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HomeMy WebLinkAboutDisplacement Plan for CDBG and HOMEDISPLACEMENT PLAN Community Development Block Grant HOME Investment Partnerships Program COUNTY OF HAWAII The County of Hawaii, through its Office of Housing and Community Development (OHCD), is required to minimize displacement of persons as a result of activities assisted with the Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) Program funds. In addition, the OHCD must provide reasonable benefits to any persons involuntarily and permanently displaced as a result of the use of CDBG or HOME funds to acquire, demolish, or rehabilitate property. This requirement applies to all such displacement resulting from CDBG or HOME assisted acquisition, demolition, or rehabilitation of non- residential as well as residential property In order to comply with this requirement, the County must develop a written displacement plan which outlines the approach the County will take to minimize displacement, describes the specific actions the County will take to discourage displacement, defines displacement, and describes the monetary and nonmonetary assistance that will be provided to the displaces. This is to serve as the Plan. To minimize displacement, the OHCD has developed a system to rate potential projects to be funded with CDBG or HOME funds. The rating system is designed, among other things, to select projects with a minimum number of problems. One criteria the OHCD utilizes in rating project proposals is displacement. If no displacement is involved, the project may be assigned the maximum number of points. However, if displacement or relocation is involved, the OHCD requires the applicant to submit a relocation plan that complies with the Uniform Relocation Assistance and Real Property Acquisition Act. If a plan is not submitted, the project proposal is ineligible for funding. The points assigned to the project may be reduced according to the degree of displacement (i.e. whether an alternative location is found for the displacees, etc.). The OHCD ranks all the eligible project proposals and the projects with the highest number of points are then recommended for funding. Any agency or organization utilizing CDBG or HOME funds for acquisition, demolition, and/or rehabilitation causes displacement of persons, then, compliance with the current Federal Uniform Relocation Assistance and Real Property Acquisition Act is required. The regulations define displacement, and describe the monetary and nonmonetary assistance that will be provided to the displacees. The County will ensure compliance to the regulations by inserting a provision in the agreement executed between the County and agencies for the use of the CDBG and HOME funds. Residential Antidisplacement and Relocation Assistance Plan under Section 104(d) of the Housing and Community Development Act of 1974, as Amended The County of Hawaii will replace all occupied and vacant occupiable low/moderate-income dwelling units demolished or converted to a use other than as low/moderate-income housing as a direct result of activities assisted with funds provided under the Housing and Community Development Act of 1974, as amended, as described in 24 CFR 570.606(b)(1). All replacement housing will be provided within three years of the commencement of the demolition or rehabilitation relating to conversion. Before obligating or expending funds that will directly result in such demolition or conversion, the County of Hawaii will make public and submit to the HUD Honolulu Office the following information in writing: 1. A description of the proposed assisted activity; 2. The general location on a map and approximate number of dwelling units, by size (number of bedrooms), that will be demolished or converted to a use other than as low/moderate-income dwelling units as a direct result of the assisted activity; 3. A time schedule for the commencement and completion of the demolition or conversion; 4. The general location on a map and approximate number of dwelling units, by size (number of bedrooms), that will be provided as replacement dwelling units; 5. The source of funding and a time schedule for the provision of replacement dwelling units; and 6. The basis for concluding that each replacement dwelling unit will remain a low/moderate-income dwelling unit for at least ten years from the date of initial occupancy. The County of Hawaii will provide relocation assistance, as described in 570.606(b)(2), to each low/moderate-income household displaced by the demolition of housing or by the conversion of a low/moderate-income dwelling to another use as a direct result of assisted activities. Consistent with the goals and objectives of activities assisted under the Act, the County of Hawaii will take the following steps: 1. To minimize the displacement of persons from their homes: A. Stage rehabilitation of assisted housing to allow tenants to remain during and after rehabilitation, working with empty buildings or groups of empty units first so they can be rehabilitated first and tenants moved in before rehabilitation on occupied units or buildings is begun. B. Establish temporary relocation facilities in order to house families whose displacement will be of short duration, so they can move back to their neighborhoods after rehabilitation or new construction. 2. To assist displaced persons to remain in their present neighborhood: A. Provide lower-income housing in the neighborhood through HUD housing programs; purchase units as is; rehabilitate vacant units; or construct small multi -family buildings or row housing. B. Give priority in assisted housing units in the neighborhood to area residents facing displacement. C. Target Section 8 existing program certificates or vouchers to households being displaced and recruit area landlords to participate in the program. D. Provide counseling and referral services to help displacees find alternate housing in the neighborhood. E. Work with area landlords and real estate brokers to locate vacancies for households facing displacement. 3. To otherwise mitigate adverse effects of displacement: A. Take various actions to assist in the provision of assisted housing for lower income persons, such as land banking, property acquisition, solicitation of developers, etc. Residential Relocation Plan -2- OHCD/1189C/7-93 B. Use of CDBG funds to pay moving costs and provide relocation payments, or require private developers to provide compensation to persons displaced by development activities. C. Give displacees priority in obtaining subsidized housing units. Residential Relocation Plan OHCD/1189C/7-93 DISPLACEMENT PLAN Community Development Block Grant Program County of Hawaii The County of Hawaii, through its Office of Housing and Community Development (OHCD), is required to minimize displacement of persons as a result of activities assisted with Community Development Block Grant (CDBG) funds. In addition, the OHCD must provide reasonable benefits to any persons involuntarily and permanently displaced as a result of the use of CDBG funds to acquire, demolish, or rehabilitate property. This requirement applies to all such displacement resulting from CDBG assisted acquisition, demolition, or rehabilitation of non-residential as well as residential property not governed by the Uniform Act. In order to comply with this requirement, the County must develop a written displacement plan which outlines the approach the County will take to minimize displacement, describes the specific actions the County will take to discourage displacement, defines displacement, and describes the monetary and nonmonetary assistance that will be provided to the displacees. This is to serve as the Plan. To minimize displacement, the OHCD has developed a system to rate potential projects to be funded with CDBG funds. The rating system is designed, among other things, to select projects with a minimum number of problems.. One of the criteria that the OHCD rates is displacement. If no displacement is involved, the project will be assigned the maximum number of points. However, if displacement is involved, the points assigned to the, project will be reduced according to the degree of displacement (i.e., whether an alternate location is found for the displacees, etc.). The OHCD ranks all the project proposals, and the projects with the highest number of paints are recommended for funding. Any agency or organization utilizing the CDBG funds for acquisition, demolition, and/or rehabilitation and which causes displacement of persons, compliance with the attached Federal Uniform Relocation Assistance and Real Property Acquisition Act dated March 2, 1989, is required. The regulations define displacement and describe the monetary and nonmonetary assistance that will be provided to the displacees. The County will ensure compliance to the regulations by inserting a provision in the agreement executed between the County and agencies for the use of the CDBG funds. OHCD/1188C/7-93 fM12 Federal Register / Vol. 54, No. 40 / Thursday. March 2, 1989 / Rules and R DEPARTMENT OF TRANSPORTATION Office of the 49 CFR Part 24 [FitW .,...:st No. 87-22) RIN 2125-A8 65 Uniform Relocation Assistance and Real Property Acquisition Regulations for Feder and Federally Assisted Programs AGENCY: Federal Highway Administration (FHWA), DOT. ACTION: Final rule. BusMY: This regulation establishes a governmentwide single rule for the implementation of statutory amendments to the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (the Uniform Act) made by the Uniform Relocation Act Amendments of 1987 Title IV of the Surface Transportation and Uniform Relocation Assistance Act of 1987 (1987 Amendments), Pub„ 4100- 17. 101 00-17.101 Stat 2,48-258. The Uniform Act applies to all Federal or federally assisted activities that involve the acquisition of real property or the displacement aperient, including displacements cawed by rehabilitation and demolition activities. This regulation is intended to ensure that the implementation of the Uniform Act by Federal agencies is. in fact. as uniform and consistent as possible. while encouraging State and local discretion hi implementing the Uniform Acte provisions. DATE This regulation is effective March 2.1989. Further information concerning agency implementation is provided below. FOR FURTHER INFORMATION CONTACT: FD. i.ucknw, Chief, Program Requirements Division. Office of Right - of W ay, HRW-lo, (202) 368.0110 or Reid Alsop, Office of the Chief Counsel. HCC -4o, (202) 36e -13'n. The address is Federal Highway Administration. 400 Seventh Street SW., Washington. DC 20590. SUPPLEMENTARY INFORMATION: Background This regulation is the final step in the development of a governmentwide single rule for implementing the Uniform Act. The background of this development is described In considerable detail in the preamble to the interim final rule issued on December 17. 1987 (52 FR 47994), and the Notice al Proposed Rules (pj), Issued on July 21.1988 (53 FR 27508), and le not repeated here. On February 27„ 1985, a Presidential Memorandum was signed and publiahed in the Federal Register on March 5. 1965 (50 FR 8953), naming the Department of Transportation (DOT) as the agency with lead responsibility for the Uniform Act. This led to the publication of a multi -agency governmentwide common rule on February 27, 1988 (51 FR 7000). The 1987 Amendments named the DOT as lead agency. The Secretary at the delegated Department of asportation has g responsibility to the Federal Highway Administration (FHWA). The 1987 Amendments recpdre the lead agency, in coordination with other Federal agencies. to issue roles, establish procedures end make interpretations to implement provisions of the Uniform Act Implementation of the 1887 Amendmeute On Tuesday. May 19;1987 (52 Flt 18788) the FHWA issued a Notice describing significant changes in the law and general plans to implement those changes. On Tuesday. December 1. 1987 (52 FR 45687) the FHWA issued a Notice of Regulatory Intent giving further notice of the specific regudatory actions that ft and the other affected Federal agencies would take to implement the 1987 Amendments. A few provisions of the 1987 Amendments upon which the law le expddt and allows for little. if any, administrative disaetion or Interpretation. and for which a period of public notice and comment would have been impractical. were implemented in an interim final rule in Part 24 issued by FHWA (52 FR 47994). on December 17. 1987. On the same day (52 FR 48015)17 Federal Departments and agencies that administer the Uniform Act, and had adopted the governmentwide common mile, published interim final rules rescinding the governmentwide common rule from the codification of their regulations and adopting in its place a cross -referents to the governmentwide single regulation published by FHWA at 49 CFR Part 24. The effective date for these agency rescissions and cross references varied, however all mach actions were to take effect on or April 2,1989. the date the 1987 Amendments become mandatory. An eighteenth Federal Department. the Department of Housing and Urban Development (HUD), was unable to join the other Federal agencies in publishing - an interim final rescission and alma referencing,action se December " 121114.4t of its.need to se certain Congressional review obligations. HUD subsequently. published such an interim rule on February 19, 1988 (53 FR 4964). As discussed in the preamble to the NPRM. no comments were received that objected to the nee of the rescission and crow -referencing actions by the various Federal agencies concerned to establish a governmentwide single regulation. The only relevant comment objected to the effective date of HUD's rescission and cross-referencing action. HUD considered that oomment but does not believe it is feasible to change the date for administrative reasons, in order to best achieve a smooth transition to the new requirements of the 1987 Amendments. The objective of she February 27.1985 Presidential memorandum. and one of the primary goals of the 1967 Amendments. was to establish governmentwide uniformity so as to eliminate the differences and inconsistencies among Federal agencies that had plagued Federal 'implementation of the Uniform Act since its enactment in 1971. These differences and incaasisteadea had been pert culady burdensome to State and bbW governments that were administering a variety of Federal programs, and also, in some cases. resulted in differences ln.the benefits provided to persons in like circumstances. The MS Amendments dearly provide that a single Federal lead agency will promulgate a governmentwide single role for the Uniform Act's implementation. Accordingly, other Federal agencies covered by the Act no longer have independent statutory authority to promulgate their own separate Uniform Act regulations and, in implementing the Uniform Act, must follow the regulations published by the lead agency. The Uniform Act's unique in that it Imposes requirements directly upon a large number of Federal and Federally assisted programs, but assigns the authority for the publication of all necessary implementing regulations to one lead agency. (Of course, such regulations will continue to be developed with the participation of HUD and other Federal agendas). Accordingly. because a governmentwide single regulation required by law. because of the waique nature of the Uniform Act. because no comments were received. and because no useful purpose would be served by hale 18 Federal ageodes take adilitional regulatory action to formally finellarthelt resdsalos and crow the interim readssion Federal Reginter / VoI. 54. No. 40 / Thursday. March 2, 1989 / Rules and Regulations 8913 end cross-reference action', taken by each agencies should henceforth be considered final. and will remain in effect indefinitely. Those departments and agencies, and the parts of the Code of Federal Regulations which contain a cross reference to this part. are listed below: Department of Agriculture. 7 CFR Part 21 Department of Commerce,15 OM Part 11 Department of Defense. 32 OR Pan 250 Department of Education. 34 CPR Part 15 Department of Energy, 10 CFR Part 1039 Environmental Protection Agency, 40 Crit Part4 Federal Emergency Management Agency. 44 CF'R Put 25 General Services Administration, al CFR hilt 250-81 Department of Health and Human Services. 45 CFR Part 15 Department of Homing and Urban Development. 24 CFR Pert 42 Department of the interior. 41 CTR Put 114- 50 Department of Mice. 41 CPR Part 134-11 Department of Leber. zs am Pert is National Aeronautics and Space Administratiae.14 CFR Part 13011 Pennsylvania Avenue Development Corparatioa. as CTR Part 904 Tennessee Valley Authesity.ty. 10 CFR Part 1.104 Veterans Administration. 35 CFR Part !S The United States Postal Service will inaaoate in its fid -text regulation at 39 CFR Pert 777 to make it consistent with this rule and will publish its final rale on or before April 2. 19011 in the Federal ReRk$oz Implementation Dates This final rule replaces the December 17,1987 interim final rule that was contained in 49 CFR Part 24. As li discussed further below, this final rule is basically the same as the interim final rule except for the addition of provisions implementing those sections of the 1987 Amendments that were not implemented in the interim final rule. This final rule li the last regulatory step in the Implementation of the 1987 Amendments. The preamble to the interim final rule noted that "a final rule will replace this interim final rule to the date the 1987 Amendments become mandatory". The rescission and mos re acts • , taken by tha &Rendes UAW above provided for soma differences in the dates when each agency would implement 49 CFR Part 24. (However all the agencies will adopt hart 24 on ar before April 2,1089. the data an whirl the 1987 Amendments become mandatory). Agency implementation of this final ride is therefore governed by the implementation dates for Ian 44 CFR Part 21 the e 1987 rescission and cross reference actions. Generally those actions provide that direct Federal projects. undertaken by a Federal agency itself, will comply with Part 24. and that federally assisted projects would comply with Part 24 if the recipient of the Federal financial assistance was able to comply, except that all programs funded by the Department of Housing and Urban Development and the Environmental Protection Agency would not comply with Part 24 until April 2.199®. As was the we with the interim final ruin nothing in this ride prohibits the retroactive payment of any additional benefits provided by this rule. Whether to provide any sack benefits retroactively depends entirely en en agency's discretion and fending authorities. Comments Received in Response to the NPRM On Thursday. July 21. s, (63 Fit 27598) the FHWA issued a NPRM fir the purpose of developing a comprehensive. govemmentwide se ruleof r the uniform and consistent implementation of the Uniform Act, u amended. The major changes made by the 1987 amendments include: --Expansion of the.Uniions Act coverage to include *tunny all ahs that receive Federal funds. �fndd� twi hese dertaken by psiva e —A moderate increase in benefit levels. —The eatabliahment of e lead agency to issue a governmeatwide single implementing regulation. --Providing that the computation of certain relocation benefits be done in accordance with the lead agency regulations. rather than prescribing the computation method in the statute. —Granting State° greater flexibility and discretion in implementing the provisions of the Uniform Act. All members of the public affected by relocation or land acquisition activities undertaken or funded by Federal agencies were encouraged to comment an this NPR. Comments from interested State and local were particadarly rested. The id Ra primarily as a artivenience to the reader. Comments were spedfically requested and desired on changes stemming from the 1987 Amendment'. Numerous commenters however took the opportunity to again ewers an opinion an certain issues that were addressed in the gosarnmentwide common rale min the , n„ single Interns final rale. As ends. — dealt in the preambles to those rales (54 PR 7000 and 53 FR 8015) respectively they are not repeated in this rulemaking. A description of the regulatory changes proposed far this part were set forth in the NPRM. The only major changes proposed were those required by enactment of the 1987 Amendments. Where no such changes were required, the provisions of the governmentwide common rule. as modified by the December 17,1987 Interim final rale, were generally repeated in the proposed rule. That ts, the proposed rule was basically the same as the common interim Mal rale with the exception of those additional changes that were Considered necessary to fully implement the 1947 Amendments. Comments were Invited an both those non -discretionary changes that were adopted in the December 17,1987, interim final rule and the remaining changes proposed in the In furtherance of the statutory objective of securing the views of State and local governments and the public in the pmmrrlgation.of these regulations. the FHWA conducted three public meetings dtring the coeiment period following publication of die proposed Dates for the meetings were Aamost 17, 19811in Philadelphia, Ptnasylvs August Annie 34 in and Chicago, Min Th purpose tithes. meetings etas to receive comments on theprvposed rule from interested parties. These comments are eatered1n AIWA Mdcet Pio. 8V-22 and Intent been given fall consideration developmentin of the final rule. responseIn to the July 21, 1389 Federal Willesden, there were a total of 120 comments received et the docket, those received at the 3 publicmeetings. These 120 comments represent 101 different organizations or persons. 31 State highway administrations, 4 other State level agencies, 19 local public agendea, 7 private parties. 5 public interest groups, 4 consultants. and 31 aseocfations. ]Most of the asaoda •o ,arepreaented utilities and were concerned primarily with their new responsibilities agencieswith didisrsethe tionarryy �1i�ct or with I ?