Federal Register, Volume 59 Issue 126 (Friday, July 1, 1994)

[Federal Register Volume 59, Number 126 (Friday, July 1, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-16074]

[[Page Unknown]]

[Federal Register: July 1, 1994]

_______________________________________________________________________

Part XI

Department of Housing and Urban Development

_______________________________________________________________________

Office of the Secretary

_______________________________________________________________________

24 CFR Part 43 et al.

Residential Antidisplacement and Relocation Assistance Plan; Proposed
Rule
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Secretary

24 CFR Parts 43, 92, and 570

[Docket No. R-94-1679; FR-3449-P-01]
RIN 2501-AB52

Residential Antidisplacement and Relocation Assistance Plan

AGENCY: Office of the Secretary, HUD.

ACTION: Proposed rule.

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SUMMARY: The Department is proposing minimum requirements for a
Residential Antidisplacement and Relocation Assistance Plan (Plan).
Recently enacted law requires a participating jurisdiction to certify
in its Comprehensive Housing Affordability Strategy (CHAS) that it is
following a Plan that provides: for the replacement of lower income
housing that is demolished or converted to another use in connection
with a HOME-assisted project; and relocation assistance to lower income
persons displaced by such conversion or by demolition. Community
Development Block Grant (CDBG) Programs are currently subject to
compliance with a Plan. Conforming changes would be made to the CDBG
regulations, so that all HOME and CDBG Programs would be subject to the
same Plan requirements in 24 CFR part 43.

DATES: Comments must be received by August 1, 1994.

ADDRESSES: Interested persons are invited to submit comments regarding
this proposed rule to the Rules Docket Clerk, Office of General
Counsel, Room 10276, Department of Housing and Urban Development, 451
Seventh Street, S.W., Washington, D.C. 20410-0500. Communications
should refer to the above docket number and title. Facsimile (FAX)
comments are not acceptable. A copy of each communication submitted
will be available for public inspection and copying between 7:30 a.m.
and 5:30 p.m. weekdays at the above address.

FOR FURTHER INFORMATION CONTACT: H. J. Huecker, Director, or Mel
Geffner, Deputy Director, Relocation and Real Estate Division, Office
of Affordable Housing, U.S. Department of Housing and Urban
Development, 451 Seventh Street, S.W., Washington, D.C. 20410,
telephone (202) 708-0336, or (202) 708-2565 (TDD) (these are not toll-
free numbers).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act Statement

The information collection requirements contained in this proposed
rule have been submitted to the Office of Management and Budget (OMB)
for review under section 3504(h) of the Paperwork Reduction Act of 1980
(44 U.S.C. 3501-3520). The public reporting burden for this collection
of information is estimated to include the time for reviewing
instructions, searching existing data sources, gathering and
maintaining the data needed, and completing and reviewing the
collection of information. Information on the estimated public
reporting burden is provided under the Preamble heading, Other Matters.
Send comments regarding this burden estimate or any other aspect of
this collection of information, including suggestions for reducing this
burden, to the Department of Housing and Urban Development, Rules
Docket Clerk, 451 Seventh Street, S.W., room 10276, Washington, DC
20410, and to the Office of Information and Regulatory Affairs, Office
of Management and Budget, Attention: Desk Officer for HUD, Washington,
DC 20503.
At the end of the public comment period on this proposed rule, the
Department may amend the information collection requirements set out in
this rule to reflect public comments or OMB comments received
concerning the information collection.

Justification for Shortened Comment Period

It is the general practice of the Department to provide a 60-day
public comment period on all proposed rules. However, under section
220(b) of the Housing and Community Development Act of 1992 (1992 Act),
each HOME participating jurisdiction must certify in its Comprehensive
Housing Affordability Strategy (CHAS) that it is following a
residential antidisplacement and relocation assistance plan that
provides the same rights in connection with a HOME project as are
provided under section 104(d) of the Housing and Community Development
Act of 1974 (section 104(d)) in connection with a Community Development
Block Grant (CDBG) or Urban Development Action Grant (UDAG) project.
Because inherent incompatibilities make the CDBG regulations
implementing section 104(d) inappropriate for adoption in the HOME
program, the Department is proposing new regulations that jurisdictions
could apply consistently in the applicable programs. This consolidation
of requirements should simplify compliance with the requirements for
those programs.
The regulation implementing the new CHAS certification requirement
was published on March 12, 1993 (58 FR 13686). In order to minimize
confusion and ensure uniformity with respect to the application of Plan
requirements to affected programs, the Department intends to implement
this proposed rule, which would establish part 43 as a single source
reference for the requirements of residential antidisplacement and
relocation assistance plans, as soon as possible. Therefore, the
Department is shortening its usual 60-day public comment period to 30
days for this proposed rule, so that affected jurisdictions will be
able to refer to the final rule when preparing their next CHAS
submissions.

Background

On October 28, 1992, the President approved the Housing and
Community Development Act of 1992 (Pub. L. 102-550) (1992 Act). Section
220(b) of the 1992 Act amended section 105(b) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12705(b)) to require a
participating jurisdiction to certify as part of its Comprehensive
Housing Affordability Strategy (CHAS) that it is following a
Residential Antidisplacement and Relocation Assistance Plan (Plan)
under its HOME Investment Partnerships Program (HOME) that is
equivalent to the Plan required for the Community Development Block
Grant (CDBG) Program under section 104(d) of the Housing and Community
Development Act of 1974 (1974 Act).
The requirements for a Plan under the CDBG Entitlement Program, the
CDBG HUD-administered Small Cities Program, the Section 108 Loan
Guarantee Program, and the Urban Development Action Grant (UDAG)
program are set out in 24 CFR 570.606(c). The requirements for the
State CDBG Program are set out in 24 CFR 570.488(c). Under the Plan,
then, a recipient of HOME or CDBG assistance must:
(1) Identify the reasonable steps it will take to minimize the
displacement of families and individuals from their homes as a result
of an assisted project.
(2) Replace all occupied and vacant occupiable ``lower income
housing'' that is converted to a use other than ``lower income
housing'' or is demolished for a project.
(3) Provide relocation assistance to lower income families and
individuals displaced as a direct result of the conversion of lower
income housing or the demolition of any housing for a project.
The requirement that a participating jurisdiction certify that it
is following a Plan under the HOME Program has been incorporated into
the CHAS regulation (24 CFR part 91) through a final rule published
March 12, 1993 (58 FR 13686).
To ensure uniformity with respect to the application of Plan
requirements to affected programs, the Department is proposing Part 43
as a single source reference for the requirements of residential
antidisplacement and relocation assistance plans. Conforming changes
would be made to 24 CFR 570.488 (State CDBG Program), 24 CFR 570.606
(CDBG Entitlement Grant Program), and 24 CFR 92.353(e) (HOME Program),
to reference the applicability of the Part 43 requirements.

Terminology

The requirements of Part 43 would cover the HOME, CDBG, and UDAG
programs. Terminology that is used in the regulations for these
programs is not necessarily defined identically. Accordingly, to
provide instructions that work under all applicable programs, Part 43
would use the following terms:
(1) Lower income person. The term ``lower income person'' (defined
at Sec. 43.5) would mean a person whose income does not exceed the
Section 8 low income limit established by HUD. The term ``person''
would mean all occupants of the dwelling. Accordingly, a ``lower income
person'' may be a single family, one individual living alone, two or
more families living together, or any other group of related or
unrelated occupants who share living arrangements. However, on a case-
by-case basis, for good cause, the recipient may determine that the
occupants of the dwelling unit constitute two or more persons with
separate entitlements to relocation assistance, if such determination
does not reduce the level of assistance to which any individual would
be entitled if all occupants shared one entitlement.
Except in those special cases where the recipient determines that
the household constituted two or more persons, the term ``lower income
person'' under Part 43 would be the same as the CDBG terms ``low and
moderate income household'' and ``lower income household,'' as defined
in the regulations at 24 CFR 570.3, and the term ``low income
household'' under the HOME Program. The term ``household'' has the same
meaning under both the CDBG and HOME Programs, as defined in the
respective program regulations.
The definition of ``lower income person'' controls which of the
occupants in a housing unit will have their incomes aggregated for
purposes of determining whether or not the group meets the eligibility
threshold for relocation assistance under Part 43. Example: A mother,
her two minor children, and two unrelated adults live together in the
same housing unit. Under Part 43, these five occupants would constitute
one person, which would have to meet the Section 8 income limits for a
family of five in order to qualify for assistance under Part 43.
Under the current CDBG regulations, this household constitutes
three families (defined in 24 CFR 570.3 as ``all persons living in the
same household who are related by birth, marriage or adoption''), and
the income of each family is looked at separately to determine whether
it meets the Section 8 test. Under the HOME Program, the number of
``families'' within this household may be less than three because the
HOME Program regulations adopt the definition of ``family'' given at 24
CFR 812.2. That definition states that the term ``includes but is not
limited to'' a certain class of single or unrelated persons that might
not generally be considered part of a family. A participating
jurisdiction in the HOME Program is free to adopt its own definition of
``family'' as long as the specified classes are included.
Defining a ``person'' as all members of a unit would give this term
the same meaning as the historic interpretation of the term ``person''
for purposes of implementing the Uniform Relocation Act. But it would
represent a change from the current policy for implementation of the
Antidisplacement Plan in the CDBG program, which defines an eligible
displaced ``person'' as a lower income ``family'' or ``individual.''
The proposal to define a ``person,'' for relocation purposes under
Part 43, as generally including all occupants of the housing unit is
made to reflect the reality of those circumstances where the occupants
living together in a dwelling unit do not have a traditional family
relationship, but nevertheless, are capable of contributing to the
household's monthly housing costs. Second, this change would conform
CDBG Antidisplacement Plan relocation policy to Uniform Relocation Act
policy.
(2) Lower income housing. The term ``lower income housing'' would
be defined at Sec. 43.5. This is a change from the term ``low/moderate-
income dwelling unit'' currently used to implement Plan requirements in
the CDBG programs. The change is made to avoid any misunderstanding
that might arise from the term ``moderate income,'' which is used to
describe families with incomes from 80-95% of the median area income
under the HOME program. Under the CDBG programs ``moderate-income
families'' have incomes that do not exceed 80% of the median area
income.
Also, because housing replacement requirements in this part are
measured by number of bedrooms, rather than the number of dwelling
units, the term ``housing'' is more appropriate than ``dwelling unit.''
Generally, under the regulations in this part, ``lower income
housing'' would be renter-occupied, owner-occupied, or vacant housing
with a ``market rent'' that does not exceed the applicable Fair Market
Rent (FMR) established for the Section 8 Existing Housing Program. The
market rent would be defined as the rent that a property would most
probably command in an open market. Because property owners generally
attempt to maximize profit, the market rent for a renter-occupied
property is usually the same as the actual rent charged. For purposes
of these regulations, the market rent would be permitted to be
established by a review of rents for comparable space, carried out by a
person familiar with real property values in the area. The person doing
the review would not need to be a licensed appraiser.
The FMRs are established by HUD on a metropolitan-wide basis. If a
community within a metropolitan area has substantially higher housing
costs, HUD may establish a higher FMR as an exception that applies to
that specific community. The definition of ``lower income housing''
would indicate that, where applicable, such a ``community-wide
exception FMR'' would be used to determine whether a unit is lower
income housing. This policy, which is a clarification to the existing
Plan requirements under the CDBG Program, would be followed because the
community-wide exception FMR reflects actual housing costs in the
community and is the basis for the operation of HUD-assisted housing
programs in the community, including the determination of Section 8
housing program subsidies.
(3) Project. The term ``project'' would be defined according to the
nature of the activities involved, rather than the specific funding of
the component activities. If activities are integrally related, they
would be considered one project. Examples would be given in the rule to
illustrate how the requirements of Part 43 would apply.
(4) Recipient. The term ``recipient'' is defined at Sec. 43.5. A
``grantee'' under the CDBG Entitlement Program, a ``participating
jurisdiction'' under the HOME Program, a ``State recipient'' under the
State CDBG Program and State HOME Program, and a ``public entity'' or
``designated public agency'' under the Section 108 Loan Guarantee
Program, would each be considered a ``recipient'' under Part 43.
(5) Recognition of eligibility. The term ``recognition of
eligibility'', is defined in Sec. 43.201(c), and replaces the term
``initiation of negotiations'' under the current CDBG regulations. The
definition indicates the action that establishes a person's eligibility
for relocation assistance or, in the alternative, the person's right to
continue to occupy the property under the conditions specified in the
notice of displacement.

