[Federal Register Volume 59, Number 107 (Monday, June 6, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-13405]


[[Page Unknown]]

[Federal Register: June 6, 1994]


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Part II





Department of Housing and Urban Development





_______________________________________________________________________



Office of the Secretary



_______________________________________________________________________



24 CFR Part 42, et al.




Technical and Conforming Amendments to the Displacement, Relocation 
Assistance and Real Property Acquisition Regulations for HUD and HUD-
Assisted Programs; Rule
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Secretary

24 CFR Parts 42, 215, 221, 236, 510, 850, 880, 881, 882, 883, 884, 
900, and 941

[Docket No. R-94-1366; FR-2357-F-01]
RIN 2501-AB69

 
Technical and Conforming Amendments to the Displacement, 
Relocation Assistance and Real Property Acquisition Regulations for HUD 
and HUD-Assisted Programs

AGENCY: Office of the Secretary, HUD.

ACTION: Final rule.

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SUMMARY: This final rule revises a number of the Department's 
regulations covering programs subject to the Uniform Relocation 
Assistance and Real Property Acquisition Policies Act of 1970 (URA), as 
amended by the Uniform Relocation Act Amendments of 1987 (1987 
Amendments), to conform these regulations to these authorities and to 
the government-wide URA implementing regulations at 49 CFR part 24.

EFFECTIVE DATE: July 6, 1994.

FOR FURTHER INFORMATION CONTACT: H.J. Huecker, Director, or Mel 
Geffner, Deputy Director, Relocation and Real Estate Division, room 
7174, Department of Housing and Urban Development, 451 Seventh Street, 
SW., Washington, DC 20410. Telephone number (202) 708-0336. Hearing- or 
speech-impaired persons may call the TDD number--(202) 708-2565. (These 
are not toll-free numbers.)

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act Statement

    The information collection requirements contained in this rule have 
been approved by the Office of Management and Budget (OMB) under the 
Paperwork Reduction Act of 1980 and have been assigned OMB Control 
Number 2506-0121.

I. Statutory and Regulatory Background

    The Uniform Relocation Act Amendments of 1987 (Title IV, Pub. L. 
100-17, April 2, 1987) (1987 Amendments) amended the Uniform Relocation 
Assistance and Real Property Acquisition Policies Act of 1970 (URA).
    Principal among the 1987 Amendments is an expanded definition of 
the term ``displaced person'' to include any person who has moved or 
moved his personal property ``as a direct result of rehabilitation or 
demolition'' or privately undertaken acquisition.
    Under the revised definition, an ``unlawful occupant'' or a person 
occupying a displacement dwelling ``for the purpose of obtaining 
assistance,'' or a short-term renter who begins occupancy of the 
property with knowledge of its acquisition for a project that involves 
displacement, is not a ``displaced person.'' (Section 402, 1987 
Amendments.)
    In section 402(e) of the 1987 Amendments, the term ``comparable 
replacement dwelling'' is defined, in part, as a dwelling that is 
adequate, decent, safe, and sanitary, functionally equivalent and 
generally in as desirable a location as the location of the displaced 
person's dwelling. Also added by section 402(e) is a definition of the 
term ``displacing agency'', which 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.''
    Section 405 of the 1987 Amendments added a new paragraph 4 to 
section 202(a) of the URA to provide a maximum reestablishment payment 
of $10,000 for a displaced farm, nonprofit organization, or small 
business. Section 202(c) of the URA also was amended to change the 
range of the fixed payment that is available as an alternative to a 
payment for actual reasonable moving and related expenses. The new 
fixed payment ranges from $1,000 to $20,000. The former payment ranged 
from $2,500 to $10,000.
    Section 406 of the 1987 Amendments amended section 203(a) of the 
URA to increase the maximum payment under section 203 from $15,000 to 
$22,500 with respect to replacement housing for a homeowner, and under 
section 204, amended by section 407 of the 1987 Amendments, the maximum 
payment was increased to $5,250 for a renter. However, when such 
amounts are not sufficient to provide a comparable replacement dwelling 
as required by section 205(c)(3), agencies must provide additional or 
alternative assistance to the displaced person. Such additional or 
alternative assistance is authorized under section 206 (amended by 
section 409 of the 1987 Amendments).
    Section 412 of the Amendments authorized the lead agency 
(Department of Transportation (DOT)) to issue, with the active 
participation of HUD and other Federal agencies, regulations to 
implement the URA. On March 2, 1989, DOT issued a government-wide final 
rule (see 54 FR 8912) to follow an interim rule issued by that agency 
on December 17, 1987 (see 52 FR 47994). On February 19, 1988 (53 FR 
4964), HUD published an interim rule advising that it would make 
effective as of April 2, 1989 ``all the rule changes necessary to 
implement amendments'' to the URA. (Section 418 of the 1987 Amendments 
mandated that the amendments take effect no later than April 2, 1989.)

II. Public Comment on Interim HUD Rule

    HUD received only one comment in response to the interim rule. The 
comment concerned the fact that HUD did not join with DOT and certain 
other Federal agencies in the December 17, 1987 DOT interim final rule 
that implemented several of the 1987 Amendments. The commenter thought 
that HUD's delay would result in lower replacement housing payments for 
displaced persons.
    The DOT interim rule did not increase the amount of replacement 
housing assistance to be provided to a person displaced from a 
dwelling. The URA ``common rule'' jointly published in the Federal 
Register (51 FR 7000) by HUD and 16 other Federal agencies on February 
27, 1986, set forth an open-ended ``make whole'' standard as the basis 
for determining the amount of replacement housing assistance to be 
provided to displaced persons.
    Under the ``make whole'' approach, the displacing agency must 
provide assistance sufficient to enable the displaced person to 
purchase or rent (for a 42-month period) a comparable replacement 
dwelling, irrespective of the payment limits under section 203 (raised 
to $22,500 from $15,000) or section 204 (raised to $5,250 from $4,000) 
of the URA.
    Given the open-ended ``make whole'' approach to providing 
replacement housing assistance under the ``common rule'' and subsequent 
DOT interim and final rules, the sole impact of the DOT interim rule on 
the provision of replacement housing assistance was the reduction of 
rental assistance payments by 12.5 percent (caused by reducing the 
period of assistance from 48 to 42 months).
    Section 407 of the 1987 Amendments requires that URA rental 
assistance payments to lower income persons ``take into account such 
person's income.'' This change, implemented in the DOT final rule (but 
not in the DOT interim rule) substantially increased the amount of 
replacement housing assistance to very low-income persons. During the 
period between implementation of the DOT interim and final rule, URA 
replacement housing payments to tenants were higher under the now 
removed HUD URA rule at 24 CFR part 42 than under the DOT interim rule.

III. Public Comment on Proposed Section 8 Project-Based Certificate 
Program Rule

    On February 24, 1993, HUD published proposed relocation 
requirements (58 FR 11319) for the Section 8 Project-Based Certificate 
Program (PBC). The requirements were published with a proposed rule to 
conform Section 8 tenant-based rental certificate and rental voucher 
rules. The proposed PBC relocation policies were similar to those 
followed in other HUD-assisted programs. Three comments were received.
    The first comment addressed the current PBC requirement that 
prohibits the displacement of any residential tenant of a unit to be 
assisted under the PBC Program. On February 24, 1993, HUD proposed 
revising this policy to conform it to the standard applicable to other 
HUD-assisted programs. That standard allows displacement, provided it 
is consistent with the other goals and objectives of the program, and 
property owners take all reasonable steps to minimize it. One commenter 
opposed this proposal, stating that the current regulation works well 
to prevent displacement and, in extreme cases, can be waived.
    HUD believes that the current PBC displacement prohibition 
eliminates many projects where the failure to carry out timely 
rehabilitation leads to property deterioration that ultimately 
increases displacement--displacement without assistance to those forced 
to relocate. Under the proposed rule, persons displaced by 
rehabilitation for an assisted project would receive relocation 
assistance at URA levels, obtaining standard housing at a cost that is 
usually lower than what they had been paying for substandard housing. 
Accordingly, HUD did not adopt the comment, and the final rule reflects 
the ``minimize displacement'' standard that is followed in other HUD 
programs and described in the proposed rule. Also, it is noted that a 
public housing agency or Indian housing authority (HA) could opt to 
provide a unit selection preference for units where the rehabilitation 
will not result in the displacement of a family.
    The second comment addressed PBC relocation policy regarding 
``partially-assisted buildings.'' The term ``partially-assisted'' is 
used to describe a building in which some, but not all, of the units 
will be ``assisted'' with a project-based subsidy upon completion of 
the rehabilitation. Under the current PBC policy, only the occupants of 
units to be assisted under the section 8 HAP contract are protected by 
the URA. HUD proposed revising this policy to conform it to policy in 
other HUD-assisted rehabilitation programs where the tenants in all 
rehabilitated units in the building are protected, whether or not the 
units they occupy will receive a PBC subsidy.
    One commenter opposed the application of URA protections to 
occupants of non-assisted units in a partially-assisted building. The 
commenter was concerned about the cost and indicated that the policy 
would subsidize discrimination because families who don't want to live 
with assisted families would ``grab a pot of money and move.'' This 
observation reflects a misunderstanding of the proposed rule. A tenant 
who is offered the opportunity to occupy the property upon completion 
of the rehabilitation under reasonable terms and conditions is not 
entitled to relocation assistance if he or she elects to relocate. 
Given the limited amount of rehabilitation (and relocation) that can be 
supported with PBC subsidies, HUD does not anticipate significant 
displacement under the PBC program and, therefore, does not expect 
significant relocation costs under the program. More importantly, those 
costs which do occur as a result of a project should not be borne by 
the tenant. Accordingly, HUD did not adopt this comment.
    The third commenter asked that Sec. 882.712(g)(3), which allows an 
HA to request HUD's determination as to whether a displacement is or 
would be covered by the regulations, should include a requirement for a 
30-day response time by HUD. HUD will endeavor to respond to all HA 
requests as quickly as practicable and certainly within 30 days after 
all relevant information is received. A regulatory requirement for a 
30-day HUD response time would not be meaningful, however, because 
HUD's failure to respond within that period could not serve as a basis 
for the HA to conclude that the person was not eligible for relocation 
assistance.
    The final rule is similar to the proposed rule. As with other HUD-
assisted programs, in-place tenants, who will not be displaced from the 
building/complex, must be provided a written notice, which offers the 
opportunity to lease a unit in the building/complex under reasonable 
terms and conditions after the rehabilitation has been completed. As 
described in Sec. 882.712(g)(1)(iii)(A), such reasonable terms and 
conditions include a post-rehabilitation rent that does not exceed the 
greater of: (1) The rent charged prior to the agreement, or (2) an 
affordable rent based on the tenant's income.
    Such reasonable terms and conditions also include reimbursement for 
reasonable out-of-pocket expenses incurred by an in-place tenant who is 
required to relocate temporarily or to move permanently to another unit 
in the building/complex so the rehabilitation can be carried out. If 
these conditions are not met and the in-place tenant moves permanently 
from the building/complex, the tenant will be considered to have been 
displaced by the project and to be entitled to relocation assistance at 
URA levels.

IV. This Final Rule

    This rule is being issued to conform existing HUD program 
regulations to the DOT final rule at 49 CFR part 24. This rule does not 
reissue the DOT rule, but, for the benefit of HUD program users, adds 
definitions or descriptions that are peculiar to HUD's programs. Also, 
the rule does not change any of the environmental program requirements 
or the compliance requirements of 24 CFR parts 50 and 58. Users are 
urged to consult the DOT final rule (49 CFR part 24) for a more 
detailed description of, and guidance for, all matters relating to 
displacement covered by the URA.
    As indicated in the interim rule published by this agency on 
February 19, 1988, and now adopted by this rule, parts 42 and 43 have 
been removed, except that Sec. 42.1 (the only section in 24 CFR part 
42) remains as a guide-post to readers. It advises readers to consult 
the DOT rule at 49 CFR part 24 for the regulations implementing the URA 
and the 1987 Amendments.
    Certain terms, although treated in the DOT rule, are nonetheless 
defined, where appropriate, in the several parts of this rule. See, for 
example, the definitions contained in this rule for the terms 
``displaced person'' and ``initiation of negotiations.'' (These terms 
are defined in the DOT rule at 49 CFR 24.2(g) and 49 CFR 24.2(k), 
respectively.) The terms ``displaced person'' and ``initiation of 
negotiations'' are defined in this rule in order to cover circumstances 
unique to HUD's programs.

Economic Displacement, Temporary Relocation and Moves Within Project

    In some areas, HUD program regulations reflect policy 
determinations which go beyond the letter of the URA. The URA and the 
regulations at 49 CFR part 24 do not directly create eligibility for 
relocation assistance (as a ``displaced person'') for a tenant-occupant 
who is permitted to remain in the property but moves from the property 
because he or she cannot afford the rent charged upon completion of a 
project (economic displacement); who is required to relocate 
temporarily, but not permanently, while the project is underway; or who 
must move permanently to other space in the building/complex.
    Therefore, to protect such tenant-occupants, these program 
regulations provide that a tenant who moves permanently because the 
terms and conditions of continued occupancy, temporary relocation, or 
relocation within the building/complex are unreasonable will qualify as 
a ``displaced person'' who is entitled to relocation assistance at 
levels identical to those required in 49 CFR part 24.
    For purposes of determining whether the economic displacement of a 
tenant has occurred, these regulations establish as ``reasonable,'' a 
rent/utility charge that does not exceed the greater of: (1) A 
specified share of the person's income (e.g., 30 percent of income), or 
(2) the tenant's old monthly rent and estimated average monthly utility 
costs. A tenant who is required to pay a higher cost upon completion of 
the project may elect to remain in the project or move permanently and 
obtain relocation assistance at URA levels.
    The revisions to the various program regulations made by this rule 
reflect basic HUD policy. The HUD URA rule at 24 CFR part 42 (now 
superseded) contained similar policies, as do regulations covering 
other HUD-assisted programs (e.g., the Community Development Block 
Grant (CDBG) Program regulations at 24 CFR part 570).

Minimizing Displacement

    Because of statutory requirements (not superseded by the URA) 
governing some of HUD's programs, this rule provides, where necessary, 
that grantees minimize displacement. See, e.g., 24 CFR 510.52(a). This 
standard HUD policy urges grantees, consistent with the goals and 
objectives of the HUD program, to assure that they take reasonable 
steps to minimize direct and indirect displacement as a result of a 
project. For example, if feasible, residential occupants of buildings 
to be rehabilitated must be provided a reasonable opportunity to lease 
and occupy a suitable, decent, safe, sanitary and affordable dwelling 
unit in the building/complex following completion of the project. No 
comparable provision is to be found in the DOT rule. That rule's 
purpose is to implement the URA.

