FRIFyO
Melinda Welsh TRMC . O
City Secretary * : 0
R2020-23
City of Friendswood
CDBG-DR Hurricane Ha
Acquisition Guidelines
October 2, 2020
Vag, 1
Table of Contents
SECTION 1. GENERAL................................................................................................
1.1 Background...........................................................................................................
5
1.2 Voluntary Acquisition Program............................................................................
4
1.3 End Use Redevelopment of Acquired Properties ..................................................
1.4 National Objective...............................................................................................
6
1.5 Definitions...........................................................................................................
7
SECTION 2 ELIGIBILITY AND APPLICATION......................................................................
2.1 Eligibility Test................................................................................................
2.2 Proof of Event Damage..........................................................................................
2.3 Case Management...............................................................................................
36
2.4 Eligibility Review and Complaint/Appeals Process .................................................
2.5 False Claims Disclaimer..........................................................................................
17
SECTION 3• ACQUISITION OFFER, INCENTIVES, CLOSING ..................................................
3.1 Current Fair Market Value (CFMV).........................................................................
3.2 Duplication of Benefits........................................................................................
19
3.3 Housing Incentives................................................................................................
19
3.4 Environmental Requirements.................................................................................
3.5 Offer and Closing Process.....................................................................................
21
3.6 Residential Anti -Displacement and Relocation Assistance Plan (RARAP) Statement
SECTION 4• ADMINISTRATION................................................................................ .
4.1 Affirmative Marketing & Fair Housing Plan ........................................................
4.2 Public Outreach & Targeted Communities Plan ....................................................
4.3 Communication Strategies for Persons with Special Needs ....................................
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27
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APPENDIXA RESIDENTIAL ANTI -DISPLACEMENT AND RELOCATION ASSISTANCE PLAN)RARAP) .................. 29
APPENDIX B. EXAMPLE INTAKE BENEFICIARY APPLICATION........................................................................ 36
Page 3
CDBG DR Hurricane Harvey
Voluntary Acquisition Guidelines
City of Friendswood Texas
SECTION 1: GENERAL
Page 4
SECTION 1 GENERAL
1.1 Background
Hurricane Harvey which made landfall on August 25, 2017, caused extensive flooding within
Galveston County with over 50 inches of rain falling According to the City of Friendswood damage
assessment, approximately two thousand eight hundred households in Friendswood were flooded
Statewide the latest National Oceanic and Atmospheric Administration (NOAA) damage estimate
from Harvey is $125 billion As a result, Congress through the Department of Housing and Urban
Development (HUD) and the Texas General Land Office (GLO) authorized $5.024 billion in Round
one of disaster recovery funds for the State of Texas
Based on FEMA Individual Assistance (FEMA-IA) data a total of twenty-eight (28) households
applied for FEMA-IA assistance, of the households a total FEMA Verified Loss (FVL) equated to a
total of $60,786.97 The Houston Galveston Area Council (HGAC) developed a Method of
Distribution (MOD) to disburse more than $240 million to the HGAC area As a result of this MOD
the City of Friendswood was allocated $2,762,650 for buyout and acquisition projects
Among the eligible activities for those funds, HUD has authorized the use of voluntary acquisition
programs Voluntary acquisition programs accomplish the following (1) reduce the risk to
homeowners from the effects of subsequent disasters (2) assist in the recovery of low and moderate
income households, and (3) protect taxpayer resources that might otherwise be needed after a
disaster in the same area (80 FR 72102)
1.2 Voluntary Acquisition Program
Voluntary acquisition programs support hazard mitigation floodplain management goals, and
resiliency by removing homeowners from the floodplain to minimize the possibility of future flooding
to their homes and having them move to higher ground
As a voluntary acquisition project neither the Property Owner nor the City is compelled nor required
to participate If negotiations fail to produce an amicable agreement the jurisdictions right to Eminent
Domain will not be used to acquire the property The City reserves the right to refrain from continuing
action on any individual property file Similarly, program participants have the right to discontinue
participation The program will offer Post -Storm Fair Market Value to participants
1.3 End Use Redevelopment of Acquired Properties
The City of Friendswood's ultimate goal will be to utilize the acquired properties in a manner
consistent with HUD National Objectives
Following acquisition from an eligible property owner the structure will be demolished with the
goal of using the vacant parcel for flood control within the watershed If a flood control project
cannot be undertaken due to project funding or parcel availability the vacant parcel will be used as
a public park / green space
Page 5
1.4 National Objective
All program activities must meet one of the three National Objectives required under the authorizing
statute of the Community Development Block Grant —Disaster Recovery (CDBG-DR)program The
CDBG-DR Acquisition Program will principally provide assistance to those households meeting the
LMI objective When the property owner does not meet the definition of the LMI Objective, eligibility
for assistance will be provided through the Urgent Need Objective
This Voluntary Acquisition Program is structured to serve the Urgent Need Objective Per the Federal
Register Notice (FRN) governing these funds a program that provides post -disaster FMV (Fair Market
Value) to buyout applicants merely provides the actual value of the property thus, the seller is not
considered a beneficiary of CDBG—DR assistance
2020 HUD Income Limits
A household is considered LMI if they make less than 80% ofthe area median income Income eligibility
will be determined using the Low (80%) Income Limit from the HUD Section 8 Housing Income Limits
adjusted for family size and verified following the GLO's Adjusted Gross Income Methodology The
methodology uses the previous year's filed tax return or tax return transcript for all household
members to verify the household's annual income
The LMI threshold for an individual household will vary based on number of household members, as
shown in the following guidance table provided by HUD
Median
9eraons In Family
Famiy
FY 2020 Income
H 2020 Income Limit Area
Income
Limit category
®
I 2 3 ♦ 5 6 2 8
Very
Income Limits (E1
22,600 31,550 35,500 39,400 42,600 45,250 48,900 52,050
Houston -The Woodlands -
Sugar Land, TX HUD Metro
$78,800
Income
16,600 18,950 21,220 26,200 30,00 35,160 39,640 ",120
FMR Area
Low (80%)
Income Umnt ($)
44,150 50,450 56,250 63,050 68,100 23,150 28,200 83,250
Source. Mtps�//www huduser eov/portal/datasets/il/112020/2020summarv.odn
In determining income the program will use the most recent signed federal income tax returns (e.g.
IRS Forms, 1040, 1040A or 1040EZ) If one or all household members do not have an IRS tax return
or the income situation has changed since the tax return(s) was filed any of the following applicable
documents must be presented for every household member that is 18 or older
Minimum of three current and consecutive months of check stubs (if the household member is
paid monthly)
Page 6
Minimum of four current and consecutive check stubs (if the household member is paid
weekly, bi weekly or bi-monthly)
Pension statement showing current monthly or yearly gross amount
Social Security statement or IRS Form 1099
Unemployment statement
Certification of Zero Income Form
Completed Household Income Worksheet and Certification
Under the disaster recovery federal regulations HUD has determined that an urgent need exists
within the Presidentially Declared counties An urgent need exists because existing conditions pose a
serious and immediate threat to the health or welfare of the community the existing conditions are
recent or recently became urgent (typically within 18 months) and the city or state cannot finance
the activities on its own because other funding sources are not available All property owners which
cannot meet the UM National Objective will be placed into the Urgent Needs category
HUD has established the requirement that 70%of the aggregate of CDBG DR funds be utilized for
the benefit of the low and moderate -income population in the impacted area HUD has indicated
they will only consider a waiver to this requirement if it can be adequately demonstrated that the
needs of the low or moderate -income population within the impacted area have had their needs
sufficiently addressed or potentially if the impact is less than 70% low or moderate -income persons
1.5 Definitions
Adiusted Gross Income (AGI) AGI is an individual's total gross income minus specific deductions The
GILD Adjusted Gross Income Methodology may be found at http://recoyery.texas.goy/.
