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„,,:,, ';,d.4:- <br /> - <br /> ':',1.:2.7- faders' Register / Vol. 54. No. 40 / Thursday, March 2. 1989 1 Rules and Regulations rf <br /> -.: , prganizations to range from Conference Report.that utilities would use than the"date the displacing <br /> n obligation <br /> �- Wi �gep,0Q0 hexed on criteria continue to pay those ordinary age c7►`s under 124.204 is <br /> -' - bu�esses.i.e.the average relocation costs within their reasonable met”and has been retained where <br /> to <br /> =j` , revenue fore years minus contemplation as occupants of local feasible. <br /> . „ e nses. Ma procedure will rights-of-way • • '"FHWA believes Section 24.401(d).'Thirty-one <br /> equitable for nonprofit the language of this section will allow a comments were received concerning the <br /> �*dons. utility company to present its case for method for computing increased <br /> i. :,,.',$*'.,-.a 24308(e1 Average annual net those expenses which it considers to be mortgage interest payments.The <br /> b� of a business ar farm "not routine or predictable"and not commenters were about evenly split <br /> iron.Several comments were ordinarily budgeted as operating between preference for the buydown <br /> method aspresented in the bodyof the <br /> *e-,,,m.-,ved about the computation of expenses. <br /> 4i, <br /> ;• . annual net earnings when Four comments urged removal of the NPRM.and the buydown method <br /> -..'1.,,e;- ,ass or farm operations suffer a net provision which would exclude from presented in the preamble.A few <br /> f;•,174, .- For any year.'lhere are several extraordinary expenses those expenses wanted the option of using the former <br /> „, to compute net losses.Some which the utility company has explicitly annuity or amortization method if it <br /> , es have used"0”if the net and knowingly agreed to bear as ashouldprove less expensive for the <br /> 7' Svgs result in a t loss.Other condition for use of the right-of-way. <br /> . <br /> Agency- <br /> '..." duse e tba actual <br /> neout toss figure. Again the language <br /> of the rule The dismission'in favor of the <br /> " mer method is acceptable if used represents the clear intent of Congress simplified buydown method presented <br /> ,-f...neon*by a funding agency. as expressed In the Conference Report in the preamble emphasized the cost- <br /> accompanying the 1987 Amendments. savings and time-savings to the Agency. <br /> 24,307 Discretionary utilityWhile we are co ant of the end the ability of a displaced person to <br /> Relocation 1a'menta concerns presented by the public utility plan his or her replacement housing <br /> A few respondents urged that the industry.we believe this rule dearly purchase knowing the full amount of <br /> reimbursement of extraordinary expresses the intent of Congress,and.as payments to which such person la <br /> . expenses be made mandatory.while a consequence.jj 24.30704 is unchanged. entitled.The view of these commenters <br /> r. several others indicated the should ba Subpart t3—Replacement hawing was that this would not create a <br /> 6 riven the displacing agency <br /> r0. retained.The discretionary language. payments windfall because the displaced personstill had to acquire a decent.safe.and <br /> .,'. "the displacing agency may.at its Section 24.401 Replacement Housity sanitary replacement dwettin$to be <br /> option."has been retailed because the payment for180-,pay Homeowner- eligibly:only the financing terms were <br /> 1987 Amendments and the Conference occupants his or her choice.Several comments <br /> Report accompanying them are quite[--, ware also made that the displaced <br /> V intended to be Section 24.401(x)(2).Several <br /> dear that this payment comments were received about the person could readily understand the <br /> displacing. at the discretion.or option,ad the extension of eligibility for a replacement concept that subtend.rate at less than <br /> agency.makeIt would not be housing payment beyond one year for current market Interest rates was an <br /> appropriate to which mandatory eaby good cause.In response.the meaning of asset and the computed payment was <br /> i regulation that was left clearly forgood cause"has been amplified in related to this fact. <br /> permissive by statute. On the other hand,those comments <br /> Section is objected.A number of the appendix. that the language the body of <br /> respondents to the language in Section 2f.401(a)(2Ni).Comments the favoredPRM were laconcarne in that a <br /> the NPRM which requires that State or were received about the appropriate windfall would be created if a person <br /> local reimbursement be"permitted by „start"date for the one-year eligibility <br /> State statute."The principal thrust of for a replacement housing payment in paid cash for the replacement dwelling <br /> the objections was that this language the case of condemnation.In response or assumed an existing mortgage at a <br /> meant that unless there was a specific FHWA has clarified that the one-year lower interest rate than the computed <br /> State statute permitting the payment.no period starts when the full amount of rate.There was also a question of the <br /> payment could be considered.FHWA estimated just compensation is legality for the preamble alternate.and <br /> agrees that the proposed language could deposited in the court.This may be the concern that making the payment <br /> be subject to misinterpretation and have Agents Proffer amount or a available on terms other than those <br /> revised the subsection.to provide that commissioners'award.if appropriate.In actually used in the purchase of a <br /> reimbursement must be"in accordance either case.the Agency does not need to replacement dwelling would not satisfy <br /> with State law."This conforms to the delay the one-year start date until final the statutory language. <br /> 1 clear intent of Congress.as expressed in adjudication. FHWA has elected to retain the <br /> the Conference Report that Section 24 401(a)(2JI(li).This section procedure in the body of the NPRM.This <br /> accompanied the 1957 Amendments. has been changed to conform with the procedure a requires that an estimate of <br /> Section 24.3Q7(b)Extraordinary amendments of section 203(a)(2)of the the amount of the payment be provided <br /> expenses.Six comments expressed Uniform Act made by section 409(5)of to the person.Such estimate shall be <br /> concern with this section's definition of the 1987 Amendments.Several based on the current prevailing rate for <br /> "extraordinary expenses."Three of the co>nvenb were received about the fixed-rata mortgages and subsequent <br /> comments recommended changes which differences between the criteria for payment based on the actual mortgage <br /> would permit certain expenses,even eligibility for 180 day owner-occupants terms obtained.This process will <br /> though ordinarily budgeted.to be and 90 day owner-occupants and require advisory services to the <br /> considered as"not routine or tenants.The change in criteria for 180 displaced person to enable such person <br /> predictable expenses"and.therefore. day owner-occupants is statutory.There to be prudent in the financing of his or <br /> qualify as"eoctraordlnary expenses' is no requirement that changes be made her replacement dwelling. <br /> FHWA has not adopted there in cited'for 90 day owner.occupents In response to comments received. <br /> • recommendetldos.lt Is Ilse expressed and tenants.The gab the displaced , FHWAIIss revised 12Ub1(d,2), <br /> 11 <br /> - - bleat of bred hilts- m <br /> person cveirl a spat crltedon to ` adopting the language in I <br /> tilo' -'.14?-72-.:!1;P:,r� r <br />