August Bolsa Ave, Suite 201 Huntington Beach, CA ph fax

Transcription

1 August Bolsa Ave, Suite 201 Huntington Beach, CA ph fax

2 TABLE OF CONTENTS I. GENERAL INFORMATION... Introduction and Project Description... 1 Purpose of the Relocation Plan... 2 Citizen Participation... 3 Regional Location and Description... 4 Specific Project Location... 5 General Demographics & Housing Characteristics... 6 II. ASSESSMENT OF RELOCATION NEEDS... Survey Method... 6 Residential Data and Needs Assessment... 7 Field Survey Data... 7 Project Occupancy Data... 7 Project Area Rents... 7 Replacement Housing Needs... 7 Income... 8 Senior/Handicapped Households... 8 Non-Residential Data and Needs Assessment... 8 III. RELOCATION RESOURCES... Residential Property for Sale... 9 Residential Property for Rent Business Replacement Sites Competing Projects Alternate Housing Programs Temporary Housing Needs Program Assurances and Standards Summary IV. RELOCATION ASSISTANCE PROGRAM... Advisory Services Relocation Benefits to Residential Occupants Moving Expense Payments A. Fixed Payment (Room Count Schedule) B. Actual Cost (Professional Move) Relocation Benefits to Owner-Occupants Replacement Housing Payment Non-Recurring Closing Costs Increased Mortgage Rate Differencial Payment i

3 Relocation Benefits to Tenant-Occupants Last Resort Housing Relocation Benefits To Business Displacements Business Moving Expenses Reestablishment Expenses V. ADMINISTRATIVE PROVISIONS... Notices Language Assistance Relocation Appeal Process Eviction Policy Projected Dates of Displacement Estimated Relocation Costs TABLES Table 1: Parcel Summary & Characteristics... 1 Table 2: Demographics Race & Ethnicity... 6 Table 3: Demographics - Housing... 6 Table 4: Existing Project Housing Breakdown by Bedroom Count... 7 Table 5: Project Area Rent Range... 7 Table 6: Replacement Housing Needs... 8 Table 7: Tenant Household Income Category... 8 Table 8: Non-Residential Characteristics... 9 Table 9 Replacement Housing for Sale Table 10: Replacement Housing for Rent Table 11: Summary of Available Commercial Space Table 12: Fixed Moving Schedule EXHIBITS Exhibit A: Interview Form - Residential Exhibit B: Interview Form - Non Residential Exhibit C: General Information Notice Residential Exhibit D: General Information Notice Non Residential Exhibit E: Informational Brochure Residential Exhibit F: Informational Brochure Non Residential Exhibit G: Notice of Eligibility 180 Day Homeowner Exhibit H: Notice of Eligibility 90 Day Tenant 43 Exhibit I: Notice of Eligibility - Nonresidential Exhibit J: 90 Day Notice to Vacate Exhibit K: 2014 HUD Income Limits Exhibit L: Relocation Appeals Process Exhibit M: Public Comment and Written Response ii

4 I. GENERAL INFORMATION INTRODUCTION AND PROJECT DESCRIPTION Within the City of Santa Ana ( City ), Bristol Street is classified as a north-south Major Arterial per the City s General Plan Circulation Element and the County of Orange s Master Plan of Arterial Highway. Due to growth in recent decades, and the resulting traffic congestion, the City proposed to widen Bristol Street between Warner Avenue and Memory Lane from a four-lane roadway to a six-lane arterial to provide adequate vehicular capacity within the City s northern limits. In 1991, City Council approved the 3.9-mile improvement as the Bristol Street Corridor Specific Plan. The Bristol Street Widening project was broken into several phases based on funding availability. Bristol Street is currently a four-lane undivided arterial from Washington Avenue to Seventeenth Street. This segment of Bristol Street currently carries 42,300 vehicles per day and has a volume to capacity ratio of At this ratio, this roadway segment operates at unacceptable level of service F. Level of Service F exists wherever the amount of traffic approaching a point exceeds the amount which can traverse that point and queues form up behind such locations as arrival flow exceeds discharge flow. The proposed widening for the segment of Bristol Street from Washington Avenue to Seventeenth Street from two to three lanes of through travel (Project) is pursuant to the City s General Plan Circulation Element designation of Major Arterial. As defined in the City s General Plan Circulation Element, a Major Arterial includes six through travel lanes and enhanced features at intersections, including dedicated right and left turn lanes to maintain the operating capacity of the road. Throughout the project limits, leftturn lanes, right-turn pockets and bus turnouts will be constructed at major intersections, as would a seven-foot wide, on-street Class II bike lane. The proposed improvements will require the relocation of existing utilities, including power pole and catch basins, and adjustment of surface utilities to grade. The proposed improvements would include the construction of sidewalk and curb ramps at all intersections, which meet pertinent requirements set forth under the Americans with Disabilities Act of The Project will require the full acquisition of fifteen (15) parcels on the east side of Bristol Street. There is one parcel on the northeast side of 17 th Street. The City has previously acquired the parcel on the northwest corner of Washington and Bristol Streets. Impacted parcels consist of seven (7) commercial parcels, one (1) of which is vacant, six (6) residential parcels, two (2) of which are vacant, and two (2) mixed use parcels. The mixed use parcels are comprised of two (2) residential units and four (4) commercial units. The Project will result in the displacement of six (6) residential households and twelve (12) businesses. Table 1 details the parcel characteristics. Table 1 Parcel Summary and Characteristics Parcel Type Total Occupied Vacant Commercial Residential Mixed Use (2 res & 4 com)

