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R-323 RESOLUTION NO. 323 (R.A.S.) RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SANTA MONICA ADOPTING RELOCATION RULES AND REGULATIONS FOR IMPLEMENTATION OF THE CALIFORNIA RELOCATION ASSiSTANCE LAW WHEREAS, the California Relocation Assistance Law (Government Code, Section 7260 et seq.) requires a uniform pol icy for the fair and equitable treatment of persons displaced by programs of public entities; and WHEREAS, Section 7267.8 of the California Government Code requires all agencies to adopt rules and regulations to implement payments and to administer relocation assistance pursuant to the California Relocation Assistance Law; NOW, THEREFORE, BE IT RESOLVED BY THE REDEVELOPMENT AGENCY: I, The Relocation Rules and Regulations for implemen- tation of the California Assistance Law attached hereto as Exhibit "A" are hereby adopted: 2. Any procedure not expressly set forth in said Rules and Regulations, but deemed necessary and convenient to carry out any of the purposes of the California Relocation Assistance Law or the purposes of the State Relocation Guidelines of the Commission of Housing and Community Development adopted October 17, 1973, or the purposes of these Rules and Regulations is hereby authorized. ADOPTED AND APPROVED THIS ~ DAY OF AUGUST , 1974. ~ 11~ ~ Clo Hoover Chairman I hereby certify that the foregoing resolution was duly adopted by the Redevelopment Agency of the City of Santa Monica, California, at a special meeting thereof held on the ~day of August 1974, by the following roll call vote: AYES: NOES: ABSENT: MEMBERS: Hoover, Lawson, McCloskey, Swink, van den Steenhoven MEMBERS: None MEMBERS: Judson Approved as to legal form and adequacy. SANTA MONICA REDEVELOPMENT AGENCY SANTA MONICA, CALIFORNIA RELOCATION RULES AND REGULATIONS FOR IMPLEMENTATION OF THE CALIFORNIA RELOCATION ASSISTANCE LAW Adopted: August 6, 1974 EXHIBIT "All I. II. [5 200] [5 100] A. [5 101] [5 102] [5 103] B. C. A. [5 201] [5 202] [5 203] [5 204] B. C. D. E. [5 205] [5 206] [5 207] F. G. H. [5 208] I. [5 209] [5 210] [5 211] Ui 212] [5 213] [5 214] [5 215] [5 216] J. K. L. M. N. O. P. TABLE OF CONTENTS GENERAL ----------------------------- Purpose ------------------------ Authority ---------------------- Extent of Relocation Payments -- DEFINITIONS ------------------------- Acquisition -------------------- Average Annual Net Earnings ---- Business ----------------------- Comparable Replacement Dwelling ----------------------- Condominium -------------------- Conventional Loan -------------- Date of Initiation of Negotiations ------------------- Decent, Safe, and Sanitary Dwelling ----------------------- Displaced Business ------------- Displaced Person --------------- Dwelling ----------------------- Family ------------------------- Incidental Expenses ------------ Mobile Home ------------------- Mortgage ----------------------- Moving Expenses ---------------- PAGE 1 1 1 1 2 2 2 2 3 3 4 4 4 4 4 5 5 5 5 5 6 III. [~ 300] IV. Q. u;; 217] [5 218] [5 219] [5 220] [5 221] [5 222] [5 223] R. S. T. U. V. W. A. [5 301] B. u; 302] [5 303] [5 304] C. D. E. [5 305] (1; 400] A. u; 401] 1. 2. B. [5 405] C. [5 406] PAGE Nonprofit Organization ------------ 7 Owner ----------------------------- 7 Person ---------------------------- 7 Personal Property ----------------- 7 Prepaid Expenses ------------------ 8 Public Use ------------------------ 8 Purchases (Re Replacement Housing) -------------------------- 8 RELOCATION ADVISORY ASSISTANCE --------- 9 Persons and Businesses to Whom Relocation Advisory Assistance Shall be Provided ----------------- 9 Neighborhood Relocation Office 9 Relocation Advisory Assistance 9 Coordination of Relocation Assistance Program ---------------- 10 Contracting For Relocation Services -------------------------- 10 RELOCATION PAYMENTS TO DISPLACED PERSONS -------------------------------- 11 Actual Reasonable Expenses in Moving ---------------------------- 11 [5 403] [5 404] Allowable Moving Expenses ---- 11 Nonallowable Moving Expenses and Losses ------------------- 12 Payments in Lieu of Actual Reasonable Expenses in Moving 13 Replacement Housing Payments ------ 13 - ii - PAGE 1. [5 407] Replacement Housing Pay- ments For Displaced Owner- Occupants -------------------- 13 a. [5 408J u; 409 J Amount and Computation of Replacement Housing Payment For Displaced Owner-Occupants --------- 14 Eligibility ------------- 13 b. (1) [5 410 J Differential Payments ----------- 14 (2) ( 3) [5 411] [5 412] Interest Payment --- 15 Incidental Expense Payment ------------ 15 c. [5 413] Displaced Persons Who Are Joint Owner-Occupants of a Dwelling ----------- 16 2. [5 414] Replacement Housing Payments For Displaced Tenants and Others ----------------------- 16 a. [5 415] Eligibility ------------- 16 b. [5 416] Amount and Computation of Replacement Housing Pay- ment For Displaced Tenants and Others ------ 16 c. [5 417] Ren tal Assistance Payment ----------------- 17 d. [5 418] Purchase Assistance P aymen t ----------------- 18 e. [5 419] Limitations and Disburse- ment of Replacement Housing Payment to Dis- placed Tenants and Others ------------------ 18 ( 1) [5 4201 Joint Occupants ---- 18 - Hi - V. VI. PAGE (2) [5 421] Rental Replacement Housing ------------- 18 ( 3) [5 422] Disbursement of Rental Replacement Housing Payments 19 [5 500] RELOCATION PAYMENTS TO THE DISPLACED BUSINESSES ------------------------------ 20 A. [5 501] Actual Reasonable Moving Expenses -- 20 1. [5 502] [5 503] [5 504] Allowable Moving Expenses ----- 20 2. Limitations ------------------- 21 3. Nonallowable Moving Expenses and Losses -------------------- 22 B. [5 505] Expenses in Searching for a Replacement Site For the Displaced Businesses ------------------------- 23 C. [5 506] Actual Direct Losses of. Tangible Personal Property of the Dis- placed Business -------------------- 23 D. [5 507] Payments in Lieu of Moving and Related Expenses ------------------- 25 1. [5 508] [5 509] Amount of Payment ------------- 26 Eligibility ------------------- 25 2. [5 600] MOBILE HOMES ---------------------------- 27 A. [5 601] [5 602] Partial Acquisition of Mobile Home Park -------------------------- 27 Purchase of Mobile Homes ----------- 27 B. C. Ui 603] Mobile Homes as Replacement Dwelling --------------------------- 27 D. [5 604] [5 605] Relocation Eligibility and Payments --------------------------- 28 Computation on Next Highest Type --- 28 E. - iv - VII. [!; 700] VIII. [5 800] IX. [5 900] A. [5 701] [5 702] B. C. [5 703] [5 704] D. A. [5 801] [5 802] (5 803J [5 804J B. C. D. E. [5 805] F. [5 806] [5 807] G. A. [5 901] [5 902] (5 903] [5 904] B. C. D. PAGE REQUIREMENTS PRIOR TO DISPLACEMENT ----- 29 Ninety-Day Notice ----------------- 29 Availability of Comparable Replacement Dwelling -------------- 29 Determination of Availability ----- 29 Use of Temporary Housing ---------- 29 APPEALS PROCEDURES AND ADMINISTRATIVE REVIEW --------------------------------- 31 Notification of Claimant ---------- 31 Right of Review ------------------- 31 Review of Files ------------------- 32 Effect of Determination on Other Persons --------------------- 32 Construction of These Rules and Regulations ------------------- 32 Right to Counsel ------------------ 33 Judicial Review ------------------- 33 ACQUISITION PROCEDURES ----------------- 34 Just Compensation ----------------- 34 Initiation of Negotiations -------- 34 Appraisal Standards --------------- 34 Contracts to Purchase Real Property -------------------------- 35 - v - RELOCATION RULES AND REGULATIONS I. [~ 100] GENERAL A. [~ 101] Purpose The purpose of these Relocation Rules and Regulations is to implement the California Relocation Assistance Law (Government Code, Section 7260 et seq.) and the Guidelines adopted and promulgated by the California Department of Housing and Conununity Development (the "Guidelines"), and to insure that relocation payments and assistance provided by the Santa Monica Redevelopment Agency (the "Agency") will be administered in a fair, reasonable, and uniform manner and will be made as promptly as possible to persons and busi- nesses displaced as a result of the acquisition of real pro- perty in a Redevelopment Project (the "Project"). B. [5 102] Authori t.,y These Relocation Rules and Regulations have been