CONSIDERATIONS WHEN UTILIZING LAST RESORT HOUSING

The cost-effective use of last resort housing requires the exercise of sound judgment. The

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following paragraphs describe various items that should be considered when utilizing last resort housing.

1. The funds that the State authorizes for last resort housing are to provide housing for a displaced person. Last resort housing is a program characterized by large payments justified by a need for comparable housing that is costly to meet. The opportunity for the displaced person to utilize the funds for anything other than replacement housing should be minimized to the extent possible.

2. Contact displaced persons annually after they move. If rent is subsidized as a last resort housing method, annual installments may be established instead of a lump sum disbursement of the rental assistance payment. Escrow accounts should only be established with the consent of the displaced person that this is the most appropriate method to assure housing availability. Do not set up accounts to be paid to landlords or other persons without their written agreement to provide the selected housing and maintain it in a DS&S condition throughout the agreed period of occupancy.

An example of why follow-ups visits can be important during escrow account periods payable to landlords occurred when one relocation office established a trust account at a local bank for the routine issuance of monthly rent subsidy payments to the landlord.

The house was discovered advertised for sale several weeks later without notice to the agency that caused the displacement. The rent subsidy payments would have continued to the owner after the sale if the Specialist had not discovered on the follow-up visit that the house was for sale, and the tenant was scheduled for eviction.

3. Investigate the desires, needs, and intentions of the displaced person before deciding on a last resort housing method. In depth interviews should be conducted before planning replacement housing solutions. There may be several alternatives available for one or a group of displaced persons. Do not make assumptions about the acceptability of a particular housing alternative until all of the options have been explored, and the feasible alternatives discussed with the displacee.

4. Coordination with other agencies able to provide assistance should be accomplished and opportunities for cooperative agreements should be explored. Local housing may be in a better position to provide and manage replacement housing situations than the State. Last resort housing projects may be contracted to other agencies for management as well as construction. However, the State retains responsibility for the successful outcome of the relocation.

5. If appropriate and with the concurrence of the displaced person, consideration may be given to using a last resort rental assistance payment to assist in making a downpayment for replacement housing.

6. All feasible housing proposals should be discussed with the displaced person before proceeding with the plan the displacee selected. The written consent of the displaced person to accept a housing proposal should be secured before the plan is implemented.

In the absence of such a written agreement, the potential exists for a substantial

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expenditure of funds to accomplish housing, which the displaced person may be unwilling to accept and occupy.

7. Consideration should be given to the community impact of any housing solution. For instance, it may better serve the public for an existing house to be rehabilitated than for a new house to be constructed nearby. Rehabilitation could serve two goals: removal of a blighting influence and re-housing the displaced person. However, remember that the initial concern is furnishing comparable D&SS housing to the displaced person.

8. Do not limit consideration of housing solutions to those with minimum administrative involvement. People who are displaced often have unique needs. Housing solutions may have to be creative and individualized to meet those needs. Merely providing the displaced person with more money to spend on housing may be administratively simple, but this method may be more expensive then other housing solutions. It only addresses the specific need of higher cost while other needs go unassisted if they are present.

9. Last resort housing should be used only after all relocation benefits and services provided in the Uniform Act have been determined inadequate to meet the needs of the displacee. Last resort housing should not be a substitute for lack of lead-time or inadequate relocation advisory services. Some Specialists may tend to postpone contacts with displaced persons whose needs are more difficult to meet, i.e. large families, or a handicapped person needing a one-story replacement unit. The use of last resort housing to shore up an inefficient relocation program is wasteful and is perceived as inequitable by persons not receiving last resort housing benefits.

10. Make every attempt to identify potential last resort housing cases early. Knowing that last resort housing is a possibility may focus attention on a case early enough to enable the State to resolve the problem by intensifying the relocation assistance provided.

Also, if the need for last resort housing is later confirmed, the advance planning will provide sufficient time for the State to consider a broad range of last resort housing alternatives.

11. Be aware that the personal circumstances of a displaced person can change after relocation into last resort housing. A subsequent move may be necessary due to a job opportunity in a distant location, a family illness, loss of employment, or other similar reasons. The last resort housing method should not freeze a person into a dwelling. On the other hand, the State cannot incur additional costs to subsidize a subsequent move that is not project related. To the extent feasible, the State should be willing to make benefits transferable.

12. Although it is not required, a plan should be developed that defines the needs of the displaced persons, the method of providing the necessary housing, and an explanation of the level of funding necessary. The plan is a guide for action. It can protect the program from manipulation and later charges of "making up the rules as we go along."

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Replacement Housing of Last Resort should be considered during the relocation planning process for any project with displaced persons who cannot be moved using the regular program benefits and procedures. Early planning as well as early contact of affected displaced persons should be emphasized when last resort housing is being considered on a project.

Lead-time may be needed to complete the plan and avoid costly delays.

G. LAST RESORT HOUSING PROCEDURES