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83-17333 RESOLUTION NUMBER 83-17333 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND ADOPTING A RELOCATION POLICY TO BE APPLICABLE TO THE CITY'S COMMUNITY DEVELOPMENT FUNDED MULTI-UNIT RESIDENTIAL REHABILITATION PROGRAM AND/OR RENTAL REHABILITATION PROGRAM DEMONSTRATION. WHEREAS, the City of Miami Beach approved the Multi-Unit Residential Rehabilitation Program on March 18, 1981 by Resolution Number 81-16603; and WHEREAS, the City Commission approved the requirements for implementation of HUD's Rental Rehabilitation Program Demonstration on October 6, 1982 by Resolution Number 82-17142; and WHEREAS, an essential precept of both programs is to rehabilitate rental properties at a reasonable cost with minimum involuntary displacement of tenants; and WHEREAS, a tenant assistance strategy or relocation policy is required by federal regulations; and WHEREAS, the City Commission deems it to be in the best interest of tenants affected by rehabilitation activities that the Relocation Policy be adopted; NOW, THEREFORE be it duly resolved by the City Commission of the City of Miami Beach, Florida, that the Policies for Relocation Payments and Assistance of Tenants Under CDBG Rehabilitation Programs are hereby approved and adopted. PASSED AND ADOPTED this 4th day of May, 1983. MAYOR ATTEST: ,!ice-;,_p CITY CLERK GAK:JEF:an F c.; ' ° {` 1) 4/ 2 �3 • • CITY OF MIAMI BEACH POLICIES FOR RELOCATION PAYMENTS AND ASSISTANCE OF TENANTS UNDER THE REHABILITATION PROGRAMS I. PURPOSE The purpose of this document is to provide a policy statement outlining relocation payments and assistance available to residents that may be either temporarily relocated or permanently displaced as a result of rehabilitation of a building under the City's Community Development funded Multi-Unit Residential Rehabilitation Program and/or Rental Rehabilitation Program Demonstration, activities not subject to the Uniform Relocation Assistance and Real Property Acquisition Act of 1970. 2. ACTIVITY COVERED UNDER PLAN The following activity is covered under this plan: Residential rehabilitation, whenever CDBG funds are paid to a private lending institution and a borrower as an interest subsidy payment for rehabilitation of a multi- unit building, and when it has been determined by the City that rehabilitation cannot be reasonably undertaken without necessitating the temporary relocation or permanent displacement of residential tenants. 3. TYPES OF TENANTS COVERED UNDER PLAN (ELIGIBILITY) The following types of residential tenants are eligible for assistance under this plan: A. Residential Tenants Who Occupy Residential Living Units - Tenants who have occupied a residential living unit for a continuous period of at least 60 days prior to the date that the owner or buyer receives an acceptable written funding commitments, from a participating lending institution, to carry out the rehabilitation work under the City's rehabilitation programs; and B. Residential Tenants Who Occupy Non-Residential Units On An Annual Basis - Tenants who have occupied a non-residential unit for a continuous period of at least 60 days of a yearly lease prior to the date that the owner or buyer receives an acceptable written funding commitment from a participating lending institution. The rental must be evidenced by a current executed lease between the owner and the tenant which will be in effect during the scheduled rehabilitation period. Exception: An eligible residential tenant who can show proof, through rental receipts or other documents, of having occupied a non- residential unit for a continuous period of at least 12 months of a year's lease prior to the lender's commitment to carry out the rehabilitation work will be considered a residential tenant covered under this plan. (See definitions for non-residential unit). 4. PERSONS OR OTHER ENTITIES NOT COVERED UNDER PLAN A. Owner-Occupants - The policies in this plan do not apply with respect to owner-occupants. Owner-occupants who enter into rehabilitation activities are assumed to be acting voluntarily in their best interest, and are not eligible for relocation payments or assistance under this plan. B. Tenant Businesses or Non-Profit Organizations Which Rehabilitate and/or Lease Premises - Tenant businesses or non-profit organizations which lease and/or occupy a building, or any portion thereof, intended to be rehabilitated, are not eligible for relocation payments or assistance. C. Business Concerns and Other Entities Not Specifically Set Forth In This Plan - Business concerns and other entities not specifically set forth in this plan, are not eligible for relocation payments or assistance. D. Tenants Who Waive Rights To Relocation Payments or Assistance - A fully informed tenant may waive relocation assistance by filing a duly executed waiver with the Community Development Division of the City of Miami Beach. A fully informed tenant may