Displacement Plan for CDBG and HOME

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Relent Register / Vol. 54. No. 40 / T7huraday. March 2. 1989 / Rules and Regulations Conference Report. that "utilities would use than the "date the displacing continue to pay those ordinary agency's obligation under 124.204 Is relocation costs within their reasonable met" and has been retained where contemplation as occupants of local feasible. rights-of-way ' * "' FHWA believes Section 24.401(d). Thirty-one the language of this section will allow a comments were received concerning the utility company to present its case for method for computing increased those expenses which it considers to be mortgage interest payments. The "not routine or predictable" and not commenters were about evenly split ordinarily budgeted as operating between preference for the buydown expenses. method as presented in the body of the Four comments urged removal of the NPRM. and the buydown method provision which would exclude from presented in the preamble. A few extraordinary expenses those expenses wanted the option of using the farmer which the utility company has explicitly annuity or amortization method if it and knowingly agreed to bear as a should prove less expensive for the condition for use of the right-of-way. Agency. Again the language of the rule The discussions in favor of the represents the clear intent of Congress lified buydown method presented as expressed In the Conference Report in .0 preamble emphasized the cost - accompanying the 1987 Amendments. savings and time -savings to the Agency. While we are cognizant of the and the ability of a displaced person to concerns presented by the public utility plan his or her replacement housing industry. we believe this rule dearly purchase knowing the full amount of expresses the intent of Congress. and. as payments to which such person la a consequence. I1 Z4.307(b) is unchanged. entitled. The view of these commenters so based on criteria ations to �rom tobUsinesses. Le. the average revenue for tears minusties wille penses- p�� equitable for nonprofit dons - n 24x6(e1 Average annual net of o business ar farm - Several comments were Ved about the computation of annual net earnings when ss or farm operations suffer a net for any year. 'There are several to compute net losses. Some wades have used 0" if the net ssreangs result in a net loss. Other des use the actual net loss figure. Eimer method is acceptable! if used emiformiy by a funding agency. Section 24.307 Discretionary Utility Relocation Payments A few respondents urged that the reimbursement of extraordinary expenses be made mandatary. while several others indicated the discretion given the displacing agency should be retained. The discretionary language. "the displacing agency may. at its option." has been retained because the 1987 Amendments a Conference gqui Report dear that this payment is intended to be at the discretion. or option. of the displacing agency. It would not be appropriate to make mandatory by regulation that which was left clearly permissive by statute. Section 24.307(a)(5). A number of respondents objected to the language in the NPRM which requires that State or local reimbursement be "permitted by State statute." The principal thrust of the objections was that this language meant that unless there was a specific State statute permitting the payment. no payment could be considered. FHWA agrees that the proposed language could be subject to misinterpretation and have revised the subsection. to provide that reimbursement mast be "in accordance with State law," This conforms to the clear intent of Congress. as expressed in the Conference Report that accompanied the 1 . Amendments. Section 24.307(b) Extraordinary expense& Six comments expressed concern with this section's dentition of "extraordinary expenses." Three of the comments recommended changes which would permit certain expenses, even though ordinarily budgeted. to be considered as "not touttne or predictable expenses" and, theref qualify as "extraordinary expenses." 12HWA bas not adopted these tldnsal Is 1%e expreneet foetid is mtenr Subpart t3—Replacement housing was that this would not create a payments windfall because the displaced person still had to acquire a decent. safe. and Section 24.401 Replacement Housing sanitaryreglacemaat dwetfing to be Payment for 180 -Day Homeowner eligible: only the finandng terms were Occupants his or her choice. Several comments Solution 24.401(4(2j. Several ware also made that the displaced comments were received about the person could readily understand the extension of eligibility for a replacement concept that enthroned rate at Lass than housing payment beyond one year for currant market interest rates was an good cause. hs response. the meaning of asset and the computed payment was "for good cause" has been amplified in related to this fa & the appendix. On the other hand those comments Section 24"401(aj(2)(i). Comments that favored the language in the body of were received about the appropriate the NPRM were concerned that a "start" date for the one-year eligibility windfall would be created if a person for a replacement housing payment in paid cash for the replacement dwelling the case of condemnation. In response or assumed an existing mortgage at a FHWA has clarified that the one-year lower Interest rate than the computed period starts when the fuli amount of rate. There was also a question of the estimated just compensation is legality for the preamble alternate. and deposited in the court. This may be the concern at mance ggtthe pher ayment these Agency's proffered amount or a ually used is the asof a commissioners' awact Rivard. ff appropriate. In lacement dwelling would not aatlefy either cue, the Agency does not need to reP delay the one-year start date until final the statutory language„ adjudication FHWA has elected to retain the Section 24.401(a)(20). This section procedure In the body of the NPRM. This has been changed to conform with the procedure requires that an estimate of amendments of section 203(02) of the the amount of the payment be provided Uniform Act made by section 409[5) of to the person. Such estimate shall be the 1987 Amendments. Severed based on the current prevailing rata for commenb were received about the fixed-ratetibeuent differences between the criteria for paymentased on thecimortgage eligibility for 180 day owner -occupants terms obtdvisoryatned. the s. will and 90 day owner -occupants and require tenants. The change In criteria for 180 displaced person to enable such person day owner occupants is statutory, There to be pnadent to the flnancing of his or is no requirement that &eases be made her replacement dwelling. in criteria for 90 day owne .occupant$ In among. to comments received. and tenants. The the displaced FHWAisis revlsed 1 7.4A01(4,2).-byfi(51 parte . sea* crltasion ` edopttng the language in