HomeMy WebLinkAboutM-03-0268RELOCATION AND COST ESTIMATE ANALYSIS
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Acquisition Cost Estimates
Acquisition Cost Estimates (cont.)
Scope
• Estimate parcel acquisition costs within two
study areas
• North - 29 parcels located North of 62nd Street
• South - 82 parcels located South of 62nd Stree
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Acquisition Cost Estimates (cont.)
Purpose
• Provide guidance to for
planning & budgeting
• Utilize four scenarios to identify potential total
project costs using different acquisition and
relocation criteria
• Allow flexibility so study areas can be divided
and arranged to provide unlimited acquisition
cost scenarios
Acquisition Cost Estimates (cont.)
Format
• FDOT approved process, modified to include
four scenarios
1) All Negotiation - No Relocation Benefits
2) All Negotiation - Including Relocation Benefits
3) Condemnation - No Relocation Benefits
4) Condemnation - Including Relocation Benefits
Acquisition Cost Estimates (cont.)
Budgeted costs
• Support costs (direct labor - City):1 .3% to 1.90/(
• Acquisition Consultant Support: 2.1% to 3.0%
• Operations (appraisal fees, demolition costs,
other expert witness fees): 11.4% to 12.9%
Acquisition Cost Estimates (cont.)
Budgeted costs (cont.)
• Land Costs (land and improvement costs plus any
admin. settlement increase): 49.3% to 83.7%
• Condemnation costs (litigation awards, owner
appraisal fees, defendant attorney fees, expert
witness fees): 25.5% to 28.0%
• Relocation costs (residential, business, and personal
property): 8.9% to 11.4%
Relocation Assistance
• Established under the Uniform Relocation and
Real Properties Acquisition Policies Act of
1970 (amended in 1989)
• The expressed intent of the Uniform Act is to
ensure equitable treatment for all who are
displaced by federally funded projects
• Failure to comply with the Uniform Act may
negate eligibility for federal assistance on all
phases of the project
Two Relocation Types
• Residential
Non=Residential
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Residential Relocation
• Personal property
• Residential owner occupant
• Residential tenants
Residential Relocation
• Personal property relocation involves
reimbursement for moving displaced
individual's personal property from acquired
real estate
Residential Relocation
• Residential owner occupants and tenants are
eligible to receive assistance in purchasing
decent, safe, and sanitary replacement
housing
Types of Assistance Provided:
Residential
• Advisory assistance
• Move cost reimbursement
• Replacement housing payment assistance
Non -Residential Relocation
• Personal property
• Business owners and tenants
• Not for profit organizations (owner/tenant)
Non -Residential Relocation
• Personal property relocation involves
reimbursement of the cost to move personal
property from acquired real estate
Non -Residential Relocation
• Business owners, business tenants, and not
for profit organizations are eligible to receive
monetary assistance in searching for
replacement sites, moving and
reestablishment of the non-residential entity
Relocation Assistance: Non -Residential
• Advisory assistance
• Move cost reimbursement
• Search expense reimbursement
• Reestablishment expense reimbursement
Relocation Assistance
• Implementing relocation guidelines per the
Uniform Act helps ensure eligibility for federal
assistance on all phases of the project
• All displaced residential and non-residential
entities are considered eligible for relocation
assistance as established by the Uniform Act
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PART 24 - UNIFORM RELOCATION ASSISTANCE
AND REAL PROPERTY ACQUISITION FOR FEDERAL
AND FEDERALLY ASSISTED PROGRAMS
FEDERAL REGULATIONS
Subpart A General
Section Page
24.1
4
Purpose.
24.2
4
Definitions.
24.3
13
No duplication of payments.
24.4
13
Assurances, monitoring and corrective action.
24.5
14
Manner of notices.
24.6
14
Administration of jointly -funded projects.
24.7
14
Federal agency waiver of regulations.
24.8
15
Compliance with other laws and regulations.
24.9
15
Record keeping and reports.
24.10
16
Appeals.
Subpart B Real Property Acquisition
24.101
17
Applicability of acquisition requirements.
24.102
18
Basic acquisition policies.
24.103
20
Criteria for appraisals.
24.104
22
Review of appraisals.
24.105
23
Acquisition of tenant -owned improvements.
24.106
23
Expenses incidental to transfer of title to the Agency.
24.107
24
Certain litigation expenses.
24.108
24
Donations.
Subpart C -- General Relocation Requirements
24.201
25
Purpose.
24.202
25
Applicability.
24.203
25
Relocation notices.
24.204
26
Availability of comparable replacement dwelling before displacement.
24.205
27
Relocation planning, advisory services, and coordination.
24.206
30
Eviction for cause.
24.207
30
General requirements -- claims for relocation payments.
24.208
31
Aliens not lawfully present in the United States.
24.209
33
Relocation payments not considered as income.
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Subpart D -- Payments for Moving and Related Expenses
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Payment for actual reasonable moving and related expenses residential
24.302
35
Fixed payment for moving expenses --residential moves.
24.303
35
Payment for actual reasonable moving expenses --nonresidential moves.
24.304
38
Reestablishment expenses nonresidential moves.
24.305
39
Ineligible moving and related expenses.
24.306
40
Fixed payment for moving expenses --nonresidential moves.
24.307
42
Discretionary utility relocation payments.
Subpart E -- Replacement Housing Payments
24.401 43 Replacement housing payment for 180 -day homeowner -occupants.
24.402 46 Replacement housing payment for 90 -day occupants.
24.403 49 Additional rules governing replacement housing payments.
24.404 51 Replacement housing of last resort.
Subpart F -- Mobile Homes
24.501 53 Applicability.
24.502 53 Moving and related expenses --mobile homes.
24.503 54 Replacement housing payment for 180 -day mobile homeowner -occupants.
24.504 54 Replacement housing payment for 90 -day mobile home occupants.
24.505 55 Additional rules governing relocation payments to mobile home occupants.
Subpart G -- Certification
24.601 56 Purpose.
24.602 56 Certification application.
24.603 56 Monitoring and corrective action.
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Appendix A 57 to Part 24 - Additional Information
Schedule 67 Residential Fixed Moving Schedule
The "Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as Amended.
Authority: Section 213, Uniform Relocation Assistance and Real Property Acquisition Policies Act of
1970, Pub. L. 91-646, 84 Stat. 1894 (42 U.S.C. 4601) as amended by the Surface
Transportation and Uniform Relocation Assistance Act of 1987, Title IV of Pub. L. 100-
17, 101 Stat. 246-256 (42 U.S.C. 4601 note); and 49 CFR 1.48(cc).
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Following are revisions to 49 CFR Part 24 effective 6/1/93.
Pages: 10 - 24.2 (Definitions) (2)(x)- "Persons not displaced"
12 - 24.2 Small Business
17 - 24.101(a)(5) (Acquisition Req) New Paragraph
21 - 24.103(d) Add (2) Qualifications of Appraisers (FIRREA)
38 - 24.304 (Reestablishment Exp) (a); (a)(3); (a)(8); (a)(10); (a)(13); (b)(3)
56 - 24.602 (Certification Application) deleted 24.602 (a)(b)(c)(d)(e)
56 - 24.603(d) (Monitoring and Corrective Action)
Following are revisions to 49 CFR Part 24 effective 10/1/99.
(A) Section 24.2 - Definitions. The Government Printing Office (GPO) initiated a
government -wide reformatting policy that removed all lettering references to the definitions.
Definitions are arranged in alphabetical order
(B) The following changes are a result of Public Law 105-117 - Aliens not lawfully present
in the United States."
Pages: 5 - New definition of "Alien not lawfully present in the United States"
6 - New definition of "Citizen"
10 - Add (xii) under "Persons not displaced"
12 - New definition of "State"
25 - Sec 24.203 - Ninety day notice
31 - Sec 24.208 - New section on "aliens not lawfully present in the United States"
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PART 24 - UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY
ACQUISITION FOR FEDERAL AND FEDERALLY ASSISTED PROGRAMS
Subpart A - General
Sec.
24.1 Purpose.24.2 Definitions.24.3 No duplication of payments.24.4 Assurances, monitoring and
corrective action.24.5 Manner of notices.24.6 Administration of jointly -funded projects.24.7
Federal agency waiver of regulations.24.8 Compliance with other laws and regulations.24.9
Recordkeeping and reports.24.10 Appeals.
Authority: 42 U.S.C. 4601 et seq.; 49 CFR 1.48(cc).
[57 FR 33264, July 27, 1992]
Sec. 24.1 Purpose.
The purpose of this part is to promulgate rules to implement the Uniform Relocation Assistance
and Real Property Acquisition Policies Act of 1970, as amended (42 U.S.C. 4601 et seq.), in
accordance with the following objectives:
(a) To ensure that owners of real property to be acquired for Federal and federally -assisted
projects are treated fairly and consistently, to encourage and expedite acquisition by agreements
with such owners, to minimize litigation and relieve congestion in the courts, and to promote
public confidence in Federal and federally -assisted land acquisition programs;
(b) To ensure that persons displaced as a direct result of Federal or federally -assisted projects are
treated fairly, consistently, and equitably so that such Dersons will not suffer disproportionate
injuries as a result of projects designed for the benefit of the public as a whole; and
(c) To ensure that Agencies implement these regulations in a manner that is efficient and cost
effective.
Sec. 24.2 Definitions.
Agency. The term "Agency" means the Federal agency, State, State agency, or person that
acquires real property or displaces a person.
(1) Acquiring agency. The term "acquiring agency" means a State agency, as defined in
paragraph (a)(4) of this section, which has the authority to acquire property by eminent
domain under State law, and a State agency or person which does not have such authority.
Any Agency or person solely acquiring property pursuant to the provisions of Sec.
24.101(a) (1), (2), (3), or (4) need not provide the assurances required by Sec. 24.4(a)(1)
or (2).
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(2) Displacing agency. The term "displacing agency" means any Federal agency carrying
out a program or project, and any State, State agency, or person carrying out a program or
project with Federal financial assistance, which causes a person to be a displaced person.
(3) Federal agency. The term "Federal agency" means any department, Agency, or
instrumentality in the executive branch of the Government, any wholly owned
Government corporation, the Architect of the Capitol, the Federal Reserve Banks and
branches thereof, and any person who has the authority to acquire property by eminent
domain under Federal law.
(4) State agency. The term "State agency" means any department, Agency or
instrumentality of a State or of a political subdivision of a State, any department, Agency,
or instrumentality of two or more States or of two or more political subdivisions of a
State or States, and any person who has the authority to acquire property by eminent
domain under State law.
Alien not lawfully present in the United States. The phrase "alien not lawfully present in
the United States" means an alien who is not "lawfully present" in the United States as
defined in 8 CFR 103.12 and includes:
(1) An alien present in the United States who has not been admitted or paroled into
the United States pursuant to the Immigration and Nationality Act and whose stay
in the United States has not been authorized by the United States Attorney General,
and
(2) An alien who is present in the United States after the expiration of the period of
stay authorized by the United States Attorney General or who otherwise violates the
terms and conditions of admission, parole or authorization to stay in the United
States.
Appraisal. The term "appraisal" means a written statement independently and impartially
prepared by a qualified appraiser setting forth an opinion of defined value of an adequately
described property as of a specific date, supported by the presentation and analysis of relevant
market information.
Business. The term "business" means any lawful activity, except a farm operation, that is
conducted:
(1) Primarily for the purchase, sale, lease and/or rental of personal and/or real property,
and/or for the manufacture, processing, and/or marketing of products, commodities,
and/or any other personal property; or
(2) Primarily for the sale of services to the public; or
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(3) Primarily for outdoor advertising display purposes, when the display must be moved
as a result of the project; or
(4) By a nonprofit organization that has established its nonprofit status under applicable
Federal or State law.
Citizen. The term "citizen," for purposes of this part, includes both citizens of the United
States and noncitizen nationals.
Comparable replacement dwelling. The term "comparable replacement dwelling" means a
dwelling which is:
(1) Decent, safe and sanitary as described in paragraph (f) of this section;
(2) Functionally equivalent to the displacement dwelling. The term "functionally
equivalent" means that it performs the same function, provides the same utility, and is
capable of contributing to a comparable style of living. While a comparable replacement
dwelling need not possess every feature of the displacement dwelling, the principal
features must be present. Generally, functional equivalency is an objective standard,
reflecting the range of purposes for which the various physical features of a dwelling may
be used. However, in determining whether a replacement dwelling is functionally
equivalent to the displacement dwelling, the Agency may consider reasonable trade-offs
for specific features when the replacement unit is "equal to or better than" the
displacement dwelling. (See Appendix A of this part);
(3) Adequate in size to accommodate the occupants;
(4) In an area not subject to unreasonable adverse environmental conditions;
(5) In a location generally not less desirable than the location of the displaced person's
dwelling with respect to public utilities and commercial and public facilities, and
reasonably accessible to the person's place of employment;
(6) On a site that is typical in size for residential development with normal site
improvements, including customary landscaping. The site need not include special
improvements such as outbuildings, swimming pools, or greenhouses. (See also Sec.
24.403(a)(2).);
(7) Currently available to the displaced person on the private market. However, a
comparable replacement dwelling for a person receiving government housing assistance
before displacement may reflect similar government housing assistance. (See Appendix A
of this part.); and
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(8) Within the financial means of the displaced person.
(i) A replacement dwelling purchased by a homeowner in occupancy at the
displacement dwelling for at least 180 days prior to initiation of negotiations
(180 -day homeowner) is considered to be within the homeowner's financial means
if the homeowner will receive the full price differential as described in Sec.
24.401(c), all increased mortgage interest costs as described at Sec. 24.401(d) and
all incidental expenses as described at Sec. 24.401(e), plus any additional amount
required to be paid under Sec. 24.404, Replacement housing of last resort.
(ii) A replacement dwelling rented by an eligible displaced person is considered to
be within his or her financial means if, after receiving rental assistance under this
part, the person's monthly rent and estimated average monthly utility costs for the
replacement dwelling do not exceed the person's base monthly rental for the
displacement dwelling as described at Sec. 24.402(b)(2).
(iii) For a displaced -person who is not eligible to receive a replacement housing
payment because of the person's failure to meet length -of -occupancy
requirements, comparable replacement rental housing is considered to be within
the person's financial means if an Agency pays that portion of the monthly
housing costs of a replacement dwelling which exceeds 30 percent of such
person's gross monthly household income or, if receiving a welfare assistance
payment from a program that designates amounts for shelter and utilities, the total
of the amounts designated for shelter and utilities. Such rental assistance must be
paid under Sec. 24.404, Replacement housing of last resort.
Contribute materially. The term "contribute materially" means that during the 2 taxable years
prior to the taxable year in which displacement occurs, or during such other period as the Agency
determines to be more equitable, a business or farm operation:
(1) Had average annual gross receipts of at least $5000; or
(2) Had average annual net earnings of at least $1000; or
(3) Contributed at least 33 1/3 percent of the owner's or operator's average annual gross
income from all sources.
(4) If the application of the above criteria creates an inequity or hardship in any given
case, the Agency may approve the use of other criteria as determined appropriate.
Decent, safe, and sanitary dwelling. The term "decent, safe, and sanitary dwelling" means a
dwelling which meets applicable housing and occupancy codes. However, any of the following
standards which are not met by an applicable code shall apply unless waived for good cause by
the Federal agency funding the project. The dwelling shall:
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(1) Be structurally sound, weather tight, and in good repair.
(2) Contain a safe electrical wiring system adequate for lighting and other devices.
(3) Contain a heating system capable of sustaining a healthful temperature (of
approximately 70 degrees) for a displaced person, except in those areas where local
climatic conditions do not require such a system.
(4) Be adequate in size with respect to the number of rooms and area of living space
needed to accommodate the displaced person. There shall be a separate, well lighted and
ventilated bathroom that provides privacy to the user and contains a sink, bathtub or
shower stall, and a toilet, all in good working order and properly connected to appropriate
sources of water and to a sewage drainage system. In the case of a housekeeping
dwelling, there shall be a kitchen area that contains a fully usable sink, properly
connected to potable hot and cold water and to a sewage drainage system, and adequate
space and utility service connections for a stove and refrigerator.
(5) Contains unobstructed egress to safe, open space at ground level. If the replacement
dwelling unit is on the second story or above, with access directly from or through a
common corridor, the common corridor must have at least two means of egress.
(6) For a displaced person who is handicapped, be free of any barriers which would
preclude reasonable ingress, egress, or use of the dwelling by such displaced person.
Displaced person.
(1) General. The term "displaced person" means, except as provided in paragraph
(2) of this definition, any person who moves from the real property or moves his or
her personal property from the real property: (This includes a person who occupies
the real property prior to its acquisition, but who does not meet the length of
occupancy requirements of the Uniform Act as described at Secs. 24.401(a) and
24.402(a)):
(i) As a direct result of a written notice of intent to acquire, the initiation of
negotiations for, or the acquisition of, such real property in whole or in part for a
project.
(ii) As a direct result of rehabilitation or demolition for a project; or
(iii) As a direct result of a written notice of intent to acquire, or the acquisition,
rehabilitation or demolition of, in whole or in part, other real property on which
the person conducts a business or farm operation, for a project. However,
eligibility for such person under this paragraph applies only for purposes of
obtaining relocation assistance advisory services under Sec. 24.205(c), and
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moving expenses under Secs. 24.301, 24.302 or 24.303.
(2) Persons not displaced. The following is a nonexclusive listing of persons who do not
qualify as displaced persons under this part:
(i) A person who moves before the initiation of negotiations (see also Sec.
24.403(d)), unless the Agency determines that the person was displaced as a direct
result of the program or project; or
(ii) A person who initially enters into occupancy of the property after the date of
its acquisition for the project; or
(iii) A person who has occupied the property for the purpose of obtaining
assistance under the Uniform Act;
(iv) A person who is not required to relocate permanently as a direct result of a
project. Such determination shall be made by the Agency in accordance with any
guidelines established by the Federal agency funding the project (see Also
Appendix A of this part); or
(v) An owner -occupant who moves as a result of an acquisition as described at
Sec. 24.101(a) (1) and (2) , or as a result of the rehabilitation or demolition of the
real property. (However, the displacement of a tenant as a direct result of any
acquisition, rehabilitation or demolition for a Federal or federally -assisted project
is subject to this part.); or
(vi) A person whom the Agency determines is not displaced as a direct result of a
partial acquisition; or (vii) A person who, after receiving a notice of relocation
eligibility (described at Sec. 24.203(b)), is notified in writing that he or she will
not be displaced for a project. Such notice shall not be issued unless the person
has not moved and the Agency agrees to reimburse the person for any expenses
incurred to satisfy any binding contractual relocation obligations entered into after
the effective date of the notice of relocation eligibility; or
(viii) An owner -occupant who voluntarily conveys his or her property, as
described at Sec. 24.101(a) (1) and (2), after being informed in writing that if a
mutually satisfactory agreement on terms of the conveyance cannot be reached,
the Agency will not acquire the property. In such cases, however, any resulting
s displacement of a tenant is subject to the regulations in this part; or
(ix) A person who retains the right of use and occupancy of the real property for
life following its acquisition by the Agency; or
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(x) An owner who retains the right of use and occupancy of the real property for a
fixed term after its acquisition by the Department of Interior under Pub. L. 93-477
or Pub. L. 93-303, except that such owner remains a displaced person for
purposes of subpart D of this part; or [58 FR 26070, April 30, 1993, (effective
date June 1, 1993)]
(xi) A person who is determined to be in unlawful occupancy prior to the
initiation of negotiations (see paragraph (y) of this section), or a person who has
been evicted for cause, under applicable law, as provided for in Sec. 24.206.
(xii) A person who is not lawfully present in the United States and who has
been determined to be ineligible for relocation benefits in accordance with
Sec. 24.208.
Dwelling. The term "dwelling" means the place of permanent or customary and usual residence
of a person, according to local custom or law, including a single family house; a single family
unit in a two-family, multi -family, or multi-purpose property; a unit of a condominium or
cooperative housing project; a non -housekeeping unit; a mobile home; or any other residential
unit.
Farm operation. The term "farm operation" means any activity conducted solely or primarily for
the production of one or more agricultural products or commodities, including timber, for sale or
home use, and customarily producing such products or commodities in sufficient quantity to be
capable of contributing materially to the operator's support.
Federal financial assistance. The term "Federal financial assistance" means a grant, loan, or
contribution provided by the United States, except any Federal guarantee or insurance and any
interest reduction payment to an individual in connection with the purchase and occupancy of a
residence by that individual.
Initiation of negotiations. Unless a different action is specified in applicable Federal program
regulations, the term "initiation of negotiations" means the following:
(1) Whenever the displacement results from the acquisition of the real property by a
Federal agency or State agency, the "initiation of negotiations" means the delivery of the
initial written offer of just compensation by the Agency to the owner or the owner's
representative to purchase the real property for the project. However, if the Federal
agency or State agency issues a notice of its intent to acquire the real property, and a
person moves after that notice, but before delivery to the initial written purchase offer,
the "initiation of negotiations" means the actual move of the person from the property.
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(2) Whenever the displacement is caused by rehabilitation, demolition or privately
undertaken acquisition of the real property (and there is no related acquisition by a
Federal agency or a State agency), the "initiation of negotiations" means the notice to the
person that he or she will be displaced by the project or, if there is no notice, the actual
move of the person from the property.
(3) In the case of a permanent relocation to protect the public health and welfare, under
the Comprehensive Environmental Response Compensation and Liability Act of 1980
(Pub. L. 96-510, or "Superfund") the "initiation of negotiations" means the formal
announcement of such relocation or the Federal or federally -coordinated health advisory
where the Federal Government later decides to conduct a permanent relocation.
Lead agency. The term "lead agency" means the Department of Transportation acting through
the Federal Highway Administration.
Mortgage. The term "mortgage" means such classes of liens as are commonly given to secure
advances on, or the unpaid purchase price of, real property, under the laws of the State in which
the real property is located, together with the credit instruments, if any, secured thereby.
Nonprofit organization. The term "nonprofit organization" means an organization that is
incorporated under the applicable laws of a State as a non-profit organization, and exempt from
paying Federal income taxes under section 501 of the Internal Revenue Code (26 U.S.C. 501).