also waive (his) 1 • (her) rights to relocation payments and assistance by: i) Refusing to file a claim for such payments within the time period allowed; or ii) moving from the tenant's present place of residence without notifying the Community Development Division; provided, the tenant has received notice from the City advising the tenant not to move without notifying the City. E. Residential Tenants, Transients, or Tourists Who Occupy Non-Residen- tial Units On Less Than An Annual Basis - They are not eligible for relocation payments. Such persons, however, will receive appropriate advisory services necessary to minimize hardships in adjusting to the required permanent or temporary relocation. F. Residential Tenants Who Are Evicted For Cause - The only acceptable circumstances under the City's rehabilitation programs where a person may be evicted for cause are: i) The failure to pay rent, unless the failure to pay is based upon the owner's failure to keep the premises in habitable condition; or ii) maintenance of a nuisance or use of the premises for illegal purposes; or iii) a material breach of the rental agreement; or iv) the eviction is required by State or Local law and beyond the control of the local government. S. DEFINITIONS A. Permanent Displacement - It occurs when a tenant moves from his/her present place of occupancy in a building scheduled for residential rehabilitation activities, and takes occupancy in a building unrelated to the building under rehabilitation and not belonging to the rehabilitation applicant. In addition, there must be no apparent intention on the tenant's part to re-occupy his/her former place of occupancy. B. Temporary Relocation - Temporary relocation occurs when a tenant, with proper notice to and with the knowledge of the owner and the City, voluntarily moves to and occupies another unit in a building unrelated to the building under rehabilitation and not belonging to the rehabilitation applicant, until work on the tenant's unit is completed and the tenant can return to the building. Temporary relocation does not occur when: A residential tenant temporarily moves to another unit in the same building or group of buildings encompassing the rehabilitated project, or to other buildings owned by the same owner in the immediate neighbor- hood of the rehabilitated building when the owner provides the tenant with safe, decent and sanitary housing, at no increased rental, utility, moving costs or reasonable out-of-pocket moving expenses during the relocation period. Such a move may not exceed a period of 6 months. (If the temporary period will exceed 6 months, the tenant may ask th' City to provide displacement assistance and the City will consider the request). C. Residential Tenant - A tenant who maintains a single housekeeping unit regardless of the number of people in the household. A single person can qualify as a household under this definition. D. Non-Residential Unit - A non-residential unit: 1) Lacks complete living, sleeping and eating facilities within the unit, i.e. a stationary stove with at least two top burners, refrigerator and a kitchen sink; and/or 2 • • ii) does not contain complete bathroom facilities in a separate enclosed room accessible to, and available for the exclusive use of the occupants of that unit only; and/or iii) substantially fails to meet the definition and requirements for a dwelling unit under the City's Minimum Housing Ordinance including floor area requirements; and iv) is occupied on less than an annual basis. 6. SCHEDULE OF BENEFITS (RELOCATION PAYMENTS AND ASSISTANCE) There are two schedules of benefits available to residential tenants covered under this plan. Schedule A applies to residential tenants who earn less than 80 percent of the median income of the community. Schedule B applies to residential tenants who earn more than 80 percent of the median income. Both schedules are attached to this plan as appendices. 7. GENERAL PROVISIONS APPLYING TO ALL RESIDENTIAL TENANTS COVERED UNDER PLAN A. Procedures For Implementing Plan: The Community Development Division of the City of Miami Beach shall be responsible for developing and overseeing the implementation of this plan. It will issue all required notices, make relocation payments available to tenants and make referrals for required services. B. Timely Information: The tenant shall be contacted personally and in writing, and provided information that fully explains the reason for the displacement and the relocation assistance available to him/her. C. Advisory Services: The tenant shall be provided appropriate advisory services necessary to minimize hardships in adjusting to the relocation. D. Advance Notice: Unless there is an urgent need for the property (e.g., substantial danger to health or safety) or the tenant is evicted for cause, the tenant shall be given at least 30 days advance notice in writing of the earliest date by which he/she must permanently