adopted by resolution of the Agency pursuant to Section 7267.8(a) of the California Government Code, and are consistent with the California Relocation Assistance Law and the Guidelines. C. [~ 103] Extent of Relocation Payments The Agency may, also, make any other relocation assis- tance payment, or may make any relocation assistance payment in an amount which exceeds the maximum amount for such pay- ment authorized by these Rules and Regulations, if the making of such payment, or the payment in such amount, is required under Federal law to secure Federal funds. II. Ul 2003 DEFINITIONS A. [~ 201] Acquisition "Acquisition" means the acquisition of real property by the Agency by purchase or by the use of eminent domain. B. [~ 202] Average Annual Net Earnings "Average annual net earnings" means the net earnings of the business or farm operation before Federal, State, and local income tax, during the two taxable years immediately preceding displacement (or if the business or farm was not operated that long, such other period as may be approved by the Agency or its designee), and includes salaries, wages or other compensation paid by the business or farm operation to the owner, his spouse or his dependents. If the Agency or his designee determines that such two year period is not equitable for establishing earnings, the period used for determining average net earnings shall be a substitute period determined by the Agency. In the case of a corporate owner, earnings shall include any compensation paid to the spouse or dependents of the owner of a majority interest in the corpora- tion. For the purpose of determining majority ownership, stock held by a husband, his wife and their dependent chil- dren shall be treated as one unit. c. [~ 203] Business "Business" means any lawful activity, except a farm operation, conducted primarily: 1. For the purchase, sale, lease, and rental of personal and real property, and for the manufacture, processing, or marketing of products, commodities or any other per- sonal property; 2. For the sale of services to the public; 3. By a nonprofit organization; 4. Solely for the purposes of Section 501 of these Relocation Rules and Regulations, for assisting in the purchase, sale, re- sale, manufacture, processing or marketing of products, commodities, personal property, or services by the erection and maintenance of an outdoor advertising display regardless of whether the display is located on the - 2 - premises on which any of the above activities were conducted. D. Ui 204] Comparable Replacement Dwelling "Comparable replacement dwelling" means a dwelling which is: 1. Decent, safe, and sanitary, and adequate in size to accommodate the displaced person and his family; 2. Functionally equivalent and substantially the same as the acquired dwelling with respect to number of rooms, area of living space, but not excluding newly constructed housing; 3. In an area not subjected to unreasonable adverse environmental conditions from either natural or man-made sources; 4. In an area not generally less desirable than the area in which the acquired dwelling was located in regard to (1) neighborhood condi- tions, including but not limited to municipal services and other environmental factors, (2) public utilities and, (3) public and commer- cial facilities; 5. Reasonably accessible to the displaced per- son's present or potential place of employment; 6. Available on the private market to the displac- ed person; 7. Open to all persons regardless of race, color, religion, sex, or place of national origin, consistent with the requirements of the Civil Rights Act of 1964 and Title VIII of the Civil Rights Act of 1968; 8. Within the financial means of the displaced person. E. [~ 205] Condominium "Condonimium" means a combination of co-ownership and ownership in severalty. It is an arrangement under which persons in a housing development hold full title to a one- family dwelling unit, including an undivided interest in - 3 - common areas and facilities, and such restricted common areas and facilities as may be designated. F. Ui 206J Conventional Loan "Conventional Loan" means a mortgage commonly given by banks and savings and loan associations to secure advances on, or the unpaid purchase price of real property, payment of which is not insured by any agency of the State or Federal governments. G. [5 207] Date of Initiation of Negotiations "Date of Initiation of Negotiations" means the day on which the Agency makes the first personal contact with the property owner or his representative and furnishes him with a written offer to purchase the real property. H. [5 208] Decent, Safe, and Sanitary Dwelling "Decent, safe, and sanitary dwelling" means a dwelling which is in conformance with the City Housing Codes and the occupancy standards which conform with that Code, and which otherwise meet the standards established in the Guidelines. I. [5 209] Displaced Business "Displaced business" means any business which is discon- tinued or moves from real property, or which moves its equip- ment, machinery, or other items of personal property from real property, as a result of: 1. The acquisition of the real property, in whole or in part, by the AgencYi or 2. The receipt of a written notice from the Agency to vacate the real propertYi or 3. The receipt of a written notice from the Agency to vacate other real property on which the business is conducted, solely for the purpose of Sections 301, 501, 505, and 506 of these Relocation Rules and Regulations. J. [5 210J Displaced Person "Displaced person" means any person who moves from real property, as a result of: - 4 - 1. The acquisition of the real property in whole or in part, by the Agency; or 2. The receipt of a written notice from the Agency to vacate the real property; or 3. The receipt of a written notice from the Agency to vacate other real property on which the person conducts a business, solely for the purpose of Sections 301, 402, and 405 of these Relocation Rules and Regulations. K. [~ 211] Dwelling "Dwelling" means a single-family building, a single- family unit (including a nonhousekeeping unit) in a two- family or multifamily building, a unit of a condominium or cooperative housing project, a mobile home, or other resi- dential unit. L. [~ 212] Family "Family" means two or more individuals, one of whom is the head of a household, plus all other individuals regard- less of blood or legal ties who live with and are considered a part of the family unit. Where two or more individuals occupy the same dwelling with no identifiable head of house- hold, they shall be treated as one family for replacement housing payment purposes. M. [~ 213] Incidental Expenses "Incidental Expenses" means reasonable expenses incurred for evidence of title, recording, fees, and other closing costs on the purchase of a replacement dwelling. N. [~ 214] Mobile Home "Mobile home" means a vehicle, other than a motor vehiCle, designed or used for human habitation, for carrying persons and property on its own structure, and for being drawn by a motor vehicle. o. [~ 215] Mortgage "Mortgage" means such classes of liens as are corrunonly given to secure advances on, or the unpaid purchase price of, real property, together with the credit instruments, if any, secured thereby. - 5 - P. [~ 216] Moving Expenses "Moving expense" means the cost of dismantling, dis- connecting, crating, loading, insuring, temporary storage, transporting, unloading and reinstalling of personal pro- perty, including service charges in connection with effect- ing such installations, and necessary temporary lodging and transportation of eligible persons. Moving expense shall not include: 1. Any addition, improvement, alteration or other physical change in or to any struc- ture in connection with effecting removal of personal property from, or reinstalla- tion in such structure; 2. The cost of construction or improvement at the new location to replace property for which compensation was paid in the acquisition; 3. Any loss of, or damage to, personal pro- perty caused by the fault or negligence of the displaced person, his agent, or employee in the process of moving where insurance to cover such loss or damage is or was available; 4. Any payment for moving personal property where such property is purchased as part of the acquisition; 5. Additional expenses incurred because of liv- ing in a new location; 6. Cost of moving structures, improvements or other real property (exclusive of fixtures and equipment) in which the displaced person reserved ownership; 7. Improvements to the replacement site; 8. Interest on loans to cover moving expenses; 9. Loss of goodwill; 10. Loss of business or profits; 11. Loss of trained employees; 12. Personal injury; - 6 - 13. Cost of preparing the application for mov- ing and related expenses; 14. Modification of personal property to adapt it to replacement site. Q. [5 217] Nonprofit Organization "Nonprofit organization" means a corporation, partner- ship, individual or other public or private entity, engaged in a business, professional or instructional activity on a nonprofit basis, necessitating fixtures, equipment, stock in trade, or other tangible property for the carrying on of the business, profession or institutional activity on the premises. R. [S; 218] Owner "Owner" means a person "owns a dwelling" if he: 1. Holds fee title, life estate, a 99 year lease, or a lease with not less than 50 years to run from date of acquisition of the property for the project. 