Removal of Dilapidated Housing

The current rule (applicable to the CDBG Program) requires
recipients to replace vacant, dilapidated housing that is not suitable
for rehabilitation if the unit was occupied at any time within the
period beginning one year before the execution of the contract covering
the demolition. The current rule, therefore, has the effect of
preventing or delaying the demolition of run-down vacant buildings that
are a danger to the public health and safety. For this reason, and
because the removal of vacant, dilapidated housing that is clearly not
occupiable does not diminish the available useful supply of lower
income housing, the 12-month period would be reduced to three months
(see Sec. 43.101(a)(3)).

Overnight Homeless Shelters and Other Public Facilities

Section 43.101(b) describes the circumstances under which lower
income housing would be considered to have been ``converted'' and,
therefore, to trigger the requirements of the regulations in this part.
Under the current policy (applicable to the CDBG Program), changing
lower income housing into an overnight emergency shelter constitutes
``conversion,'' even if the ``market rent'' of the shelter housing upon
completion of the project does not exceed the Section 8 FMR. (To date,
most overnight shelters have been developed from commercial or special
purpose space, rather than existing housing, and, therefore, have not
triggered a replacement requirement.)
The existing policy with regard to emergency shelters reflects an
earlier HUD view that because the post-project use by the tenants of
such facilities is temporary, the change from a permanent use
constituted conversion. Questions have been raised about this policy
and the policy applicable to changing lower income housing into nursing
homes, battered spouse shelters, halfway houses, group homes and
transitional housing. The Department has concluded that such facilities
and emergency overnight shelters may contribute to the supply of
available lower income housing, and changing conventional housing into
such a use does not necessarily trigger a replacement requirement
(unless the post-project ``market rent'' exceeds the applicable Section
8 FMR). In other words, the Department would consider the physical
structure, rather than whether the tenants are permitted to remain for
only a temporary period of time and must vacate to permit use by other
tenants.

Owner-Occupied Units

The requirements of a Plan apply to owner-occupied, as well as
tenant-occupied, housing. Displaced owner-occupants who meet the
criteria of a ``displaced person'' (defined in Sec. 43.11) are eligible
for relocation assistance under the regulations in part 43. Owner-
occupied lower income housing that is demolished must be replaced. (The
unit is lower income housing if its market rent, as determined by
someone who is familiar with local real estate values, does not exceed
the applicable FMR.)
However, a unit that is owned and occupied by the same person
before and after assisted rehabilitation would not be considered to
have been ``converted,'' regardless of its post-project market rent
(see Sec. 43.101(c)(2)(i)). Nor would any unit that, upon completion of
the project, is owned and occupied by a lower income person (see
Sec. 43.101(c)(2)(ii)) be considered to be converted.

HOME-Assisted Rental Housing

As described in Sec. 43.101(c)(2)(iii), a unit that, upon
completion of the rehabilitation, meets the HOME affordability criteria
at Sec. 92.252 would not be considered to have been converted, and,
therefore, the rehabilitation would not trigger the requirements of the
regulations in this part. (Persons displaced by rehabilitation for an
assisted project are eligible for assistance under the Uniform
Relocation Act.)

Equity and Consistency in Relocation Assistance Requirements

The implementation of relocation assistance requirements in the
CDBG and HOME Programs poses a special challenge for recipients. In
significant part, this is because of differences between the
requirements of the URA (and the government-wide implementing rule at
49 CFR part 24) and the requirements for a Plan established under
section 104(d) of the 1974 Act. The CDBG and HOME programs are subject
to both the Plan and the URA, each of which provides for comprehensive
relocation assistance to displaced families and individuals. HUD does
not have the authority to amend URA regulatory policies in 49 CFR part
24 to reflect circumstances unique to HUD programs. In addition,
resolution of statutory differences would require legislative change.
However, a recipient can partially address existing inconsistencies
through its authority to adopt an Optional Relocation Policy under 24
CFR 570.488(d), 570.606(d), or 92.353(d). HUD encourages recipients to
consider this possibility. In particular, recipients may wish to
consider adopting a policy that will ensure the same level of means-
tested rental assistance to all families and individuals who are
displaced as a direct result of rehabilitation, demolition,
acquisition, or conversion for an assisted project. Currently, only
families and individuals displaced by conversion or demolition are
covered by the section 104(d) relocation assistance requirements of a
Plan.
Some, but not all, housing rehabilitation results in conversion.
Most conversion results when the pre-rehabilitation market rent of the
unit does not exceed the Section 8 FMR, but the post-rehabilitation
market rent does and there is no project-based subsidy or other
provision to reduce the actual rent to the Section 8 FMR. Accordingly,
the rehabilitation of a multifamily building may result in the
conversion of some units, but not others. It is, in fact, possible that
a very low-income family displaced by the rehabilitation of lower
income multifamily housing may not qualify for assistance under the
Plan (because the post-rehabilitation market rent does not exceed the
Section 8 FMR--thereby limiting the person to less generous URA
assistance), while a family with a higher income (but still a lower
income family) displaced from lower income housing in the same building
may receive the more generous section 104(d) relocation assistance
under the Plan (because the post-rehabilitation market rent for the
family's more desirable unit exceeds the Section 8 FMR).
Providing different levels of assistance to families in essentially
similar circumstances neither would be fair nor would promote
successful programs. Recipients can address this inequity by adopting
an Optional Relocation Program Policy that provides the same levels of
assistance to all families displaced by rehabilitation, demolition,
acquisition, or conversion for an assisted project.

Standards for Computing Rental or Purchase Assistance

The level of rental or purchase assistance to be provided to a
person (family or individual) under the Plan depends on the person's
total income and the portion of that income that the person can be
expected to contribute toward the person's monthly housing cost (rent
and utilities) if the person were to rent a comparable replacement
dwelling.
Part 43 would allow recipients to establish their own reasonable
standards for computing the monthly gross income (defined in Sec. 43.5)
of a household. This policy increases the likelihood that a recipient
can adopt standards consistent with the character of its program and
its administrative capacity. The recipient may, if it chooses,
determine the total income of a displaced person in accordance with the
standards for the Section 8 Program (see 24 CFR 813.107), or it may
follow the standards it currently uses to compute URA rental or
purchase assistance.
Part 43 would also permit a recipient to establish its own
reasonable standards for determining the amount that a person must
contribute toward the cost of renting a dwelling. The required
contribution (described in Sec. 42.213(b)(2)) could not, however,
exceed 30% of the occupant's monthly gross income, unless the occupant
is a dependent. Assistance to a dependent person may be based on the
monthly housing cost for the displacement dwelling.
The flexibility provided by the proposed rule would enable the
recipient to establish monthly rental subsidies that are: (1) Equal to
those under the URA regulations; (2) the same as the initial monthly
subsidy under the Section 8 program; or (3) at a level between the URA
and Section 8 standards. The latter situation would occur, for example,
if the recipient established a standard that would provide one or more,
but not all, of the Section 8 adjustments to income (e.g., adjustment
for dependents).
Unlike Section 8 housing program subsidies, relocation rental
subsidies are not adjusted each year (e.g., to reflect changes in
income or medical expenses). Accordingly, this proposed rule would not
require recipients to adopt all of the Section 8 standards for
determining gross income or for making adjustments to income when
determining relocation payments. Regardless of the standards adopted,
however, the standards must ensure equal assistance for each class of
occupants.

Standards for Moving Expense and Dislocation Allowances

A displaced person who chooses to receive relocation assistance at
section 104(d) levels may elect to accept a ``moving expense and
dislocation allowance'' as an alternative to a payment for actual
reasonable moving and related expenses. Section 43.211(b) would allow a
recipient to establish the schedule of moving expense and dislocation
allowances that it believes is appropriate to the recipient's
jurisdiction.
The allowances would have to take into account the number of rooms
in the displacement dwelling, whether the displaced person owns and
must move the furniture, and the types of expenses described in
Sec. 43.211. Separate schedules may be established for apartment units
and one-unit buildings. A recipient could, but would not be required
to, establish allowances equal to the URA allowances published
periodically by the Federal Highway Administration (FHWA). The
Department believes the flexibility provided by this policy is
appropriate because the FHWA-established URA allowances are State-wide
and, for a specific community, may be at substantial variance with
local transportation and labor costs.

CDBG-Funded Code Enforcement

On February 3, 1992, HUD issued a proposed rule entitled,
``Community Development Block Grant Funded Code Enforcement'' (57 FR
3971). The rule proposed to amend 24 CFR part 570 to apply the Plan
requirements to the conversion or demolition of lower income housing
that resulted from CDBG-funded code enforcement activity. Under the
proposal such housing would have to be replaced, and lower income
persons displaced by the conversion or by demolition that resulted from
CDBG-funded code enforcement would be entitled to relocation assistance
at the section 104(d) levels, even if the actual conversion or
demolition was not CDBG-assisted.
HUD specifically invited comment on the public's view of the
consequences of this proposal (e.g., would localities shift to local
funding of code enforcement or would there be a reduction in code
enforcement). A total of 22 comments were received. All opposed
adoption of the proposed requirements. Concerns cited included the
increased cost and a fear that the increased cost would lead to a
reduction in code enforcement and greater deterioration in the supply
of housing that is available to lower income persons.
HUD's decision on whether to apply the Plan requirements to CDBG-
funded code enforcement activity proposed in the February 3, 1992,
Federal Register notice (57 FR 3971) will be included in the final rule
published in connection with this rulemaking process. HUD will consider
any additional public comments on this proposal that are submitted to
the Rules Docket Clerk by the deadline for comments on this proposed
rule.
Because there are two separate Plan components that can have a
significant impact on a project--the relocation assistance requirements
and the one-for-one lower income housing replacement provisions--
commenters are asked to address specifically each of these two
components. For example, a commenter may support the application of one
component to a project, but not the other.

Effective Date of Plan Requirements Under HOME Program

The requirement to implement a Plan under the HOME Program becomes
effective on the date the participating jurisdiction signs the required
certification in its FY 1994 Comprehensive Housing Affordability
Strategy. In accordance with Section 223 of the 1992 Act, the Plan
requirements will apply to all obligations (commitments) of HOME funds
made on or after that date. This would include any unobligated 1992 or
1993 HOME funds.

Other Matters

Public Reporting Burden

The information collection requirements contained in this proposed
rule have been submitted to the Office of Management and Budget under
the Paperwork Reduction Act of 1980 (44 U.S.C. 3501-3520). The
Department has determined that the following provisions contain
information collection requirements.

Tabulation of Annual Reporting Burden; Proposed Rule--Residential Antidisplacement and Relocation Assistance
Plan
[24 CFR Part 43]
----------------------------------------------------------------------------------------------------------------
Number of
Section of responses Total
Description of information 24 CFR Number of per annual Hours per Total OMB 2506-
collection affected respondents respondent responses response hours

----------------------------------------------------------------------------------------------------------------
Requirements of Plan........... 43.1 435 1 435 .5 218 0102
Appeals........................ 43.45 50 1 50 20 1,000 0102
Disclosure and submission
requirements.................. 43.105 200 1 200 20 4,000 0102
Exception to housing
replacement requirements...... 43.107 50 1 50 40 2,000 0102
Total burden............... .......... ........... .......... ......... ......... 7,218 .........
----------------------------------------------------------------------------------------------------------------

Regulatory Flexibility Act

The Secretary, in accordance with the Regulatory Flexibility Act (5
U.S.C. 605(b)), has reviewed this proposed rule before publication and
by approving it certifies that this proposed rule does not have a
significant economic impact on a substantial number of small entities.
The proposed rule implements a residential antidisplacement and
relocation assistance plan for the HOME program, as required by section
220(b) of the Housing and Community Development Act of 1992, and makes
conforming amendments to similar requirements applicable to the
Community Development Block Grant program.

Environmental Review

A Finding of No Significant Impact with respect to the environment
has been made in accordance with HUD regulations at 24 CFR Part 50 that
implement section 102(2)(C) of the National Environmental Policy Act of
1969. The finding of No Significant Impact 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.

