[Federal Register Volume 68, Number 242 (Wednesday, December 17, 2003)]
[Proposed Rules]
[Pages 70342-70385]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-30804]
[[Page 70341]]
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Part II
Department of Transportation
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Office of the Secretary
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49 CFR Part 24
Uniform Relocation Assistance and Real Property Acquisition for Federal
and Federally-Assisted Programs; Proposed Rule
Federal Register / Vol. 68, No. 242 / Wednesday, December 17, 2003 /
Proposed Rules
[[Page 70342]]
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DEPARTMENT OF TRANSPORTATION
Office of the Secretary
49 CFR Part 24
[FHWA Docket No. FHWA-2003-14747]
RIN 2125-AE97
Uniform Relocation Assistance and Real Property Acquisition for
Federal and Federally-Assisted Programs
AGENCY: Federal Highway Administration (FHWA), DOT.
ACTION: Notice of proposed rulemaking (NPRM), request for comments, and
notice of public meetings.
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SUMMARY: The FHWA is proposing to amend several sections of the
regulations that set forth governmentwide requirements for implementing
the Uniform Relocation Assistance and Real Property Acquisition
Policies Act (Uniform Act.) These proposed changes would clarify
present requirements, meet modern needs and improve the service to
individuals and businesses affected by Federal or federally-assisted
projects while at the same time reducing the burdens of government
regulations. The regulation has not been fully reviewed or updated
since it was issued in 1989. The proposed amendments to the Uniform Act
regulation would affect the land acquisition and displacement
activities of 18 Federal Agencies including the new Department of
Homeland Security. This document also provides notice of public
meetings on the proposed changes to the regulation.
DATES: The public meetings will be held on January 15, 2004, from 10
a.m. to 2 p.m., Washington, DC; January 22, 2004, from 10 a.m. to 2
p.m., Lakewood, CO; and January 28, 2004, from 10 a.m. to 2 p.m.,
Atlanta, GA.
Comments in response to this NPRM must be received on or before
February 17, 2004.
ADDRESSES: The January 15, 2004 meeting will be held in Washington, DC,
United States Department of Transportation, 400 7th Street, SW., Room
8236. The January 22, 2004 meeting will be held in Lakewood, CO, Zang
Building, Conference Room 360, 555 Zang Street. The January 28, 2004
meeting will be held in Atlanta, GA, Atlanta Federal Center, Conference
Room B, 61 Forsyth Street, SW., Atlanta, Georgia. Each meeting will be
scheduled from 10 a.m. to 2 p.m.
Mail or hand deliver comments to the docket number that appears in
the heading of this document to the U.S. Department of Transportation,
Dockets Management Facility, Room PL-401, 400 Seventh Street, SW.,
Washington, DC 20590, or submit electronically at http://dmses.dot.gov/submit. All comments received will be available for examination and
copying at the above address 9 a.m. to 5 p.m., e.s.t., Monday through
Friday, except Federal holidays. Those desiring notification of receipt
of comments must include a pre-addressed, stamped envelope or post card
or you may print the acknowledgement page that appears after submitting
comments electronically.
Anyone is able to search the electronic form of all comments
received into any of our dockets by the name of the individual
submitting the comment (or signing the comment, if submitted on behalf
of an association, business, labor union, etc.). You may review DOT's
complete Privacy Act statement in the Federal Register published on
April 11, 2002 (Volume 65, Number 70, Page 19477-78) or you may visit
http://dms.dot.gov.
FOR FURTHER INFORMATION CONTACT: Ronald E. Fannin, Office of Real
Estate Services, HEPR, (202) 366-2042; Reginald K. Bessmer, Office of
Real Estate Services, HEPR, (202) 366-2037 or Reid Alsop, Office of the
Chief Counsel, HCC-30, (202) 366-1371, Federal Highway Administration,
400 Seventh Street, SW., Washington, DC 20590. Office hours are from
7:45 a.m. to 4:15 p.m., e.s.t., Monday through Friday, except Federal
holidays.
SUPPLEMENTARY INFORMATION:
Electronic Access and Filing
You may submit or retrieve comments online through the Document
Management System (DMS) at: http://dmses.dot.gov/submit. Acceptable
formats include: MS Word (versions 95 to 97), MS Word for Mac (versions
6 to 8), Rich Text File (RTF), American Standard Code Information
Interchange (ASCII)(TXT), Portable Document Format (PDF), and
WordPerfect (versions 7 to 8.) The DMS is available 24 hours each day,
365 days each year. Electronic submission and retrieval help and
guidelines are available under the help section of the web site.
An electronic copy of this document may be downloaded by using a
modem and suitable communications software from the Government Printing
Office's Electronic Bulletin Board Service at (202) 512-1661. Internet
users may also reach the Federal Register's home page at: http://www.archives.gov and the Government Printing Office's database at:
http://www.access.gpo.gov/nara.
Background
Reasons for This Proposal
Title 49 CFR part 24 has not been comprehensively revised or
updated since its initial publication in 1989. We believe there is some
confusion regarding a number of existing requirements. There could be
improvement in achieving the goal of national program uniformity; and
there are inadequacies in meeting contemporary needs. We also believe
we could improve the service to individuals and businesses affected by
Federal and federally-assisted projects while reducing administrative
burdens.
History
Relevant Legislation
Title 49 CFR part 24 implements the Uniform Relocation Assistance
and Real Property Acquisition Policies Act of 1970, as amended, 42
U.S.C. 4601 et seq., (``the Uniform Act'').
Current Regulations
As originally enacted, the Uniform Act authorized ``the head of
each Federal Agency'' to establish regulations and procedures for
implementing the Uniform Act. Inevitably, this led to significant
differences in Agencies implementing regulations. In a March 8, 1978,
Report to Congress (GAO Report No. GGD-78-6, ``Changes Needed in the
Relocation Act to Achieve More Uniform Treatment of Persons Displaced
by Federal Programs, B-148044 (1978)),'' \1\ the Comptroller General
found that as a result of these differences the Federal government was
not providing uniform treatment to people displaced from their homes
and businesses by Federal or federally-assisted programs. Those
differences among Federal implementing regulations also imposed
significant administrative burdens on State and local governments. In
1981, for the Vice President's Presidential Task Force on Regulatory
Relief, State and local governments identified the Uniform Act as a
good candidate for State and local regulatory relief.
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\1\ A copy of this report, Changes Needed in the Relocation Act
to Achieve More Uniform Treatment of Persons Displaced by Federal
Programs, is available in the docket.
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Therefore, in May 1982, the Office of Management and Budget (OMB)
formed a Uniform Act Interagency Regulatory Review Working Group to
develop uniform regulations to be implemented by each Agency covered by
the Uniform Act. A Presidential Memorandum, dated February 27, 1985,
was published in the Federal Register on March 5, 1985 (50
[[Page 70343]]
FR 8953), naming the U.S. Department of Transportation (USDOT) as the
Agency with lead responsibility for the Uniform Act. The Secretary of
Transportation (hereafter Secretary) delegated this responsibility to
the Federal Highway Administrator.
On March 5, 1985 (50 FR 8955), the USDOT published a model Uniform
Act regulation, which, in accordance with the President's Memorandum of
February 27, 1985, served as the basis for a proposed Uniform Act
``common rule'' to be issued by the 16 other affected Agencies. The
proposed common rule was issued for comment by those 16 Agencies on May
28, 1985 (50 FR 21712.) After consideration of comments, on February
27, 1986, the common rule was adopted by each of the affected Federal
Agencies and the former disparate relocation regulations of those
Agencies were removed. This common rulemaking effort by the Federal
Agencies that administered both direct Federal programs and projects,
and federally-assisted programs and projects undertaken by State or
local Agencies, achieved regulatory consistency among the separate
Federal Agencies subject to the Uniform Act.
This common rulemaking effort presaged several of the statutory
changes to the Uniform Act that were made by the Uniform Relocation Act
Amendments of 1987 (Title IV, Pub. L. 100-17, 101 Stat. 246) (``1987
Amendments''). In the administrative area, for example, to further
ensure uniformity, the amendments specifically designated the USDOT as
Lead Agency and required it, in coordination with other Federal
Agencies, to issue a governmentwide rule, establish procedures and make
interpretations to implement provisions of the Uniform Act. In the
substantive area, the common rulemaking effort granted greater
flexibility and discretion to State and local Agencies, a theme
reiterated in the 1987 Amendments.
Implementation of the 1987 Amendments to the Uniform Act
On May 19, 1987 (52 FR 18768), the FHWA issued a notice proposing
significant changes to the common rule as a result of the 1987
amendments to the Uniform Act. On December 1, 1987 (52 FR 45667), the
FHWA issued a Notice of Regulatory Intent giving further notice of the
specific regulatory actions that it and the other affected Federal
Agencies would take to implement the 1987 Amendments.
On December 17, 1987 (52 FR 47994), the FHWA issued an interim
final rule, as 49 CFR part 24, that revised the provisions of the
common rule to include those provisions of the 1987 amendments to the
Uniform Act (primarily increases in the dollar amounts of specific
relocation assistance) that did not allow for administrative discretion
or interpretation, and for which a period of public notices and comment
would have been impractical. This interim final rule was promulgated in
order to allow those Federal, State and local Agencies that were
willing and able to provide the increased dollar amounts for specific
relocation assistance, provided by the 1987 amendments, to do so
expeditiously. On the same day at 52 FR 48015, 17 Federal Departments
and Agencies that administer the Uniform Act published interim final
rules rescinding the common rule from each of their regulations and
adopting in its place a cross-reference to the single interim final
rule published by the FHWA as 49 CFR part 24. The effective date for
these Agency rescissions and cross-references varied. However, all such
actions took effect on or before April 2, 1989, the date the 1987
Amendments became mandatory. The Department of Housing and Urban
Development (HUD), was unable to join the other Federal Agencies in
publishing an interim final rescission and cross referencing action on
December 17, 1987, because of its need to first satisfy certain
Congressional review obligations. HUD subsequently published such an
interim rule on February 19, 1988 (53 FR 4964).
The FHWA issued an NPRM on July 21, 1988, at 53 FR 27598, proposing
to fully implement the statutory amendments to the Uniform Act and to
replace the interim final rule. On March 2, 1989 (54 FR 8928), the FHWA
issued the final rule, which implemented all of the provisions of the
1987 Amendments to the Uniform Act, and replaced the interim final
rule. This was the final step in the development of a single common
rule for implementing the Uniform Act.
The Uniform Act and the common rule govern the relocation and land
acquisition programs of all Federal departments and Agencies. Those
departments and Agencies that, for convenience, provide a cross
reference to this part, and the location of those cross-references, are
listed below:
Department of Agriculture
7 CFR Part 21
Department of Commerce
15 CFR Part 11
Department of Defense
32 CFR Part 259
Department of Education
34 CFR Part 15
Department of Energy
10 CFR Part 1039
Environmental Protection Agency
40 CFR Part 4
Federal Emergency Management Agency
44 CFR Part 25
General Services Administration
41 CFR Part 105-51
Department of Health and Human Services
45 CFR Part 15
Department of Housing and Urban Development
24 CFR Part 42
Department of Justice
41 CFR Part 128-18
Department of Labor
29 CFR Part 12
National Aeronautics and Space Administration
14 CFR Part 1208
Tennessee Valley Authority
18 CFR Part 1306
Veterans Administration
38 CFR Part 25
The United States Postal Service has indicated that it will comply
voluntarily with the Uniform Act, although its current regulations (39
CFR part 777) differ slightly from these proposed regulations.
However, because the Uniform Act applies to all acquisitions of
real property or displacements of persons resulting from Federal or
federally-assisted programs or projects, the Act's application is not
affected by the absence of a cross reference to 49 CFR part 24 in a
department's or Agency's regulations. Further, Federal or federally-
assisted activities involving land acquisition or displacement,
undertaken by a newly constituted Federal department or Agency, such
as, for example, the new Department of Homeland Security, would be
covered by the Act.
1993 Amendments to the Governmentwide Regulations
On January 28, 1992, the President issued a Memorandum for Certain
Department and Agency Heads entitled ``Reducing the Burden of
Government Regulation'' which called upon Departments and Agencies to
review their existing regulations in order to determine whether changes
should be made to promote economic growth, create jobs, or eliminate
unnecessary costs or other burdens on the economy.
The FHWA, as a result of its review of the Uniform Act common rule,
identified several amendments that it believed would enhance the
relocation assistance provided to displaced businesses, thus increasing
their chances of a successful relocation. Additionally, we identified
changes that
[[Page 70344]]
would reduce the regulatory burden imposed on such businesses as well
as on State and local governments implementing the regulation.
Therefore, on July 27, 1992 (57 FR 33164), we issued a notice of
proposed rulemaking (NPRM) proposing these changes to the common rule
and published the final rule on April 30, 1993 (58 FR 26072).
1999 Amendments to the Governmentwide Regulation
Pub. L. 105-117, 111 Stat. 2384 (November 21, 1997) amended the
Uniform Act to provide that an alien not lawfully present in the United
States shall not be eligible to receive relocation payments or any
other assistance provided under the Uniform Act, unless such
ineligibility would result in exceptional and extremely unusual
hardship to the alien's spouse, parent, or child, and such spouse,
parent, or child is a citizen or an alien admitted for permanent
residence. As a result of these changes, the FHWA proposed to amend the
common rule to reflect the prohibitions on payments to aliens not
lawfully present in the United States. After publishing an NPRM on June
12, 1998 (63 FR 32175), the FHWA published a final rule implementing
these changes on February 12, 1999 (64 FR 7127).
FHWA Actions To Update the Regulations
Following a series of requests from other Federal Agencies, States,
and local public agencies, concerning the need for updating the Uniform
Act and Title 49, CFR Part 24, the FHWA initiated a comprehensive
review of 49 CFR part 24 by hosting an all Federal Agency briefing and
listening session at the Uniform Act 30th Anniversary Symposium in
Mesa, Arizona, in November of 2001. Seventy-five individuals
representing 14 Federal Agencies, provided specific comments and
suggestions. We compiled the comments and in March of 2002 we formed a
Federal Interagency Task Force (Task Force) to review all comments
received from both the private and public sectors and to begin
developing proposed changes to the common rule. All 18 Federal Agencies
whose programs are affected by the Uniform Act were asked to provide a
representative to be a member of the Task Force. Next, the FHWA
published a notice on May 14, 2002 (67 FR 34514), announcing 5
nationwide public listening sessions in June and July 2002 to gather
broader input.
Following these sessions, the Task Force once again evaluated each
comment. Based on the comments received, the FHWA determined there was
a need to update the regulation. The Task Force then began to identify
specific provisions of the regulation that should be updated. The Task
Force drafted proposed regulatory language, and on November 7, 2002,
the FHWA hosted an All-Federal Agencies' meeting to present and discuss
the draft language to each of the Agencies affected by this rule. On
December 5, 2002, each Agency was given the draft language and asked to
provide its specific feedback to the FHWA. This feedback helped the
FHWA formulate the proposed changes in this NPRM.
Section-by-Section Discussion of Proposed Changes
Descriptions of the regulatory changes proposed in this part are
set forth below. All members of the public who are affected by
relocation or land acquisition activities undertaken or funded by
Federal departments and Agencies are encouraged to comment on this
NPRM. Comments from interested State and local governments are
particularly requested. We have made several minor grammar changes such
as adding or deleting commas and shortening sentences for clarity that
will not change the meaning or intent. These minor changes are not
addressed in the Section-by-Section discussion.
Subpart A--General
Section 24.2 Definitions
We propose to add a subsection listing acronyms and to include a
numbering system to better identify definitions. This would provide
users a list of the most commonly used acronyms in the regulation.
These acronyms have become commonplace in conversation and
correspondence in the land acquisition and displacement activities of
the 18 Federal Agencies. Also, currently, there are 35 complex and
lengthy definitions listed in alphabetical order. Without a clear and
simple way of referring to definition provisions it is difficult to
communicate with affected parties, which complicates both effective
Agency administration and public understanding of applicable
provisions. Since this rule applies to the programs of approximately 18
Federal Agencies, it is important that they all write and talk with the
same understanding. To include a numbering system for the definitions
was one of the most requested proposals received during the comment
period from both the private and public domain.
Section 24.2(a)(6)(ii) Comparable Replacement Dwelling
We propose to remove the phrase ``style of living'' from paragraph
(2) of the definition of comparable replacement dwelling.
The phrase ``style of living'' has sometimes been misused and has
proven to be confusing. Occasionally, it has been used out of context
and interpreted to require identical unique features found in acquired
dwellings such as, cherry cabinets, gold fixtures, and other
specialized items to be in comparable replacement dwellings. In such
cases, the standard for replacement housing has been raised to a level
above ``comparable.'' This interpretation can make it nearly impossible
to find appropriate replacement housing and could result in replacement
housing payments greater than those intended by Congress. As noted in
the conference report accompanying the 1987 amendments, ``The Conferees
recognize that strict and absolute adherence to an exhaustive,
detailed, feature-by-feature comparison can result in rigidities. These
can constitute a substantial economic burden and can lead to excessive
cost if the law requires, or is interpreted to require, the replacement
dwelling to possess every feature of the acquired dwelling as an
absolute minimum.'' H.R. Conf. Rep. No. 100-27, at 247 (1987).
The Congress realized the difficulty in finding comparable
replacement dwellings and intended there to be some flexibility in the
definition. Removing the phrase ``style of living'' will not erode any
protections provided to the displaced person. Other criteria under the
definition of comparability would adequately cover the factors covered
by ``style of living.''
Section 24.2(a)(6)(vii) Comparable Replacement Dwelling--Currently
Available
We propose to revise section 24.2(a)(6)(vii) by deleting the last
sentence and moving it to a new section, 24.2(a)(6)(ix). This new
section would also provide that, when a person that is displaced from
government subsidized housing accepts an offer of government housing
assistance at the replacement dwelling, any requirements of the
government housing program relating to the number of rooms or living
space of the replacement dwelling would apply.
Section 24.2(a)(6)(viii) Comparable Replacement Dwelling--Within the
Financial Means of the Displaced Person
We propose to consolidate the definition of comparable replacement
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dwelling into a single paragraph, proposed as Sec. 24.2(a)(6)(viii).
This consolidation would define the purchase price or amount of rent
that is considered to be within the displaced person's financial means
for both a homeowner and a residential tenant. The consolidation would
reduce verbiage, without any change in substance.
Section 24.2(a)(8)(ii) Decent, Safe, and Sanitary Dwelling
We propose to add a requirement to the decent, safe, and sanitary
dwelling definition to reflect the protections provided by Public Law
102-550, Residential Lead-Based Paint Hazard Reduction Act of 1992.
Lead based paint hazard levels established by the U.S. Environmental
Protection Agency in accordance with Public Law 102-550 are intended to
protect families and children under the age of six from ingesting paint
dust or chips while occupying replacement housing. HUD's Lead Safe
Housing Rule (24 CFR 35, subparts B-R), which implements that law for
federally-owned and assisted housing, provides the strategy for
protecting occupants during temporary relocation. The replacement
dwelling unit must not have deteriorated paint (or deteriorated lead-
based paint if paint testing is conducted) or dust-lead hazards. A unit
built on or after January 1, 1978 meets the requirement. The lead
safety provision does not apply to displacement of persons who are
either elderly or disabled (unless a child under 6 years will reside or
be expected to reside in the unit), nor if the replacement dwelling
unit is a zero-bedroom dwelling. This proposed change would include
this same standard in Sec. 24.2(a)(8)(ii).
Section 24.2(a)(8)(v) Decent, Safe, and Sanitary Dwelling--Local
Housing Codes
We propose to amend this definition to require the Agencies to
follow the local housing code provision that addresses the maximum
number of persons permitted to occupy a room used for sleeping
purposes. In the absence of a local housing code requirement, the
written policy of the Agency would govern. Additionally, Agencies must
also follow any housing code provision which addresses the minimum
amount of square feet for each person occupying a dwelling unit or
portion thereof. This would make it easier to determine the number of
bedrooms required for a replacement dwelling unit.
Similarly, we propose that the local housing code or, if no such
code provision exists, the written policy of the Agency, would
determine the minimum age of children of the opposite gender which must
occupy separate rooms used for sleeping purposes. In the absence of a
local housing code or a written policy by the Agency, the minimum
standards established for a decent, safe and sanitary dwelling in Sec.
24.2(a)(8) are to be applied.
Section 24.2(a)(9)(ii)(D) Persons Not Displaced
We proposed to amend this section in appendix A to provide that
temporary relocation assistance to a person required to move from their
dwelling, business, farm, or nonprofit organization are limited to a
one year period. Such persons remaining in a temporary location for a
period exceeding one year must be offered all permanent relocation
assistance.
Section 24.2(a)(11) Dwelling Site
We propose to add a definition of the term ``dwelling site.'' The
dwelling site represents the area, and specifically the size of the
land area, on which a dwelling is located. The ``dwelling site,'' as
defined, is a typical lot for similar dwellings in the neighborhood
where the dwelling to be acquired is located. This definition would
help ensure more accurate computations of replacement housing payments
when a dwelling is located on a larger than normal site or when mixed-
use or multi-family properties are involved, and reflects current
practice.
Section 24.2(a)(12) Eviction for Cause
At the request of the HUD and with concurrence by the Task Force,
we propose to simplify the eviction for cause provision in Sec. 24.206
by adding a definition of eviction for cause to Sec. 24.2(a)(12). The
proposed definition includes some of the provisions that are currently
included in Sec. 24.206. Eviction is a legal process, not an
administrative procedure, and therefore, the proposed definition would
retain the current link to applicable State and local law.
Section 24.2(a)(15) Household Income
At the request of Federal, State, and local public Agencies having
the responsibility of administering the Uniform Act, we propose to add,
for clarity, a new definition, ``household income.'' This definition
would include examples of what does and does not constitute a person's
gross monthly household income for purposes of establishing a base
monthly income under proposed Sec. 24.402(b)(2)(ii).
Household income would generally include average monthly income
from all sources, but would exclude income from dependent children 18
years old or younger and full time students, and various governmental
assistance described in appendix A of this part, Sec. 24.2(a)(15).
Section 24.2(a)(16) Initiation of Negotiations
We propose to add a sentence to the definition of ``initiation of
negotiations'' to provide that, in the case of acquisitions of real
property, described in the initiation of negotiations, for the purposes
of Sec. 24.101(b)(1) through (5) (that must be based on an amicable
agreement with the owner) establishing a qualified tenant's eligibility
for relocation benefits, would occur when the Agency and the owner
reach agreement to purchase the real property.
Section 24.2(a)(18) Mobile Home
We propose to add a definition for a mobile home to this section.
The term includes both manufactured homes and recreational vehicles
used as residences. We also propose to add further requirements that
recreational vehicles must meet in order to be qualified for relocation
assistance in appendix A. Appendix A would also explain the difference
between manufactured homes and mobile homes recognized by HUD for that
Agency's programs. For purposes of this regulation, however, we propose
that both are to be considered as mobile homes. (Subpart F continues to
include an explanation of the different methods of computing relocation
assistance when a mobile home has been determined to be personal
property, and when it is determined to be real property.)
Section 24.2(a)(24) Salvage Value
We propose to revise the definition of ``salvage value'' to clarify
that the value of an item is to be based on the item being removed at
the buyer's expense.
Section 24.2(a)(30) Unlawful Occupant
We propose to change the term ``unlawful occupancy'' to ``unlawful
occupant'' so that the definition can be stated more clearly. We also
propose to remove the word ``squatter'' from the definition. The word
may be offensive and is not necessary to the definition. The wording
changes proposed would simplify the definition without changing its
meaning.
Section 24.2(a)(34) Waiver Valuation
We propose to use the term ``waiver valuation'' to identify the
valuation
[[Page 70346]]
process and product when Sec. 24.102(c)(2) appraisal waiver provisions
are implemented.
Section 24.9 Recordkeeping and Reports
In accordance with the Presidential Memorandum dated February 27,
1985, United States Department of Transportation is required to report
annually to the President's Council on Management Improvement, a part
of the Office of Management and Budget, on implementation of the
Uniform Act. Under the current reporting requirement, the Lead Agency
has received very little statistical information, and thus has little
or no knowledge of the extent and impact of other Federal funding
Agencies acquisition and displacement activities. Therefore, in Sec.
24.9(c), we propose to require Federal Agencies to submit an annual
report summarizing of their real property acquisition and displacement
activities to the Lead Agency. This proposed change would enable us to
prepare and submit a more comprehensive and useful report, in addition
to facilitating a more active monitoring role in our duty as Lead
Agency.
We propose to redesign Appendix B to be less burdensome and to
enable the information to be reported electronically. Appendix B is the
statistical support form of which Agencies are required to submit
reports of real property acquisition and displacement activities, if
required by the Federal Agency funding the project. Additionally, we
propose to remove the requirement that the Agency submit this report no
more frequently than every three years, since this report is issued
each year.
The Department of Housing and Urban Development and most other
Federal funding Agencies support this proposed change.
Subpart B--Real Property Acquisition
We propose to make a minor change by replacing the term ``fair
market value'' with ``market value'' throughout the subpart to better
reflect current appraisal terminology.
Section 24.101 Applicability of Acquisition Requirements
We propose to restructure Sec. 24.101(a) to clarify the
application of the real property acquisition requirements set forth in
this subpart, and to revise the exceptions to those requirements.
Currently, the two major exceptions to real property acquisition
requirements in Subpart B are voluntary transactions and acquisitions
in which the Agency does not have the power of eminent domain.
Based on the suggestion of Federal Agencies, we propose that these
exceptions no longer apply to acquisitions by Federal Agencies. We are
advised that some Federal Agencies use these types of transactions to a
significant extent. To best ensure that the objectives of the Uniform
Act are satisfied, we propose that Federal Agencies follow the
valuation processes set forth in this subpart for all of their direct
acquisitions. This proposal is also consistent with section 305(b)(2)
(42 U.S.C. 4655(b)(2)) of the Uniform Act, which allows these
exceptions for recipients of Federal financial assistance, but provides
no such exceptions for Federal Agencies themselves. We propose to
retain the exceptions for federally-assisted projects and programs.
Essential to the exceptions is the requirement that the owner must
be informed that the property would not be acquired unless an amicable
agreement can be reached. Currently, the regulation requires the Agency
to inform the owner what it believes to be the fair market value of the
property. We propose to require the Agency to inform the property owner
in writing (1) that the property will not be acquired unless an
amicable agreement can be reached, and (2) of the market value of his/
her property. This would more closely parallel the Uniform Act
requirement that is applicable to covered transactions, and provide the
property owner with documented assurance of the Agency's authority and
intentions.
Some Agencies suggested that the requirement that the Agency inform
the owner of what it believes to be market value in Sec. 24.101(a)(1)
and (2) be revised to also include a requirement for a supporting
appraisal. We have not proposed adding such a requirement. However, we
propose adding language to Appendix A noting that, while the regulation
does not require an appraisal in these cases, an Agency may still
decide to use some form of an appraisal, and, in any event, an agency
must have some reasonable basis for the valuation required by Sec.
24.101(a)(1) and (2).
To assist readers/users, we propose to add a cross reference to the
location in the rule of relocation assistance provisions that are
applicable to any tenants that must move as a result of these excepted
acquisitions.
We propose to delete the introductory phrase in proposed Sec.
24.101(c), currently Sec. 24.101(b), to eliminate unnecessary
verbiage.
Section 24.102 Basic Acquisition Policies
The Uniform Act provides that the requirement for an appraisal may
be waived in cases involving the acquisition of property with a low
market value. We propose to clarify Sec. 24.102(c)(2) by separating it
into paragraphs (i) and (ii). Paragraph (i) would concern donations and
is essentially unchanged. Paragraph (ii) would address low value
properties and would specify that when such properties are to be
acquired, and the appraisal waived, the Agency must prepare a ``waiver
valuation,'' a term proposed to be defined in Sec. 24.2(a)(34). We
propose to raise the appraisal waiver threshold in Sec. 24.102(c)(2)
from $2,500 to $10,000. In addition, we propose to add a new provision
that would allow the Federal funding Agency to raise the threshold up
to a maximum of $25,000, provided that the Agency acquiring the real
property offers the property owner the option of having an appraisal
performed.
These proposed changes reflect the general increase in property
values since the present threshold was established. Comments we have
received and our experience to date, have shown no indication of
administrative abuse or property owner objection. Broad Agency support
indicates a higher threshold is justified.
Section 24.102(e) Summary Statement
We propose to revise the language in (3) to be clearer and more
specific.
Section 24.102(i) Administrative Settlement
We propose to revise the language to require more specific
information in the written justification (``state'' rather than
``indicate'') and delete specific suggestions (``appraisals, recent
court awards, estimated trial costs, or valuation problems'') in favor
of requesting ``what available information, including trial risks,
supports the settlement.''
Section 24.102(n) Conflict of Interest
Language currently in Sec. 24.103(e) Criteria for appraisals,
addresses conflicts of interest for appraisers and review appraisers.
Proposed language would add all persons making waiver valuations under
Sec. 24.102(c)(2) to this section. This proposed change would bring
equal conflict of interest standards to all individuals valuing real
property, whether their work be waiver valuations, appraisal, or
appraisal review, and would clarify who is covered.
[[Page 70347]]
We also propose adding a new provision that any person functioning
as a negotiator shall not supervise or formally evaluate either the
appraiser, review appraiser or person making waiver valuations. This
provision would enhance appraiser independence and further support the
Uniform Act concept that the appraisal is part of the acquisition
process that includes not only appraisal and appraisal review, but also
the Agency responsibility and authority to establish an amount, based
on an approved (reviewed) appraisal, believed to be just compensation,
offer that amount to the property owner, and be prepared to consider
updating the offer of just compensation (Sec. 24.102(g)) and
administrative settlement (Sec. 24.102(i)), as appropriate.
Recognizing that some Federal assistance recipients, particularly those
with limited staff resources, may find this provision unworkable, we
propose that, in such cases, the Federal funding agency may waive this
provision. And, since the proposed provision would apply to more
individuals than just the appraiser, we propose to relocate it to be
under basic acquisition policies.
Section 24.103 Criteria for Appraisal
The revisions we propose to Sec. Sec. 24.103 and 24.104 are the
first since the Appraisal Foundation published the Uniform Standards of
Professional Appraisal Practice (USPAP).\2\ Considerable confusion and
misunderstanding as to the applicability of USPAP provisions to Uniform
Act real property acquisitions have existed ever since USPAP was
published. The Uniform Act and 49 CFR Part 24 set the requirements for
appraisal and appraisal review in support of Federal and federally-
assisted acquisition of real property for government projects.