2. Holds an interest in a cooperative housing project which includes the rights of occupancy of a dwelling unit therein. 3. Is the contract purchaser of any of the fore- going estates or interests. 4. Has a leasehold interest with an option to purchase; or 5. Owns a mobile unit which under State law is determined to be real property, not personal property. s. u; 219J Person "Person" means any individual, partnership, corporation, or association. T. [5 220] Personal Property "Personal property" means tangible property which is situated on the real property vacated or to be vacated by a displaced person and which is considered personal property and is noncompensable (other than for moving expenses) under the state law of eminent domain; and - 7 - In the case of a tenant, fixtures and equipment, and other property which may be characterized as real property under State or local law, but which the tenant may lawfully, and at his election determine to move, and for which the tenant is not compensated in the real property acquisition. In the case of an owner of real property, the determination as to whether an item of property is personal or real shall depend upon how it is identified in the acquisition apprai- sals and the closing or settlement statement with respect to the real property acquisition; provided, that no item of property which is compensable under State and local law to the owner of real property in the real property acquisition may be treated as tangible personal property in computing actual direct losses of tangible personal property. U. [5 221] Prepaid Expenses "Prepaid expenses" means items paid in advance by the seller of real property and prorated between such seller and the buyer of such real property at the close of escrow includ- ing, but not limited to real property taxes, insurance, home- owners' association dues and assessment payments. V. [5 222] Public Use "Public use" means a use for which real property may be acquired by eminent domain. W. [5 223] Purchases (Re Replacement Housing) "Purchases" means the acquisition, construction or re- habilitation of a dwelling, the purchase and rehabilitation of a substandard dwelling, the relocation or relocation and rehabilitation of an existing dwelling, or the entering into a contract to purchase, or for the construction of, a dwell- ing to be constructed on a site to be provided by a builder or developer or on a site which the displaced person owns or acquires for such purpose. Where completion of construction, rehabilitation, or relocation of a replacement dwelling is delayed, for reasons beyond control of the displaced person, occupancy shall be the date the displaced person enters into a contract for such construction, rehabilitation, or reloca- tion or for the purchase upon completion, of a dwelling to be cons"tructed or rehabilitated if, in fact, the displaced person occupies the replacement dwelling when the construction or rehabilitation is completed. Mobile homes must be registered with the California Department of Motor Vehicles in the name of the claimant~ - 8 - III. [~300] RELOCATION ADVISORY ASSISTANCE A. [~ 301] Persons and Businesses to Whom Relocation Advisory Assistance Shall Be Provided The Agency shall provide relocation advisory assistance to any person or business displaced because of the acquisi- tion of real property by the Agency. Such relocation advisory assistance shall also be provided to those persons who occupy property immediately adjacent to the real property acquired and who, in the determination of the Agency or its designee, are caused substantial economic injury by reason of such acquisition. B. [~ 302] Neighborhood Relocation Office In providing relocation advisory assistance pursuant to Section 303, the Agency may, but is not required to, establish a neighborhood relocation office to assist in obtaining re- placement facilities for displaced persons and businesses. C. [~ 303] Relocation Advisory Assistance Relocation advisory assistance to be provided by the Agency shall include the following: 1. Determining the need, of any of displaced persons and businesses for relocation assistance. 2. Providing current and continuing informa- tion on the availability, prices, and rentals of comparable decent, safe, and sanitary hous- ing for displaced persons, and of comparable commercial properties and locations for dis- placed businesses. 3. Assuring, that within a reasonable period of time prior to displacement (to the extent that it can be reasonably accomplished), there will be available in areas not generally less desirable in regard to public utilities and public and commercial facilities, and at rents or prices within the financial means of the families and individuals displaced, decent, safe, and sanitary dwellings, equal in number to the number of, and available to, such dis- placed persons who require such dwellings and reasonably accessible to their places of employment. - 9 - 4. Assisting a displaced business in obtain- ing and becoming established in a suitable replacement location. 5. Supplying information concerning federal and state housing programs, disaster loan programs, and other federal or state pro- grams offering assistance to displaced persons and businesses. 6. Providing other advisory services to dis- placed persons and businesses in order to minimize hardships to such persons and businesses. D. Ui 304] Coordination of Relocation Assistance Program The Agency shall coordinate its relocation assistance program with other work necessitating displacement of persons, and with activities of other public entities in the City or nearby areas, for the purpose of planning relocation activi- ties and coordinating the availability of replacement housing resources in the implementation of the Agency's relocation assistance program. E. [5 305] Contracting For Relocation Services The Agency may enter into a contract with any individual, firm, association, corporation, or governmental agency having an established organization for conducting relocation assis- tance programs, for the performance of providing relocation advisory assistance required under Section 303. - 10 - IV. [~ 400] RELOCATION PAYMENTS TO DISPLACED PERSONS A. [~ 401] Eligibility The Agency shall compensate a displaced person for the expenses described in Sections 402 or 405, and in Section 406. A displaced person who lives on his business property may be eligible for both the payments described under this Section 400 and the payments to a displaced business provid- ed under Section 500. For the purpose of Sections 402 and 405, the term "displaced person" shall include any person who moves from real property or moves his family or personal property from real property (1) as a result of a written notice from the Agency to vacate, or (2) as a result of the receipt of a written notice from the Agency to vacate other real property on which the person conducts a business, or (3) the subject real property is acquired by the Agency and the person moved as a result of its acquisition by the Agency. Applications for benefitp must be