Notice of intent to acquire or notice of eligibility for relocation assistance. Written notice
furnished to a person to be displaced, including those to be displaced by rehabilitation or
demolition activities from property acquired prior to the commitment of Federal financial
assistance to the activity, that establishes eligibility for relocation benefits prior to the initiation
of negotiation and/or prior to the commitment of Federal financial assistance.
Owner of a dwelling. A person is considered to have met the requirement to own'a dwelling if
the person purchases or holds any of the following interests in real property;
(1) Fee title, a life estate, a land contract, a 99 -year lease, or a lease including any options
for extension with at least 50 years to run from the date of acquisition; or
(2) An interest in a cooperative housing project which includes the right to occupy a
dwelling; or
(3) A contract to purchase any of the interests or estates described in paragraphs (p) (1)
or (2) of this section, or
(4) Any other interest, including a partial interest, which in the judgment of the Agency
warrants consideration as ownership.
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Person. The term "person" means any individual, family, partnership, corporation, or association.
Program or project. The phrase "program or project" means any activity or series of activities
undertaken by a Federal agency or with Federal financial assistance received or anticipated in any
phase of an undertaking in accordance with the Federal funding agency guidelines.
Salvage value. The term "salvage value" means the probable sale price of an item, if offered for
sale on the condition that it will be removed from the property at the buyer's expense, allowing a
reasonable period of time to find a person buying with knowledge of the uses and purposes for
which it is adaptable and capable of being used, including separate use of serviceable
components and scrap when there is no reasonable prospect of sale except on that basis.
Small business. A business having not more than 500 employees working at the site being
acquired or displaced by a program or project, which site is the location of economic activity.
Sites occupied solely by outdoor advertising signs, displays, or devices do not qualify as a
business for purposes of Sec. 24.304.
[58 FR 26070, April 30, 1993, (effective date June 1, 1993)]
State. Any of the several States of the United States or the District of Columbia, the
Commonwealth of Puerto Rico, any territory or possession of the United States, or a
political subdivision of any of these jurisdictions.
Tenant. The term "tenant" means a person who has the temporary use and occupancy of real
property owned by another.
Uneconomic remnant. The term "uneconomic remnant" means a parcel of real property in
which the owner is left with an interest after the partial acquisition of the owner's property, and
which the acquiring agency has determined has little or no value or utility to the owner.
Uniform Act. The term "Uniform Act" means the Uniform Relocation Assistance and Real
Property Acquisition Policy Act of 1970 (84 Stat. 1894; 42 U.S.C. 4601 et seq.; Pub. L. 91-646),
and amendments thereto.
Unlawful occupancy. A person is considered to be in unlawful occupancy if the person has been
ordered to move by a court of competent jurisdiction prior to the initiation of negotiations or is
determined by the Agency to be a squatter who is occupying the real property without the
permission of the owner and otherwise has no legal right to occupy the property under State law.
A displacing agency may, at its discretion, consider such a squatter to be in lawful occupancy.
Utility costs. The term "utility costs" means expenses for heat, lights, water and sewer.
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Utility facility. The term "utility facility" means any electric, gas, water, steampower, or
materials transmission or distribution system; any transportation system; any communications
system, including cable television; and any fixtures, equipment, or other property associated with
the operation, maintenance, or repair of any such system. A utility facility may be publicly,
privately, or cooperatively owned.
Utility relocation. The term "utility relocation" means the adjustment of a utility facility required
by the program or project undertaken by the displacing agency. It includes removing and
reinstalling the facility, including necessary temporary facilities; acquiring necessary
right-of-way on new location; moving, rearranging or changing the type of existing facilities; and
taking any necessary safety and protective measures. It shall also mean constructing a
replacement facility that has the functional equivalency of the existing facility and is necessary
for the continued operation of the utility service, the project economy, or sequence of project
construction.
Sec. 24.3 No duplication of pavments.
No person shall receive any payment under this part if that person receives a payment under
Federal, State, or local law which is determined by the Agency to have the same purpose and
effect as such payment under this part. (See Appendix A of this part, Sec. 24.3.)
Sec. 24.4 Assurances, monitoring and corrective action.
(a) Assurances.
(1) Before a Federal agency may approve any grant to, or contract, or agreement with, a
State agency under which Federal financial assistance will be made available for a project
which results in real property acquisition or displacement that is subject to the Uniform
Act, the State agency must provide appropriate assurances that it will comply with the
Uniform Act and this part. A displacing agency's assurances shall be in accordance with
section 210 of the Uniform Act. An acquiring agency's assurances shall be in accordance
with section 305 of the Uniform Act and must contain specific reference to any State law
' which the Agency believes provides an exception to section 301 or 302 of the Uniform
Act. If, in the judgment of the Federal agency, Uniform Act compliance will be served, a
State agency may provide these assurances at one time to cover all subsequent
federally -assisted programs or projects. An Agency which both acquires real property and
displaces persons may combine its section 210 and section 305 assurances in one
document.
(2) If a Federal agency or State agency provides Federal financial assistance to a "person"
causing displacement, such Federal or State agency is responsible for ensuring
compliance with the requirements of this part, notwithstanding the person's contractual
obligation to the grantee to comply.
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(3) As an alternative to the assurance requirement described in paragraph (a)(1) of this
section, a Federal agency may provide Federal financial assistance to a State agency after
it has accepted a certification by such State agency in accordance with the requirements in
Subpart G of this part.
(b) Monitoring and corrective action. The Federal agency will monitor compliance with this part,
and the State agency shall take whatever corrective action is necessary to comply with the
Uniform Act and this part. The Federal agency may also apply sanctions in accordance with
applicable program regulations. (Also see Sec. 24.603, Subpart G.)
(c) Prevention of fraud, waste, and mismanagement. The Agency shall take appropriate measures
to carry out this part in a manner that minimizes fraud, waste, and mismanagement.
Sec. 24.5 Manner of notices.
Each notice which the Agency is required to provide to a property owner or occupant under this
part, except the notice described at Sec. 24.102(b), shall be personally served or sent by certified
or registered first-class mail, return receipt requested, and documented in Agency files. Each
notice shall be written in plain, understandable language. Persons who are unable to read and
understand the notice must be provided with appropriate translation and counseling. Each notice
shall indicate the name and telephone number of a person who may be contacted for answers to
questions or other needed help.
Sec. 24.6 Administration of iointly-funded proiects.
Whenever two or more Federal agencies provide financial assistance to an Agency or Agencies,
other than a Federal agency, to carry out functionally or geographically related activities which
will result in the acquisition of property or the displacement of a person, the Federal agencies
may by agreement designate one such agency as the cognizant Federal agency. In the unlikely
event that agreement among the Agencies cannot be reached as to which agency shall be the
cognizant Federal agency, then the lead agency shall designate one of such agencies to assume
the cognizant role. At a minimum, the agreement shall set forth the federally assisted activities
which are subject to its terms and cite any policies and procedures, in addition to this part, that
are applicable to the activities under the agreement. Under the agreement, the cognizant Federal
agency shall assure that the project is in compliance with the provisions of the Uniform Act and
this part. All federally assisted activities under the agreement shall be deemed a project for the
purposes of this part.
Sec. 24.7 Federal agency waiver of regulations.
The Federal agency funding the project may waive any requirement in this part not required by
law if it determines that the waiver does not reduce any assistance or protection provided to an
owner or displaced person under this part. Any request for a waiver shall be justified on a
case-by-case basis.
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Sec. 24.8 Compliance with other laws and reeulations.
The implementation of this part must be in compliance with other applicable Federal laws and
implementing regulations, including, but not limited to, the following:
(a) Section I of the Civil Rights Act of 1866 (42 U.S.C. 1982 et seq.).
(b) Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.). (c) Title VIII of the
Civil Rights Act of 1968 (42 U.S.C. 3601 et seq.), as amended.
(d) The National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
(e) Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 790 et seq.).
(f) The Flood Disaster Protection Act of 1973 (Pub. L. 93-234).
(g) The Age Discrimination Act of 1975 (42 U.S.C. 6101 et seq.).
(h) Executive Order 11063 --Equal Opportunity and Housing, as amended by Executive
Order 12259.
(i) Executive Order 11246 --Equal Employment Opportunity.
0) Executive Order 11625 -Minority Business Enterprise.
(k) Executive Orders 11988, Floodplain Management, and 11990, Protection of
Wetlands.
(1) Executive Order 12250 --Leadership and Coordination of Non -Discrimination Laws.
(m) Executive Order 12259 --Leadership and Coordination of Fair Housing in Federal
Programs.
(n) Executive Order 12630 --Governmental Actions and Interference with Constitutionally
Protected Property Rights.
Sec. 24.9 Recordkeeping and reports.
(a) Records. The Agency shall maintain adequate records of its acquisition and displacement
activities in sufficient detail to demonstrate compliance with this part. These records shall be
retained for at least 3 years after each owner of a property and each person displaced from the
property receives the final payment to which he or she is entitled under this part, or in accordance
with the applicable regulations of the Federal funding agency, whichever is later.
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(b) Confidentiality of records. Records maintained by an Agency in accordance with this part are
confidential regarding their use as public information, unless applicable law provides otherwise.
(c) Reports. The Agency shall submit a report of its real property acquisition and displacement
activities under this part if required by the Federal agency funding the project. A report will not
be required more frequently than every 3 years, or as the Uniform Act provides, unless the
Federal funding agency shows good cause. The report shall be prepared and submitted in the
format contained in Appendix B of this part.
Sec. 24.10 Anneals.
(a) General. The Agency shall promptly review appeals in accordance with the requirements of
applicable law and this part.
(b) Actions which may be appealed. Any aggrieved person may file a written appeal with the
Agency in any case in which the person believes that the Agency has failed to properly consider
the person's application for assistance under this part. Such assistance may include, but is not
limited to, the person's eligibility for, or the amount of, a payment required under Sec. 24.106 or
Sec. 24.107, or a relocation payment required under this part. The Agency shall consider a
written appeal regardless of form.
(c) Time limit for initiating appeal. The Agency may set a reasonable time limit for a person to
file an appeal. The time limit shall not be less than 60 days after the person receives written
notification of the Agency's determination on the person's claim.
(d) Right to representation. A person has a right to be represented by legal counsel or other
representative in connection with his or her appeal, but solely at the person's own expense.
(e) Review of files by person making appeal. The Agency shall permit a person t6 inspect and
copy all materials pertinent to his or her appeal, except materials which are classified as
confidential by the Agency. The Agency may, however, impose reasonable conditions on the
person's right to inspect, consistent with applicable laws.
(f) Scope of review of appeal. In deciding an appeal, the Agency shall consider all pertinent
justification and other material submitted by the person, and all other available information that
is needed to ensure a fair and full review of the appeal.
(g) Determination and notification after appeal. Promptly after receipt of all information
submitted by a person in support of an appeal, the Agency shall make a written determination on
the appeal, including an explanation of the basis on which the decision was made, and furnish the
person a copy. If the full relief requested is not granted, the Agency shall advise the person of his
or her right to seek judicial review.
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(h) Agency official to review appeal. The Agency official conducting the review of the appeal
shall be either the head of the Agency or his or her authorized designee. However, the official
shall not have been directly involved in the action appealed.
SUBPART B - REAL PROPERTY ACQUISITION
Sec.
24.101 Applicability of acquisition requirements.24.102 Basic acquisition policies.24.103
Criteria for appraisals.24.104 Review of appraisals.24.105 Acquisition of tenant -owned
improvements.24.106 Expenses incidental to transfer of title to the Agency.24.107 Certain
litigation expenses.24.108 Donations.
Sec. 24.101 Applicability of acquisition requirements
(a) General. The requirements of this subpart apply to any acquisition of real property for a
Federal program or project, and to programs and projects where there is Federal financial
assistance in any part of project costs except for:
(1) Voluntary transactions that meet all of the following conditions:
(i) No specific site or property needs to be acquired, although the Agency may
limit its search for alternative sites to a general geographic area. Where an Agency
wishes to purchase more than one site within a geographic area on this basis, all
owners are to be treated similarly.
(ii) The property to be acquired is not part of an intended, planned, or designated
project area where all or substantially all of the property within the area is to be
acquired within specific time limits.
(iii) The Agency will not acquire the property in the event negotiations fail to
result in an amicable agreement, and the owner is so informed in writing.
(iv) The Agency will inform the owner of what it believes to be the fair market
value of the property.
(2) Acquisitions for programs or projects undertaken by an Agency or person that
receives Federal financial assistance but does not have authority to acquire property by
eminent domain, provided that such Agency or person shall:
(i) Prior to making an offer for the property, clearly advise the owner that it is
unable to acquire the property in the event negotiations fail to result in an
amicable agreement; and
(ii) Inform the owner of what it believes to be fair market value of the property.
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(3) The acquisition of real property from a Federal agency, State, or State agency, if the
Agency desiring to make the purchase does not have authority to acquire the property
through condemnation.
(4) The acquisition of real property by a cooperative from a person who, as a condition of
membership in the cooperative, has agreed to provide without charge any real property
that is needed by the cooperative.
(5) Acquisition for a program or proiect which is undertaken bv, or receives Federal
financial assistance from, the Tennessee Vallev Authoritv or the Rural
Electrification Administration.
(b) Less -than -full -fee interest in real property. In addition to fee simple title, the provisions of
this subpart apply when acquiring fee title subject to retention of a life estate or a life use; to
acquisition by leasing where the lease term, including option(s) for extension, is 50 years or
more; and to the acquisition of permanent easements. (See Appendix A of this part, Sec.
24.101(b).)
(c) Federally -assisted projects. For projects receiving Federal financial assistance, the provisions
of Secs. 24.102, 24.103, 24.104, and 24.105 apply to the greatest extent practicable under State
law. (See Sec. 24.4(a).)
Sec. 24.102 Basic acquisition policies.
(a) Expeditious acquisition. The Agency shall make every reasonable effort to acquire the real
property expeditiously by negotiation.
(b) Notice to owner. As soon as feasible, the owner shall be notified of the Agency's interest in
acquiring the real property and the basic protections, including the agency's obligation to secure
an appraisal, provided to the owner by law and this part. (See also Sec. 24.203.)
(c) Appraisal, waiver thereof, and invitation to owner. (1) Before the initiation of negotiations the
real property to be acquired shall be appraised, except as provided in Sec. 24.102 (c)(2), and the
owner, or the owner's designated representative, shall be given an opportunity to accompany the
appraiser during the appraiser's inspection of the property. (2) An appraisal is not required if the
owner is donating the property and releases the Agency from this obligation, or the Agency
determines that an appraisal is unnecessary because the valuation problem is uncomplicated and
the fair market value is estimated at $2,500 or less, based on a review of available data.
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(d) Establishment and offer of just compensation. Before the initiation of negotiations, the
Agency shall establish an amount which it believes is just compensation for the real property.
The amount shall not be less than the approved appraisal of the fair market value of the property,
taking into account the value of allowable damages or benefits to any remaining property. (See
also Sec. 24.104.) Promptly thereafter, the Agency shall make a written offer to the owner to
acquire the property for the full amount believed to be just compensation.
(e) Summary statement. Along with the initial written purchase offer, the owner shall be given a
written statement of the basis for the offer of just compensation, which shall include:
(1) A statement of the amount offered as just compensation. In the case of a partial
acquisition, the compensation for the real property to be acquired and the compensation
for damages, if any, to the remaining real property shall be separately stated.
(2) A description and location identification of the real property and the interest in the
real property to be acquired.
(3) An identification of the buildings, structures, and other improvements (including
removable building equipment and trade fixtures) which are considered to be part of the
real property for which the offer of just compensation is made. Where appropriate, the
statement shall identify any separately held ownership interest in the property, e.g., a
tenant -owned improvement, and indicate that such interest is not covered by the offer.
(f) Basic negotiation procedures. The Agency shall make reasonable efforts to contact the owner
or the owner's representative and discuss its offer to purchase the property, including the basis for
the offer of just compensation; and, explain its acquisition policies and procedures, including its
payment of incidental expenses in accordance with Sec. 24.106. The owner shall be given
reasonable opportunity to consider the offer and present material which the owner believes is
relevant to determining the value of the property and to suggest modification in the proposed
terms and conditions of the purchase. The Agency shall consider the owner's presentation.
(g) Updating offer of just compensation. If the information presented by the owner, or a material
change in the character or condition of the property, indicates the need for new appraisal
information, or if a significant delay has occurred since the time of the appraisal(s) of the
property, the Agency shall have the appraisal(s) updated or obtain a new appraisal(s). If the latest
appraisal information indicates that a change in the purchase offer is warranted, the Agency shall
promptly reestablish just compensation and offer that amount to the owner in writing.
(h) Coercive action. The Agency shall not advance the time of condemnation, or defer
negotiations or condemnation or the deposit of funds with the court, or take any other coercive
action in order to induce an agreement on the price to be paid for the property.
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(i) Administrative settlement. The purchase price for the property may exceed the amount offered
as just compensation when reasonable efforts to negotiate an agreement at that amount have
failed and an authorized Agency official approves such administrative settlement as being
reasonable, prudent, and in the public interest. When Federal funds pay for or participate in
acquisition costs, a written justification shall be prepared which indicates that available
information (e.g., appraisals, recent court awards, estimated trial costs, or valuation problems)
supports such a settlement.
(j) Payment before taking possession. Before requiring the owner to surrender possession of the
real property, the Agency shall pay the agreed purchase price to the owner, or in the case of a
condemnation, deposit with the court, for the benefit of the owner, an amount not less than the
Agency's approved appraisal of the fair market value of such property, or the court award of
compensation in the condemnation proceeding for the property. In exceptional circumstances,
with the prior approval of the owner, the Agency may obtain a right -of -entry for construction
purposes before making payment available to an owner.
(k) Uneconomic remnant. If the acquisition of only a portion of a property would leave the owner
with an uneconomic remnant, the Agency shall offer to acquire the uneconomic remnant along
with the portion of the property needed for the project. (See Sec. 24.2.)
(1) Inverse condemnation. If the Agency intends to acquire any interest in real property by
exercise of the power of eminent domain, it shall institute formal condemnation proceedings and
not intentionally make it necessary for the owner to institute legal proceedings to prove the fact
of the taking of the real property.
(m) Fair rental. If the Agency permits a former owner or tenant to occupy the real property after
acquisition for a short term or a period subject to termination by the Agency on short notice, the
rent shall not exceed the fair market rent for such occupancy.
Sec. 24.103 Criteria for appraisals.
(a) Standards of appraisal. The format and level of documentation for an appraisal depend on the
complexity of the appraisal problem. The Agency shall develop minimum standards for
appraisals consistent with established and commonly accepted appraisal practice for those
acquisitions which, by virtue of their low value or simplicity, do not require the in-depth analysis
and presentation necessary in a detailed appraisal. A detailed appraisal shall be prepared for all
other acquisitions. A detailed appraisal shall reflect nationally recognized appraisal standards,
including, to the extent appropriate, the Uniform Appraisal Standards for Federal Land
Acquisition. An appraisal must contain sufficient documentation, including valuation data and
the appraiser's analysis of that data, to support his or her opinion of value. At a minimum, a
detailed appraisal shall contain the following items:
20
(1) The purpose and/or the function of the appraisal, a definition of the estate being
appraised, and a statement of the assumptions and limiting conditions affecting the
appraisal.
(2) An adequate description of the physical characteristics of the property being appraised
(and, in the case of a partial acquisition, an adequate description of the remaining
property), a statement of the known and observed encumbrances, if any, title information,
location, zoning, present use, an analysis of highest and best use, and at least a 5 -year
sales history of the property.
(3) All relevant and reliable approaches to value consistent with commonly accepted
professional appraisal practices. When sufficient market sales data are available to
reliably support the fair market value for the specific appraisal problem encountered, the
Agency, at its discretion, may require only the market approach. If more than one
approach is utilized, there shall be an analysis and reconciliation of approaches to value
that are sufficient to support the appraiser's opinion of value.
(4) A description of comparable sales, including a description of all relevant physical,
legal, and economic factors such as parties to the transaction, source and method of
financing, and verification by a party involved in the transaction.
(5) A statement of the value of the real property to be acquired and, for a partial
acquisition, a statement of the value of the damages and benefits, if any, to the remaining
real property, where appropriate.
(6) The effective date of valuation, date of appraisal, signature, and certification of the
appraiser.
(b) Influence of the project on just compensation. To the extent permitted by applicable law, the
appraiser shall disregard any decrease or increase in the fair market value of the real property
caused by the project for which the property is to be acquired, or by the likelihood that the
property would be acquired for the project, other than that due to physical deterioration within
the reasonable control of the owner.
(c) Owner retention of improvements. If the owner of a real property improvement is permitted to
retain it for removal from the project site, the amount to be offered for the interest in the real
property to be acquired shall be not less than the difference between the amount determined to be
just compensation for the owner's entire interest in the real property and the salvage value
(defined at Sec. 24.2) of the retained improvement.
(d) Qualifications of appraisers.
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(1) The Agency shall establish criteria for determining the minimum qualifications of
appraisers. Appraiser qualifications shall be consistent with the level of difficulty of the
appraisal assignment. The Agency shall review the experience, education, training. and
other qualifications of appraisers, including review appraisers, and utilize only those
determined to be qualified.
(2) If the appraisal assignment requires the preparation of a detailed appraisal
pursuant to Sec. 24.103(a), and the Agency uses a contract (fee) appraiser to
perform the appraisal, such appraiser shall be certified in accordance with title XI
of the Financial Institutions Reform, Recoverv. and Enforcement Act of 1989
(FIRREA) (12 U.S.C. 3331 et seq.)
i (e) Conflict of interest. No appraiser or review appraiser shall have any interest, direct or indirect,
in the real property being appraised for the Agency that would in any way conflict with the
preparation or review of the appraisal. Compensation for making an appraisal shall not be based
on the amount of the valuation. No appraiser shall act as a negotiator for real property which that
person has appraised, except that the Agency may permit the same person to both appraise and
negotiate an acquisition where the value of the acquisition is $2,500, or less.
Sec. 24.104 Review of appraisals.
