Greater Catskills Flood Remediation Program - Questions and Answers
Can the county request an extension of the deadline?
A. Yes, a 30-day deadline extensions can be requested in writing by fax or email.
The enacted budget language states that the county must "assure" the property is dedicated for open space, recreational use, wetlands, or flood mitigation purposes. Please define "assure."
A. For the purposes of this program, "assure" is defined as, "a guarantee; to make certain attainment of."
If "assure" indicates ownership, who must own, insure, and maintain the property?
A. The term "assure" does not indicate ownership of property.
Is the county required to take ownership?
A. The program requires the counties to acquire eligible homes from willing and eligible property owners (sellers); as such the county will take ownership of the property at time of closing.
Can a local land conservation group take ownership?
A. Following acquisition by the county, legal ownership of the property carries with it the traditional "bundle of legal rights" transferred with the property from seller to buyer. These are the recognized rights of the holder of title to the property and include, within local, state and federal laws, the rights of possession, control, exclusion, enjoyment, and disposition provided the county assures property will be dedicated and maintained in perpetuity for a use that is compatible with open space, recreational, flood mitigation, or wetlands management practices.
How does the County "assure" proper dedicated use of the land?
A. The county may use any legal instrument, e.g. restrictive covenants or deed restrictions, in accordance with local, state and federal laws to achieve this program requirement.
May this be accomplished through a conservation easement or deed restriction?
A. The county may use any legal instrument, e.g. restrictive covenants or deed restrictions, in accordance with local, state and federal laws to achieve this program requirement.
May an adjoining land owner purchase the property and place a conservation easement on the land?
A. Following acquisition by the county, legal ownership of the property carries with it the traditional "bundle of legal rights" transferred with the property from seller to buyer. These are the recognized rights of the holder of title to the property and include, within local, state and federal laws, the rights of possession, control, exclusion, enjoyment, and disposition provided the county assures property will be dedicated and maintained in perpetuity for a use that is compatible with open space, recreational, flood mitigation, or wetlands management practices.
How is the value determined?
A. Valuation is determined by a current legal real estate appraisal.
When does that transaction take place?
A. Exhibit B-Home Acquisition Form(s) which includes the current appraised value must be complete prior to submission of the RFP.
Who owns and maintains the property prior to the transfer?
A. The current legal owner (or seller) of the property.
How does the county deal with property disposition?
A. Counties should adhere to their current county policy governing the disposition of county-owned property.
Who handles the legal transactions for the county?
A. The county determines how program related legal transactions will be handled.
If it is outside counsel, is an RFP required for the professional services?
A. Counties should adhere to their current county policy governing the procurement or contracting of professional services.
Does this need to take place as part of the application process prior to the October 14, 2008 deadline?
A. Yes
Are program funds reimbursable? If so, how does the funding flow to the County? If borrowed, are interest and other borrowing costs eligible program expenses?
A. Eligible program costs can be reimbursed. Following grant contract execution counties will need to submit a request for release of funds for eligible program costs. Should the county find the need to borrow, interest or costs associated with borrowing are not eligible expenses.
If the funds are reimbursable, how long does it take to receive the funds from the state from the date of closing on an eligible property?
A. Upon grant contract execution between the HTFC and the counties, a program fund request and disbursement protocol will be established to make eligible, approved funds available to efficiently achieve the goals of the program.
Are there any advance payments made to the County?
A. Upon grant contract execution between the HTFC and the counties, a program fund request and disbursement protocol will be established to make eligible, approved funds available to efficiently achieve the goals of the program. This protocol will be established in concert with the county.
How much of the program funds may be used for administration and program delivery?
A. Program delivery and administration are not an eligible use of program funds. Non-property acquisition transaction costs are eligible, see Section. 2.1 of the RFP.
Are legal, appraisal, and recording fees considered to be part of these costs, or are they over and above program deliver and administration?
A. Yes. Legal, appraisal and recording fees are considered transaction costs.
Other soft costs under program delivery may include the costs to determine property eligibility by the local building inspector and the emergency management officer. Are these costs eligible?