Affirmatively Furthering Fair Housing IAFFH) The City desires to ensure that the program meets the
requirements of the Affirmatively Furthering Fair Housing Final Rule to provide all residents of the City
an opportunity to improve their living environments within the program parameters as established by
GLO
Community Development Block Grant (CDBGI A federal program administered by the US Department
of Housing & Urban Development (HUD) which provides grant funds to local and state governments
The CDBG program works to ensure decent affordable housing to provide services to the most
vulnerable in our communities, and to create jobs through the expansion and retention of businesses
Current Fair Market Value (CFMVI. As -is value of property at time of appraisal Also referred to as
post -disaster value Includes structure(s) land parcel, rights and easements Appraisal methodology
will use comparable sales approach and highest best use assumption to determine CFMV
Demolition. The clearance and proper disposal of dilapidated buildings and improvements
Decent Safe Sanitary Housina (DSSH-MT) Minimum Threshold. The minimum threshold for DSSH is
hereby defined as $120,000
Page 7
Disabilities Disabilities are defined as a physical or mental impairment which substantially limits one
or more major life activities a record of such impairment or being regarded as having such an
impairment
Disaster Risk Reduction Area (DRRA) The DRRA is defined as all areas within City boundaries The
DRRA is delineated to meet the following definitions prescribed by the GLO (1) the hazard must have
been caused or exacerbated by the Presidentially -declared disaster area (2) the hazard must be a
predictable environmental threat to the safety and well-being of inhabitants as evidenced by the best
available data and science and (3) the DRRA must be clearly delineated so that HUD and the public
may easily determine which properties are located within the designated area The designated DRRA is
all areas within the flood way or 100 year floodplains within the City of Friendswood
Source Map by City of Friendswood
Duplication of Benefits - The RobertT Stafford Disaster Assistance and Emergency Relief Act (Stafford
Act) prohibits any person business concern or other entity from receiving financial assistance from
CDBG-DR funding with respect to any part of a loss resulting from a major disaster as to which he/she
has already received financial assistance under any other program or from insurance or any other
source
Page 8
Elderly Person [24 CFR 891.2051 An elderly person is a household composed of one or more persons
at least one of whom is 62 years of age or more at the time of initial occupancy
Environmental Review All qualified projects will undergo an environmental review process. This
process ensures that the activities comply with National Environmental Policy Act (NEPA) and other
applicable state and federal laws
Fair Housing: Activities that follow the rules and guidelines set forth in the Fair Housing Act and
subsequent fair housing legislation The goal of these activities is to eliminate housing discrimination
promote economic opportunity and achieve diverse inclusive communities
Fair Housing Marketing Plan. A marketing strategy designed to attract applicants of all majority and
minority groups, regardless of sex, handicap, familial status, etc to participate in the housing activities
which are being marketed
Fair Market Value The hypothetical price that a willing buyer and seller will agree upon when they are
acting freely carefully and with complete knowledge of the situation
Federal Emergency Management Agency (FEMA). An agency of the United States Department of
Homeland Security The agency's primary purpose is to coordinate the response to a disaster that has
occurred in the United States and that overwhelms the resources of local and state authorities
Federal Register Notice IFRN). The federal document published by HUD, which governs the rule and
requirement of the grant
Floodplain FEMA designates floodplains as geographic zones subject to varying levels of flood risk
Each zone reflects the severity or type of potential flooding in the area The "100-year floodplain" is
the geographical area defined by FEMA as having a one percent chance of being inundated by a
flooding event in any given year The 500-year floodplain" is the geographical area defined by FEMA
as having a 0.2 percent change of being inundated by a flooding event in any given year
Housing Incentives Housing incentives is an overarching term comprising two subcategories Down
Payment Assistance and Optional Relocation Assistance The purpose of such housing incentives is to
encourage maximum participation by property owners and to facilitate the relocation of those
applicants to Decent Safe Sanitary Housing (DSSH) options in safer more disaster resilient areas
Household Relative Income Percentage (HRIP) Adjusted gross income for an entire household in
relation to area median income expressed as a percentage value (%) Varies based on household size
Special Needs Adjusted Household Relative Income Percentage (SNA-HRIP) Household Relative
Income Percentage (HRIP) adjusted for a given household's applicable special needs categories
Expressed as a percentage value (%)
Page 9
Proof of Event Damage In order to be eligible for acquisition, the applicant homeowner must
demonstrate that their home was damaged by Hurricane Harvey Acceptable forms of Proof of Event
Damage are as follows
1) FEMA award letters Small Business Administration (SBA) award letters, or
2) Insurance Claim Award letters,
3) Inspection report/Damage Assessment conducted by a certified, licensed or experienced
inspector(HQS, TREC license or similar experience) satisfactory and are compliant with GLO's
Damage Assessment Guidelines, or
4) Must be identified on the City of Friendswood damage assessment which was conducted
immediately following Hurricane Harvey
Low -Moderate Income Households A household is considered LMI if they make less than 80%of the
area median income income prioritization will be determined using area median household income
adjusted for family size and verified following the GLO's Adjusted Gross Income Methodology The
methodology uses the previous year's filed tax return or tax return transcript for all household
members to verify the household's annual income
Manufactured Homes. Manufactured homes are pre -constructed to a federal HUD building code
completely in a factory on a permanent, fixed steel chassis Manufactured homes typically have
skirting or siding around the bottom of them to hide where the wheels were removed Special
residential zoning restrictions limit their placement in the City
Modular Homes. Modular homes are pre -built in sections at a factory then transported to the building
site placed on a permanent foundation, and finished on location Modular homes must conform to all
local state and regional building codes and require a post -construction building inspection
National Environmental Policy Act (NEPAI. Establishes a broad national framework for protecting the
environment NEPA's basic policy is to assure that all branches of government give proper
consideration to the environment prior to undertaking any major federal action that could significantly
affect the environment
National Flood Insurance Program (NFIP). Created by Congress in 1968 to reduce future flood damage
through floodplain management and to provide people with flood insurance through individual agents
and insurance companies FEMA manages the NFIP
Single Family Home A single -unit family residence detached or attached to other housing structures
Substantial Damage Occurs when a property sustains damages that equal or exceed 50 percent of its
Fair Market Value (FMV) prior to the event as determined by a local authorized official (e.g., a code
officer) and is sent a Substantial Damage Letter or if the ECR/AA value (minus elevation and bulkheads
costs) meets or exceeds 50 percent of the program cap
Page 10
Uniform Relocation Act (URA): A federal law that establishes minimum standards for federally funded
programs and projects that require the acquisition of real property (real estate) or displace persons
from their homes, businesses, or farms
Unsecured Forgivable Promissory Note. If the applicant qualifies for disaster recovery assistance and
has been awarded funding there are conditions placed on the applicant receiving the assistance The
conditions are outlined in an Unsecured Forgivable Promissory Note (the Note) between the assisted
beneficiary and the City that requires applicants to comply with several terms during a set affordability
period Once the homeowner complies with all the terms of the Note and the affordability period
ends, the terms are forgiven
U.S. Department of Housing and Urban Development (HUD) The Department of Housing and Urban
Development (HUD) is a U.S government agency created in 1965 to support the housing market and
homeownership HUD does this by improving affordable homeownership opportunities, increasing
safe and affordable rental options, reducing chronic homelessness, fighting housing discrimination by
ensuring equal opportunity in the rental and purchase markets and supporting vulnerable populations
Page 11
CDBG DR Hurricane Harvey
Voluntary Acquisition Guidelines
City of Friendswood, Texas
SECTION 2: ELIGIBILITY AND APPLICATI
Page 12
SECTION 2. ELIGIBILITY AND APPLICATION
2.1 Eligibility Test
Applications must meet the following prerequisites in order to be considered for voluntary acquisition
Prerequisite H3 Structure must be inside the Frenchman's Creek— Friendswood Designated service areas, or
the Deepwood / Woodvine designated service areas
Disaster Risk Reduction Area (DRRA). — CDBG-DR Acquisition Project
AIN
Sources City of Friendswood
Note' This map shows the
Deepwood / Woodvine service
areas within the City of
Friendswood
Sources City of
Friendswood
Note- This map shows the
Frenchman's Creek service
area within the City of
Friendswood
Page 13
Prerequisite #2 Owner Occupied or Rental Single Family Dwelling, or Condominiums must have
evidence of being directly or indirectly affected by Hurricane Harvey For situations in which only
indirect damage can be identified, these scenarios will be reviewed on a case -by -case basis
Prerequisite #3 Property owner must have submitted a completed Intake Application and Eligibility
Release Form, both signed by all members of the household 18 years of age or older and all associated
documentation required on the Intake Application Checklist (see Appendix C Intake Package) by the
60 day application deadline
Prerequisite #4 Property owner must provide documented proof of impact from Hurricane Harvey
(insurance cost -adjustor report, FEMA documentation SBA documentation NFIP documentation
official independent damage assessment etc.)