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 proposed rule have federalism implications, and are
subject to review under the order. Specifically, the proposed rule
implements a residential antidisplacement and relocation assistance
plan for the HOME program that is comparable to the requirements
applicable to the Community Development Block Grant (CDBG) programs. As
required by section 220(b) of the Housing and Community Development Act
of 1992, a participating jurisdiction under the HOME program must
certify that it is following such a plan.
In order to clarify the requirements applicable to both the HOME
and CDBG programs, the proposed rule also would make conforming
amendments to the existing CDBG regulations. While the proposed rule
would have federalism impacts, a more comprehensive review under the
Executive Order 12612 is not required because the implementation of the
statute leaves little discretion with the Department to lessen these
impacts.

Executive Order 12606, the Family

The General Counsel, as the Designated Official under Executive
Order 12606, The Family, has determined that this proposed 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 residential antidisplacement and relocation
assistance plan that would be implemented under this proposed rule
would benefit families and individuals affected by projects funded
under the HOME program, by further protecting their access to housing.
This additional protection would provide an alternative to the
assistance currently available to these families and individuals under
the URA. Accordingly, since the impact on the family is beneficial, no
further review is considered necessary.

Regulatory Agenda

This proposed rule was listed as Item No. 1518 in the Department's
Semiannual Agenda of Regulations published on April 25, 1994 (59 FR
20424, 20431), in accordance with Executive Order 12866 and the
Regulatory Flexibility Act.

List of Subjects

24 CFR Part 43

Grant programs--housing and community development, Low and moderate
income housing, Manufactured homes, Relocation assistance, Rent
subsidies, Reporting and recordkeeping requirements.

24 CFR Part 92

Administrative practice and procedure, Grant programs--housing and
community development, Grant programs--Indians, Indians, Low and
moderate income housing, Manufactured homes, Rent subsidies, Reporting
and recordkeeping requirements.

24 CFR Part 570

Administrative practice and procedure, American Samoa, Community
development block grants, Grant programs--education, Grant programs--
housing and community development, Guam, Indians, Lead poisoning, Loan
programs--housing and community development, Low and moderate income
housing, New communities, Northern Mariana Islands, Pacific Islands
Trust Territory, Pockets of poverty, Puerto Rico, Reporting and
recordkeeping requirements, Small cities, Student aid, Virgin Islands.

Accordingly, the Department proposes to amend title 24 of the Code
of Federal Regulations by adding a new part 43, consisting of
Secs. 43.1 through 43.215, and by amending parts 92 and 570, as
follows:
1. Part 43 would be added to read as follows:

PART 43--RESIDENTIAL ANTIDISPLACEMENT AND RELOCATION ASSISTANCE
PLAN

Subpart A--General Provisions

Sec.
43.1 Requirements of plan.
43.5 Definitions.
43.7 Comparable replacement dwelling--defined.
43.9 Decent, safe, and sanitary dwelling--defined.
43.11 Displaced person--defined.
43.14 Project--defined.
43.20 Recipient certification, HUD monitoring, and corrective
action.
43.25 No duplication of payments.
43.30 Waivers and time extensions.
43.35 General requirements governing payments.
43.40 Relocation payments not considered as income.
43.45 Appeals.
43.50 Recordkeeping.

Subpart B--One-For-One Replacement of Lower Income Housing

43.101 Housing that must be replaced.
43.103 Housing that meets replacement requirements.
43.105 Disclosure and submission requirements.
43.107 Exception to housing replacement requirements.

Subpart C--Assistance to Site Occupants

43.201 Introduction.
43.203 Summary of assistance.
43.205 Timely notices.
43.207 Other advisory services.
43.209 Temporary relocation and moves within complex.
43.211 Payment for moving and related expenses.
43.213 Rental and purchase assistance.
43.215 Special requirements covering manufactured homes.

Authority: 42 U.S.C. 3535(d), 5301-5320, and 12701-12839.

Subpart A--General Provisions

Sec. 43.1 Requirements of plan.

In order to obtain HUD financial assistance, as defined in
Sec. 43.5, a recipient must certify that it is following a residential
antidisplacement and relocation assistance plan (the Plan). (The Plan
does not have to be submitted to HUD.) The regulations in this part
describe the requirements of the Plan. The Plan has three components:
(a) Minimize displacement. Consistent with program goals and
objectives, a recipient shall assure that it will take all reasonable
steps to minimize the displacement of families and individuals from
their homes and neighborhoods as a result of a project (defined in
Sec. 43.14). The recipient shall identify in the Plan the steps that it
will take to carry out this policy.
(b) One-for-one replacement of lower income housing. The recipient
must replace occupied and vacant occupiable lower income housing
(defined in Sec. 43.5) that is converted to a use other than lower
income housing or is demolished for a project. The replacement
requirements are described in subpart B of this part.
(c) Relocation assistance. The recipient must provide relocation
assistance to lower income persons displaced as a direct result of the
conversion of lower income housing or the demolition of any housing for
a project. The relocation assistance requirements are described in
subpart C of this part.

Sec. 43.5 Definitions.

Comparable Replacement Dwelling means, for relocation purposes
under this part, a dwelling that satisfies the requirements in
Sec. 43.7.
Decent, safe and sanitary dwelling means a dwelling that meets the
requirements in Sec. 43.9.
Displaced person means a person as defined in Sec. 43.11.
Dwelling means the place of permanent or customary and usual
residence of a person, according to local custom or law, including a
single-family house; a single family unit in a two-family, multifamily,
or multi-purpose property; a unit of a condominium or cooperative
housing project; a non-housekeeping unit; a manufactured housing unit;
or any other residential unit.
Fair market rent (FMR) means the fair market rent as that term is
defined in 24 CFR 882.102, in the regulations for the Section 8 Housing
Assistance Payments Program--Existing Housing.
HA or Housing Agency means any State, county, municipal, or other
governmental entity or public body (or its agency or instrumentality)
that is authorized to engage in or assist in the development or
operation of lower income housing. The term includes PHA (Public
Housing Agency) and IHA (Indian Housing Authority).
HUD means the Department of Housing and Urban Development. ``HUD
Field Office'' means the HUD Office with responsibility for
administering the applicable requirements for the recipient's program.
(The HUD office administering the relocation regulations in this part
may not be the HUD office administering the one-for-one replacement
requirements in subpart B of this part.)
HUD financial assistance means a grant, loan, contribution, or loan
guarantee provided under any of the following HUD-assisted programs:
(1) Community Development Block Grant (CDBG) Entitlement Program
(24 CFR part 570);
(2) HOME Program (24 CFR part 92). However, HOME for Indians
(subpart M of 24 CFR part 92) and HOME for Insular Areas (24 CFR 92.64)
are excluded.
(3) State CDBG Program (24 CFR part 570, subpart I).
(4) CDBG HUD-administered Small Cities Program (24 CFR 570.426,
570.430, or 570.435(d)).
(5) CDBG Section 108 Loan Guarantee Program (24 CFR part 570,
subpart M).
(6) Urban Development Action Grant (UDAG) Program (24 CFR part 570,
subpart G).
Lower income housing means renter-occupied, owner-occupied, or
vacant housing for which either:
(1) The market rent plus utility costs do not exceed the applicable
Fair Market Rent (FMR) for existing housing established under 24 CFR
part 888 for the recipient jurisdiction (community-wide exception FMR,
where applicable); or
(2) The market rent plus utility costs exceed the applicable
Section 8 FMR, but there is a written agreement between the owner and a
governmental body committing the owner for a substantial period of time
to a monthly housing cost charge to the occupant that does not exceed
the applicable Section 8 FMR. (To qualify as lower income replacement
housing, that period must be at least 10 years. The commitment may be
based on a project-based subsidy that has a term, including renewals,
that is pre-funded or subject only to congressional appropriations.)
Lower income person means a person having an income equal to or
less than the Section 8 low income limit established by HUD. The method
for determining income under the Section 8 Housing Assistance Payments
Program need not be used for this purpose.
Market rent means the rent that a property would most probably
command in an open market, whether it is renter-occupied, owner-
occupied or vacant. For purposes of this part, it shall be determined
on the basis of a review of rents currently paid, and rents asked, for
comparable space, carried out by a person familiar with real estate
values in the area.
Monthly gross income means \1/12\ of the total income of all adult
members (at least 18 years old or older) of the household that is
anticipated to be received for a 12-month period, as determined by the
recipient. Scholarship aid used to pay costs of tuition, fees, books,
equipment, supplies or transportation of student is excluded from this
calculation. The recipient may determine this income in accordance with
the standards for the Section 8 Existing Housing Program (described at
24 CFR 813.102), or it may establish its own standards, consistent with
applicable law and this part. If the recipient adopts its own
standards, it must do so in a written policy that establishes the same
standards for each class of occupants.
Monthly housing cost means the actual monthly contract rent, plus
an allowance for the reasonable use of required utility services not
included in the contract rent. The allowance shall equal \1/12\ of the
estimated cost of such utilities for the next 12 months. Required
utility services include those necessary for heat, cooking, lighting,
water and sewer, and air conditioning (if required by climatic
conditions). Telephone and trash removal services are not covered.
Neighborhood means a geographic location designated in
comprehensive plans, ordinances, or other local documents as a
neighborhood, village, or similar geographical designation that is
within the boundary, but does not encompass the entire area, of the
unit of general local government. However, if the unit of general local
government has a population under 25,000, the neighborhood may, but
need not, encompass the entire area of the unit of general local
government.
Person means all the occupants of a dwelling. The occupants may be
a single family, one individual living alone, two or more families
living together, or any other group of related or unrelated occupants
who share living arrangements. However, on a case-by-case basis, for
good cause, the recipient may determine that the occupants of the
dwelling constitute two or more persons with separate entitlements to
relocation assistance, if such determination does not reduce the level
of assistance to which any individual would be entitled if all
occupants shared one entitlement.
Project means one or more activities that meet the requirements of
Sec. 43.14.
Recipient means: (1) The ``grantee'' under the CDBG Entitlement
Program, CDBG HUD-administered Small Cities Program, and Urban
Development Action Grant (UDAG) Program.
(2) The ``State recipient'' under the State CDBG Program.
(3) The ``public entity'' or ``designated public agency'' under the
Section 108 Loan Guarantee Program.
(4) The ``participating jurisdiction'' under the HOME Program,
except as provided in paragraph (5) of this definition.
(5) The ``State recipient'' under a HOME Program when the State
distributes HOME funds to a unit of general local government to carry
out the program.
Recognition of eligibility. See the definition in Sec. 43.201(c).
Section 104(d) means section 104(d) of the Housing and Community
Development Act of 1974, 42 U.S.C. 5304(d).
Standard condition has the meaning established in the recipient's
Comprehensive Housing Affordability Strategy (CHAS) (24 CFR part 91).
The term is defined by the recipient. For State funded programs,
however, the State may establish a separate definition for sub-State
areas and regions.
State has the meaning set forth in the applicable program
regulation.
Substandard condition but suitable for rehabilitation has the
meaning established in the recipient's Comprehensive Housing
Affordability Strategy (CHAS) (24 CFR part 91). The term is defined by
the recipient. For State funded programs, however, the State may
establish a separate definition for sub-State areas and regions.
Tenant means a person who has the lawful temporary use and
occupancy of real property owned by another.
URA means the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970, 42 U.S.C. 4601-4655.
Vacant occupiable housing. See the definition in Sec. 43.101(b).

Sec. 43.7 Comparable replacement dwelling--defined.

