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 ◦ ◦ ◦ ◦ 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 ◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦ 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 ◦ ◦ ◦ ◦ ◦ 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 ◦ ◦ ◦ ◦ ◦ ◦ 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 ◦ ◦ ◦ ◦ 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 ◦ ◦ ◦ ◦ ◦ ◦ ◦ 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 ◦ ◦ ◦ ◦ 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 ◦ **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 ◦ ◦ ◦ ◦ ◦ ◦ 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 ◦ ◦ ◦ ◦ ◦ Use HUD or other agency form Head of household and other household members Estimated income Date first rented unit When they moved out ◦ ◦ ◦ ◦ ◦ 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 ◦ ◦ ◦ ◦ 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 ◦ ◦ ◦ ◦ 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 ◦ ◦ ◦ ◦ 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 ◦ ◦ ◦ ◦ 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 ◦ ◦ ◦ ◦ 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 ◦ ◦ ◦ ◦ 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 ◦ ◦ ◦ ◦ ◦ 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 ◦ ◦ ◦ ◦ ◦ ◦ 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 ◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦ 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 Relocation◦ ◦ ◦ ◦ ◦ 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 ◦ ◦ ◦ ◦ 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 ◦ ◦ ◦ ◦ ◦ 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