+1.2p7, relocation payments. Comments received from involved in the rural electric cooperative industry tela to acquisition activiti claimed a cant economic impact on the industry. However, earefid tithe £o n ten that because of their eiefeeiBlailty with the provisions of the Udiheti llel. tit ,8914 Federal Register / Vol. respondents have misunderstood certain of the requirements of the regulation. Creat care and attention have been given to these comments and as most of the apparent questions concern real property acquisition requirement& these comments have been extensively considered and discussed in 2.4.101 (b1 and (c) of thls preamble. There is no basis for expecting that reasonable compliance with this regulation as required by the 1987 Amendments will impose exceptional additional expenditures on the part of the members of the rural electric cooperative Industry. A number of unnecessary administrative req eats found in earlier regulations haveliminated with a consequent reductioa In the burden on affected entitles. Other requirements have been reduced or modified to further the goals of efficient and cost effective implementation of the Uniform Act. More than L200 specific comments were received- Many of the comments were directed et provisions in the current ggovernmentwide common rule. for whlc� no changes were proposed in the NPRM. or provisions which ass specifically determined by the statute. A large number of comments were general statements. or questIons. regarding a section or seat 1Q the which re:Metedd no addrehet w idch are ssed in pp1epriate•sectloe discussion following preamble. A b questions about operational details which cannot be addressed In the rude itselir FHWA will, however, respond to these and other concerns in forthcoming technical advisories and similar instructive memoranda. Except as related to a few specific provisions, which are addressed at the avast majoritriate y of the pulaces in blic comments e dealt more with clarification of interpretation than with substantive matters. Some commenters suggested different wording or rearranging certain paragraphs within the rule itself. While a certain amount of such editorial refinement has been done when it was necessary for clarity, the FDUWA recognizes that the basic format, as well as most of the specific provisions of this rulernaldng were articulated in the governmentwide common rule, and acquiring and displacing agencies have become &miller with the exisling format. To avoid confusion. we therefore have not made wholesale changes in 54. No. 40 / Thursday. March Z. 1980 / Rules and Regulations The broader the scope of the neither does it encompass the waiver. of a requirement on a program -wide s waiver tbe more carefully the Federal agency must weigh its effect on the assistance and protection to be provided an owner or displaced person. Section 24.2 Definitions Some comments suggested changes that are preluded by statute: however. we are cognizant of the concerns expressed in such comments. We are interested in the experiences gained by persona and agencies as they operate within the framework of this regulation. and will consider legislative changes, if necessary. In addition. an early draft of the itself.NPRM. the NPRM this final t emulated to affected Federal agencies for their review and comment. Further, a num of meetings were held with representatives of interested Federal agencies. Many useful comments Were provided durhur e were particularly assisted by the time and expertise provided by HUD. All counments were reviewed and appropriate changes to the proposed rule were made. A description of the substantive changes from the pro rule foliates. Othernot content were made for or readability. Section -by -Section Analyst Subpart A --General Section 241 Purpos" .. F bimi+�to sh of and t effective ctive implementation au one ofthe purposes adds regulation: Two of e three comments on the paragraph commended the Inclusion of the paragraph while the other indicated vings that, without a definition or tion of the Intent of the paragraph. it may appear to some agencies that cost savings are more important than providing the assistance or protection due an owner or displaced person. This paragraph has been included in the final regulation to emphasize the Federal concern that State and local agencies not be burdened with unnecesaary regulatory iequirements in the implementation of the Uniform Act. For this reason. the NPRM preamble discussion of Lila paragraph called attention to the waiver provision of 124.7 and its use to avoid unnecessary delay or administrative burdens. The waiver provision, in turn, Is explicit regarding two majorconsideration& The first is that the Federal agency. before waiving any requirement. must determine that the waiver does not reduce any assistance or displaced on provided in an owner or person under this regulation. The second is that any request for a er $bait be an a case -by - bads. FHWA does not erpret' case'tomem s race- . ' Section 24.2(a) Agency, There were several conunents on this paragraph and as a result the paragraph on Lead agency has beau removed and is now a ber separate paragraph (¢ 2421 within the definitions. Other respondent' suggested moms, expanaioae. other changes remain' definitions. However, the definitions statute and taken from the san in theey remain unchanged. As published in the preamble -of the NPRM 2 1988. the term "Agency" sgeneRegister it y �. generally ttsed throughout this ell entities to he Unencompass to Uniform _ Section 24.2(d) Coalparwble replacement dwelling. Comments were received from five entities concerning the definition of the terse "comparable replacement dweilMV The term and its definition originate tut the Uniform Act end the 2987 Amendments.u sued in the preamble of the NPRM, The tri "compara"filmdom* style enof R t. and . together. mean that the comparable replacement dwelling selected for computing the replacement housing payment is located In the same, or same type of; residential development as the acquired dwelling, on a site typical in size for that development: is the same type of dwelling. i.e., single-family for single family, apartment for apartment etc.: and provides the same or similar amenities within the dwelling. For example, If the displaced person entertains Large groups frequently and the acquired dwelling is arranged to acconunodate this living style, then the replacement comparable house should also be capable of being arranged in this fashion. This does not. however. require strict and absolute adherence to an exhaustive, detalled. feature -by -feature comparison. A mechanistic approach is not required. Reasonable trade-offs can be made. These should reflect the range of purposes for which the various features of the replacement dwelling aboutmay he ed. tional ion uthis subject can be foundinthe appendix. Section atsfa8n A recommendation was received to cheer describing word d gthe rep canment housing fa format relocation of cue e provisions _in this a merely for int Federal Register Vbl. 54, No. 40 / Thursda jr:' March 2: 1989' / Rules and ° Regulations payment provided to a 180 -day owner - occupant. We have retained the current wording because the computation of the full price differential, u described in f 24.401(c). is limited to the lesser of the amount needed for purchase of a comparable replacement dwelling or the actual dwelling purchased. Section 24.2(d)(8)(4. This section has been revised to clarify that the utility costs for replacement rental housing will be based on estimated average monthly utility costs because the actual utility costs will not be available. For additional clarification of the issue of utility costs refer to the discussion in this preamble far i 24.402(b), Rental assistance payment. Eight comments were received about the use of 30 percent of the gross monthly income for determining the financial means of displaced tenants. in accordance with the discussion in the preamble of the NPRM. FHWA examined this before revising 1 24.2(dXS) �� y Replacement housing payment for 00 - day occupants. The use of 30 percent of groes monthly income for all tenants, to meet the statutory requirement that the Income of a law -income tenant be considered when a rental assistance payment. is stili considered to be the mad equitable: practical. and appropriate method. his slimier to the method used by many agencies such as State highway agencies prior to the • Common Rule. Additional diacuisslon of this issue hp to he found is this preamble for 124.402(b) Rental assistenca payment Section 24.2(d)(8)(ii,) Eleven comments were received about' the possible eligibility of a less than 90 -day occupant for a replacement housing payment under Hosua �g of last resort. Most objected to this eligibility. Persons who arab' occupancy at the time of the initiation ofnegotiations, but who do not meet the Ieng ht of occupancy requirements in 11 24.401 or 24.402. are displaced persons and are entitled to advisory assistance and moving payments. They may, also, be entitled to rental assistance under housing of last resort pray!!! , ,, if comparable rental replacement housing is not available at a rent not greater than 30 percent of the person's gross monthly household incomes. This section provides financial means standards for a class of displaced persons heretofore called "subsequent occupants." Whets section 706 was amended°ta 1 section 206(cX3) wasrevised to require assurances that sr not be required to mover f *yelling union the person *gall - r W oppo enmity r'ebohteato replacement dwelling. Since an occupant of less than 90 days lea displaced person. the necessary criteria for providing a comparable replacement dwelling was developed. The use of the financial means criteria assure that the displaced person will participate in the cost of a comparable replacement dwelling to the maximum extent of his or her financial capability. In response to another comment, FHWA also addressed the appropriate use of the income of those receiving public assistance. If they receive an amount designated for shelter and utilities. then that is the amount that should be used in determining the displaced person's financial means. Section 24.2(eJ Contribute materially. Four comments Were received about this definition. Two recommended that ell the miteria would have to lie present for the business to contribute materially to the income of a "displaced person,. This Is dearly not the case. One preferred that the dlspleens agency be authorized to develop alternative criteria. This definition hes remained as written. FHWA considers that sufficient fieidbitity has been permitted in the definition of "contribute materially" to accommodate unusual circumstances. Section 3f.2(J) Lkce"4 safe. and sanitary dwelling. Two comments were received concerning the addition of "cooling" to the requirement for heating. If cooling is determined to ba as midcpl as heating for a pa rticalar State or area, a displacing agency may. in a uail'orm manner. require that an adequate .. cooling system be provided in a comparable replacement dwelling. Section 24.2(02%(1 v) Persons not displaced The NPRM specifically requested comments as ; 24.2(g)(2)(Iv) as to whether certain tenants who are affected by HUD funded rehabilitation activities should be considered "displaced persons." Such tenants are those who are not required to move permanently because of the federally funded physical alteration of their dwelling units, or a change hi the unit's ownership, but whose rents are Increased following completion of the rehabilitation 'win' idea, resulting in the tenants moving elsewhere. The NPRM proposed that such tenants would not be included in the definition of "displaced person" if the other conditions included bs f 24.2(gX2)(1v) were satisfied. These conditions included the opportunity to lease and occupy another dwelling unit iathe same ball •: oroom (without regard to . . q itialiabli of scut charged) and the paymilf relocation costa,:.. 8915 Twenty-two comments were recetuled on this subject. Seven recommended that these tenants be covered. Eight reconunended the addition of a further condition mentioned in the NPRM, to provide that. so long air the tenant is ofiered•an opportunity to rent a decent, • safe. and sanitary dwelling for the same amount as the tenant paid before the rehabilitation project, or 30 percent of the household's gross Income, whichever is greater, such tenant would not be considered a displaced person. Two commenters recommended retaining the Language in the NPRIiL Three commenters generally opposed considering such tenants as displaced persona. Fuiaily. two comments concerned tedmlcal matters. HUD recommended that this section be deleted from the regulation. bat suggested that it could be covered in HUD's various p regulations to that coverage coulhe tailored to each affected HUD program. HUD continues to believe that these tenants are not covered by the Unifarna Act because the rental increase that prompts their move is. in HUD's view. not a direct result of rehabilitation. However. HUD has indicated its willingness end desire to treat the financial hardship faced by suds persons on a progresn-hy-progrun basis deal specifically with this issue in developing new regulations implementing its several programs essistingresidential rehabilitation. Since this issue sects only HUD fended activtties. we believe that HUD's views should be given greet weight. Accordingly, this section has been revised to include language similar to that contained in _1(f)(2)(iti) of the common goovernmentwide rule. This would not preclude HUD from providing assistance to such persons in their Various program regulations. Section 24.?2gJr2Xviiij. At the request of one Federal agency, we have changed the term "sells" to "conveys" in 24.2(g)(2)(vtli). Occasionally, Federal agencies acquire land through exchanges or other agreements that are not tecbntcafy "salsa." Section 2t k.j Initiation of negotiations. Several respondents commented cal lids section." Since it b not practical to try to identify *bat rpecf8eafiy cxaietitutes 'the 'iis tlatfan tot negotiations for each isad'every'Federal, or federally assisted program: -the definition3anst be sdmewbat generic. Nonetheless, the intent and purpose is reasonably dear: The tirektoly piragrapls addresses those 11 aptloni'1in will specific regulation! dellna Initiation OF 0916 Federal Register / Vol. 54, No, 40 / Thursday, March 2 program. For the bulk of the acquisition on Federal, or federally assisted programs. projects, or activities, the proposed definition is sufficient. We have added a definition of Notice of intent to acquire or notice of eligibility for relocation assistance, at 24.2(o). which should help to clarify the meaning of initiation of negotiations and its relationship to entitlements under the Uniform Act. The two controlling points in this set of oircumstances are the action or actions of the agency and the action of the displaced person. There must be a dear, legitimate and reasonable causal connection between the two. For example, a tenant mating on the basis of having learned his landlord bad applied for a rehabilitation loan would not establish the tenant's eligibility for benefits. Section .N.2(11 Lead agency. The definition of lead agency" was inserted at this point in the definitions, and the following preamble discussion refers to the new section numbers for the definition in question. Section 2f nj Nonprofit organization. The definition was revised to recognize that a non fitorganisation must in to having tax-exempt under the Internal Revenue Code. be appropriately incorporated under the laws of a State u anon -profit organization Section of Notice contest to acquire or notice of eligibility for relocation assistance. This added definition was discussed under 124.2(k). The to early estabf lish displaced person's eligibility for relocation benefits. However, it should be understood that. the absence of such a notice does not deprive the person of eligibility for relocation benefits. The Federal funding agency. within its own program or project requirements, should develop a procedure for the timely delivery of such notices to persons to be displaced including those affected by activities undertaken prior to the commitment of Federal financial assistance to the activity. Section 24.2(p) Programs or protects. In response to comments from twe Federal agencies the definition of "project" has been revised, Because of the multiplicity of Federal and federally assisted programa and projects, a single definition must necessarily be extremely general. Each Federal agency will continue to have responsibility for identifying Its programs and projects that ere covered by the Uniform Act. threshold was solicited and the responses ranged from one recommending a change to a dollar volume criterion; two recommending 20 employees; three recommending 50 employees; four recommending 100 employees; one recommending 250; one respondent recommended the threshold be eliminated and the payment be available to any and all businesses; two indicated concern, but had no threshold number, and ten indicated agreement with the 500 employee threshold. a i;'HWA s use of a 500 employee threshold for a small business is in accordance with the Small Busfneas Administration's current definition of small businesses. Since the purpose of the definition is to facilitate the application of the small business criterion to the eligibility requirements for business re-establishment payrnen the definition remains unchanged excep the addition of the requirement that there must be at least one employee at the affected site. Section 24.2(p) Unlawful The definition of "unlawful has been changed sllgtztty toclarify its IBdScaa applicability. One commenter mentioned thE custom. type of tenancy and type of qty may dictate different 14 practices in terms of dealing whir This ham bean addressed the manlawful ndi$ed T assutarices, main point of the other substantivetea this 19139 / Rules and Regulations Section 24.4 Assurarnces monitoring and comacu've action Section 24.4(aj Assurances. Six comments were received on this section. One comment about the procedures for monitoring local public agencies conducting highway projects is more appropriately considered under the FHWA's program guidance. Two commenters were concerned about the effect of the regulatory language on their current procedures and practices. One gency also asked that the requirement fora "specific reference to any State law which the Agency believes provides an exception to section 301 or 302 of the Uniform Ad" be deleted and. in its place. the lead agency request each State Attorney General to provide an opinion as to exceptions permissible under State law. This would then. be ts. provided to each State agency; t presumably by the lead agency. We believe the section on Assurances reflects the intent of sections 210 and 305 of the Uniform Ace provides reasonable uniformity for all Federal --�--, -•�• .u�wa not impose any t or .ege�e withrespect to theapprovalot State on either the Uniform agency's � e regtdation dictates die lath (sentence; paragraph, creme) of a State agency's The Uniform Act requires t ashrances be "satisfactorr end t+egulatlon requires that assurances "appropriate," and in accordance tit sections 210 and 305. for displacing acquiring agencies respectively. The assurances meet these requirements. Since it is likely that some State des may operate ander statutes ch could provide them with tions not available to other State odes, we believe it necessary for the sal State agencies, on their own to identify any State law which vides them with an exception to , 301 or 302 of the Uniform Act. One commenter may have understood the relationship between assurances and Subpart G; tion. as well as the nature of the assurances. The aces should not be viewed as an alternative to w�accaaa� H anything. Itis the other y and. even than. the certification must address the requirements of the Uniform Act covered by the assurances if the assumecertifyinState y Wends to Utiles. The assurances aadissa ors. funda>aeatgl ft is anticipated ,most st.pc.will m . comments received on tide definition be actually dealt with the relationahlp of wi this provision to 24.208, Eviction for and eral funding regency determines tha cause. As these two provisions deal Fed with basic eligibility issues. displacing the agencies should be especially aware of the interrelationship In response to comments, changes have been made inMee whi the eviction for cause provision which is excep below at 124.205. While the age intent of this provision G to generally e proscribe certain types of occupants, behalf. such as squatters. from eligibility for ro relocation payments. displacing section swedes are permitted some discretion where specific.cir�cumataeces may mis warrant a finding that the occupancy the. lawful. Ceetifirs Samson 2 2(sj Utility caste 'these w five COI Due Pre "ha ere eight comments on this paragraph. recommended the addition of the t of trash removal to utility costa. to the wide variance in local coces for trash removal ranging from al your own" to free government ons, FHWA hu not modified the definition of utility costs. All costs now furnished by c�agend are y number of re � � �eaR seryl epondeets eobrusnatedA o_ baclnd the definition of "'small buiiaess." . Specific tent on the 500y, Pu b$ Federal Register / Vol. 64, No. 40 / Thursday. March 2, 1989 / Rules and Regulations 8917 assurances to ensure compliance with make seeking a waiver advisable, we do the Uniform Act rather than seek approval of a certification application. A • State agency must provide these assurances, or obtain a certification. as set forth in both the Act and regulation. as a condition of receiving Federal financial assistance. However, in response to a concern of the Department of Agriculture, agencies who acquire under the procedures for voluntary transactions, or persons without the power of eminent domain, will net be required to certify under 'section 305 of the Uniform Act. Any agency that displaces persons will have to provide assurances or be certified for compliance with section 210 of the Act. The purpose for providing exceptions to the real property acquisition procedures in !l 24.101(a) is to make it clear that not all acquisitions are subject to the requirements of Subpart B of this regulation. The section is intended to describe circumstances which would exclude specific acquisitions from the application of the regulation; It is not intended to provide the basis for the exclusion of an entire agency program. Section 24.5 Mariner of Notice Two comments were received an this section. which is unchanged from previous requirements In both the Common and the faterim Final Roles. One comment approved of the requirement and the other comment suggested that the notice to the owner of the Agency's interest in acquiring property described in 1 24.10¢(b) also be personally served or sent by certified or registered first class mail. No change has been made. Section 24.2 Administration of faintly - funded Projects. Two comments were received on this section. whldr b essentially unchanged from previous requirements, except for the addition of the statutory responsibility of the lead agency to designate a cognizant agency in the absence of agreement between Federal agencies. Neither comment addressed this change and no further change has bean made. Section 24.7 Federal Agency Waiver of Regulations Two comments were received which were specifically related to this section. One noted approval of the provisions as written, the second asked for some examples of a proper justification, or some basis upon which to make a decision. This section has already been discussed *general fn connection with comrmetrts on 124.1 BakAn a of lire varlet(ofsl iatkni t r'hlch in 1 " 4• • not believe it practical to provide examples. -Examples have a tendency to be both limiting and. conversely, to serve as unreliable justifications or precedents for expansive interpretations. The primary concern is that the waiver of a non -statutory requirement In the regulation does not reduce any assistance or protection provided to an owner or displaced person under this part. There is little doubt that requirements imposed by the Uniform Act may. necessarily. create some delay and administrative burden. Therefore, It would be inappropriate to grant a waiver based on the general proposition of delay and administrative burden. The Waiver proposal must be specific and it must protect the rights of owners and displaced persons and not be designed to serve some convenience of the requesting agency. The proper implementation of this provision of the regulation requires the exercise of good judgement. with proper concern for displaced persons. Section 24.8 Compliance with Other Lows and Regulations Two comments were received on this section. One said the list of authorities should include a statute which was already included. The second comment suggested the inclusion