For relocation purposes, a dwelling is a ``comparable replacement
dwelling'' if it is:
(a) Decent, safe, and sanitary, as defined in Sec. 43.9;
(b) Functionally equivalent to the displacement dwelling. The
replacement dwelling must provide the same utility and be capable of
contributing to a comparable style of living. A comparable replacement
dwelling need not possess every feature of the displacement dwelling,
but the principal features must be present. Reasonable trade-offs for
specific features (e.g., basement space for garage space) may be
acceptable provided the unit is equal to or better than the
displacement dwelling. Generally, a comparable replacement dwelling
must contain, at a minimum, approximately as much space as, and must be
adaptable to the same range of purposes as, the displacement dwelling.
When the displacement dwelling is dilapidated, however, a smaller
decent, safe and sanitary replacement dwelling may be determined to be
functionally equivalent;
(c) In an area not subject to unreasonable adverse environmental
conditions from either natural or human sources;
(d) In a location that is generally not less desirable than the
location of the displacement dwelling with respect to public utilities
and commercial and public facilities, and is reasonably accessible to
the person's place of employment;
(e) On a site with normal site improvements, including customary
landscaping. A site for single-family housing shall be typical in size
for residential development. The site need not include special
improvements such as outbuildings, swimming pools, or greenhouses;
(f) Currently available to the person. A dwelling is considered
available if:
(1) It is actually on the market;
(2) The person is informed of its location;
(3) The person has sufficient time to negotiate and enter into a
purchase agreement or lease for it; and
(4) Subject to reasonable safeguards, the person is assured of
receiving any payments required under this part in sufficient time to
complete the purchase or lease of the dwelling; and
(g) Within the financial means of the person. A displaced person's
contribution toward the cost of renting a comparable replacement
dwelling shall not exceed the amount established under
Sec. 43.213(b)(2).

Sec. 43.9 Decent, safe, and sanitary dwelling--defined.

(a) Definition--generally. A dwelling is ``decent, safe, and
sanitary'' for purposes of this part if it:
(1) Meets local housing and occupancy codes and the standards
listed in paragraph (b) of this section; or
(2) Is in compliance with the applicable HUD housing quality
standards (HQS), if the dwelling is occupied in connection with a
program that is subject to those HQS (e.g., 24 CFR 882.109).
(b) Standards. The dwelling shall: (1) Be adequate in size with
respect to the number of rooms and area of living space needed to
accommodate the person. There must be at least one bedroom or living/
bedroom for each two people in the household;
(2) Be structurally sound, weathertight, and in good repair;
(3) Contain a safe electrical wiring system adequate for lighting
and other devices;
(4) Have, and be capable of maintaining, a healthy thermal
environment. The heating/cooling system must be safe;
(5) Have adequate sanitary facilities in a separate, well-lighted
and ventilated bathroom that provides privacy to the user. The
facilities are acceptable if the bathroom contains a fixed basin with a
sink trap and hot and cold running water, a bathtub or shower stall
with hot and cold running water, and a flush water closet, all in good
working order and properly connected to a sewage drainage system. The
bathroom must be in the dwelling, unless the dwelling is single-room
occupancy (SRO) housing;
(6) Contain a kitchen area with a fully usable sink, properly
connected to potable hot and cold water and to a sewage drainage
system, and adequate space and utility service connections for a stove
and refrigerator, unless the dwelling is not a housekeeping dwelling;
(7) Contain unobstructed egress to safe, open space at ground
level;
(8) For a person with disabilities, be free of any barriers that
would preclude reasonable ingress, egress, or use of the dwelling by
such person. This requirement will be met if the dwelling meets
pertinent standards prescribed by the American National Standards
Institute, Inc. (ANSI A117.1; see Appendix II to subchapter A of 24
CFR) or the Uniform Federal Accessibility Standards (UFAS) (see
Appendix A to 24 CFR part 40). This requirement will also be satisfied
if the displaced person elects to relocate to a dwelling that he or she
selects (a dwelling not offered by the recipient) and the displaced
person determines that he or she has reasonable ingress, egress, and
use of the dwelling; and
(9) Comply with the lead-based paint requirements of 24 CFR part
35.
(c) Exceptions. HUD may approve variations, based on local climatic
or geographic conditions, from the standards in this section.

Sec. 43.11 Displaced person--defined.

(a) Definition--generally. The term ``displaced person'' means any
lower income person who moves from real property, or moves his or her
personal property from real property, permanently and involuntarily, as
a direct result of the conversion of occupied or vacant occupiable
lower income housing or of the demolition of any dwelling, when the
conversion or demolition are for a project (as defined in Sec. 43.14).
(b) Persons who qualify. The term ``displaced person'' includes,
but is not limited to:
(1) A person who moves permanently from the real property after the
property owner (or person in control of the site) issues a vacate
notice to the person, or refuses to renew an expiring lease in order to
evade the responsibility to provide relocation assistance, if the move
occurs on or after:
(i) The date the applicant submits the request for assistance for
the project that is later approved, if the applicant has site control;
or
(ii) The date the applicant obtains site control, if that occurs
after the request for assistance;
(2) Any person, including a person who moves before the date
described in paragraph (b)(1) of this section, if either HUD or the
recipient (or the State, if a State funds the recipient) determines
that the displacement occurred as a direct result of conversion or
demolition for the project;
(3)(i) A tenant-occupant of a dwelling who moves permanently from
the building/complex on or after the date of recognition of eligibility
(defined in Sec. 43.201(c)), 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. Reasonable terms and conditions shall
include a lease term of at least 1 year (unless the tenant agrees to a
shorter term) at a monthly housing cost that does not exceed the
greater of:
(A) The tenant's rent before recognition of eligibility (as defined
in Sec. 43.201(c)) and estimated utility costs; or
(B) The tenant's contribution under the recipient's financial means
standards (described in Sec. 43.213(b)(2)).
(ii) If the initial monthly housing cost is at or near the maximum
permissible cost, there must be a reasonable basis for concluding at
the time of the notice, that future rent increases will be reasonable.
(4) A tenant-occupant of a dwelling who is required to relocate
temporarily for the project, but does not return to the building/
complex, if either:
(i) 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, increased housing costs, and incidental expenses, such as
telephone and cable television reinstallation charges); or
(ii) Other conditions of the temporary relocation are not
reasonable; and
(5) A tenant-occupant of a dwelling who moves from the building/
complex permanently after he or she has been required to move to
another unit in the building/complex, if either:
(i) The tenant is not offered reimbursement for all reasonable out-
of-pocket expenses incurred in connection with the move, or
(ii) Other conditions of the move are not reasonable.
(c) Persons not eligible. Notwithstanding the provisions of
paragraphs (a) or (b) of this section, a person does not qualify as a
displaced person, and is not entitled to relocation assistance, if any
of the following applies:
(1) 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 recipient determines that the eviction was not
undertaken for the purpose of evading the obligation to provide
relocation assistance. The effective date of any termination or refusal
to renew the lease or occupancy agreement must be preceded by at least
30 days written notice to the tenant specifying the grounds for the
action;
(2) The person has no legal right to occupy the property under
State or local law (e.g., squatter);
(3) The recipient determines that the person occupied the property
for the purpose of obtaining relocation assistance and HUD concurs in
that determination;
(4) The person moves into the property after the request for
project assistance but, 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 as a result of the project;
(5) The person is an owner-occupant of the property who moves as a
result of voluntary conversion or demolition (however, a tenant
displaced as a direct result of the conversion or demolition is
eligible);
(6) The person, after receiving a notice of eligibility for
relocation assistance, is notified in writing that he or she will not
be displaced for the project. Such notice shall not be issued unless
the person has not moved and the recipient agrees to reimburse the
person for any expenses incurred to satisfy any binding contractual
relocation obligations entered into after the effective date of the
notice of eligibility for relocation assistance; or
(7) The recipient determines that the person was not displaced as a
direct result of the conversion or demolition, and HUD concurs in that
determination.
(d) When in doubt. The recipient may, at any time, ask HUD to
determine whether a specific displacement is or would be covered by
this section.

Sec. 43.14 Project--defined.

(a) Definition--generally. The term ``project'' means one or more
activities paid for in whole or in part with HUD financial assistance,
as described in this paragraph. Two or more activities that are
integrally related, each essential to the other, are considered one
project, whether or not all of the component activities receive HUD
financial assistance. Conversion or demolition that is not paid for
with HUD financial assistance will trigger the requirements of this
part if it is part of a project that includes an assisted activity.
(b) Criteria. In determining whether two or more activities (e.g.,
real property acquisition, rehabilitation, demolition, construction, or
provision of services) are part of a single project, consideration
shall be given to the extent to which these activities share the same:
(1) Location; i.e., whether the activities are located on the same
site (e.g., one tract or contiguous tracts of real property in the same
or related ownership) after project completion;
(2) Developer/owner; i.e., whether the activities are carried out
by, or on behalf of, a single entity or closely related entities;
(3) Timeframe; i.e., whether the individual activities take place
within a reasonable time frame of each other; and
(4) Objective; i.e., whether the activities are interdependent.
(c) Examples of determinations.-- (1) Rehabilitation--example. A
contract for the rehabilitation of a multifamily building is executed.
HUD financial assistance is used to pay part of the cost of
rehabilitating some, but not all, of the units in the building. Non-
Federal financing is used to pay for the rehabilitation of the others.
Determination: All the rehabilitation is part of a single project. All
``converted'' units in the building must be replaced, and any persons
displaced by the conversion are eligible for relocation assistance.
(2) Construction--example. Local funds are used to acquire and
clear a site for a new housing complex. HUD funds are used to partially
finance the construction of the complex. Determination: The acquisition
of the site, demolition of the improvements, and construction of the
housing complex comprise a single project. All converted units on the
site must be replaced and all persons occupying the site are
``displaced persons'' under the regulations in this part.
(3) Acquisition--example. A number of contiguous parcels are
acquired to assemble a site for construction of a new building. HUD
financial assistance is used to pay part of the cost of acquiring one
parcel. Non-Federal funds are used to purchase the other parcels and
demolish the improvements. Determination: The acquisition of each of
the parcels in the site, the demolition of the improvements and
construction of the new building are part of a single project. The
demolition of lower income housing on any of the parcels triggers the
replacement requirements and any person displaced from the site is
eligible for relocation assistance.

Sec. 43.20 Recipient certification, HUD monitoring, and corrective
action.

(a) Certification. (1) Before an award of HUD financial assistance
is made, the recipient must certify that it is following a Residential
Antidisplacement and Relocation Assistance Plan that complies with the
regulations in this part. (The certification for the HOME Program is
made as part of the submission of the Comprehensive Housing
Affordability Strategy (CHAS) in accordance with the CHAS regulation in
24 CFR 91.21.) If the recipient provides project funds to a third
party, the recipient remains responsible for ensuring compliance with
this part, notwithstanding the third party's contractual obligation to
the recipient to comply.
(2) A recipient certification will be satisfactory to HUD, unless
HUD has determined that:
(i) The recipient has not complied with the requirements of this
part; or
(ii) There is evidence, not directly involving the recipient's past
compliance with this part, that tends to challenge in a substantial
manner the recipient's certification that it will comply with this
part. If HUD makes such determination, HUD may require the recipient to
submit further assurances before approving the program or project.
(b) Monitoring and corrective action. HUD will monitor the
recipient's program or project to determine if it has been carried out
in compliance with the certification and requirements contained in this
part. If HUD finds that the recipient has failed to comply with a
requirement, the recipient will be provided an opportunity to contest
the finding in accordance with the applicable program regulations (see
24 CFR parts 92 and 570). If the recipient is unsuccessful in
contesting the finding, the recipient shall undertake the corrective or
remedial action specified by HUD.
(1) Payment and housing deficiencies. Whenever HUD determines that
a person did not receive the full amount of a payment required under
this part, the recipient shall ensure that the correct payment, as
specified by HUD, is made promptly. Whenever a person occupies
inadequate housing because required payments, housing referrals,
property inspection, or other services were not offered in accordance
with the requirements of this part, the recipient shall promptly take
whatever steps are appropriate, and shall bear whatever reasonable
costs are necessary, to:
(i) Enable the person to relocate to a comparable replacement
dwelling. If the person chooses to relocate to other decent, safe, and
sanitary housing, the amount of assistance may be limited to the amount
necessary to obtain a comparable replacement dwelling; or
(ii) Ensure the repair or rehabilitation of the dwelling occupied
by the person to the extent necessary to correct deficiencies that
would not be present if the recipient had met its obligations under
this part. The recipient is not required to remedy housing deficiencies
that were caused through the fault or neglect of the person occupying
the dwelling. A recipient may use its code enforcement powers or other
programs to ensure that the owner of a tenant-occupied dwelling makes
the repairs necessary to correct housing deficiencies.
(2) Fair housing and equal opportunity violations. HUD's Office/
Division of Fair Housing and Equal Opportunity will determine whether
failure to meet any of the requirements in this part violates statutory
or regulatory civil rights-related program requirements or civil rights
law.
(c) Sanctions. If the recipient does not take and complete required
corrective action in a timely manner, HUD may apply sanctions in
accordance with applicable program regulations (24 CFR parts 92 and
570). Examples of sanctions are the suspension or termination of all
HUD financial assistance for a project and the recovery of funds
expended for activities not carried out in accordance with this part.
Remedial actions may also include referral to the Attorney General with
a recommendation for civil action, including mandatory or injunctive
relief.
(d) Fraud, waste and mismanagement. The recipient shall take
appropriate measures to carry out these policies in a manner that
minimizes fraud, waste, and mismanagement. Recipient officials shall
report instances of fraud and waste to the HUD Regional Inspector
General.

