[Federal Register Volume 84, Number 243 (Wednesday, December 18, 2019)]
[Proposed Rules]
[Pages 69466-69521]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-25558]



[[Page 69465]]

Vol. 84

Wednesday,

No. 243

December 18, 2019

Part II





Department of Transportation





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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. 84 , No. 243 / Wednesday, December 18, 2019 / 
Proposed Rules  

[[Page 69466]]


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DEPARTMENT OF TRANSPORTATION

Office of the Secretary

49 CFR Part 24

[FHWA Docket No. FHWA-2018-0039]
RIN 2125-AF79


Uniform Relocation Assistance and Real Property Acquisition for 
Federal and Federally Assisted Programs

AGENCY: Federal Highway Administration (FHWA), U.S. Department of 
Transportation (DOT).

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: The FHWA is proposing to amend its Uniform Relocation 
Assistance and Real Property Acquisition Policies Act of 1970 (Uniform 
Act) regulations. The revisions are prompted by enactment of the Moving 
Ahead for Progress in the 21st Century Act (MAP-21), which increases 
statutory relocation benefits and reduces length of occupancy 
requirements. This proposal is intended to update existing regulations 
on the use of those amendments. The FHWA is also proposing to update 
the Uniform Act regulations to reflect the Agency's experience with the 
Federal-aid highway program since the last comprehensive rulemaking for 
the part, which occurred in 2005. The updates include streamlining 
processes to better meet current Uniform Act implementation needs and 
eliminating duplicative and outdated regulatory language.

DATES: Comments must be received by March 17, 2020. Late-filed comments 
will be considered to the extent practicable.

ADDRESSES: To ensure that you do not duplicate your docket submissions, 
please submit them by only one of the following means:
     Federal eRulemaking Portal: Go to http://www.regulations.gov and follow the online instructions for submitting 
comments.
     Mail: Docket Management Facility, U.S. Department of 
Transportation, 1200 New Jersey Ave. SE, W12-140, Washington, DC 20590.
     Hand Delivery: West Building Ground Floor, Room W12-140, 
1200 New Jersey Ave. SE, Washington, DC 20590, between 9 a.m. and 5 
p.m., Monday through Friday, except Federal holidays. The telephone 
number is (202) 366-9329.
     Instructions: You must include the Agency name and docket 
number or the Regulatory Identification Number (RIN) for the rulemaking 
at the beginning of your comments. All comments received will be posted 
without change to http://www.regulations.gov, including any personal 
information provided.

FOR FURTHER INFORMATION CONTACT: Arnold Feldman, Office of Real Estate 
Services, (202) 366-2028, email address: [email protected]; or 
David Sett, Office of the Chief Counsel (HCC), (404) 562-3676, email 
address: [email protected]; Federal Highway Administration, 1200 New 
Jersey Avenue SE, Washington, DC 20590. Office hours are from 7:30 a.m. 
to 5:00 p.m., e.t., Monday through Friday, except Federal holidays.

SUPPLEMENTARY INFORMATION: 

Electronic Access and Filing

    This document and all comments received may be viewed online 
through the Federal eRulemaking portal at http://www.regulations.gov. 
The website is available 24 hours each day, 365 days each year. An 
electronic copy of this document may also be downloaded by accessing 
the Office of the Federal Register's home page at: https://www.federalregister.gov.

Table of Contents for Supplementary Information

I. Executive Summary
II. Background
III. Section-By-Section Discussion of the Proposals

I. Executive Summary

    The Uniform Relocation Assistance and Real Property Acquisition 
Policies Act of 1970, as amended, 42 U.S.C. 4601 et seq. (Uniform Act) 
provides important protections and assistance for people affected by 
federally funded projects. Congress enacted this law to ensure that 
people whose real property is acquired, or who move as a result of 
projects receiving Federal funds, are treated fairly and equitably and 
receive just compensation for, and assistance in moving from, the 
property they occupy. The governmentwide regulation implementing the 
Uniform Act is title 49 CFR part 24.
    The Surface Transportation and Uniform Relocation Assistance Act 
(STURAA) (Pub. L. 100-17) of 1987 designated the U.S. Department of 
Transportation (DOT) as the Federal Lead Agency (Lead Agency) for the 
Uniform Act. Duties of the Lead Agency include developing, issuing, and 
maintaining the governmentwide regulation, providing assistance to 
other Federal Agencies, and reporting to Congress on Uniform Act 
implementation issues. The DOT has delegated these responsibilities to 
the FHWA at 49 CFR 1.85(d)(7).
    Acting as Lead Agency, FHWA is proposing to amend and update 49 CFR 
part 24, which would affect the land acquisition and displacement 
activities of all Federal Agencies subject to the Uniform Act. The 
proposed changes to this regulation are necessitated in part by Section 
1521 of the MAP-21 (Pub. L. 112-141, July 6, 2012). Section 1521 
included increases in benefit levels for displaced persons, authority 
to develop a regulatory mechanism to consider and implement future 
adjustments to those benefit levels, the requirement for an annual 
report on governmentwide real property acquisitions subject to the 
Uniform Act, and provisions for the funding of Lead Agency services. In 
addition to these required changes, FHWA proposes to amend the 
regulations to clarify existing requirements for implementing the 
Uniform Act, meet modern needs, and improve the Agencies' service to 
individuals and businesses affected by Federal or federally assisted 
projects. The proposed changes would also reduce the paperwork and 
administrative burdens of Government regulations on Agencies subject to 
the Uniform Act.
    The costs of the proposed rule for all Uniform Act Agencies are 
estimated to be minor: $1.8 million when discounted at 7 percent and 
$2.0 million when discounted at 3 percent. The 10-year annualized costs 
are estimated to be: $255,000 per year when discounted at 7 percent and 
$230,000 per year when discounted at 3 percent. Therefore, the costs 
associated with this rule are de minimis. Moreover, these minor costs 
should be fully offset, if not outweighed, by cost savings resulting 
from new flexibilities and streamlining contained in this proposal. 
These cost savings are not quantifiable.
    The larger impact of this rule is in the form of transfers from the 
government to property owners whose real estate is acquired for Federal 
projects. The estimated amount of transfers resulting from this rule 
are $115 million when discounted at 7 percent and $146 million when 
discounted at 3 percent. This rule can therefore be thought of as 
predominantly a transfer rule, as the estimated costs are significantly 
smaller than the estimated transfers. The FHWA was the only agency that 
provided data upon which to base estimates of the transfers. Therefore, 
the magnitude of the change in transfers for all Federal Agencies may 
be larger than is reported here. The Regulatory Impact Analysis for 
this rulemaking contains further breakdown of costs associated with

[[Page 69467]]

FHWA's program. Other Federal Agencies may have additional regulatory 
or administrative updates specific to their programs as a result of 
this rulemaking.
    The benefits of the proposed rule primarily relate to improved 
equity and fairness to entities that are displaced from their 
properties or that move as a result of projects receiving Federal 
funds. For example, the proposed rule raises the statutory maximums for 
payments to displaced entities to assist with the reestablishment of 
the business, farm, or nonprofit organization. There is strong evidence 
that entities experience reestablishment costs well above the current 
maximum amount. Raising the maximum payment levels will compensate 
those entities more fairly and equitably for the negative impacts they 
experience as a result of a Federal or federally assisted project. 
However, the fairness and equity benefits of the proposed rule cannot 
be definitively quantified or monetized. The higher level of payments 
may also contribute to more entities being able to successfully 
reestablish after displacement.

Background

    The FHWA last updated 49 CFR part 24 in 2005. Since publication of 
the 2005 rule, FHWA has undertaken a comprehensive effort to identify 
potential opportunities for improving implementation of the Uniform 
Act. The FHWA initiatives have included research on the need for 
regulatory and statutory change to the Uniform Act; co-sponsorship of 
national symposiums on Uniform Act implementation issues; 
implementation of pilot projects designed to determine the effect of 
changes in certain Uniform Act requirements and procedures; and an 
examination of the experiences of several State departments of 
transportation (State DOT) in providing payments required by State law 
that supplemented Uniform Act benefits. These activities confirmed that 
there are a number of enhancements that could be made to clarify 
existing requirements, reduce administrative burdens, and improve the 
Government's service to individuals and businesses affected by Federal 
or federally assisted projects and programs.
    The Uniform Act and the common rule govern the relocation and land 
acquisition programs of all Federal Agencies. Those Federal 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
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
Department of Homeland Security
    44 CFR part 25

    The Uniform Act applies to all acquisitions of real property or 
displacements of persons resulting from Federal or federally assisted 
programs or projects; the Uniform Act's application is not affected by 
the absence of a cross reference to 49 CFR part 24 in an Agency's 
regulations. Further, Federal or federally assisted activities 
involving land acquisition or displacement, undertaken by a newly 
constituted Federal Agency, would be covered by the Uniform Act.
    After the publication of the 49 CFR part 24 final rule, FHWA began 
a process to identify additional needs for regulatory updates and 
elicit input from Federal stakeholders and conducted research projects, 
which resulted in many of the regulatory changes proposed here. The 
primary focus of the various efforts was to identify opportunities to 
streamline processes to better meet current Uniform Act implementation 
needs and eliminate duplicative and outdated regulatory language in 
that rule. Beginning in 2012, and culminating in 2018, FHWA held 
working group meetings with representatives of the Federal Agencies 
subject to the Uniform Act. The meetings included a section-by-section 
review of the regulation, consideration of comments received during the 
2005 rulemaking process, review of listening session comments, and 
consideration of research findings. Contributions from working group 
members were based on their experiences implementing the rule and 
feedback they had received from their partners and customers. The early 
review by the working group led to a compilation of potential changes 
to the rule. The FHWA considered the group's recommendations and 
proposed changes for each of the regulation's subparts and developed an 
initial draft rulemaking. Over a series of several working group 
meetings, the draft was refined and revised based on proposed edits and 
comments of the working group. When the working group meetings 
concluded, FHWA worked internally to finalize the draft rulemaking and 
continued to share drafts and receive additional comments from the 
Federal Agencies.
    This rulemaking also considers comments received from two DOT 
Federal Register documents requesting public comments and 
recommendations for evaluating existing regulations. The DOT published 
these documents on June 8, 2017 (82 FR 26734) and October 2, 2017 (82 
FR 45750). The FHWA received several comments requesting streamlining 
and updates of this rule. The NPRM is responsive to comments received 
through the DOT Federal Register documents and deregulatory efforts to 
update regulations and streamline processes.

Federal Agency Reporting Requirement

    The Lead Agency convened a separate working group of Federal 
Agencies to discuss the reporting requirements contained in Section 
1521(d) of MAP-21. Federal Agencies that are subject to the Uniform Act 
and have programs or projects requiring the acquisition of real 
property or causing a displacement from real property must provide the 
Lead Agency an annual summary report describing activities conducted by 
the Federal Agency.
    This group discussed the new reporting requirements and developed a 
proposed template for the annual report. Each Federal Agency 
participant was given an opportunity to review and comment on draft 
versions of a proposed annual Agency report template. The proposed 
annual report template in appendix B of this NPRM is based on the 
feedback FHWA received from this group. The FHWA believes that the 
proposed report template provides Federal Agencies with a streamlined 
reporting format that balances the need to provide Federal Agencies 
with appropriate time to develop necessary reporting systems with the 
need to compile this information into a meaningful report. The FHWA 
understands that developing a data collection mechanism and system may 
take Federal Agencies several

[[Page 69468]]

years. In the interim Agencies may elect to provide an annual narrative 
summary report instead of the statistical report in appendix B.

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 Agencies are encouraged to comment on this NPRM. Comments from 
interested State and local governments are particularly requested.

Subpart A--General

Section 24.2 Definitions and acronyms

    In response to comments and questions from Federal and State 
partners, FHWA proposes to make additions and modifications to certain 
definitions and acronyms in order to provide clarification. The FHWA 
proposes several minor corrections, including renumbering definitions 
and acronyms and organizing them alphabetically. In addition, FHWA 
proposes updating appendix A references to reflect the proposed 
renumbering and alphabetizing of definitions.

Section 24.2(a) Definitions

Agency
    Throughout this regulation, references are made to those who are 
carrying out real property acquisition and relocation assistance, which 
are subject to Uniform Act requirements. The current regulations use a 
combination of definitions--Agency, Acquiring Agency, and Displacing 
Agency--to describe Uniform Act applicability to those parties. The 
FHWA is proposing to simplify these references by revising the current 
definition of Agency so it can be used throughout the proposed 
regulation to describe all parties carrying out real property 
acquisition and relocation assistance which are subject to Uniform Act 
requirements. The FHWA is also proposing to delete definitions of 
Acquiring Agency and Displacing Agency as the singular definition of 
Agency will be used throughout the regulation to describe responsible 
parties and Uniform Act applicability.
Comparable Replacement Dwelling
    The MAP-21 amended Section 203(a)(1) of the Uniform Act by reducing 
the number of days that a person must have occupied a displacement 
dwelling in order to be eligible for a replacement housing payment from 
180 to 90 days. The FHWA proposes to modify this definition 
accordingly, and in each place it appears throughout the regulation. 
Many readers of this NPRM will notice that the length of time a valid 
lien (mortgage) must be in place to qualify for an increased mortgage 
interest costs payment remains 180 days prior to the initiation of 
negotiations. The MAP-21 did not change this requirement. The FHWA also 
proposes to combine portions of the appendix for this definition with 
the regulatory text with no change in requirement or meaning resulting 
from this reorganization.
Contribute Materially
    The FHWA has received a number of questions regarding the correct 
interpretation of this definition, especially in regard to displaced 
businesses that have not been in operation for 2 full years prior to 
displacement. Practitioners have questioned whether this definition 
means a business must be in operation for 2 full taxable years prior to 
displacement in order to be eligible for the payment. They have also 
questioned how to correctly calculate a prorated fixed payment if a 
business were in operation for less than 2 full years. While there is 
no proposed change to this definition, FHWA is reiterating that a 
displaced business may be eligible to receive payment for a business 
that is open for less than 2 full years. The FHWA believes that this 
definition and the regulations at Sec.  24.305(a)(6) and (e), as 
currently written, give clear direction for calculating the prorated 
payment and provide broad latitude for equitable treatment. The FHWA 
proposes a clarification of appendix A, Section 24.305(e), to provide a 
more detailed discussion about calculating a benefit and, if necessary, 
prorating the average annual net earnings of a business or farm 
operation. The proposed clarifications include sample calculations for 
businesses with less than 1 year in operation, more than 1 year but not 
2 full years in operation, and seasonally operated businesses.
Decent, Safe, and Sanitary Dwelling
    The Uniform Act requires that displaced persons must have decent, 
safe, and sanitary (DSS) housing made available to them. The FHWA has 
received a number of questions about which DSS requirements to apply, 
especially in cases where local housing codes are more stringent than 
DSS requirements. The FHWA proposes to revise the definition of ``DSS 
dwelling'' by adding language which states that an Agency must use the 
more stringent of either the local housing code, the regulations, or 
the Agency's regulation or written policy. The purpose of this change 
is to clarify that the requirements in the definition of DSS in Sec.  
24.2(a) are minimum requirements. The FHWA also proposes to strike the 
portion of this definition which states that a Federal funding Agency 
with good cause could waive those regulatory DSS requirements which 
were not met by local code. The FHWA believes this portion of the 
regulation is unnecessary because Federal Agencies retain such 
authority under Sec.  24.7. The FHWA proposes to move a portion of the 
previous appendix from this item to the regulation to streamline the 
new rule. The proposed new organization does not change requirements or 
create new requirements.
    In addition, the definition of DSS dwelling in Sec.  24.2(a) uses 
the term ``housekeeping dwelling.'' However, several Federal Agencies 
have noted that housekeeping dwelling is undefined in the regulation 
and open to varying interpretations. The FHWA agrees that the lack of a 
definition for the term is contrary to the Uniform Act's goal of 
providing uniform and equitable treatment of persons displaced. The 
FHWA proposes to remove the ``housekeeping dwelling'' term from the 
regulation. The FHWA also proposes changes to this definition to 
clarify that the requirement that a kitchen be part of a comparable 
replacement dwelling is dependent on local housing code standards for 
residential occupancy. In parallel, FHWA proposes a new appendix A 
discussion to further clarify that FHWA recommends, as a good practice, 
that even in instances where local housing codes do not require a 
kitchen, Agencies select a comparable replacement dwelling that has a 
kitchen.
Displaced Person
    At the request of Federal Agencies that have programs or projects 
that do not require the acquisition of real property, but instead may 
require the rehabilitation or demolition of real property, FHWA 
proposes adding the terms ``rehabilitate or demolish'' to the 
definition of a displaced person. The purpose of this addition is to 
clarify that the term displaced persons includes those required to 
move, or move their personal property, from the real property as a 
result of a written notice of intent to rehabilitate or demolish, even 
if the real property is not being acquired.
    The term displaced person is used in the Uniform Act to describe 
persons that

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move because of a Federal or federally assisted project or program. 
``Persons not displaced'' is a term used to describe persons who do not 
qualify for Uniform Act benefits. Persons not displaced generally 
include those who will be temporarily relocated. The FHWA proposes to 
reorganize the definition to specifically address persons who are 
temporarily displaced and is proposing a new addition, Sec.  24.202(a), 
to describe the required assistance and services that must be made 
available for persons temporarily displaced.
    The FHWA also proposes to eliminate the use of the term 
``guidelines'' in this definition. Several Federal Agencies have noted 
that their recipients often have questions regarding the use and 
meaning of this term despite the explanation in the appendix. Federal 
Agencies have also noted that they do not have ``guidelines,'' but 
instead have relevant policies. The FHWA proposes to clarify the 
definition of persons not displaced by deleting ``guidelines'' and 
replacing it with ``policy or guidance.'' The FHWA believes that the 
terms ``policy or guidance'' more accurately reflect how Federal 
Agencies provide programmatic direction to their recipients.
    One Federal Agency requested an addition to this regulation that 
would require that a non-displacement relocation notice be provided 
which clearly states that a person will not be displaced by a program 
or project. It is FHWA's opinion that the current definition of persons 
displaced or not displaced already accomplishes this objective, that 
such a notice is generally not necessary for a majority of the Federal 
Agencies' programs, and that the clarification should not be included 
in the regulation. However, such a notice can be necessitated by 
Federal Agency policy. Based on the discussions in the working groups, 
FHWA also believes that Federal Agencies can and should ensure that 
informative materials and advisory services provide clear information 
on how to determine when someone is or is not displaced. Agencies may 
develop guidance to address questions specific to their programs to 
better direct those carrying out relocation assistance for their 
programs and projects.
    The FHWA proposes adding a reference to a new definition of 
``Federal down payment assistance.'' In addition to the new reference, 
FHWA proposes removing the existing example of American Dream 
Downpayment Initiative (ADDI) authorized by section 102 of the American 
Dream Downpayment Act (Pub. L. 108-186; codified at 42 U.S.C. 12821). 
The proposed removal would provide for a more general reference to 
similar programs. In some instances, a person may have Federal down 
payment assistance funds provided for the purpose of purchasing and 
occupying a dwelling. These funds are not Uniform Act benefits. 
Agencies providing persons with only such Federal down payment 
assistance funds are not Agencies causing displacement as defined by 
this regulation, and persons using those funds are not causing 
displacements as defined in this regulation. For example, a person 
using Federal down payment assistance to purchase a home that a tenant 
also occupies would not be causing displacement as defined by this 
regulation, and the tenant who would have to move as a result of the 
acquisition of the home would also not be a displaced person as defined 
by this regulation.
    The FHWA has received numerous questions in recent years about 
whether persons in occupancy at temporary, daily, or emergency shelters 
that are acquired are in fact displaced persons. Persons who are 
occupying a shelter that only allows overnight stays, requires the 
occupants to remove their personal property and themselves from the 
premises on a daily basis, and offers no guarantee of reentry in the 
evening typically would not meet the definition of displaced persons. 
The FHWA believes that each relocation is unique and requires a fact-
based determination in each instance. Those acquiring a shelter should 
consider factors including, but not limited to, whether the shelter has 
specific rules and requirements as to who can occupy or use the shelter 
and whether prolonged and continuous occupancy is allowed.
    In order to clarify when a person would not be displaced in these 
scenarios, FHWA proposes three changes to this definition. First, FHWA 
proposes to add ``occupants of temporary, daily or emergency shelters'' 
to the definition of ``persons not displaced.'' Second, FHWA also 
recommends that, at a minimum, all occupants should receive advisory 
assistance at initiation of negotiations. Finally, FHWA proposes adding 
a new appendix item for this definition that provides a discussion of 
FHWA's view of determining occupancy and eligibility for those who 
occupy a shelter. It offers a discussion of certain shelter occupants 
who may be considered displaced persons due to extenuating reasons, 
such as employment by the shelter. The FHWA believes that acquisition 
of a shelter and/or displacement from a shelter creates many unique 
challenges and that Agencies should address potential acquisition of 
shelters early in the project development process and in the project 
environmental review process. Doing so can facilitate the 
identification of required environmental justice mitigation measures 
and ensure that all available assistance is provided to shelter 
occupants.
    The FHWA also proposes to add a definition of ``temporary, daily, 
or emergency shelter (shelter)'' at Sec.  24.2(a) to further assist 
Agencies in making a determination of whether a person residing in a 
shelter can be considered displaced.
Dwelling
    The FHWA proposes to delete the term ``non-housekeeping unit'' from 
this definition as it is a term that is not defined elsewhere in the 
regulation and will not enhance an Agency's ability to implement the 
regulation. The FHWA also proposes to modify the definition of ``other 
residential units'' in this definition to include clarification that 
residential units that may seem to be non-standard dwellings, but that 
meet minimum Uniform Act requirements and local codes for residential 
occupancy as a dwelling, such as motel rooms, must be considered 
``dwellings.''
Federal Down Payment Assistance
    Some Federal programs provide some financial assistance to 
homebuyers to purchase a dwelling. These programs provide funds to an 
individual who will be buying a dwelling through an arm's length market 
transaction. The FHWA has responded to several questions about whether 
the use of Federal down payment assistance in purchasing a dwelling 
would trigger Uniform Act requirements. The FHWA is proposing to add a 
new definition of Federal down payment assistance to clarify that 
individuals using only Federal down payment assistance to purchase a 
home as their residence would not be considered users of Federal 
financial assistance for the Uniform Act as it is defined in Sec.  
24.2(a). To supplement this proposed change, this proposed rule also 
includes a new appendix item that provides further clarification and 
explanation on the use of Federal down payment assistance and Uniform 
Act applicability.
Federal Financial Assistance
    Federal down payment assistance provided to a private individual to 
purchase a residence is Federal financial assistance, as defined by the 
Uniform Act. It results in an acquisition-

[[Page 69470]]

based displacement under the Uniform Act, however, only when the 
purpose of the acquisition is to advance a Federal project or program 
designed to benefit the public as a whole, such as highways, hospitals, 
and other public works projects. The FHWA believes that the purchase of 
a dwelling using Federal down payment assistance, standing alone, does 
not constitute an acquisition as contemplated by the Uniform Act.
    Therefore, those who may relocate as a result of an acquisition 
funded in part with down payment assistance are not displaced persons 
within the meaning of the Uniform Act. The Federal Government's 
interest is only that the property would serve as the purchaser's 
dwelling and that it meets general criteria including those related to 
habitability. The lack of a conscious governmental decision requiring 
that a selected or specific property be acquired to advance a program 
or project demonstrates that the nature of the acquisition utilizing 
down payment assistance funds is nothing more than a person purchasing 
a dwelling with limited Federal financial assistance.
    The FHWA also proposes to add a reference to low income housing tax 
credit (LIHTC) to this definition. Over the last several years, the 
FHWA has received numerous questions about the use of LIHTCs and 
whether they are Federal financial assistance as defined in this rule. 
The LIHTC is described by the Office of the Comptroller of the Currency 
as a program ``. . . established as part of the Tax Reform Act of 1986 
and is commonly referred to as section 42, the applicable section of 
the Internal Revenue Code. The LIHTC program provides tax incentives to 
encourage individual and corporate investors to invest in the 
development, acquisition, and rehabilitation of affordable rental 
housing. The LIHTC is an indirect Federal subsidy that finances low-
income housing. This allows investors to claim tax credits on their 
Federal income tax returns. The tax credit is calculated as a 
percentage of costs incurred in developing the affordable housing 
property, and is claimed annually over a 10-year period. Some investors 
may garner additional tax benefits by making LIHTC investments.'' \1\ 
Given the nature of these tax credits and because they are not a grant, 
loan, or contribution provided by the United States, FHWA does not 
believe that LIHTC is Federal financial assistance as it is defined in 
Sec.  24.2(a) and therefore is not subject to Uniform Act requirements.
---------------------------------------------------------------------------

    \1\ https://www.occ.gov/topics/community-affairs/publications/insights/insights-low-income-housing-tax-credits.pdf.
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Recipient
    The proposed rule would add a new definition for the term 
``recipient.'' The term would mean the party that is the direct 
recipient of Federal program funds, is not a Federal Agency and is 
accountable to the Federal funding Agency for the use of the funds and 
for compliance with applicable Federal requirements. This NPRM proposes 
to emphasize that the recipient remains responsible for ensuring 
compliance with Federal requirements when the recipient provides funds 
to a subrecipient.
Home Equity Conversion Mortgage
    A home equity conversion mortgage (HECM) is the Federal Housing 
Administration's mortgage program that enables seniors to withdraw some 
of the equity in their homes. The HECMs are commonly referred to as 
reverse mortgages. Agencies can face unique challenges when displacing 
a homeowner whose dwelling has a HECM.
    The FHWA proposes to add a definition for HECM to the regulation 
given that these mortgages are being encountered more frequently on 
federally-funded projects. The definition identifies a HECM as a valid 
lien and describes common terms and conditions of the HECM. To 
supplement the proposed definition, FHWA proposes to add a new 
provision at Sec.  24.401(e), which would clarify how HECM expenses are 
an eligible replacement housing payment incidental expense and a new 
section to appendix A, Section 24.401(e), with examples of types of 
HECMs and sample calculations, both of which will be discussed later in 
this NPRM.
Household Income
    Agencies have pointed out an inconsistency between the definition 
of ``household income'' and the corresponding appendix text. The 
regulation can be incorrectly read to state that a fulltime student 
must be under the age of 18. The FHWA proposes to clarify that income 
from ``dependent children under 18 or fulltime students'' is excluded 
from the household income calculation. For clarification, FHWA also 
proposes to adopt the standard definition of a fulltime student in 
accordance with the requirements set by the Working Families Tax Relief 
Act of 2004, Public Law 108-311. Under this regulation's revised 
definition, a fulltime student must be under the age of 24 and a 
fulltime student for at least 5 months of the year.
Initiation of Negotiations
    At the request of Federal Agencies that have programs or projects 
that require rehabilitation or demolition of real property but do not 
necessarily require the acquisition of the real property, FHWA proposes 
to add ``rehabilitate and demolish'' real property to the definition. 
The FHWA agrees that some Federal Agency programs that rehabilitate or 
demolish establish eligibility criteria on a basis other than the 
initiation of negotiations. In most instances, a displaced person's 
eligibility for benefits is established at the initiation of 
negotiations. However, in some instances a person's eligibility may be 
established prior to the initiation of negotiations. This addition will 
serve to clarify that when persons move, or move their personal 
property from the real property as a result of a written notice of 
intent to rehabilitate or demolish, or move after that notice but 
before delivery of the initial written offer, initiation of 
negotiations means the actual move of the person from the property. 
These changes also allow Agencies to tailor their notices and more 
clearly describe when a displaced person may be eligible for benefits 
while ensuring that Federal funds are used in a manner that prevents 
waste, fraud and abuse.
    The Federal Agencies that often acquire property as voluntary 
acquisitions, as defined in this regulation, have noted the current 
regulation provides that tenants are immediately eligible for 
relocation assistance at the initiation of negotiations for a property 
that the Agency may not ultimately be able to acquire through a 
voluntary and amicable agreement. Furthermore, in many cases, until an 
Agency approves or administratively accepts a conditional sale or 
purchase agreement, there is no obligation on the Agency's part to 
consummate or finalize a sale.
    To address these concerns, FHWA proposes to modify the definition 
of ``initiation of negotiations'' by changing the timing for 
establishing the eligibility of tenants affected by an option to 
purchase, conditional sales, or purchase agreement as the result of the 
voluntary acquisition of real property described in Sec.  24.101(b)(1)-
(5). Under the current rule, tenants are eligible for relocation 
assistance at the initiation of negotiations. The new rule provides, 
when an option is being acquired, eligibility of tenants for relocation 
assistance occurs when there is a binding agreement for sale between 
the

[[Page 69471]]

buyer and seller. An option to purchase, conditional sale, or purchase 
agreement is not considered a binding agreement to purchase real 
property. See appendix A, Section 24.2(a) Initiation of negotiations, 
Tenants, (iv). The use of the term ``binding'' in the context of this 
regulation refers to an agreement in which both parties have formally 
accepted the conditions contained in the agreement, have documented 
their agreement in writing, and with their signature acknowledged their 
acceptance. It is a legally enforceable document in which the property 
owner agrees to sell certain property rights necessary for a project 
and the Agency agrees to that purchase for a specified consideration.
    Because State laws may require differing elements in an agreement 
in order to make it a legally binding contract under State law each 
recipient or displacing agency should consult with their legal counsel 
and develop required documents and documentation necessary to make a 
sufficiency determination under State law.
    The FHWA also proposes including a similar change to the discussion 
in the appendix that describes the timing of eligibility for Uniform 
Act assistance, or trigger date, for a tenant. The FHWA believes that 
this change, from initial offer to acquire to acceptance of a binding 
written agreement, will not reduce benefits or assistance to tenants 
because it is coupled with the requirements for a clearly written 
notification to the tenant of the process being followed, an 
explanation of the trigger date of their eligibility, and for providing 
a notification that negotiations have failed to result in a binding 
agreement.
Owner's Representative
    Several Federal Agencies believe that the current regulation 
requires that notifications and documents be given only to the property 
owner and thus is unnecessarily restrictive. The FHWA agrees that such 
a requirement, or interpretation, is too restrictive and believes that 
allowing either an owner or a designated representative to receive a 
written offer in no way diminishes a property owner's rights. The FHWA 
proposes to add a new definition for owner's designated representative.
Small Business
    The FHWA has often been asked for guidance on the question of 
whether sites occupied solely by outdoor advertising signs, displays, 
or devices qualify for benefits under Sec. Sec.  24.303 and 24.304.
    The FHWA proposes to clarify that sites occupied solely by outdoor 
advertising signs, displays, or devices do not qualify for benefits 
under Sec.  24.303 or Sec.  24.304, by adding a reference to Sec.  
24.303 in the last sentence of the definition. The FHWA believes that 
outdoor advertising signs which are eligible for relocation benefits 
under this part are to be treated as personal property and, as such, 
would not be eligible for benefits under Sec.  24.303. The FHWA 
continues to believe that Sec.  24.301 provides owners of sites 
occupied solely by outdoor advertising signs, displays, or devices with 
sufficient allowances for the relocation of their personal property.
Subrecipient
    This NPRM proposes to define ``subrecipient'' as a governmental 
Agency or other legal entity that enters into an agreement with a 
recipient to carry out part or all of the activity funded by Federal 
program grant funds.
    There are instances when recipients enter into subgrant agreements 
with cities, towns, and other governmental entities, collectively often 
referred to as ``local public Agencies'' or ``local transportation 
Agencies,'' under which those public Agencies administer projects and 
construct facilities. This NPRM makes a number of changes to emphasize 
that the recipient remains responsible for ensuring compliance with 
Federal funding Agency requirements when the recipient delegates 
project activities to subrecipients, including public Agencies.
Temporary, Daily, or Emergency Shelter
    The FHWA has responded to a number of questions about temporary, 
daily, or emergency shelters, and whether persons in occupancy at these 
shelters are displaced persons. The FHWA proposes to add a new 
definition of the term ``shelter.'' The definition of shelter clarifies 
that emergency, temporary, or daily shelters are typically intended as 
overnight, short term, short duration accommodation. Persons who are 
occupying a shelter that only allows overnight stays, requires the 
occupants to remove their personal property and themselves from the 
premises on a daily basis, and offers no guarantee of reentry in the 
evening, typically would not meet the definition of displaced persons.
    The FHWA believes that each relocation is unique and requires a 
fact-based determination in each instance. Those acquiring a shelter 
should consider factors including, but not limited to, whether the 
shelter has specific rules as to who can occupy or use the shelter and 
whether prolonged and continuous occupancy is allowed. Also, there may 
be certain shelter occupants who may be considered displaced persons 
due to extenuating reasons such as employment by the shelter.
Utility Facility
    The FHWA has received a number of questions regarding the 
interpretation of the phrase ``any transportation system'' as used in 
this definition. The common concern is that ``any transportation 
system'' can be viewed to mean a highway system or other similar 
transportation system. The FHWA believes that the current phrase can 
lead to an overly expansive view of what constitutes a utility facility 
for purposes of this regulation. The FHWA is proposing to replace the 
current definition of ``utility facility'' with the definition of 
``utility facility'' found at 23 CFR 645.207. The proposed new 
definition will address the questions raised by offering a clear and 
consistent definition, along with several examples of utilities.