vacate the property. Such notice shall be accompanied by appropriate referrals to a comparable replacement dwelling. E. Definition of a Comparable Replacement Dwelling: A comparable replacement dwelling shall be: i) Decent, safe and sanitary housing in conformity with local codes and HUD's housing quality standards. ii) Available at a monthly housing cost (rent and utilities) that does not exceed 30 percent of the gross income of all members of the tenant's household who are 18 years of age or older. iii) In an area that is not subject to unreasonable adverse environmental conditions; is not generally less desirable than the location of the displaced person's dwelling with respect to public utilities, commercial and public facilities; and is reasonably accessible to the person's place of employment (or to sources of employment, if the person is unemployed, but seeking work). iv) Functionally equivalent to and substantially the same as the vacated unit with respect to the number of rooms, area of living space and amenities. F. Grievance Procedure: Grievance Procedures will be developed and followed by the City's Community Development Division for any griev- ances regarding adequate replacement housing and eligibility, or the amount of payments to claimants. 3 • • G. Automatic Eligibility for Relocation Assistance: If Block Grant funds are released for a project, and any of the commitments to a tenant under the preceding sections are not met, the tenant shall automatical- ly be eligible for the full amount of relocation payments and other relocation assstance that is available to displaced tenants under this plan. The City shall immediately acknowledge this right by issuing the tenant a written notice. If the City does not issue the written notice, the tenant must file an appeal with the City within three (3) months after his permanent move from the property. H. Payment by City Final: Once a relocation payment has been paid to a displaced tenant in accordance with this plan (subject to the tenant's right to appeal the amount of the payment), that tenant will not be entitled to any further relocation payments. I. Unique Displaced Tenant Situations: Such situations will be determined by the Community Development Division staff based on the general intent of the Uniform Relocation Act. 1/14/83 4 SCHEDULE A REQUIREMENTS FOR PROTECTION OF RESIDENTIAL TENANTS WHO EARN LESS THAN 80% OF THE MEDIAN INCOME 1. PERSONS COVERED UNDER PLAN These requirements (Schedule A) apply only to eligible residential tenants who earn less than 80 percent of the median income of the City of Miami Beach, and who may be either permanently displaced or temporarily relocated as a direct result of the activity covered under this plan. 2. RESIDENTIAL TENANTS PERMANENTLY DISPLACED Each residential tenant who earns less than 80 percent of the median income of the community, and who is required to permanently move as a direct result of a project assisted under the City's rehabilitation program, shall be entitled to assistance in accordance with the following policies: A. Moving Expenses. The tenant shall be reimbursed for the reasonable cost of his/her moving and related expenses. The tenant will have the option of selecting a flat $250.00 payment for an unfurnished unit and $1755 for a furnished unit, or a payment based on actual documented moving expenses incurred and paid, or obligated to, a licensed moving company. There is no limitation on the amount of actual (documented) moving expenses. However, if the moving costs exceed $500.00 the tenant must receive competitive estimates from at least three professional licensed moving companies, with the contract let to the lowest estimating company, and with prior approval of the CD Division. B. Replacement Housing Assistance. No tenant earning less than 80 percent of median income shall be required to move unless he/she has been given a reasonable choice of opportunities to lease and move to a comparable replacement dwelling. (1) Section 8 Assistance. Where possible, eligible tenants will be offered a Section 8 Existing Housing Certificate of Family Participation. The Certificate will reduce the monthly housing cost (rent and utilities) to these tenants to 30 percent of their adjusted income. Accordingly, those who receive a Certificate and a reasonable choice of opportunities to move to a comparable replacement dwelling that is available from an owner willing to participate in the program, will not be entitled to a cash replacement housing payment. (see (2) below) (2) Cash Assistance. Tenants who do not receive Section 8 assistance and cannot afford comparable replacement housing (within 30 percent of gross income), shall be entitled to a lump sum payment computed in the following manner: (The payment may be used to rent or buy a replacement dwelling.) (i) Monthly rent plus utility costs at actual replacement dwelling (or amount at available, comparable replacement