Sec. 43.25 No duplication of payments.

No person shall be provided any compensation under the regulations
in this part that has substantially the same purpose and effect as
other compensation the person received under Federal, State, or local
law. The recipient need not conduct an exhaustive search for
duplicative payments, but must avoid making a duplicative payment based
on the recipient's current knowledge.

Sec. 43.30 Waivers and time extensions.

(a) Time extension--granting. On a case-by-case basis, for good
cause the recipient shall extend any time limit specified for the
following actions:
(1) The filing of a claim or an appeal; or
(2) Purchasing, renting, or occupying a replacement dwelling in
order to qualify for a replacement housing payment.
(b) Time extension--denial. If the recipient denies a person's
request for an extension of the time limits, the recipient shall notify
the person of the basis for the recipient's determination and shall
advise the person of the procedures for appealing the determination.
The appeal procedures are set out in Sec. 43.45.
(c) Waiver by person. A person may waive his or her right to
assistance by refusing to file an application or claim for the
assistance, or by signing a written waiver in a format acceptable to
HUD. A written waiver must describe the specific assistance to be
waived, and must cite the law or regulations under which the assistance
is available.
(d) Waiver by HUD. On a case-by-case basis, upon a finding of good
cause HUD may waive any requirement of this part that is not required
by law. A recipient's request for a waiver and justification shall be
submitted in writing to HUD. The HUD Field Office will forward the
request, with its recommendation and comments, to HUD Headquarters. HUD
will publish a notice in the Federal Register informing the public of
the waiver of any requirement of subpart B of this part. The notice
will contain all relevant information concerning the waiver. (An
exception granted by the HUD Field Office under Sec. 43.107 is not
considered a waiver and will not be published in the Federal Register.)

Sec. 43.35 General requirements governing payments.

(a) Documentation.--(1) General. A claim for a payment must be
supported by reasonable documentation of expenses (e.g., bids,
estimates, bills, certified prices, appraisals) or income earned (e.g.,
tax returns, certified financial statements, employer income
verification). A person must be provided reasonable assistance
necessary to complete and file any required claim for payment.
(2) Self-moves. If a person elects to take full responsibility for
the relocation, the recipient may make a payment for the person's
moving and related expenses in an amount not to exceed the lowest
acceptable bid or estimate obtained by the recipient or prepared by
qualified recipient staff, without requiring additional documentation
from the claimant. Unless the move is low-cost or uncomplicated, the
recipient shall obtain at least two bids or estimates. Because of the
savings that may be possible through a self-move, the recipient may
negotiate a payment amount below the lowest acceptable bid or estimate.
If the recipient and the claimant are unable to agree upon an amount to
cover the self-move, full documentation, as described in paragraph
(a)(1) of this section, is required.
(b) Expeditious payment. The recipient shall review each claim in
an expeditious manner. The claimant shall be notified promptly as to
any additional documentation that is required to support the claim.
Payment for a claim shall be made as soon as feasible following receipt
of sufficient documentation to support the claim.
(c) Advance payment. If a claimant demonstrates the need for an
advance relocation payment in order to avoid or reduce a hardship, the
recipient shall issue the payment, subject to such safeguards as are
appropriate to ensure that the objective of the payment is
accomplished. For example, an advance payment may be placed in escrow
or paid directly to the moving contractor, new landlord, or utility
company. The claimant may be required to enter into a contract
committing the claimant to return any amount for which the claimant is
later determined to be ineligible.
(d) Time for filing claim. All claims for a relocation payment
shall be filed with the recipient within 18 months after the date of
displacement (last day of actual move). However, the recipient shall
extend this time period for good cause.
(e) Occupants of displacement dwelling move separately. (1) If the
recipient makes a timely offer of a comparable replacement dwelling to
the occupants of the displacement dwelling, but the occupants move to
separate replacement dwellings, each occupant is entitled to a
reasonable prorated share, as determined by the recipient, of any
relocation payment(s) that would have been made if the occupants moved
together to the comparable replacement dwelling.
(2) If the recipient determines that the occupants of the
displacement dwelling constitute two or more persons (defined in
Sec. 43.5), each person has a separate entitlement to relocation
payments. However, no individual shall be provided less assistance than
would be available to the individual if all occupants shared one
entitlement.
(f) Rental assistance in installments. A cash rental assistance
payment to a displaced tenant must be disbursed in periodic
installments. A later change in the person's income or rent, or in the
condition or location of the person's housing, is not a basis for
changing the amount or duration of the cash installments issued under
this part. However, the level of tenant-based rental assistance
provided under an assisted housing program (e.g., Section 8 rental
certificate) may be changed according to changes in the person's income
or rent.
(g) Purchase of replacement dwelling. A displaced person is
considered to have met the requirement to purchase a replacement
dwelling under this part if the person purchases an interest in a
housing cooperative or mutual housing association (see Sec. 43.213(c)).
(However, a displaced owner-occupant may obtain a greater level of
assistance under the URA than under this part.)
(h) Occupancy of displacement and replacement dwellings. No person
shall be denied eligibility for a replacement housing payment solely
because the person is unable to meet the occupancy requirements set
forth in this part as a result of:
(1) A disaster, an emergency, or an imminent threat to the public
health or welfare, as determined by the President or the recipient,
occurring after the project is approved; or
(2) Another reason beyond the person's control, such as a delay in
the construction of the replacement dwelling, military reserve duty,
illness, or hospital stay, as determined by the recipient.
(i) Notice of denial of claim. If the recipient disapproves all or
part of a payment claimed or refuses to consider the claim on its
merits because of untimely filing or other grounds, the recipient shall
promptly notify the claimant in writing of the recipient's
determination, the basis for its determination, and the procedures for
appealing that determination.
(j) Set-offs from relocation payment. (1) A relocation payment
shall be paid directly to the displaced person, unless:
(i) The person consents, in writing, to the assignment of the
payment to another;
(ii) A court orders otherwise; or
(iii) The person is in arrears, as determined by a court, on rent
owed to the recipient or owner. A rental arrearage may be deducted from
a payment, provided the deduction will not prevent the displaced person
from obtaining a comparable replacement dwelling.
(2) Except as provided in paragraph (j)(1) of this section, the
recipient shall not withhold any part of a relocation payment to
satisfy any obligation of a person to a creditor.
(k) Conversion of rental assistance to purchase assistance. A
displaced person who initially rents a replacement dwelling, receives
rental assistance under this part and later purchases a replacement
dwelling is eligible to receive purchase assistance if he or she meets
the eligibility criteria for such assistance, including purchase and
occupancy within the prescribed one-year period. Any portion of the
rental assistance that has been disbursed shall be deducted from the
purchase assistance payment.
(l) Payment after death. A replacement housing payment issued under
this part is personal to the displaced person and upon his or her death
any undisbursed portion of the payment shall not be paid to heirs or
assigns, except that:
(1) The amount attributable to the displaced person's period of
actual occupancy of the replacement housing shall be paid;
(2) The full payment shall be disbursed in any case in which a
member of a displaced household dies and any other member of the
household continues to occupy a replacement dwelling; and
(3) Any portion of a replacement housing payment necessary to
satisfy the legal obligation of an estate in connection with the
selection of a replacement dwelling by or on behalf of the deceased
person shall be disbursed to the estate.

Sec. 43.40 Relocation payments not considered as income.

A relocation payment provided under this part shall not be
considered as income to the recipient for purposes of the Internal
Revenue Code.

Sec. 43.45 Appeals.

(a) Actions which may be appealed. A person may file a written
appeal with the recipient in any case in which the person believes that
the recipient has failed to:
(1) Properly determine that the person has qualified, or will
qualify upon moving, as a displaced person who is eligible for
relocation assistance;
(2) Properly determine the amount of any required payment. A
person's acceptance of a payment that is less than the full amount
claimed does not limit the person's right to appeal;
(3) Provide appropriate referrals to comparable replacement
dwellings or inspect the replacement dwelling in a timely manner; or
(4) Waive the time limit for:
(i) The filing of a claim or an appeal; or
(ii) Purchasing, renting or occupying a replacement dwelling.
(b) Time limit for initiating appeal. The recipient may set a
reasonable time limit for a person to file an appeal. The time limit
shall not be less than 60 days after the person receives written
notification of the recipient's determination on the person's claim. On
a case-by-case basis, for good cause, the recipient shall extend this
time limit.
(c) Assistance in presenting appeal. A person has a right to be
represented by legal counsel or any other representative in connection
with the appeal, at the person's own expense. If a person is unable to
prepare a written appeal without help, the recipient shall provide the
help or refer the person to an appropriate third party who will provide
the help at no cost to the person (e.g., a citizen group, tenant union,
neighborhood legal services, or urban league).
(d) Review of records by person making appeal. The recipient shall
permit a person to inspect and copy all materials pertinent to his or
her appeal, except materials that the recipient determines may not be
disclosed to the person for reasons of confidentiality. The recipient
may, however, impose reasonable conditions on the person's right to
inspect, consistent with applicable laws.
(e) Determination on appeal and notification. The recipient shall
consider a written appeal regardless of form. The official conducting
the review shall be either the head of the recipient or an authorized
designee who was not directly involved in any action appealed. The
recipient shall consider all pertinent material submitted by the person
and any other available information needed to ensure a fair review.
Promptly after receipt of all this information, the recipient shall
make a written determination on the appeal and furnish the person a
copy, along with an explanation of the basis on which the decision was
made. If the full relief requested is not granted, the recipient shall
advise the person of the right to ask for a review of the recipient's
determination, in accordance with paragraph (f) of this section.
(f) Review of recipient determination. (1) A person who is
dissatisfied with the recipient's determination on the person's appeal
may request a review of that decision. An appeal of a recipient's
decision shall be reviewed by:
(i) HUD, if the recipient is funded by HUD; or
(ii) The State, if the recipient is funded by the State.
(2) The reviewer shall provide a copy of its determination, along
with a written explanation of the basis for its decision, to the person
and the recipient. If the full relief is not granted, the person shall
be advised of the right to seek judicial review.
(g) Judicial review. Nothing in this part shall in any way preclude
or limit a person from seeking judicial review of the person's appeal
on its merits after the person exhausts the administrative remedies
described in this section.

Sec. 43.50 Recordkeeping.

(a) General. The recipient shall maintain records in sufficient
detail to demonstrate compliance with this part. These records shall
include a list or lists with the name, address, and race/ethnicity of
each household, and the gender of each single head of household, who:
(1) Occupies the property on the date described in
Sec. 43.11(b)(1);
(2) Moves into the property after the date described in
Sec. 43.11(b)(1), but before completion of the project; and
(3) Occupies the property upon completion of the project.
(b) Retention period. The records for a project shall be maintained
for at least three years after the latest of:
(1) The date all relocation payments under this part and all
payments for the acquisition of the real property have been issued;
(2) The date the project is completed; or
(3) The date by which all issues resulting from litigation,
negotiation, audit, or other action are resolved.
(c) Confidentiality of records. Records maintained by the recipient
to demonstrate compliance with this part are confidential. The records
shall not be made available as public information, unless required by
law. Only authorized staff of the recipient and HUD shall have access
to these records. However, upon the written request of any occupant of
the project site, the recipient shall give that person or that person's
designated representative the opportunity to inspect and copy, during
normal business hours, all pertinent records except material that the
recipient determines must be withheld from the person for reasons of
confidentiality.

Subpart B--One-For-One Replacement of Lower Income Housing

Sec. 43.101 Housing that must be replaced.