of Executive Order 12630, Governmental Actions and Interference with Constitutionally Protected Property Rights, and fila has been done. • This section was also revised to emphasize that there may be other laws and regulations to be complied within implementing this regulation and the list provided is not necessarily all inclusive. Section 24.9 Recordkeeping and reports Section 24.9(o) Records. Four comments were received on this section. One appreciated the provision for confidentiality of records. Another asked for the "established requirements" for "adequate records." The adequacy of an's records is determined by the ability those records to demonstrate compliance with this regulation regarding the agents acquisition and displacement activities. Two comments were concerned with the 3 -year retention period for records. One suggested an extension to 5 years, the other suggested a period of 3 years after the project is completed. There is nothing to prevent an Agency frog retaining records for a period longer tthraanne3rtyyears after finalpayment tun pleted person. MINA i sasnd.eowuer dtthe regulation to require retention of records for S years or in accordance with applicable regulations of the federal funding agency. Section 24.9(c) Reports. Special consideration and comment was requested on the format and timing of this report. Four comments were favorable to both the format and timing of the report. One comment agreed with the formats but claimed the information was needed on an annual basis. Two comments approved of the timing, but wanted the format changed. The final respondent wanted both the timing and the format altered. With the exception of one suggested format change. to lump all non-residential displacements together. the proposed changes axe dearly related to the specific program requirements of the respondents. As such, it would be inappropriate to address these concerns with revisions to a report intended to serve. with as little burden u possible. as source material for periodic reports to the Congress on the principal activities conducted under the Uniform Act. The report format and timing remain unchanged. - Section 24.10 Appeals Section 24.10(b) Actions which may be appealed Several comments were received an this section. The principal concern was that the appeal process seemed to extend to the question of just compensation. There are well established procedures in place in every State, and in the Federal government. to handle disagreements involving just compensation. These procedures typically begin with the offer of just compensation and conclude. where necessary, with litigation. What is appealable is found in the Uniform Act and the regulation where they refer to the aggrieved person's "application." This refers to the application for the benefits of the Uniform Act. The intent of the Act and the regulation is to requite that there be a procedure for appeals concerning the benefits or eligibility conferred by the Uniform Act This provides an administrative remedy for persons aggrieved by an agency determination as to his or her benefits or eligibility.. Normally this procedure would have to be completed before such person could seek judicial review. Section 2L10(c) Time limit for initiating oppeal. Two commenters suggested extending the tithe limit for initiating an appeal. The responsibility for setting the time limit rests with the Agency subject only to the constraint that Boot be less.thaa 00 days after the person recelvea written notification of Federal Iasi the Agency's determination regarding the person's a ter / VoL 54, No.40 / Thursday, March 2 1989 / Rules and ,Regulations pp cation or claim. Section ztro(h) Agency official to review appeal. Several comments were received about agency appeal processes. the levels of review, and the official conducting the review. whether from the m agency or another appropriate hearing c officer. S The appeal process fa an entirely a internal process of an agency. The decisions by the agency about the process must only conform to these regulations and whatever other th administrative rules which the agency must fo{Iow. However, u stated in the " rule, mender must advise the person of a his or her right to seek judicial review after the administrative heating the pure is exhausted. FHWA considered the comments. e electeda to retain 12,4.10 as this written. b Subpart B --Real Property Acquisition Ad pro federally -assisted projects, is applicability "to thegreotest ext practicable under State law" (em supplied). which is the same wo that found in section 305(e) of the Uniform Act. FHWA interprets this can an agency mast comply If ompliance is legally possible and tate law. This should be taken in ccount in an agency's assurances ursuant to 24.4(a). Utility companies as acquiring ggenciea..When the Congress am e Uniform Act, 1t changed the delnitioa of "State agency" to inn any person who has the authority squire property by eminent dam under State law." Utility compantea moat common example of non - =mental entitled which are gran minent domain authority. The eff was, for the first time, ring utility comp/flea under Unit, ent phasic Ming as to er to n ended C ude to to P ain are ted i act of me to rm heliar defined at 24.2(1). If Federal involvement is solely the guarantee arantee of t loan from non -Federal sources, for example. the Uniform Act Is not applicable. If an individual acquisition glee as a voluntary transaction under 124.101(aj(i), Subpart B requirements do not apply. This may he important for on-site specific acquisitions. It was elated in a comment that a ondition of membership in a cooperative may include an obligation revisionbute power line rights-of-way. ,, y,, been added in 24.104a)(g) to provide that Subpart 8 requirements do not apply if the contribution of reel perly to a al Section 24101 Applicability of Acquisition Requirements or Section 24.101(0). 'There were a large re of comments on this recti �° through their asaocfations, cooperati coverage for certain et their jests. made by a member to the requirements of atemberahip agreements, contracts or bylaws. FHWA es that such cases, where members of cooperatives have agreed to as vide real property to the cooperative by interest of the members. are likelier common untieY transactions rather than to ver. tion. or federally funded 3. This regulation lace the State eminent domain law and r operate. ActReellyrBoth section 30S of the uniform dear that the ) of this part maim It uisition ant policies in lith ID Actroperty andSubpart B of this part era applicable "to the greatest extent ctica6�a Sixteen comments were submitted on behalf of utility nles. y I s of Individual entities number on which addresses the applicability of necessary to advance the co presenting e views an concerns of vol Subpart 8 and Title III of the Uniform Cct. Most of the crtmmen areers with limited scopet ed a ofrural and law tea. Almost all of these lithe sible � cooperatives that may Federal the RUM! Electrification stance dAmiinlstratfoe (REA) In the Departm This section of griculture � preamble is ted to the comments and concerns of those entities. FHWA believes that Nance with the Uniform Ad and e regulations will not be as ome as some of the comment it to be. In addition, as sed further below. one suggeati ting from coverage certain actions between cooperatives members, has been adopted. 1 wing are the to the comments, with tian FHWA he rule should be amended so ft not_ apply to electric cooperati 7 FHWA does not have author' empt any entity or group of entities compliance. However. as described detail later. the regulations intend ro„ vide much latitude and be on shed. particular objective appearthat all of our m�cqulsllions are covered by Rep . 'There are certain candid net be present before a utility Inert m� with Subpart I! Wrennd. kaportandy.financial a �� .��. es u application. and several requested that i Athe ppendix enndix A untary transaction triterla fogad A interim final rule be included. FHWA ber �� 1987 A FHWA has substantially revised this of section based on the comment*. Voluntary transaction criteria hart b devo included, and a provision has been added exempting from coverage certain comp - les real co cooperatives and their member& The perce presence of Federal financial assistance dblire is the basic determinant for applicability, with exceptions provided stamp for those acquisitions Nsted'intrans § 24.101(a)(1)•.(4), their Eminent domain authority is nota raiseFod determining factor by itself, although reply. any acquisition made under the threat of 1. eminent donteln is cleanly subject to would Subpart B requirements because such an Rep acquisition cannot be a voluntary 1 transaction. from Essential to the voluntary transaction in some process is the requirement that the in owner must be informed In snideg that the property will not be acquired odes may amicable agreement can be reached. L It would ars on. and issues vas. ty However, even though ,W acquisition projects ��tion, agencies as a may choose ep fallow theSSubpart 13 3e ss. m Re -"lye Sectriaa 2&Wt (n.1 an Certaint se clarifications have b.�.�...d._ these company sections. The M le.. g ci. mum be State law". This means at while er compliance ce is requfr+ed Mit is not by State law, these provisions do not supersede or overrule any State law regnta. Accordingly. utility companies must continuwith the requirements comply State ch law. Section 24. is part domain scft addressee the assurancess that must be submitted compliance one time action) b the Federal asencypy a one- thee assistanc& Section of exceptions to Subpart B matter fc ns because of provisions of Slaw A utility company may wish to contact the highway icy in its State for assistance in preparing its assurances is thou situation' where the same State eminent domain taw apples to both the higbwa, agency sad the company. The State highway should know whether the ureases because of Stab law. to be unthustend e to en epi report jj and ambit** old Wormed= listed utility Meng' ass gm red 4.W Federal Register / Vol. 54. No. 40 / Thursday. March 2. 1989 / Rules and Regulations 24.103(a) when the property value exceeds $2.500. Reply: That is not the intent of these sections. Under the appraisal waiver provisions of 1 24.102(c)(2), the utility company has the option of not making en appraisal if the value is estimated to be less than $2,500, and the valuation problem is simple and straight -forward. See the preamble discussion of that section for further information. Under the appraisal standards in 1 24.103(a). the utility company essentially determines its own appraisal documentation standards and polides. particularly with respect to acquisitions which do not require a detailed appraisal. The intent of this provision is to match the extent of the analysis and documentation to the complexity of the appraisal problem. In difficult. complex valuation situations, 124.103(1) requires preparation of a "detailed" appraisal. and specifies the minimum content of such appraisals. The minimum content specifications apply only to detailed appraisal reports. Several commenters missed this point Finally, there is no necessary connection between the $2,500 appraisal waiver ceiling. and the need to prepare a detailed appraisal report. The decision on when to secure a detailed appraisal lies primarily with the utility company. based on its assessment of the situation. 5. The regulation appears to require that we contract for the services of independent appraisers, even though we have well qualified appraisers on our staff. Reply: This 4m incorrect. The use of staff or outside personnel for appraisal work is entirely at the discretion of the utility company. The only policy which addresses this Issue is 1 24.103(d), which essentially states the appraiser must be qualified to perform the work. 8. The regulation appears to require that we give the owner s copy of the appraisal. which will hinder negotiations. Reply: The regulation does not require that the owner be given a copy of the appraisal. In some cases this Is a matter of State law, but In the typical situation it Is a negotiation policy decision at the discretion of the Agency. In 124.102(e), the owner is required to be given a written offer and summary statement which. in very brief terms, amounts to a description of what the offer la for. A utility company may wish to contact the State highway agency and obtain a copy of its summary statement form or format for use aa a guide. 7. These regulations are not sites.. ft use m inhalation es. many alternative locations available, and one of the owners will usually be happy to sell a satisfactory site. Reply: It was this kind of situation FHWA contemplated when it developed the valuntary transaction policy and criteria found at 124.i01(e)(1). If an acquisition meets the criteria, Subpart B requirements do not apply. 8. Section 24.102(}) regarding a deposit with the court is in conflict with our State law on various pointe. State law specifies a different place for the deposit. and is likewise specific on haw the amount of the deposit is to be determined. Reply: The provision comes from section 301.(4) of the Uniform Act. and. as noted above, is applicable to the greatest extent practicable under State law on federally assisted projects. If State law prescribes a different process there is no conflict because State eminent domain law prevails. See also 124.4(a) regarding assurances. 9. just compensation in our State is based on the before end after rule, rather than the take plus damage rule. if we were to appraise damages separately, u seems to be necessary under 124.103(aXS), the appraisal would not be admissable in court. Reply: The language in section 301(31 of the Uniform Act recognizes the differences from State law an what constitutes fust compensation. It was not FHWA intent to force a different appraisal process. This oversight has been corrected by the addition of "where appropriate" to 124.103(a)(5). 10. The requirement for a review appraisal in 124.104 should be deleted except for high value situations. Reply: FHWA has not adopted this recommendation because of the importance we place on the appraisal review function. The comment indicates there may be a misunderstanding. Section 24.104 does not require an appraisal by a reviewer (although the reviewer may choose to do so because of an inadequate appraisal report). Rather, this section is intended to require a review of the appraisal or appraisals on a property. The review is an essential part of the process of establishing the amount of the offer of just tion to be made to the owner.: simplistic terms, the reviewer checks for errors of fact. consistency of value from property to property. and general adequacy of the appraisal as a basis for the offer of just compensation. Where there is only one appraisal. the reviewer is that critical second party involved in lbsof ratting he amount of We o�The association with 124.4(c) eiganlingprevention of 8919 fraud waste. and mismanagement fie readily apparent. The reader la directed to the discussion under ( 24.104 in Appendix A for further information. As stated there. in low value, uncomplicated situation's a signature may suffice as the reviewer's statement The foregoing discussion of issues raised in the comments is intended to assist utility companies and others in the implementation of these regulations and to describe how the impact of these regulations on cooperatives will be limited. However. it is possible that there may be other questions that have not been answered. We encourage any further comments relating to the impact of this regulation on rural electric cooperatives. Any further comments on this subject will be considered and. if warranted the regulation will be upended and/or the discussion in the preamble will be supplemented. Most. if not all. Federal financial assistance for utility companies comes through the REA of the USDA. FHWA intends to work closely with Departmental officials in effecting smooth implementation. Section 24.102 Basic Acquisition Policies Section 24102(cX2). This section addresses waiver of appraisals. One comment said agencies should have the latitude to decide not to obtain an appraisal where property maybe donated without first obtalntng a release from the owner. The Agency has that discretion for the under 52,500 value category. A prior release is not necessary. However, the FHWA does not agree with extending that same policy to all donation situations. An owner may want an appraisal and an offer before making a decision to donate, and itis only fair to make the owner aware of this option. On the matter of establishing the dollar threshold at 52,500. four stated it was too high, seven said it was too low, and ten stated 52,500 was acceptable. FHWA has decided to retain the proposed threshold. A commenter raised the question of a review where no appraisal has been made. Other comments questioned how an Agency is going to know if an acquisition is worth less than 52.500 in the absence of an appraisal. Section 24.102f c)(2) contemplates that an informed judgment will be made by a qualified person. While iprudence suggests the-valuet is not a s�batian be in writing, andbelstained .,ys• rr.•� Fed / Vol. 64, No. 40 / Thursday, March 2, 1989 / Rules and Regulations Oa the matter of a review: Under 24.102(d). the Agency is required to make a written offer. Offer tatters are tienerally signed by someone at the management leveL It is general FHWA involved to have not i lved in setting the amount clan offer of Juat compensation. This process would constitute a review where no appraisal is made. Precisely how such matters will be handled b within Agency discretion. A few comments objected to waiving an appraisal for any reason. An Agency has no obligation to waive the appraisal of an acquisition if it prefers not to. Section AIM i Criteria for Apprnrisals Section 24.103(4 One Agency described how it intended to integrate the appraisal waiver provision la f 24.102(c)(2) with oris section.n appraisal standards. Many other variations are also possible, but the comment is summarized here for purposes of illustration. In brief, negotiators will; be instructed to dearly explain to the owner the right to have an appraisal made and in no way pressure the owner to sign a waiver; acquisitions valued between 3800 and $2,600 are to be meted by sales in the project airs, and will be approved by a review appraiser prior to negotiations. As described. tMs Agency to do more than es intends praisal wenld always be a property owner option; some value documentation will be a requitement: and a reviewer's approval is necessary is certain circumstances. This description is intended to illustrate the latitude an agency has in implementing the provisions of this Subpart. Section 24.103faX2). One comment recommended the requirement for a 5 - year sales history be cut back to two or three years. This recommended= was not adopted, primarily because it applies only when a detailed appraisal is necessary. When a detailed appraisal is not necessary, the agency may set a different standard. Section 24.104(a*9). A comment recommended that a statement be added to the effect that the appraiser must explain the absence of more recent sales data when the sales used are over e mom old. This is viewed as a good business practice on tha part of the appraiser. but notes an essential regulatory requirement. Section 24.103(e). Three comments recommended an i>taaase in the dollar threshold from fiL50e to t5.010 , the same person can both appraise and negotiate- The AIWA has notadopted Incthis rerceonsedatinn �r,.. .• Section 24.101 Review of appraisals Section 2L•1001. In response to a comment. a minor editorial clarification has been made to this section regarding the role of the reviewing appraiser in establishment of the Ageus offer of Just compensation, Section 24.105 Acquisition of Tenant - awned Improvements Four comments expressed a concern with the matter of adequately protecting the rights of a tenant owner of improvements. One of these comments recommended specific reference to tenant owners be made at many points within B. FHWA has made no change because it believes tenant owner interests ere adequately protected. The language of Subpart B is based on the premise that i'f a tenant can demonstrate an ownership interest in real property. that person is an owner of real property to be acquired befor treated sof this �a� and is to atach- , =uFive commenter t tory value or salvage value measures of compensation to a tenant ower are not fair and equitable when the appraiser finds that all of the value is in the land. with no value attributable to the improvement As a consequence. they "value in piece" measure ed nded a compensation be added to this section. cis WAtaape�t.a the duty this urs. but the provisions of ao¢ of the UniformAct do not permit it to accommodate the recommendation. Section 30Z specifies contributory value, or value for removal (which has been implemented as salvage as the measures of compensation. However. there is some latitude available under 126.103(e). Payment under other applicable law" could include provisions of State law and/or relocation assistance benefits. Also, contributory value can be viewed on a temporary basin is the valuation estimate process. FHWA believes the basic objective is payment of an amount of compensation which is just. reasonable, and fair- Two airTwo comments ware received from representatives of the outdoor advertising industry. Both comments focused on the way advertising signs aro treated by #i 24-2(q), 24.106. and 24.303(e) a the regulation. suggested that. pursuant to They 302 p al the Uniform Act. all advertising sigma covered by the Uniform Act should be acquired as tenant owned _ • • nommen Impr�ovem , and thavatseoi-a ,• in laps before &sold lett • used N determining the owner', compensation. Neither of these suggestions have been adopted. pecific anguage rning advertising sing sl i section10470) of the Uniform Act makes it dear that some. if not all, signowners should be entitled to moving and related expenses under section 202 of the Uniform Act, rather than to compensation for a sign** acquisition under section 902 Furthermore. that language in section 101(7XD) was amended in the 1997 Amendments to broaden the benefits available to sigaownets under suction 202. For reconciled many years. specifFHWA has section � J U c language Act and the more tenant improvements � � the Act by providing that an advertising sign considered to be personas property, wider State law should receive the relocation benefits provided by section 202 end if considered to be reel property. It accordance should ith sectionF1 WA believes this le the most reasonable interpretation of the provisions of the Uniform Act; audit aantiauee to be reflected in this final nds. When s sign le acquired section 0 sumer on 302(b)( provides that should receive the greater of its ooateibatory Tebbe to the real property or it, "fair market Mehra • • • for removal from the real property." FHWA that removal Interprets rs pew to mean must be taken into consideration indedete determining "fair market value for removal," and believes this le done in i 24.106 and 24.1(0) of the regulation. Subpart C --General Relocation Requirement, Sectio* 2L203 Relocation Notices Section 24.203(o). A comment was received that the term "as soon as feasible" was not sufficiently specific. FHWA considers this term to mean "as son as practical" and does not believe that any further elaboration is eceother mar This t