504PPT.R4.2014.09.02.0.0

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Course 504Computing Replacement

Housing Payments

Welcome to the

International Right of Way Association’s

Who we are…What we do…

Where we do it…

How long we’ve been doing it…

Our goals for the course...

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Introductions

Objectives (1)

At the conclusion of the two days, you will be able to...

• Understand better the processes involved in computing various replacement housing payments using realistic, complex situations

• Build on current knowledge and implement better the Uniform Act provisions; specifically:

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Objectives (2)

• Recognize the importance of collecting the pertinent information at the interview stage

• Compute replacement housing paymentsfor less than 90 day occupants

• Compute replacement housing paymentsfor 90 day occupants

• Compute replacement housing paymentsfor 90 day homeowner occupants

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Housekeeping

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ScheduleDay 1

8:00 - 8:30 Introductions, Etc.

8:30 - 9:45 The Project

9:45 - 4:45 Rental Assistance Calculations

4:45 - 5:00 Recap Day One

Day 2

8:00 - 8:15 Recap Day One / Introduce Day Two

8:15 - 2:00 Price Differential Calculations for Owner Occupants

2:15 - 3:45 Other Replacement Housing Payment Calculations

3:45 - 4:00 Summary and Review

4:00 - 5:00 Exam

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The Uniform Relocation Assistance and Real Property Acquisition Actof 1970 and the Surface Transportation and Uniform Relocation Assistance Policies Act of 1987.

49 Code of Federal Regulations, Part 24, Uniform Relocation Assistance and Real Property Acquisition for Federal and Federally Assisted Programs.

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1. Does the comparable have to contain at least four bedrooms?

2. Does the comparable have to be in the Hutchinson School District?

3. Determine the Campbell’s base monthly rent.

Gregg and Betty Campbell

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1. Discuss the various factors that determine the income (e.g., each source and whether or not

it should be included in the monthly total).

2. Calculate the income you will use to prepare the rental assistance payment calculation.

3. Review the following subject dwelling grid and the only three similar dwellings that are

currently available for rent in the area. Choose which of the three rentals you will use as your

primary comparable (the one used to calculate the benefits). Write a brief but thorough

paragraph to the agency justifying why you chose that dwelling and not one of the other two.

Samantha (Sam) Collins

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1. Calculate the base monthly rent you will use to prepare the rental assistance payment.

Frank Carpenter

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Mabel Chinsky, et al

1. How many households will be entitled to benefits from this

dwelling?

2. How does the daughter’s transportation issue affect the

relocation calculation?

3. Does Moses Hubble’s situation affect Mabel’s calculation?

(24.403(a)(5))

How many bedrooms must the

comparable have?12

1. How many bedrooms is the comparable required to have?

2. What income will you use when applying a financial means test?

3. What would happenif you knew in advance that Sharon and Amy intended to move to a different replacement than the others?

Steven Hamilton andSharon Cook

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1. What replacement housing benefits are Gavin and Amanda eligible to receive?

2. Compute the rental assistance payment, based on a comparable that rents for $875/month plus utilities of $160/month.

Gavin and Amanda Martin

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Day One Recap

We...

•Looked at the importance of collecting the pertinent information at the interview stage

•Spent most of the day working on a case study and computing replacement housing payments for less than 90 day occupants and for 90 day occupants

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Day Two

Today, we will...

Compute replacement housing payments for 90 day homeowner occupants

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1. What benefits should be calculated for the Anders?

2.If the offer has not been made, does the amount of time required to calculate, review and receive approval influence your answer?

3.How does Ashley’s partial interest in the subject affect the calculation?

Adam and Ashley Anders

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4. Must the comparable have three bedrooms? Why or why not? Does the use of the dark room as an income generator influence the comparable selection?

5. Under what logic might you select each of the listings?

6. The recommended price differential calculation should be based on Listing No. ___

Adam and Ashley Anders

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7. Calculate the price differential payment based on Listing No. 2.

8. Based on your calculation, what must the

Anders spend to receive the maximum price differential payment?

9. What happens if nothing D. S. S.is available for the amount theAnders must spend?

Adam and Ashley Anders

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1. The replacement housing payment calculation should be based on Listing No. __

2. What factors did you consider most important when making your selection?

3. How many bedrooms must the selected comparable have to calculate the price differential payment?

Derek and Elizabeth Rush

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4. Calculate the maximum price differential for the Rush family.

5. If this parcel went to eminent domain and they received $100,000 just compensation, how does this effect the maximum price differential payment?

Derek and Elizabeth Rush

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1. What would you look for in a comparable from which to calculate the Goldmans’ maximum price differential?

2. The relocation agent could not find a handicap accessible home. The agent received the following contractor estimates:

Acme Remodeling $5,800 Able Home Repair $6,500 Fix It Quick $7,500

Calculate the price differential for the Goldmans.

Veronica and Samuel Goldman

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3. Would you present the Goldmans with a maximum

price differential that consisted of a single

relocation amount (based on a combination of the

price differential and the modifications) or two

amounts (one for the price differential and a

second for the modifications) or the price

differential plus paying for the actual cost of

modifications to the replacement?

Veronica and Samuel Goldman

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1. Discuss the concept of major exterior attributes. When should an item be carved out? What are reasonable trade-offs?

2. Is the kitchen in the garage or the alarm system an

“exterior” attribute? If not, can they be carved out if they are not contained in any of the available listings?

Isaac and Ruth Spellman

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1. The most appropriate is Listing No. __

2. How should you proceed?

Jorge and Maria Gomez

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1. Determine the fair market value you would use to calculate the price differential payment if the

agency did not offer to acquire the entire property.

2. Would the fair market value used in the calculation differ if the agency

offered to acquire the entire lot and the owner did not wish to sell? Explain why or why not?

Jeff and Pamela Gordon

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Mortgage Interest Differential

A. Required Information

B. Development of Revised Principle Balance Figure

C. Development of Increased Interest Figure

D. Amount of Total Mortgage Interest Differential Payment

Derek and Elizabeth Rush

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Compute the incidental expenses

Isaac and Ruth Spellman

Objectives (1) Now, you are able to...

• Understand better the processes involved in computing various replacement housing payments using realistic, complex situations

• Build on current knowledge and implement better the Uniform Act provisions; specifically.

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Objectives (2)

• Recognize the importance of collecting the pertinent information at the interview stage

• Compute replacement housing payments for less than 90 day occupants

• Compute replacement housing paymentsfor 90 day occupants

• Compute replacement housing payments for 90 day homeowner occupants

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Thank you!

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504PPT.R4.2014.09.02.0.0