Section 24.2(b) Acronyms

    The Bureau of Citizenship and Immigration Services (BCIS) has been 
renamed the U.S. Citizenship and Immigration Service (USCIS). The UA 
has been added as an acronym for the Uniform Relocation Assistance and 
Real Property Acquisition Policy of 1970. The FHWA proposes to make 
these changes in the acronym listing of this paragraph, remove numbers, 
and alphabetize the acronyms.

Section 24.5 Manner of Notices

    The current regulation requires that Agencies personally serve or 
send notices to property owners or occupants by certified or registered 
first-class mail, return receipt requested. The FHWA proposes providing 
additional flexibility in the types of notices that can be used to 
communicate with property owners. The first type of flexibility we are 
proposing is to allow trackable delivery and signed receipts via 
companies other than the United States Postal Service that provide the 
same function as certified mail with return receipts.
    The FHWA also believes that delivery of notices by digital or 
electronic means can provide Agencies and property owners with an 
optional communications method that can streamline the notice process 
while not reducing any benefits or protections to property owners. 
Delivery of notices by digital or electronic means must be done in a 
manner that will provide verification of delivery and receipt and

[[Page 69472]]

acceptance confirmation similar to the current standard of certified 
mail. The proposed regulation provides several minimum requirements 
that an Agency must follow if they choose to allow electronic notices 
and electronic signatures.
    The FHWA proposes to require that property owners or occupants must 
voluntarily elect to receive notices by electronic means. The FHWA 
continues to believe that there is no substitute for face-to-face 
meetings with property owners but also recognizes that for a variety of 
reasons face-to-face meetings may not be practical. Agencies may not 
determine in advance to use this proposed flexibility for all property 
owners on a project or program-wide basis. The acquisition of a 
person's real property and or displacement from their real property 
usually requires an Agency to make every effort to make personal 
contact.
    The FHWA proposes to add a new appendix item that further explains 
FHWA's position regarding when the use of electronic notifications may 
be appropriate and provides several examples of when it may and may not 
be a good option. The new appendix item describes additional safeguards 
that should be included as part of an Agency's process. It also 
reemphasizes that, should an owner or occupant elect not to receive 
offers and notices by electronic means, an Agency must accommodate that 
property owner or occupant by using certified first class mail, return 
receipt requested, or by personally serving notices. The FHWA is also 
proposing a new addition to this section, paragraph (d), which provides 
property owners with the flexibility to designate a representative to 
receive required notices and documents. This proposal requires that a 
designation of an owner's representative must be in writing and must 
identify any notices or documents that the designated representative is 
not authorized to receive. A properly designated property owner's 
representative would be able to receive required notices and 
information including acquisition and relocation information and/or the 
written offer of the property's fair market value on behalf of the 
owner.

Section 24.9(c) Recordkeeping and Reports

    Section 1521(d) of MAP-21 requires that each Federal Agency that 
has programs or projects requiring the acquisition of real property or 
causing a displacement from real property subject to the provisions of 
the Uniform Act provide an annual summary report to the Lead Agency 
that describes the activities conducted by the Federal Agency. The FHWA 
proposes to modify the reporting requirements in this paragraph 
accordingly by changing the first sentence requiring that a Federal 
Agency submit a report of its real property acquisition and 
displacement activities to the Federal Agency funding the project from 
``if required'' to ``as required.'' We also propose to delete the 
second sentence requiring the reports not more than every 3 years and 
unless the Federal Agency shows good cause for requiring the report. 
The last sentence in this paragraph is deleted and further discussion 
of reporting requirements has been added in the appendix.
    The FHWA proposes to add new language in this paragraph to detail 
the annual reporting requirements that Section 1521 of MAP-21 
introduced. The proposed paragraph will discuss the new annual 
reporting requirements for each Federal Agency subject to the Uniform 
Act. It includes a narrative on the overarching program and/or related 
activities, as well as specific program metrics, including the number 
of acquisitions, relocations, condemnations, total dollars spent, and 
use of housing of last resort. The report would be due by November 15th 
of each year.
    The FHWA also proposes to add a new appendix section explaining 
that FHWA realizes that not all Federal Agencies subject to this 
reporting requirement currently have the ability to collect all 
information requested on the reporting form. However, FHWA envisions 
that the Federal Agencies may elect to provide a narrative report 
focusing on their respective efforts to improve and enhance delivery of 
Uniform Act benefits and services. Narrative report information would 
include training offered, reviews conducted, or technical assistance 
provided to recipients.

Section 24.10(g) Determination and Notification After Appeal

    The FHWA proposes to revise the language in the last sentence of 
this paragraph to clarify that the determination on appeal is the 
Agency's final decision. The language on content and procedures for the 
written determination on appeal, including informing a displaced person 
of the right to judicial review of the final decision, is not 
substantively changed. The proposed changes are intended to more 
clearly describe the authorities and rights created by the appeals 
process and to more directly provide information on the process to 
follow should a determination on the appeal be desired.

Section 24.11 Adjustments of Payments

    The FHWA proposes to add a new section to the regulation to 
implement the new provision in MAP-21 at Section 1521(d)(2) which 
provides that if the head of the Lead Agency determines that the cost 
of living, inflation, or other factors indicate the relocation 
assistance benefits should be adjusted to meet the policy objectives of 
the Uniform Act, that the head of the Lead Agency may adjust: The 
amounts of relocation benefits for reestablishment expenses-
nonresidential moves; fixed payment for moving expenses-nonresidential 
moves; replacement housing payment for 90-day homeowner-occupants; and 
replacement housing payment for 90-day tenants and certain others.
    Prior to MAP-21, FHWA led research projects to examine whether 
inflation had an effect on relocation benefit levels. The research 
concluded that since publication of the final rule in 1989, the benefit 
levels were not able to meet the policy objectives of the Act due to 
inflation.
    The FHWA's research focused primarily on the use of indexes as a 
tool to evaluate inflation's effects on Uniform Act benefits. In 
considering the most appropriate indexes, several Consumer Price 
Indexes appeared to provide a suite of goods and services that are 
related to housing and other costs associated with displacement.
    The FHWA is proposing to evaluate inflation's effect on the 
benefits for reestablishment for nonresidential moves, fixed payment 
for non-residential moving expenses, replacement housing payments for 
90-day owners, and rental assistance payments for 90-day tenants and 
certain others by using the Consumer Price Index for All Urban 
Consumers (CPI-U) Seasonally Adjusted.\2\ Guidelines FHWA used in 
choosing this index:
---------------------------------------------------------------------------

    \2\ https://www.bls.gov/news.release/cpi.t01.htm.
---------------------------------------------------------------------------

    1. The CPI-U is a measure of the average change in consumer prices 
over time for a fixed market basket of goods and services, including 
food, clothing, shelter, fuels, transportation, and charges for medical 
and dental services and drugs. The all urban consumers group represents 
about 87 percent of the total U.S. population. It is based on the 
expenditures of almost all residents of urban or metropolitan areas, 
including professionals, the self-employed, the poor, the unemployed 
and retired persons as well as urban wage earners and clerical workers. 
Bureau of Labor

[[Page 69473]]

Statistics (BLS) publishes a CPI-U report monthly and releases an 
Annual Report at the end of each fiscal year.
    2. It is available on a monthly basis, free of charge and can be 
expected to be tabulated regularly into the future. The CPI-U is widely 
used by other Federal Agencies including FEMA and HUD.
    3. The CPI-U is used by other Federal Agencies for inflation 
adjustment indexing. The CPI-U is produced by the BLS and is subject to 
verification and oversight.
    Additional information on consumer price indexes can be found on 
the Bureau of Labor Statistics website.\3\ The FHWA is proposing that 
this determination of whether an increase in benefit amounts is 
necessary would be made no more frequently than every 5 years. If the 
FHWA determines that the cost of living, inflation, or other factors 
indicate the relocation assistance benefits should be adjusted to meet 
the policy objectives of the Uniform Act, FHWA will issue a Federal 
Register notice of that determination and the specific adjustments of 
the relocation assistance benefits that are being made. The FHWA 
believes Federal and State partners will benefit from several years of 
stable and predictable regulatory benefit amounts.
---------------------------------------------------------------------------

    \3\ https://www.bls.gov/cpi/.
---------------------------------------------------------------------------

    The FHWA proposes a new item in appendix A, Section 24.11, which 
provides a sample calculation showing how FHWA will determine whether 
future adjustments to these benefit amounts should be proposed. In 
addition to a temporal limit on adjustments, FHWA attempted to identify 
an inflationary impact threshold or other regulatory condition 
indicating when an adjustment should be proposed. The FHWA recognizes 
that prior to MAP-21, relocation benefit amounts had not been adjusted 
for several decades. The FHWA welcomes comments on use of the CPI-U 
Seasonally Adjusted Index, and suggestions on the inflationary impact 
threshold that would warrant adjustments to the maximum benefit 
amounts.

Subpart B--Real Property Acquisition

    The FHWA intends for the terms ``fair market value'' and ``market 
value,'' which may be more typical terminology in private transactions, 
to be synonymous in this regulation. In order to make this 
clarification, FHWA proposes to modify the appendix item for subpart B 
by deleting ``may be'' and inserting ``are'' to indicate that ``fair 
market value'' (as used throughout this subpart) and ``market value'' 
are the same.

Section 24.101(a)(2) Applicability of Acquisition Requirements

    Section 24.101(a)(2) currently includes the same reference twice, 
which may create confusion. The FHWA is proposing to modify this 
paragraph by deleting the first reference to 49 CFR 24.2(a) and by 
editing the second reference at the end of the paragraph to cross 
reference Sec.  24.2(a). The FHWA believes that making a single 
reference at the end of the paragraph to this definition accurately 
points readers to the requisite section and eliminates the need for 
redundant references in this paragraph.

Section 24.101(b)(1)(i) Applicability of Acquisition Requirements

    Some Federal Agencies reported that the terms ``site'' and 
``geographic area'' were close enough in meaning that they caused 
confusion in the second sentence. They stated that the term ``site'' 
did not accurately describe the type of project needs encountered in 
delivering their programs and recommended changing the term to 
property. The FHWA proposes to strike the term ``site(s)'' and insert 
``property or properties.'' The FHWA believes the proposed change 
accurately reflects the types of acquisitions that Agencies may make 
and this requirement's goal of ensuring that voluntary acquisitions are 
truly independent of site and corridor.
    The FHWA also proposes to revise the appendix item for this 
paragraph. A Federal Agency suggested that the appendix to this 
paragraph be changed to further define the term ``general geographic 
area.'' Some Federal Agencies expressed concern that the appendix 
definition was too restrictive for their programs or some projects. The 
FHWA reviewed the NPRM and final rule comments and was unable to 
determine why the term ``geographic area'' was inserted into the 
appendix during the 2005 rulemaking. That rulemaking stated that is was 
``not to be construed to be a small limited area.'' The FHWA proposes 
to delete that clause and insert a sentence that describes a ``general 
geographic area'' as any of several properties that are not necessarily 
contiguous or are not limited to a specific group of properties.

Section 24.101(b)(1)(iii)-(iv) and (b)(2)(i)-(ii) Applicability of 
Acquisition Requirements

    Several Federal Agencies believe that the current language of these 
paragraphs requiring that notification be given only to the property 
owner is unnecessarily restrictive. The FHWA agrees and believes that 
allowing either an owner or a designated representative to receive a 
written offer in no way diminishes a property owner's rights. The FHWA 
proposes to make minor revisions to the language of these parts by 
adding allowances for an owner's properly designated representative to 
be able to receive acquisition and relocation information and/or the 
written offer of the property's fair market value on behalf of the 
owner. The FHWA is proposing that such designation must be in writing.

Section 24.101(b)(2)(iii) Applicability of Acquisition Requirements

    Some Agencies possess the power of eminent domain but do not use it 
for specific projects. The FHWA has received questions about the 
interpretation of this paragraph from several Agencies. Some Agencies 
have interpreted this paragraph to mean that if an Agency possesses the 
power of eminent domain but will not use it on the project, the Agency 
would not be able to use the voluntary acquisition authority for its 
project or program. The FHWA proposes to clarify this paragraph's 
applicability by simplifying the language so it clearly states that if 
eminent domain will not be used, then an Agency may use the voluntary 
acquisition requirements provided by this section. The FHWA believes 
that whether an Agency has such authority is not the relevant issue in 
determining whether this section's requirements are being met. The 
relevant issue is that eminent domain may not be used as part of the 
offer and negotiation to acquire property needed for the project.
    Also, FHWA proposes adding language in appendix A that recognizes 
some Agencies may have an unanticipated need that may require use of 
eminent domain authority. The FHWA views the clear purpose of the 
provision as ensuring that voluntary acquisitions are not simply 
preludes to an eminent domain acquisition, should voluntary acquisition 
negotiations fail.
    The FHWA is proposing a new paragraph to allow the Federal funding 
Agency to permit acquisitions by eminent domain in extraordinary 
circumstances when negotiations were initially undertaken under the 
requirements for voluntary acquisitions. The FHWA further recognizes 
that property owners subjected to such acquisitions should be assured 
that they are being afforded all protections and eligibilities of this 
regulation. Therefore, FHWA is proposing that, should an Agency 
carrying out a project advanced as a voluntary acquisition find an

[[Page 69474]]

extraordinary instance requiring the use of eminent domain, it must 
request a waiver of regulations, under authority of Sec.  24.7 of this 
part, from the Federal Agency funding the project. This proposed 
addition is in response to requests from Agencies that often acquire 
property as voluntary acquisitions. The FHWA is interested in 
commenters' opinions on whether the use of a waiver of regulations 
should be required, whether criteria necessary for a waiver should be 
included in this regulation, what that criteria should include, and 
whether and how to define the exceptional circumstances under which 
eminent domain authority may be permitted under this section.

Section 24.101(d) Federally Assisted Projects

    The FHWA is proposing to add a new paragraph to respond to 
questions it has received about the applicability of Uniform Act 
requirements to properties that were acquired in advance of a 
federally-funded project. The FHWA recognizes that Agencies may acquire 
or own previously acquired properties for several reasons. This 
proposed change will clarify that if such a property were acquired with 
the intent of including it in a planned, anticipated, or designated 
federally-funded program or project, then the acquisition would be 
subject to the requirements in subparts B-F, as applicable. This 
proposed change would incorporate guidance that FHWA has included in 
its Frequently Asked Questions for 49 CFR part 24, see current question 
number five.\4\ This proposed change does not create a new requirement 
but is proposed to ensure that those Agencies acquiring properties 
which may be incorporated into a planned, anticipated, or designated 
federally assisted program or project understand when, why, and how the 
requirements of this rule apply. The FHWA is interested in commenters' 
suggestions on how to further clarify when, how, and why the 
requirements of this rule apply.
---------------------------------------------------------------------------

    \4\ See current question number five at: https://www.fhwa.dot.gov/real_estate/policy_guidance/uafaqs.cfm.
---------------------------------------------------------------------------

Section 24.102 Basic Acquisition Policies

    The term ``waiver valuation'' in this regulation and the more 
commonly used term ``appraisal waiver'' 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). In 1989, 
FHWA first adopted a rule on appraisal waivers. Under that rule, 
Agencies were allowed to decide when an appraisal was not needed if 
they first determined that the valuation was uncomplicated and the 
property was ``low-value.'' Over the years, we have used the terms 
``low-value'' and ``uncomplicated'' interchangeably. The FHWA is 
proposing to eliminate the term ``low-value'' since this proposed 
regulation now defines the range of values to which a waiver can be 
applied. The rule initially defined uncomplicated as being $2,500 or 
less.
    Beginning in 1995, FHWA approved, for its recipients, increases for 
the uncomplicated definition of up to $10,000 on a State-by-State 
basis. Since 2002, some agencies have received approval to use a 
$25,000 uncomplicated threshold when applying the appraisal waiver 
provisions of the 1989 rule. In January 2005, FHWA issued an updated 
rule that acknowledged the trend toward increasing the threshold for 
uncomplicated acquisitions. The current rule contained in Sec.  
24.102(c)(2)(ii) provides Agencies the latitude to define 
``uncomplicated'' as being up to $10,000. It also permits an increase 
in the amount up to $25,000 provided the Federal funding Agency 
approves, and the Agency agrees to provide the property owner the 
option to request an appraisal.
    Appraisal waiver requirements have proven to be an effective tool 
in containing costs and in fostering accelerated project delivery while 
protecting the rights of property owners under the Uniform Act. A 
national survey and various process reviews have confirmed this to be 
the case.\5\ The FHWA is proposing changes to Sec.  24.102(c)(2)(ii)(C) 
waiver valuation requirements, as described in the following three 
sections, in recognition of the positive experience using them.
---------------------------------------------------------------------------

    \5\ The FHWA has developed, collected or reviewed several 
supporting documents. They include an FHWA national survey of waiver 
valuation in 2005, results from 4 SDOTs which carried out waiver 
valuation pilot projects and a Colorado study of Waivers. FHWA is 
also embarking on a new national survey of waiver valuations in 
support of this NPRM effort.
---------------------------------------------------------------------------

Section 24.102(b) Notice to Owner

    The FHWA is proposing to add a new appendix item which states that 
when condominiums and other types of housing with common areas or 
community property are being acquired, an Agency should determine who 
must receive notification, which could include a condo or homeowner's 
board, a designated representative, or all individual owners when 
common or community property is being acquired for the project.

Section 24.102(c)(2) Appraisal Waiver

    The FHWA proposes to modify the appendix for this paragraph to 
further explain the term ``uncomplicated acquisitions.'' The FHWA also 
proposes to modify the regulation to emphasize that the person making 
the determination to use the waiver valuation must have sufficient 
understanding of the local markets, and should have knowledge of 
appraisal principles and use of valuations to be able to determine 
whether the valuation problem is uncomplicated. The FHWA also proposes 
to add to this appendix that Agencies should put procedures in place to 
ensure that waiver valuations are accurate and are consistent with the 
unit values as determined by appraisals and appraisal reviews. The FHWA 
proposes to strike the term ``sophisticated'' and insert ``complex'' in 
the appendix to more accurately reflect the intent that the waiver 
valuation frees up appraisers to do more complicated appraisal work. 
The FHWA also proposes inserting in the appendix that those who prepare 
waiver valuations have an understanding of appraisal principles and use 
of appraisals so as not to imply that they must be appraisers. The FHWA 
is also proposing to add a reference to the appendix item for this 
paragraph.

Section 24.102(c)(2)(ii)(A) Appraisal Waiver

    The FHWA has received questions about whether and how a licensed 
appraiser could develop a waiver valuation which would be consistent 
with professional standards and licensure requirements. The appendix 
states that waiver valuations are not appraisals under this rule. There 
is no national consensus or standard about the implications of having a 
licensed or certified appraiser prepare a waiver valuation. In some 
States, when a State-certified or licensed appraiser estimates a value, 
they may be obligated under the licensing requirements of their State 
to perform an appraisal even if the client requests something less than 
an appraisal. Performing appraisals rather than waiver valuations in 
situations where the valuation problem is not complex can cause 
unnecessary delay and adds unnecessary cost to an acquisition. However, 
some States have laws that interpret waiver valuations as appraisals, 
and those States only permit appraisers to perform appraisals, which 
effectively nullifies the benefits of the waiver valuation. In order to 
encourage those States to take advantage of the

[[Page 69475]]

streamlining efficiencies offered by the waiver valuation, and in an 
effort to avoid the increased time and increased cost associated with 
providing fully documented appraisals, FHWA proposes to incorporate a 
jurisdictional exception that preserves the original intent of the 
waiver valuation process while offering appraisers that wish to perform 
this type of work for Agencies an avenue for accepting waiver valuation 
assignments while remaining compliant with the provisions of the State 
appraisal licensing enforcement Agencies. The FHWA also recognizes that 
some States prefer to have waiver valuations reviewed even though this 
regulation does not require a formal review of waiver valuations. 
Appraisers can accept these types of assignments as well with this 
proposed language. The FHWA is proposing to add language to this 
paragraph that would preclude an appraiser from complying with 
standards rules 1, 2, 3, and 4 of the ``Uniform Standards of 
Professional Appraisal Practice'' (USPAP), as promulgated by the 
Appraisal Standards Board of The Appraisal Foundation.\6\ This proposed 
modification would afford those States a solution that preserves the 
intent of this regulation to streamline processes and provide 
programmatic efficiencies. This proposal would provide States and 
licensed or certified appraisers with clarity about the requirements of 
this regulation and the implications of developing a waiver valuation. 
The FHWA invites comments or suggestions on this proposed change.
---------------------------------------------------------------------------

    \6\ http://www.uspap.org.
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Section 24.102(c)(2)(ii)(D) Appraisal Waiver Thereof, and Invitation to 
Owner

    The FHWA proposes to add a new paragraph (c)(2)(ii)(D) to this 
section to institute a three-tiered approach to waiver valuations. The 
proposed new third tier of waiver valuations would be a $50,000 waiver 
value ceiling available under clearly defined circumstances. This 
change is presented as an option that Federal funding Agencies and 
recipients may consider using on a project-by-project basis. In 
proposing this change, it is important to note that additional 
safeguards have been created to ensure the full protection of property 
owners' rights and interests. The safeguards include the use of the 
third tier being limited to Federal funding Agencies and recipients, 
with no delegation to subrecipients, and that approvals may be granted 
on a project-by-project basis with requests made in writing and when 
the six pieces of information required in this paragraph are provided. 
The required information is: The anticipated benefits of raising the 
ceiling, administrative/managerial oversight mechanisms, names and 
credentials of those performing the waiver valuations, quality controls 
to be used, performance metrics with quarterly reports, and a close-out 
report measuring cost/time benefits and lessons learned. The FHWA 
believes that the proposed required information provides a set of 
requirements that ensure use of waiver valuations above $25,000 would 
be carefully considered and used in appropriate circumstances with 
specific safeguards. An important safeguard of this proposal is the 
requirement that the Agency offer an appraisal. The procedures 
described in this paragraph may not be used if the property owner 
elects to have the Agency appraise the property.

Section 24.102(n)(1) Conflict of Interest

    The FHWA proposes to change the word ``making'' to ``developing'' 
an appraisal in this paragraph to more accurately describe the activity 
of preparing an appraisal or waiver valuation. This paragraph ensures 
that the valuation process continues to operate in an independent 
manner by prohibiting the compensation for an appraisal or waiver 
valuation to be based on the amount of the valuation estimate.

Section 24.102(n)(3) Conflict of Interest

    The current regulation allows single agents who valued properties 
to also perform negotiations on properties that were valued at less 
than $10,000. The FHWA has conducted reviews that provided no 
indication that the use of the single agent created a problem to 
administer, or led to property owners receiving offers that were less 
than the Agency's best estimate of just compensation. The FHWA's 
experience is that the $10,000 limit has been managed effectively and 
property owners' rights and protections have not been diminished by 
this process.
    The FHWA now proposes to raise the limit to $25,000 with a two-
tiered approach. Under the proposed changes, the single agent concept 
could still be applied with waiver valuations up to the $10,000 amount. 
The FHWA is proposing that acquisitions estimated to be greater than 
$10,000 but less than $25,000 would require an appraisal, and review of 
the appraisal, if the valuation preparer is also acting as the 
negotiator.
    The FHWA also proposes that the Agency or recipient desiring to 
exercise this option for acquisitions estimated to be greater than 
$10,000 but less than $25,000 on a project or a program basis must 
submit a request in writing to the Federal funding Agency. The FHWA 
proposes to require that Agencies and recipients that implement this 
provision have a separate and distinct quality control process in place 
and written procedures which include an outline of the quality control 
process approved by the Federal funding agency. Federal Agencies may 
elect whether to use this single agent tool and to establish guidance 
for its use. The proposed increase to a $25,000 limit may be extended 
to a subrecipient when the Agency or recipient determines and documents 
that the subrecipient has a separate and distinct quality control 
process in place and outlined in written procedures approved by the 
Federal funding agency. The FHWA is also proposing to add a new 
appendix item for this paragraph, which explains the objective of using 
the conflict of interest provisions, the purpose of the three parts of 
this provision, and the new third tier of the conflict of interest 
provisions.

Section 24.103(a) Appraisal Requirements

    The FHWA proposes to delete date and publication information from 
the description of ``Uniform Standards of Professional Appraisal 
Practice (USPAP).'' The FHWA believes this change is needed because the 
USPAP has been updated several times since the publication of the 
current rule and may be updated several times over the next several 
years. The FHWA also proposes to add new updated web links for the 
USPAP in this paragraph. The FHWA will monitor future publications of 
USPAP to ensure that those publications continue to be consistent with 
the requirements of this rule and will make technical corrections when 
necessary.
    We also propose to modify the appendix item for this part by 
changing ``Standard Rules 1, 2, 3'' by striking the word ``Rules'' to 
``Standards 1, 2, 3 & 4'' and inserting ``2018-2019 edition of the'' 
before ``USPAP'' to ensure consistency with USPAP. The FHWA also 
proposes to delete ``Supplemental Standard Rule'' as it is no longer 
contained in USPAP.

Subpart C--General Relocation Requirements

Section 24.202(a) Persons Required To Move Temporarily

    Several Agencies have questioned whether persons temporarily 
displaced should receive benefits because they are

[[Page 69476]]

identified in the rule as persons not displaced. The FHWA is proposing 
to revise the definition of displaced persons and to specify the 
services and assistance that must be provided to a temporarily 
displaced person in this part. The FHWA also proposes to incorporate 
the majority of the appendix discussion on minimum Agency actions for 
temporary displacements into this section of the regulation. Several 
Federal Agencies noted that the proposed reorganization will provide 
their recipients with a more easily understood and concise discussion 
of minimum standards and actions required when temporarily displacing a 
person.
    The FHWA believes that the proposed change to the regulation aligns 
the regulation more closely with the language and requirements of 
Section 4621 of the Uniform Act. These requirements include a 
recognition that relocation assistance policies must provide for fair, 
uniform, and equitable treatment of all affected persons. In addition, 
FHWA believes that providing services and assistance to temporarily 
displaced persons is necessary to minimize the impacts of displacement 
and to maintain the economic and social well-being of communities. The 
proposed changes require that persons displaced from their dwelling or 
business be reimbursed for out-of-pocket expenses associated with the 
move and that temporary relocations may not last more than 12 months. 
The FHWA believes that the language in the current appendix that limits 
temporary relocations to no more than 12 months reflects a standard 
that some recipients were not aware of due to its placement in the 
appendix. The FHWA believes that more clearly establishing this 
standard as a regulatory requirement by incorporating it into the 
regulatory text will provide recipients with a more easily understood 
requirement for persons who are temporarily displaced. The new proposal 
also requires that appropriate advisory services be provided. The FHWA 
is not proposing to develop an all-inclusive list of actual and 
reasonable out-of-pocket expenses because each temporary relocation is 
unique and fact-specific. However, reimbursement should be provided for 
those additional costs necessitated by the temporary move, including 
lodging, cost of meals when temporary lodgings do not include kitchen 
facilities, and cost to move personal property when necessary.
    The FHWA is also proposing to add an item to this part to 
explicitly state that aliens not lawfully present in the United States 
are not eligible for temporary relocation assistance unless such denial 
of benefits would create an extremely unusual hardship to a designated 
family member in accordance with Sec.  24.208(g). This clarification is 
not an additional prohibition or change to the regulation. The addition 
is intended to assist Agencies that frequently do temporary relocations 
by ensuring that the existing provisions and prohibitions are easily 
understood.