and several comments addressed to this section may have merit in individual situations, but do not necessitate changes in the regulations. Displacing may wish to clarify ui eular matters that aro of concern to them in their operating instructions. Sectionmment. definitional isresponse at teat to acquire at notice efrelocetion, , Federal Regis/ex / Vol. 54. No. M Relocation Planning, 5erviG, and Coordination motion 24.205(a) Relocation There were 13 comments relocation planning. Moat In favor of the planning concept. were concerned about bow tion plans could hinder project IopmenL The relocation planning by this section should be a tool assist in the orderly development of a Jeri and should be considered in this t by both the displacing agency and funding agency, FHWA believes that wet emplacing agencies are well aware cf the program or project benefits which c&n be derived through early and sound relocation planning and many agencies amrady use comprehensive planning techniques in project development. We do not view relocation planning as a complicated, time consuming activity. We see relocation planning as a process which provides meaningful information to program and project decision makers. ' It does not need to result in a detailed document containing unnecessary data and needless problem solving. Instead it should be a process which is stoped to tire complexity and nature of anticipated program or project relocation activity and should not require a burdensome commitment of Agency resources. Language emphasizing chis has been added to this section. la response to several comments. there Is no requirement that planning documents be submitted for approval to the funding agency at any stage of a project or program. Pinning is the responibiltty of the displacing agency. Section 24.205(c) Relocation assistance advisory services. Several comments were received concerning relocation assistance advisory services. Three comments objected to the requirement to provide transportation to inspect housing in 124.105(c)(2)(11XD)- This provision is not new and has been a part of the common rule for implementation of the Uniform Act since that rule was Bret promulgated by DOT on March 5,1985 (50 FR 8855 (19851). It is the obligation of the displacing agency to assure that both owners and tenants are able to inspect the housing to which they are referred. There is no evidence to suggest that this service has been abused by displaced persons. Section 24.206(c)(2)1111). At the suggestion of one commenter, the words "comparable and" have been removed from this section. The emphasis is on the identification of suitable property locations for business and 1,120 operations Section 14.3,5(4aa(vii.1 .of &dehisce aecrices g peace a m ho- i / Thursday. March 2, 1989 / Rules and Regulations initially occupies property after it is acquired by agency is required by the statute. Therefore. it cannot be deleted as recommended by several commenters. These persons are not displaced persons. but are eligible for advisory services. Section 21203 Eviction for Cause In response to comments, this provision has been modified in several respects. HUD. in its program regulations dealing with displacements caused by other than State -agency acquisition. has long recognized eviction for carie as a basis for denying eligibility for relocation benefits. Now that the Uniform Act and these implementing regulations apply to this broader array of displacement activities, it is necessary that valid evictions continue to be recognized as a factor that can extinguish potential rights to relocation payments. At the same time. it is important that otherwise entitled persons not be denied relocation payments by an eviction undertaken for the purpose of evading an obligation to make relocation assistance available. or for minor violations of a lease. Accordingly, this final rule retains the major threat of the eviction for cause section. which has been a -part of the governmentwide common rude since 1986, that person lawfully occupying property at the time of the initiation of negotiations will continue to have a presumptive entitlement to relocation payments. However. modifications have been included to clarify that payments may be denied in certain circumstances. Thus. a person who is evicted for cause prior to the initiation of negotiations may be denied payment even if that person vacates the premises after the initiation of negotiations. In addition. persons who seriously or repeatedly violate material terms of the lease or occupancy agreement may be evicted even if the eviction proceeding is begun after the initiation of negotiation. In either case. the Agency must assure itself that the eviction action is not undertaken to evade the protections of the Uniform Act. Such eviction for cause circumstances should arise only infrequently and Federal funding agencies will be expected to ensure that this prurision ts not misused. Section 24.207 General Requirements—Claims for Relocation Payments Section 24.2E17 (fl Deductions from relocation , punts This section has remained a same as was published as pert of the commas in the, Marab S. 8831 1995 Federal Register. Section Kam, continues to allow agencies to deduct person's unpaid rent owed to the - Agency from the person's relocation payment in casae where it will not prevent the per.oe from obtaining a. comparable replacement dwelling. Since the relocation payment is not to be considered income (124.208) and is provided for the particular purpose of obtaining replacement housing for the displaced person. it cannot be released to other creditors without assurances that comparable decent. safe, and sanitary housing will be available to the displaced person. Subpart 0—Payments for Moving and Related Expenses In addition to comments on rule changes, a number of commente received on this subpart were requests for clarification. Ordinarily. such clarification would be provided by technical advisory guidance. However. to be responsive to the comments, we have summarized the answers to soohe of these below. Section 24.308 in the NPRM has been renumbered as 114.304 and S 24.304 has been renumbered u * 34.308 to provide a better grouping of topics. The numbers used below are those used in this final rate. Section 24.301 Paynreat forAcluaf Reasonable Moving and Related Expenses --Residential Moves Questions were received about payment for the storage of personal property covered in * 34.3011d). As with all other moving expenses. the Agency determines what storage coats are reasonable and necessary for a move to take place. If the Agency determines storage to be necessary. the costs of moving the personal property to and from storage would also be eligible for payment. Boarding of animals le not considered to be storage. Section 24.302 Fixed Payment for Moving Expenses—Residential Moves There were numerous comments concerning the 550 fixed payment for moving expenses provided in if 24.302. FHWA he. clarified the language of this exception to apply only to persons with minimal personal possessions who are m occupancy of a dormitory -.tyle room shared by two or mote unrelated persons, or a person whose residential move is performed by an agency at no expense to the person. This language is also reflected in the moving expense schedule width is published by FHWA ,. elsewhere in this Past 11 of today's Federal Regislder - •. 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 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 8924 Federal Register / Vol 54. No. 40 / Thursday. March 2. 1989 / Rules and Regulations stuns of the common governmentwide rule, to provide that the payment shall be based on the remaining term of the mortgage on the displacement dwelling or the actual terra of the new mortgage, whichever is less. Many of the same commenters who preferred this method did not think that their agency could make the increased mortgage interest payments at the time of dosing because of their payment procedures or the loan processing procedures of lending institutions. In response, the final rule has been revised to provide that the payments must be made "at or near" We time of dosing. However. the implied purpose of the li increased mortgage interest coots payment is to reduce the replacement mortgage; therefore this payment must d be available to lower the amount of the u mortgage in a timely manner, preferably w at the time of the closing on the replacement property. 'Ibis procedure c does require close coordination with the de closing agent. but is more coat -effective than the amortization method. The eh agencies who thought they would be most successful using the bay -down au procedure were those who used escrow d accounts to make funds available to of displaced persons. cal There were oho several commentsthe about home equity loans and the inclusion of these mortgages in the computation of the increased mortgage Interest costa payment. Home equity th loans are valid mortgage liens on residential real property regardless of how the proceeds from the loans are us pied Therefore, they must be included In the computation. a In answer to another comment, the co co mortgage rate to be used to compute the m increased mortgage interest coats m payment when the property is pecured ha with an adjustable rate mortgage is the Pe interest rate that Is current on the a The first issue was the inclusion of coat ofutWties in the computation of rental assistance payment- The inclusion of utilities has been an ong issue since the Publication of the common rule in 1985. Since that time, utility services have been included in the computation of a rental assistance payment if they were included at the displacement dwelling and/or the comparable dwelling as a part of the rent. FHWA recognizes the concerns =rent the 14 commenters about the increased administrative burden for securing information and the variable In utility usage due to differing user restyles. Hese concerns can be ddressed in various ways. One commenter suggested that a schedule evised for utility costs with the input tility companies in the project area th ill reflect actual, reasonable coats. Another agency suggested that if true omparables are used far payment termination. the utility costa should also be comparable and their inclusion mild net increase the cost of replacement housing. Relocation from batandard dwelling to a standard welling could, in fact, decease the utilities, especial' the cost of heat ass a larger dwelling is used to mac needs of a family. or if all utilities ere not available in the displacement welling. as noted by another commenter. Agencies may establish their owndeterminingprocedures to be used for determining e cost of utilities if the procedures are ed uniformly. FHWA is continuing to include Odes in the monthly base housing mputatfon because utilities are nsidered to be an integral part of onthly housing coats and historically ve been treated as such by several deral programs including those dministered by HUD as a standard Pr actice. The existence of adequate the do agree that some tenants voluntarf y the elect to spend more than 30 percent of their Income for housing when more oing affordable housing is available. However. FHWA believes these lifestyle choices for convenience, prestige or other reasons to be the exceptions, not the rule. Consideration must also be given to the fact that private lending institution requirements set the 'knit on the monthly cost of housing after of purchase of a dwelling at approximately the same level as the 30 percent of income criteria established for tenants. The inclusion of a person's income in computing a base monthly rent figure was also opposed by several be . commenters. The biggest concern was a perceived difficulty in the verification of of income and an implied reluctance to at accept income information from some displaced persons. FHWA believes that accurate information concerning income can be obtained from most persona. 1.f there is obvious evidence that a person has more income than reported. it is the s Agency's prerogative to accept the income u reported. to request additional verification of income. co property as of the date of acquisition. ad Mies is a primary requirement for a ailing to be decent, safe, and anitary. The 30 percent figure used in 24.402(b)12)(li) to determine base nthly rental is considered a "unable percentage of income to be plied to rental housing costa under current market and economic nditiona, and is consistent with the rcentage of income figures currently ing used in other subsidized housing d related programa of HUD and other endes. Several commenters stated t. in their experience. many tenants now paying 40 percent or more of err for housing cods. Our cern hi that the 40 percent paymmts primarily reflect the lack of affordable tel housing In the current market. Ws A sample computation of an increased dw mortgage interest costs payment is included In Appendix A, as requested by a number of commenters. An IBM PC compatible computer program and mo financial calculator instructions will be tea made available as technical guidance as ap soon as feasible. Section 24.402 Replacement Housing co Payment for 90 -Day Occupants pe Section 24.402(42XllJ(A). The change an made in 124.401(a)(2)(t). concerning the ag deposit of estimated just compensation, the is made bete also, err, Section 24.402(b) Rental assislance th payment. There were numerqua can comments about the made In this median. ran including income tax returns. or to inform the person that there is reasonable doubt that the information is accurate. If the income information is not provided or amplified as requested, the Agency may take such action as it deems necessary to obtain income information under a uniform agency - wide or area -wide policy. Section 24.402(b)171 Maurer of disbursement. Eleven comments were received concerning the vesting of the full amount of the rental assistance payment when the displaced tenant receives the first rental assistance payment, either in Lump sum or as an installment. Most of the comments took exception to the idea of vesting. The vesting of the full amount of the rental assistance payment is Intended to establish at a definite point in time, the full amount of the payment for the 42 month period after displacement. Vesting eliminates the red -tape requirements of recordkeeping, re- inspection. and recertification of the replacement dwellings, and continued contacts with the displaced person and the person's landlord that would otherwise be necessary. It also eliminates the potential problem of additional project costs as rents are increased or new DSS dwellings need to be found for those who no longer live in standard housing. FHWA understands that thesame r.ommantersare concerned shout the diversion of.lump sans rental assistance ppaa_ymagts for non- housing uses. and a sabssgnent return of Federal Register / Vol. 54. No. 40 / Thursday. March 2. 1989 / Rules and Regulations displaced person to sub -standard Mg. One way to effectively provide Nos,tallment payments, either to the ,eplaced person or to the person and ' Au persons landlord. without ,`continuing agency supervision. Is to place the payment in an escrow account Beat will be disbursed according to a pre -determined schedule. This method could also serve for disbursement of housing of last resort payments. which are also vested. The method of disbursement remains the Agency's discretion. It should be understood that. under vesting. the only times a rental assistance payment should change are during the one-year period described in 24.402(a)(1). and then only if tenant elects to up -grade bis or her housing to receive the full amount of the original computed rental assistance payment based on a comparable dwelling. or changes his or her status from tenant to owner and therefore becomes eligible for an additional payment (see 24,403(ell• Section 24.402(c) Downpayment assistance payment. Twenty-one comments were received concerning downpayment assistance. Only 4 of the 21 commenters believed that the amount available for downpayment assistance should be limited to the computed amount of the rental assistance payment for tenants. The malarity stated that agencies should reR downpayment assistance payments of up to $5.250. with most recommending that the payment be restricted to the amount necessary to obtain conventional loan fmandng for purchase of a replacement dwelling. The main concern expressed was that allowing each agency to select a procedure for computing the down payment assistance payment did not promote uniformity. Since the legislation does not give the lead agency the authority to selects particular procedure. but reserves such authority to the displacing agencies. we have elected to retain the existing language. As several commenters suggested displacing agencies may want to coordinate with other agencies within the State or jurisdiction where they are located to reach a consensus on the procedure to be followed at State or jurisdiction. FHWA will appreciate being advised of the experience of the various agencies in the implementation of this procedure. if the experience indicates that a change is needed to affect a more uniform implementation. we will seek a. legislative change. Regardless of the procedure selected a rental assistance payment will.have to be initially computed kr tenants. If the computed rental assistance payment is zero, then the downpayment assistance is zero unless the agency has elected to make downpayment assistance payments of up to $5.250. If their eligibility is greater than 35.250 for rental assistance, they will be eligible for housing of last resort for rental assistance or downpayment assistance. As is required by statute. eligibility for owners of more than 90 days but less than 7130 days for downpayment assistance will be limited to the amount that would have been computed had they been 190 day owners. Section 24.403 Additional Rules Governing Replacement Housing Payments Several comments were received concerning the requirement in 24.403(1)(1) that en adjustment be made to the asking price of any dwelling used to compute the replacement housing payment to the extent justified by local market data. This procedure has been a part of the gavernmentwide common rule since it was first published in March 1985. It requires that adjustments be made in the asking price of comparable dwellings to the extent that the market demonstrates that expected sale prices will be less than the asking prises. A clarification of the use of this procedure las been added to Appendix A In 124.403(a)(2). for clarity and as suggested by several commenters, FHWA has separated the procedures for major exterior attributes and buildable residential lots Into two paragraphs. Section 24 4ort(c)(8). Several comments were received concerning the use of current fair market value for the acquisition price of a previously owned dwelling when it is used as the replacement dwelling. The current fair market value is used because (1) It is the amount that would have been paid if the dwelling were purchased on the current market as a replacement residence. (2) the displacedawner could have acquired any other dwelling as a replacement and (3) the use of the previously awned dwelling is the conversion of an existing asset to replacement housing purposes. This regulation operates the same whether the previously -owned dwelling is mortgaged or unencumbered. in response to one commenter, the coat of an appraisal of the previously owned dwelling is a reimbursable cost if the agency considers en appraisal to be appropr10te and neceaPpry. 8925 Section 24.404 Replacement Housing of Lost Resort There were 13 comments on replacement housing of last resort. Several concerned the requirement that the use of housing of last resort be justified. Such justification is considered important for good program management and is consistent with the requirement. added by the 1987 Amendments. that any payment provided for housing of last resort that exceeds the maximum amounts provided to tenants and owners by 3124.401 and 24.402 must be justified. A slight modification was made to 24.404(a)(2)(i) at the recommendation of one commenter to clarify that justification for lad resort housing assistance may be for an entire project or program area. if appropriate. without additional case-by-case justification. A number of comments were received about the change in status of a displaced person from a tenant to an owner. FHWA has clarified that such a change in status must be with the concurrence of the displaced person. The concurrence of the displaced person should be received prior to the execution of any of the methods of viding for housing of lut resort Several general comments ware received about the concept of replacement housing of last resort Replacement housing of last resort is a Legislatively authorized continuation of the replacement housing assistance provided by 31 24.401 and 24.402 of this part, and provides for comparable replacement housing for displaced persons not adequately provided for under those sections. or who do not meet the eligibility requirements of those sections. Additional fleadbility is provided to displacing agencies for the provision of housing of last resort so that housing needs are met for owners and tenants in the most cost-effective, yet equitable way. Subpart F—Mobile Homes Section41.502 Moving orjd Related Expenses -Mobile Homes Only one comment was received on this subpart. in response, 324.502(a) has been modified to state more clearly that, even though asoven ant whose mobile home le not acquired may receive replacement housing under 24.503(a)(3). and therefore is not eligible for payment for moving the mobile home. ha may be eligible for payment for moving personal property from the mobile home. Also, the commenter thought that all mobile homes should be treated as real Register / Vol 54. No. 40 / Thursday.M arch 2, 1989 / Rules and Regaled/ins be riate in areas wheremoie homes afire treated as real property under Slate law or where an agency ham the option to consider mobile homes to be either re al property or personal property. However. some State laws consider mtoh la home' to be persona/ p1operty may, and. therefore. they may not be acquired as realty. Subpart Gr --Certification This subpart implements one of the most significant changes added by the 1987 Amendments. Aa such, PHWA has a special interest in its implementation and would appreciate receiving further information on its use and effectiveness Several respondents commented on Subpart G. however no single comment. or group of comments, was sufficiently persuasive to necessitate a change la the proposed text However. one comment on f 24.403, Monitoring and correto need for substantiv revisve action. did draw our ion of zteos(b)- Section 24.802 Cectrfcadan Application Two commenters recommended that certification be made dlract!y the head the Stats agency to the Federal agency providing assistance. rather- thedesState evee , or the governor's not adopt this recommendaliou&T la need for a toned ere is a'defimita point within each State d for the receipt' and screening of certification applications. Consistent with the principles of federallem, the th Office of the Governor, u the Chief Mar th Executive er in any State, is the logical starting point for this process Fe since the governor normally exercises executive authority over the State w agencies that are recipients of Federal nen financial assistance or through which Federal financial assistance is channelled to sub -recipients at the local level. all of whom are sub to the Uniform Act and any of whom could make application for certification approval. The certification process does Sega not alter the existing relationshipbe State -level between load sub -recipients and the pe redptegts of Federal finandal asaIatenc�e. kis expelled that to any certificationlnwi be ii de s State -level t � begettay to of instances the governor's designee. In those or end wi (city, county, etc) it the direcocal trecipient,inclas and there is nes State level ancy geis authorized, to pe'� inchn the certification x .