5 The Project will be funded through the Orange County Transportation Authority s ( OCTA ) gas tax subvention funds, Measure M2 funds and Arterial Capacity Enhancements funds. The City has retained the services of Paragon Partners, Ltd. ( Paragon ) to prepare a Relocation Plan (the Plan ) to provide the City with information regarding the potential impacts of the proposed project on the affected residential and commercial occupants. This Planis organized into five sections as follows: I. General Information II. Assessment of Relocation Needs III. Relocation Resources IV. Relocation Assistance Program V. Administrative Provisions PURPOSE OF THE RELOCATION PLAN The purpose of the Plan is to provide the City of Santa Ana with information about the impact of the proposed Project on residential and business occupants to be displaced and to develop solutions to minimize the adverse impacts of such displacements. More specifically, the primary objectives of the Plan are as follows: 1. To conduct a survey of relocation needs of the households and businesses displaced by the proposed Project. 2. To perform an analysis of the relocation needs of individuals, families, and businesses. This includes a determination of the location factors and characteristics required in identifying comparable replacement housing sites. The replacement housing sites should exhibit: a. Equivalency to the displacement unit b. Compliance with applicable local housing codes c. A decent, safe and sanitary condition d. Affordability to the displaced person e. Availability in an area which is compatible with the housing needs and location factors established in the survey f. Availability on the market g. Availability to displacees without regard to age, race, color, religion, sex, marital status or national origin 3. To conduct a survey and analysis of available relocation resources. This survey will aid in determining whether comparable and suitable replacement resources are available to the affected residences and businesses. 4. To outline the City s relocation procedures, funding sources and time frame for relocation activities. This is to assure that uniform, fair and equitable treatment is provided to all displacees of the proposed Project. 2

6 5. To determine the needs of displacee as well as the potential costs to effectively relocate the displacee. 6. To determine any need for Last Resort Housing for the relocation of any household that will require financial assistance beyond the limits set by state statute. CITIZEN PARTICIPATION In accordance with Section 6012 of the California Code of Regulations, Title 25, Chapter 6, the City will ensure the following: 1. Timely and full access to all documents relevant to the relocation program. The City will only restrict access where confidentiality is protected by law or its disclosure is prohibited by law. 2. The information in documents provided does not compromise the privacy of eligible persons. 3. The Provision of technical assistance necessary to interpret elements of the relocation plan and its pertinent materials. 4. A general notice of the Plan shall be provided to all displacees within the proposed Project area. The draft Plan may also be available for public review for 30 days and distributed to interested citizen groups, and other public agencies for review and comment. 5. Copies of the Plan shall be available for review 30 days prior to final approval and adoption by the City of Santa Ana. Comments from displacees and other interested persons regarding this Plan should be sent to: Peter Rhoad Paragon Partners 5762 Bolsa Avenue, #201 Huntington Beach, CA The right of any persons to submit written or oral comments and objections, including the right to submit written comments on the Plan when it is forwarded to the City for final approval. 7. Prompt written responses to any written comment, objection or criticism. 8. Upon receipt of public comments, the Plan will be reviewed to ensure that it is feasible, complies with applicable environmental standards, locally adopted rules and applicable laws and regulations. 9. Public comments and the City s response will be included in the Final Plan. 10. Upon completion of all reviews, the Plan will be presented for adoption by the City. 3

7 REGIONAL LOCATION AND DESCRIPTION The City of Santa Ana is approximately 10 miles inland from the Pacific Ocean, on the largely seasonal Santa Ana River. The Santa Ana Freeway (Interstate 5) runs through the city, and the Costa Mesa (55 Freeway) and Garden Grove Freeway (22 Freeway) travel along the citys edges. The City of Santa Ana is adjacent to the Cities of Anaheim, Costa Mesa, Fountain Valley, Garden Grove, Orange and Tustin. Figure 1 below is an area map showing the regional location of the project. Figure 1: Project Area Regional Map 4

8 SPECIFIC PROJECT LOCATION The Project area is located in a four-lane undivided arterial located on Bristol Street between Washington and Seventeenth Street. Bristol Street is a North-South transportation corridor, and one of Santa Ana s principal transportation corridors providing access to the I-5, I-405 and 22 freeways. Figure 2 below depicts the Project area. Figure 2: Project Area 5

