The HOME Program, HOME Regulations, the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, 42 U.S.C. 4201–4655, and implementing regulations in 49 CFR Part 24, and the California Relocation Assistance Act, Government Code Section 7260, et seq. and the implementing regulations in Title 25, Section 6000, et seq. of the California Code of Regulations (together, “Relocation Law”) establish the rights and obligations of state and local public entities relating to displacement of residents occurring as a direct result of the implementation of a public program or project.  The Relocation Law requires preparation, consideration and action on a relocation plan if displacement, whether temporary or permanent, might occur.  The City Council is vested with the authority to review and take action on the Relocation Plan.  The Relocation Law mandates a review period of at least 30 days prior to the City Council’s review and action on the Relocation Plan.

The City and Developer are negotiating the terms of the HOME Agreement for the Project that, if approved, will include Developer’s acquisition and substantial rehabilitation of an existing 78-unit housing development located near Euclid Street and Bolsa Avenue.  Staff anticipates presentation of the HOME Agreement to the City Council at the June 13, 2017 regular meeting; and, if the HOME Agreement is approved and implemented, the Project will require the temporary relocation of the existing residents during the Rehabilitation and may require the permanent displacement of a limited number of households.

In planning for the Project, the Developer and City have caused to be prepared a Relocation Plan under the requirements of the state and federal Relocation Law.  The draft Relocation Plan has been made available to the public for at least 30 days prior to this May 9, 2017 City Council meeting.  A complete copy of the draft Relocation Plan was provided to all of the existing households and copies were made available at the City Hall Public Counter, the Garden Grove Regional Library, and on-site at the Sycamore Court leasing office.  Also, a separate public notice was posted in various locations to inform the residents and community about the availability of the Relocation Plan and to encourage citizen participation, which included advertisements on Garden Grove Channel 3 and the City’s website, and posting of the Public Notice at City Hall, the Library, the City’s website, and on-site at Sycamore Court.

In compliance with the requirements of the Relocation Law, the Relocation Plan describes the temporary housing needs and resources and temporary relocation assistance and benefits that will be provided to the existing residents who will be required to move temporarily from their unit during the Rehabilitation, which will occur in phases, and the assistance and benefits that would be provided in the event any permanently displacement occurs in carrying out the Project.  Assistance and benefits will include payment or reimbursement for all reasonable out-of-pocket expenses incurred in connection with the temporary relocation, including the cost of moving to and from the temporarily occupied housing and any increase in monthly rent/utility costs.

Prior to making this Relocation Plan available to the residents and the public generally, all of the households at Sycamore Court received letters referred to as “General Information Notices” that explained generally the Relocation Law and the proposed Project.  And, during the 30-day review period for this Relocation Plan, each household also received a Notice of Non-Displacement letter because the Developer does not intend to displace permanently any household since the Project involves substantial rehabilitation and temporary relocation.  The Notice of Non-Displacement informed each household that they will not be displaced permanently by the Project, and if after receiving this information a household chooses of their own decision to move from Sycamore Court instead of making a temporary move then re-occupying their newly rehabilitated unit at an affordable rent, then that household would not be eligible for relocation assistance or benefits due to their voluntary move from Sycamore Court.

After the close of escrow on Developer’s acquisition of Sycamore Court (projected to occur in mid-to-late June), over the following six or more months all 78 housing units will be substantially rehabilitated in groups of five-to-seven units at a time until the full Rehabilitation is complete.  As each group of units is rehabilitated, residents will be required to move temporarily (and a few, if any, permanently) from the Project and all eligible expenses for each temporary move will be paid by the Developer as described in the Relocation Plan.  Due to the scope of Rehabilitation for the Project and the concern for each resident’s health, safety, and welfare, on a phased basis, the tenant households will be required to temporarily vacate their unit.  Temporary relocation is defined under the Relocation Law as displacement of twelve (12) months or less; but, here, residents will only be displaced from their unit for approximately seven (7) days; therefore, well within the timeframe for temporary relocation.

When completed the Project will be subject to new income restrictions, occupancy and other affordable housing covenants, including that every tenant must qualify as a low income or very low income household, with annual gross income at or below sixty percent (60%) of the Area Median Income (AMI) for Orange County for the “Low Income” units and at or below fifty percent (50%) AMI for the “Very Low Income” units.

The Relocation Plan was prepared by, and information for the plan was collected by a professional relocation consultant, Laurin Associates, retained by Developer; and, City staff and special counsel Stradling, Yocca, Carlson & Rauth, P.C. reviewed the draft Relocation Plan.  This Relocation Plan meets the requirements of the Relocation Law and is presented to the City Council for consideration and approval.  In connection with displacement, whether temporary or permanent (if such occurs), all eligible residents will receive assistance and benefits under the Relocation Law including:

1. Fair and reasonable relocation payments will be provided to eligible persons;
2. Eligible persons will be adequately informed of the relocation assistance, benefits, policies, practices and procedures, including grievance procedures, available to them; and 
3. Orderly, timely, and efficient relocation to comparable replacement housing, temporary or permanent, as applicable, will be made available to eligible persons without regard to race, color, religion, sex, marital status, or national origin with minimum hardship to those affected.

The total estimated costs to provide temporary relocation assistance and benefits and, (as and if applicable) permanent relocation assistance and benefits, for the existing households is estimated to be $220,044.  This amount includes estimated temporary relocation assistance and benefits for households that move out on a short-term basis while each group of the 78 units are rehabilitated, and permanent relocation assistance and benefits for a limited number, if any, of households who may be required to move permanently from the Project.  After City Council review and consideration of the HOME Agreement at the June 13 meeting, if approved, the contract requires all costs associated with relocation and full compliance with the Relocation Law as the sole financial responsibility of the Developer and will be paid by the Developer, not the City.

The estimated costs associated with implementation of the Relocation Plan under the Relocation Law and HOME Agreement, if approved, are $220,044.  All costs associated with relocation will be paid by the Developer and the HOME Agreement prohibits expending proceeds of the City HOME Loan of $1.2M for any relocation costs.

It is recommended that the City Council:

• Adopt the attached City Council Resolution approving the Relocation Plan; and

• Authorize the City Manager and his designees to implement the Relocation Plan.

By:  Nate Robbins, Sr. Program Specialist