made within eighteen (18) months from the date on which the displaced person moves from the real property acquired, unless such time is extended by the Agency or his designee. B. [5 402] Actual Reasonable Expenses in Moving 1. [5 403] Allowable Movin9 Ex~enses A displaced person shall be compensated for the expenses incurred in moving himself, his family, and personal property a distance within a 50-mile radius of the City limits. Such moving expenses shall include: (a) Transportation of the displaced person, his family, and personal property from the acquired site to the replacement site, and obtaining bids or estimates for such transportation. (b) Packing and unpacking, crating and uncrat- ing of personal property, and obtaining bids or estimates therefor. (c) Storage of personal property for a period not to exceed six (6) months in the event the Agency determines that such storage is necessary in connection with relocation. (d) Insurance premiums covering the loss of and damage to personal property while in storage or transit. - 11 - (e) Property lost, stolen, or damages in the process of moving, where insurance to cover such loss or damage is not avail- able; provided that such loss, theft, or damage is not due to the fault or negli- gence of the displaced person or his agents or employees. (f) Disconnection, disassembly, removal, re- connection, reinstallation, reassembly, and reestablishment of appliances and similar items of personal property not acquired as real property, and of utility services for such appliances and similar items of per- sonal property. Prior to payment of any expenses for removal and reinstallation of such property, the displaced person shall agree that such property is personalty and that the Agency is released from any pay- ment therefore. In the event the displaced person accomplishes the move himself, the amount of the payment to be allowed pursuant to this Section 402, shall not exceed the estimated cost of mov- ing commercially. The estimated cost of moving commercially shall be based on the lowest reasonable bid or estimate from at least two reputable moving firms submitted by the displaced person to the Agency prior to the move. The estimated cost of moving commercially shall include the cost (if any) of obtain- ing such bids or estimates. 2. [5 404] Nonallowable Moving Expenses and Losses In no instance shall a displaced person be compensated for the following: (a) Additional expenses incurred because of living in a new location. (b) Cost of moving structures or other im- provements in which the displaced person reserved ownership, except as otherwise provided by law. (c) Improvements to the replacement dwelling, except where required by law. (d) Interest on loans to cover moving expenses. (e) Personal Injury. - 12 - (f) Payment for search cost in connection with locating a replacement dwelling. (g) Cost of preparing the application for moving and related expenses. B. [S; 405] Payments in Lieu of Actual Reasonable Expenses in Moving Any displaced person who moves from a dwelling and who elects to accept payments authorized by this Section 405 in lieu of the payments authorized by Section 402, shall receive: 1. A moving expense allowance, according to a schedule to be established from time- to-time by the Agency or its designee based on reasonable moving cost estimates not to exceed Three Hundred Dollars ($300.00); and 2. A relocation allowance of Two Hundred Dollars ($200.00) . If two or more displaced persons are joint occupants of one dwelling unit and submit more than one claim, an eligible claimant for a payment under this Section 405 may be paid only his reasonable prorated share (as determined by the Agency) of the total payment applicable to a single tenant. The total of the payments made to all such claimants moving from the dwelling unit shall not exceed the total payment allowed to be made to a single tenant as provided in this Section. C. [S; 406] Replacement Housing Payments 1. [S; 407] Replacement Housing Payments For Displaced Owner-Occupants a. [g 408] Eligibility In addition to the payments required by section 402 or by Section 405, the Agency shall make a payment to a displac- ed person whose real property is improved with a dwelling actually owned and occupied by the displaced person for not less than 180 days prior to the date of initiation of nego- tiations for the acquisition of the property. The payment made pursuant to Section 409 shall be made only to a displaced person who purchases a comparable - 13 - replacement dwelling, and who occupies it within one year subsequent to the date on which he moves from the dwelling acquired by the Agency, or the date on which he receives from the Agency final payment of all costs of the dwelling acquired by the Agency (whichever is the later date) . Where for reasons of hardship and beyond the control of such displaced person, such person is unable to occupy the replacement dwelling within the above time limit, the Agency or its designee may, at his discretion, extend the time. For the purposes of this Section 408, the leasing of a con- dominium for a 99-year period, or for a term which exceeds the life expectancy of the displaced person (as determined from the most recent life tables in Vital Statistics of the United States, as published by the Public Health Service of c:he Department of Health, Education and Welfare), shall be deemed a purchase of a condominium. A displaced person who is determined to be ineligible for a replacement housing payment pursuant to the require- ments of this Section may be eligible for a replacement hous- ing payment under Section 414 of these Relocation Rules and Regulations. Amount and Computation of Replacement Housing P.ayment For Displaced Owner-Occupants The total replacement housing payment to be made to a displaced person shall not exceed Fifteen Thousand Dollars ($15,000.00), and shall be comprised of payments set forth below: b. [5 409] ( 1) [5 410] Differential Payments The Agency, or its designee, shall determine the amount, if any, which, when added to the acquisition payment equals the reasonable cost of a comparable replacement dwelling, provided that such amount shall not exceed the difference between the acquisition price of the acquired dwelling and the actual purchase price of the replacement dwelling. If the displaced person voluntarily purchases and occupies a decent, safe, and sanitary dwelling at a price less than the acquisition price of the acquired dwelling, no differential payment shall be made. The following methods may be used in determining the payment: (a) Schedule Method. The Agency may base its payment on a schedule, which the Agency establishes, of reasonable acquisition costs for a comparable replacement dwelling based - 14 - on a current market analysis sufficient to support deter- minations of the amount for the type of dwelling to be acquired; or (b) Comparative Method. The Agency may use a com- parative method on which to base its payment by selecting a dwelling or dwellings most representative of the dwelling unit acquired, available to the displaced person, and which meets. the definition of a comparable replacement dwelling. A single dwelling shall be used only when additional com- parable dwellings are not available; or (c) Alternate Method. The Agency, or its designee, may develop criteria for computing the replacement housing payments where neither the schedule method nor comparative method is feasible. (2) [!l 411] Interest Payment The Agency, or its designee, shall determine the amount, if any, which will compensate the displaced owner for any increased interest cost which he is required to pay for financing the acquisition of a comparable replacement dwelling. The amount shall be paid only if the acquired dwelling was encumbered by a bona fide mortgage, which was a valid lien on such dwelling for not less than 180 days prior to the date of the initiation of negotiations for the acquisition of such dwelling. The amount shall be equal to the excess in the aggregate interest and other debt service costs, including points paid by the purchaser, of that amount of the principal of the mortgage on the replacement dwelling which is equal to the unpaid balance of the mortgage on the acquired dwelling over the remainder