Displacement Plan for CDBG and HOME

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8922 Federal Register / Vol. 54. No. 40 / Thursday, March 2, 1989 / Rules and Regulations Section 24303 Payment for Actual Reasonable Moving and Related Expenses—Nonresidential Moves Sections 21.303(01(3/ and 24.301(0)(41. Pour comments asked for clarification of the difference in treatment of utilities in these two sections. The expenses for providing utilities under 24.303(a)(3) are those costs incurred to attach relocated personal property to utility service already provided on-site, such as electrical boxes, gas meters, and water meters. Modifications to the equipment or to the on-site utility service may also be eligible, if necessary. These costs must be necessary to reinstall personal property that has been moved from a displacement site or newly installed at such site and would generally only benefit the relocated business operation. Section 24.304(aX4) provides for making electrical and other services available to the replacement site. These costs may be necessary to make the real property suitable for the business operation and could generally enhance the value of the real property. Costs under 124.304(a)(4) are limited by statute to 810.000 for alt reestablishment expenses. Costs under 124.3o3(0(3j are limited to what is necessary, without dollar limitation. Section 24303(a)(9). 'There were several comments about relettering of signs and repladng stationary made obsolete u a result of a move. lids section covers those business items typically used by a business for the purpose of advising Rs customers and the public of the location of the business. If a displacing agency considers other items appropriate for this category, it may use the waiver procedures in !t 24.7 on a case-by-case basis. Section 24.303(a)(10). One commenter suggested that an acquiring agency could become responsible under the requirements of this section for abandoned personal property that could be considered hazardous material. This U not a Uniform Act issue, but an issue typically governed by Federal or State laws governing the proper disposal of hazardous material. Section 24.303(413). Two comments stated that the $1,000 limit on the coat of searching for a replacement location was not adequate for some business and farm operations. The displacing agency may use the waiver procedures in f 24-7 on a case-by-case basis if a displaced business or farm operation has unique requirements or circumstances. Section 24.303(c). Questions were received about self -moves of business or farm operations. This section does not preclude actual cost self -moves supped by repo a and receipts of the costa incurred. The Agency may use moving costs findings prepared by qualified staff, estimates obtained by the Agency, or if acceptable to the Agency, estimates obtained by the business or farm operator. A single moving cost finding for a low cost or uncomplicated move prepared by qualified staff Is a "single bid or estimate" for purposes of this section. Section 24.301 Reestablishment Expenses—Nonresidential Moves Twenty eight commenters provided comments on this section. While generally in agreement with the list of eligible expenses in 124.304(a)„ the majority thought that the dollar limits should be removed from the three categories where limits are imposed. We have elected to retain the dollar limits which serve as cost controls for expenses which we believe to be most vulnerable to abuse. Since it is the Agency's prerogative to determine which reestablishment expenses are reasonable and necessary and since 124.304(x)(13) allows the Agency to request a waiver from the Federal funding agency within the 910,000 statutory maximum„ there is sufficient flexibility provided to the Agency. On the other hand, the stated limits of $5,000 for increased operating costs and $1.500 for exterior signing are considered to be reasonable in moat cases, and may eaglet a business owner in making appropriate decisions about a new business site and the size and type of signing for the new business site. The inclusion of increased costa of operations as an eligible expense in 124.304(a)(10) was also commented upon. The Uniform Acts legislative history supporta the inclusion of these expenses. Since the costs of operation are legitimate reportable business expenses, the income tax records of most businesses should be adequate to provide a record of such costs prior to displacement The costs at the new location can be established or estimated using such sources as the new leases, utility company projections far utility charges and taxing authority records for tax increases. Section 24.304(b)(0). TMs section has been deleted. The 1987 Amendments exclude "a person whose sole business at the displacement dwelling in the rental of such property to others .. " from qualifying for an "in lieu" payment (see §24.305(a)(41). This excivaion, however, does not extend. to Section 24.3018 Fixed Payment for Moving Expenses—Nonresidential Moves Comments were received from 20 sources an this section. Recommendations were made to pay the fixed payment as an option to a business with no criteria or. conversely, to pay the fixed payment only if the business was discontinued. The additional criteria added in the NPRM were also commented upon. Several wanted to add additional criteria. One commenter wanted different criteria for farm operations than for businesses. A number of comments were received that would make the owners of residential property ineligible for this payment. Others thought that the owners of leased courmercial property should also be ineligible. FHWA bas not changed this section. The fixed payment is an alternative to the payments for moving and reestablishing a business, farm. or nonprofit organization. The new criteria are added to eitherclarify eligibility. correct inequities, or implement new statutory exclusions as explained in the preamble of the NPRM. The displacing agency retains the flexibility to determine the basic eligibility based on the substantial loss desisting patronage criteria and gains criteria that can readily be explained to displaced persons. There is no requirement now, nor has there ever been such a requirement. that a displaced business must be discontinued to receive this payment. Similarly. this payment has been and continues to be available to otherwise eligible businesses that do discontinue operations. There is also no requirement that a business be without a source of income as suggested by three Commenters. Satablishing separate income and payment criteria for farm operations would not be appropriate at this time. There were several comment* concerning the perceived inequity of the ineligibility of owners of rental residential property for a fixed payment while owners of other rental property remained eligible. PHWA has corrected this inequity by, generally, excluding owners of rental property from eligibility for non-residential $red payment Section 24.308(d) Nonprofit organization There were a variety of comments concerning the minimal fixed payment of $2,500in eu of actual moving expenses. Most of them favored increasing the payment available to nonprofit organizations. in response, PHWA has revised the payment to