�v;�tiontaould be . made directly to the governor, or the governor's designee. The governor. or a State office or agency designated by the governor. be able to standardise the process develop an expertise in the prones of applications. Further, the governor his or her designee will be more able assess the capabilities of those State agenciea.seeklug to immure Federal agency responeibiiities through the certification process. A focal point of this nature will be particularly advantageous in processing certifications froze a State agency seeking certification approval from than one Federal agency. Two commenters indicated some misunderstanding of the respons e ding agency, It is not intended Feder funding agency endorse an approved application received from the governor or the governor's wee. if the Federal aPWop<iata indicatideficiencies program. State The purpose of the ertifyine ���g agency accept the ' approved application without can independent review is the threefold: first.. theft �a�a the roleige[ In evaluating the State s designee. co It wi@�to current stats of the F funding agency's oversight tilts State agendas; third. unless there are pre- existing appropriate le rsf efdencies, the certification approval neon of the three ts The is e basis for the written assessment of e State capabllitiea to operate er certification ;filch the dent find agency must provide hen the rcation application is emitted to the Federal Lead agency. Section 34.E Monitory and recognition of a possible inconsistency, between the requirements of 1 24, and the assurances required b 24,4 will and sections 210 and 305 of the f_'r,," and Act. Asa consequence, f zd.®03(b) ins �g revised and clarified to provide that if a or State agency certifies. under State law to and regulation, it can and will comply with the provisions of the Uniform Am which would otherwise be covered by the sections 220 and 305 assurances and, .then, fails to comply, the Federal agency should withhold Federal financial assistance in that State agency. prof -tuns, projects, and activities more affected by the Uniform Act diminish certification process does not responsibilities agency's fundamental with the Uni Uniform �� ccebulalt provisions referred iny those and 305 assurances. It islsections.o t the statute. that compliance with pions which are the subject of the asaurances is or paramount importance to the coni! Federal fieancial'asaistance of programs. projects, end activities affected by the Uniform Act. Far example, if Uniform Ad non_ occurred in th ay lose tedprooject connection withhold Federal &sandaal cardse its authority e ain until noing state compli� stancewith the Corrective action One respondent objected to the Lo dal Federal assistance aif of State envy failed to comply with applicable te w and regulation serving at the sill loaf i certification. The respondent rceiyed this to mean that the authority Fedf Federal �aul assistance is thhold approval a available to an agency regardless of the source the finanda; course. is not the assistance. authority the theponsibility thholding of Federal financialregarding t� Lance rests with each Federal and any re deer dit 14 projects, prpgrams. ci comment did, howev d ve to the In order to ensure coordination of information ambmg Federal. oracle'that may have accepted a certification from the same state agencylanguage has been added to ; 24 403 (b) and (c) to require that the lead consulted by the FedWary eral heeling agency before any Federal funds are withheld from a certified state agency or the acceptance of a certification is revoked. Asa A to Part 24—Additimeal The appendix has been modified and augmented toprovtde for better understsndhregulations to r the section, or the which pedalos. Section 21.2(021 been gadded trsons ea displaced �nce od� that some persona may ba temporarily displaced tart amort displaced swung because they have not been permanently Section 24.102(m) Fair rental to response to severe/ comments concerning share -fetes rent, the mmote saieteagenerally, has bean added to the Section at Axed payment for laming expenses--nan- residsettel . P}IWA Au b Federal Register / Vol. 54, No. 40 / Thursday, March 2. 1989 / Rules and Regulations 0027 clarifying language in Appendix A for non- profit organizations Crested under this section. Section 24:401 Replacement housing payment for 90 -day homeowner -occupants. Section 24.401(0)(2) A statement has been added to clarify the phrase "for good cause.* Section 24.101(d) The computation of a "buydown" payment. the tactors used is oomputatioa. and the agency's obligation to the displaced person are explained. Even though one commenter suggested that adjustment of the buydown payment. when a displaced person elects to mortose the replacement dwelling for lest than the diet t dpenalizes dise t� on displaced person tor snaking a larger downpayment. are are retaining this providon. In addition. we have accepted a recommendation that the mortgage with the shortest term be used to compute the payment. MYNA bu amended the procedures to reflect this allotment. The FHWA is interested in your Ctperiemos with this new procedure for computing the mortgage interest differential payment. Appear/tall c B to Part 21-Stafft Report Fenn The reformatted stitistical report form iadudes t new tine Item for tepoetiag payments for the statutory business reettablialemeot expense entitlement (9es line 7A). Several comments ware received regarding the information required in Part 8. column (A). More accurate statistical analyses can be obtained by changing the requirement for column (A) to displacement' instead of number of claims nine a displaced person may receive more than one claim In several categories -The heading for column (Al hu been changed to number of displacements, As required by Section 1320.21 of OMB's new paperwork clearance regulation that was published in the Federal Register on May 10. 1988, we have included an agency disclosure notice for public reporting on the STATISTICAL REPORT FORM. A request was received from HUD to add new items to the statistical report foray to collect race. sex. ethnicity. handicap and familial status data. These items were not included in the report form presented in the NPRM M therefore. FHWA doss not have the benefit of public comment on what. if any. paperwork burden such additional information collection would have oe agendas or persons carrying out acquisition or displacement activities. Therefor& the report form format tansies unchanged at this time except for the minor alteration referred to above. Regulatory bnpact The FHWA has determined that this action does not constitute a major rule under Executive Order 12291 or a - signif3cant lute nndar the seratlatory polldes Alba Department of Transportation. Executive Order 12291 requires that a regulatory Impact analysts be prepared for "major" rules which are defined in the Order es any rule that has an annual effect on the national economy of $100 million or more, or has certain other specified effects. The economic impacts of this final rule are primarily mandated by the provisions of the 1987 Amendments. However, since some of the statutory changes are administrative or procedural. savings to Federal. State. and local agencies should result In the administrations of the Uniform Act. Other statutory changes. which alter benefit levels. and expand the Acte application to include cereals private persons who receive Found f10enctal assistance. and persons displaced by eertein uonacquisition activities. should result in a modest increase in amounts paid under the Uniform Act. However. we do not believe that the proposed regulations will have an annual economic effect of 8100 million or more. or the other effects listed in the Executive Order.. For this reason. FHWA has determined that this regulation is not a major rule within the meaning of the Order. Federal agendas administering direct Federal activities, as well air many states,currently have the necessary authority to comply with the additional provtatons of the 1987 Amendments implemented la this rule. To delay the promulgation of the amendments made in this rule would deprive many parties of the protections and benefits intended by those provisions of the 1987 Amendments. Accordingly. the FHWA finds good cause to make this regulation effective without the 30 -day delay in effective date under the Administrative Procedures Act. 5 U.S.C. 553(b). Regulatory Flexibility Ad The Regulatory Flexibility Act (5 1J.f3.C. 905(b)) requires that for each rule with a "significant economic impact on a substantial number of small entities" an analysis be prepared describing the rules impact on small entities, and Identifying any significant alternatives to the rule that would minimise the economic trnpacts on small entities. The provisions of the Uniform Act that are implemented In this final rule have not changed substantially. The primary Impact of the 3987 Amendments is expected to be an increase in benefits provided to small businesses. the elimination of unaecesuary administrative requirements Imposed on State and local agencies. and the consequent reduction of burden on thea affected entities, and the expansion of the Act's application to those private entities that seek and receive Federal financial assistance. in response to comments received from rural electric cooperatives FHWA has considered the impact that this rule would have on such cooperatives. Primarily for the reasons provided elsewhere in the preamble we have concluded that this regulation would not have a significant economic Impact on a substantial number of small electric cooperatives. Eased on information available to FHWA at this time and under the criteria of the Regulatory Flexibility Act. rice FHWA hereby certifies that this regulation will not have a significant economic impact on a substantial number of small entities. Paperwoeic Reduction Ad Rogdrea bs Today's final rule makes one change to the Unifarrm Ad Report form. which i. contained is Appendix 11 of Part 24. A new item, TA, fe added to obtain information relating to the new business reestablishment payment added by the 1987 Amendments. Several minor edi»@;r:: changes have also been tsaade in this form. Federal funding agendes which elect to require a mart an Uniform Act activities will submit the. revised form to the Office of Management and Budget (0110) for... review under 44 U.S.C. 3504(h). the Paperwork Reduction Act. Pub. L. 90- 511. Agencies may continue to use the previous report form until 0118 approval is granted. Federalist' Assessment As discussed in the Supplementary Information sections of this preamble. dile final rule builds upon the positive Federalism accomplishments achieved in the promulgation of the governmentwide common rule on February 27. 1988 (51 Flt 7000) which significantly reduced administrative burdens on States and local redpients of Federal financial assistance -The FHWA has determined that the Federalism accomplishments of the common rule are retained in today's tole and the changes which have been made are fully consistent with the principles and criteria contained In Executive Order 12912 and do not have sufi3dent further Federalism implications to warrant the preparation of a complete Federalism Assessment. 'Phis final rule Implements a provision of the 1987 Amendments that gives substantial additional discretion to the States. This is the taertijtcatiott procedure which provides an alternative whereby State agendas. with adequate 0924 Federal Register / Vol. authority under State law. can comply with the Uniform Act with a minimum amount of Federal supervision re oversight. This certification procedure would give maximum authority and control to the State governor, or his or ber designee, In managing and coordinating the certification procedure in each State. List of Subjects in 49 CFR Part 24 Real property acquisition. Relocation assistance, Reporting and recordkeeping requirements, Transportation. Federaom, amende ed asset forth below. Issued aa: February 2.2. 19D1. Robert L Farris, Federal HighwayAdeunistrnter. Part 24 to revised to read as follows: PART RELOCATION AMREAL PROPERTY ACQUISITION D PROPlON FOR FEDERAL AND ■ EDERAe,LY ASSISTED PROGRAMS St+6part A- General Set 24.1 Papaw 24 2De8adana ?w4 adtodnapea and re 24.5 Manner of notice.. 24.5 Achnhtidratien of;otedlyf gilded 24.E Federal agency waiver of regulations. 24 24.8 Compliance with other laws end24 24.9 ReCOrdkBeping and reports. 24.10 Appeals. Subpart S- 41eal Property mon 24.101requirements.�, of aoquisitJtm 24.102 Basic ecqutaftfon ponder. 24.103 Criteria for appraisal, 24.104 Review of eppraisab. 24.106 Acquisition of tenant.owmed improvements. uU J �xpensp inddental to transfer of tito the Agency. 244.108 2 197 � � alien expenses. Subpart 24.201 propose. 24.202 Applicability. 24.205 Relocation 24.204 A c Avof ailability replacement dwelling before displacement 54. No. 40 / Thursday, March 2, 1889 / Rules and Regulations Subpart D --Payments Moving _0—Payments and 24.301 Payment For seined reasonable moving and trialed expenses_ reafdentiel moves. 24.302 Fixed payment for moving es -residential moves. 24303 Payment For actual reasonable moving expenses— nonresidential moves. 24.304 Reestablishment expenses— nonresidential moves. 24.305 Ineligible moving and related expenses. 24.308 Fixed payment for moving andel moves. 24.307 Discretionary qty relocation Subpart E--Repaseement Housing hymens 24.401 Reptecemtmt booting payment for tan -day ts. 24.402 day �a. t hoaxing payment for 24.403 Additional rules governing replacement housing payments. 24.404 Replacement housing of Oat resort. and federote alailyiassffsted land blc confidencea Federal programs; acquisition (b1 To ensure that persons displaced as a direct result of Federal or federally, assisted projects are heated fairly, consistently, and equitably so, that such personal will not suffer disproportionate for the benefit of the uries as a result rpublic as designed whole: and (c) To ensure that Agencies implement these regulations to a manner that is efficient and cost effective. 1242 Deem nis:ma. the Federal agency at, S ►" enens orperson that acquires real' displaces a person. ��� go. (11 Acquiring agency. The term Seeped Imo -Mottle Hoarse 21.501 Applicability. 24.502 Moving home d related ercpeaaes— sub&for dal Replacement._ bossing �!' t al s. Replacement housing payment far day mobile bane occupants. Additiosal pa mobile is to m rules irelocation boom oo :rtpa Subpart Q--CsrOitptlon .201 Purpose. .803 dation application. 24.a0{ Monitoring and corrective action. Appendix Part24—Addttlomal mation Appendix a to Part 24—,Statistical Report ag'lacqency, " in para a State this section, wild has a (graph ty to acquire properly by eminent domain tender State law. and a State agency or person which does not have such aut ty. Any Agency or person solely cgtthf property pursuant to the provisions of 24.101(x) (1). (2). (3), or (4) need not provide the asses tv- required » (2)Displacing�cy Theism disphcing +' means any Federal project. ca and any out a program or may Sate, State agency, or person carrying out a program or with Federal financial assistance. which person. anises a person to be a displaced (3) Federal agency, The term "Federal icy" means any department. Agency. or instrumentality In the executive branch of the Government. any wholly owned Governn►ent corporation. the Architect of the Capitol, the erFesad Reserve Banks and branches thy authoritytoaft�n who has the domain under Federal lllapw. rty byy eminent (4) State agency. The term "State or instrumentalityeana ad�rte or l�gesroy f a political subdivision of a State, oany of department, twr mare or instrumentality Cates 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. (b) Appraised The term "appraisal" means a written statement apenddeet independently and Impartially prepared by oinion of defined rake appraiser of'aag forth an specific date, supported ed property au of a Retoeatioe 24.205 Relocation planning, advisory 24.205 Eri�on and ate, trans fele 2t207 General �elaima for fair retocatiayment& expos starts Reload= payments not conspdare,d stab es relieve Autbatity: Section 235: Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1870 Pub. L 91-818, 84 Stat 1894 (42 U.S.C. 4001) se amended by the Surface hAssistance nppryaj and Uniform R Tide IV Pub. L 100-17.101 Stat.248-ct 2 VIM of 4001 note); and 48 CFR 1.48(7x), Subpart A--Qeneral 24.1 Purpose. The pupa se of this part is to promulgate rules to implement the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, u amended (42 U.S.C. am et seq•)je 0 accordance with the/allowing a) To ensure that owners of real erty to be acquired for Federal and rally -assisted projects are treated ly and consistently. to encourage date acquisition by agreements with owner's, to a bilge tion and Mian in the courts, and lo Federal RegisterJ Vol. 54. No. 40 / Thursday, March 2, 1989 / Rules and Retgtata/long mar t s andinformr et 'element tion - (c.) Boniness. The team "business" means any lawful activity. excepts farm eperansm that is conducted.() Primarily for the purchase; sada tease 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: or (2) Primarily for the ule of services to the public: or (3) Primarily for outdoor advertising display purposes, when the display crust be moved as a result of tine project; or (4113y a nonprofit organization that has established its nonprofit status under applicable Federal or State taw. (d) Ccerparobk replacement dwelling. The tetra 'comparable replacement dwelling" means a dwelling 'which he (1) Decent. safe and sanitary as described in paragraph (1) of this section: (2) Functionally equivalent te the displacement dwelling The term "functionally equivalent" means that it performs ilia same function. provides the same utfilty. and Is capable of contributing to a comparable style of living. While pa replassess every cement dwelling of the displacement dwelling, the principal features must be present. Generally. functional equivalency le an objective standard, refecting the range of proposes for which the various physical features de dwelling may be used. however, in determining whether a replacement dwelling Is ianctionelly equivalent to the displacement dwelling. the Agency racy consider reasonable trade -ells for specific features when the replacement unit is "equal to or better than" the displacement dwelling. (See Appendix A of this part): (3) Adequate in size to accommodate the occupants; (4) in an area not subject to unreasonable adverse environmental conditions; (5) Fa 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: (a) On a Mte that is typical in size for residential development with normal site improvements, Including customary landscaping. The site need not include special improvements such as outbuiIM, ; swimming pools, or greenhouses. (See also ; 24.403(a)(2).): flu Currently available in the person on ch. private market. However. a comparable repiaterrait dwelling for a person receiving government housing assistance before displacement may reflect similar vernment housing (See Appendix A of this part): and (8) Within the financial means of the displaced pen. (i) A replacement dwelling purchased by a homeowner in occupancy at the displacement dwelling for at least 180 days prior to Wtiatlon of negotiations (180 -day homeowner) is considered to be within dee homeowner's financial means If the homeowner will receive the full price differential as described In 1 24.40Ifc), ell increased mortgage interest costs as described et 1 24.40i(d) and all incidental expenses as deeaibed at ; 24.401(e), plus arty additional amount required to he id tmder 1 24.401. Replaoeesent housing of last resort. rented by an eelligiiblele displaced pacement dwelling ero n 1. considered to be within his or her financial means if. after receiving rental assistance ender this pert. the person's monthly rent and estimated average monthly utility costs for the replacement dweHfng de not exceed the persona base monthly rental fir the displacement dwelling as described at 1i 24.482(b Fore displaced person who is not eligible te receive a replacement housing paw because of the peon's faille to meet length -of -occupancy requirements, comparable replacement rental housing le considered to be within the person's 1tei'ncial means if an Agency pays that portion oldie monthly housing rests of a replacement dwelling which exceeds 30 percent of such person's gross monthly household income or, if receiving e welfare assistance payment from a program that designates amounts for shelter and utilities, the total of the amounts designated for shelter and utf)Itles. Such rental assistance must be paid under 24.404. Replacement housing of het resort. (e) Contribute materially. The term "contribute materially' means that during the Z 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: of a)edo��a gross receipts la55e0or (2) Had average anneal net earnings of at least $i00Q or (3) Contributed at least 33% percent of the owner's er operator's average annual gross Income from all soeurrcea. (4) lf the � of ?ora�tp,. in any given vase, dm Agcy uag--. i . approve the use of other cdterla as determined appropriate. (1) Decent, safe, and aanifary dwelling. The term "decent. safe, and sanitary dwelling' means a dwelling which meets applicable housing auf occupancy codes. However. any of the following standards which are not mat by an applicable code shall apply unless waived for : • d cause by the Federal agency fun , : the project. The dwelling shall: (1) Be structurally sound, ertighl, and good repair. w(2)thContain a safe electrical wiring syviem adequate for lighting and other (31 Contain a beating systema capable of =staining • healthful temperature (of approximately 20 degrees) for a displaced person. except le those areas where local climatic conditions do not require such a system. (4) Be adequate In size with r+eapect to the number of room and area of Ili apace needed to accommodate the emplaced person. Thom shall be separate. well lighted and ventilated bathroom that provides privacy to the user and cow a sink. bathtub or ohmage stall. swackier anise � toiletalt n d goo t4 appaoei its Mirr was; a sewage drainage system. In the cane ale hag dwelling. there althit be ■ kitchen area that contains a'fally aersrble skit. proper meted to potable hot roil cold water and to a sewage drainage system. and adequate space and utility service connections for ■ stove and refrigerator. (5) Contains unobstructed egress to safe, open space at ground level. 