Other Matters

Environmental Review
    At the time of publication of the interim rule, a finding of no 
significant impact with respect to the environment was made in 
accordance with HUD regulations in 24 CFR part 50 that implement 
section 102(2)(C) of the National Environmental Policy Act of 1969 (42 
U.S.C. 4332). The proposed rule is adopted by this final rule without 
significant change. Accordingly, the initial finding of no significant 
impact remains applicable, and is available for public inspection 
between 7:30 a.m. and 5:30 p.m. weekdays in the office of the Rules 
Docket Clerk at the above address.
Regulatory Flexibility Act
    In accordance with 5 U.S.C. 605(b) (the Regulatory Flexibility 
Act), the undersigned hereby certifies that this rule does not have a 
significant economic impact on a substantial number of small entities. 
The rule revises existing regulations to comport with recent 
legislation that treats individuals and businesses more favorably.
Executive Order 12606, The Family
    The General Counsel, as the Designated Official under Executive 
Order 12606, The Family, has determined that this rule does not have 
potential for significant impact on family formation, maintenance, and 
general well-being, and, thus, is not subject to review under the 
Order. The rule ensures that families that are affected by displacement 
activity receive adequate assistance with respect to their relocation.
Executive Order 12612, Federalism
    The General Counsel, as the Designated Official under section 6(a) 
of Executive Order 12612, Federalism, has determined that the policies 
contained in this rule will not have substantial, direct effects on 
States, on their political subdivisions, or on their relationship with 
the Federal government, or on the distribution of power and 
responsibilities between them and other levels of government. The 
rule's major effects are on individuals and businesses. States or their 
political subdivisions are affected by this rule only to the extent 
that they act as grantees of Federal funds, disbursing these funds to 
the ultimate recipients--businesses and individuals.
    This rule was listed as Item 1535 in the Department's Semiannual 
Agenda of Regulations published on April 25, 1994 (59 FR 20424, 20436) 
pursuant to Executive Order 12866 and the Regulatory Flexibility Act.

    The Catalog of Federal Domestic Assistance program numbers are 
14.134, 14.146, 14.156, 14.219, 14.221, 14.225, and 14.227.

List of Subjects

24 CFR Part 42

    Administrative practice and procedure, Grant programs, Loan 
programs, Manufactured homes, Real property acquisition, Relocation 
assistance, Reporting and recordkeeping requirements.

24 CFR Part 215

    Grant programs--housing and community development, Rent subsidies, 
Reporting and recordkeeping requirements.

24 CFR Part 221

    Low and moderate income housing, Mortgage insurance, Reporting and 
recordkeeping requirements.

24 CFR Part 236

    Grant programs--housing and community development, Low and moderate 
income housing, Mortgage insurance, Rent subsidies, Reporting and 
recordkeeping requirements.

24 CFR Part 510

    Lead poisoning, Loan programs--housing and community development, 
Relocation assistance, Reporting and recordkeeping requirements, Social 
security, Urban renewal.

24 CFR Part 850

    Grant programs--housing and community development, Low and moderate 
income housing, Reporting and recordkeeping requirements.

24 CFR Part 880

    Grant programs--housing and community development, Rent subsidies, 
Reporting and recordkeeping requirements.

24 CFR Part 881

    Grant programs--housing and community development, Rent subsidies, 
Reporting and recordkeeping requirements.

24 CFR Part 882

    Grant programs--housing and community development, Homeless, Lead 
poisoning, Manufactured homes, Rent subsidies, Reporting and 
recordkeeping requirements.

24 CFR Part 883

    Grant programs--housing and community development, Rent subsidies, 
Reporting and recordkeeping requirements.

24 CFR Part 884

    Grant programs--housing and community development, Rent subsidies, 
Reporting and recordkeeping requirements, Rural areas.

24 CFR Part 900

    Grant programs--housing and community development, Rent subsidies.

24 CFR Part 941

    Grant programs--housing and community development, Loan programs--
housing and community development, Public housing.

    For the reasons set out in the preamble, the Department amends 24 
CFR parts 42, 215, 221, 236, 510, 850, 880, 881, 882, 883, 884, 900, 
and 941, as follows:
    1-2. 24 CFR part 42 is revised to read as follows:

PART 42--DISPLACEMENT, RELOCATION ASSISTANCE, AND REAL PROPERTY 
ACQUISITION FOR HUD AND HUD-ASSISTED PROGRAMS

    Authority: 42 U.S.C. 3535(d) and 4601.


Sec. 42.1  Applicable rules.

    HUD-assisted programs and projects are subject to the 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 (URA) 
(42 U.S.C. 4601 note) and implementing regulations issued by the 
Department of Transportation at 49 CFR part 24. Applicable program 
regulations contain additional relocation provisions.

PART 215--RENT SUPPLEMENT PAYMENTS

    3. The authority citation for part 215 continues to read as 
follows:

    Authority: 12 U.S.C. 1701s; 42 U.S.C. 3535(d).

    4. A new Sec. 215.80 is added to read as follows:


Sec. 215.80  Displacement, relocation, and acquisition.

    (a) Minimizing displacement. Consistent with the other goals and 
objectives of this part, Owners shall assure that they have taken all 
reasonable steps to minimize the displacement of persons (households, 
businesses, nonprofit organizations, and farms) as a result of a 
project assisted under this part.
    (b) Temporary relocation. The following policies cover residential 
tenants who will not be required to move permanently but who must 
relocate temporarily to permit rehabilitation or other work for a 
project. Such tenants must be provided:
    (1) Reimbursement for all reasonable out-of-pocket expenses 
incurred in connection with the temporary relocation, including the 
cost of moving to and from the temporarily occupied housing, any 
increase in monthly rent/utility costs, and incidental expenses.
    (2) Appropriate advisory services, including reasonable advance 
written notice of:
    (i) The date and approximate duration of the temporary relocation;
    (ii) The location of the suitable, decent, safe, and sanitary 
dwelling to be made available for the temporary period;
    (iii) The terms and conditions under which the tenant may lease and 
occupy a suitable, decent, safe, and sanitary dwelling in the building/
complex following completion of the rehabilitation; and
    (iv) The provisions of paragraph (b)(1) of this section.
    (c) Relocation assistance for displaced persons. A displaced person 
(defined in paragraph (g) of this section) must be provided relocation 
assistance at the levels described in, and in accordance with the 
requirements of, the Uniform Relocation Assistance and Real Property 
Acquisition Policies Act of 1970, as amended (URA) (42 U.S.C. 4201-
4655) and implementing regulations at 49 CFR part 24. A ``displaced 
person'' shall be advised of his or her rights under the Fair Housing 
Act (42 U.S.C. 3601-19), and, if the representative comparable 
replacement dwelling used to establish the amount of the replacement 
housing payment to be provided to a minority person is located in an 
area of minority concentration, such persons also shall be given, if 
possible, referrals to comparable and suitable, decent, safe and 
sanitary replacement dwellings not located in such areas.
    (d) Real property acquisition requirements. The acquisition of real 
property for a project is subject to the URA and the requirements 
described in 49 CFR part 24, subpart B.
    (e) Appeals. A person who disagrees with the Owner's determination 
concerning whether the person qualifies as a ``displaced person,'' or 
with the amount of relocation assistance for which the person is 
eligible, may file a written appeal of that determination with the 
Owner. A person who is dissatisfied with the Owner's determination on 
his or her appeal may submit a written request for review of that 
determination to the HUD Field Office.
    (f) Responsibility of Owner. (1) The Owner shall certify (i.e., 
provide assurance of compliance as required by 49 CFR part 24) that the 
Owner will comply with the URA, the regulations at 49 CFR part 24, and 
the requirements of this section. The Owner shall ensure such 
compliance notwithstanding any third party's contractual obligation to 
the Owner to comply with these provisions.
    (2) The cost of required relocation assistance is an eligible 
project cost in the same manner and to the same extent as other project 
costs. The cost of relocation assistance also may be paid from funds 
available from other sources.
    (3) The Owner shall maintain records in sufficient detail to 
demonstrate compliance with these provisions. The Owner shall maintain 
data on the race, ethnic, gender, and disability status of displaced 
persons.
    (g) Definition of displaced person. (1) For purposes of this 
section, the term ``displaced person'' means any person (household, 
business, nonprofit organization, or farm) that moves from real 
property, or moves personal property from real property, permanently, 
as a direct result of acquisition, rehabilitation, or demolition for a 
project assisted under this part. The term ``displaced person'' 
includes, but may not be limited to:
    (i) A tenant-occupant of a dwelling unit who moves from the 
building/complex, permanently, after the Owner's execution of the 
agreement covering the rehabilitation, demolition or acquisition, if 
the move occurs before the tenant is provided written notice offering 
him or her the opportunity to lease and occupy a suitable, decent, 
safe, and sanitary dwelling in the same building/complex, under 
reasonable terms and conditions, upon completion of the project. Such 
reasonable terms and conditions include a monthly rent and estimated 
average monthly utility costs that do not exceed the amount approved by 
HUD;
    (ii) A tenant-occupant of a dwelling who is required to relocate 
temporarily, but does not return to the building/complex, if either:
    (A) The tenant is not offered payment for all reasonable out-of-
pocket expenses incurred in connection with the temporary relocation, 
including the cost of moving to and from the temporarily occupied unit, 
any increased housing costs and incidental expenses; or
    (B) Other conditions of the temporary relocation are not 
reasonable; or
    (iii) A tenant-occupant of a dwelling who moves from the building/
complex, permanently, after he or she has been required to move to 
another dwelling unit in the same building/complex in order to carry 
out the project, if either:
    (A) The tenant is not offered reimbursement for all reasonable out-
of-pocket expenses incurred in connection with the move; or
    (B) Other conditions of the move are not reasonable; or
    (iv) Any person, including a person who moves before the Owner's 
execution of the agreement covering the rehabilitation, demolition, or 
acquisition, if the Owner or HUD determines that the displacement 
resulted directly from rehabilitation, demolition or acquisition for 
the assisted project.
    (2) Notwithstanding the provisions of paragraph (g)(1) of this 
section, a person does not qualify as a ``displaced person'' (and is 
not eligible for relocation assistance under the URA or this section), 
if:
    (i) The person has been evicted for serious or repeated violation 
of the terms and conditions of the lease or occupancy agreement, 
violation of applicable Federal, State or local law, or other good 
cause, and HUD determines that the eviction was not undertaken for the 
purpose of evading the obligation to provide relocation assistance;
    (ii) The person moved into the property after the execution of the 
agreement covering the rehabilitation, demolition or acquisition and, 
before signing a lease and commencing occupancy, received written 
notice of the project, its possible impact on the person (e.g., the 
person may be displaced, temporarily relocated or suffer a rent 
increase) and the fact that he or she would not qualify as a 
``displaced person'' (or for any assistance provided under this 
section) as a result of the project;
    (iii) The person is ineligible under 49 CFR 24.2(g)(2); or
    (iv) HUD determines that the person was not displaced as a direct 
result of acquisition, rehabilitation, or demolition of the project.
    (3) The Owner may ask HUD, at any time, to determine whether a 
displacement is or would be covered by this section.
    (h) Definition of initiation of negotiations. For purposes of 
determining the formula for computing the replacement housing 
assistance to be provided to a residential tenant displaced as a direct 
result of private-owner rehabilitation, demolition, or acquisition of 
the real property, the term initiation of negotiations means the 
Owner's execution of the agreement covering the rehabilitation, 
demolition, or acquisition.

(Approved by Office of Management and Budget under OMB Control 
Number 2506-0121)


PART 221--LOW COST AND MODERATE INCOME MORTGAGE INSURANCE

    5. The authority citation for part 221 continues to read as 
follows:

    Authority: 12 U.S.C. 1715b and 1715l); 42 U.S.C. 3535(d); sec. 
221.544(a)(3) is also issued under 12 U.S.C. 1707(a).

    6. A new Sec. 221.795 is added to read as follows:


Sec. 221.795  Displacement--below market interest rate mortgages.

    (a) Minimizing displacement. Consistent with the other goals and 
objectives of this part, Owners shall assure that they have taken all 
reasonable steps to minimize the displacement of persons (households, 
businesses, nonprofit organizations, and farms) as a result of a 
project assisted under this part.
    (b) Temporary relocation. The following policies cover residential 
tenants who will not be required to move permanently but who must 
relocate temporarily to permit rehabilitation or other work for the 
project. Such tenants must be provided:
    (1) Reimbursement for all reasonable out-of-pocket expenses 
incurred in connection with the temporary relocation, including the 
cost of moving to and from the temporarily occupied housing, any 
increase in monthly rent/utility costs and any incidental expenses.
    (2) Appropriate advisory services, including reasonable advance 
written notice of:
    (i) The date and approximate duration of the temporary relocation;
    (ii) The location of the suitable, decent, safe, and sanitary 
dwelling to be made available for the temporary period;
    (iii) The terms and conditions under which the tenant may lease and 
occupy a suitable, decent, safe, and sanitary dwelling in the building/
complex following completion of the rehabilitation; and
    (iv) The provisions of paragraph (b)(1) of this section.
    (c) Relocation assistance for displaced persons. A ``displaced 
person'' (defined in paragraph (g) of this section) must be provided 
relocation assistance at the levels described in, and in accordance 
with the requirements of, the Uniform Relocation Assistance and Real 
Property Acquisition Policies Act of 1970, as amended (URA) (42 U.S.C. 
4201-4655) and implementing regulations at 49 CFR part 24. A 
``displaced person'' shall be advised of his or her rights under the 
Fair Housing Act (42 U.S.C. 3601-19), and, if the representative 
comparable replacement dwelling used to establish the amount of the 
replacement housing payment to be provided to a minority person is 
located in an area of minority concentration, such person also shall be 
given, if possible, referrals to comparable and suitable, decent, safe 
and sanitary replacement dwellings not located in such areas.
    (d) Real property acquisition requirements. The acquisition of real 
property for a project is subject to the URA and the requirements 
described in 49 CFR part 24, subpart B.
    (e) Appeals. A person who disagrees with the Owner's determination 
concerning whether the person qualifies as a ``displaced person,'' or 
with the amount of relocation assistance for which the person is 
eligible, may file a written appeal of that determination with the 
Owner. A person who is dissatisfied with the Owner's determination on 
his or her appeal may submit a written request for review of that 
determination to the HUD Field Office.
    (f) Responsibility of Owner. (1) The Owner shall certify (i.e., 
provide assurance of compliance as required by 49 CFR part 24) that the 
Owner will comply with the URA, the regulations at 49 CFR part 24, and 
the requirements of this section. The Owner shall ensure such 
compliance notwithstanding any third party's contractual obligation to 
the Owner to comply with these provisions.
    (2) The cost of required relocation assistance is an eligible 
project cost in the same manner and to the same extent as other project 
costs. Such costs also may be paid with funds available from other 
sources.
    (3) The Owner shall maintain records in sufficient detail to 
demonstrate compliance with these provisions. The Owner shall maintain 
data on the race, ethnic, gender, and disability status of displaced 
persons.
    (g) Definition of displaced person. (1) For purposes of this 
section, the term displaced person means a person (household, business, 
nonprofit organization, or farm) that moves from real property, or 
moves personal property from real property, permanently, as a direct 
result of acquisition, rehabilitation, or demolition for a project 
assisted under this part. The term ``displaced person'' includes, but 
may not be limited to:
    (i) A tenant-occupant of a dwelling unit who moves from the 
building/complex, permanently, after the Owner executes the agreement 
covering the rehabilitation, demolition or acquisition, if the move 
occurs before the tenant is provided written notice offering him or her 
the opportunity to lease and occupy a suitable, decent, safe, and 
sanitary dwelling in the same building/complex, under reasonable terms 
and conditions, upon completion of the project. Such reasonable terms 
and conditions include a monthly rent and estimated average monthly 
utility costs that do not exceed the amount approved by HUD;
    (ii) A tenant-occupant of a dwelling who is required to relocate 
temporarily, but does not return to the building/complex, if either:
    (A) The tenant is not offered payment for all reasonable out-of-
pocket expenses incurred in connection with the temporary relocation, 
including the cost of moving to and from the temporarily occupied unit, 
any increased housing costs and incidental expenses; or
    (B) Other conditions of the temporary relocation are not 
reasonable; or
    (iii) A tenant-occupant of a dwelling who moves from the building/
complex, permanently, after he or she has been required to move to 
another dwelling unit in the same building/complex in order to carry 
out the project, if either:
    (A) The tenant is not offered reimbursement for all reasonable out-
of-pocket expenses incurred in connection with the move; or
    (B) Other conditions of the move are not reasonable; or
    (iv) Any person, including a person who moves before the Owner's 
execution of the agreement covering the rehabilitation, demolition, or 
acquisition, if the Owner or HUD determines that the displacement 
resulted directly from rehabilitation, demolition or acquisition for 
the assisted project.
    (2) Notwithstanding the provisions of paragraph (g)(1) of this 
section, a person does not qualify as a ``displaced person'' (and is 
not eligible for relocation assistance under the URA or this section), 
if:
    (i) The person has been evicted for serious or repeated violation 
of the terms and conditions of the lease or occupancy agreement, 
violation of applicable Federal, State or local law, or other good 
cause, and HUD determines that the eviction was not undertaken for the 
purpose of evading the obligation to provide relocation assistance;
    (ii) The person moved into the property after the execution of the 
agreement covering the rehabilitation, demolition or acquisition and, 
before signing a lease and commencing occupancy, received written 
notice of the project, its possible impact on the person (e.g., the 
person may be displaced, temporarily relocated or suffer a rent 
increase) and the fact that he or she would not qualify as a 
``displaced person'' (or for any assistance provided under this 
section) as a result of the project;
    (iii) The person is ineligible under 49 CFR 24.2(g)(2); or
    (iv) HUD determines that the person was not displaced as a direct 
result of acquisition, rehabilitation, or demolition for the project.
    (3) The Owner may ask HUD, at any time, to determine whether a 
displacement is or would be covered by this section.
    (h) Definition of initiation of negotiations. For purposes of 
determining the formula for computing the replacement housing 
assistance to be provided to a residential tenant displaced as a direct 
result of privately undertaken rehabilitation, demolition, or 
acquisition of the real property, the term initiation of negotiations 
means the Owner's execution of the agreement covering the 
rehabilitation, demolition, or acquisition.

