CITY OF GRAND FORKS
RELOCATION VOUCHER PROGRAM
PURPOSE:
The City of Grand Forks recognizes the need to stabilize its economic and
tax base by
retaining its population. in order to achieve this goal, a relocation grant,
in the form of a |
redeemable voucher, is being offered to Grand Forks residents participating
in the Voluntary
Acquisition of Residences (VAR) Program. The grant will encourage residents
who lost
their orimary residence to reinvest in residential property (for owner-occupancy)
within the
City of Grand Forks.
By offering this relocation grant, the City of Grand Forks seeks to stabilize
its property tax
base; stabilize and boost the economic sector by encouraging new construction
and real
estate investment; and enable those families most severely impacted by the
flood to make
good decisions about the quality of life they may expect to enjoy in the
City.
The Relocation Grant is not to be used towards the purchase of a new home
but, rather, is
to be used for the relocation to that new home. The reinvestment (the purchase
of an
existing home, a newly constructed home, or the purchase of a lot and the
contracting for
home construction) must be concluded before the Voucher can be redeemed.
The Relocation Voucher Program will operate through August 31, 1998. No
Relocation
Voucher can be redeemed after August 31, 1998.
ELIGIBILITY TO RECEIVE A RELOCATION VOUCHER
Those eligible to receive the Relocation Voucher are those whose primary
residence was
purchased by the City of Grand Forks under the Voluntary Acquisition of
Residences (VAR)
Program. The Relocation Voucher will be sent to the participant upon close
of sale of flood
damaged residence to the City.
ELIGIBILITY TO REDEEM THE RELOCATION VOUCHER FOR A GRANT
The Relocation Voucher may be redeemed for a grant when the Voucher holder
verifies to
the Office of Urban Development, City of Grand Forks, that they meet the
reinvestment
eligibility criteria because they:
Purchased a lot or are using a pre-owned lot within the City of Grand Forks
for
construction of a new home and can verify that construction on the home
will begin
by August 31, 1998, or
Purchased a newly constructed home (not-previously occupied) in Grand Forks,
or
Purchased an existing (previously occupied) home in Grand Forks, and
Plan to occupy the property as their primary residence for not less than
five years from the date of the Grant Agreement.
RELOCATION GRANT
The Relocation Grant offered by the City to a VAR Program participant, who
has met the reinvestment criteria, is:
$15,000 if the Voucher holder has purchased a lot in Grand Forks
and can verify that construction on the new
residence will begin by August 31, 1998.
$15,000 if the Voucher holder purchased a new (never occupied) home
within Grand Forks.
$10,000 if the Voucher holder purchased an existing (previously occupied)
in the City of Grand Forks.
The Relocation Voucher must be redeemed no later than August 31, 1998, and
the Voucher Holder must
demonstrate they have met the reinvestment criteria stated in the program
description.
REDEMPTION OF A RELOCATION VOUCHER
1 ) In order to redeem the Voucher and receive a grant, the family must
have already
reinvested in the community by (a) purchasing a newly constructed home;
(b) initiating construction of a new home;
or (c) purchasing an existing home in which they intend as their primary
residence for the next five years.
2) The Voucher holder must verify ownership of the new residence
in Grand Forks.
Verification could come in one of the following forms:
Title to the new property in the name of the Voucher recipient. The title
could be either for a house or a building lot
within the City of Grand Forks.
If verification is of a building lot, further documentation must be provided
to demonstrate that construction will begin
no later than August 31, 1998. Verification could be:
Construction loan documents from a lender or contract between the voucher
holder and a building contractor.
If the Voucher holder has a new loan, verification from the lender that
a new mortgage has been approved and is in
effect (i.e., copies of signed closing statement and signed and notarized
warranty deed).
It is critical that the verification provide conclusive evidence that the
Voucher holder is, in fact, owner of new property
and the necessary financing and contracting activities have concluded.
3) The family must sign an authorization for release of information
for SBA and FEMA
with the express purpose of authorizing both agencies to release any and
all information necessary for the City of
Grand Forks to determine that no duplication of benefits will occur as a
result of the Relocation Grant.
Under these circumstances, and assuming the borrower does not purchase any
ineligible items with the grant, the
Department of Housing and Urban Development has determined that a Relocation
Grant is not a duplication of
benefits.
RELOCATION GRANT AGREEMENT
The Relocation Grant Agreement describes the relationship between the City
of Grand Forks and the grant recipient
and also describes the terms and conditions upon which the grant is given.
The Grant Agreement states that the Office of Urban Development will place
an encumbrance (lien) on the recipient's
new property. The lien requires the recipient to repay a portion of the
grant should they transfer title of the property
within five (5) years of execution of the Grant Agreement, or if the property
ceases to be their primary residence.
Upon verification of the ownership of a new primary residence in the City
of Grand Forks, processing of the
Relocation Grant may begin.
Key provisions of the Relocation Grant Agreement are:
The grant agreement reflects a single, lump sum payment also referred to
a
"balance".
The grant agreement reflects a balance that declines at a rate of 20% each
year resulting in a -0- balance at the end of five years.
The grant agreement advises the borrower that a lien will be placed on the
property reflecting the above noted provisions.
The grant agreement states that the grant proceeds must not be used to
duplicate benefits already paid by another Federal agency such as FEMA and
SBA.
The grant agreement includes the list of Serious Needs and Necessary
Emergency Expenses for FEMA's Individual Family Grant Program (DR-1174)
with the admonition that if FEMA funds were used to purchase any of the
items on that list, relocation grant proceeds can not be used to purchase
the
same item(s).
.
INELIGIBLE USES
In order to ensure that no duplication of benefits occurs, if the voucher
holder purchased the new property with an
SBA loan, the proceeds of the Relocation Grant cannot be used for items
associated with the real estate. The
Relocation Grant is to assist the family with other relocation needs - not
improvements or additions to the real estate
financed by SBA. Ineligible items include:
Payment toward the down payment for replacement property including a building
lot or home.
Improvements to the property financed through the SBA - an SBA loan based
upon SBA underwriting criteria provides for full replacement of the property
lost in the disaster.
If the household received SBA Financing, other prohibited uses include:
*Landscaping
*Decks
*Porches
*Garages or carports
*Any additional square footage to the property
*Any expenses associated with the property acquisition
The Relocation Voucher cannot be used to purchase any personal items lost
in the flood if the recipient has already
been reimbursed for replacement through either SBA or FEMA. The attached
FEMA list of Serious Needs and
Necessary Expenses should be reviewed by the recipient to ensure that such
items are not purchased with the
relocation grant if such personal property was replaced by either FEMA or
SBA through a loan or a grant.