11 the replacement dwelling omit hon the second story or above. with acmes directly from or through a common corridor, the common corridor must hove at least two means of egress. (8) For a displaced person who is handicapped, be free of any barriers which would preclude reasonable ingress, mess, or use of the dwelling by such daplaced perm. fg) Displaced person— (1) General.. The term "displaced person" means any person who moves from the real property or moves his or her personal property from the real property; (This includes a person who commies the real property prior to its acgnisftfon, but who does not meet the length of occupancy requirements of the Uniform Act at described at 24.401(a) and 24.403(.) WA' a direct result of a written notice of intent to acquire. the initiation of negotiations for, or the acq di tion of. such seed property in whale or 10 part -ho -117214.8*-- _ 8930 Federal Register / Vol. 54, Na 40 / Thursday, March 2. 1989 (u) Asa direct result of rehabilitation or demolition for a project; or (iii) 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 rson under this paragraph applies only for purposes of obtaining relocation assistance advisory services under 1 24.205(c), and moving expenaes under i 24.39'!,124.302 or ; 24.303. (2) Persons not displaced. The following is a nonexclusive stating of persons who do not qualify as displaced persons under Nils part (i) A person who moves before the initiation Zl.� of negotiations (see also i l), unless the Aged, determines that the person was displaced as a direct result of the program or project; or (W) A person who initially enters occcup� of the after the (iii) f its acquisition iror the project or person who has occupied the property for the purpose of obtaining assistance under the Uniform Act (iv) A person who 1. not required to relocate permanently as a direct result of a project. Such determination shall be made by the Agency in accordance with any guidelines established by the Mao APP agencyderal A hustling projectr (see (v) An owner,ocmpant who moves as a result of an acquisition as described at 11 24.101(a) (1) and (2) , or aa a result of the rehabilitation or demolition of the real property. (However, the displacement of a tenant aa a direct result of any acquisition, rehabilitation or demolition for a Federal or federally. aaslated project is subject to this part.); or (mil A person whom the Ager determines is not displaced as direct result of a partial acquisition; or (vf1) A person who, after notice of relocation eligibility (described at jj 24.203(b)), is notified in writing be or 'he will not be displaced fthat project. Such notice shall not be issued unless the person has not moved and the Agencyagrees to reimburse the person fbindingany expenses incurred to satisfy any obligationsntractual into after effective date of the cftor reths eligibility; or notice of relocation, (+�) An owner -occupant who voluntarily conveys his or her property, aas described at 2.4.101(a) (1) and (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 into date of a condominiumpurprose property; a unit housing cooperative property. In such cases. however, any resulting displacement of a tenant la (ix) A to sregulations in this part: or use and mon who retains the right of for las following cy of the real property wing its acquisition by the Agency; or (x) A person who retains the right of H use and occupancy of the real props b for a fixed term after its acquisition by b the Department of interior under Pub. L 03.477 or Pub. L 93-303; or in (u�nl)a person who is determined to be lnitiatiaa unlawful Prior to the of egotiatioru [see paragrapha bee- evicted for cause. under applicable law, as provided for in 124.205, or (b) Dwelling The term "dwelling" means the place of permanent or mega customary end usual residence of a Fed person, according to local custom or ad w, including a single family single family unit ill a two-family. l !e family, or multi y. multi- rel (2) 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 egotfations" means the notice to the erson that be or she will be displaced y the project or. if there is no notice. the actual move of the person from the Property. (3) In, the case of a permanent relocation to prated the public health nd welfare, ender the Comprehensive Environmental Res Compensation and / Rules and Regulations (y) this section), ora person who haa Liability Act atom (Pub. L "Superf ej the "initiation of 1Q bailors" mesas the formal ounccement of such relocation or the era) or federally -coordinated health visory where the Federal Government ter decides to conduct a permaAent OcaH,on. a non -housekeeping a runt; a'rnobile home; or any other - residential unit, Fed et� (1) Farm operation The term "farm (m �ocy" means the DLead agency. ie ternsdead of ansportatfon actingthrough h Department t e HighwayAdministration. st ) Mortgage, The term "mortgage" meMIS such classes aliens as are only given to secure advances on,, unpaid purchase price oL real rty, under the laws of the State in the roperty is located er with secured thereby. instruments, if NonprafJt organization. The term rofit organization" means an tion that is incorporated under Pphcable laws of a State aa a non - organization, and exempt from Federal income taxes under 501 U.S C. ).real Revenue otice of Intent to acquire or of eligibility for relocation Written notice furnished to a 'to be displaced, including those aplaced by rehabilitation or on activities from pro perty acquired prior to the commitment of Federal &Handal assistance to the activity, that establishes eligibility for relocation benefits prior to the initiation of negotiation and/or prior to the comraiassistance.tment of Federal financial (p) Owner of a dwelling. A person is considered to have met the requirement to own a -dwelling if the person interests person or holds any of the following in real property; title, a life estate, a land a 29 -year lease, or a Lease any options for extension with 50 years loam horn she data of or- • i .n operation means any activity conducted solely or p��y for the comma Production of one or more agricultural or the products orthnber. for sale c met. e, and hg Props cutproome � and which commoditiessufficientucing u�ly o be th capable of contributing materially operator's support. Y We (n) (j) Federal financial assistance. The o "amp term "Federal financial assistance" means a grant, loan, or contribution profit the a provided by the United States, except paying any Federal guarantee or inaurance and any interest reduction payment to an Code ( individual in connection with the Code purchase and occupancy of a residence (o) N by that individual. notice i) Initiation o n assistance different action is negotiations. Unless a arson Federal program regulations, d eterm le ie be di ((stirdemoliti Haw n of negotiations" means the fallowing (1) Whenever the displacement results from the acquisition of the real props by a Federal agency or State agency. the "initiation Of negotiations" means the delivery of the initial written offer of just eompensatirm by the Agency to the owner or the owner's representative to Purchase the real property for the project. However, if the Federal or State agency issues a notice of�� intent to acquire the realarch person moves after that notice,pe g and a eta before delivery to the initial wr t (1) contract. purchase offer, the' "inftiaftop of rise negotiations" means the actual M'� of f at least st luding thp ifthe property.- acquisltloa Federal Register / Vol. 54, No. 40 / Thursday, March 2 1989 / Rules and Regulatlona An Interest in a cooperative project which includes the tight to spy s durellinF or is) A contract to purchase any of the tercets or estates described in paragraphs (p) (1) our (2) of this section. or Any other interest. including a partial interest. which in the judgment of he Agency warrants consideration as ownership. . (q) Person. The term "person" means any individual. family, partnership. corporation. or association. 01 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. (s) Salvage vuhre. The term "salvage value" means the probable sale price of an item. ff offered for sale on the coadhion that it will be removed from the property at the buyer's expense. allowing a reasonable period of time to find a person buying with knowledge of the uses and purposes for which tt is adaptable and capable of being used, including separate use of serviceable components and scrap when there is no reasonable prospect aside except an that basis. t) Small bovines,. A business be ring at kast one, but not more than 500 employees working at the elle being acquired or displaced by a program or project. (u) 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, the TrustTerrttorfes of the Pacific Islands or a political subdivision of any of these jurisdictions. (v) Tenant The term "tenant" means a person who has tbetemporary nee and occupancy of real property owned by another. (w) Uneconomic remnant The term "urrecononrfc remnant" means a parcel of real property in which the awner is left with an interest after the partial acquisition of the owner's property. and which the acquiring agency has determined hu little or no vain or utility to the owner. (x) Uniform Act: The term "Uniform Act" means the Uniform Relocation Assistance and Real Property Acquisition Policy Act of 1970 184 Stat. l89k 42 U.S.C. Om et seq.; Pub. 1. Ot- 64* end amendments thereto. (y) Unlawful occupomx A person a considered to be in unlawful occupancy if the pesos has been mimed to mom by a court of competent jurisdiction - prior to the hnttfation of negehations � le determined by the Agency to be a squatter who is oaarpytrng the real property without the permission of the owner and otherwise has no legal right to occupy the property under State law. A displacing agency may, at its discretion. ooaalder such a squatter to be in lawful occupancy. (z) Utility costs. The term "utility costa" means expenses for heat, lights, water and sewer. (aa) Utility facility. The term "utility facility" means any electric. gas, water. etearmpower. or materials transmission or distribution system: any transportation system; any communications system. including cable televisiow and any Fixtures, equipment, or other property associated with the operation. maintenance, or repair of any suds tcystem. A utility facility may be publicly. privately. or cooperatively owned. (bb) Utility relocation. The term "utility relocation" mans the adjustment of a utility facility required by the program or project undertaker by the displacing agency. it includes removing and relnitalling the facility, including necessary temporary fadlitlen acquiring necessary right-o€-erey on new location: movittg, rearranging or changing the type of redwing facades; and taking any necessary safety and protective measures. it shall also mean constructing a replacement facility that has the functional equivalency of than existing facility and is necessary for tha continued operation of the utility service. the project economy, or sequence of project construction. 124.3 No duplication at payments. No person shall recetvve any payment under this part if that peasant receives a payment under Federal. State. or local law which la determined by the Agency to have the same purpose and effect as such payment under this part. (See Appendix A of this part. 1 24.5.1 124.4 Awarenaa, monitoring and corrective action. (a) Asrwnncxs—(1) Before a Federal agency may approve any grant to, or contract or agreement with. a State agency ender which Federal ibaeandal asetstanae will be made available far a project which results in real property acquisition or displace:mest that is subject to the Unlit= Act. the State agency must provide appropriate aasitrances that it will comply with the Uniform Ad end this pert A disp� PM agenda aswaances shall be in accordance with section.210albs Uniform Ad. An acquiring ageing" w. � 1 assurances shalt be in accordance 'with section 305 of the Uniform Act and must contain specific reference to any State law which the Agency behaves ptavtdes an exception to section 101 or 302 of the Uniform Act. If. in the judgment of the Federal agency. Uniform Act compliance will be served. a State agency may provide these assurances at one time to cover all subsequent federally -assisted programs or projects. An Agency which both acquiree real property and displaces persons may combine its section 210 and section 305 assurances in one document. (2) If a Federal agency or State looney provides Federal financial assistance to a "parson" cueing displacement. suds Federal or State agency is responsible for ensuring compliance with the requirements of this part: notwithstanding the person's contractual obligation to the grantee to comply. (31 As an *ltemative to the asintrentcae requirement described to paragraph (a)(1) of this sedion, a Federal agency may provide Federal financial assistance to a State agency after it has accepted a certification by such State agency in aacosdance with the requirements in Subpart G of this peat (b) Moterler , andoornective action. The Federal agency w91 monitor compliance with this part. and the State agency shaII take whatever corrective action is neceisare to comply with the Uniform Act and this part The Federal agency may also apply sanctions in accordance with applicable program regulations. (Also see ! 24.603. Subpart G.) (c) Prevention of fraud wash and misrmonagement The Agency shall hake appropriate measures toy out part in a manner that minimizes fraud. waste, and miemanageaent I ill 24.5 !Ammar of notices. Each notice which the Agency is required to provide to a property owner or occupant under this part, except the notice described at 124102(b), shall be personally served or sent by certified or regis'te-ed first-class mail. return receipt requested. and documented in Agency files. Eats notice shall be written. in plain. understandable language. Perisons 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 newer, bequern: s or other needed help. 8932 Federal Registe / vol. 54, No. 40 / Thursday, March 2. 1989 d / Rules and Regulations I 2P 4.0 chAdministration of jointly -twirled Whenever two or more Federal agencies provide financial assistance to an Agency or Agencies, other than a Federal agency, to carry out functionally orgrelated activities which result in the acquisition of Property or the displacement of a person. the Federal agencies may agreement designate ane such age the cognizant Federal agency. In th unlikely event that agreement amo Agencies cannot be reached as to agency shall be the cognizant Feder agency, then the lead agency shall designate one of such agencies to assume the cognizant role. At a the ileum. the agreement t�s set are subject to its terms and cite any policies and procedures, in addition this part, that are applicable to the activities under the agreement. Und agreement. the cognizant Feder al agency shall assure that the project compliance with the provisions of the Uniform Act and this part. All feder assisted activities under the shall be deemed a project for the Purposes of this part f 24.7 Federal y waiver of The Federal project may waive an funding in determi nes nes thanot t the waiver doesuired by law if notreduce any assistance or protection provided to an owner or displaced person under this part. Any request fo shall be justified on a case-by- case basis. Ii 2�Compliance with other taws and by ncy as reg Le which H 1 Co (i) Executive Order 1124b—F,q Employment Opportunity. (1) Executive Order 11625—Min Business Enterprise. (k) Executive Orders 11988. Flo Management, and 900. Protec o Wetlands. (I) Executive Order 12250 --Lea and Coordination of Non -Die ' Laws. (in) Executive Order 12259 adership and Coordination of Fa ousing In Federal Programa. (a) Executive Order 12830-- vernmental Actions and fnterfe with Constitutionally Protected Prop Rights. ual (c) Time limit for initiating The Agency may set a reaonable me ority limit for a person to Me an appeal. The odpfain fter the perrsone limit shall neieceivessa than t30 days ritten n of notification of the Agency's determination on the person's claim, derahip (d) Right to representation. A person dation has a right to be represented by legal counsel or other representative in connection with his or her appeal, but it solely at the person's own ex (e) Review files Penne. optf The of bypermit aralktQg t+ence Agency *hall inererlt a Person to inspect and co all materials erty pertinent to his or her - fob f 24.9 Nscordtreepteq and reports. hich (a) Records. The Agency shall maintain adequate records of its to cquisition and displacement activi der in sufficient detail to demonstrate e compliance with this part. These Is eha be retained for et least 3 years persoaften each owner nn displaced from property any e a�emealt receives the final payment to which or she 4 entitled under this Part. or accordance with the applicable regulations of the Federal funding agency, whichever is later. maintained (bConfidentiality of records. Records accordance with this partareconfidential regarding their use as public information, unless applicable law provides otherwise. (c) Reports. The Agency shall submi a report of its real property acquiaitio or a and displacement activities under this p required by the Federal agency funding the project. A report will not required more frequently than every years, or as the Uniform Act provides, unless the Federal funding agency shows good cause. The report shall be prepared and submitted in the format contained is Appendix B of this part xcept materials which are dassifi das confidential by the Agency. The Agency may, however. impose reasonable conditions on the person's eight to ties ��' consistent with applicable Tawe. Cil Scope of review of appeal In reeards deciding an appeal. the Agency shall ach n and oconsider material submitted ball pertinent y and all other available information that is needed to ensure a fair and full he review of the appeal. (g) Determination and notification aftinfermper � Promptly ro p lyd a� receipt of an erson in support of as by a Pncy, make a written determination � on � wlk ch can explanation of the and basis onish thedecision was made, relief person a copy If the full t elle requested 1s not granted. the n cy shall advise the person of his or her right to seek judicial review. The implementation of this part must be in compliance with other applicable Federal laws and implementl� regulations, including, but not limited to, the following: 1866 (42 U.S.C. 1982 eSection of the t se ). vil Rights Act o[ (b) Title VI of the Civil) 1964 (42 U.S.C. 2000d et seg.). �� Act of (c)Title VIZI of the Civi 1968 (42 U.S.C. 3801 el req.)�as ts Act of amended. (d) The National Environmental Policy Act of 1969 (42 U.S.C. 4321 et req.). (e) Section 504 of the Rehabilitation Act Of' (f) The Flood DisasterProtection Act of 1973 (Pub, L 93- 234). (g) The Age Discrimination Act of 1975 (42 U.S.C. 8101 et sen.). OppExecutive nd Hou ing, as amen by Executive Order 12250. as amended 1 h) Agency official to review oppecd The the be review of the appealency shall be�either the 3 heed of the Agency er his or her authorized designee. However. the official shall not have been directly involved in the action appealed. Subpart i3—Raaf Property Acquisition f 24.t0t Applicability of acquisition *24.10 Appeals. (a) General. The Agency shall promptly review appeals in accordance with the requirements of applicable law and thie part. (b) Action, which may be appealed Any aaggFlayed 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 away include, but is not limited to, the perm's eligibility for, or the amount 01, a payment required under 134.106 or 124.107. ora relocattoq payment reqsna�wrtartppmshhalilder a wri regardless ofk en:. - (a) General'. The requirements of this subpart apply to any acquisition of real property for a Federal program or project, and to programs and projects where there is Federal financial except ssistace in any part of project costs (1) voluntary transactions that meet all of the following conditions: (1) No specific site or property needs to be acquired. he Agency may Brenn its search for alternative antes to a general geographic area. Where an Agency wishes to purchase more than one site within a geographic area on this basis, all owners are W ba Inated alm1ar� - Federal Register / Vol. 54. No. 40 / Thursday. March 2, 1989 / Rules and Regulations lite property W be acquired is not of an intended. planned. or wanted project area where all or ohstantially all of the property within -td10 area is to be acquired within specific dote limits. (shit The Agency will not acquire the ,property in the event negotiations fail to result in an amicable agreement, and the owner is so informed in writing. (iv) The Agency will inform the owner of what It beeves to be the fair market *slue of the property. (2) Acquisitions for programs or projects undertaken by an agency or person that receives Federal financial assistance but doesnot have authority. veatdome to acquire property by provided that such Agency or person shall: (1) Prior to making an offer for the property. clearly advise the owner that It is unable to acquire the property in the event negotiations fail to result in an amicable agreement; and (ii) Inform the owner of what it believes to be fair market value of the property. (3) The acquisition of real property &cin a Federal agency, State. or State agency. if the Agency desiring to make the purchase does not have authority to acquire the property though condemnation. (4) The aeon of real property by a cooperative from a perion who. as a condition of membership in the cooperative. has agreed to provide without charge any real property that b needed by the cooperative, (b) Less -than -full -fee interest in real property. In addition to fee simple title, 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 terra. including option(a) for extension. to 50 years or more; and to the acquisition of permanent easements. (See Appendix A of this part, li 24.101(b).) (c) Federally -assisted projects. For projects receiving Federal financial assistance. the provisions of 11 24.102. 