The Agency shall have an appraisal review process and, at a minimum:
(a) A qualified reviewing appraiser shall examine all appraisals to assure that they meet
applicable appraisal requirements and shall, prior to acceptance, seek necessary corrections or
revisions.
(b) If the reviewing appraiser is unable to approve or recommend approval of an appraisal as an
adequate basis for the establishment of the offer of just compensation, and it is determined that it
is not practical to obtain an additional appraisal, the reviewing appraiser may develop appraisal
documentation in accordance with Sec. 24.103 to support an approved or recommended value.
(c) The review appraiser's certification of the recommended or approved value of the property
shall be set forth in a signed statement which identifies the appraisal reports reviewed and
explains the basis for such recommendation or approval. Any damages or benefits to any
remaining property shall also be identified in the statement.
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Sec. 24.105 Acquisition of tenant -owned improvements.
(a) Acquisition of improvements. When acquiring any interest in real property, the Agency shall
offer to acquire at least an equal interest in all buildings, structures, or other improvements
located upon the real property to be acquired, which it requires to be removed or which it
determines will be adversely affected by the use to which such real property will be put. This
shall include any improvement of a tenant -owner who has the right or obligation to remove the
improvement at the expiration of the lease term.
(b) Improvements considered to be real property. Any building, structure, or other improvement,
which would be considered to be real property if owned by the owner of the real property on
which it is located, shall be considered to be real property for purposes of this Subpart.
(c) Appraisal and establishment of just compensation for tenant -owned improvements. Just
compensation for a tenant -owned improvement is the amount which the improvement contributes
to the fair market value of the whole property or its salvage value, whichever is greater.
(Salvage value is defined at Sec. 24.2.)
(d) Special conditions. No payment shall be made to a tenant -owner for any real property
improvement unless:
(1) The tenant -owner, in consideration for the payment, assigns, transfers, and releases to
the Agency all of the tenant -owner's right, title, and interest in the improvement; and
(2) The owner of the real property on which the improvement is located disclaims all
interest in the improvement; and
(3) The payment does not result in the duplication of any compensation otherwise
authorized by law.
(e) Alternative compensation. Nothing in this Subpart shall be construed to deprive the
tenant -owner of any right to reject payment under this Subpart and to obtain payment for such
property interests in accordance with other applicable law.
Sec. 24.106 Expenses incidental to transfer of title to the Ai!ency.
(a) The owner of the real property shall be reimbursed for all reasonable expenses the owner
necessarily incurred for:
(1) Recording fees, transfer taxes, documentary stamps, evidence of title, boundary
surveys, legal descriptions of the real property, and similar expenses incidental to
conveying the real property to the Agency. However, the Agency is not required to pay
costs solely required to perfect the owner's title to the real property; and
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(2) Penalty costs and other charges for prepayment of any preexisting recorded mortgage
entered into in good faith encumbering the real property; and
(3) The pro rata portion of any prepaid real property taxes which are allocable to the
period after the Agency obtains title to the property or effective possession of it,
whichever is earlier.
(b) Whenever feasible, the Agency shall pay these costs directly so that the owner will not have
to pay such costs and then seek reimbursement from the Agency.
Sec. 24.107 Certain litigation expenses.
The owner of the real property shall be reimbursed for any reasonable expenses, including
reasonable attorney, appraisal, and engineering fees, which the owner actually incurred because
of a condemnation proceeding, if:
(a) The final judgment of the court is that the Agency cannot acquire the real property by
condemnation; or
(b) The condemnation proceeding is abandoned by the Agency other than under an agreed-upon
settlement; or
(c) The court having jurisdiction renders a judgment in favor of the owner in an inverse
condemnation proceeding or the Agency effects a settlement of such proceeding.
Sec. 24.108 Donations.
An owner whose real property is being acquired may, after being fully informed by the Agency of
the right to receive just compensation for such property, donate such property or any part thereof,
any interest therein, or any compensation paid therefor, to the Agency as such owner shall
determine. The Agency is responsible for assuring that an appraisal of the real property is
obtained unless the owner releases the Agency from such obligation, except as provided in Sec.
24.102(c)(2).
Subpart C - General Relocation Requirements
Sec.
24.201 Purpose.24.202 Applicability.24.203 Relocation notices.24.204 Availability of
comparable replacement dwelling before displacement.24.205 Relocation planning, advisory
services, and coordination. 24.206 Eviction for cause.24.207 General requirements -claims for
relocation payments.24.208 Aliens not lawfully present in the United States.
24.209 Relocation payments not considered as income.
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Sec. 24.201 Purpose.
This Subpart prescribes general requirements governing the provision of,relocation payments and
other relocation assistance in this part.
Sec. 24.202 Applicabilitv.
These requirements apply to the relocation of any displaced person as defined at Sec. 24.2.
Sec. 24.203 Relocation notices.
(a) General information notice. As soon as feasible, a person scheduled to be displaced shall be
furnished with a general written description of the displacing agency's relocation program which
does at least the following:
(1) Informs the person that he or she may be displaced for the project and generally
describes the relocation payment(s) for which the person may be eligible, the basic
conditions of eligibility, and the procedures for obtaining the payment(s).
(2) Informs the person that he or she will be given reasonable relocation advisory
services, including referrals to replacement properties, help in filing payment claims, and
other necessary assistance to help the person successfully relocate.
(3) Informs the person that he or she will not be required to move without at least 90 days'
advance written notice (see paragraph (c) of this section), and informs any person to be
displaced from a dwelling that he or she cannot be required to move permanently unless
at least one comparable replacement dwelling has been made available.
(4) Describes the person's right to appeal the Agency's determination as to a person's
application for assistance for which a person may be eligible under this part.
(b) Notice of relocation eligibility. Eligibility for relocation assistance shall begin on the date of
initiation of negotiations (defined in Sec. 24.2 for the occupied property.) When this occurs,
the Agency shall promptly notify all occupants in writing of their eligibility for applicable
relocation assistance.
(c) Ninety -day notice.
(1) General. No lawful occupant shall be required to move unless he or she has received
at least 90 days advance written notice of the earliest date by which he or she may be
required to move.
(2) Timing of notice. The displacing agency may issue the notice 90 days before it
expects the person to be displaced or earlier.
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(3) Content of notice. The 90 -day notice shall either state a specific date as the earliest
date by which the occupant may be required to move, or state that the occupant will
receive a further notice indicating, at least 30 days in advance, the specific date by which
he or she must move. If the 90 -day notice is issued before a comparable replacement
dwelling is made available, the notice must state clearly that the occupant will not have to
move earlier than 90 days after such a dwelling is made available. (See Sec. 24.204(a).)
(4) Informs the person that any person who is an alien not lawfully present in the
United States is ineligible for relocation advisory services and relocation payments,
unless such ineligibility would result in exceptional and extremely unusual hardship
to a qualifying spouse, parent, or child, as defined in Sec. 24.208(i).
(5) Urgent need. In unusual circumstances, an occupant may be required to vacate the
property on less than 90 days advance written notice if the displacing agency determines
that a 90 -day notice is impracticable, such as when the person's continued occupancy of
the property would constitute a substantial danger to health or safety. A copy of the
Agency's determination shall be included in the applicable case file.
Sec. 24.204 Availability of comparable replacement dwelling before displacement.
(a) General. No person to be displaced shall be required to move from his or her dwelling unless
at least one comparable replacement dwelling (defined at Sec. 24.2) has been made available
to the person. Where possible, three or more comparable replacement dwellings shall be made
available. A comparable replacement dwelling will be considered to have been made available to
a person, if:
(1) The person is informed of its location; and
(2) The person has sufficient time to negotiate and enter into a purchase agreement or
lease for the property; and
(3) Subject to reasonable safeguards, the person is assured of receiving the relocation
assistance and acquisition payment to which the person is entitled in sufficient time to
complete the purchase or lease of the property.
(b) Circumstances permitting waiver. The Federal agency funding the project may grant a waiver
of the policy in paragraph (a) of this section in any case where it is demonstrated that a person
must move because of:
(1) A major disaster as defined in section 102(c) of the Disaster Relief Act of 1974 (42
U.S.C. 5121); or
(2) A presidentially declared national emergency; or
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(3) Another emergency which requires immediate vacation of the real property, such as
when continued occupancy of the displacement dwelling constitutes a substantial dancer
to the health or safety of the occupants or the public.
(c) Basic conditions of emergency move. Whenever a person is required to relocate for a
temporary period because of an emergency as described in paragraph (b) of this section, the
Agency shall:
(1) Take whatever steps are necessary to assure that the person is temporarily relocated to
a decent, safe, and sanitary dwelling; and
(2) Pay the actual reasonable out-of-pocket moving expenses and any reasonable increase
in rent and utility costs incurred in connection with the temporary relocation; and
(3) Make available to the displaced person as soon as feasible, at least one comparable
replacement dwelling. (For purposes of filing a claim and meeting the eligibility
requirements for a relocation payment, the date of displacement is the date the person
moves from the temporarily -occupied dwelling.)
Sec. 24.205 Relocation planning, advisory services, and coordination.
(a) Relocation planning. During the early stages of development, Federal and Federal -aid
programs or projects shall be planned in such a manner that the problems associated with the
displacement of individuals, families, businesses, farms, and nonprofit organizations are
recognized and solutions are developed to minimize the adverse impacts of displacement. Such
planning, where appropriate, shall precede any action by an Agency which will cause
displacement, and should be scoped to the complexity and nature of the anticipated displacing
activity including an evaluation of program resources available to carry out timely and orderly
relocations. Planning may involve a relocation survey or study which may include the following:
(1) An estimate of the number of households to be displaced including information such
as owner/tenant status, estimated value and rental rates of properties to be acquired,
family characteristics, and special consideration of the impacts on minorities, the elderly,
large families, and the handicapped when applicable.
(2) An estimate of the number of comparable replacement dwellings in the area
(including price ranges and rental rates) that are expected to be available to fulfill the
needs of those households displaced. When an adequate supply of comparable housing is
not expected to be available, consideration of housing of last resort actions should be
instituted.
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(3) An estimate of the number, type and size of the businesses, farms, and nonprofit
organizations to be displaced and the approximate number of employees that may be
affected.
(4) Consideration of any special relocation advisory services that may be necessary from
the displacing agency and other cooperating agencies.
(b) Loans for planning and preliminary expenses. In the event that an Agency elects to consider
using the duplicative provision in section 215 of the Uniform Act which permits the use of
project funds for loans to cover planning and other preliminary expenses for the development of
additional housing, the lead agency will establish criteria and procedures for such use upon the
request of the Federal agency funding the program or project.
(c) Relocation assistance advisory services.
(1) General. The Agency shall carry out a relocation assistance advisory program which
satisfies the requirements of Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et
seq.), Title VIII of the Civil Rights Act of 1968 (42 U.S.C. 3601 et seq.), and Executive
Order 11063 (27 FR 11527, November 24, 1962), and offers the services described in
paragraph (c)(2) of this section. If the Agency determines that a person occupying
property adjacent to the real property acquired for the project is caused substantial
economic injury because of such acquisition, it may offer advisory services to such
person.
(2) Services to be provided. The advisory program shall include such measures, facilities,
and services as may be necessary or appropriate in order to:
(i) Determine the relocation needs and preferences of each person to be displaced
and explain the relocation payments and other assistance for which the person
may be eligible, the related eligibility requirements, and the procedures for
obtaining such assistance. This shall include a personal interview with each
person.
(ii) Provide current and continuing information on the availability, purchase
prices, and rental costs of comparable replacement dwellings, and explain that the
person cannot be required to move unless at least one comparable replacement
dwelling is made available as set forth in Sec. 24.204(a).
(A) As soon as feasible, the Agency shall inform the person in writing of
the specific comparable replacement dwelling and the price or rent used
for establishing the upper limit of the replacement housing payment (see
Secs. 24.403 (a) and (b)) and the basis for the determination, so that the
person is aware of the maximum replacement housing payment for which
he or she may qualify.
(B) Where feasible, housing shall be inspected prior to being made
available to assure that it meets applicable standards. (See Sec. 24.2.) If
such an inspection is not made, the person to be displaced shall be
notified that a replacement housing payment may not be made unless the
replacement dwelling is subsequently inspected and determined to be
decent, safe, and sanitary.
(C) Whenever possible, minority persons shall be given reasonable
opportunities to relocate to decent, safe, and sanitary replacement
dwellings, not located in an area of minority concentration, that are within
their financial means. This policy, however, does not require an Agency to
provide a person a larger payment than is necessary to enable a person to
relocate to a comparable replacement dwelling.
(D) All persons, especially the elderly and handicapped, shall be offered
transportation to inspect housing to which they are referred.
(iii) Provide current and continuing information on the availability, purchase
prices, and rental costs of suitable commercial and farm properties and locations.
Assist any person displaced from a business or farm operation to obtain and
become established in a suitable replacement location.
(iv) Minimize hardships to persons in adjusting to relocation by providing
counseling, advice as to other sources of assistance that may be available, and
such other help as may be appropriate.
(v) Supply persons to be displaced with appropriate information concerning
Federal and State housing programs, disaster loan and other programs
administered by the Small Business Administration, and other Federal and State
programs offering assistance to displaced persons, and technical help to persons
applying for such assistance.
(vi) Any person who occupies property acquired by an Agency, when such
occupancy began subsequent to the acquisition of the property, and the occupancy
is permitted by a short term rental agreement or an agreement subject to
termination when the property is needed for a program or project, shall be eligible
for advisory services, as determined by the Agency.
(d) Coordination of relocation activities. Relocation activities shall be coordinated with project
work and other displacement -causing activities to ensure that, to the extent feasible, persons
displaced receive consistent treatment and the duplication of functions is minimized. (Also see
Sec. 24.6, Subpart A.)
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Sec. 24.206 Eviction for cause.
Eviction for cause must conform to applicable state and local law. Any person who occupies the
real property and is not in unlawful occupancy on the date of the initiation of negotiations, is
presumed to be entitled to relocation payments and other assistance set forth in this part unless
the Agency determines that:
(a) The person received an eviction notice prior to the initiation of negotiations and, as a result of
that notice is later evicted; or
(b) The person is evicted after the initation of negotiations for serious or repeated violation of
material terms of the lease or occupancy agreement; and
(c) In either case the eviction was not undertaken for the purpose of evading the obligation to
make available the payments and other assistance set forth in this part. For purposes of
determining eligibility for relocation payments, the date of displacement is the date the person
moves, or if later, the date a comparable replacement dwelling is made available. This section
applies only to persons who would otherwise have been displaced by the project.
Sec. 24.207 General requirements -claims for relocation pavments.
(a) Documentation. Any claim for a relocation payment shall be supported by such
documentation as may be reasonably required to support expenses incurred, such as bills,
certified prices, appraisals, or other evidence of such expenses. A displaced person must be
provided reasonable assistance necessary to complete and file any required claim for payment.
(b) Expeditious payments. The Agency shall review claims in an expeditious manner. The
claimant shall be promptly notified as to any additional documentation that is required to support
the claim. Payment for a claim shall be made as soon as feasible following receipt of sufficient
documentation to support the claim.
(c) Advance payments. If a person demonstrates the need for an advance relocation payment in
order to avoid or reduce a hardship, the Agency shall issue the payment, subject to such
safeguards as are appropriate to ensure that the objective of the payment is accomplished.
(d) Time for filing.
(1) All claims for a relocation payment shall be filed with the Agency within 18 months
after:
(i) For tenants, the date of displacement;
(ii) For owners, the date of displacement or the date of the final payment for the
acquisition of the real property, whichever is later.
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(2) This time period shall be waived by the Agency for good cause.
(e) Multiple occupants of one displacement dwelling. If two or more occupants of the
displacement dwelling move to separate replacement dwellings, each occupant is entitled to a
reasonable prorated share, as determined by the Agency, of any relocation payments that would
have been made if the occupants moved together to a comparable replacement dwelling.
However, if the Agency determines that two or more occupants maintained separate households
within the same dwelling, such occupants have separate entitlements to relocation payments.
(f) Deductions from relocation payments. An Agency shall deduct the amount of any advance
relocation payment from the relocation payment(s) to which a displaced person is otherwise
entitled. Similarly, a Federal agency shall, and a State agency may, deduct from relocation
payments any rent that the displaced person owes the Agency; provided that no deduction shall
be made if it would prevent the displaced person from obtaining a comparable replacement
dwelling as required by Sec. 24.204. The Agency shall not withhold any part of a relocation
payment to a displaced person to satisfy an obligation to any other creditor.
(g) Notice of denial of claim. If the Agency disapproves all or part of a payment claimed or
refuses to consider the claim on its merits because of untimely filing or other grounds, it shall
promptly notify the claimant in writing of its determination, the basis for its determination, and
the procedures for appealing that determination.
Sec 24.208 Aliens not lawfully present in the United States.
(a) Each person seeking relocation payments or relocation advisory assistance shall, as a
condition of eligibility, certify:
(1) In the case of an individual, that he or she is either a citizen or national of the
United States, or an alien who is lawfully present in the United States.
(2) In the case of a family, that each family member is either a citizen or national of
the United States, or an alien who is lawfully present in the United States. The
certification may be made by the head of the household on behalf of other family
members.
(3) In the case of an unincorporated business, farm, or nonprofit organization, that
each owner is either a citizen or national of the United States, or an alien who is
1
lawfully present in the United States. The certification may be made by the principal
owner, manager, or operating officer on behalf of other persons with an ownership
interest.
(4) In the case of an incorporated business, farm, or nonprofit organization, that the
corporation is authorized to conduct business within the United States.
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(b) The certification provided pursuant to paragraphs (a)(1), (a)(2), and (a)(3) of this
section shall indicate whether such person is either a citizen or national of the United
States, or an alien who is lawfully present in the United States. Requirements concerning
the certification in addition to those contained in this rule shall be within the discretion of
the Federal funding agency and, within those parameters, that of the displacing agency.
(c) In computing relocation payments under the Uniform Act, if any member(s) of a
household or owner(s) of an unincorporated business, farm, or nonprofit organization is
(are) determined to be ineligible because of a failure to be legally present in the United
States, no relocation payments may be made to him or her. Any payment(s) for which such
household, unincorporated business, farm, or nonprofit organization would otherwise be
eligible shall be computed for the household, based on the number of eligible household
members and for the unincorporated business, farm, or nonprofit organization, based on
the ratio of ownership between eligible and ineligible owners.
(d) The displacing agency shall consider the certification provided pursuant to paragraph
(a) of this section to be valid, unless the displacing agency determines in accordance with
paragraph (f) of this section that it is invalid based on a review of an alien's documentation
or other information that the agency considers reliable and appropriate.
(e) Any review by the displacing agency of the certifications provided pursuant to
paragraph (a) of this section shall be conducted in a nondiscriminatory fashion. Each
displacing agency will apply the same standard of review to all such certifications it
receives, except that such standard may be revised periodically.
(f) If, based on a review of an alien's documentation or other credible evidence, a displacing
agency has reason to believe that a person's certification is invalid (for example a document
reviewed does not on its face reasonably appear to be genuine), and that, as a result, such
person may be an alien not lawfully present in the United States, it shall obtain the
following information before making a final determination.
(1) If the agency has reason to believe that the certification of a person who has
certified that he or she is an alien lawfully present in the United States is invalid, the
displacing agency shall obtain verification of the alien's status from the local
Immigration and Naturalization Service (INS) Office. A list of local INS offices was
published in the Federal Register in November 17, 1997 at 62 FR 61350. Any
request for INS verification shall include the alien's full name, date of birth and
alien number, and a copy of the alien's documentation. [If an agency is unable to
contact the INS, it may contact the FHWA in Washington, DC at 202-366-2035
(Marshall Schy, Office of Real Estate Services) or 202-366-1371 (Reid Alsop, Office
of Chief Counsel), for a referral to the INS.]
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(2) If the agency has reason to believe that the certification of a person who has
certified that he or she is a citizen or national is invalid, the displacing agency shall
request evidence of United States citizenship or nationality from such person and, if
considered necessary, verify the accuracy of such evidence with the issuer.
(g) No relocation payments or relocation advisory assistance shall be provided to a person
who has not provided the certification described in this section or who has been determined
to be not lawfully present in the United States, unless such person can demonstrate to the
displacing agency's satisfaction that the denial of relocation benefits will result in an
exceptional and extremely unusual hardship to such person's spouse, parent, or child who
is a citizen of the United States, or is an alien lawfully admitted for permanent residence in
the United States.
(h) For purposes of paragraph (g) of this section, "exceptional and extremely unusual
hardship" to such spouse, parent, or child of the person not lawfully present in the United
States means that the denial of relocation payments and advisory assistance to such person
will directly result in:
(1) A significant and demonstrable adverse impact on the health or safety of
such spouse, parent, or child;
(2) A significant and demonstrable adverse impact on the continued existence of the
family unit of which such spouse, parent, or child is a member; or
(3) Any other impact that the displacing agency determines will have a significant
and demonstrable adverse impact on such spouse, parent, or child.
(i) The certification referred to in paragraph (a) of this section may be
included as part of the claim for relocation payments described in Sec. 24.207
of this part.
Sec. 24.209 Relocation payments not considered as income.
No relocation payment received by a displaced person under this part shall be considered as
income for the purpose of the Internal Revenue Code of 1954, which has been redesignated as
the Internal Revenue Code of 1986 or for the purpose of determining the eligibility or the extent
of eligibility of any person for assistance under the Social Security Act or any other Federal law,
except for any Federal law providing low-income housing assistance.
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Subpart D - Payments for Moving and Related Expenses
Sec.
24.301 Payment for actual reasonable moving and related expenses- residential moves.24.302
Fixed payment for moving expenses -residential moves.24.303 Payment for actual reasonable
moving and related expenses- nonresidential moves.24.304 Reestablishment
expenses -nonresidential moves.24.305 Ineligible moving and related expenses.24.306 Fixed
payment for moving expenses -nonresidential moves.24.307 Discretionary utility relocation
payments.
Sec. 24.301 Pavment for actual reasonable moving and related expenses -residential moves
Any displaced owner -occupant or tenant of a dwelling who qualifies as a displaced person
(defined at Sec. 24.2) is entitled to payment of his or her actual moving and related expenses, as
the Agency determines to be reasonable and necessary, including expenses for:
(a) Transportation of the displaced person and personal property. Transportation costs for a
distance beyond 50 miles are not eligible, unless the Agency determines that relocation beyond
50 miles is justified.
