Transcript IRWA
Monitoring the URA
Jana Bickel
HUD Relocation Specialist
Southern California
[email protected]
213-534-2581
Recent monitoring has uncovered serious
findings that involve time consuming
resolution and unnecessary repayments.
Problems can be resolved with proper training
and management
If monitoring issues not addressed:
◦ Risk of reduced funding
◦ Further liability for repayment of misspent funds
◦ Tarnishing of professional standing
Demystify the monitoring process
Communicate common findings and
concerns
Communicate consequences of not properly
complying with the URA
Provide management strategies to avoid
problems in the future
Certifications -49 CFR 24.4 (A)
State agency provides assurances it will
comply with URA
Monitoring- 49 CFR 24.4 (B)
◦ The Federal Agency monitors URA compliance
◦ The State Agency shall take whatever corrective
action is necessary to comply with the URA.
◦ The Federal Agency may apply sanctions in
accordance will applicable program regulations
Prevent Fraud Waste and Mismanagement
49 CFR 24.4 (C)
Were property owners treated fairly and paid the
appropriate amount for their property.
Did everyone being displaced receive the amount of
relocation assistance they were entitled to.
If someone did not get paid, why not, can the decision not
to pay benefits be supported
Do records support that the amount paid is correct?
Was there any fraud, waste or mismanagement
◦ Ineligible costs
◦ Ineligible persons
◦ Amount paid supportable
If there are several findings, what happened and how can
we prevent it from happening in the future.
Is the Agency receiving funds managing the
acquisition/relocation prudently
Monitoring Process
Priorities in Monitoring
Grant Recipient Preparation for
Monitoring
Common Review Areas
Types of Findings
Solutions
Funding agency i.e., HUD
◦ Selects a grant recipient/sponsor/other agency to
review
◦ Makes a planning call
◦ Sends an official notification
◦ Participates in an opening conference
◦ Conducts the monitoring
◦ Communicates the results of the review in an exit
conference
◦ Sends a monitoring Letter
◦ Resolves issues in post monitoring
Risk assessment process
◦ Determine which grant recipients that carry out the most
acquisition/relocation
◦ Determine which grant recipients that do the largest
projects ($$$)
◦ Review reports
Project and program descriptions
Past performance/previous monitoring
◦ Staff capacity
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Experience with acquisition/relocation
Newness/past experience
Review any current high profile issues
Review status and nature of complaints
Review time elapsed since last monitoring
Review travel considerations
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Call project manager
Intent to monitor
Establish time and place for opening conference
Talk about specific projects
Availability of Files
Staff that will need to be involved
Possibility of Site Visit
May ask for some information about project prior to
the start of the review
Letter to be sent out approximately 30 days
before the review
◦ Sets day, time and place opening conference
◦ Sets parameters of the review (what programs,
acquisition only, relocation, or both
◦ States what projects will be reviewed
◦ States what sites will be visited
◦ States type of documents/files to be reviewed
◦ Establishes time period for the review
◦ Requests staff and space to be available staff
Notify agency head of time and scope of
monitoring
Make sure all knowledgeable staff is available
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Admin
Finance
Project Managers
Directors
Consultants
Provide Summary reports if requested
Make sure files are available
Review files
Arrange any site visits
Head agency officials and all staff involved in
the review should attend
Monitor will explain
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Programs to be reviewed
Laws that apply
Areas and projects to be monitored
Types of files needed for the review
Site visits to be made
Review process
Findings and Concern
Letter and timeframes for response
Interview staff
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Program
Finance
Redevelopment staff
Planning staff
Review files
◦ Grant recipient project files, tenant files, real estate files
◦ Consultant Files
◦ Finance files
Meet with Developers or Consultants
Review URA regulations and any program rules that apply
Review local ordinances that may apply
Discuss probable findings
Photocopy documents
Make site visit(s)
Generally held at grant recipient’s office but
could be over the telephone.