A. No
Is the county required to certify the income of the seller?
A. Yes
If so, this requires a full income verification process. Does this need to be done prior to the October 14, 2008 deadline?
A. Yes, income verification must be performed prior to submitting Exhibit B- Home Acquisition Form and county specific income verification forms have been included as exhibits in the RFP.
Does demolition include debris removal, personal belonging removal, and site restoration?
A. Per section 1.3 of the RFP, "demolition" is defined as the removal of standing structures in accordance with federal, state, and local laws.
Are we required to RFP for demolition?
A. Counties should adhere to their current county policy governing the procurement of professional services or contracting.
What if during the demolition environmental hazards are discovered?
A. The current legal owner of the property is responsible for required remediation of discovered environmental hazards in accordance with local, state and federal laws.
What if during the demolition a buried oil tank is discovered?
A. The current legal owner of the property is responsible for required remediation of discovered environmental hazards in accordance with local, state and federal laws.
Who is responsible?
A. The current legal owner of the property is responsible for required remediation of discovered environmental hazards in accordance with local, state and federal laws.
What if the tank leaked and the soil has been contaminated?
A. The current legal owner of the property is responsible for required remediation of discovered environmental hazards in accordance with local, state and federal laws.
How is the value determined?
A. Valuation is determined by a current legal real estate appraisal.
Must it be determined prior to the October 14, 2008 deadline?
A. Yes, Exhibit B-Home Acquisition Form(s) which includes the current appraised value must be complete prior to submission of the RFP.
If a forensic appraisal is required, does this need to be accomplished prior to the October 14, 2008 deadline?
A. Yes, Exhibit B-Home Acquisition Form(s) which includes the current appraised value must be complete prior to submission of the RFP.
Who pays for this expense?
A. The county, however appraisals are considered transaction costs.
Are we required to RFP?
A. Counties should adhere to their current county policy governing the procurement or contracting of professional services.
Who determined that the County is placing a preference on properties that are valued at less than $150,000 and have been subject to two or more floods?
A. Direction on county preference for eligible homes is in accordance with the NYS enacted budget and Section 3.1 (3) of this RFP.
Since prior insurance and flood relief funds must be subtracted from the appraised property value, who must investigate and certify the funds were received?
A. The county is required to certify property casualty insurance of disaster relief payments received by the owner as compensation for damage incurred in a flood incident.
In the past, we have worked with SEMO to determine the NFIP payments to the homeowners. Can OCR establish a system with SEMO to determine the past payments to the potential participants?
A. The county managed program affords the county the opportunity to establish its own process or system for determining certification of past payments described above. The county must ensure they are satisfied satisfaction and per Section 4.3 of the RFP, they must describe the sources used to determine the amount received by the owner.
If the funds received were re-invested in the home, how are we to determine the re-investment?
A. In accordance with Section 3.1 of the RFP, if the homeowner can document to the satisfaction of the county that they invested some or all of the payments back into the home, those documented amounts may not be deducted from the appraised value on which the offer is based.
Often times the repairs made to a home were completed by the owner and there is no documentation of labor costs. How is re-investment to be determined and documented?
A. If those costs can not be determined and documented to the satisfaction of the county than they can not be deducted from the appraised value on which the offer is based.
Based on our counties past experience, the amount of insurance and flood relief proceeds has been in the tens of thousands. The subsequent value of the home is not enough for the owner to purchase another home, leaving the owner with nowhere to go. However, if the value is based on property value prior to the flood damage, the picture is a bit different. Which value is required, pre- or post-flood?
A. The county may utilize legal property appraisal instruments or techniques that determine the value of the home "pre-flood".
Are the values and the re-investment amount required to be certified prior to the October 14, 2008 deadline?
A. Yes
Who determines and certifies that the property is likely to be subject to future flood incidents that would cause substantial damage?
A. The county emergency management director and local building inspector must certify that the home as having been subject to one or more incidents of flooding since April 1, 2004 and as likely to be subject to a future flood incident that would cause substantial damage thereto.
