§ 20.84.420. Additional rules governing replacement housing payments.

A.

Determining cost of Comparable Replacement Dwelling. The upper limit of a replacement housing payment shall be based on the cost of a Comparable Replacement Dwelling.

1.

If available, at least three Comparable Replacement Dwellings shall be examined and the payment computed on the basis of the Dwelling most nearly representative of, and equal to, or better than, the displacement Dwelling. An adjustment shall be made to the asking price of any Dwelling, to the extent justified by local market data. An obviously overpriced Dwelling may be ignored.

2.

If the site of the Comparable Replacement Dwelling lacks a major exterior attribute of the displacement Dwelling Site, (e.g., the site is significantly smaller or does not contain a swimming pool), the value of such attribute shall be subtracted from the acquisition cost of the displacement Dwelling for purposes of computing the replacement housing payment.

3.

If the Acquisition of a portion of a typical residential property causes the displacement of the Owner from the Dwelling and the remainder is a buildable residential lot, the Department may offer to purchase the entire property. If the Owner refuses to sell the remainder to the Department, the market value of the remainder may be added to the acquisition cost of the displacement Dwelling for purposes of computing the replacement housing payment.

4.

To the extent feasible, Comparable Replacement Dwellings shall be selected from the neighborhood in which the displacement Dwelling was located or, if that is not possible, in nearby or similar neighborhoods where housing costs are generally the same or higher.

5.

Multiple occupants of one displacement Dwelling. If two or more occupants of the displacement Dwelling move to separate replacement Dwellings, each occupant is entitled to a reasonable prorated share, determined by the Department, of any relocation payments that would have been made if the occupants moved together to a Comparable Replacement Dwelling. However, if the Department determines that two or more occupants maintained separate households within the same Dwelling, such occupants have separate entitlements to relocation payments.

6.

Deductions from relocation payments. A Department shall deduct the amount of any advance relocation payment from the relocation payment(s) to which a Displaced Person is otherwise entitled. Where such a deduction would not prevent the Displaced Person from obtaining a Comparable Replacement Dwelling, a Department may deduct from relocation payments any rent that the Displaced Person owes the Department. The Department shall not withhold any part of a relocation payment to a Displaced Person to satisfy an obligation to any other creditor.

7.

Mixed-use and multifamily properties. If the Displacement Dwelling was part of a property that contained another Dwelling unit and/or space used for non-residential purposes, and/or is located on a lot larger than typical for residential purposes, only that portion of the acquisition payment that is actually attributable to the displacement Dwelling shall be considered the acquisition cost when computing the replacement housing payment.

B.

Inspection of replacement Dwelling. Before making a replacement housing payment or releasing the initial payment from escrow, the Department or its designated representative shall inspect the replacement Dwelling and determine whether it is a Decent, Safe, and Sanitary Dwelling.

C.

Purchase of replacement Dwelling. A Displaced Person is considered to have met the requirement to purchase a replacement Dwelling, if the Person:

1.

Purchases a Dwelling;

2.

Purchases and rehabilitates a substandard Dwelling;

3.

Relocates a Dwelling which he or she owns or purchases;

4.

Constructs a Dwelling on a site he or she owns or purchases;

5.

Contracts for the purchase or construction of a Dwelling on a site provided by a builder or on a site the Person owns or purchases; or

6.

Currently owns a previously purchased Dwelling and site, valuation of which shall be on the basis of current market value.

D.

Occupancy requirements for displacement or replacement Dwelling. No Person shall be denied eligibility for a replacement housing payment solely because the Person is unable to meet the occupancy requirements set forth in this ordinance for a reason beyond his or her control, including:

1.

A disaster, an emergency, or an imminent threat to the public health or welfare, as determined by the President, a federal, state or local agency authorized to make such a determination, or the Department; or

2.

Another reason, such as a delay in the construction of the replacement Dwelling, military duty, or hospital stay, as determined by the Department.

E.

Conversion of payment. A Displaced Person who initially rents a replacement Dwelling and receives a rental assistance payment under Section 20.84.410 B is eligible to receive a payment under Section 20.84.400 or Section 20.84.410 C if he or she meets the eligibility criteria for such payments, including purchase and occupancy within the prescribed 1-year period. Any portion of the rental assistance payment that has been disbursed shall be deducted from the payment computed under either of those sections.

F.

Payment after death. A replacement housing payment is personal to the Displaced Person and upon his or her death the undisbursed portion of any such payment shall not be paid to the heirs or assigns, except that:

1.

The amount attributable to the Displaced Person's period of actual occupancy of the replacement housing shall be paid.

2.

Any remaining payment shall be disbursed to the remaining family members of the displaced household who continue to occupy the replacement Dwelling in any case in which a member of a displaced family dies.

3.

Any portion of a replacement housing payment necessary to satisfy the legal obligation of an estate in connection with the selection of a replacement Dwelling by or on behalf of a deceased Person shall be disbursed to the estate.

G.

Insurance proceeds. To the extent necessary to avoid duplicate compensation, the amount of any insurance proceeds received by a Person in connection with a loss to the displacement Dwelling due to a catastrophic occurrence (fire, flood, etc.) shall be included in the acquisition cost of the displacement Dwelling when computing the price differential.

(Ord. 121998 , § 22, 2005.)