City of Brentwood - Community Development - Redevelopment Division

What if the Brentwood Redevelopment Agency acquires your property

Prepared by the
Brentwood Redevelopment Agency
January 2003

This Guide is intended to provide general information with some specifics on the Property Acquisition Program. Further details regarding acquisition for public purposes are set forth in the Uniform Relocation Assistance and Real Property Acquisitions Policy Act of 1970 (Federal Uniform Act) and California Relocation Assistance and Real Property Acquisition Guidelines, California Administrative Code, Title 25, Chapter 6, prepared by the Department of Housing and Community Development (State Guidelines). In the event of any conflict, the Federal Uniform Act and State Guidelines shall be controlling.

Dear Property Owner:

As the Brentwood Redevelopment Agency (Agency) embarks upon the development of needed real estate projects and community facilities to improve our City, the Agency must often purchase real property on which to construct these projects.

If you own real property to be acquired for an Agency project, you are protected by the Uniform Relocation Assistance and Real Property Acquisitions Policies Act of 1970 (Federal Uniform Act), the California Relocation Assistance and Real Property Acquisition Guidelines (State Guidelines), and the eminent domain laws of the State of California.

This brochure describes many of the important facts about public acquisition of real estate (real property), under Federal and State laws, that should be useful to you.

We are available to answer your questions and to assist you in understanding the acquisition program. Should you desire further information, please contact the Redevelopment Agency offices at (925) 240-2508 or your Acquisition Agent. We firmly believe that full communication with you will greatly ease your concerns and provide a more efficient and effective community improvement program.

BRENTWOOD REDEVELOPMENT AGENCY
150 City Park Way
Brentwood, CA 94513
(925) 516-5187

What right does the Redevelopment Agency have to acquire my property?

Every public agency, including the Brentwood Redevelopment Agency, has certain powers which are necessary for it to operate effectively. For example, states have the power to levy taxes and the power to maintain order. Another power is the power to acquire private property for public purposes. This is known as the power of eminent domain.

The rights of each of us are protected by the Fifth and Fourteenth Amendments of the U.S. Constitution and by State Constitutions and eminent domain laws which guarantee that if a public agency takes private property it must pay "just compensation" to the owner.

Further, under the Uniform Relocation Assistance and Real Property Acquisitions Policy Act of 1970 (Federal Uniform Act) and the California Relocation Assistance and Real Property Acquisition Guidelines (State Guidelines), the owner has additional protections, some of which are explained in this brochure

Who made the decision to buy my property?

The decision to acquire a property for a public project usually involves many persons and many decisions. When redevelopment funds are provided for a project, the final decision to proceed with the project is made by the Redevelopment Agency (the elected Brentwood City Council members sit as the Brentwood Redevelopment Agency's governing body) after a thorough review which includes public hearings to obtain the views of interested citizens.

If you have any questions about the project or the selection of your property for acquisition, you should ask a representative of the Redevelopment Agency

How will the redevelopment Agency determine how much to offer me for my property?

Before making you an offer, the Redevelopment Agency will obtain at least one appraisal of your property by a competent real property appraiser who is familiar with local property values. The appraiser will inspect your property and state his professional opinion of its current fair market value in an appraisal report.

The Redevelopment Agency is required to offer you "just compensation" for your property. This amount cannot be less than the fair market value of your property as determined by the Redevelopment Agency on the basis of its approved appraisal

What is Fair Market Value?

Fair market value is sometimes defined as that amount of money which would probably be paid for a property in a sale between a willing seller, who does not have to sell, and a willing buyer, who does not have to buy. The fair market value of a property is generally considered to be "just compensation". Fair market value does not take into account intangible elements such as sentimental value, goodwill, business profits, or any "special" value that your property may have for you as an individual or for the Redevelopment Agency.

How does an appraiser determine the fair market value of my property?

Each parcel or real property is different and therefore no single formula can be devised to appraise all properties. Among the factors an appraiser typically considers in estimating the value of real property are:

    How it compares with similar properties in the area that have been sold recently.
    How much it would cost to reproduce the buildings and other structures, less any depreciation.
    How much rental income it could produce.

Will I have a chance to talk to the appraiser?

YES. You must be contacted and given the opportunity to accompany the appraiser on his inspection of your property. You may then inform the appraiser of any special features which you believe may add to the value of your property. It is in your best interest to provide the appraiser with all the useful information you can in order to insure that nothing of allowable value will be overlooked. If you are unable to meet with the appraiser, you may wish to have a person who is familiar with your property represent you.

How soon will the Redevelopment Agency give me a written purchase offer?

The timing of a purchase offer depends on the following factors:

    The amount of work required to appraise your property;
    The availability of funding; and,
    Possible project delays caused by factors outside the control of the Redevelopment Agency.

