Deed - 1234 Orchard Ave (Thrasher Park) - File 1267, 1990

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Pennington Appeal February 14, 1991 The first phase to complete this project was to purchase Mrs. Pennington's house. Mr. Andrews updated his appraisal report from 1986 and on October 10, 1989 the City offered a fair market value of $140,000 to Mrs. Pennington's Attorney to purchase her house. At the time the City offered to purchase Mrs. Pennington's property in 1989, Alameda County Public Works Agency Real Estate Office began to contact Mrs. Pennington and provide relocation assistance. She was explained her relocation benefits as specified by Federal and State guidelines. The County performed a Replacement Housing Valuation Report (RAP) which reviews the size, characteristics and needs of a family who is being displaced. Mrs. Pennington was also explained payment of her moving expenses as specified under Federal and State guidelines. Because of Mrs. Pennington's additional bedroom in the garage and floor space used in her basement, she was given credit for these rooms when calculating her replacement housing benefits. Actually, her 1,056 Sq. Ft. house became a larger home of about 1,500 to 1,800 sq. ft. under her relocation assistance. Mrs. Pennington was calculated by the County to receive a last resort housing payment up to a maximum of $45,000. This was based on the difference between the $140,000 fair market price established by the City's appraiser and $185,000 comparable housing unit value established in her last resort housing plan prepared by the County. Usually, a family falls within a replacement housing payment up to a maximum of $22,500. Because of Mrs. Pennington's housing characteristics and family needs, she significantly exceeded the normal payment of a replacement housing benefit. Eminent Domain action was initiated by the City in February, 1990, because Mrs. Pennington could not decide to accept the City's offer of $140,000. At the Eminent Domain Public Hearing on March 19, 1990, the City Council adopted the Resolution of Necessity, however, City staff agreed to have our appraiser review his appraisal report to determine if the fair market value had increased since October, 1989. Mrs. Pennington believed her home was worth more than $140,000. In May 1990, an updated appraisal report was prepared that established a fair market value at $167,500 on Mrs. Pennington's house. On August 22, 1990, the City closed escrow and purchased Mrs. Pennington's home for the fair market price of $167,500. With a purchase price of $167,500, this changed the maximum replacement housing benefit from $45,000 down to $17,500 for Mrs. Pennington. This change was caused by the difference of the fair market value of $185,000, established in the County's RAP study, and $167,500, the actual price Mrs. Pennington received as fair market value for her property. DISCUSSION The basis for Mrs. Pennington's appeal of her relocation assistance is over the maximum amount of $17,500 now established as her replacement housing benefit. She has appealed this decision to the City's Administrative Review Officer, Assistant City Manager, Mike Oliver. After hearing the facts presented by Mrs. Pennington and the Alameda County Relocation Specialist, Mr. Oliver denied her appeal for an increase. Mrs. Pennington is now exercising her right to appeal MW