9 GENERAL DEMOGRAPHICS AND HOUSING CHARACTERISTICS According to the 2010 U.S. Census, the total population of the Cit of Santa Ana is 324,528. The median age in the City of Santa Ana is 29.1 and 30.7 within Census Tract 751. Tables 2 and 3, below, compare census data between the City of Santa Ana and Census Tract 751, for population and housing units. TABLE 2: 2010 Census Population City of Santa Ana and Census Tract 751 Race and Ethnicity City % CT 751 % White 148, , Black of African American 4, American Indian or Alaska Native 3, Asian 34, Native Hawaiian or Other Pacific Islander Some Other Race 120, , Two or More Races 11, Total Population 324, , Hispanic or Latino (of Any Race) 253, , TABLE 3: 2010 Census Housing Units City of Santa Ana and Census Tract 751 Type City % CT 751 % Total Housing Units 76, , Owner-Occupied 34, Renter-Occupied 38, , Total Occupied Units 73, , Total Vacant Housing Units 3, Homeowner Vacancy Rate Rental Vacancy Rate Average Household Size II. ASSESSMENT OF RELOCATION NEEDS SURVEY METHOD To gather the necessary information for the Relocation Plan, personal surveys were conducted with residents and business owners within the project area during the months of October through December The surveys were conducted in English and Spanish as appropriate. Surveys were completed with five (5) of the six (6) residential households. Nine (9) out of twelve (12) non-residential uses were interviewed, due to lack of access to the remainder. (See Exhibits A and B for sample Relocation Interview Forms) 6

10 The residential occupants were asked about the number of occupants, size of unit, length of occupancy, disabilities or special needs, household income, desired area for a replacement dwelling, etc. Likewise, the business occupants were asked about the nature of the business, number of employees, size of unit, the preference to lease or purchase a replacement site, areas of preference, specific licensing needs and any specific needs for the replacement site. The information provided by the residential and commercial occupants has not been verified and is solely based on verbal information, which is sufficient for the purpose of completing the Plan. RESIDENTIAL DATA AND NEEDS ASSESSMENT Field Survey Data The six (6) residential households are comprised of three (3) owner-occupants and three (3) tenant occupied households. Two (2) of the six (6) residential households occupy a mixed use property. From the six (6) households, three (3) are of Hispanic or Latino origin, one is Caucasian and two are Asian. The households are comprised of eighteen adults and four minors. Project Occupancy Data Based on survey information, the housing mix of the Project area consists of six single family dwellings. Table 4 displays the number of bedrooms per housing unit. Table 4 Existing Project Housing Breakdown by Bedroom Count (3 Owner-Occupants and 3 Tenant Occupants) Bedroom Size One Two Three Single Family Residence Mixed use Project Area Rents The average monthly rent for the three renter-occupied dwellings is $1,567. Table 5 below itemizes the range and average paid for monthly rent, based on bedroom count. Table 5 Project Area Rent Range Bedroom Size Two Three Range $2,000 $1,200 - $1,500 Average (only one unit) $1,350 Replacement Housing Needs Replacement housing needs for tenant occupants are based on the ratio of total household occupants to number of bedrooms. The U.S. Department of Housing and Urban Development ( HUD ) standard for the maximum number of occupants within a particular dwelling follows a theory, which allows for two occupants per bedroom, with one occupant able to occupy a separate den, living, or family room. Thus, a onebedroom dwelling may accommodate three people; a two-bedroom may accommodate up to five people, and a three-bedroom up to seven people. Based on this occupancy standard, one of the respondent households has been identified as being overcrowded when determining specific housing needs. Referrals 7

11 presented to any potential tenant displacee will reflect the appropriate bedroom count as required by the HUD standards. Table 6 illustrates the number, type and dwelling size required to accommodate the Project area households, based on current number of occupants. Table 6: Replacement Housing Needs (2 Owner Occupants & 3 Tenant Occupants) Bedroom Count One Two Three Four Tenant Households Owner Occupant Income Income information was gathered from all of the tenant households. Tenant occupied income ranged from $4,102 to $5,600 per month with a mean monthly income of $4,901. The households averaged four (4) occupants per household, which is slightly higher than that of the City of Santa Ana and Census Tract 751. Table 7 below categorizes tenant occupied household income based on HUD s 2014 Income limits for Orange County. (See Exhibit K for HUD Income Limits) Table 7: Tenant Household Income Category 2014 HUD Income Category Extremely Low Very Low Lower Income Median Income Moderate Income No. of Households Senior/Handicapped Households One of the households reported having at least one senior person as part of their household. None of the households reported having a household member with a disability. NON-RESIDENTIAL DATA AND NEEDS ASSESSMENT Assessment of Needs All of the business owners surveyed indicated a preference of relocating to the immediate or surrounding area. English was identified as the primary language for all of the businesses which cooperated with the Plan survey. All except three of the non residential occupants participated in the Plan survey. Project Occupants The twelve non-residential uses are comprised of eight owner-occupants and four tenant-occupants. The Project area includes four medical/dental uses, one restaurant, a karate studio and six professional offices. Please refer to Table 8 on the following page for occupant details. 8