(a) General. Occupied and vacant occupiable lower income housing
that is demolished or converted to a use other than as lower income
housing for a project must be replaced with lower income housing in
accordance with the requirements in this subpart, unless an exception
is granted under Sec. 43.107.
(b) Vacant occupiable housing--defined. For purposes of this
subpart, the term ``vacant occupiable housing'' means housing that is
in:
(1) Standard condition;
(2) Substandard condition, but suitable for rehabilitation; or
(3) Substandard condition not suitable for rehabilitation, but has
been occupied, by a person with the legal right to occupy the property,
at any time within the period beginning three months before execution
of the contract for the demolition or the rehabilitation related to the
conversion. This replacement requirement does not apply to the
demolition or conversion of vacant housing rendered unoccupiable by a
presidentially declared emergency or disaster, or by a fire or other
disaster beyond the control of the owner or occupant.
(c) Conversion--defined. (1) Except as provided in paragraph (c)(2)
of this section, lower income housing is converted to a use other than
as lower income housing if, upon completion of the project, the housing
unit is:
(i) Used for non-housing purposes; or
(ii) Used for housing purposes, but no longer meets the definition
of lower income housing in Sec. 43.5.
(2) A housing unit that continues to be used for housing after
completion of the project is not converted if, upon completion of the
project, the unit is:
(i) Owned and occupied by a person who owned and occupied the unit
before the project;
(ii) Owned and occupied by a lower income person; or
(iii) Rental housing that meets the HOME affordability criteria in
24 CFR 92.252.
(d) Reconfiguration of space. Reconfiguration of interior space in
lower income housing does not trigger a replacement requirement, unless
the housing is no longer lower income housing after the
reconfiguration.
(e) Demolition or conversion at replacement housing site. If the
off-site development of replacement lower income housing to meet the
requirements of this part results in the demolition or conversion of
other lower income housing, that other demolition or conversion is also
subject to the housing replacement and relocation requirements of this
part.

Sec. 43.103 Housing that meets replacement requirements.

One-for-one replacement lower income housing must meet the
following requirements:
(a) Location. At least one of the following conditions must be met:
(1) Eligible households of all races and ethnic groups will have
equal and meaningful access to the replacement housing;
(2) There are opportunities in the metropolitan area for assisted
households to choose non-minority neighborhoods (or these opportunities
are under development); or
(3) The proposed housing investment is consistent with the
recipient's consolidated plan.
(b) Size. The replacement housing must contain at least as many
bedrooms as the housing that is demolished or converted. The mix of
units may vary; however, the recipient must provide the information
required under Sec. 43.105(g) in any case where it proposes to:
(1) Replace units with an appropriate number of smaller units
(e.g., a 2-bedroom unit with two 1-bedroom units); or
(2) Replace efficiency units or single-room occupancy (SRO) housing
with units of a different size.
(c) Condition. The replacement housing must be provided in standard
condition. A vacant unit that has been raised to standard from
substandard condition may qualify as replacement housing if:
(1) No person was displaced from the unit as a direct result of a
project; and
(2) The unit was vacant for at least three months before the
execution of the contract between the owner of the property and the
rehabilitation contractor.
(d) Timing. The replacement housing must initially become available
for occupancy during the period beginning one year before the
recipient's submission of the information required under Sec. 43.105
and ending three years after the commencement of the demolition or the
rehabilitation related to the conversion.
(e) Affordability. The replacement housing must be designed to
remain lower income housing for at least 10 years from the date of
initial occupancy. Replacement housing may be provided by any
government agency or private developer, and may include:
(1) Rental or owner-occupied housing with a market rent that does
not exceed the applicable Section 8 FMR, if, based on available data
and trends, the recipient determines that the market rent is likely to
remain within the applicable FMR for at least 10 years; and
(2) Housing for which there is a firm commitment to reduce the
actual rent for the unit to an amount that does not exceed the FMR for
a period of at least 10 years (e.g., by a project-based subsidy that
has a term, including renewals that are pre-funded or subject only to
congressional appropriations, of at least 10 years).

Sec. 43.105 Disclosure and submission requirements.

(a) Before the recipient enters into an agreement committing it to
provide HUD financial assistance for any project that will directly
result in the demolition of lower income housing or the conversion of
lower income housing to another use, the recipient must make public
and, for monitoring purposes, submit to HUD or, in the case of a State-
funded recipient, to the State, the following information:
(1) A description of the proposed project;
(2) The address, number of bedrooms, and location on a map of the
lower income housing that will be demolished or converted to a use
other than as lower income housing;
(3) A time schedule for the commencement and completion of the
demolition or conversion;
(4) To the extent known, the address, number of bedrooms, and
location on a map of the replacement housing that has been or will be
provided. Any exception that will be sought under Sec. 43.107 shall be
identified. For tracking purposes, the information shall correlate the
replacement housing with the specific converted/demolished housing it
replaces and shall indicate whether the replacement housing is located
in an area of minority concentration (see Sec. 43.207(c)(4)(iv));
(5) The source of funding, and a time schedule for the provision of
the replacement housing;
(6) The basis for concluding that the replacement housing will
remain lower income housing for at least 10 years from the date of
initial occupancy; and
(7) Information demonstrating that any proposed replacement of
dwelling units with an appropriate number of smaller dwelling units, or
any proposed replacement of efficiency or single-room occupancy (SRO)
units with units of a different size, is appropriate and consistent
with the recipient's housing needs and priorities as identified in the
HUD-approved comprehensive housing affordability strategy (CHAS).
(b) To the extent that the specific location of the replacement
housing and other data required by paragraphs (a)(4) through (a)(7) of
this section are not known, the recipient shall identify the general
location of the housing on a map and complete the disclosure and
submission requirements as soon as the specific data are available.

Sec. 43.107 Exception to housing replacement requirements.

(a) General. To the extent that HUD determines, based upon
objective data, that there is an adequate supply of vacant lower income
housing in standard condition available on a nondiscriminatory basis
within the recipient's jurisdiction, the one-for-one replacement
requirements of this subpart do not apply.
(b) Criteria for exception. (1) In determining the adequacy of
supply, HUD will consider whether the demolition or conversion will
have a material impact on the ability of lower income persons to find
suitable lower income housing. HUD will consider relevant evidence of
housing supply and demand including, but not limited to, the following
factors: the housing vacancy rate in the jurisdiction; the amount of
vacant lower income housing in the jurisdiction (excluding units that
will be demolished or converted); the recipient's housing needs as
described in its CHAS; the number of eligible families on waiting lists
for assisted housing; and relevant past or predicted demographic
changes.
(2) HUD's decision to grant an exception may take into account the
supply of vacant lower income housing in standard condition in an area
that is larger than the recipient's jurisdiction. This additional
housing shall be considered if HUD determines that the housing is
available on a nondiscriminatory basis and would be suitable to serve
the needs of the lower income persons that could be served by the lower
income housing that is to be demolished or converted. HUD will base
this determination on geographic and demographic factors, such as
location and access to places of employment and to other facilities.
(c) Request for exception. A recipient shall submit its request for
an exception under this section to:
(1) HUD, if the recipient is funded by HUD; or
(2) The State, if the recipient is funded by a State. After the
State reviews a recipient's request and any related public comments,
the State shall forward the request with its recommendation to HUD.
(d) Public disclosure. A request for an exception shall be made
public simultaneously with its submission. The public disclosure shall
identify the address of the Office (HUD or State) that will consider
the request, and shall inform interested persons that they have 30 days
from the date of the submission to provide that Office with additional
information supporting or opposing the recipient's request.
(e) Action pending exception. Lower income housing for which an
exception is requested shall not be demolished or converted before the
exception is approved.
(f) Displacement. HUD's approval of an exception under this section
does not relieve the recipient of the obligation to provide relocation
assistance to persons displaced from the housing for which the
exception was granted.

Subpart C--Assistance to Site Occupants

Sec. 43.201 Introduction.

(a) Purpose of subpart. This subpart describes the assistance that
must be offered to persons occupying property undergoing demolition or
conversion.
(b) Choice of relocation assistance. Each displaced person is
entitled to choose to receive either:
(1) Relocation assistance at section 104(d) levels, as described in
this subpart C; or
(2) Relocation assistance under the URA. This level of assistance
is described in 49 CFR part 24, and:
(i) For the HOME program, 24 CFR 92.353;
(ii) For the State Community Development Block Grant (CDBG)
program, 24 CFR 570.488; and
(iii) For other CDBG programs, the Section 108 Loan Guarantee
program, and Urban Development Action Grant (UDAG) program, 24 CFR
570.606.
(c) Recognition of eligibility--defined. As used in this subpart
and Sec. 43.11 (Displaced person--defined), the term ``recognition of
eligibility'' has the following meaning:
(1) For the conversion or demolition of privately owned property,
unless the recipient, with the concurrence of HUD, establishes a
different trigger event, the term ``recognition of eligibility'' means:
(i) The execution of the assistance contract between the recipient
(or subrecipient) and the person carrying out the project, if the
person has site control; or
(ii) The action by which site control is obtained, if site control
is obtained after execution of the assistance contract; or
(2) For the conversion or demolition of property owned by a public
agency, the term ``recognition of eligibility'' means the execution of
the contract between the public agency and the rehabilitation or
demolition contractor, or any earlier action that the recipient
determines is appropriate.

Sec. 43.203 Summary of assistance.

The following assistance must be provided under this subpart:
(a) All occupants must be provided timely information notices, as
described in Sec. 43.205;
(b) All occupants must be provided other appropriate advisory
services, as described in Sec. 43.207;
(c) Persons required to relocate for a temporary period or to move
within the building/complex shall be provided the assistance required
by Sec. 43.209;
(d) Displaced persons must be provided payment for moving and
related expenses, as described in Sec. 43.211; and
(e) Displaced persons must be provided rental or purchase
assistance, including the cost of a security deposit, as described in
Sec. 43.213.

Sec. 43.205 Timely notices.

