Chapter 16Relocation Assistance
Section § 7260
This law section defines key terms in the context of public entities acquiring real estate for public use. A 'public entity' includes state bodies, counties, cities, and anyone acting with their authority to take property. A 'displaced person' is someone who must move because a public entity is acquiring or redeveloping land. There are criteria for who qualifies as displaced, but not those in unlawful occupancy or who move after property acquisition. 'Business' and 'farm operation' definitions focus on activities for economic purposes. An 'affected property' is any real estate losing value due to nearby public projects. 'Public use' refers to purposes a public entity may take property for, such as by eminent domain. A 'comparable replacement dwelling' ensures displaced individuals find housing that meets certain living standards and is affordable given their income. The 'lead agency' for these activities is the Department of Housing and Community Development.
Section § 7260.5
This law is about ensuring fair treatment for people and businesses displaced by public projects like rehabilitations or demolitions. It recognizes that such displacements can lead to business closures and aims to minimize those negative impacts. The law mandates public entities to handle these situations with fairness, efficiency, and respect for the rights of those affected, including consideration of unique circumstances and coordination with other government programs. It also emphasizes reducing administrative waste and aligning relocation policies with fair housing laws and civil rights protections.
Section § 7260.7
This law states that nonprofit housing facilities that are supported by federal or state programs to help low-income tenants, and have limits on rent hikes tied to operating costs, are not subject to usual rent restrictions if they receive state funds to temporarily relocate tenants for renovations.
Section § 7261
This law requires public entities in California to plan projects by considering the impact on people and businesses that need to move because of the project. The goal is to address displacement issues early to avoid negative effects and help projects finish on time. Public agencies must offer relocation help to displaced people and can also help neighbors harmed by the project.
Public entities might set up local offices to assist with relocation. They provide services like evaluating needs, sharing info on available homes and spaces, ensuring people have good alternatives to move into, and assisting businesses to find new locations. People should not be forced to move unless there's a disaster, emergency, or health risk.
Agencies are required to coordinate these efforts with the overall project and other community initiatives. Even renters on short-term leases can get help moving when the property is taken for a project.
Section § 7261.5
This law allows a public entity to work with outside organizations or other government agencies to run relocation assistance programs for people who have to move. This cooperation is intended to avoid extra costs and repeated efforts while ensuring the programs are run consistently and effectively. Public entities can use the services of housing agencies at the state or local level or any agency with experience in similar programs.
Section § 7262
This law outlines the compensation and assistance that a public entity must provide when their projects displace people from their homes, businesses, or farms. If you have to move, you are entitled to be paid for reasonable expenses related to moving yourself, your personal property, or your business equipment. There's also payment for searching a new business or farm site, capped at $1,000, and for reestablishing a business, farm, or nonprofit, capped at $10,000.
If displaced from a home, you can take a standard allowance instead, based on a federal schedule. If a business or farm is relocated, you might get a fixed payment between $1,000 and $20,000, depending on your average annual net earnings, provided certain conditions are met. You must provide financial records for this and note that simply renting out property doesn't qualify for these payments.
Additionally, if you're displaced due to a public entity's project, the cost of the move isn't regulated by the Public Utilities Commission, and moving contracts can be competitively bid without regulation. However, if you lease the property for farming and the public entity assumes the lease, they don't have to offer relocation assistance.
Section § 7262.5
This law states that tenants temporarily displaced for up to one year due to the rehabilitation of their rental project, funded by a public entity, may not get permanent housing assistance if certain conditions are met. The project must be affordable housing with at least 49% of the tenants having low incomes and must have a regulatory agreement in place. Tenants should have the right to return to their original or similar unit, with rent restrictions for the first year of their return. The displacement must be reasonable and not overly disruptive, and other required financial benefits must be provided. Temporary relocation should be within the same complex or nearby with similar amenities.
Section § 7263
This law requires that when public entities acquire a person's home for public use, they must compensate the homeowner, provided they have lived there for at least 180 days before negotiations started. The maximum payment is $22,500 and covers the cost difference for a comparable home, any increased mortgage interest costs, and reasonable closing costs like title fees and recording fees. For the homeowner to receive this payment, they must buy and live in a new, safe home within a year from receiving payment or a comparable home becoming available, unless good cause for delay is shown. There are special considerations for those 62 and older, focusing on financing and locating a new home.