(b) Packing, crating, unpacking, and uncrating of the personal property.
(c) Disconnecting, dismantling, removing, reassembling, and reinstalling relocated household
appliances, and other personal property.
(d) Storage of the personal property for a period not to exceed 12 months, unless the Agency
determines that a longer period is necessary.
(e) Insurance for the replacement value of the property in connection with the move and
necessary storage.
(f) The replacement value of property lost, stolen, or damaged in the process of moving (not
through the fault or negligence of the displaced person, his or her agent, or employee) where
insurance covering such loss, theft, or damage is not reasonably available.
(g) Other moving -related expenses that are not listed as ineligible under Sec. 24.305, as the
Agency determines to be reasonable and necessary.
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Sec. 24.302 Fixed pavment for moving expenses -residential moves.
Any person displaced from a dwelling or a seasonal residence is entitled to receive an expense
and dislocation allowance as an alternative to a payment for actual moving and related expenses
under Sec. 24.301. This allowance shall be determined according to the applicable schedule
approved by the Federal Highway Administration. This includes a provision that the expense and
dislocation allowance to a person with minimal personal possessions who is in occupancy of a
dormitory style room shared by two or more other unrelated persons or a person whose
residential move is performed by an agency at no cost to the person shall be limited to $50.
Sec. 24.303 Pavment for actual reasonable moving and related expenses -nonresidential
moves.
(a) Eligible costs. Any business or farm operation which qualifies as a displaced person
(defined at Sec. 24.2) is entitled to payment for such actual moving and related expenses, as the
Agency determines to be reasonable and necessary, including expenses for:
(1) Transportation of personal property. Transportation costs for a distance beyond 50
miles are not eligible, unless the Agency determines that relocation beyond 50 miles is
justified.
(2) Packing, crating, unpacking, and uncrating of the personal property.
(3) Disconnecting, dismantling, removing, reassembling, and reinstalling relocated
machinery, equipment, and other personal property, including substitute personal property
described at Sec. 24.303(a)(12). This includes connection to utilities available nearby. It
also includes modifications to the personal property necessary to adapt it to the
replacement structure, the replacement site, or the utilities at the replacement site, and
modifications necessary to adapt the utilities at the replacement site to the personal
property. (Expenses for providing utilities from the right-of-way to the building or
improvement are excluded.)
(4) Storage of the personal property for a period not to exceed 12 months, unless the
Agency determines that a longer period is necessary.
(5) Insurance for the replacement value of the personal property in connection with the
move and necessary storage.
(6) Any license, permit, or certification required of the displaced person at the
replacement location. However, the payment may be based on the remaining useful life of
the existing license, permit, or certification.
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(7) The replacement value of property lost, stolen, or damaged in the process of moving
(not through the fault or negligence of the displaced person, his or her agent, or
employee) where insurance covering such loss, theft, or damage is not reasonably
available.
(8) Professional services necessary for:
(i) Planning the move of the personal property,
(ii) Moving the personal property, and
(iii) Installing the relocated personal property at the replacement location.
(9) Relettering signs and replacing stationery on hand at the time of displacement that are
made obsolete as a result of the move.
(10) Actual direct loss of tangible personal property incurred as a result of moving or
discontinuing the business or farm operation. The payment shall consist of the lesser of:
(i) The fair market value of the item for continued use at the displacement site,
less the proceeds from its sale. (To be eligible for payment, the claimant must
make a good faith effort to sell the personal property, unless the Agency
determines that such effort is not necessary. When payment for property loss is
claimed for goods held for sale, the fair market value shall be based on the cost of
the goods to the business, not the potential selling price.); or
(ii) The estimated cost of moving the item, but with no allowance for storage. (If
the business or farm operation is discontinued, the estimated cost shall be based
on a moving distance of 50 miles.)
(11) The reasonable cost incurred in attempting to sell an item that is not to be relocated.
(12) Purchase of substitute personal property. If an item of personal property which is
used as part of a business or farm operation is not moved but is promptly replaced with a
substitute item that performs a comparable function at the replacement site, the displaced
person is entitled to payment of the lesser of:
(i) The cost of the substitute item, including installation costs at the replacement
site, minus any proceeds from the sale or trade-in of the replaced item; or
(ii) The estimated cost of moving and reinstalling the replaced item but with no
allowance for storage. At the Agency's discretion, the estimated cost for a low cost
or uncomplicated move may be based on a single bid or estimate.
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(13) Searching for a replacement location. A displaced business or farm operation is
entitled to reimbursement for actual expenses, not to exceed $1,000, as the Agency
determines to be reasonable, which are incurred in searching for a replacement location,
including:
(i) Transportation.
(ii) Meals and lodging away from home.
(iii) Time spent searching, based on reasonable salary or earnings.
(iv) Fees paid to a real estate agent or broker to locate a replacement site,
exclusive of any fees or commissions related to the purchase of such site.
(14) Other moving -related expenses that are not listed as ineligible under Sec. 24.305, as
the Agency determines to be reasonable and necessary.
(b) Notification and inspection. The following requirements apply to payments under this
section:
(1) The Agency shall inform the displaced person, in writing, of the requirements of
paragraphs (b) (2) and (3) of this section as soon as possible after the initiation of
negotiations. This information may be included in the relocation information provided to
the displaced person as set forth in Sec. 24.203.
(2) The displaced person must provide the Agency reasonable advance written notice of
the approximate date of the start of the move or disposition of the personal property and a
list of the items to be moved. However, the Agency may waive this notice requirement
after documenting its file accordingly.
(3) The displaced person must permit the Agency to make reasonable and timely
inspections of the personal property at both the displacement and replacement sites and to
monitor the move.
(c) Self moves. If the displaced person elects to take full responsibility for the move of the
business or farm operation, the Agency may make a payment for the person's moving expenses in
an amount not to exceed the lower of two acceptable bids or estimates obtained by the Agency or
prepared by qualified staff. At the Agency's discretion, a payment for a low cost or
uncomplicated move may be based on a single bid or estimate.
(d) Transfer of ownership. Upon request and in accordance with applicable law, the claimant
shall transfer to the Agency ownership of any personal property that has not been moved, sold, or
traded in.
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(e) Advertising signs. The amount of a payment for direct loss of an advertising sign which is
personal property shall be the lesser of:
(1) The depreciated reproduction cost of the sign, as determined by the Agency, less the
proceeds from its sale; or
(2) The estimated cost of moving the sign, but with no allowance for storage.
Sec. 24.304 Reestablishment expenses -nonresidential moves.
In addition to the payments available under Sec. 24.303 of this subpart, a small business, as
defined in Sec. 24.2, farm or nonprofit organization is entitled to receive a payment, not to
exceed $10,000, for expenses actually incurred in relocating and reestablishing such small
business, farm or nonprofit organization at a replacement site.
(a) Eligible expenses. Reestablishment expenses must be reasonable and necessary, as
determined by the Agency. They include, but are not limited to, the following:
(1) Repairs or improvements to the replacement real property as required by Federal,
State or local law, code or ordinance.
(2) Modifications to the replacement property to accommodate the business operation or
make replacement structures suitable for conducting the business.
(3) Construction and installation costs for exterior signing to advertise the business.
(4) Provision of utilities from right-of-way to improvements on the replacement site.
(5) Redecoration or replacement of soiled or worn surfaces at the replacement site, such
as paint, panelling, or carpeting.
(6) Licenses, fees and permits when not paid as part of moving expenses.
(7) Feasibility surveys, soil testing and marketing studies.
(8) Advertisement of replacement location.
(9) Professional services in connection with the purchase or lease of a replacement site.
(10) Estimated increased costs of operation during the first 2 years at the replacement site
for such items as:
(i) Lease or rental charges,
(ii) Personal or real property taxes,
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(iii) Insurance premiums, and
(iv) Utility charges, excluding impact fees.
(11) Impact fees or one-time assessments for anticipated heavy utility usage.
(12) Other items that the Agency considers essential to the reestablishment of the
business.
[58 FR 26070, April 30, 1993, (effective date June 1, 1993)]
(b) Ineligible expenses. The following is a nonexclusive listing of reestablishment expenditures
not considered to be reasonable, necessary, or otherwise eligible:
(1) Purchase of capital assets, such as, office furniture, filing cabinets, machinery, or trade
fixtures.
(2) Purchase of manufacturing materials, production supplies, product inventory, or other
items used in the normal course of the business operation.
(3) Interest on money borrowed to make the move or purchase the replacement property.
(4) Payment to a part-time business in the home which does not contribute materially to
the household income.
[58 FR 26070, April 30, 1993, (effective date June 1, 1993))
Sec. 24.305 Ineligible moving and related expenses.
A displaced person is not entitled to payment for:
(a) The cost of moving any structure or other real property improvement in which the displaced
person reserved ownership. However, this part does not preclude the computation under Sec.
24.401(c)(4)(iii); or
(b) Interest on a loan to cover moving expenses; or
(c) Loss of goodwill; or
(d) Loss of profits; or
(e) Loss of trained employees; or
(f) Any additional operating expenses of a business or farm operation incurred because of
operating in a new location except as provided in Sec. 24.304(a)(10); or
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(g) Personal injury; or
(h) Any legal fee or other cost for preparing a claim for a relocation payment or for representing
the claimant before the Agency; or
(i) Expenses for searching for a replacement dwelling; or
(j) Physical changes to the real property at the replacement location of a business or farm
operation except as provided in Secs. 24.303(a)(3) and 24.304(a); or
(k) Costs for storage of personal property on real property already owned or leased by the
displaced person.
See. 24.306 Fixed oavment for moving expenses -nonresidential moves.
(a) Business. A displaced business may be eligible to choose a fixed payment in lieu of the
payments for actual moving and related expenses, and actual reasonable reestablishment
expenses provided by Secs. 24.303 and 24.304. Such fixed payment, except for payment to a
nonprofit organization, shall equal the average annual net earnings of the business, as computed
in accordance with paragraph (e) of this section, but not less than $1,000 nor more than $20,000.
The displaced business is eligible for the payment if the Agency determines that:
(1) The business owns or rents personal property which must be moved in connection
with such displacement and for which an expense would be incurred in such move; and,
the business vacates or relocates from its displacement site.
(2) The business cannot be relocated without a substantial loss of its existing patronage
(clientele or net earnings). A business is assumed to meet this test unless the Agency
determines that it will not suffer a substantial loss of its existing patronage; and
(3) The business is not part of a commercial enterprise having more than three other
entities which are not being acquired by the Agency, and which are under the same
ownership and engaged in the same or similar business activities.
(4) The business is not operated at a displacement dwelling solely for the purpose of
renting such dwelling to others.
(5) The business is not operated at the displacement site solely for the purpose of renting
the site to others.
(6) The business contributed materially to the income of the displaced person during the 2
taxable years prior to displacement (see Sec. 24.2).
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(b) Determining the number of businesses. In determining whether two or more displaced legal
entities constitute a single business which is entitled to only one fixed payment, all pertinent
factors shall be considered, including the extent to which:
(1) The same premises and equipment are shared;
(2) Substantially identical or interrelated business functions are carried out and business
and financial affairs are commingled;
(3) The entities are held out to the public, and to those customarily dealing with them, as
one business; and
(4) The same person or closely related persons own, control, or manage the affairs of the
entities.
(c) Farm operation. A displaced farm operation (defined at Sec. 24.2) may choose a fixed
payment, in lieu of the payments for actual moving and related expenses and actual reasonable
reestablishment expenses, in an amount equal to its average annual net earnings as computed in
accordance with paragraph (e) of this section, but not less than $1,000 nor more than $20,000. In
the case of a partial acquisition of land which was a farm operation before the acquisition, the
fixed payment shall be made only if the Agency determines that:
(1) The acquisition of part of the land caused the operator to be displaced from the farm
operation on the remaining land; or
(2) The partial acquisition caused a substantial change in the nature of the farm operation.
(d) Nonprofit organization. A displaced nonprofit organization may choose a fixed payment of
$1,000 to $20,000, in lieu of the payments for actual moving and related expenses and actual
reasonable reestablishment expenses, if the Agency determines that it cannot be relocated
without a substantial loss of existing patronage (membership or clientele). A nonprofit
organization is assumed to meet this test, unless the Agency demonstrates otherwise. Any
payment in excess of $1,000 must be supported with financial statements for the two 12 -month
periods prior to the acquisition. The amount to be used for the payment is the average of 2 years
annual gross revenues less administrative expenses. (See Appendix A of this part).
(e) Average annual net earnings of a business or farm operation. The average annual net earnings
of a business or farm operation are one-half of its net earnings before Federal, State, and local
income taxes during the 2 taxable years immediately prior to the taxable year in which it was
displaced. If the business or farm was not in operation for the full 2 taxable years prior to
displacement, net earnings shall be based on the actual period of operation at the displacement
site during the 2 taxable years prior to displacement, projected to an annual rate. Average annual
net earnings may be based upon a different period of time when the Agency determines it to be
more equitable. Net earnings include any compensation obtained from the business or farm
operation by its owner, the owner's spouse, and dependents.
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The displaced person shall furnish the Agency proof of net earnings through income tax returns,
certified financial statements, or other reasonable evidence which the Agency determines is
satisfactory.
Sec. 24.307 Discretionary utilitv relocation Pavments.
(a) Whenever a program or project undertaken by a displacing agency causes the relocation of a
utility facility (see Sec. 24.2) and the relocation of the facility creates extraordinary
expenses for its owner, the displacing agency may, at its option, make a relocation payment to the
owner for all or part of such expenses, if the following criteria are met:
(1) The utility facility legally occupies State or local government property, or property
over which the State or local government has an easement or right-of-way; and
(2) The utility facility's right of occupancy thereon is pursuant to State law or local
ordinance specifically authorizing such use, or where such use and occupancy has been
granted through a franchise, use and occupancy permit, or other similar agreement; and
(3) Relocation of the utility facility is required by and is incidental to the primary purpose
of the project or program undertaken by the displacing agency; and
(4) There is no Federal law, other than the Uniform Act, which clearly establishes a
policy for the payment of utility moving costs that is applicable to the displacing agency's
program or project; and
(5) State or local government reimbursement for utility moving costs or payment of such
costs by the displacing agency is in accordance with State law.
(b) For the purposes of this section, the term "extraordinary expenses" means those expenses
which, in the opinion of the displacing agency, are not routine or predictable expenses relating to
the utility's occupancy of rights-of-way, and are not ordinarily budgeted as operating expenses,
unless the owner of the utility facility has explicitly and knowingly agreed to bear such expenses
as a condition for use of the property, or has voluntarily agreed to be responsible for such
expenses.
(c) A relocation payment to a utility facility owner for moving costs under this section may not
exceed the cost to functionally restore the service disrupted by the federally assisted program or
project, less any increase in value of the new facility and salvage value of the old facility. The
displacing agency and the utility facility owner shall reach prior agreement on the nature of the
utility relocation work to be accomplished, the eligibility of the work for reimbursement, the
responsibilities for financing and accomplishing the work, and the method of accumulating costs
and making payment. (See Appendix A, of this part, Sec. 24.307.)
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Subpart E - Replacement Housing Payments
Sec.
24.401 Replacement housing payment for 180 -day homeowner-occupants.24.402 Replacement
housing payment for 90 -day occupants.24.403 Additional rules governing replacement housing
payments.24.404 Replacement housing of last resort.
Sec. 24.401 Replacement housing pavment for 180-dav homeowner -occupants.
(a) Eligibility. A displaced person is eligible for the replacement housing payment for a 180 -day
homeowner -occupant if the person:
(1) Has actually owned and occupied the displacement dwelling for not less than 180 days
immediately prior to the initiation of negotiations; and
(2) Purchases and occupies a decent, safe, and sanitary replacement dwelling within one
year after the later of the following dates (except that the Agency may extend such one
year period for good cause):
(i) The date the person receives final payment for the displacement dwelling or, in
the case of condemnation, the date the full amount of the estimate of just
compensation is deposited in the court, or
(ii) The date the displacing agency's obligation under Sec. 24.204 is met.
(b) Amount of payment. The replacement housing payment for an eligible 180 -day
homeowner -occupant may not exceed $22,500. (See also Sec. 24.404.) The payment under this
subpart is limited to the amount necessary to relocate to a comparable replacement dwelling
within one year from the date the displaced homeowner- occupant is paid for the displacement
dwelling, or the date a comparable replacement dwelling is made available to such person,
whichever is later. The payment shall be the sum of:
(1) The amount by which the cost of a replacement dwelling exceeds the acquisition cost
of the displacement dwelling, as determined in accordance with paragraph (c) of this
section; and
(2) The increased interest costs and other debt service costs which are incurred in
connection with the mortgage(s) on the replacement dwelling, as determined in
accordance with paragraph (d) of this section; and
(3) The reasonable expenses incidental to the purchase of the replacement dwelling, as
determined in accordance with paragraph (e) of this section.
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(c) Price differential.
(1) Basic computation. The price differential to be paid under paragraph (b)(1) of this
section is the amount which must be added to the acquisition cost of the displacement
dwelling to provide a total amount equal to the lesser of:
(i) The reasonable cost of a comparable replacement dwelling as determined in
accordance with Sec. 24.403(a); or
(ii) The purchase price of the decent, safe, and sanitary replacement dwelling
actually purchased and occupied by the displaced person.
(2) Mixed-use and multifamily properties. If the displacement dwelling was part of a
property that contained another dwelling unit and/or space used for non-residential
purposes, and/or is located on a lot larger than typical for residential purposes, only that
portion of the acquisition payment which is actually attributable to the displacement
dwelling shall be considered its acquisition cost when computing the price differential.
(3) Insurance proceeds. To the extent necessary to avoid duplicate compensation, the
amount of any insurance proceeds received by a person in connection with a loss to the
displacement dwelling due to a catastrophic occurrence (fire, flood, etc.) shall be included
in the acquisition cost of the displacement dwelling when computing the price
differential. (Also see Sec. 24.3.)
(4) Owner retention of displacement dwelling. If the owner retains ownership of his or
her dwelling, moves it from the displacement site, and reoccupies it on a replacement site,
the purchase price of the replacement dwelling shall be the sum of:
(i) The cost of moving and restoring the dwelling to a condition comparable to
that prior to the move; and
(ii) The cost of making the unit a decent, safe, and sanitary replacement dwelling
(defined at Sec. 24.2); and
(iii) The current fair market value for residential use of the replacement site (see
Appendix A of this part, Sec. 24.401(c) (4)(iii)), unless the claimant rented the
displacement site and there is a reasonable opportunity for the claimant to rent a
suitable replacement site; and
(iv) The retention value of the dwelling, if such retention value is reflected in the
"acquisition cost" used when computing the replacement housing payment.
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(d) Increased mortgage interest costs. The displacing agency shall determine the factors to be
used in computing the amount to be paid to a displaced person under paragraph (b)(2) of this
section. The payment for increased mortgage interest cost shall be the amount which will reduce
the mortgage balance on a new mortgage to an amount which could be amortized with the same
monthly payment for principal and interest as that for the mortgage(s) on the displacement
dwelling. In addition, payments shall include other debt service costs, if not paid as incidental
costs, and shall be based only on bona fide mortgages that were valid liens on the displacement
dwelling for at least 180 days prior to the initiation of negotiations. Paragraphs (d) (1) through
(5) of this section shall apply to the computation of the increased mortgage interest costs
payment, which payment shall be contingent upon a mortgage being placed on the replacement
dwelling.
(1) The payment shall be based on the unpaid mortgage balance(s) on the displacement
dwelling; however, in the event the person obtains a smaller mortgage than the mortgage
balance(s) computed in the buydown determination the payment will be prorated and
reduced accordingly. (See Appendix A of this part.) In the case of a home equity loan the
unpaid balance shall be that balance which existed 180 days prior to the initiation of
negotiations or the balance on the date of acquisition, whichever is less.
(2) The payment shall be based on the remaining term of the mortgage(s) on the
displacement dwelling or the term of the new mortgage, whichever is shorter.
(3) The interest rate on the new mortgage used in determining the amount of the payment
shall not exceed the prevailing fixed interest rate for conventional mortgages currently
charged by mortgage lending institutions in the area in which the replacement dwelling is
located.
(4) Purchaser's points and loan origination or assumption fees, but not seller's points, shall
be paid to the extent:
(i) They are not paid as incidental expenses;
(ii) They do not exceed rates normal to similar real estate transactions in the area;
(iii) The Agency determines them to be necessary; and
(iv) The computation of such points and fees shall be based on the unpaid
mortgage balance on the displacement dwelling, less the amount determined for
the reduction of such mortgage balance under this section.
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(5) The displaced person shall be advised of the approximate amount of this payment and
the conditions that must be met to receive the payment as soon as the facts relative to the
person's current mortgage(s) are known and the payment shall be made available at or
near the time of closing on the replacement dwelling in order to reduce the new mortgage
as intended.
(e) Incidental expenses. The incidental expenses to be paid under paragraph (b)(3) of this section
or Sec. 24.402(c)(1) are those necessary and reasonable costs actually incurred by the displaced
person incident to the purchase of a replacement dwelling, and customarily paid by the buyer,
including:
(1) Legal, closing, and related costs, including those for title search, preparing
conveyance instruments, notary fees, preparing surveys and plats, and recording fees.
(2) Lender, FHA, or VA application and appraisal fees.
(3) Loan origination or assumption fees that do not represent prepaid interest.
(4) Certification of structural soundness and termite inspection when required.
(5) Credit report.
(6) Owner's and mortgagee's evidence of title, e.g., title insurance, not to exceed the costs
for a comparable replacement dwelling.
(7) Escrow agent's fee.
(8) State revenue or documentary stamps, sales or transfer taxes (not to exceed the costs
for a comparable replacement dwelling).
(9) Such other costs as the Agency determines to be incidental to the purchase.