(a) Basic policy. Each person occupying the property that is
undergoing demolition or conversion is entitled to timely notice
explaining the impact of the project on the person and the applicable
protections and assistance to which the person is entitled. When
feasible, two or more notices required by this section may be
consolidated in one timely communication.
(b) General information notice. (1) As soon as feasible, each
person occupying the property shall be issued an appropriate advisory
notice as described in paragraph (f) of this section. The notice shall
explain that the project has been proposed and its possible impact on
the person, if it is approved.
(2) If displacement is a possibility, the notice shall, at a
minimum, include information that:
(i) Cautions the person not to move before the project is approved
and the person receives a notice of eligibility for relocation
assistance;
(ii) Indicates that, if the project is approved, the person may
choose assistance at either the levels described in this subpart or
under the URA, and generally describes the relocation payments, basic
conditions of eligibility, and procedures for obtaining payment under
each option;
(iii) Explains that a person to be displaced will be given
reasonable relocation advisory services, including referrals to
comparable and suitable replacement dwellings, assistance in filing
payment claims, and other necessary assistance to help the person
relocate successfully;
(iv) Explains that a person to be displaced will not be required to
move from the property earlier than 90 days after referral to at least
one comparable replacement dwelling (see paragraphs (d) and (e) of this
section); and
(v) Describes a person's right to appeal the recipient's
determination as to the person's eligibility for relocation assistance
and the amount of any relocation payment.
(c) Notice of nondisplacement or eligibility for relocation
assistance. Before or promptly after recognition of eligibility (as
defined in Sec. 43.201(c)), each person directly affected by the
conversion or demolition shall be issued one of the following written
notices:
(1) Notice of nondisplacement (tenants only). The notice of
nondisplacement shall describe the reasonable terms and conditions
under which the tenant may continue to occupy the property (see
Sec. 43.209(a) for temporary relocation policies). These reasonable
terms and conditions shall include the opportunity to lease and occupy,
upon completion of the project, a suitable, decent, safe, and sanitary
dwelling in the same building/complex at a monthly housing cost that
does not exceed the greater of the tenant's current monthly housing
cost, or the tenant's contribution under the recipient's financial
means standards (described in Sec. 43.213(b)(2)). A tenant who moves
permanently may qualify for assistance as a displaced person if the
tenant is not provided a timely notice of nondisplacement or there is a
violation of the provisions of the notice of nondisplacement after it
is issued.
(2) Notice of eligibility for relocation assistance. The notice of
eligibility for relocation assistance shall:
(i) Inform the person of his/her eligibility for the relocation
assistance and the effective date of such eligibility; and
(ii) Describe the assistance, including the estimated amount of
financial assistance, and the procedures for obtaining the assistance.
(d) Notice of comparable replacement dwelling (persons to be
displaced). As soon as feasible, a person to be displaced shall be
notified in writing of the specific representative comparable
replacement dwelling and related price or rent that will be used to
establish the maximum replacement housing payment for which the person
may qualify. If feasible, the notice should be consolidated with the
notice of eligibility for relocation assistance.
(e) Ninety-day notice (persons to be displaced)--(1) Policy and
timing. No lawful occupant to be displaced shall be required to move
without at least 90 days' advance written notice of the earliest date
by which the move may be required. The 90-day notice shall not be given
before the person is issued the notices of eligibility and comparable
replacement dwelling described in paragraphs (c)(2) and (d) of this
section.
(2) Content. The 90-day notice shall either:
(i) State the specific date by which the property must be vacated;
or
(ii) Specify the earliest date by which the person may be required
to move and indicate that the person will receive a vacate notice
indicating, at least 30 days in advance, the specific date by which he
or she must move.
(3) Urgent need. In unusual circumstances, an occupant may be
required to vacate the property on less than 90 days' advance written
notice if the recipient determines that a 90-day notice is
impracticable, such as when the person's continued occupancy of the
property would constitute a substantial danger to health or safety. A
copy of the recipient's determination shall be included in the case
file.
(4) Notice not required. The 90-day notice need not be issued if:
(i) There is no structure or personal property on the real
property;
(ii) The person makes an informed decision to relocate and vacates
the property without prior notice; or
(iii) The person owns the property and enters into a negotiated
agreement specifying delivery of possession.
(f) Manner of notices. (1) A notice required by this section must
be personally served or sent by certified or registered first-class
mail, return receipt requested, unless the project will not result in a
rent increase or relocation. If the project will not result in a rent
increase or require permanent or temporary relocation, a general
information notice/notice of nondisplacement may be served by posting
it in accessible locations and providing a copy to the tenants'
representative.
(2) Each notice shall be written in plain, understandable language.
Persons who are unable to read and understand the notice (e.g.,
illiterate, foreign language, or impaired vision or other disability)
must be provided with appropriate translation/communication (e.g., sign
language interpreter or reader) and counseling.
(3) Each notice shall indicate the name and telephone number
(including the telecommunications device for the deaf (TDD) number, if
applicable) of a person who may be contacted for answers to questions
or other needed help.

Sec. 43.207 Other advisory services.

(a) Early consultation and coordination. To the extent feasible,
property occupants directly affected by the project shall be consulted
in advance of project approval, to obtain their ideas and preferences
and basic information (e.g., family size and income) needed to estimate
project costs and determine project feasibility. When public meetings
are held, the meeting room must be accessible to all members of the
intended audience, regardless of disability. Appropriate steps shall be
taken to ensure cooperation and coordination among government agencies,
neighborhood groups and affected persons so that the project can
proceed efficiently with minimal duplication of effort.
(b) Advisory services--persons not to be displaced. In addition to
receiving the notices described in Sec. 43.205, persons who will not be
displaced shall:
(1) Receive an explanation of the terms and conditions of occupancy
that will apply upon completion of the project, and, where applicable,
the policies covering temporary relocation and moving within the
building/complex.
(2) Consistent with program objectives and available resources, be
provided information on available housing assistance and help in
applying for such assistance, counseling, referrals to other sources of
assistance (e.g., drug and alcohol treatment, welfare assistance, child
care, voter registration, training) and any other help as may be
appropriate.
(c) Advisory services--persons to be displaced.--(1) Determine
relocation needs and preferences. The relocation needs and preferences
of each person shall be determined as soon as feasible. Information
necessary to select a comparable replacement dwelling and establish the
maximum replacement housing payment (e.g., household size and income
and dwelling characteristics) should be obtained before eligibility for
relocation assistance is triggered.
(2) Select most representative comparable replacement dwelling. If
available, at least three comparable replacement dwellings shall be
inspected, internally and externally, to ensure that they meet the
requirements of a comparable replacement dwelling. The maximum
replacement housing payment shall be based on the cost for the
comparable replacement dwelling that is most representative of the
displacement dwelling. To the extent feasible, the comparable
replacement dwellings shall be selected from the neighborhood in which
the displacement dwelling is located, or in nearby similar
neighborhoods where housing costs are generally the same or higher. (In
order to qualify as a comparable replacement dwelling, the housing must
be currently available, as provided in Sec. 43.7(f).)
(3) Explain assistance available. As soon as feasible, the
recipient shall explain the relocation payments and other assistance
for which the person may be eligible, the related eligibility
requirements, and the procedures for obtaining such assistance. The
recipient shall explain the reasons why it selected a specific
comparable replacement dwelling as most representative, and, where
applicable, the expected terms and conditions of the new mortgage
financing. If feasible, these explanations shall be face-to-face.
Persons who are unable to understand the information shall be provided
appropriate translation (e.g., sign language or bilingual
presentation).
(4) Referrals to available replacement dwellings. The recipient
shall:
(i) Provide current information on the availability, purchase
prices, and rents of comparable replacement dwellings and other
suitable, decent, safe, and sanitary replacement dwellings. This
information shall be provided on a continuing basis until the person
selects the replacement dwelling to which he or she will relocate. (See
also requirement in Sec. 43.205(d) to provide written notice of
comparable replacement dwelling.)
(ii) Offer transportation to inspect the housing to which the
person is referred. Transportation for persons with disabilities shall
be accessible.
(iii) Supply eligible persons with appropriate information about
the availability of housing assistance under Federal, State or local
programs, and assist eligible persons in applying for such assistance.
(iv) Advise the person of the person's rights under the Fair
Housing Act (42 U.S.C. 3601-19). Consistent with the recipient's
affirmative obligation to further fair housing, the recipient shall
offer replacement housing opportunities in a variety of locations.
Referrals to minority persons shall include referrals to suitable
replacement dwellings not located in an area of minority concentration.
(Minority concentration, defined in relation to local conditions,
exists when the proportion of minority residents substantially exceeds
that of the jurisdiction as a whole.) This policy, however, does not
require a recipient to provide a person a larger payment than is
necessary to enable the person to relocate to a comparable replacement
dwelling.
(5) Inspection of replacement dwellings. (i) Whenever feasible, the
recipient shall inspect housing before providing a referral to assure
that it meets the applicable standards (i.e., definitions for
comparable replacement dwelling and/or decent, safe, and sanitary
dwelling in Secs. 43.7 and 43.9). If a full, internal and external
inspection is not made before the referral, the person shall be
notified of the need for the inspection before making a commitment to
rent or buy the dwelling.
(ii) Before making a replacement housing payment, the recipient
must ensure that a thorough internal and external inspection of the
actual replacement dwelling has been made to determine that it is a
decent, safe, and sanitary dwelling. If the person relocates to another
community, the recipient may arrange for officials of that community to
perform the inspection.
(iii) If the person elects to move to a replacement dwelling that
is not decent, safe, and sanitary, the recipient must so notify HUD at
least 30 days in advance of its denial of the replacement housing
payment. The notification shall include an explanation of its efforts
to obtain compliance with such requirements.
(6) Other help. The recipient shall provide counseling, referrals
to other sources of assistance (e.g., welfare assistance, job training,
drug or alcohol treatment, child care, voter registration), and such
other help as may be appropriate to minimize hardships. In addition,
the recipient shall keep each person informed as to the earliest date
by which the person may have to vacate the property and assist the
person in completing any claim forms that must be filed to obtain
relocation payments.
(7) Occupant of overnight shelter. The occupant of an overnight
shelter for the homeless is not considered to be the resident of a
dwelling and therefore is not eligible for rental or purchase
assistance under Sec. 43.213. However, a person displaced from an
overnight shelter must be provided the opportunity to occupy another
overnight shelter under similar or better conditions.

Sec. 43.209 Temporary relocation and moves within complex.

(a) Temporary relocation of person not to be displaced. A tenant
who will not be required to move from the building/complex permanently
may need to relocate temporarily to permit the project to be carried
out. All conditions of the temporary relocation, including location and
period of temporary occupancy, must be reasonable. At a minimum, the
tenant shall be provided:
(1) Reimbursement for all reasonable and necessary 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 housing cost, and any incidental
expenses (e.g., costs of reinstalling telephone and cable TV service);
and
(2) Appropriate advisory services, including reasonable advance
written notice of:
(i) The date and approximate duration of the temporary relocation;
(ii) The address of the suitable, decent, safe, and sanitary
dwelling to be made available for the temporary period;
(iii) The reasonable 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 provision for reimbursement of out-of-pocket expenses
described in paragraph (a)(1) of this section.
(b) Person not to be displaced moves within building/complex. If a
tenant is required to move permanently to another unit in the building/
complex in order to carry out the project:
(1) The tenant must be offered reimbursement for all reasonable
out-of-pocket expenses incurred in connection with the move; and
(2) All other conditions of the relocation must be reasonable.
(c) Emergency temporary relocation of person to be displaced.
(1) Emergency circumstances. A person to be displaced may not be
required to move temporarily, unless the move results from:
(i) A presidentially declared major disaster as defined in section
104(c) of the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5121);
(ii) A presidentially declared emergency;
(iii) Another emergency, as determined by the recipient, that
requires immediate vacation of the real property, such as when
continued occupancy of the displacement dwelling constitutes a
substantial danger to the health or safety of the occupants or the
public.
(2) Notification to HUD. Whenever a person is required to make an
emergency move (without prior referral to a comparable replacement
dwelling), HUD shall be notified.
(3) Basic conditions of emergency temporary relocation. Whenever a
person is required to relocate for a temporary period because of an
emergency, the recipient shall:
(i) Take whatever steps are necessary to assure that the person is
relocated temporarily to a decent, safe and sanitary dwelling;
(ii) Pay the actual reasonable out-of-pocket expenses incurred in
moving to and from the temporarily occupied housing, any increase in
monthly housing costs, and any incidental costs (e.g., costs of
reinstalling telephone and cable television service); and
(iii) Inform the person in writing of the person's continuing
eligibility for relocation assistance for the permanent relocation,
and, as soon as feasible, refer the person to at least one comparable
replacement dwelling. For purposes of qualifying for payments, the date
of displacement is the date the person moves from the temporarily
occupied dwelling.
(d) Person to be displaced elects to relocate temporarily.
(1) Although a person to be displaced cannot be required to
relocate temporarily except in emergency circumstances, he or she may
elect to do so.
(2) A lower income person to be displaced from lower income housing
who elects to relocate temporarily shall be eligible for temporary
relocation assistance (including interim living costs), if:
(i) None of the comparable replacement dwellings to which the
person has been referred qualifies as lower income housing. (A
comparable replacement dwelling may have a market rent that exceeds the
applicable Section 8 FMR and not be made affordable by a long term
project-based subsidy. If so, the replacement dwelling does not meet
the definition of lower income housing, even though it will be
temporarily affordable to the displaced person through the relocation
assistance); and
(ii) The person makes a commitment to relocate to lower income
housing that is scheduled to become available in accordance with
subpart B of this part.
(3) The assistance to be provided to an eligible lower income
person shall include reimbursement for reasonable and necessary out-of-
pocket costs incurred in connection with the temporary relocation,
including the cost of moving to and from the temporarily occupied
housing, any increased monthly housing costs, and any incidental
expenses.

Sec. 43.211 Payment for moving and related expenses.