Prerequisite #5 Applicant must furnish evidence that property taxes are either current, have an
approved payment plan, or qualify for an exemption under current laws Applicant must prove that
property taxes have been paid or that one of the following alternatives has been met
The property owner qualified for and received a tax deferral as allowed under Section 33.6 of the
Texas Property Tax Code or
The applicant entered into a payment plan with the applicable taxing authority
Support documentation verifying the tax deferral or tax exemption must be provided by the applicant.
Any applicant that enters into a payment plan must supply a signed copy of the payment plan from the
applicable taxing entity along with documentation that they are current on their payment plan
Prerequisite #6 Property owner and City must mutually agree to voluntarily participate Any property
owner who chooses not to participate is fully entitled to that decision
Prerequisite #7 If any owner of a property is deceased whether before or after the storm event, the
executor (or administrator) of the estate must join in the sale of the property to the City
Prerequisite #8 Probate Court consideration and approval is required before the Program buys
real property from any probate estate
Prerequisite #9 In regards to property owned with other individuals, property owners who owned and
occupied a structure at the time of the storm that is located on land that they owned along with other
individuals (e.g. owned together with their family) must be treated as a property owner on owned
land and are eligible
Prerequisite #10 In regards to purchase contracts the contract for deed is not eligible unless the
property owner converts his/her contract to full ownership prior to receiving funding assistance from
the program
Prerequisite#11 Rent or Lease -to -own is not eligible unless the property owner converts their
contract to full ownership prior to receiving funding assistance from the program
Prerequisite #12 Conditional Sale Contracts are not eligible unless the property owner converts their
contract to full ownership prior to receiving funding assistance from the program
Prerequisite #13 The following legal documents are proof that a property owner was purchasing a
home on a contract as identified above
Notarized contract dated and executed prior to the incident date for review by the program's
legal/escrow provider
Page 14
Notarized and executed contract that was filed prior to the incident date in the conveyance
records of the City
Prerequisite #14 Proof that a contract has been completed and title conveyed to the purchaser is
provided by one of the following
Presentation to the case manager of a notarized executed conveyance document from the seller
to the contract purchaser
Evidence of recordation of the title in the name of the property owner in the conveyance records
of the City
Prerequisite #15 Title clearance is a necessary component of any traditional real estate transaction
Prerequisite #16 Preliminary title research will be conducted by checking the legal owner of record
according to the Galveston County Appraisal District prior to the appraisal process The Program
will only purchase properties that have clear title as determined by its procured title company It is
the responsibility of the property owner to assist the title company with obtaining clear title In
some cases, the Program predicts that applicants will have to obtain legal assistance from private
attorneys or pro-bono legal aid organizations The cost of these legal services is at the expense of
the property owner(s) If an applicant is unable to clear title within a reasonable amount of time,
the acquisition program may determine that they are ineligible for assistance In these cases, the
Program will establish the closing deadline at least 90 days in advance and inform the property
owner with a documented phone call and certified mailing
Prerequisite #17 the unit must be a single-family residence
Prerequisite #18 All applicants and co -applicants must be current on payments for child support If the
applicant or co -applicant is not current on child support, that individual will be required to enter into a
payment plan that will be obtained from the Office of Attorney General (DAG) A copy of the payment
plan signed by all applicable parties along with documentation demonstrating that they are current on
their payment plan must be supplied
Prerequisite #19 All properties must be reviewed for environmental factor and comply with NEPA
requirements
2.2 Proof of Event Damage
The Program is obligated to only offer CDBG-DR housing assistance to properties affected by Hurricane
Harvey HUD requires that all projects funded by this allocation be related to direct or indirect storm
impact To comply with the federal requirement, the Program will verify that each property purchased
under the program was damaged by Hurricane Harvey Any one of the following sources of information will
be considered sufficient evidence that a property sustained direct impact by Hurricane Harvey
• Photographs of property damage
• City of Friendswood damage assessment data
FEMA assistance,
Homeowners insurance claims,
Flood insurance claims,
Adjuster reports,
Page 15
• SBA documentation, or
Written report of damage by certified inspector
2.3 Case Management
Case managers cannot make eligibility decisions or determine benefits for applicants However case
managers can assist the overall process for all stakeholders Each program participant will be assigned
a Case Manager who will remain their point -of -contact throughout the acquisition program
Applicants will only be reassigned Case Managers if there are changes to staff, or if necessary, because
of language barriers or homeowner disabilities Every case management assignment decision will be
made with the property owner's best interest in mind and the property owner's input and preferences
will be heavily considered
In order to provide fair and equal access to potential benefits, Case Managers cannot complete Intake
Beneficiary Applications on behalf of applicants Case Managers cannot research and obtain
supporting documents on behalf of applicants in order to complete their files Case Managers will
however provide information on how to complete applications and where and how supporting
documentation can be obtained Furthermore Case Managers will work with other community
volunteers or volunteer groups who may provide direct assistance to applicants
Case Managers will ensure documents are properly completed and details verified Case Managers will
also assure that each program participant completes every required step in the process Additionally
Case Managers will create a documentary record that proves every required step is properly
completed
2.4 Eligibility Review and Complaint/Appeals Process
A committee comprised of Galveston County and City of Friendswood staff will be formed for the
purpose of eligibility determinations and case management oversight Uniform documentation
materials and consistent criteria will be used by the committee to make determinations
Property owners may appeal eligibility determination or the Current Fair Market Value (CFMV)
appraisal of their property If they choose to appeal their appraisal a second appraisal can be
conducted on the condition that it's conducted under uniform regulations and instructions from the
Program it is paid for by the homeowner and conducted in accordance with USPAP standards by an
independent. objective licensed certified appraiser with no connections nor affiliations with
interested parties
Assuming uniform conditions and instructions are satisfied, if the new appraisal report results in a
value increase of less than 15%, the average of the two values will form the basis for the offer If the
new appraisal report shows a value less than the original appraisal report, the original value is used
and the offer remains unchanged If the new appraisal report shows a value increase greater than 15%,
the Program may order a third appraisal at the program's expense
The value of the middle appraisal (the median value) will be used for the purposes of generating the
offer amount
Page 16
The GLO and Galveston County are responsible for responding to complaints and appeals in a timely
and professional manner The Program will keep a record of each complaint or appeal that it receives
to include all communications and their resolutions
Complaints should be addressed to
City of Friendswood Fire Marshal's Office
Attention CDBG DR Acquisition
910 South Frendswood Dr Friendswood
Texas 77546
When a complaint or appeal is received, a representative will respond to the complainant or appellant
within fifteen (15) business days where practicable For expediency the Program will utilize telephone
communication as the primary method of contact However email and postmarked letters will be used
as necessary The following procedures as well as contact information will be provided in the
homeowner's application packet
2.5 False Claims Disclaimer
False claims by applicant/homeowners are strictly prohibited Application, qualification, and voluntary
authorization documents signed by homeowner/applicant will carry the following warning disclaimer
"Warning Any person who knowingly makes a false claim or statement to HUD may be subject to civil
or criminal penalties under 18 U.S.0 187 1001 and 31 U.S.0 3719
Page 17
CDBG DR Hurricane Harvey
Voluntary Acquisition Guidelines
Galveston County, Texas
SECTION 3: ACQUISITION OFFER, INCENTIVES,
CLOSING
Page 18
SECTION 3. ACQUISITION OFFER, INCENTIVES CLOSING
3.1 Current Fair Market Value (CFMV)
The initial basis for acquisition funds to seller is the Current Fair Market Value (CFMV) also known as
'Post -Storm Value , of their property Appraisal methodology for this CDBG-DR acquisition project will
be current fair market value of parcel (structure land/lot, fee simple, highest best use assumption
comparable sales approach) The results of the CFMV appraisal will constitute the base offer
The Program recognizes that some property owners will not agree with the contracted appraiser's
valuation of their home Property valuations contain many variables and two appraisers may reach