Section § 7263.5
This law states that if someone leases a condominium for 99 years or longer, or for a period that is longer than the expected lifespan of the person being displaced, it is considered as if they've bought the condo.
Section § 7264
This law section details additional financial support for people who have to move out of their homes because a public entity needs the property. If someone has lived in the home for at least 90 days before negotiations to acquire the home start, and they're not eligible under another section, they can get extra money, up to $5,250, to help them rent a similar home for up to 42 or 48 months, depending on certain conditions. For publicly funded transportation projects, the payment is for 42 months and includes utilities. This amount can be given all at once or periodically, especially if it's more than the maximum. Payments consider a person’s income, especially for low-income individuals.
If the person prefers, they can use this money as a down payment to buy a decent, safe replacement home. Special attention is given to people who are 62 or older to help them find a good new home.
Section § 7264.5
If a government project can't move forward because there are no available homes to replace the ones it affects, the government must use project funds to provide new housing. They can pay more than typically allowed under certain rules if necessary.
No one can be forced to leave their home until a comparable home is available.
This law section also assigns specific tax-related administrative duties to the government entity involved with the project. Finally, if a homeowner agrees in writing to stay in their purchased home, they might not be eligible for replacement housing.
Section § 7265
This law requires public entities to compensate property owners when their property value decreases because an adjoining property was acquired for airport purposes. To qualify, the property must be next to the acquired property, used for airport purposes, and owned for at least 180 days before negotiations began. The compensation can be up to $22,500 and reflects the actual loss in market value due to changes in the property's use. The rules and regulations governing these payments ensure they only cover declines in property value directly linked to physical changes in the use of the adjacent property.
Section § 7265.3
This law allows a public entity to provide payments and helpful advice to people who have to move due to rehab, demolition, or code enforcement on buildings, or related programs. The payments can be made to those who stay during such rehabilitation too. These payments can be based on increased rent costs and may be given monthly or annually, with possible priority in rental assistance programs. If the rehab is funded by public money, the entity must ensure these payments and advisory assistance for low to moderate-income individuals.
The law also mandates temporary housing for up to 90 days for those displaced by publicly funded rehab work. Displaced persons must be given the choice to move back once work is completed. Payment amounts can be limited based on specific calculations involving the person's income and previous rent. However, these payments and assistance are only compulsory if there is federal or state funding available, though local funds can still be used.
Section § 7265.4
When a public entity buys private property or takes it through a legal proceeding, they must cover the necessary costs associated with transferring the property, like recording fees and transfer taxes. This reimbursement should happen as soon as possible after the property purchase or court deposit and should be fair and reasonable.
Section § 7266
This law allows cities to create a relocation appeals board to handle disputes over the eligibility for or amount of relocation payments, except for state agencies that have their own appeal processes. If someone disagrees with a decision about these payments, they can seek a review by the public entity or the relocation appeals board, if applicable. Specifically, community redevelopment agency decisions must be reviewed by a relocation appeals board.
Section § 7267
This law aims to streamline how public entities acquire real property from owners, reducing legal battles and court congestion. It highlights the importance of fair treatment for property owners and building public trust in land acquisition processes. The law generally follows a set of guidelines from Sections 7267.1 to 7267.7. However, these guidelines don't apply when acquiring certain nonpossessory interests like easements or rights-of-way for specific infrastructure projects like sewer or waterline work.
Section § 7267.1
This law requires public entities to try to buy real estate quickly through negotiation. Before starting negotiations, they must have the property appraised, and the owner or their representative should be able to join the appraiser during the inspection. However, if the property has low market value and is being sold or donated, the requirement for an appraisal can be skipped following specific procedures.
Section § 7267.2
This law is about the process public entities must follow when acquiring private property, usually for public projects. Before they can proceed, they need to decide on an offer based on what they consider fair compensation, usually not less than the property's market value. A pamphlet explaining eminent domain and owners' rights must be given to property owners when an offer is made.
The law requires a detailed written statement explaining the offer with information like property valuation date, zoning, and value analysis. Additionally, homeowners of small residential properties can review the appraisal if they request it. If the property owner offers their property for a price lower than the public entity's established amount, the public entity can match that price, but only if no federal funds are involved.
Section § 7267.3
When a public project is being built, the responsible entity must plan it so that anyone living or working on the involved property doesn't have to leave until they've been given at least 90 days' written notice. This includes homes, businesses, and farms, with the expectation that a new home will be ready if they need to move.