(Approved by Office of Management and Budget under OMB Control 
Number 2506-0121)

PART 236--MORTGAGE INSURANCE AND INTEREST REDUCTION PAYMENTS FOR 
RENTAL PROJECTS

    7. The authority citation for part 236 continues to read as 
follows;

    Authority: 12 U.S.C. 1715b and 1715z-1; 42 U.S.C. 3535(d).

    8. A new subpart F consisting of Sec. 236.1001 is added, to read as 
follows:

Subpart F--Uniform Relocation Assistance


Sec. 236.1001  Displacement, relocation, and acquisition.

    (a) Minimizing displacement. Consistent with the other goals and 
objectives of this part, mortgagors shall assure that they have taken 
all reasonable steps to minimize the displacement of persons 
(households, businesses, nonprofit organizations, and farms) as a 
result of a project assisted under this part.
    (b) Temporary relocation. The following policies cover residential 
tenants who will not be required to move permanently but who must 
relocate temporarily to permit rehabilitation or other work for the 
assisted project. Such tenants must be provided:
    (1) Reimbursement for all reasonable out-of-pocket expenses 
incurred in connection with the temporary relocation, including the 
cost of moving to and from the temporary housing, any increase in 
monthly rent/utility costs, and any incidental expenses.
    (2) Appropriate advisory services, including reasonable advance 
written notice of:
    (i) The date and approximate duration of the temporary relocation;
    (ii) The location of the suitable, decent, safe, and sanitary 
dwelling to be made available for the temporary period;
    (iii) The terms and conditions under which the tenant may lease and 
occupy a suitable, decent, safe, and sanitary dwelling in the building/
complex following completion of the repairs; and
    (iv) The provisions of paragraph (b)(1) of this section.
    (c) Relocation assistance for displaced persons. A ``displaced 
person'' (defined in paragraph (g) of this section) must be provided 
relocation assistance at the levels described in, and in accordance 
with the requirements of, the Uniform Relocation Assistance and Real 
Property Acquisition Policies Act of 1970, as amended (URA) (42 U.S.C. 
4201-4655) and implementing regulations at 49 CFR part 24. A 
``displaced person'' shall be advised of his or her rights under the 
Fair Housing Act (42 U.S.C. 3601-19), and, if the representative 
comparable replacement dwelling used to establish the amount of the 
replacement housing payment to be provided to a minority person is 
located in an area of minority concentration, such person also shall be 
given, if possible, referrals to comparable and suitable, decent, safe 
and sanitary replacement dwellings not located in such areas.
    (d) Real property acquisition requirements. The acquisition of real 
property for a project is subject to the URA and the requirements of 49 
CFR part 24, subpart B.
    (e) Appeals. A person who disagrees with the mortgagor's 
determination concerning whether the person qualifies as a ``displaced 
person,'' or with the amount of relocation assistance for which the 
person is eligible, may file a written appeal of that determination 
with the mortgagor. A person who is dissatisfied with the mortgagor's 
determination on his or her appeal may submit a written request for 
review of the determination to the HUD Field Office.
    (f) Responsibility of mortgagor. (1) The mortgagor shall certify 
(i.e., provide assurance of compliance as required by 49 CFR part 24) 
that it will comply with the URA, the regulations at 49 CFR part 24, 
and the requirements of this section. The mortgagor shall ensure such 
compliance notwithstanding any third party's contractual obligation to 
the mortgagor to comply with these provisions.
    (2) The cost of required relocation assistance is an eligible 
project cost in the same manner and to the same extent as other project 
costs. Such costs may also be paid for with funds available from other 
sources.
    (3) The mortgagor shall maintain records in sufficient detail to 
demonstrate compliance with the provisions of this section. The 
mortgagor shall maintain data on the race, ethnic, gender, and 
disability status of displaced persons.
    (g) Definition of displaced person. (1) For purposes of this 
section, the term displaced person means any person (household, 
business, nonprofit organization, or farm) that moves from real 
property, or moves personal property from real property, permanently, 
as a direct result of acquisition, rehabilitation, or demolition for a 
project assisted under this part. The term ``displaced person'' 
includes, but may not be limited to:
    (i) A tenant-occupant of a dwelling unit who moves from the 
building/complex, permanently, after the mortgagor executes the 
agreement covering the rehabilitation, demolition or acquisition, if 
the move occurs before the tenant is provided written notice offering 
him or her the opportunity to lease and occupy a suitable, decent, 
safe, and sanitary dwelling in the same building/complex, under 
reasonable terms and conditions, upon completion of the project. Such 
reasonable terms and conditions include a monthly rent and estimated 
average monthly utility costs that do not exceed the amount approved by 
HUD;
    (ii) A tenant-occupant of a dwelling who is required to relocate 
temporarily, but does not return to the building/complex, if either:
    (A) The tenant is not offered payment for all reasonable out-of-
pocket expenses incurred in connection with the temporary relocation, 
including the cost of moving to and from the temporarily occupied unit, 
any increased housing costs and incidental expenses; or
    (B) Other conditions of the temporary relocation are not 
reasonable; or
    (iii) A tenant-occupant of a dwelling who moves from the building/
complex permanently after he or she has been required to move to 
another dwelling unit in the same building/complex in order to carry 
out the project, if either:
    (A) The tenant is not offered reimbursement for all reasonable out-
of-pocket expenses incurred in connection with the move; or
    (B) Other conditions of the move are not reasonable; or
    (iv) Any person, including a person who moves before the 
mortgagor's execution of the agreement covering the rehabilitation, 
demolition, or acquisition, if the mortgagor or HUD determines that the 
displacement resulted directly from rehabilitation, demolition or 
acquisition for the assisted project.
    (2) Notwithstanding the provisions of paragraph (g)(1) of this 
section, a person does not qualify as a ``displaced person'' (and is 
not eligible for relocation assistance under the URA or this section), 
if:
    (i) The person has been evicted for serious or repeated violation 
of the terms and conditions of the lease or occupancy agreement, 
violation of applicable Federal, State or local law, or other good 
cause, and HUD determines that the eviction was not undertaken for the 
purpose of evading the obligation to provide relocation assistance;
    (ii) The person moved into the property after the execution of the 
agreement covering the rehabilitation, demolition or acquisition and, 
before signing a lease or commencing occupancy, was provided written 
notice of the project, its possible impact on the person (e.g., the 
person may be displaced, temporarily relocated or suffer a rent 
increase) and the fact that the person would not qualify as a 
``displaced person'' (or for any assistance provided under this 
section) as a result of the project;
    (iii) The person is ineligible under 49 CFR 24.2(g)(2); or
    (iv) HUD determines that the person was not displaced as a direct 
result of acquisition, rehabilitation, or demolition for the project;
    (3) The mortgagor may request, at any time, HUD's determination of 
whether a displacement is or would be covered by this section.
    (h) Definition of initiation of negotiations. For purposes of 
determining the formula for computing the replacement housing 
assistance to be provided to a residential tenant displaced as a direct 
result of privately undertaken rehabilitation, demolition or 
acquisition of the real property, the term initiation of negotiations 
means the mortgagor's execution of the agreement covering the 
rehabilitation, demolition or acquisition.

(Approved by Office of Management and Budget under OMB Control 
Number 2506-0121)

PART 510--SECTION 312 REHABILITATION LOAN PROGRAM

    9. The authority citation for part 510 is revised to read as 
follows:

    Authority: 42 U.S.C. 1452b, 3535(d). Sec. 510.106 is also issued 
under 42 U.S.C. 3543.

    10. Section 510.52 is revised to read as follows:


Sec. 510.52  Displacement and relocation.

    (a) Minimizing displacement. Consistent with the other goals and 
objectives of this part, the local processing agency must assure that 
it has taken all reasonable steps to minimize the displacement of 
persons (households, businesses, nonprofit organizations, and farms) as 
a result of a project assisted under this part.
    (b) Temporary relocation. The following policies cover residential 
tenants who will not be required to move permanently but who must 
relocate temporarily for the project. Such tenants must be provided:
    (1) Reimbursement for all reasonable out-of-pocket expenses 
incurred in connection with the temporary relocation, including the 
cost of moving to and from the temporary housing, any increase in 
monthly rent/utility costs and any incidental costs.
    (2) Appropriate advisory services, including reasonable advance 
written notice of:
    (i) The date and approximate duration of the temporary relocation:
    (ii) The location of the suitable, decent, safe, and sanitary 
dwelling to be made available for the temporary period;
    (iii) The terms and conditions under which the tenant may lease and 
occupy a suitable, decent, safe, and sanitary dwelling in the building/
complex following completion of the repairs; and
    (iv) The provisions of paragraph (b)(1) of this section.
    (c) Relocation assistance for displaced persons. A ``displaced 
person'' (defined in paragraph (h) of this section) must be provided 
relocation assistance at the levels described in, and in accordance 
with the requirements of, the Uniform Relocation Assistance and Real 
Property Acquisition Policies Act of 1970, as amended (URA) (42 U.S.C. 
4601-4655), implementing regulations at 49 CFR part 24. A ``displaced 
person'' shall be advised of his or her rights under the Fair Housing 
Act (42 U.S.C. 3601-19), and, if the representative comparable 
replacement dwelling used to establish the amount of the replacement 
housing payment to be provided to a minority person is located in an 
area of minority concentration, such person also shall be given, if 
possible, referrals to comparable and suitable, decent, safe and 
sanitary replacement dwellings not located in such areas.
    (d) Real property acquisition requirements. The acquisition of real 
property for a project is subject to the URA and the requirements 
described in 49 CFR part 24, subpart B.
    (e) Application of residential antidisplacement and relocation 
assistance plan requirements. If CDBG or HOME funds are used to pay any 
part of the cost of the rehabilitation activities, as defined in 24 CFR 
570.202(b), the project is subject to the regulations at 24 CFR part 
43.
    (f) Appeals. A person who disagrees with the local processing 
agency's determination concerning whether the person qualifies as a 
``displaced person,'' or the amount of relocation assistance for which 
the person is found to be eligible, may file a written appeal of that 
determination with the local processing agency. A person who is 
dissatisfied with the local processing agency's determination on his or 
her appeal may submit a written request for review of that 
determination to the HUD Field Office.
    (g) Responsibility of local processing agency. (1) The local 
processing agency shall certify that it will comply (i.e., provide 
assurance of compliance as required by 49 CFR part 24) with the URA, 
the regulations at 49 CFR part 24, and the requirements of this 
section, and shall ensure such compliance notwithstanding the property 
owner's contractual obligation to the local processing agency to comply 
with these provisions.
    (2) The cost of required relocation assistance is an eligible 
project cost in the same manner and to the same extent as other project 
costs. However, such costs may also be paid for with funds available 
from other sources.
    (3) The local processing agency must maintain records in sufficient 
detail to demonstrate compliance with these provisions. The local 
processing agency is required to maintain data on the race, ethnic, 
gender and disability status of displaced persons.
    (h) Definition of displaced person. (1) For purposes of this 
section, the term displaced person means a person (household, business, 
nonprofit organization, or farm) that moves from real property, or 
moves personal property from real property, permanently, as a direct 
result of acquisition, rehabilitation, or demolition for a project 
assisted under this part. The term ``displaced person'' includes, but 
may not be limited to:
    (i) A person that moves permanently from the real property after 
receiving a notice from the local processing agency or property owner 
that requires such move, if the move occurs on or after the date that 
the property owner (or persons in control of the site) submits the 
application to the local processing agency for a loan that is later 
approved;
    (ii) Any person, including a person who moves before submission of 
the application for a loan to the local processing agency, if the local 
processing agency or HUD determines that the displacement resulted 
directly from acquisition, rehabilitation, or demolition for the 
project; or
    (iii) A tenant-occupant of a dwelling unit who moves from the 
building/complex, permanently, after execution of the loan agreement, 
if the move occurs before the tenant is provided written notice 
offering him or her the opportunity to lease and occupy a suitable, 
decent, safe, and sanitary dwelling in the same building/complex, under 
reasonable terms and conditions, upon completion of the project. Such 
reasonable terms and conditions include a monthly rent and estimated 
average monthly utility costs that do not exceed the greater of:
    (A) The tenant's monthly rent before execution of the agreement and 
estimated average monthly utility costs; or
    (B) 30 percent of gross household income; or
    (iv) A tenant-occupant of a dwelling who is required to relocate 
temporarily, but does not return to the building/complex, if either:
    (A) The tenant is not offered payment for all reasonable out-of-
pocket expenses incurred in connection with the temporary relocation, 
including the cost of moving to and from the temporarily occupied unit, 
any increased housing costs and incidental expenses; or
    (B) Other conditions of the temporary relocation are not 
reasonable; or
    (v) A tenant-occupant of a dwelling who moves from the building/
complex, permanently, after he or she has been required to move to 
another dwelling unit in the same building/complex in order to carry 
out the project, if either:
    (A) The tenant is not offered reimbursement for all reasonable out-
of-pocket expenses incurred in connection with the move; or
    (B) Other conditions of the move are not reasonable; or
    (2) Notwithstanding the provisions of paragraph (g) of this 
section, a person does not qualify as a ``displaced person'' (and is 
not eligible for relocation assistance under the URA or this section), 
if:
    (i) The person has been evicted for serious or repeated violation 
of the terms and conditions of the lease or occupancy agreement, 
violation of applicable Federal, State or local law, or other good 
cause, and the local processing agency determines that the eviction was 
not undertaken for the purpose of evading the obligation to provide 
relocation assistance;
    (ii) The person moved into the property after the submission of the 
application for the loan and before signing a lease and commencing 
occupancy, the person was provided written notice of the project, its 
possible impact on the person (e.g., the person may be displaced, 
temporarily relocated, or suffer a rent increase) and the fact that the 
person would not qualify as a ``displaced person'' (or for any 
assistance provided under this section) as a result of the project;
    (iii) The person is ineligible under 49 CFR 24.2(g)(2); or
    (iv) HUD determines that the person was not displaced as a direct 
result of acquisition, rehabilitation, or demolition for the project.
    (3) The property owner or local processing agency may request, at 
any time, a HUD determination of whether a displacement is or would be 
covered by this section.
    (i) Definition of initiation of negotiations. For purposes of 
determining the formula for computing a replacement housing payment to 
be provided to a displaced residential tenant, the term initiation of 
negotiations means the execution of the loan agreement between the 
property owner and HUD.