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\2\ Uniform Standards of Professional Appraisal Practice
(USPAP). Published by the Appraisal Foundation, a non-profit
educational organization. Copies may be ordered from the Foundation
at the following URL: http://www.appraisalfoundation.org/html/USPAP2003/toc.htm.
---------------------------------------------------------------------------
Appraisers who are committed to adhere to USPAP by virtue of State
appraisal licensing or certification should look to the provisions of
USPAP, including the scope of work, the Jurisdictional Exception Rule
and the Supplemental Standards provisions, and their State Appraisers'
board for guidance on how they can remain in compliance with USPAP and
perform appraisals for Agencies following Uniform Act and 49 CFR part
24 requirements.
Many of the proposed provisions of Sec. Sec. 24.103 and 24.104,
are intended to assist the appraiser, the Agency and others in
understanding the requirements of these subparts in light of USPAP.
We propose to change the terminology throughout this section from
``standards'' to ``requirements'' to avoid confusion with USPAP
standards rules. We also propose to add the phrase ``Federal and
federally-assisted program'' to more accurately identify the type of
appraisal practices that are to be referenced, and to differentiate
them from private sector, especially mortgage lending, appraisal
practice.
Section 24.103(a) Appraisal Requirements
We propose to add a sentence indicating that these regulations set
forth the requirements for real property acquisition appraisals for
Federal and federally-assisted programs. This would make it clear that
other performance standards, such as USPAP and those issued by
professional appraisal societies, do not govern programs covered by the
Uniform Act. We propose to reorder other sentences in the paragraph for
greater clarity, and to add a requirement for a scope of work statement
in each appraisal. In appendix A, we propose to add a discussion on
preparing the scope of work. We also propose to insert the word
``simple'' to help identify and differentiate the ``minimum
requirements'' appraisal. We propose to move the requirements now in
Sec. 24.103(a)(1) to the scope of work, as discussed in appendix A,
and renumber the remaining detailed appraisal requirements (1) through
(5).
Section 24.103(a)(3)
To clarify the intent of this section, we propose to add language
that describes the content of a detailed appraisal to conform with
currently used terminology (sales comparison approach). We also propose
to move the discussion of the Agency's authority to require only the
market approach (sales comparison approach) to appendix A, where we
propose it be included in the determination of the scope of work.
Section 24.103(b)
We propose to delete the first phrase because it is redundant.
Section 24.103(d)
We propose to specifically add ``review appraisers'' to clarify
that they are included in this section that addresses appraiser
qualifications. We also propose to add a discussion to appendix A to
emphasize the need for appraisers and review appraisers to be qualified
and competent, and that State licensing or certification can help
provide an indication of an appraiser's abilities.
Section 24.104 Review of Appraisals
We propose to use consistent terminology to refer to the person
performing appraisal reviews, i.e., review appraiser. We also propose
to add language to clarify and specify the responsibilities,
authorities and expectations associated with appraisal review.
Section 24.104(a)
We propose to add language that would specifically state that the
review appraiser's examination of the appraisal must include
examination of the presentation and analysis of market information.
While this may not be a change from what Agencies, as a matter of
practice, now expect of review appraisers, we believe this proposed
language would avoid misunderstanding and confusion. Also, we propose
to state clearly that the review appraiser is to ensure that appraisal
performance complies with appraisal requirements in Sec. 24.103 and
other applicable requirements, and supports the appraiser's opinion of
value. This would avoid any misunderstanding as to the criteria for the
review. The level of analysis and reporting would depend on the
complexity of the appraisal and appraisal review problems. We propose
that the report identify the appraisal report(s) reviewed, document the
findings and conclusions arrived at during the review of the
appraisal(s), and identify each appraisal report as rejected, accepted
(meets all requirements, but not selected as approved), or approved (as
the basis for the establishment of the amount believed to be just
compensation). Identification of each appraisal report is proposed as a
method of avoiding confusion as to the status of each reviewed
appraisal.
Section 24.104(b)
We propose to add language that would make it clear that the review
appraiser may develop independent valuation information as part of the
appraisal review process.
Section 24.104(c)
We propose to add language that would require the review appraiser
to prepare a written report and specify what is to be in the report.
We also propose that the review appraiser prepare a signed
certification, which would state the parameters of the review and the
approved value and, if
[[Page 70348]]
appropriate, the amount believed to be just compensation to be offered
the property owner.
Subpart C--General Relocation Requirements
Section 24.202 Applicability
We propose to add a sentence to Sec. 24.202 that adds a
requirement that displaced persons be fully informed of their rights
and benefits. It has come to our attention that displaced persons have
been asked to waive their relocation rights and benefits without being
informed of the extent of those benefits. This proposal would protect
and strengthen the requirement that Agencies fully inform displaced
persons of any rights and benefits they may be eligible for under this
part.
This proposal is also integral to new proposed Sec. 24.207(f),
Waiver of relocation benefits, which would prohibit Agencies from
proposing or asking displaced persons to waive their relocation rights
and benefits.
Section 24.203(d) Notice of Intent To Acquire
We propose to move the definition of ``notice of intent to
acquire'' from Sec. 24.2 ``Definitions'' to Sec. 24.203, ``Relocation
notices,'' with a minor revision. This proposed revision would be for
continuity and clarity.
Section 24.205 Relocation Planning, Advisory Services and Coordination
In response to widespread concern about the inadequacy of Uniform
Act relocation and reestablishment procedures and payments for
displaced businesses, we sponsored the National Business Relocation
Study \3\ (``the study''). The study, undertaken for FHWA by an
independent consultant, investigated business relocation concerns and
provided recommendations to develop solutions to these problems.
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\3\ The National Business Relocation Study (2002) is available
for public inspection at the following URL: http//www.fhwa.dot.gov/realestate/nbrs2002.htm.
---------------------------------------------------------------------------
The study found that relocation assistance advisory services for
businesses were generally considered fair to poor. Some of the findings
specifically noted that relocation agents were not adequately trained
or informed to address the complexities of complicated business
relocations, and were unable to provide meaningful assistance in
locating replacement properties.
The changes proposed in this section are based upon the findings
and recommendations of the study and are meant to address the added
burden of displacement on businesses, and provide additional assistance
to increase businesses' viability after displacement.
Section 24.205(a) Relocation Planning
We propose to change Sec. 24.205(a) to provide additional items
for Agencies to consider in planning for business relocations.
The Uniform Act and this section of the regulation require Agencies
to plan federally funded programs and projects in such a manner that
Agencies recognize the problems associated with displacement and
develop solutions to minimize the adverse affects of displacement. An
Agency must engage in such planning before proceeding with any action,
which causes displacement and should scope the plan to the complexity
and nature of the displacing action.
Currently, this section of the regulation provides examples of
items to consider in relocation planning. The planning considerations
currently include both residential and non-residential items, but
residential planning requirements are more comprehensive than the non-
residential planning ones. We recognize that the Uniform Act requires a
more generous ``make whole'' approach for residential displacements.
However, we also recognize that a significant number of displaced small
businesses have not been able to successfully relocate. Therefore, we
propose to require the Agency to engage in planning for the problems
associated with non-residential displacement.
Section 24.205(c)(2)(i)(A)-(F) Relocation Assistance Advisory Services
We propose to change Sec. 24.205(c)(2)(i)(A) through (F) to
include six specific items in personal interviews for business
relocations. These six paragraphs are a result of our National
Relocation Business Study and will assist in determining the future
needs of displaced businesses.
During the five national listening sessions, the FHWA received many
comments concerning the lack of guidance and direction on what
information the Agency should obtain when making personal interviews
with businesses. The FHWA also received testimony from States and Local
Public Agencies of actual cases where good interviewing and early
planning is credited with preventing business closures.
The Uniform Act and this section of the regulation requires
Agencies to ensure that relocation assistance advisory services are
made available to all persons displaced by the Agency. A critical
element in any successful relocation, and also an advisory services
requirement, is to determine the needs and preferences of displaced
persons through a personal interview.
Currently, this section of the regulations provides no examples of
items for Agencies to consider in personal interviews for either
residential or non-residential displacements. Generally, we believe
Agencies do not need additional guidance in conducting personal
interviews for residential displacements. However, we believe that
specific guidance in conducting personal interviews for non-residential
displacements is necessary to help address the added burden of
displacement on businesses and provide additional assistance to
increase their viability after displacement. Therefore, we have
proposed guidance in (c)(2)(i)(A) through (F) of this section to assist
Agencies in conducting personal interviews. This proposed change is
based upon the findings and recommendations of the National Business
Relocation Study.
Section 24.205(c)(2)(ii)(C) Relocation Assistance Advisory Service
We propose to revise this section to permit any displacing agency
that has a program objective of providing minority persons with an
opportunity to relocate to areas outside of minority concentration to
provide reasonable and justifiable increases in the replacement housing
payment to facilitate such moves.
Section 24.205(c)(2)(ii)(D) Transportation
In order to make it clear that all displaced persons must be
offered transportation to inspect replacement housing, we propose to
eliminate the specific reference to the elderly and handicapped in the
current regulation.
Section 24.206 Eviction for Cause
We propose to revise this section on eviction for cause by moving
several of the current provisions to the new definition of eviction for
cause in Sec. 24.2(a)(12).
Section 24.207(f) Waiver of Relocation Benefits
We propose to implement a new requirement for ``waiver of
relocation benefits.'' This requirement would offer more protection to
displaced persons. It would prohibit an Agency from proposing or
requesting a displaced person to give up his/her rights or entitlements
to relocation assistance.
[[Page 70349]]
We do not believe that an otherwise eligible person may relieve a
governmental body of its statutory obligation to provide Uniform Act
assistance by agreeing to waive such assistance. The primary purpose of
the Uniform Act is to impose requirements upon Agencies that acquire
property and displace persons for Federal or federally-funded projects.
The Uniform Act does not grant rights or benefits directly to
individuals, rather it imposes duties and obligations upon Federal,
State, and local governments.
A statement or agreement by a displaced person who does not wish to
receive certain assistance does not free a government Agency from the
obligations or requirements imposed by Federal law. In such a case
where a displaced person indicates in writing he/she does not want
assistance, the Federal or State Agencies must still fully inform the
displaced person of all the assistance he/she is entitled to receive.
Section 24.207(g) Entitlement to Payments
We propose to add new paragraph (g) to Sec. 24.207 to clarify
that, since relocation payments are considered a form of compensation,
they do not constitute Federal financial-assistance, and accordingly,
the expenditure of such relocation payments by a displaced person would
not trigger further application of the Uniform Act or similarly
applicable Federal requirements.
Section 24.208(f)(1) Aliens Not Lawfully Present in the United States
We propose that the references to the Immigration and
Naturalization Service (INS) in Sec. 24.208(f)(1) be revised to
reflect the fact that the INS has become part of the Department of
Homeland Security, and renamed the Bureau of Citizenship and
Immigration Services (BCIS).
Subpart D--Payments for Moving and Related Expenses
We propose to substantially reorganize Subpart D. With few
exceptions, the basic content would remain the same; however, based
upon the comments from our 5 national public listening sessions and
comments from other Agencies, this subpart needs to be reorganized for
clarity and ease of use. Accordingly, we propose to realign the
different moving costs allowance provisions.
We propose to divide Subpart D into six sections. We would transfer
a number of criteria from Sec. 24.304, Reestablishment Expense, with
its $10,000 limit, to Sec. 24.301, Payment for actual reasonable
moving and related expenses, and Sec. 24.303, Payment for related non-
residential expenses, where there are no limits and the payment is
determined by actual, reasonable and necessary criteria. This would
offer greater flexibility in assisting small businesses, farms, and
non-profit organizations by removing several relocation costs from
inclusion in the $10,000 statutory limit placed on reestablishment
expenses. We propose to incorporate existing Sec. 24.303 into proposed
Sec. 24.301 with specific criteria clearly spelled out for each type
of move.
We propose several new paragraphs that would help clarify the
different types of moving costs. In Sec. 24.303 we propose that
payment would be provided for certain moving related costs that are not
personal property but are essential to the continuance of operation of
the business. We propose a new paragraph, Sec. 24.301(e), that would
compensate displaced persons who are not forced to move from their
residence or business but have personal property that must be moved
from the acquired area.
Section 24.301(b)(3), 24.301(c)(iii) and 24.301(d)(2)(ii) Moving Cost
Finding
We are proposing to add a provision allowing moving expenses to be
determined by a qualified staff person for small uncomplicated personal
property moves, commonly called a ``moving cost finding'' or ``a
finding.'' The proposed moving cost finding is another option available
to the displaced person and the Agency. This option cannot be forced on
the displaced person. The proposed moving cost finding would recognize
an additional method of moving personal property that is currently
being used by many Agencies. The proposed moving cost finding gives the
Agency a cost effective and expeditious way to pay for small
uncomplicated moves of personal property that are located outside of
the primary dwelling or business structure(s). This method would allow
the Agency to use qualified staff personnel to estimate the cost of
such small-uncomplicated personal property moves and offer the option
to the displaced person as a means of a self move. The cost would be
capped at $3,000 and not be binding on the displaced person. The
displaced person may elect any of the other methods to move. This
provides both the Agency and the displaced person a quick cost
effective way of making a self-move.
Section 24.301(e) Personal Property Only
We propose a new paragraph that would describe the relocation
assistance available to a displaced person for moving personal property
from the acquisition area, when the acquisition does not require the
relocation of a dwelling (including a mobile home), business, farms or
nonprofit organizations. Personal property only moves might include
moving such things as farm equipment or livestock where the related
buildings are not affected.
Section 24.301(g)(14)(i) Actual Direct Loss of Tangible Personal
Property
The Uniform Act provides that a displaced business, farm or non-
profit organization is entitled to be compensated for the actual direct
loss of tangible personal property. We propose to slightly change the
direct loss of tangible personal property provision to eliminate much
confusion over the term ``fair market value for continued use.''
Displacing Agencies are reluctant to discuss this benefit with
displaced businesses because of the uncertainty over how to determine
the payment.
Therefore, we propose to strike the phrase ``fair market value of
the item for continued use at the displacement site'' and replace it
with ``market value of the item, less the proceeds of the sale'' to
clarify the basis for valuing such property. This is consistent with
the intent of the Uniform Act, 42 U.S.C. 4622(a)(2).
Section 24.301(g)(14)(ii) Actual Direct Loss of Tangible Personal
Property
We propose to add language to this section that would clarify what
constitutes the estimated cost of moving when a business elects to
discontinue the business or the business has a piece of equipment in
storage or non-operational at the acquired site. Confusion comes from
whether or not such an estimate, used to compute the payment for actual
direct loss of tangible personal property, should include disconnecting
and reconnecting costs when the business elects to discontinue
operation or elects not to move the equipment to the replacement
location. The proposed language would clarify those cases in which
reconnecting costs would or would not be included in calculating the
estimated cost of moving such equipment. We believe this would be
consistent with the intent of the Uniform Act, to provide moving
benefits that are actual, reasonable and necessary.
[[Page 70350]]
Section 24.301(g)(17) Searching for a Replacement Location
We propose to move this paragraph from Sec. 24.303(a)(13) and
increase ``searching expenses'' from $1,000 to $2,500. This amount has
been set at $1,000 for 16 years. This proposed change is supported by
the FHWA's National Business Relocation Study which recommended
increasing the searching expenses. Searching expenses are intended to
provide compensation for the actual time and effort to find a
replacement site, which also should include reasonable costs to
investigate the site. Such costs may include the cost of obtaining
permits, attending zoning hearings or negotiating the purchase of a
replacement site. We propose to provide additional insight and
flexibility in appendix A on the application of searching expenses.
Section 24.301(g)(18) Low Value/High Bulk
We propose to add a paragraph on low value/high bulk property. The
current regulation does not address cases where items of personal
property owned by a displaced business are more costly to move than
they are worth. The proposed change would provide a procedure available
when the personal property to be moved is of low value and high bulk
and, in the judgment of the displacing Agency, the cost of moving the
personal property is disproportionate to its value.
Section 24.301(h)(12) Ineligible Moving and Related Expenses.
For clarity and uniformity, we propose to add refundable security
and utility deposits to the list of ineligible moving expenses, Sec.
24.301(h)(12). Since refundable deposits, by the name alone, indicates
a return of the investment to the displaced person, we do not consider
a refundable deposit a reimbursable expense under the Uniform Act.
Section 24.301(i)(1) and (2) Notification and Inspection
We propose to reorganize and merge this section from four
paragraphs into three paragraphs. We do not propose to change the
wording. These proposed changes are for clarity and readability. The
phrase ``The displaced person must'' is merged into the introductory
paragraph to eliminate redundancy and provide clarity.
Section 24.302 Fixed Payment for Moving Expenses-Residential Moves
This section provides that displaced residential owners and tenants
may receive a moving expense payment based on the Fixed Residential
Moving Cost Schedule \4\ approved by the FHWA. Currently, this section
provides that the Fixed Residential Moving Cost Schedule payment made
to a person with minimal personal possessions in occupancy of a
dormitory style room or whose residential move is performed by an
Agency at no cost to the individual is limited to $50. This has been
the limit since 1987. Since this payment is included in the fixed
residential moving cost schedule that is updated periodically, we are
proposing to remove the $50 dollar amount from Sec. 24.302, so that
the amount and future increases to this payment would be established by
the Fixed Residential Moving Cost Schedule. Therefore, each time the
schedule is updated, this payment could be updated as well. Agencies
must be sure they are using the most current edition of the Fixed
Residential Moving Cost Schedule.
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\4\ The Fixed Residential Moving Cost Schedule is available for
public inspection at the following URL: http://www.fhwa.dot.gov//////realestate/fixsch96.htm.
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Section 24.303 Related Non-Residential Eligible Expenses
As a result of reorganizing Subpart D for convenience and clarity,
the relocation of all items of personal property would be included in
Sec. 24.301. We are proposing to add a new section, Sec. 24.303, that
would provide reimbursement for several costs that are not considered
to be personal property but are essential to the continuing operation
of the business. These costs are additional expenses, other than for
moving personal property, that are not covered by either Sec. 24.301
(personal property) or Sec. 24.304 (real property.) Reimbursement for
these expenses would be allowed if they are determined by the Agency to
be ``actual, reasonable and necessary.''
Subpart E--Replacement Housing Payments
Section 24.401(e)(4) Incidental Expenses
We are proposing to add professional home inspection to the list of
reimbursable incidental expenses. Professional home inspections
including electrical systems, plumbing, and HVAC are commonplace and
should be added to the list of reimbursable incidental expenses. Most
agencies are currently allowing for this expense.
Section 24.401(f) Rental Assistance Payment for 180 Day Homeowner-
Occupant
We propose to add language that would allow a rental assistance
payment for a 180-day homeowner, who elects to rent, instead of
purchase, a replacement dwelling, to exceed $5,250 if the difference in
the estimated market rent of the acquired dwelling and the rent for a
comparable replacement dwelling support a higher figure. However, the
rental supplemental payment would not be allowed to exceed the amount
the 180-day owner would have received as a housing (purchase)
supplemental payment under proposed Sec. 24.401(b). It was brought to
our attention through the national listening sessions and through
discussions with other Federal Agencies that this change would be fair
and make the displaced person whole at no additional cost to the
Agency.
An example of the proposed change would be where an elderly couple
who own their home may want to rent rather than purchase another home.
Under current procedure, the Agency would compute a replacement housing
offer, which for this example is, say, $10,000. The Agency would then
compute a rental assistance payment based on the difference in market
rent and an available comparable dwelling, which for this example is
$7,000. Currently, we would only pay the maximum amount of $5,250. The
proposed change would allow the Agency to pay the $7,000 rent
supplement or any rent supplement up to what they would have received
as a 180-day homeowner ($10,000 in this example) to purchase a
replacement dwelling.
We feel this would be a fair and equitable approach, provided the
rent supplement does not exceed the amount the 180-day homeowner could
receive if he or she elected to purchase a replacement dwelling, rather
than to rent one.
Section 24.402(b)(2)(ii) Replacement Housing Payment for 90-Day
Occupant
We propose to slightly revise Sec. 24.402(b)(2)(ii) to reflect the
statutory requirement that only a low-income displaced person's income
shall be taken into consideration when calculating rental assistance
payments for a comparable replacement dwelling (42 U.S.C. 4624(a).)
Section 24.402(b)(2) currently uses 30 percent of a person's
average monthly gross household income as the criteria for computing
replacement housing payments for all eligible displaced tenants. This
often results in large payments to existing tenants who are
[[Page 70351]]
not low income and who elect to pay more than 30 percent of their
monthly gross household income for rental housing. This proposed change
would be more reflective of the intent of the Uniform Act in that it
assures consideration of income for low-income persons.
The proposal would rely on the U.S. Department of Housing and Urban
Development's Annual Survey of Income Limits.\5\ The proposed
procedures in Sec. 24.402(b)(2)(ii) would continue to use the 30
percent of monthly gross household income, but only for displaced
persons who qualify as low income. The base monthly rental would
continue to be established solely on the criteria in Sec.
24.402(b)(2).
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\5\ The Annual Survey of Income Limits can be found at the
following URL: http://www.huduser.org/datasets/il.html.
---------------------------------------------------------------------------
Section 24.402(c) Downpayment Assistance Payment
For uniformity, we propose to clarify that the replacement housing
payment received under Sec. 24.402(b) may be used for a downpayment
assistance payment. There is a disparity among Agencies as to the
amount that can be used as the downpayment. Most State and Federal
Agencies currently allow the full amount of the rent supplement to be
applied to the downpayment. Some, on the other hand, follow the
guidance in appendix A of this regulation which limits the amount of
the downpayment to what would ordinarily be required to obtain
conventional loan financing for a decent, safe and sanitary dwelling.
No such limits are included in the Uniform Act.
Therefore, we propose to add language that would allow the
displaced person to apply the full amount of the rent supplement to the
downpayment on a decent, safe and sanitary dwelling. We also propose to
slightly modify appendix A to conform to the proposed change.
Section 24.403(a) Determining Cost of Comparable Replacement Dwelling
At the request of several Federal Agencies, we are proposing that
Agencies pay, as a part of the reasonable cost of a comparable
replacement dwelling, the increased real estate taxes, if any, for
displaced 180-day owner occupants displaced as a result of a Federal or
federally-funded project. This payment would be based on the difference
between the monthly real estate tax on the acquired dwelling, and the
monthly real estate tax on the replacement dwelling at the time of
purchase but not to exceed the monthly real estate tax on a comparable
replacement dwelling.
The benefit would be calculated over a 24-month period. If the
displaced person elects to purchase a replacement dwelling where the
real estate tax at the time of purchase exceeds that of the comparable
replacement dwelling, the increased tax payment, if any, would be
limited to the increased monthly tax cost of the comparable replacement
dwelling at the time of purchase for 24 months. Should the displaced
person elect to purchase a replacement dwelling for less than the cost
of a comparable replacement dwelling, the increased tax calculation
would be based on the 24 month increase, if any, in the real estate tax
of the acquired dwelling and that of the replacement dwelling at the
time of purchase.
The rationale for this proposal is that increased real estate taxes
represent a real part of the cost of a replacement dwelling and are
often a financial burden, particularly for displaced persons with fixed
incomes, such as social security. Other situations could arise where a
displaced person that purchases a new home may lose his/her grand-
fathered real estate tax rate privileges and be subject to a higher
real estate tax rate. The proposal would comport with the spirit and
purpose of the Uniform Act, which is to treat displaced persons fairly
by ensuring that they are able to relocate to a replacement dwelling
that is comparable to the dwelling from which they were displaced.
Section 24.403(a)(1) Adjustment of Comparables
We propose to remove the requirement that Agencies adjust the
asking price of the comparable replacement dwelling in computing
replacement housing payments. Currently, this section bases a displaced
person's replacement housing payment on the adjusted difference between
the asking price and the selling price of a comparable replacement
dwelling as determined by an Agency survey of the area. This
requirement, because it can provide a replacement housing payment that
is different than the price of a comparable dwelling, is burdensome and
forces the displaced person to become a negotiator. This imposes an
unnecessary obligation on the displaced person for which he/she
probably is not qualified. Removing this requirement also would relieve
the Agency of the administrative burden of conducting a market survey
to determine the adjusted sales value. The procedure for determining a
comparable dwelling would not change, only the current requirement to
adjust the price of the selected comparable dwelling would be
eliminated. The replacement housing payment would be based on the list
price of the comparable dwelling not the adjusted price. Additionally,
the reference to the adjustment of comparable replacement dwellings in
Appendix A would be removed.
Subpart F--Mobile Homes
Based upon the comments from our five national public listening
sessions and comments from the other Agencies, we are proposing to
reorganize Subpart F for clarity and ease of use. The basic content
would remain unchanged.
We propose to move the required determinations to distinguish a
mobile home displacement as either an acquisition of real property or
as a move of personal property, to the eligibility paragraph in Sec.
24.502.
Subpart E provides replacement housing payments for an owner
occupant or tenant occupant displaced from a conventional dwelling.
Subpart F provides similar payments for an owner occupant or tenant
that is displaced from an acquired mobile home. However, mobile homes
may instead be considered personal property and relocated, not
purchased, which in turn may lead to the determination that the
occupant is not displaced from his/her dwelling. The proposed
reorganization merely consolidates the necessary displacement
determination, locating each with the applicable payment eligibility
provisions.
We propose to eliminate Sec. 24.505 (Additional rules governing
relocation payments to mobile home occupants), and consolidate its
provisions into the following paragraphs in which they are more closely
affiliated: Sec. 24.501 (Applicability); Sec. 24.502 (currently Sec.
24.503--Replacement housing payment for 180-day mobile homeowner-
occupants); and Sec. 24.503 (currently Sec. 24.504 --Replacement
housing payment for 90-day mobile home occupants.) Also, as previously
discussed in the preamble to Subpart D, we propose to consolidate the
moving provisions in Sec. 24.301(g)(8) through (g)(10).
Section 24.502(b) Replacement Housing Payment Computation for a 180-Day
Owner Displaced From a Mobile Home
We propose to modify and consolidate Sec. 24.502(b) that provides
for payment of actual moving expenses with the criteria for replacement
housing payments in those cases where the displacing Agency determines
the homeowner is displaced from the
[[Page 70352]]
mobile home for the reasons described in Sec. 24.502(a)(3).
Section 24.502(c) Rental Assistance Payment for a 180-Day Owner-
Occupant Displaced From Acquired Leased or Rented Site
We propose to allow the displaced person to claim the computed
rental assistance payment if it is applied towards the purchase of a
replacement site or added to the eligible purchase price of a
conventional dwelling or mobile home. This would eliminate the
confusion over combining the two payments (mobile home and mobile home
site) in the purchase of a conventional dwelling. The justification
being that when buying a conventional dwelling, the land and dwelling
are one; whereas, in many instances with mobile homes, the displaced
person owns the mobile home but rents the land. Therefore, in the case
where the mobile home owner buys a conventional dwelling we would allow
the rental supplement on the land (site) to be added to the housing
supplement, not to exceed the statutory limit of $22,500 (unless the
housing supplement is in Housing of Last Resort). The total payment
must be used toward the purchase of replacement decent, safe and
sanitary housing.
Distribution Tables
For ease of reference, distribution and derivation tables are
provided for the current sections and the proposed sections, as
follows:
Distribution Table
------------------------------------------------------------------------
Old section New section
------------------------------------------------------------------------
Subpart A
------------------------------------------------------------------------
24.1................................... 24.1 Text unchanged.
24.1(b)................................ 24.1(b) Revised.
24.2 Heading........................... 24.2 Heading revised.
None................................... 24.2(a) Introductory para.
added.
Agency................................. 24.2(a)(1) Paras. revised.
Alien not lawfully present in the 24.2(a)(2) Paras. redesignated.
United States.
Appraisal.............................. 24.2(a)(3) Redesignated.
Business............................... 24.2(a)(4) Redesignated.
Citizen................................ 24.2(a)(5) Redesignated.
Comparable replacement dwelling........ 24.2(a)(6) Redesignated.
(1) and (2)........................ 24.2(a)(6)(i) and (ii)
Redesignated and revised.
(3) through (6).................... 24.2(a)(6)(iii) through (vi)
Redesignated and text
unchanged.
(7) and (8)........................ 24.2(a)(6)(vii) and (viii)
Redesignated and revised.
None................................... 24.2(a)(6)(ix) Added.
Contribute materially.................. 24.2(a)(7) Redesignated and
text unchanged.
Decent, safe, and sanitary dwelling.... 24.2(a)(8) Redesignated and
revised.
(1)................................ 24.2(a)(8) Redesignated and
text unchanged.
None............................... 24.2(a)(8) Added.
(2) and (3)........................ 24.2(a)(8)(iii) and (iv)
Redesignated and text
unchanged.
(4)................................ 24.2(a)(8)(v) and (vi)
Redesignated and revised.
(5) and (6)........................ 24.2(a)(8)(vii) and (viii)
Redesignated and revised.
Displaced person....................... 24.2(a)(9) All paras.
redesignated.
Displaced person (1)(i)................ 24.2 (a)(9)(i)(A) Revised.
Displaced person (1)(iii).............. 24.2 (a)(9)(i)(C) Revised.
Displaced person (2)(v)................ 24.2(a)(9)(ii)(E) Revised.
Displaced person (2)(vii).............. 24.2(a)(9)(ii)(G) Revised.
Displaced person (2)(xi)............... 24.2(a)(9)(ii)(K) Revised.
Dwelling............................... 24.2(a)(10) Redesignated.
None................................... 24.2(a)(11) Added.
None................................... 24.2(a)(12) Added.
Farm operation......................... 24.2(a)(13) Redesignated.
Federal financial assistance........... 24.2(a)(14) Revised.
None................................... 24.2(a)(15) Added.
Initiation of negotiations--Intro. Para 24.2(a)(16)Intro. para.
Redesignated and text
unchanged.
(1) through(3)..................... 24.2(a)(16)(i) through (iii)
Redesignated and text
unchanged.
None............................... 24.2(a)(16)(iv) Added.
Lead agency............................ 24.2(a)(17) Redesignated.
None................................... 24.2(a)(18) Added.
Mortgage............................... 24.2(a)(19) Redesignated.
Nonprofit organization................. 24.2(a)(20) Redesignated.