term of the mortgage on the acquired dwell- ing, reduced to discounted present value. The discount rate shall be the prevailing interest rate paid on savings deposits by conunercial banks in the general area in which the replace- ment dwelling is located. ( 3) [!i 412] Incidental Expense Payment The Agency, or its designee shall determine the amount, if any, necessary to reimburse a displaced person for actual reasonable expenses incurred by the displaced owner-occupant for evidence of title, recording fees, escrow fees and other closing costs incident to the purchase of the replacement dwelling normally paid by the purchaser (but not including prepaid expenses). No reimbursement shall be made for any fee, cost, charge, or expense which is determined to be a part of the debt service or finance charge under the Federal Truth in Lending Act. - 15 - c. Ui 413] Displaced Persons Who Are Joint Owner-occupants Of A Dwelling The total amount of the replacement housing payment to be made to displaced persons who were joint owner-occupants of a dwelling acquired by the Agency shall be limited to the total amount of the payment applicable for an individual under Section 407. Such joint owner-occupants may be paid only their respective reasonable prorated share of the total payment applicable for an individual. 2. [~ 414] Replacement Housing Payments For Displaced Tenants and Others a. [~ 415] Eligibility In addition to the payments required by Section 402 or by Section 405, the Agency shall make a payment to a displac- ed person who has actually and lawfully occupied the dwelling from which he is displaced for not less than ninety (90) days prior to the date of the initiation of negotiations by the Agency for acquisition of such dwelling, and who is not eligible to receive the replacement housing payment provided under Section 407. b. [~ 416] Amount and Computation of Replacement Housing Payment For Displaced Tenants and Others The total replacement housing payment to be made to dis- placed tenants and others shall not exceed Four Thousand Dollars ($4,000.00) for either: (1) The amount, computed in accordance with Section 417, necessary to enable the dis- placed person to lease or rent a compar- able replacement dwelling for a period not to exceed four (4) years; or (2) The amount, computed in accordance with Section 418, necessary to enable the dis- placed person to make a down payment {including incidental expenses) on the purchase of a comparable replacement dwelling; provided, that if such amount exceeds $2,000.00, the displaced person shall equally match any such amount in excess of $2,000.00 in making the down payment. - 16 - c. [~ 417] Rental Assistance Payment The amount to be paid to a displaced person to lease or rent a comparable replacement dwelling shall be computed by subtracting 48 times the base monthly rental of the dis- placed person from 48 times the monthly rental which the displaced person actually pays for a replacement dwelling, or if lesser, the amount determined by the Agency as neces- sary to rent a comparable replacement dwelling. The base monthly rental shall be: (1) The average monthly rental paid by the displaced person for the 3-month period prior to the date of the initiation of negotiations; or (2) The average monthly rental during such 3-month period for similar dwellings in an area not generally less desirable than that of the dwelling from which such person was displaced (hereinafter referr- ed to as the "economic rent") in the even t: (a) The average monthly rental paid by the displaced person is found by the Agency or its designee to be substantially higher or lower than the economic rent; or (b) The displaced person was the owner of the dwelling from which he was displaced. The comparable monthly rental shall be the amount of rental determined by the Agency's designee by either of the following methods: (1) Schedule Method. In accordance with a schedule to be established from time-to-time by the Agency's designee which establishes the average monthly rentals for comparable replacement housing which are available in the private market for the various types of dwellings to be acquired; or (2) Comparative Method. On a case-by-case basis by determining the average month's rent for one or more dwellings which have been selected by the Agency or by the displaced person with the approval of the Agency, and which are more - 17 - representative of the acquired dwelling and meet the defini- tion of comparable replacement housing. The amount of the rental assistance payment made pur- suant to this Section 417 shall in no event exceed the difference between the base rental and the actual monthly rental paid by the displaced person for a replacement dwelling. d. [5 418] Purchase Assistance Payment In the event the displaced person elects to purchase instead of rent a comparable replacement dwelling, the amount to be paid to the displaced person to make a down payment and to cover incidental expenses on such purchase shall not exceed: (1) The amount required as down payment for the purchase of a comparable replacement dwelling. This determination of the amount necessary for such down payment shall be based on the amount necessary for such down payment that would be re- quired for purchase of the dwelling using a conventional loan; and (2) Expenses incident to the purchase of a comparable replacement dwelling as set forth in Section 412. The full amount of a down payment under this Section 418 shall be applied to the purchase price and such incidental expense of the pur- chase of the replacement dwelling. e. U:i 419] Limitations and Disbursement Of Replacement Housing Payment to Displaced Tenants and Others (1) [5 420] Joint Occupants The total amount of the replacement housing payment to be made to displaced persons who were joint occupants of a dwell- ing acquired by the Agency shall be limited to the total amount of the payment applicable for an individual under Sec- tion 414. Such joint occupants may be paid only their reason- able prorated share of the total payment applicable for an indi vidual. (2) [5 421] Rental Replacement Housing In the event the displaced person is not eligible for a replacement housing payment under Section 406 or if otherwise - 18 - eligible but he elects to rent rather than purchase a com- parable replacement dwelling, the amount of the rental assistance payment under Sections 416 and 417 shall not exceed the amount of payment for which such displaced person would be eligible under Section 407 if he had purchased a comparable replacement dwelling. ( 3) [~ 422] Disbursement of Rental Replacement Housing p aymen ts Rental replacement housing payments in excess of $500.00 shall be made annually in four (4) equal installments, pro- vided that prior to paying each such installment the Agency shall verify that the displaced person (so long as he remains in the general locality) is occupying a comparable replace- ment dwelling. In unusual circumstances as determined by the Agency payments may be paid in a lump sum or in other incremen ts. - 19 - v. [~ 500] RELOCATION PAYMENTS TO THE DISPLACED BUSINESSES The Agency shall compensate the owner of a displaced business for the expenses described in Sections 501, 505, and 506, or in Section 507. For the purpose of Sections 501, 505, and 506, the term "displaced business" shall in- clude any business which is discontinued or moved from real property, (1) as a result of agency acquisition of such real property, or (2) as a result of written notice to vacate from the Agency, or (3) which moves its equipment, machinery or other items of personal property from real pro- perty, as a result of the receipt of a written notice from the Agency to vacate other real property on which the busi- ness is conducted. A. [1; 501] Actual Reasonable Moving Expenses 1. [1; 502] Allowable Moving Expenses An owner of a displaced business shall be compensated for the expenses incurred in moving the personal property of the displaced business a distance within a 50-mile radius of the City limits. Such moving expenses shall include: (a) Transportation of the personal property of the displaced business from the ac- quired site to the replacement site, and obtaining bids or estimates for such transportation. (b) Packing and