(Approved by Office of Management and Budget under OMB Control 
Number 2506-0121)

PART 850--HOUSING DEVELOPMENT GRANTS

    11. The authority citation for part 850 is revised to read as 
follows:

    Authority: 42 U.S.C. 1437o, 3535(d).

    12. A new Sec. 850.34 is added to read as follows:


Sec. 850.34  Tenant assistance, displacement, relocation, and 
acquisition.

    (a) General policies. The grantee shall:
    (1) Ensure that the rehabilitation will not cause the displacement 
of any very low-income household by a household that is not a very low-
income household.
    (2) Consistent with the other goals and objectives of this part, 
minimize the displacement of persons as a result of a project assisted 
under this part.
    (3) Administer all phases of the Housing Development Grant Program, 
including the selection of projects and the provision of notices, 
counseling, referrals, other advisory services and relocation payments, 
in a manner that does not result in discrimination because of race, 
color, religion, sex, age, disability, familial status or national 
origin.
    (4) Adopt and make public a written tenant assistance policy (TAP) 
that describes the assistance that will be provided to tenants who 
reside in the project and which includes a statement of 
nondiscrimination policy consistent with paragraph (a)(3) of this 
section. The TAP shall comply with the provisions of this section. Each 
tenant in the project shall be provided a copy of the TAP and advised 
of the impact of the project on him or her. For privately owned 
projects, such notice shall be given immediately after submission of 
the application by the Owner of the property, or earlier. For publicly 
owned projects, such notice shall be given immediately after the firm 
project commitment (defined in Sec. 850.3), or earlier.
    (b) Relocation assistance for displaced persons. A ``displaced 
person'' (defined in paragraph (f) of this section) must be provided 
relocation assistance at the levels described in, and in accordance 
with the requirements of, the Uniform Relocation Assistance and Real 
Property Acquisition Policies Act of 1970, as amended (URA) (42 U.S.C. 
4601-4655) and implementing regulations at 49 CFR part 24. A 
``displaced person'' shall be advised of his/her rights under the Fair 
Housing Act (42 U.S.C. 360119), and, if the representative comparable 
replacement dwelling used to establish the amount of the replacement 
housing payment to be provided to a minority person is located in an 
area of minority concentration, such person also shall be given, if 
possible, referrals to comparable and suitable, decent, safe, and 
sanitary replacement dwellings not located in such areas.
    (c) Real property acquisition requirements. The acquisition of real 
property for a project is subject to the URA and the requirements 
described in 49 CFR part 24, subpart B.
    (d) Appeals. A person who disagrees with the grantee's 
determination concerning whether the person qualifies as a ``displaced 
person,'' or the amount of relocation assistance for which the person 
is eligible, may file a written appeal of that determination with the 
grantee. A person who is dissatisfied with the grantee's determination 
on his or her appeal may submit a written request for review of that 
determination to the HUD Field Office.
    (e) Responsibility of grantee. (1) The grantee shall certify that 
it will comply (i.e., provide assurance of compliance, as required by 
49 CFR part 24) with the URA, the regulations at 49 CFR part 24, and 
the requirements of this section. The grantee shall ensure such 
compliance notwithstanding any third party's (e.g., the property 
owner's) contractual obligation to the grantee to comply with these 
provisions.
    (2) The cost of required relocation assistance is an eligible 
project cost in the same manner and to the same extent as other project 
costs. However, such assistance also may be paid for with funds 
available from other sources.
    (3) The grantee must maintain records in sufficient detail to 
demonstrate compliance with the provisions of this section. The grantee 
shall maintain data on the race, ethnic, gender, and disability status 
of displaced persons.
    (f) Definition of displaced person. (1) For purposes of this 
section, the term displaced person means a person (household, business, 
nonprofit organization, or farm) that moves from real property, or 
moves personal property from real property, permanently, as a direct 
result of acquisition, rehabilitation, or demolition for a project 
assisted under this part. The term ``displaced person'' includes, but 
may not be limited to:
    (i) A person that moves permanently from the real property after 
receiving a notice requiring such move, if the move occurs on or after:
    (A) If the notice is provided by the property owner, the date that 
the property owner (or person in control of the site) submits a request 
for assistance to the grantee that is later approved and funded;
    (B) If the notice is provided by the grantee, the date of the firm 
project commitment to a specific local project.
    (ii) Any person, including a person who moves before the date 
described in paragraph (f)(1)(i) of this section that HUD or the 
grantee determines was displaced as a direct result of acquisition, 
rehabilitation, or demolition for the project.
    (iii) A tenant-occupant of a dwelling unit who moves from the 
building/complex, permanently, after the firm project commitment, if 
the move occurs before the tenant is provided written notice offering 
him or her the opportunity to lease and occupy a suitable, decent, 
safe, and sanitary dwelling in the same building/complex, under 
reasonable terms and conditions, upon completion of the project. Such 
reasonable terms and conditions include a monthly rent and estimated 
average monthly utility costs that do not exceed the greater of:
    (A) The tenant's monthly rent before execution of the agreement and 
estimated average monthly utility costs; or
    (B) 30 percent of gross household income; or
    (iv) A tenant-occupant of a dwelling, who is required to relocate 
temporarily, but does not return to the building/complex, if either:
    (A) The tenant is not offered payment for all reasonable out-of-
pocket expenses incurred in connection with the temporary relocation, 
including the cost of moving to and from the temporarily occupied unit, 
any increased housing costs and incidental expenses; or
    (B) Other conditions of the temporary relocation are not 
reasonable; or
    (v) A tenant-occupant of a dwelling who moves from the building/
complex permanently after he or she has been required to move to 
another dwelling unit in the building/complex in order to carry out the 
project, if either:
    (A) The tenant is not offered reimbursement for all reasonable out-
of-pocket expenses incurred in connection with the move; or
    (B) Other conditions of the move are not reasonable; or
    (C) The tenant is required to move to another dwelling unit in the 
same building/complex but is not offered reimbursement for all 
reasonable out-of-pocket expenses incurred in connection with the move, 
or other conditions of the move are not reasonable; or
    (2) Notwithstanding the provisions of paragraph (f)(1) of this 
section, a person does not qualify as a ``displaced person'' (and is 
not eligible for relocation assistance under the URA or this section), 
if:
    (i) The person has been evicted for serious or repeated violation 
of the terms and conditions of the lease or occupancy agreement, 
violation of applicable Federal, State or local law, or other good 
cause, and the grantee determines that the eviction was not undertaken 
for the purpose of evading the obligation to provide relocation 
assistance;
    (ii) The person moved into the property after the Owner's 
submission of the request for assistance and, before signing a lease or 
commencing occupancy, was provided written notice of the project, its 
possible impact on the person (e.g., the person may be displaced, 
temporarily relocated or suffer a rent increase) and the fact that the 
person will not qualify as a ``displaced person'' (or for any 
assistance provided under this section) as a result of the project;
    (iii) The person is ineligible under 49 CFR 24.2(g)(2); or
    (iv) The grantee determines that the person was not displaced as a 
direct result of rehabilitation, acquisition, or demolition for the 
project, and the HUD Field Office concurs in that determination.
    (3) The grantee may ask HUD, at any time, to determine whether a 
specific displacement is or would be covered by this section.
    (g) Definition of initiation of negotiations. For purposes of 
determining the formula for computing a replacement housing payment and 
issuing related notices, the term initiation of negotiations means the 
firm project commitment to a specific local project as defined in 
Sec. 850.3.

(Approved by Office of Management and Budget under OMB Control 
Number 2506-0121)


Sec. 850.35  [Amended]

    13. In Sec. 850.35, paragraph (d) is removed and reserved.

PART 880--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM FOR NEW 
CONSTRUCTION

    14. The authority citation for part 880 continues to read as 
follows:

    Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d), and 13611-
13619.

    15. Section 880.209 is revised to read as follows:


Sec. 880.209  Displacement, relocation, and real property acquisition.

    (a) Minimizing displacement. Consistent with the other goals and 
objectives of this part, Owners shall assure that they have taken all 
reasonable steps to minimize the displacement of persons (households, 
businesses, nonprofit organizations, and farms) as a result of a 
project assisted under this part.
    (b) Temporary relocation. The following policies cover residential 
tenants who will not be required to move permanently but who must 
relocate temporarily for the project. Such tenants must be provided:
    (1) Reimbursement for all reasonable out-of-pocket expenses 
incurred in connection with the temporary relocation, including the 
cost of moving to and from the temporarily occupied housing, any 
increase in monthly rent/utility costs and any incidental expenses.
    (2) Appropriate advisory services, including reasonable advance 
written notice of:
    (i) The date and approximate duration of the temporary relocation;
    (ii) The location of the suitable, decent, safe, and sanitary 
dwelling to be made available for the temporary period;
    (iii) The terms and conditions under which the tenant may lease and 
occupy a suitable, decent, safe, and sanitary dwelling in the building/
complex following completion of the rehabilitation, and
    (iv) The provisions of paragraph (b)(1) of this section.
    (c) Relocation assistance for displaced persons. A ``displaced 
person'' (defined in paragraph (g) of this section) must be provided 
relocation assistance at the levels described in, and in accordance 
with the requirements of, the Uniform Relocation Assistance and Real 
Property Acquisition Policies Act of 1970, as amended (URA) (42 U.S.C. 
4201-4655) and implementing regulations at 49 CFR part 24. A 
``displaced person'' shall be advised of his/her rights under the Fair 
Housing Act (42 U.S.C. 360119), and, if the representative comparable 
replacement dwelling used to establish the amount of the replacement 
housing payment to be provided to a minority is located in an area of 
minority concentration, such person also shall be given, if possible, 
referrals to comparable and suitable, decent, safe, and sanitary 
replacement dwellings not located in such areas.
    (d) Real property acquisition requirements. The acquisition of real 
property for a project is subject to the URA and the requirements 
described in 49 CFR part 24, subpart B.
    (e) Appeals. A person who disagrees with the PHA's or private 
owner's determination concerning whether the person qualifies as a 
``displaced person,'' or the amount of relocation assistance for which 
the person is found to be eligible, may file a written appeal of that 
determination with the PHA. A person who is dissatisfied with the PHA's 
or private-owner's determination on his or her appeal may submit a 
written request for review of that determination to the HUD Field 
Office.
    (f) Responsibility of PHA/Owner. (1) The private-owner, (in the 
case of a private-owner/HUD project or a private-owner/PHA project) or 
the PHA (in the case of a PHA-owner/HUD project) shall certify (i.e., 
provide assurance of compliance as required by 49 CFR part 24) that it 
will comply with the URA, the regulations at 49 CFR part 24, and the 
requirements of this section. The private-Owner or PHA, as appropriate, 
shall ensure such compliance notwithstanding any third party's 
contractual obligation to comply with these provisions.
    (2) The cost of required relocation assistance is an eligible 
project cost in the same manner and to the same extent as other project 
costs. The cost of relocation assistance may also be paid for with 
funds available from other sources.
    (3) The Owner shall maintain records in sufficient detail to 
demonstrate compliance with these provisions. The Owner shall maintain 
data on the race, ethnic, gender, and disability status of displaced 
persons.
    (g) Definition of displaced person. (1) For purposes of this 
section, the term displaced person means a person (household, business, 
nonprofit organization, or farm) that moves from real property, or 
moves personal property from real property, permanently, as a direct 
result of acquisition, rehabilitation, or demolition for a project 
assisted under this part. The term ``displaced person'' includes, but 
may not be limited to:
    (i) A tenant-occupant of a dwelling unit who moves from the 
building/complex, permanently, after the Owner executes the agreement 
covering the rehabilitation, demolition or acquisition, if the move 
occurs before the tenant is provided written notice offering him or her 
the opportunity to lease and occupy a suitable, decent, safe, and 
sanitary dwelling in the same building/complex, under reasonable terms 
and conditions, upon completion of the project. Such reasonable terms 
and conditions include a monthly rent and estimated average monthly 
utility costs that do not exceed the greater of:
    (A) the tenant's monthly rent before execution of the agreement and 
estimated average monthly utility costs; or
    (B) 30 percent of gross household income; or
    (ii) A tenant-occupant of a dwelling who is required to relocate 
temporarily, but does not return to the building/complex, if either:
    (A) The tenant is not offered payment for all reasonable out-of-
pocket expenses incurred in connection with the temporary relocation, 
including the cost of moving to and from the temporarily occupied unit, 
any increased housing costs and incidental expenses; or
    (B) Other conditions of the temporary relocation are not 
reasonable; or
    (iii) A tenant-occupant of a dwelling who moves from the building/
complex permanently after he or she has been required to move to 
another dwelling unit in the same building/complex in order to carry 
out the project, if either:
    (A) The tenant is not offered reimbursement for all reasonable out-
of-pocket expenses incurred in connection with the move; or
    (B) Other conditions of the move are not reasonable.
    (2) Notwithstanding the provisions of paragraph (g)(1) of this 
section, a person does not qualify as a ``displaced person'' (and is 
not eligible for relocation assistance under the URA or this section), 
if:
    (i) The person has been evicted for serious or repeated violation 
of the terms and conditions of the lease or occupancy agreement, 
violation of applicable Federal, State or local law, or other good 
cause, and HUD determines that the eviction was not undertaken for the 
purpose of evading the obligation to provide relocation assistance;
    (ii) The person moved into the property after execution of the 
agreement covering the rehabilitation, demolition, or acquisition and, 
before signing a lease and commencing occupancy, was provided written 
notice of the project, its potential impact on the person (e.g., the 
person may be displaced, temporarily relocated or suffer a rent 
increase) and the fact that the person would not qualify as a 
``displaced person'' (or for any assistance provided under this 
section) as a result of the project;
    (iii) The person is ineligible under 49 CFR 24.2(g)(2); or
    (iv) HUD determines that the person was not displaced as a direct 
result of acquisition, rehabilitation, or demolition for the project.
    (3) The PHA or private owner may request, at any time, a HUD 
determination of whether a displacement is or would be covered by this 
section.
    (h) Definition of initiation of negotiations. For purposes of 
determining the formula for computing a replacement housing payment to 
be provided to a person displaced as a direct result of rehabilitation, 
demolition, or non-State agency acquisition of the real property, the 
term initiation of negotiations means the execution of the agreement 
covering the rehabilitation, demolition or acquisition.