12 Table 8 Non Residential Use Characteristics Type Number Restaurant 1 Employees 50 Square Feet 2,510 Rent Range & Average Percentage of sales Medical/Dental ,214 4,103 N/A Professional Office ,561 $ $6.41 Instructional Studio 1 0 1,800 N/A The average number of employees in each of the nine businesses interviewed is six (6). The largest operation has fifty (50) employees and the smallest is owner occupied with no employees. The average size of the space utilized by each business surveyed is approximately 1,433 square feet and ranges from 100 to 4,103 square feet. The average lease rate is $4.45 gross, with a range of $3.57 to $6.41 per square foot. None of the businesses reported having any employees with any disabilities that would need to be accommodated at a replacement site. Two of the businesses indicated that they operate under a month to month rental agreement and three others did not respond to the Plan survey. All respondent business owners indicated a preference to relocate within the immediate area, including the Cities of Santa Ana and Orange. III. RELOCATION RESOURCES The City s relocation consultant conducted on-site interviews from October through December 2013 and evaluated each potentially impacted residential dwelling and business operation in the Project area to assess the needs and requirements for a replacement site. The information gathered was used as the basis for an extensive resource survey to determine the availability of replacement housing and commercial replacement sites. The following sources were utilized: Windshield/drive-by surveys conducted in Fountain Valley, Santa Ana and Orange Classified rental listings from local newspapers and For Rent publications Multiple-Listing Services Internet resources The research encompassed dwellings for rent and for sale as well as potential commercial sites for lease and for sale. Search efforts were generally contained within a 5-mile radius of the Project area. RESIDENTIAL PROPERTY FOR SALE Current market conditions have resulted in a surplus of available replacement housing. Generally, two, three and four bedroom homes are in ample supply, therefore creating a sufficient number of available replacement sites for the two owner-occupants. Table 9 on the following page summarizes a sample of available replacement housing listed for sale. 9

13 Table 9: Replacement Housing for Sale Single Family Dwellings Two Bedroom Three Bedroom No. Dwellings Available (Needed) 12 (1) 52 (2) Price Range $295,000 - $440,000 $275,000 - $499,900 Average Price $379,491 $420,385 RESIDENTIAL PROPERTY FOR RENT Replacement housing research data indicates an adequate supply of rental properties available to the three residential tenant-occupants. As with any resource survey, results reflect conditions at a given point in time, and may or may not be available at the time of displacement. A sample of replacement housing data in the City of Santa Ana is summarized in Table 10 below. Table 10: Replacement Housing for Rent Single Family Dwellings Three Bedroom Dwelling Four Bedroom Dwelling No. Dwellings Available (Needed) 25 (2) 14 (1) Rental Range (Monthly Basis) Average Rent (Monthly Basis) $1,700 - $2,950 $2,150 - $3,475 $2,298 $2,665 Considering the availability of replacement housing resources, it appears that there are adequate replacement resources available to displaced residential occupants. While adequate replacement sites are available, displaced tenant occupants will likely experience an increase in rent. Rent increases will be addressed through the City s obligation under the relocation program, including Last Resort Housing requirements. (See Section IV) The City will be responsible to assist each household in relocating to comparable replacement housing. Any replacement housing unit approved by the City must meet decent, safe and sanitary housing requirements in accordance with Title 25 California Code of Regulations. In order to meet these standards, a replacement site must meet the following criteria: Be structurally sound; weather tight and in good repair Contain a safe electrical wiring system adequate for lighting and other devices Contain a safe heating system capable of sustaining a reasonable temperature Be adequate in size with respect to the number of rooms and area of living space needed to accommodate the displaced household 10

14 Contain unobstructed egress to safe, open space at ground level. If the dwelling unit is on the second story or above, with access directly from or through a common corridor, the common corridor must have at least two means of egress. For a person who is not mobile or impaired, be free of barriers which would restrict reasonable ingress, egress, or use of the dwelling BUSINESS REPLACEMENT SITES The availability of replacement sites for lease and sale was researched as part of the study. Search efforts focused on the City of Santa Ana and surrounding cities. Table 11 below summarizes the replacement sites found. Table 11: Summary of Available Commercial Space No. of Size Range and Property Type Properties Average (SF) Office For Lease 300 2, (4) Available/(Need) 823 Office For Sale , (5) Available/(Need) 4,174 Mixed Use For Sale 1,850 2,953 6 (2) Available/(Need) 2,403 Restaurant For Sale 4,000 4,264 3 (1) Available/(Need) 4,088 Cost Range & Average (Per Sq. Ft.) $ $3.70 $1.55 $101 - $411 $244 $ $293 $267 $900,000 - $2,995,000 $464 COMPETING PROJECTS There are no projects of a size that would impact the available inventory for replacement sites within the City of Santa Ana. There are therefore adequate replacement sites to accommodate displaced businesses. ALTERNATE HOUSING PROGRAMS When available, Section 8 Housing Vouchers are granted by the Housing Authority of Orange County to qualified low and moderate income families, seniors and disabled persons to secure suitable and affordable housing. The City does not have its own housing authority among its various departments, but its residents fall under the jurisdiction of the Housing Authority of the County of Orange. However, one of the functions of the relocation program is to provide qualified displaced households rental assistance for the incurred increase rent for a period of forty-two (42) months. Therefore, the scope of assistance provided by the relocation program through the City should meet the displacement needs. TEMPORARY HOUSING NEEDS The City does not foresee a need for temporary housing as a result of Project acquisition or relocation requirements. However, should such a need arise, the City will respond appropriately and in conformance with applicable laws, regulations, and guidelines. 11

