1. H.C. Peck & Associates, Inc. A National Land Service Company Difficult Relocations: Can you handle them? (Of course you can! ) Difficult Relocations: Can you handle them? (Of course you can! ) Lee Satterfield Hamre, SR/WA, R/W-RAC President – H.C. Peck & Associates, Inc. IRWA/AI Federal Agency Update January 14, 2009

2. H.C. Peck & Associates, Inc. A National Land Service Company Or: How not to end up like this… …right before going to ad.

3. H.C. Peck & Associates, Inc. A National Land Service Company Premise: There are many RIGHT answers, not just one Some solutions are better than others Some might get you in trouble Remember, in Relocation, IT DEPENDS

4. H.C. Peck & Associates, Inc. A National Land Service Company Project Federally funded transit project Uniform Act Monetary caps apply Limited local matching funds Media very interested in “ED abuse” Mostly low income displacees (Cases presented may have been altered)

5. H.C. Peck & Associates, Inc. A National Land Service Company Scenario #1 THE LAYOFF

6. H.C. Peck & Associates, Inc. A National Land Service Company Scenario #1 FACTS: Family of 3, tenants in 3 BR home Mother and father both work Monthly income at ION - $3,000 Financial means at ION - $1,000 Comp rent & utilities $1,250 RHP based on $250/mo or $10,500

7. H.C. Peck & Associates, Inc. A National Land Service Company Scenario #1 WHAT HAPPENEND: Dad laid off six weeks after ION and 90 day notice Bad job market – even day labor limited Mom’s monthly income - $1,000 New financial means - $300 Comp rent & utilities - $1,250

8. H.C. Peck & Associates, Inc. A National Land Service Company Scenario #1 PROBLEM: Financial means at ION - $1,000 New financial means - $300 Comp rent & utilities - $1,250 Spend to get minimum - $1,000 Family can’t qualify on rental application Regs do not allow re-computation

9. H.C. Peck & Associates, Inc. A National Land Service Company Scenario #1 SOLUTIONS?

10. H.C. Peck & Associates, Inc. A National Land Service Company Scenario #1 SUGGESTED SOLUTIONS: Federal waiver under 49 CFR Section 2.7 Family can claim RHP at new “spend to get” limit Spend to get limit / financial means - $300 Must lease and occupy DS&S dwelling OR New computation under Housing of Last Resort (Windfall?)

11. H.C. Peck & Associates, Inc. A National Land Service Company Scenario #2 THE UNEXPECTED

12. H.C. Peck & Associates, Inc. A National Land Service Company Scenario #2 FACTS: Family of 3, tenants in 2 BR home Ailing grandmother on couch 2 adult grandsons, each with bedroom Grandsons work different shifts Rent to rent – not low income Permission granted to base RHP on 3 bedroom DS&S comparable

13. H.C. Peck & Associates, Inc. A National Land Service Company Scenario #2 WHAT HAPPENEND: Same day relocation eligibility package to be delivered, grandson found dead in bedroom

14. H.C. Peck & Associates, Inc. A National Land Service Company Scenario #2 PROBLEM: Everything has changed – or has it? Can the eligibility package be delivered as is anyway?

15. H.C. Peck & Associates, Inc. A National Land Service Company Scenario #2 SOLUTIONS? Hint: Problems with going forward with package: New financial means not enough for comp New family count not enough for 3 BR

16. H.C. Peck & Associates, Inc. A National Land Service Company Scenario #2 SUGGESTED SOLUTIONS: Re-compute with chosen 3 bedroom comparable based on new financial means OR Find 2 bedroom comparable and re- compute based on new financial means AND Give family more time to grieve

17. H.C. Peck & Associates, Inc. A National Land Service Company Scenario #3 THE UNCOOPERATIVE

18. H.C. Peck & Associates, Inc. A National Land Service Company Scenario #3 FACTS: Acquisition of 3 bedroom home Owner uncooperative Negotiations fail - possession sought through court Only information is appraisal – no lease available

19. H.C. Peck & Associates, Inc. A National Land Service Company Scenario #3 WHAT HAPPENEND: Access to property and any other information is denied Tenants are instructed not to respond to site visits or certified mail requesting info Appointments set up with tenants are then cancel or no-shows

20. H.C. Peck & Associates, Inc. A National Land Service Company Scenario #3 PROBLEM: Project is on a tight schedule… How can we get the 90 day period started with no cooperation?

21. H.C. Peck & Associates, Inc. A National Land Service Company Scenario #3 SOLUTIONS?

22. H.C. Peck & Associates, Inc. A National Land Service Company Scenario #3 SUGGESTED SOLUTIONS: Wait until court awards possession to get better access to tenants OR Compute RAP for “family” of tenants using limited information available: Use subject’s market rent – rent to rent Send notice of eligibility / 90 day notice to each know occupant (and reference ALL occupants) Have caveats (the need to self-certify to lawful presence in U.S., etc.) Invite appeal

23. H.C. Peck & Associates, Inc. A National Land Service Company Scenario #4 THE DOWNPAYMENT CONVERSION Or: “OOPS”

24. H.C. Peck & Associates, Inc. A National Land Service Company Scenario #4 FACTS: Displacee (tenant) is relocated from subject apartment Qualifies for $13,650 RHP under HLR Rent DS&S replacement dwelling Receives 14 month partial payment per Agency policy at lease and occupancy

25. H.C. Peck & Associates, Inc. A National Land Service Company Scenario #4 WHAT HAPPENEND: Displacee decides to convert payment to down payment assistance 3 months after move.

26. H.C. Peck & Associates, Inc. A National Land Service Company Scenario #4 PROBLEM: Displacee should have only spent 3 months of differential. Instead, she spent it ALL. She has to come up with 11 months of RAP for closing before being eligible to claim remaining 38 months of differential toward purchase.

27. H.C. Peck & Associates, Inc. A National Land Service Company Scenario #4 SOLUTIONS?

28. H.C. Peck & Associates, Inc. A National Land Service Company Scenario #4 SUGGESTED SOLUTIONS: Without the 11 months of RAP, she cannot convert to down payment assistance. Advise tenants of this possibility before the RHP is distributed. If you are lucky, the property being purchased is a mobile home Claim the mobile home lot lease differential and suggest the tenant apply that to the purchase price. This may bring them close to amount needed.

29. H.C. Peck & Associates, Inc. A National Land Service Company CONCLUSION: Try to identify problems early in planning Use your regs (and your colleagues) Be creative, but stick with the Purpose: 49 CFR Section 24.1 Get federal buy-off if needed (and if possible) Document, Document, Document!!!!!!

30. H.C. Peck & Associates, Inc. A National Land Service Company Questions and Comments H. C. Peck & Associates, Inc. 4001 Fox Street Denver, Colorado 80216 (303) 623-6112 (303) 623-6301 Fax www.hcpeck.com