The language states that the county must assure that the home will be condemned. Who certifies this? If the property is condemned and the owner backs out at closing, how can the local building inspector or emergency management officer reverse a condemnation? Who is liable? What if the property is occupied?
A. For the purposes of this program, the term "condemn" is defined as being unfit for use as certified by the local building inspector and emergency management officer having determined that the home is unsuitable for habitation or is likely to be subject to a future flood incident that would cause substantial damage. It is important to remember that transaction is voluntary and between a willing seller and buyer (the county).
Do we need appraisals just to apply for the funds?
A. Yes
Will the cost of securing appraisals be reimbursed?
A. Appraisals are considered transaction costs and are eligible for reimbursement.
There is a question regarding the owner's income. Are we supposed to be qualifying household incomes at this point?
A. Yes, income verification must be performed prior to submitting Exhibit B- Home Acquisition Form and county specific income verification forms have been included as exhibits in the RFP.
I understand the appraisal process, but in the RFP document that was sent out it states, "All recorded liens or other encumbrances on the home will be released at closing". Who pays for this? For example, if a property is appraised for $15, 000.00 and the mortgage or lien on the residence is $50,000.00, who is responsible to pay the difference? Is the homeowner responsible to pay off his lien, or will it be the County's responsibility to pay off the entire lien(s) on the property?
A. The property acquisition by the county is a traditional real estate transaction between a willing seller and buyer (the county) and these financial issues are to be addressed prior to sale agreement and closing between the seller and buyer. The program requirement is clear that all recorded liens or other encumbrances on the home will be released at closing. This program requirement must be met regardless of negotiated contract points between seller and buyer.
Does this include all home equity loans also?
A. Yes
When the County does finally incur the property, can the property be turned over to another municipality or sold at an auction? I understand there will forever be a deed restriction that will state the property may only be used for open space, recreational, flood mitigation or wetlands management purposes, but can the County turn over the property to the local municipality or include the property at the next County Auction?
A. Following acquisition by the county, legal ownership of the property carries with it the traditional "bundle of legal rights" transferred with the property from seller to buyer. These are the recognized rights of the holder of title to the property and include, within local, state and federal laws, the rights of possession, control, exclusion, enjoyment, and disposition provided the county assures property will be dedicated and maintained in perpetuity for a use that is compatible with open space, recreational, flood mitigation, or wetlands management practices.
In the demolition costs that are now included, are all associated costs included in the demolition, an eligible cost? For example, asbestos abatement or DEC permits and fees. Are they eligible costs?
A. Per section 1.3 of the RFP, "demolition" is defined as the removal of standing structures in accordance with federal, state, and local laws.
Does the County have to release an RFP for the demolition?
A. Counties should adhere to their current county policy governing the procurement or contracting of professional services.
Can the RFP contain all of the associated costs like permits, dumping fees, asbestos inspection & removal, etc?
A. Per section 1.3 of the RFP, "demolition" is defined as the removal of standing structures in accordance with federal, state, and local laws.
In the RFP under Section 3.1 it mentions "Counties are giving preference to homes with a current appraised values of less than one hundred fifty thousand dollars and to home that have been subject to two or more incidents of flooding since April 1, 2004". What if they have only been exposed to one flood? Are they not eligible or is preference given to persons whom have been affected by more than one flood over the residences that have only been affected by a single event?
A. In selecting homes for purchase pursuant to the act, each county shall give preference to homes with a current appraised value of less than one-hundred fifty thousand dollars and to homes that have been subject to two or more incidents of flooding since April 1, 2004.
Are secondary residences eligible to apply? It only mentions residences that are occupied as primary residences.
A. No, only primary residences are eligible for consideration.
If they are eligible, are they to be ranked lower than a primary residence?
A. Only primary residences are eligible for consideration.
Will this (the GCFRP) be similar to the FEMA program? (i.e. some uses such as open pavilions, community garden plots, skate board parks, etc. are acceptable even though this means the construction of some infrastructure on the site.)
