Executive Summary A presidential disaster declaration followed Hurricane Sandy (Storm) in view of widespread damage in the affected area

which includes Richmond and the other counties in the City of New York. In response to the disaster declaration. New York State (State or NYS) implemented the Recreate NY Smart Home Buyout (Program) to administer the voluntary buyout of homes within the designated buyout area that suffered substantial damage From the Storm. Funding for this program has been made available by the Federal government and will be distributed and administered by the State and its partners. Buyouts are voluntary. No homeowners are forced to relinquish their property under this program, but homeowners who decide not to participate in the buyout may be required to reduce their risk for the ftiture, by elevating their homes and purchasing insurance coverage through the National Flood Insurance Program (NFIP). Generally speaking. owners will receive 100% of the pre-storm Fair Market Value (FMV) of their storm-damaged property. However, the State will deduct assistance the owner already received from the FMV, including all Federal, State, local and private sources of disaster-related assistance. This includes, but is not limited to. homeowners insurance, flood insurance, Small Business Administration (SBA) and Federal Emergency Management Agency (FEMA) benefits. Depending on whether a property is inside the floodplain, deed restrictions may be required to prevent future development and support passive and active recreation uses. The total maximum buyout award available to any property owner is capped at the Federal I-lousing Administration (FHA) loan limit for the county where the property is located. For most counties included in this disaster declaration, that is $729,750. Please go to htips://entp.hud.uov/idapp/lnml/hicostl .cfm to verif the maximum award you are eligible for based on this criterion.

Introduction
As a participant of the Program, you will be eligible for Standard Buyout, at 100% of the pre-Storm FMV if your property was substantially damaged by the Storm (damage is greater than 50% of the FMV) and located in a highest risk area along the water referred to as the V Zone in FEMA flood maps, or 100% of the post-Storm FMV (plus eligible relocation or other assistance) was substantially damaged by the Storm and located in the 500-year floodplain but outside of the V Zone. You may be eligible for Enhanced Buyout which provides incentive payments ranging from 5% to 15% of the pre-Storm FMV. If your property is located in a pre-defined targeted buyout area designated in consultation with county and local governments as coastal buffer zone or other non-residential, non-commercial use you

may receive incentive payments. You may receive one or more incentive payments in the following circumstances: o 5% In-County Relocation incentive. You permanently relocate within the same county where the Storm-damaged property is located at the completion of the buyout and for a defined period of years thereafter. The rationale is to protect and preserve the community while facilitating the reclamation of land in high risk areas for natural protection against future damage. NOTE: for New York City residents who participate in the States buyout program this will be available for permanent relocation anywhere within the five boroughs of New York City. 10% Targeted Area Incentive. In an effort to relocate homeowners out of these high risk areas, and to protect as many as possible from future disasters, the State will seek the maximum level of homeowner participation by offering this individual incentive so that as much land as possible within these areas can be returned to and reclaimed by nature. This land will be maintained in perpetuity as coastal buffer zones. OR o 10% Group Buyout Incentive. Outside of the targeted buyout areas, the State may. in rare circumstances, provide a 10% Group Buyout Incentive to certain very limited clusters of homeowners (2-10 consecutively located properties) whose properties are located inside the high risk V Zone but not inside an identified targeted buyout area. This incentive may be necessary in certain rare cases to bring about the reclamation of a concentrated area of high risk and to avoid the patchwork effect of purchasing all but one or two properties inside the area.

Each buyout is an individual real estate transaction, and requires the steps of a traditional sale, such as survey, appraisal. contract and closing). NYS will prioritize applications taking into account the severity of the damage in a neighborhood or community, the ability to take advantage of streamlined Federal grants. life safety. environmental concerns, local long-term recovery goals, etc. NYS will provide residential tenant relocation assistance in keeping with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (the URA); in concert with The Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. 5121 et seq. (The Stafford Act) provisions for tenants of the storm damaged property. Residential tenants of storm damaged property are considered to be involuntarily displaced when the State accepts an offer to purchase the storm damaged property. The State will award relocation benefits to eligible tenants according to the provisions of the URA and as implemented under the regulations of U.S. Department of Housing and Urban Development (HUD) and FEMA. 4

