Presentation on theme: "Using CDBG for Demolition Projects November 8, 2012."— Presentation transcript:
Using CDBG for Demolition Projects November 8, 2012
Presenter Betsy Giffin Section Supervisor, Training & Technical Assistance Office of Community Development 77 South High Street Columbus, Ohio 43215 614.466.8216 F 614.752.4575 Betsy.Giffin@development.ohio.gov
2012 Community Development Demolition Projects 21 Grantees $775,800 CDBG & Other Funds $13,900 Average Cost
Issues to be Aware of Federal Acquisition (URA) Section 104(d) of the Community Development Act (1:1 Replacement) Tenants & Relocation Federal or State Prevailing Wage Liens Change in Use or Property Disposition
Do You Plan to Acquire Property? If yes … Uniform Relocation Act (URA) applies –49 CFR Part 24 is the government-wide regulation that implements the URA.49 CFR Part 24
For Demolition, if Governments Acquire Property They Usually Use One of Two Methods Voluntary Property is dilapidated and blighting the neighborhood Property owner not willing or unable to make repairs You have a willing seller Selling price is fair and reasonable
For Demolition, if Governments Acquire Property They Usually Use One of Two Methods Involuntary Property is dilapidated and blighting the neighborhood Property owner not willing or unable to make repairs Specific property needed for another purpose Property owner is not willing to sell
How to Resource – HUD Handbook 1378 On-line http://portal.hud.gov/h udportal/HUD?src=/pr ogram_offices/comm_ planning/library/reloca tion/policyandguidanc e/handbook1378http://portal.hud.gov/h udportal/HUD?src=/pr ogram_offices/comm_ planning/library/reloca tion/policyandguidanc e/handbook1378
Project Planning Hints Involuntary acquisition will take much longer time than voluntary acquisition and will cost more because of additional requirements like appraisals
Section 104(d) aka Barney-Frank Amendment Each Grantee has an Anti-Displacement Plan and Certification –Replacement of Occupiable Housing –Extra Relocation Assistance for LMI –24 CFR 570.488(c)
A Housing Unit Demolished Must be Replaced if: Occupied, regardless of its condition and rents at or below FMR Currently vacant but occupied within the past 3 months regardless of its condition Vacant for more than 3 months and suitable for rehabilitation
Housing Does Not Need to Be Replaced if Property that has a value of less than $10,000, Has been vacant for at least 3 months, and has been documented to be dilapidated will be considered not suitable for rehabilitation.
Tenants and Relocation Tenants required to leave a property because of sale or intent to sell are eligible for relocation services and cost.
Federal Prevailing Wage What do you plan to do with the property after unit is demolished?
Does Federal Prevailing Wage Apply? Demolition with no construction on-site contemplated – NO (regardless of # units or cost) Demolition done under separate contract by grantee before transfer to developer – NO (regardless of # units or cost) Demolition contracted for by the same entity (developer, grantee contractor, etc.) doing subsequent construction and will be carried out while contracting entity controls site - YES
Does State Prevailing Wage Apply? If demolishing 5, 6, or 7 units - YES
Liens Liens are required to be placed on real property which is acquired and/or improved in whole or in part using CDBG funds in excess of $25,000. Demolition is considered an improvement.
Change in Use or Property Disposition for Property Acquired an/or Improved > $25,000 Recipient may not change the use or planned use of property (including the beneficiaries of such use) unless affected citizens are given reasonable notice of, and opportunity to comment on, any proposed change, and either:
Change in Use or Property Disposition for Property Acquired an/or Improved > $25,000 The new use of such property qualifies as meeting one of the national objectives and is not a building for the general conduct of government; or the following requirements are met:
Change in Use or Property Disposition for Property Acquired an/or Improved > $25,000 All parties agree to a new use which does not qualify as meeting a national objective The CDBG program is reimbursed the current fair market value of the property.