Section 24.203(a) General Information Notice

    Several Agencies have indicated that the term ``scheduled'' in this 
paragraph does not have a clear meaning in the context of their 
programs. These Agencies believe that ``may be displaced'' more closely 
fits the processes they follow since a large part of their programs are 
voluntary acquisitions and ``scheduled to be displaced'' could be 
interpreted to mean a decision to displace had been made regardless of 
the outcome of the negotiation process. The FHWA believes that the 
proposed change would fit both voluntary and eminent domain 
acquisitions and subsequent relocations. This proposed change would 
also promote consistency between this paragraph and the following 
paragraph since the phrase ``may be displaced'' is already used in 
Sec.  24.203(a)(1).

Section 24.203(b) Notice of Relocation Eligibility and Section 
24.203(d) Notice of Intent To Acquire

    One Agency has requested that the existing ``Notice of intent to 
acquire'' in Sec.  24.203(d) be revised to eliminate confusion and to 
expand its applicability to rehabilitation and demolition activities 
where no acquisition is involved. They propose to replace it with an 
``Advanced Notice of relocation eligibility'' which would serve to 
establish relocation eligibility.
    Rather than rewriting Sec.  24.203(d) and eliminating Sec.  
24.203(b) in the regulation, FHWA proposes to simply rename the 
``Notice of intent to acquire'' as ``Notice of intent to acquire, 
rehabilitate, or demolish'' to cover the situations unique to the 
Agency and similar programs when an acquisition does not occur but 
persons are required to move for some period of time. As a result, 
several other parts of the regulation will be modified to reflect this 
new title. Specifically, FHWA proposes to reword the definition of a 
``displaced person'' at Sec.  24.2(a) and the definition of 
``initiation of negotiations'' at Sec.  24.2(a) wherever this it 
appears. The FHWA also proposes to add ``rehabilitate or demolish'' 
wherever ``notice of intent to acquire'' occurs in Sec.  24.203(b) and 
(d). In Sec.  24.203(d), FHWA proposes to also strike ``acquired'' from 
``property acquired'' to again emphasize that the Notice of Intent to 
Acquire clearly includes rehabilitation and demolition projects.
    The FHWA believes that renaming the notice of intent to acquire to 
include rehabilitation and demolition clearly conveys the many types of 
displacements to which this notice is intended to apply. The FHWA 
believes that this is the simplest solution to tailor applicability of 
this notice to all programs.

Section 24.204(a) Introductory Text Through (a)(1) Availability of 
Comparable Replacement Dwelling Before Displacement

    The FHWA has received a number of questions regarding the meaning 
of the term ``made available'' in the context of this paragraph's 
discussion of comparables. The questions are focused on the general 
requirements of this paragraph's language providing direction on the 
number of comparables that should be used in the determination process 
and is not focused on benefit determination or eligibility. A majority 
of practitioners believe that ``made available'' simply requires that 
information on the comparable replacement dwellings be provided to a 
displaced person. Others believe that the regulation requires that all 
comparables be inspected before being used in estimating eligibility.
    The FHWA proposes to modify the language in this paragraph to 
clearly state that ``made available'' means providing information in 
writing on the location of actual comparable replacement dwellings that 
were used in the determination process. The regulation continues to 
state that three or more comparable replacement dwellings shall be made 
available, whenever possible in the determination process. The FHWA 
believes that providing information on at least three comparable 
replacement dwellings should be the standard practice because it 
provides the displaced person with the assurance that the selected 
comparable replacement dwellings fairly represent comparable properties 
available on the market. The FHWA is also proposing changes to Sec.  
24.205(c)(2)(ii)(C) Relocation Planning, Advisory Services, and 
Coordination which are discussed in detail below. The FHWA agrees that 
an inspection of a comparable dwelling should be made prior to its use 
in any eligibility determination. The proposed change requires Agencies 
to inform displaced

[[Page 69477]]

persons in writing of the reason(s) a DSS inspection of a comparable 
replacement dwelling was not made (in cases where inspections were not 
made) and to indicate that, should a displaced person select one of the 
comparable dwellings, a replacement housing payment cannot be made 
until a DSS inspection is made of that dwelling.

Section 24.205(c)(2)(ii)(C) Relocation Planning, Advisory Services, and 
Coordination

    The FHWA proposes to modify the language in this paragraph to 
require Agencies to inform displaced persons in writing of the 
reason(s) a DSS inspection of a comparable replacement dwelling was not 
made (in cases where inspections were not made) and to indicate that, 
should a displaced person select one of the comparable dwellings, a 
replacement housing payment cannot be made until a DSS inspection is 
made of that dwelling.
    The FHWA also proposes adding a new item to appendix A, Section 
24.205(c)(2)(ii)(C), explaining what constitutes a DSS inspection and a 
further discussion of the requirement that an Agency must make full 
disclosure and explanation to the displaced person if the comparable 
replacement dwelling was not inspected.
    It is the position of FHWA that comparable replacement housing must 
be inspected whenever possible and that the selected comparable 
replacement dwelling should be inspected (e.g., walk through/physical 
inspection). The FHWA proposes to add a part in the appendix which 
explains that reliance on an exterior visual inspection, or examination 
of an MLS listing, does not constitute a full DSS inspection as 
required by the regulation in most cases.

Section 24.205(c)(2)(ii)(D) Relocation Planning, Advisory Services, and 
Coordination

    The FHWA is proposing to revise the appendix for this part to 
include a reminder that Agencies should ensure that they are 
appropriately documenting their efforts to provide comparables and 
replacement dwellings which are not in areas of minority concentration.

Section 24.207(f) No Waiver of Relocation Assistance

    The FHWA proposes to add a reference to appendix A, Section 24.207, 
which further explains the requirements when a displaced person chooses 
not to accept some or all of the payments or assistance to which they 
are entitled.

Section 24.207(h) Entitlement to Payments-Deductions From Relocation 
Payments

    To date, the practice of withholding a portion of, or deducting 
from, a relocation replacement housing payment to satisfy non-payment 
of rent to an Agency, or to satisfy an obligation to any other 
creditor, has been clearly prohibited. Because the current prohibition 
is only found in Sec.  24.404(a)(6) pertaining to replacement housing 
payments, several questions have been raised regarding whether the 
withholding prohibition applies to all relocation assistance payments 
or only to replacement housing payments. The FHWA proposes to add a new 
paragraph to the general requirements for claims for relocation 
payments to emphasize that withholdings or deductions may not be made 
from any type of relocation payments for non-payment of rent or to 
satisfy an obligation to any other creditor. The proposed addition 
would also clarify that Agencies must deduct any advanced relocation 
payment from the relocation payments to which the displaced person is 
otherwise entitled.

Section 24.208(c) Aliens Not Lawfully Present in the United States

    The FHWA proposes to add a reference to a new addition to the 
appendix for this paragraph that provides examples of how to calculate 
relocation payments if some members of a displaced family are lawfully 
present but others are aliens not lawfully present. The new addition 
would provide calculations that are based on the ratio of ownership 
between aliens not lawfully present and eligible displaced persons. The 
proposed addition to appendix A also incorporates several current 
Uniform Act Frequently Asked Questions,\7\ to provide specific 
calculation examples.
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    \7\ https://www.fhwa.dot.gov/real_estate/policy_guidance/uafaqs.cfm.
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Section 24.208(f)(1)

    The FHWA proposes to update the acronym for the BCIS to the current 
USCIS and add a corrected link to that Agency's website. The FHWA also 
proposes to amend this paragraph by requiring the use of the USCIS's 
Systematic Alien Verification for Entitlements (SAVE) program to 
confirm certifications which an agency believes may be invalid. The 
FHWA seeks comments on whether there may be other resources that can be 
used when an agency considers a certification invalid. The FHWA would 
also like comments on whether and how the certification process in this 
part should be updated. The FHWA is interested in comments on whether 
revisions should include document review and collection for all 
displaced persons.

Section 24.208(g) Aliens Not Lawfully Present in the United States

    The FHWA has received questions from several Federal Agencies about 
providing temporary relocation assistance to aliens not lawfully 
present in the United States. The question arises because the 
requirements focus on displaced persons. In instances of temporary 
relocation, persons are not displaced persons but are eligible for 
certain temporary benefits. The Federal Agencies question whether this 
paragraph's restriction on providing relocation benefits or assistance 
would prohibit or allow an Agency to deny temporary relocation 
assistance to an alien not lawfully present in the United States. The 
FHWA believes that the clear intent in statute and this regulation do 
not allow for any Uniform Act benefits or assistance to be provided to 
an alien not lawfully present in the United States, with the exception 
being cases where an exceptional and extremely unusual hardship to a 
spouse, child, or parent who is a U.S. citizen or alien lawfully 
admitted for permanent residence would be created by denying such 
benefits and assistance. This regulation provides specific 
considerations and requirements that allow for benefits to be provided 
in this limited instance. Given that this regulation allows and defines 
instances when an alien not lawfully present in the United States may 
receive Uniform Act benefits, the FHWA believes that the hardship 
exception also applies to temporary relocations in cases where an 
exceptional and extremely unusual hardship to a designated family 
member would be created by denying such benefits and assistance. The 
FHWA does not believe that any additional changes are needed to this 
regulation given the restrictive and specific language in this 
paragraph.

Section 24.208(h) Aliens Not Lawfully Present in the United States

    Some Agencies have asked FHWA how to determine when there is an 
``exceptional and extremely unusual hardship'' to a spouse, parent, or 
child of a person not lawfully present in the United States when the 
determination results in more than the loss of relocation payments and/
or assistance alone. The FHWA proposes to add a reference to appendix 
A, Section 24.208(h), which incorporates FHWA's previously published 
FAQ explaining the meaning and intent of the term

[[Page 69478]]

``exceptional and extremely unusual hardship.'' \8\ The FHWA believes 
that including existing guidance into the appendix will provide a clear 
resource to address the questions raised.
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    \8\ https://www.fhwa.dot.gov/real_estate/uniform_act/relocation/illegaqa.cfm
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Subpart D--Payments for Moving and Related Expenses

Section 24.301(b)(2) Moves From a Dwelling

    The FHWA requests comments on adding an option, similar to that 
found in this part for business self-moves, to allow self-moves from 
dwellings to be eligible for reimbursement in the amount of the lower 
of two bids or estimates prepared by a commercial mover or based on an 
estimate prepared by a qualified Agency staff person. The FHWA would 
like comments on whether and how adding new self-move options for moves 
from a dwelling would reduce administrative burden on the displaced 
person and the Agency. The FHWA believes that self-move options would 
reduce administrative burden and eliminate the burden to the property 
owner of providing receipts or proof of expenditures to support 
residential self-move claims for payment. The FHWA is also interested 
in comments on how reimbursement should be made if a self-move 
reimbursement is based on a commercial move bid. Should the 
reimbursement be for the full commercial move bid, or should it be made 
after subtracting an amount to account for overhead and profit in the 
commercial move bid?

Section 24.301(b)(3), (c)(2)(ii), and (d)(2)(ii) Moving Cost Finding 
and (d)(2)(iii) Non-Residential Moving Cost Schedule

    The FHWA is interested in incorporating methods in this regulation 
that can reduce administrative burdens and improve the government's 
service to individuals and businesses affected by Federal or federally 
assisted projects and programs. In previous rules, there was a 
provision that allowed 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.'' Persons displaced 
from their dwellings can elect to receive reimbursement for moving 
their personal property by use of a streamlined process that does not 
require commercial move estimates or receipts documenting moving costs. 
The Fixed Residential Moving Cost Schedule allows an Agency to 
determine, document, and establish moving cost eligibility based on the 
number of rooms of furniture being moved. The FHWA is considering a 
similar tool for nonresidential moves. A business move cost schedule 
would conceptually be established by regulation and would allow an SDOT 
to determine eligibility for reimbursement based on a predetermined 
metric such as number of rooms or number of items. If a non-residential 
moving cost schedule were allowed by regulation, Agencies would no 
longer need to document costs based on moving estimates or receipted 
bills.
    The FHWA would like comments about move cost findings and 
development of a non-residential moving cost schedule, and whether they 
should be considered for incorporation in a final rule. Specifically, 
FHWA would like to know if any Agencies use a similar process for their 
programs and projects which are not subject to the requirements of the 
Uniform Act; whether that process has produced administrative cost 
savings; and, whether the process has been found satisfactory by 
displaced persons relocated by the Agency.

Section 24.301(e) Personal Property Only

    The FHWA proposes to modify appendix A, Section 24.301(e), to 
provide Agencies with additional flexibility for use in residential 
moves where the only personal property to be moved is located outside 
of the dwelling. The FHWA recognizes that in some instances the costs 
of obtaining moving bids for moving personal property located outside 
of the dwelling may exceed the cost of the actual move. The FHWA 
proposes to allow a payment for moves of residential personal property 
located outside of the dwelling to be based on the ``additional room'' 
category of the Fixed Residential Move Cost Schedule. We also propose 
to include the link to the Schedule on the FHWA website in this 
appendix.

Section 24.301(g)(3) Disconnecting, Dismantling, Removing, 
Reassembling, and Reinstalling Relocated Household Appliances and Other 
Personal Pproperty

    The FHWA proposes to add a clarification in the appendix of this 
paragraph to address questions received about the eligibility of 
certain costs to build or rehabilitate structures as a reimbursable 
expense. Generally, costs to construct, rehabilitate, or reconstruct 
are capital expenditures and are ineligible for reimbursement. In 
instances where these costs may be required, a waiver of regulation by 
the Federal funding Agency must be obtained.

Section 24.301(g)(11) Eligible Actual Moving Expenses--License, Permit, 
Fees

    The FHWA proposes to add ``actual, reasonable, and necessary'' 
before the words ``license, permit, fees or certification'' and ``farms 
or non-profits'' and after ``business'' in this paragraph. The FHWA 
believes that each business, farm, or non-profit move is unique due to 
varying local, State, and Federal requirements and requires a careful 
review of the facts in order to determine whether a permit or fee 
should be reimbursable for a specific move. The FHWA also proposes to 
clarify that the permit or fees allowed under this paragraph are for 
those necessary to operate a business, farm, or non-profit by adding 
``to operate a business, farm, or non-profit'' after ``required'' in 
the first sentence of this paragraph. The proposed change would clarify 
that permit fees associated with construction are not included as an 
actual moving expense. In most instances, reimbursing for building a 
new structure at the replacement location is not a permissible actual 
moving cost expense. Consequently, the cost of a permit for new 
construction in almost all instances is not an eligible expense under 
this part. A new construction permit for repairs or improvements to the 
replacement property or modification to accommodate the business, farm, 
or non-profit operation or make the replacement structure suitable for 
conducting the business, farm, or non-profit may, however, be eligible 
for reimbursement if determined to be reasonable and necessary under 
Sec.  24.304 Reestablishment expenses or if required by local law, 
code, or ordinances.

Section 24.301(g)(13) Re-Lettering Signs and Replacing Sationary on 
Hand

    Currently, the regulation specifies that re-lettering signs and 
replacing stationery made obsolete at the time of the displacement are 
eligible moving expenses. The FHWA proposes to modify this paragraph to 
recognize that many businesses use media other than printed media by 
adding the phrase ``and making updates to other media.'' We propose 
making a reference to a new item in appendix A, Section 24.301(g)(13), 
which includes examples of other potentially reimbursable costs for 
other media such as DVDs or CDs and modification of websites to update 
contact and location information made necessary because of the move. 
This proposed change would allow Agencies to determine if expenses 
incurred to update media on hand, such as DVDs,

[[Page 69479]]

CDs, or updating a website to reflect information on the new location 
of the business, are actual, reasonable, and necessary expenses which 
would be eligible under this paragraph. The FHWA intends that the 
compensation would be limited to costs to reproduce the number of DVDs 
and CDs on hand at the time of displacement, and, in the case of a 
website update, only those costs necessary to edit and modify the 
location information.

Section 24.301(g)(14)(i)-(ii) Actual Direct Loss of Tangible Personal 
Property

    The FHWA has received a number of questions regarding the 
appropriate method for calculating the actual direct loss of tangible 
personal property and the meaning of ``value in place for continued 
use'' as used in these paragraphs. Some Agencies have reported that it 
can be difficult and very costly to find machinery and equipment (M&E) 
valuation experts who are able to determine value in place for 
continued use. Other Agencies have noted that considering the value in 
place for continued use ensures that payments made under provisions of 
these paragraphs are reasonable and that procuring the services of an 
M&E valuation expert is relatively easy. The FHWA believes that 
procuring the services of an M&E valuation expert is achievable but 
perhaps not always easily.
    The FHWA proposes to modify these paragraphs to allow for a new 
two-part consideration of the actual direct loss of tangible personal 
property payment. First, FHWA proposes separate paragraphs for 
calculating payments for items currently in use and for items not 
currently in use. For items in use, reimbursement is based on the 
lesser of the cost to move and reinstall the item or fair market value 
in place of the item ``as is for continued use.'' The FHWA believes 
that by using ``the lesser of'' consideration, the eligibility 
determination provides options to both the Agency and the displaced 
person.
    For items not currently in use, FHWA proposes to base the 
reimbursement on the cost to move the item as is, with no allowance for 
storage.
    The FHWA also proposes to reorganize these paragraphs by proposing 
a separate subordinate paragraph for goods held for sale. When payment 
for property loss is claimed for goods held for sale, the fair market 
value shall be based on the cost of the goods to the business, not the 
potential selling prices. The FHWA proposes to add a reference to 
appendix A for this paragraph.
    The FHWA also proposes to add a discussion to the end of appendix A 
about procuring M&E valuation expert services. The FHWA welcomes 
comments that identify such services and methods that may be used to 
direct the reader to reasonable methods of estimating value in place 
either by hiring an M&E appraiser or by estimating via websites 
available for M&E valuations. Finally, FHWA proposes updating 
regulatory references in the appendix for these paragraphs due to 
renumbering and reorganization of the regulation section.

Section 24.301(g)(17)(i)-(ii) Searching for a Replacement Location

    The FHWA's Business Relocation Assistance Retrospective Study \9\ 
reported that businesses incur searching expenses that routinely exceed 
the current regulatory limit of $2,500. The report recommended 
increasing the limit on searching expenses to $5,000 and lessening the 
burden of documentation. The FHWA proposes to increase searching 
expenses' eligibility from $2,500 to $5,000. The FHWA believes that in 
some instances requiring documentation for all searching expenses can 
be administratively burdensome to both the Agency and the displaced 
person. As such, FHWA proposes to add a new provision at Sec.  
24.301(g)(17)(ii) of this regulation that would provide Federal 
Agencies with the option to allow, on a project or program wide basis, 
a one-time alternative searching payment of up to $1,000 with little or 
no documentation. The FHWA believes that the potential savings in 
administrative costs offset the possibility of fraud, waste, and abuse. 
The FHWA also proposes to modify the appendix for these paragraphs by 
striking $2,500 and inserting $5,000 and by proposing new flexibility 
by allowing one time alternative searching payments of up to $1,000 
with little or no documentation.
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    The FHWA also proposes to incorporate a frequently asked question 
into the appendix to clarify that search expenses may be incurred 
anytime the business anticipates it may be displaced, including prior 
to project authorization or the initiation of negotiations. However, 
such expenses should not be reimbursed until the business has received 
the notice, required in Sec.  24.203(b), and only after the Agency has 
determined such costs to be actual, reasonable, and necessary.

Section 24.301(g)(17)(i)(F) Searching for a Replacement Location

    The FHWA proposes to change this paragraph to allow expenses to 
include attorney's fees. The FHWA recognizes that displaced business 
owners may incur actual, reasonable, and necessary costs for either 
time spent or fees paid for services necessary to determine the 
adequacy of a potential replacement property. These costs may include 
those necessary to determine appropriate zoning and resolve other 
issues during a search for a replacement location. Several State 
Agencies have reasoned that in a number of instances having attorneys 
negotiate for the purchase of replacement sites could be an actual, 
reasonable, and necessary expense. The FHWA agrees that attorney's fees 
for negotiating a purchase can be considered a reasonable expense under 
this part. The FHWA also proposes to strike ``time spent'' and insert 
``expenses'' negotiating the purchase of a replacement site.
    The FHWA is proposing to amend the appendix for this paragraph to 
clarify that attorney's fees could be considered eligible as a 
searching expense. The FHWA also believes that because the fees are 
reimbursed at the Agency's discretion based on the actual, reasonable, 
and necessary test, the potential for waste, fraud, and abuse is 
manageable.

Section 24.301(h)(13) Ineligible Moving and Related Expenses

    State DOTs have asked about the eligibility of costs to make 
cosmetic alterations or improvements to replacement dwellings, such as 
painting, fitting draperies, and replacing carpet or flooring. The FHWA 
believes that expenses for cosmetic changes to a dwelling are not 
moving costs which are reimbursable under the Uniform Act. This 
proposed change is not intended to prohibit alterations to a dwelling 
to make it accessible and free of barriers for ingress, egress, or use 
as required under the definition of a DSS dwelling, for a displaced 
person with a disability at Sec.  24.2(a).

Section 24.302 Fixed Payment for Moving Expenses-Residential Moves

    Persons displaced from a seasonal residence or dormitory style room 
may receive a fixed moving cost payment as an alternative to a payment 
for actual moving and related expenses. A number of questions have been 
raised about the appropriate uses of the moving cost schedule, 
including whether storage can be included as part of a fixed cost move 
and what the allowance for storage can

[[Page 69480]]

include. The FHWA proposes to add language to the appendix to clarify 
that if an Agency determines that storage is an actual, reasonable, and 
necessary expense in conjunction with this schedule, payment may be 
paid in accordance with Sec.  24.301(g)(4) for a period not to exceed 
12 months. The FHWA also proposes to revise language in appendix A, 
Section 24.302, to clarify the applicability of the Fixed Residential 
Move Cost Schedule (Schedule) to seasonal residents and temporary moves 
from a dwelling and to add a reference to the revised appendix item.
    The FHWA proposes to add a new paragraph to this section to allow 
for actual reasonable and necessary storage. This proposed addition 
requires that the Agency notify the displaced person in writing that 
the Fixed Residential Move Cost Schedule is only for one move. In 
instances where storage was approved, only the costs to move the 
personal property from the displacement location to storage would be 
reimbursable. The FHWA believes that in most cases the use of a fixed 
cost move is meant to be a one-time uncomplicated move, and if storage 
is necessary, it would be in the displaced person's interest to use a 
commercial move to ensure that all costs related to moving and storage 
are reimbursed.

Section 24.303(a) Related Non-Residential Eligible Expenses

    The FHWA has received a number of questions regarding the meaning 
of ``nearby utilities'' and whether ``nearby'' allows for reimbursement 
for certain utility service modifications and reconnection costs. In 
general, there has been confusion about whether ``nearby'' meant from 
the property line or some other defined point. The intent of this 
paragraph was to recognize that relocating a business may require some 
utility service modifications and reconnection costs. ``Nearby'' has 
sometimes been interpreted to mean anywhere from several feet to 
several miles away. The FHWA proposes to strike ``nearby'' and ``right-
of-way'' and add ``from the replacement site's property line.'' The 
FHWA believes that the proposed changes will more clearly and 
accurately indicate the kinds of expenses that are eligible under this 
part. The FHWA proposes adding a new appendix item for this paragraph 
that includes examples to more clearly describe eligible costs. The 
FHWA also proposes to add a reference to the new appendix A, Section 
24.303(a), to the end of this paragraph.

Section 24.303(c) Related Nonresidential Eligible Expenses--Impact Fees 
or One-Time Assessments

    Impact fees or one-time assessment for anticipated heavy utility 
usage are eligible expenses. The FHWA is proposing to clarify that 
``impact fees'' are only related to anticipated ``heavy utility usage'' 
at the replacement location. Generally, the terms ``heavy utility 
usage'' and impact fees recognize costs associated with utility usage 
including water, sewer, gas, and electric. Impact fees associated with 
major infrastructure construction, such as adding a lane for additional 
traffic capacity or other similar required infrastructure improvements, 
fire stations, regional drainage improvements, and parks are not 
eligible. The FHWA proposes changing the ``or'' before ``one time 
assessments'' to ``and.'' The FHWA believes this change, a subsequent 
new appendix A, Section 24.303(c), and a reference to it in the 
regulation will adequately respond to the questions about correctly 
interpreting and applying this benefit.

Section 24.304 Reestablishment Expenses--Non-Residential Moves

    Section 1521(a)(1) of MAP-21 amends Section 202 of the Uniform Act 
by raising the statutory limit to $25,000. The FHWA proposes to revise 
this section to reflect the new statutory limit of $25,000.

Section 24.304(b) Ineligible Expenses

    Several Federal Agencies and FHWA have received questions from 
their program partners regarding whether construction of a facility, 
where little or no structure currently exists, would be an eligible 
reestablishment expense. They have reasoned that Sec.  24.401(a)(1), 
which allows for ``improvements to the real property,'' and Sec.  
24.401(a)(2), which allows for ``modifications to the replacement 
property,'' may be read to allow for new construction or substantially 
new construction where there is little or no structure.
    The FHWA proposes to add a new Sec.  24.304(b)(5) to clarify 
exclusion of costs to construct a new facility such as a new business 
building on a vacant replacement property or to substantially construct 
or reconstruct a building. These costs are considered capital 
expenditures and are generally ineligible for reimbursement as a 
reestablishment expense. The FHWA believes that building from the 
ground up or substantially reconstructing a building, or the 
rehabilitation or rebuilding of a shell, is beyond the intended scope 
of Sec.  24.304(a). The FHWA recognizes that there may be special cases 
where substantial reconstruction or building from the ground up may be 
necessary. Agencies will need to consider each request for eligibility 
on a case-by-case basis and determine whether that eligibility should 
be requested. Agencies that determine that eligibility should be 
provided must request a waiver of Sec.  24.304(b)(1) under the 
provisions of Sec.  24.7 from the Federal Agency funding the project or 
program
    The FHWA also proposes incorporating two current Frequently Asked 
Questions into a new appendix item with an example of when such a 
waiver is requested and discusses the costs that may be eligible for 
reimbursement.

Section 24.305 Fixed Payment for Moving Expenses-Nonresidential Moves, 
Paragraphs (a) Business, (c) Farm Operation, and (d) Nonprofit 
Organization

    Section 1521(a)(2) of MAP-21 amends Section 202 of the Uniform Act 
by raising the statutory limit for a fixed payment for moving expenses-
nonresidential moves to $40,000. The FHWA proposes to revise these 
three paragraphs to reflect the new statutory limit of $40,000.
    Several Federal Agencies and some program partners have raised 
questions about whether a fixed payment for moving expenses in 
nonresidential moves prohibits other relocation assistance payments for 
moving and related expenses and reestablishment payments. The FHWA 
proposes to add clarifying language to ensure that the regulation is 
clearly understood to prohibit payments for any moving and related 
expenses or reestablishment payments when a displaced person elects to 
receive a fixed cost moving payment under this section of the 
regulation. The fixed payment option's purpose is to provide a 
displaced person with an alternative method of receiving reimbursement 
for all costs associated with a move. This alternative fixed payment is 
a one-time payment that exhausts and eliminates other eligibilities and 
payments for any moving and related expenses (including actual direct 
loss of tangible personal property and searching) or reestablishment 
payments.
    The FHWA also proposes a new appendix item for these parts to 
further clarify that this fixed payment represents a one-time 
alternative for businesses, farms, and non-profits.

[[Page 69481]]

Section 24.305(e) Average Annual Net Earnings

    Practitioners have asked FHWA about the requirement that a business 
must have been in operation for at least 2 full years to qualify for 
the fixed payment based on the average annual net earnings and what to 
do in instances where the business was not in operation for two full 
years. The FHWA proposes to add a reference in this paragraph to a 
revised appendix A, Section 24.305(e). The revisions clarify that a 
business must only contribute materially to the income of the displaced 
person for a period of time during the 2 taxable years prior to 
displacement but does not have to be in existence for 2 full years 
prior to displacement in order to be eligible for this benefit. The 
proposed new appendix item also provides sample calculations of 
benefits when a business was in operation for less than 1 year, more 
than 1 year but not 2 full years, and when a business only operates 
seasonally. We propose that the seasonal net income be considered the 
entire income for that year when making the payment calculation. The 
appendix also restates, as currently provided for in the regulation, 
that average annual net earnings may be based upon a different period 
of time that an Agency determines to be more equitable. The FHWA 
believes that the combination of the proposed new item in appendix A 
and the specific examples of calculations will ensure that businesses 
that contribute materially, but are in operation less than 2 years 
prior to displacement, will have their annual net earnings correctly 
determined.

Section 24.306(a) Discretionary Utility Relocation Payments

    The FHWA proposes to revise the reference to Sec.  24.2(a), Utility 
facility.

Subpart E--Replacement Housing Payments

Section 24.401 Replacement Housing Payment for 90-Day Homeowner-
Occupants

    Section 1521(b)(2) of MAP-21 amends Section 203(a)(1) of the 
Uniform Act by reducing the number of days a person must have owned and 
occupied a displacement dwelling from 180 days to 90 days in order to 
be eligible for a replacement housing payment. The FHWA proposes to 
modify the heading for Sec.  24.401 and paragraphs (a) introductory 
text and (a)(1) and the appendix entries for these parts by deleting 
``180 days'' and inserting ``90 days'' in each place it appears.