15 PROGRAM ASSURANCES AND STANDARDS There are adequate funds to relocate all the households that would be displaced if the Project is implemented. Relocation services will be provided to ensure that displacement does not result in different or separate treatment of households based on race, nationality, color, religion, national origin, sex, marital status, familial status, disability, or any other basis protected by the federal Fair Housing Amendments Act, the Americans with Disabilities Act, Title VI of the Civil Rights Act of 1964, Title VIII of the Civil Rights Act of 1968, the California Fair Employment and Housing Act, and the Unruh Act, as well as any other arbitrary or unlawful discrimination. SUMMARY The purpose of this Plan is to evaluate and assess the needs of residential and business displacees impacted by the proposed Project. Based on information gathered from interviews, site inspections and survey data, adequate sites are available to successfully relocate residential and business displacements. Therefore, the Project will not require special consideration other than Last Resort Housing. However, given the proposed project timing, it will be critical to gain cooperation from each resident and business owner, to allow sufficient time to identify a relocation site, obtain cost estimates, complete any physical improvements, navigate the permitting process, and complete the escrow process if a replacement site is being purchased. IV. RELOCATION ASSISTANCE PROGRAM The City will be providing a comprehensive Relocation Assistance Program to all families and businesses displaced by the Project. The City s Relocation Program is designed to minimize hardship and be responsive to unique project circumstances. Services will be provided in such a manner to ensure consistent and equal treatment of displacees, without regard to race, nationality, color, religion, national origin, sex, marital status, family status or disability. Paragon has been retained by the City to administer the Relocation Program. Relocation representatives will be available to assist all displaced households and businesses. Staff can be contacted by calling the phone number listed below, from 8:00 a.m. to 5:00 p.m. Monday through Friday at: Paragon Partners, Ltd Bolsa Avenue, Suite 201 Huntington Beach, CA Office / Fax The City s comprehensive Relocation Assistance Program consists of advisory and financial assistance. These principal components will be implemented in accordance with the California Relocation Assistance Law (Government Code 7260) and the California Code of Regulations, Title 25, Chapter 6, as amended. 12

16 ADVISORY SERVICES Individuals, families and businesses moving from existing homes or business sites as a result of the Project will receive advisory assistance, which includes the following: 1. Provision of all required brochures and notices (See Section V, Administrative Provisions) 2. Determination of the needs of each residential and business displacee eligible for relocation assistance 3. Provide displacees with referrals to replacement properties within a reasonable time prior to displacement 4. Provide reasonable services and assistance to successfully relocate residents and businesses being displaced by the Project 5. Assure that no occupant is required to move without a formal written 90-Day Notice to Vacate the premises (See Exhibit J) 6. Provide advisory assistance to a displacee with regard to the process of filing a formal grievance or appeal RELOCATION BENEFITS TO RESIDENTIAL OCCUPANTS The City s Relocation Assistance Program will help eligible occupants by paying necessary expenses to relocate to a replacement site in accordance with applicable relocation guidelines. These costs are limited to those necessary for the purchase or rental of a comparable replacement property and moving costs of personal property. 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. Moving costs and relocation benefits will be paid to eligible displacees upon submission of required claim forms and documentation in accordance with the City's administrative procedures. These include: MOVING EXPENSE PAYMENTS Any eligible displaced person who lawfully occupies the property being acquired, regardless of the length of occupancy, will be eligible for reimbursement of moving costs associated with property located at the displacement site. Displacees will receive either a fixed moving payment based on a room count schedule or actual cost associated with a professional move. A. Fixed Payment (Room Count Schedule) The displacee, while taking the responsibility for the move, may elect to receive a fixed moving payment for a self-move based on a room count of furnished rooms in the displacement dwelling. The fixed moving payment is a one-time, allowance for a selfmove that does not require back-up documentation. The current schedule for fixed moving payments is set forth in Table 12 below: 13

17 Table 12: Fixed Moving Schedule Occupants-Furnished Rooms Room Count Payment 1 Room $685 2 Rooms $880 3 Rooms $1,100 4 Rooms $1,295 5 Rooms $1,570 6 Rooms $1,815 7 Rooms $2,090 8 Rooms $2,365 Each additional room $250 Occupants-Unfurnished Rooms 1 Room not furnished $450 Each additional room $85 B. Actual Cost (Professional Move) The displacee may elect to retain the services of a licensed professional mover, in which case the City will pay for the actual cost of the move within a 50-mile Project radius, based on the lower of two acceptable moving bids. After the move is complete, the displacee may pay the mover directly and seek reimbursement from the City or request a direct payment to the mover. RELOCATION BENEFITS TO OWNER-OCCUPANTS Frequently, an owner-occupant displaced from their dwelling will have to pay more to purchase a comparable replacement dwelling than received for the purchase price of their existing dwelling. The increased cost may be due to a limited number of available replacement housing in the area or the need to improve the quality of housing to meet minimal acceptable housing standards. In this situation, the owner-occupant will be eligible for a replacement housing payment provided they have owned and occupied the property for at least 180 days prior to the first written offer by the City to purchase the property. California State Relocation laws and guidelines provide a basic entitlement of up to $22,500 to compensate the owner-occupant for a Purchase Price Differential, Increased Mortgage Interest Differential Payment (if applicable); and Non-Recurring Closing Costs, which are explained below. REPLACEMENT HOUSING PAYMENT Once the fair market value of the dwelling being acquired by the City is determined, an analysis of the existing housing market is made to determine the costs of a comparable replacement dwelling. The difference between the price received for the existing dwelling and the purchase price of a comparable replacement dwelling is determined to 14