Notice of intent to acquire or notice 24.203(d) Revised.
of eligibility for relocation
assistance.
Owner of a dwelling.................... 24.2(a)(21) Revised.
Person................................. 24.2(a)(22) Redesignated.
Program or project..................... 24.2(a)(23) Redesignated.
Salvage value.......................... 24.2(a)(24) Revised.
Small business......................... 24.2(a)(25) Redesignated.
State.................................. 24.2(a)(26) Redesignated.
Tenant................................. 24.2(a)(27) Redesignated.
Uneconomic remnant..................... 24.2(a)(28) Redesignated.
Uniform Act............................ 24.2(a)(29) Revised.
Unlawful occupancy..................... 24.2(a)(30) Revised.
Utility costs.......................... 24.2(a)(31) Redesignated.
Utility facility....................... 24.2(a)(32) Redesignated.
[[Page 70353]]
Utility relocation..................... 24.2(a)(33) Redesignated.
None................................... 24.2(a)(34) Added.
None................................... 24.2(b) Added.
24.3................................... 24.3 Revised.
24.4(a)(1) and (2)..................... 24.4(a)(1) and (2) Text
unchanged.
None................................... 24.4(a)(3) Added.
24.4(a)(3)............................. 24.4(a)(4) Revised.
24.4(b) and (c)........................ 24.4(b) and (c) Text unchanged.
24.5 through 24.7...................... 24.5 through 24.7 Text
unchanged.
24.8 (a) through (g)................... 24.8(a) through (g) Text
unchanged.
24.8(h)................................ 24.8(h) Revised.
24.8(i)................................ 24.8(i) Revised.
24.8(j) through (l).................... 24.8(j) through (l) Text
unchanged.
24.8(m)................................ 24.8(m) Removed.
24.8(n)................................ 24.8(m) Redesignated.
None................................... 24.8(n) Added
24.9(a) and (b)........................ 24.9(a) and (b) Text unchanged.
24.9(c)................................ 24.9(c) Revised.
24.10(a) through (f)................... 24.10(a) through (f) Text
unchanged.
24.10(g) and (h)....................... 24.10(g) and (h) Revised.
------------------------------------------------------------------------
Subpart B
------------------------------------------------------------------------
24.101 Heading......................... 24.101 Heading Text unchanged.
24.101(a).............................. 24.101(a) Revised.
24.101(a) Second para.................. 24.101(b) Redesignated and
revised.
24.101(a)(1)........................... 24.101(b)(1) Redesignated and
revised.
24.101(a)(1)(i)........................ 24.101(b)(1)(i) Redesignated
and revised.
24.101(a)(1)(ii) and (iii)............. 24.101(b)(1)(ii) and (iii)
Redesignated.
24.101(a)(1)(iv)....................... 24.101(b)(1)(iv) Redesignated
and revised.
24.101(a)(2)........................... 24.101(b)(2) Redesignated.
24.101(a)(2)(i)........................ 24.101(b)(2)(i) Redesignated.
24.101(a)(2)(ii)....................... 24.101(b)(2)(ii) Redesignated
and revised.
24.101(a)(3) and (4)................... 24.101(b)(3) and (4)
Redesignated.
24.101(a)(5)........................... 24.101(b)(5) Redesignated and
revised.
24.101(b).............................. 24.101(c) Redesignated and
revised.
24.101(c).............................. 24.101(d) Redesignated and
revised.
24.102(a).............................. 24.102(a) Text unchanged.
24.102(b).............................. 24.102(b) Revised.
24.102(c) Intro. para.................. 24.102(c) Intro. para. Text
unchanged.
24.102(c)(1) through (e) Intro. para... 24.102(c)(1) through (e) Intro
para. Revised.
24.102(e)(1) and (2)................... 24.102(e)(1) and (2) Text
unchanged.
24.102(e)(3)........................... 24.102(e)(3) Revised.
24.102(f).............................. 24.102(f) Revised.
24.102(g) and (h)...................... 24.102(g) and (h) Text
unchanged.
24.102(i) through (k).................. 24.102(i) through (k) Revised.
24.102 (l)............................. 24.102 (l) Text unchanged.
24.102(m).............................. 24.102(m) Revised.
None................................... 24.102(n) Added.
24.103 Heading......................... 24.103 Heading Text unchanged.
24.103(a).............................. 24.103(a) Revised.
24.103(a)(1)........................... Appendix 24.103(a).
24.103(a)(2)........................... 24.101(a)(1) Redesignated and
text unchanged.
24.103(a)(3)........................... 24.103(a)(2) Redesignated and
revised.
24.103(a)(4) through (6)............... 24.103(a)(3) through (5)
Redesignated.and text
unchanged.
24.103(b) and (c)...................... 24.103(b) and (c) Revised.
24.103(d) Heading and (d)(1)........... 24.103(d) Heading and (d)(1)
Revised.
24.103(d)(2)........................... 24.103(d)(2) Text unchanged.
24.103(e).............................. 24.102(n) Redesignated and
revised.
24.104 Introductory para............... 24.104 Introductory para. Text
unchanged.
24.104(a), (b) and (c)................. 24.104(a), (b) and (c) Revised.
24.105(a) and (b)...................... 24.105(a) and (b) Text
unchanged.
24.105(c).............................. 24.105(c) Revised.
24.105(d) Introductory para............ 24.105(d) Introductory para.
Revised.
24.105(d)(1) through 24.105(e)......... 24.105(d)(1) through 24.105(e)
Text unchanged.
24.106(a).............................. 24.106(a) Text unchanged.
24.106(b).............................. 24.106(b) Revised.
24.107 through 24.108.................. 24.107 through 24.108 Text
unchanged.
------------------------------------------------------------------------
Subpart C
------------------------------------------------------------------------
24.201................................. 24.201 Text unchanged.
[[Page 70354]]
24.202................................. 24.202 Revised.
24.203 (a) and (a)(1).................. 24.203(a) and (a)(1) Text
unchanged
24.203(a)(2) through (5)............... 24.203(a)(2)-(5) Revised.
24.203(b) and (c)...................... 24.203(b) and (c) Text
unchanged.
None................................... 24.203(d) Added.
24.204(a).............................. 24.204(a) Revised.
24.204(a)(1) through (c)............... 24.204(a)(1) through (c) Text
unchanged.
24.205(a).............................. 24.205(a) Revised.
24.205(a)(1) and (2)................... 24.205(a)(1) and (2) Revised.
24.205(a)(3)........................... 24.205(a)(3) Text unchanged.
None................................... 24.205(a)(4) Added.
24.205(a)(4)........................... 24.205(a)(5) Redesignated.
24.205(b) through 24.205(c)(2)......... 24.205(b) through 24.205(c)(2)
Text unchanged.
24.205(c)(2)(i)........................ 24.205(c)(2)(i) Revised.
None................................... 24.205(c)(2)(i)(A) through (F)
Added.
24.205(c)(2)(ii) and (c)(2)(ii)(A)..... 24.205(c)(2)(ii) and
(c)(2)(ii)(A) Text unchanged.
24.205(c)(2)(ii)(B) through (E)........ 24.205(c)(2)(ii)(B) through (E)
Revised.
None................................... 24.205(c)(2)(ii)(F) Added.
24.205(c)(2)(iii) through (v).......... 24.205(c)(2)(iii) through (v)
Text unchanged.
24.205(c)(2)(vi)....................... 24.205(e) Redesignated and text
unchanged.
None................................... 24.205(c)(2)(vi) Added.
24.205(d).............................. 24.205(d) Text unchanged.
24.206 Introductory paragraph.......... 24.206 Revised.
24.206(a) and (b)...................... 24.2(a)(12)(i) and (ii)
Redesignated and revised.
24.206(c).............................. 24.206 Redesignated and
revised.
24.207(a) through (d)(1)............... 24.207(a) through (d)(1) Text
unchanged.
24.207(d)(2)........................... 24.207(d)(2) Revised.
24.207(e).............................. 24.403(a)(5) Redesignated.
24.207(f).............................. 24.403(a)(6) Redesignated
24.207(g).............................. 24.207(e) Redesignated.
None................................... 24.207(f) and (g) Added.
24.208 Intro. para..................... 24.208 Intro. para. Text
unchanged.
24.208(a) through (f) Intro. para...... 24.208(a) through (f) Intro.
para. Text unchanged.
24.208(f)(1)........................... 24.208(f)(1) Revised.
24.208(f)(2) through 24.209............ 24.208(f)(2) through 24.209
Text unchanged.
------------------------------------------------------------------------
Subpart D
------------------------------------------------------------------------
24.301 Heading......................... 24.301 Heading Revised.
24.301 Introductory paragraph.......... 24.301(a) Redesignated and
revised.
None................................... 24.301(a) Added.
24.301(a) and (b)...................... 24.301(g)(1) and (g)(2)
Redesignated and text
unchanged.
None................................... 24.301(b) Added.
24.301(c).............................. 24.301(g)(3) Redesignated
None................................... 24.301(c) Added.
24.301(d) through (f).................. 24.301(g)(4) through (g)(6)
Redesignated.
None................................... 24.301(d) through (f) Added.
24.301(g).............................. 24.301(g)(7) Revised.
None................................... 24.301(g)(18) Added.
None................................... 24.301(h) through (j) Added.
24.302................................. 24.302 Revised.
24.303................................. 24.303 Revised.
24.303(a) through (a)(14).............. 24.301(g)(1) through (g)(17)
Redesignated and revised.
24.303(b) through (b)(3)............... 24.301(i)(1) and (2)
Redesignated and revised.
24.303(c).............................. 24.301(d) Redesignated and
revised.
24.303(d).............................. 24.301(j) Redesignated and text
unchanged.
24.303(e) through (e)(2)............... 24.301(f) through (f)(2)
Redesignated and text
unchanged.
24.304 Heading......................... 24.304 Heading Text unchanged.
24.304 Introductory para............... 24.304 Introductory para.
Revised.
24.304(a) through (a)(3)............... 24.304(a) through (a)(3) Text
unchanged.
24.304(a)(4)........................... 24.303(a) Redesignated.
24.304(a)(5)........................... 24.304(a)(4) Redesignated.
24.304(a)(6)........................... 24.301(g)(11) Redesignated.
24.304(a)(7)........................... 24.303(b) Redesignated and
revised.
24.304(a)(8)........................... 24.304(a)(5) Redesignated.
24.304(a)(9)........................... 24.303(b) Redesignated and
revised.
24.304(a)(10).......................... 24.304(a)(6) Redesignated.
24.304(a)(11).......................... 24.303(c) Redesignated and
revised.
24.304(a)(12).......................... 24.304(a)(7) Redesignated.
24.304(b)(1) through (3)............... 24.304(b)(1) through (3) Text
unchanged.
24.304(b)(4)........................... 24.304(b)(4) Revised.
24.305 section heading................. 24.305 Removed.
[[Page 70355]]
24.305(a) through (k).................. 24.301(h) through (h)(11)
Redesignated and revised.
None................................... 24.305(h)(12) Added.
24.306 section heading................. 24.305 Redesignated.
24.306(a).............................. 24.305(a) Redesignated and
revised.
24.306(a)(1) through (a)(5)............ 24.305(a)(1) through (a)(5)
Redesignated and text
unchanged.
24.306(a)(6)........................... 24.305(a)(6) Revised.
24.306(b).............................. 24.305(b) Revised.
24.306(c).............................. 24.305(c) Revised.
24.306(c)(1) through (d)............... 24.305(c)(1) through (d)
Redesignated.
24.306(e).............................. 24.305(e) Revised.
24.307 section heading................. 24.306 Redesignated.
24.307(a) through (b).................. 24.306(a) through (b)
Redesignated.
24.307(c).............................. 24.306(c) Revised.
------------------------------------------------------------------------
Subpart E
------------------------------------------------------------------------
24.401 through 24.401(b)............... 24.401 through 24.401(b) Text
unchanged.
24.401(c).............................. 24.401(c) Text unchanged.
24.401(c)(1)........................... 24.401(c)(1) Revised.
24.401(c)(1)(i) and (ii)............... 24.401(c)(1)(i) and (ii) Text
unchanged.
24.401(c)(2)........................... 24.403(a)(7) Redesignated and
revised.
24.401(c)(3)........................... 24.403(g) Redesignated and
revised.
24.401(c)(4)........................... 24.401(c)(2) Redesignated and
text unchanged.
24.401(c)(4)(i)........................ 24.401(c)(2)(i) Redesignated
and text unchanged.
24.401(c)(4)(ii) and (iii)............. 24.401(c)(2)(ii) and (iii)
Redesignated and revised.
24.401(c)(4)(iv)....................... 24.401(c)(2)(iv) Redesignated
and text unchanged.
24.401(d) through 24.401(e)(3)......... 24.401(d) through 24.401(e)(3)
Text unchanged.
24.401(e)(4)........................... 24.401(e)(4) Revised.
24.401(e)(5) through (e)(3)............ 24.401(e)(5) through (e)(9)
Text unchanged.
24.401(f).............................. 24.401(f) Revised.
24.402(a) through (b)(2)(i)............ 24.402(a) through (b)(2)(i)
Text unchanged.
24.402(b)(2)(ii)....................... 24.402(b)(2)(ii) Revised.
24.402(b)(2)(iii) and (b)(3)........... 24.402(b)(2)(iii) and (b)(3)
Text unchanged.
24.402(c)(1)........................... 24.402(c)(1) Revised.
24.402(c)(2)........................... 24.402(c)(2) Text unchanged.
24.403 Heading......................... 24.403 Text unchanged.
24.403(a) and (a)(1)................... 24.403(a) and (a)(1) Revised.
24.403(a)(2) through (4)............... 24.403(a)(2) through (4) Text
unchanged.
None................................... 24.403(a)(5) through (7) Added.
24.403(b).............................. 24.403(b) Revised.
24.403(c) through (f)(1)............... 24.403(c) through (f)(1) Text
unchanged.
24.403(f)(2)........................... 24.403(f)(2) Revised.
24.403(f)(3)........................... 24.403(f)(3) Text unchanged.
None................................... 24.403(g) Added.
24.404(a) through 404(a)(2)(ii)........ 24.404(a) through 404(a)(2)(ii)
Text unchanged.
24.404(a)(2)(iii)...................... 24.404(a)(2)(iii) Revised.
24.404(b) through 404(c)(1)............ 24.404(b) through 404(c)(1)
Text unchanged.
24.404(b) through 404(c)(1)(i)......... 24.404(b) through 404(c)(1)(i)
Revised.
24.404(c)(ii) through 404(c)(1)(vi).... 24.404(c)(ii) through
404(c)(1)(vi) text unchanged.
24.404(c)(1)(vii)...................... 24.404(c)(1)(vii) Revised.
24.404(c)(1)(viii)..................... 24.404(c)(1)(viii) Text
unchanged.
24.404(c)(2)........................... 24.404(c)(2) Revised.
24.404(c)(3)........................... 24.404(c)(3) Text unchanged.
------------------------------------------------------------------------
Subpart F
------------------------------------------------------------------------
24.501 Heading......................... 24.501 Heading Text unchanged.
24.501 Intro. para..................... 24.501(a) Revised.
None................................... 24.501(b) Added.
24.502(b) through (b)(3)............... 24.301(f)(8) through (f)(10)
Redesignated and revised.
24.503 section heading................. 24.502 Redesignated and
revised.
24.503(a).............................. 24.502(a) Redesignated and
revised.
24.503(a)(1)........................... 24.502(a)(1) Revised.
None................................... 24.502(a)(1)(i) through (iii)
Added.
24.503(a)(2) through (3)............... 24.502(a)(2) through (3)
Redesignated and text
unchanged.
24.503(a)(3)........................... 24.502(a)(3) Revised.
24.503(a)(3)(i) through (iv)........... 24.502(a)(3)(i) through (iv)
Redesignated and text
unchanged.
None................................... 24.502(b)(1) Added.
24.503(b).............................. 24.502(b)(2) Revised.
None................................... 24.502 (c) through (e) Added.
24.504 Heading......................... 24.503 Heading Redesignated and
text unchanged.
24.504 Intro. para..................... 24.503 Intro. para.
Redesignated.
[[Page 70356]]
24.504(a) and (b)...................... 24.503(a) and (b) Redesignated
and text unchanged.
24.504(c).............................. 24.503(c) Redesignated and
revised.
24.505(a) through (e).................. 24.505(a) through (e) Removed.
24.505(e).............................. 24.501(b) Redesignated.
24.601................................. 24.601 Text unchanged.
24.602................................. 24.602 Revised.
24.603................................. 24.603 Text unchanged.
------------------------------------------------------------------------
Derivation Table
------------------------------------------------------------------------
New section Old section
------------------------------------------------------------------------
24.1................................... 24.1.
24.2(a)................................ None.
24.2(a)(1)............................. 24.2 Agency.
24.2(a)(2)............................. 24.2 Alien not lawfully present
in the United States.
24.2(a)(3)............................. 24.2 Appraisal.
24.2(a)(4)............................. 24.2 Business.
24.2(a)(5)............................. 24.2 Citizen.
24.2(a)(6)............................. 24.2 Comparable replacement
dwelling.
24.2(a)(6)(ix)......................... None.
24.2(a)(7)............................. 24.2 Contribute materially.
24.2(a)(8)............................. 24.2 Decent, safe, and sanitary
dwelling.
24.2(a)(8)(i).......................... 24.2 Decent, safe, and sanitary
dwelling, Para. (1).
24.2(a)(8)(ii)......................... None.
24.2(a)(8)(iii)........................ 24.2 Decent, safe, and sanitary
dwelling, Para. (2).
24.2(a)(8)(iv)......................... 24.2 Decent, safe, and sanitary
dwelling, Para. (3).
24.2(a)(8)(v).......................... 24.2 Decent, safe, and sanitary
dwelling, Para. (4), First
sentence.
24.2(a)(8)(vi)......................... 24.2 Decent, safe, and sanitary
dwelling, Para. (4), All text
after first sentence.
24.2(a)(8)(vii) and (viii)............. 24.2 Decent, safe, and sanitary
dwelling, Paras. (5) and (6).
24.2(a)(9)............................. 24.2 Displaced person.
24.2(a)(10)............................ 24.2 Dwelling.
24.2(a)(11)............................ None.
24.2(a)(12)............................ 24.206 Intro. para.
24.2(a)(12)(i) and (ii)................ 24.206(a) and (b).
24.2(a)(13)............................ 24.2 Farm operation.
24.2(a)(14)............................ 24.2 Federal financial
assistance.
24.2(a)(15)............................ None.
24.2(a)(16)............................ 24.2 Initiation of
negotiations.
24.2(a)(17)............................ 24.2 Lead Agency.
24.2(a)(18)............................ None.
24.2(a)(19)............................ 24.2 Mortgage.
24.2(a)(20)............................ 24.2 Nonprofit organization.
24.2(a)(21)............................ 24.2 Owner of a dwelling.
24.2(a)(22)............................ 24.2 Person.
24.2(a)(23)............................ 24.2 Program or project.
24.2(a)(24)............................ 24.2 Salvage value.
24.2(a)(25)............................ 24.2 Small business.
24.2(a)(26)............................ 24.2 State.
24.2(a)(27)............................ 24.2 Tenant.
24.2(a)(28)............................ 24.2 Uneconomical remnant.
24.2(a)(29)............................ 24.2 Uniform Act.
24.2(a)(30)............................ 24.2 Unlawful occupancy.
24.2(a)(31)............................ 24.2 Utility costs.
24.2(a)(32)............................ 24.2 Utility facility.
24.2(a)(33)............................ 24.2 Utility relocation.
24.2(a)(34)............................ None.
24.2(b)................................ None.
24.8(m)................................ 24.8(n).
24.8(n)................................ None.
24.101(b).............................. 24.101(a) 2nd para.
24.101(b)(1)........................... 24.101(a)(1).
24.101(b)(1)(i)........................ 24.101(a)(1)(i).
24.101(b)(1)(ii)....................... 24.101(a)(1)(ii).
24.101(b)(1)(iii)...................... 24.101(a)(1)(iii).
24.101(b)(1)(iv)....................... 24.101(a)(1)(iv).
24.101(b)(2)........................... 24.101(a)(2).
24.101(b)(2)(i)........................ 24.101(a)(2)(i).
24.101(b)(2)(ii)....................... 24.101(a)(2)(ii).
24.101(b)(3)........................... 24.101(a)(3).
[[Page 70357]]
24.101(b)(4)........................... 24.101(a)(4).
24.101(b)(5)........................... 24.101(a)(5).
24.101(c).............................. 24.101(b).
24.101(d).............................. 24.101(c).
24.102(n).............................. 24.103(e).
24.103(a)(1)........................... 24.103(a)(2).
24.103(a)(2)........................... 24.103(a)(3).
24.103(a)(3)........................... 24.103(a)(4).
24.103(a)(4)........................... 24.103(a)(5).
24.103(a)(5)........................... 24.103(a)(6).
24.203(d).............................. 24.2 Notice of intent to
acquire.
24.205(a)(4)........................... None.
24.205(a)(5)........................... 24.205(a)(4).
24.205(c)(2)(i)(A) through (F)......... None.
24.205(c)(2)(ii)(F).................... None.
24.205(c)(2)(vi)....................... Added.
24.205(e).............................. 24.205(c)(2)(vi) Redesignated
and text unchanged.
24.206................................. 24.206 Intro. para. and
24.206(c).
24.207(e).............................. 24.207(g)
24.207(f) and (g)...................... Added.
24.301(a).............................. 24.303(a) and 24.502(b).
24.301(a)(1)........................... 24.502(a).
24.301(b).............................. None.
24.301(b)(1) and (2)................... 24.301 Intro. para.
24.301(b)(1)........................... 24.303(a).
24.301(b)(2)(i)........................ 24.302 First sentence.
24.301(b)(3)........................... None.
24.301(c).............................. None.
24.301(d).............................. 24.303(a) and (c).
24.301(d)(1) and (2)................... 24.303(c).
24.301(f).............................. 24.303(e).
24.301(f)(8) through (10).............. 24.502(b) through (b)(3)
24.301(g)(1)........................... 24.301(a) and 24.303(a)(1).
24.301(g)(2)........................... 24.301(b) and 24.303(a)(2).
24.301(g)(3)........................... 24.301(a) and 24.303(a)(3).
24.301(g)(4)........................... 24.301(d) and 24.303(a)(4).
24.301(g)(5)........................... 24.301(e) and 24.303(a)(5).
24.301(g)(6)........................... 24.301(f) and 24.303(a)(7).
24.301(g)(7)........................... 24.301(g) and 24.303(a)(14).
24.301(g)(8)........................... 24.502(b)(1).
24.301(g)(9)........................... 24.502(b)(2).
24.301(g)(10).......................... 24.502(b)(3).
24.301(g)(11).......................... 24.303(a)(6).
24.301(g)(12).......................... 24.303(a)(8).
24.301(g)(12)(i) through (iii)......... 24.303(a)(8)(i) through (iii).
24.301(g)(13) through (17)............. 24.303(a)(9) through (13).
24.301(g)(18).......................... None.
24.301(h)(1) through (11).............. 24.305(a) through (k).
24.301(i).............................. 24.303(b).
24.301(j).............................. 24.303(d).
24.303 Intro. para..................... 23.303 Intro. para.
24.303(a).............................. 24.304(a)(4).
24.303(b).............................. 24.304(a)(7) and (a)(9).
24.303(c).............................. 24.304(a)(11).
24.304(a)(4)........................... 24.304(a)(5).
24.304(a)(5)........................... 24.304(a)(8).
24.304(a)(6)........................... 24.304(a)(10).
24.304(a)(7)........................... 24.304(a)(12).
24.304(b).............................. 24.305(b).
24.305 and 24.305(a) and (b)........... 24.306 and 24.306(a) and (b).
24.305(b)(1) through (4)............... 24.306(b)(1) through (4).
24.305(c) through (e).................. 24.306(c) through (e).
24.306................................. 24.307.
24.401(c)(2)........................... 24.401(c)(4).
24.403(a)(5)........................... 24.207(e).
24.403(a)(6)........................... 24.207(f).
24.403(a)(7)........................... 24.401(c)(2).
24.403(g).............................. 24.401(c)(3).
24.501(a).............................. 24.501 Intro. para.
24.501(b).............................. 24.505(e).
24.502 Heading......................... 24.503.
24.502(a).............................. 24.503(a)(1).
[[Page 70358]]
24.502(a)(1)........................... 24.503(a)(1).
24.502(a)(2) and (3)................... 24.503(a)(2) and (3).
24.502(b).............................. 24.503(b).
24.502(b)(1)........................... None.
24.502(b)(2)........................... 24.503(a)(3) and 503(b).
24.502(c).............................. 24.505(a).
24.502(d).............................. 24.503(a)(3)(iii).
24.502(e).............................. 24.505(b)(2).
24.503................................. 24.504.
------------------------------------------------------------------------
Public Meetings
Public meetings will be held on January 15, 22, and 28, 2004. The
January 15, 2004 meeting will be held in Washington, DC, United States
Department of Transportation, 400 7th Street SW., Room 8236; the
January 22, 2004 meeting will be held in Lakewood, CO, Zang Building,
Conference Room 360, 555 Zang Street. The January 28, 2004 meeting will
be held in Atlanta, GA, Atlanta Federal Center, Conference Room B, 61
Forsyth Street, SW., Atlanta, Georgia. Each meeting will be held from
10 am to 2 pm.
Rulemaking Analyses and Notices
All comments received before the close of business on the comment
closing date indicated above will be considered and will be available
for examination in the docket at the above address. Comments received
after the comment closing date will be filed in the docket and will be
considered to the extent practicable. In addition to late comments, the
FHWA will also continue to file relevant information in the docket as
it becomes available after the comment period closing date, and
interested persons should continue to examine the docket for new
material. A final rule may be published at any time after close of the
comment period.
Executive Order 12866 (Regulatory Planning and Review) and DOT
Regulatory Policies and Procedures
The FHWA has determined preliminarily that this action would not be
a significant regulatory action within the meaning of Executive Order
12866, nor would it be significant within the meaning of Department of
Transportation regulatory policies and procedures. It is anticipated
that the economic impact of this rulemaking would be minimal.
This action proposes to update and streamline the Uniform Act
regulation and does not propose any new initiatives. We have proposed
only nominal adjustments to enhance services and payments to persons
displaced by Federal and federally-assisted real property acquisitions.
The costs of the increased benefits will continue to be funded through
Federal and federally-assisted project funds. These proposed changes
would assist the 18 Federal Agencies that acquire real property and
several of these Agencies provided input in developing these proposals.
These proposed changes would not adversely affect, in a material
way, any sector of the economy. These changes would assist Agencies in
developing their programs that acquire real property by providing
increased assistance, especially for businesses, farms and non-profit
organizations. None of the proposed changes would materially alter the
budgetary impact of any entitlements, grants, user fees, or loan
programs. Consequently, a full regulatory evaluation is not required.
Regulatory Flexibility Act
In compliance with the Regulatory Flexibility Act (Pub. L. 96-354,
5 U.S.C. 601-612) the FHWA has evaluated the effects of this proposed
action on small entities and has determined that the proposed action
would not have a significant economic impact on a substantial number of
small entities.
This action proposes to update the governmentwide regulation that
provides assistance for persons, including small businesses, displaced
by government acquisition of real property. One of the reasons for
proposing the update is to increase assistance for displaced small
businesses. We anticipate this proposal would have a positive impact on
those relatively few small businesses that are affected by government
acquisition of real property. Financial impacts on local governments
are mitigated by the fact that any increased costs would accrue only on
federally-assisted programs, which would include participation of
Federal funds. For these reasons, the FHWA certifies that this action
would not have a significant economic impact on a substantial number of
small entities.
Unfunded Mandates Reform Act of 1995
This proposed rule would not impose unfunded mandates as defined by
the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4, March 22,
1995, 109 Stat. 48). The proposed updates are applicable only on
Federal and federally-assisted programs. This proposed rule will not
result in the expenditure by State, local, and tribal governments, in
the aggregate, or by the private sector, of $100 million or more in any
one year (2 U.S.C. 1532).
Executive Order 13132 (Federalism)
This proposed action has been analyzed in accordance with the
principles and criteria contained in Executive Order 13132, and the
FHWA has determined that this proposed action would not have a
substantial direct effect or sufficient federalism implications on
States that would limit the policymaking discretion of the States. The
FHWA has also determined that this proposed action would not preempt
any State law or State regulation or affect the States' ability to
discharge traditional State governmental functions.
Executive Order 12372 (Intergovernmental Review)
Catalog of Federal Domestic Assistance Program Number 20.205,
Highway Planning and Construction. The regulations implementing
Executive Order 12372 regarding intergovernmental consultation on
Federal programs and activities apply to this program.
Paperwork Reduction Act
Under the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501, et
seq.), Federal Agencies must obtain approval from the Office of
Management and Budget (OMB) for each collection of information they
conduct, sponsor, or require through regulations.
Most of the data FHWA proposes to collect is currently required
under the
[[Page 70359]]
existing regulation. All information the FHWA proposes to collect for
reporting purposes is statistical data from the 18 Federal Agencies
engaged in land acquisition and displacement activities. The PRA was
enacted to minimize paperwork burdens and recordkeeping requirements
that the Federal government imposes on non-Federal entities. All the
information this proposed rule proposes to collect comes from the 18
Federal Agencies that acquire real property for Federal and federally-
assisted projects, and the information is generally already collected
by those Agencies for their own internal purposes. Therefore, the FHWA
has determined that this proposal does not contain collection of
information requirements for the purposes of the PRA.
National Environmental Policy Act
The FHWA has analyzed this proposed action for the purpose of the
National Environmental Policy Act of 1969 (42 U.S.C. 4321) and has
determined that this proposed action would not have any effect on the
quality of the environment.
Executive Order 12630 (Taking of Private Property)
This proposed action would not affect a taking of private property
or otherwise have taking implications under Executive Order 12630,
Government Actions and Interface with Constitutionally Protected
Property Rights.
Executive Order 12988 (Civil Justice Reform)
This proposed action meets applicable standards in Sec. Sec. 3(a)
and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize
litigation, eliminate ambiguity, and reduce burden.
Executive Order 13045 (Protection of Children)
We have analyzed this proposed action under Executive Order 13045,
Protection of Children from Environmental Health Risks and Safety
Risks. This proposed action does not involve an economically
significant rule and does not concern an environmental risk to health
or safety that may disproportionately affect children.
