Section 2. Acquisition Methods Real estate acquisition shall be started as early as practicable and then carried to completion expeditiously. TIMING OF NEGOTIATIONS AND ACQUISITIONS As soon as the governing body of the locality approves the Urban Renewal Plan, the LPA may open negotiations for the acquisition of properties on which HHFA has concurred in acquisition prices on Form H-6144, Requeset for Concurrence in Acquisition Prices (see Section 13-4-1). Options to purchase or offers to sell may be obtained but shall not be accepted, and no property shall be acquired, until HHFA has approved Part II of the Application for Loan and Grant and the project expenditures budget. In an early land acquisition program, the LPA may begin negotiations and obtain options or offers to sell on properties on which HHFA has concurred in acquisition prices on Form H-6144, after the public hearing on the proposed early land acquisition program has been held. However, no properties shall be acquired and no options or offers to sell shall be accepted until HHFA has approved the Application for Early Land Acquisition Loan, or authorized the LPA to undertake early land acquisition activities with local funds, and has approved the budget for the early land acquisition activities. Acquisition activity as early as indicated in the preceding two paragraphs is permitted but not required. After the effective date of the Contract for Loan and Grant, the LPA shall proceed promptly to carry out a full-scale acquisition program in which all properties to be acquired for the project will be either acquired or placed in condemnation after a reasonable negotiating period. Each parcel on which HHFA has concurred in an acquisition price shall be assigned promptly to a staff or contract negotiator. If the initial request on Form H-6144 does not cover all properties to be acquired, the LPA shall request price concurrences for the remaining parcels with the least delay practicable, so as to achieve, as nearly as possible, a single, unified acquisition program. RESPONSIBILITY OF LPA TO PROPERTY OWNERS AND TENANTS In acquiring real estate, the LPA shall protect impartially the interests of all concerned, pay fair prices to owners, and utilize available acquisition methods and practices to minimize hardship to owners and tenants (see Chapter 13-1). Payment of Fair Prices The price paid for the acquisition of each property must be supported by the records of the LPA as being fair to the owner as well as to the LPA. This requirement that the LPA's price determination be properly documented does not place the LPA under any obligation to disclose its appraisals or other supporting documents or records. To ensure that every homeowner and owner-occupant of small multifamily residential property is protected as completely as possible by this fair-price policy, the LPA shall pay, for each property in either of the categories listed below, a price that is not less than the lowest satisfactory appraisal considered by the LPA and the HHFA Regional Office in establishing the maximum acquisition price for the property on Form H-6144. In determining whether a proposed price complies with this requirement, the LPA may adjust the valuation reported in the lowest satisfactory appraisal to reflect the value of any rights or interests which are to be reserved in the vendor, as provided below under the heading "Reservation of Rights in Vendor," but which were not considered by the appraiser in reaching his opinion of value. The foregoing limitation on minimum acquisition price applies to each acquisition, by purchase or by stipulation or agreement as to value in a condemnation proceeding, of either of the following: (1) Single-family dwelling property occupied entirely by the owner, regardless of the property value. (2) One- to four-family dwelling property in which the owner is an occupant and for which the HHFA concurred-in acquisition price for the property is $15,000 or less. A price that is lower than specified above may be paid only if the LPA has submitted to the HHFA Regional Office a justification of the proposed lower price as representing fair compensation for the property and has received HHFA concurrence in acquisition at the proposed price. The justification may consist of a staff analysis of the available appraisals and other pertinent valuation data or an additional appraisal in which the property is valued by the appraiser at not more than the LPA proposes to pay. The foregoing provisions do not modify the limitations on acquisition prices and charges to Gross Project Cost for donations of property and certain other acquisitions, as set forth in Section 13-4-1 under the heading "Limitations on Charges to Gross Project Cost," as modified by LPA Letter No. 225. Protection of Interests of Owners and Occupants To minimize hardships and soften the impact of real estate acquisition on property owners, the occupants, and any persons employed on the premises, the LPA shall: (1) Take appropriate steps to ensure, insofar as possible, that all tenants, as well as property owners, are provided full information orted o the perly close ulti by her Test nal les or W 0 regarding the contemplated property acquisition and are given. as much advance notice as possible of the time the LPA expects to require possession of the properties. (2) Endeavor to obtain an agreement of sale on each property as soon as feasible after opening acquisition negotiations in the project area. (3) Permit the owner in the agreement of sale to determine, to the extent practicable, the dates for closing and delivery of possession within the limits imposed by schedules for clearance and disposal operations. (4) In the negotiation of agreements for the acquisition of owneroccupied properties and properties occupied by businesses and institutions, give early and special attention to the timing of both the acquisition of title and the delivery of possession, so as to minimize any adverse effect of the acquisition on the occupants and any employees of occupants. (5) Make full use of the procedures below under the heading "Reservation of Rights in Vendor," as a means of reducing or eliminating hardship on owners and lessees. ACCEPTANCE OF OFFERS OF OWNERS Offers of owners shall be accepted or rejected promptly. No offer shall be accepted, however, before HHFA approves Part II of the Application for Loan and Grant and the project expenditures budget. In the case of early land acquisition, no offer shall be accepted before (1) the public hearing on the early land acquisition activities has been held, (2) HHFA has approved the Application for Early Land Acquisition Loan or authorized the LPA to undertake early land acquisition activities with local funds, and (3) HHFA has approved the budget for the early land acquisition activities. Before accepting an offer to sell or to stipulate as to the value of a property in a condemnation proceeding, the LPA shall: (1) Determine that the price, terms, and conditions of the offer are within the HHFA concurrence and the requirements above under the subheading "Payment of Fair Prices." (2) Inspect the property and ascertain that it is in substantially the same condition as when appraised. (3) Approve and authorize acceptance of the offer by resolution of its governing body, if the acquisition was not previously authorized. TERMS AND CONDITIONS Each property shall be acquired on the following basis: (1) The title acquired by the LPA shall be subject only to: (a) Reservations, encumbrances, and exceptions to title approved by HHFA on Form H-6144. (b) Any reservations which are authorized by the LPA in the manner described below under the heading "Reservation of Rights in Vendor." (2) Real property taxes shall, in accordance with a uniform practice adopted by the LPA governing body, either: (a) Be prorated in accordance with local practice as of the date of closing; or (b) Be paid by the vendor or charged in full to the vendor. (3) Rents and deposits collected by the vendor from tenants shall, in accordance with a uniform practice adopted by the LPA governing body, either: (a) Be prorated as of the date of closing; or (b) Be retained by the vendor for the rental period in which title is acquired by the LPA. Any deposits or rent prepaid to the vendor beyond the end of the current rental period or beyond 1 month after closing, whichever occurs first, shall be paid by the vendor to the LPA at closing. (See Chapter 15-2.) (4) The expense of closing, including examination of title and recording instruments of conveyance, may be paid by the LPA, but the LPA shall not pay for Federal documentary stamps, State or local transfer taxes from which the LPA is exempt by law, or any cost of clearing title. At the time payment is made for a parcel and title is vested in the LPA, the LPA shall have: (1) Obtained evidence or assurance of title (see Section 13-2-3) showing title to the parcel vested in the LPA, subject only to exceptions concurred in by HHFA on Form H-6144. (2) Inspected the property immediately before title vests to determine: (a) That the property conforms substantially to the property (b) That there is no evidence of work or labor having been per- (c) That, after taking title, there will be no outstanding rights |