18 be the Purchase Price Differential. For example, if the existing owner-occupants dwelling is valued at $400,000 and it is determined that a comparable replacement dwelling is available for $420,000; the maximum Purchase Price Differential payment would be $20,000. In order to receive the $20,000 Purchase Price Differential payment, the owner-occupant must purchase and occupy a decent, safe and sanitary dwelling costing at least $420,000 within one year from the later of either displacement or payment of the purchase price of the dwelling acquired by the City. If the replacement dwelling costs less than $420,000, the Purchase Price Differential payment would be reduced to reflect the actual difference between the cost of the dwelling being acquired by the displacee and the price paid for the home by the City. NON-RECURRING CLOSING COSTS As a part of the cost associated with the purchase of a replacement dwelling, certain costs are generally incurred. These include, but are not limited to: appraisal fees, title and escrow fees, recording fees, loan processing fees, and cost for credit reports. These one-time fees associated with purchasing a replacement dwelling are reimbursable to the owner by the City. These expenses must be actually incurred and documented on a Final Closing Statement supplied by the escrow or title company. Recurring costs such as real estate taxes, insurance and association dues are not eligible as reimbursable costs. INCREASED MORTGAGE RATE DIFFERENTIAL PAYMENT In some cases, a displaced owner-occupant will find current market interest rates or program costs exceeding their existing program. Under California relocation guidelines and regulations, a payment may be made to enable the displacee to reduce their replacement mortgage balance to the level of the existing mortgage payment and remaining term, computed using the mortgage interest rate at the replacement dwelling and subject to the eligibility requirements. Except in the case of Last Resort Housing situations, and pursuant to the California relocation guidelines and regulations, payment for the combination of the Replacement Housing Payment, Non-Recurring Closing Costs and any Increased Mortgage Interest Differential Payment is limited to a maximum of $22,500. RELOCATION BENEFITS TO TENANT-OCCUPANTS Residential tenants who have established their residency in the displacement dwelling at least 90 days prior to the first written offer by the City, for the property acquisition, will be eligible to receive a Rental Assistance Payment ( RAP ), in addition to a payment for moving expenses. Payment to residential tenants are determined on the basis of their current rent, their ability to pay, market rent of a comparable replacement dwelling and actual rent of the replacement unit plus any estimated cost increase for utilities. Except in the case of Last Resort Housing situations and, pursuant to California Relocation Law, any RAP is limited to a maximum of $5,250. A tenant who has established their residency in the displacement dwelling less than 90 days prior to the first written offer by the City, for the property acquisition, will only be eligible for a moving expense payment unless they qualify under Last Resort Housing. Such assistance is authorized when comparable replacement housing is not available at rental rates within the tenant s 15

19 financial means. A tenant who has occupied the displacement property less than 90 days prior to the City s original written purchase offer to the property owner is eligible for Last Resort Housing is based solely on income qualification. Sample Calculation of Rental Assistance Payment Select Lesser Of: 1. Old Rent $750 Old Rent plus utilities OR 2. Ability to Pay $650 30% of gross household income $650 Yields Base Rent Subtract Base Rent From The Lesser Of: 4. Comparable Rent $800 Replacement site plus utilities OR 5. Actual Rent Paid $750 Actual new rent plus utilities $750 Yields New Rent Factor Rental Assistance Payment 6. Monthly Need $100 Rent Factor ($750) minus Base Rent ($650) Payment $4,200 Monthly Need multiplied by 42 months Tenants may choose to use their RAP for a down payment allowance and/or nonrecurring closing costs when electing to purchase a replacement home. LAST RESORT HOUSING California Relocation Assistance Law (Government Code 7260), California Code of Regulations, Title 25, Chapter 6 contains policy and procedures for implementing a Last Resort Housing Program. This program is authorized by statute if affordable replacement housing cannot be found within the basic statutory relocation amount of $5,250 for tenants and $22,500 for owner occupants. Based on the results of our survey, all of the households in the Project area will likely qualify for Last Resort Housing. The following is the recommended course of action for the Project displacees and a summary of their entitlements for replacement housing: Provide additional rental assistance and replacement housing payments above the statutory limits of $5,250 and $22,500, respectively, with payments being made toward the rent differential or down payment to purchase a replacement site. RELOCATION BENEFITS TO DISPLACED BUSINESSES Business displacees are entitled to receive advisory and financial assistance to relocate to a replacement site. A displaced business may be eligible for actual reasonable moving and related expenses and up to $10,000 for Reestablishment Expenses. These costs can be summarized as follows: 16