dwelling, if less costly) (ii) Thirty (30) percent of monthly gross income of all members of the tenant household who are 18 years or older (iii) Line (1) minus line (2) (iv) Twenty-four (24) times amount on Line 3, or $2,000, whichever is less 5 • 3. RESIDENTIAL TENANTS NOT REQUIRED TO PERMANENTLY RELOCATE Any residential tenant with a gross income less than 80 percent of the median income who is not required to move permanently in order to carry out rehabilitation of the building will be given an opportunity to remain in the building following rehabilitation with the following exceptions: - a tenant that is evicted for cause and, - a tenant that cannot remain in the building because an appropriate sized unit for the family composition will not be available for the tenant following rehabilitation. The tenant may remain in occupancy by one of the following methods: A. If the tenant is eligible for a Section 8 Existing Housing Certificate and the assistance is available, the tenant may be issued a Certificate of Family Participation and may continue in occupancy subject to the conditions of that program. If the tenant accepts the Certificate and makes arrangements with the owner to continue in occupancy following rehabilitation, the tenant will not be entitled to any other relocation payments under this plan unless the tenant must temporarily relocate during the construction period. B. If the tenant is not eligible for a Section 8 Certificate, or refuses the Section 8 assistance or the assistance is not available, and the tenant wishes to remain in occupancy following rehabilitation of the building, the tenant is responsible for negotiating with the owner the rental cost for the rehabilitated unit. However, if the tenant is not allowed to continue in occupancy for any reason except cause, or the tenant voluntarily decides not to continue in occupancy, the tenant may be considered a residential tenant to be permanently relocated (displaced) and be eligible for the relocation payments and assistance as described in the earlier section of this schedule. C. Temporary Relocation Housing. If temporary relocation is required in order to carry out the rehabilitation, the tenant shall be reimbursed for any increase in rent and utility costs in the temporary unit (the utility cost increase may be estimated), incurred in connection with the move. The housing offered for the temporary period shall be decent, safe and sanitary. If the temporary period will exceed 6 months, the tenant may ask the City to provide permanent relocation assistance and the City will consider the request. D. Moving Expenses. If temporary relocation is required, the tenant will be reimbursed for all reasonable out-of-pocket moving expenses. If the tenant must move to another unit in the same building or another building owned by the owner, the owner is responsible for assisting the tenant in the move and must reimburse the tenant for all reasonable out-of-pocket moving expenses. 4. PRIORITY USE OF SECTION 8 CERTIFICATES IN LIEU OF CASH ASSISTANCE In determining which tenants will have preference over other tenants for allocation of Section 8 Certificates, eligible tenants will be considered for assistance in the following order of priority: A. Tenants who earn less than 50 percent of the median income of the City of Miami Beach; and B. Tenants who earn more than 50 percent but less than 80 percent of the median income. 1/14/83 6 • • SCHEDULE B REQUIREMENTS FOR PROTECTION OF RESIDENTIAL TENANTS WHO EARN MORE THAN 80% OF THE MEDIAN INCOME 1. PERSONS COVERED UNDER PLAN These requirements (Schedule B) apply to residential tenants who earn more than 80 percent of the median income and may be either permanently displaced or temporarily relocated as a direct result of the activity covered under this plan. 2. RESIDENTIAL TENANTS NOT REQUIRED TO PERMANENTLY RELOCATE Each residential tenant who earns more than 80 percent of the median income will be given an opportunity to remain in the building following rehabilitation. The only exception will be those tenants evicted for cause, and those tenants that cannot re- occupy the building because of overcrowding of the unit. The owner will offer to lease to the tenant (for at least one year), a comparable replacement dwelling in the rehabilitated building. In this case, the 30 percent of gross income limitation, will not apply and no rental assistance will be provided. However, if the tenant voluntarily decides not to continue in occupancy, he/she may be considered a residential tenant to be permanently displaced and be eligible for the moving expenses payment as described in Schedue A, Section 2A. 3. TEMPORARY RELOCATION HOUSING AND MOVING EXPENSES The rules indicated in Schedule A, Sections 3C and 3D also apply to residential tenants who earn more than 80 percent of the median income, and are required to temporarily relocate as a result of an activity covered under this plan. 1/14/83 7