unpacking, crating and uncrat- ing of such personal property; and obtain- ing bids or estimates therefor. (c) Storage of such personal property for a period not to exceed six (6) months (in the event the Agency determines that such storage is necessary in connection with relocation). (d) Insurance premiums covering the loss and damage to such personal property while in storage or transit. (e) Property lost, stolen or damaged in the process of moving, where insurance to cover such loss or damage is not available; pro- vided that such loss, theft, or damage is - 20 - not due to the fault or negligence of the displaced business or its agents or employees. (f) Disconnection, disassembly, removal, reconnection, reinstallation, reassembly, and reestablishment of machinery, equip- ment, and other items of personal proper- ty and utility services for such machinery, equipment, and similar items not acquired as real property; provided that prior to payment of any expenses related thereto, the owner of the displaced business shall be required to agree in writing that such machinery, equipment, and similar items of personal property are personalty and that the Agency is released from any obligation to make payment for purchase of such machinery, equipment, and similar items of property. 2. [~ 503] Limitations The amount permitted to be paid for actual moving expenses for personal property of a displaced business shall be limited by the fOllowing considerations: (a) In the event the owner of the displaced business accomplishes the move himself, the amount of payment to be allowed pur- suant to Section 502 shall not exceed the estimated cost of moving commercially. The estimated cost of moving corrunercially shall be based on the lowest responsible bid or estimate from at least two reputable moving firms submitted by the owner of the displaced business to the Agency prior to the move. The estimated cost of moving commercially shall include the cost (if any) of obtaining such bids or estimates. (b) In the event an item of personal property of a displaced business is not moved but sold and promptly replaced with a compar- able item, the payments made pursuant to Sections 501 and 506 shall not exceed the replacement cost minus the proceeds re- ceived from the sale, or the estimated costs of moving, whichever is less. - 21 - (c) In the event an item of personal property of a displaced business is not moved but abandoned and promptly replaced with a comparable item, the payments made pursuant to Sections 501 and 506 shall not exceed the replacement cost minus the in-use value of the item of personal property, or the estimated cost of moving, whichever is less. (d) In the event personal property of a dis- placed business to be moved is of low value and high bulk, and the cost of mov- ing would be disproportionate in relation to the value, as determined by the Agency or its designee, the payments made pursuant to Sections 501 and 506 shall not exceed the difference between the amount which would have been received for such item on liquidation and the cost of replacing the same with a comparable item available on the market. This limitation is specifically applicable in the case of moving of junk- yards, stockpiled sand, gravel, minerals, metals and similar items of personal property. (e) In the event the cost of moving or relocating an outdoor advertising display or displays is determined by the Agency to be equal to or in excess of the in-place value of the display, the Agency may elect to acquire such display or displays as a part of the real property. 3. [~ 504] Nonallowable Moving Expenses and Losses In no instance shall an owner of a displaced business be compensated for the following: (a) Additional expenses incurred because of conducting business in a new location. (b) Cost of moving structures or other im- provements (exclusive of fixtures and equipment) in which the owner of the dis- placed business reserved ownership, ex- cept as otherwise provided by law. (c) Improvements to the replacement business site, except where required by law. - 22 - (d) Interest on loans to cover moving expenses. (e) Loss of good will. ( f) Loss of profits. (g) Loss of trained employees. (h) Personal injury. (i) Cost of preparing the application for mov- ing and related expenses. B. [~ 505] Expenses in Searching for a Replacement Site For the Displaced Business An owner of a displaced business shall be compensated for the actual and reasonable expenses incurred in searching for a replacement site for the displaced business within a 50-mile radius of the City limits. The total amount of the payment by the Agency for such expenses in searching for a replacement site for the displaced business shall not exceed Five Hundred Dollars ($500.00). Expenses which qualify for reimbursement pursuant to this Section 505 may include: 1. The actual expense of transportation, meals, and lodging away from home. 2. The expense attributable to the time spent in searching for a replacement site computed on the hourly wage rate of the salary or earnings of the owner of the displaced business or his re- presentative or employee, but not to exceed $10.00 per hour. 3. Fees paid to a real estate broker to locate a replacement site for the dis- placed business. C. [~ 506] Actual Direct Losses of Tangible Personal Property of the Displaced Business An owner of a displaced business shall be compensated for the actual direct loss of tangible personal property of the displaced business attributable to relocating or discontinuing the displaced business. The total amount of the payment by the Agency for such actual direct loss of personal property of the displaced business shall not exceed an amount equal to - 23 - the reasonable expenses that would have been required to move such personal property within a 50-mile radius of the City limits, as determined by the Agency or its designee. Subject to said limitation, the actual direct loss of per- sonal property shall be computed and based on an appraisal obtained by either the Agency or the owner of the displaced business (and approved by the other) of either: 1. The in-use value of the personal property minus the proceeds received from the sale of such personal property (in the event the property is sold and not promptly re- placed with a comparable item of personal property); or 2. The in-use value of the personal property in the event the property cannot be sold and is abandoned and is not promptly re- placed with a comparable item of property. The cost of removal of the personal property which is sold or abandoned shall not be considered as an offsetting charge in determining the amount of the actual direct loss of such personal property. In order to obtain a payment for the actual direct loss of an item of personal property, the owner of the displaced business shall make a bona fide effort to sell the item of personal property for which the loss is claimed at the highest price offered after reasonable efforts have been made over a reasonable period of time to interested prospective purchasers. If the proceeds from the sale are less than the in-use value, the difference between the proceeds and the in-use value shall be the amount of actual direct loss of the item of tangible personal property. If the item of tangible personal property cannot be sold and is abandoned, the in-use value shall be the amount of actual direct loss of the item of tangible personal property. In the event the item of tangible personal property which is sold or abandoned is promptly replaced with a comparable item, no payment for the actual direct loss of such tangible person- al property shall be made to the owner of the displaced busi- ness by the Agency; instead, the owner of the displaced busi- ness shall be paid the amount specified in Section 503(b) or Section S03(c}. No payment for the actual direct loss of items of tangible personal property of a displaced business which are of low value and high bulk shall be made to the.owner of the displaced - 24 - business; instead, the owner of the displaced business shall be paid the amount specified in section 503{d). D. [~ 507] Payments in Lieu of Moving and Related Expenses Any owner who moves or discontinues his business and who elects to accept the payment authorized by this Section 507 in lieu of the payments authorized by Sections 501 through 506 shall receive a fixed relocation payment in an amount equal to the "average annual net earnings" of the business. If a business has no net earnings or has suffered losses dur- ing the period used to compute the "average annual net earn- ings", it may nevertheless receive the $2,500.00 minimum pay- ment described in Section 509 provided that the Agency determines that such business is in fact a bona fide business. 