Section 24.401(b) Amount of Payment

    Section 1521(b)(1) of MAP-21 amends Section 203(a)(1) of the 
Uniform Act by raising the statutory limit for replacement housing 
payments to $31,000. The FHWA proposes to modify this section by 
deleting $22,500 and inserting $31,000 in each place it appears.

Section 24.401(d) Introductory Text Through (d)(1) Increased Mortgage 
Interest Costs

    The FHWA is not proposing a change in this section but believes it 
is important to note that MAP-21 did not change the requirement that a 
lien must have been in place for 180 days prior to the initiation of 
negotiations in order to be considered a valid lien and to be eligible 
for an increased mortgage interest cost payment under this part. Prior 
to MAP-21, the eligibility requirements for occupancy of a displacement 
dwelling and for a valid lien were both 180 days prior to the 
initiation of negotiations.
    The FHWA proposes to modify the appendix item for Sec.  24.401(d) 
to improve clarity by striking ``and that the 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'' from the sentence after the sample computation. This does not 
necessarily occur often in practice since a displaced person may obtain 
a lesser mortgage amount or term on their replacement dwelling. The 
rest of the sentence remains to inform the displaced person of the 
approximate amount of the payment and interest rate and points used to 
calculate the payment.
    The FHWA also proposes to add a link in the appendix to increased 
interest cost calculators available on its website.

Section 24.401(e) HECM

    The FHWA proposes to add a new definition, paragraph, and appendix 
item to address HECM (also known as reverse mortgages). Although the 
actual number of HECM type mortgages is still relatively low in 
comparison to all types of mortgages, FHWA believes that this may 
change in the future due in part to the number of aging homeowners in 
the marketplace and also because the marketplace and marketing 
practices for HECMs are evolving and growing.
    Since these mortgages did not exist when the Uniform Act was 
enacted, their unique and particular financial construction was not 
accounted for in the development of relocation assistance benefits. 
Because there are unknown factors in calculating exact costs to replace 
a HECM, the services of a mortgage broker are required. The FHWA 
believes that there is ample authority in the Uniform Act, its 
legislative history, and implementing regulations to support the 
strategies proposed in this NPRM for addressing displaced persons with 
HECMs.
    We have incorporated in the NPRM information from a 2013 Study of 
Reverse Mortgages in Relocation Assistance conducted by FHWA. These 
mortgages often have unique terms. We are proposing that every 
reasonable attempt should be made to make available a replacement HECM 
with similar terms. The FHWA is also proposing that the displaced 
homeowner is eligible for costs associated with origination of a 
replacement HECM, such as mortgage insurance, origination fee, and 
other incidental expenses, in accordance with Sec.  24.401(f).
    Our research has revealed that the cost of replacing a HECM can be 
substantial, especially when the owner has little or no equity left and 
their equity is being dispersed as term or tenure payments. The FHWA is 
also proposing options to replace the HECM with a mortgage with terms 
similar to the displacement HECM loan or the use of other methods such 
as a life estate for securing a dwelling for the person's remaining 
lifetime. In cases where there is a tenure or term payment, FHWA has 
developed a simple online calculator to estimate the cost to purchase a 
replacement HECM. However, the exact payment required to purchase a 
replacement HECM includes information and calculations which are 
proprietary to HECM mortgage brokerages. The FHWA believes the use of a 
calculator which provides an estimate will serve to inform the Agency 
and displaced person of approximate eligibility and a method for 
determining whether HECM replacement costs are actual, reasonable, and 
necessary.
    The new item in appendix A presents the various HECM terms that can 
be encountered with solutions for Agencies to consider. It also 
provides a link to the FHWA online calculator to estimate the 
eligibility and costs to replace the HECM. This calculator uses basic 
information readily available to an Agency to calculate this estimated 
payment. It only requires the value of the acquired dwelling, existing 
balance of the displacement HECM, and price of the selected comparable 
or actual replacement dwelling. Next, it calculates an estimate of the 
remaining equity on the displacement HECM, the

[[Page 69482]]

initial principal limit of the replacement HECM (current HUD rules 
require 60 percent minimum equity in the dwelling be available at the 
time of purchase of the HECM) and funds needed to purchase a 
replacement HECM. Then, it subtracts the remaining equity and price 
differential payment from the total funds needed to arrive at the 
estimated HECM supplemental payment eligibility.

Section 24.401(f) Rental Assistance Payment

    This paragraph has been re-lettered (g) due to the insertion of the 
new Sec.  24.401(e) on HECMs. Section 1521(c)(1) of MAP-21 amends 
Section 204(a) of the Uniform Act by increasing the statutory limit for 
rental assistance payments to $7,200. Similarly, section 1521(b)(2) of 
MAP-21 also amends Section 203(a)(1) of the Uniform Act by reducing the 
number of days a person must have owned and occupied an acquired 
dwelling in order to be eligible for a rental assistance payment from 
180 days to 90 days. The FHWA proposes to modify this paragraph and the 
appendix to reflect both changes.

Section 24.402 Replacement Housing Payments for 90-Day Tenants and 
Certain Others

    The FHWA proposes to strike ``90-day occupants,'' which included 
tenants or owner-occupants, from this section's current title and 
replace it with ``tenants and certain others.'' The FHWA is proposing 
this change to be consistent with the heading ``Tenants and certain 
others'' contained in both the Uniform Relocation Assistance and Real 
Property Acquisition Polices Act as amended in 1987, and the statute 
Title 42, U.S.C. Chapter 61, section 4624--Replacement housing for 
tenants and certain others.

Section 24.402(a) Eligibility

    Section 24.402 of the regulations sets out criteria for when 90-day 
tenants and certain others displaced from a dwelling are eligible for a 
payment for rental assistance or down payment assistance. Section 
1521(b)(2) of MAP-21 amends Section 204(a) of the Uniform Act by 
increasing the statutory limit for replacement housing payment to 
tenants to $7,200. The FHWA proposes to update the amount listed in 
this paragraph accordingly.

Section 24.402(a)(2) Eligibility

    The FHWA proposes to add ``the date he or she moves from the 
displacement dwelling'' to the end of Sec.  24.402(a) and to delete the 
remainder of this paragraph. These changes are necessary because of 
changes to eligibility criteria for owners in Section 1521(a)(1) of 
MAP-21, which reduced the number of days a person must have owned and 
occupied a displacement dwelling in order to be eligible for a 
replacement housing payment from 180 days to 90 days. This change 
eliminates the need or requirement to discuss eligibilities for 
homeowners of more than 90 but less than 180 days. Consequently, FHWA 
is proposing to reorganize the section.

Section 24.402(b) Rental Assistance Payment

    Section 1521(a)(1) of MAP-21 amends Section 204(a) of the Uniform 
Act by increasing the statutory limit for replacement housing payment 
to tenants to $7,200. The FHWA proposes to update the amount listed in 
this paragraph accordingly.
    The FHWA also proposes to correct the web link to the Uniform Act 
Low Income Limits Survey, which currently points to an inactive 
website.

Section 24.402(b)(1)(i) Rental Assistance Payment

    The FHWA has received some questions about calculating and 
developing a base monthly rental. Developing a base monthly rental 
requires information on costs of utilities. The question that arises is 
whether the allowance in Sec.  24.402(b)(1)(i) of using the ``. . . 
estimated average monthly cost of utilities for a comparable 
replacement dwelling'' can be applied, as opposed to the actual utility 
costs, when determining base monthly rental of the displacement 
dwelling. The FHWA believes that Agencies should attempt to secure 
actual costs of utilities from the displaced person in order to 
calculate and determine base monthly rental, to the extent practicable. 
Should those costs not be available, the Agency should so document its 
file and then utilize an estimate to develop a base monthly rental at 
the displacement dwelling. The FHWA invites comments and suggestions as 
to what estimates may best approximate actual monthly utility costs and 
what additional guidance or support may be needed in meeting the 
requirements of this paragraph.

Section 24.402(b)(2) Rental Assistance Payments

    The FHWA is proposing to revise the low income calculation example 
in the appendix by striking reference to ``(a)(14)'' and inserting to 
refer to the definition of ``household income'' in Sec.  24.2(a).

Section 24.402(b)(3) Manner of Disbursement

    The FHWA proposes to add the word ``replacement'' to housing in 
this paragraph to clarify the type of housing covered. The sentence 
states that the full amount of the rental assistance payment vests with 
a tenant regardless of the later condition or location of the 
replacement dwelling.

Section 24.402(c) Down Payment Assistance Payment

    Section 204 of the Uniform Act sets criteria for when 90-day 
tenants and certain others displaced from a dwelling are eligible for a 
payment for rental assistance or down payment assistance. Section 
1521(c)(1) of MAP-21 amends Section 204(c) of the Uniform Act by 
increasing the statutory limit for down payment assistance to $7,200. 
The FHWA proposes to update the amount listed in this paragraph and the 
appendix accordingly.
    The FHWA also proposes to modify this paragraph by deleting ``180 
days'' and inserting ``90 days'' in each place it appears in this 
paragraph and appendix. The FHWA also proposes to add clarifying 
language in the appendix to describe rental assistance payment 
eligibilities for a displaced homeowner who fails to meet the 90-day 
occupancy requirements.

Section 24.403(a)(1) Additional Rules Governing Replacement Housing 
Payments

    Comparable replacement housing must be inspected whenever possible. 
The selected comparable replacement dwelling should be inspected with a 
walk through or physical inspection. Reliance on an exterior visual 
inspection of comparables, or examination and review of an MLS 
listing's details, does not, in most cases, constitute a full DSS 
inspection as required by the regulation and may not reveal 
deficiencies in a property that would render it not decent, safe, and 
sanitary.
    The FHWA proposes to modify language in this paragraph to require 
that Agencies inform displaced persons in writing of the reason the 
full DSS inspection of the comparable replacement dwelling was not made 
and that, should a displaced person select one of the comparable 
dwellings as a replacement dwelling, a replacement housing payment 
cannot be made until a DSS inspection is made of that dwelling.
    The FHWA also proposes to add a new item to appendix A, Section 
24.205(c)(2)(ii)(C), explaining what

[[Page 69483]]

constitutes a DSS inspection and a further discussion of the 
requirement that an Agency must make full disclosure and explanation to 
the displaced person if the comparable replacement dwelling did not 
receive a full DSS inspection.
    The FHWA also is proposing to change the sentence in the regulation 
``if available, at least three comparable replacement dwellings shall 
be examined'' to ``shall be considered.'' The FHWA also proposes to add 
an appendix clarification at Section 24.403(a)(1) that the term 
``examined'' does not necessarily equate to ``inspected'' for the 
payment computation.

Section 24.403(a)(3) Acquisition of a Portion of a Typical Residential 
Property

    The FHWA has received questions regarding the term ``buildable 
lot,'' in particular regarding circumstances when a lot might not be 
buildable but the Agency determines it does have economic value to the 
owner and/or the market. The FHWA believes clarification of the term 
buildable lot is warranted and thus proposes to replace the phrase ``is 
a buildable lot'' with the phrase ``and the Agency determines that the 
remainder has economic value to the owner, which more accurately 
describes these remainders.
    In the past, some Agencies, when a remainder had economic value to 
the owner or market, would allow a displaced person to decide to retain 
the ``buildable lot'' or remainder and would calculate a replacement 
housing eligibility based on only the portion of the property that the 
Agency was acquiring. This could cause a substantial increase in 
calculated eligibility or a windfall by virtue of the property owner 
electing to retain the remainder. The FHWA believes that it is more 
reasonable to allow Agencies the option to offer to purchase the 
remainder and to base the replacement housing eligibility on the offer 
for the entire parcel regardless of the owner's decision to sell or 
retain the remainder.
    The FHWA also proposes to offer a sample calculation and to add 
language to appendix A, Section 24.403(a)(3), to explain that the 
purpose of this paragraph is to clarify when to apply this calculation 
method and how to correctly calculate relocation eligibility and 
payments. Also in appendix A, Section 24.403(a)(3), FHWA proposes to 
explain that if an Agency presents a written offer to acquire the whole 
parcel, the price differential portion of the replacement housing 
payment should be based upon the difference between the comparable 
replacement dwelling and the Agency's written offer to acquire the 
whole parcel. Under the proposed changes, property owners may elect to 
retain the remainder, but the decision to do so would not require a 
recalculation of relocation assistance eligibility.

Subpart F--Mobile Homes

    In the 2005 rulemaking, FHWA reorganized the mobile home section to 
streamline and better describe the requirements for determining 
eligibility and calculating benefits for mobile home occupants. We 
continue to receive questions which point to an undue complexity in 
both determining eligibility and calculating benefits in this subpart. 
The FHWA believes that the majority of the questions arise because 
there is a two-part benefit determination process that considers the 
dwelling and the site the mobile home is on as independent 
eligibilities. Because they are independent eligibilities (for example, 
a displaced person could be a dwelling owner and a tenant on the land), 
the permutations and combinations of eligibilities and related policy 
questions about proper application of benefits are complex and 
unwieldy. The FHWA has several FAQs on the FHWA website \10\ to address 
these issues but continues to receive questions about the determination 
and calculation of benefits.
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    \10\ https://www.fhwa.dot.gov/real_estate/.
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    During the development of this NPRM, FHWA conducted several 
meetings with its Federal Agency partners to identify methods of 
restructuring and reorganizing Subpart F. Several proposed changes were 
considered but ultimately not adopted. One method of clarifying mobile 
home occupant payment eligibility and computation would be based on the 
displaced person's ownership or rental of the mobile home dwelling 
(dwelling test). If the displaced person owns the mobile home, he or 
she would be considered an owner regardless of whether he or she owns 
or rents the site, and, as a dwelling owner, would not be eligible for 
a utility payment. If the displaced person is a tenant in the mobile 
home, he or she would be a tenant regardless of whether he or she owns 
or rents the site, and, as such, would be eligible for a utility 
payment. Ultimately this approach was not included in this NPRM. Some 
Agencies were concerned that the dwelling test would reduce overall 
benefits available to displaced mobile home occupants under the current 
two-part eligibility calculation method and specifically to those who 
are displaced low income mobile home occupants.
    The FHWA would like comments and suggestions on methods to 
reorganize and streamline the calculation and determination of benefits 
for displaced mobile home occupants, or whether further changes are 
warranted. The FHWA is interested in comments on whether the dwelling 
test would streamline and improve the process of calculating and 
determining benefits for a mobile home occupant, why and how would 
benefits be reduced using the dwelling test for mobile home occupants, 
examples of how and why the current regulation and method of benefit 
determinations work well, or have not worked well and implementation 
challenges which the current rule creates.

Section 24.502 Replacement Housing Payment for 90-Day Mobile Homeowner 
Displaced From a Mobile Home, and/or From the Acquired Mobile Home Site

    Section 1521(b)(2) of MAP-21 amends Section 203(a)(1) of the 
Uniform Act by reducing the eligibility requirement from 180 days to 90 
days the number of days a person must have owned and occupied a 
displacement dwelling in order to be eligible for a replacement housing 
payment. The FHWA proposes to update this paragraph accordingly.

Section 24.502(a) Eligibility

    Section 1521(b)(1) of MAP-21 amends Section 203(a)(1) of the 
Uniform Act by raising the statutory limit for replacement housing 
payments to $31,000. The FHWA proposes to modify this paragraph by 
deleting $22,500 and inserting $31,000 in each place it appears.

Section 24.502(b) Replacement Housing Payment Computation for a 90-Day 
Owner That Is Displaced From a Mobile Home

    Section 1521(a)(1) of MAP-21 amends Section 203(a)(1) of the 
Uniform Act by reducing the number of days a homeowner-occupant must 
have owned and occupied a displacement dwelling in order to be eligible 
for a replacement housing payment from 180 days to 90 days. The FHWA 
proposes to update this paragraph accordingly.

Section 24.502(c) Rental Assistance Payment for a 90-Day Owner-Occupant 
Displaced From a Leased or Rented Mobile Home Site

    Section 1521(b)(2) of MAP-21 amends Section 203(a)(1) of the 
Uniform Act by reducing the eligibility requirement for the number of 
days a person must have owned and occupied a displacement

[[Page 69484]]

dwelling in order to be eligible for a replacement housing payment from 
180 days to 90 days. The FHWA proposes to update this section and the 
appendix accordingly.
    This paragraph of the regulation was not substantially changed 
except to clarify that the base monthly rent for the displacement site 
shall be the actual cost paid to the landlord for the site. If the 
tenant paid little or no rent, the new regulation states that the 
market rent is to be used, unless it would result in a hardship to the 
displaced person.

Section 24.502(d) Owner-Occupant Not Displaced From a Mobile Home

    This paragraph was not substantially changed. The FHWA continues to 
believe that if a mobile home is personal property and may be 
relocated, but the owner elects not to move it, that the owner is not 
entitled to a replacement housing payment (RHP) for the purchase of a 
replacement mobile home, but that they are entitled to moving costs.

Section 24.503 Replacement Housing Payment for 90-Day Mobile Home 
Tenants and Certain Others

    Section 1521(c)(1) of MAP-21 amends Section 204(a) of the Uniform 
Act by increasing the statutory limit for replacement housing payment 
to tenants to $7,200. The FHWA proposes to update this section 
accordingly.
    The FHWA also proposes to change this section heading from ``90-day 
mobile home occupants,'' which included tenants or owner-occupants, to 
``tenants and certain others'' since all possible entitlements for 90-
day owner-occupants are now addressed in Sec.  24.401. This section now 
addresses only 90-day tenants ``and certain others'' to cover displaced 
persons under Sec.  24.404, housing of last resort. The FHWA proposes 
this change because the heading ``Tenants and certain others'' is 
contained in the statutory language. Those persons may not meet length 
of occupancy requirements, or a project may not be able to proceed on a 
timely basis, because replacement rental dwellings are not available 
within the monetary limits for those owners and tenants, as specified 
in Sec. Sec.  24.401-24.402. When these situations arise, the Agency 
provides additional or alternative assistance under the section housing 
of last resort, which then may include a calculation of a replacement 
rental assistance payment covering 42 months.
    A displaced person may claim a rental assistance payment to apply 
it to the purchase of a DSS conventional dwelling or mobile home. The 
FHWA also proposes to add language to appendix A, Section 24.503, to 
clarify that the combined mobile home and site replacement housing 
payment cannot exceed the cost of the actual replacement dwelling or 
site.

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 may 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 and 
after DOT has had the opportunity to review the comments submitted.
    The FHWA filed a redline version of 49 CFR part 24 in the docket to 
show all changes to the regulation text and facilitate public review 
and comment.

Executive Order 12866 (Regulatory Planning and Review), Executive Order 
13563 (Improving Regulation and Regulatory Review), Executive Order 
13771 (Reducing Regulations and Controlling Regulatory Costs), and DOT 
Regulatory Policies and Procedures

    Executive Orders (E.O.) 12866 and 13563 direct Agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). This 
proposed rule is a significant regulatory action within the meaning of 
E.O. 12866 and DOT's regulatory policies and procedures (44 FR 11032). 
This action complies with EOs 12866, 13563, and 13771 to improve 
regulation.
    A more detailed discussion of the economic analysis associated with 
this rulemaking can be found in the Regulatory Impact Analysis, which 
is available in the docket. The FHWA invites comments on its cost 
estimates and discussion of benefits. Many of the changes that this 
rule proposes are requirements mandated by MAP-21, which increased the 
statutory limits of relocation residential and business benefit 
eligibility and reduced the length of occupancy requirements prior to 
initiation of negotiations for homeowners from 180 days to 90 days. 
This NPRM also proposes to streamline program requirements and carry 
out a comprehensive update of 49 CFR part 24 to better align the 
language of the regulations with current program needs and best 
practices. This proposed rule would also address changes identified by 
the public in response to the DOT's initiative on implementation of 
January 18, 2011, E.O. 13563, Improving Regulation and Regulatory 
Review in Federal Register Notice 82 FR 45750 published on October 2, 
2017.\11\ The FHWA believes that the proposed streamlining and updating 
in this NPRM will result in a reduction of Federal requirements and 
will afford the States and Federal Agencies subject to the Uniform Act 
new flexibilities to more efficiently acquire real property and 
relocate displaced persons.
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    \11\ https://www.federalregister.gov/documents/2017/10/02/2017-21101/notification-of-regulatory-review.
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    The FHWA has had an ongoing dialog with stakeholders and has 
developed the proposed rule in a manner that balances stakeholder 
concerns and practical implementation issues to allow SDOTs and Federal 
Agency recipients to utilize the new flexibilities while minimizing 
their effects on existing requirements and procedures.
    The Uniform Act provides important protections and assistance for 
people affected by federally-funded projects. Congress passed the law 
to safeguard people whose real property is acquired or who move from 
their homes, businesses, or farms as a result of projects receiving 
Federal funds. The most recent Federal act authorizing surface 
transportation spending modified the statutory payment levels for which 
displaced persons may be eligible under the Uniform Act's implementing 
regulations, necessitating the current proposed rulemaking. In 
addition, FHWA is proposing to make changes to wording and section 
organization to better reflect the Federal experience implementing 
Uniform Act programs. At the Federal level, 18 departments and Agencies 
are subject to the Uniform Act and their input is reflected in the 
proposed changes.
    The costs of the proposed rule for all Uniform Act Agencies over a 
10-year analysis period from 2019 to 2028 are estimated to be: $1.8 
million when discounted at 7 percent and $2.0 million when discounted 
at 3 percent. The bulk of the costs are related to updating program 
materials to reflect the changes in the regulation.
    The benefits of the proposed rule primarily relate to improved 
equity and fairness to entities that are displaced

[[Page 69485]]

from their properties or that move as a result of projects receiving 
Federal funds. For example, the proposed rule raises the statutory 
maximums for payments to displaced businesses to assist with the 
reestablishment of the business. There is strong evidence that 
businesses experience reestablishment costs well above the current 
maximum amount.\12\ Raising the maximum payment levels, as required by 
statute, will compensate those businesses more fairly and equitably for 
the negative impacts they experience as a result of a Federal or 
federally-assisted project. However, the fairness and equity benefits 
of the proposed rule cannot be quantified or monetized. The higher 
level of payments may also contribute to more businesses being able to 
successfully reestablish after displacement.
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    \12\ The FHWA and other Agencies have conducted studies over the 
years which conclude that benefit levels are inadequate. Examples 
include FHWA's business relocation retrospective study: https://www.fhwa.dot.gov/real_estate/publications/business_relocation_assistance/index.cfm and GAO report GAO-07-28GA, 
Eminent Domain, https://www.gao.gov/assets/260/253929.pdf.
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    The proposed rule contains changes, such as a requirement for 
annual reporting, that can be expected to improve transparency, and, 
therefore, oversight of the program. Again, that benefit cannot be 
quantified or monetized. The proposed rule changes also provide clarity 
on how to implement the Uniform Act and offer Agencies additional 
options for streamlining the administration of their Uniform Act 
programs. These benefits have not been quantified. Some minor 
administrative cost savings have been estimated. The FHWA was the only 
Agency that had a detailed dataset available for its Uniform Act 
program, and, therefore, only the administrative cost savings to FHWA 
have been estimated here. Based on communications with other Uniform 
Act Agencies, FHWA analysts believe that FHWA has the largest Uniform 
Act program; however, other Agencies have sizable programs, as well. 
Therefore, the total cost savings across all Agencies will likely be 
larger.
    The table below offers a summary of the costs and benefits of the 
proposed rule over the 10-year analysis period. Given that the benefits 
of the rule related to equity and fairness have not been quantified, it 
would be misleading to report a calculation of net benefits for this 
proposed rule. Nonetheless, the benefits related to equity and fairness 
are believed to be sufficient to justify the modest cost of the rule.

                                               Summary of Costs and Benefits for Analysis Period 2019-2028
--------------------------------------------------------------------------------------------------------------------------------------------------------
              Item                        Discounted 7%                 Discounted 3%                 Annualized 7%                 Annualized 3%
--------------------------------------------------------------------------------------------------------------------------------------------------------
Costs:
    Home Equity Conversion        $11,947.....................  $15,073.....................  $1,701......................  $1,767.
     Mortgage (HECM).
    Revising Program Material...  1,787,731...................  1,947,651...................  254,533.....................  228,324.
    Federal Agency Reporting      166,290.....................  209,804.....................  23,676......................  24,595.
     Requirement.
    Revising Max. RHP/RAP (FHWA   (160,025)...................  (204,380)...................  (22,784)....................  (23,960).
     Cost Savings).
    Homeowner 90 Eligibility      (7,040).....................  (8,882).....................  (1,002).....................  (1,041).
     (FHWA Cost Savings).
    Appraisal Waivers...........  Not Quantified..............  Not Quantified..............  Not Quantified..............  Not Quantified.
    Third Tier of Waiver          Not Quantified..............  Not Quantified..............  Not Quantified..............  Not Quantified.
     Valuations.
    Use of Single Agents........  Not Quantified..............  Not Quantified..............  Not Quantified..............  Not Quantified.
    Inspection of Comparable      Not Quantified..............  Not Quantified..............  Not Quantified..............  Not Quantified.
     Housing.
    Clarity & Streamlining......  Not Quantified..............  Not Quantified..............  Not Quantified..............  Not Quantified.
                                 -----------------------------------------------------------------------------------------------------------------------
        Total Costs *...........  1,798,903...................  1,959,266...................  256,123.....................  229,686.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Benefits:
    Equity & Fairness...........  Not Quantified..............  Not Quantified..............  Not Quantified..............  Not Quantified.
    Program Oversight...........  Not Quantified..............  Not Quantified..............  Not Quantified..............  Not Quantified.
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Totals may not match sums due to rounding.

    The proposed rule would result in additional payments made to 
displaced businesses. However, these expenditures are reimbursements 
for costs that these businesses incur regardless of the proposed rule 
and are therefore considered transfers in the context of a benefit-cost 
analysis. The table below presents the estimated amount of these 
transfers for FHWA's Uniform Act program. The FHWA was the only Agency 
that provided data upon which to base estimates. Therefore, the 
magnitude of the change in transfers for all Federal Agencies may be 
larger than is reported here.

                                              Transfers to Displaced Persons for Analysis Period 2019-2028
--------------------------------------------------------------------------------------------------------------------------------------------------------
              Item                        Discounted 7%                 Discounted 3%                 Annualized 7%                 Annualized 3%
--------------------------------------------------------------------------------------------------------------------------------------------------------
Residents:
    Revising Replacement Housing  $1,792,926..................  $2,272,671..................  $255,272....................  $266,426.
     and Rental Assistance
     Payments.
    Homeowner 90-day Eligibility  Not Quantified..............  Not Quantified..............  Not Quantified..............  Not Quantified.
    Home Equity Conversion        Not Quantified..............  Not Quantified..............  Not Quantified..............  Not Quantified.
     Mortgages.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Non-residential displaced
 persons:
    Reimbursement for Updating    Not Quantified..............  Not Quantified..............  Not Quantified..............  Not Quantified.
     Other Media.
    Search Expenses.............  8,117,037...................  10,285,293..................  1,164,226...................  1,249,723.
    Re-Establishment Expenses...  82,335,367..................  104,271,810.................  11,722,704..................  12,223,837.
    Fixed Payments..............  22,649,659..................  28,709,348..................  3,224,802...................  3,365,611.
                                 -----------------------------------------------------------------------------------------------------------------------

[[Page 69486]]

 
        Total...................  114,954,990.................  145,539,123.................  16,357,004..................  17,061,625.
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Totals may not match sums due to rounding.

Regulatory Flexibility Act

    In compliance with the Regulatory Flexibility Act (Pub. L. 96-354, 
5 U.S.C. 60l-612), FHWA has evaluated the effects of this proposed rule 
on small entities and anticipates that this action would not have a 
significant economic impact on a substantial number of small entities, 
which includes SDOTs, Local Public Agencies, other State governmental 
Agencies or recipients and subrecipients of Federal Agencies subject to 
this regulation. This action proposes to update the government-wide 
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 
the small number displaced small businesses impacted by the Uniform 
Relocation Act. We anticipate this proposal would have a positive 
impact on those relatively few small businesses that are affected by 
government acquisition of real property. We anticipate the number of 
small businesses potentially impacted at all by this proposed rule to 
be small. For example, between 2013 to 2017 FHWA had an average of 
1,511 non-residential relocations annually. The FHWA does not have the 
data to determine how many of the 1,511 non-residential moves were 
small businesses, but even if one were to assume each of those moves 
impacted a small business, that impact would account for .005 percent 
of all U.S. small businesses.\13\ 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, FHWA certifies that 
this action would not have a significant economic impact on a 
substantial number of small entities.
---------------------------------------------------------------------------

    \13\ The United States Small Business Administration's 2018 
Small Business Profile estimates 30.2 million small businesses in 
the United States.
---------------------------------------------------------------------------

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, 109 Stat. 48). 
This proposed rule will not result in the expenditure by State, local, 
and tribal governments, in the aggregate, or by the private sector, of 
$155 million or more in any 1 year (2 U.S.C. 1532). Further, in 
compliance with the Unfunded Mandates Reform Act of 1995, FHWA would 
evaluate any regulatory action that might be proposed in subsequent 
stages of the proceeding to assess the effects on State, local, and 
tribal governments and the private sector. In addition, the definition 
of ``Federal Mandate'' in the Unfunded Mandates Reform Act excludes 
financial assistance of the type in which State, local, or tribal 
governments have authority to adjust their participation in the program 
in accordance with changes made in the program by the Federal 
Government.

Executive Order 13132 (Federalism Assessment)

    Executive Order 13132 requires Agencies to ensure meaningful and 
timely input by State and local officials in the development of 
regulatory policies that may have a substantial, direct effect on the 
States, on the relationship between the national government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government. This proposed action has been analyzed in 
accordance with the principles and criteria contained in E.O. 13132, 
and FHWA has preliminarily determined that this proposed action would 
not warrant the preparation of a federalism assessment. The FHWA has 
also determined that this proposed action would not preempt any State 
law or State regulation or affect any State's ability to discharge 
traditional State governmental functions.