Executive Order 13175 (Tribal Consultation)
The FHWA has analyzed this proposal under Executive Order 13175,
dated November 6, 2000, and believes that the proposed action will not
have substantial direct effects on one or more Indian tribes; will not
impose substantial direct compliance costs on Indian tribal
governments; and will not preempt tribal law. Therefore, a tribal
summary impact statement is not required.
Executive Order 13211 (Energy Effects)
We have analyzed this proposed rule under Executive Order 13211,
Actions Concerning Regulations That Significantly Affect Energy Supply,
Distribution, or Use. We have determined that it is not a significant
energy action under that order because it is not a significant
regulatory action under Executive Order 12866 and is not likely to have
a significant adverse effect on the supply, distribution, or use of
energy. Therefore, a Statement of Energy Effects under Executive Order
13211 is not required.
Regulation Identification Number
A regulation identification number (RIN) is assigned to each
regulatory action listed in the Unified Agenda of Federal Regulations.
The Regulatory Information Service Center publishes the Unified Agenda
in April and October of each year. The RIN contained in the heading of
this document can be used to cross reference this action with the
Unified Agenda.
List of Subjects in 49 CFR Part 24
Real property acquisition, Relocation assistance, Reporting and
recordkeeping requirements and Transportation.
Issued on: December 5, 2003.
Mary E. Peters,
Federal Highway Administrator.
In consideration of the foregoing, the FHWA proposes to revise
title 49 Code of Federal Regulations part 24, as set forth below:
PART 24--UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY
ACQUISITION FOR FEDERAL AND FEDERALLY-ASSISTED PROGRAMS
Subpart A--General
Sec.
24.1 Purpose.
24.2 Definitions and acronyms.
24.3 No duplication of payments.
24.4 Assurances, monitoring and corrective action.
24.5 Manner of notices.
24.6 Administration of jointly-funded projects.
24.7 Federal Agency waiver of regulations.
24.8 Compliance with other laws and regulations.
24.9 Recordkeeping and reports.
24.10 Appeals.
Subpart B--Real Property Acquisition
24.101 Applicability of acquisition requirements.
24.102 Basic acquisition policies.
24.103 Criteria for appraisals.
24.104 Review of appraisals.
24.105 Acquisition of tenant-owned improvements.
24.106 Expenses incidental to transfer of title to the Agency.
24.107 Certain litigation expenses.
24.108 Donations.
Subpart C--General Relocation Requirements
24.201 Purpose.
24.202 Applicability.
24.203 Relocation notices.
24.204 Availability of comparable replacement dwelling before
displacement.
24.205 Relocation planning, advisory services, and coordination.
24.206 Eviction for cause.
24.207 General requirements--claims for relocation payments.
24.208 Aliens not lawfully present in the United States.
24.209 Relocation payments not considered as income.
Subpart D--Payments for Moving and Related Expenses
24.301 Payment for actual reasonable moving and related expenses.
24.302 Fixed payment for moving expenses--residential moves.
24.303 Related non-residential eligible expenses.
24.304 Reestablishment expenses--non-residential moves.
24.305 Fixed payment for moving expenses--non-residential moves.
24.306 Discretionary utility relocation payments.
Subpart E--Replacement Housing Payments
24.401 Replacement housing payment for 180-day homeowner-occupants.
24.402 Replacement housing payment for 90-day occupants.
24.403 Additional rules governing replacement housing payments.
24.404 Replacement housing of last resort.
Subpart F--Mobile Homes
24.501 Applicability.
24.502 Replacement housing payment for 180-day mobile homeowner
displaced from a mobile home, and/or from the acquired mobile home
site.
24.503 Replacement housing payment for 90-day mobile home occupants.
Subpart G--Certification
24.601 Purpose.
24.602 Certification application.
24.603 Monitoring and corrective action.
Appendix A to Part 24--Additional Information
Appendix B to Part 24--Statistical Report Form
Authority: 42 U.S.C. 4601 et seq.; 49 CFR 1.48(cc).
[[Page 70360]]
Subpart A--General
Sec. 24.1 Purpose.
The purpose of this part is to promulgate rules to implement the
Uniform Relocation Assistance and Real Property Acquisition Policies
Act of 1970, as amended (42 U.S.C. 4601 et seq.), in accordance with
the following objectives:
(a) To ensure that owners of real property to be acquired for
Federal and federally-assisted projects are treated fairly and
consistently, to encourage and expedite acquisition by agreements with
such owners, to minimize litigation and relieve congestion in the
courts, and to promote public confidence in Federal and federally-
assisted land acquisition programs;
(b) To ensure that persons displaced as a direct result of Federal
or federally-assisted projects are treated fairly, consistently, and
equitably so that such displaced persons will not suffer
disproportionate injuries as a result of projects designed for the
benefit of the public as a whole; and
(c) To ensure that Agencies implement these regulations in a manner
that is efficient and cost effective.
Sec. 24.2 Definitions and acronyms.
(a) Definitions. Unless otherwise noted, the following terms used
in this part shall be understood as defined in this section:
(1) Agency. The term Agency means the Federal Agency, State, State
Agency, or person that acquires real property or displaces a person.
(i) Acquiring Agency. The term acquiring Agency means a State
Agency, as defined in paragraph (a)(1)(iv) of this section, which has
the authority to acquire property by eminent domain under State law,
and a State Agency or person which does not have such authority.
(ii) Displacing Agency. The term displacing Agency means any
Federal Agency carrying out a program or project, and any State, State
Agency, or person carrying out a program or project with Federal
financial assistance, which causes a person to be a displaced person.
(iii) Federal Agency. The term Federal Agency means any department,
Agency, or instrumentality in the executive branch of the Government,
any wholly owned government corporation, the Architect of the Capitol,
the Federal Reserve Banks and branches thereof, and any person who has
the authority to acquire property by eminent domain under Federal law.
(iv) State Agency. The term State Agency means any department,
Agency or instrumentality of a State or of a political subdivision of a
State, any department, Agency, or instrumentality of two or more States
or of two or more political subdivisions of a State or States, and any
person who has the authority to acquire property by eminent domain
under State law.
(2) Alien not lawfully present in the United States. The phrase
``alien not lawfully present in the United States'' means an alien who
is not ``lawfully present'' in the United States as defined in 8 CFR
103.12 and includes:
(i) An alien present in the United States who has not been admitted
or paroled into the United States pursuant to the Immigration and
Nationality Act (8 U.S.C. 1101 et seq.) and whose stay in the United
States has not been authorized by the United States Attorney General,
and
(ii) An alien who is present in the United States after the
expiration of the period of stay authorized by the United States
Attorney General or who otherwise violates the terms and conditions of
admission, parole or authorization to stay in the United States.
(3) Appraisal. The term appraisal means a written statement
independently and impartially prepared by a qualified appraiser setting
forth an opinion of defined value of an adequately described property
as of a specific date, supported by the presentation and analysis of
relevant market information.
(4) Business. The term business means any lawful activity, except a
farm operation, that is conducted:
(i) Primarily for the purchase, sale, lease and/or rental of
personal and/or real property, and/or for the manufacture, processing,
and/or marketing of products, commodities, and/or any other personal
property;
(ii) Primarily for the sale of services to the public;
(iii) Primarily for outdoor advertising display purposes, when the
display must be moved as a result of the project; or
(iv) By a nonprofit organization that has established its nonprofit
status under applicable Federal or State law.
(5) Citizen. The term citizen for purposes of this part, includes
both citizens of the United States and noncitizen nationals.
(6) Comparable replacement dwelling. The term comparable
replacement dwelling means a dwelling which is:
(i) Decent, safe and sanitary as described in paragraph (a)(8) of
this section;
(ii) Functionally equivalent to the displacement dwelling. The term
functionally equivalent means that it performs the same function, and
provides the same utility. While a comparable replacement dwelling need
not possess every feature of the displacement dwelling, the principal
features must be present. Generally, functional equivalency is an
objective standard, reflecting the range of purposes for which the
various physical features of a dwelling may be used. However, in
determining whether a replacement dwelling is functionally equivalent
to the displacement dwelling, the Agency may consider reasonable trade-
offs for specific features when the replacement unit is equal to or
better than the displacement dwelling. (See appendix A to this part);
(iii) Adequate in size to accommodate the occupants;
(iv) In an area not subject to unreasonable adverse environmental
conditions;
(v) In a location generally not less desirable than the location of
the displaced person's dwelling with respect to public utilities and
commercial and public facilities, and reasonably accessible to the
person's place of employment;
(vi) On a site that is typical in size for residential development
with normal site improvements, including customary landscaping. The
site need not include special improvements such as outbuildings,
swimming pools, or greenhouses. (See also Sec. 24.403(a)(2));
(vii) Currently available to the displaced person on the private
market except as provided in paragraph (a)(6)(ix) of this section. (See
appendix A, section 24.2(a)(6)); and
(viii) Within the financial means of the displaced person eligible
for a replacement housing payment. This means that after receipt of all
acquisition and relocation payments under this regulation (including
any amount deducted because of rent owed the Agency), the price or rent
(including utilities), as appropriate, of the replacement dwelling
offered as a comparable does not exceed the price or rent (including
utilities) of the dwelling from which displaced.
(ix) For a person receiving government housing assistance before
displacement, a dwelling that may reflect similar government housing
assistance. In such cases any requirements of the government housing
assistance program relating to the size of the replacement dwelling
shall apply. (See appendix A, section 24.2(a)(6)).
(7) Contribute materially. The term contribute materially means
that during
[[Page 70361]]
the 2 taxable years prior to the taxable year in which displacement
occurs, or during such other period as the Agency determines to be more
equitable, a business or farm operation:
(i) Had average annual gross receipts of at least $5,000; or
(ii) Had average annual net earnings of at least $1,000; or
(iii) Contributed at least 33 1/3 percent of the owner's or
operator's average annual gross income from all sources.
(iv) If the application of the above criteria creates an inequity
or hardship in any given case, the Agency may approve the use of other
criteria as determined appropriate.
(8) Decent, safe, and sanitary dwelling. The term decent, safe, and
sanitary dwelling means a dwelling which meets local housing and
occupancy codes. However, any of the following standards which are not
met by the local code shall apply unless waived for good cause by the
Federal Agency funding the project. The dwelling shall:
(i) Be structurally sound, weathertight, and in good repair;
(ii) Have no deteriorated paint (or no deteriorated lead-based
paint if paint testing is conducted) and have no dust-lead hazards, as
these terms are defined at 24 CFR 35.110, unless the displaced person
is either elderly or disabled and no child under 6 years of age will
reside or be expected to reside in the unit, or the replacement
dwelling unit is a zero-bedroom dwelling. A unit built on or after
January 1, 1978, shall meet this requirement;
(iii) Contain a safe electrical wiring system adequate for lighting
and other devices;
(iv) Contain a heating system capable of sustaining a healthful
temperature (of approximately 70 degrees) for a displaced person,
except in those areas where local climatic conditions do not require
such a system;
(v) Be adequate in size with respect to the number of rooms and
area of living space needed to accommodate the displaced person. The
number of persons occupying each habitable room used for sleeping
purposes shall not exceed that permitted by local housing codes or the
policies of the displacing Agency. In addition, the displacing Agency
shall follow the requirements for separate bedrooms for children of the
opposite gender included in local housing codes or the policies of such
Agencies;
(vi) There shall be a separate, well lighted and ventilated
bathroom that provides privacy to the user and contains a sink, bathtub
or shower stall, and a toilet, all in good working order and properly
connected to appropriate sources of water and to a sewage drainage
system. In the case of a housekeeping dwelling, there shall be a
kitchen area that contains a fully usable sink, properly connected to
potable hot and cold water and to a sewage drainage system, and
adequate space and utility service connections for a stove and
refrigerator;
(vii) Contains unobstructed egress to safe, open space at ground
level; and
(viii) For a displaced person with a disability, be free of any
barriers which would preclude reasonable ingress, egress, or use of the
dwelling by such displaced person. (See appendix A, section
24.2(a)(8).)
(9) Displaced person--(i) General. The term displaced person means,
except as provided in paragraph (a)(9)(ii) of this section, any person
who moves from the real property or moves his or her personal property
from the real property. (This includes a person who occupies the real
property prior to its acquisition, but who does not meet the length of
occupancy requirements of the Uniform Act as described at Sec.
24.401(a) and Sec. 24.402(a)):
(A) As a direct result of a written notice of intent to acquire
(see section 24.203(d)), the initiation of negotiations for, or the
acquisition of, such real property in whole or in part for a project;
(B) As a direct result of rehabilitation or demolition for a
project; or
(C) As a direct result of a written notice of intent to acquire, or
the acquisition, rehabilitation or demolition of, in whole or in part,
other real property on which the person conducts a business or farm
operation, for a project. However, eligibility for such person under
this paragraph applies only for purposes of obtaining relocation
assistance advisory services under Sec. 24.205(c), and moving expenses
under Sec. 24.301, Sec. 24.302 or Sec. 24.303.
(ii) Persons not displaced. The following is a nonexclusive listing
of persons who do not qualify as displaced persons under this part:
(A) A person who moves before the initiation of negotiations (see
section 24.403(d)), unless the Agency determines that the person was
displaced as a direct result of the program or project;
(B) A person who initially enters into occupancy of the property
after the date of its acquisition for the project;
(C) A person who has occupied the property for the purpose of
obtaining assistance under the Uniform Act;
(D) A person who is not required to relocate permanently as a
direct result of a project. Such determination shall be made by the
Agency in accordance with any guidelines established by the Federal
Agency funding the project. (See appendix A, section
24.2(a)(9)(ii)(D));
(E) An owner-occupant who moves as a result of an acquisition of
real property as described in Sec. 24.101(b)(1) through (5), or as a
result of the rehabilitation or demolition of the real property.
(However, the displacement of a tenant as a direct result of any
acquisition, rehabilitation or demolition for a Federal or federally-
assisted project is subject to this part.);
(F) A person whom the Agency determines is not displaced as a
direct result of a partial acquisition;
(G) A person who, after receiving a notice of relocation
eligibility (described at Sec. 24.203(b)), is notified in writing that
he or she will not be displaced for a project. Such notice shall not be
issued unless the person has not moved and the Agency agrees to
reimburse the person for any expenses incurred to satisfy any binding
contractual relocation obligations entered into after the effective
date of the notice of relocation eligibility;
(H) An owner-occupant who conveys his or her property, as described
in Sec. 24.101(b)(1) through (5), after being informed in writing that
if a mutually satisfactory agreement on terms of the conveyance cannot
be reached, the Agency will not acquire the property. In such cases,
however, any resulting displacement of a tenant is subject to the
regulations in this part; or
(I) A person who retains the right of use and occupancy of the real
property for life following its acquisition by the Agency;
(J) An owner who retains the right of use and occupancy of the real
property for a fixed term after its acquisition by the Department of
the Interior under Public Law 93-477, Appropriations for National Park
System, or Public Law 93-303, Land and Water Conservation Fund, except
that such owner remains a displaced person for purposes of subpart D of
this part;
(K) A person who is determined to be in unlawful occupancy prior to
or after the initiation of negotiations, or a person who has been
evicted for cause, under applicable law, as provided for in Sec.
24.206. However, advisory assistance may be provided to unlawful
occupants at the option of the Agency in order to facilitate the
project; or
(L) A person who is not lawfully present in the United States and
who has been determined to be ineligible for relocation assistance in
accordance with Sec. 24.208.
[[Page 70362]]
(10) Dwelling. The term dwelling means the place of permanent or
customary and usual residence of a person, according to local custom or
law, including a single family house; a single family unit in a two-
family, multi-family, or multi-purpose property; a unit of a
condominium or cooperative housing project; a non-housekeeping unit; a
mobile home; or any other residential unit.
(11) Dwelling site. The term dwelling site means a typical site
upon which a dwelling is located.
(12) Eviction for cause. The term eviction for cause means an
eviction in conformance with applicable State and local requirements,
provided:
(i) The eviction notice was received before or after the
initiations of negotiations and as a result of that notice is later
evicted; or
(ii) Eviction was for serious or repeated violations of material
terms of the lease or occupancy agreement.
(13) Farm operation. The term farm operation means any activity
conducted solely or primarily for the production of one or more
agricultural products or commodities, including timber, for sale or
home use, and customarily producing such products or commodities in
sufficient quantity to be capable of contributing materially to the
operator's support.
(14) Federal financial assistance. The term Federal financial
assistance means a grant, loan, lease payments or contribution provided
by the United States, except any Federal guarantee or insurance and any
interest reduction payment to an individual in connection with the
purchase and occupancy of a residence by that individual.
(15) Household income. The term household income means total gross
income received for a 12 month period from all sources (earned and
unearned) including, but not limited to wages, salary, child support,
alimony, unemployment benefits, workers compensation social security,
or the net income from a business. It does not include income received
or earned by dependent children and full time students under 18 years
of age. (See appendix A, section 24.2(a)(15) for examples of exclusions
to income.)
(16) Initiation of negotiations. Unless a different action is
specified in applicable Federal program regulations, the term
initiation of negotiations means the following:
(i) Whenever the displacement results from the acquisition of the
real property by a Federal Agency or State Agency, the initiation of
negotiations means the delivery of the initial written offer of just
compensation by the Agency to the owner or the owner's representative
to purchase the real property for the project. However, if the Federal
Agency or State Agency issues a notice of its intent to acquire the
real property, and a person moves after that notice, but before
delivery of the initial written purchase offer, the initiation of
negotiations means the actual move of the person from the property.
(ii) Whenever the displacement is caused by rehabilitation,
demolition or privately undertaken acquisition of the real property
(and there is no related acquisition by a Federal Agency or a State
Agency), the initiation of negotiations means the notice to the person
that he or she will be displaced by the project or, if there is no
notice, the actual move of the person from the property.
(iii) In the case of a permanent relocation to protect the public
health and welfare, under the Comprehensive Environmental Response
Compensation and Liability Act of 1980 (Public Law 96-510, or
Superfund) the initiation of negotiations means the formal announcement
of such relocation or the Federal or federally-coordinated health
advisory where the Federal Government later decides to conduct a
permanent relocation.
(iv) In the case of permanent relocation of a tenant as a result of
an acquisition of real property described in Sec. 24.101(b)(1) through
(5), the initiation of negotiations means acceptance of the Agency's
offer to purchase the real property.
(17) Lead Agency. The term Lead Agency means the Department of
Transportation acting through the Federal Highway Administration.
(18) Mobile home. The term mobile home includes manufactured homes
and recreational vehicles. (See appendix A, section 24.2(a)(18).)
(19) Mortgage. The term mortgage means such classes of liens as are
commonly given to secure advances on, or the unpaid purchase price of,
real property, under the laws of the State in which the real property
is located, together with the credit instruments, if any, secured
thereby.
(20) Nonprofit organization. The term nonprofit organization means
an organization that is incorporated under the applicable laws of a
State as a non-profit organization, and exempt from paying Federal
income taxes under section 501 of the Internal Revenue Code (26 U.S.C.
501).
(21) Owner of a dwelling. The term owner of a dwelling means a
person who is considered to have met the requirement to own a dwelling
if the person purchases or holds any of the following interests in real
property;
(i) Fee title, a life estate, a land contract, a 99 year lease, or
a lease including any options for extension with at least 50 years to
run from the date of acquisition; or
(ii) An interest in a cooperative housing project which includes
the right to occupy a dwelling; or
(iii) A contract to purchase any of the interests or estates
described in Sec. 24.2(a)(1)(i) or (ii) of this section, or
(iv) Any other interest, including a partial interest, which in the
judgment of the Agency warrants consideration as ownership.
(22) Person. The term person means any individual, family,
partnership, corporation, or association.
(23) Program or project. The phrase program or project means any
activity or series of activities undertaken by a Federal Agency or with
Federal financial assistance received or anticipated in any phase of an
undertaking in accordance with the Federal funding Agency guidelines.
(24) Salvage value. The term salvage value means the probable sale
price of an item offered for sale to knowledgeable buyers with the
requirement that it be removed from the property at a buyer's expense
(i.e., not eligible for relocation assistance). This includes items for
re-use as well as items with components that can be re-used or recycled
when there is no reasonable prospect for sale except on this basis.
(25) Small business. A small business is a business having not more
than 500 employees working at the site being acquired or displaced by a
program or project, which site is the location of economic activity.
Sites occupied solely by outdoor advertising signs, displays, or
devices do not qualify as a business for purposes of Sec. 24.304.
(26) State. Any of the several States of the United States or the
District of Columbia, the Commonwealth of Puerto Rico, any territory or
possession of the United States, or a political subdivision of any of
these jurisdictions.
(27) Tenant. The term tenant means a person who has the temporary
use and occupancy of real property owned by another.
(28) Uneconomic remnant. The term uneconomic remnant means a parcel
of real property in which the owner is left with an interest after the
partial acquisition of the owner's property, and which the Agency has
determined has little or no value or utility to the owner.
(29) Uniform Act. The term Uniform Act means the Uniform Relocation
Assistance and Real Property
[[Page 70363]]
Acquisition Policies Act of 1970 (Public Law 91-646, 84 Stat. 1894; 42
U.S.C. 4601 et seq.), and amendments thereto.
(30) Unlawful occupant. A person who occupies without property
right, title or payment of rent or a person legally evicted, with no
legal rights to occupy a property under State law. An Agency, at its
discretion, may consider such person to be in lawful occupancy.
(31) Utility costs. The term utility costs means expenses for heat,
lights, water and sewer.
(32) Utility facility. The term utility facility means any
electric, gas, water, steam power, or materials transmission or
distribution system; any transportation system; any communications
system, including cable television; and any fixtures, equipment, or
other property associated with the operation, maintenance, or repair of
any such system. A utility facility may be publicly, privately, or
cooperatively owned.
(33) Utility relocation. The term utility relocation means the
adjustment of a utility facility required by the program or project
undertaken by the displacing Agency. It includes removing and
reinstalling the facility, including necessary temporary facilities;
acquiring necessary right-of-way on a new location; moving, rearranging
or changing the type of existing facilities; and taking any necessary
safety and protective measures. It shall also mean constructing a
replacement facility that has the functional equivalency of the
existing facility and is necessary for the continued operation of the
utility service, the project economy, or sequence of project
construction.
(34) Waiver valuation. The term waiver valuation means the
valuation process used and the product produced when the Agency
determines that an appraisal is not required, pursuant to Sec.
24.102(c)(2) appraisal waiver provisions.
(b) Acronyms. The following acronyms are commonly used in the
implementation of programs subject to this part:
(1) BCIS. Bureau of Citizenship and Immigration Service.
(2) FEMA. Federal Emergency Management Agency.
(3) FHA. Federal Housing Administration.
(4) FHWA. Federal Highway Administration.
(5) FIRREA. Financial Institutions Reform, Recovery, and
Enforcement Act of 1989.
(6) HLR. Housing of last resort.
(7) HUD. U. S. Department of Housing and Urban Development.
(8) MIDP. Mortgage interest differential payment.
(9) RHP. Replacement housing payment.
(10) STURAA. Surface Transportation and Uniform Relocation Act
Amendments of 1987.
(11) URA. Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970.
(12) USDOT. U.S. Department of Transportation.
(13) USPAP. Uniform Standards of Professional Appraisal Practice.
Sec. 24.3 No duplication of payments.
No person shall receive any payment under this part if that person
receives a payment under Federal, State, local law, or insurance
proceeds which is determined by the Agency to have the same purpose and
effect as such payment under this part. (See appendix A, section 24.3.)
Sec. 24.4 Assurances, monitoring and corrective action.
(a) Assurances. (1) Before a Federal Agency may approve any grant
to, or contract, or agreement with, a State Agency under which Federal
financial assistance will be made available for a project which results
in real property acquisition or displacement that is subject to the
Uniform Act, the State Agency must provide appropriate assurances that
it will comply with the Uniform Act and this part. A displacing
Agency's assurances shall be in accordance with section 210 of the
Uniform Act. An acquiring Agency's assurances shall be in accordance
with section 305 of the Uniform Act and must contain specific reference
to any State law which the Agency believes provides an exception to
sections 301 or 302 of the Uniform Act. If, in the judgment of the
Federal Agency, Uniform Act compliance will be served, a State Agency
may provide these assurances at one time to cover all subsequent
federally-assisted programs or projects. An Agency, which both acquires
real property and displaces persons, may combine its section 210 and
section 305 assurances in one document.
(2) If a Federal Agency or State Agency provides Federal financial
assistance to a ``person'' causing displacement, such Federal or State
Agency is responsible for ensuring compliance with the requirements of
this part, notwithstanding the person's contractual obligation to the
grantee to comply.
(3) Any Agency or person solely acquiring property pursuant to the
provisions of Sec. 24.101(b)(1) through (5) need not provide the
assurances required by Sec. 24.4(a)(1) or (2).
(4) As an alternative to the assurance requirement described in
paragraph (a)(1) of this section, a Federal Agency may provide Federal
financial assistance to a State Agency after it has accepted a
certification by such State Agency in accordance with the requirements
in subpart G of this part.
(b) Monitoring and corrective action. The Federal Agency will
monitor compliance with this part, and the State Agency shall take
whatever corrective action is necessary to comply with the Uniform Act
and this part. The Federal Agency may also apply sanctions in
accordance with applicable program regulations. (Also see Sec. 24.603
of this part.)
(c) Prevention of fraud, waste, and mismanagement. The Agency shall
take appropriate measures to carry out this part in a manner that
minimizes fraud, waste, and mismanagement.
Sec. 24.5 Manner of notices.
Each notice which the Agency is required to provide to a property
owner or occupant under this part, except the notice described at Sec.
24.102(b), shall be personally served or sent by certified or
registered first-class mail, return receipt requested, and documented
in Agency files. Each notice shall be written in plain, understandable
language. Persons who are unable to read and understand the notice must
be provided with appropriate translation and counseling. Each notice
shall indicate the name and telephone number of a person who may be
contacted for answers to questions or other needed help.
Sec. 24.6 Administration of jointly-funded projects.
Whenever two or more Federal Agencies provide financial assistance
to an Agency or Agencies, other than a Federal Agency, to carry out
functionally or geographically related activities, which will result in
the acquisition of property or the displacement of a person, the
Federal Agencies may by agreement designate one such Agency as the
cognizant Federal Agency. In the unlikely event that agreement among
the Agencies cannot be reached as to which Agency shall be the
cognizant Federal Agency, then the Lead Agency shall designate one of
such Agencies to assume the cognizant role. At a minimum, the agreement
shall set forth the federally-assisted activities which are subject to
its terms and cite any policies and procedures, in addition to this
part, that are applicable to the activities under the agreement. Under
the agreement, the
[[Page 70364]]
cognizant Federal Agency shall assure that the project is in compliance
with the provisions of the Uniform Act and this part. All federally-
assisted activities under the agreement shall be deemed a project for
the purposes of this part.
Sec. 24.7 Federal Agency waiver of regulations.
The Federal Agency funding the project may waive any requirement in
this part not required by law if it determines that the waiver does not
reduce any assistance or protection provided to an owner or displaced
person under this part. Any request for a waiver shall be justified on
a case-by-case basis.
Sec. 24.8 Compliance with other laws and regulations.
The implementation of this part must be in compliance with other
applicable Federal laws and implementing regulations, including, but
not limited to, the following:
(a) Section I of the Civil Rights Act of 1866 (42 U.S.C. 1982 et
seq.).
(b) Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et
seq.).
(c) Title VIII of the Civil Rights Act of 1968 (42 U.S.C. 3601 et
seq.), as amended.
(d) The National Environmental Policy Act of 1969 (42 U.S.C. 4321
et seq.).
(e) Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 790 et
seq.).
(f) The Flood Disaster Protection Act of 1973 (Public Law 93-234).
(g) The Age Discrimination Act of 1975 (42 U.S.C. 6101 et seq.).
(h) Executive Order 11063--Equal Opportunity and Housing, revised
by Executive Order 12892.
(i) Executive Order 11246--Equal Employment Opportunity, as
amended.
(j) Executive Order 11625--Minority Business Enterprise.
(k) Executive Orders 11988--Floodplain Management, and 11990--
Protection of Wetlands.
(l) Executive Order 12250--Leadership and Coordination of Non-
Discrimination Laws.
(m) Executive Order 12630--Governmental Actions and Interference
with Constitutionally Protected Property Rights.
(n) Robert T. Stafford Disaster Relief and Emergency Assistance Act
(42 U.S.C. 5121 et seq.)
Sec. 24.9 Recordkeeping and reports.
(a) Records. The Agency shall maintain adequate records of its
acquisition and displacement activities in sufficient detail to
demonstrate compliance with this part. These records shall be retained
for at least 3 years after each owner of a property and each person
displaced from the property receives the final payment to which he or
she is entitled under this part, or in accordance with the applicable
regulations of the Federal funding Agency, whichever is later.
(b) Confidentiality of records. Records maintained by an Agency in
accordance with this part are confidential regarding their use as
public information, unless applicable law provides otherwise.
(c) Reports. (1) The Agency shall submit a report of its real
property acquisition and displacement activities under this part if
required by the Federal Agency funding the project. The report shall be
prepared in the format contained in appendix B of this part.
(2) Federal Agencies shall submit an annual report summarizing
their real property acquisition and displacement activities under this
part to the Lead Agency. The report may be prepared and submitted using
the format contained in appendix B of this part.
Sec. 24.10 Appeals.
(a) General. The Agency shall promptly review appeals in accordance
with the requirements of applicable law and this part.
(b) Actions which may be appealed. Any aggrieved person may file a
written appeal with the Agency in any case in which the person believes
that the Agency has failed to properly consider the person's
application for assistance under this part. Such assistance may
include, but is not limited to, the person's eligibility for, or the
amount of, a payment required under Sec. 24.106 or Sec. 24.107, or a
relocation payment required under this part. The Agency shall consider
a written appeal regardless of form.
(c) Time limit for initiating appeal. The Agency may set a
reasonable time limit for a person to file an appeal. The time limit
shall not be less than 60 days after the person receives written
notification of the Agency's determination on the person's claim.
(d) Right to representation. A person has a right to be represented
by legal counsel or other representative in connection with his or her
appeal, but solely at the person's own expense.
(e) Review of files by person making appeal. The Agency shall
permit a person to inspect and copy all materials pertinent to his or
her appeal, except materials which are classified as confidential by
the Agency. The Agency may, however, impose reasonable conditions on
the person's right to inspect, consistent with applicable laws.