Request attendance by high level officials
Describe findings and concerns
Make future suggestions
Provide opportunity for grant recipient to
comment
Discuss possible follow up
Discuss any staff training needs
Provide timeframes for response-30 days
Will be addressed to authorized grant
recipient official
Will describe the scope of the review
Will describe the project
Will describe findings and concerns
Will mandate corrective actions and/or
sanctions
May make suggestions for the Future
Will provide timeframe for responding to the
review
Programs
Applicable Federal regulations
Areas reviewed- acquisition, relocation,
finance
Projects
Site visits
Review limitations
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Name and address
Funding source and amount
Activities
Location
Number of parcels
Number of buildings or units
Number of persons displaced
Finding is a violation of a law while a concern is a
serious problem that could result in a violation
Elements of the finding
Regulatory citation
Statement of situation
Finding
Corrective Action
Action needed to fix the problem
Could involve a future sanction
Concern
Recommendation
Cause and Effect
Why did it happen
How can we prevent future findings
Are there management or capacity issues
Improve documentation
Re-contact property owners to reassess
property value and pay property owners
additional funds
Re-contact tenants or homeowners and pay
them additional funds
Reimburse HUD for ineligible costs
Develop better management strategies
Train staff
Impose special review procedures
Barred from future funding
Refer to Inspector General (IG)
Frequent monitoring
Review grant recipient response
Clearance of findings and concerns may be
prolonged
◦ Re-contact of owners/tenants
◦ After the fact documentation
Other issues may arise
Lengthy resolution could result in another
monitoring
Acquisition Process
Relocation Process
Financial Process
Record Keeping
Overall Management
◦ Voluntary Acquisition
Exempt status documented
Letter to Seller sent
Evidence of value and purchase price are consistent and
supportable
◦ Involuntary Process Followed
Notices of Intent/Notice to Appraise
Evidence of Negotiation Process
Invitation to accompany the appraiser
Offers of Just Compensation and Amount Paid for Property
is consistent
Appraisal
Review Appraisal
No evidence of coercion
Out of Court Settlement
Condemnation Process
Identification of all displaced persons
All appropriate notices sent
Advisory services provided
Claims were paid to property persons in the proper
amount
◦ Fair process
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Payments were eligible
Cost was reasonable
Payment was received
Accounting can be traced
Conflict of Interest resolved
Financial regulations followed
49 CFR 24.9 requires that an grant recipient
◦ Maintain adequate records of its acquisition and
displacement activities in sufficient detail to
demonstrate compliance with this part” *
◦ Keep records three years from final payment or
other applicable date
◦ Federal Agency may have other requirements
(For HUD projects see HUD Handbook 1378-Section
(6-1)B.
For other regulations, see their policy or handbook.
Project Files
Acquisition Files
Relocation Files
◦ Homeowner
◦ Residential Tenant Files
◦ Business Relocation Files
Project Parameters
Occupant Lists
Relocation Plan
Status of Payments
Special Policies
◦ Decent, Safe and Sanitary/Housing Codes Used
◦ Occupancy
Application- set date for the General Information
Notice
Program agreements- (for voluntary acquisition
defines ION and date notices of eligibility should
go out)
Description of Project
List of project activities
Map establishing project boundaries-
List of all funding sources (HUD sources, other
◦ Number, size, type of units in the project
◦ Resident/business
◦ Vacant/occupied -any recent departures
◦ Type
◦ Timeframe
◦ Identify phases
◦ Identify all the parcels
Federal, state, local)
Names of All Occupants and Date of Occupancy
◦ At time GIN should have been issued
Letter to Appraise
Purchase agreement
Application for Federal benefits
Publication of Plan
Public Announcement
◦ At the time NOE was issued or should have been issued
Offer of Just Compensation
Executed agreements
◦ At activity completion
Status of Occupants
◦ Displaced
◦ Not displaced
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**Check Federal Agency rules regarding notice dates,
Review occupant names against list of payments
Names of persons who received benefits?
Type and amount of Benefits
Status of payments (Completed or still in process)
If person not paid, why not
Shows the process used
Project Data is Consistent with other
documents
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Location
Number and type of units
Number and type of persons displaced
Comparable units available
Relocation estimate
Payment information seems correct
*Conforms to URA guidance
Check with Federal funding Agency
Legal residency/exceptions
Occupancy policy
Appeals
Income determination
Tenant Determinations of Eligibility
Inspections
Original Ownership -Title Insurance/deed
*Letters regarding purchase
*Proof of value
◦ Voluntary Letter
◦ Offer of Just Compensation
◦ Offers, counteroffers,
◦ Appraisal (Amount, date, purpose, limitation, project data,
highest/best use, qualifications
◦ Review appraisal (basis, qualifications, opinion)
◦ Other evidence of value if acquisition is voluntary
Purchase Agreement
Justification for Amount Paid/Out of court settlements
Condemnation Documents/Final Court Settlement
Proof of Purchase/escrow documents/wire transfer
Deed showing title transfer
Notices
Other Correspondence
Intake Form
Advisory Assistance
Calculation of Payments
Documentation of RHP
Proof of Income
Down payment Assistance
Special Determinations
Inspection
What types of notices were sent?