differing conclusions regarding the fair market value of the same property As a result, the Program
has developed the following process available to property owners for them to formally contest and
appeal the determined fair market value of their properties Property owners may not change the
value of their properties in any method outside of the following process
1 Property owner informs the Program in writing that they intend to appeal
2 Property owner hires their own appraiser to conduct an appraisal of the home The appraiser
must be licensed/certified to conduct real estate appraisals
3 The property owner provides the new appraisal report to the Program
4. If the new appraisal report results in a value increase of less than 15%, the average of the two
values will form the basis for the offer
5 If the new appraisal report shows a value less than the original appraisal report, the original value
can be used and the original offer remains unchanged
6. If the new appraisal report shows a value increase of greater than 15%, the Program may order a
third appraisal at the program's expense The value of the middle appraisal (the median value)
will be used for the purposes of generating the offer amount
3.2 Duplication of Benefits
Due to the CDBG-DR acquisition program framework, which utilizes Current Fair Market Value (CFMV)
appraisal methodology, Duplication of Benefits (DOB) in all foreseeable cases will not be applicable but will
vetted as received by the applicant In most cases, DOB would be triggered when an applicant is participating
in an HMGP Buyout Program or received SBA Relocation Assistance However since DOB as defined by
federal agencies is strictly prohibited if DOB were to occur during this program, property owners would be
required to pay back all funds to the respective government agency For this reason all participants will be
required to sign a subrogation agreement
3.3 Housing Incentives
In addition to the purchase price the Program may provide relocation assistance or housing incentives if
the owners need for additional assistance is documented The purpose of such housing incentives is to
encourage maximum participation and facilitate relocation to Decent Safe Sanitary Housing (DSSH) in safer
more disaster -resilient areas
A Needs Assessment Methodology will be utilized for each qualified applicant file to determine the
minimum necessary funding in order to obtain DSSH The Needs Assessment Methodology will
Page 19
calculate the difference between the Current Fair Market Value (CFMV) of the property and the DSSH
Minimum Threshold of $120,000
Ultimate proceeds paid to the seller of qualified eligible acquisition property will be comprised of the
following subtotals
a Unit Fair Market Value (Post -Disaster)
Expenses up to $5,000
Relocation Assistance { $10,000 1
Down Payment Assistance [DPA). The difference or shortfall between CFMV and DSSH Minimum
Threshold may be made up through a Down Payment Assistance (DPA) incentive up to $10,000 Down
Payment Assistance (DPA) not to exceed $10,000 will only be available if the owner's need for
additional assistance is documented Formula is (($120,000 minus CFMV = DPA (< $10,000))
In order to qualify for Down Payment Assistance Benefits, the following must apply
a Purchased a lot or are using a pre -owned lot located outside of a Roodplain or to a lower
risk area for construction of a new home (a construction date and plans must be provided),
or the applicant purchased a newly constructed or existing home located outside of
floodplain or a lower risk area
b Purchased homes must be considered decent safe and sanitary (DSSH)
c Down Payment Assistance funding must be used in conjunction with a portion of net
proceeds from the acquired property for a down payment on replacement home as
outlined in Section 3.5
d The Down Payment Assistance funds will be placed into an escrow account and must be
used within 60 days.
e The amount of assistance is equal to $10,000 or the difference or shortfall between CFMV
and DSSH Minimum Threshold of $120,000, whichever is a smaller amount
f Eligible properties must fit in the following categories
i Single family property (detached and attached 1-4 units)
ii Modular home/manufactured home (allowed where zoning permits) iii
Vacantland
Optional Relocation Assistance. All applicants are also eligible for the Relocation Assistance incentive,
which is comprised of $10,000 of Relocation Assistance and $5,000 of Temporary Relocation
Assistance This incentive is not included in nor a part of the $10,000 Down Payment Assistance nor is
it factored into calculation of the difference between CFMV and DSSH Minimum Threshold of
$120,000 Property owners with a property appraised at a CFMV less than the DSSH Minimum
Threshold can qualify for the Relocation Assistance incentive of $10,000 and additional Down Payment
Assistance of up to $10,000 Property owners with a property appraised at a CFMV greater than the
DSSH Minimum Threshold will receive only the CFMV and Relocation Assistance of $10,000
Page 20
All costs for initial appraisal and closing will be paid by the project Curative title issues will be the
seller's responsibility to resolve but may be paid out of closing proceeds Referrals to local legal aid
services will be provided for applicants with clouded titles or curative title issues
Non -Primary Homes. A property is considered a non -primary home if it is rented out at any time
during the year regardless of whether it is used by the household or not
Properties that are identified as non -primary homes are eligible for an amount not to exceed the
current FMV without incentives Duplication of benefits will still apply and can reduce the offer
amount to a value below the current FMV
Properties that were vacant on a temporary basis at the time of the storm due to reasons relating to a
demonstrable hardship (health job loss, death divorce disability business failure etc.) are not
considered to be non -primary homes, and are eligible for current FMV plus incentives Properties that
sustained direct and/or indirect impact by Hurricane Harvey and have been vacant since the storm's
impact are considered non -primary homes and are eligible for current FMV
3.4 Environmental Requirements
The City of Friendswood will perform or contract, the required 24 CFR Part 58 environmental
requirements associated with the property which is being submitted by the applicant All sites will
undergo a thorough tiered environmental evaluation with the general environmental assessment
occurring first and a site -specific environmental evaluation to follow once the individual properties
have been identified The site specific evaluation will approximately coincide with the timing of the
initial appraisal The environmental evaluation will be reviewed and approved by the CDR-GLO before
an offer can be extended to the homeowner In addition 24 CFR Part 58 environmental requirements
will be initiated upon each change of use activity
Lead -based paint and asbestos inspections will be conducted No negative impacts to endangered
species will occur as a result of this project and the US Fish and Wildlife Service (USFWS) will be
consulted as to all project activities US Department of Agriculture (USDA) -designated Prime Farmland
will not be negatively impacted Archaeological sites and historic structures will not be disturbed, and
the State Historic Preservation Office (SHPO) will be consulted for verification
No hazardous materials will be disturbed and released into the environment over the course of this
project No wetlands will be negatively impacted and all necessary environmental permits will be
obtained for project operations All relevant environmental laws and regulations will be followed
3.5 Offer and Closing Process
Following the completion of the Current Fair Market Value (CFMV) appraisal and the calculation of
additional housing assistance incentives the homeowner qualifies for an offer to acquire property will
be extended to the homeowner If owner accepts, a sales agreement will be executed and documents
sent to the title company for deed research issuance of title insurance policy parcel boundary survey
and closing document preparation
Once closing date is set or negotiated property owner will be given notice to vacate instruction on
utilities disconnection and referrals for assistance with moving, etc Advance payment of relocation
assistance may be available for qualified applicants
Page 21
Closing will occur on the acquired property and program participants will be required to use a
proportion of their net proceeds on the down payment of a replacement property in order to be
eligible for Down Payment Assistance (DPA) If the program participant's net proceeds from the sale of
their home are less than $4,000, they will be required to use at least 10%of those net proceeds on the
down payment If the program participant's net proceeds from the sale of their home are between
$4,000 and $20,000, they will be required to use at least 60%of those net proceeds on the down
payment If the program participant's net proceeds from the sale of their home are more than
$20,000, they will be required to use at least 80%of those net proceeds on the down payment
Down payment assistance funds shall sit in escrow and shall be distributed to the proper agency upon
relocation The down payment funds will not be requested until the applicant has supplied the
necessary documentation to the City verifying the purchase of a home (such as a purchase
agreement), the City has completed a Housing Quality Standards (HQ$) inspection of the new home
and the required 58.6 NEPA checklist has been completed
After closing on the property acquired by the City the title company will send the Down Payment
Assistance (DPA) funds to an escrow account at the title company that will handle the purchase of the
program participant's replacement home The program participant will then combine the Down
Payment Assistance (DPA) funds and the required proportion of the net proceeds from the acquisition
of their home to close on the replacement home The period between closing on the property
acquired by the City and closing on the replacement home must be no longer than 30 days
Once closing is complete demolition on the property acquired by the Program will begin The entire