Executive Order 13175 (Tribal Consultation)

    The FHWA has analyzed this action under E.O. 13175 and believes 
that the proposed action would not have substantial direct effects on 
one or more Indian tribes; would not impose substantial direct 
compliance costs on tribal governments; and, would not preempt tribal 
law. Therefore, a tribal summary impact statement is not required.

Executive Order 13211 (Energy Effects)

    The FHWA has analyzed this action under E.O. 13211, Actions 
Concerning Regulations That Significantly Affect Energy Supply, 
Distribution, or Use. The FHWA has determined that the proposed action 
is not a significant energy action under that order because it is not 
likely to have a significant adverse effect on the supply, 
distribution, or use of energy. Therefore, a Statement of Energy 
Effects under E.O. 13211 is not required.

Executive Order 12372 (Intergovernmental Review)

    The regulations implementing E.O. 12372 regarding intergovernmental 
consultation on Federal programs and activities apply to this program. 
Local entities should refer to the Catalog of Federal Domestic 
Assistance Program Number 20.205, Highway Planning and Construction, 
for further information.

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 OMB for 
collections of information they conduct, sponsor, or require through 
regulations. The PRA applies to Federal Agencies' collections of 
information imposed on 10 or more persons. ``Persons'' include a State, 
territorial, tribal, or local government, or branch thereof, or their 
political subdivisions.
    This NPRM would call for a collection of information under the PRA. 
As defined in 5 CFR 1320.3(c), ``collection of information'' comprised 
of reporting, recordkeeping, monitoring, posting, labeling, and other 
similar actions. This action contains amendments to the existing 
information collection requirements previously approved under OMB 
Control Number 2125-0586. The title and description of the information 
collection, a description of those who must collect the information, 
and an estimate of the total annual burden follow and are outlined in 
full in the RIA contained in the docket for this rulemaking.
    The Uniform Act provides important protections and assistance for 
people affected by federally funded projects. Congress passed the law 
to safeguard people whose real property is acquired or who move from 
their homes,

[[Page 69487]]

businesses, nonprofit organizations, or farms as a result of projects 
receiving Federal financial assistance. The Moving Ahead for Progress 
in the 21st Century Act (MAP-21) modified the statutory payment levels 
for which displaced persons may be eligible under the Uniform Act's 
implementing regulations, necessitating the current proposed 
rulemaking. Additionally, FHWA is proposing to make changes to wording 
and section organization to better reflect the Federal experience 
implementing Uniform Act programs, since the last comprehensive 
rulemaking for 49 CFR part 24 occurred in 2005.
    This proposed requirement would amend an existing collection of 
information by increasing the number of instances requiring information 
to be collected under OMB control number 2125-0586. The burden hours 
reserved under these requirements are not sufficient to cover the 
additional in-depth updates resulting from regulatory revisions; 
thereby necessitating this request for additional burden hours. The 
hours requested are in addition to the hours already set aside.
    Agencies conducting a program or project under the Uniform Act must 
carry out their legal responsibilities to affected property owners and 
displaced persons. Recipients and subrecipients must collect 
information in order to determine, document and provide Uniform Act 
benefits and assistance. Federal agencies are also required to develop 
and provide to the lead agency, FHWA, an annual summary report the 
describes the Uniform Act activities conducted by the Federal agency 
and their funding recipients.
    The FHWA does not have available to it information which would 
allow for the calculation of burden hours for each Federal agencies 
administration and oversight of the government-wide program. Each 
Federal agency will separately develop information collection requests 
for their program's administration and oversight. The FHWA has 
developed a separate regulatory impact analysis which documents the 
costs for its program administration and oversight. That analysis is 
included as part of the 49 CFR part 24 NPRM publication.
    The FHWA can estimate the one-time government-wide cost of 
implementing the new provisions of this rule to be 37,800 hours. This 
estimate includes costs and benefits for the necessary updates and 
revisions to program materials including operations manuals. The FHWA 
bases this estimate on approximately 168 respondent's efforts to 
perform the necessary updates and revisions. The estimated burden hours 
are for a one-time update and result from the publication of a final 
rule.
    The FHWA is required to submit this proposed collection of 
information to OMB for review and approval and, accordingly, seeks 
public comments. Interested parties are invited to send comments 
regarding any aspect of these information collection requirements, 
including, but not limited to: (1) Whether the collection of 
information is necessary for the performance of the functions of the 
FHWA, including whether the information has practical utility; (2) the 
accuracy of the estimated burden; (3) ways to enhance the quality, 
utility, and clarity of the collection of information; and (4) ways to 
minimize the collection burden without reducing the quality of the 
information collected.

Executive Order 12988 (Civil Justice Reform)

    This action meets applicable standards in sections 3(a) and 3(b)(2) 
of E.O. 12988, Civil Justice Reform, to minimize litigation, eliminate 
ambiguity, and reduce burden.

Executive Order 12898 (Environmental Justice)

    Executive Order 12898, Federal Actions to Address Environmental 
Justice in Minority Populations and Low-Income Populations, and DOT 
Order 5610.2(a) (the DOT Order), 91 FR 27534 (May 10, 2012) \14\ 
require DOT Agencies to achieve environmental justice (EJ) as part of 
their mission by identifying and addressing, as appropriate, 
disproportionately high and adverse human health or environmental 
effects, including interrelated social and economic effects, of their 
programs, policies, and activities on minority populations and low-
income populations in the United States. The DOT Order requires DOT 
Agencies to address compliance with E.O. 12898 and the DOT Order in all 
rulemaking activities. In addition, FHWA has issued additional 
documents relating to administration of E.O. 12898 and the DOT Order. 
On June 14, 2012, FHWA issued an update to its EJ order, FHWA Order 
6640.23A, FHWA Actions to Address Environmental Justice in Minority 
Populations and Low Income Populations (the FHWA Order).\15\
---------------------------------------------------------------------------

    \14\ Available online at www.fhwa.dot.gov/enviornment/environmental_justice/ej_at_dot/order_56102a/index.cfm.
    \15\ Available online at www.fhwa.dot.gov/legsregs/directives/orders/664023a.htm.
---------------------------------------------------------------------------

    The FHWA has evaluated this proposed rule under the E.O., the DOT 
Order, and the FHWA Order. The FHWA has determined that the proposed 
regulations, if finalized, would not cause disproportionately high and 
adverse human health and environmental effects on minority or low 
income populations. The proposed regulations, if finalized, would 
establish procedures and requirements for agencies and others when 
acquiring, managing, and disposing of real property interests. The EJ 
principles, in the context of acquisition, management, and disposition 
of real property, should be considered during the planning and 
environmental review processes for the particular proposal. The FHWA 
will consider EJ when it makes a future funding or other approval 
decision on a project-level basis.

Executive Order 13045 (Protection of Children)

    The FHWA has analyzed this action under E.O. 13045, Protection of 
Children from Environmental Health Risks and Safety Risks. The FHWA 
certifies that this proposed action would not concern an environmental 
risk to health or safety that might disproportionately affect children.

Executive Order 12630 (Taking of Private Property)

    The FHWA does not anticipate that this proposed action would effect 
a taking of private property or otherwise have taking implications 
under E.O. 12630, Governmental Actions and Interference with 
Constitutionally Protected Property Rights. This action proposes to 
update the government-wide regulation that provides assistance for 
persons displaced by government acquisition of real property. This 
action updates this regulation to reflect increases in benefit levels 
for displaced persons and to improve the Agencies' service to 
individuals and businesses affected by Federal or federally assisted 
projects.

National Environmental Policy Act

    Agencies are required to adopt implementing procedures for NEPA 
that establish specific criteria for, and identification of, three 
classes of actions: Those that normally require preparation of an 
environmental impact statement; those that normally require preparation 
of an environmental assessment; and; those that are categorically 
excluded from further NEPA review (40 CFR 1507.3(b)). The proposed 
action is the adoption of regulations that provide the policies, 
procedures, and requirements for acquisition of real property interests 
for Federal and federally assisted projects. The proposed action has no 
potential for environmental impacts until the

[[Page 69488]]

regulations, if adopted, are applied at the project level. The FHWA 
would have an obligation to evaluate the potential environmental 
impacts of such a future project-level action if the action constitutes 
a major Federal action under NEPA.
    This proposed action qualifies for categorical exclusions under 23 
CFR 771.117(c)(20) (promulgation of rules, regulations, and directives) 
and 771.117(c)(1) (activities that do not lead directly to 
construction). The FHWA has evaluated whether the proposed action would 
involve unusual circumstances or extraordinary circumstances and has 
determined that this proposed action would not involve such 
circumstances. As a result, FHWA finds that this proposed rulemaking 
would not result in significant impacts on the human environment.

Regulation Identification Number

    A 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

    Appraisal, Appraisal review, Just compensation, Real property 
acquisition, Relocation assistance, Reporting and recordkeeping 
requirements, Transportation, Waiver valuations.

    Issued on November 19, 2019 under authority delegated in 49 CFR 
1.85(d)(7):
Nicole R. Nason,
Administrator, Federal Highway Administration.


0
In consideration of the foregoing, FHWA proposes to revise title 49, 
Code of Federal Regulations, part 24 as follows:

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 in this part.
24.8 Compliance with other laws and regulations.
24.9 Recordkeeping and reports.
24.10 Appeals.
24.11 Adjustments of relocation benefits.
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 nonresidential eligible expenses.
24.304 Reestablishment expenses--nonresidential moves.
24.305 Fixed payment for moving expenses--nonresidential moves.
24.306 Discretionary utility relocation payments.
Subpart E--Replacement Housing Payments
24.401 Replacement housing payment for 90-day homeowner-occupants.
24.402 Replacement housing payment for 90-day tenants and certain 
others.
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 a 90-day mobile homeowner 
displaced from mobile home.
24.503 Rental assistance payment for 90-day mobile home tenants and 
certain others.
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 1.85.

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.) (Uniform Act), 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 the regulations in this part 
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:
    Agency. The term Agency means any entity utilizing Federal funds or 
Federal financial assistance for a project or program that acquires 
real property or displaces a person.
    (i) Federal Agency. The term Federal Agency means any department, 
Agency, or instrumentality in the executive branch of the United States 
Government, any wholly owned U.S. 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.
    (ii) State Agency. The term State Agency means any department, 
Agency or instrumentality of a State or of a political subdivision of a 
State, any department, Agency, or instrumentality of two or more States 
or of two or more political subdivisions of a State or States, and any 
person who has the authority to acquire property by eminent domain 
under State law.
    Alien not lawfully present in the United States. The phrase alien 
not

[[Page 69489]]

lawfully present in the United States means an alien who is not 
``lawfully present'' in the United States.
    (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 Secretary of Homeland; and
    (ii) An alien who is present in the United States after the 
expiration of the period of stay authorized by the Secretary of 
Homeland Security or who otherwise violates the terms and conditions of 
admission, parole, or authorization to stay in the United States.
    Appraisal. The term appraisal means a written statement 
independently and impartially prepared by a qualified appraiser setting 
forth an opinion of defined value of an adequately described property 
as of a specific date, supported by the presentation and analysis of 
relevant market information.
    Business. The term business means any lawful activity, except a 
farm operation, that is conducted:
    (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.
    Citizen. The term citizen for purposes of this part includes both 
citizens of the United States and noncitizen nationals.
    Comparable replacement dwelling. The term comparable replacement 
dwelling means a dwelling which is:
    (i) Decent, safe, and sanitary as described in the definition of 
decent, safe, and sanitary in this paragraph (a);
    (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 of this part, 
Section 24.2(a) Comparable replacement dwelling);
    (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 (ix) of this definition (see 
appendix A of this part, Section 24.2(a) Comparable replacement 
dwelling); and
    (viii) Within the financial means of the displaced person:
    (A) A replacement dwelling purchased by a homeowner in occupancy at 
the displacement dwelling for at least 90 days prior to initiation of 
negotiations (90-day homeowner) is considered to be within the 
homeowner's financial means if the homeowner will receive the full 
price differential as described in Sec.  24.401(c), all increased 
mortgage interest costs as described at Sec.  24.401(d) and all 
incidental expenses as described at Sec.  24.401(e), plus any 
additional amount required to be paid under Sec.  24.404.
    (B) A replacement dwelling rented by an eligible displaced person 
is considered to be within his or her financial means if, after 
receiving rental assistance under this part, the person's monthly rent 
and estimated average monthly utility costs for the replacement 
dwelling do not exceed the person's base monthly rental for the 
displacement dwelling as described at Sec.  24.402(b)(2).
    (C) For a displaced person who is not eligible to receive a 
replacement housing payment because of the person's failure to meet 
length-of-occupancy requirements, comparable replacement rental housing 
is considered to be within the person's financial means if an Agency 
pays that portion of the monthly housing costs of a replacement 
dwelling which exceeds the person's base monthly rent for the 
displacement dwelling as described in Sec.  24.402(b)(2). Such rental 
assistance must be paid under Sec.  24.404, Replacement housing of last 
resort.
    (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. 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, subject to the eligibility requirements 
of the government housing assistance program. An 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 and associated utilities after the applicable government 
assistance has been applied. In determining comparability of housing 
under this part:
    (A) A public housing unit may qualify as a comparable replacement 
dwelling only for a person displaced from a public housing unit.
    (B) 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 
unit.
    (C) 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. (See appendix A of 
this part, Section 24.2(a) Comparable replacement dwelling.)
    Contribute materially. The term contribute materially means that 
during the 2 taxable years prior to the taxable year in which 
displacement occurs, or during such other period as the Agency 
determines to be more equitable, a business or farm operation:
    (i) Had average annual gross receipts of at least $5,000; or

[[Page 69490]]

    (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. (See appendix A of this part, 
Section 24.305(e) Average annual net earnings of a business or farm 
operation.)
    Decent, safe, and sanitary dwelling. The term decent, safe, and 
sanitary (DSS) dwelling means a dwelling which meets the requirements 
of paragraphs (i) through (vii) of this definition or the most 
stringent of the local housing code, Federal Agency regulations, or the 
Agency's regulations or written policy. The DSS dwelling shall:
    (i) Be structurally sound, weather tight, and in good repair;
    (A) Many local housing and occupancy codes require the abatement of 
deteriorating paint, including lead-based paint and lead-based paint 
dust, in protecting the public health and safety. Where such standards 
exist, they must be honored;
    (B) [Reserved]
    (ii) Contain a safe electrical wiring system adequate for lighting 
and other devices;
    (iii) 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;
    (iv) 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 
more stringent the Federal funding Agency requirements. In addition, 
the Federal funding agency shall follow the requirements for separate 
bedrooms for children of the opposite gender included in local housing 
codes or in the absence of local codes, the policies of such Agencies;
    (v) 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. When required by local code standards for residential 
occupancy, 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 (see appendix A of this part, Section 24.2(a), 
definition of DSS);
    (vi) Contains unobstructed egress to safe, open space at ground 
level; and
    (vii) 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 of this part, 
Section 24.2(a), definition of DSS.)
    Displaced person--(i) General. The term displaced person means, 
except as provided in paragraph (ii) of this definition, any person who 
moves from the real property or moves his or her personal property from 
the real property. (This includes a person who occupies the real 
property prior to its acquisition, but who does not meet the length of 
occupancy requirements of the Uniform Act as described at Sec. Sec.  
24.401(a) and 24.402(a)):
    (A) As a direct result of a written notice of intent to acquire, 
rehabilitate, and/or demolish (see Sec.  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 (i)(C) 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 required to move temporarily. 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 
requirement, policy, or guidance established by the Federal Agency 
funding the project (see appendix A of this part, Section 24.2(a)). At 
a minimum, for persons required to move on a temporary basis, Agencies 
must ensure that required services and assistance are provided (see 
Sec.  24.202(a)).
    (iii) 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 
Sec.  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) An owner-occupant who moves as a result of an acquisition of 
real property as described in Sec.  24.101(a)(2) or (b)(1) or (2), or 
as a result of the rehabilitation or demolition of the real property. 
(However, the displacement of a tenant as a direct result of any 
acquisition, rehabilitation or demolition for a Federal or federally 
assisted project is subject to this part.);
    (E) A person whom the Agency determines is not displaced as a 
direct result of a partial acquisition;
    (F) 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 written 
notification 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;
    (G) An owner-occupant who conveys his or her property, as described 
in Sec.  24.101(a)(2) or (b)(1) or (2), after being informed in writing 
that if a mutually satisfactory agreement on terms of the conveyance 
cannot be reached, the Agency will not acquire the property. In such 
cases, however, any resulting displacement of a tenant is subject to 
the regulations in this part;
    (H) A person who retains the right of use and occupancy of the real 
property for life following its acquisition by the Agency;
    (I) 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;
    (J) 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;
    (K) 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; or

[[Page 69491]]

    (L) Tenants required to move as a result of the sale of their 
dwelling to a person using Federal down payment assistance funds as 
they are defined in this section (See appendix A of this part, Section 
24.2(a)).
    (M) Temporary, daily, or emergency shelter occupants are typically 
not considered displaced persons. However, Agencies may determine that 
a person occupying a shelter is a displaced person due to factors which 
could include reasonable expectation of a prolonged stay, or other 
extenuating circumstances. At a minimum, Agencies shall provide 
advisory assistance to all occupants at initiation of negotiations. 
(See appendix A of this part, Section 24.2(a) (Displaced persons).)
    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 mobile home; or any other 
residential unit.
    Dwelling site. The term dwelling site means a land area that is 
typical in size for similar dwellings located in the same neighborhood 
or rural area. (See appendix A of this part, Section 24.2(a).)
    Farm operation. The term farm operation means any activity 
conducted solely or primarily for the production of one or more 
agricultural products or commodities, including timber, for sale or 
home use, and customarily producing such products or commodities in 
sufficient quantity to be capable of contributing materially to the 
operator's support.
    Federal down payment assistance. The term Federal down payment 
assistance means funds other than Uniform Act benefits provided to an 
individual for the purpose of purchasing and occupying a residence. 
(See appendix A of this part, Section 24.2(a).)
    Federal financial assistance. The term Federal financial assistance 
means a grant, loan, or contribution provided by the United States, 
except any Federal down payment assistance, tax credits such as the Low 
Income Housing Tax Credit (LIHTC), guarantee or insurance and any 
interest reduction payment to an individual in connection with the 
purchase and occupancy of a residence by that individual.
    Home Equity Conversion Mortgage (HECM) (also known as a reverse 
mortgage). A HECM is a first mortgage which provides for future 
payments to the homeowner based on accumulated equity and which a 
housing creditor is authorized to make under any Federal law or State 
constitution, law, or regulation. See 12 U.S.C. 1715z-20. It is a class 
of lien generally available to persons 62 years of age or older. HECMs 
do not require a monthly mortgage payment and can also be used to 
access a home's equity. The HECM becomes due when none of the original 
borrowers lives in the home, if taxes or insurance become delinquent, 
or if the property falls into disrepair.
    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 under 18, or full-time students who are 
students for at least 5 months of the year and are under the age of 24. 
(See appendix A of this part, Section 24.2(a), for examples of 
exclusions to income.)
    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, 
rehabilitate, or demolish 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 (Pub. L. 96-510, or Superfund) 
(CERCLA) 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 
a voluntary acquisition of real property described in Sec.  
24.101(b)(1) through (5), the initiation of negotiations means the 
actions described in paragraphs (i) and (ii) of this definition, except 
that the tenant is not eligible for relocation assistance under this 
part, until there is a binding written agreement between the Agency and 
the owner to purchase the real property. An option to purchase, 
conditional sale, or purchase agreement is not considered a binding 
agreement to purchase real property. (See appendix A of this part, 
Section 24.2(a).)
    Lead Agency. The term Lead Agency means the Department of 
Transportation acting through the Federal Highway Administration.
    Mobile home. The term mobile home includes manufactured homes and 
recreational vehicles used as residences. (See appendix A of this part, 
Section 24.2(a).)
    Mortgage. The term mortgage means such classes of liens as are 
commonly given to secure advances on, or the unpaid purchase price of, 
real property, under the laws of the State in which the real property 
is located, together with the credit instruments, if any, secured 
thereby.
    Nonprofit organization. The term nonprofit organization means an 
organization that is incorporated under the applicable laws of a State 
as a nonprofit organization, and exempt from paying Federal income 
taxes under section 501 of the Internal Revenue Code (26 U.S.C. 501).
    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 this section; or
    (iv) Any other interest, including a partial interest, which in the 
judgment of the Agency warrants consideration as ownership.

[[Page 69492]]

    Owner's designated representative. A property owner may designate a 
representative to receive all required notifications and documents from 
the Agency. The owner must provide the Agency a written notification 
which states that they will be designating a representative, provide 
that person's name and contact information and what if any notices or 
information, the representative is not authorized to receive.
    Person. The term person means any individual, family, partnership, 
corporation, or association.
    Program or project. The phrase program or project means any 
activity or series of activities undertaken by a Federal Agency or with 
Federal financial assistance received or anticipated in any phase of an 
undertaking in accordance with the Federal funding Agency guidelines.
    Recipient. The term recipient means a non-Federal entity that 
receives a Federal award directly from a Federal Agency to carry out an 
activity under a Federal program. The recipient is accountable to the 
Federal-funding Agency for the use of the funds and for compliance with 
applicable Federal requirements. The term recipient does not include 
subrecipients.
    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.
    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.  24.303 or 
Sec.  24.304.
    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.
    Subrecipient. The term subrecipient means a government Agency or 
legal entity that enters into an agreement with a recipient to carry 
out part or all of the activity funded by Federal program grant funds. 
A subrecipient is accountable to the recipient for the use of the funds 
and for compliance with applicable Federal requirements.
    Temporary, daily, or emergency shelter (shelter). The phrase 
temporary, daily, or emergency shelter (shelter) means any facility, 
the primary purpose of which is to provide a person with a temporary 
overnight shelter which does not generally allow prolonged or 
guaranteed occupancy. A shelter typically requires the occupants to 
remove their personal property and themselves from the premises on a 
daily basis, offers no guarantee of reentry in the evening, and does 
not meet the definition of dwelling as used in this part.
    Tenant. The term tenant means a person who has the temporary use 
and occupancy of real property owned by another.
    Uneconomic remnant. The term uneconomic remnant means a parcel of 
real property in which the owner is left with an interest after the 
partial acquisition of the owner's property, and which the Agency has 
determined has little or no value or utility to the owner.
    Uniform Act. The term Uniform Act or Act means the Uniform 
Relocation Assistance and Real Property Acquisition Policies Act of 
1970 (Pub. L. 91-646, 84 Stat. 1894; 42 U.S.C. 4601 et seq.), and 
amendments thereto.
    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 for the 
purpose of determining eligibility for assistance under the Uniform 
Act.
    Utility costs. The term utility costs means expenses for 
electricity, gas, other heating and cooking fuels, water, and sewer.
    Utility facility. The term utility facility means:
    (i) Any line, facility, or system for producing, transporting, 
transmitting, or distributing communications, cable, television, power, 
electricity, light, heat, gas, oil, crude products, water, steam, 
waste, storm water not connected with highway drainage, or any other 
similar commodity, including any fire or police signal system or street 
lighting system, which directly or indirectly serves the public; 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.
    (ii) The term shall also mean the utility company including any 
substantially owned or controlled subsidiary. For the purposes of this 
part the term includes those utility-type facilities which are owned or 
leased by a government Agency for its own use, or otherwise dedicated 
solely to governmental use. The term utility includes those facilities 
used solely by the utility which are part of its operating plant.
    Utility relocation. The term utility relocation means the 
adjustment of a utility facility required by the program or project 
undertaken by the Agency. It includes removing and reinstalling the 
facility, including necessary temporary facilities; 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.
    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:
    DOT (U.S. Department of Transportation).
    FEMA (Federal Emergency Management Agency).
    FHA (Federal Housing Administration).
    FHWA (Federal Highway Administration).
    FIRREA (Financial Institutions Reform, Recovery, and Enforcement 
Act of 1989).
    HLR (Housing of last resort).
    HUD (U.S. Department of Housing and Urban Development).
    MIDP (Mortgage interest differential payment).
    RHP (Replacement housing payment).
    STURAA (Surface Transportation and Uniform Relocation Act 
Amendments of 1987).
    UA or URA (Uniform Relocation Assistance and Real Property 
Acquisition Policies Act of 1970).
    USCIS (U.S. Citizenship and Immigration Service).
    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

[[Page 69493]]

payment under this part. (See appendix A of this part, 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, an 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 Agency must provide appropriate assurances that it 
will comply with the Uniform Act and this part. An Agency's assurances 
shall be in accordance with sections 210 and 305 of the Uniform Act. 
The Agency's section 305 assurances must contain specific reference to 
any State law which the Agency believes provides an exception to 
section 301 or 302 of the Uniform Act. If, in the judgment of the 
Federal Agency, Uniform Act compliance will be served, an 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 sections 210 and 305 
assurances in one document.
    (2) If a Federal Agency or recipient provides Federal financial 
assistance to a party or person causing displacement, such Federal 
Agency or recipient is responsible for ensuring compliance with the 
requirements of this part, notwithstanding the person's contractual 
obligation to the recipient to comply with the requirements of this 
part.
    (3) As an alternative to the assurance requirement described in 
paragraph (a)(1) of this section, a Federal Agency may provide Federal 
financial assistance to a recipient after it has accepted a 
certification by such recipient 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 recipient 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.)
    (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.

    (a) 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 (or by companies 
other than the United States Postal Service that provide the same 
function as certified mail with return receipts) and documented in 
Agency files. A Federal funding Agency may approve the use of 
electronic delivery of notices in lieu of the use of certified or 
registered first-class mail, return receipt requested, or personally 
served notices, when an Agency demonstrates a means to document receipt 
of such notices by the property owner or occupant.
    (b) An Agency requesting use of electronic delivery of notices must 
include the following safeguards:
    (1) A process to inform property owners and occupants that they 
must voluntarily elect to receive electronic notices.
    (2) A process to document and record when information is legally 
delivered in digital format. A date and timestamp must establish the 
date of delivery and receipt with an electronic record capable of 
retention.
    (3) A method to link the electronic signature with an electronic 
document in a way that can be used to determine whether the electronic 
document was changed subsequent to when an electronic signature was 
applied to the document.
    (4) A certification that use of electronic notices or signatures is 
consistent with existing State and Federal laws.
    (c) 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. (See appendix A of this 
part, Section 24.5.)
    (d) A property owner may designate a representative to receive 
offers, correspondence, and information by providing a written request 
to the Agency (Sec.  24.2(a)).


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 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 in this part.

    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 (Pub. L. 93-234).
    (g) The Age Discrimination Act of 1975 (42 U.S.C. 6101 et seq.).
    (h) Executive Order 11063--Equal Opportunity and Housing, as 
amended by Executive Order 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

[[Page 69494]]

with Constitutionally Protected Property Rights.
    (n) Robert T. Stafford Disaster Relief and Emergency Assistance 
Act, as amended (42 U.S.C. 5121 et seq.).
    (o) Executive Order 12892--Leadership and Coordination of Fair 
Housing in Federal Programs: Affirmatively Furthering Fair Housing 
(January 17, 1994).


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. Each Federal Agency that has programs or projects 
requiring the acquisition of real property or causing a displacement 
from real property subject to the provisions of the Act shall provide 
to the Lead Agency an annual summary report by November 15 that 
describes the real property acquisitions, displacements, and related 
activities conducted by the Federal Agency for the calendar year. (See 
appendix A of this part, Section 24.9(c).)


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 inform the person that the determination is 
the Agency's final decision and that the person may seek judicial 
review of the Agency's determination.
    (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.


Sec.  24.11  Adjustments of relocation benefits.

    (a) The Lead Agency may adjust the amounts of relocation benefits 
provided under this part at Sec. Sec.  24.304, 24.305, 24.401, and 
24.402.
    (b) No more frequently than every 5 years the head of the Lead 
Agency will evaluate whether the cost of living, inflation, or other 
factors indicate that relocation benefits provided in the sections in 
paragraph (a) of this section should be adjusted to meet the policy 
objectives of the Uniform Act. The Lead Agency will divide the Consumer 
Price Index for All Urban Consumers (CPI-U) index for the year of the 
assessment (base year index), by the CPI-U index for the year of 
assessment to determine the effect of inflation over the assessment 
period. If adjustments are determined to be necessary, the head of the 
Lead Agency will publish the new maximum benefits eligible for Federal 
participation in the Federal Register. (See appendix A of this part, 
Section 24.11.)

Subpart B--Real Property Acquisition


Sec.  24.101   Applicability of acquisition requirements.

    (a) Direct Federal program or project. (1) 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 that is 
undertaken by the Tennessee Valley Authority or the Rural Utilities 
Service. (See appendix A of this part, Section 24.101(a).)
    (2) If a Federal Agency (except for the Tennessee Valley Authority 
or the Rural Utilities Service) will not acquire a property because 
negotiations fail to result in an agreement, the owner of the property 
or the owner's designated representative shall be so informed in 
writing. Owners of such properties are not displaced persons, as such, 
are not entitled to relocation assistance benefits. However, tenants on 
such properties may be eligible for relocation assistance benefits. 
(See Sec.  24.2(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).)
    (1) The requirements of this subpart do not apply to acquisitions 
that meet all of the conditions in paragraphs (b)(1)(i) through (iv) of 
this section:
    (i) No specific property needs to be acquired, although the Agency 
may limit its search for alternative properties to a general geographic 
area. Where an Agency wishes to purchase more than one property within 
a general geographic area on this basis, all owners are to be treated 
similarly. (See appendix A of this part, Section 24.101(b)(1)(i).)
    (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) No later than the time of the offer the Agency shall inform 
the owner of the property or the owner's designated representative in 
writing that it will not acquire the property if negotiations fail to 
result in an amicable agreement.