Typically, where Items 2 and 3 above are not involved, you can expect a written purchase offer within 60 to 90 days of completion of the appraisal. The appraisal of a single family residence takes approximately three to four weeks to complete from the date the property is inspected. A business or industrial property, on the other hand, can take several months to complete due to the much greater complexity involved.

The Redevelopment Agency must give you a written offer to acquire your property for the full amount it determines to be just compensation. Along with the offer you will receive a written statement explaining the basis for the determination of just compensation. No negotiations can take place before you receive this statement and the written purchase offer.

What are the advantages of selling my property to the Redevelopment Agency?

Redevelopment Agency pays full cash value for the property as determined by an independent appraiser. Seller does not have to provide financing to sell the property.
Seller does not have to pay real estate sales commission. Sales commissions typically equal 6% of the sales price in a private transaction.
Redevelopment Agency pays virtually all closing costs (i.e., escrow fees, recording fees, mortgage prepayment penalties).
Seller may receive favorable capital gains tax treatment and can transfer his existing property tax base to the replacement property.
Redevelopment Agency provides relocation benefits including referral assistance and cash payments.
Redevelopment Agency pays for moving expenses.

An example of a typical owner-occupied residential acquisition case is shown below:

Comparison of Agency Sale vs Private Sale
		Agency Private	Purchase Purchase
Sales Price (Fair Market Value)		$250,000	$250,000
Less Sales Commission of 6%		-0-	-15,000
Less Closing Costs		-0-	-2,500

Net Cash Before Mortgage Payoff		$250,000	$232,500
Add Relocation Benefits:
	Replacement Housing Payment	$17,500	$ -0-
	Moving Expenses (fixed payment or actual costs)	1,250	-0-

Total Compensation to Seller		$268,750	$232,500

Difference		+$36,250

In this case, the seller receives $36,250 more by selling to the Agency rather than a private party. Seller may also receive more favorable capital gains tax treatment and property tax relief benefits.

What is in the Redevelopment Agency's statement of the basis for its determination of just compensation?

The Redevelopment Agency's statement of the basis for its determination of just compensation must be provided to you with the written purchase offer. Among other things, this statement must include:

A general statement of the Redevelopment Agency's proposed use for the property.
An accurate description of the property to be acquired.
A list of the improvements covered by the offer.
The amount of the offer.
An indication that the offer does not reflect any relocation payments or other relocation assistance which you may receive under other regulations.
The recognized definition of the term "fair market value".

Must I accept the Redevelopment Agency's initial offer?

NO. You are entitled to present your evidence as to the amount you believe is the value of your property and to make suggestions for changing the terms and conditions of the offer. The Agency must make reasonable efforts to consider and respond to your evidence and suggestions. When fully justified by the available evidence of value, an adjustment in the offer price shall be considered by the Agency.

May I have someone represent me during negotiations?

YES. If you would like an attorney, real estate agent, or anyone else to represent you during negotiations, please so inform the Redevelopment Agency in writing. However, state law does not require the Redevelopment Agency to pay the costs of any such representation.

If I agree to accept the Redevelopment Agency's offer, how soon will I be paid?

If you reach a voluntary agreement to sell your property and your ownership (title) is clear, payment will be made at a mutually acceptable time. Generally, this should be possible within 30 to 60 days after you sign a purchase contract. If the title evidence obtained by the Redevelopment Agency indicates that further action is necessary to show your ownership is clear, you may be able to hasten the payment by helping the Redevelopment Agency to obtain the necessary proof. (Title evidence is basically a legal record of the ownership of the property. It identifies the owners of record and lists the restrictive deed covenants and recorded mortgages, liens, and other instruments affecting your ownership of the property.)

What happens if I don't agree to the final purchase offer by the Redevelopment Agency?

If you are unable to reach a voluntary agreement through negotiations, the Redevelopment Agency may file a suit in court to acquire your property through an eminent domain proceeding. Eminent domain proceedings are often referred to as condemnations. If your property is to be acquired by condemnation and you would like it done promptly, the Redevelopment Agency must file the condemnation suit without unreasonable delay. If the Redevelopment Agency decides to abandon its intention to acquire, it will immediately give such notice to the property owner.

What happens if the Redevelopment Agency condemns my property?

You will be notified of the action and given at least 15 days notice to attend a public hearing with the Redevelopment Agency's governing body to determine the need and necessity for the project. After the hearing, assuming need and necessity have been substantiated, the Redevelopment Agency will file a condemnation suit.