20 BUSINESS MOVING EXPENSES Transportation costs to move personal property up to 50 miles from the displacement site Packing, crating, unpacking, and uncrating of the personal property Disconnecting, dismantling, removing, reassembling, and reinstalling relocated machinery, equipment, other personal property, and certain substitute personal property. This includes modifications to the personal property necessary to adapt it to the replacement site, including connection charges imposed by public utilities for starting utility service. Reasonable storage expenses as deemed necessary by the City for a period not to exceed twelve months. Storage expenses must be preapproved. Insurance for the replacement value of personal property in connection with the move and necessary storage Any license, permit, or certification required for the operation at the replacement site. However, the payment shall be based on the remaining useful life of the existing license(s), permit(s) or certification(s) of the business. The replacement value of the property lost, stolen, or damaged in the moving process, where insurance did not cover the loss Professional services necessary for planning the move, moving the personal property, or installation of relocated personal property at the replacement site. Professional services must be preapproved. Re-lettering signs and replacing stationery on hand at the time of the displacement that is made obsolete as a result of the move Actual direct loss of tangible personal property incurred as a result of moving. Payment will be based on the lesser of the items fair market value less sale proceeds, or the cost to move the item within a 50 mile radius. The reasonable cost incurred in attempting to sell an item that will not be relocated Purchase of substitute personal property, when approved by the City Searching cost for a replacement location not to exceed $1,000 REESTABLISHMENT EXPENSES Reestablishment expenses not to exceed $10,000 which shall include the following: Repairs or improvements to the replacement real property as required by law, code or ordinance Modifications to replacement property to accommodate the business operation or make the replacement structure suitable for conducting business Construction and installation costs for exterior signage to advertise the business Provision of utilities from the right of way to the improvements on the replacement site Redecoration or replacement of soiled or worn surfaces at the replacement site License and permit fees when not paid as part of moving expenses Feasibility surveys, soil testing and marketing studies Advertisement of replacement location Professional services in connection with the purchase or lease of a replacement 17

21 site Estimate increased costs of operation during the first two years V. ADMINISTRATIVE PROVISIONS NOTICES Any official notice that the City is required to provide a Project occupant shall be personally delivered or sent by certified or registered first-class mail, return receipt requested. Each notice will indicate the name and telephone number of a person who may be contacted for answers to questions or additional assistance. The four principal notices are: 1. General Information Notice (See Exhibits C and D) 2. Informational Brochure (See Exhibits E and F) 3. Notice of Eligibility (See Exhibits G, H and I) Day Notice To Vacate (See Exhibit J) The General Information Notice and Relocation Brochure is intended to provide potential displacees with a description of the City s relocation program, eligibility criteria, information regarding potential financial assistance, and appeal rights. The Notice of Relocation Eligibility will contain a determination of eligibility for relocation assistance and a description or itemization of potential entitlement benefits. No lawful occupant affected by the Project will be required to move without having received at least 90 days advance written notice of the earliest date by which the move will be necessary. The 90-Day Notice will either state a specific date or state that the occupant will receive a further notice indicating at least 60 days in advance, the specific date required to move. A 90-Day Notice will not be issued to any residential displacee without first being given information regarding comparable housing. LANGUAGE ASSISTANCE If necessary, language assistance will be available for occupants who do not understand or speak English. RELOCATION APPEAL PROCESS A person, who disagrees with a determination as to eligibility for benefits, a payment amount, failure to provide comparable replacement site referrals, or the City s property management practices, may file a request for a review and/or appeal in accordance with Section 6150 of the California Code of Regulations, Title 25, Chapter 6 and the City s Grievance Procedures. See Section VI, Exhibit L for written policy and procedures. 18

22 EVICTION POLICY The City recognizes that eviction is permissible only as a last resort. Eviction will only take place in cases of illegal occupancy, nonpayment of rent, serious or repeated violations of material terms of the rental agreement, a dangerous or illegal act in the unit, or if the occupants refuse all reasonable offers to comparable housing. In all cases, relocation records must be documented to reflect the specific circumstances surrounding the eviction. The City pledges that an eviction will not be undertaken for the purpose of evading its obligation to make payments under its Relocation Assistance Program or other assistance to which a Displaced Person may otherwise be entitled. PROJECTED DATES OF DISPLACEMENT Although no displacee will be required to vacate without a minimum of a 90 day written notice, an occupant in the Project area may choose to vacate prior to the issuance of a 90-Day Notice once they receive their Notice of Eligibility and are assured that they will receive relocation assistance. The projected dates of displacement are between December 2014 and February ESTIMATED RELOCATION COSTS The relocation budget estimate is based on the data obtained through occupant interviews, the current Project scope, the experience and judgment of Paragon staff and the requirements and limits of the City s relocation program. The relocation budget estimate does not include any payment for property acquisition, loss of business goodwill, leasehold bonus value, or professional fees necessary to implement the Relocation Assistance Program. The City pledges to appropriate, on a timely basis, the funds necessary to ensure the successful completion of the Project, in accordance with applicable relocation laws. THE ESTIMATED RELOCATION COST FOR THE PROJECT IS: $ 2,608,804 $ 260,880 (10 % Contingency) ESTIMATED TOTAL $ 2,869,684 (Rounded) 19