Section § 7267.4
If a government body allows someone to live in a property they’ve acquired and it's a short-term rental or can be ended quickly by the government, the rent charged should be what’s considered fair for short-term stays.
Section § 7267.5
This law ensures that a government body cannot rush or delay the process of acquiring private property through condemnation to pressure the property owner into accepting a particular sale price. The government must negotiate fairly without using any coercive tactics.
Section § 7267.6
This law specifies that if a government body wants to take private land using eminent domain, they must begin formal legal proceedings to condemn the property. The government should not force the property owner to start legal action to prove that their property has been taken.
Section § 7267.7
This law has two main points about property acquisition by public entities. First, if taking only part of someone's property would leave the rest unusable or worthless, the public entity has to offer to buy the whole property if the owner wants. Second, someone whose property is being bought has the option to donate the property or any part of it to a public entity, as long as they're fully informed about their right to fair payment for it.
Section § 7267.8
All public entities must create rules and regulations to manage relocation payments and assistance, using guidelines from the Department of Housing and Community Development. For projects funded by the federal government, public entities must follow federal requirements for relocation assistance and advice.
Section § 7267.9
Before a public entity or utility tries to buy nonprofit or special use land, they must first try to buy non-special use land instead unless the purchase is for transportation projects like roads or railways. However, this rule doesn’t apply when acquiring land for utilities such as water, sewer, electricity, or natural gas if the acquisition doesn't involve tearing down or changing the land so the current owner can no longer use it as intended.
Section § 7269
This law says that money received as tenant relocation assistance won’t be counted as income for state personal, bank, or corporation taxes. Additionally, these payments won’t affect the amount of public assistance someone receives, meaning they won’t reduce any government aid the person is entitled to.
Section § 7269.1
If someone is receiving both relocation benefits and general assistance, and they have different rent amounts they could pay, the highest rent amount will be used. Any extra money from this higher rent won't be considered part of the person's income or assets for their general assistance.
Section § 7270
This law states that if a government entity uses eminent domain to take private property, no new types of damages can be claimed that weren't recognized before this law was created.
Section § 7271
This law says that if a specific part of this chapter is found to be invalid or unenforceable, that won't impact the rest of the chapter. The remaining parts can still be applied and followed, even without the part that was invalid. This idea is known as 'severability,' which allows the rest of the legal document to stay effective and useful.
Section § 7272
This law states that if there is another law in California that provides more protection to the owner or person living in a property taken by a government entity for public use than the protections offered in the specific sections mentioned, the government must also follow that other law.
Section § 7272.3
This law is about setting minimum requirements for relocation assistance payments by public entities in California. It clarifies that public entities are not restricted by these requirements if they have other ways to help people move or if federal law requires them to pay more to access federal funds. Essentially, if federal rules demand more money to be paid, the state law allows it to ensure those funds are secured.
Section § 7272.5
This law clarifies that when the government uses its power of eminent domain to take private property, it doesn’t create any new types of damages (compensation claims) that weren't already valid when they started making payments, according to the rules set in 1971.
Section § 7273
Cities can use money obtained from specific sections of the Streets and Highways Code to help people who have to move due to the construction of city roads. This includes offering advice and financial assistance to those displaced.
Section § 7274
This section states that the rules outlined in Sections 7267 to 7267.7 do not create any new legal rights or responsibilities. They also do not impact the legality of acquiring property through purchase or condemnation.
Section § 7275
When a government body buys property through eminent domain, purchase, or trade, the amount they paid is public information. Anyone can ask for this information from the government entity that made the purchase.
Section § 7276
This law explains that if a property is acquired through eminent domain, the person or entity responsible must offer relocation help and make any required payments outlined in this chapter. This must be done according to specific guidelines. However, this rule doesn't apply to public utilities or certain public entities that follow different rules.
Section § 7277
This law says that if you buy a property that the owner is selling voluntarily or at a foreclosure/sheriff's sale, certain relocation benefits are not required. This applies if the owner lives there or it’s empty, the sale isn’t prompted by plans for public development nearby, the price is fair market value determined by an appraiser, and no federal money is involved. The property must be listed for sale publicly. If a public entity is buying the property, they must inform the owner in writing about their development plans and any relocation benefits the owner won’t get because of this type of sale.