Section 2. Real Estate Negotiations Real estate negotiations may be carried out by qualified members of the LPA staff or by experienced real estate brokers under contract. The LPA may contract for option negotiation services without HHFA concurrence, provided: (1) The compensation to be paid is (a) within the approved budget amount for such services, and (b) within the limitations prescribed below under the heading "Compensation." (2) The contract conforms to Form H-6148, Form of Agreement for Services of Real Estate Agent, and the provisions of this Section. (8) The LPA's records contain evidence that the contractor is qualified. (4) The contract is approved and authorized by the governing body of the LPA. COMPENSATION Fees for negotiation services shall be reasonable and proper and shall not exceed those cusomarily paid by other public agencies in the same locality for equivalent services. The compensation shall not exceed fees computed in accordance with the following schedule for offers to sell obtained by the negotiator and accepted by the LPA. Approved Valuation 1 Less than $500 $500 to $2,000 $2,000 to $5,000 $5,000 to $10,000 $10,000 to $20,000 $20,000 to $50,000 $50,000 to $200,000 $200,000 or more Maximum Compensation 5% of approved valuation $25 plus 3% of excess $70 plus 2% of excess $130 plus 12% of excess $805 plus 0.1% of excess 1 Approved Valuation as used in this schedule means the maximum acquisition price first concurred in by HHFA. If this price is subsequently revised, the revision shall not affect the amount of the fee to be paid. 13-2-2 LAND ACQUISITION If title to more than one parcel is in the same owner, the fee for all options obtained by the negotiator from that owner and accepted by the LPA shall be the amount of the fee provided by the schedule for the parcel having the highest approved valuation, plus one-half of the scheduled fee for each of the remaining parcels. No fee shall be paid with respect to any parcel acquired from: (a) The Federal government, the State, a political subdivision thereof, or any agency or instrumentality of the Federal, State, or local government. (b) A member of the governing body of the municipality or the LPA or any official or employee of the municipality or the LPA who performs any responsible function in connection with the project. No fee shall be paid on property donated to the project as a local grant-in-aid. Section 3. Title Services Contracts for title services shall be awarded in accordance with the procedures in Section 30-2-1. The contract shall provide for preliminary title reports, assurance of title upon acquisition of each property, and consolidated assurance of title for all project land, or major segments thereof, upon completion of acquisition. Title assurance shall be of a type and from a source that is acceptable to prudent buyers and lenders in the locality. Title assurance shall be obtained for each parcel at the time payment is made for the parcel. If the title assurance is furnished by an incorporated title company, the assurance at the time of taking title may consist of an interim certificate under which formal assurance will be issued on demand. Surveys of the boundaries of individual parcels shall not be obtained without the prior concurrence of HHFA. If HHFA concurs in the obtaining of surveys, procurement shall be in accordance with the procedures in Section 30-2-1. 2 CHAPTER 3. PREPARATION FOR LAND ACQUISITION SUBMISSION REQUIREMENTS With the Survey and Planning Application (see Section 4-1-1), the LPA shall submit: (1) Estimated cost of land surveys and appraisals and title services. (2) Estimated cost of negotiation of options or offers to sell, if the (4) Initial estimate of payments for real estate and the basis and With Part I of the Application for Loan and Grant (see Section 4-2-1, the LPA shall submit: (1) Final estimates of real estate purchases and land acquisition expense, on Form H-6220, Project Expenditures Budget, and supporting documents.2 (See Section 31-2-3 and "Estimate of Acquisition Cost" below.) (2) Land Acquisition Report (Checklist Code No. R 222), consisting of: (a) Property Map. (See "Property Map" below.) (b) One complete set of acquisition appraisals. (See Section 13-2-1.) (c) Tabulation of property to be acquired, conforming to Exhibit B. (d) Explanation of any differences between "Appraiser's Valuations" and "LPA Estimate of Acquisition Cost" in the preceding tabulation. (See "Estimate of Acquisition Cost" below.) 1 Also to be submitted with a Request for Concurrence in Planning Three-Fourths Grant Project With Limited Project Costs (see Section 4-1-2). For a project on a three-fourths grant basis with limited project costs, land acquisition expense is not eligible for inclusion in the budget. 1/15/64 |