structure, including discarded or abandoned items will be removed from the property and disposed of
at an approved disposal site within 45 days of closing date
All customary costs associated with the purchase of private property, including appraisal legal survey
title preparation and insurance, are paid for by the Program, using CDBG-DR funding Demolition and
site work, including environmental remediation grading, and security will also be paid for under this
Program
3.6 Residential Anti -Displacement and Relocation Assistance Plan (RARAP) Statement
This project is a voluntary acquisition program so there will be no involuntary displacement of property
owners Appendix A details further guidance for compliance with the Uniform Relocation Assistance
and Real Property Acquisition Policies Act of 1970, if non -primary homes are to be purchased and
tenants qualify as "Displaced
Persons Additional support can be provided by Lone Star Legal Aid of Texas, along with other
potentially available resources
Displaced Persons
.(49 CFR § 24.2 (a) (9)) A displaced person is any person who moves from real property or moves
his/her personal property from real property as a direct result of an acquisition by a federal agency or
with federal financial assistance There are several exceptions to this definition
Non -Displaced Persons include owner -occupants with voluntary rehabilitation unauthorized persons
not lawfully present in the U.S. persons with no legal right to occupy the property and persons who
were evicted for good cause
Page 22
In accordance with the Housing and Community Development Act of 1974, as amended, (HCDA) and
US Department of Housing and Urban Development (HUD) regulations at 24 CFR 42.325 and 570.440
(1), use of Community Development Block Grant Disaster Recovery (CDBG DR) funds will minimize
adverse impacts on persons of low and moderate -income persons The purpose of the Residential
Anti -displacement and Relocation Assistance Plan (RARAP) in Appendix A is to provide guidance on
complying with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970,
as amended (URA) (Pub L 91 645 42 U.S.0 4601 et seq) and section 104(d) of the HCD Act (42 U.S.0
5304(d))(Section 104(d)) The implementing regulations for the URA are at 49 CFR part 24 The
regulations for section 104(d) are at 24 CFR part 42 subpart C
Page 23
CDBG DR Hurricane Harvey
Voluntary Acquisition Guidelines
Galveston County Texas
SECTION 4• ADMINISTRATION
Page 24
SECTION 4. ADMINISTRATION
4.1 Affirmative Marketing & Fair Housing Plan
The City of Friendswood is committed to affirmatively furthering Fair Housing The Program has
selected areas impacted by the storm that have been designated as target acquisition areas, also
known as the DRRA The total allocation available to the Program may be insufficient to purchase
homes from every interested property owner in the target areas The Program shall ensure that no
person shall on the ground of race color national origin religion, sex, sexual orientation, age, familial
status, or disability be excluded from participation in be denied the benefits of or be subjected to
discrimination under or be denied access to the CDBG Disaster Recovery Program
The Program will maintain a free-standing participant log with all applicants with the amount of the
award in each area (acquisition, relocation assistance and Homebuyer Assistance) and where
possible the race or ethnicity of the applicant (since this is generally voluntary information if it is not
obtainable that should be indicated) for each applicant whether awarded or not Personally
Identifiable Information will not be included (social security numbers, driver's license information or
mortgage information) as it is not relevant for this review A log of this nature is intended to expedite
the review for GLO monitors or outside parties to ensure the program is in keeping with the goals of
the Affirmatively Furthering Fair Housing Final Rule
The City either on its own or through a Program Manager will be responsible for the development of
this list and, prior to awards being made, the Program will analyze the list to ensure that the applicants
involved where possible in the acquisition target area. are in conformance, at a minimum to the
overall population demographics of the Program In the event that there are not sufficient racial
and/or ethnic minorities on the application list or participating in the program the Program will
provide additional outreach within the target areas or provide certification that every property owner
in the target area has been contacted at a personal level and has chosen not to participate
In the event that the racial and ethnic participation cannot be achieved within the 70% LMI program
requirements the incomes of those who do not meet the LMI requirement will be included in the list
maintained by the Program and added as an exhibit to the certification
4.2 Public Outreach & Targeted Communities Plan
All public notifications will include announcements in the jurisdictions newspaper of record on the
City of Friendswood website, on City social media platforms, and postings on public facilities Efforts
may be taken to affirmatively market the CDBG-DR Program as follows
Advertising with the local newspapers,
Outreach to public or non-profit organizations and hold/attend community meetings
Hosting additional workshops as needed for community leaders and civic organizations on
the purpose of the program and how the community can participate
Conducting one-on-one and small group trainings as needed with community leaders and
civic organizations regarding program procedures and
Other forms of outreach tailored to reaching the eligible population including mailings or
door-to-door outreach
Page 25
Measures will be taken to make the program accessible to persons who are considered members of a
protected class under the Fair Housing Act by holding informational meetings in buildings that are
compliant with the Americans with Disabilities Act (ADA) providing sign language assistance when
requested. and providing special assistance for those who are visually impaired when requested
4.3 Communication Strategies for Persons with Special Needs
When requested program administrators will provide bilingual materials to non-native English
speaking audiences and sign language assistance for those who are hearing -impaired Print materials
will align with the CDR-GLO's guidelines for communications with persons with special needs in
accordance with Title VI of the Civil Rights Act of 1964, including persons with disabilities (24 CFR 8.6)
Limited English Proficiency (LEP), and other fair housing and civil rights requirements such as the
effective communication requirements under the Americans with Disabilities Act The State of Texas
Emergency Assistance Registry (STEAR) will be reviewed for targeted outreach and special assistance
needs
4.4 Timeliness of Application Notice & Status
In accordance with procedures and methods outlined in Section 4.2 (Public Outreach & Targeted
Communities) announcements will be posted and circulated that applications are being accepted
beginning November 15, 2020 and that the deadline for applications is February 15 2021 After the
application intake period all submitted applications will be reviewed for completeness and eligibility
Property owners found to be ineligible due to incomplete materials, back taxes or child support owed
or other disqualifying factors will be notified
Program Schedule
Date
er
Program
es Posted
November 15Z2020 Open of application uidlieintake for Public Comment �
November 7 2020 Program Guideline Public Comment Period Closed
February 15 2021 Close of application intake
March 30, 2021
April 30, 2021
May 28, 2021
June 30, 2021
July 30 2021
July 17 2022
July 17 2022
Proposed Date for Initiation of Offers
Proposed Date of Offer Acceptance Deadline
Proposed Date of Closing Deadline
Proposed Date for Housing Incentive Deadlines
Proposed Date for Demolition Deadline
Proposed Date to Complete All End Uses
Proposed Date to Close Out All Activities
Page 26
4.5 Record Keeping
The City of Friendswood will fully comply with all record -keeping and reporting requirements including
but not limited to
1) Record -keeping records will be maintained and on file electronically for a minimum of 3 years
beyond the closing of the grant between the County and the GLO/HUD All projects, program
activity files, and applicant information received will be maintained within an acceptable
GLO's system of record
2) Applicant data applicant data will be maintained in a private file bound by federal Privacy Act
rules and standards regarding disclosure of personal and sensitive information as well as
entered into the i1GR system Generated monthly reports will be submitted to the GLO for
review Applicant data kept on file will include but is not limited to household income at the
time of assistance the household income as a percentage of area median income, the
race/ethnicity/gender of the head of the household, the household's familial status, and any
disabilities, veterans or other special needs categories that apply in the household
3) Section 3 reporting the project will comply with all Section 3 requirements including but not
limited to affirmative placement of qualified individuals from low -to -moderate income
households and County residents seeking lob placements A Section 3 Plan will be created and
continue to be updated throughout the program process In order to comply with Section 3,
the acquisition program will do the following whenever necessary
Implementing procedures to notify Section 3 residents and business concerns about
training, employment, and contracting opportunities generated by Section 3 covered
assistance
• Notifying potential contractors working on Section 3 covered projects of their
responsibilities,
• Incorporating the Section 3 Clause into all covered solicitations and contracts [see 24
CFR Part 135.38]
Facilitating the training and employment of Section 3 residents and the award of
contracts to Section 3 business concerns,
Assisting and cooperating with HUD Policy in making contractors and subcontractors
comply
Refraining from entering into contracts with contractors that are in violation of Section