23 EXHIBIT A: Interview Form Residential 20

24 EXHIBIT B: Interview Form - Non Residential Project Name: Funding Source Name of Business: Business Address: Contact Person: Phone Number: Alternate Phone Number: Mailing Address: Type of Business: Corporation Sole Proprietorship Partnership Nonprofit Primary Language: Gross Sales: $ Net Income: $ Own site Lease site Lease Term & Options: Monthly Payment: Deposit: Move In Date: Other businesses under same entity: Description of Business Operation: Number of Employees: Employees with Disabilities Requiring Accommodations at Replacement Site Y / N 21

25 Current Size & Physical Characteristics: Building Size: Lot or Yard Size: Current Zoning: Existing Building, Lot or Site Features: Replacement Site Preferences: Building Size: Lot or Yard Size: Purchase or Lease Desired Location(s): Desired Building, Lot or Site Features: Permits or Licenses Required: 22

26 Third Party Issues: Are there any sub-lessees, vendors or contractors operating on site? Y / N If yes to any of the above, please provide name & phone number(s). Are there any known liens, judgments or loan obligations on the business or personal property? Y / N Planning Issues: Specialists Needed? (move planning, equipment reinstallation, calibration) Y / N Anticipated Difficulty in Locating a Replacement Property: Estimated Time to Complete Replacement Site Plans, Improvements and Move: Anticipated Need for Advance Relocation Payments: Y / N Resolution of F&E Ownership: Comments: Relocation Consultant: Date of Interview: 23

27 EXHIBIT C: General Information Notice - Residential Date Name Address Santa Ana, CA SUBJECT: GENERAL INFORMATION NOTICE Residential Occupant Dear Occupant: As part of the Bristol Street Widening Project, between Washington Avenue and 17 th Streets, the City of Santa Ana ( City ) seeks to acquire the property located at (address) in Santa Ana. If the City acquires the property and you are displaced for the project, you may be eligible for relocation assistance in accordance with the California Relocation Assistance Law, Government Code Section 7260, et seq., ( Law ), and the Relocation Assistance and Real Property Acquisition Guidelines (California Code of Regulations, Title 25, Division 1, Chapter 6, Section 6000 et seq, ( Guidelines ). The following is information about potential relocation services and payments: ADVISORY ASSISTANCE includes providing replacement property referrals, preparing and filing payment claims, coordinating moving options, and other various services. MOVING EXPENSES may be paid to those who are required to relocate personal property from the displacement property acquired by the City. 180-DAY RESIDENTIAL OWNER-OCCUPANTS may be eligible for a replacement housing payment, increased mortgage interest cost payment and certain closing costs associated with the purchase of a replacement home, provided the occupant has owned and occupied their home for at least 180 days immediately prior to the City s first written offer to purchase the displacement dwelling. A decent, safe and sanitary replacement dwelling must be purchased within one year of receiving final payment for the acquired property or at least one comparable replacement property was made available, whichever occurrence is later. RESIDENTIAL OWNER-OCCUPANTS who have owned and occupied their homes for less than 180 days but more than 90 days prior to the City s first written offer to purchase the displacement dwelling, may be eligible for increased rent payments or a payment toward the purchase of their own home. A decent, safe and sanitary replacement dwelling must be purchased or rented within one year of receiving final payment for the acquired property or at least one comparable replacement property was made available, whichever occurrence is later. RESIDENTIAL TENANTS who have occupied the displacement home for at least 90 days immediately prior to the City s first written offer to purchase the displacement dwelling may be eligible for increased rental cost payments. A decent, safe and sanitary replacement dwelling must be rented or purchased within one year of moving from the displacement dwelling. WHEN PAYMENTS CAN BE MADE No relocation payment can be made until the City has made a written offer to acquire the real property where the person lives or operates his/her business, farm or nonprofit organization. 24

28 In addition, the person who is lawfully occupying real property required for the project will not be asked to move without first being given at least 90 days advance written notice. No residential occupant, eligible for relocation payments, will be required to move unless adequate decent, safe and sanitary replacement housing, which is open to all persons regardless of race, color, religion, sex, or national origin, has been made available to them by the City or they have secured such housing for themselves. APPEALS Any person may appeal to the City if that person believes that the City has failed to properly determine the person s eligibility or the amount of payment authorized by the Law. You have the right to be represented by legal counsel, but it is not required. If you still believe a proper determination has not been made, you may seek judicial review. THIS NOTICE DOES NOT REQUIRE YOU TO MOVE AT THIS TIME This is not a notice to vacate and does not establish eligibility for relocation payments or other relocation assistance. If the City decides not to purchase the property, you will be notified in writing. If you move before receiving a Notice of Eligibility, you may not be entitled to relocation assistance. You must continue to pay your rent and to comply with all terms and conditions of your lease or rental agreement with your landlord. If you are evicted, you may not qualify for relocation assistance. NONDISCRIMINATION All services and/or benefits to be derived from any right of way activity will be administered without regard to race, color, national origin or sex in compliance with Title VI of the 1964 Civil Rights Act. The City has retained Paragon Partners, Ltd. ( Paragon ) to implement its relocation program. Paragon will contact you to assess your relocation needs and will provide assistance throughout the relocation process. If you have any questions please contact (name) of Paragon at (714) Sincerely, Jason Gabriel Principal Engineer 25