(Approved by Office of Management and Budget under OMB Control 
Number 2506-0121)

PART 881--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM FOR 
SUBSTANTIAL REHABILITATION

    16. The authority citation for part 881 continues to read as 
follows:

    Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d), 12701, and 
13611-13619.

    17. Section 881.209 is revised to read as follows:


Sec. 881.209  Displacement, relocation, and real property acquisition.

    (a) Minimizing displacement. Consistent with the other goals and 
objectives of this part, Owners shall assure that they have taken all 
reasonable steps to minimize the displacement of persons (households, 
businesses, nonprofit organizations, and farms) as a result of a 
project assisted under this part.
    (b) Temporary relocation. The following policies cover residential 
tenants who will not be required to move permanently but who must 
relocate temporarily for the project. Such tenants must be provided:
    (1) Reimbursement for all reasonable out-of-pocket expenses 
incurred in connection with the temporary relocation, including the 
cost of moving to and from the temporary housing, any increase in 
monthly rent/utility costs and incidental expenses.
    (2) Appropriate advisory services, including reasonable advance 
written notice of:
    (i) The date and approximate duration of the temporary relocation;
    (ii) The location of the suitable, decent, safe, and sanitary 
temporary housing made available;
    (iii) The terms and conditions under which the tenant may lease and 
occupy a suitable, decent, safe, and sanitary dwelling in the building/
complex upon completion of the project; and
    (iv) The provisions of paragraph (b)(i) of this section.
    (c) Relocation assistance for displaced persons. A ``displaced 
person'' (defined in paragraph (g) of this section) must be provided 
relocation assistance at the levels described in, and in accordance 
with the requirements of, the Uniform Relocation Assistance and Real 
Property Acquisition Policies Act of 1970 (URA), as amended (42 U.S.C. 
4201-4655) and implementing regulations at 49 CFR part 24. A 
``displaced person'' shall be advised of his/her rights under the Fair 
Housing Act (42 U.S.C. 360119), and, if the representative comparable 
replacement dwelling used to establish the amount of the replacement 
housing payment to be provided to a minority is located in an area of 
minority concentration, such person also shall be given, if possible, 
referrals to comparable and suitable, decent, safe, and sanitary 
replacement dwellings not located in such areas.
    (d) Real property acquisition requirements. The acquisition of real 
property for a project is subject to the URA and the requirements 
described in 49 CFR part 24, subpart B.
    (e) Appeals. A person who disagrees with the PHA's determination 
concerning whether the person qualifies as a ``displaced person,'' or 
the amount of relocation assistance for which the person is found to be 
eligible, may file a written appeal of that determination with the PHA. 
A person who is dissatisfied with the PHA's determination on his or her 
appeal may submit a written request for review of that determination to 
the HUD Field Office.
    (f) Responsibility of Owner. (1) The Owner shall certify (i.e., 
provide assurance of compliance as required by 49 CFR part 24) that he 
or she will comply with the URA, the regulations at 49 CFR part 24, and 
the requirements of this section, and shall ensure such compliance 
notwithstanding any third party's contractual obligation to the Owner 
to comply with these provisions.
    (2) The cost of required relocation assistance is an eligible 
project cost in the same manner and to the same extent as other project 
costs. The cost of relocation assistance also may be paid with funds 
available from other sources. The Owner shall maintain records in 
sufficient detail to demonstrate compliance with these provisions.
    (3) The Owner shall maintain data on the race, ethnic, gender, and 
disability status of displaced persons.
    (g) Definition of displaced person. (1) For purposes of this 
section, the term displaced person means a person (household, business, 
nonprofit organization, or farm) that moves from real property, or 
moves personal property from real property, permanently, as a direct 
result of acquisition, rehabilitation, or demolition for a project 
assisted under this part. The term ``displaced person'' includes, but 
may not be limited to:
    (i) A tenant-occupant of a dwelling unit who moves from the 
building/complex, permanently, after the Owner executes the agreement 
covering the rehabilitation, demolition or acquisition, if the move 
occurs before the tenant is provided written notice offering him or her 
the opportunity to lease and occupy a suitable, decent, safe, and 
sanitary dwelling in the same building/complex, under reasonable terms 
and conditions, upon completion of the project. Such reasonable terms 
and conditions include a monthly rent and estimated average monthly 
utility costs that do not exceed the greater of:
    (A) the tenant's monthly rent before execution of the agreement and 
estimated average monthly utility costs; or
    (B) 30 percent of gross household income; or
    (ii) A tenant-occupant of a dwelling who is required to relocate 
temporarily, but does not return to the building/complex, if either:
    (A) The tenant is not offered payment for all reasonable out-of-
pocket expenses incurred in connection with the temporary relocation, 
including the cost of moving to and from the temporarily occupied unit, 
any increased housing costs and incidental expenses; or
    (B) Other conditions of the temporary relocation are not 
reasonable; or
    (iii) A tenant-occupant of a dwelling who moves from the building/
complex permanently after he or she has been required to move to 
another dwelling unit in the same building/complex in order to carry 
out the project, if either:
    (A) The tenant is not offered reimbursement for all reasonable out-
of-pocket expenses incurred in connection with the move; or
    (B) Other conditions of the move are not reasonable; or
    (2) Notwithstanding the provisions of paragraph (g)(1) of this 
section, a person does not qualify as a ``displaced person'' (and is 
not eligible for relocation assistance under the URA or this section), 
if:
    (i) The person has been evicted for serious or repeated violation 
of the terms and conditions of the lease or occupancy agreement, 
violations of applicable Federal, State or local law, or other good 
cause, and HUD determines that the eviction was not undertaken for the 
purpose of evading the obligation to provide relocation assistance;
    (ii) The person moved into the property after the Owner's execution 
of the agreement covering the rehabilitation, demolition, or 
acquisition, and, before signing a lease and commencing occupancy, was 
provided written notice of the project, its possible impact on the 
person (e.g., the person may be displaced, temporarily relocated or 
suffer a rent increase) and the fact that the person would not qualify 
as a ``displaced person'' (or for any assistance provided under this 
section) as a result of the project;
    (iii) The person is ineligible under 49 CFR 24.2(g)(2); or
    (iv) HUD determines that the person was not displaced as a direct 
result of acquisition, rehabilitation, or demolition for the project.
    (3) The Owner may request, at any time, a HUD determination of 
whether a displacement is or would be covered by this section.
    (h) Definition of initiation of negotiations. For purposes of 
determining the formula for computing a replacement housing payment to 
be provided to a residential tenant displaced as a direct result of 
privately undertaken rehabilitation, demolition, or acquisition of the 
real property, the term initiation of negotiations means the Owner's 
execution of the agreement covering the rehabilitation, demolition, or 
acquisition.

(Approved by Office of Management and Budget under OMB Control 
Number 2506-0121)

PART 882--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM--EXISTING 
HOUSING

    18. The authority citation for part 882 continues to read as 
follows:

    Authority: 42 U.S.C. 1437a, 1437c, 1437f, and 3535(d). In 
addition, Subpart H is also issued under 42 U.S.C. 11361 and 11401.

    19. Section 882.406 is revised to read as follows:


Sec. 882.406  Displacement, relocation, and acquisition.

    (a) Minimizing displacement. (1) Consistent with the other goals 
and objectives of this part, Owners shall assure that they have taken 
all reasonable steps to minimize the displacement of persons 
(households, businesses, nonprofit organizations, and farms) as a 
result of a project assisted under this part. To the extent feasible, 
residential tenants shall be provided a reasonable opportunity to lease 
and occupy a suitable, decent, safe, sanitary, and affordable dwelling 
unit in the project upon its completion.
    (2) Whenever a building/complex is rehabilitated and some, but not 
all, of the rehabilitated units will be assisted upon completion of the 
rehabilitation, the relocation requirements described in this section 
cover the occupants of each rehabilitated unit, whether or not Section 
8 assistance will be provided for the unit.
    (b) Temporary relocation. The following policies cover residential 
tenants who will not be required to move permanently but who must 
relocate temporarily for the project. Such tenants must be provided:
    (1) Reimbursement for all reasonable out-of-pocket expenses 
incurred in connection with the temporary relocation, including the 
cost of moving to and from the temporary housing, and any increase in 
monthly rent/utility costs.
    (2) Appropriate advisory services, including reasonable advance 
written notice of:
    (i) The date and approximate duration of the temporary relocation;
    (ii) The location of the suitable, decent, safe and sanitary 
dwelling to be made available for the temporary period;
    (iii) The terms and conditions under which the tenant may lease and 
occupy a suitable, decent, safe, and sanitary dwelling in the project 
upon its completion; and
    (iv) The assistance required under paragraph (b)(1) of this 
section.
    (c) Relocation assistance for displaced persons. A ``displaced 
person'' (defined in paragraph (g) of this section) must be provided 
relocation assistance at the levels described in, and in accordance 
with the requirements of, the Uniform Relocation Assistance and Real 
Property Acquisition Policies Act of 1970, as amended (URA) (42 U.S.C. 
4201-4655) and implementing regulations at 49 CFR part 24. A 
``displaced person'' shall be advised of his/her rights under the Fair 
Housing Act (42 U.S.C. 360119), and, if the representative comparable 
replacement dwelling used to establish the amount of the replacement 
housing payment to be provided to a minority is located in an area of 
minority concentration, such person also shall be given, if possible, 
referrals to comparable and suitable, decent, safe, and sanitary 
replacement dwellings not located in such areas.
    (d) Real property acquisition requirements. The acquisition of real 
property for a project is subject to the URA and the requirements of 49 
CFR part 24, subpart B.
    (e) Appeals. A person who disagrees with the PHA's determination 
concerning whether the person qualifies as a ``displaced person,'' or 
the amount of relocation assistance for which the person is found to be 
eligible, may file a written appeal of that determination with the PHA. 
A person who is dissatisfied with the PHA's determination on his or her 
appeal may submit a written request for review of that determination to 
the HUD Field Office.
    (f) Responsibility of PHA. (1) The PHA shall certify (i.e., provide 
assurance of compliance as required by 49 CFR part 24) that it will 
comply with the URA, the regulations at 49 CFR part 24, and the 
requirements of this section, and shall ensure such compliance 
notwithstanding any third party's contractual obligation to the PHA to 
comply with these provisions.
    (2) The cost of required relocation assistance is an eligible 
project cost in the same manner and to the same extent as other project 
costs. Such costs also may be paid for with local public funds or funds 
available from other sources. The cost of PHA advisory services for 
temporary relocation of tenants may be paid from preliminary 
administrative funds.
    (3) The PHA shall maintain records in sufficient detail to 
demonstrate compliance with the provisions of this section. The PHA 
shall maintain data on the race, ethnic, gender, and disability status 
of displaced persons.
    (g) Definition of displaced person. (1) For purposes of this 
section, the term displaced person means a person (household, business, 
nonprofit organization, or farm) that moves from real property, or 
moves personal property from real property, permanently, as a direct 
result of acquisition, rehabilitation, or demolition for a project 
assisted under this part. The term ``displaced person'' includes, but 
may not be limited to:
    (i) A person who moves permanently from the real property after 
receiving a notice from the owner requiring such move, if the move 
occurs on or after the date of the submission to the PHA of the Owner 
proposal that is later approved;
    (ii) A person, including a person who moves permanently before the 
submission of the Owner proposal to the PHA, if the PHA or HUD 
determines that the displacement resulted directly from acquisition, 
rehabilitation, or demolition for the assisted project; or
    (iii) A tenant-occupant of a dwelling unit who moves from the 
building/complex, permanently, after the execution of the Agreement 
between the Owner and the PHA, if the move occurs before the tenant is 
provided written notice offering him or her the opportunity to lease 
and occupy a suitable, decent, safe, and sanitary dwelling in the same 
building/complex, under reasonable terms and conditions, upon 
completion of the project. Such reasonable terms and conditions include 
a monthly rent and estimated average monthly utility costs that do not 
exceed the greater of:
    (A) The tenant's monthly rent before execution of the agreement and 
estimated average monthly utility costs; or
    (B) 30 percent of gross household income; or
    (iv) A tenant-occupant of a dwelling who is required to relocate 
temporarily, but does not return to the building/complex, if either:
    (A) The tenant is not offered payment for all reasonable out-of-
pocket expenses incurred in connection with the temporary relocation, 
including the cost of moving to and from the temporarily occupied unit, 
any increased housing costs and incidental expenses; or
    (B) Other conditions of the temporary relocation are not 
reasonable; or
    (v) A tenant-occupant of a dwelling who moves from the building/
complex permanently after he or she has been required to move to 
another dwelling unit in the same building/complex in order to carry 
out the project, if either:
    (A) The tenant is not offered reimbursement for all reasonable out-
of-pocket expenses incurred in connection with the move; or
    (B) Other conditions of the move are not reasonable; or
    (2) Notwithstanding the provisions of paragraph (g)(1) of this 
section, a person does not qualify as a ``displaced person'' (and is 
not eligible for relocation assistance under the URA or this section), 
if:
    (i) The person has been evicted for serious or repeated violation 
of the terms and conditions of the lease or occupancy agreement, 
violation of applicable Federal, State or local law, or other good 
cause, and the PHA determines that the eviction was not undertaken for 
the purpose of evading the obligation to provide relocation assistance;
    (ii) The person moved into the property after the submission of the 
preliminary proposal (or application, if there is no preliminary 
proposal) and, before signing a lease and commencing occupancy, was 
provided written notice of the project, its possible impact on the 
person (e.g., the person may be displaced, temporarily relocated, or 
suffer a rent increase) and the fact that the person would not qualify 
as a ``displaced person'' (or for any assistance provided under this 
section) as a result of the project;
    (iii) The person is ineligible under 49 CFR 24.2(g)(2); or
    (iv) HUD determines that the person was not displaced as a direct 
result of acquisition, rehabilitation, or demolition for the project.
    (3) The PHA may request, at any time, HUD's determination of 
whether a displacement is or would be covered by this section.
    (h) Definition of initiation of negotiations. For purposes of 
determining the formula for computing a replacement housing payment to 
be provided to a residential tenant displaced as a direct result of 
privately undertaken rehabilitation or demolition of the real property, 
the term initiation of negotiations means the execution of the 
Agreement between the Owner and the PHA.

(Approved by Office of Management and Budget under OMB Control 
Number 2506-0121)

    20. Section 882.712 is revised to read as follows:


Sec. 882.712  Displacement, relocation, and acquisition.