You will be contacted by a Case Manager or Relocation Advisor who will meet with you. explain the program. answer specific questions, and assist you through the process. The assigned Case Manager or Relocation Advisor will work with you to make your transaction go as smoothly as possible. Statement of Policy The Slate may purchase properties under the Community Development Block Grant Disaster Recovery (CDBG-DR) program established by MUD, and/or the FEMA Hazard Mitigation Grant Program (HMGP), to improve public safety, reduce future losses and assist occupants with relocation and replacement housing away from flood prone areas. The services and payments described in this guidebook will be provided to all who participate in the voluntary acquisition of properties damaged by Superstorm Sandy, Hurricane Irene or Tropical Storm Lee. The program may be funded by HUD, FEMA. and the Stale. It is the policy of the State that all aspects of this program will comply with all applicable provisions of local, State and Federal statutes and regulations. This program is voluntary. The State will not require any owner to sell property to the State as part of this program. The State will not use its power of eminent domain (sometimes called condemnation) to obtain land for this program. The State will encourage owners of parcels in identified flood-prone areas to vacate their property and offer it to the State for purchase. This is intended to help people move from areas most damaged by Superstorm Sandy. Hurricane Irene or Tropical Storm Lee, and reduce the potential for ftiture losses. To the greatest reasonable extent, no residential tenant who lawfully occupies real property will be required to move without written notice at least 90 days before the property must be vacated.
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Definitions and Terms Intent of Guidebook The purpose of this guidebook is to assist you by briefly explaining the process and the benefits you may be eligible for. The laws and rules are complex because the circumstances, needs and types of damage caused by the storm differ so much among the participants. This guidebook is not meant to discuss the law and its procedures in detail, but rather to provide an overview of the Federal and State programs that may be applicable. Please discuss all aspects of your proposed transaction with the Case Manager or Relocation Advisor provided by the State for guidance through the process. Important Definitions Alien Not Lawfully Present: A person who is unauthorized to be present in the United States. A person must be authorized to be in the United States in order to be eligible to receive URA relocation benefits, relocation advisory services or replacement housing assistance. The person must be able to certify that he or she is either a citizen or national of the United States or an alien who is lawfully present in the United States. The State may approve exceptions if unusual hardship would occur to the aliens spouse, parent or child who is a United States citizen or an alien admitted for permanent residence. Displaced Person: A person who moves from the real property or moves personal property from the real property because of the acquisition of the real property. in whole or in part. or as the result of a written notice from the State to vacate real property that it has acquired. In the case ofa partial acquisition, the State shall determine ifa person is displaced as a direct result of the acquisition. Displaced persons are classified as: A residential Tenant-Occupant (including mobile homes and sleeping rooms) Duplication of Benefits (DOB): Any payments received by the property owner from local, State, or Federal sources that would represent a duplication of financial assistance to the property or owner for storm/flood related damages. Investor-Owner: Holds title to the property with valid deed or valid real estate contract that pre-dates the storm event; continues to hold title to the property to the date of the States offer to purchase and did not occupy the unit as of the date of the storm event; the investor-owner will provide the State with additional information as may be required, including available information on any tenants. Owner-Occupant: A person who holds title to the property with valid deed or valid real estate contract (or holds a similar property interest) that pre-dates the storm events; continues to hold title to the property to the date ofthe States offer to purchase; and will certify to having lived in the dwelling as his/her primary residence as of the date of the storm event. 6

Pre-storm Fair Market Value (FMV): Value based on appraisal of pre-siorm condition of property as ofOctober 78th 2012. FMV may be identified via post-storm forensic appraisal. Priman Residence: The owners principal place of abode. The owner must have lived at the site before the storm event for it to be considered primary. The residence may be verified in order of preference by I) Homestead exemption of the property: 2) Income tax returns; or 3) Declaration signed by the property owner certifying that the property is the owners primary residence. Substantial Damage; Damage in excess of 50% of the pre-storm assessed building value, not financially or structurally feasible to repair. Tenant: A person who has temporary use and occupancy of real property owned by another. The term person means any individual, family, partnership, corporation or association. Voluntary Participation: Ifa mutually satisfactory agreement on terms of the conveyance cannot be reached, the State will not acquire the property. Buyouts (acquisitions of property) are voluntary. No property owners will be forced to relinquish their property. 90 Day Tenant: A displaced person who has actually and lawfully occupied the dwelling to be acquired for the project for at least 90 days immediately prior to the initiation of the Offer to Purchase ifthe tenant has reoccupied the dwelling since the storm event.