(f) Scope of review of appeal. In deciding an appeal, the Agency
shall consider all pertinent justification and other material submitted
by the person, and all other available information that is needed to
ensure a fair and full review of the appeal.
(g) Determination and notification after appeal. Promptly after
receipt of all information submitted by a person in support of an
appeal, the Agency shall make a written determination on the appeal,
including an explanation of the basis on which the decision was made,
and furnish the person a copy. If the full relief requested is not
granted, the Agency shall advise the person of his or her right to seek
judicial review of the Agency decision.
(h) Agency official to review appeal. The Agency official
conducting the review of the appeal shall be either the head of the
Agency or his or her authorized designee. However, the official shall
not have been directly involved in the action appealed.
Subpart B--Real Property Acquisition
Sec. 24.101 Applicability of acquisition requirements.
(a) Federal program or project. The requirements of this subpart
apply to any acquisition of real property for a direct Federal program
or project, except acquisition for a program or project which is
undertaken by the Tennessee Valley Authority or the Rural
Electrification Administration. (See appendix A, section 24.101(a).)
(b) Programs and projects receiving Federal financial assistance.
The requirements of this subpart apply to any acquisition of real
property for programs and projects where there is Federal financial
assistance in any part of project costs except for the acquisitions
described in paragraphs (b)(1) through (5) of this section. The
relocation assistance provisions in this part are applicable to any
tenants that must move as a result of an acquisition described in
paragraphs (b)(1) through (5) of this section. Such tenants are
considered displaced persons. (See Sec. 24.2(a)(9))
(1) Acquisitions that meet all of the conditions in paragraphs
(b)(1)(i) through (iv) of this section.
(i) No specific site or property needs to be acquired, although the
Agency may limit its search for alternative sites to a general
geographic area. Where an Agency wishes to purchase more than one site
within a general geographic area on this basis, all owners are to be
treated similarly. (See appendix A, section 24.101(b)(1)(i).)
[[Page 70365]]
(ii) The property to be acquired is not part of an intended,
planned, or designated project area where all or substantially all of
the property within the area is to be acquired within specific time
limits.
(iii) The Agency will not acquire the property in the event
negotiations fail to result in an agreement, and the owner is so
informed in writing.
(iv) The Agency will inform the owner in writing of what it
believes to be the market value of the property. (See appendix A,
section 24.101(b)(1)(iv) & (2)(ii).)
(2) Acquisitions for programs or projects undertaken by an Agency
or person that receives Federal financial assistance but does not have
authority to acquire property by eminent domain, provided that such
Agency or person shall:
(i) Prior to making an offer for the property, advise the owner in
writing that it is unable to acquire the property in the event
negotiations fail to result in an amicable agreement; and
(ii) Inform the owner in writing of what it believes to be market
value of the property. (See appendix A, section 24.101(b)(1)(iv) &
(2)(ii).)
(3) The acquisition of real property from a Federal Agency, State,
or State Agency, if the Agency desiring to make the purchase does not
have authority to acquire the property through condemnation.
(4) The acquisition of real property by a cooperative from a person
who, as a condition of membership in the cooperative, has agreed to
provide without charge any real property that is needed by the
cooperative.
(5) Acquisition for a program or project which receives Federal
financial assistance from the Tennessee Valley Authority or the Rural
Electrification Administration.
(c) Less-than-full-fee interest in real property. The provisions of
this subpart apply when acquiring fee title subject to retention of a
life estate or a life use; to acquisition by leasing where the lease
term, including option(s) for extension, is 50 years or more; and to
the acquisition of permanent easements. (See appendix A, section
24.101(c).)
(d) Federally-assisted projects. For projects receiving Federal
financial assistance, the provisions of Sec. Sec. 24.102, 24.103,
24.104, and 24.105 apply to the greatest extent practicable under State
law. (See section 24.4(a).)
Sec. 24.102 Basic acquisition policies.
(a) Expeditious acquisition. The Agency shall make every reasonable
effort to acquire the real property expeditiously by negotiation.
(b) Notice to owner. As soon as feasible, the Agency shall notify
the owner in writing of the Agency's interest in acquiring the real
property and the basic protections provided to the owner by law and
this part. (See also Sec. 24.203.)
(c) Appraisal, waiver thereof, and invitation to owner. (1) Before
the initiation of negotiations, the real property to be acquired shall
be appraised, except as provided in Sec. 24.102(c)(2), and the
appraiser shall provide the owner, or the owner's designated
representative, an opportunity to accompany the appraiser during the
appraiser's inspection of the property.
(2) An appraisal is not required if:
(i) The owner is donating the property and releases the Agency from
its obligation to appraise the property, or
(ii) The Agency determines that an appraisal is unnecessary because
the valuation problem is uncomplicated and the market value is
estimated at $10,000 or less, based on a review of available data. When
an appraisal is determined to be unnecessary, the Agency shall prepare
a waiver valuation. The Federal Agency funding the project may, on a
case-by-case basis, approve exceeding the $10,000 threshold, up to a
maximum of $25,000, if the Agency acquiring the real property offers
the property owner the option of having the Agency appraise the
property. If the property owner elects to have the Agency appraise the
property, the Agency shall obtain an appraisal and not use procedures
described in this paragraph. (See appendix A, section 24.102(c)(2).)
(d) Establishment and offer of just compensation. Before the
initiation of negotiations, the Agency shall establish an amount which
it believes is just compensation for the real property. The amount
shall not be less than the approved appraisal of the market value of
the property, taking into account the value of allowable damages or
benefits to any remaining property. The amount believed to be just
compensation must be established by an Agency official. (See also Sec.
24.104.) Promptly thereafter, the Agency shall make a written offer to
the owner to acquire the property for the full amount believed to be
just compensation. (See appendix A, section 24.102(d).)
(e) Summary statement. Along with the initial written purchase
offer, the Agency shall provide the owner a written statement of the
basis for the offer of just compensation, which shall include:
(1) A statement of the amount offered as just compensation. In the
case of a partial acquisition, the compensation for the real property
to be acquired and the compensation for damages, if any, to the
remaining real property shall be stated separately.
(2) A description and location identification of the real property
and the interest in the real property to be acquired.
(3) An identification of the buildings, structures, and other
improvements (including removable building equipment and trade
fixtures) which are included as part of the offer of just compensation.
Where appropriate, the statement shall identify any other separately
held ownership interest in the property, e.g., a tenant-owned
improvement, and indicate that such interest is not covered by this
offer.
(f) Basic negotiation procedures. The Agency shall make reasonable
efforts to contact the owner or the owner's representative and discuss
its offer to purchase the property, including the basis for the offer
of just compensation and explain its acquisition policies and
procedures, including its payment of incidental expenses in accordance
with Sec. 24.106. The owner shall be given reasonable opportunity to
consider the offer and present material which the owner believes is
relevant to determining the value of the property and to suggest
modification in the proposed terms and conditions of the purchase. The
Agency shall consider the owner's presentation. (See appendix A,
section 24.102(f).)
(g) Updating offer of just compensation. If the information
presented by the owner, or a material change in the character or
condition of the property, indicates the need for new appraisal
information, or if a significant delay has occurred since the time of
the appraisal(s) of the property, the Agency shall have the
appraisal(s) updated or obtain a new appraisal(s). If the latest
appraisal information indicates that a change in the purchase offer is
warranted, the Agency shall promptly reestablish just compensation and
offer that amount to the owner in writing.
(h) Coercive action. The Agency shall not advance the time of
condemnation, or defer negotiations or condemnation or the deposit of
funds with the court, or take any other coercive action in order to
induce an agreement on the price to be paid for the property.
(i) Administrative settlement. The purchase price for the property
may exceed the amount offered as just compensation when reasonable
efforts to negotiate an agreement at that amount have failed and an
authorized Agency official approves such administrative settlement as
being reasonable, prudent, and in the public interest. When Federal
[[Page 70366]]
funds pay for or participate in acquisition costs, a written
justification shall be prepared, which states what available
information, including trial risks, supports such a settlement. (See
appendix A, section 24.102(i).)
(j) Payment before taking possession. Before requiring the owner to
surrender possession of the real property, the Agency shall pay the
agreed purchase price to the owner, or in the case of a condemnation,
deposit with the court, for the benefit of the owner, an amount not
less than the Agency's approved appraisal of the market value of such
property, or the court award of compensation in the condemnation
proceeding for the property. In exceptional circumstances, with the
prior approval of the owner, the Agency may obtain a right-of-entry for
construction purposes before making payment available to an owner. (See
appendix A, section 24.102(j).)
(k) Uneconomic remnant. If the acquisition of only a portion of a
property would leave the owner with an uneconomic remnant, the Agency
shall offer to acquire the uneconomic remnant along with the portion of
the property needed for the project. (See section 24.2(a)(28).)
(l) Inverse condemnation. If the Agency intends to acquire any
interest in real property by exercise of the power of eminent domain,
it shall institute formal condemnation proceedings and not
intentionally make it necessary for the owner to institute legal
proceedings to prove the fact of the taking of the real property.
(m) Fair rental. If the Agency permits a former owner or tenant to
occupy the real property after acquisition for a short term or a
period, subject to termination by the Agency on short notice, the rent
shall not exceed the fair market rent for such occupancy. (See appendix
A, section 24.102(m).)
(n) Conflict of interest. No appraiser, review appraiser or other
person making an appraisal or a waiver valuation under Sec.
24.102(c)(2) shall have any interest, direct or indirect, in the real
property being valued for the Agency that would in any way conflict
with the preparation of the appraisal, the waiver valuation or the
review of the appraisal. Compensation for making an appraisal or a
waiver valuation shall not be based on the amount of the valuation
estimate. No person functioning as a negotiator for a project or
program shall supervise or formally evaluate the performance of any
appraiser or review appraiser performing appraisal or appraisal review
work for that project or program, except that, for a program or project
receiving Federal financial assistance, the Federal funding agency may
waive this requirement if it determines it would create a hardship for
the Agency. No appraiser or other person making an appraisal or a
waiver valuation shall act as a negotiator for real property for which
that person has made an appraisal or a waiver valuation, except that
the Agency may permit such person to negotiate an acquisition where the
offer to acquire the property is $10,000, or less. (See appendix A,
section 24.102(n).)
Sec. 24.103 Criteria for appraisals.
(a) Appraisal requirements. These regulations set forth the
requirements for real property acquisition appraisals on Federal and
federally-assisted programs. The format and level of documentation for
an appraisal depend on the complexity of the appraisal problem. An
appraisal must contain a scope of work statement and sufficient
documentation, including valuation data and the appraiser's analysis of
that data, to support his or her opinion of value. The Agency shall
develop minimum requirements for simple appraisals consistent with
established and commonly accepted Federal and federally-assisted
program appraisal practice for those acquisitions, which, by virtue of
their low value or simplicity, do not require the in-depth analysis and
presentation necessary in a detailed appraisal. A detailed appraisal
shall be prepared for all other acquisitions. A detailed appraisal
shall reflect established and commonly accepted Federal and federally-
assisted program appraisal practices, including, to the extent
appropriate, the Uniform Appraisal Standards for Federal Land
Acquisition.\1\ At a minimum, a detailed appraisal shall contain the
following items: (See appendix A, sections 24.103 and 24.103(a).)
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\1\ The ``Uniform Appraisal Standards for Federal Land
Acquisitions'' is published by the Interagency Land Acquisition
Conference. It is a compendium of Federal eminent domain appraisal
law, both case and statute, regulations and practices. It is
available at http://www.usdoj.gov/enrd/land-ack/toc.htm or in soft
cover format from the Appraisal Institute at http://www.appraisalinstitute.org/ecom/publications/Items.asp?ID=3 or call
888-570-4545.
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(1) An adequate description of the physical characteristics of the
property being appraised (and, in the case of a partial acquisition, an
adequate description of the remaining property), a statement of the
known and observed encumbrances, if any, title information, location,
zoning, present use, an analysis of highest and best use, and at least
a 5 year sales history of the property.
(2) All relevant and reliable approaches to value consistent with
established Federal and federally-assisted program appraisal practices.
If the appraiser uses more than one approach, there shall be an
analysis and reconciliation of approaches to value used that is
sufficient to support the appraiser's opinion of value. (See appendix
A, section 24.103(a).)
(3) A description of comparable sales, including a description of
all relevant physical, legal, and economic factors such as parties to
the transaction, source and method of financing, and verification by a
party involved in the transaction.
(4) A statement of the value of the real property to be acquired
and, for a partial acquisition, a statement of the value of the damages
and benefits, if any, to the remaining real property, where
appropriate.
(5) The effective date of valuation, date of appraisal, signature,
and certification of the appraiser.
(b) Influence of the project on just compensation. The appraiser
shall disregard any decrease or increase in the market value of the
real property caused by the project for which the property is to be
acquired, or by the likelihood that the property would be acquired for
the project, other than that due to physical deterioration within the
reasonable control of the owner. (See appendix A, section 24.103(b).)
(c) Owner retention of improvements. If the owner of a real
property improvement is permitted to retain it for removal from the
project site, the amount to be offered for the interest in the real
property to be acquired shall be not less than the difference between
the amount determined to be just compensation for the owner's entire
interest in the real property and the salvage value (defined at Sec.
24.2(a)(24)) of the retained improvement.
(d) Qualifications of appraisers and review appraisers. (1) The
Agency shall establish criteria for determining the minimum
qualifications of appraisers and review appraisers. Qualifications
shall be consistent with the level of difficulty of the assignment. The
Agency shall review the experience, education, training, and other
qualifications of appraisers and review appraisers and use only those
determined to be qualified. (See appendix A, section 24.103(d)(1).)
(2) If the appraisal assignment requires the preparation of a
detailed appraisal pursuant to Sec. 24.103(a), and the Agency uses a
contract (fee) appraiser to perform the appraisal, such appraiser shall
be certified in accordance with title XI of the Financial Institutions
Reform, Recovery, and
[[Page 70367]]
Enforcement Act of 1989 (FIRREA) (12 U.S.C. 3331 et seq.).
Sec. 24.104 Review of appraisals.
The Agency shall have an appraisal review process and, at a
minimum:
(a) A qualified review appraiser (See Sec. 24.103(d)(2) and
appendix A, section 24.104) shall examine the presentation and analysis
of market information in all appraisals to assure that they meet the
definition of appraisal found in 49 CFR 24.2(a)(3), appraisal
requirements found in 49 CFR 24.103 and other applicable requirements,
including, to the extent appropriate, the Uniform Appraisal Standards
for Federal Land Acquisition, and support the appraiser's opinion of
value. The level of review analysis and reporting depends on the
complexity of the appraisal problem. As needed, the review appraiser
shall, prior to acceptance, seek necessary corrections or revisions.
The review appraiser shall identify each appraisal report as approved
(as the basis for the establishment of the amount believed to be just
compensation), accepted (meets all requirements, but not selected as
approved), or rejected. If authorized by the Agency to do so, the
review appraiser shall also develop and report the amount believed to
be just compensation. (See appendix A, section 24.104(a).)
(b) If the review appraiser is unable to approve an appraisal as an
adequate basis for the establishment of the offer of just compensation,
and it is determined by the acquiring Agency that it is not practical
to obtain an additional appraisal, the review appraiser may develop
appraisal documentation in accordance with Sec. 24.103 to support an
approved or recommended value. (See appendix A, section 24.104(b).)
(c) The review appraiser shall prepare a written report that
identifies the appraisal reports reviewed and documents the findings
and conclusions arrived at during the review of the appraisal(s). Any
damages or benefits to any remaining property shall be identified in
the review appraiser's report. The review appraiser shall also prepare
a signed certification that states the parameters of the review. The
certification shall state the approved value, and, if the review
appraiser is authorized to do so, the amount believed to be just
compensation for the acquisition. (See appendix A, section 24.104(c).)
Sec. 24.105 Acquisition of tenant-owned improvements.
(a) Acquisition of improvements. When acquiring any interest in
real property, the Agency shall offer to acquire at least an equal
interest in all buildings, structures, or other improvements located
upon the real property to be acquired, which it requires to be removed
or which it determines will be adversely affected by the use to which
such real property will be put. This shall include any improvement of a
tenant-owner who has the right or obligation to remove the improvement
at the expiration of the lease term.
(b) Improvements considered to be real property. Any building,
structure, or other improvement, which would be considered to be real
property if owned by the owner of the real property on which it is
located, shall be considered to be real property for purposes of this
subpart.
(c) Appraisal and establishment of just compensation for tenant-
owned improvements. Just compensation for a tenant-owned improvement is
the amount which the improvement contributes to the market value of the
whole property or its salvage value, whichever is greater. (Salvage
value is defined at Sec. 24.2(a)(24).)
(d) Special conditions for tenant owned improvements. No payment
shall be made to a tenant-owner for any real property improvement
unless:
(1) The tenant-owner, in consideration for the payment, assigns,
transfers, and releases to the Agency all of the tenant-owner's right,
title, and interest in the improvement; and
(2) The owner of the real property on which the improvement is
located disclaims all interest in the improvement; and
(3) The payment does not result in the duplication of any
compensation otherwise authorized by law.
(e) Alternative compensation. Nothing in this subpart shall be
construed to deprive the tenant-owner of any right to reject payment
under this subpart and to obtain payment for such property interests in
accordance with other applicable law.
Sec. 24.106 Expenses incidental to transfer of title to the Agency.
(a) The owner of the real property shall be reimbursed for all
reasonable expenses the owner necessarily incurred for:
(1) Recording fees, transfer taxes, documentary stamps, evidence of
title, boundary surveys, legal descriptions of the real property, and
similar expenses incidental to conveying the real property to the
Agency. However, the Agency is not required to pay costs solely
required to perfect the owner's title to the real property;
(2) Penalty costs and other charges for prepayment of any
preexisting recorded mortgage entered into in good faith encumbering
the real property; and
(3) The pro rata portion of any prepaid real property taxes which
are allocable to the period after the Agency obtains title to the
property or effective possession of it, whichever is earlier.
(b) Whenever feasible, the Agency shall pay these costs directly so
that the owner will not have to pay such costs and then seek
reimbursement from the Agency. (See appendix A, section 24.106(b).)
Sec. 24.107 Certain litigation expenses.
The owner of the real property shall be reimbursed for any
reasonable expenses, including reasonable attorney, appraisal, and
engineering fees, which the owner actually incurred because of a
condemnation proceeding, if:
(a) The final judgment of the court is that the Agency cannot
acquire the real property by condemnation; or
(b) The condemnation proceeding is abandoned by the Agency other
than under an agreed-upon settlement; or
(c) The court having jurisdiction renders a judgment in favor of
the owner in an inverse condemnation proceeding or the Agency effects a
settlement of such proceeding.
Sec. 24.108 Donations.
An owner whose real property is being acquired may, after being
fully informed by the Agency of the right to receive just compensation
for such property, donate such property or any part thereof, any
interest therein, or any compensation paid therefore, to the Agency as
such owner shall determine. The Agency is responsible for assuring that
an appraisal of the real property is obtained unless the owner releases
the Agency from such obligation, except as provided in Sec.
24.102(c)(2).
Subpart C--General Relocation Requirements
Sec. 24.201 Purpose.
This subpart prescribes general requirements governing the
provision of relocation payments and other relocation assistance in
this part.
Sec. 24.202 Applicability.
These requirements apply to the relocation of any displaced person
as defined at Sec. 24.2(a)(9). Any person who qualifies as a displaced
person must be fully informed of his or her rights and benefits to
relocation assistance and payments provided by the Uniform Act and this
regulation. (See appendix A, section 24.202.)
[[Page 70368]]
Sec. 24.203 Relocation notices.
(a) General information notice. As soon as feasible, a person
scheduled to be displaced shall be furnished with a general written
description of the displacing Agency's relocation program which does at
least the following:
(1) Informs the person that he or she may be displaced for the
project and generally describes the relocation payment(s) for which the
person may be eligible, the basic conditions of eligibility, and the
procedures for obtaining the payment(s).
(2) Informs the displaced person that he or she will be given
reasonable relocation advisory services, including referrals to
replacement properties, help in filing payment claims, and other
necessary assistance to help the displaced person successfully
relocate.
(3) Informs the displaced person that he or she will not be
required to move without at least 90 days advance written notice (See
paragraph (c) of this section), and informs any person to be displaced
from a dwelling that he or she cannot be required to move permanently
unless at least one comparable replacement dwelling has been made
available.
(4) Informs the displaced person that any person who is an alien
not lawfully present in the United States is ineligible for relocation
advisory services and relocation payments, unless such ineligibility
would result in exceptional and extremely unusual hardship to a
qualifying spouse, parent, or child, as defined in Sec. 24.208(h).
(5) Describes the displaced person's right to appeal the Agency's
determination as to a person's application for assistance for which a
person may be eligible under this part.
(b) Notice of relocation eligibility. Eligibility for relocation
assistance shall begin on the date of initiation of negotiations
(defined in Sec. 24.2(a)(16)) for the occupied property. When this
occurs, the Agency shall promptly notify all occupants in writing of
their eligibility for applicable relocation assistance.
(c) Ninety-day notice. (1) General. No lawful occupant shall be
required to move unless he or she has received at least 90 days advance
written notice of the earliest date by which he or she may be required
to move.
(2) Timing of notice. The displacing Agency may issue the notice 90
days or earlier before it expects the person to be displaced.
(3) Content of notice. The 90-day notice shall either state a
specific date as the earliest date by which the occupant may be
required to move, or state that the occupant will receive a further
notice indicating, at least 30 days in advance, the specific date by
which he or she must move. If the 90-day notice is issued before a
comparable replacement dwelling is made available, the notice must
state clearly that the occupant will not have to move earlier than 90
days after such a dwelling is made available. (See Sec. 24.204(a).)
(4) Urgent need. In unusual circumstances, an occupant may be
required to vacate the property on less than 90 days advance written
notice if the displacing Agency determines that a 90-day notice is
impracticable, such as when the person's continued occupancy of the
property would constitute a substantial danger to health or safety. A
copy of the Agency's determination shall be included in the applicable
case file.
(d) Notice of intent to acquire. A notice of intent to acquire is a
displacing Agency's written communication that is provided to a person
to be displaced, including those to be displaced by rehabilitation or
demolition activities from property acquired prior to the commitment of
Federal financial assistance to the activity, which clearly sets forth
that the Agency intends to acquire the property. A notice of intent to
acquire establishes eligibility for relocation assistance prior to the
initiation of negotiation and/or prior to the commitment of Federal
financial assistance. (See Sec. 24.2(a)(9)(i)(A).)
Sec. 24.204 Availability of comparable replacement dwelling before
displacement.
(a) General. No person to be displaced shall be required to move
from his or her dwelling unless at least one comparable replacement
dwelling (defined at Sec. 24.2 (a)(6)) has been made available to the
person. Where possible, three or more comparable replacement dwellings
shall be made available. A comparable replacement dwelling will be
considered to have been made available to a person, if:
(1) The person is informed of its location;
(2) The person has sufficient time to negotiate and enter into a
purchase agreement or lease for the property; and
(3) Subject to reasonable safeguards, the person is assured of
receiving the relocation assistance and acquisition payment to which
the person is entitled in sufficient time to complete the purchase or
lease of the property.
(b) Circumstances permitting waiver. The Federal Agency funding the
project may grant a waiver of the policy in paragraph (a) of this
section in any case where it is demonstrated that a person must move
because of:
(1) A major disaster as defined in section 102(c) of the Disaster
Relief Act of 1974 (42 U.S.C. 5121); or
(2) A presidentially declared national emergency; or
(3) Another emergency which 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.
(c) Basic conditions of emergency move. Whenever a person to be
displaced is required to relocate for a temporary period because of an
emergency as described in paragraph (b) of this section, the Agency
shall:
(1) Take whatever steps are necessary to assure that the person is
temporarily relocated to a decent, safe, and sanitary dwelling;
(2) Pay the actual reasonable out-of-pocket moving expenses and any
reasonable increase in rent and utility costs incurred in connection
with the temporary relocation; and
(3) Make available to the displaced person as soon as feasible, at
least one comparable replacement dwelling. (For purposes of filing a
claim and meeting the eligibility requirements for a relocation
payment, the date of displacement is the date the person moves from the
temporarily occupied dwelling.)
Sec. 24.205 Relocation planning, advisory services, and coordination.
(a) Relocation planning. During the early stages of development, an
Agency shall plan Federal and federally-assisted programs or projects
in such a manner that recognizes the problems associated with the
displacement of individuals, families, businesses, farms, and nonprofit
organizations and develops solutions to minimize the adverse impacts of
displacement. Such planning, where appropriate, shall precede any
action by an Agency which will cause displacement, and should be scoped
to the complexity and nature of the anticipated displacing activity
including an evaluation of program resources available to carry out
timely and orderly relocations. Planning may involve a relocation
survey or study which may include the following:
(1) An estimate of the number of households to be displaced
including information such as owner/tenant status, estimated value and
rental rates of properties to be acquired, family characteristics, and
special consideration of the impacts on minorities, the elderly, large
families, and persons with disabilities when applicable.
[[Page 70369]]
(2) An estimate of the number of comparable replacement dwellings
in the area (including price ranges and rental rates) that are expected
to be available to fulfill the needs of those households displaced.
When an adequate supply of comparable housing is not expected to be
available, the Agency should consider housing of last resort actions.
(3) An estimate of the number, type and size of the businesses,
farms, and nonprofit organizations to be displaced and the approximate
number of employees that may be affected.
(4) An estimate of the availability of replacement business sites.
When an adequate supply of replacement business sites is not expected
to be available, the impacts of displacing the businesses should be
considered and addressed. Planning for displaced businesses which are
reasonably expected to involve complex or lengthy moving processes or
small businesses with limited financial resources and/or few
alternative relocation sites should include an analysis of business
moving problems.
(5) Consideration of any special relocation advisory services that
may be necessary from the displacing Agency and other cooperating
Agencies.
(b) Loans for planning and preliminary expenses. In the event that
an Agency elects to consider using the duplicative provision in section
215 of the Uniform Act which permits the use of project funds for loans
to cover planning and other preliminary expenses for the development of
additional housing, the Lead Agency will establish criteria and
procedures for such use upon the request of the Federal Agency funding
the program or project.
(c) Relocation assistance advisory services. (1) General. The
Agency shall carry out a relocation assistance advisory program which
satisfies the requirements of title VI of the Civil Rights Act of 1964
(42 U.S.C. 2000d et seq.), title VIII of the Civil Rights Act of 1968
(42 U.S.C. 3601 et seq.), and Executive Order 11063 (27 FR 11527,
November 24, 1962), and offer the services described in paragraph
(c)(2) of this section. If the Agency determines that a person
occupying property adjacent to the real property acquired for the
project is caused substantial economic injury because of such
acquisition, it may offer advisory services to such person.
(2) Services to be provided. The advisory program shall include
such measures, facilities, and services as may be necessary or
appropriate in order to:
(i) Determine, for non-residential (businesses, farms and non-
profit organizations) displacements, the relocation needs and
preferences of each business (farms and non-profit organizations) to be
displaced and explain the relocation payments and other assistance for
which the business may be eligible, the related eligibility
requirements, and the procedures for obtaining such assistance. This
shall include a personal interview with each business. At a minimum,
interviews with displaced business owners and operators should include
the following items:
(A) The business's replacement site requirements, current lease
terms and other contractual obligations and the financial capacity of
the business to accomplish the move.
(B) Determination of the need for outside specialists in accordance
with Sec. 24.301(g)(12) that will be required to assist in planning
the move, assistance in the actual move, and in the reinstallation of
machinery and/or other personal property.
(C) For tenant businesses, an identification and resolution of
personalty/realty issues. This determination must be made prior to the
appraisal of the property.
(D) An estimate of the time required for the business to vacate the
site.
(E) An estimate of the searching expense payments required based on
the anticipated difficulty in locating a replacement property.
(F) An identification of any advance relocation payments required
for the move, and the Agency's legal capacity to provide them.
(ii) Determine, for residential displacements, the relocation needs
and preferences of each person to be displaced and explain the
relocation payments and other assistance for which the person may be
eligible, the related eligibility requirements, and the procedures for
obtaining such assistance. This shall include a personal interview with
each residential displaced person. At a minimum, interviews with
displaced business owners and operators should include the following
items:
(A) Provide current and continuing information on the availability,
purchase prices, and rental costs of comparable replacement dwellings,
and explain that the person cannot be required to move unless at least
one comparable replacement dwelling is made available as set forth in
Sec. 24.204(a).
(B) As soon as feasible, the Agency shall inform the person in
writing of the specific comparable replacement dwelling and the price
or rent used for establishing the upper limit of the replacement
housing payment (See Sec. 24.403 (a) and (b)) and the basis for the
determination, so that the person is aware of the maximum replacement
housing payment for which he or she may qualify.
(C) Where feasible, housing shall be inspected prior to being made
available to assure that it meets applicable standards. (See Sec.
24.2(a)(8).) If such an inspection is not made, the Agency shall notify
the person to be displaced that a replacement housing payment may not
be made unless the replacement dwelling is subsequently inspected and
determined to be decent, safe, and sanitary.
(D) Whenever possible, minority persons shall be given reasonable
opportunities to relocate to decent, safe, and sanitary replacement
dwellings, not located in an area of minority concentration, that are
within their financial means. While this policy does not require an
Agency to provide a person a larger payment than is necessary to enable
a person to relocate to a comparable replacement dwelling, if a
displacing Agency has a program objective of providing minority persons
with an opportunity to relocate to areas outside of minority
concentration, the Agency may determine to provide a reasonable and
justifiable increase in the payment to facilitate a move to a
comparable replacement dwelling in such areas.
(E) The Agency shall offer all persons transportation to inspect
housing to which they are referred.
(F) Any displaced person that may be eligible for government
housing assistance at the replacement dwelling shall be advised of any
requirements of such government housing assistance program that would
limit the size of the replacement dwelling (see Sec. 24.2(a)(6)(ix)),
as well as of the long term nature of such rent subsidy, and the
limited (42 month) duration of the relocation rental assistance
payment.
(iii) Provide, for non-residential moves, current and continuing
information on the availability, purchase prices, and rental costs of
suitable commercial and farm properties and locations. Assist any
person displaced from a business or farm operation to obtain and become
established in a suitable replacement location.
(iv) Minimize hardships to persons in adjusting to relocation by
providing counseling, advice as to other sources of assistance that may
be available, and such other help as may be appropriate.