3 regulations
• Documenting actions taken to comply with Section 3 and
• Submitting Section 3 quarterly and Annual Summary Reports (form HUD-60002)
4.6 Conflict of Interest
Conflicts of Interest are defined as local elected officials, County employees, contractors, and
consultants who exercise functions with respect to CDBG-DR activities or who are in a position to
participate in a decision -making process or gain inside information with regard to such activities
receiving any benefit from the activity either for themselves or for those with whom they have family
Page 27
or business ties, during their tenure or for one year thereafter Conflicts of interest are strictly
prohibited in this program Conflict of Interest Questionnaires (CIQs) and A503 forms will be
completed and maintained on file for all parties with existing or potential conflicts of interest
4.7 Audit Requirements
A mandatory single audit which complies with all County state and local requirements will be
performed by an independent accountant at the end of each fiscal year This audit will be maintained
on file in compliance with record -keeping procedures set forth above
4.8 Closeout Procedures
Following completion of project scope of work, invoice payments and reimbursements, closeout
procedures will begin The first step will be an internal audit, records inventory and review of project
financials. All data records, and accounts will be reviewed and reconciled The next step will be the
packaging and summation of projects, including records structure for external audit and digital back-
ups The next step will be to request GLO closeout procedures, including the delivery of any requested
records, files or documents Once all data requests are satisfied and final closeout is authorized by the
GLO, the grant award contract will be closed by executing parties
4.9 Citizen Comments
Citizen comments and complaints should be directed to
City of Friendswood Fire Marshal's Office
Attention CDBG-DR Acquisition
910 South Friendswood Drive Friendswood
Texas 77546
The project manager will handle all homeowner inquiries and complaints and a timely written
response will be provided to every citizen comment The response will be provided within 15 working
days of the receipt of the comment
Complaints regarding fraud, waste or abuse of government funds will be forwarded to the HUD OIG
Fraud Hotline (phone 1-800-347-3735 or email hotlineCdhudoiz.zovl
Documentation for each complaint will be maintained Each file will include contact information for
the complainant, the initial complaint, the property address any communications to and from
complainant results of the investigation together with any notes, letters, or other investigative
documentation the date the complaint or appeal was closed and any other action taken
Page 28
CDBG DR Hurricane Harvey
Voluntary Acquisition Guidelines
Galveston County, Texas
APPENDIX A RESIDENTIAL ANTI -
DISPLACEMENT AND RELOCATION
ASSISTANCE PLAN (RARAP)
Page 29
This project is a voluntary acquisition program so there will be no involuntary displacement of property
owners
Displaced Persons. (49 CFR § 24.2 (a) (9)) A displaced person is any person who moves from real
property, or moves his/her personal property from real property as a direct result of an acquisition by
a federal agency or with federal financial assistance There are several exceptions to this definition
Non -Displaced Persons include owner -occupants with voluntary rehabilitation (presumed to be the
vast majority if not all, of participants in this program) occupants who receive a Notice of Non
Displacement, occupants who are able to return after temporary relocation, unauthorized persons not
lawfully present in the U.S. persons with no legal right to occupy the property and persons who were
evicted for good cause
General Information Notice (GIN). The URA regulations require that persons who are scheduled to be
displaced will be provided with a GIN as soon as feasible This program may involve both persons who
are actually displaced and persons who are not displaced If the tenant -occupant of a dwelling moves
permanently from the property after submission of an application for HUD financial assistance, the
tenant will be presumed to qualify as a "displaced person To minimize such unintended
displacements, HUD policy considers all occupants within a proposed HUD -assisted project involving
acquisitions as scheduled to be displaced for purposes of issuing a GIN All occupants, therefore will
be provided with a GIN
Tenant Intake Meetin¢. As soon as feasible the Program shall contact each person who is affected by
the project to discuss his/her needs, preferences and concerns Whenever feasible contact shall be
face to -face These meetings will take place after the landowner intake meeting and before the
acquisition offer is sent to the landowner This scheduling is meant to avoid the possible issue of
tenant ineligibility for HUD/URA assistance It is possible that some tenants in the acquisition target
area are undocumented persons and are thus ineligible to receive benefits from HUD However HUD
requires that all displaced tenants receive URA relocation assistance Thus, properties with
undocumented tenants are ineligible to participate in the program because if they were to do so they
would either be
in violation of the URA or the HUD rule against benefiting undocumented persons If a property is
deemed ineligible for acquisition for reasons related to tenant eligibility that property owner will
receive a phone call and a letter from the Program stating that the property is ineligible for
participation in the acquisition program because of tenant ineligibility for HUD assistance
If the tenant does not qualify for relocation assistance or if at any time the landowner decides not to
participate in the program the tenant will receive a Notice of Non -displacement and will not be
eligible to receive assistance
Notice of Non -displacement If a person does not qualify as a displaced person, HUD policy requires
that such persons be provided with a Notice of Non -displacement to advise them of the Program's
determination and their right to appeal A tenant will be defined as non -displaced only if they
received a Move -In notice outlining the property owner's participation in the acquisition program
before they signed the lease Even if there was no intention to displace the person, if they were not
given timely information essential to making an informed judgment about a move it is assumed that
the person's move was an involuntary move caused by the project
Page 30
If the landowner continues to participate in the acquisition program and eventually signs a contract of
sale with the Program. the tenants will then be given a Notice of Relocation Eligibility and 90 Day
Notice to vacate In order to have these documents ready to send immediately after contract signing,
the case management team will have identified three comparable replacement dwellings that are
currently for rent and completed and internally approved HUD Form 40061 before contract signing
Notice of Relocation Eligibility (N0E). (49 CFR 24.203(b)) The NOE will be issued promptly after the
initiation of negotiations (contract of sale between County and land owner), and will describe the
available relocation assistance the estimated amount of assistance based on the displaced person's
individual circumstances and needs, and the procedures for obtaining the assistance This Notice will
be specific to the person and their situation so that they will have a clear understanding of the type
and amount of payments and/or other assistance they may be entitled to claim Ninety -Day Notice (49
CFR 24.203(c)) The 90-day notice shall not be given before the displaced person is issued a notice of
relocation eligibility (or notice of ineligibility) for relocation assistance The 90-day notice need not be
issued if (a) there is no structure. growing stock, or personal property on the real property or (b) the
occupant made an informed decision to relocate and vacated the property without prior notice to the
property owner (c) in the case of an owner occupant who moves as a result of a voluntary acquisition
described in 49 CFR 24.101(b)(1) or (2), the delivery of possession is specified in the purchase contract,
or (d) the person is an unlawful occupant
Determining Cost of Comparable Replacement Dwelling (49 CFR 24.403(a)) The upper limit of a
replacement housing payment shall be based on the cost of a comparable replacement dwelling (49
CFR 24.2(a)(6)) If available at least three comparable replacement dwellings shall be examined
(including internal and external inspection) to ensure that the replacement dwelling is decent safe and
sanitary as defined at 49 CFR 24.2(a)(8) The upper limit of the replacement housing payment shall be
established on the basis of the cost for the comparable replacement dwelling that is most
representative of and equal to, or better than the displacement dwelling
1 For purposes of establishing the payment limit, comparable replacement dwellings shall to the
extent feasible be selected within the County
2 Form HUD-40061, Selection of Most Representative Comparable Replacement Dwelling for
Purposes of Computing a Replacement Housing Payment, will be used The form is optional
however if the form is not used other reasonable documentation will be maintained NOTE
when selecting the most representative comparable replacement dwelling for a person with
disabilities, reasonable accommodation is to be determined on a case -by -case basis
The Program may limit the amount of replacement housing payment to the amount required to
obtain a comparable replacement dwelling only if it gives a timely written notice (referral) of such
comparable replacement dwelling If the Program fails to offer a comparable replacement
dwelling before the person enters into a lease or purchase agreement for and occupies, a decent,
safe and sanitary replacement dwelling HUD may require the replacement housing payment be
based on the cost of such decent, safe and sanitary replacement dwelling, or take such other
corrective action as may be deemed necessary to mitigate (to the extent possible) the adverse
consequences of the deficiency