(f) Rental assistance payment for 180 -day homeowner. A 180 -day homeowner -occupant, who
could be eligible for a replacement housing payment under paragraph (a) of this section but elects
to rent a replacement dwelling, is eligible for a rental assistance payment not to exceed $5,250,
computed and disbursed in accordance with Sec. 24.402(b).
Sec. 24.402 Replacement housing pavment for 90-dav occupants
(a) Eligibility. A tenant or owner -occupant displaced from a dwelling is entitled to a payment not
to exceed $5,250 for rental assistance, as computed in accordance with paragraph (b) of this
section, or downpayment assistance, as computed in accordance with paragraph (c) of this
section, if such displaced person:
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(1) Has actually and lawfully occupied the displacement dwelling for at least 90 days
immediately prior to the initiation of negotiations; and
(2) Has rented, or purchased, and occupied a decent, safe, and sanitary replacement
dwelling within 1 year (unless the Agency extends this period for good cause) after:
(i) For a tenant, the date he or she moves from the displacement dwelling, or
(ii) For an owner -occupant, the later of:
(A) The date he or she receives final payment for the displacement
dwelling, or in the case of condemnation, the date the full amount of the
estimate of just compensation is deposited with the court; or
(B) The date he or she moves from the displacement dwelling.
(b) Rental assistance payment.
(1) Amount of payment. An eligible displaced person who rents a replacement dwelling is
entitled to a payment not to exceed $5,250 for rental assistance. (See also Sec. 24.404.)
Such payment shall be 42 times the amount obtained by subtracting the base monthly
rental for the displacement dwelling from the lesser of:
(i) The monthly rent and estimated average monthly cost of utilities for a
comparable replacement dwelling; or
(ii) The monthly rent and estimated average monthly cost of utilities for the
decent, safe, and sanitary replacement dwelling actually occupied by the displaced
person.
(2) Base monthly rental for displacement dwelling. The base monthly rental for the
displacement dwelling is the lesser of:
(i) The average monthly cost for rent and utilities at the displacement dwelling for
a reasonable period prior to displacement, as determined by the Agency. (For an
owner- occupant, use the fair market rent for the displacement dwelling. For a
tenant who paid little or no rent for the displacement dwelling, use the fair market
rent, unless its use would result in a hardship because of the person's income or
other circumstances); or
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(ii) Thirty (30) percent of the person's average gross household income. (If the
person refuses to provide appropriate evidence of income or is a dependent, the
base monthly rental shall be established solely on the criteria in paragraph
(b)(2)(i) of this section. A full time student or resident of an institution may be
assumed to be a dependent, unless the person demonstrates otherwise.); or
(iii) The total of the amounts designated for shelter and utilities if receiving a
welfare assistance payment from a program that designates the amounts for shelter
and utilities.
(3) Manner of disbursement. A rental assistance payment may, at the Agency's discretion,
be disbursed in either a lump sum or in installments. However, except as limited by Sec.
24.403(f), the full amount vests immediately, whether or not there is any later change in
the person's income or rent, or in the condition or location of the person's housing.
(c) Downpayment assistance payment.
(1) Amount of payment. An eligible displaced person who purchases a replacement
dwelling is entitled to a downpayment assistance payment in the amount the person
would receive under paragraph (b) of this section if the person rented a comparable
replacement dwelling. At the discretion of the Agency, a downpayment assistance
payment may be increased to any amount not to exceed $5,250. However, the payment to
a displaced homeowner shall not exceed the amount the owner would receive under Sec.
24.401(b) if he or she met the 180 -day occupancy requirement. An Agency's discretion to
provide the maximum payment shall be exercised in a uniform and consistent manner, so
that eligible displaced persons in like circumstances are treated equally. A displaced
person eligible to receive a payment as a 180 -day owner -occupant under Sec. 24.401(a)
is not eligible for this payment. (See also Appendix A of this part, Sec. 24.402(c).)
(2) Application of payment. The full amount of the replacement housing payment for
downpayment assistance must be applied to the purchase price of the replacement
dwelling and related incidental expenses.
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Sec. 24.403 Additional rules governing replacement housing pavments.
(a) Determining cost of comparable replacement dwelling. The upper limit of a replacement
housing payment shall be based on the cost of a comparable replacement dwelling (defined at
Sec. 24.2).
(1) If available, at least three comparable replacement dwellings shall be examined and
the payment computed on the basis of the dwelling most nearly representative of, and
equal to, or better than, the displacement dwelling. An adjustment shall be made to the
asking price of any dwelling, to the extent justified by local market data (see also Sec.
24.205(a)(2) and Appendix A of this part). An obviously overpriced dwelling may be
ignored.
(2) If the site of the comparable replacement dwelling lacks a major exterior attribute of
the displacement dwelling site, (e.g., the site is significantly smaller or does not contain a
swimming pool), the value of such attribute shall be subtracted from the acquisition cost
of the displacement dwelling for purposes of computing the payment.
(3) If the acquisition of a portion of a typical residential property causes the displacement
of the owner from the dwelling and the remainder is a buildable residential lot, the
Agency may offer to purchase the entire property. If the owner refuses to sell the
remainder to the Agency, the fair market value of the remainder may be added to the
acquisition cost of the displacement dwelling for purposes of computing the replacement
housing payment.
(4) To the extent feasible, comparable replacement dwellings shall be selected from the
neighborhood in which the displacement dwelling was located or, if that is not possible,
in nearby or similar neighborhoods where housing costs are generally the same or higher.
(b) Inspection of replacement dwelling. Before making a replacement housing payment or
releasing a payment from escrow, the Agency or its designated representative shall inspect the
replacement dwelling and determine whether it is a decent, safe, and sanitary dwelling as
defined at Sec. 24.2.
(c) Purchase of replacement dwelling. A displaced person is considered to have met the
requirement to purchase a replacement dwelling, if the person:
(1) Purchases a dwelling; or
(2) Purchases and rehabilitates a substandard dwelling; or
(3) Relocates a dwelling which he or she owns or purchases; or
(4) Constructs a dwelling on a site he or she owns or purchases; or
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(5) Contracts for the purchase or construction of a dwelling on a site provided by a
builder or on a site the person owns or purchases.
(6) Currently owns a previously purchased dwelling and site, valuation of which shall be
on the basis of current fair market value.
(d) Occupancy requirements for displacement or replacement dwelling. No person shall be
denied eligibility for a replacement housing payment solely because the person is unable to meet
the occupancy requirements set forth in these regulations for a reason beyond his or her control,
including:
(1) A disaster, an emergency, or an imminent threat to the public health or welfare, as
determined by the President, the Federal agency funding the project, or the displacing
agency; or
(2) Another reason, such as a delay in the construction of the replacement dwelling,
military reserve duty, or hospital stay, as determined by the Agency.
(e) Conversion of payment. A displaced person who initially rents a replacement dwelling and
receives a rental assistance payment under Sec. 24.402(b) is eligible to receive a payment under
Sec. 24.401 or 24.402(c) if he or she meets the eligibility criteria for such payments, including
purchase and occupancy within the prescribed 1 -year period. Any portion of the rental assistance
payment that has been disbursed shall be deducted from the payment computed under Sec.
24.401 or 24.402(c).
(f) Payment after death. A replacement housing payment is personal to the displaced person and
upon his or her death the undisbursed portion of any such payment shall not be paid to the heirs
or assigns, except that:
(1) The amount attributable to the displaced person's period of actual occupancy of the
replacement housing shall be paid.
(2) The full payment shall be disbursed in any case in which a member of a displaced
family dies and the other family member(s) continue to occupy a decent, safe, and
sanitary replacement dwelling.
(3) Any portion of a replacement housing payment necessary to satisfy the legal
obligation of an estate in connection with the selection of a replacement dwelling by or on
behalf of a deceased person shall be disbursed to the estate.
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Sec. 24.404 Replacement housing of last resort.
(a) Determination to provide replacement housing of last resort. Whenever a program or project
cannot proceed on a timely basis because comparable replacement dwellings are not available
within the monetary Iimits for owners or tenants, as specified in Sec. 24.401 or Sec. 24.402, as
appropriate, the Agency shall provide additional or alternative assistance under the provisions of
this subpart. Any decision to provide last resort housing assistance must be adequately justified
either:
(1) On a case-by-case basis, for good cause, which means that appropriate consideration
has been given to:
(i) The availability of comparable replacement housing in the program or project
area; and
(ii) The resources available to provide comparable replacement housing; and
(iii) The individual circumstances of the displaced person; or
(2) By a determination that:
(i) There is little, if any, comparable replacement housing available to displaced
persons within an entire program or project area; and, therefore, last resort
housing assistance is necessary for the area as a whole; and
(ii) A program or project cannot be advanced to completion in a timely manner
without last resort housing assistance; and
(iii) The method selected for providing last resort housing assistance is cost
effective, considering all elements which contribute to total program or project
costs. (Will project delay justify waiting for less expensive comparable
replacement housing to become available?)
(b) Basic rights of persons to be displaced. Notwithstanding any provision of this subpart, no
person shall be required to move from a displacement dwelling unless comparable replacement
housing is available to such person. No person may be deprived of any rights the person may
have under the Uniform Act or this part. The Agency shall not require any displaced person to
accept a dwelling provided by the Agency under these procedures (unless the Agency and the
displaced person have entered into a contract to do so) in lieu of any acquisition payment or any
relocation payment for which the person may otherwise be eligible.
(c) Methods of providing comparable replacement housing. Agencies shall have broad latitude in
implementing this subpart, but implementation shall be for reasonable cost, on a case-by-case
basis unless an exception to case-by-case analysis is justified for an entire project.
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(1) The methods of providing replacement housing of last resort include, but are not
limited to:
(i) A replacement housing payment in excess of the limits set forth in Sec. 24.401
or Sec. 24.402. A rental assistance subsidy under this section may be provided in
installments or in a lump sum at the Agency's discretion.
(ii) Rehabilitation of and/or additions to an existing replacement dwelling.
(iii) The construction of a new replacement dwelling.
(iv) The provision of a direct loan, which requires regular amortization or deferred
repayment. The loan may be unsecured or secured by the real property. The loan
may bear interest or be interest-free.
(v) The relocation and, if necessary, rehabilitation of a dwelling.
(vi) The purchase of land and/or a replacement dwelling by the displacing agency
and subsequent sale or lease to, or exchange with a displaced person.
(vii) The removal of barriers to the handicapped.
(viii) The change in status of the displaced person with his or her concurrence
from tenant to homeowner when it is more cost effective to do so, as in cases
where a downpayment may be less expensive than a last resort rental assistance
payment.
(2) Under special circumstances, consistent with the definition of a comparable
replacement dwelling, modified methods of providing replacement housinb, of last resort
permit consideration of replacement housing based on space and physical characteristics
different from those in the displacement dwelling (see Appendix A, of this part, Sec.
24.404), including upgraded, but smaller replacement housing that is decent, safe, and
sanitary and adequate to accommodate individuals or families displaced from marginal or
substandard housing with probable functional obsolesence. In no event, however, shall a
displaced person be required to move into a dwelling that is not functionally equivalent
in accordance with Sec. 24.2.
(3) The agency shall provide assistance under this subpart to a displaced person who is
not eligible to receive a replacement housing payment under Secs. 24.401 and 24.402
because of failure to meet the length of occupancy requirement when comparable
replacement rental housing is not available at rental rates within the person's financial
means, which is 30 percent of the person's gross monthly household income. Such
assistance shall cover a period of 42 months.
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Subpart F - Mobile Homes
Sec.
24.501 Applicability.
24.502 Moving and related expenses -mobile homes.
24.503 Replacement housing payment for 180 -day mobile homeowner -occupants.
24.504 Replacement housing payment for 90 -day mobile home occupants.
24.505 Additional rules governing relocation payments to mobile home occupants.
Sec. 24.501 Applicabilitv.
This subpart describes the requirements governing the provision of relocation payments to a
person displaced from a mobile home and/or mobile home site who meets the basic eligibility
requirements of this part. Except as modified by this subpart, such a displaced person is entitled
to a moving expense payment in accordance with Subpart D and a replacement housing payment
in accordance with Subpart E to the same extent and subject to the same requirements as persons
displaced from conventional dwellings.
Sec. 24.502 Moving and related expenses -mobile homes.
(a) A homeowner -occupant displaced from a mobile home or mobile homesite is entitled to a
payment for the cost of moving his or her mobile home on an actual cost basis in accordance
with Sec. 24.301. A non -occupant owner of a rented mobile home is eligible for actual cost
reimbursement under Sec. 24.303. However, if the mobile home is not acquired, but the
homeowner- occupant obtains a replacement housing payment under one of the circumstances
described at Sec. 24.503(a)(3), the owner is not eligible for payment for moving the mobile
home, but may be eligible for a payment for moving personal property from the mobile home.
(b) The following rules apply to payments for actual moving expenses under Sec. 24.301:
(1) A displaced mobile homeowner, who moves the mobile home to a replacement site, is
eligible for the reasonable cost of disassembling, moving, and reassembling any attached
appurtenances, such as porches, decks, skirting, and awnings, which were not acquired,
anchoring of the unit, and utility "hook-up" charges.
(2) If a mobile home requires repairs and/or modifications so that it can be moved and/or
made decent, safe, and sanitary, and the Agency determines that it would be economically
feasible to incur the additional expense, the reasonable cost of such repairs and/or
modifications is reimbursable.
(3) A nonreturnable mobile home park entrance fee is reimbursable to the extent it does
not exceed the fee at a comparable mobile home park, if the person is displaced from a
mobile home park or the Agency determines that payment of the fee is necessary to effect
relocation.
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Sec. 24.503 Replacement housing payment for 180 -day mobile homeowner -occupants.
(a) A displaced owner -occupant of a mobile home is entitled to a replacement housing payment,
not to exceed $22,500, under Sec. 24.401 if:
(1) The person both owned the displacement mobile home and occupied it on the
displacement site for at least 180 days immediately prior to the initiation of
negotiations;
(2) The person meets the other basic eligibility requirements at Sec. 24.401(a);
and
(3) The Agency acquires the mobile home and/or mobile home site, or the mobile
home is not acquired by the Agency but the owner is displaced from the mobile
home because the Agency determines that the mobile home:
(i) Is not and cannot economically be made decent, safe, and sanitary; or
(ii) Cannot be relocated without substantial damage or unreasonable cost,
or
(iii) Cannot be relocated because there is no available comparable
replacement site; or
(iv) Cannot be relocated because it does not meet mobile home park
entrance requirements.
(b) If the mobile home is not acquired, and the Agency determines that it is not practical to
relocate it, the acquisition cost of the displacement dwelling used when computing the price
differential amount, described at Sec. 24.401(c), shall include the salvage value or trade-in value
of the mobile home, whichever is higher.
Sec. 24.504 Replacement housing payment for 90-dav mobile home occupants.
A displaced tenant or owner -occupant of a mobile home is eligible for a replacement housing
payment, not to exceed $5,250, under Sec. 24.402 if:
(a) The person actually occupied the displacement mobile home on the displacement site for at
least 90 days immediately prior to the initiation of negotiations;
(b) The person meets the other basic eligibilityrequirements at Sec. 24.402(a); and
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(c) The Agency acquires the mobile home and/or mobile home site, or the mobile home is not
acquired by the Agency but the owner or tenant is displaced from the mobilehome because of one
of the circumstances described at Sec. 24.503(a)(3).
Sec. 24.505 Additional rules governing relocation pavments to mobile home occupants.
(a) Replacement housing payment based on dwelling and site. Both the mobile home and mobile
home site must be considered when computing a replacement housing payment. For example, a
displaced mobile home occupant may have owned the displacement mobile home and rented the
site or may have rented the displacement mobile home and owned the site. Also, a person may
elect to purchase a replacement mobile home and rent a replacement site, or rent a replacement
mobile home and purchase a replacement site. In such cases, the total replacement housing
payment shall consist of a payment for a dwelling and a payment for a site, each computed under
the applicable section in Subpart E. However, the total replacement housing payment under
Subpart E shall not exceed the maximum payment (either $22,500 or $5,250) permitted under the
section that governs the computation for the dwelling. (See also Sec. 24.403(b).)
(b) Cost of comparable replacement dwelling.
(1) If a comparable replacement mobile home is not available, the replacement housing
payment shall be computed on the basis of the reasonable cost of a conventional
comparable replacement dwelling.
(2) If the Agency determines that it would be practical to relocate the mobile home, but
the owner -occupant elects not to do so, the Agency may determine that, for purposes of
computing the price differential under Sec. 24.401(c), the cost of a comparabl
replacement dwelling is the sum of:
(i) The value of the mobile home,
(ii) The cost of any necessary repairs or modifications, and
(iii) The estimated cost of moving the mobile home to a replacement site.
(c) Initiation of negotiations. If the mobile home is not actually acquired, but the occupant is
considered displaced under this part, the "initiation of negotiations" is the initiation of
negotiations to acquire the land, or, if the land is not acquired, the written notification that he or
she is a displaced person under this part.
(d) Person moves mobile home. If the owner is reimbursed for the cost of moving the mobile
home under this part, he or she is not eligible to receive a replacement housing payment to assist
in purchasing or renting a replacement mobile home. The person may, however, be eligible for
assistance in purchasing or renting a replacement site.
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(e) Partial acquisition of mobile home park. The acquisition of a portion of a mobile home park
property may leave a remaining part of the property that is not adequate to continue the operation
of the park. If the Agency determines that a mobile home located in the remaining part of the
property must be moved as a direct result of the project, the owner and any tenant shall be
considered a displaced person who is entitled to relocation payments and other assistance under
this part.
Subpart G - Certification
Sec.
24.601 Purpose.
24.602 Certification application.
24.603 Monitoring and corrective action.
Sec. 24.601 Purpose.
This subpart permits a State agency to fulfill its responsibilities under the Uniform Act by
certifying that it shall operate in accordance with State laws and regulations which shall
accomplish the purpose and effect of the Uniform Act, in lieu of providing the assurances
required by Sec. 24.4 of this part.
Sec. 24.602 Certification application.
An agency wishing to proceed on the basis of a certification may request an application for
certification from the lead agency [Director, Office of Right -of -Way, HRW-1, Federal Highway
Administration, 400 Seventh St. SW., Washington, DC 20590]. The completed application for
certification must be approved by the governor of the State, or the governor's designee, and must
be coordinated with the Federal funding agency, in accordance with application procedures.
[58 FR 26070, April 30, 1993, (effective date June 1, 1993)]
Sec. 24.603 Monitoring and corrective action.
(a) The Federal lead agency shall, in coordination with other Federal agencies, monitor from time
to time State agency implementation of programs or projects conducted under the certification
process and the State agency shall make available any information required for this purpose.
(b) The lead agency may require periodic information or data from affected Federal or state
agencies.
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(c) A Federal agency may, after consultation with the lead agency, and notice to and consultation
with the governor, or his or her designee, rescind any previous approval provided under this
subpart if the certifying State agency fails to comply with its certification or with applicable State
law and regulations. The Federal agency shall initiate consultation with the lead agency at least
30 days prior to any decision to rescind approval of a certification under this subpart.
The lead agency will also inform other Federal agencies which have accepted a certification
under this subpart from the same State agency, and will take whatever other action that may be
appropriate.
(d) Section 103(b)(2) of the Uniform Act, as amended, requires that the head of the lead agency
report biennially to the Congress on State agency implementation of section 103. To enable
adequate preparation of the prescribed biennial report, the lead agency may require periodic
information or data from affected Federal or State agencies.
Appendix A to Part 24 -Additional Information
This appendix provides additional information to explain the intent of certain provisions of this
part.
Subpart A - General
Section 24.2 Definitions
Definition of comparable replacement dwelling. The requirement in Sec. 24.2 that a
comparable replacement dwelling be "functionally equivalent" to the displacement dwelling
means that it must perform the same function, provide the same utility, and be capable of
contributing to a comparable style of living as the displacement dwelling. While it need not
possess every feature of the displacement dwelling, the principal features must be present.
For example, if the displacement dwelling contains a pantry and a similar dwelling is not
available, a replacement dwelling with ample kitchen cupboards may be acceptable. Insulated
and heated space in a garage might prove an adequate substitute for basement workshop space. A
dining area may substitute for a separate dining room. Under some circumstances, attic space
could substitute for basement space for storage purposes, and vice versa.
Only in unusual circumstances may a comparable replacement dwelling contain fewer rooms or,
consequentially, less living space than the displacement dwelling. Such may be the case when a
decent, safe, and sanitary replacement dwelling (which by definition is "adequate to
accommodate" the displaced person) may be found to be "functionally equivalent" to a larger but
very run-down substandard displacement dwelling.
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Paragraph (7) in the definition of comparable replacement dwelling requires that a
comparable replacement dwelling for a person who is not receiving assistance under any
government housing program before displacement must be currently available on the private
market without any subsidy under a government housing program.
A public housing unit may qualify as a comparable replacement dwelling only for a person
displaced from a public housing unit; a privately -owned dwelling with a housing program
subsidy tied to the unit may qualify as a comparable replacement dwelling only for a person
displaced from a similarly subsidized unit or public housing; a housing program subsidy to a
person (not tied to the building), such as a HUD Section 8 Existing Housing Program Certificate
or a Housing Voucher, may be reflected in an offer of a comparable replacement dwelling to a
person receiving a similar subsidy or occupying a privately -owned subsidized unit or public
housing unit before displacement.
However, nothing in this part prohibits an Agency from offering, or precludes a person from
accepting, assistance under a government housing program, even if the person did not receive
similar assistance before displacement. However, the Agency is obligated to inform the person of
his or her options under this part. (If a person accepts assistance under a government housing
program, the rental assistance payment under Sec. 24.402 would be computed on the basis of the
person's actual out-of-pocket cost for the replacement housing.)
Persons not displaced. Paragraph (2)(iv) under this definition recognizes that there are
circumstances where the acquisition of real property takes place without the intent or necessity
that an occupant of the property be permanently displaced. Because such occupants are not
considered "displaced persons" under this part, great care must be exercised to ensure that they
are treated fairly and equitably. For example, if the tenant -occupant of a dwelling will not be
displaced, but is required to relocate temporarily in connection with the project, the
temporarily -occupied housing must be decent, safe, and sanitary and the tenant must be
reimbursed for all reasonable out-of-pocket expenses incurred in connection with the temporary
relocation, including moving expenses and increased housing costs during the temporary
relocation. It is also noted that any person who disagrees with the Agency's determination that he
or she is not a displaced person under this part may file an appeal in accordance with Sec. 24.10.