(v) Supply persons to be displaced with appropriate information
concerning Federal and State housing
[[Page 70370]]
programs, disaster loan and other programs administered by the Small
Business Administration, and other Federal and State programs offering
assistance to displaced persons, and technical help to persons applying
for such assistance.
(d) Coordination of relocation activities. Relocation activities
shall be coordinated with project work and other displacement-causing
activities to ensure that, to the extent feasible, persons displaced
receive consistent treatment and the duplication of functions is
minimized. (See also Sec. 24.6.)
(e) Any person who occupies property acquired by an Agency, when
such occupancy began subsequent to the acquisition of the property, and
the occupancy is permitted by a short term rental agreement or an
agreement subject to termination when the property is needed for a
program or project, shall be eligible for advisory services, as
determined by the Agency.
Sec. 24.206 Eviction for cause.
An eviction may not be undertaken to deny assistance or evade the
provisions of the Uniform Act or this part. Any person who occupies the
real property on the date of the initiation of negotiations is presumed
to be entitled to relocation payments and other assistance set forth in
this part unless the Agency determines that such person vacated the
real property as the result of an eviction for cause. (See Sec.
24.2(a)(12) and appendix A section 24.206.)
Sec. 24.207 General requirements--claims for relocation payments.
(a) Documentation. Any claim for a relocation payment shall be
supported by such documentation as may be reasonably required to
support expenses incurred, such as bills, certified prices, appraisals,
or other evidence of such expenses. A displaced person must be provided
reasonable assistance necessary to complete and file any required claim
for payment.
(b) Expeditious payments. The Agency shall review claims in an
expeditious manner. The claimant shall be promptly notified as to any
additional documentation that is required to support the claim. Payment
for a claim shall be made as soon as feasible following receipt of
sufficient documentation to support the claim.
(c) Advance payments. If a person demonstrates the need for an
advance relocation payment in order to avoid or reduce a hardship, the
Agency shall issue the payment, subject to such safeguards as are
appropriate to ensure that the objective of the payment is
accomplished.
(d) Time for filing. (1) All claims for a relocation payment shall
be filed with the Agency no later than 18 months after:
(i) For tenants, the date of displacement;
(ii) For owners, the date of displacement or the date of the final
payment for the acquisition of the real property, whichever is later.
(2) The Agency shall waive this time period for good cause.
(e) Notice of denial of claim. If the Agency disapproves all or
part of a payment claimed or refuses to consider the claim on its
merits because of untimely filing or other grounds, it shall promptly
notify the claimant in writing of its determination, the basis for its
determination, and the procedures for appealing that determination.
(f) Waiver of relocation assistance. A displacing Agency shall not
propose or request that a displaced person waive his or her rights or
entitlements to relocation assistance and payments provided by the
Uniform Act and this part.
(g) Entitlement to payments. Relocation payments, provided pursuant
to this part, provide compensation for relocation costs and impacts,
and shall not be considered to constitute Federal financial assistance.
Accordingly, this part does not apply to purchases of real property
resulting from the expenditure of such payments by, or for, a displaced
person.
Sec. 24.208 Aliens not lawfully present in the United States.
(a) Each person seeking relocation payments or relocation advisory
assistance shall, as a condition of eligibility, certify:
(1) In the case of an individual, that he or she is either a
citizen or national of the United States, or an alien who is lawfully
present in the United States.
(2) In the case of a family, that each family member is either a
citizen or national of the United States, or an alien who is lawfully
present in the United States. The certification may be made by the head
of the household on behalf of other family members.
(3) In the case of an unincorporated business, farm, or nonprofit
organization, that each owner is either a citizen or national of the
United States, or an alien who is lawfully present in the United
States. The certification may be made by the principal owner, manager,
or operating officer on behalf of other persons with an ownership
interest.
(4) In the case of an incorporated business, farm, or nonprofit
organization, that the corporation is authorized to conduct business
within the United States.
(b) The certification provided pursuant to paragraphs (a)(1),
(a)(2), and (a)(3) of this section shall indicate whether such person
is either a citizen or national of the United States, or an alien who
is lawfully present in the United States. Requirements concerning the
certification in addition to those contained in this rule shall be
within the discretion of the Federal funding Agency and, within those
parameters, that of the displacing Agency.
(c) In computing relocation payments under the Uniform Act, if any
member(s) of a household or owner(s) of an unincorporated business,
farm, or nonprofit organization is (are) determined to be ineligible
because of a failure to be legally present in the United States, no
relocation payments may be made to him or her. Any payment(s) for which
such household, unincorporated business, farm, or nonprofit
organization would otherwise be eligible shall be computed for the
household, based on the number of eligible household members and for
the unincorporated business, farm, or nonprofit organization, based on
the ratio of ownership between eligible and ineligible owners.
(d) The displacing Agency shall consider the certification provided
pursuant to paragraph (a) of this section to be valid, unless the
displacing Agency determines in accordance with paragraph (f) of this
section that it is invalid based on a review of an alien's
documentation or other information that the Agency considers reliable
and appropriate.
(e) Any review by the displacing Agency of the certifications
provided pursuant to paragraph (a) of this section shall be conducted
in a nondiscriminatory fashion. Each displacing Agency will apply the
same standard of review to all such certifications it receives, except
that such standard may be revised periodically.
(f) If, based on a review of an alien's documentation or other
credible evidence, a displacing Agency has reason to believe that a
person's certification is invalid (for example a document reviewed does
not on its face reasonably appear to be genuine), and that, as a
result, such person may be an alien not lawfully present in the United
States, it shall obtain the following information before making a final
determination:
(1) If the Agency has reason to believe that the certification of a
person who has certified that he or she is an alien
[[Page 70371]]
lawfully present in the United States is invalid, the displacing Agency
shall obtain verification of the alien's status from the local Bureau
of Citizenship and Immigration Service (BCIS) Office. A list of local
BCIS offices is available at http://www.bcis.gov/graphics/fieldoffices/alphaa.htm. Any request for BCIS verification shall include the alien's
full name, date of birth and alien number, and a copy of the alien's
documentation. (If an Agency is unable to contact the BCIS, it may
contact the FHWA in Washington, DC, Office of Real Estate Services at
202-366-0142 or Office of Chief Counsel, 202-366-0740, for a referral
to the BCIS.)
(2) If the Agency has reason to believe that the certification of a
person who has certified that he or she is a citizen or national is
invalid, the displacing Agency shall request evidence of United States
citizenship or nationality from such person and, if considered
necessary, verify the accuracy of such evidence with the issuer.
(g) No relocation payments or relocation advisory assistance shall
be provided to a person who has not provided the certification
described in this section or who has been determined to be not lawfully
present in the United States, unless such person can demonstrate to the
displacing Agency's satisfaction that the denial of relocation
assistance will result in an exceptional and extremely unusual hardship
to such person's spouse, parent, or child who is a citizen of the
United States, or is an alien lawfully admitted for permanent residence
in the United States.
(h) For purposes of paragraph (g) of this section, ``exceptional
and extremely unusual hardship'' to such spouse, parent, or child of
the person not lawfully present in the United States means that the
denial of relocation payments and advisory assistance to such person
will directly result in:
(1) A significant and demonstrable adverse impact on the health or
safety of such spouse, parent, or child;
(2) A significant and demonstrable adverse impact on the continued
existence of the family unit of which such spouse, parent, or child is
a member; or
(3) Any other impact that the displacing Agency determines will
have a significant and demonstrable adverse impact on such spouse,
parent, or child.
(i) The certification referred to in paragraph (a) of this section
may be included as part of the claim for relocation payments described
in Sec. 24.207 of this part. (Approved by the Office of Management and
Budget under control number 2105-0508.)
Sec. 24.209 Relocation payments not considered as income.
No relocation payment received by a displaced person under this
part shall be considered as income for the purpose of the Internal
Revenue Code of 1954, which has been redesignated as the Internal
Revenue Code of 1986 (Title 26, U.S.C.), or for the purpose of
determining the eligibility or the extent of eligibility of any person
for assistance under the Social Security Act (42 U.S.C. 301 et seq.) or
any other Federal law, except for any Federal law providing low-income
housing assistance.
Subpart D--Payments for Moving and Related Expenses
Sec. 24.301 Payment for actual reasonable moving and related
expenses.
(a) General. (1) Any owner-occupant or tenant who qualifies as a
displaced person (defined at Sec. 24.2(a)(9)) and who moves from a
dwelling (including a mobile home) or who moves from a business, farm
or non-profit organization is entitled to payment of his or her actual
moving and related expenses, as the Agency determines to be reasonable
and necessary.
(2) A non-occupant owner of a rented mobile home is eligible for
actual cost reimbursement under Sec. 24.301 to relocate the mobile
home. If the mobile home is not acquired as real estate, but the
homeowner-occupant obtains a replacement housing payment under one of
the circumstances described at Sec. 24.502(a)(3), the owner is not
eligible for payment for moving the mobile home, but may be eligible
for a payment for moving personal property from the mobile home.
(b) Moves from a dwelling. A displaced person's actual, reasonable
and necessary moving expenses for moving personal property from a
dwelling may be determined based on the cost of one, or a combination
of the following methods, but not by the lower of two bids or
estimates. Eligible expenses for moves from a dwelling include the
expenses described in paragraphs (g)(1) through (g)(7) of this section.
(1) Commercial move--moves performed by a professional mover.
(2) Self move--moves that may be performed by the displaced person
in one or a combination of the following methods:
(i) Fixed Residential Moving Cost Schedule. (Described in Sec.
24.302.)
(ii) Actual cost move. Supported by receipted bills for labor and
equipment. Hourly labor rates and equipment rental fees should not
exceed the cost paid by a commercial mover.
(iii) Moving cost finding. A qualified Agency staff person may
estimate and determine the cost of a small uncomplicated personal
property move of $3,000 or less, with the informed consent of the
displaced person. This estimate may include only the cost of moving
personal property located outside of the dwelling, that is not included
in the Fixed Residential Moving Cost Schedule, such as personal
property in garages, storage sheds or other loose items outside of
structures that are personal property.
(c) Moves from a mobile home. A displaced person's actual,
reasonable and necessary moving expenses for moving personal property
from a mobile home may be determined based on the cost of one, or a
combination of the following methods, but not by the lower of two bids
or estimates. Eligible expenses for moves from a mobile home include
those expenses described in paragraphs (g)(1) through (g)(7) of this
section. In addition to the items in paragraph (a) of this section, the
owner-occupant of a mobile home that is moved as personal property and
used as the person's replacement dwelling, is also eligible for the
moving expenses described in paragraphs (g)(8) through (g)(10) of this
section.
(1) Commercial move--moves performed by a professional mover.
(2) Self move--moves that may be performed by the displaced person
in one or a combination of the following methods:
(i) Fixed Residential Moving Cost Schedule. (Described in Sec.
24.302.)
(ii) Actual cost move. Supported by receipted bills for labor and
equipment. Hourly labor rates and equipment rental fees should not
exceed the cost paid by a commercial mover.
(iii) Moving cost finding. A qualified Agency staff person may
estimate and determine the cost of a small uncomplicated personal
property move of $3,000 or less, with the informed consent of the
displaced person. This estimate may include only the cost of moving
personal property located outside of the mobile home, that is not
included in the Fixed Residential Moving Cost Schedule, such as
personal property in garages, storage sheds or other loose items
outside of structures that are personal property
(d) Moves from a business, farm or nonprofit organization. Personal
property as determined by an inventory from a business, farm or non-
profit organization may be moved by one or a combination of the
following methods. Eligible expenses for moves from a business, farm or
nonprofit organization include those expenses described in
[[Page 70372]]
paragraphs (g)(1) through (g)(7) of this section and paragraphs (g)(11)
through (g)(18) of this section and Sec. 24.303.
(1) Commercial move. Based on the lower of two bids or estimates
prepared by a commercial mover. At the Agency's discretion, payment for
a low cost or uncomplicated move may be based on a single bid or
estimate.
(2) Self-move. A self-move payment may be based on one or a
combination of the following:
(i) The lower of two bids or estimates prepared by a commercial
mover or qualified Agency staff person. At the Agency's discretion,
payment for a low cost or uncomplicated move may be based on a single
bid or estimate; or
(ii) Moving cost finding. A qualified Agency staff person may
estimate and determine the cost of a small uncomplicated personal
property move of $3,000 or less, with the informed consent of the
displaced person. This method may be used to estimate the cost of small
uncomplicated moves of equipment or other personal property.
(e) Personal property only. Eligible expenses for a person who is
required to move personal property from real property but is not
required to move from a dwelling (including a mobile home), business,
farm or nonprofit organization include those expenses described in
paragraphs (g)(1) through (g)(7) of this section.
(f) Advertising signs. The amount of a payment for direct loss of
an advertising sign which is personal property shall be the lesser of:
(1) The depreciated reproduction cost of the sign, as determined by
the Agency, less the proceeds from its sale; or
(2) The estimated cost of moving the sign, but with no allowance
for storage.
(g) Eligible actual moving expenses. (1) Transportation of the
displaced person and personal property. Transportation costs for a
distance beyond 50 miles are not eligible, unless the Agency determines
that relocation beyond 50 miles is justified.
(2) Packing, crating, unpacking, and uncrating of the personal
property.
(3) Disconnecting, dismantling, removing, reassembling, and
reinstalling relocated household appliances, machinery, equipment, and
other personal property, including substitute personal property. For
businesses, this includes connection to utilities available within the
building. It also includes modifications to the personal property
necessary to adapt it to the replacement structure, the replacement
site, or the utilities at the replacement site, and modifications
necessary to adapt the utilities at the replacement site to the
personal property.
(4) Storage of the personal property for a period not to exceed l2
months, unless the Agency determines that a longer period is necessary.
(5) Insurance for the replacement value of the property in
connection with the move and necessary storage.
(6) 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.
(7) Other moving-related expenses that are not listed as ineligible
under Sec. 24.301(h), as the Agency determines to be reasonable and
necessary.
(8) The reasonable cost of disassembling, moving, and reassembling
any appurtenances attached to a mobile home, such as porches, decks,
skirting, and awnings, which were not acquired, anchoring of the unit,
and utility ``hookup'' charges.
(9) The reasonable cost of repairs and/or modifications so that a
mobile home can be moved and/or made decent, safe, and sanitary.
(10) The cost of a nonrefundable mobile home park entrance fee, to
the extent it does not exceed the fee at a comparable mobile home park,
if the person is displaced from a mobile home park or the Agency
determines that payment of the fee is necessary to effect relocation.
(11) Any license, permit, fees or certification required of the
displaced person at the replacement location. However, the payment may
be based on the remaining useful life of the existing license, permit,
fees or certification.
(12) Professional services as the Agency determines to be actual,
reasonable and necessary for:
(i) Planning the move of the personal property;
(ii) Moving the personal property; and
(iii) Installing the relocated personal property at the replacement
location.
(13) Relettering signs and replacing stationery on hand at the time
of displacement that are made obsolete as a result of the move.
(14) Actual direct loss of tangible personal property incurred as a
result of moving or discontinuing the business or farm operation. The
payment shall consist of the lesser of:
(i) The market value in place of the item as is for continued use,
less the proceeds from its sale. (To be eligible for payment, the
claimant must make a good faith effort to sell the personal property,
unless the Agency determines that such effort is not necessary. When
payment for property loss is claimed for goods held for sale, the
market value shall be based on the cost of the goods to the business,
not the potential selling prices.); or
(ii) The estimated cost of moving the item as is, but not including
any allowance for storage; or for reconnecting a piece of equipment if
the equipment is in storage or not being used at the acquired site (See
appendix A, section 24.301(g)(14)(ii).) If the business or farm
operation is discontinued, the estimated cost of moving the item shall
be based on a moving distance of 50 miles.
(15) The reasonable cost incurred in attempting to sell an item
that is not to be relocated.
(16) Purchase of substitute personal property. If an item of
personal property which is used as part of a business or farm operation
is not moved but is promptly replaced with a substitute item that
performs a comparable function at the replacement site, the displaced
person is entitled to payment of the lesser of:
(i) The cost of the substitute item, including installation costs
of the replacement site, minus any proceeds from the sale or trade-in
of the replaced item; or
(ii) The estimated cost of moving and reinstalling the replaced
item but with no allowance for storage. At the Agency's discretion, the
estimated cost for a low cost or uncomplicated move may be based on a
single bid or estimate.
(17) Searching for a replacement location. A business or farm
operation is entitled to reimbursement for actual expenses, not to
exceed $2,500, as the Agency determines to be reasonable, which are
incurred in searching for a replacement location, including:
(i) Transportation;
(ii) Meals and lodging away from home;
(iii) Time spent searching, based on reasonable salary or earnings;
(iv) Fees paid to a real estate agent or broker to locate a
replacement site, exclusive of any fees or commissions related to the
purchase of such sites; and
(v) The costs of obtaining permits and attending zoning hearings.
(18) Low value/high bulk. When the personal property which is used
in connection with any business or farm operation is of low value and
high bulk, and the cost of moving the property would be
disproportionate in relation to its value in the judgment of the
displacing Agency, the allowable moving cost reimbursement shall not
exceed the difference between the
[[Page 70373]]
amount which would have been received if such property was sold, and
the cost of replacing the material at the replacement site with a
comparable quantity available on the market. This provision applies to
items such as stockpiled sand, gravel, minerals, and other similar
items of personal property.
(h) Ineligible moving and related expenses. A displaced person is
not entitled to payment for:
(1) The cost of moving any structure or other real property
improvement in which the displaced person reserved ownership. (However,
this part does not preclude the computation under Sec.
24.401(c)(2)(iii));
(2) Interest on a loan to cover moving expenses;
(3) Loss of goodwill;
(4) Loss of profits;
(5) Loss of trained employees;
(6) Any additional operating expenses of a business or farm
operation incurred because of operating in a new location except as
provided in Sec. 24.304(a)(6);
(7) Personal injury;
(8) Any legal fee or other cost for preparing a claim for a
relocation payment or for representing the claimant before the Agency;
(9) Expenses for searching for a replacement dwelling;
(10) Physical changes to the real property at the replacement
location of a business or farm operation except as provided in
Sec. Sec. 24.301(g)(3) and 24.304(a); and
(11) Costs for storage of personal property on real property
already owned or leased by the displaced person.
(12) Refundable security and utility deposits.
(i) Notification and inspection. The Agency shall inform the
displaced person, in writing, of the requirements of this section as
soon as possible after the initiation of negotiations. This information
may be included in the relocation information provided the displaced
person as set forth in Sec. 24.203. To be eligible for payments under
this section the displaced person must:
(1) Provide the Agency reasonable advance notice of the approximate
date of the start of the move or disposition of the personal property
and an inventory of the items to be moved. However, the Agency may
waive this notice requirement after documenting its file accordingly.
(2) Permit the Agency to make reasonable and timely inspections of
the personal property at both the displacement and replacement sites
and to monitor the move.
(j) Transfer of ownership. Upon request and in accordance with
applicable law, the claimant shall transfer to the Agency ownership of
any personal property that has not been moved, sold, or traded in.
Sec. 24.302 Fixed payment for moving expenses--residential moves.
Any person displaced from a dwelling or a seasonal residence or a
dormitory style room is entitled to receive a fixed moving cost payment
as an alternative to a payment for actual moving and related expenses
under Sec. 24.301. This payment shall be determined according to the
Fixed Residential Moving Cost Schedule \2\ approved by the Federal
Highway Administration and published in the Federal Register on a
periodic basis. The payment to a person with minimal personal
possessions who is in occupancy of a dormitory style room or a person
whose residential move is performed by an Agency at no cost to the
person shall be limited to the amount stated in the most recent edition
of the Fixed Residential Moving Cost Schedule.
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\2\ The Fixed Residential Moving Cost Schedule is available at
the following URL: http://www.fhwa.dot.gov//////realestate/fixsch96.htm. Agencies are cautioned to ensure they are using the
most recent edition.
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Sec. 24.303 Related non-residential eligible expenses.
The following expenses, in addition to those provided by Sec.
24.301 for moving personal property, shall be provided if the Agency
determines that they are actual, reasonable and necessary:
(a) Connection to available nearby utilities from the right-of-way
to improvements at the replacement site.
(b) Professional services in connection with the purchase or lease
of a replacement site including feasibility surveys, soil testing, and
marketing studies (exclusive of any fees or commissions related to such
site).
(c) Impact fees or one time assessments for anticipated heavy
utility usage, as determined necessary by the Agency.
Sec. 24.304 Reestablishment expenses--non-residential moves.
In addition to the payments available under Sec. Sec. 24.301 and
24.303 of this subpart, a small business, as defined in Sec.
24.2(a)(25), farm or nonprofit organization is entitled to receive a
payment, not to exceed $10,000, for expenses actually incurred in
relocating and reestablishing such small business, farm or nonprofit
organization at a replacement site.
(a) Eligible expenses. Reestablishment expenses must be reasonable
and necessary, as determined by the Agency. They include, but are not
limited to, the following:
(1) Repairs or improvements to the replacement real property as
required by Federal, State or local law, code or ordinance.
(2) Modifications to the replacement property to accommodate the
business operation or make replacement structures suitable for
conducting the business.
(3) Construction and installation costs for exterior signing to
advertise the business.
(4) Redecoration or replacement of soiled or worn surfaces at the
replacement site, such as paint, paneling, or carpeting.
(5) Advertisement of replacement location.
(6) Estimated increased costs of operation during the first 2 years
at the replacement site for such items as:
(i) Lease or rental charges,
(ii) Personal or real property taxes,
(iii) Insurance premiums, and
(iv) Utility charges, excluding impact fees.
(7) Other items that the Agency considers essential to the
reestablishment of the business.
(b) Ineligible expenses. The following is a nonexclusive listing of
reestablishment expenditures not considered to be reasonable,
necessary, or otherwise eligible:
(1) Purchase of capital assets, such as, office furniture, filing
cabinets, machinery, or trade fixtures.
(2) Purchase of manufacturing materials, production supplies,
product inventory, or other items used in the normal course of the
business operation.
(3) Interest on money borrowed to make the move or purchase the
replacement property.
(4) Payment to a part-time business in the home which does not
contribute materially (defined at Sec. 24.2(a)(7)) to the household
income.
Sec. 24.305 Fixed payment for moving expenses--non-residential moves.
(a) Business. A displaced business may be eligible to choose a
fixed payment in lieu of the payments for actual moving and related
expenses, and actual reasonable reestablishment expenses provided by
Sec. Sec. 24.301 and 24.303. Such fixed payment, except for payment to
a nonprofit organization, shall equal the average annual net earnings
of the business, as computed in accordance with paragraph (e) of this
section, but not less than $1,000 nor more than $20,000. The displaced
business is eligible for the payment if the Agency determines that:
(1) The business owns or rents personal property which must be
moved
[[Page 70374]]
in connection with such displacement and for which an expense would be
incurred in such move and, the business vacates or relocates from its
displacement site;
(2) The business cannot be relocated without a substantial loss of
its existing patronage (clientele or net earnings.) A business is
assumed to meet this test unless the Agency determines that it will not
suffer a substantial loss of its existing patronage;
(3) The business is not part of a commercial enterprise having more
than three other entities which are not being acquired by the Agency,
and which are not under the same ownership and engaged in the same or
similar business activities.
(4) The business is not operated at a displacement dwelling solely
for the purpose of renting such dwelling to others;
(5) The business is not operated at the displacement site solely
for the purpose of renting the site to others; and
(6) The business contributed materially to the income of the
displaced person during the 2 taxable years prior to displacement. (See
Sec. 24.2(a)(7).)
(b) Determining the number of businesses. In determining whether
two or more displaced legal entities constitute a single business which
is entitled to only one fixed payment, all pertinent factors shall be
considered, including the extent to which:
(1) The same premises and equipment are shared;
(2) Substantially identical or interrelated business functions are
carried out and business and financial affairs are commingled;
(3) The entities are held out to the public, and to those
customarily dealing with them, as one business; and
(4) The same person or closely related persons own, control, or
manage the affairs of the entities.
(c) Farm operation. A displaced farm operation (defined at Sec.
24.2(a)(13)) may choose a fixed payment, in lieu of the payments for
actual moving and related expenses and actual reasonable
reestablishment expenses, in an amount equal to its average annual net
earnings as computed in accordance with paragraph (e) of this section,
but not less than $1,000 nor more than $20,000. In the case of a
partial acquisition of land which was a farm operation before the
acquisition, the fixed payment shall be made only if the Agency
determines that:
(1) The acquisition of part of the land caused the operator to be
displaced from the farm operation on the remaining land; or
(2) The partial acquisition caused a substantial change in the
nature of the farm operation.
(d) Nonprofit organization. A displaced nonprofit organization may
choose a fixed payment of $1,000 to $20,000, in lieu of the payments
for actual moving and related expenses and actual reasonable
reestablishment expenses, if the Agency determines that it cannot be
relocated without a substantial loss of existing patronage (membership
or clientele.) A nonprofit organization is assumed to meet this test,
unless the Agency demonstrates otherwise. Any payment in excess of
$1,000 must be supported with financial statements for the two 12-month
periods prior to the acquisition. The amount to be used for the payment
is the average of 2 years annual gross revenues less administrative
expenses. (See appendix A, 24.305(d).)
(e) Average annual net earnings of a business or farm operation.
The average annual net earnings of a business or farm operation are
one-half of its net earnings before Federal, State, and local income
taxes during the 2 taxable years immediately prior to the taxable year
in which it was displaced. If the business or farm was not in operation
for the full 2 taxable years prior to displacement, net earnings shall
be based on the actual period of operation at the displacement site
during the 2 taxable years prior to displacement, projected to an
annual rate. Average annual net earnings may be based upon a different
period of time when the Agency determines it to be more equitable. Net
earnings include any compensation obtained from the business or farm
operation by its owner, the owner's spouse, and dependents. The
displaced person shall furnish the Agency proof of net earnings through
income tax returns, certified financial statements, or other reasonable
evidence which the Agency determines is satisfactory. (See appendix A,
24.305(e).)
Sec. 24.306 Discretionary utility relocation payments.
(a) Whenever a program or project undertaken by a displacing Agency
causes the relocation of a utility facility (See Sec. 24.2(a)(32)) and
the relocation of the facility creates extraordinary expenses for its
owner, the displacing Agency may, at its option, make a relocation
payment to the owner for all or part of such expenses, if the following
criteria are met:
(1) The utility facility legally occupies State or local government
property, or property over which the State or local government has an
easement or right-of-way;
(2) The utility facility's right of occupancy thereon is pursuant
to State law or local ordinance specifically authorizing such use, or
where such use and occupancy has been granted through a franchise, use
and occupancy permit, or other similar agreement;
(3) Relocation of the utility facility is required by and is
incidental to the primary purpose of the project or program undertaken
by the displacing Agency;
(4) There is no Federal law, other than the Uniform Act, which
clearly establishes a policy for the payment of utility moving costs
that is applicable to the displacing Agency's program or project; and
(5) State or local government reimbursement for utility moving
costs or payment of such costs by the displacing Agency is in
accordance with State law.
(b) For the purposes of this section, the term extraordinary
expenses means those expenses which, in the opinion of the displacing
Agency, are not routine or predictable expenses relating to the
utility's occupancy of rights-of-way, and are not ordinarily budgeted
as operating expenses, unless the owner of the utility facility has
explicitly and knowingly agreed to bear such expenses as a condition
for use of the property, or has voluntarily agreed to be responsible
for such expenses.
(c) A relocation payment to a utility facility owner for moving
costs under this section may not exceed the cost to functionally
restore the service disrupted by the federally-assisted program or
project, less any increase in value of the new facility and salvage
value of the old facility. The displacing Agency and the utility
facility owner shall reach prior agreement on the nature of the utility
relocation work to be accomplished, the eligibility of the work for
reimbursement, the responsibilities for financing and accomplishing the
work, and the method of accumulating costs and making payment. (See
appendix A to this part, section 24.306.)
Subpart E--Replacement Housing Payments
Sec. 24.401 Replacement housing payment for 180-day homeowner-
occupants.
(a) Eligibility. A displaced person is eligible for the replacement
housing payment for a 180-day homeowner-occupant if the person:
(1) Has actually owned and occupied the displacement dwelling for
not less than 180 days immediately prior to the initiation of
negotiations; and
[[Page 70375]]
(2) Purchases and occupies a decent, safe, and sanitary replacement
dwelling within one year after the later of the following dates (except
that the Agency may extend such one year period for good cause):
(i) The date the displaced person receives final payment for the
displacement dwelling or, in the case of condemnation, the date the
full amount of the estimate of just compensation is deposited in the
court; or
(ii) The date the displacing Agency's obligation under Sec. 24.204
is met.
(b) Amount of payment. The replacement housing payment for an
eligible 180-day homeowner-occupant may not exceed $22,500. (See also
Sec. 24.404.) The payment under this subpart is limited to the amount
necessary to relocate to a comparable replacement dwelling within one
year from the date the displaced homeowner-occupant is paid for the
displacement dwelling, or the date a comparable replacement dwelling is
made available to such person, whichever is later. The payment shall be
the sum of:
(1) The amount by which the cost of a replacement dwelling exceeds
the acquisition cost of the displacement dwelling, as determined in
accordance with paragraph (c) of this section;
(2) The increased interest costs and other debt service costs which
are incurred in connection with the mortgage(s) on the replacement
dwelling, as determined in accordance with paragraph (d) of this
section; and
(3) The reasonable expenses incidental to the purchase of the
replacement dwelling, as determined in accordance with paragraph (e) of
this section.
(c) Price differential--(1) Basic computation. The price
differential to be paid under paragraph (b)(1) of this section is the
amount which must be added to the acquisition cost of the displacement
dwelling and site (See Sec. 24.2(a)(11)) to provide a total amount
equal to the lesser of:
(i) The reasonable cost of a comparable replacement dwelling as
determined in accordance with Sec. 24.403(a); or
(ii) The purchase price of the decent, safe, and sanitary
replacement dwelling actually purchased and occupied by the displaced
person.
(2) Owner retention of displacement dwelling. If the owner retains
ownership of his or her dwelling, moves it from the displacement site,
and reoccupies it on a replacement site, the purchase price of the
replacement dwelling shall be the sum of:
(i) The cost of moving and restoring the dwelling to a condition
comparable to that prior to the move;
(ii) The cost of making the unit a decent, safe, and sanitary
replacement dwelling (defined at Sec. 24.2(a)(8)); and
(iii) The current market value for residential use of the
replacement site (See appendix A of this part, section
24.401(c)(2)(iii)), unless the claimant rented the displacement site
and there is a reasonable opportunity for the claimant to rent a
suitable replacement site; and
(iv) The retention value of the dwelling, if such retention value
is reflected in the ``acquisition cost'' used when computing the
replacement housing payment.