    (a) Minimizing displacement. (1) Consistent with the other goals 
and objectives of this subpart, an owner must assure that it has taken 
all reasonable steps to minimize the displacement of persons 
(households, businesses, nonprofit organizations, and farms) as a 
result of a rehabilitation project assisted under this subpart.
    (2) Whenever a building/complex is rehabilitated and some, but not 
all, of the rehabilitated units will be assisted upon completion of the 
rehabilitation, the relocation requirements described in this section 
cover the occupants of each rehabilitated unit, whether or not section 
8 assistance will be provided for the unit.
    (b) Temporary relocation. The following policies cover residential 
tenants who will not be required to move permanently but who must 
relocate temporarily for the project. Such tenants must be provided:
    (1) Reimbursement for all reasonable out-of-pocket expenses 
incurred in connection with the temporary relocation, including the 
cost of moving to and from the temporary housing and any increase in 
monthly rent/utility costs;
    (2) Appropriate advisory services, including reasonable advance 
written notice of:
    (i) The date and approximate duration of the temporary relocation;
    (ii) The location of the suitable, decent, safe and sanitary 
dwelling to be made available for the temporary period;
    (iii) The terms under which the tenant may lease and occupy a 
suitable, decent, safe, and sanitary dwelling in the project upon 
completion of the project; and
    (iv) The assistance required under paragraph (b)(1) of this 
section.
    (c) Relocation assistance for displaced persons. A ``displaced 
person'' (defined in paragraph (g) of this section) must be provided 
relocation assistance at the levels described in, and in accordance 
with the requirements of, the Uniform Relocation Assistance and Real 
Property Acquisition Policies Act of 1970, as amended (URA) (42 U.S.C. 
4201-4655) and implementing regulations at 49 CFR part 24. A 
``displaced person'' shall be advised of his/her rights under the Fair 
Housing Act (42 U.S.C. 3600-3620), and, if the representative 
comparable replacement dwelling used to establish the amount of the 
replacement housing payment to be provided to a minority is located in 
an area of minority concentration, such person must also be given, if 
possible, referrals to comparable and suitable, decent, safe, and 
sanitary replacement dwellings not located in such areas.
    (d) Real property acquisition requirements. The acquisition of real 
property for a project is subject to the URA and the requirements of 49 
CFR part 24, subpart B.
    (e) Appeals. A person who disagrees with the PHA's determination 
concerning whether the person qualifies as a ``displaced person,'' or 
the amount of relocation assistance for which the person is eligible, 
may file a written appeal of that determination with the PHA. A person 
who is dissatisfied with the PHA's determination on his or her appeal 
may submit a written request for review of that determination to the 
HUD Field Office responsible for administering the URA requirements in 
the jurisdiction.
    (f) Responsibility of PHA. (1) The PHA must provide assurance of 
compliance as required by 49 CFR part 24 that it will comply with the 
URA, the regulations at 49 CFR part 24, and the requirements of this 
section, and must ensure such compliance notwithstanding any third 
party's contractual obligation to the PHA to comply with these 
provisions.
    (2) The cost of required relocation assistance may be paid for by 
the owner, or with local public funds, or with funds available from 
other sources. The cost of PHA advisory services for temporary 
relocation of tenants may be paid from preliminary fees or ongoing 
administrative fees.
    (3) The PHA must maintain records in sufficient detail to 
demonstrate compliance with the provisions of this section. The PHA 
must maintain data on the race, ethnic, gender, and disability status 
of displaced persons.
    (g) Definition of displaced person. (1) For purposes of this 
section, the term displaced person means a person (household, business, 
nonprofit organization, or farm) that moves from real property, or 
moves personal property from real property, permanently, as a direct 
result of acquisition, rehabilitation, or demolition for a project 
assisted under this part. The term ``displaced person'' includes, but 
may not be limited to:
    (i) A person who moves permanently from the real property after 
receiving a notice from the Owner requiring such move, if the move 
occurs on or after the date of the submission of the Owner application 
to the PHA;
    (ii) A person, including a person who moves permanently before the 
submission of the Owner application to the PHA, if the PHA or HUD 
determines that the displacement resulted directly from acquisition, 
rehabilitation, or demolition for the assisted project; or
    (iii) A tenant-occupant of a dwelling unit who moves from the 
building/complex, permanently, after execution of the Agreement between 
the Owner and the PHA, if the move occurs before the tenant is provided 
written notice offering him or her the opportunity to lease and occupy 
a suitable, decent, safe, and sanitary dwelling in the same building/
complex under reasonable terms and conditions, upon completion of the 
project. Such reasonable terms and conditions include a monthly rent 
and estimated average monthly utility costs that do not exceed the 
greater of:
    (A) The tenant's monthly rent before execution of the agreement and 
estimated average monthly utility costs; or
    (B) The total tenant payment, as determined under 24 CFR 813.107, 
if the tenant is low-income, or 30 percent of gross household income, 
if the tenant is not low-income; or
    (iv) A tenant-occupant of a dwelling who is required to relocate 
temporarily, but does not return to the building/complex, if either:
    (A) The tenant is not offered payment for all reasonable out-of-
pocket expenses incurred in connection with the temporary relocation, 
including the cost of moving to and from the temporarily occupied unit 
and any increased housing costs; or
    (B) Other conditions of the temporary relocation are not 
reasonable; or
    (v) A tenant-occupant of a dwelling who moves from the building/
complex permanently after he or she has been required to move to 
another dwelling unit in the same building/complex in order to carry 
out the rehabilitation or construction, if either:
    (A) The tenant is not offered reimbursement for all reasonable out-
of-pocket expenses incurred in connection with the move; or
    (B) Other conditions of the move are not reasonable; or
    (2) Notwithstanding the provisions of paragraph (g)(1) of this 
section, a person does not qualify as a ``displaced person'' (and is 
not eligible for relocation assistance under the URA or this section), 
if:
    (i) The person has been evicted for serious or repeated violation 
of the terms and conditions of the lease or occupancy agreement, 
violation of applicable Federal, State or local law, or other good 
cause, and the PHA determines that the eviction was not undertaken for 
the purpose of evading the obligation to provide relocation assistance;
    (ii) The person moved into the property after the submission of the 
Owner application to the PHA and, before signing a lease and commencing 
occupancy, was provided written notice of the Owner application, its 
possible impact on the person (e.g., the person may be displaced, 
temporarily relocated, or suffer a rent increase) and the fact that the 
person would not qualify as a ``displaced person'' (or for any 
assistance provided under this section) if the Owner application is 
approved;
    (iii) The person is ineligible under 49 CFR 24.2(g)(2); or
    (iv) HUD determines that the person was not displaced as a direct 
result of acquisition, rehabilitation, or demolition for the project.
    (3) The PHA may request, at any time, HUD's determination of 
whether a displacement is or would be covered by this section.
    (h) Definition of initiation of negotiations. For purposes of 
determining the formula for computing a replacement housing payment to 
be provided to a residential tenant displaced as a direct result of 
privately undertaken rehabilitation or demolition of the real property, 
the term initiation of negotiations means the execution of the 
Agreement between the Owner and the PHA.

(Approved by Office of Management and Budget under OMB Control 
Number 2506-0121)

    21. In Sec. 882.720, paragraph (b)(3)(v) is revised to read as 
follows:


Sec. 882.720  PHA unit selection policy.

* * * * *
    (b) * * *
    (3) * * *
    (v) A statement identifying:
    (A) The number of persons (families, individuals, businesses, and 
nonprofit organizations) occupying the property on the date of the 
submission of the application;
    (B) The number of persons to be displaced, temporarily relocated, 
or moved permanently within the building or complex;
    (C) The estimated cost of relocation payments and services, and the 
source of funding; and
    (D) The organization(s) that will carry out the relocation 
activities;
* * * * *


Sec. 882.721  [Amended]

    22. In Sec. 882.721, paragraph (c) is amended by removing the 
phrase ``can be rehabilitated without causing displacement of 
residential tenants from units to be assisted (see Sec. 882.712);''.
    23. In Sec. 882.803, paragraph (d), introductory text, is revised 
to read as follows:


Sec. 882.803  Project eligibility and other requirements.

* * * * *
    (d) Relocation. A project assisted under this subpart H is subject 
to the requirements of Sec. 882.810.
* * * * *
    24. A new Sec. 882.810 is added to read as follows:


Sec. 882.810  Displacement, relocation, and acquisition.

    (a) Minimizing displacement. (1) Consistent with the other goals 
and objectives of this part, Owners shall assure that they have taken 
all reasonable steps to minimize the displacement of persons 
(households, businesses, nonprofit organizations, and farms) as a 
result of a project assisted under this part.
    (2) Whenever a building/complex is rehabilitated and some, but not 
all, of the rehabilitated units will be assisted upon completion of the 
rehabilitation, the relocation requirements described in this section 
cover the occupants of each rehabilitated unit, whether or not Section 
8 assistance will be provided for the unit.
    (b) Temporary relocation. The following policies cover residential 
tenants who will not be required to move permanently but who must 
relocate temporarily for the project. Such tenants must be provided:
    (1) Reimbursement for all reasonable out-of-pocket expenses 
incurred in connection with the temporary relocation, including the 
cost of moving to and from the temporarily occupied housing, any 
increase in monthly rent/utility costs, and incidental expenses.
    (2) Appropriate advisory services, including reasonable advance 
written notice of:
    (i) The date and approximate duration of the temporary relocation;
    (ii) The location of the suitable, decent, safe, and sanitary 
dwelling to be made available for the temporary period;
    (iii) The terms and conditions under which the tenant may lease and 
occupy a suitable, decent, safe, and sanitary dwelling in the project 
upon completion of the rehabilitation, and
    (iv) The assistance required under paragraph (b)(1) of this 
section.
    (c) Relocation assistance for displaced persons. A ``displaced 
person'' (defined in paragraph (g) of this section) must be provided 
relocation assistance at the levels described in, and in accordance 
with the requirements of, the Uniform Relocation Assistance and Real 
Property Acquisition Policies Act of 1970, as amended (URA) (42 U.S.C. 
4601-4655) and implementing regulations at 49 CFR part 24. A 
``displaced person'' shall be advised of his or her rights under the 
Fair Housing Act (42 U.S.C. 3601-19) and, if the comparable replacement 
dwelling used to establish the amount of the replacement housing 
payment to be provided to a minority is located in an area of minority 
concentration, such person also shall be given, if possible, referrals 
to comparable and suitable, decent, safe, and sanitary replacement 
dwellings not located in such areas.
    (d) Real property acquisition requirements. The acquisition of real 
property for a project is subject to the URA and the requirements 
described in 49 CFR part 24, subpart B.
    (e) Appeals. A person who disagrees with the PHA's determination 
concerning whether the person qualifies as a ``displaced person,'' or 
the amount of relocation assistance for which the person is eligible, 
may file a written appeal of that determination with the PHA. A person 
who is dissatisfied with the PHA's determination on his or her appeal 
may submit a written request for review of that determination to the 
HUD Field Office.
    (f) Responsibility of PHA. (1) The PHA shall certify (i.e., provide 
assurance of compliance as required by 49 CFR part 24) that it will 
comply with the URA, the regulations at 49 CFR part 24, and the 
requirements of this section and shall ensure such compliance 
notwithstanding any third party's contractual obligation to the PHA to 
comply with these provisions.
    (2) The cost of required assistance is an eligible project cost in 
the same manner and to the same extent as other project costs. Such 
costs also may be paid for with local public funds or funds available 
from other sources. The cost of PHA advisory services for temporary 
relocation of tenants to be assisted under the program also may be paid 
from preliminary administrative funds.
    (3) The PHA shall maintain records in sufficient detail to 
demonstrate compliance with the provisions of this section. The PHA 
shall maintain data on the race, ethnic, gender, and disability status 
of displaced persons.
    (g) Definition of displaced person. (1) For purposes of this 
section, the term displaced person means a person (household, business, 
nonprofit organization, or farm) that moves from real property, or 
moves personal property from real property, permanently, as a direct 
result of acquisition, rehabilitation, or demolition for a project 
assisted under this part. The term ``displaced person'' includes, but 
may not be limited to:
    (i) A person that moves permanently from the real property after 
receiving notice requiring such move, if the move occurs on or after 
the date the Owner submits to the PHA the Owner proposal that is later 
approved;
    (ii) Any person, including a person who moves from the property 
before the date the Owner submits the proposal to the PHA, if the PHA 
or HUD determines that the displacement resulted directly from 
acquisition, rehabilitation, or demolition for the assisted project; or
    (iii) A tenant-occupant of a dwelling unit who moves from the 
building/complex, permanently, after the ``initiation of negotiations'' 
(see paragraph (h) of this section), if the move occurs before the 
tenant is provided a written notice offering him or her the opportunity 
to lease and occupy a suitable, decent, safe, and sanitary dwelling in 
the same building/complex, under reasonable terms and conditions, upon 
its completion. Such reasonable terms and conditions shall include a 
monthly rent and estimated average monthly utility costs that do not 
exceed the greater of:
    (A) The tenant's monthly rent before the ``initiation of 
negotiations'' and estimated average monthly utility costs; or
    (B) The total tenant payment, as determined under 24 CFR 813.107, 
if the tenant is low-income, or 30 percent of gross household income, 
if the tenant is not low-income; or
    (iv) A tenant-occupant of a dwelling, who is required to relocate 
temporarily, but does not return to the building/complex, if either:
    (A) The tenant is not offered payment for all reasonable out-of-
pocket expenses incurred in connection with the temporary relocation, 
or
    (B) Other conditions of the temporary relocation are not 
reasonable; or
    (v) A tenant-occupant of a dwelling who moves from the building/
complex permanently after he or she has been required to move to 
another dwelling unit in the building/complex, if either:
    (A) The tenant is not offered reimbursement for all reasonable out-
of-pocket expenses incurred in connection with the move; or
    (B) Other conditions of the move are not reasonable.
    (2) Notwithstanding the provisions of paragraph (d)(7)(i) of this 
section, a person does not qualify as a ``displaced person'' (and is 
not eligible for relocation assistance under the URA or this section), 
if:
    (i) The person has been evicted for serious or repeated violation 
of the terms and conditions of the lease or occupancy agreement, 
violation of applicable Federal, State or local law, or other good 
cause, and the PHA determines that the eviction was not undertaken for 
the purpose of evading the obligation to provide relocation assistance;
    (ii) The person moved into the property after the submission of the 
preliminary proposal (or application, if there is no preliminary 
proposal), and, before signing a lease and commencing occupancy, 
received written notice of the project and its possible impact on the 
person (e.g., the person may be displaced, temporarily relocated, or 
suffer a rent increase) and the fact that he or she would not qualify 
as a ``displaced person'' (or for any assistance provided under this 
section) as a result of the project;
    (iii) The person is ineligible under 49 CFR 24.2(g)(2); or
    (iv) HUD determines that the person was not displaced as a direct 
result of acquisition, rehabilitation, or demolition for the project.
    (3) The PHA may request, at any time, HUD to determine whether a 
displacement is or would be covered by paragraph (d)(7) of this 
section.
    (h) Definition of initiation of negotiations. For purposes of 
determining the formula for computing the replacement housing 
assistance to be provided to a residential tenant displaced as a direct 
result of private-owner rehabilitation or demolition of the real 
property, the term initiation of negotiations means the execution of 
the Agreement between the Owner and the PHA.