[[Page 69495]]

    (iv) No later than the time of the offer the Agency shall inform 
the owner of the property or the owner's designated representative in 
writing of what it believes to be the fair market value of the 
property.
    (2) Acquisitions for programs or projects undertaken by an Agency 
that receives Federal financial assistance and will not use eminent 
domain to acquire the property. (See appendix A of this part, Section 
24.101(b)(2).) When making an offer to acquire such Agency or person 
shall:
    (i) No later than the time of the offer clearly advise the owner of 
the property or the owner's designated representative that the Agency 
will not acquire the property if negotiations fail to result in an 
amicable agreement.
    (ii) No later than the time of the offer inform the owner of the 
property, or the owner's designated representative, in writing of what 
it believes to be the fair market value of the property. (See appendix 
A of this part, Section 24.101(b)(1)(iv) and (b)(2)(ii).)
    (iii) Not use eminent domain to acquire properties for that project 
should the negotiations for purchase fail to result in an agreement to 
sell the real property. In extraordinary situations in which an 
unanticipated and unplanned need arises after carrying out voluntary 
acquisition activities, the Agency may request a waiver of regulation 
under Sec.  24.7 to pursue acquisition by eminent domain for a specific 
parcel or parcels while remaining in compliance with the Uniform Act's 
prohibition on coercive actions. Such request must identify the 
specific parcels that would be acquired by eminent domain, the reason 
for the need, and the steps the Agency will take to ensure that 
property owner's assistance and protection are not reduced.
    (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 that receives Federal 
financial assistance from the Tennessee Valley Authority or the Rural 
Utilities Service.
    (c) Less-than-full-fee interest in real property. (1) 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 and/or temporary easements 
necessary for the project. However, the Agency may apply the 
regulations in this subpart to any less-than-full-fee acquisition that, 
in its judgment, should be covered.
    (2) The provisions of this subpart do not apply to temporary 
easements or permits needed solely to perform work intended exclusively 
for the benefit of the property owner, which work may not be done if 
agreement cannot be reached.
    (d) Federally assisted projects. (1) 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 Sec.  24.4(a).)
    (2) For real property acquired which may later be incorporated into 
an anticipated, designated, or planned federally-funded or assisted 
project or program the provisions of Sec. Sec.  24.102, 24.103, 24.104, 
and 24.105 apply to the greatest extent practicable under State law. 
(See Sec.  24.4(a).)
    (3) The Relocation assistance provisions included in this part are 
applicable to any property owner or tenants who must move as a result 
of an acquisition described in paragraph (d)(2) of this section. Such 
owners and tenants are to be considered displaced persons. (See Sec.  
24.2(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 Sec. Sec.  24.203 and 24.5(d) and appendix A of this 
part, Section 24.102(b).)
    (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 paragraph (c)(2) of this section, 
and the owner, or the owner's designated representative, shall be given 
an opportunity to accompany the appraiser during the appraiser's 
inspection of the property.
    (2) An appraisal is not required if:
    (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 anticipated value of the 
proposed acquisition is estimated at $10,000 or less, based on a review 
of available data. The Agency employee or contractor making the 
determination to use the waiver valuation option must understand 
valuation principles, techniques, and use of appraisals in order to be 
able to determine whether the proposed acquisition is uncomplicated. 
(See appendix A of this part, Section 24.102(c)(2).)
    (A) When an appraisal is determined to be unnecessary, the Agency 
shall prepare a waiver valuation. Licensed or certified appraisers 
preparing, or reviewing a waiver valuation are precluded from complying 
with standards rules 1, 2, 3, and 4 of the ``Uniform Standards of 
Professional Appraisal Practice'' (USPAP), as promulgated by the 
Appraisal Standards Board of The Appraisal Foundation.\1\ (See appendix 
A of this part, Section 24.103(a).)
---------------------------------------------------------------------------

    \1\ Uniform Standards of Professional Appraisal Practice 
(USPAP). Published by The Appraisal Foundation, a nonprofit 
educational organization. Copies may be ordered from The Appraisal 
Foundation.
---------------------------------------------------------------------------

    (B) The person performing the waiver valuation must have sufficient 
understanding of the local real estate market to be qualified to make 
the waiver valuation.
    (C) The Federal Agency funding the project may approve exceeding 
the $10,000 threshold, up to an amount of $25,000, if the Agency 
acquiring the real property offers the property owner the option of 
having the Agency appraise the property. (D) If the Agency determines 
that the proposed acquisition is uncomplicated, and if the Agency 
acquiring the real property offers the property owner the option of 
having the Agency appraise the property, the Agency may request 
approval from the Federal funding Agency to use a waiver valuation of 
up to $50,000. The use of waiver valuations between $25,000 and $50,000 
is limited to the Federal funding Agencies and recipients and shall not 
be further delegated. Approval for utilizing a waiver valuation of more 
than $25,000, but up to $50,000, may only be requested on a project-by-
project basis and the request for doing so shall be made in writing to 
the Federal funding Agency setting forth:
    (1) The anticipated benefits of, and reasons for, raising the 
waiver valuation ceiling above $25,000;
    (2) The administrative/managerial oversight mechanisms used to 
assure proper use and review;
    (3) The names/credentials of individuals who will be performing the 
waiver valuations;

[[Page 69496]]

    (4) The quality control procedures to be utilized;
    (5) Performance/results metrics with quarterly reports provided to 
the Federal funding Agency; and
    (6) Within 6 months of completion of acquisition activities a 
close-out report measuring cost/time benefits, lessons learned, best 
practices, etc., shall be submitted to the Federal funding Agency.
    (E) If the property owner elects to have the Agency appraise the 
property, the Agency must obtain an appraisal and shall not use the 
waiver valuation procedures described above. (See appendix A of this 
part, 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 or waiver valuation of 
the fair market value of the property, taking into account the value of 
allowable damages or benefits to any remaining property. An Agency 
official must establish the amount believed to be just compensation. 
(See Sec.  24.104.) Promptly thereafter, the Agency shall make a 
written offer to the owner or the designated owner's representative to 
acquire the property for the full amount believed to be just 
compensation. (See appendix A of this part, Section 24.102(d).)
    (e) Summary statement. Along with the initial written purchase 
offer, the owner or the designated owner's representative shall be 
given a written statement of the basis for the offer of just 
compensation, which shall include:
    (1) A statement of the amount offered as just compensation. In the 
case of a partial acquisition, the compensation for the real property 
to be acquired and the compensation for damages, if any, to the 
remaining real property shall be separately stated.
    (2) A description and location identification of the real property 
and the interest in the real property to be acquired.
    (3) An identification of the buildings, structures, and other 
improvements (including removable building equipment and trade 
fixtures) which are 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 all 
reasonable efforts to contact the owner or the owner's designated 
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 or 
the designated owner's representative's presentation. (See appendix A 
of this part, 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 waiver valuation 
or appraisal information, or if a significant delay has occurred since 
the time of the appraisal(s) or waiver valuation of the property, the 
Agency shall have the appraisal(s) or waiver valuation updated or 
obtain a new appraisal(s) or waiver valuation. If the latest appraisal 
or waiver valuation 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 
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 of this part, 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 fair market value of 
such property, or the court award of compensation in the condemnation 
proceeding for the property. In exceptional circumstances, with the 
prior approval of the owner or the owner's designated representative, 
the Agency may obtain a right-of-entry for construction purposes before 
making payment available to an owner. (See appendix A of this part, 
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 Sec.  24.2(a).)
    (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 of this part, Section 24.102(m).)
    (n) Conflict of interest. (1) The appraiser, review appraiser, or 
person performing the waiver valuation shall not have any interest, 
direct or indirect, in the real property being valued for the Agency. 
Compensation for developing an appraisal or waiver valuation shall not 
be based on the amount of the valuation estimate.
    (2) No person shall attempt to unduly influence or coerce an 
appraiser, review appraiser, or waiver valuation preparer regarding any 
valuation aspect of an appraisal, waiver valuation, or review of 
appraisals or waiver valuations. Persons functioning as negotiators may 
not supervise or formally evaluate the performance of any appraiser or 
review appraiser performing appraisal or appraisal review work, 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.
    (3) An appraiser, review appraiser, or waiver valuation preparer 
may be authorized by the Agency to act as a negotiator for the 
acquisition of real property for which that person has made an 
appraisal, appraisal review or waiver valuation only if the offer to 
acquire the property is $10,000, or less. If the valuer will also act 
as the

[[Page 69497]]

negotiator on a valuation greater than $10,000, and up to $25,000, an 
appraisal must be prepared and reviewed. Agencies desiring to exercise 
this option must request approval in writing from the Federal funding 
Agency. The requesting Agency shall have a separate and distinct 
quality control process in place and set forth in the written 
procedures approved by the Federal funding agency. Agencies wishing to 
extend their Federal funding Agency approval for conflict of interest 
waivers of more than $10,000 to their subrecipients must determine and 
document that the subrecipient has a separate and distinct quality 
control process in place and set forth in written procedures approved 
by the Federal funding agency or in approved subrecipient written 
procedures. (See appendix A of this part, Section 24.102(n).)


Sec.  24.103   Criteria for appraisals.

    (a) Appraisal requirements. This section sets forth the 
requirements for real property acquisition appraisals for Federal and 
federally assisted programs. Appraisals are to be prepared according to 
this section, which is intended to be consistent with the USPAP. (See 
appendix A of this part, Section 24.103(a).) The Agency may have 
appraisal requirements that supplement this section, including, to the 
extent appropriate, the Uniform Appraisal Standards for Federal Land 
Acquisition (UASFLA), also commonly referred to as the ``Yellow 
Book''.) The USPAP is published by The Appraisal Foundation. The USFLA 
is published by the Appraisal Foundation in partnership with the 
Department of Justice on behalf of the Interagency Land Acquisition 
Conference. The USFLA is a compendium of Federal eminent domain 
appraisal law, both case and statute, regulations and practices.\2\ 
Copies of the USPAP and the UASFLA may be ordered from The Appraisal 
Foundation in print and electronic forms.\3\ The USPAP may be viewed on 
The Appraisal Foundation's website.\4\ A free electronic version of the 
UASFLA is available for download on the U.S. Department of Justice 
website.\5\
---------------------------------------------------------------------------

    \2\ www.justice.gov/file/408306/download.
    \3\ http://www.appraisalfoundation.org/imis/TAF/Standards/Appraisal_Standards/TAF/Standards.aspx.
    \4\ http://www.uspap.org.
    \5\ http://www.justice.gov/file/408306/download.
---------------------------------------------------------------------------

    (1) The Agency acquiring real property has a legitimate role in 
contributing to the appraisal process, especially in developing the 
scope of work and defining the appraisal problem. The scope of work and 
development of an appraisal under this section depends on the 
complexity of the appraisal problem.
    (2) The Agency has the responsibility to assure that the appraisals 
it obtains are relevant to its program needs, reflect established and 
commonly accepted Federal and federally assisted program appraisal 
practice, and at a minimum, comply with the definition of appraisal in 
Sec.  24.2(a) and the requirements in paragraphs (a)(2)(i) through (v) 
of this section (see appendix A of this part, Section 24.103 and 
Section 24.103(a)):
    (i) 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), including items 
identified as personal 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. (See appendix A of this part, Section 
24.103(a)(1).)
    (ii) 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 
of this part, Section 24.103(a).)
    (iii) 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.
    (iv) 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.
    (v) 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 fair market value of 
the real property caused by the project for which the property is to be 
acquired, or by the likelihood that the property would be acquired for 
the project, other than that due to physical deterioration within the 
reasonable control of the owner. (See appendix A of this part, 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 not be less than the difference between 
the amount determined to be just compensation for the owner's interest 
in the real property and the salvage value (defined at Sec.  24.2(a)) 
of the retained improvement.
    (d) Qualifications of appraisers and review appraisers. (1) The 
Agency shall establish criteria for determining the minimum 
qualifications and competency of appraisers and review appraisers. 
Qualifications shall be consistent with the scope of work for the 
assignment. The Agency shall review the experience, education, 
training, certification/licensing, designation(s), and other 
qualifications of appraisers, and review appraisers, and use only those 
determined by the Agency to be qualified. (See appendix A of this part, 
Section 24.103(d)(1).)
    (2) If the Agency uses a contract (fee) appraiser to perform the 
appraisal, such appraiser shall be State licensed or certified in 
accordance with title XI of the Financial Institutions Reform, 
Recovery, and Enforcement Act of 1989 (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)(1) and 
appendix A of this part, 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 Sec.  24.2(a), appraisal 
requirements found in 49 CFR 24.103, and other applicable requirements, 
including, to the extent appropriate, the UASFLA, and support the 
appraiser's opinion of value. The level of review analysis 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 
recommended (as the basis for the establishment of the amount believed 
to be just compensation), accepted (meets all requirements, but not 
selected as recommended or approved), or not accepted. If authorized by 
the Agency to do so, the staff review appraiser shall also approve the 
appraisal (as the basis for the establishment of the amount believed to 
be just compensation), and, if also authorized to do so, develop and 
report the amount believed to be just compensation. (See appendix A of 
this part, Section 24.104(a).)
    (b) If the review appraiser is unable to recommend (or approve) an 
appraisal as

[[Page 69498]]

an adequate basis for the establishment of the offer of just 
compensation, and it is determined by the Agency that it is not 
practical to obtain an additional appraisal, the review appraiser may, 
as part of the review, present and analyze market information in 
conformance with Sec.  24.103 to support a recommended (or approved) 
value. (See appendix A of this part, 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 of this part, 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 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 a tenant-
owned improvement. Just compensation for a tenant-owned improvement is 
the amount which the improvement contributes to the fair market value 
of the whole property, or its salvage value, whichever is greater. 
(Salvage value is defined at Sec.  24.2(a).)
    (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;
    (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 to 
the billing agent so that the owner will not have to pay such costs and 
then seek reimbursement from the Agency.


Sec.  24.107   Certain litigation expenses.

    The owner of the real property shall be reimbursed for any 
reasonable expenses, including reasonable attorney, appraisal, and 
engineering fees, which the owner actually incurred because of a 
condemnation proceeding, if:
    (a) The final judgment of the court is that the Agency cannot 
acquire the real property by condemnation;
    (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 ensuring 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.

    The requirements in this subpart apply to the relocation of any 
displaced person as defined at Sec.  24.2(a). Any person who qualifies 
as a displaced person must be fully informed of his or her rights and 
entitlements to relocation assistance and payments provided by the 
Uniform Act and this part. (See appendix A of this part, Section 
24.202.)
    (a) Persons temporarily displaced. (1) Appropriate advisory 
services must be provided;
    (2) For persons occupying a dwelling, at least one DSS dwelling is 
made available prior to requiring a person to move, except in the case 
of an emergency move as described in Sec.  24.204(b)(1), (2), or (3);
    (3) Similarly, if a person's business will be shut-down 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;
    (4) Payment is provided for all out-of-pocket expenses incurred in 
connection with the temporary relocation as the Agency determines to be 
reasonable and necessary;
    (5) A person's temporary relocation from their dwelling or business 
for the project may not exceed 12 months. The Agency must contact any 
person who has been temporarily relocated for a period beyond 12 months 
because that person is a displaced person. The Agency shall offer all 
required relocation assistance benefits and services. An Agency may not 
deduct any temporary relocation assistance benefits previously provided 
from these benefits;
    (6) 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 is not eligible for temporary

[[Page 69499]]

relocation assistance. Unless such denial of benefits would create an 
extremely unusual hardship to a designated family member in accordance 
with Sec.  24.208(g).
    (b) [Reserved]


Sec.  24.203   Relocation notices.

    (a) General information notice. As soon as feasible, a person who 
may be displaced shall be furnished with a general written description 
of the 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, pursuant to Sec.  24.208(h); and
    (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 earliest of: The date of a notice of 
intent to acquire, rehabilitate, and/or demolish (described in 
paragraph (d) of this section); the initiation of negotiations (defined 
in Sec.  24.2(a)); or actual acquisition. 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 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 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, rehabilitate, and/or demolish. A 
notice of intent to acquire, rehabilitate, and/or demolish is an 
Agency's written communication that is provided to a person to be 
displaced, including those to be displaced by rehabilitation and/or 
demolition activities from property prior to the commitment of Federal 
financial assistance to the activity, which clearly sets forth that the 
Agency intends to acquire, rehabilitate, and/or demolish the property. 
A notice of intent to acquire, rehabilitate, and/or demolish 
establishes eligibility for relocation assistance prior to the 
initiation of negotiations and/or prior to the commitment of Federal 
financial assistance. (See Sec.  24.2 (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) has been made available to the person. 
Information on comparable replacement dwellings that were used in the 
determination process must be provided to displaced persons. When 
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 in writing 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 of the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act, as amended (42 
U.S.C. 5122);
    (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 from the displacement dwelling 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 DSS 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 develop 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

[[Page 69500]]

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.
    (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 Agency displacing a person 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 (3 CFR, 1959-1963 
Comp., p. 652), 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 nonresidential (businesses, farm and nonprofit 
organizations) displacements, the relocation needs and preferences of 
each business (farm and nonprofit organization) 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 businesses, an identification and resolution of personalty 
and/or realty issues. Every effort must be made to identify and resolve 
personalty and/or realty issues prior to, or at the time of, the 
appraisal of the property.
    (D) An estimate of the time required for the business to vacate the 
site.
    (E) An estimate of 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.
    (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, comparable housing shall be inspected prior to 
being made available to assure that it meets applicable standards (see 
Sec.  24.2(a).) If such an inspection is not made, the Agency shall 
notify the person to be displaced in writing of the reason that an 
inspection of the comparable was not made and, that if the comparable 
is purchased or rented by the displaced person, a replacement housing 
payment may not be made unless the replacement dwelling is subsequently 
inspected and determined to be decent, safe, and sanitary. (See 
appendix A of this part, Section 24.205(c)(2)(ii)(C).)
    (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. This paragraph (c)(2)(ii)(D), however, 
does not require an Agency to provide a person a larger payment than is 
necessary to enable a person to relocate to a comparable replacement 
dwelling. (See appendix A of this part, Section 24.205(c)(2)(ii)(D).)
    (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)), 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 nonresidential moves, current and continuing 
information on the availability, purchase prices, and rental costs of 
suitable commercial and farm properties

[[Page 69501]]

and locations. Assist any person displaced from a business or farm 
operation to obtain and become established in a suitable replacement 
location.
    (iv) Minimize hardships to persons in adjusting to relocation by 
providing counseling, advice as to other sources of assistance that may 
be available, and such other help as may be appropriate.
    (v) Supply persons to be displaced with appropriate information 
concerning Federal and State housing programs, disaster loan and other 
programs administered by the Small Business Administration, and other 
Federal and State programs offering assistance to displaced persons, 
and technical help to persons applying for such assistance.
    (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 Sec.  24.6.)
    (e) Subsequent occupants. 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.

    (a) Eviction for cause must conform to applicable State and local 
law. Any person who occupies the real property and is in lawful 
occupancy on the date of the initiation of negotiations is presumed to 
be entitled to relocation payments and other assistance set forth in 
this part unless the Agency determines that:
    (1) The person received an eviction notice prior to the initiation 
of negotiations and as a result of that notice is later evicted; or
    (2) The person is evicted after the initiation of negotiations for 
serious or repeated violation of material terms of the lease or 
occupancy agreement; and
    (3) In either case the eviction was not undertaken for the purpose 
of evading the obligation to make available the payments and other 
assistance set forth in this part.
    (b) For purposes of determining eligibility for relocation 
payments, the date of displacement is the date the person moves, or if 
later, the date a comparable replacement dwelling is made available. 
This section applies only to persons who would otherwise have been 
displaced by the project. (See appendix A of this part, 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) Advanced payments. If a person demonstrates the need for an 
advanced 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) No waiver of relocation assistance. An Agency shall not propose 
or request that a displaced person waive his or her rights or 
entitlements to relocation assistance and benefits provided by the 
Uniform Act and this part. (See appendix A of this part, Section 
24.207(f).)
    (g) Expenditure of payments. Payments, provided pursuant to this 
part, shall not be considered to constitute Federal financial 
assistance. Accordingly, this part does not apply to the expenditure of 
such payments by, or for, a displaced person.
    (h) 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. The Agency shall not 
withhold any part of a relocation payment to a displaced person to 
satisfy any other obligation.


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 they are a citizen, or an 
alien who is lawfully present in the United States.
    (2) In the case of a family, that each family member is a citizen 
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 a citizen 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), (2), 
and (3) of this section shall specify the person's status as a citizen 
or an alien who is lawfully present in the United States. Requirements 
concerning the certification in addition to those contained in this 
section shall be within the discretion of the Federal funding Agency 
and, within those parameters, that of the Agency carrying out such 
displacements.
    (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 lawfully 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

[[Page 69502]]

ineligible owners. (See appendix A of this part, Section 24.208(c).)
    (d) The Agency shall consider the certification provided pursuant 
to paragraph (a) of this section to be valid, unless the Agency 
determines in accordance with paragraph (f) of this section that it is 
invalid based on a review of documentation or other information that 
the Agency considers reliable and appropriate.
    (e) Any review by the Agency of the certifications provided 
pursuant to paragraph (a) of this section shall be conducted in a 
nondiscriminatory fashion. Each 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 a person's documentation or other 
credible evidence, an 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) For a person who has certified that they are an alien lawfully 
present in the United States, the Agency shall obtain verification of 
the person's status by using the Systematic Alien Verification for 
Entitlements (SAVE) program administered by U.S. Citizenship and 
Immigration Services (USCIS) to verify immigration status.
    (2) For a person who has certified that they are a citizen or 
national, if the Agency has reason to believe that the certification is 
invalid, the Agency shall request evidence of United States citizenship 
or nationality and, if considered necessary, verify the accuracy of 
such evidence with the issuer or other appropriate source.
    (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 
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 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 (see appendix A of this part, Section 
24.208(h)):
    (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 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.

(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. Code), 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. Code 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)) and who moves from a 
dwelling (including a mobile home) or who moves from a business, farm, 
or nonprofit 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 this section 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 home-owner 
occupant 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 methods in paragraphs (b)(1) and (2) of this section (eligible 
expenses for moves from a dwelling include the expenses described in 
paragraphs (g)(1) through (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. The 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 should not exceed the cost paid by a 
commercial mover. Equipment rental fees should be based on the actual 
cost of renting the equipment but not exceed the cost paid by a 
commercial mover.
    (c) Moves from a mobile home. Eligible expenses for moves from a 
mobile home include those expenses described in paragraphs (g)(1) 
through (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 (10) of this section. 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:
    (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. The 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 should not exceed the cost paid by a 
commercial mover. Equipment rental fees should be based on the actual 
cost of renting the equipment but not exceed the cost paid by a 
commercial mover.
    (d) Moves from a business, farm, or nonprofit organization. 
Eligible

[[Page 69503]]

expenses for moves from a business, farm, or nonprofit organization 
include those expenses described in paragraphs (g)(1) through (7) and 
(11) through (18) of this section and Sec.  24.303. Personal property 
as determined by an inventory from a business, farm, or nonprofit 
organization may be moved by one or a combination of the following 
methods:
    (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) Supported by receipted bills for labor and equipment. Hourly 
labor rates should not exceed the rates paid by a commercial mover to 
employees performing the same activity and, equipment rental fees 
should be based on the actual rental cost of the equipment but not to 
exceed the cost paid by a commercial mover.
    (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 (7) and (18) of this section. (See appendix A 
of this part, Section 24.301(e).)
    (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 and other personal 
property. For businesses, farms, or nonprofit organizations this 
includes machinery, equipment, substitute personal property, and 
connections to utilities available within the building; it also 
includes modifications to the personal property, including those 
mandated by Federal, State, or local law, code, or ordinance, 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 12 
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 paragraph (h) of this section, 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 actual, reasonable, or necessary costs of a license, 
permit, fee, or certification required of the displaced person to 
operate a business, farm, or non-profit 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, replacing stationery on hand at the time of 
displacement, and making reasonable and necessary updates to other 
media that are made obsolete as a result of the move. (See appendix A 
of this part, Section 24.301(g)(13).)
    (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:
    (i) If the item is currently in use, the lesser of:
    (A) The estimated cost to move and reinstall (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); or
    (B) The fair market value in place of the item, as is for continued 
use, less the proceeds from its sale.
    (ii) If the item is not currently in use: The estimated cost of 
moving the item as is but not including any allowance for storage.
    (iii) When payment for property loss is claimed for goods held for 
sale, the fair market value shall be based on the cost of the goods to 
the business, not the potential selling prices. (See appendix A of this 
part, Section 24.301(g)(14).)
    (15) The reasonable cost incurred in attempting to sell an item 
that is not to be relocated.
    (16) 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.
    (i) A business or farm operation is entitled to reimbursement for 
actual expenses, not to exceed $5,000, as the Agency determines to be 
reasonable, which are incurred in searching for a replacement location, 
including:
    (A) Transportation;
    (B) Meals and lodging away from home;
    (C) Time spent searching, based on reasonable salary or earnings;
    (D) 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;

[[Page 69504]]

    (E) Time spent in obtaining permits and attending zoning hearings; 
and
    (F) Expenses negotiating the purchase of a replacement site based 
on a reasonable salary or fee, including actual, reasonable, and 
necessary attorney's fees.
    (ii) The Federal funding Agency may, on a program wide or project 
basis, allow a one-time payment of up to $1,000 for search expenses 
with little or no documentation as an alternative payment method to 
paragraph (g)(17)(i) of this section. (See appendix A of this part, 
Section 24.301(g)(17).)
    (18) When the personal property to be moved is of low value and 
high bulk, and the cost of moving the property would be 
disproportionate to its value in the judgment of the Agency, the 
allowable moving cost payment shall not exceed the lesser of: The 
amount which would be received if the property were sold at the site; 
or the replacement cost of a comparable quantity delivered to the new 
business location. Examples of personal property covered by this 
paragraph (g)(18) include, but are not limited to, stockpiled sand, 
gravel, minerals, metals, and other similar items of personal property 
as determined by the Agency.
    (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 
paragraph (g)(3) of this section and Sec.  24.304(a);
    (11) Costs for storage of personal property on real property 
already owned or leased by the displaced person;
    (12) Refundable security and utility deposits; and
    (13) Cosmetic changes to a replacement dwelling such as painting, 
draperies, or replacement carpet or flooring.
    (i) Notification and inspection (nonresidential). 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 (nonresidential). 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 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.
    (a) An Agency may determine that the storage of personal property 
is a reasonable and necessary moving expense for a displaced person 
under this part. The determination shall be based on the needs of the 
displaced person; the nature of the move; the plans for permanent 
relocation; the amount of time available for the relocation process; 
and, whether storage will facilitate relocation. If the Agency 
determines that storage is reasonable and necessary in conjunction with 
this payment, the Agency shall pay the actual, reasonable, and 
necessary storage expenses in accordance with Sec.  24.301(g)(4). 
However, regardless of whether storage is approved, the Fixed 
Residential Move Cost Schedule provides a one-time payment for one move 
from the displacement dwelling to the replacement dwelling, dwelling, 
or storage facility. Consequently, displaced persons must be fully 
informed that reimbursement of costs to move the personal property to 
storage and the cost of approved storage represent a full reimbursement 
of their eligibility for moving costs under this part. (See appendix A 
of this part, Section 24.302.)
    (b) [Reserved]
    (c) The Fixed Residential Moving Cost Schedule is available at the 
following URL: http://www.fhwa.dot.gov/real_estate/practitioners/uniform_act/relocation/moving_cost_schedule.cfm.


Sec.  24.303   Related nonresidential 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 utilities from the replacement site's 
property line to improvements at the replacement site. (See appendix A 
of this part, Section 24.303(a).)
    (b) Professional services performed prior to the purchase or lease 
of a replacement site to determine its suitability for the displaced 
person's business operation including but not limited to soil testing 
or feasibility and marketing studies (excluding any fees or commissions 
directly related to the purchase or lease of such site). At the 
discretion of the Agency a reasonable pre-approved hourly rate may be 
established. (See appendix A of this part, Section 24.303(b).)
    (c) Impact fees and one-time assessments for anticipated heavy 
utility usage, as determined necessary by the Agency. (See appendix A 
of this part, Section 24.303(c).)


Sec.  24.304   Reestablishment expenses--nonresidential moves.

    In addition to the payments available under Sec. Sec.  24.301 and 
24.303, a small business, farm, or nonprofit organization is entitled 
to receive a payment, not to exceed $25,000, 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.

[[Page 69505]]

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), to the household 
income.
    (5) Construction costs for a new building at the business 
replacement site, or costs to build out a shell, or costs to 
substantially reconstruct a building. (See appendix A of this part, 
Section 24.304(b)(5).)


Sec.  24.305   Fixed payment for moving expenses--nonresidential moves.

    (a) Business. A displaced business may be eligible to choose a 
fixed payment in lieu of the payments for both actual moving and 
related expenses, as well as actual reasonable reestablishment expenses 
provided by Sec. Sec.  24.301, 24.303, and 24.304. Such fixed payment, 
except for payment to a nonprofit organization, shall equal the average 
annual net earnings of the business, as computed in accordance with 
paragraph (e) of this section, but not less than $1,000 nor more than 
$40,000. The displaced business is eligible for the payment if the 
Agency determines that:
    (1) The business owns or rents personal property which must be 
moved in connection with such displacement and for which an expense 
would be incurred in such move and the business vacates or relocates 
from its displacement site;
    (2) The business cannot be relocated without a substantial loss of 
its existing patronage (clientele or net earnings). A business is 
assumed to meet this test unless the Agency determines that it will not 
suffer a substantial loss of its existing patronage;
    (3) The business is not part of a commercial enterprise having more 
than three other entities which are not being acquired by the Agency, 
and which are under the same ownership and engaged in the same or 
similar business activities;
    (4) The business is not operated at a displacement dwelling solely 
for the purpose of renting such dwelling to others;
    (5) The business is not operated at the displacement site solely 
for the purpose of renting the site to others; 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).)
    (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)) may choose a fixed payment, in lieu of the payments for both 
actual moving as well as 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 $40,000. 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 $40,000, in lieu of the payments 
for both actual moving as well as related expenses and actual 
reasonable reestablishment expenses, if the Agency determines that it 
cannot be relocated without a substantial loss of existing patronage 
(membership or clientele). A nonprofit organization is assumed to meet 
this test, unless the Agency demonstrates otherwise. Any payment in 
excess of $1,000 must be supported with financial statements for the 
two 12-month periods prior to the acquisition. The amount to be used 
for the payment is the average of 2 years annual gross revenues less 
administrative expenses. (See appendix A of this part, Section 
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. (See appendix A of this part, Section 24.305(e) for sample 
calculations.) 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 of this part, Section 24.305(e).)