A. Please refer to the response to question #5, which states, that following acquisition by the county, legal ownership of the property carries with it the traditional "bundle of legal rights" transferred with the property from seller to buyer. These are the recognized rights of the holder of title to the property and include, within local, state and federal laws, the rights of possession, control, exclusion, enjoyment, and disposition provided the county assures property will be dedicated and maintained in perpetuity for a use that is compatible with open space, recreational, flood mitigation, or wetlands management practices.
How will this be verified to be in compliance in perpetuity? Will the state conduct periodic checks or will there be required filings by the county periodically ensuring these requirements have continued to be met?
A. Contract obligations and the use of any legal instrument, e.g. restrictive covenants or deed restrictions, in accordance with local, state and federal laws to achieve this program requirement will guarantee approved use in perpetuity by requirement of law. Once all contract obligations are met and the grant is closed out, periodic reporting on such uses after program funds have been expended is not anticipated.
What value do we do the appraisal under. For example do we appraise the property as it stands today or do we appraise it as it stood prior to the last eligible flood event that affected the property and would the appraisal reflect the value of the land at that time or today's values? As an example: If a home was damaged in the June 2006 flood and we purchase it under this program would we appraise the property as it was June 20th 2006 with property values from June 2006 or would we appraise it as it stands now at today's property values?
A. Please see the response to question #40, which states, the county may utilize legal property appraisal instruments or techniques that determine the value of the home "pre-flood".
Is the appraisal a Fair Market Value appraisal or some other format?
A. Property valuation is determined by a current legal real estate appraisal. The county may choose any acceptable appraisal technique to establish a fair market value.
If the county conducts an appraisal and the property owner then opts not to participate and Exhibit B cannot be completed after finding out what their home would be purchased for will this appraisal cost be reimbursed?
A. Transaction costs are only reimbursable for properties that are acquired by the county under this program.
If the county conducts an appraisal and the property is deemed at a value greater than the $250,000.00 eligibility will this appraisal cost be reimbursed?
A. Transaction costs are only reimbursable for properties that are acquired by the county under this program.
Is there to be a separate form signed by the property owner that states they are voluntarily participating in this program to assure that all properties applied for are serious candidates for purchase?
A. This county-managed program affords the county the opportunity to establish its own process or system for ensuring compliance with the program regulations outlined in the enacted budget and Section 4.3 of the RFP.
What means should the county use to certify the household income? The Family household income verification form does not seem to be sufficient proof to protect the county and the state. Is there a requirement to get copies of past tax returns or some other form of proof?
A. This county-managed program affords the county the opportunity to establish its own process or system for ensuring compliance with the program regulations outlined in the enacted budget and Section 4.3 of the RFP. The county specific income verification forms which have been provided as exhibits in the RFP are representative of current federal income verification forms and are provided for convenience. Counties may elect to require additional documentation as they feel necessary to ensure compliance.
Even if site restoration is not funded will there be requirements as to how the sites are restored and whether debris can be backfilled into foundations as part demolition? In addition will there be requirements about what can be used as restorative materials such as the use of clean fill, ditch dirt or other materials?
A. Site restoration practices, as with all functions and activities associated with the program, must be performed in accordance with all applicable local, state and federal laws.
(in reference to question numbers 26-29) Since demolition will take place after purchase the current legal owner would be the county. Is this correct?
A. Yes
Since this is state funding SEQR will be required prior to purchase. How will SEQR be completed and won't remediation be determined under a SEQR review?
A. The State Environmental Quality Review Act (SEQR) (Article 8 of the New York State Environmental Conservation Law) and the implementing regulations at 6 NYCRR Part 617 require NYS agencies or units of local government to consider environmental factors prior to any decision to undertake, approve, or fund an action. Counties will be responsible for conducting the SEQR process for the Greater Catskill Flood Remediation Program.
When will SEQR be conducted?
A. The counties will determine when to conduct the SEQR process under this county-managed program.
Who will be lead agent under SEQR?