Page 31
Inspection of Replacement Dwelling (49 CFR 24.403(b)) Before making a replacement housing
payment or releasing a payment from escrow the City or its designated representative shall make a
thorough internal and external inspection of the replacement dwelling to determine whether it is
decent, safe and sanitary (as defined at 49 CFR 24.2(a)(8)) A copy of the inspection report should be
included with the pertinent claim form in the Program's files NOTE The definition of decent safe and
sanitary' provides that replacement units will contain the accessibility features needed by displaced
persons with disabilities
If the Program determines that a replacement housing payment may have to be denied because the
replacement dwelling selected by a displaced person is not decent, safe and sanitary (e.g., does not
meet the local code), it will so notify the displaced person determine if the property can be made
decent safe and sanitary and/or assist the person to locate another replacement unit
(1) Amount of payment An eligible displaced person who rents a replacement dwelling is
entitled to a payment not to exceed $7 200.00 for rental assistance (See § 24.404.) Such
payment shall be 42 times the amount obtained by subtracting the base monthly rental for the
displacement dwelling from the lesser of
(1) 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
(2) Base monthly rental for displacement dwelling The base monthly rental for the
displacement dwelling is the lesser of
(1) 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 an owner
occupant, use the fair market rent for the displacement dwelling For a tenant who paid
little or no rent for the displacement dwelling, use the fair market rent unless its use
would result in a hardship because of the person's income or other circumstances),
(11) Thirty (30) percent of the displaced person's average monthly gross household
income of the amount is classified as low income by the U.S Department of Housing
and Urban Development's Annual Survey of Income Limits for the Public Housing and
Section 8 Programs
Displaced Tenant Down Payment Assistance (DTDPAI An eligible displaced person who purchases a
replacement dwelling is entitled to a DTDPA payment in the amount the person would receive if the
person rented a comparable replacement dwelling However the payment to a displaced homeowner
shall not exceed the amount the owner would receive under § 24.401(b) if he or she met the 180-day
occupancy requirement A displaced person eligible to receive a payment as a 180-day owner -
occupant under § 24.401(a) is not eligible for this payment
Manner of Disbursing Rental Assistance Relocation assistance payments will be disbursed in three (3)
installments, except lump sum payments made to cover (1) moving expenses (2) down payment for
purchase of qualified replacement housing, or incidental expenses related to (1) or (2) Whenever the
payment is made in installments, the full amount of the approved payment shall be disbursed in
Page 32
regular installments, whether or not there is any later change in the person's income or rent or in the
condition or location of the person's housing
The frequency of these disbursements will be determined by the City in consultation with the tenant
However there will be no less than three installment payments, except when the rental assistance
payment is $500 or less Where the rental assistance payment is $500 or less, it is recommended that
payment may be made in two installments with no less than a four month interval between payments
Determination to Provide replacement housine of last resort Whenever a program or project cannot
proceed on a timely basis because comparable replacement dwellings are not available within the
monetary limits for owners or tenants, as specified in § 24.401 or § 24.402, as appropriate, the Agency
shall provide additional or alternative assistance under the provisions of this subpart Any decision to
provide last resort housing assistance will be adequately justified either
(1) On a case -by -case basis, for good cause which means that appropriate consideration has been
given to
(i) The availability of comparable replacement housing in the program or project area,
(ii) The resources available to provide comparable replacement housing, and
(ill) The individual circumstances of the displaced person or
(2) By a determination that
(i) There is little, if any, comparable replacement housing available to displaced persons
within an entire program or project area, and, therefore, last resort housing assistance
is necessary for the area as a whole
(ii) A program or project cannot be advanced to completion in a timely manner without
last resort housing assistance and
(III) The method selected for providing last resort housing assistance is cost effective,
considering all elements, which contribute to total program or project costs
Documentation Any claim for a relocation payment shall be supported by such documentation as may
be reasonably required to support expenses incurred, such as bills certified prices, appraisals, or other
evidence of such expenses A displaced person will be provided reasonable assistance necessary to
complete and file any required claim for payment
Expeditious payments. The Program shall review claims in an expeditious manner The claimant shall
be promptly notified as to any additional documentation that is required to support the claim
Payment for a claim shall be made as soon as feasible following receipt of sufficient documentation to
support the claim
Advanced payments If a person demonstrates the need for an advanced relocation payment in order
to avoid or reduce a hardship the Program shall issue the payment, subject to such safeguards as are
appropriate to ensure that the objective of the payment is accomplished
(1) All claims for a relocation payment shall be filed with the Program no later than 18 months after
Page 33
(1) For tenants, the date of displacement
(ii) For owners, the date of displacement or the date of the final payment for the
acquisition of the real property whichever is later
(2) The Program shall waive this time period for good cause
Notice of denial of claim, If the Program disapproves all or part of a payment claimed or refuses to
consider the claim on its merits because of untimely filing or other grounds, it shall promptly notify the
claimant in writing of its determination, the basis for its determination and the procedures for
appealing that determination
Moves from a home A displaced person's actual reasonable and necessary moving expenses for
moving personal property from a home may be determined based on the cost of one or a
combination of the following methods (self -moves based on the lower of two bids or estimates are
not eligible for reimbursement under this section Eligible expenses for moves from a home include
those expenses described in paragraphs (g)(1) through (g)(7) of this section In addition to the items in
paragraph (a) of this section the owner -occupant of a home that is moved as personal property and
used as the person's replacement dwelling, is also eligible for the moving expenses described in
paragraphs (g)(8) through (g)(10) of this section.)
(1) Commercial move moves performed by a professional mover
(2) Self -move moves that maybe performed by the displaced person in one or a combination of
the following methods
(1) Fixed Residential Moving Cost Schedule (Described in § 24.302.)
(11) Actual cost move. Supported by receipted bills for labor and equipment Hourly
labor rates should not exceed the cost paid by a commercial mover Equipment rental
fees should be based on the actual cost of renting the equipment but not exceed the
cost paid by a commercial mover
Page 34
Page 36
CDBG DR Hurricane Harvey
Voluntary Acquisition Guidelines
Galveston County Texas
APPENDIX B: EXAMPLE INTAKE BENEFICIARY
APPLICATION
April 2019 Page
Event
*
Texas General Land Office Community
Development and Revitalization
Date Received
!
Subrecipient
TNGLG
Buyout or Acquisition Program
Intake Beneficiary Application
Contract a
Intake Beneficiary Application
April 2019
Page 2 of 7
If applicable, is your property currently owned by a(n). Estate ❑ Partnership O Corporation ❑
Was the damaged property the homeowner's primary residence on the date of the disaster event?
Was the damaged property covered under homeowners insurance a[ the time of the disaster event?
Did you register with FEMA for repair assistance for structural damage to your home?
Have you ever received any other assistance for the repair or rehabilitation of your home?
If yes, please explain
Intake Beneficiary Application
of 6
4. HOUSEHOLD COMPOSITION AND CHARACTERISTICS: List all current members of the household and any
additional household members anticipated within the next 12 months.
Member Name
Marital Status
Head of Household Only
RelaHomhip to Head
of Household
Date of Birth
Gender
Head of Household
Total Number of Household Members•
5. INCOME INFORMATION (COPY OF PREVIOUS YEAR TAX RETURN) To determine if you are eligible for
funding for a specific housing program, all listed occupants 18 yews and over must provide a copy of their previous tax return
Subreelpiems will refer to the GLO's IRS FORM 10401Adjusted Gross Income (AGI) Method Calculation Pah'ry to determrne a beneficiary's
household income
6. DIRECT BENEFIT DATA BY HOUSEHOLDS (DEMOGRAPHIC AND SPECIAL NEEDS INFORMATION).
Ethnicity Caller
A Hispenic.A persanafCuban, Mexraan, Pueno Rraaq South or Cantml American, rohher Spenlsheulwre or origin, regardlessw me a Temrs,uch as Latino
or Spanish ousts, apply to thlscstegory
B Not Hispanic
Rare Cases: E Native Ha.,,moOlw,P.,ficlslander I AmereanlndiaNAleslm
A White F marearth haNAlaska NatwNVhite NabvdBlsck-African American
B 1111,10alcen American G MiaNwhite J Othamulu-Racial
C Asian H Blaek/African ArrencaNWhice K-Unknown
D Americashalut'Alaskm bletwe
Speeisl Needs Cudem C Colowi Resident F-Pubfic Horsing Resident
A Eldedy D Homdess G Ve¢mn
B Personwith Diabiliosse E-MigreMFarm Worker H Wounded Warrior
Disability Definition. A phy cal or meutal impairment which substantially limit one or more major life activities', record of uch an impairment, or being
regarded as having such an impairment.