Sec.  24.306   Discretionary utility relocation payments.

    (a) Whenever a program or project undertaken by an Agency causes 
the relocation of a utility facility (defined at

[[Page 69506]]

Sec.  24.2(a)) and the relocation of the facility creates extraordinary 
expenses for its owner, the 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 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 Agency's program or project; and
    (5) State or local government reimbursement for utility moving 
costs or payment of such costs by the Agency is in accordance with 
State law.
    (b) For the purposes of this section, the term extraordinary 
expenses mean those expenses which, in the opinion of the 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 Agency and the utility facility owner 
shall reach prior agreement on the nature of the utility relocation 
work to be accomplished, the eligibility of the work for reimbursement, 
the responsibilities for financing and accomplishing the work, and the 
method of accumulating costs and making payment. (See appendix A of 
this part, Section 24.306.)

Subpart E--Replacement Housing Payments


Sec.  24.401   Replacement housing payment for 90-day homeowner-
occupants.

    (a) Eligibility. A displaced person is eligible for the replacement 
housing payment for a 90-day homeowner-occupant if the person:
    (1) Has actually owned and occupied the displacement dwelling for 
not less than 90 days immediately prior to the initiation of 
negotiations; and
    (2) Purchases and occupies a decent, safe, and sanitary replacement 
dwelling within 1 year after the later of the following dates (except 
that the Agency may extend such 1 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 Agency's obligation under Sec.  24.204 is met.
    (b) Amount of payment. The replacement housing payment for an 
eligible 90-day homeowner-occupant may not exceed $31,000. (See also 
Sec.  24.404.) The payment under this subpart is limited to the amount 
necessary to relocate to a comparable replacement dwelling within 1 
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 (f) 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)) 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 DSS 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 DSS replacement dwelling (see 
Sec.  24.2(a)); and
    (iii) The current fair market value for residential use of the 
replacement dwelling 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 Agency shall determine 
the factors to be used in computing the amount to be paid to a 
displaced person under paragraph (b)(2) of this section. The payment 
for increased mortgage interest cost shall be the amount which will 
reduce the mortgage balance on a new mortgage to an amount which could 
be amortized with the same monthly payment for principal and interest 
as that for the mortgage(s) on the displacement dwelling. In addition, 
payments shall include other debt service costs, if not paid as 
incidental costs, and shall be based only on bona fide mortgages that 
were valid liens on the displacement dwelling for at least 180 days 
prior to the initiation of negotiations. Paragraphs (d)(1) through (5) 
of this section shall apply to the computation of the increased 
mortgage interest costs payment, which payment shall be contingent upon 
a mortgage being placed on the replacement dwelling.
    (1) The payment shall be based on the unpaid mortgage balance(s) on 
the displacement dwelling; however, in the event the 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 of this part, 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

[[Page 69507]]

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) Home equity conversion mortgage. The payment for replacing a 
HECM shall be the difference between the existing HECM balance and the 
minimum dollar amount necessary to purchase a replacement HECM which 
will provide the same or similar terms as that for the HECM 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 HECMs that were valid liens on the displacement dwelling for at 
least 180 days prior to the initiation of negotiations. Paragraphs 
(e)(1) through (4) of this section shall apply to the computation of 
the mortgage interest differential payment (MIDP) required, which 
payment shall be contingent upon a new HECM mortgage being purchased 
for the replacement dwelling.
    (1) The payment shall be based on the difference between the HECM 
balance and the minimum amount needed to qualify for a HECM with the 
similar terms as the HECM mortgage on the displacement dwelling; 
however, in the event the displaced person obtains a smaller HECM than 
the HECM balance(s) computed in the buydown determination, the payment 
will be prorated and reduced accordingly. (See appendix A of this part, 
Section 24.401(e).) The HECM balance shall be that balance which 
existed 180 days prior to the initiation of negotiations or the HECM 
balance on the date of acquisition, whichever is less.
    (2) The interest rate on the new HECM used in determining the 
amount of the eligibility shall not exceed the prevailing rate for 
HECMs currently charged by mortgage lending institutions for owners 
with similar amounts of equity in their units in the area in which the 
replacement dwelling is located.
    (3) Purchaser's points and loan origination, 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 
HECM balance on the displacement dwelling plus any amount necessary to 
purchase the new HECM.
    (4) The displaced person or their representative shall be advised 
of the approximate amount of this eligibility and the conditions that 
must be met to receive the reimbursement as soon as the facts relative 
to the person's current HECM are known; the payment shall be made 
available at or near the time of closing on the replacement dwelling in 
order to purchase the new HECM as intended.
    (f) 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.
    (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 determine to be incidental to 
the purchase.
    (g) Rental assistance payment for 90-day homeowner. A 90-day 
homeowner-occupant, who could be eligible for a replacement housing 
payment under paragraph (a) of this section but elects to rent a 
replacement dwelling, is eligible for a rental assistance payment. 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 
in accordance with Sec.  24.402(b)(1), except that the limit of $7,200 
does not apply, and disbursed in accordance with Sec.  24.402(b)(3). 
Under no circumstances would the rental assistance payment exceed the 
amount that could have been received under paragraph (b)(1) of this 
section had the 90-day homeowner elected to purchase and occupy a 
comparable replacement dwelling.


Sec.  24.402   Replacement housing payment for 90-day tenants and 
certain others.

    (a) Eligibility. A tenant displaced from a dwelling is entitled to 
a payment not to exceed $7,200 for rental assistance, as computed in 
accordance with paragraph (b) of this section, or down payment 
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 DSS replacement dwelling 
within 1 year (unless the Agency extends this period for good cause) 
after 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 $7,200 for rental assistance. (See 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

[[Page 69508]]

    (ii) The monthly rent and estimated average monthly cost of 
utilities for the DSS replacement dwelling actually occupied by the 
displaced person.
    (2) Base monthly rental for displacement dwelling. The base monthly 
rental for the displacement dwelling is the lesser of:
    (i) The average monthly cost for rent and utilities at the 
displacement dwelling for a reasonable period prior to displacement, as 
determined by the Agency (for an owner-occupant, use the fair market 
rent for the displacement dwelling; for a tenant who paid little or no 
rent for the displacement dwelling, use the fair market rent, unless 
its use would result in a hardship because of the person's income or 
other circumstances); or
    (ii)(A) 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 
Uniform Relocation Act Income (``Survey''). 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,
    (B) The Surveys U.S. Department of Housing and Urban Development's 
Public Housing Uniform Relocation Act Income Limits are updated 
annually and are available on FHWA's website.\6\
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    \6\ http://www.fhwa.dot.gov/real_estate/practitioners/uniform_act/policy_and_guidance/low_income_calculations/index.cfm.
---------------------------------------------------------------------------

    (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) 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 replacement housing.
    (c) Down payment assistance payment--(1) Amount of payment. An 
eligible displaced person who purchases a replacement dwelling is 
entitled to a down payment 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 down 
payment assistance payment that is less than $7,200 may be increased to 
any amount not to exceed $7,200. 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 90-day occupancy requirement. If 
the Agency elects to provide the maximum payment of $7,200 as a down 
payment, 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 90-day owner-occupant under Sec.  24.401(a) is 
not eligible for this payment. (See appendix A of this part, Section 
24.402(c).)
    (2) Application of payment. The full amount of the replacement 
housing payment for down payment 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. (See Sec.  24.2(a).)
    (1) If available, at least three comparable replacement dwellings 
shall be considered and the payment computed on the basis of the 
dwelling most nearly representative of, and equal to or better than, 
the displacement dwelling. (See appendix A of this part, Section 
24.403(a)(1).)
    (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 
Agency determines that the remainder has economic value to the owner, 
the Agency may offer to purchase the entire property. If the owner 
refuses to sell the remainder to the Agency, the fair market value of 
the remainder may be added to the acquisition cost of the displacement 
dwelling for purposes of computing the replacement housing payment. 
(See appendix A of this part, Section 24.403(a)(3).)
    (4) To the extent feasible, comparable replacement dwellings shall 
be selected from the neighborhood in which the displacement dwelling 
was located or, if that is not possible, in nearby or similar 
neighborhoods where housing costs are generally the same or higher.
    (5) 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) An Agency shall deduct the amount of any advance relocation 
payment from the relocation payment(s) to which a displaced person is 
otherwise entitled. The Agency shall not withhold any part of a 
relocation payment to a displaced person to satisfy an obligation to 
any other creditor.
    (7) If the displacement dwelling was part of a property that 
contained another dwelling unit and/or space used for nonresidential 
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 DSS dwelling as defined at Sec.  
24.2(a).
    (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 to 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 fair market value.
    (d) Occupancy requirements for displacement or replacement 
dwelling.

[[Page 69509]]

No person shall be denied eligibility for a replacement housing payment 
solely because the person is unable to meet the occupancy requirements 
set forth in this part 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 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 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; or
    (2) By a determination that:
    (i) There is little, if any, comparable replacement housing 
available to displaced persons within an entire program or project 
area; and, therefore, last resort housing assistance is necessary for 
the area as a whole;
    (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 the procedures in this part (unless the Agency and the 
displaced person have entered into a contract to do so) in lieu of any 
acquisition payment or any relocation payment for which the person may 
otherwise be eligible.
    (c) Methods of providing comparable replacement housing. Agencies 
shall have broad latitude in implementing this subpart, but 
implementation shall be for reasonable cost, on a case-by-case basis 
unless an exception to case-by-case analysis is justified for an entire 
project.
    (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 
Agency and subsequent sale or lease to, or exchange with a displaced 
person.
    (vii) The removal of barriers for persons with disabilities.
    (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 of this part, 
Section 24.404(c)), including upgraded, but smaller replacement housing 
that is DSS 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), comparable replacement dwelling.
    (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(a).) 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:
    (1) A moving expense payment in accordance with subpart D of this 
part; and
    (2) A replacement housing payment in accordance with subpart E of 
this part

[[Page 69510]]

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.  24.301(g)(1) through (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 a 90-day mobile 
homeowner displaced from a mobile home.

    (a) Eligibility. An owner-occupant displaced from a mobile home is 
entitled to a replacement housing payment, not to exceed $31,000, under 
Sec.  24.401 if:
    (1) The person occupied the mobile home on the displacement site 
for at least 90 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 of the Agency's written notification to the owner-
occupant that the owner is determined to be displaced from the mobile 
home as described in paragraphs (a)(3)(i) through (iv) of this section;
    (2) The person meets the other basic eligibility requirements at 
Sec.  24.401(a)(2); 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 90-day owner that 
is displaced from a mobile home. The replacement housing payment for an 
eligible displaced 90-day owner is computed as described at Sec.  
24.401(b) incorporating the following, as applicable:
    (1) If the Agency acquires the mobile home as real estate and/or 
acquires the owned site, the acquisition cost used to compute the price 
differential payment is the actual amount paid to the owner as just 
compensation for the acquisition of the mobile home, and/or site, if 
owned by the displaced mobile home owner.
    (2) If the Agency does not purchase the mobile home as real estate 
but the owner is determined to be displaced from the mobile home and 
eligible for a replacement housing payment based on paragraph 
(a)(1)(iii) of this section, the eligible price differential payment 
for the purchase of a comparable replacement mobile home, is the lesser 
of the displaced mobile home owner-occupant'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.
    (3) If a comparable replacement mobile home site is not available, 
the price differential payment shall be computed on the basis of the 
reasonable cost of a conventional comparable replacement dwelling.
    (c) Replacement housing payment for a 90-day owner-occupant that is 
displaced from a leased or rented mobile home site. If the displacement 
mobile home owner-occupant's site is leased or rented, a 90-day owner-
occupant is entitled to a rental assistance payment computed as 
described in Sec.  24.402(b). This rental assistance replacement 
housing 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, toward 
the purchase of a replacement mobile home and the purchase or lease of 
a site or the purchase of a conventional decent, safe, and sanitary 
dwelling.
    (d) Owner-occupant 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 this section as applicable.


Sec.  24.503  Rental assistance payment for 90-day mobile home tenants 
and certain others.

    A displaced tenant or owner-occupant of a mobile home and/or site 
is eligible for a replacement housing payment, not to exceed $7,200, 
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.


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, 
1200 New Jersey Avenue SE, 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.

[[Page 69511]]

    (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) Comparable replacement dwelling, (ii). The 
requirement 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. The section 
states that it need not possess every feature of the displacement 
dwelling. However, 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) Comparable replacement dwelling, (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) Comparable replacement dwelling, (ix). 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 and associated utilities after the 
applicable government assistance has been applied.
    Section 24.2(a) Decent, safe, and sanitary, (i)(A). Even where 
local law does not mandate adherence to such standards, it is 
strongly recommended that they be considered as a matter of public 
policy.
    Section 24.2(a) Decent, safe, and sanitary, (v). Some local code 
standards for occupancy do not require kitchens. However, selection 
of comparables that provide a kitchen is recommended. The FHWA 
believes this is good practice and in most cases should be easily 
achievable. If the displacement dwelling had a kitchen, the 
comparable dwelling must have a kitchen. If the displacement 
dwelling did not have a kitchen but local code standards for 
occupancy require one, the comparable dwelling must contain a 
kitchen. If the displacement dwelling did not have a kitchen and 
local code standards for occupancy do not require one, an Agency 
does not have to provide a kitchen in the comparable dwelling. If a 
kitchen is provided in the comparable dwelling, at a minimum it must 
contain 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.
    Section 24.2(a) DSS-Persons with a disability, (vii). Reasonable 
accommodation of a displaced person with a disability at the 
replacement dwelling means the Agency is required to address persons 
with a physical impairment that substantially limits one or more of 
the major life activities. 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 other 
items that may be necessary, such as physical modification to a 
unit, based on the displaced person's needs.
    Section 24.2(a) Displaced person--Occupants of a temporary, 
daily, or emergency shelter, (iii)(M). Shelters can serve many 
purposes and each will have specific rules and requirements as to 
who can occupy or use the shelter and whether prolonged and 
continuous occupancy is allowed. Persons who are occupying a shelter 
that only allows overnight stays and requires the occupants to 
remove their personal property and themselves from the premises on a 
daily basis and that offers no guarantee of reentry in the evening 
typically would not meet the definition of displaced persons as used 
in this part, nor would the shelter meet the definition of dwelling 
as used in this part. Persons who live at the shelter on a 
continuous, prolonged, or permanent basis for reasons including that 
they are employed there or because they work to pay their rent there 
may be considered displaced. Providing advisory assistance to 
shelter occupants may be a challenge due to their transient nature. 
Agencies should make reasonable effort to provide information about 
proposed vacation date or other plans for the shelter to relocate.
    Section 24.2(a) Dwelling site. This definition ensures that the 
computation of replacement housing payments are accurate and 
realistic (a) when the dwelling is located on a larger than normal 
site, (b) when mixed-use properties are acquired, (c) when more than 
one dwelling is located on the acquired property, or (d) when the 
replacement dwelling is retained by an owner and moved to another 
site.
    Section 24.2(a) Federal down payment assistance. In some 
instances, a person may have Federal down payment assistance funds 
provided for the purpose of purchasing and occupying a dwelling. 
These funds are not Uniform Act benefits and are not used in 
combination with Uniform Act benefits. The FHWA believes that the 
purchase of a dwelling using Federal down payment assistance, 
standing alone, does not constitute an acquisition as contemplated 
by the Uniform Act. However, Federal down payment assistance 
provided to a private individual to purchase a residence is Federal 
financial assistance, as defined by the Uniform Act. It results in 
an acquisition-based displacement under the Uniform Act, however, 
only when the purpose of the acquisition is to advance a Federal 
project or program designed to benefit the public as a whole, such 
as highways, hospitals, and other public works projects. Therefore, 
those who may relocate as a result of an acquisition funded in part 
with down payment assistance are not displaced persons within the 
meaning of the Uniform Act. Furthermore, in the vast majority of 
instances where Federal down payment assistance is provided, the 
Federal Government does not have an interest in whether a specific 
property is acquired. The Federal Government's interest is only that 
the property would serve as the purchaser's dwelling and that it 
meets general criteria including those related to habitability. The 
lack of a conscious governmental decision requiring that a selected 
or specific property be acquired to advance a program or project 
demonstrates that the nature of the acquisition utilizing down 
payment

[[Page 69512]]

assistance funds is nothing more than a person purchasing a dwelling 
with limited Federal financial assistance. For instance, a person 
using Federal down payment assistance to purchase a home that a 
tenant occupies would not be an Agency causing a displacement, and 
the tenant who would have to move as a result of the acquisition of 
the home would not be a displaced person.
    Section 24.2(a) Household income (exclusions). Household income 
for purposes of this part does not include program benefits that are 
not considered income by Federal law such as food stamps and the 
Women Infants and Children program. For a more detailed list of 
income exclusions see Federal Highway Administration, Office of Real 
Estate Services website.\1\ Contact the Federal Agency administering 
the program, if there is a question on whether to include income 
from a specific program.
---------------------------------------------------------------------------

    \1\ http://www.fhwa.dot.gov/realestate/.
---------------------------------------------------------------------------

    Section 24.2(a) Initiation of negotiations. This section 
provides a special definition for acquisition and displacements 
under Public Law 96-510 or Superfund. The order of activities under 
Superfund may differ slightly in that temporary relocation may 
precede acquisition. 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 individual 
owners and tenants to potential health or safety threats and to 
offer to temporarily relocate them while additional information is 
gathered. If a decision is later made to permanently relocate such 
persons, those who had been temporarily relocated under Superfund 
authority 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 of initiation of negotiation, 
which is based on the date the Federal Government offers to 
temporarily relocate an owner or tenant from the subject property.
    Section 24.2(a) Initiation of negotiations, Tenants, (iv). 
Tenants who occupy property that may be voluntarily acquired 
amicably, without recourse to the use of the power of eminent 
domain, must be fully informed as to their potential eligibility for 
relocation assistance when negotiations are initiated. An option to 
purchase property, or similar instrument, is not a binding agreement 
because it gives the Agency a right, but not an obligation, to elect 
to purchase the property necessary for the project. A binding 
agreement as used in this appendix is a legally enforceable document 
in which the property owner agrees to sell certain property rights 
necessary for a project and the Agency agrees, without further 
election, to make that purchase.
    If negotiations fail to result in a binding agreement the Agency 
should notify tenants that negotiations have failed to result in a 
binding agreement and that the Agency has concluded its efforts to 
acquire the property. If a tenant is not readily accessible, as the 
result of a disaster or emergency, the Agency must make a good faith 
effort to provide these notifications and document its efforts in 
writing. For example, as used in this part, an option to purchase 
property is not a binding agreement because it gives the Agency a 
right to choose whether or not to purchase the property necessary 
for the project. A binding agreement as used in this appendix is a 
legally enforceable document in which the property owner agrees to 
sell certain property rights necessary for a project and the Agency 
agrees to that purchase for a specified consideration.
    Section 24.2(a) Mobile home. The following examples provide 
additional guidance on the types of mobile homes and manufactured 
housing that can be found acceptable as comparable replacement 
dwellings for persons displaced from mobile homes. 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 or has available all necessary 
utilities for functioning as a housing unit on the date of the 
Agency's inspection; and, the dwelling, as sited, meets all local, 
State, and Federal requirements for a decent, safe, and sanitary 
dwelling. (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.)
    Title 24 CFR 3280.2 defines mobile home. In 1979 the term 
``mobile home'' was changed to ``manufactured home.'' For purposes 
of this part, the terms mobile home and manufactured home are 
synonymous.
    When assembled, manufactured homes built after 1976 contain no 
less than 320 square feet. They 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 this part 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 24.5 Manner of notices. Property owners or occupants 
must voluntarily elect to receive notices via electronic methods. 
Alternatively, property owners or occupants may request delivery of 
notices via certified or registered first class mail, return receipt 
requested, instead of electronic means. Agencies must accommodate 
the property owner's or occupant's preference. The FHWA continues to 
believe that providing notices by either first class mail or 
electronic means should not to be used as a substitute for face-to-
face meetings, but rather as a supplemental means of communication 
that accommodates an owner's or occupant's preference. The FHWA 
understands that certain documents that are essential to the 
conveyance of the real property interests may not allow for 
electronic signature(s).
    In order to use electronic delivery notices, an Agency must be 
able to demonstrate the ability to securely document the notice 
delivery and receipt confirmation. Additional minimum safeguards 
that the Agency must put in place prior to delivering notices by 
electronic means are included in the regulation at Sec.  24.5. Prior 
to the use of electronic delivery, there must be a process or 
procedure outlined in written procedures approved by the Federal 
funding Agency that details the requirements and rules the State 
will follow when using electronic means for delivery of notices.
    Agencies must determine and document instances when electronic 
deliveries of notices are appropriate. An example of an appropriate 
use of electronic delivery of notices might be to notify a property 
owner of his or her right to accompany an appraiser as required at 
Sec.  24.102(c). Other appropriate uses may be to secure a release 
of mortgage or to confirm a property owners' receipt of the 
acquisition and relocation brochures.
    An example of when the use of electronic delivery of notices may 
not be appropriate is when the document being signed requires 
notarization or other similar verification. Electronic delivery of 
notices may not always be a good option for relocation assistance 
where many actions are conducted in person at the displacement or 
replacement dwelling or business and require advisory services to be 
provided as part of the process.
    These examples are not intended to be all-inclusive, nor are 
they exclusive of other opportunities to use this tool. For 
additional information, the specific Federal regulations that set 
out the format and examples for an electronic signature can be found 
at 37 CFR 1.4(d)(2). The regulations in 37 CFR 1.4(d)(2) fall under 
the purview of the United States Patent and Trademark Office, which 
provides examples of what is considered to be proper format in a 
variety of electronically signed documents.
    Section 24.9(c) Reports. The Moving Ahead for Progress in the 
21st Century Act (MAP-21) amended 42 U.S.C. 4633(b)(4) to require 
that each Federal Agency subject to the Uniform Act submit an annual 
report describing activities conducted by the Agency. The FHWA 
believes that such a report that details activity provides a good 
indication of program health and scope.
    The FHWA realizes that not all Agencies subject to this 
reporting requirement currently have the ability to collect all 
information requested on the reporting form. However, Federal 
Agencies may elect to provide a narrative report that focuses on 
their respective efforts to improve and enhance delivery of Uniform 
Act benefits and services. Narrative report information would 
include information on training offered, reviews conducted, or 
technical assistance provided to recipients.
    Section 24.11 Adjustment of relocation benefits. No more 
frequently than every 5

[[Page 69513]]

years, FHWA will use the Consumer Price Index for All Urban 
Consumers (CPI-U) Seasonally Adjusted to determine if inflation, 
cost of living, or other factors indicate that an adjustment to 
relocation benefits is warranted.
    Sample calculation:
    Assume CPI-U is 110.0 as of [EFFECTIVE DATE OF FINAL RULE]. The 
fixed payment for non-residential moving expenses has a ceiling of 
$40,000. Five years after [EFFECTIVE DATE OF FINAL RULE], or during 
a subsequent 5th year evaluation, the CPI-U is calculated to be 
115.5.
    Divide the new index by the base year index = 115.5/110.0 = 
1.050 or 5 percent. This means there has been a 5 percent increase 
in prices and the fixed payment for non-residential moving expenses 
ceiling should be increased 5 percent.
    Calculate fixed payment benefit ceiling = $40,000 x 1.05 = 
$42,000.

Subpart B--Real Property Acquisition

    For Federal eminent domain purposes, the terms ``fair market 
value'' (as used throughout this subpart) and ``market value,'' 
which may be the more typical term in private transactions, are 
synonymous.
    Section 24.101(a) Direct Federal program or project. All the 
requirements in subpart B of this part (real property acquisition) 
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 Utilities Service. There are 
no exceptions for ``voluntary transactions.''
    Section 24.101(b)(1)(i). The term ``general geographic area'' is 
used to clarify that an Agency carrying out a project or program can 
achieve the purpose of the project or program by purchasing any of 
several properties that are not necessarily contiguous or are not 
limited to a specific group of properties.
    Section 24.101(b)(1)(iv) and (b)(2)(ii). Section 
24.101(b)(1)(iv) and (b)(2)(ii) provide that, for programs and 
projects receiving Federal financial assistance described in Sec.  
24.101(b)(1) and (2), Agencies are to inform the owner(s) or their 
designated representative(s) in writing of the Agency's estimate of 
the fair 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 fair market value of 
these properties, and, in any event, persons developing a waiver 
valuation must have some reasonable basis for their determination of 
fair 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.
    After an Agency has established an amount it believes to be the 
fair market value of the property and has notified the owner of this 
amount in writing, an Agency may negotiate freely with the owner in 
order to reach agreement. Since these transactions are voluntary, 
accomplished by a willing buyer and a willing seller, negotiations 
may result in agreement for the amount of the original estimate, an 
amount exceeding it, or for a lesser amount. Although not required 
by this part, it would be entirely appropriate for Agencies to apply 
the administrative settlement concept and procedures in Sec.  
24.102(i) to negotiate amounts that exceed the original estimate of 
fair market value. Agencies shall not take any coercive action in 
order to reach agreement on the price to be paid for the property.
    Section 24.101(b)(2)(iii). The intent of this section is to 
ensure that a property owner or their designated representative is 
clearly informed that an Agency will not utilize its eminent domain 
authority to acquire the property if negotiations fail to result in 
an amicable agreement. In instances where an unanticipated or 
unplanned need arises which may require use of eminent domain 
authority to acquire a property on which the Agency has made a 
voluntary acquisition offer, the Agency must request permission to 
waive the requirements of the applicable parts of the regulations in 
this part. Because the purpose of this section is to allow for 
voluntary acquisitions, the subsequent use of eminent domain 
authority must only be in exceptional circumstances which must be 
infrequent and well documented as to the reason for needing to use 
eminent domain authority to acquire a property after failing to 
acquire it voluntarily.
    Section 24.101(c) Less-than-full-fee interest in real property. 
Section 24.101(c) provides a benchmark beyond which the requirements 
of the subpart clearly apply to leases.
    Section 24.102(b) Notice to owner. In the case of condominiums 
and other types of housing with common or community areas, 
notification should be given to the appropriate parties. The 
appropriate parties could be a condo or homeowner's board, a 
designated representative, or all individual owners when common or 
community property is being acquired for the project.
    Section 24.102(c)(2) Appraisal, waiver thereof, and invitation 
to owner. The purpose of the appraisal waiver provision is to 
provide Agencies a technique to avoid the costs and time delay 
associated with appraisal requirements for uncomplicated 
acquisitions. In most cases, uncomplicated acquisitions are 
considered to be those involving unimproved strips of land. 
Acquisitions involving improvements, damages, changes of highest and 
best use, or significant costs to cure are considered to be 
complicated and, as such, are beyond the application of waiver 
valuations as contemplated in this part. The intent is that non-
appraisers make the waiver valuations, freeing appraisers to do more 
complex work.
    The Agency employee or contractor making the determination to 
use the waiver valuation option must have enough understanding of 
appraisal principles, techniques, and use of appraisals to be able 
to determine whether the proposed acquisition is uncomplicated.
    Waiver valuations are not appraisals as defined by the Uniform 
Act and this part; therefore, appraisal performance requirements or 
standards, regardless of their source, are not required for waiver 
valuations by this part. Since waiver valuations are not appraisals, 
neither is there a requirement for an appraisal review. Agencies 
should put procedures in place to ensure that waiver valuations are 
accurate and that they are consistent with the unit values on the 
project as determined by appraisals and appraisal reviews. 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).
    The definition of ``appraisal'' in the Uniform Act and waiver 
valuation provisions of the Uniform Act and this part are Federal 
law and public policy and should be considered as such when 
determining the impact of appraisal requirements levied by others.
    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 should 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 the requirement 
in Sec.  24.102(f), 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 eminent domain process, including gaining possession 
of the needed real property, is very time consuming. The provisions 
of Sec.  24.102(f) 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 in the preceding paragraph, and 
the Agencies adhere to the Uniform Act ban on coercive action 
(section 301(7) of the Uniform Act).
    If the owner expresses intent to provide an appraisal report, 
Agencies are encouraged to provide the owner and/or their 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

[[Page 69514]]

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, waste, and abuse while allowing 
Agencies to operate as efficiently as possible. There are three 
parts to the provision in Sec.  24.102(n).
    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 valuation), 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, valuer, or review 
appraiser performing appraisal, waiver valuation, or appraisal 
review work for that project or program. The intent of this 
provision is to ensure appraisal and/or valuation independence and 
to prevent inappropriate influence. It is not intended to prevent 
Agencies or recipients from providing appraiser and/or valuers with 
appropriate project information or participating in determining the 
scope of work for the appraisal or valuation. 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 or recipient. The intent is to accommodate Federal 
financial 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. Section 24.102(n) 
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. Agencies or recipients 
are not required to use those who prepare a waiver valuation or 
appraisal of $10,000 or less to negotiate the acquisition. All 
appraisals must be reviewed in accordance with Sec.  24.104. This 
includes appraisals of real property valued at $10,000, or less.
    The third provision has been expanded to allow Federal Agencies 
to permit use of a single agent for values of more than $10,000, but 
less than $25,000, but, as a safeguard, requires that an appraisal 
and appraisal review be done to allow the appraiser to also act as 
the negotiator. Agencies or recipients desiring to exercise this 
option must request approval in writing from the Federal funding 
Agency. The Agency request to exercise single agent option for 
properties with a value of between $10,000 and $25,000 must include 
the anticipated benefits of, and reasons for, raising the ceiling 
above $10,000, the oversight mechanism used to assure proper use and 
review, the names and credentials of individuals who will be 
performing as single agents, and quality control procedures to be 
utilized. Agencies and recipients may allow a subrecipient to use 
their approved authority if the subrecipient has an Agency or 
recipient approved oversight mechanism to assure proper use and 
review of the authority. This mechanism must include documentation 
of, the names and credentials of individuals who will be performing 
as single agents, and quality control procedures to be utilized.
    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) includes appraisal performance requirements 
that are an inherent part of this section.
    The term ``Federal and federally assisted program or project'' 
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 or projects are located in this part. 
These are the basic appraisal requirements for Federal and federally 
assisted programs or projects. However, Agencies may enhance and 
expand on them, and there may be specific project or program 
legislation that references other appraisal requirements.
    The appraisal requirements in Sec.  24.103(a) are necessarily 
designed to comply with the Uniform Act and other Federal eminent 
domain based appraisal requirements. They are also considered to be 
consistent with Standards 1, 2, 3, and 4 of the USPAP. Consistency 
with USPAP has been a feature of these appraisal requirements since 
the beginning of USPAP. This ``consistent'' relationship was more 
formally recognized in OMB Bulletin 92-06. While these requirements 
are considered consistent with USPAP, neither can supplant the 
other; their provisions are neither identical, nor interchangeable. 
Appraisals performed for Federal and federally assisted real 
property acquisition must follow the requirements in this part. 
Compliance with any other appraisal requirements is not the purview 
of this part. An appraiser who is committed to working within the 
bounds of USPAP should recognize that compliance with both USPAP and 
these requirements may be achieved by using the Scope of Work Rule 
and the Jurisdictional Exception Rule of USPAP, where applicable.
    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, whether it is 
fair 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 should consider the specific requirements in Sec.  
24.103(a)(2)(i) through (v) and address them as appropriate.
    Section 24.103(a)(1). The appraisal report should identify the 
items considered in the appraisal to be real property, as well as 
those identified as personal property.
    Section 24.103(a)(2). 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 and yield 
credible appraisal results 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 and professional 
society designations can help provide an indication of an 
appraiser's abilities.
    Section 24.104 Review of appraisals. 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 possess both appraisal 
technical abilities and the ability to be the two-way bridge between 
the Agency's real property valuation needs and the appraiser.