During the condemnation court proceedings, you will be provided an opportunity to introduce your evidence as to the value of your property. Of course, the Redevelopment Agency will have the same right. After hearing the evidence of all parties, the court will determine the amount of just compensation.

To help you in presenting your case in a condemnation proceeding, you may wish to consider employing an attorney and an appraiser. However, the costs of these professional services and other costs which you incur in presenting your case to the court are your responsibility.

What is an order for possession?

An order for possession is a process within a condemnation action which allows the Redevelopment Agency to have the use of your property prior to a negotiated settlement or an award of just compensation by the court. This procedure is used typically only where the use of your property is necessary to accomplish timely construction of the project for which your property is required.

To obtain an order for possession, the Redevelopment Agency must deposit with the court (or in an escrow account) an amount not less than its appraisal of the fair market value of the property. Ordinarily, the owner is then permitted to withdraw their share of this amount, LESS any amounts necessary to pay off any mortgage or other liens on the property and sums necessary to resolve any special ownership problems. Early withdrawal of your share of the money will not affect your right to seek additional compensation for your property. It is recommended that you have the help of an attorney if you intend to do this. Should the negotiated settlement or court award exceed the amount deposited by the Redevelopment Agency, you will be paid the difference, plus any interest that may be provided by State law.

What can I do if I am not satisfied with the court's determination?

If you are not satisfied with the court's determination of the amount for just compensation, you may file an appeal with the appropriate appellate court for the area in which your property is located. The Redevelopment Agency may also file an appeal if it believes the amount of the court judgment is too high.

Will I have to pay any settlement costs?

You will be responsible for the payment of the balance on any mortgage on your property. Also, if your ownership is not clear, you may have to pay the cost of clearing it. You will not be responsible for the reasonable and necessary costs of:

Typical legal and other services required to complete the sale, recording fees, transfer taxes and any similar expenses which are incidental to transferring ownership to the Redevelopment Agency.
Penalty costs and other charges necessary to permit prepayment of an earlier recorded mortgage on the property which was entered into in good faith.
Real property taxes covering the period after the Redevelopment Agency acquires your property.

The Redevelopment Agency will identify these items in a Settlement Cost Statement to be given to you at the time of settlement or soon after the court award of compensation, if the property is acquired by condemnation. Ordinarily, if you have paid any of these expenses yourself, you will be repaid at that time. If you later discover other costs for which you should be repaid, you should request repayment from the Redevelopment Agency within six months after the acquisition. The Redevelopment Agency will assist you in filing a claim for these costs. Finally, if you believe that you were not properly repaid, you may appeal first to the Redevelopment Agency, and if not satisfied, then to the courts.

May I keep any of the buildings or other improvements on my property?

Very often, many or all improvements on a property are not required by the Redevelopment Agency. This might include such items as fireplace mantel, your favorite shrubbery, or even an entire house. If you wish to keep any improvements, please let the Redevelopment Agency know as soon as possible.

If you do arrange to keep any improvement(s), the Redevelopment Agency will deduct its salvage value from the price you would otherwise receive. (The salvage value of an item is its probable selling price if offered for sale on the condition that the buyer will remove it at his own expense.) If you arrange to keep any real property improvement (such as a fireplace mantel or a shrub), you will not be entitled to receive a relocation payment for the cost of moving it to a new location.

Can the Redevelopment Agency take only a part of my property?

YES. But if the purchase of only a part of your property reduces the value of the remaining part(s), you must be paid for the loss in value. Also, if any remaining part would have little or no utility or value to you, the Redevelopment Agency will offer to acquire that remaining part from you, if you so desire. Whether the remaining part(s) have a reduced value after Agency acquisition will be determined by the Redevelopment Agency's appraiser and attorney as well as by negotiations with the property owner.

Will I have to pay rent to the Redevelopment Agency after my property is acquired?

If you or your tenants remain in the property after acquisition, you or the tenants will be required to pay a fair rent to the Redevelopment Agency. Generally, such rent will not be more than that charged as rent for the use of a property similar to yours in a similar area, or that which is within the occupant's financial means (defined by California Code of Regulations), whichever is less.

How soon must I move?

Every reasonable effort will be made to give you ample time to relocate after the acquisition of your property. In most cases a mutually satisfactory arrangement can be worked out. Except in an unusual instance where there is an urgent need for your property, you cannot be required to move from your residence or to move your business or farm operation without at least 90 days' advance written notice of the date by which your move is required.

If you reach a voluntary agreement to sell your property, you cannot be required to move before you receive the agreed purchase price. In the case of a condemnation, you cannot be required to move before the estimated fair market value of your property has been deposited with the court (or into escrow) so that you can withdraw your share.

If you are being displaced from your residence, decent, safe and sanitary replacement housing must be available before you can be required to move.