(Approved by Office of Management and Budget under OMB Control 
Number 2506-0121)

PART 883--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM--STATE 
HOUSING AGENCIES

    25. The authority citation for part 883 continues to read as 
follows:

    Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d), and 13611-
13619.

    26. Section 883.311 is revised to read as follows:


Sec. 883.311  Displacement, relocation, and acquisition.

    (a) Minimizing displacement. Consistent with the other goals and 
objectives of this part, Owners shall assure that they have taken all 
reasonable steps to minimize the displacement of persons (households, 
businesses, nonprofit organizations, and farms) as a result of a 
project assisted under this part.
    (b) Temporary relocation. The following policies cover residential 
tenants who will not be required to move permanently but who must 
relocate temporarily for the project. Such tenants must be provided:
    (1) Reimbursement for all reasonable out-of-pocket expenses 
incurred in connection with the temporary relocation, including the 
cost of moving to and from the temporary housing, any increase in 
monthly rent/utility costs, and any incidental expenses;
    (2) Appropriate advisory services, including reasonable advance 
written notice of:
    (i) The date and approximate duration of the temporary relocation;
    (ii) The location of the suitable, decent, safe, and sanitary 
dwelling to be made available for the temporary period;
    (iii) The terms and conditions under which the tenant may lease and 
occupy a suitable decent, safe, and sanitary dwelling in the building/
complex following completion of the rehabilitation, and
    (iv) The provisions of paragraph (b)(1) of this section.
    (c) Relocation assistance for displaced persons. A ``displaced 
person'' (defined in paragraph (g) of this section) must be provided 
relocation assistance at the levels described in, and in accordance 
with the requirements of, the Uniform Relocation Assistance and Real 
Property Acquisition Policies Act of 1970, as amended (URA) (42 U.S.C. 
4601-4655) and implementing regulations at 49 CFR part 24. A 
``displaced person'' shall be advised of his or her rights under the 
Fair Housing Act (42 U.S.C. 3601-19), and, if the representative 
comparable replacement dwelling used to establish the amount of the 
replacement housing payment to be provided to a minority person is 
located in an area of minority concentration, such person also shall be 
given, if possible, referrals to comparable and suitable, decent, safe 
and sanitary replacement dwellings not located in such areas.
    (d) Real property acquisition requirements. The acquisition of real 
property for a project is subject to the URA and the requirements 
described in 49 CFR part 24, subpart B.
    (e) Appeals. A person who disagrees with the Agency's determination 
concerning whether the person qualifies as a ``displaced person,'' or 
the amount of relocation assistance for which the person is found to be 
eligible, may file a written appeal of that determination with the 
Agency. A person who is dissatisfied with the Agency's determination on 
his or her appeal may submit a written request for review of that 
determination to the HUD Field Office.
    (f) Responsibility of Agency. (1) The Agency shall certify (i.e., 
provide assurance of compliance as required by 49 CFR part 24) that it 
will comply with the URA, the regulations at 49 CFR part 24, and the 
requirements of this section, and shall ensure such compliance 
notwithstanding any third party's contractual obligation to the Agency 
to comply.
    (2) The cost of relocation assistance is an eligible project cost 
in the same manner and to the same extent as other project costs. Such 
costs, however, may be paid from local funds or funds available from 
other sources.
    (3) The Agency shall maintain records in sufficient detail to 
demonstrate compliance with these provisions. The Agency shall maintain 
data on the race, ethnic, gender, and disability status of displaced 
persons.
    (g) Definition of displaced person. (1) For purposes of this 
section, the term displaced person means a person (household, business, 
nonprofit organization, or farm) that moves from real property, or 
moves personal property from real property, permanently, as a direct 
result of acquisition, rehabilitation, or demolition for a project 
assisted under this part. The term ``displaced person'' includes, but 
may not be limited to:
    (i) A tenant-occupant of a dwelling unit who moves from the 
building/complex, permanently, after execution of the agreement 
covering the rehabilitation, demolition or acquisition, if the move 
occurs before the tenant is provided written notice offering him or her 
the opportunity to lease and occupy a suitable, decent, safe, and 
sanitary dwelling in the same building/complex, under reasonable terms 
and conditions, upon completion of the project. Such reasonable terms 
and conditions include a monthly rent and estimated average monthly 
utility costs that do not exceed the greater of:
    (A) The tenant's monthly rent before execution of the agreement and 
estimated average monthly utility costs; or
    (B) 30 percent of gross household income; or
    (ii) A tenant-occupant of a dwelling who is required to relocate 
temporarily, but does not return to the building/complex, if either:
    (A) The tenant is not offered payment for all reasonable out-of-
pocket expenses incurred in connection with the temporary relocation, 
including the cost of moving to and from the temporarily occupied unit, 
any increased housing costs and incidental expenses; or
    (B) Other conditions of the temporary relocation are not 
reasonable; or
    (iii) A tenant-occupant of a dwelling who moves from the building/
complex permanently after he or she has been required to move to 
another dwelling unit in the same building/complex in order to carry 
out the project, if either:
    (A) The tenant is not offered reimbursement for all reasonable out-
of-pocket expenses incurred in connection with the move; or
    (B) Other conditions of the move are not reasonable; or
    (2) Notwithstanding the provision of paragraph (g)(1) of this 
section, a person does not qualify as a ``displaced person'' (and is 
not eligible for relocation assistance under the URA or this section), 
if:
    (i) The person has been evicted for serious or repeated violation 
of the terms and conditions of the lease or occupancy agreement, 
violation of applicable Federal, State or local law, or other good 
cause, and HUD determines that the eviction was not undertaken for the 
purpose of evading the obligation to provide relocation assistance;
    (ii) The person moved into the property after the submission of the 
proposal to HUD and, before signing a lease and commencing occupancy, 
was provided written notice of the project, its possible impact on the 
person (e.g., the person may be displaced, temporarily relocated or 
suffer a rent increase) and the fact that he or she would not qualify 
as a ``displaced person'' (or for any assistance provided under this 
section) as a result of the project;
    (iii) The person is ineligible under 49 CFR 24.2(g)(2); or
    (iv) HUD determines that the person was not displaced as a direct 
result of acquisition, rehabilitation, or demolition for the project;
    (3) The Agency may request, at any time, a HUD determination of 
whether a displacement is or would be covered by this section.
    (h) Definition of initiation of negotiations. For purposes of 
determining the formula for computing the replacement housing 
assistance to be provided to a residential tenant displaced as a direct 
result of private-owner rehabilitation, demolition, or acquisition of 
the real property, the term initiation of negotiations means the 
Owner's execution of the agreement covering the rehabilitation, 
demolition, or acquisition.

(Approved by Office of Management and Budget under OMB Control 
Number 2506-0121)

PART 884--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM, NEW 
CONSTRUCTION SET-ASIDE FOR SECTION 515 RURAL RENTAL HOUSING 
PROJECTS

    27. The authority citation for part 884 continues to read as 
follows:

    Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d), and 13611-
13619.

    28. Section 884.112 is revised to read as follows:


Sec. 884.112  Displacement, relocation, and acquisition.

    (a) Minimizing displacement. Consistent with the other goals and 
objectives of this part, Owners shall assure that they have taken all 
reasonable steps to minimize the displacement of persons (households, 
businesses, nonprofit organizations, and farms) as a result of a 
project assisted under this part.
    (b) Temporary relocation. The following policies cover residential 
tenants who will not be required to move permanently but who must 
relocate temporarily for the project. Such tenants must be provided:
    (1) Reimbursement for all reasonable out-of-pocket expenses 
incurred in connection with the temporary relocation, including the 
cost of moving to and from the temporary housing, any increase in 
monthly rent/utility costs, and any incidental expenses;
    (2) Appropriate advisory services, including reasonable advance 
written notice of:
    (i) The date and approximate duration of the temporary relocation;
    (ii) The location of the suitable, decent, safe, and sanitary 
dwelling to be made available for the temporary period;
    (iii) The terms and conditions under which the tenant may lease and 
occupy a suitable decent, safe, and sanitary dwelling in the building/
complex following completion of the rehabilitation, and
    (iv) The provisions of paragraph (b)(1) of this section.
    (c) Relocation assistance for displaced persons. A ``displaced 
person'' (defined in paragraph (f) of this section) must be provided 
relocation assistance at the levels described in, and in accordance 
with the requirements of, the Uniform Relocation Assistance and Real 
Property Acquisition Policies Act of 1970, as amended (URA) (42 U.S.C. 
4601-4655) and implementing regulations at 49 CFR part 24. A 
``displaced person'' shall be advised of his or her rights under the 
Fair Housing Act (42 U.S.C. 3601-19), and, if the representative 
comparable dwelling used to establish the amount of the replacement 
housing payment to be provided to a minority person is located in an 
area of minority concentration, such person shall be given, if 
possible, referrals to comparable and suitable, decent, safe and 
sanitary replacement dwellings not located in such areas.
    (d) Real property acquisition requirements. The acquisition of real 
property for a project is subject to the URA and the requirements 
described in 49 CFR part 24, subpart B.
    (e) Appeals. A person who disagrees with the PHA's determination 
concerning whether the person qualifies as a ``displaced person,'' or 
the amount of relocation assistance for which the person is eligible, 
may file a written appeal of that determination with the PHA. A person 
who is dissatisfied with the PHA's determination on his or her appeal 
may submit a written request for review of that determination to the 
HUD Field Office.
    (f) Responsibility of Owner/PHA. (1) The private-owner (in the case 
of a Private-Owner project or a Private-Owner/PHA project) or the PHA 
(in the case of a PHA-Owner Project) shall certify (i.e., provide 
assurance of compliance as required by 49 CFR part 24) that it will 
comply with the URA, the regulations at 49 CFR part 24, and the 
requirements of this section and shall ensure such compliance 
notwithstanding any third party's contractual obligation to the Owner 
or the PHA to comply with these provisions.
    (2) The cost of required relocation assistance is an eligible 
project cost in the same manner and to the same extent as other project 
costs. Such costs may also be paid for with funds available from other 
sources.
    (3) The Owner shall maintain records in sufficient detail to 
demonstrate compliance with these provisions. The Owner and the PHA 
shall maintain data on the race, ethnic, gender, and disability status 
of displaced persons.
    (g) Definition of displaced person. (1) For purposes of this 
section, the term displaced person means a person (household, business, 
nonprofit organization, or farm) that moves from real property, or 
moves personal property from real property, permanently, as a direct 
result of acquisition, rehabilitation, or demolition for a project 
assisted under this part. The term ``displaced person'' includes, but 
may not be limited to:
    (i) A tenant-occupant of a dwelling unit who moves from the 
building/complex, permanently, after execution of the agreement 
covering the rehabilitation, demolition or acquisition, if the move 
occurs before the tenant is provided written notice offering him or her 
the opportunity to lease and occupy a suitable, decent, safe, and 
sanitary dwelling in the same building/complex, under reasonable terms 
and conditions, upon completion of the project. Such reasonable terms 
and conditions include a monthly rent and estimated average monthly 
utility costs that do not exceed the greater of:
    (A) The tenant's monthly rent before execution of the agreement and 
estimated average monthly utility costs; or
    (B) 30 percent of gross household income; or
    (ii) A tenant-occupant of a dwelling who is required to relocate 
temporarily, but does not return to the building/complex, if either:
    (A) The tenant is not offered payment for all reasonable out-of-
pocket expenses incurred in connection with the temporary relocation, 
including the cost of moving to and from the temporarily occupied unit, 
any increased housing costs and incidental expenses; or
    (B) Other conditions of the temporary relocation are not 
reasonable; or
    (iii) A tenant-occupant of a dwelling who moves from the building/
complex permanently after he or she has been required to move to 
another dwelling unit in the same building/complex in order to carry 
out the project, if either:
    (A) The tenant is not offered reimbursement for all reasonable out-
of-pocket expenses incurred in connection with the move; or
    (B) Other conditions of the move are not reasonable; or
    (2) Notwithstanding the provision of paragraph (g)(1) of this 
section, a person does not qualify as a ``displaced person'' (and is 
not eligible for relocation assistance under the URA or this section), 
if:
    (i) The person has been evicted for serious or repeated violation 
of the terms and conditions of the lease or occupancy agreement, 
violation of applicable Federal, State or local law, or other good 
cause, and HUD determines that the eviction was not undertaken for the 
purpose of evading the obligation to provide relocation assistance;
    (ii) The person moved into the property after the submission of the 
proposal to HUD and, before signing a lease and commencing occupancy, 
was provided written notice of the project and its possible impact on 
the person (e.g., the person may be displaced, temporarily relocated or 
suffer a rent increase) and the fact that he or she would not qualify 
as a ``displaced person'' (or for any assistance provided under this 
section) as a result of the project;
    (iii) The person is ineligible under 49 CFR 24.2(g)(2); or
    (iv) HUD determines that the person was not displaced as a direct 
result of acquisition, rehabilitation, or demolition for the project;
    (3) The PHA or private owner may request, at any time, a HUD 
determination of whether a displacement is or would be covered by this 
section.
    (h) Definition of initiation of negotiations. For purposes of 
determining the formula for computing the replacement housing 
assistance to be provided to a residential tenant displaced as a direct 
result of private-owner rehabilitation, demolition or acquisition of 
the real property, the term initiation of negotiations means the 
Owner's execution of the agreement covering the rehabilitation, 
demolition or acquisition.

(Approved by Office of Management and Budget under OMB Control 
Number 2506-0121)

PART 900--SECTION 23 HOUSING ASSISTANCE PAYMENTS PROGRAM-- NEW 
CONSTRUCTION AND SUBSTANTIAL REHABILITATION

    29. The authority citation for part 900 is revised to read as 
follows:

    Authority: 42 U.S.C. 1410(b) and 3535(d).

    30. A new Sec. 900.105 is added, to read as follows:


Sec. 900.105  Displacement, relocation, and acquisition.