24.103, 24.104, and 24.105 apply to the :realest extent practicable =der State law. (See f 24.4(a).] fM102 y (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 owner shall be notified of the Agency's interest in acquiring the real property and the basic protections agency'sinchiding the don to secure ; apprgisal, to the owner by law and this part. (See also 24.20'.) (c) Appraisal. waiver thereof. and invitation to owner. (1) Before the initiation of negotiations the real properry to be acquired shall be appraised except as provided in 1 24.102(c)(2), and the owner, or the owner's designated representative, shall be giver: an opportunity to accompany the appraiser during the appraiser's inspection of the property. (2) An appraisal is not required if the owner is donating the property and releases the Agency from this obligation. or the Agency determines that an appraisal is unnecessary because the valuation problem is uncomplicated and the fair market value 1s estimated at $2.500 or less. based on a review of available data. (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 aot be less than the approved appraisal of the fair market value of the property. taking into account the value of allowable damages or benefits to any remaining property. (See also !E 24.104.) Promptly thereafter. the Agency shall make a written offer to the owner to acquire the property for the full amount believed to be just (e) Summary statement. Along with the initial written purchase offer, the owner 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 considered to be part of the real property for which the offer of just complain ...ia made. Where appropriate, the statement shall identify any separately held ownership interest in the property, e.g., a tenant -owned improvement, and indicate that such interest is not covered by the offer, (1) Basic negotiation procedures. The Agency shall inake reasonable efforts to contact the owner or the owner's rwe,.prres�e__nta�iti�ve.,and discuss its offer to Purchase the di. , Iodla the basis for the offer of just compensation: and, explain its acquisition policies and procedure.. including its payment of incidental expenses in accordance with 24.108. The owner ahaU be given reasonable opportunity to consider the offer and present material which the owner believes 1s relevant to determining the value of the property and to suggest modification in the proposed terms and conditions of the purchase. The Agency shall consider the owner's presentation. (g) Updating offer of just compensation. if the information presented by the owner. or a material change in the character or condition of the property. indicates the need for new appraisal information. or if a significant delay has occurred since the time of the appraisals) of the property. the Agency shall have the appraisal(s) updated or obtain a new appraisal(.). If the latest appraisal information indicates that a change in the purchase offer is warranted. the Agency shall pmahptly reestablish Just compensation and offer that amount to the owner is writing. (h) Coercive action. The Agency shall not advance the time of condemnation. or defer negotiations or condemnation or the deposit of finds with the court. or take any other coercive action in order to induce an agreement on the price to be paid for the property. (1) 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 indicates that available information (e.g., appraisals. recent court awards, estimated trial coats, or valuation problems) supporta such a settlement , (j) Payment before taking possession. Before requiring the owner to surrender possession of the realproperty„ the Agency shalipay 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 at the fair market value of such property. or the court award of compensation in the condemnation proceeding for the property. la exceptional circumstances, with the prior approval of the owner. the Agency may obtain,* rlgbtraf-entry foe .1: ,. „ ate Federal Register /Vol: 5I, Na. 40 / Thursday, March z, 1989 • / Rules and Regulations .flab a to an own construction purpose. before making payment ev j (!c) Uneconomic re er. acquisition of only reentrant n of a the property would leave the owner with an uneconomic remnant. the Agency aball e offer lo acquire the uneconomic remnant along with the portion of the needed for the project. (See 4.2twY (I) Inverse condemnation. 11 the } u Agency intends to acquire any interest t in real property by exercise of the power a of eminent domain. It shall Institute formal condemnation proceedings and In not Intentionally make it necessary for p the owner to institute legal proceeds prove the fact of the taking of the real property. (m)Farrnental. If the Agency permits fo� owner or tenant to occupy the ream propertyl after acquisition for a pro pei ty termination by the Od subject to t notice. the rent ��� exonceed short the market rent for such occupancy. ed the fair sPProP commonly accepted professional appraisal are available hen blcto� reliably support the fair market value for the specific appraisal problem ncountered, the Agency, at its discretion, may require oril apgroach. If more than oneyapp market tilfzed, ach la there shall be an analysis and conciliation of approaches to value at are sufficient to support the PPreieer'a opinion of value. (4) A description of comparable Bales, eluding a description of all relevant hysical. legal. and such a partiesto aQssource factors method of fm, and verification by a party involved in the transaction. (5) A statement of the value of the reel to be acquired and. fora partial cqufsttion. a statement of the value of damages and benefits, if any. to the remain reel property, where f 24.103 Crania for to (6) 'The effective date of valuation. f ti the appraiser. end ) Influence of the project on just oomperrsaden. To the extent perm[ applicable law, the apprai1er any decrease or iacreue (a) standards of appraisal. me format ce and level of documentation for oenlifrs apthpraisal � depend an the complexity of ro develop misal inimise standards Y.hall by fior s andead BOconsistent y a�p�� established regard practicepraisal rtu wlo acquisitions arm by ca not require the fa -depth analysis vides or tY. do presentation nerrsaarl► a eppraiaaf, A detailed appraisal�eraued due prepared for all other shall be reason detailed appraisal shall reflect acquisitions. A fel nationally recognised a ff the --.. other than that to physical a erioratfon within the ale control of the owner. Ownerretention of improvements. owner of a real properb vement is permitted tom it for val from the project site. the t to be offered for the interest in real property to be acquired shall be than the difference between the t determined to be just motion far the owner's entire t in the real proper and the age value (defined at 24.2(s)) of hoed improvement Qualifications ofappraisers. The shall establish criteria for termining the minimum qualifications era. Appraiser qualifications consistent with the level of ty of the appraisal assignment Agency shall review the experience, on and other donee of appraises cludiag appraisers, and utilize only those to be qualified. t of interest. No appraiser w aPPralser shall have any direct or indirect to the real being appraised for the Agency uld in any on or reeview f teaapp�sd. tion for maktag an appraisal appraisal fair market value of the real used by the project for which the party i. to be acquired. or by the squired for rot property the would be .hal! not be based on the amotrat valuation. No appraiser shall at as t negotiator for real person has appraised, except that a which the Agency may permit the same the both appraise and negotiate an t acquiaition where the value of the acquisition fa S2.500, or leas. 24.10s Revl.w of appraisals. The Agency shall have an appraisal review process and. at a minimm; (a) A qualified reviewing appraiser shatll examine all appraisals to assure thathey meet applicable appraisal requirements and shall, prior to aca pt seek neoeatery coma (b) if the reviewing appraiser is unable to approval ofana e or Onimend for the es ppr'aiaal as an adequate bails'fabfl bment of the offer of just compensation. and it is determined that notpracticalaL the obtain an additional ,appraiser may develop appraisal docunleatatiaa in 'accord ance with E 24.163 to support an°approved or tted ended value. shall (c) The review appraiser's in certification of the recommended or property p value of the property ehail be set forth that as signed statement which Ideand cuspiaf= the the appraisal far such reviewed recommendation or approval. Any damages or benefitsproperty shall also be identified lin tthe statement ti24-105 11tOn of tenant -owned ° (a) Acquisition of improvements. p dye' wiring say interest in real acquire at leae st a nn Y shall offer to uildings, structures, interest in all improvements a or other 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 improvements shall f a include r who has the right or obligation to remove the lease improvement at the .expiration of the (1) Improvements consldened to be rreal property. er Any building, structure, or consideredtobe ent. 'which world bo by the owner of the p property pe °M d which itis located. shall be considered ,,40 be real Property for purposes of this Subpart. (c) APPsaI and establrihitrerir o �P'�alloafor a standards, Inds to the extent rano appropriate, the Uniform Appraised Standards for Federthe al Land A amour An appraisal must contain sufficientieition. documentation. including valuation data not less and the appraisers analysis of that data, amour to support his or her opinion of value. A comps a minimum, a detailed apli misal shall latera. contain the following items: salt' (1) The purpose and/or the function of th(d� the a prat,appraised, of the estate Agency and a statement of the assumptions and limiting conditions affecting the appraisal. ellen* app els phy) A characteristics description of the all be b arcteristics of the propertye cul sing appraised (and, in the case of ary educed partiala the reen adequate mmaining pre review qualifiers etatement of the known and observed J� a review encumbrances, if any, title information. determined location. ztaing. present use. an (el Canfli analysis of hi gheat•and 6e or reds least a 5 -year sales history and at interest property.•Ori' of the ply' Pre i) Aflrelevant and approaches tovalne reliable. whit m 'preparati Compamm ,• Federal Register / Vol. 54, No. 40 / Thursday, March 2, 1989 / Rules and Regulations t -owned improvement is the amount which the improvement aoatributes to the fair market value of the whole Property or Its salvage value. 'whichever is greater. (Salvage value is defined at 1 Z4.2(eJ.) (d) Special conditions. No payment gall be merle to a tenant -owner for any real property Improvement unless. (1) The tenant -owner. In consideradon for the payment. assigns, transfers, and releases to the Agency all of the tenant - owner's right. title. and interest in the improvement: and (2) The owner of the real Property on which the Improvement is located disclaims all interest in the improvement; and (3J 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 tight to reject payment under this Subpart and to obtain payment for such interests in accordance with oth y applicable law. f 24.103 Expenses Incidental to transfer of tttle to the Agency. (a) The owner of the reel �p y shall be reimbursed for all ole for the owner necessarily insured (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; and (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 R. whichever is earlier. (b) Whenever feasible. the Agency shall pay these costs directly so that the owner will not have to pay such costs and then seek reimbursement from the icy 124.107 CertaN litigation expenses. The owner of the reel 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. IE (e) The final judgment of the court is that the Agency cannot acquire the real property by capadewna or (b) The condemnation proceeding is abandoned by the Agency other than under an agreed-upon settlement: or (c) The court havingurisdiction renders a judgment In favor of the owner in an Inverse condemnation proceeding or the Agency effects a settlement of such proceeding. 124,108 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 ar any part thereof, any Interest therein, or any compensation paid therefor, to the Agency es such owner shall determine, The Agency is responsible for 'sewing that an appraisal of the real property b obtained unless the owner releases the Agency from such obligation, except as provided In f24.102(c)(Z). Subpart 0.-.0tonerat Relocation Reqtdrements 124.201 Purpose. This Subpart prescribes general requirements governing the provision of relocation payments and other relocation assistance in this part. 124.202 Thesceloutl �displaced requirements applyto son persost as defined at 1 Z4.2(g). 1 24.203 Relocation notices (a) General information notices. As soon as feasible, a person scheduled to be displaced shall be furnished with a general written description of the displacing agency's relocation program which does at least the following: (1) Informs the person that he or she may be displaced for the project and generally describes the relocation payment(s) for which the person may be eligible, the basic conditions of eligibility, and the procedures for o (t firms tthethe yment(s). person pe son that he or she will be given reasonable relocation advisory services, including referrals to replacement properties, help hi filing payment calms, and other necessary assistance to help the person successfully relocates. (3) Informs the person that he or she will not be required to move without at least 90 days' advance written notice (8ee 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 hu bean made available. (4) Describes the person's right to appeal the Agency's determination as to 8935 aperson's application for assistance for which a person may be eligible under this part. (b) Notice of relocation eligibility. Eligibility for relocation assistance shall begin on the date of initiation of negotiations (defined in 124.2(k)) for the occupied property. When this occurs. the Agency shall promptly notify all occupants in writing of their eligibility far applicable relocation assistance. (c) Ninety day notice --(1) General. No lawful occupant shall be required to move unless he or she has received at least 90 days advance written notice of the earliest date by which he or she may be required to move. (2) Timing of notice. The displacing agency may issue the notice 90 days before it expects the person to be displaced or earlier. (3) Content of notice. The g0 -day notice shall either state a specific date u the earliest date by which the occupant may be required to move. or state that the occupant will receive e further notice Indicating. at least 30 days in advance, the apedfic date by which he or she must move. If the 90 -day notice is issued before a comparable replacement dwelling is made n}vellable. the notice pruat state clearly that the occupant will not have to move earlier than= days after such adweliing is made available. (See 124:200M (4) Urgent freed In unusual circumstances, an occupant may be required to vacate the property on less than 90 days advance written notice if the displacing agency determines that a g0 -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. 124501 Availability of comparable replacement duelling before*placement. (a) genual. No person to be displaced shall be required to martin= his ar her dwelling unless at least one comparable replacement dwelling (defused at 124.2(d)) has been made available to the person. Where possible. three or more comparable replacement dwellings shall be made available. A comparable replacement dwelling will be considered to have been made available to a person. iE (1) The person Is informed of its locatloc and (2) The person has aufdent time to negotiate and enter Into a purchase agreement or lease fct the property and (3) Subject to reasonable safeguards, the person Is assured of sec lying the FederadR / vol. relocation assistance end acquisition payment to which the entid in sufficient time to complete thentitled purchase or lease of the propeTty. (b) Circumstances permitting waiver. The Federal agency Funding the project may grant a waiver of the policy fn paragraph (a) of this section in any case where it fa demon'. -. must move because of. at a person (1) A major disaster as defined in section 10Z(c) of the Disaster Relief Act of 1974 (42 U.S.C. 5121): or (2) A presidentially declared national emergency; or (3) Another emergency which requires immediate vacation of the real Property,, such as when oontfeued occupancy of the displacement dwelling substantial danger to healconstitutes s safety of the occupants or the public. (cc) Basic conditions of e rnemency more. Whenever a pe. relocate forpore period clod to of en emergency described�betause paragraph (14 of this section, the Agency to (1) Take whatever steps ars neces ure that the Person is temporarily relocated to a decent. safe, and genitor! an dwelling and pocket ( ay ida�l reasonable out -of- th duP reasonabl increase to and of costs incurred in rent utility temporary reloca with the (3) Make available to the displaced addi person as soon as feasible, at least _ ,stab comparable replacement dwelling. (For such purposes of tiling a claim and neeag dng relthe ocaeligibilitytion requirements for a Payment. the date of t displacement is the date th c°� 54,No, do / Thursday, March z 1989 / Rules and Regulations (11 An estimate of the number households to be displaced incl information such as owner/ten status. estimated value and rent of properties to be acquired, fa characteristics, and special consideration of the impacts on minorities. the elderly, a farm and the handicapped when ap (2) An estimate of the numberl� comparable replacement dwellings the area (including price ranges an rental rates) that are expected to available to fulfill the needs of the households displaced. When an adequate supply of comparable is not e h expected to be available. consideration of housing of last actions should be instituted. aidiof assistance. This shall Include a pyo ngt Interview with each person, n rates (1f) Provide current and continuing ally Information on the availability. p prices, and rental costs of comparable replacement dwellings, and ex Ilea. person cannot be required to move cable. aniese at least one comparable of replacement dwelling is made eVailabl as net forth in 1 24.201(4 in d (A) As noon as feasible, the cy be shall inform the person is weans of tthi se specific comparable replacement ddwejfl> i the price or rent used for nus' replacement ous ng r payment of the resee sort cu•� (al end (bj) and the basis far lennination, se that the peraou is the aware and housing payment for which heor snhe cad may qualify. (B) When, feasible. housing shall be inspected prior to being made available to assure that it meetsapplicable ey be standards. (See 1242 ( and (fj,) if ey sucb an inspection is - tit (3) An estimate of the number. and size of the businesses, farms, nonprofit organizations to be dfspla and the approximate number of employee, that may be affected. (4) Consideration of any special relocation advisory services that m necessary anctram the displacing agen (b) Loan other forpl ate' rekrub�e� coosideer the event ing heath/a provision in faction 215 Vafform Act which permits the projecplanning and � cover timed uspreliminary 3q)entes for e develorment theof lfeh criteriahousi and agency use upon the �u Feencd (c) io on assistance the program ervrces—(1) General, The rs' out a relocation assts Agency shall eavlsory program which satires requirements of Tide VI of the Civ! Rights Act of 1064 (42 U.S.C. 2000d et seq.), Title VID of the Civil Rights Act 1988 (42 U.S.C. 3001 et seq.), Executive Order 110532 F and November 24, 1002), ( PR I35e7, services described) dot%p the this section. lithe Paragraph {c)(2) that s peri occupying Agency deerty nes adjacent to thereproperty project is cause snbstaptfal of mic Inlay because of such may offer advisory such person, Maes to be provided The uses, erg! am shall fndnde such ece wary or appropriate In order torces aa y !ermine the relocation needs and emcee of each per to be and explain the relocation is and other aasistanoe for the person may be eligible, the for such requirements, and the type of the maximum reply person to be displaced shall be the that a replacement housing payment that may not be Blade unless the the replacement dwelling V subsequently use safe, eof inspected ��to be k periods s giv Whenever re e will opportunities to relocate to decent, safe. and sanitary replacement dwellings, not r located in an area of min act. concentration, that are within their i nandel means. This policy,, however, does not require an Agency to provide a person ,larger pa -- mover from the tem a Person dwelling.) temporarily -occupied 1 services, end co tionrd attorc planning. advisory �ormeutton. (a) Relocation plunning burins the early stages of development. Federal and Federal -aid programs or shall be !armed in such a projects the problems associated withnlier°'° at displacement of Individu busfneesee. farms. and nonprofitfamines, for the organizations are recognized and (coao solutions are claval a adverse impacts of ed to minimize S the service�a Puling, where epPr,nptl� �maat. Such (Zl Se. 1 precede any action bya sisal] advisory will cause displacement, Agency which mea_ sited to the � and should be be a the anticipated displacing anature of (f) rDa including an evaluation of pial resources available to program dayma ecl and orderly relocations out timely peymen involve a rel Planning may whish which may ltl,de thef Qe study related procedures - an is to a necessary to enable a person to relocate comParable replacement dwelling. of an@han capped s) All persons, hall be offered elderly which lo Inspect housing to Y are referred, Oil) Provide current and continuing of Information on the availability, purchase prices, and rental costs of suitable comm and properties and to from business ot r Ps operationarson displaced old and become established in to suitable replacement location. [ivy hardships to , in a jesting to relocation by providing counsefig. advice ea to other sources of assistance that may be available, and such other help as may be appropriate. vSupply persons to be displaced with Federal State housite ng gppp...on , disaster loan and other programs administered by the Small Business AdministrationSlate programaother P and t Federal Reglstar / Vol. 54. No. 40 / Thursda ced persons. and technical help to ons applying for such assistance. Vie) Any person who occupies acquired by an Agency, when occupancy began subsequent to the acquisition of the property, and the occupancy is permitted by a short term t 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. (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. (Also see f 7.4.6, Subpart A.) !i 2420S Eviction for cause. Eviction for cause must conform to applicable state and local law. Any person who occupies the real property and 4 not in unlawful 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 determine that (a) The person reoeived an eviction notice prior to the initiation of negotiations and, as a result of that notice is inter evicted: or (b) The person is evicted after the initation of negotiations for serious or repeated violation of material terms of the Lease or occupy agreement; and (c) 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 For purposes of determining eligibility for relocation payments, the date of displacement is the date the person moves, or if later. the date s comparable replacement dwelling is made available. This aection applies only to persona who would otherwise have been displaced by the project. f 24.207 General for relocationyments. (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 `Lim for payment. (b) payments. Tha Agway shall review da'ims to es earwax Thecdaimentiihall March 2, 1 be promptly notified ri to any additional documentation that is required to support the claim. payment for a claim shall be made as soon as feasible following receipt of sufficient documentation to support the claim. (c) Advance payments. If a person demonstrates the need for an advance relocation payment in order to avoid or reduce a hardahip, the Agency shall issue the payment. subject to such safeguards as are appropriate to ensure that the objective of the payment is accomplished (d) Trate for filing—Cif All claims for a relocation payment shall be filed with the Agency within 18 months after. (f) For tenants. the date of displacement: (ii) For owners. the date of displacement ar the date of the final payment for the acquisition of the real property. whichever is later. (2) This time period shall be waived by the Agency for good cause. (e) Multiple occupants of one displacement dwelling. If two or more occupants of the displacement dwelling move toseparatereplacement d savable prorateeach dtsu �� to a determined by the Agency, of any relocation payments that would have been made if the oocripants 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. (f) Deductions from relocation payments. An Agency shall deduct the amount of any advance relocation payment from the relocation payment(s) to which a displaced person is otherwise entitled. Similarly, a Federal agency shall. and a State agency may. deduct from relocation payments any rent that the displaced person owes the Agency; provided that no deduction shall be made if it would prevent the displaced person from obtaining a comparable replacement dwelling as required by 24.204. The Agency shall not withhold any part of a relocation payment to a displaced person to satisfy an obligation to any other creditor. (g) Notice of denial of claim. If the Agency disapproves all or part of a payment darned 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 determinade �t and s for appealing / Rules and Regulations 8937 24.201 Relocation payments not considered as Income` No relocation payment received by a displaced person under this part shall be considered es income for the purpose of the Internal Revenue Code of 1954. which has been redesignated as the Internal Revenue Code of 1988 or for the purpose of determining the eligibility or the extent of eligibility of any person for assistance under the Social Security Act ar any other Federal law. except for any Federal law providing low-income housing assistance. Related tor Moving mut !i 24.281 Payment for ached ressocs0le moving and related e moven Any displaced owner -occupant ar tenant of a dwelling who qualifies as a displaced person (defined at 4 24.2(g)) is entitled to payment of his or her actual moving and related expo as the Agency determines to be reasonable and necessary, including expenses far: (a) Trsnspartatlon of the displaced person and personal property. 