1. [~ 508] Eligibili ty To be eligible for the payment authorized by Section 507, the owner of the displaced business shall make available to the Agency its state income tax records, and/or its financial statements and accounting records, for audit for confidential use to determine the amount of the payment authorized by Sec- tion 507. No payment shall be made under Section 507, unless the Agency determines that (I) the business cannot be relocated without a substantial loss of existing patronage and (2) that the business is not a part of a commercial enterprise having at least one other establishment not being acquired, which is engaged in the same or similar business. The determination of the loss of existing patronage shall be made by the Agency only after consideration of all perti- nent circumstances, including but not limited to the following factors: (a) The type of business conducted by the dis- placed business. (b) The nature of the clientele of the dis- placed business. (c) The relative importance of the present and proposed location to the displaced business and the availability of a com- parable replacement dwelling for the owner, in the event the owner lives on - 25 - the displaced business premises, or moves as a result of the acquisition of his business location by the Agency. In connection with the relocation of a nonprofit organiza- tion, the use of the term "patronage" shall refer to the per- sons, community, or clientele served or affected by the activi- ties of the nonprofit organizations. In determining whether the displaced business is a part of a similar business enterprise having at least one other establishment not being acquired, the Agency shall consider the following factors: (a) The extent to which the same premises and equipment are shared. (b) The extent to which substantially iden- tical or intimately interrelated busi- ness functions are pursued and business and financial affairs are comingled. (c) The extent to which such entities are held out to the public, and to those customarily dealing with such entities, as one business; and (d) The extent to which the same person or closely related persons own, control or manage the affairs of the entities. An outdoor advertising display shall not be entitled to the payment under Section 507, but shall be limited to the payment of moving expenses under Section 501 or the cost to replace said display. 2. [5 509] Amount of Payment The payment made to an owner of a displaced business pur- suant to Section 507 shall be in an amount not less than Two Thousand Five Hundred Dollars ($2,500.00) nor more than Ten Thousand Dollars ($10,000.00). - 26 - A. [5 600] [~ 601] MOBILE HOMES VI. Purchase of Mobile Homes The Agency may purchase mobile homes where: 1. The structural condition of the mobile home is such that it cannot be moved without substantial damage or unreason- able cost; or 2. The mobile home is not considered to be a decent, safe, and sanitary dwelling unit as defined in Section 210. B. [5 602] Partial Acquisition of Mobile Home Park Where the Agency determines that a sufficient portion of a mobile home park is taken to justify the operator of such a park to move his business or go out of business, the owners and occupants of the mobile home dwellings not within the actual taking, but who are forced to move, shall be eligible to receive the same payments as though their dwellings were within the actual taking. c. [5 603] Mobile Homes as Replacement Dwellings A mobile home may be considered a replacement dwelling provided: 1. The mobile home meets standards of decent, safe, and sanitary housing; 2. The mobile home is placed in a fixed location: a. In a mobile home park which is licensed and operating under State law; or b. In a mobile home subdivision wherein the displaced person owns the lot on which the mobile home is placed; or c. On real property owned or leased by the displaced person in other than a mobile home subdivision, provided such placement is in accordance with State and local laws or ordinances, and pro- vided such placement was made under permit from the State or local agency. - 27 - D. [~ 604] Computation on Next Highest Type When a comparable mobile home is not available it will be necessary to calculate the replacement housing payment on the basis of the next highest type of dwelling that is available and meets the applicable requirements and stan- dards, i.e., a higher type mobile home or a conventional dwelling. "Not available" as used in this Section includes, but is not limited to, those cases where mobile homes cannot be relocated in mobile home parks within a reasonable dis- tance from the place of dislocation because of lack of avail- able spaces or because of the standards and rules of the mobile home parks where spaces are available. E. [~ 605] Relocation Eligibility and Payments The eligibility requirements and general provisions of Sections 400, 409, and 416 are applicable to owners and tenants of mobile homes. - 28 - VII. [5 700] REQUIREMENTS PRIOR TO DISPLACEMENT A. [5 701] Ninety-Day Notice To the greatest extent practicable, no person lawfully occupying real property shall be required to move from his dwelling (assuming a comparable dwelling will be available) or to move his business, without at least 90 days written notice from the Agency to vacate. After delivery of a 90- day notice to the person or business to be displaced by the Agency, the parties may agree in writing to a tenancy which permits a shorter notice than 90 days to terminate such tenancy and to require such person to move. If the Agency permits such person or business to remain on the real proper- ty acquired by the Agency on a rental basis for a short term or for a period subject to termination by the Agency on a 90- day notice, or shorter notice period, the amount of rent re- quired shall not exceed the fair market value of the property to a short term occupier. B. [5 702] Availability of Comparable Replacement Dwelling No displaced person shall be required to move from his dwelling because of its acquisition by the Agency, unless there is a comparable replacement dwelling as defined in Sec- tion 206 available to that displaced person. The requirement of this Section 702 shall be deemed to have been satisfied if the displaced person is offered and refuses (without reason- able justification) reasonable choices of specifically identi- fied comparable replacement dwellings which meet the criteria of Section 206. C. [5 703] Determination of Availability The determination of availability of a comparable replace- ment dwelling shall be based on a current survey and analysis of available replacement housing by the Agency, taking into account competing demands on available housing. D. [5 704] Use of Temporary Housing Subject to the prior approval of the Agency or its desig- nee, a person to be displaced from a dwelling by the Agency, may be provided temporary housing which is not comparable re- placement housing as defined in Section 206 in the following circumstances: 1. In cases of emergency or where such person is subject to economic hardship or condi- tions hazardous to his health or safety; or - 29 - 2. In extraordinary situations where the absence of such temporary move, the pro- gress of the program would be substan- tially delayed if the following conditions are satisfied: a. Such temporary housing is decent, safe, and sanitary and within the financial means of such person; and b. The Agency or its designee has determin- ed that within 12 months of the date of the temporary move or such longer period as deemed reasonable by it, comparable replacement housing meeting the criteria specified in Section 206 will be avail- able for occupancy by such displaced per- son; and c. Prior to the temporary move such person will be