[[Page 69515]]

    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 scope of 
work 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. In addition, review appraisers are 
frequently technical advisors to other Agency officials.
    Section 24.104(a). Section 24.104(a) states that the review 
appraiser is to review the appraiser's presentation and analysis of 
market information and that 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 
review appraiser's recommended (or approved) value depend on the 
complexity of the appraisal problem. If the initial appraisal 
submitted for review is not acceptable, the review appraiser is 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 approve 
the appraisal (as the basis for the establishment of the amount 
believed to be just compensation), or 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 approve the appraisal (as the basis for 
the establishment of the amount believed to be just compensation), 
or establish the amount believed to be just compensation, that 
authority remains with another Agency official.
    Section 24.104(b). In developing an independent approved or 
recommended value, the review appraiser may reference any acceptable 
resource, including acceptable parts of any appraisal, including an 
otherwise unacceptable appraisal. When a review appraiser develops 
an independent value, while retaining the appraisal review, that 
independent value also becomes the approved appraisal of the fair 
market value for Uniform Act Section 301(3) 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 
recommendation (or 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.

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 Sec.  24.202 and section 205(c) of the Uniform Act and 
document its efforts in writing.
    Section 24.204 Availability of comparable replacement dwelling 
before displacement.
    Section 24.204(a) General. Section 24.204(a) 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(a). As part of the relocation planning process 
Agencies should, to the extent practical, identify relocations that 
may require additional time for advisory services and coordination 
for their relocations. Such relocations may include the elderly, 
those with medical needs, and those in public housing. In each of 
these examples, the relocation requires that the unique needs of the 
relocated person be determined early and that the relocation agent 
make full use of available social services and other program support 
(examples include local transportation services that may be 
available in certain areas, financial support available from local, 
Federal, and State Agencies, and community support services that may 
be available) in considering and developing a relocation plan.
    Section 24.205(c)(2)(ii)(C). Whenever possible, comparable 
replacement housing must be inspected. The selected comparable 
replacement dwelling should be inspected by a walk through and 
physical interior and exterior inspection. Reliance on an exterior 
visual inspection or examination of a multiple listing service (MLS) 
listing, in most cases, does not constitute a complete DSS 
inspection. If an inspection is not possible, the relocated person 
must be informed in writing that an inspection was not possible and 
be provided an explanation of why the inspection was not possible.
    Section 24.205(c)(2)(ii)(D) 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. Agencies should maintain adequate written documentation 
of compliance with this requirement. Documentation should address 
efforts made to locate such comparable and replacement housing to 
the extent practical.
    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 nonresidential 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 Sec.  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 and may not be 
coerced by the Agency.
    Section 24.208(c) Aliens not lawfully present in the United 
States--computing relocation payments if some members of a displaced 
family are present lawfully but others are present unlawfully.
    There are two different methods for computing relocation 
payments in situations where some members of a displaced family are 
present lawfully but others are present unlawfully. For moving 
expenses, the payment is to be based on the proportion of lawfully 
present occupants to the total number of occupants. For example, if 
four out of five members of a family to be

[[Page 69516]]

displaced are lawfully present, the proportion of lawful occupants 
is 80 percent and that percentage is to be applied against the 
moving expenses payment that otherwise would have been received. 
Similarly, unlawful occupants are not counted as a part of the 
family for RHP calculations. Thus, a family of five, one of whom is 
a person not lawfully present in the U.S., would be counted as a 
family of four. The comparable replacement dwelling for the family 
would reflect the makeup of the remaining four persons, and the RHP 
would be computed accordingly.
    A ``pro rata'' approach to an RHP calculation is not permitted 
(consistent with Pub. L. 105-117; codified at 42 U.S.C. 4605). 
Following such a calculation would require that the Agency 
disregards alien status for comparability determination, select a 
comparable and then apply a percentage to the RHP amount. A ``pro 
rata'' calculation approach for RHP may result in a higher RHP 
eligibility than the displaced persons would otherwise be eligible 
to receive.
    The ``pro rata'' approach of providing a percentage of the 
calculated RHP eligibility is contrary to the requirements of the 
Uniform Act and this part.
    A correct example of a calculation would be:

Household of seven (including one alien not lawfully present 
individually occupying one bedroom.)
Displacement dwelling--4 BR unit, with rent/utilities of $1,200/
month
Housing requirements for all lawful occupants (six) is a 3 BR unit
Comparable dwelling
3 BR unit with rent/utilities of $1,300/month
Calculation of RHP under Sec.  24.208(c) (alien not lawfully present 
excluded)

$1,300 (comparable)-$1,200 (displacement unit) = $100 RHP x 42 
months = $4,200 RHP

    If a person who is a member of a family being displaced is not 
eligible for and does not receive Uniform Act benefits because he or 
she is not lawfully in the United States, that person's income shall 
not be excluded from the computation of family income. The person's 
income is counted unless the Agency is certain that the ineligible 
person will not continue to reside with the family. To exclude the 
ineligible person's income would result in a windfall by providing a 
higher relocation payment.
    Section 24.208(h). The meaning of the term ``exceptional and 
extremely unusual hardship'' focuses on significant and demonstrable 
impacts on health, safety, or family cohesion. This phrase is 
intended to allow judgment on the part of the Agency and does not 
lend itself to an absolute standard applicable in all situations.
    When considering whether a hardship exemption is appropriate, an 
Agency may examine only the impact on an alien's spouse, parent, or 
child who is a citizen or an alien lawfully admitted for permanent 
residence in the United States. In determining who is a spouse, 
Agencies should use the definition of that term under State or other 
applicable law.
    A standard of hardship involves more than the loss of relocation 
payments and/or assistance alone. Also, income alone (for example, 
measured as a percentage of income spent on housing) would not make 
the denial of benefits an ``exceptional and extremely unusual 
hardship'' and qualify for a hardship exemption. In keeping with the 
principle of allowing Agencies maximum reasonable discretion, FHWA 
believes the decision regarding what documentation is required to 
support a claim of hardship is one best left to the Federal funding 
Agency, as long as the decision is handled in a nondiscriminatory 
manner.

Subpart D--Payment for Moving and Related Expenses

    Section 24.301 Payment for Actual Reasonable Moving and Related 
Expenses.
    Section 24.301(e) Personal property only. Examples of personal 
property only moves might be: Personal property that is located on a 
portion of property that is being acquired, but the business or 
residence will not be acquired and can still operate after the 
acquisition; personal property that is located in a mini-storage 
facility that will be acquired or relocated; or, personal property 
that is stored on vacant land that is to be acquired. For such a 
residential personal property move, there may be situations in which 
the costs of obtaining moving bids may exceed the cost to move. In 
those situations, the Agency may allow an eligibility determination 
and payment based upon the use of the ``additional room'' category 
of the Fixed Residential Move Cost Schedule at www.fhwa.dot.gov/real_estate/practitioners/uniform_act/relocation/moving_cost_schedule.cfm.
    For a nonresidential personal property only move, the owner of 
the personal property has the options of moving the personal 
property by using a commercial mover or a self-move. If a question 
arises concerning the reasonableness of an actual cost move, the 
Agency may obtain estimates from qualified movers to use as the 
standard in determining the payment.
    Section 24.301(g)(3) through (5). Construction costs for a new 
building at the business replacement site, costs to build out a 
shell, or costs substantially reconstruct a building are generally 
ineligible for reimbursement of expenses for disconnecting, 
dismantling, removing, reassembling, and reinstalling relocated 
household appliances and other personal property. (See Section 
24.304(b)(5) of this appendix for further discussion of ineligible 
capital expenses).
    Section 24.301(g)(13) Relettering signs and replacing 
stationery. This may include the content of other media that need 
correcting such as DVDs and CDs. This may also include modifications 
to websites that would modify and edit contact and new location 
information made necessary because of the move. Agencies will need 
to determine whether these costs are actual, reasonable, and 
necessary.
    Section 24.301(g)(14)(i) through (iii). 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. As prescribed in the part, the allowable in-place 
value estimate (Sec.  24.301(g)(14)(ii)) and moving cost estimate 
(Sec.  24.301(g)(14)(iii)) must reflect only the ``as is'' condition 
and installation of the item at the displacement site. The in-place 
value estimate may not include costs that reflect code or other 
requirements that were not in effect at the displacement site. The 
in-place value estimate may also not include installation costs for 
machinery or equipment that is not operable or not installed at the 
displacement site. Value in place can be obtained by hiring a 
machinery and equipment (M&E) appraiser or value can be estimated 
via websites available for M&E valuations. An example of one 
resource is The Association of Machinery and Equipment Appraisers 
(AMEA) website.\2\ The AMEA is a nonprofit professional association 
whose mission is to accredit certified equipment appraisers. Another 
example of available resources can be found on the website of The 
American Society of Appraisers; a multi-discipline, non-profit, 
international organization of professional appraisers. They maintain 
a separate web page for machinery and equipment appraisers.\3\ 
Should an Agency find itself in need of a machinery and equipment 
appraisal a web search for either ``machinery and equipment 
appraisers'' or ``machinery and equipment appraisers organizations'' 
will provide a number of resources which can be used to find the 
necessary services and resources. It is important to note that FHWA 
does not endorse or recommend any organization, society or 
professional group. The information provided in this appendix is 
strictly informational.
---------------------------------------------------------------------------

    \2\ http://www.amea.org/.
    \3\ http://www.appraisers.org/Disciplines/Machinery-Technical-Specialties.
---------------------------------------------------------------------------

    Section 24.301(g)(17) Searching expenses. In special cases where 
the 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 attorney's fees required to obtain such licenses or 
permits are also reimbursable. Time spent in negotiating the 
purchase of a replacement business site is also reimbursable based 
on a reasonable salary or earnings rate. In those instances when 
such additional costs to investigate and acquire the site exceed 
$5,000, the Agency may consider requesting a 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 of authority. As an alternative 
to the preceding sentences in this section, Federal funding Agencies 
may determine that it is appropriate to allow for payment of 
searching expenses of up to $1,000 with little or no documentation 
under this part. It is expected that each Federal funding Agency 
will

[[Page 69517]]

consider and address the potential for waste, fraud, or abuse and 
may develop additional requirements to implement this provision. 
Such requirements may include development of policy or procedure or 
by requiring specific changes or inclusions in the written 
procedures approved by the Federal funding agency.
    Search expenses may be incurred anytime the business anticipates 
it may be displaced, including prior to project authorization or the 
initiation of negotiations. However, such expenses cannot be 
reimbursed until the business has received the notice in Sec.  
24.203(b) and only after the Agency has determined such costs to be 
actual, reasonable, and necessary.
    Section 24.302. The occupant of a seasonal residence could 
receive a payment based upon the Fixed Residential Move Cost 
Schedule or actual moving expenses in accordance with Sec.  24.301. 
Persons owning or renting seasonal residences are generally not 
eligible for any relocation payments other than personal property 
moving expenses.
    Section 24.303(a). Actual, reasonable, and necessary 
reimbursement for connection to available utilities are for the 
necessary improvements to utility services currently available at 
the replacement property. Examples include (a) a Laundromat business 
that requires a larger service tap than the typical business service 
tap already on the property, and (b) a business that requires an 
upgrade or enhancement of the existing single phase electrical 
service to provide 3-phase electrical service.
    Section 24.303(b) Professional services. If a question should 
arise as to what is a ``reasonable hourly rate,'' the Agency should 
compare the rates of other similar professional providers in that 
area.
    Section 24.303(c) Impact fees and one-time assessments for 
anticipated heavy utility usage.
    Section 24.303(c) limits impact fees or one-time assessments to 
those for anticipated heavy utility usage to utilities, i.e., water, 
sewer, gas, and electric. Impact fees and one time assessments that 
may be levied on a non-residential relocated person in their 
replacement location for other major infrastructure construction or 
use such as roads, fire stations, regional drainage improvements, 
and parks are not eligible. Providing information on the potential 
eligibility of impact fees for anticipated heavy utility usage is an 
important advisory service.
    Section 24.304(b)(5) Ineligible expenses. The cost of 
constructing a replacement structure, building out of a shell, or 
substantially reconstructing a building is a capital expenditure and 
is generally ineligible for reimbursement as a reestablishment 
expense. In those rare instances when a business cannot relocate 
without construction of a replacement structure, an Agency or 
recipient may request a waiver of Sec.  24.304(b)(1) under the 
provisions of Sec.  24.7. An example of such an instance would be in 
a rural area where there are no suitable buildings available and the 
new construction, reconstruction, or build out of a shell as a 
replacement structure is the only option that will enable the 
business to remain a viable commercial operation. If a waiver is 
granted, the cost of new construction, reconstruction, or build out 
of a shell as a replacement structure will be considered an eligible 
reestablishment expense subject to the $25,000 statutory limit on 
such payment.
    In markets where existing and new buildings are available for 
rental (and sometimes for purchase), the buildings or the various 
units available within the buildings often have only the basic 
amenities such as heat, light, and water, and sewer available. These 
buildings or units are shells. The cost of the building (shell) is 
not an eligible expense because the shell is considered a capital 
real estate improvement (a capital asset). A certain degree of 
construction costs are generally expected by the market because 
shells are designed to be customized by the tenant. However, a shell 
which is dilapidated or is in disrepair and which requires major 
reconstruction or rehabilitation would not be eligible for 
reimbursement under this part. However, this determination does not 
preclude the consideration by an Agency of certain modifications to 
an existing replacement business building. Eligible improvements or 
modifications up to the amount of $25,000 may include the addition 
of necessary facilities such as bathrooms, room partitions, built-in 
display cases, and similar items, if required by Federal, State, or 
local codes, ordinances, or simply considered reasonable and 
necessary for the operation of the business.
    Section 24.305 Fixed payment for moving expenses--nonresidential 
moves.
    Section 24.305(a) Business. If a business elects the fixed 
payment for moving expenses (in lieu of payment) option, the payment 
represents its full and final payment for all relocation expenses. 
Should the business elect to receive this payment, it would not be 
eligible for any other relocation assistance payments including 
actual moving or related expenses, or reestablishment expenses.
    Section 24.305(c) Farm operation. If a farm operation elects the 
fixed payment for moving expenses (in lieu of payment) option, the 
payment represents its full and final payment for all relocation 
expenses. Should the farm elect to receive this payment, it would 
not be eligible for any other relocation assistance payments 
including actual moving or related expenses, and reestablishment 
expenses.
    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 nonprofit 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 nonprofit 
organization are not included in administrative expenses. The 
monetary receipts and expense amounts may be verified with certified 
financial statements or financial documents required by public 
Agencies.
    If a nonprofit organization elects the fixed payment for moving 
expenses (in lieu of payment) option, the payment represents its 
full and final payment for all relocation expenses. Should the 
nonprofit organization elect to receive this payment, it would not 
be eligible for any other relocation assistance payments including 
actual moving or related expenses, or reestablishment expenses.
    Section 24.305(e) Average annual net earnings of a business or 
farm operation. Section 24.305(a)(6) requires that the business 
contribute materially to the income of the displaced person during 
the 2 taxable years prior to displacement. This does not mean that 
the business needed to be in existence for a minimum of 2 years 
prior to displacement to be eligible for this payment.
    If a business has been in operation for only a short period of 
time (i.e., 6 months) prior to displacement, the fixed payment would 
be based on the net earnings of the business at the displacement 
site for the actual period of operation projected to an annual rate. 
If a business was not in operation for a full 2 years, the existing 
net earnings income data should be used to project what the net 
earnings could be if the business were in operation for a full 2 
years. If the business is seasonal, the business' operating season 
net income represents the full annual income for the purposes of 
calculating this benefit.
    For Example:
    (1) Business in operation for only 6 months earned $10,000.

Computation: ($10,000 / 6) x 12 = $20,000 annual net earnings x 2 
years = $40,000 divided by 2 = $20,000; Eligibility = $20,000. 
(Average annual net earnings.)

    (2) Business in operation 18 months earned $20,000.

Computation: $20,000 divided by 18 months = $1,111 per month x 24 
months = $26,664 divided by 2 years = $13,332; Eligibility = $13,332 
(Average annual net earnings)

    (3) Business is seasonal--open summer only for 4 months and 
earns $5,000.

Computation: $5,000 was the seasonal net earnings 1 year and $6,000 
was the seasonal net earnings a second year. $11,000 divided by 2 = 
$5,500; Eligibility = $5,500. (Average annual net earnings)

    If the average annual net earnings of the displaced business, 
farm, or nonprofit 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 90-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

[[Page 69518]]

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 fair market value for 
residential use does not mean the Agency must have the property 
appraised. Any reasonable method for arriving at the fair market 
value may be used.
    Section 24.401(d) Increased mortgage interest costs. The 
provision in Sec.  24.401(d) 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 down payment) 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 Annual 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 
divided by $42,010.18 = .8331; $9,250.13 multiplied by .83 = 
$7,706.57).
    The Agency is obligated to inform the displaced person of the 
approximate amount of this payment and to advise the displaced 
person of the interest rate and points used to calculate the 
payment.
    The FHWA has an online tool to calculate increased mortgage 
interest costs for fixed, and interest only loans at: 
www.fhwa.dot.gov/real_estate/practitioners/uniform_act/relocation/midpcalcs/.
    Section 24.401(e) Home equity conversion mortgage (HECM). The 
provision in Sec.  24.401(e) sets forth the factors to be considered 
to estimating an amount, after paying off the existing HECM balance, 
sufficient to purchase a replacement HECM that provides a tenure or 
term payment, line of credit, or lump-sum disbursement. The Agency 
must know the value of the acquired dwelling, existing balance of 
displacement HECM, remaining equity, and price of the selected 
comparable or actual replacement dwelling, to compute the estimated 
HECM supplement payment for a replacement HECM. The FHWA website 
provides a simple calculator to estimate the HECM supplement payment 
needed to purchase a replacement HECM at www.fhwa.dot.gov/realty/. 
In cases where there is a tenure or term payment additional 
information such as the age of the youngest borrower, amounts of the 
tenure payment, amount and remaining term of term payment and the 
current interest rate, is needed to calculate the payment and will 
require the assistance of a HECM mortgage broker.
    Below are four scenarios and suggestions for relocation payment 
eligibilities. As you will note, the eligibility is the same in each 
case; however, amounts will vary depending on the individual's 
circumstance and existing HECM terms. This appendix also contains a 
list of other possible Agency options, should a displaced person 
elect to use them; however, they are not recommended by FHWA because 
they do not place the person into a replacement HECM.
    Situation 1--Owner has sufficient remaining equity to obtain a 
replacement HECM for purchase.
    Situation 2--Owner's existing HECM has a tenure disbursement 
payment and there is not sufficient remaining equity to obtain a 
replacement HECM.
    Situation 3--Owner's existing HECM has a term disbursement 
payment and there is not sufficient remaining equity to obtain a 
replacement HECM.
    Situation 4--Owner's existing HECM is a line of credit and there 
is not sufficient remaining equity to obtain a replacement HECM.
    The displaced homeowner may be eligible for the following 
relocation payments:
     A price differential payment in accordance with Sec.  
24.401(c).
    The owner would be eligible for a price differential payment 
(the difference between the comparable replacement dwelling and the 
acquisition cost of the displacement dwelling).
     The administrative costs and incidental expenses 
necessary to establish the new HECM.
    Incidental costs incurred with a replacement HECM are 
reimbursable and fall into three categories- Mortgage insurance 
premium (MIP), loan origination fee, and closing costs.
     A mortgage interest differential payment if the 
homeowner incurs a higher interest rate on the new HECM.
    The payment would be based on the difference between the 
displacement adjustable-rate mortgage (ARM) cap rate and the 
available ARM cap rate and those rates would be used as the 
components to calculate the MIDP in accordance with the sample 
calculation provided at Section 24.401(d) of this appendix. The 
Agency must advise the displaced person of the interest rate used to 
calculate the payment. Note that most HECMs are monthly adjustable 
rate mortgages, so any interest differential payment would be 
minimal.
     If the displaced homeowner elects to relocate into 
rental housing rather than remain a homeowner, then the Agency will 
calculate relocation assistance payments in accordance with Sec.  
24.401(g).
    For example, the Agency computes a rental assistance payment of 
$10,000 for the owners based on a comparable replacement rental 
dwelling. When the owners settle with the Agency they will pay off 
the balance of the HECM and retain any remaining equity in the 
property. They are eligible for the rental assistance payment when 
they rent and occupy the DSS replacement dwelling.

    Note:  In all situations, if the displaced homeowner elects to 
relocate into rental housing rather than remain homeowner, then the 
Agency will calculate relocation assistance payments in accordance 
with Sec.  24.401(g).


    Note:  If the existing HECM was a lump-sum or line-of-credit 
which has been exhausted, then the Agency is not under obligation to 
replace those amounts, but only to replace the HECM with a HECM with 
terms and equity similar to the displacement HECM.

    Other Agency options (not recommended unless elected by the 
displaced person, since they do not place the person into the same 
situation as the displacement HECM provided):
     A direct loan as set forth in Sec.  24.404 under 
housing of last resort.
     A life estate interest in a comparable replacement 
dwelling under replacement housing of last resort.
     Agency purchases a comparable replacement dwelling and 
retains ownership and conveys a leasehold interest to the owner for 
his/her lifetime.
     Agency offers a comparable replacement rental dwelling 
to convert the homeowner occupant to tenant status.
    Section 24.402 Replacement Housing Payment for 90-day tenants 
and certain others.
    Section 24.402(b)(2) Low income calculation example. The Uniform 
Act

[[Page 69519]]

requires that an eligible displaced person who rents a replacement 
dwelling is entitled to a rental assistance payment calculated in 
accordance with Sec.  24.402(b). One factor in this calculation is 
to determine if a displaced person is ``low income,'' as defined by 
the U.S. Department of Housing and Urban Development's annual survey 
of income limits for the Public Housing and Section 8 Programs. To 
make such a determination, the Agency must: (1) Determine the total 
number of members in the household (including all adults and 
children); (2) locate the appropriate table for income limits 
applicable to the Uniform Act for the State in which the displaced 
residence is located (found at: http://www.fhwa.dot.gov/realestate/ua/ualic.htm); (3) from the list of local jurisdictions shown, 
identify the appropriate county, Metropolitan Statistical Area 
(MSA),\4\ or Primary Metropolitan Statistical Area (PMSA) \5\ in 
which the displacement property is located; and (4) locate the 
appropriate income limit in that jurisdiction for the size of this 
displaced person/family. The income limit must then be compared to 
the household income (defined at Sec.  24.2(a)) which is the gross 
annual income received by the displaced family, excluding income 
from any dependent children and full-time students under the age of 
18. If the household income for the eligible displaced person/family 
is less than or equal to the income limit, the family is considered 
``low income.'' For example:
---------------------------------------------------------------------------

    \4\ A complete list of counties and towns included in the 
identified MSAs and PMSAs can be found under the bulleted item 
``Income Limit Area Definition'' posted on the FHWA's website at: 
http://www.fhwa.dot.gov/realestate/ua/ualic.htm.
    \5\ See footnote 4.
---------------------------------------------------------------------------

    Tom and Mary Smith and their three children are being displaced. 
The information obtained from the family and verified by the Agency 
is as follows:

Tom Smith, employed, earns $21,000/yr.
Mary Smith, receives disability payments of $6,000/yr.
Tom Smith, Jr., 21, employed, earns $10,000/yr.
Mary Jane Smith, 17, student, has a paper route, earns $3,000/yr. 
(Income is not included because she is a dependent child and a full-
time student under 18)
Sammie Smith, 10, full-time student, no income.

Total family income for five persons is: $21,000 + $6,000 + $10,000 
= $37,000

    The displacement residence is located in the State of Maryland, 
Caroline County. The low income limit for a five person household 
is: $64,300. (2014 Income Limits)
    This household is considered ``low income.''
    Section 24.402(c) Down payment assistance. 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. 
It does, however, provide the latitude for Agency discretion in 
offering down payment assistance that exceeds the computed rental 
assistance payment, up to the $7,200 statutory maximum. This does 
not mean, however, that such Agency discretion may be exercised in a 
selective or discriminatory fashion. The 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 rental 
assistance payment, for a displaced homeowner who elects to rent a 
replacement dwelling may not be more than the eligibility the 
homeowner would have received as an eligible displaced home owner.
    Section 24.403(a)(1) Determining cost of comparable replacement 
dwelling. In Sec.  24.403(a)(1) the term ``examined'' an MLS listing 
does not equate to ``inspected'' but rather to ``considered'' for 
the payment eligibility computation. At a minimum, the selected 
comparable dwelling should be physically inspected or, if an 
inspection is not feasible, the displaced person shall be informed 
in writing that a physical inspection of the interior or exterior 
was not performed, the reason that the inspection was not performed, 
and that if the comparable is selected as a replacement dwelling a 
replacement housing payment may not be made unless the replacement 
dwelling is subsequently inspected and determined to be decent, 
safe, and sanitary. Reliance on an exterior visual inspection, or 
examination of an MLS listing does not in most cases constitute a 
full DSS inspection.
    Each Agency should clearly inform displaced persons that a DSS 
inspection as required by this part is only a cursory inspection to 
ensure that certain minimum requirements (e.g., local housing codes) 
are being met versus doing a full home inspection of all systems 
similar to that which a home inspector would be hired to do.
    Section 24.403(a)(3) Additional rules governing replacement 
housing payments. The economic value to the owner of a remainder may 
be as an actual buildable lot for sale to an adjoining property 
owner, or for some other purpose for which the Agency attributes an 
economic value to the owner. When allowed for under applicable law, 
a single offer that includes the value of the remainder property 
should be made. The purpose of making an offer to purchase the 
remainder is to allow for an RHP calculation and benefit 
determination that includes the value of the remainder as part of 
the compensation offered to the owner for acquisition, whether the 
property owner sells the remainder or choses to retain it. Should a 
property owner decide to retain a remainder then he would be 
responsible for the value of the remainder when he purchases his 
replacement property. Example B shows the effect that a property 
owner's decision to retain a remainder or a States inability to make 
an offer to purchase the remainder would have on the calculation of 
benefits.
    The price differential portion of the replacement housing 
payment would be the difference between the comparable replacement 
dwelling and the Agency's highest written acquisition offer. In the 
examples below, the before value of the typical residential dwelling 
and lot is $180,000; the remnant is valued at $15,000, and the part 
needed for the project, including the dwelling, is valued at 
$165,000 the comparable replacement dwelling is valued at $200,000. 
The price differential would be calculated as follows in the two 
scenarios:

             (Example A) Agency Offers To Acquire Remainder
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Comparable replacement dwelling...................  .........   $200,000
Before value of parcel............................   $180,000  .........
Minus: Remainder Value............................     15,000  .........
Acquisition of Part Needed........................    165,000  .........
Agency's highest written offer....................  .........    180,000
Price Differential Payment Eligibility............  .........     20,000
------------------------------------------------------------------------


         (Example B) Agency Does Not Offer To Acquire Remainder
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Comparable Replacement Dwelling...................  .........   $200,000
Before value of parcel............................   $180,000  .........
Minus: Remainder Value (owner retains)............     15,000  .........
Acquisition of Part Needed........................    165,000  .........
Agency's highest written offer for part needed....  .........    165,000
Price Differential Payment Eligibility............  .........     35,000
------------------------------------------------------------------------

    Section 24.404 Replacement housing of last resort.
    Section 24.404(b) Basic rights of persons to be displaced. 
Section 24.404(b) affirms the right of a 90-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). 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. Section 24.404(c) 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 69520]]

    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 
Act. 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), 1200 New 
Jersey Avenue SE, 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 this part 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 (such 
as 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.
    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] TP18DE19.001

[FR Doc. 2019-25558 Filed 12-17-19; 8:45 am]
 BILLING CODE 4910-22-P