Were notices correctly worded?
◦ *Legal residency requirement
◦ If standard notice not used, what language
was changed
When were notices sent?
*Is proof delivery/receipt in the file?
Were notices provided in another
language
Information about the residents
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Use HUD or other agency form
Head of household and other household members
Estimated income
Date first rented unit
When they moved out
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Type of Unit
Number and types of rooms
Amenities
Amount of rent
Type of Utilities
Information about unit
Log with highlighting actions taken or
conversations
Specific log of advisory assistance
◦ Needs and Preferences
◦ List of regulatory items (49 CRF 24.205©
◦ Types of assistance received- match up with needs
and preferences
Claim Forms
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Use HUD or other Federal Agency form
Legal residency certification
Signed, filled out completely, amount is correct
Form modified or specially designed may be missing key
information
Proof of Payment
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Cancelled Checks
Signed receipt
Wire transfer
Agrees with claim form
Actual receipts
Fixed Rate schedule and # rooms
documented on intake form
Special determination
Bids
Rent (displacement, comparable, replacement)
◦ Leases, receipts
Utilities (displacement, comparable,
replacement)
◦ Receipts or statement from utility company (last 12
months if possible)
◦ Utility Schedule (last resort)
Correct schedule- in effect at time of relocation
Correct entity- location of displacement unit
Type of utilities can be validated
Comparability Form
Income received in last year
From everyone in household over 18
Types of Income
◦ Wages (wage statement, tax returns)
◦ Self employment (tax returns or self certification)
◦ Pensions (SSA, SSI, VA, government pensions,
private pensions)
◦ State unemployment, disability
◦ Interest on income (savings account, etc.)
◦ Income from family or friends
◦ Other
Purchase agreement
Final closing documents
Payment to escrow company
Deed transferring property
Deed showing ownership
Notices
Mortgage amount on current property
◦ Amount, # of payments
◦ Special provisions
Advisory services
Comparable HousingReplacement Property
Special Determinations
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Written offer to purchase and/or purchase agreement
Incidental Costs
Closing documents
Deed recording property transfer
Inspection
◦ Form signed and dated by inspector
◦ Clearly shows address of unit inspected
◦ Addresses decent safe and sanitary items shown in
49 CFR 24.2 (a)(8)
◦ If replacement unit doesn’t meet standard
List of non standard items and opportunity to bring
them up to standard in reasonable time frame
response in time frame
Details about business- name, type of business,
tenant name
Survey of relocation needs and URA advisory
assistance elements addressed
Appraisal or other Inventory of Equipment
Claim forms
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Moving estimates, receipts, bids
Re-establishment and searching expenses
Alternated Fixed Payment
Certification of legal residency
Proof of Payment
Proof Payment made for eligible items
Necessary and appropriate determinations
Involuntary Acquisition
◦ Review appraisal does not meet standard
Voluntary Acquisition
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Acquisition is not exempt but treated as if it were
No letter to seller
No proof of value of property in file
No determination as to the amount paid was
different than property value or was reasonable
amount
Notices
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Not sent out soon enough
Don’t contain proper wording
No evidence that notice delivered
No evidence that everyone received a notice
Insufficient documentation of replacement housing payments
◦ Rent and Utilities
◦ Income not explained/documented
No documentation of unit comparability
No documentation of why some tenants weren’t paid relocation
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Moved without being paid and no explanation in file
Eviction procedures not followed or not documented
Lack of special determinations
Lack of legal residency is not established
Homeowners not identified as eligible for relocation
Business Relocation
Inappropriate use of waivers
◦ Advisory services not documented
◦ Use of global agreements that do not specify eligibility of relocation costs
◦ No inventory of personal property
References to state rather than Federal Law
◦ Assumption of voluntary acquisition
◦ Timing and wording of notices
Lack of relocation planning
Multiple funding sources- Federal funding late in the
project
Resources not consulted (Regulations, agency policy,
agency staff)
Overall Management
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Lack of management attention to the process
Flawed organizational structure
Lack of a system of review
Consultant files not reviewed
Lack of procedures or resources
Inexperienced staff or consultant
Establish a system for managing the
acquisition and relocation process.