Section One: Voluntary Property Acquisition Eligibility

The buyout program is open to property owners in disaster declared counties affected by Superstorm Sandy. Hurricane Irene or Tropical Storm Lee. This includes residents of New York City that meet any one of the following three criteria: Properties substantially damaged by the storm (damage is greater than or equal to 50% of the FMV) and located in a highest risk area along the water referred to as the V Zone in FEMA flood maps. Properties substantially damaged by the storm and located in the 500-year floodplain but outside that V Zone. Properties located in pre-defined targeted buyout areas, to be determined in consultation with county and local governments.

Required Documentation Property owners who have reviewed the eligibility requirements and have submitted an application to the State should bring the following documents: Deed and tax receipts that show you own the property. o Liens or recordings against the deed. Property mortgage amount before insurance benefits or other aards. o Mortgage information, including its owner/servicer, and any home equity loans or second mortgages taken against the property. I lousehold income information, including tax returns and pay stubs. o Information regarding rental income from property affected by the storm. Property survey or tax map showing the location and size of your property. Information and documentation on benefits received through other programs: o Flood Insurance including the name of the insurance companies, policy information, receipts or correspondence related to payments received or pending. o Homeowners Insurance including the name of the insurance companies. policy information, receipts or correspondence related to payments received or pending. o SBA Disaster Loan including aard information or correspondence related to loans received/pending. o FEMA Assistance for Repair/Replacement including payment information, or correspondence related to payments received or pending. Receipts for eligible repair expenses paid including cancelled checks documenting any completed storm repair costs. o Information on any down payment assistance you may have received from the State or county to purchase your home.
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o Other Governmental Sources and Non-Governmental Sources. Information related to any environmental issues, such as lead, asbestos and oil tanks. which have been flagged on the property, and evidence of any remediation completed. Any appraisals prepared for the property within the six months prior to the storm. Damage estimates received for storm damage. Ifavailable. a letter from your local Floodplain Administrator certifying that your property has been deemed substantially damaged under your communitys local floodplain law. (NOTE: This may be required for properties at which storm-related damages exceed 50% of the structures pre-storm fair market value.) Receipts for repair expenses, including cancelled checks documenting completed repairs. Receipts for rental expenses while you could not occupy your home and were living elsewhere.

Property Valuation The amount of the States offer will be based on the pre-storm FMV determined by an independent appraisal. The benefits that a property owner has already received will be subtracted from the FMV to avoid Duplication of Benefits (DOB). Participants who owned the property at the time of the storm event will be offered the pre-disaster appraised value determined by an independent appraiser hired by the State to perform a forensic appraisal. Participants who voluntarily purchased the storm-damaged property after the storm will be offered the lesser of the amount paid to acquire the property or the post-flood appraised value. Participants who have received flood insurance adjustments, settlements or payments that exceed the appraised value of the structure will be offered the appraised land value only. tithe county, State, or other designated authority demolished the structure before making an offer to purchase because storm damage made the structure an imminent threat to life or property, the property owner will be offered the pre-disaster appraised value.