A. As part of the SEQR review, a determination of lead agency must be made. When a single agency is involved, that agency will be the lead agency. When more than one agency is involved, a lead agency must be established prior to a determination of significance. The lead agency is the party that conducts the SEQR review. The HTFC requires recipient counties of program funding to assume the role of lead agency unless another involved agency elects to assume such status.
Who are the other involved agencies for the SEQR review?
A. The counties should review SEQR regulations to identify other involved agencies. Information about SEQR is available on the Department of Environmental Conservation's website at http://www.dec.ny.gov/public/357.html and http://www.dec.ny.gov/public/36860.html.
Will it be done as a project SEQR or will each property be required to be reviewed separately?
A. The counties will make all determinations regarding SEQR.
If the state conducts SEQR what information will the county is required to provide for this review?
A. The state will not conduct the SEQR process.
(in reference to question #31) Is this Fair Market Value? Is it pre-flood event value or current value?
A. Yes. Please refer to the response to question #40, which states, the county may utilize legal property appraisal instruments or techniques that determine the value of the home "pre-flood". Also, please refer to question #59, which states that, property valuation is determined by a current legal real estate appraisal. The county may choose any acceptable appraisal technique to establish a fair market value.
(in reference to question #36) Does this mean that we are appraising pre-flood value given the fact we are subtracting all paid out flood insurance or other flood relief funds?
A. Yes
(in reference to question #39) Is this true or is this supposed to mean that the county WOULD deduct the value of flood insurance or relief payments from the appraisal, if we cannot verify to our satisfaction that the re-investment has been done?
A. If those costs can not be determined and documented to the satisfaction of the county than they can not be deducted from the appraised value on which the offer is based.
Are there programs available to the county to assist in relocation of these families within their community? This would be beneficial to assist in the loss of residents and valuable taxable property.
A. The counties are encouraged to investigate and research all local, state and federal homeownership programs and share that information with sellers.
Once awarded will there be any timelines to complete demolition and site restoration?
A. The overriding goal of this program is to get people and possessions out of harm's way. To that end, it would be advantageous and enable effective public safety to implement this program as efficiently and effectively as possible. No formal timelines have been established for the program.
During review under the FEMA programs SHPO was consulted on each property. To avoid any potential hazard to an archaeological, cultural or historically significant site SHPO required the following:
During the demolition phase, foundations of structures to be demolished will be pushed in below grade and basements will be backfilled using clean fill from an existing off-site material borrow source. Slabs, walkways, driveways, concrete stair footings, and similar appurtenances may also be removed. Ground disturbance will be limited to the immediate area of the demolished structures. Construction equipment will be operated within existing driveways and the perimeters of structures to limit ground disturbance.
Will we be required to do the same for this project?
A. Counties must consult with the NYS State Historic Preservation Office (SHPO) on whether there are any historic properties on the project site or whether the program activities will have an effect on historic properties. Counties must initiate the SHPO review process by submitting directly to SHPO, a SHPO Transmittal Letter for every project that may include an action that may have an adverse impact on properties that may be of historic significance. SHPO may ask the county for further information regarding the existing site or proposed project design in order to make its determination. Counties should consult with SHPO as soon as possible to prevent delays in the progress of program implementation.
Other buyouts require a legal survey of property lines be completed prior to closing to establish legal boundaries of ownership. Will this be a requirement and will surveys be a reimbursable cost?
A. Legal surveys are not a requirement of the program, however, if the county considers a legal survey as a transaction cost then under then under the program transaction costs are eligible. Please remember all transactions cost must be reasonable, quantifiable and relative to the number of homes proposed to be acquired.
Will there be quarterly reporting requirements and can reimbursements be drawn down quarterly to cover costs already expended?
A. Please refer to section 2.3 of the RFP for information on reporting requirements. Please refer to question #18, which states that, upon grant contract execution between the HTFC and the counties, a program fund request and disbursement protocol will be established to make eligible, approved funds available to efficiently achieve the goals of the program. This protocol will be established in concert with the county.
Last updated on 08/14/08