Initiation of negotiations. This section of the part; provides a special definition for
acquisitions and displacements under Pub. L. 96-510 or Superfund. These activities differ under
Superfund in that relocation may precede acquisition, the reverse of the normal sequence.
Superfund is a program designed to clean up hazardous waste sites. When such a site is
discovered, it may be necessary, in certain limited circumstances, to alert the public to the danger
and to the advisability of moving immediately. If a decision is made later to permanently relocate
such persons, those who had moved earlier would no longer be on site when a formal, written
offer to acquire the property was made and thus would lose their eligibility for a replacement
housing payment. In order to prevent this unfair outcome, we have provided a definition which is
based on the public health advisory or announcement of permanent relocation.
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03- 268
Section 24.3 No Duplication of Payments
This section prohibits an Agency from making a payment to a person under these regulations that
would duplicate another payment the person receives under Federal, State, or local law. The
Agency is not required to conduct an exhaustive search for such other payments; it is only
required to avoid creating a duplication based on the Agency's knowledge at the time a payment
under these regulations is computed.
Section 24.9 Recordkeeping and Reports
Section 24.9(c) Reports. This paragraph allows Federal agencies to require the submission of a
report on activities under the Uniform Act no more frequently than once every three years. The
report, if required, will cover activities during the Federal fiscal year immediately prior to the
submission date. In order to minimize the administrative burden on Agencies implementing this
part, a basic report form (see Appendix B of this part) has been developed which, with only
minor modifications, would be used in all Federal and federally -assisted programs or projects.
Subpart B - Real Property Acquisition
Section 24.101 Applicability of Acquisition Requirements
Section 24.101(b) Less -than -full -fee interest in real property. This provision provides a
benchmark beyond which the requirements of the subpart clearly apply to leases. However, the
Agency may apply the regulations to any less -than -full -fee acquisition which is short of 50 years
but which in its judgment should be covered.
Section 24.102 Basic Acquisition Policies
Section 24.102(d) Establishment of offer of just compensation. The initial offer to the property
owner may not be less than the amount of the Agency's approved appraisal, but may exceed that
amount if the Agency determines that a greater amount reflects just compensation for the
property.
Section 24.102(f) Basic negotiation procedures. It is intended that an offer to an owner be
adequately presented, and that the owner be properly informed. Personal, face-to-face contact
should take place, if feasible, but this section is not intended to require such contact in all cases.
Section 24.102(1) Administrative settlement. This section provides guidance on administrative
settlement as an alternative to judicial resolution of a difference of opinion on the value of a
property, in order to avoid unnecessary litigation and congestion in the courts.
All relevant facts and circumstances should be considered by an Agency official delegated this
authority. Appraisers, including reviewing appraisers, must not be pressured to adjust their
estimate of value for the purpose of justifying such settlements. Such action would invalidate the
appraisal process.
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Section 24.1020) Payment before taking possession. It is intended that a right -of -entry for
construction purposes be obtained only in the exceptional case, such as an emergency project,
when there is no time to make an appraisal and purchase offer and the property owner is
agreeable to the process.
Section 24.102(m) Fair rental. Section 301(6) of the Uniform Act limits what an Agency may
charge when a former owner or previous occupant of a property is permitted to rent the property
for a short term or when occupancy is subject to termination by the Agency on short notice. Such
rent may not exceed "the fair rental value * * * to a short-term occupier." Generally, the Agency's
right to terminate occupancy on short notice (whether or not the renter also has that right)
supports the establishment of a lesser rental than might be found in a longer, fixed -term situation.
Section 24.103 Criteria for Appraisals
Section 24.103(a) Standards of appraisal. In paragraph (a)(3) of this section, it is intended that all
relevant and reliable approaches to value be utilized. However, where an Agency determines that
the market approach will be adequate by itself because of the type of property being appraised
and the availability of sales data, it may limit the appraisal assignment to the market approach.
Section 24.103(b) Influence of the project on just compensation. As used in this section, the term
"project" is intended to mean an undertaking which is planned, designed, and intended to operate
as a unit.
Because of the public knowledge of the proposed project, property values may be affected. A
property owner should not be penalized because of a decrease in value caused by the proposed
project nor reap a windfall at public expense because of increased value created by the proposed
project.
Section 24.103(e) Conflict of interest. The overall objective is to minimize the risk of fraud and
mismanagement and to promote public confidence in Federal and federally -assisted land
acquisition practices. Recognizing that the costs may outweigh the benefits in some
circumstances, Sec. 24.103(e) provides that the same person may both appraise and negotiate an
acquisition, if the value is $2,500 or less. However, it should be noted that all appraisals must be
reviewed in accordance with Sec. 24.104. This includes appraisals of real property valued at
$2,500, or less.
Section 24.104 Review of appraisals
This section recognizes that Agencies differ in the authority delegated to the review appraiser. In
some cases the reviewer establishes the amount of the offer to the owner and in other cases the
reviewer makes a recommendation which is acted on at a higher level. It is also within Agency
discretion to decide whether a second review is needed if the first review appraiser establishes a
value different from that in the appraisal report or reports on a property.
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03- 268
Before acceptance of an appraisal, the review appraiser must determine that the appraiser's
documentation, including valuation data and the analyses of that data, demonstrates the
soundness of the appraiser's opinion of value. The qualifications of the review appraiser and the
level of explanation of the basis for the reviewer's recommended or approved value depend on
the complexity of the appraisal problem. For a low value property requiring an uncomplicated
valuation process, the reviewer's approval, endorsing the appraiser's report, may satisfy the
requirement for the reviewer's statement.
Section 24.106 Expenses Incidental to Transfer of Title to the Agency
Generally, the Agency is able to pay such incidental costs directly and, where feasible, is required
to do so. In order to prevent the property owner from making unnecessary out-of-pocket
expenditures and to avoid duplication of expenses, the property owner should be informed early
in the acquisition process of the Agency's intent to make such arrangements. In addition, it is
emphasized that such expenses must be reasonable and necessary.
Subpart C - General Relocation Requirements
Section 24.204 Availability of Comparable Replacement Dwelling Before Displacement
Section 24.204 (a) General. This provision requires that no one may be required to move from a
dwelling without one comparable replacement dwelling having been made available. In addition,
Sec. 24.204(a) requires that, "Where possible, three or more comparable replacement dwellings
shall be made available." Thus the basic standard for the number of referrals required under this
section is three. Only in situations where three comparable replacement dwellings are not
available (e.g., when the local housing market does not contain three comparable dwellings) may
the Agency make fewer than three referrals.
Section 24.205 Relocation Assistance Advisory Services
Section 24.205(c)(2)(ii)(C) is intended to emphasize that if the comparable replacement
dwellings are located in areas of minority concentration, minority persons should, if possible,
also be given opportunities to relocate to replacement dwellings not located in such areas.
Section 24.207 General Requirements -Claims for Relocation Pavments
Section 24.207(a) allows an Agency to make a payment for low cost or uncomplicated moves
without additional documentation, as long as the payment is limited to the amount of the lowest
acceptable bid or estimate, as provided for in Sec. 24.303(c).
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Subpart D - Payment for Moving and Related Expenses
Section 24.306 Fixed Payment for Moving Expenses -Nonresidential Moves
Section 24.306(d) Nonprofit organizations. Gross revenues may include membership fees, class
fees, cash donations, tithes, receipts from sales or other forms of fund collection that enables the
non-profit organization to operate. Administrative expenses are those for administrative support
such as rent, utilities, salaries, advertising and other like items as well as fund-raising expenses.
Operating expenses for carrying out the purposes of the non-profit organization are not included
in administrative expenses. The monetary receipts and expense amounts may be verified with
certified financial statements or financial documents required by public agencies.
Section 24.307 Discretionary Utility Relocation Payments
Section 24.307(c) describes the issues which must be agreed to between the displacing agency
and the utility facility owner in determining the amount of the relocation payment. To facilitate
and aid in reaching such agreement, the practices in the Federal Highway Administration
regulation, 23 CFR 645, Subpart A, Utility Relocations, Adjustments and Reimbursement,
should be followed.
Subpart E - Replacement Housing Payments
Section 24.401 Replacement Housing Pavment for 180-Dav Homeowner -Occupants
Section 24.401(a)(2). The provision for extending eligibility for a replacement housing payment
beyond the one year period for good cause means that an extension may be granted if some event
beyond the control of the displaced person such as acute or life threatening illness, bad weather
preventing the completion of construction of a replacement dwelling or other like circumstances
should cause delays in occupying a decent, safe, and sanitary replacement dwelling.
Section 24.401(c) Price differential. The provision in Sec. 24.401(c)(4)(iii) to use the current fair
market value for residential use does not mean the Agency must have the property appraised.
Any reasonable method for arriving at the fair market value may be used.
Section 24.401(d) Increased mortgage interest costs. The provision in Sec. 24.401(d) set forth the
factors to be used in computing the payment that will be required to reduce a person's
replacement mortgage (added to the downpayment) to an amount which can be amortized at the
same monthly payment for principal and interest over the same period of time as the remaining
term on the displacement mortgages. This payment is commonly known as the "buydown."
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43.-- 268
The remaining principal balance, the interest rate, and monthly principal and interest payments
for the old mortgage as well as the interest rate, points and term for the new mortgage must be
known to compute the increased mortgage interest costs. If the combination of interest and points
for the new mortgage exceeds the current prevailing fixed interest rate and points for
conventional mortgages and there is no justification for the excessive rate, then the current
prevailing fixed interest rate and points shall be used in the computations. Justification may be
the unavailability of the current prevailing rate due to the amount of the new mortgage, credit
difficulties, or other similar reasons.
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SAMPLE COMPUTATION
Old Mortgage: Remaining Principal Balance $50,000
Monthly Payment
(principal and interest) 458.22
Interest rate (percent) 7%
New Mortgage: Interest rate (percent) 10%
Points 3
Term (years) 15
Remaining term of the old mortgage is determined to be 174 months. (Determining, or computing, the
actual remaining term is more reliable than using the data supplied by the mortgagee). However, if it is
shorter, use the term of the new mortgage and compute the needed monthly payment.
Amount to be financed to maintain monthly payments of $458.22 at 10% - $42,010.18
$50,000.00
-42.010.18
Increased mortgage interest costs $ 7,989.82
3 points on $42,010.18 1,260.31
Total buydown necessary to
maintain payments at $458.22 $ 9250.13
If the new mortgage actually obtained is less than the computed amount for a new mortgage ($42,010.18),
the buydown shall be prorated accordingly. If the actual mortgage obtained in our example were $35,000,
the buydown payment would be $7,706.57($35,000 by $42,010.18 = .8331; $9,250.13 X .83 = $7,706.57).
The Agency is obligated to inform the person of the approximate amount of this payment and that he or
she must obtain a mortgage of at least the same amount as the old mortgage and for at least the same term
in order to receive the full amount of this payment. The displacee is also to be advised of the interest rate
and points used to calculate the payment.
Section 24.402 Replacement Housing Pavment for 90-Dav Occupants
The downpayment assistance provisions in Sec. 24.402(c) are intended to limit such assistance to
the amount of the computed rental assistance payment for a tenant or an eligible homeowner. It
does, however, provide the latitude for Agency discretion in offering downpayment assistance
which exceeds the computed rental assistance payment, up to the $5,250 statutory maximum.
This does not mean, however, that such Agency discretion may be exercised in a selective or
discriminatory fashion. The displacing agency should develop a policy which affords equal
treatment for persons in like circumstances and this policy should be applied uniformly
throughout the Agency's programs or projects. It is recommended that displacing agencies
coordinate with each other to reach a consensus on a uniform procedure for the State and/or the
local jurisdiction.
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For purposes of this section, the term downpayment means the downpayment ordinarily required
to obtain conventional loan financing for the decent, safe, and sanitary dwelling actually
purchased and occupied. However, if the downpayment actually required of a displaced person
for the purchase of the replacement dwelling exceeds the amount ordinarily required, the amount
of the downpayment may be the amount which the Agency determines is necessary.
Section 24.403 Additional Rules Governing Replacement Housing Pavments
Section 24.403(a)(1). The procedure for adjusting the asking price of comparable replacement
dwellings requires that the agency provide advisory assistance to the displaced person concerning
negotiations so that he or she may enter the market as a knowledgeable buyer. If a displaced
person elects to buy one of the selected comparables, but cannot acquire the property for the
adjusted price, it is appropriate to increase the replacement housing payment to the actual
purchase amount.
Section 24.404 Replacement housing of last resort.
Section 24.404(b) Basic rights of persons to be displaced. This paragraph affirms the right of a
180 -day homeowner -occupant, who is eligible for a replacement housing payment under §
24.401, to a reasonable opportunity to purchase a comparable replacement dwelling. However, it
should be read in conjunction with the definition of "owner of a dwelling" at § 24.2(p). The
Agency is not required to provide persons owning only a fractional interest in the displacement
dwelling a greater level of assistance to purchase a replacement dwelling than the Agency would
be required to provide such persons if they owned fee simple title to the displacement dwelling.
If such assistance is not sufficient to buy a replacement dwelling, the Agency may provide
additional purchase assistance or rental assistance.
Section 24.404(c) Methods of providing comparable replacement housing. The use of cost
effective means of providing comparable replacement housing is implied throughout the subpart.
The term "reasonable cost" is used here to underline the fact that while innovative means to
provide housing are encouraged, they should be cost effective.
Section 24.404(c)(2) permits the use of last resort housing, in special cases, which may involve
variations from the usual methods of obtaining comparability. However, it should be specially
noted that such variation should never result in a lowering of housing standards nor should it ever
result in a lower quality of living style for the displaced person. The physical characteristics of
the comparable replacement dwelling may be dissimilar to those of the displacement dwelling
but they may never be inferior.
One example might be the use of a new mobile home to replace a very substandard conventional
dwelling in an area where comparable conventional dwellings are not available.
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Another example could be the use of a superior, but smaller decent, safe and sanitary dwelling to
replace a large, old substandard dwelling, only a portion of which is being used as living quarters
by the occupants and no other large comparable dwellings are available in the area.
Subpart F - Mobile Homes
Section 24.503 Replacement Housing Payment for 180-Dav Mobile Homeowner -Occupants
A 180 -day owner -occupant who is displaced from a mobile home on a rented site may be eligible
for a replacement housing payment for a dwelling computed under Sec. 24.401 and a
replacement housing payment for a site computed under Sec. 24. 402. A 180 -day owner -occupant
of both the mobile home and the site, who relocates the mobile home, may be eligible for a
replacement housing payment under Sec. 24.401 to assist in the purchase of a replacement site or,
under Sec. 24.402, to assist in renting a replacement site.
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State
Uniform Relocation Assistance and Real Property Acquisition Policies Act, Residential Moving Expense and
Dislocation Allowance Payment Schedule
Occupant owns furniture (1) and (2)
Number of rooms of furniture
2 1 3 1 4 1 5 1 6 1 7 8
Revised: 1/12197
Occupant does not
E ch own furniture (3)
a
add. First Each add.
Room room I Room
Alabama
250
400
550
650
1
750
1
850
1
950 I
1050 1
100 1
225 1
40
Alaska
525
750
975
1200
1400
1575
1750
1925
150
350
50
American Samoa
250
350
450
550
625
700
775
850
75
200
25
Arizona
500
600
700
800
900
1000
1100
1200
100
300
50
Arkansas
250
350
450
550
625
700
775
850
75
200
25
California
500
650
800
950
1150
1350
1550
1750
175
325
50
Colorado
250
400
550
650
750
850
950
1050
100
225
35
Connecticut
250
400
550
650
750
850
950
1050
100
225
35
Delaware
250
400
550
650
750
850
950
1050
100
225
35
0C
250
400
550
650
750
850
950
1050
100
225
35
Florida
450
600
775
950
1075
1200
1325
1450
125
300
50
Georaia
450
650
850
1000
1200
1350
1500
1600
125
250
35
Guam
250
350
450
550
625
700
775
850
75
200
25
Hawaii
400
550
750
900
1000
1150
1300
1400
100
300
50
Idaho
250
350
450
550
625
700
775
850
75
200
25
Illinois
250
400
550
650
750
850
950
1050
100
225
35
Indiana
250
400
550
650
750
850
950
1050
100
225
35
Iowa
300
450
550
650
750
850
950
1050
100
250
25
Kansas
250
400
550
650
750
850
950
1050
100
225
35
Kentuckv
400
550
700
850
1000
1150
1300
1450
150
300
50
Louisiana
250
350
450
550
625
700
775
850
75
200
25
Maine
350
450
550
650
725
800
875
950
75
200
25
Marvland
350
500
650
800
925
1050
1175
1300
100
225
35
Massachusetts
250
400
550
650
750
850
950
1050
100
225
35
Michiaan
300
475
650
700
825
925
1050
1150
100
275
40
Minnesota
250
400
550
650
750
850
950
1050
100
225
35
Mississippi
400
500
600
700
800
900
1000
1100
100
300
50
Missouri
300
400
500
600
700
800
900
1000
100
200
25
Montana
325
450
575
725
825
900
1000
1100
100
250
35
Nebraska
300
420
540
660
750
840
930
1020
90
240
30
Nevada
360
540
720
900
1080
1260
1440
1620
180
300
60
New Hampshire
250
350
450
550
625
700
775
850
75
200
25
New Jersev
250
400
550
650
750
850
950
1050
100
225
35
New Mexico
250
400
550
650
750
850
950
1050
100
225
35
New York
350
500
650
750
850
950
1050
1150
100
300
100
North Carolina
250
400
550
650
750
850
950
1050
100
225
35
North Dakota
300
425
550
650
750
850
925
1025
100
250
35
N. Mariana Is.
250
350
450
550
625
700
775
850
75
200
25
Ohio
250
400
550
650
750
850
950
1050
100
225
35
Oklahoma
350
500
650
800
925
1050
1175
1300
100
250
35
Oregon
300
500
700
825
950
1075
1200
1325
125
275
40
Pennsvlvania
250
400
550
650
750
850
950
1050
100
225
35
Puerto Rico
250
350
450
550
625
700
775
850
75
200
25
Rhode Island
400
500
600
700
800
900
1000
1100
100
300
25
South Carolina
500
575
775
900
1075
1225
1350
1500
150
350
50
South Dakota
350
500
650
800
900
1000
1100
1200
100
300
40
Tennessee
250
350
450
550
625
700
775
850
75
200
25
Texas
250
350
450
550
625
700
775
850
75
200
25
Utah
250
350
450
550
625
700
775
850
75
200
25
Vermont
250
350
450
550
625
700
775
850
75
200
25
Virain Islands
250
350
450
550
625
700
775
850
75
200
25
Viroinia
300
500
600
700
800
900
1000
1100
100
225
35
W ashinaton
450
600
750
900
1050
1200
1350
1500
150
300
50
West Viroinia
250
400
550
650
750
850
950
1050
100
225
35
Wisconsin
350
500
650
750
850
950
1050
1150
125
325
60
Wyoming
250
350
450
550
625
700
775
850
75
200
25
xcept ons. See supplementary information.
(1) Person whose residential move is performed by agency, S50.
(2) Move of a mobile home from site, actual cost: reasonable amount may be added for packing and securing personal property for the move at agency discretion
(3) Occupant of dormitory, $50.
67 03- 268
'Public Law 91-646
91st Congress, S. 1
January 2, 1971
('As amended by Public Law 100-17,
Apr. 2, 1987, Title IV, Uniform
Relocation Act Amendments of 1987.)
('As amended by Public Law 102-240,
Dec. 18, 1991, Sec. 1055, Relocation
Assistance Regulations Relating to the
Rural Electrification Administration.)
(`As amended by Public Law 105-117,
Nov 21, 1997, Sec.104; Sec 2, an Alien not
lawfully present in the United States)
Office of Real Estate Services
Federal Highway Administration
AN ACT
To provide for uniform and equitable treatment of persons
displaced from their homes, businesses, or farms by Federal and
federally assisted programs and to establish uniform and
equitable land acquisition policies for Federal and federally
assisted programs.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That this Act may
be cited as the "Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970".
TITLE I --GENERAL PROVISIONS
SEC. 101. As used in this Act --
(1) The term "Federal agency" means any department, agency,
or instrumentality in the executive branch of the Government, any
wholly owned Government corporation, the Architect of the
Capitol, the Federal Reserve banks and branches thereof, and any
person who has the authority to acquire property by eminent
domain under Federal law.
(2) The term "State" means any of the several States of the
United States, the District of Columbia, the Commonwealth of
Puerto Rico, any territory or possession of the United States,
the Trust Territory of the Pacific Islands, and any political
subdivision thereof.
(3) The term "State agency" means any department, agency, or
instrumentality of a State or of a political subdivision of a
State, any department, agency, or instrumentality of two or more
States or of two or more political subdivisions of a State or
'Original text appears in regular typeface.
"Amended text is displayed in boldface.
3Amended text is in section 213(c) in regular typeface.
`Amended text is in sections 104 & 2 in bold italics.
68
States, and any po-,_son who has the authority acquire property
by eminent domain under State law.
(4) The term "Federal financial assistance" means a grant,
loan, or contribution provided by the United States, except any
Federal guarantee or insurance, any interest reduction payment to
an individual in connection with the purchase and occupancy of a
residence by that individual, and any annual payment or capital
loan to the District of Columbia.
(5) The term "person" means any individual, partnership,
corporation, or association.
