§ 14-3-5. CALCULATION OF A REAL ESTATE PURCHASE BENEFIT.

(A)

The city manager shall calculate the amount of a real estate purchase benefit only as provided in this section. Notwithstanding any other provision of this chapter, the total amount of a real estate purchase benefit may not exceed $22,500.

(B)

The amount of a real estate purchase benefit is the reasonable cost of a comparable property minus the amount paid by the City to the displaced owner for the acquisition of the displaced owner's property. The real estate purchase benefit may not exceed the actual difference between the amount the displaced owner paid for a comparable property and the amount paid by the City to the displaced owner for the acquisition of the displaced owner's property. If a displaced owner has received a rental assistance payment, the amount of the rental assistance benefit must be subtracted from a real estate purchase benefit.

(C)

The city manager may establish a schedule of prices for comparable properties in the local market. If the city manager establishes a schedule of prices, the schedule must be based on an analysis of the market and periodically updated. The city manager shall consider prices being paid by other governmental agencies causing displacement in the local market.

(D)

The city manager may determine the price of a comparable property by pricing at least three properties comparable to the property acquired by the City that are available on the private market. If fewer than three comparable properties are available, the city manager may use fewer than three comparable prices to make a determination under this subsection. The city manager shall consider the difference between an asking price and a selling price in determining a price.

(E)

If an expense set forth in this subsection is incurred by the displaced owner after a date set forth in Section 14-3-4(B)(1) ( Real Estate Purchase Benefit ), and if the expense is approved by the City before it is incurred by the displaced owner, the cost of a comparable property may include:

(1)

legal, closing and related costs including a title search, preparing conveyance contracts, notary fees, surveys, and charges paid incident to recording the deed;

(2)

lender's, FHA, or VA appraisal fees;

(3)

FHA or VA application fees;

(4)

certification of structural soundness when required by a lender, FHA, or VA;

(5)

a credit report;

(6)

a title policy or abstract of title;

(7)

an escrow agent's fee;

(8)

state revenue stamps, if any; and

(9)

sales or transfer taxes.

Source: 1992 Code Sections 15-8-4(A) and (D); Ord. 031204-12; Ord. 031211-11.