The following outlines the general step-by-step process for acquisition and demolition projects under the HMGP.

1.      Sign the State/Local Assistance Agreement attesting to the fact that they will follow applicable regulations, program requirements and procedures.

2.      Review commercial properties for any hazardous substances/materials.

3.      In compliance with Wisconsin Statutes Chapter 32 and Wisconsin Administrative Code ch. Comm. 202, develop and have approved a Relocation Plan for the project.

4.      Complete title searches or abstracts on properties to be acquired.  The Title Report or Opinion is updated at the time of closing. 

5.      Hire a Wisconsin licensed and certified appraiser for completing appraisals on the properties identified for the project.  Subgrantees should use the bidding process to hire the appraiser.  The URAR (Uniform Residential Appraisal Report) with an addendum (plus a sales book addendum when a large number of properties are acquired) is required for residential and vacant properties.  Full-narratives are required on commercial structures.  Appraisals will be completed to determine the pre- or post-flood Fair Market Value (FMV) of the property.   Do not discuss the appraisal with the property owner until such time the official offer to purchase is made.  Notify WEM when you begin the process of hiring an appraiser so that it may also begin its process of hiring a Review Appraiser.  The Review Appraiser is required to be a Wisconsin licensed and certified appraiser for a minimum of five years. 

6.      Once the appraiser has been hired, notify WEM to schedule the Pre-Appraisal Meeting or Conference Call.  The SHMO, subgrantee and appraiser will outline the procedures to be followed during the appraisal process.

7.      Forward appraisals to WEM who submits to the State’s Review Appraiser for review and approval.  The Review Appraiser reviews the appraisals to determine if they are acceptable and valid.  Based on the appraisal, the Review Appraiser approves the fair market value (FMV) and just compensation for the property.  The Review Appraiser submits his/her report on the property to WEM.

8.      WEM will determine any duplication of benefits (DOB) that may exist for the property.  These are benefits that the individual may have received from their insurance or from the Federal Government to cover damages to their property.  Duplication of benefits is to be deducted from the purchase price of the property. 

9.      WEM submits a letter along with the review appraisal report to the subgrantee providing authorization to make an offer to purchase based on the authorized amount less any duplication of benefits. 

10. Present the offer to purchase to the property owner.  The offer includes the FMV (less any duplicate of benefits) and the eligible relocation benefits.  (The relocation benefit identified in the Relocation Plan must be recalculated after the review appraisal process has been completed to ensure it takes into consideration the just compensation price and that it is current at the time of the offer.) 

11.At the time the offer to purchase is presented, the owner is again informed in writing that participation in the project is voluntary, and that the subgrantee will not use its power of condemnation if the offer is rejected.  The property owner signs the Statement of Voluntary Participation.

12.The property owner is given a decision period of 10 to 15 days to accept the offer, decline the offer, or make the decision to get a second appraisal.  If the owner accepts the offer, sign the offer agreement and proceed to set a time and date for the closing.  If the owner wants a second appraisal, go to step 14. 

13. If the property owner makes the decision to get a second appraisal, they are responsible for hiring the appraiser and the cost of the appraisal.  The appraisal is required to be completed again by a Wisconsin licensed and certified appraiser using the URAR (for residential and vacant property) using the comparable sales approach to determine the FMV (full narratives are required for commercial property).  The property owner should be given a specified timeframe (approximately 30 days) to have the second appraisal completed. 

14. Forward the second appraisal to the WEM whom forwards to the Review Appraiser.  The Review Appraiser reviews the second appraisal as per step 8 above, to make sure the same appraisal process was used as the first one, and the appraisal is acceptable and valid.  Based on the review, the Review Appraiser will determine first if it is a valid appraisal.  If it is, he will determine which appraisal, the first or second, is most valid and the revised offering price will be determined based on the appraisal that is most valid of the two.  If the appraisal is invalid, the Review Appraiser will not accept it.  (It is important that the property owner have an appraisal completed per the requirements in step 13.)

15. WEM will again forward an authorization letter with the revised offer to the subgrantee that must again recalculate the relocation benefits if the offer is different than the first authorized amount.

16. Present the second offer to purchase to the property owner.  The revised offer should include any updated relocation benefits. 

17. The owner is again given a decision period to accept the offer or decline the offer.  If the owner accepts the second offer, sign the offer agreement and proceed to set the date and time for a closing.  If the owner declines the offer, the process for this property is complete. 

18. Upon the property owner accepting an offer and signing the offer to purchase and prior to closing, the subgrantee needs to update the Title Report or abstract, and prepare a Title Opinion or purchase Title Insurance.

19. Prepare the required closing documents and proceed with the closing.  Payment will be made to the property owner for the purchase of the property less any duplication of benefits, liens on the property including judgments, and back taxes that may be owed.  Separate payments are to be made to lien holders by the subgrantee. 

20. For the Hazard Mitigation Grant Program complete and submit to WEM the Property Information Sheet (provided by WEM). 

21. Relocation benefits are not paid until relocation costs are actually incurred.  Property owner will submit documentation of such costs to the subgrantee that can then proceed to make payment, not to exceed the calculated eligible amount. 

22. After the property is vacated, proceed with demolition of the structure and site restoration. 

23. Upon completion of all activities associated with the property, submit required documentation to the WEM.

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