§ 20.84.400. Replacement housing payment for 180-day homeowner-occupants.

A.

Eligibility. A Displaced Person is eligible for the replacement housing payment for a 180-day homeowner-occupant if the Person:

1.

Has actually owned and occupied the displacement Dwelling for not less than the 180 days immediately prior to the Initiation of Negotiations; and

2.

Purchases and occupies a Decent, Safe, and Sanitary replacement Dwelling within one year after the later of the following dates (except that the Department may extend such one year period for good cause):

a.

The date the Displaced Person receives final payment for the displacement Dwelling or, in the case of condemnation, the date the required amount of just compensation is deposited in the court, or

b.

The date the obligation to make a Comparable Replacement Dwelling available is met.

B.

Amount of payment. The replacement housing payment for an eligible 180-day homeowner-occupant may not exceed $22,500. The payment is limited to the amount necessary to relocate to a Comparable Replacement Dwelling within one year from the date the displaced homeowner-occupant is paid for the displacement Dwelling, or the date a Comparable Replacement Dwelling is made available to such Person, whichever is later. The payment shall be the sum of:

1.

The amount by which the cost of a replacement Dwelling exceeds the acquisition cost of the displacement Dwelling (price differential), determined in accordance with subsection C of this section; and

2.

The increased interest costs and other debt service costs that are incurred in connection with the Mortgage(s) or other purchase loan on the replacement Dwelling, determined in accordance with subsection D of this section; and

3.

The necessary and reasonable expenses incidental to the purchase of the replacement Dwelling, determined in accordance with subsection E of this section.

C.

Price differential.

1.

Basic computation. The price differential to be paid under subsection B1 of this section is the amount that must be added to the acquisition cost of the displacement Dwelling and site to provide a total amount equal to the lesser of:

a.

The reasonable cost of a Comparable Replacement Dwelling determined in accordance with Section 20.84.420; or

b.

The purchase price of the Decent, Safe, and Sanitary replacement Dwelling actually purchased and occupied by the Displaced Person.

2.

Owner retention of displacement Dwelling. If the Owner retains ownership of his or her Dwelling, moves it from the displacement site, and reoccupies it on a replacement site, the purchase price of the replacement Dwelling shall be the sum of:

a.

The cost of moving and restoring the Dwelling to a condition comparable to that prior to the move; and

b.

The cost of making the unit a Decent, Safe, and Sanitary replacement Dwelling; and

c.

The current market value for residential use of the replacement site, unless the claimant rented the displacement site and there is a reasonable opportunity for the claimant to rent a suitable replacement site; and

d.

The retention value of the Dwelling, if such retention value is reflected in the "acquisition cost" used when computing the replacement housing payment.

D.

Increased Mortgage interest costs. The Department shall determine the factors to be used in computing the amount to be paid to a Displaced Person under subsection B2 of this section. The payment for increased Mortgage interest cost shall be the amount that will reduce the balance on a new purchase loan or Mortgage to an amount that could be amortized with the same monthly payment for principal and interest as that for the Mortgage(s) on the displacement Dwelling. In addition, payments shall include other debt service costs, if not paid as incidental costs, and shall be based only on bona fide Mortgages that were valid liens on the displacement Dwelling for at least 180 days prior to the Initiation of Negotiations. Subsections D1 through D5 of this section apply to the computation of the increased Mortgage interest cost payment, which payment shall be contingent upon a Mortgage or other purchase loan being placed on the replacement Dwelling.

1.

The payment shall be based on the unpaid Mortgage balance(s) on the displacement Dwelling; however, in the event the Person obtains a smaller Mortgage or purchase loan than the Mortgage balance(s) computed in the buydown determination, the payment will be prorated and reduced accordingly. In the case of a home equity loan the unpaid balance is the balance that existed 180 days prior to the Initiation of Negotiations or the balance on the date of Acquisition, whichever is less.

2.

The payment shall be based on the remaining term of the Mortgage(s) on the displacement Dwelling or the term of the new Mortgage or purchase loan, whichever is shorter.

3.

The interest rate on the new Mortgage or purchase loan used in determining the amount of the payment shall not exceed the prevailing fixed interest rate for conventional Mortgages currently charged by Mortgage lending institutions in the area in which the replacement Dwelling is located.

4.

Purchaser's points and loan origination or assumption fees, but not seller's points, shall be paid to the extent:

a.

They are not paid as incidental expenses;

b.

They do not exceed rates normal to similar real estate transactions in the area;

c.

The Department determines them to be necessary; and

d.

The computation of such points and fees is based on the unpaid Mortgage balance on the displacement Dwelling, less the amount determined for the reduction of such Mortgage balance under this section.

5.

The Displaced Person shall be advised of the approximate amount of this payment and the conditions that must be met to receive the payment as soon as the facts relative to the Person's current Mortgage(s) are known. The payment shall be made available at or near the time of closing on the replacement Dwelling in order to reduce the new Mortgage or purchase loan as intended.

E.

Incidental expenses. The incidental expenses to be paid under subsection B3 of this section or for downpayment assistance under Section 20.84.410 C are those necessary and reasonable costs actually incurred by the Displaced Person incident to the purchase of a replacement Dwelling, and customarily paid by the buyer, including the following costs, but limited to the lesser of the amount actually paid or the amount that would have been paid based on the cost of a Comparable Replacement Dwelling:

1.

Legal, closing, and related costs, including those for title search, preparing conveyance instruments, notary fees, preparing surveys and plats, and recording fees;

2.

Lender, FHA, or VA application and appraisal fees;

3.

Loan origination or assumption fees that do not represent prepaid interest;

4.

Professional home inspection, certification of structural soundness and termite inspection;

5.

Credit report;

6.

Owner's and Mortgagee's evidence of title, e.g., title insurance, not to exceed the costs for a Comparable Replacement Dwelling;

7.

Escrow agent's fee;

8.

State revenue or documentary stamps, sales or transfer taxes (not to exceed the costs for a Comparable Replacement Dwelling); and

9.

Such other costs as the Department determines to be incidental to the purchase.

F.

Rental assistance payment for 180-day homeowner. A 180-day homeowner-occupant who could be eligible for a replacement housing payment under subsection A of this section but elects to rent a replacement Dwelling, is eligible for a rental assistance payment not to exceed $5,250, computed and disbursed in accordance with Section 20.84.410.

(Ord. 121998 , § 20, 2005.)