(d) Increased mortgage interest costs. The displacing Agency shall
determine the factors to be used in computing the amount to be paid to
a displaced person under paragraph (b)(2) of this section. The payment
for increased mortgage interest cost shall be the amount which will
reduce the mortgage balance on a new mortgage to an amount which could
be amortized with the same monthly payment for principal and interests
that for the mortgage(s) on the displacement dwelling. In addition,
payments shall include other debt service costs, if not paid as
incidental costs, and shall be based only on bona fide mortgages that
were valid liens on the displacement dwelling for at least 180 days
prior to the initiation of negotiations. Paragraphs (d)(1) through
(d)(5) of this section shall apply to the computation of the increased
mortgage interest costs payment, which payment shall be contingent upon
a mortgage being placed on the replacement dwelling.
(1) The payment shall be based on the unpaid mortgage balance(s) on
the displacement dwelling; however, in the event the displaced person
obtains a smaller mortgage than the mortgage balance(s) computed in the
buydown determination the payment will be prorated and reduced
accordingly. (See appendix A, section 24.401(d).) In the case of a home
equity loan the unpaid balance shall be that balance which existed 180
days prior to the initiation of negotiations or the balance on the date
of acquisition, whichever is less.
(2) The payment shall be based on the remaining term of the
mortgage(s) on the displacement dwelling or the term of the new
mortgage, whichever is shorter.
(3) The interest rate on the new mortgage used in determining the
amount of the payment shall not exceed the prevailing fixed interest
rate for conventional mortgages currently charged by mortgage lending
institutions in the area in which the replacement dwelling is located.
(4) Purchaser's points and loan origination or assumption fees, but
not seller's points, shall be paid to the extent:
(i) They are not paid as incidental expenses;
(ii) They do not exceed rates normal to similar real estate
transactions in the area;
(iii) The Agency determines them to be necessary; and
(iv) The computation of such points and fees shall be based on the
unpaid mortgage balance on the displacement dwelling, less the amount
determined for the reduction of the mortgage balance under this
section.
(5) The displaced person shall be advised of the approximate amount
of this payment and the conditions that must be met to receive the
payment as soon as the facts relative to the person's current
mortgage(s) are known and the payment shall be made available at or
near the time of closing on the replacement dwelling in order to reduce
the new mortgage as intended.
(e) Incidental expenses. The incidental expenses to be paid under
paragraph (b)(3) of this section or Sec. 24.402(c)(1) are those
necessary and reasonable costs actually incurred by the displaced
person incident to the purchase of a replacement dwelling, and
customarily paid by the buyer, including:
(1) Legal, closing, and related costs, including those for title
search, preparing conveyance instruments, notary fees, preparing
surveys and plats, and recording fees.
(2) Lender, FHA, or VA application and appraisal fees.
(3) Loan origination or assumption fees that do not represent
prepaid interest.
(4) Professional home inspection, certification of structural
soundness, and termite inspection when required.
(5) Credit report.
(6) Owner's and mortgagee's evidence of title, e.g., title
insurance, not to exceed the costs for a comparable replacement
dwelling.
(7) Escrow agent's fee.
(8) State revenue or documentary stamps, sales or transfer taxes
(not to exceed the costs for a comparable replacement dwelling).
(9) Such other costs as the Agency determines to be incidental to
the purchase.
(f) Rental assistance payment for 180-day homeowner. A 180-day
homeowner-occupant, who could be eligible for a replacement housing
payment under paragraph (a) of this
[[Page 70376]]
section but elects to rent a replacement dwelling, is eligible for a
rental assistance payment. The amount of the rental assistance payment
is based on a determination of market rent for the acquired dwelling
compared to a comparable rental dwelling available on the market. The
difference, if any, is computed and disbursed in accordance with Sec.
24.402(b), however, the calculation under Sec. 24.402(b)(2)(ii) is not
applicable. Under no circumstance would the rental assistance payment
exceed the amount that could have been received had the 180-day
homeowner elected to receive a replacement housing payment under
paragraph (a) of this section.
Sec. 24.402 Replacement housing payment for 90-day occupants.
(a) Eligibility. A tenant or owner-occupant displaced from a
dwelling is entitled to a payment not to exceed $5,250 for rental
assistance, as computed in accordance with paragraph (b) of this
section, or downpayment assistance, as computed in accordance with
paragraph (c) of this section, if such displaced person:
(1) Has actually and lawfully occupied the displacement dwelling
for at least 90 days immediately prior to the initiation of
negotiations; and
(2) Has rented, or purchased, and occupied a decent, safe, and
sanitary replacement dwelling within 1 year (unless the Agency extends
this period for good cause) after:
(i) For a tenant, the date he or she moves from the displacement
dwelling; or
(ii) For an owner-occupant, the later of:
(A) The date he or she receives final payment for the displacement
dwelling, or in the case of condemnation, the date the full amount of
the estimate of just compensation is deposited with the court; or
(B) The date he or she moves from the displacement dwelling.
(b) Rental assistance payment--(1) Amount of payment. An eligible
displaced person who rents a replacement dwelling is entitled to a
payment not to exceed $5,250 for rental assistance. (See also Sec.
24.404.) Such payment shall be 42 times the amount obtained by
subtracting the base monthly rental for the displacement dwelling from
the lesser of:
(i) The monthly rent and estimated average monthly cost of
utilities for a comparable replacement dwelling; or
(ii) The monthly rent and estimated average monthly cost of
utilities for the decent, safe, and sanitary replacement dwelling
actually occupied by the displaced person.
(2) Base monthly rental for displacement dwelling. The base monthly
rental for the displacement dwelling is the lesser of:
(i) The average monthly cost for rent and utilities at the
displacement dwelling for a reasonable period prior to displacement, as
determined by the Agency (for an owner-occupant, use the fair market
rent for the displacement dwelling. For a tenant who paid little or no
rent for the displacement dwelling, use the fair market rent, unless
its use would result in a hardship because of the person's income or
other circumstances);
(ii) Thirty (30) percent of the displaced person's average monthly
gross household income if the amount is classified as ``low income'' by
the U.S. Department of Housing and Urban Development's annual survey of
Income Limits for the Public Housing and Section 8 Programs.\3\ The
base monthly rental shall be established solely on the criteria in
paragraph (b)(2)(i) of this section for persons with income exceeding
the survey's ``low income'' limits, for persons refusing to provide
appropriate evidence of income, and for persons who are dependents. A
full time student or resident of an institution may be assumed to be a
dependent, unless the person demonstrates otherwise or,
(iii) The total of the amounts designated for shelter and utilities
if the displaced person is receiving a welfare assistance payment from
a program that designates the amounts for shelter and utilities.
---------------------------------------------------------------------------
\3\ The U.S. Department of Housing and Urban Development's Home
Program Income Llimits are updated annually and are available
annually on HUD's Web site at http://www.huduser.org/datasets/il.html.
---------------------------------------------------------------------------
(3) Manner of disbursement. A rental assistance payment may, at the
Agency's discretion, be disbursed in either a lump sum or in
installments. However, except as limited by Sec. 24.403(f), the full
amount vests immediately, whether or not there is any later change in
the person's income or rent, or in the condition or location of the
person's housing.
(c) Downpayment assistance payment--(1) Amount of payment. An
eligible displaced person who purchases a replacement dwelling is
entitled to a downpayment assistance payment in the amount the person
would receive under paragraph (b) of this section if the person rented
a comparable replacement dwelling. At the Agency's discretion, a
downpayment assistance payment that is less than $5,250 may be
increased to any amount not to exceed $5,250. However, the payment to a
displaced homeowner shall not exceed the amount the owner would receive
under Sec. 24.401(b) if he or she met the 180-day occupancy
requirement. If the Agency elects to provide the maximum payment of
$5,250 as a downpayment, the Agency shall apply this discretion in a
uniform and consistent manner, so that eligible displaced persons in
like circumstances are treated equally. A displaced person eligible to
receive a payment as a 180-day owner-occupant under Sec. 24.401(a) is
not eligible for this payment. (See appendix A, section 24.402.)
(2) Application of payment. The full amount of the replacement
housing payment for downpayment assistance must be applied to the
purchase price of the replacement dwelling and related incidental
expenses.
Sec. 24.403 Additional rules governing replacement housing payments.
(a) Determining cost of comparable replacement dwelling. The upper
limit of a replacement housing payment shall be based on the cost of a
comparable replacement dwelling (defined at Sec. 24.2(a)(6)), and the
amount, if any, that will compensate a displaced homeowner for the
estimated amount of any increase real estate taxes for 24 months
determined in accordance with appendix A. (See appendix A, section
24.403(a).)
(1) If available, at least three comparable replacement dwellings
shall be examined and the payment computed on the basis of the dwelling
most nearly representative of, and equal to, or better than, the
displacement dwelling.
(2) If the site of the comparable replacement dwelling lacks a
major exterior attribute of the displacement dwelling site, (e.g., the
site is significantly smaller or does not contain a swimming pool), the
value of such attribute shall be subtracted from the acquisition cost
of the displacement dwelling for purposes of computing the payment.
(3) If the acquisition of a portion of a typical residential
property causes the displacement of the owner from the dwelling and the
remainder is a buildable residential lot, the Agency may offer to
purchase the entire property. If the owner refuses to sell the
remainder to the Agency, the market value of the remainder may be added
to the acquisition cost of the displacement dwelling for purposes of
computing the replacement housing payment.
(4) To the extent feasible, comparable replacement dwellings shall
be selected from the neighborhood in which the displacement dwelling
was located or, if
[[Page 70377]]
that is not possible, in nearby or similar neighborhoods where housing
costs are generally the same or higher.
(5) Multiple occupants of one displacement dwelling. If two or more
occupants of the displacement dwelling move to separate replacement
dwellings, each occupant is entitled to a reasonable prorated share, as
determined by the Agency, of any relocation payments that would have
been made if the occupants moved together to a comparable replacement
dwelling. However, if the Agency determines that two or more occupants
maintained separate households within the same dwelling, such occupants
have separate entitlements to relocation payments.
(6) Deductions from relocation payments. An Agency shall deduct the
amount of any advance relocation payment from the relocation payment(s)
to which a displaced person is otherwise entitled. Similarly, a Federal
Agency shall, and a State Agency may, deduct from relocation payments
any rent that the displaced person owes the Agency; provided that no
deduction shall be made if it would prevent the displaced person from
obtaining a comparable replacement dwelling as required by Sec.
24.204. The Agency shall not withhold any part of a relocation payment
to a displaced person to satisfy an obligation to any other creditor.
(7) Mixed-use and multifamily properties. If the displacement
dwelling was part of a property that contained another dwelling unit
and/or space used for non-residential purposes, and/or is located on a
lot larger than typical for residential purposes, only that portion of
the acquisition payment which is actually attributable to the
displacement dwelling shall be considered the acquisition cost when
computing the replacement housing payment.
(b) Inspection of replacement dwelling. Before making a replacement
housing payment or releasing the initial payment from escrow, the
Agency or its designated representative shall inspect the replacement
dwelling and determine whether it is a decent, safe, and sanitary
dwelling as defined at Sec. 24.2(a)(8).
(c) Purchase of replacement dwelling. A displaced person is
considered to have met the requirement to purchase a replacement
dwelling, if the person:
(1) Purchases a dwelling;
(2) Purchases and rehabilitates a substandard dwelling;
(3) Relocates a dwelling which he or she owns or purchases;
(4) Constructs a dwelling on a site he or she owns or purchases;
(5) Contracts for the purchase or construction of a dwelling on a
site provided by a builder or on a site the person owns or purchases;
or
(6) Currently owns a previously purchased dwelling and site,
valuation of which shall be on the basis of current market value.
(d) Occupancy requirements for displacement or replacement
dwelling. No person shall be denied eligibility for a replacement
housing payment solely because the person is unable to meet the
occupancy requirements set forth in these regulations for a reason
beyond his or her control, including:
(1) A disaster, an emergency, or an imminent threat to the public
health or welfare, as determined by the President, the Federal Agency
funding the project, or the displacing Agency; or
(2) Another reason, such as a delay in the construction of the
replacement dwelling, military duty, or hospital stay, as determined by
the Agency.
(e) Conversion of payment. A displaced person who initially rents a
replacement dwelling and receives a rental assistance payment under
Sec. 24.402(b) is eligible to receive a payment under Sec. 24.401 or
Sec. 24.402(c) if he or she meets the eligibility criteria for such
payments, including purchase and occupancy within the prescribed 1 year
period. Any portion of the rental assistance payment that has been
disbursed shall be deducted from the payment computed under Sec.
24.401 or Sec. 24.402(c).
(f) Payment after death. A replacement housing payment is personal
to the displaced person and upon his or her death the undisbursed
portion of any such payment shall not be paid to the heirs or assigns,
except that:
(1) The amount attributable to the displaced person's period of
actual occupancy of the replacement housing shall be paid.
(2) Any remaining payment shall be disbursed to the remaining
family members of the displaced household in any case in which a member
of a displaced family dies.
(3) Any portion of a replacement housing payment necessary to
satisfy the legal obligation of an estate in connection with the
selection of a replacement dwelling by or on behalf of a deceased
person shall be disbursed to the estate.
(g) Insurance proceeds. To the extent necessary to avoid duplicate
compensation, the amount of any insurance proceeds received by a person
in connection with a loss to the displacement dwelling due to a
catastrophic occurrence (fire, flood, etc.) shall be included in the
acquisition cost of the displacement dwelling when computing the price
differential. (See also Sec. 24.3.)
Sec. 24.404 Replacement housing of last resort.
(a) Determination to provide replacement housing of last resort.
Whenever a program or project cannot proceed on a timely basis because
comparable replacement dwellings are not available within the monetary
limits for owners or tenants, as specified in Sec. 24.401 or Sec.
24.402, as appropriate, the Agency shall provide additional or
alternative assistance under the provisions of this subpart. Any
decision to provide last resort housing assistance must be adequately
justified either:
(1) On a case-by-case basis, for good cause, which means that
appropriate consideration has been given to:
(i) The availability of comparable replacement housing in the
program or project area;
(ii) The resources available to provide comparable replacement
housing; and
(iii) The individual circumstances of the displaced person.
(2) By a determination that:
(i) There is little, if any, comparable replacement housing
available to displaced persons within an entire program or project
area; and, therefore, last resort housing assistance is necessary for
the area as a whole;
(ii) A program or project cannot be advanced to completion in a
timely manner without last resort housing assistance; and
(iii) The method selected for providing last resort housing
assistance is cost effective, considering all elements which contribute
to total program or project costs.
(b) Basic rights of persons to be displaced. Notwithstanding any
provision of this subpart, no person shall be required to move from a
displacement dwelling unless comparable replacement housing is
available to such person. No person may be deprived of any rights the
person may have under the Uniform Act or this part. The Agency shall
not require any displaced person to accept a dwelling provided by the
Agency under these procedures (unless the Agency and the displaced
person have entered into a contract to do so) in lieu of any
acquisition payment or any relocation payment for which the person may
otherwise be eligible.
(c) Methods of providing comparable replacement housing. Agencies
shall have broad latitude in implementing this subpart, but
implementation shall be for reasonable cost, on a case-by-case basis
unless an exception to case-by-
[[Page 70378]]
case analysis is justified for an entire project.
(1) The methods of providing replacement housing of last resort
include, but are not limited to:
(i) A replacement housing payment in excess of the limits set forth
in Sec. 24.401 or Sec. 24.402. A replacement housing payment under
this section may be provided in installments or in a lump sum at the
Agency's discretion.
(ii) Rehabilitation of and/or additions to an existing replacement
dwelling.
(iii) The construction of a new replacement dwelling.
(iv) The provision of a direct loan, which requires regular
amortization or deferred repayment. The loan may be unsecured or
secured by the real property. The loan may bear interest or be
interest-free.
(v) The relocation and, if necessary, rehabilitation of a dwelling.
(vi) The purchase of land and/or a replacement dwelling by the
displacing Agency and subsequent sale or lease to, or exchange with a
displaced person.
(vii) The removal of barriers for persons with disabilities.
(viii) The change in status of the displaced person with his or her
concurrence from tenant to homeowner when it is more cost effective to
do so, as in cases where a downpayment may be less expensive than a
last resort rental assistance payment.
(2) Under special circumstances, consistent with the definition of
a comparable replacement dwelling, modified methods of providing
replacement housing of last resort permit consideration of replacement
housing based on space and physical characteristics different from
those in the displacement dwelling (See appendix A, Sec. 24.404),
including upgraded, but smaller replacement housing that is decent,
safe, and sanitary and adequate to accommodate individuals or families
displaced from marginal or substandard housing with probable functional
obsolescence. In no event, however, shall a displaced person be
required to move into a dwelling that is not functionally equivalent in
accordance with Sec. 24.2(a)(6)(ii) of this part.
(3) The Agency shall provide assistance under this subpart to a
displaced person who is not eligible to receive a replacement housing
payment under Sec. Sec. 24.401 and 24.402 because of failure to meet
the length of occupancy requirement when comparable replacement rental
housing is not available at rental rates within the displaced person's
financial means. (See Sec. 24.2(6)(viii)). Such assistance shall cover
a period of 42 months.
Subpart F--Mobile Homes
Sec. 24.501 Applicability.
(a) General. This subpart describes the requirements governing the
provision of replacement housing payments to a person displaced from a
mobile home and/or mobile home site who meets the basic eligibility
requirements of this part. Except as modified by this subpart, such a
displaced person is entitled to a moving expense payment in accordance
with subpart D to this part and a replacement housing payment in
accordance with subpart E to this part to the same extent and subject
to the same requirements as persons displaced from conventional
dwellings. Moving cost payments to persons occupying mobile homes are
covered in Sec. Sec. 24.301(g)(1) through (g)(10).
(b) Partial acquisition of mobile home park. The acquisition of a
portion of a mobile home park property may leave a remaining part of
the property that is not adequate to continue the operation of the
park. If the Agency determines that a mobile home located in the
remaining part of the property must be moved as a direct result of the
project, the occupant of the mobile home shall be considered to be a
displaced person who is entitled to relocation payments and other
assistance under this part.
Sec. 24.502 Replacement housing payment for 180-day mobile homeowner
displaced from a mobile home, and/or from the acquired mobile home
site.
(a) Eligibility. An owner-occupant displaced from a mobile home is
entitled to a replacement housing payment, not to exceed $22,500, under
Sec. 24.401 if:
(1) The person occupied the mobile home on the displaced site for
at least 180 days immediately before:
(i) The initiation of negotiations to acquire the mobile home, if
the person owned the mobile home and the mobile home is real property;
(ii) The initiation of negotiations to acquire the mobile home site
if the mobile home is personal property, but the person owns the mobile
home site; or
(iii) The date the person is notified that he or she is a displaced
person if the person owns neither the mobile home or the site, if the
Agency makes one of the determinations in paragraphs (a)(3)(i) through
(iv) of this section.
(2) The person meets the other basic eligibility requirements at
Sec. 24.401(a); and
(3) The Agency acquires the mobile home as real estate, or acquires
the mobile home site from the displaced owner, or the mobile home is
personal property but the owner is displaced from the mobile home
because the Agency determines that the mobile home:
(i) Is not, and cannot economically be made decent, safe, and
sanitary;
(ii) Cannot be relocated without substantial damage or unreasonable
cost;
(iii) Cannot be relocated because there is no available comparable
replacement site; or
(iv) Cannot be relocated because it does not meet mobile home park
entrance requirements.
(b) Replacement housing payment computation for a 180-day owner
that is displaced from a mobile home. The replacement housing payment
for an eligible displaced 180-day owner is computed as described at
Sec. 24.401(c) incorporating the following, as applicable:
(1) If the Agency acquires the mobile home as real estate, the
acquisition cost used to compute the payment is the actual amount paid
to the owner as just compensation for the acquisition of the mobile
home, and site, if owned by the displaced mobile homeowner.
(2) If the owner is determined to be eligible for a replacement
housing payment based on paragraph (a)(1)(iii) of this section, but the
Agency does not purchase the mobile home as real estate, the cost of a
replacement mobile home used to compute the payment, is the lesser of
the displaced mobile homeowner's net cost to purchase a replacement
mobile home (i.e., purchase price of the replacement mobile home less
trade-in or sale proceeds of the displacement mobile home); or, the
cost of the Agency's selected comparable mobile home less the Agency's
estimate of the salvage or trade-in value for the mobile home from
which the person is displaced.
(c) Rental assistance payment for a 180-day owner-occupant that is
displaced from a leased or rented mobile home site. If the displacement
mobile home site is leased or rented, a displaced 180-day owner-
occupant is entitled to a rental assistance payment computed as
described in Sec. 24.402(b). This rental assistance payment may be
used to lease a replacement site; may be applied to the purchase price
of a replacement site; or may be applied, with any replacement housing
payment attributable to the mobile home, to the purchase of a
replacement mobile home or conventional decent, safe and sanitary
dwelling.
(d) Comparable mobile home site not available. If a comparable
replacement mobile homesite is not available, the replacement housing
payment shall be
[[Page 70379]]
computed on the basis of the reasonable cost of a conventional
comparable replacement dwelling.
(e) Owner not displaced from the mobile home. If the Agency
determines that a mobile home is personal property and may be relocated
to a comparable replacement site, but the owner-occupant elects not to
do so, the owner is not entitled to a replacement housing payment for
the purchase of a replacement mobile home. However, the owner is
eligible for moving costs described at Sec. 24.301 and any replacement
housing payment for the purchase or rental of a comparable site as
described in paragraph (c) of this section.
Sec. 24.503 Replacement housing payment for 90-day mobile home
occupants.
A displaced tenant or owner-occupant of a mobile home is eligible
for a replacement housing payment, not to exceed $5,250, under Sec.
24.402 if:
(a) The person actually occupied the displacement mobile home on
the displacement site for at least 90 days immediately prior to the
initiation of negotiations;
(b) The person meets the other basic eligibility requirements at
Sec. 24.402(a); and
(c) The Agency acquires the mobile home and/or mobile home site, or
the mobile home is not acquired by the Agency but the Agency determines
that the occupant is displaced from the mobile home because of one of
the circumstances described at Sec. 24.502(a)(3).
Subpart G--Certification
Sec. 24.601 Purpose.
This subpart permits a State Agency to fulfill its responsibilities
under the Uniform Act by certifying that it shall operate in accordance
with State laws and regulations which shall accomplish the purpose and
effect of the Uniform Act, in lieu of providing the assurances required
by Sec. 24.4 of this part.
Sec. 24.602 Certification application.
An Agency wishing to proceed on the basis of a certification may
request an application for certification from the Lead Agency Director,
Office of Real Estate Services, HEPR-1, Federal Highway Administration,
400 Seventh St. SW., Washington, DC 20590. The completed application
for certification must be approved by the governor of the State, or the
governor's designee, and must be coordinated with the Federal funding
Agency, in accordance with application procedures.
Sec. 24.603 Monitoring and corrective action.
(a) The Federal Lead Agency shall, in coordination with other
Federal Agencies, monitor from time to time State Agency implementation
of programs or projects conducted under the certification process and
the State Agency shall make available any information required for this
purpose.
(b) The Lead Agency may require periodic information or data from
affected Federal or State Agencies.
(c) A Federal Agency may, after consultation with the Lead Agency,
and notice to and consultation with the governor, or his or her
designee, rescind any previous approval provided under this subpart if
the certifying State Agency fails to comply with its certification or
with applicable State law and regulations. The Federal Agency shall
initiate consultation with the Lead Agency at least 30 days prior to
any decision to rescind approval of a certification under this subpart.
The Lead Agency will also inform other Federal Agencies, which have
accepted a certification under this subpart from the same State Agency,
and will take whatever other action that may be appropriate.
(d) Section 103(b)(2) of the Uniform Act, as amended, requires that
the head of the Lead Agency report biennially to the Congress on State
Agency implementation of section 103. To enable adequate preparation of
the prescribed biennial report, the Lead Agency may require periodic
information or data from affected Federal or State Agencies.
Appendix A to Part 24--Additional Information
This Appendix provides additional information to explain the
intent of certain provisions of this part.
Subpart A--General
Section 24.2 Definitions and Acronyms.
Section 24.2(a)(6) Definition of comparable replacement
dwelling. The requirement in Sec. 24.2(a)(6)(ii) that a comparable
replacement dwelling be ``functionally equivalent'' to the
displacement dwelling means that it must perform the same function,
and provide the same utility. While it need not possess every
feature of the displacement dwelling, the principal features must be
present.
For example, if the displacement dwelling contains a pantry and
a similar dwelling is not available, a replacement dwelling with
ample kitchen cupboards may be acceptable. Insulated and heated
space in a garage might prove an adequate substitute for basement
workshop space. A dining area may substitute for a separate dining
room. Under some circumstances, attic space could substitute for
basement space for storage purposes, and vice versa.
Only in unusual circumstances may a comparable replacement
dwelling contain fewer rooms or, consequentially, less living space
than the displacement dwelling. Such may be the case when a decent,
safe, and sanitary replacement dwelling (which by definition is
``adequate to accommodate'' the displaced person) may be found to be
``functionally equivalent'' to a larger but very run-down
substandard displacement dwelling. Another example is when a
displaced person accepts an offer of government housing assistance
and the applicable requirements of such housing assistance program
require that the displaced person occupy a dwelling that has fewer
rooms or less living space than the displacement dwelling.
Section 24.2(a)(6)(vii). The definition of comparable
replacement dwelling requires that a comparable replacement dwelling
for a person who is not receiving assistance under any government
housing program before displacement must be currently available on
the private market without any subsidy under a government housing
program.
Section 24.2(a)(6)(ix). A public housing unit may qualify as a
comparable replacement dwelling only for a person displaced from a
public housing unit. A privately owned dwelling with a housing
program subsidy tied to the unit may qualify as a comparable
replacement dwelling only for a person displaced from a similarly
subsidized unit or public housing.
A housing program subsidy that is paid to a person (not tied to
the building), such as a HUD Section 8 Housing Voucher Program, may
be reflected in an offer of a comparable replacement dwelling to a
person receiving a similar subsidy or occupying a privately owned
subsidized unit or public housing unit before displacement.
However, nothing in this part prohibits an Agency from offering,
or precludes a person from accepting, assistance under a government
housing program, even if the person did not receive similar
assistance before displacement. However, the Agency is obligated to
inform the person of his or her options under this part. (If a
person accepts assistance under a government housing assistance
program the rules of that program governing the size of the dwelling
apply, and the rental assistance payment under Sec. 24.402 would be
computed on the basis of the person's actual out-of-pocket cost for
the replacement housing.)
Section 24.2(a)(8)(viii) Persons with a disability. Reasonable
accommodation of a displaced person with a disability at the
replacement dwelling means the Agency is required to address
situations involving persons dependent on the use of a wheelchair
for mobility. In these situations, reasonable accommodation should
include the following at a minimum: Doors of adequate width; ramps
or other assistance devices to traverse stairs and access bathtubs,
shower stalls, toilets and sinks; storage cabinets, vanities, sink
and mirrors at appropriate heights. Kitchen accommodations will
include sinks and storage cabinets built at appropriate heights for
access. The Agency shall also consider
[[Page 70380]]
other items that may be necessary, such as physical modification to
a unit, based on the displaced person's needs.
Section 24.2(a)(9)(ii)(D) Persons not displaced. Paragraph
(a)(9)(ii)(D) of this section recognizes that there are
circumstances where the acquisition of real property takes place
without the intent or necessity that an occupant of the property be
permanently displaced. Because such occupants are not considered
``displaced persons'' under this part, great care must be exercised
to ensure that they are treated fairly and equitably. For example,
if the tenant-occupant of a dwelling will not be displaced, but is
required to relocate temporarily in connection with the project, the
temporarily occupied housing must be decent, safe, and sanitary and
the tenant must be reimbursed for all reasonable out-of-pocket
expenses incurred in connection with the temporary relocation. These
expenses may include moving expenses and increased housing costs
during the temporary relocation. Temporary relocation should not
extend beyond one year before the person is returned to his or her
previous unit or location. Any residential tenant who has been
temporarily relocated for a period beyond one year must be contacted
by the Agency and be offered all permanent relocation assistance.
This assistance would be in addition to any assistance the person
has already received for temporary relocation, and may not be
reduced by the amount of any temporary relocation assistance.
Similarly, if a business will be shut-down for any length of
time due to rehabilitation of a site, it may be temporarily
relocated and reimbursed for all reasonable out of pocket expenses
or must be determined to be displaced at the agency's option.
It is also noted that any person who disagrees with the Agency's
determination that he or she is not a displaced person under this
part may file an appeal in accordance with 49 CFR 24.10.
Section 24.2(a)(15) Household income (exclusions). Household
income for purposes of this regulation does not include program
benefits that are not considered income by Federal law such as food
stamps and the Women Infants and Children (WIC) program. For a more
detailed list of income exclusions see Federal Highway
Administration, Office of Real Estate Services Web site: http://www.fhwa.dot.gov/realestate. (FR 4644-N-16 page 20319 Updated.) If
there is a question on whether or not to include income from a
specific program contact the Federal Agency administering the
program.
Section 24(a)(16) Initiation of negotiations. This section
provides a special definition for acquisitions and displacements
under Public Law 96-510 or Superfund. These activities differ under
Superfund in that relocation may precede acquisition, the reverse of
the normal sequence. Superfund is a program designed to clean up
hazardous waste sites. When such a site is discovered, it may be
necessary, in certain limited circumstances, to alert the public to
the danger and to the advisability of moving immediately. If a
decision were made later to permanently relocate such persons, those
who had moved earlier would no longer be on site when a formal,
written offer to acquire the property was made and thus would lose
their eligibility for a replacement housing payment. In order to
prevent this unfair outcome, we have provided a definition that is
based on the public health advisory or announcement of permanent
relocation.