    (a) Minimizing displacement. Consistent with the other goals and 
objectives of this part, Local Housing Authorities and Owners shall 
assure that they have taken all reasonable steps to minimize the 
displacement of persons (households, businesses, nonprofit 
organizations, and farms) as a result of a project assisted under this 
part.
    (b) Temporary relocation. The following policies cover residential 
tenants who will not be required to move permanently but who must 
relocate temporarily for the project. Such tenants must be provided:
    (1) Reimbursement for all reasonable out-of-pocket expenses 
incurred in connection with the temporary relocation, including the 
cost of moving to and from the temporary housing, any increase in 
monthly rent/utility costs and incidental expenses.
    (2) Appropriate advisory services, including reasonable advance 
written notice of:
    (i) The date and approximate duration of the temporary relocation;
    (ii) The location of the suitable, decent, safe and sanitary 
dwelling to be made available for the temporary period;
    (iii) The terms and conditions under which the tenant may lease and 
occupy a suitable, decent, safe, and sanitary dwelling in the building/
complex upon completion of the project; and
    (iv) The provisions of paragraph (b)(1) of this section.
    (c) Relocation assistance for displaced persons. A ``displaced 
person'' (defined in paragraph (g) of this section) must be provided 
relocation assistance at the levels described in, and in accordance 
with the requirements of, the Uniform Relocation Assistance and Real 
Property Acquisition Policies Act of 1970, as amended (URA) (42 U.S.C. 
4601-4655) and implementing regulations at 49 CFR part 24. A 
``displaced person'' shall be advised of his/her rights under the Fair 
Housing Act (42 U.S.C. 3601-19), and, if the representative comparable 
replacement dwelling used to establish the amount of the replacement 
housing payment to be provided to a minority person is located in an 
area of minority concentration, such person also shall be given, if 
possible, referrals to comparable and suitable, decent, safe, and 
sanitary replacement dwellings not located in such areas.
    (d) Real property acquisition requirements. The acquisition of real 
property for a project is subject to the URA and the requirements of 49 
CFR part 24, subpart B.
    (e) Appeals. A person who disagrees with the Local Housing 
Authority's (LHA's) determination concerning whether the person 
qualifies as a ``displaced person,'' or the amount of relocation 
assistance for which the person eligible, may file a written appeal of 
that determination with the LHA. A person who is dissatisfied with the 
LHA's determination on his or her appeal may submit a written request 
for review of that determination to the HUD Field Office.
    (f) Responsibility of LHA. (1) The Local Housing Authority (LHA) 
shall certify that it will comply (i.e., provide assurance of 
compliance as required by 49 CFR part 24) with the URA, the regulations 
at 49 CFR part 24, and the requirements of this section, and shall 
ensure such compliance notwithstanding any third party's contractual 
obligation to the LHA to comply with these provisions.
    (2) The cost of required assistance is an eligible project cost in 
the same manner and to the same extent as other project costs. Such 
costs also may be paid for with funds available from other sources.
    (3) The LHA shall maintain records in sufficient detail to 
demonstrate compliance with the provisions of this section and include 
data indicating the race, ethnic, gender, and disability status of 
displaced persons.
    (g) Definition of displaced person. (1) For purposes of this 
section, the term displaced person means a person (household, business, 
nonprofit organization, or farm) that moves from real property, or 
moves personal property from real property, permanently, as a direct 
result of acquisition, rehabilitation, or demolition for a project 
assisted under this part. The term ``displaced person'' includes, but 
may not be limited to:
    (i) A tenant-occupant of a dwelling unit who moves from the 
building/complex, permanently, after the Owner's execution of the 
agreement covering the rehabilitation, demolition or acquisition, if 
the move occurs before the tenant is provided written notice offering 
him or her the opportunity to lease and occupy a suitable, decent, 
safe, and sanitary dwelling in the same building/complex, under 
reasonable terms and conditions, upon completion of the project. Such 
reasonable terms and conditions include a monthly rent and estimated 
average monthly utility costs that do not exceed the greater of:
    (A) The tenant's monthly rent before execution of the agreement and 
estimated average monthly utility costs; or
    (B) 30 percent of gross household income; or
    (ii) A tenant-occupant of a dwelling who is required to relocate 
temporarily, but does not return to the building/complex, if either:
    (A) The tenant is not offered payment for all reasonable out-of-
pocket expenses incurred in connection with the temporary relocation, 
including the cost of moving to and from the temporarily occupied unit, 
any increased housing costs and incidental expenses; or
    (B) Other conditions of the temporary relocation are not 
reasonable; or
    (iii) A tenant-occupant of a dwelling who moves from the building/
complex permanently after he or she has been required to move to 
another dwelling unit in the same building/complex in order to carry 
out the project, if either:
    (A) The tenant is not offered reimbursement for all reasonable out-
of-pocket expenses incurred in connection with the move; or
    (B) Other conditions of the move are not reasonable; or
    (iv) Any person, including a person who moves before the owner's 
execution of the agreement covering the rehabilitation, demolition, or 
acquisition, if the Owner, the LHA or HUD determines that the 
displacement resulted directly from rehabilitation, demolition or 
acquisition for the assisted project.
    (2) Notwithstanding the provisions of paragraph (g)(1) of this 
section, a person does not qualify as a ``displaced person'' (and is 
not eligible for relocation assistance under the URA or this section), 
if:
    (i) The person has been evicted for serious or repeated violation 
of the terms and conditions of the lease or occupancy agreement, 
violation of applicable Federal, State or local law, or other good 
cause, and the LHA determines that the eviction was not undertaken for 
the purpose of evading the obligation to provide relocation assistance;
    (ii) The person moved into the property after the execution of the 
agreement covering the rehabilitation, demolition, or acquisition, and, 
before signing a lease and commencing occupancy, was provided written 
notice of the project, its possible impact on the person (e.g., the 
person may be displaced, temporarily relocated, or suffer a rent 
increase) and the fact that the person would not qualify as a 
``displaced person'' (or for assistance under this section) as a result 
of the project;
    (iii) The person is ineligible under 49 CFR 24.2(g)(2); or
    (iv) HUD determines that the person was not displaced as a direct 
result of acquisition, rehabilitation, or demolition for the project.
    (3) The Owner or LHA may request, at any time, HUD's determination 
of whether a displacement is or would be covered by this section.
    (h) Definition of initiation of negotiations. For purposes of 
determining the formula for computing the replacement housing 
assistance to be provided to a residential tenant displaced as a direct 
result of private-owner rehabilitation, demolition, or acquisition of 
the real property, the term initiation of negotiations means the 
Owner's execution of the agreement covering the rehabilitation, 
demolition, or acquisition.

(Approved by Office of Management and Budget under OMB Control 
Number 2506-0121)

PART 941--PUBLIC HOUSING DEVELOPMENT

    31. The authority citation for part 941 continues to read as 
follows:

    Authority: 42 U.S.C. 1437b, 1437c, 1437g, and 3535(d).

    32. Section 941.207 is revised to read as follows:


Sec. 941.207  Displacement, relocation, and acquisition.

    (a) Minimizing displacement. Consistent with the other goals and 
objectives of this part, the PHA shall assure that it has taken all 
reasonable steps to minimize the displacement of persons (households, 
businesses, nonprofit organizations, and farms) as a result of a 
project assisted under this part.
    (b) Temporary relocation. Only residential tenants who are eligible 
under 24 CFR 913.103 and who meet the PHA standards for tenancy 
established pursuant to 24 CFR 960.204 will be permitted to continue in 
occupancy. Any residential tenant who (though not required to move 
permanently) must relocate temporarily (e.g., to permit rehabilitation 
or major reconstruction) shall be provided:
    (1) Reimbursement for all reasonable out-of-pocket expenses 
incurred in connection with the temporary relocation, including the 
cost of moving to and from the temporary housing, any increase in 
monthly rent/utility costs and incidental expenses.
    (2) Appropriate advisory services, including reasonable advance 
written notice of:
    (i) The date and approximate duration of the temporary relocation;
    (ii) The location of the suitable, decent, safe and sanitary 
housing to be made available for the temporary period;
    (iii) The terms and conditions under which the tenant may lease and 
occupy a suitable, decent, safe, and sanitary dwelling in the building/
complex following completion of the project; and
    (iv) The provisions of paragraph (b)(1) of this section.
    (c) Relocation assistance for displaced persons. A ``displaced 
person'' (defined in paragraph (h) of this section) must be provided 
relocation assistance at the levels described in, and in accordance 
with the requirements of, the Uniform Relocation Assistance and Real 
Property Acquisition Policies Act of 1970, as amended (URA) (42 U.S.C. 
4601-4655) and implementing regulations at 49 CFR part 24. A 
``displaced person'' shall be advised of his/her rights under the Fair 
Housing Act (42 U.S.C. 3601-19), and, if the representative comparable 
replacement dwelling used to establish the amount of the replacement 
housing payment to be provided to a minority person is located in an 
area of minority concentration, such person also shall be given, if 
possible, referrals to comparable and suitable, decent, safe, and 
sanitary replacement dwellings not located in such areas.
    (d) Real property acquisition requirements. The acquisition of real 
property for a project is subject to the URA and the requirements in 49 
CFR part 24, subpart B. With respect to the Turnkey method of 
development (see 24 CFR 941.102(b)), 49 CFR 24.101(a) (1) and (2) apply 
to the PHA/developer and developer/owner transactions, respectively.
    (e) Notices. (1) As soon as possible after the date described in 
paragraph (h)(1)(i) of this section, the PHA shall issue a general 
information notice (described in 49 CFR 24.203(a)) to each occupant of 
the property.
    (2) At the time of the initiation of negotiations (defined in 
paragraph (i) of this section), the PHA shall issue an appropriate 
written notice to each person occupying the property. Those to be 
displaced shall be issued a notice of eligibility for relocation 
assistance. (This notice may be combined with the 90-day notice under 
49 CFR 24.203(c).) Tenants (eligible under 24 CFR 913.103 and the 
standards for tenancy established in accordance with 24 CFR 960.204) 
who will not be displaced shall be issued a notice offering the tenant 
the opportunity to enter into a lease to continue in occupancy of the 
property under reasonable terms and conditions. (Also, see paragraph 
(h)(1)(iii) of this section.)
    (f) Appeals. A person who disagrees with the PHA's determination 
concerning whether the person qualifies as a ``displaced person,'' or 
the amount of relocation assistance for which the person is eligible, 
may file a written appeal of that determination with the PHA. A person 
who is dissatisfied with the PHA's determination on his or her appeal 
may submit a written request for review of that determination to the 
HUD Field Office.
    (g) Responsibility of PHA. (1) The PHA shall certify (i.e., provide 
assurance of compliance, as required by 49 CFR part 24) that it will 
comply with the URA, the regulations at 49 CFR part 24, and the 
requirements of this section, and shall ensure such compliance 
notwithstanding any third party's contractual obligation to the PHA to 
comply. The certification in the PHA's ``Resolution in Support of 
Public Housing Project'' that the PHA will comply with all the 
requirements of 24 CFR part 941 shall constitute the PHA's 
certification of compliance with the URA, the implementing regulations 
at 49 CFR part 24, and this section.
    (2) The cost of required assistance is an eligible project cost in 
the same manner and to the same extent as other project costs. Such 
costs may also be paid from funds available from other sources.
    (3) The PHA must maintain records in sufficient detail to 
demonstrate compliance with this section, including data indicating the 
race, ethnic, gender and disability status of displaced persons.
    (h) Definition of displaced person. (1) For purposes of this 
section, the term displaced person means a person (household, business, 
nonprofit organization, or farm) that moves from real property, or 
moves personal property from real property, permanently, as a direct 
result of acquisition, rehabilitation, or demolition for a project 
assisted under this part. The term ``displaced person'' includes, but 
may not be limited to:
    (i) A person who moves permanently from the real property after 
receiving a notice from the PHA or property owner that requires such 
move, if the move occurs on or after:
    (A) For conventional or acquisition projects, the date of approval 
by HUD of the PHA proposal incorporating the site, or for scattered 
sites, the date HUD approves the applicable site;
    (B) For turnkey projects, the date the PHA proposal is submitted to 
HUD; or
    (C) For major reconstruction of obsolete public housing projects, 
the date the PHA issues the invitation for bids for the project;
    (ii) Any person, including a person who moves before the date 
described in paragraph (h)(1)(i) of this section, that the PHA or HUD 
determines was displaced as a direct result of acquisition, 
rehabilitation, or demolition for the assisted project; or
    (iii) A tenant-occupant of a dwelling unit who moves from the 
building/complex, permanently, after the ``initiation of 
negotiations,'' (defined in paragraph (i) of this section), if the move 
occurs before the tenant is provided written notice offering him or her 
the opportunity to lease and occupy a suitable, decent, safe, and 
sanitary dwelling in the same building/complex, under reasonable terms 
and conditions, upon completion of the project. Such reasonable terms 
and conditions include a monthly rent and estimated average monthly 
utility costs that do not exceed the amount determined in accordance 
with 24 CFR 913.107; or
    (iv) A tenant-occupant of a dwelling who is required to relocate 
temporarily, but does not return to the building/complex, if either:
    (A) The tenant is not offered payment for all reasonable out-of-
pocket expenses incurred in connection with the temporary relocation, 
including the cost of moving to and from the temporarily occupied unit, 
any increased housing costs and incidental expenses; or
    (B) Other conditions of the temporary relocation are not 
reasonable; or
    (v) A tenant-occupant of a dwelling who moves from the building/
complex permanently after he or she has been required to move to 
another dwelling unit in the same building/complex in order to carry 
out the project, if either:
    (A) The tenant is not offered reimbursement for all reasonable out-
of-pocket expenses incurred in connection with the move; or
    (B) Other conditions of the move are not reasonable; or
    (2) Notwithstanding the provisions of paragraph (h)(1) of this 
section, a person does not qualify as a ``displaced person'' (and is 
not eligible for relocation assistance under the URA or this section), 
if:
    (i) The person has been evicted for serious or repeated violation 
of the terms and conditions of the lease or occupancy agreement, 
violation of applicable Federal, State or local law, or other good 
cause, and the PHA determines that the eviction was not undertaken for 
the purpose of evading the obligation to provide relocation assistance;
    (ii) The person moved into the property after the date described in 
paragraph (h)(1)(i) of this section, but before commencing occupancy, 
received written notice of the project, its possible impact on the 
person (e.g., that the person may be displaced, temporarily relocated, 
or suffer a rent increase) and the fact that he or she would not 
qualify as a ``displaced person'' (or for assistance under this 
section) as a result of the project;
    (iii) The person is ineligible under 49 CFR 24.2(g)(2); or
    (iv) HUD determines that the person was not displaced as a direct 
result of acquisition, rehabilitation, or demolition for the project.
    (3) The PHA may, at any time, ask HUD to determine whether a 
displacement is or would be covered by this section.
    (i) Definition of initiation of negotiations. For purposes of this 
section, the term ``initiation of negotiations'' means:
    (1) For conventional or acquisition projects:
    (i) Where the PHA purchases the real property through an arm's-
length transaction (as described in 49 CFR 24.101(a)(1)), the seller's 
acceptance of the PHA's written offer to purchase the property (i.e., 
the seller's execution of form HUD-51971-II), provided the PHA later 
purchases the property; or such other date, as may be determined by the 
PHA with the approval of the HUD Field Office; or
    (ii) Where the PHA's purchase of the real property does not qualify 
as an arm's-length transaction under 49 CFR 24.101(a)(1), the delivery 
of the initial written purchase offer from the PHA to the Owner of the 
property (i.e., the PHA executed form HUD-51971-II). However, if the 
PHA issues a notice of intent to acquire the property, and a person 
moves after that notice, but before the initial written purchase offer, 
the ``initiation of negotiations'' is the actual move of the person 
from the property;
    (2) For turnkey projects, HUD Field Office approval of the PHA's 
proposal incorporating the developer's proposal, provided the contract 
of sale is later executed; or
    (3) For major reconstruction of obsolete projects, the PHA's 
issuance of the invitation for bids for the project.

(Approved by Office of Management and Budget under OMB Control 
Number 2506-0121)

    Dated: May 23, 1994.
Henry G. Cisneros,
Secretary.
[FR Doc. 94-13405 Filed 6-3-94; 8:45 am]
BILLING CODE 4210-32-P