(a) Actual reasonable moving and related expenses. A displaced
person is entitled to payment of his or her actual moving and related
expenses, as the recipient determines to be reasonable and necessary,
including expenses for:
(1) Transportation of the displaced person and personal property.
Transportation costs for a distance beyond 50 miles are not eligible
unless the recipient determines that relocation beyond 50 miles is
justified;
(2) Packing, crating, uncrating, and unpacking of the personal
property;
(3) Storage of the personal property for a period not to exceed 12
months, unless the recipient determines that a longer period is
necessary;
(4) Disconnecting, dismantling, removing, reassembling, and
reinstalling relocated household appliances and other personal
property;
(5) Utility hookups, including reinstallation of telephone and
cable television service;
(6) Insurance for the replacement value of the property in
connection with the move and necessary storage;
(7) The replacement value of property lost, stolen, or damaged in
the process of moving (not through the fault or negligence of the
displaced person, his or her agent, or employee), where insurance
covering such loss, theft, or damage is not reasonably available;
(8) Credit checks; and
(9) Other moving-related expenses that the recipient determines to
be reasonable and necessary, except the following ineligible expenses:
(i) Interest on a loan to cover moving expenses;
(ii) Personal injury;
(iii) Any legal fee or other cost for preparing a claim for a
relocation payment or for representing the claimant before the
recipient; and
(iv) The cost of moving any structure or other real property
improvement.
(b) Moving expense and dislocation allowance. A displaced person
may choose to receive a moving expense and dislocation allowance as an
alternative to a payment for the actual reasonable moving and related
expenses described in paragraph (a) of this section. The amount of the
allowance shall be determined in accordance with a schedule of
allowances established by the recipient. Separate schedules may be
established for apartment units and single-unit buildings. The schedule
of allowance shall take into account:
(1) The number of rooms in the displacement dwelling, which may
include outbuildings;
(2) Whether the displaced person owns and must move the furniture;
and
(3) At a minimum, the kinds of expenses described in
Sec. 43.211(a).

Sec. 43.213 Rental and purchase assistance.

(a) Summary of assistance. A displaced person is entitled to:
(1) Choose to receive either: (i) Rental assistance, as described
in paragraph (b) of this section; or
(ii) Purchase assistance, as described in paragraph (c) of this
section;
(2) Payment of security deposit, as described in paragraph (d) of
this section.
(3) Temporary relocation assistance (i.e., interim living costs,
within the meaning of section 104(d)), when required by Sec. 43.209(d).
(b) Rental assistance. Each person to be displaced must be offered
rental assistance in accordance with the following:
(1) Cash assistance. If provided in cash payments, the rental
assistance shall be equal to 60 times the amount obtained by
subtracting the contribution to be made by the displaced person
(determined in accordance with paragraph (b)(3) of this section) from
the lesser of:
(i) The monthly housing cost, as defined in Sec. 43.5, for a
comparable replacement dwelling; or
(ii) The monthly housing cost for the decent, safe and sanitary
replacement dwelling to which the person relocates.
(2) Tenant-based housing program subsidy. (i) All or a portion of
the required rental assistance may be offered through a tenant-based
housing program subsidy (e.g., a Section 8 rental certificate or
voucher provided through the HA, if it is available in accordance with
the HA's HUD-approved tenant selection preferences and the person
qualifies). If the initial monthly housing program subsidy is less than
that provided under paragraph (b)(1) of this section, the tenant must
be provided a cash rental supplement equal to 60 times the gap. If the
term of the housing program subsidy is less than 60 months, the
recipient must ensure that payments under the formula in paragraph (b)
of this section will be made for the remainder of the 60-month period.
(ii) Whenever a tenant-based housing program subsidy is offered as
a full or partial alternative to cash assistance, the recipient must
provide referrals to comparable replacement dwellings where the owner
is willing to participate in the housing program. If the person then
refuses the tenant-based housing program subsidy, or rents and moves to
a unit where he or she is unable to receive the housing program
subsidy, the recipient shall have satisfied the rental assistance
requirements under this section. (In such case, the displaced person
may seek assistance pursuant to the URA.)
(3) Financial means standards. The recipient shall adopt a written
policy available to the public that describes its standards for
determining the contribution that a person is expected to make toward
the monthly housing cost of a comparable replacement dwelling. This
contribution shall not exceed 30 percent of the person's monthly gross
income, unless the person is a displaced dependent. The contribution of
a displaced dependent shall not exceed the monthly housing cost for the
displacement dwelling. (A student or resident of an institution may be
assumed to be a dependent, unless the student or resident demonstrates
otherwise.) The recipient's standards shall ensure equal assistance
within each class of persons.
(c) Purchase assistance. (1) As an alternative to rental assistance
under paragraph (b) of this section, a displaced person who purchases
an interest in a housing cooperative or mutual housing association and
occupies a decent, safe, and sanitary dwelling in the cooperative or
association, is entitled to receive a lump-sum payment. This lump-sum
payment shall be equal to the capitalized value of 60 monthly
installments of the amount that is obtained by subtracting the person's
contribution, described in paragraph (b)(3) of this section, from the
monthly housing cost for a comparable replacement dwelling.
(2) To compute the capitalized value, the installments shall be
discounted at the rate of interest paid on passbook saving deposits by
a federally insured bank or savings and loan institution conducting
business in the recipient jurisdiction.
(d) Payment of security deposit. A displaced person who rents a
replacement dwelling is entitled to payment for the reasonable and
necessary cost of a security deposit. The payment shall not exceed the
contract rent for one month (including utilities covered by the lease),
unless the recipient determines that a higher payment is justified. The
person is entitled to keep any later refund of the deposit.
(e) Occupancy requirements. To qualify for replacement housing
assistance under this section, the displaced person must rent or buy,
and must occupy, a decent, safe and sanitary dwelling within one year
after the date of displacement.

Sec. 43.215 Special requirements covering manufactured homes.

(a) Mobile home--definition. This section provides additional
guidance covering relocation payments to a person displaced from a
manufactured home or manufactured home site. As used in this section,
the term ``mobile home'' shall have the same meaning as ``manufactured
home'', as that term is defined in section 603 of the National
Manufactured Housing Construction and Safety Standards Act of 1974 (42
U.S.C. 5402) and implementing regulations at 24 CFR 3280.2.
(b) Cost of moving mobile home. In addition to the expenses
described in Sec. 43.211(b), a displaced owner-occupant of a mobile
home who relocates and reoccupies the mobile home on a replacement site
is eligible for the reasonable and necessary costs of:
(1) Moving the mobile home (including packing, securing, and
unpacking any items of personal property);
(2) Disassembling, moving, and reassembling any attached
appurtenances, such as porches, decks, skirting, and awnings, anchoring
of the unit, and utility ``hook-up'' charges;
(3) Repairs and modifications necessary so that the mobile home can
be moved and made decent, safe, and sanitary, if the recipient
determines that it would be economically feasible to do so; and
(4) A nonreturnable mobile home park entrance fee, to the extent
that it does not exceed the fee at a comparable mobile home park, if:
(i) The person is displaced from a mobile home park; or
(ii) The recipient determines that payment of the fee is necessary
to the relocation.
(c) Rental/Purchase assistance based on dwelling and site. Both the
mobile home and mobile home site must be considered when computing
rental/purchase assistance. For example, the displaced person may have
owned the displacement mobile home and rented the site, or may have
rented the mobile home and owned the site. Similarly, a person may
elect to purchase a replacement mobile home and rent a replacement
site, or to rent the mobile home and purchase the site. In such cases,
the total assistance shall consist of a payment for a dwelling and a
payment for a site, each computed under the applicable provisions in
Sec. 43.213.
(d) Replacement mobile home/site not available. The maximum rental/
purchase assistance under this section shall be based on the cost of a
comparable replacement mobile home and suitable site, unless they are
not reasonably available. If a comparable replacement mobile home and
suitable site are not reasonably available, the payment shall be
computed on the basis of the reasonable cost of a conventional
comparable replacement dwelling.
(e) Mobile home park. If the demolition or conversion of a portion
of a mobile home park makes continued operation of the park infeasible,
necessitating relocation of a mobile home located on the remainder
property, the occupant shall be considered a displaced person who is
entitled to relocation payments and other assistance under this part.

PART 92--HOME INVESTMENT PARTNERSHIPS PROGRAM

2. The authority citation for part 92 would continue to read as
follows:

Authority: 42 U.S.C. 3535(d) and 12701-12839.

3. Paragraph (c)(6) of Sec. 92.150 would be revised to read as
follows:

Sec. 92.150 Submission of program description and certifications.

* * * * *
(c) * * *
(6) A certification that it:
(i) Is following a Residential Antidisplacement and Relocation
Assistance Plan in accordance with the requirements in 24 CFR part 43;
(ii) Will comply with the Uniform Relocation Assistance and Real
Property Acquisition Policies Act of 1970 and implementing regulations
at 49 CFR part 24; and
(iii) Will comply with the requirements in Sec. 92.353.
* * * * *
4. The section heading and paragraphs (e), (h) introductory text,
and (h)(1) of Sec. 92.353 would be revised to read as follows:

Sec. 92.353 Relocation, acquisition, and replacement of low-income
housing.

* * * * *
(e) Residential antidisplacement and relocation assistance plan.
Each participating jurisdiction shall comply with the Residential
Antidisplacement and Relocation Assistance Plan requirements in 24 CFR
part 43. These requirements include one-for-one replacement of low-
income housing and the provision of relocation assistance.
* * * * *
(h) Responsibility of participating jurisdiction. (1) The
jurisdiction must certify that it will comply with the URA, the
regulations at 49 CFR part 24, and the requirements of this section,
including the provisions on the residential antidisplacement and
relocation assistance plan in paragraph (e) of this section. The
jurisdiction must ensure this compliance notwithstanding any third
party's contractual obligation to the jurisdiction to comply.
* * * * *

PART 570--COMMUNITY DEVELOPMENT BLOCK GRANTS

5. The authority citation for part 570 would continue to read as
follows:

Authority: 42 U.S.C. 3535(d) and 5300-5320.

6. Paragraph (h) of Sec. 570.303 would be revised to read as
follows:

Sec. 570.303 Certifications.

* * * * *
(h)(1) It is following a Residential Antidisplacement and
Relocation Assistance Plan in accordance with the requirements in 24
CFR part 43, as required by section 104(d) of the Act;
(2) It will comply with the Uniform Relocation Assistance and Real
Property Acquisition Policies Act of 1970 and implementing regulations
at 49 CFR part 24;
(3) It will comply with the relocation requirements in
Sec. 570.606(b); and
(4) It will comply with the requirements in Sec. 570.606(d)
governing optional relocation assistance under section 105(a)(11) of
the Act.
* * * * *
7. Paragraph (c)(14)(ix)(I) of Sec. 570.458 would be revised to
read as follows:

Sec. 570.458 Full applications.

* * * * *
(c) * * *
(14) * * *
(ix) * * *
(I)(1) A Residential Antidisplacement and Relocation Assistance
Plan in accordance with the requirements of 24 CFR part 43 (including
the requirement to certify that the grantee is following such a plan);
(2) The Uniform Relocation Assistance and Real Property Acquisition
Policies Act of 1970 and implementing regulations at 49 CFR part 24;
(3) The relocation requirements in Sec. 570.606(b); and
(4) The requirements in Sec. 570.606(d) governing optional
relocation assistance under section 105(a)(11) of the Act; and
* * * * *
8. The section title and paragraph (c) introductory text of
Sec. 570.488 would be revised to read as follows:

Sec. 570.488 Relocation, acquisition, and replacement of lower income
housing.

* * * * *
(c) Residential antidisplacement and relocation assistance plan.
Each State shall ensure that each State recipient certifies to the
State that the State recipient is following a Residential
Antidisplacement and Relocation Assistance Plan providing one-for-one
replacement of lower income housing and relocation assistance in
accordance with 24 CFR part 43. Under section 106(d)(5)(A) of the Act,
the State recipient must also certify to the State that the State
recipient will minimize the displacement of persons as a result of
assisted activities.
* * * * *
9. The section title and paragraph (c) introductory text of
Sec. 570.606 would be revised to read as follows:

Sec. 570.606 Relocation, acquisition, and replacement of lower income
housing.

* * * * *
(c) Residential antidisplacement and relocation assistance plan.
Each grantee shall comply with the Residential Antidisplacement and
Relocation Assistance Plan requirements in 24 CFR part 43. These
requirements include one-for-one replacement of lower income housing
and the provision of relocation assistance.
* * * * *
Dated: June 27, 1994.
Henry G. Cisneros,
Secretary.
[FR Doc. 94-16074 Filed 6-30-94; 8:45 am]
BILLING CODE 4210-32-P