(6)(A) The term "displaced person" means, except as provided
in subparagraph (B) --
(i) any person who moves from real property, or
moves his personal property from real property -
(I) as a direct result of a written notice of
intent to acquire or the acquisition of such
real property in whole or in part for a program or
project undertaken by a Federal agency or with Federal
financial assistance; or
(II) on which such person is a residential
tenant or conducts a small business, a farm
operation, or a business defined in section 101(7)(D),
as a direct result of rehabilitation, demolition, or
such other displacing activity as the lead agency may
prescribe, under a program or project undertaken by a
Federal agency or with Federal financial assistance in
any case in which the head of the displacing agency
determines that such displacement is permanent; and
(ii) solely for the purposes of sections 202(a)and
(b) and 205 of this title, any person who
moves from real property, or moves his personal
property from real property --
(I) as a direct result of a written notice of
intent to acquire or the acquisition of other
real property, in whole or in part, on which such
person conducts a business or farm operation, for a
program or
project undertaken by a Federal agency or with Federal
financial assistance; or
(II) as a direct result of rehabilitation,
demolition, or such other displacing activity as
the lead agency may prescribe, of other real property
on which such person conducts a business or a farm
operation, under a program or project undertaken by a
Federal agency or with Federal financial assistance
where the head of the displacing agency determines that
such displacement is permanent.
(B) The term "displaced person" does not include -
(i) a person who has been determined, according
to criteria established by the head of the lead
agency, to be either in unlawful occupancy of the
displacement dwelling or to have occupied such dwelling
for the purpose of obtaining assistance under this Act;
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(ii, in any case in which the aplacing agency
acquires property for a program or project, any person
(other than a person who was an occupant of such
property at the time it was acquired) who occupies such
property on a rental basis for a short term or a period
subject to termination when the property is needed for
the program or project.
(7)The term "business" means any lawful activity, excepting
a farm operation, conducted primarily --
(A) for the purchase, sale, lease and rental of
personal and real property, and for the
manufacture, processing, or marketing of products,
commodities, or any other personal property;
(B) for the sale of services to the public;
(C) by a nonprofit organization; or
(D) solely for the purposes of section 202 of this
title, for assisting in the purchase, sale,
resale, manufacture, processing, or marketing of
products, commodities, personal property, or
services by the erection and maintenance of an
outdoor advertising display or displays, whether
or not such display or displays are located on the
premises on which any of the above activities are
conducted.
(8) The term "farm operation" means any activity conducted
solely or primarily for the production of one or more
agricultural products or commodities, including timber, for sale
or home use, and customarily producing such products or
commodities in sufficient quantity to be capable of contributing
materially to the operator's support.
(9) The term "mortgage" means such classes of liens as are
commonly given to secure advances on, or the unpaid purchase
price of, real property, under the laws of the State in which the
real property is located, together with the credit instruments,
if any, secured thereby.
(10) The term "comparable replacement dwelling" means any
dwelling that is (A) decent, safe, and sanitary; (B) adequate in
size to accommodate the occupants; (C) within the financial means
of the displaced person; (D) functionally equivalent; (E) in an
area not subject to unreasonable adverse environmental
conditions; and (F) in a location generally not less desirable
than the location of the displaced person's dwelling with respect
to public utilities, facilities, services, and the displaced
person's place of employment.
(11) The term "displacing agency" means any Federal agency
carrying out a program or project, and any State, State agency,
or person carr -ling out a program or project with Federal
financial assistance, which causes a person to be a displaced
person.
(12) The term "lead agency" means the Department of
Transportation.
(13) The term "appraisal" means a written statement
independently and impartially prepared by a qualified appraiser
setting forth an opinion of defined value of an adequately
described property as of a specific date, supported by the
presentation and analysis of relevant market information.
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E_ -CT UPON PROPERTY ACQUISI )N
SEC. 102. (a) The provisions of section
Act create no rights or liabilities and
validity of any property acquisitions by
condemnation.
(b) Nothing in this Act shall
in any condemnation proceedings brought
eminent domain, any element of value or
existence immediately prior to the date
CERTIFICATION
301 of title III of this
shall not affect the
purchase or
be construed as creating
under the power of
of damage not in
of enactment of this Act.
SEC. 103. (a) Notwithstanding sections 210 and 305 of this Act,
the head of a Federal agency may discharge any of his
responsibilities under this Act by accepting a certification by a
State agency that it will carry out such responsibility, if the
head of the lead agency determines that such responsibility will
be carried out in accordance with State laws which will
accomplish the purpose and effect of this Act.
(b) (1) The head of the lead agency shall issue regulations
to carry out this section.
(2) The head of the lead agency shall, in coordination
with other Federal agencies, monitor from time to time, and
report biennially to the Congress on, State agency
implementation of this section. A State agency shall make
available any information required for such purpose.
(3) Before making a determination regarding any State
law under subsection (a) of this section, the head of the
lead agency shall provide interested parties with an
opportunity for public review and comment. In particular,
the head of the lead agency shall consult with interested
local general purpose governments within the State on the
effects of such State law on the ability of local
governments to carry out their responsibilities under this
Act.
(c) (1) The head of a Federal agency may withhold his
approval of any Federal financial assistance to or contract
or cooperative agreement with any displacing agency found by
the Federal agency to have failed to comply with the laws
described in subsection (a) of this section.
(2) After consultation with the head of the lead
agency, the head of a Federal agency may rescind his
acceptance of any certification under this section, in whole
or in part, if the State agency fails to comply with such
certification or with State law.
DISPLACED PERSONS NOT ELIGIBLE FOR ASSISTANCE
SEC. 104. (a) IN GENERAL- Except as provided in subsection (c), a
displaced person shall not be eligible to receive
relocation payments or any other assistance under this Act
if the displaced person is an alien not lawfully present in
the United States.
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(b) DET.. 1INATIONS OF ELIGIBILITY
(1) PROMULGATION OF REGULATIONS- Not later than 1
year after the date of enactment of this section, after
providing notice and an opportunity for public comment, the
head of the lead agency shall promulgate regulations to
carry out subsection (a).
(2) CONTENTS OF REGULATIONS- Regulations
promulgated under paragraph (1) shall
(A) prescribe the processes, procedures, and
information that a displacing agency must use in
determining whether a displaced person is an alien not
lawfully present in the United States;
(B) prohibit a displacing agency from
discriminating against any displaced person;
(C)ensure that each eligibility determination
is fair and based on reliable information; and
(D) prescribe standards for a displacing
agency to apply in making determinations relating to
exceptional and extremely unusual hardship under
subsection (c).
(c) EXCEPTIONAL AND EXTREMELY UNUSUAL HARDSHIP- If a
displacing agency determines by clear and convincing
evidence that a determination of the ineligibility of a
displaced person under subsection (a) would result in
exceptional and extremely unusual hardship to an individual
who is the displaced person's spouse, parent, or child and
who is a citizen of the United States or an alien lawfully
admitted for permanent residence in the United States, the
displacing agency shall provide relocation payments and
other assistance to the displaced person under this Act if
the displaced person would be eligible for the assistance
but for subsection (a).
(d) LIMITATION ON STATUTORY CONSTRUCTION. Nothing in
this section affects any right available to a displaced
person under any other provision of Federal or State law..
TITLE II --UNIFORM RELOCATION ASSISTANCE
DECLARATION OF FINDINGS AND POLICY
SEC. 201. (a) The Congress finds and declares that --
(1) displacement as a direct result of programs or
projects undertaken by a Federal agency or with Federal
financial assistance is caused by a number of activities,
including rehabilitation, demolition, code enforcement, and
acquisition;
(2) relocation assistance policies must provide
for fair, uniform, and equitable treatment of all affected
persons;
(3) the displacement of businesses often results
in their closure;
(4) minimizing the adverse impact of displacement
is essential to maintaining the economic and social well-
being of communities; and
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(5, _mplementation of this Act .as resulted in
burdensome, inefficient, and inconsistent compliance
requirements and procedures which will be improved by
establishing a lead agency and allowing for State
certification and implementation.
(b) This title establishes a uniform policy for the
fair and equitable treatment of persons displaced as a
direct result of programs or projects undertaken by a
Federal agency or with Federal financial assistance. The
primary purpose of this title is to ensure that such persons
shall not suffer disproportionate injuries as a result of
programs and projects designed for the benefit of the public
as a whole and to minimize the hardship of displacement on
such persons.
(c) It is the intent of Congress that --
(1) Federal agencies shall carry out this title in
a manner which minimizes waste, fraud, and mismanagement and
reduces unnecessary administrative costs born by States and
State agencies in providing relocation assistance;
(2) uniform procedures for the administration of
relocation assistance shall, to the maximum extent feasible,
assure that the unique circumstances of any displaced person
are taken into account and that persons in essentially
similar circumstances are accorded equal treatment under
this Act;
(3) the improvement of housing conditions of
economically disadvantaged persons under this title shall be
undertaken, to the maximum extent feasible, in coordination
with existing Federal, State, and local governmental
programs for accomplishing such goals; and
(4) the policies and procedures of this Act will
be administered in a manner which is consistent with fair
housing requirements and which assures all persons their
rights under title VIII of the Act of April 11, 1968 (P.L.
90-284), commonly known as the Civil Rights Act of 1968, and
title VI of the Civil Rights Act of 1964.
MOVING AND RELATED EXPENSES.
SEC. 202. (a) Whenever a program or project to be undertaken by a
displacing agency will result in the displacement of any person,
the head of the displacing agency shall provide for the payment
to the displaced person of --
(1) actual reasonable expenses in moving himself,
his family, business, farm operation, or other personal
property;
(2) actual direct losses of tangible personal
property as a result of moving or discontinuing a business
or farm operation, but not to exceed an amount equal to the
reasonable expenses that would have been required to
relocate such property, as determined by the head of the
agency;
(3) actual reasonable expenses in searching for a
replacement business or farm; and
(4) actual reasonable expenses necessary to
reestablish a displaced farm, nonprofit organization, or
small business at its new site, but not to exceed $10,000.
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(b) Any _splaced person eligible f payments under
subsection (a)of this section who is displaced from a
dwelling and who elects to accept the payments authorized by
this subsection in lieu of the payments authorized by
subsection (a) of this section may receive an expense and
dislocation allowance, which shall be determined according
to a schedule established by the head of the lead agency.
(c) Any displaced person eligible for payments under
subsection (a) of this section who is displaced from the
person's place of business or farm operation and who is
eligible under criteria established by the head of the lead
agency may elect to accept the payment authorized by this
subsection in lieu of the payment authorized by subsection
(a) of this section. Such payment shall consist of a fixed
payment in an amount to be determined according to criteria
established by the head of the lead agency, except that such
payment shall not be less than $1,000 nor more than $20,000.
A person whose sole business at the displacement dwelling
is the rental of such property to others shall not qualify
for a payment under this subsection.
(d) (1) Except as otherwise provided by Federal law --
(A) if a program or project (i) which is
undertaken by a displacing agency, and (ii) the purpose
of which is not to relocate or reconstruct any utility
facility, results in the relocation of a utility
facility;
(B) if the owner of the utility facility
which is being relocated under such program or project
has entered into, with the State or local government on
whose property, easement, or right-of-way such facility
is located, a franchise or similar agreement with
respect to the use of such property, easement, or
right-of-way; and
(C) if the relocation of such facility
results in such owner incurring an extraordinary cost
in connection with such relocation; the displacing
agency may, in accordance with such regulations as the
head of the lead agency may issue, provide to such
owner a relocation payment which may not exceed the
amount of such extraordinary cost (less any increase in
the value of the new utility facility above the value
of the old utility facility and less any salvage value
derived from the old utility facility).
(2) For purposes of this subsection, the term --
(A) "extraordinary cost in connection with a
relocation" means any cost incurred by the owner of a
utility facility in connection with relocation of such
facility which is determined by the head of the
displacing agency, under such regulations as the head
of the lead agency shall issue --
(i) to be a non -routine relocation
expense;
(ii) to be a cost such owner ordinarily
does not include in its annual budget as an
expense of operation; and
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(iii) to meet such o er requirements as
the lead agency may prescribe in such regulations;
and
(B) "utility facility" means
(i) any electric, gas, water, steam
power, or materials transmission or distribution
system;
(ii) any transportation system;
(iii) any communications system
(including cable television); and
(iv) any fixtures, equipment, or other
property associated with the operation,
maintenance, or repair of any such system;
located on property which is owned by a State or
local government or over which a State or local
government has an easement or right-of-way. A
utility facility may be publicly, privately, or
cooperatively owned.
REPLACEMENT HOUSING FOR HOMEOWNER
SEC. 203. (a) (1) In addition to payments otherwise authorized
by this title, the head of the displacing agency shall make an
additional payment not in excess of $22,500 to any displaced
person who is displaced from a dwelling actually owned and
occupied by such displaced person for not less than one hundred
and eighty days prior to the initiation of negotiations for the
acquisition of the property. Such additional payment shall
include the following elements:
(A) The amount, if any, which when added to
the acquisition cost of the dwelling acquired by the
displacing agency, equals the reasonable cost of a
comparable replacement dwelling.
(B) The amount, if any, which will compensate
such displaced person for any increased interest costs
and other debt service costs which such person is
required to pay for financing the acquisition of any
such comparable replacement dwelling. Such amount
shall be paid only if the dwelling acquired by the
displacing agency was encumbered by a bona fide
mortgage which was a valid lien on such dwelling for
not less than 180 days immediately prior to the
initiation of negotiations for the acquisition of such
dwelling.
(C) Reasonable expenses incurred by such
displaced person for evidence of title, recording fees,
and other closing costs incident to the purchase of the
replacement dwelling, but not including prepaid
expenses.
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(2) +he additional payment aut_.rized by this
section shall be made only to a displaced person who
purchases and occupies a decent, safe, and sanitary
replacement dwelling within one year after the date on which
such person receives final payment from the displacing
agency for the acquired dwelling or the date on which the
displacing agency's obligation under section 205(c)(3) of
this Act is met, whichever is later, except that the
displacing agency may extend such period for good cause. If
such period is extended, the payment under this section
shall be based on the costs of relocating the person to a
comparable replacement dwelling within one year of such
date.
(b) The head of any Federal agency may, upon
application by a mortgagee, insure any mortgage (including
advances during construction) on a comparable replacement
dwelling executed by a displaced person assisted under this
section, which mortgage is eligible for insurance under any
Federal law administered by such agency notwithstanding any
requirements under such law relating to age, physical condition,
or other personal characteristics of eligible mortgagors, and may
make commitments for the insurance of such mortgage prior to the
date of execution of the mortgage.
REPLACEMENT HOUSING FOR TENANTS AND CERTAIN OTHERS
SEC. 204 (a) In addition to amounts otherwise authorized by this
title, the head of a displacing agency shall make a payment to or
for any displaced person displaced from any dwelling not eligible
to receive a payment under section 203 which dwelling was
actually and lawfully occupied by such displaced person for not
less than ninety days immediately prior to (1) the initiation of
negotiations for acquisition of such dwelling, or (2) in any case
in which displacement is not a direct result of acquisition, such
other event as the head of the lead agency shall prescribe. Such
payment shall consist of the amount necessary to enable such
person to lease or rent for a period not to exceed 42 months, a
comparable replacement dwelling, but not to exceed $5,250. At
the discretion of the head of the displacing agency, a payment
under this subsection may be made in periodic installments.
Computation of a payment under this subsection to a low-income
displaced person for a comparable replacement dwelling shall take
into account such person's income.
(b) Any person eligible for a payment under subsection
(a) of this section may elect to apply such payment to a down
payment on, and other incidental expenses pursuant to, the
purchase of a decent, safe, and sanitary replacement dwelling.
Any such person may, at the discretion of the head of the
displacing agency, be eligible under this subsection for the
maximum payment allowed under subsection (a), except that, in the
case of a displaced homeowner who has owned and occupied the
displacement dwelling for at least 90 days but not more than 180
days immediately prior to the initiation of negotiations for the
acquisition of such dwelling, such payment shall not exceed the
payment such person would otherwise have received under section
203(a) of this Act had the person owned and occupied the
displacement dwelling 180 days immediately prior to the
initiation of such negotiations.
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RELOCATION PLA1 _NG, ASSISTANCE COORDINAT! AND ADVISORY
SERVICES
SEC.205 (a) Programs or projects undertaken by a Federal agency
or with Federal financial assistance shall be planned in a manner
that (1) recognizes, at an early stage in the planning of such
programs or projects and before the commencement of any actions
which will cause displacements, the problems associated with the
displacement of individuals, families, businesses, and farm
operations, and (2) provides for the resolution of such problems
in order to minimize adverse impacts on displaced persons and to
expedite program or project advancement and completion.
(b) The head of any displacing agency shall ensure that
the relocation assistance advisory services described in
subsection (c) of this section are made available to all persons
displaced by such agency. If such agency head determines that
any person occupying property immediately adjacent to the
property where the displacing activity occurs is caused
substantial economic injury as a result thereof, the agency head
may make available to such person advisory services.
(c) Each relocation assistance advisory program
required by subsection (b) of this section shall include such
measures, facilities, or services as may be necessary or
appropriate in order to:
(1) determine, and make timely recommendations on,
the needs and preferences, if any, of displaced persons for
relocation assistance;
(2) provide current and continuing information on
the availability, sales prices, and rental charges of
comparable replacement dwellings for displaced homeowners
and tenants and suitable locations for businesses and farm
operations;
(3) assure that a person shall not be required to
move from a dwelling unless the person has had a reasonable
opportunity to relocate to a comparable replacement
dwelling, except in the case of --
(A) a major disaster as defined in section
102(2) of the Disaster Relief Act of 1974;
(B) a national emergency declared by the
President; or
(C) any other emergency which requires the
person to move immediately from the dwelling because
continued occupancy of such dwelling by such person
constitutes a substantial danger to the health or
safety of such person;
(4) assist a person displaced from a business or
farm operation in obtaining and becoming established in a
suitable replacement location;
(5) supply (A) information concerning other
Federal and State programs which may be of assistance to
displaced persons, and (B) technical assistance to such
persons in applying for assistance under such programs; and
(6) provide other advisory services to displaced
persons in order to minimize hardships to such persons in
adjusting to relocation.
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(d) The _ -4ad of a displacing agency fall coordinate
the relocation activities performed by such agency with other
Federal, State, or local governmental actions in the community
which could affect the efficient and effective delivery of
relocation assistance and related services.
(e) Whenever two or more Federal agencies provide
financial assistance to a displacing agency other than a Federal
agency, to implement functionally or geographically related
activities which will result in the displacement of a person, the
heads of such Federal agencies may agree that the procedures of
one of such agencies shall be utilized to implement this title
with respect to such activities. If such agreement cannot be
reached, then the head of the lead agency shall designate one of
such agencies as the agency whose procedures shall be utilized to
implement this title with respect to such activities. Such
related activities shall constitute a single program or project
for purposes of this Act.
(f) Notwithstanding section 101(6) of this Act, in any
case in which a displacing agency acquires property for a program
or project, any person who occupies such property on a rental
basis for a short term or a period subject to termination when
the property is needed for the program or project shall be
eligible for advisory services to the extent determined by the
displacing agency.
HOUSING REPLACEMENT BY FEDERAL AGENCY AS LAST RESORT
SEC. 206. (a) If a program or project undertaken by a Federal
agency or with Federal financial assistance cannot proceed on a
timely basis because comparable replacement dwellings are not
available, and the head of the displacing agency determines that
such dwellings cannot otherwise be made available, the head of
the displacing agency may take such action as is necessary or
appropriate to provide such dwellings by use of funds authorized
for such project. The head of the displacing agency may use this
section to exceed the maximum amounts which may be paid under
sections 203 and 204 on a case-by-case basis for good cause as
determined in accordance with such regulations as the head of the
lead agency shall issue.
(b) No person shall be required to move from his
dwelling on account of any program or project undertaken by a
Federal agency or with Federal financial assistance, unless the
head of the displacing agency is satisfied that comparable
replacement housing is available to such person.
STATE REQUIRED TO FURNISH REAL PROPERTY INCIDENT TO FEDERAL
ASSISTANCE (LOCAL COOPERATION)
SEC. 207. Whenever real property is acquired by a State agency
and furnished as a required contribution incident to a Federal
program or project, the Federal agency having authority over the
program or project may not accept such property unless such State
agency has made all payments and provided all assistance and
assurances, as are required of a State agency by sections 210 and
305 of this Act.
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Such State agency all pay the cost of such - Iuirements in the
same manner and to she same extent as the reams property acquired
for such project, except that in the case of any real property
acquisition or displacement occurring prior to July 1, 1972, such
Federal agency shall pay 100 per centum of the first $25,000 of
the cost of providing such payments and assistance.
STATE ACTING AS AGENT FOR FEDERAL PROGRAM
SEC. 208. Whenever real property is acquired by a State agency
at the request of a Federal agency for a Federal program or
project, such acquisition shall, for the purposes of this Act, be
deemed an acquisition by the Federal agency having authority over
such program or project.
PUBLIC WORKS PROGRAMS AND PROJECTS OF THE GOVERNMENT OF THE
DISTRICT OF COLUMBIA AND OF THE WASHINGTON METROPOLITAN
AREA TRANSIT AUTHORITY
SEC. 209. Whenever real property is acquired by the government of
the District of Columbia or the Washington Metropolitan Area
Transit Authority for a program or project which is not subject
to sections 210 and 211 of this title, and such acquisition will
.result in the displacement of any person on or after the
effective date of this Act, the Commissioner of the District of
Columbia or the Washington Metropolitan Area Transit Authority,
as the case may be, shall make all relocation payments and
provide all assistance required of a Federal agency by this Act.
Whenever real property is acquired for such a program or project
on or after such effective date, such Commissioner or Authority,
as the case may be, shall make all payments and meet all
requirements prescribed for a Federal agency by title III of this
Act.
REQUIREMENTS FOR RELOCATION PAYMENTS AND ASSISTANCE OF
FEDERALLY ASSISTED PROGRAM; ASSURANCES OF AVAILABILITY
OF HOUSING
SEC. 210. Notwithstanding any other law, the head of a Federal
agency shall not approve any grant to, or contract or agreement
with, a displacing agency (other than a Federal agency), under
which Federal financial assistance will be available to pay all
or part of the cost of any program or project which will result
in the displacement of any person on or after the effective date
of this title, unless he receives satisfactory assurances from
such displacing agency that --
(1) fair and reasonable relocation payments and assistance
shall be provided to or for displaced persons, as are required to
be provided by a Federal agency under sections 202, 203, and 204
of this title;
(2) relocation assistance programs offering the services
described in section 205 shall be provided to such displaced
persons;
(3) within a reasonable period of time prior to
displacement, coraparable replacement dwellings will be available
to displaced persons in accordance with section 205(c)(3).