given a written assurance that comparable replacement housing meeting the criteria specified in Section 206 will be available at the earliest possible time but not later than the date provided under paragraph 2b. of this Section 704. The Agency shall continue to furnish to all displaced persons provided temporary housing under this Section 704, all relocation assistance required under Section 303. The eligibility of any displaced person for a payment under Sections 402 or 405 and under Section 406 shall not be affected by a move to temporary housing. Any displaced person provided temporary housing under this Section 704 shall be entitled to actual reasonable moving expenses into both tem- porary and permanent housing, and such person may elect to re- ceive an alternate payment under Section 405 in lieu of actual reasonable moving expenses. - 30 - VIII . [~800] APPEALS PROCEDURES AND ADMINISTRATIVE REVIEW A. [~ 801] Notification of Claimant In the event the Agency denies the eligibility of a per- son who has made a claim for a relocation payment under these Rules and Regulations, or disapproves the full amount claimed, or refuses to consider the claim or its merits on account of an untimely filing or any other ground, the Agency shall by written notice inform the person of its determination, the reasons therefor, and the applicable procedures for obtaining review of the determination. B. [~ 802] Right of Review Any person aggrieved by a determination as to eligibility for, or the amount of, a payment under these Rules and Regula- tions may have his claim reviewed in accordance with the pro- cedures set forth below. Any person or class of persons may see~ review of any schedule with respect to payment under these Rules and Regulations. The procedures for review are as follows: (1) Review by Agency Designee. Any person or class of persons who has a right to seek review (as provided in this Section 802) may request in writing that the Agency's author- ized designee, review the matter with the person or persons making this request. Such designee must be someone other than the person who made the initial decision, and must have the authority to revise the initial determination of the claim. Any such person or class of persons, upon request to the Agency, shall be afforded the opportunity to make an oral presentation and to discuss the subject claim or claims with the Agency's designee. The Agency's designee (other than the person making the initial decision) shall notify such person or persons in writing of his decision, reviewing and considering all reason- ably available evidence. Said notification shall be made within fifteen (15) days following the date on which the matter was reviewed with the person or persons making the request for review. (2) Review, by Relocation Appeals Board. After review of the matter by the Agency's designee and receipt of its decision, or in the event such person or class of persons has not received notification of the Agency's designee's de- cision within 30 days after filing the initial request for review, the person or class of persons may file a complaint in writing with the Relocation Appeals Board established by the City. The complaint must be filed within six (6) months of the date on which the aggrieved person or class of persons received (or should have received) notification of the Agency's - 31 - decision. The Relocation Appeals Board will promptly hear all such complaints pursuant to rules and regulations adopted by the Relocation Appeals Board, and shall deter- mine if the Agency has complied with applicable provisions of the California Community Redevelopment Law, the State Guidelines and, where applicable, Federal regulations. The Relocation Appeals Board shall, after a public hearing on the matter, transmit its findings and recommendation to the Agency Members. (3) Review by Agency Members. After a public hearing by the Relocation Appeals Board, and receipt of its findings and recommendations, the Agency Members shall conduct a hear- ing on the complaint and shall give such person or class of persons at least five (5) days written notice prior to hear- ing the matter. The final determination on review by the Agency Members shall include, but is not limited to: (a) the Agency Member's decision on reconsideration of the claim or claims; and (b) the factual and legal basis upon which its decision is based, including any pertinent explanation or rationale. The aggrieved person or class of persons shall be notified in writing of the decision of the Agency Members within five (5) days after such decision, which decision shall be final. C. [5 803] Review of Files Except for confidential material, and except to the ex- tent specifically prohibited by law, the Agency shall allow the aggrieved person or persons to inspect all files and re- cords bearing on the claim or complaint. The Agency may, however, impose reasonable conditions on such right to inspect its files and records. D. [5 804] Effect of Determination on Other Persons The principles established in all determinations by the Agency shall be applied to all similar cases regardless of whether or not a person has filed a written request for review. E. [5 805] Construction of These Rules and Regulations These Rules and Regulations shall be liberally construed so as to fulfill the statutory purpose as declared in the Relocation Assistance Law of "fair and equitable treatment" in order that displaced persons "not suffer disproportionate injuries as a result of programs designed for the benefit of the public as a whole". - 32 - ., F. [5 806] Right to Counsel The claimant has a right to representation by legal or other counsel at his own expense at any and all stages of the proceedings set forth in Sections 801 through 808. G. [5 807] Judicial Review Nothing in these Rules and Regulations shall in any way preclude or limit a claimant from seeking judicial review or receiving a fair and impartial consideration of his claim on its merits upon exhaustion of such administrative remedies as are available to him under section 802. - 33 - IX. [~ 900] ACQUISITION PROCEDURES A. [~ 901] Just Compensation Prior to the date of initiation of negotiations for the acquisition of real property, the Agency or its designee shall establish just compensation, which in no event shall be less than the Agency's approved appraisal of the fair market value of the property. This compensation shall in- clude recording fees, transfer taxes and prepayment penalties on existing liens and other similar expenses incidental to conveying such real property to the Agency. B. [~ 902] Initiation of Negotiations (1) Statement to be Furnished Owner. When negotiations for the acquisition of real property are initiated, the owner, shall be provided with a written statement concerning the pro- posed acquisition. This statement shall include, as a mini- mum, the following: (a) Identification of the real property and the estate or interest therein to be ac- quired, including the buildings, struc- tures, and other improvements on the land, as well as the fixtures consider- ed to be part of the real property; and (b) The amount of the estimated just compen- sation for the property to be acquired, as determined by the acquiring agency, and a statement of the basis therefor. In the case of a partial taking, damages, if any, to the remaining real property shall be separately stated. (2) Offer to Purchase. The Agency shall make a prompt offer to purchase the property for the amount contained in the statement. C. [~ 903] Appraisal Standards For the purpose of promoting uniformity, the Agency or its designee shall establish for all programs under its juris- diction, standards for appraisals used in such programs, criteria for determining the qualifications of appraisers, and a system of review by qualified appraisers. - 34 - D. [5 904] Contracts to Purchase Real Property Contracts or options to purchase real property shall not incorporate provisions for making payments for reloca- tion costs and related items. Appraisers shall not give consideration to or include in their appraisals any allow- ance for these benefits. In the event of a condemnation action, the estimated compensation shall be determined solely on the basis of the appraisal value. - 35 -