Elhnldty Code
Rae, Cade
Special Needs Cadets)
l Hesa
2
3
4
Intake Beneficiary Application
April 2019
Page 3 of 7
5
6
7 DAMAGED RESIDENCE INFORMATION Please indicate the type of structure for the property:
Single Enmity Home ❑ 1 Modular Home ❑ 1 Townborne ❑ 1 Manufactured Housing Unit ❑ 1 rlther
Address.
City State, Zip, Municipality
Name of Neighborhood/Area where your home is located.
Date you acquired title to the property
Please Provide the following property information which may be available from your recent pro
writy tax bill(s).
Legal Description.
Assessed Value.
Farmland Assessed?
(Yes or No)
Annual Property Taxes
Amount:
Number of Acres Per Let (or
Lot Size):
$
$
$
$
$
$
Total Acres -
Phase answer Yes, No or N/A to the following questions:
Is anyone living at the damaged residence?
Is the property in the Floodplain or Hoodway?
Ifyou are seeking assistance for a manufactured housing unit, do you own the land?
Does the manufactured housing unit have a valid Statement of Ownership and
Location (SOL) filed with the Texas Department of Housing and Community
Affairs?
Are there any other names on the deed for the damaged property?
Have you had property foreclosed upon or we you in the process of foreclosure?
Dices the damaged property have a mortgage or any liens?
Are there any leases, rental agreements, easements or deed restrictions affecting the
property9 If yes, explain
Have any commercial activities ever taken place on this property? If yes, explain
Is the property currently listed for sale? If yes, what is the current asking price
Note While the asking price is a key element in the evaluation ofthis property it is
nonbinding, and is not a commitment ofthe part ofthe Subrecipient to pay this
amount should this property be selectedfor the Buyout or Acquisition program
Please tell us about your property including any unique or special environmental features, known historical associations, and any
bodies of water on the property or bordering the property
Intake Beneficiary Application
April 2019
Page 4 of 7
Are you current or in good standing with a payment plan on your property taxes?
If you are required to pay child support, are you current on your payments or in good
standing with a payment plan?
S. HOUSING ASSISTANCE RECEIVED PREVIOUSLY:
Have you applied for any storm -related assistance for damage to your home from any source (local, state,
federal, private)? If yes, proceed with this section. If you have not applied for other storm -related
assistance, include "N/A in the Source column.
Source
Amount
Date Received
Account Number
1 FEMA. Federal Emergency
Management Agency
2. SBA. Small Business
Administration
Insurance Claims. Please provide information on insurance coverage carried and payments received
Insurance company's name
N/A
Amount
Date Received
Policy Number
National Flood Insurance
Program (Flood insurance
carrier)
N/A
Amount
Date Received
Policy Number
4. Other Funds (Include Funding
Source) -
Have you received assistance from any federal program to repair your home PRIOR to this
event? (Yes or NO)
List the names of the programs and type of assistance received for the damaged home (e.g., HOME CDBG GLO/FEMA etc.)
Intake Beneficiary Application
April 2019
Page 5 of 7
9 APPLICANTCERTIFICATION
I/We understand the information provided above is collected to determine if I/we are eligible to receive assistance under the Community
Development Block Grant Disaster Recovery (CDBG-DR) Program
I/We hereby certify that all the information provided herein is true and correct
I/We understand that providing false statements or information is grounds for termination of housing assistance and is punishable
under federal law
Applicant's Authorization
f authorize the entity to which I am applying for assistance to obtain information about me and my household that is pertinent
to determining my eligibility for participation in the CDBG-DR Program. I acknowledge that
(2) A photocopy of this form is as valid as the original; AND
(2) 1 have the right to review information received using this form, AND
(3) I have the right to a copy of information provided to the entity and to request correction of any information 1 believe
to be inaccurate- AND
(4) All adult household members will sign this form and cooperate with the eligibility verification process.
(5) I understand that my documents may become electronically permanent.
y signing this application, the applicant(s) authorizes the state or any of its duly authorized representatives to verify the information
contained herein, including this section. Warning: Anyperson who knowingly makes afalse claim orstatement to HUD may besubjec
o civil or criminal penalties under 18 U.S.C. 287 1001 and31 USC. 3729
Signature of Applicant
Dale.
Signature of Co -Applicant
Date:
10. ELIGIBILITY RELEASE.
Subrecipient
Contract Number
Name
Address
Instructions to Applicant Your signature on this Eligibility Release, and the signatures of each member of your household who is 18
years of age or older authorizes the above -named Subrecipient to obtain information from a third party regarding yew eligibility and
continued participation in the
Community Development Block Grant Disaster Recovery (CDBG-DR) Program
Privacy Act Notice Statement. The Texas General Land Office (GLO) or Subrecipient named above require the collcetionof the
information listed in this form to determine an applicant's eligibility for the CDBG-DR Program This information will be used to
establish the level of benefits for which the applicant is eligible to receive and to verifythe accuracy of the information furnished
Information received from an applicant as a result of verifying an applicant's eligibility may be released to theappropriate federal slate,
and local agencies or when relevant, to civil criminal, or regulatory investigators, and to prosecutors. Failure to provide any information
may result in delay or rejection of your eligibility approval
Each adult member of the household must sign this Eligibility Release prior to the receipt of benefits to establish continued eligibility
Note: THIS GENERAL CONSENT MAY NOT BE USED TO REQUEST A COPY OF A TAX RETURN If a copy of a lax
return is needed, IRS Form 4506 "Request for a Copy of Tax Form must be prepared and signed separately
Intake Beneficiary Application
April 2019
Page 6 of 7
Information Covered. Inquiries may be made to third parties regarding the items initialed below by the applicant
Description
Verification Required
Initials of Applicants
Disaster Assistance (FEMA SBA, Insurance, etc.)
X
Income (all sources)
X
Occupancy Preference (Special Needsxif applicable)
X
Child Support Verification
X
Other (list)Dependent Information
Full-time Student
Disabled Household Member
Minor Children
X
X
y signing this application, the applicants) authorizes the state or any of its duly authorized representatives to verify the information
contained herein, including this section. Warning. Any person who knowingly makes a false claim or statement to HUD may be
object to civil or criminal penalties under 18 USG 287, 1001 and 31 U.&G 3719.
Signature of Applicant-
DATE
Signature of Co -Applicant-
DATE
YLCAOZ,rn"V WC ALL Al'YL1l:Al{LL UVCUMI&N I J LIN I'ED BLLVW I'O ENSURE THXF
YOUR APPLICATION WILL BE PROCESSED IN AN EXPEDITED MANNER
❑ Completed Buyout and Acquisition Intake Application
❑ Properly executed Eligibility Release Form
❑ FEMA Award/Denial Letter
❑ Small Business Administration (SBA) Award/Denial Letter
❑ Private insurance letter (If you did not have private insurance an Affidavit of no
Insurance will be required)
❑ Letter or announcement from an `Other' award received for the repair or replacement of
your damaged home e.g. non-profit donation grant, etc
❑ Copy of the applicant's driver's license (or a state -issued photo ID)
❑ Warranty Deed for the damaged home or a Statement of Ownership and Location (SOL)
for MHU in applicant's name
❑ Latest Financial Institution Bank statement or lien information
❑ IRS Income Tax Documents for all individuals that live at the property and that are 18
years and over
Intake Beneficiary Application
April 2019
Page 7 of 7
❑ Property tax records including latest payment of property taxes or payment plan
documentation from the applicable county appraisal office
❑ Child support documentation (If applicable)
❑ Copy of the applicant's Lender or Mortgage statement and contact information
❑ Photos of the property including structures or items such as bums, fence, etc. if available
❑ Property Survey if available
Intake Beneficiary Application
April 2019
Page 8 of 7
Public Comments
Intake Beneficiary Application
April 2019
Page 9 of 7