Deductions

Offer

Closing

The Case Manager will review with the property owner all previous payments received that may represent a DOS. This includes Federal. State. local and/or private sources of 9

disaster-related assistance, including, but not limited to. homeowners and/or flood insurance proceeds. SBA and FEMA. These payments may represent a duplication of payments for the real estate and must be deducted from the FMV of the property before the State is permitted to acquire the property. Benefit amounts you have already received for specific losses that would be duplicated by payment ofpre-storm market value will be deducted, and the net amount presented to you as the offer. As with a typical real estate transaction, property taxes due or owing and other payments required to clear special assessments, liens or judgments, will be paid by you before closing or deducted at the time of closing. Your Case Manager will review your specific calculation with you and explain how it applies to your transaction prior to accepting thc Stat&s offer.
Voluntary Acquisition Appeal Process

The owner may appeal the States determination of the pre-storm FMV of the property after receiving the offer to purchase. An appeal of the property valuation must be based upon a second appraisal by a certified or licensed real estate appraiser at the owners expense. A partial list of qualified appraisers may be obtained from thc State or your Case Manager. The properly owner must present a written statement to the Case Manager before the expiration date of the States offer to purchase. The Case Manager will deliver the appeal to the State. The appeal must state the basis for the owners disagreement and should include all the information the property owner wants the State to consider (including the second appraisal). The appeal must include specific factual information and any data that support the appeal to increase the offer price.

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Section Two: Tenant Relocation Assistance and Benefits

Relocation Assistance Services

Residential Tenant(s)

This policy will apply only to residential tenants, and only after the property has received an executed purchase agreement. Any dispaced tenant(s) shall be offered relocation assistance services for the purpose of locating a suitable replacement property. Relocation services are provided by qualified personnel employed by, or working on behalf of, the State. They are there to assist and advise you; make use oftheir services. Ask questions, and be sure you understand all your rights and relocation benefits. During the initial interview, your housing needs and desires and your need for assistance will be determined. A Relocation Advisor will contact you, and relocation payments will be explained in accordance with your eligibility. You cannot be required to move unless at least one comparable replacement dwelling is made available. When possible, comparable housing will be inspected prior to being made available to you in order to assure that it meets Decent, Safe, and Sanitary (DSS) standards. I you desire, the Relocation Advisor will give you current listings of other available housing. Transportation may be provided to inspect available housing. Tell your Relocation Advisor ifyou need counseling or assistance from other sources to minimize the hardships of relocating. The State has a variety of programs to help you adjust to your new location.

Social Services Provided by Other Agencies

Your Relocation Advisor will be familiar with the services provided by other public and private agencies in your community. ifyou have speciai problems. the Relocation Advisor will make every effort to secure the services ofagencies with trained personnel with the expertise to help you. Make your needs known so you may receive the help you need.

Relocation Advisory Assistance This checklist is a summary of the relocation advisory assistance you may reasonably expect to receive if you are a tenant displaced by a project. The Relocation Advisor must personally interview displaced persons to:
Determine their needs and preferences. Explain relocation benefits. Offer assistance. Offer transportation, if necessary. Assure the availability of a comparable residential property in advance of a residential displacement. II

Provide current listings of comparable properties. Provide the amount of the replacement housing payment, in writing. Inspect replacement dwelling for DSS acceptability. Supply information on other local, State and Federal programs offering assistance to displaced persons. Provide advice to minimize hardships. Assist in the preparation of claims for payment.

Eligibility for Residential Tenants Tenants of residential property may be eligible, depending on qualifications, for the following benefits: I. Moving Expense Payment. 2. Rental Assistance Payment, 3. Down Payment Assistance, As a displaced person, you are entitled to receive payment for moving and related expenses. There are two types to choose from: I. Actual Reasonable Moving Expense You may choose to have a moving company move you to your replacement property, tip to 50 miles away. and have all reasonable moving expenses paid on your behalf. To use this payment, two bids must be obtained from licensed moving companies. The maximum amount you are eligible to receive for your move is based on the lesser of the two bids. Fixed Moving Payment Under the fixed moving payment, the displaced person is eligible to receive a one-time payment, based on the number of furnished rooms in the property, to execute the move themselves. The payment is paid directly to the tenant and is based on a schedule published by the Federal Department of Transportation. You will be notified of the amount you are eligible for when you receive your Notice of Relocation Eligibility.
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2. Rental Assistance Pavineizi This payment is intended to assist residential tenants that wish to rent a DSS replacement dwelling and pay the increased rental costs incurred from moving outside the program area. To determine your benefits, a comparable rental study will be completed. Your Relocation Advisor will explain this procedure with you. Your Relocation Advisor will request documents to help determine eligibility. Necessary documentation will include items such as, but not limited to, verification of rent paid and monthly income. The comparable property chosen by your Relocation Advisor to base your maximum eligibility must be available for rent on the date your offer is presented. lithe rent of the comparable property is higher than your base monthly rent, you may be eligible for a 42month rental assistance payment, not to exceed $5,250. You must rent and occupy a DSS