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FEDERAL SHARE OF COSTS
SEC. 211 (a) The cost to a displacing agency of providing
payments and assistance under this title and title III of this
Act shall be included as part of the cost of a program or project
undertaken by a Federal agency or with Federal financial
assistance. A displacing agency, other than a Federal agency,
shall be eligible for Federal financial assistance with respect
to such payments and assistance in the same manner and to the
same extent as other program or project costs.
(b) No payment or assistance under this title or title
III of this Act shall be required to be made to any person or
included as a program or project cost under this section, if such
person receives a payment required by Federal, State, or local
law which is determined by the head of the Federal agency to have
substantially the same purpose and effect as such payment under
this section.
(c) Any grant to, or contract or agreement with, a
State agency executed before the effective date of this title,
under which Federal financial assistance is available to pay all
or part of the cost of any program or project which will result
in the displacement of any person on or after the effective date
of this Act, shall be amended to include the cost of providing
payments and services under sections 210 and 305. If the head of
a Federal agency determines that it is necessary for the
expeditious completion of a program or project he may advance to
the State agency the Federal share of the cost of any payments or
assistance by such State agency pursuant to sections 206, 210,
215, and 305. [42 U.S.C. 46311
ADMINISTRATION --RELOCATION ASSISTANCE IN PROGRAMS
RECEIVING FEDERAL FINANCIAL ASSISTANCE
SEC. 212. In order to prevent unnecessary expenses and
duplications of functions, and to promote uniform and effective
administration of relocation assistance programs for displaced
persons under sections 206, 210, and 215 of this title, a State
agency may enter into contracts with any individual, firm,
association, or corporation for -services in connection with such
programs, or may carry out its functions under this title through
any Federal or State governmental agency or instrumentality
having an established organization for conducting relocation
assistance programs. Such State agency shall, in carrying out
the relocation assistance activities described in section 206,
whenever practicable, utilize the services of State or local
housing agencies, or other agencies having experience in the
administration or conduct of similar housing assistance
activities.
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DUTIES OF LEAD AGENCY
SEC. 213. (a) The head of the lead agency shall --
(1) develop, publish, and issue, with the active
participation of the Secretary of Housing and Urban
Development and the heads of other Federal agencies
responsible for funding relocation and acquisition actions,
and in coordination with State and local governments, such
regulations as may be necessary to carry out this Act;
(2) provide, in consultation with the Attorney
General (acting through the Commissioner of the
Immigration and Naturalization Service), through training
and technical assistance activities for displacing agencies,
information developed with the Attorney General (acting
through the Commissioner) on proper implementation of
section 104;
(3) ensure that relocation assistance activities
under this Act are coordinated with low-income housing
assistance programs or projects by a Federal agency or a
State or State agency with Federal financial assistance;
(4) monitor, in coordination with other Federal
agencies, the implementation and enforcement of this Act and
report to the Congress, as appropriate, on any major issues
or problems with respect to any policy or other provision of
this Act; and
(5) perform such other duties as may be necessary
to carry out this Act.
(b) The head of the lead agency is authorized to issue
such regulations and establish such procedures as he may
determine to be necessary to assure --
(1) that the payments and assistance authorized by
this Act shall be administered in a manner which is fair and
reasonable and as uniform as practicable;
(2) that a displaced person who makes proper
application for a payment authorized for such person by this
title shall be paid promptly after a move or, in hardship
cases, be paid in advance; and
(3) that any aggrieved person may have his
application reviewed by the head of the Federal agency
having authority over the applicable program or project or,
in the case of a program or project receiving Federal
financial assistance, by the State agency having authority
over such program or project or the Federal agency having
authority over such program or project if there is no such
State agency.
(c) The regulations and procedures issued pursuant to
this section shall apply to the Tennessee Valley Authority and
the Rural Electrification Administration only with respect to
relocation assistance under this title and title I.
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PLANNING AND fHER PRELIMINARY EXPENSES R ADDITIONAL
HOUSING
SEC. 215. In order to encourage and facilitate the construction
or rehabilitation of housing to meet the needs of displaced
persons who are displaced from dwellings because of any Federal
or Federal financially assisted project, the head of the Federal
agency administering such project is authorized to make loans as
a part of the cost of any such project, or to approve loans as a
part of the cost of any such project receiving Federal financial
assistance, to nonprofit, limited dividend, or cooperative
organizations or to public bodies, for necessary and reasonable
expenses, prior to construction, for planning and obtaining
federally insured mortgage financing for the rehabilitation or
construction of housing for such displaced persons.
Notwithstanding the preceding sentence, or any other law, such
loans shall be available for not to exceed 80 per centum of the
reasonable costs expected to be incurred in planning, and in
obtaining financing for, such housing, prior to the availability
of such financing, including, but not limited to, preliminary
surveys and analyses of market needs, preliminary site
engineering, preliminary architectural fees, site acquisition,
application and mortgage commitment fees, and construction loan
fees and discounts. Loans to an organization established for
profit shall bear interest at a market rate established by the
head of such Federal agency. All other loans shall be without
interest. Such Federal agency head shall require repayment of
loans made under this section, under such terms and conditions as
he may require, upon completion of the project or sooner, and
except in the case of a loan to an organization established for
profit, may cancel any part or all of a loan if he determines
that a permanent loan to finance the rehabilitation or the
construction of such housing cannot be obtained in an amount
adequate for repayment of such loan. Upon repayment of am,r such
loan, the Federal share of the sum repaid shall be credited to
the account from which such loan was made, unless the Secretary
of the Treasury determines that such account is no longer in
existence, in which case such sum shall be returned to the
Treasury and credited to miscellaneous receipts.
PAYMENTS NOT TO BE CONSIDERED AS INCOME
SEC. 216. No payment received under this title shall be
considered as income for the purposes of the Internal Revenue
Code of 1954; or for the purposes of determining the eligibility
or the extent of eligibility of any person for assistance under
the Social Security Act or any other Federal law (except for any
Federal law providing low-income housing assistance).
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ANSFERS OF SURPLUS PROPER
SEC. 218. The Administrator of General Services is authorized to
transfer to a State agency for the purpose of providing
replacement housing required by this title, any real property
surplus to the needs of the United States within the meaning of
the Federal Property and Administrative Services Act of 1949, as
amended. Such transfer shall be subject to such terms and
conditions as the Administrator determines necessary to protect
the interests of the United States and may be made without
monetary consideration, except that such State agency shall pay
to the United States all net amounts received by such agency from
any sale, lease, or other disposition of such property for such
housing.
REPEALS
SEC. 220. (a) The following laws and parts of laws are hereby
repealed:
(1) The Act entitled "An Act to authorize the
Secretary of the Interior to reimburse owners of lands
required for development under his jurisdiction for their
moving expenses, and for other purposes," approved May 29,
1958 (43 U.S.C. 1231-1234).
(2) Paragraph 14 of section 203(b) of the National
Aeronautics and Space Act of 1958 (42 U.S.C. 2473).
(3) Section 2680 of title 10, United States Code.
(4) Section 7(b) of the Urban Mass Transportation
Act of 1965 (49 U.S.C. 1606(b)).
(5) Section 114 of the Housing Act of 1949 (2
U.S.C. 1465).
(6) Paragraphs (7)(b)(iii) and (8) of section 15
of the United States Housing Act of 1937 (42 U.S.C. 1415,
1415(8)), except the first sentence of paragraph (8).
(7) Section 2 of the Act entitled "An Act to
authorize the Commissioners of the District of Columbia to
pay relocation costs made necessary by actions of the
District of Columbia government, and for other purposes",
approved October 6, 1964 (78 Stat. 1004; Public Law 88-629;
D.C. Code 5-729).
(8) Section 404 of the Housing and Urban
Development Act of 1965 (42 U.S.C. 3074).
(9) Sections 107 (b) and (c) of the Demonstration
Cities and Metropolitan Development Act of 1966 (42 U.S.C.
3307).
(10) Chapter 5 of title 23, United States Code.
(11) Sections 32 and 33 of the Federal -Aid Highway
Act of 1968 (Public Law 90-495).
(b) Any rights or liabilities now existing under prior
Acts or portions thereof shall not be affected by the
repeal of such prior Acts or portions thereof under
subsection (a) of this section.
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EFFECTIVE DATE
SEC. 221. (a) Except as provided in subsections (b) and (c) of
this section, this Act and the amendments made by this Act shall
take effect on the date of its enactment.
(b) Until July 1, 1972, sections 210 and 305 shall be
applicable to a State only to the extent that such State is able
under its laws to comply with such sections. After July 1, 1972,
such sections shall be completely applicable to all States.
(c) The repeals made by paragraphs (4), (5), (6), (8),
(9), (10), (11), and (12) of section 220(a) of this title and
section 306 of title III shall not apply to any State so long as
sections 210 and 305 are not applicable in such State.
TITLE III --UNIFORM REAL PROPERTY ACQUISITION
POLICY
UNIFORM POLICY ON REAL PROPERTY ACQUISITION PRACTICES
SEC. 301. In order to encourage and expedite the acquisition of
real property by agreements with owners, to avoid litigation and
relieve congestion in the courts, to assure consistent treatment
for owners in the many Federal programs, and to promote public
confidence in Federal land acquisition practices, heads of
Federal agencies shall, to the greatest extent practicable, be
guided by the following policies:
(1) The head of a Federal agency shall make every reasonable
effort to acquire expeditiously real property by negotiation.
(2) Real property shall be appraised before the initiation
of negotiations, and the owner or his designated representative
shall be given an opportunity to accompany the appraiser during
his inspection of the property, except that the head of the lead
agency may prescribe a procedure to waive the appraisal in cases
involving the acquisition by sale or donation of property with a
low fair market value.
(3) Before the initiation of negotiations for real property,
the head of the Federal agency concerned shall establish an
amount which he believes to be just compensation therefor and
shall make a prompt offer to acquire the property for the full
amount so established. In no event shall such amount be less
than the agency's approved appraisal of the fair market value of
such property. Any decrease or increase in the fair market value
of real property prior to the date of valuation caused by the
public improvement for which such property is acquired, or by the
likelihood that the property would be acquired for such
improvement, other than that due to physical deterioration within
the reasonable control of the owner, will be disregarded in
determining the compensation for the property. The head of the
Federal agency concerned shall provide the owner of real property
to be acquired with a written statement of, and summary of the
basis for, the amount he established as just compensation. Where
appropriate the just compensation for the real property acquired
and for damages to remaining real property shall be separately
stated.
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(4) No owner all be required to surrey. I possession of
real property before the head of the Federal agency concerned
pays the agreed purchase price, or deposits with the court in
accordance with section 1 of the Act of February 26, 1931 (46
Stat. 1421; 40 U.S.C. 258a), for the benefit of the owner, an
amount not less than the agency's approved appraisal of the fair
market value of such property, or the amount of the award of
compensation in the condemnation proceeding for such property.
(5) The construction or development of a public improvement
shall be so scheduled that, to the greatest extent practicable,
no person lawfully occupying real property shall be required to
move from a dwelling (assuming a replacement dwelling as required
by title II will be available), or to move his business or farm
operation, without at least ninety days' written notice from the
head of the Federal agency concerned, of the date by which such
move is required.
(6) If the head of a Federal agency permits an owner or
tenant to occupy the real property acquired on a rental basis for
a short term or for a period subject to termination by the
Government on short notice, the amount of rent required shall not
exceed fair rental value of the property to a short-term
occupier.
(7) In no event shall the head of a Federal agency either
advance the time of condemnation, or defer negotiations or
condemnation and the deposit of funds in court for the use of the
owner, or take any other action coercive in nature, in order to
compel an agreement on the price to be paid for the property.
(8) If any interest in real property is to be acquired by
exercise of the power of eminent domain, the head of the Federal
agency concerned shall institute formal condemnation proceedings.
No Federal agency head shall intentionally make it necessary for
an owner to institute legal proceedings to prove the fact of the
taking of his real property.
(9) If the acquisition of only a portion of a property would
leave the owner with an uneconomic remnant, the head of the
Federal agency concerned shall offer to acquire that remnant.
For the purposes of this Act, an uneconomic remnant is a parcel
of real property in which the owner is left with an interest
after the partial acquisition of the owner's property and which
the head of the Federal agency concerned has determined has
little or no value or utility to the owner.
(10) A person whose real property is being acquired in
accordance with this title may, after the person has been fully
informed of his right to receive just compensation for such
property, donate such property, and part thereof, any interest
therein, or any compensation paid therefor to a Federal agency,
as such person shall determine.
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BUILL CS, STRUCTURES, AND IMPRC SENTS
SEC. 302. (a) Notwithstanding any other provision of law, if the
head of a Federal agency acquires any interest in real property
in any State, he shall acquire at least an equal interest in all
buildings, structures, or other improvements located upon the
real property so acquired and which he requires to be removed
from such real property or which he determines will be adversely
affected by the use to which such real property will be put.
(b) (1) for the purpose of determining just compensation to
be paid for any building, structure, or other improvement
required to be acquired by subsection (a) of this section,
such building, structure, or other improvement shall be
deemed to be a part of the real property to be acquired
notwithstanding the right or obligation of a tenant, as
against the owner of any other interest in the real
property, to remove such building, structure, or improvement
at the expiration of his term, and the fair market value
which such building, structure, or improvement contributes
to the fair market value of the real property to be
acquired, or the fair market value of such building,
structure, or improvement for removal from the real
property, whichever is the greater, shall be paid to the
tenant therefor.
(2) Payment under this subsection shall not result in
duplication of any payments otherwise authorized by law. No
such payment shall be made unless the owner and the land
involved disclaims all interest in the improvements of the
tenant. In consideration for any such payment, the tenant
shall assign, transfer, and release to the United States all
his right, title, and interest in and to such improvements.
Nothing in this subsection shall be construed to deprive
the tenant of any rights to reject payment under this
subsection and to obtain payment for such property interests
in accordance with applicable law, other than this
subsection.
EXPENSES INCIDENTAL TO TRANSFER OF TITLE TO UNITED STATES
SEC. 303. The head of a Federal agency, as soon as practicable
after the date of payment of the purchase price or the date of
deposit in court of funds to satisfy the award of compensation in
a condemnation proceeding to acquire real property, whichever is
the earlier, shall reimburse the owner, to the extent the head of
such agency deems fair and reasonable, for expenses he
necessarily incurred for --
(1) recording fees, transfer taxes, and similar expenses
incidental to conveying such real property to the United States;
(2) penalty costs for prepayment of any preexisting recorded
mortgage entered into in good faith encumbering such real
property; and
(3) the pro rata portion of real property taxes paid which
are allocable to a period subsequent to the date of vesting title
in the United States, or the effective date of possession of such
real property by the United States, whichever is the earlier.
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LITIGATION EXPENSES
SEC. 304. (a) The Federal court having jurisdiction of a
proceeding instituted by a Federal agency to acquire real
property by condemnation shall award the owner of any right, or
title to, or interest in, such real property such sum as will in
the opinion of the court reimburse such owner for his reasonable
costs, disbursements, and expenses, including reasonable
attorney, appraisal, and engineering fees, actually incurred
because of the condemnation proceedings, if --
(1) the final judgment is that the Federal agency
cannot acquire the real property by condemnation; or
(2) the proceeding is abandoned by the United
States.
(b) Any award made pursuant to subsection (a) of this
section shall be paid by the head of the Federal agency for whose
benefit the condemnation proceedings was instituted.
(c) The court rendering a judgment for the plaintiff in
a proceeding brought under section 1346(a)(2) or 1491 of title
28, United States Code, awarding compensation for the taking of
property by a Federal agency, or the Attorney General effecting a
settlement of any such proceeding, shall determine and award or
allow to such plaintiff, as a part of such judgment or
settlement, such sum as will in the opinion of the court or the
Attorney General reimburse such plaintiff for his reasonable
costs, disbursements, and expenses, including reasonable
attorney, appraisal, and engineering fees, actually incurred
because of such proceeding.
REQUIREMENTS FOR UNIFORM LAND ACQUISITION POLICIES;
PAYMENTS OF EXPENSES INCIDENTAL TO TRANSFER OF
REAL PROPERTY TO STATE; PAYMENT OF LITIGATION EXPENSES
IN CERTAIN CASES
SEC. 305. (a) Notwithstanding any other law, the head of a
Federal agency shall not approve any program or project or any
grant to, or contract or agreement with, an acquiring agency
under which Federal financial assistance will be available to pay
all or part of the cost of any program or project which will
result in the acquisition of real property on and after the
effective date of this title, unless he receives satisfactory
assurances from such acquiring agency that --
(1) in acquiring real property it will be guided,
to the greatest extent practicable under State law, by the
land acquisition policies in section 301 and the provisions
of section 302, and
(2) property owners will be paid or reimbursed for
necessary expenses as specified in sections 303 and 304.
(b) For purposes of this section, the term "acquiring
agency" means --
(1) a State agency (as defined in section 101(3))
which has the authority to acquire property by eminent
domain under State law, and
(2) a State agency or person which does not have such
authority, to the extent provided by the head of the lead
agency by regulation.
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REPEALS
SEC. 306. Sections 401, 402, and 403 of the Housing and
Urban Development Act of 1965 (42 U.S.C. 3071-3073), section
35(a) of the Federal -Aid Highway Act of 1968 (23 U.S.C. 141) and
section 301 of the Land Acquisition Policy Act of 1960 (33 U.S.C.
596) are hereby repealed. Any rights or liabilities now existing
under prior Acts or portions thereof shall not be affected by the
repeal of such prior Act or portions thereof under this section.
EFFECTIVE DATE
SEC. 418. The amendment made by section 412 of this title (to the
extent such amendment prescribes authority to develop, publish,
and issue regulations) shall take effect on the date of the
enactment of this title. This title and the amendments made by
this title (other than the amendment made by section 412 to such
extent) shall take effect on the effective date provided in such
regulations but not later than 2 years after such date of
enactment.
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To our Honorable Commission of the City of Miami:
I am Bennet Pumo, owner of several warehouses targeted by the proposed park property
acquisition campaign. My family business has been committed to this area for over 50
years. We welcome this Commission and the efforts toward area revitalization. It is fact
this area, the North East district has, for years been neglected by past commissions with
most revitalization efforts being directed to Park West, Downtown, Brickell Ave, Little
Havana and other projects void of the North East quadrant of Miami. A park is a great
start, but for the City to get wrangled into the expense of this very ambitious and broadly
scoped project may prove very difficult. The maintenance, security, professional park
employment and the perpetual expense to keep this endeavor truly first class must be
scrutinized with all pitfalls identified.
There have been many statements of conjecture with reference to the boundary lines, the
job loss and the number of business's that will be lost. With the proposed boundary, there
has not been a detailed impact study of the surrounding community with "the good of this
park" versus the loss of the well-established business community providing a great
percentage of the job base in the immediate area.
We all agree the area needs help. One would think a park should be built near a school,
surrounded by the residences to frequent it. This proposal places the children's park
within an industrial park area. There also has been a future proposed transit terminal
along the present railroad alignment within the park boundary that could serve the entire
community.
This commission has approved the immediate action to buy property for this park, but at
what cost? There are reports and statements to this acquisition. The purporting cost is not
within a five, ten or even twenty percent plus or minus estimation, but of estimates with
the varied cost of two, three and almost four hundred percent in difference for this
acquisition. This Commission must be proof positive in this expenditure. With the
possible cost that may exceed 60 million dollars, the plus or minus of only a few percent
means big bucks, yet alone these estimates being subject to suggested 100 percent
variable.
Care must be taken with this areas vacancy availability, for the evicted business owners
and leasing occupants to relocate their shops and maintain this districts needed job base.
Pumo has 6 buildings, with approximately 25 business's occupying over 76,000 square
feet, providing perhaps 150 jobs that are subject to this proposal. Occupancy ranges from
the Actors Playhouse — Children's Miracle Theater to Steiner Atlantic, a worldwide
distributor of commercial laundry equipment and many small family owned businesses
within the other units.
As of this date, the area has 98% occupancy. This certainly is not enough footage in
relocating just the Pumo affected tenancy. Most assuredly the majority of the evicted
businesses will leave the area and those related jobs will be lost forever. With this, the
City will have to make up the loss of all revenues generated by these businesses.
Consideration must be given with the property tax loss for 60 acres of this largest
industrial zoned property with its close proximity to the port, downtown and design
district. With the effected Pumo property alone, the property tax loss will be in excess of
$37,000 per year, "forever."
"A park, yes, a great start for this district, but not this monster!"
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A few questions that must be considered:
1) is this park location the best choice for children's pedestrian access from school
and residential areas;
2) can "this proposal" be completed for the 25 million dollar budget;
3) in this time of world defense and City preparedness, is this Commission prepared
to spend another 25 or even 30 million dollars of "OUR" HOMELAND
SECURITY BUDGET to complete this existing park proposal;
4) where will the City make up the loss of the millions in tax revenues over the years
to come?
5) does the struggling parks department have the budget revenues to staff the many
areas within this 60 acre park;
6) does public works have it their proposed budget approved to maintain the
expansive park green areas, fields, stadium and the some twenty to forty
additional structures that are a part of this proposed project?
7) does the police department have the additional officers to secure this park?
8) does this City have any intentions of "down -zoning" the surrounding industrial
properties, for it was mentioned that activity inconsistent with the park will be
subject to City action? How consistent is industrial activity with soccer fields and
children's playgrounds sharing the same property line?
9) with the appearance of utilization and application of a "mass appraisal to value
calculation," will a proper study with the determination of realistic acquisition
cost for the economically valued buildings and realistic cost and compensation to
the owner occupied business's be done on a building to building basis?
10) many property owners within the proposed boundaries will vigorously fight the
destruction of their livelihood. Is the City prepared to pay these expanded cost for
the years of legal negotiations ahead?
Thank you for this opportunity to address these concerns for our district must maintain
the vitality through its job base and give our residents the safe haven and facilities it
deserves. We must maintain vitality of this area. Nurture the businesses, expand the
neighborhood job base and most importantly enhance this areas quality of life with a safe
environment with projects that are well thought out for all peoples of this North East
District. Thank you again.
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