Check with HUD or other funding agency to
review ambiguous situations
◦ Technical Assistance- early in planning stage
◦ Training
Appropriate staffing for acquisition and
relocation projects
Relocation Planning
Review process for each stage in project
File Management
Resource Maintenance
Review process consultants/other third
parties
Develop internal procedures for managing
acquisition and relocation process
◦ Who are the staff assigned to the project
Who is responsible for URA compliance ( A specialist or a
finance/project manager)
Is there supervision by other staff.
Are they knowledgeable about acquisition and relocation
Are they knowledgeable about HUD program
requirements
Do they have multiple duties
Do they have resources (regulations, handbooks)
Have they been trained
◦ Are various sub departments involved in projects
involving acquisition and relocation and how well do
they work together
Do they have separate staff and operational procedures
Do they share common directors
Start planning process early
Identify funding sources
Determine what laws apply
Identify project boundaries, activities, timeline
Determine who will be displaced
Estimate cost of relocation
Is project still feasible
Determine funding source for payment
Can relocation be minimized?
Determine timeline for relocation activities (notices,
interviews, payment, etc.
◦ Bring on experts early
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◦ Notice of Funding Available or Request for
Proposal
◦ Application
◦ Project Approval
◦ Project Implementation◦ Closeout
Notify applicants
what laws they will have to comply with
URA, other Federal laws, program regulations
What documents they have to submit
Voluntary letter
Evidence of property value
Site control
Acquisition documents
◦ Voluntary- voluntary letter, proof of value
◦ Involuntary process followed
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list of occupants
Preliminary estimate of costs
Agency that will carry out relocation
Funding source for relocation
General information notices
◦ Complete final Relocation Plan
◦ Establish management review process
◦ Determine status of occupants
◦ Plan interview process
◦ Set up Noticing
Determine what notices to send
Finalize wording
Set up delivery procedures
Timing for Delivery
◦ Set up implementation procedures
Reporting
Review payments
Review documentation
Delivery of Notices
Conduct Interviews
Calculate Payments
Files Claims
Made payments
Implement review process
Acquisition files complete
Relocation Files Complete
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All payments made
Special determination
Amount paid is supported by documents
Special determinations made
Files organized
Location -Keep the files at your office
Establish organizing principles
◦ Separate acquisition and relocation
◦ Use of tabs for:
Intake Form
Notices
Claims
Support for RHP Paid (rent, utilities, income)
Documenting determinations
Payments
Advisory Assistance
◦ Chronological Order Within Tabs
◦ Use check Lists
Grant recipient should contract directly with consultant
Select consultants based on the following
◦ Directly provide guidance and monitor performance
◦ Experience
Experience with the City/project area
# Years experience with relocation (professional designation)
Experience with the type of relocation involved (homeowner, tenant,
business)
Experience with funding agency programs
Experience with relocation of that size
◦ A complete bid that includes:
All appropriate advisory assistance
Complete claims process including file documentation
Addresses follow-up provisions
If based on hours, review reasonableness
Accurate basis for comparison of services
◦ Use required procurement procedures
Bring on early in the process
Designate a lead person for Acquisition and
Relocation with responsibility to maintain
resources
Maintain hard copy and/or computer copy for
staff to easily access
Maintain the following:
◦ URA statutes and regulations
◦ FHWA Questions and Answer
◦ Federal Agency program rules, handbook or policy
guidance
◦ List of Federal agency staff
◦ Internet resources
◦ Internal Procedures
Establish agency policy
◦ Legal residency exceptions
◦ Occupancy standards
Establish staff responsibility for managing
acquisition and relocation process
Direct staff on how to complete reviews of
project at each stage
◦ Check lists
◦ Sample letters
Direct staff how to process claims
Direct staff on making special determinations
Direct staff on how to set up files
Resource to assist new staff
Monitoring Preparation Starts with Planning the Project
Be proactive-do it right from the beginning
Keep good records
Why prepare
◦ Train staff and/or consultants
◦ Have procedures to review projects at every stage in project development
including close out
◦ Complete- including special determinations
◦ Well organized- documents can be easily located
◦ Able to follow the audit trail
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Avoid
Avoid
Avoid
Avoid
Avoid
findings
time consuming, expensive follow-up
trying to find funds after the fact
lawsuits
having future problems
Lengthy monitoring resolution
Increased costs/unnecessary reimbursement
Funding rescinded