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replacement property within one year from the date of displacement to be eligible for this payment. In determining your maximum eligibility, your base monthly rent is the lesser of the following amounts: Monthly rent plus utility costs. Thirty (30) percent of the displaced persons average monthly gross household income ifthe amount is classified as low income by HUDs Annual Survey of Income Limits for the Public Housing and Section 8 Programs. The total of the amounts designated for shelter and utilities ifthe displaced person is receiving a welfare assistance payment from a program that designates the amounts for shelter and utilities.

3. Doiin Paynwnt Assistance Tenants that choose to purchase a home as their replacement property may use their maximum eligible rental assistance amount to pay their down payment and closing costs. You must purchase and occupy a DSS replacement dwelling within one year of the date of your displacement to be eligible for this payment.
Decent, Safe and Sanitaty (DSS) Inspection The property that you purchase or lease must pass a DSS inspection prior to the disbursement of your relocation benefits. Do nor execute a sales contract or a lease agreement until a representative from the State has inspected and certified in writing that the dwelling you propose to purchase or rent does meet the basic standards. Please do not jeopardize your right to receive a rental assistance payment by moving into a substandard dwelling.

The DSS inspection is solely for the purpose of ensuring that the State is providing funds for housing that meets general housing standards at the time of the inspection. It does not provide any assurance or guarantee by the State that there are no defects in the property, its fixtures or its equipment which may be discovered at a later date. The State and/or the inspector assume no liability if there are structural, mechanical, legal or other unforeseen problems discovered after the property is inspected. Fair Housing The Federal Fair Housing Act (Act) sets forth the policy of the United States (U.S.) to provide, within constitutional limitations, for fair housing throughout the nation. This Act and amendments make discriminatory practices in the purchase and rental of most residential units illegal if based on race, color, religion, sex, national origin or disability. Whenever possible, minority persons shall be given reasonable opportunities to relocate to DSS replacement dwellings, not located in an area of minority concentration, that are within their financial means. This policy does not require the State to provide a larger
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payment to a person than necessary for that person to relocate to a replacement dwelling comparable to the dwelling occupied at the time of the storm.
NOTE: No relocation payment received by a displaced person tinder this part shall be considered as income for the purpose of the Internal Revenue Code of 1954, which has been designated as the Internal Revenue Code of 1986 (Title 26, U.S. Code), or for the purpose of determining the eligibility or the extent of eligibility of any person.

Uniform Relocation Act Appeal Rights

Any person may appeal the States determination of eligibility for replacement housing, relocation assistance or the amount that the State offers to pay. The person must request an appeal in writing.
A tenant must submit a written request for review ofa denied claim for relocation assistance or payments not more than 60 days after your claim is denied. NOTE: Please keep in mind that relocation laws and regulations are lengthy. This guidebook briefly described payments you may be entitled to. Consult your Relocation Advisor for details, policies and procedures.

Property Owner Checklist and Notes

There are several events and questions that may arise during the course of your transaction. This space is provided to help you keep information that is specific to your transaction available to you. Name of Case Manager: Date of Duplication of Benefits (DOB) meeting with Case Manager: Location of DOB meeting: Date and conclusions (if any) of telephone call to agent on status ofDOB verification: Date you received the State Offer to Purchase this storm-damaged property: Date of meeting with your Case Manager to discuss the States Offer to Purchase: Date of the States Offer to Purchase stating the amount of the offer: Projected closing date:

Date you received the preliminary closing statement with confirmed amounts of payments and net proceeds:
Actual closing date on sale of storm-damaged property: Replacement home purchase date: Replacement home purchase price:

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