Section 24.2(a)(18) Mobile home. A recreational vehicle that is
capable of providing living accommodations may be considered a
replacement dwelling if the following criteria are met: the
recreational vehicle is purchased and occupied as the ``primary''
place of residence; it is located on a purchased or leased site and
connected to all necessary utilities for functioning as a housing
unit on the date of the displacing Agency's inspection; and, the
dwelling, as sited, meets all local, State, and Federal requirements
for a DSS dwelling. (It should be noted that the regulations of some
local jurisdictions will not permit the consideration of these
vehicles as DSS dwellings. In those cases, the recreational vehicle
will not qualify as a replacement dwelling.)
There are several types of factory-built housing, but the most
common is ``HUD-Code'' or manufactured homes. HUD-Code homes are so
named because since June 15, 1976, these home must be designed and
constructed according to the Federal ``Manufactured Home
Construction and Safety Standards'' \1\ administered by HUD.
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\1\ The U.S. Department of Housing & Urban Development's
``Manufactured Home Construction and Safety Standards'' is available
at the following URL: http://www.cfda.gov/public/viewprog.asp?progid=316.
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Our definition of a mobile home would also include mobile homes,
defined as being transportable in one or more sections not less than
eight feet wide and forty feet long.
When assembled, manufactured homes built after 1976 contain no
less than 320 square feet. They are built on and remain on a
permanent chassis, and may or may not be installed on a permanent
foundation when connected to utilities. Manufactured homes may be
single or multi-sectioned units when installed. Their designation as
personalty or realty will be determined by State law. When
determined to be realty, most are eligible for conventional mortgage
financing.
The 1976 HUD standards distinguish manufactured homes from
factory-built ``modular homes'' as well as conventional or ``stick-
built'' homes. Both of these types of housing are required to meet
State and local construction codes.
Section 24.3 No Duplication of Payments.
This section prohibits an Agency from making a payment to a
person under these regulations that would duplicate another payment
the person receives under Federal, State, or local law. The Agency
is not required to conduct an exhaustive search for such other
payments; it is only required to avoid creating a duplication based
on the Agency's knowledge at the time a payment is computed.
Section 24.9 Recordkeeping and Reports.
Section 24.9(c) Reports. This paragraph requires that Federal
Agencies submit an annual report of their real property acquisition
and displacement activities under this part to the lead Agency. The
report covers activities during the Federal fiscal year immediately
prior to the submission date. In order to minimize the
administrative burden on Agencies implementing this part, a basic
report form (See appendix B of this part) has been developed which,
with only minor modifications, would be used in all Federal and
federally-assisted programs or projects.
Subpart B--Real Property Acquisition
Section 24.101 Applicability of Acquisition Requirements.
Section 24.101(a) Direct Federal program or project. All 49 CFR
Part 24 requirements apply to all direct acquisitions for Federal
programs and projects by Federal Agencies, except for acquisitions
undertaken by the Tennessee Valley Authority or the Rural
Electrification Administration. There are no exceptions for
``voluntary transactions.''
Section 24.101(b)(1)(i). The term ``general geographic area'' is
used to clarify that the ``geographic area'' is not to be construed
to be a small, limited area.
Section 24.101(b)(1)(iv) and (2)(ii). These sections provide
that for programs and projects receiving Federal financial
assistance, Agencies are to inform the owner(s) in writing of the
Agency's estimate of the market value for the property to be
acquired.
While this part does not require an appraisal for these
transactions, Agencies may still decide that an appraisal is
necessary to support their determination of the market value of
these properties, and, in any event, Agencies must have some
reasonable basis for their determination of market value. In
addition, some of the concepts inherent in Federal Program appraisal
practice are appropriate for these estimates. It would be
appropriate for Agencies to adhere to project influence
restrictions, as well as guard against discredited ``public interest
value'' valuation concepts.
Section 24.101(c) Less-than-full-fee interest in real property.
This provision provides a benchmark beyond which the requirements of
the subpart clearly apply to leases. However, the Agency may apply
the regulations to any less-than-full-fee acquisition which is less
than 50 years in duration, but which in its judgment should be
covered.
Section 24.102 Basic Acquisition Policies.
Section 24.102(c)(2) Appraisal, waiver thereof, and invitation
to owner. The threshold for an appraisal waiver is based on
minimizing appraisal costs for low value, non-complex acquisitions.
The determination to use the appraisal waiver process, i.e.,
that the acquisition will be uncomplicated and the market value is
estimated at $10,000 or less must be made by a person who has enough
understanding of appraisal principles to be qualified to make such a
determination.
The intent of the appraisal waiver provision is that waiver
valuations be made by non-appraisers, freeing appraisers to do more
sophisticated work. Since waiver
[[Page 70381]]
valuations are not appraisals, there is no requirement for an
appraisal review. However, the Agency must have a reasonable basis
for the waiver valuation and an Agency official must still establish
an amount believed to be just compensation to offer the property
owner(s).
All parties, including State certified and licensed appraisers
who may be engaged to perform waiver valuations, should keep in mind
that waiver valuations are not appraisals under the applicable
definitions of ``appraisal'' in Sec. 24.2(a)(3) and ``waiver
valuation'' in Sec. 24.2(a)(34). Waiver valuations may be used on
Federal and federally-assisted programs and projects without regard
to whether or not appraisal requirements from any non-governmental
source, such as the Appraisal Foundation's Uniform Standards of
Professional Appraisal Practice (USPAP) or professional appraiser
societies, account for such waiver valuations. Waiver valuations are
intended to avoid the costs and time delays associated with
appraisal requirements for low value, non-complex acquisitions.
Section 24.102(d) Establishment of offer of just compensation.
The initial offer to the property owner may not be less than the
amount of the Agency's approved appraisal, but may exceed that
amount if the Agency determines that a greater amount reflects just
compensation for the property.
Section 24.102(f) Basic negotiation procedures. An offer should
be adequately presented to an owner, and the owner be properly
informed. Personal, face-to-face contact should take place, if
feasible, but this section does not require such contact in all
cases.
This section also provides that the property owner be given a
reasonable opportunity to consider the Agency's offer and to present
relevant material to the Agency. In order to satisfy this
requirement, Agencies must allow owners time for analysis, research
and development, and compilation of a response, including perhaps
getting an appraisal. The needed time can vary significantly,
depending on the circumstances, but thirty (30) days would seem to
be the minimum time these actions can be reasonably expected to
require. Regardless of project time pressures, property owners must
be afforded this opportunity.
In some jurisdictions, there is pressure to initiate formal
eminent domain procedures at the earliest opportunity because
completing the process, including gaining possession of the needed
real property, is very time consuming. These provisions are not
intended to restrict this practice, so long as it does not interfere
with the reasonable time that must be provided for negotiations,
described above, and the Agencies adhere to the Uniform Act ban on
coercive action [section 301(7) of the Uniform Act].
If the owner expresses an intent to provide an appraisal report,
Agencies are encouraged to provide the owner and/or his/her
appraiser a copy of Agency appraisal requirements and inform them
that their appraisal should be based on those requirements.
Section 24.102(i) Administrative settlement. This section
provides guidance on administrative settlement as an alternative to
judicial resolution of a difference of opinion on the value of a
property, in order to avoid unnecessary litigation and congestion in
the courts.
All relevant facts and circumstances should be considered by an
Agency official delegated this authority. Appraisers, including
review appraisers, must not be pressured to adjust their estimate of
value for the purpose of justifying such settlements. Such action
would invalidate the appraisal process.
Section 24.102(j) Payment before taking possession. It is
intended that a right-of-entry for construction purposes be obtained
only in the exceptional case, such as an emergency project, when
there is no time to make an appraisal and purchase offer and the
property owner is agreeable to the process.
Section 24.102(m) Fair rental. Section 301(6) of the Uniform Act
limits what an Agency may charge when a former owner or previous
occupant of a property is permitted to rent the property for a short
term or when occupancy is subject to termination by the Agency on
short notice. Such rent may not exceed ``the fair rental value of
the property to a short-term occupier.'' Generally, the Agency's
right to terminate occupancy on short notice (whether or not the
renter also has that right) supports the establishment of a lesser
rental than might be found in a longer, fixed-term situation.
Section 24.102(n) Conflict of interest. The overall objective is
to minimize the risk of fraud and while allowing Agencies to operate
as efficiently as possible. There are three parts to this provision.
The first provision is the prohibition against having any interest
in the real property being valued by the appraiser (for an
appraisal), the valuer (for a waiver estimate) or the review
appraiser (for an appraisal review). The second provision is that no
person functioning as a negotiator for a project or program can
supervise or formally evaluate the performance of any appraiser or
review appraiser performing appraisal or appraisal review work for
that project or program. However, for a program or project receiving
Federal financial assistance, the Federal funding agency may waive
this requirement if it would create a hardship for the Agency. The
intent is to accommodate Federal-aid recipients that have a small
staff where this provision would be unworkable. The third provision
is to minimize situations where administrative costs exceed
acquisition costs, Sec. 24.102(n) also provides that the same
person may prepare a valuation estimate (including an appraisal) and
negotiate that acquisition, if the valuation estimate amount is
$10,000 or less. However, it should be noted that this exception for
properties valued at $10,000 or less is not mandatory, e.g.,
Agencies are not required to use those who prepare a waiver
valuation or appraisal of $10,000 or less to negotiate the
acquisition, and, all appraisals must be reviewed in accordance with
Sec. 24.104. This includes appraisals of real property valued at
$10,000 or less.
Section 24.103 Criteria for Appraisals.
The term ``requirements'' is used throughout this section to
avoid confusion with the Appraisal Foundation's Uniform Standards of
Professional Appraisal Practice (USPAP) ``standards.'' Although this
section discusses appraisal requirements, the definition of
``appraisal'' itself at Sec. 24.2(a)(3) includes appraisal
performance requirements that are an inherent part of this section.
The term ``Federal and federally-assisted program'' is used to
better identify the type of appraisal practices that are to be
referenced and to differentiate them from the private sector,
especially mortgage lending, appraisal practice.
Section 24.103(a) Appraisal requirements. The first sentence
instructs readers that requirements for appraisals for Federal and
federally-assisted programs are located in 49 CFR part 24. These are
the basic appraisal requirements for Federal and federally-assisted
programs. However, Agencies may enhance and expand on them, and
there may be specific project or program legislation that references
other appraisal requirements.
The term ``scope of work'' defines the general parameters of the
appraisal. It reflects the needs of the Agency and the requirements
of Federal and federally-assisted program appraisal practice. It
should be developed cooperatively by the assigned appraiser and an
Agency official who is competent to both represent the Agency's
needs and respect valid appraisal practice. The scope of work
statement should include the purpose and/or function of the
appraisal, a definition of the estate being appraised, and if it is
market value, its applicable definition, and the assumptions and
limiting conditions affecting the appraisal. It may include
parameters for the data search and identification of the technology,
including approaches to value, to be used to analyze the data. The
scope of work for a detailed appraisal should consider the specific
requirements in 49 CFR 24.103(a)(1) through (5) and address them as
appropriate.
Paragraph (a)(2) of this section, explains that all relevant and
reliable approaches to value are to be used. However, where an
Agency determines that the sales comparison approach will be
adequate by itself because of the type of property being appraised
and the availability of sales data, it may limit the appraisal
assignment to the sales comparison approach. This should be
reflected in the scope of work.
Section 24.103(b) Influence of the project on just compensation.
As used in this section, the term ``project'' means an undertaking
which is planned, designed, and intended to operate as a unit.
When the public is aware of the proposed project, project area
property values may be affected. Therefore, property owners should
not be penalized because of a decrease in value caused by the
proposed project nor reap a windfall at public expense because of
increased value created by the proposed project.
Section 24.103(d)(1). The appraiser and review appraiser must
each be qualified and competent to perform the appraisal and
appraisal review assignments, respectively. Among other
qualifications, State licensing or certification can help provide an
indication of an appraiser's abilities.
Section 24.104 Review of appraisals.
[[Page 70382]]
The term ``review appraiser'' is used rather than ``reviewing
appraiser,'' to emphasize that ``review appraiser'' is a separate
specialty and not just an appraiser who happens to be reviewing an
appraisal. Federal Agencies have long held the perspective that
appraisal review is a unique skill that, while it certainly builds
on appraisal skills, requires more. The review appraiser should
posses both appraisal technical abilities and the ability to be the
two-way bridge between the Agency's real property valuation needs
and the appraiser.
Agency review appraisers typically perform a role greater than
technical appraisal review. They are often involved in early project
development. Later they may be involved in devising the appraisal
problem statements and participate in making appraisal assignments
to fee and/or staff appraisers. They are also mentors and technical
advisors, especially on Agency policy and requirements, to
appraisers, both staff and fee. Additionally, review appraisers are
frequently technical advisors to other Agency officials.
Section 24.104(a). This paragraph states what the review
appraiser is to review (the appraiser's presentation and analysis of
market information) and what it is to be reviewed against Sec.
24.103 and other applicable requirements, including, to the extent
appropriate, the Uniform Appraisal Standards for Federal Land
Acquisition. The appraisal review is to be a technical review by an
appropriately qualified review appraiser. The qualifications of the
review appraiser and the level of explanation of the basis for the
reviewer's approved value depend on the complexity of the appraisal
problem. If the initial appraisal submitted for review is
unacceptable, the review appraiser is expected to communicate and
work with the appraiser to the greatest extent possible to
facilitate the appraiser's development of an acceptable appraisal.
In doing this, the review appraiser is to remain in an advisory
role, not directing the appraisal, and retaining objectivity and
options for the appraisal review itself.
If the Agency intends that the staff review appraiser establish
the amount the Agency believes is just compensation, she/he must be
specifically authorized by the Agency to do so. If the review
appraiser is not specifically authorized to establish the amount
believed to be just compensation, that authority is with another
Agency official.
Section 24.104(b). If the review appraiser develops an
independent opinion of value, he/she may reference any acceptable
resource, including acceptable parts of any appraisal, including an
otherwise unacceptable appraisal, to support his/her independent
approved value. If no submitted appraisal is approved, and the
review appraiser determines an independent review amount, while
remaining the appraisal review, that review also becomes the
appraisal of record for Uniform Act purposes. It is within Agency
discretion to decide whether a second review is needed if the first
review appraiser establishes a value different from that in the
appraisal report or reports on the property.
Section 24.104(c). Before acceptance of an appraisal, the review
appraiser must determine that the appraiser's documentation,
including valuation data and analysis of that data, demonstrates the
soundness of the appraiser's opinion of value. For the purposes of
this part, an acceptable appraisal is any appraisal that, on its
own, meets the requirements of Sec. 24.103. An approved appraisal
is the one acceptable appraisal that is determined to best fulfill
the requirement to be the basis for the amount believed to be just
compensation. Recognizing that appraisal is not an exact science,
there may be more than one acceptable appraisal of a property, but
for the purposes of this part, there can be only one approved
appraisal.
At the Agency's discretion, for a low value property requiring
only a simple appraisal process, the review appraiser's approval,
endorsing the appraiser's report, may be determined to satisfy the
requirement for the review appraiser's signed report and
certification.
Section 24.106(b) Expenses incidental to transfer of title to
the agency. Generally, the Agency is able to pay such incidental
costs directly and, where feasible, is required to do so. In order
to prevent the property owner from making unnecessary out-of-pocket
expenditures and to avoid duplication of expenses, the property
owner should be informed early in the acquisition process of the
Agency's intent to make such arrangements. Such expenses must be
reasonable and necessary.
Subpart C--General Relocation Requirements
Section 24.202 Applicability and Section 205(c) Services to be
provided. In extraordinary circumstances, when a displaced person is
not readily accessible, the Agency must make a good faith effort to
comply with these sections and document its efforts in writing.
Section 24.204 Availability of comparable replacement dwelling
before displacement.
Section 24.204(a) General. This provision requires that no one
may be required to move from a dwelling without a comparable
replacement dwelling having been made available. In addition, Sec.
24.204(a) requires that, ``Where possible, three or more comparable
replacement dwellings shall be made available.'' Thus, the basic
standard for the number of referrals required under this section is
three. Only in situations where three comparable replacement
dwellings are not available (e.g., when the local housing market
does not contain three comparable dwellings) may the Agency make
fewer than three referrals.
Section 24.205 Relocation assistance advisory services.
Section 24.205(c)(2)(ii)(C) emphasizes that if the comparable
replacement dwellings are located in areas of minority
concentration, minority persons should, if possible, also be given
opportunities to relocate to replacement dwellings not located in
such areas.
Section 24.206 Eviction for cause. An eviction related to non-
compliance with a requirement related to carrying out a project
(e.g., failure to move or relocate when instructed, or to cooperate
in the relocation process) shall not negate a person's entitlement
to relocation payments and other assistance set forth in this part.
Section 24.207 General requirements--Claims for relocation
payments. Section 24.207(a) allows an Agency to make a payment for
low cost or uncomplicated moves without additional documentation, as
long as the payment is limited to the amount of the lowest
acceptable bid or estimate, as provided for in Sec. 24.301(d)(1).
While section 24.207(f) prohibits an Agency from proposing or
requesting that a displaced person waive his or her rights or
entitlements to relocation assistance and payments, an Agency may
accept a written statement from the displaced person that states
that they have chosen not to accept some or all of the payments or
assistance to which they are entitled. Any such written statement
must clearly show that the individual knows what they are entitled
to receive (a copy of the Notice of Eligibility which was provided
may serve as documentation) and their statement must specifically
identify which assistance or payments they have chosen not to
accept. The statement must be signed and dated.
Subpart D--Payment for Moving and Related Expenses
Section 24.301 Payment for actual reasonable moving and related
expenses.
Section 24.301(g)(14)(ii). If the piece of equipment is
operational at the acquired site the estimated cost to reconnect the
equipment shall be based on the cost to install the equipment as it
currently exists, and shall not include the cost of code-required
betterments or upgrades that may apply at the replacement site.
Section 24.301(g)(17) Searching expenses. In special cases where
the displacing Agency determines it to be reasonable and necessary,
certain additional categories of searching costs may be considered
for reimbursement. These include those costs involved in
investigating potential replacement sites and the time of the
business owner, based on salary or earnings, required to apply for
licenses or permits, zoning changes, and attendance at zoning
hearings. Necessary permit, license and attorney fees are also
reimbursable. In those instances when such additional costs to
investigate and acquire the site exceed $2,500, the displacing
Agency may consider waiver of the cost limitation under the Sec.
24.7 waiver provision. Such a waiver should be subject to the
approval of the Federal funding Agency in accordance with existing
delegation authority.
Section 24.305 Fixed Payment for Moving Expenses--Nonresidential
Moves.
Section 24.305(d) Nonprofit organization. Gross revenues may
include membership fees, class fees, cash donations, tithes,
receipts from sales or other forms of fund collection that enables
the non-profit organization to operate. Administrative expenses are
those for administrative support such as rent, utilities, salaries,
advertising, and other like items as well as fundraising expenses.
Operating expenses for carrying out the purposes of the non-profit
organization are not included in
[[Page 70383]]
administrative expenses. The monetary receipts and expense amounts
may be verified with certified financial statements or financial
documents required by public Agencies.
Section 24.305(e) Average annual net earnings. If the average
annual net earnings of the displaced business, farm, or non-profit
organization are determined to be less than $1,000, even $0 or a
negative amount, the minimum payment of $1,000 shall be provided.
Section 24.306 Discretionary Utility Relocation Payments.
Section 24.306(c) describes the issues that the Agency and the
utility facility owner must agree to in determining the amount of
the relocation payment. To facilitate and aid in reaching such
agreement, the practices in the Federal Highway Administration
regulation, 23 CFR part 645, subpart A, Utility Relocations,
Adjustments and Reimbursement, should be followed.
Subpart E--Replacement Housing Payments
Section 24.401 Replacement Housing Payment for 180-day
Homeowner-Occupants.
Section 24.401(a)(2). An extension of eligibility may be granted
if some event beyond the control of the displaced person such as
acute or life threatening illness, bad weather preventing the
completion of construction, or physical modifications required for
reasonable accommodation of a replacement dwelling, or other like
circumstances causes a delay in occupying a decent, safe, and
sanitary replacement dwelling.
Section 24.401(c)(2)(iii) Price differential. The provision in
Sec. 24.401(c)(2)(iii) to use the current market value for
residential use does not mean the Agency must have the property
appraised. Any reasonable method for arriving at the market value
may be used.
Section 24.401(d) Increased mortgage interest costs. The
provision in Sec. 24.401(d) sets forth the factors to be used in
computing the payment that will be required to reduce a person's
replacement mortgage (added to the downpayment) to an amount which
can be amortized at the same monthly payment for principal and
interest over the same period of time as the remaining term on the
displacement mortgages. This payment is commonly known as the
``buydown.''
The Agency must know the remaining principal balance, the
interest rate, and monthly principal and interest payments for the
old mortgage as well as the interest rate, points and term for the
new mortgage to compute the increased mortgage interest costs. If
the combination of interest and points for the new mortgage exceeds
the current prevailing fixed interest rate and points for
conventional mortgages and there is no justification for the
excessive rate, then the current prevailing fixed interest rate and
points shall be used in the computations. Justification may be the
unavailability of the current prevailing rate due to the amount of
the new mortgage, credit difficulties, or other similar reasons.
Sample Computation
------------------------------------------------------------------------
------------------------------------------------------------------------
Old Mortgage:
Remaining Principal Balance.............................. $50,000
Monthly Payment (principal and interest)................. 458.22
Interest rate (percent).................................. 7
New Mortgage:
Interest rate (percent).................................. 10
Points................................................... 3
Term (years)............................................. 15
------------------------------------------------------------------------
Remaining term of the old mortgage is determined to be 174
months. Determining, or computing, the actual remaining term is more
reliable than using the data supplied by the mortgagee.) However, if
it is shorter, use the term of the new mortgage and compute the
needed monthly payment.
Amount to be financed to maintain monthly payments of $458.22 at
10%--$42,010.18
------------------------------------------------------------------------
------------------------------------------------------------------------
Calculation:
Remaining Principal Balance........................... $50,000.00
Minus Monthly Payment (principal and interest)........ -42,010.18
---------------
Increased mortgage interest costs..................... 7,989.82
3 points on $42,010.18................................ 1,260.31
---------------
Total buydown necessary to maintain payments at 9,250.13
$458.22/month......................................
------------------------------------------------------------------------
If the new mortgage actually obtained is less than the computed
amount for a new mortgage ($42,010.18), the buydown shall be
prorated accordingly. If the actual mortgage obtained in our example
were $35,000, the buydown payment would be $7,706.57 ($35,000 / by
$42,010.18 = .8331; $9,250.13 x .83 = $7,706.57).
The Agency is obligated to inform the displaced person of the
approximate amount of this payment and that the displaced person
must obtain a mortgage of at least the same amount as the old
mortgage and for at least the same term in order to receive the full
amount of this payment. The Agency must advise the displaced person
of the interest rate and points used to calculate the payment.
Section 24.402 Replacement Housing Payment for 90-day Occupants.
The down payment assistance provisions in Sec. 24.402(c) limit
such assistance to the amount of the computed rental assistance
payment for a tenant or an eligible homeowner. It does, however,
provide the latitude for Agency discretion in offering down payment
assistance that exceeds the computed rental assistance payment, up
to the $5,250 statutory maximum. This does not mean, however, that
such Agency discretion may be exercised in a selective or
discriminatory fashion. The displacing Agency should develop a
policy that affords equal treatment for displaced persons in like
circumstances and this policy should be applied uniformly throughout
the Agency's programs or projects.
For the purpose of this section, should the amount of the rent
supplement exceed the purchase price of the replacement dwelling,
the payment would be limited to the cost of the dwelling.
Section 24.403 Additional Rules Governing Replacement Housing.
Section 24.403(a) Determining Cost of Comparable Replacement
Dwelling. The payment for increased real estate taxes, if any, for
displaced 180-day owner occupants displaced as a result of a Federal
or federally-funded project, would be based on the difference
between the monthly real estate tax on the acquired dwelling, and
the monthly real estate tax on the replacement dwelling at the time
of purchase, but not to exceed the real estate tax on a comparable
replacement dwelling.
The increase dollar amount, if any, would be provided for a 24
month period. If the displaced person elects to purchase a
replacement dwelling whose real estate tax exceeds that of the
comparable dwelling, the increased tax payment would be limited to
the increased monthly tax on the comparable replacement dwelling at
the time of purchase for 24 months. Should the displaced person
elect to purchase a replacement dwelling for less than the cost of a
comparable replacement dwelling, the increased tax calculation would
be based on the 24 month increase, if any, in the tax cost of the
acquired dwelling and that of the replacement dwelling at the time
of purchase.
24.404 Replacement Housing of Last Resort.
Section 24.404(b) Basic rights of persons to be displaced. This
paragraph affirms the right of a 180-day homeowner-occupant, who is
eligible for a replacement housing payment under Sec. 24.401, to a
reasonable opportunity to purchase a comparable replacement
dwelling. However, it should be read in conjunction with the
definition of ``owner of a dwelling'' at Sec. 24.2(a)(21). The
Agency is not required to provide persons owning only a fractional
interest in the displacement dwelling a greater level of assistance
to purchase a replacement dwelling than the Agency would be required
to provide such persons if they owned fee simple title to the
displacement dwelling. If such assistance is not sufficient to buy a
replacement dwelling, the Agency may provide additional purchase
assistance or rental assistance.
Section 24.404(c) Methods of providing comparable replacement
housing. This Subpart emphasizes the use of cost effective means of
providing comparable replacement housing. The term ``reasonable
cost'' is used to highlight the fact that while innovative means to
provide housing are encouraged, they should be cost-effective.
Section 24.404(c)(2) permits the use of last resort housing, in
special cases, which may involve variations from the usual methods
of obtaining comparability. However, such variation should never
result in a lowering of housing standards nor should it ever result
in a lower quality of living style for the displaced person. The
physical characteristics of the comparable replacement dwelling may
be dissimilar to those of the displacement dwelling but they may
never be inferior.
[[Page 70384]]
One example might be the use of a new mobile home to replace a
very substandard conventional dwelling in an area where comparable
conventional dwellings are not available.
Another example could be the use of a superior, but smaller,
decent, safe and sanitary dwelling to replace a large, old
substandard dwelling, only a portion of which is being used as
living quarters by the occupants and no other large comparable
dwellings are available in the area.
Appendix B to Part 24--Statistical Report Form
This Appendix sets forth the statistical information collected
from Agencies in accordance with Sec. 24.9(c).
General
1. Report coverage. This report covers all relocation and real
property acquisition activities under a Federal or a federally-
assisted project or program subject to the provisions of the Uniform
Relocation Assistance and Real Property Acquisition Policies Act of
1970, as amended. If the exact numbers are not easily available, an
Agency may provide what it believes to be a reasonable estimate.
2. Report period. Activities shall be reported on a Federal
fiscal year basis, i.e., October 1 through September 30.
3. Where and when to submit report. Submit a copy of this report
to the lead Agency as soon as possible after September 30, but not
later than November 15. Lead Agency address: Federal Highway
Administration, Office of Real Estate Services (HEPR), Room 3221,
400 7th Street SW., Washington, DC 20590.
4. How to report relocation payments. The full amount of a
relocation payment shall be reported as if disbursed in the year
during which the claim was approved, regardless of whether the
payment is to be paid in installments.
5. How to report dollar amounts. Round off all money entries in
Parts of this section A, B and C to the nearest dollar.
6. Regulatory references. The references in Parts A, B, C and D
of this section indicate the subpart of the regulations pertaining
to the requested information.
Part A. Real Property Acquisition Under the Uniform Act
Line 1. Report all parcels acquired during the report year where
title or possession was vested in the Agency during the reporting
period. The parcel count reported should relate to ownerships and
not to the number of parcels of different property interests (e.g.,
fee, perpetual easement, temporary easement, etc.) that may have
been part of an acquisition from one owner. For example, an
acquisition from a property that includes a fee simple parcel, a
perpetual easement parcel, and a temporary easement parcel should be
reported as 1 parcel not 3 parcels. (Include parcels acquired
without Federal financial assistance, if there was or will be
Federal financial assistance in other phases of the project or
program.)
Line 2. Report the number of parcels reported on Line 1 that
were acquired by condemnation. Include those parcels where
compensation for the property was paid, deposited in court, or
otherwise made available to a property owner pursuant to applicable
law in order to vest title or possession in the Agency through
condemnation authority.
Line 3. Report the number of parcels in Line 1 acquired through
administrative settlement where the purchase price for the property
exceeded the amount offered as just compensation and efforts to
negotiate an agreement at that amount have failed.
Line 4. Report the total of the amounts paid, deposited in
court, or otherwise made available to a property owner pursuant to
applicable law in order to vest title or possession in the Agency in
Line 1.
Part B. Residential Relocation Under the Uniform Act
Line 5. Report the number of households who were permanently
displaced during the fiscal year by project or program activities
and moved to their replacement dwelling. The term ``households''
includes all families and individuals. A family shall be reported as
``one'' household, not by the number of people in the family unit.
Line 6. Report the total amount paid for residential moving
expenses (actual expense and fixed payment).
Line 7. Report the total amount paid for residential replacement
housing payments including payments for replacement housing of last
resort provided pursuant to Sec. 24.404 of this part.
Line 8. Report the number of households in Line 5 who were
permanently displaced during the fiscal year by project or program
activities and moved to their replacement dwelling as part of last
resort housing assistance.
Line 9. Report the number of tenant households in Line 5 who
were permanently displaced during the fiscal year by project or
program activities, and who purchased and moved to their replacement
dwelling using a down payment assistance payment under this part.
Line 10. Report the total sum costs of residential relocation
expenses and payments (excluding Agency administrative expenses) in
Lines 6 and 7.
Part C. Nonresidential Relocation Under the Uniform Act
Line 11. Report the number of businesses, nonprofit
organizations, and farms who were permanently displaced during the
fiscal year by project or program activities and moved to their
replacement location. This includes businesses, nonprofit
organizations, and farms, that upon displacement, discontinued
operations.
Line 12. Report the total amount paid for nonresidential moving
expenses (actual expense and fixed payment.)
Line 13. Report the total amount paid for nonresidential
reestablishment expenses.
Line 14. Report the total sum costs of nonresidential relocation
expenses and payments (excluding Agency administrative expenses) in
Lines 12 and 13.
Part D. Relocation Appeals
Line 15. Report the total number of relocation appeals filed
during the fiscal year by aggrieved persons (residential and
nonresidential).
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[GRAPHIC] [TIFF OMITTED] TP17DE03.000
[FR Doc. 03-30804 Filed 12-16-03; 8:45 am]
BILLING CODE 4910-22-C