1 ansportation costs fora distance beyond 50 mile* are not eligible. eldest the Agency determines that relocation beyond S0 mires fa f estified- (b) packing, crating, unpacking. and ancreti ng of the personal property. (c) Disconnecting, dismay removing. reassembling, and reinstalling relocated household appliances, and other personal property. (d) Storage of the personal property for a period not to exceed 12 months. unless the Agency determines that a longer period is necessary. (e) Insurance for the replacement value of the property in connection with the move and necessary storage. (f) 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 in not reasonably aysilable. (g) Other moving -related expenses that are not listed as ineligible under 4 24.305, as the Agency determines to be reasonable and necessary. 24.302 Fixed payment for moving e moven Any person displaced from a dwelling or a seasonal resldence is entitled to receive an expense and dislocation allowance as an alternative to a payment for actual moving and related expenses ander i 24.301. This allow anoe shall be determined according to the applicable schedule approved by the 8938 Federal Register / Vol. 54, No. 40 / Thursday. March 2, 1999 / Rules and Regulations includes a provision that tit Federal Highway Administration. This and dislocation allowance to a poet on with minimal personal poesessioas who is in occupancy of a dormitory style room shared by two or more other unrelated persons or a person whose s residential move la performed by an agency at no cost to the person shall be a limited to 950. moving and 24.303 Payment for actual reasonable P nonresidential moves. ea— m fa fat Eligible costa. Any business or co df operation which quatifees as a P person (defined at 124.2(g)) is fen entitled to payment for such actual si moving and related as the be Agency determines t�sonable fi)g. including expenses for. P Transportation ofpersonal property. Transportation costs for a distance beyond 50 miles are not eligible, unless the Agency determines that relocation beyond 50 miles is justified. (2) parking, crating, unpacking, and uncrating of the personal (3) Disco= dismaot� relocaremovted assern' and reinstalling di other ted maconalry. equipment. and substitute property. including described at 5 24.303(t)(1 This property connection alno to mho es available nearby. personal property modifications to the to the replacement strucnecesture, to adapt it e replacement site, or the utilities at the replacement site, and modifications necessary to adapt the utilities at the replacement site to the personal property. (Expenses for providing utilities from the right-of-way to the building! II Storage m of Othpersoa are excluded.) y for a period not to exceed 12 monthprope', unless the Agency determines that a longer period is necessary. value of the Insurance ec rsfor ona replacement in connection with the move e� n stora and necessary (0) Any license. permit, or certification required of the displaced person at the replacement location. However the payment may be based on the ning useful life of the existing license, per or certification. (7) 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 d e is not reasonably available, f0 (e) !professional services necessary (1) Planning the move of the p Property. (if) Moving the personal prope (iii) Installing the relocated pe property at the replacement Iota (9) Retettertng aligns and repla tationery on hand at the time o displacement that are made obs result of the move. (10) Actual direct loss of tangi ersonal property incurred as a cuing or discontinuing the busin rm operation. The payment eh nsist of the lesser of (1) The fair market value of the r continued use at the diaplacem te, less the proceeds from its sal eligible for payment. the calm listersmalce rtal property, faith effort to et p may, unless the Agee ersonaI rty, and rsonal tion. cingolete as hie result of p eine or all i ent a e. (To ant se ermines that such effort is not necessary. scla a payment for property the fair market value shall ods held for obasedd 0 the cposttn f the sgoods to the business, n n (11) Tbe eetima cost )f moving tbe item, but with no allowance for stens (If rt, the di no start on Peso � to w do ed, the estimated colt shall be (iv) Fees paid to a real estate agent broker to locate a replacement site, exclusive of any fees or commissions related to the purchase of such site. (14) Other moving.related expenses that are not listed as Ineligible under f 24.305, as the Agency determines to b reasonable and necessary. cation and (allowing requireme is apply ton The ayments under this section: (1) The Agency shall inform the displaced requiremenperson, o paragrap�� (2) d {3) of this section as soon as possible iter the initiation of negotiations. This information may be included in the relocation information provided to the splaced person as set forth in (2) The displaced 3- e Agency reasonable pa do mus provide lice of the approximate dateof written f the move or disposition of the al Property and a list of the items be moved. However, sive this notice requirement may curaenting its file accordingly, ) The displaced person must permit Agency to make reasonable and ely inspections of the Property at both the di� lacement sites and to monitor the and ve. efmoves: If the displaced person to take full responsibility for the ve of the business or farm operation. Agency may make a payment for the 's moving expenses in an amount exceed the lower of two table bids or estimates obtained e Agency or prepared by qualified At the Agency's discretion, a ent for a low cost or plicated move may be based on a bid or estimate. Transfer of ownership Upon t and in accordance with We law, the claimant shall r to the Agency ownership of any al property that has not been sold, or traded in. dvertising signs. The amount of a ant for direct loss of an advertising ch is personal property shall be ler of: B endepreciated a d by man cost Agency leas the proceeds from its sale; e business or farm operation is sac the scantinu [ ) The rse on a easonable distance of 50 miles.) tem _asonable coat incurred in aat relocated. to sell an item that Is not to mo ted (12) 'chase of substitute personal elm whiproch ids used as art. If an item fof buefnersonal ss property mo farm operation is not moved but is the promptly replaced with a substitute item not to that performs a comparable function at the replacement site. the displaced accep person is entitled to payment of the by th Miser of stag (1) The cost of the substitute item. ueccom including installation costs at the replacement site, minus any proceeds single from the sale or trade -In of the replaced (d) Rene or segues (ti) The estimated coat of moving lett' applica reinstalling the replaced item but withtreeefe no allowance for storage,, At the Person Agency's discretion, the estimatedmoved t (e) A for a low cost or uncomplicated ve may be based on single bid or paym estimate. sign whi lo(13) a the less �archithgfor replacement displaced business or farm of the sf operation is entitled to reimbursement r expenses, not to exceed Agee fen actual ursem $1,000, as they or reasonable. which are incurred be (2) Th sea n hang for a replacement location. sem, bu dinv (t) T'ranaportatiaa f 24304nonresidential e estimated cost of moving the t with no allowance for storage. Reestablishment expenses— bo e. 1) Meals and lodging away from In In ad Time spent earnings. . don basin under reawbsooprofe dltiom to the payments available 24.393 of tilts subpart. a small , as defined En 24.2fti, farm or tingazdzition may be eligible to Federal Register f Vol. 54. No. 40 f Thursday. March 2, 1989 f Rules and Regulations receive a payment, not to exceed wr $io.000. for expenses actually incurred in relocating and reestablishing such snail business. farm or nonprofit !.` organiratton at a replacement site. (a] Eligible expenses. Reestablishment expenses must be reasonable and necessary, as determined by the Agency. They may 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 tie business. (3) Construction and installation costs, not to exceed 31.500 for exterior signing to advertise the business. (4) Provision of utilities from right-of- way to improvements on the replacement site. (5) Redecoration or replacement of soiled or wom surfaces at the reptaceinent site. such as paint, panelling. or carpeting. (8) Licenses. fees sod permits when not paid as part of moving expenses. (7) Feasibility surveys. sol testing and marketing studies. (8) Advertiaes: t of cement location. not to exceed 31.500. (9) Professional services in connection with the purchase or lease of a replacement site. (10) Estimated increased costs of operation during the first 2 years at the replacement site. not to exceed 35.000. for such items as: (1) Lease ar rental charges. (11) Personal or real property taxes, (iii) Insurance premiums. and (iv) Utility charges. excluding impact fees. (11) Impact feu or one-time assessments for anticipated heavy utility usage. (12) Other items that the Agency considers essential to the reestablishment of the business. (13) Expenses in excess of the regulatory maximums set forth in paragraphs (a) (3). (8) and (10) of this section may be considered eligible if large and legitimate disparities exist between costs of operation at the displacement site and costa of operation at an otherwise similar replacement site.. In such cases the regulatory limitation for reimbursement of such coats may, et the request of the Agency. be waived by the Federal agency funding the program or project but kr no event shall total costs payable . this aecUon exceed the $10.000 statutory maxlmu & (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) Interior or exterior refurbishments at the replacement site which are for aesthetic purposes. except as provided in paragraph (aK5) of this section. (4) Interest on money borrowed to make the move or purchase the replacement property. (5) Payment to a part-time business in the home which does not contribute materially to the household income. 1< 24.30S Insdgtbls moving and related A displaced person is not entitled to payment for. (a) The cost of moving any structure or other real property improvement is which the displaced person reserved ownership. However. this part does not preclude the computation under 124•401(cl(4H 1: ar (b) Interest on a loan to cover moving expenses; or (c) Loss of goodwill; or (d) Loss of prate or (e) Loss of trained employees; or (1) Any additional operating expenses of a business or farm operation incurred because of operating in a new location except as provided in 24.304(a](l0); or (g) Personal injury; or (h) Any legal fee or other cost for preparing a claim for a relocation payment or For representing the claimant before the Agency; or (i) Expenses for searching for a replacement dwelling or (3) Physical changes to the real property at the replacement location of a business or farm operation except as provided in 14 24.303(a)(3) and 1 24,304(0; or (k) Costa for storage of personal property on real property already owned or leased by the displaced person. 1 24.300 Fixed payment for moving expenses--nonrestdantal mows. (a) Business. A displaced business may be eligible to choose a fixed payment in lieu of the payments for actual moving and related expenses. and actual reasonable reestablishment expenses provided by if 24.303 and 24.304. Such -fixed payment, except far 8939 payment to a nonprofit organization, shalt equal the average annual net earnings of the business, as computed in accordance with paragraph (e) of this section. but not less than 31.000 nor more than 320.000. 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 whicb 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; and (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 aol operated at a displacement dwelling solely for the purpose of renting such dwelling to (5) The business is not operated at the displacement site solely for the purpose of renting the sits to others. (g) The business contributed materially to the income of the displaced person during the 2 taxable years prior to displacement (see i 242(3)!. (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: (31 The entities are held out to the public, and to those customarily dealing with them, as one business; and (4) The same person or clasaly related persons own. control. or arangye the affairs of the entities. (c) Farm operation. A displaced farm operation (defined st itt.gin may choose a fixed payment in lien of the payments for actual moving and related expenses and actual ro nrestablishment expeopes. b ag000at equal to ib average amend oat Federal Register / as computed in accordance with paragraph (e) of this section, but no than $1,000 nor more than 1$20.000. case of a partial acquisition of land which was a farm operation before acquisition. the fixed payment shall made only if the Agency determines that: (1) The uisition caused the opera or to be displacart of ed 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 520.000. to lieu of the payments for actual moving and related expenses actual reasonable reestablishment expenses, if the Agency determines it cannot be relocated without a substantial loss of existing patronage (membership or clientele). A nonprofi organization is assumed to meet this test. unless the Agency demonstrates otherwise. Any payment in excess of *1,000 must be supported with financl statements for the two 12 -month peri prior to the ac ulaition. The amount to befor erag of 2 years annual payment r it the avleu Moss revenues leu A expenses. (See Appendix (e1 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 bueineee or farm was not in operation for the full 2 taxable years prior to displacement, net earnings shall be based on the actual period of operation at the displacement site during the 2 taxable years prior to displacement, projected to an annual rate. Average annual net earnings may be based igen n different period of time when the 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. p =ayments. 4.30Discretionary u tlonetl8ty ►stocatton (a) Whenever a program or project undertaken by a displacing agency causes the relocation of a utility facility (see if 243 (sal and (bb)) end the Vol. 54. No. 40 / Thursday. March 2, 1989 relocation of the facility creates t Iess extraordinary expenses for its owner. In the the displacing agency may, at its option, make a relocation payment to the owner the for all or part of such expenses, if the be following criteria are met: (1) The utility facility legally occupies and State or local government property, or property over which the State or local government has an easement or right-of- way; and (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 andoccupancy fo / Rules and Regulations Subpart E— m Replaceent Housing Payments 124.401 Replacement housing payment for 180 -day homeowner (a) Eligibility. A displaced person is eligible for the replacement housing payment for a 180 -day homeowner_ occupant if the person: (1) Has actually owned and occupied the displacement dwelling for not less than 180 days immediately prior to the vitiation of negotiations; and (2) Purchases and occupies a decent, afe. and sanitary replacement dwelling within one year after the later of the !lowing dates (except that the Agency �y extend such one year period for ood cause): (1) The date the person receives final r,aing 3 in the case of coent for the n emnation. thelacement datee full amount of the estimate of just mpensation is deposited in the court. (ii) The dale the displacing agency's ligation under 1 24.204 is met. (b) Amount of payment. The Iacement housing payment for an eligible 180 -day homeowner -occupant not exceed 922.500. (See also 24.404.) The payment under this art is limited to the amount ecessary to relocate to a comparable lacement dwelling within one year m the date the displaced homeowner- cupant is paid for the displacement ening, or the date a comparable lecement dwelling is made available uch person. whichever is later. The yment shall be the sum of: ) The amount by which the coat of a acement dwelling exceeds the uleition cost of the displacement !ling. as determined in accordance para aph f this tion: and 2) The iinncrreasedinterest costs cost andr debt service costs which are rred in connection with the rtgage(s) on the replacement !ling, as determined in accordance paragraph (d) of this section; and The reasonable expenses ental to the purchase of the cement dwelling, as determined In !dance with paragraph (e) of this on. Price differential—{1) Basic lotion. The price differentia! to be under paragraph (b)(1) of this on is the amount which must be d to the acquisition cost of the acro ement dwelling to provide a total Dunt equal to the lesser of: The reasonable cost of a arable replacement dwelling as ermined in accordance with 403(a); or permit. or other similar agreement; and m and (a1 Relocation of the utility facility is g that required by and is inddental to the p primary purpose of the project or 0 program undertaken by the displacing illt agency; end co (4) There is no Federal law, other than or the Uniform Act. which clearly establishes a policy for the payment of ob al utility moving costs that is applicable to ode the displacing agency's program or rep project and e (5) State or local government aoay reimbursement for utility moving casts 1 or payment of such costs by the P displacing agency is in accordance with re fro State law. (b) For the purposes of this section, oc the term "extraordinary expenses" dw means those expenses which. in the rep opinion of the displacing agency. are not to a routine or predictable expenses relating pa to the utility's occupancy of rights -of (1 way, and are not ordinarily budgeted as rept operating expenses, unless the owner of acq the utility facility has explicitly and dwe knowinglyagreed eed to bear such expenses with as a condition for use of the property, or has voluntarily agreed to be responsible *the for such expenses, incu (c) A relocation payment to a utility ma facility owner for moving costa under dwe this section may not exceed the cost to with functionally restore the service . (3) disrupted by the federally assisted incid program or project. lees any increase in recta value of the new facility and salvage Boca value of the old facility. The displacing sects agency and the utility facility owner shall reach prior agreement an the compaido nature of the utility relocation work to sects be accomplished, the eligibility of the adde work for reimbursement, the disci responsibilities for financing and am accomplfehing the work, and the method (1) of accumulating costs and making comp payment (See Appy A. ofis part, 120074 t dei 124. Federal Register / Vol. 54, No. 40 / Thursday, March 2, 1989 / Rules and Regulatioua ft) The purchase price of the decent. e. and sanitary replacement dwelling actually purchased and occupied by the displaced person. (2) Mixed•use and multifamily properties. If the displacement dwelling was part of a property that contained another dwelling unit and/or space used. for non-residential purposes, and/or is located on a lot larger than typical for residential purposes, only that portion of the acquisition payment which is actually attributable to the displacement dwelling shall be considered its acquisition cost when computing the price dlfferentiaL (3) Insurance proceeds. To the extent necessary to avoid duplicate . compensation. the amount of any insurance proceeds received bye person in connection with a toes to the displacement dwelling due to a catastrophic occurrence (fire, flood, ate.) shall be included in the acquisition cost of the displacement dwelling when computing the price differential. (Also see 24.3.) (41 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 (1) The cost of moving and restoring the dwelling to a condition comparable to that prior to the move; and pi) The cost amazing the unit a decent. safe, and sanitary replacement dwelling (defined at ; 24� and (iii) The current fair m value for residential use of the replacement site (see Appendix A of this part, fi 24•401(4(41(ff, unless the claimant rented the displacement afte and there is a reasonable opportunity for the claimant to rent a suitable replacement site; and (he) 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 coats. The diapladng agency shall determine the factors to be used in computing the amount to be paid to a displaced person under paragraph (b)(Z) 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 amortised with the same monthly payment for principal and interest as that for the mortgeagge(s) on the displacement dwelling. In addition. payments shall include other debt service costa, 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 balances) on the displacement dwelling however. In the event the person obtains a smaller mortgage than the mortgage balance(s) computed in the buydown determination the payment will be prorated end reduced accordingly. (See Appendix A of this part.) In the case of a hoose equity loan the unpaid balance shall be that balance which existed 180 days prior to the initiation of negotiations or the balance on the date of acquisition. whichever 1s less. (2) The payment shall he based on the remaining term of the mortgage(.) on the displacement dwelling or the term oldie 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 bycharged lending institutions In the areIn b1th 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 (1) They are not paid as incidental expenses; (ii) They do not exceed rates normal to similar real estate transactions in the area; (11i) 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 far the reduction of such 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 ea the fads relative to the person's current mortgage (s) are )crown 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 u Intended. (e) Incidental expenses. The incidental expenses to be paid under paragraph (b)(3) of this section or E 24.402(c)(1) are those necessary and reasonable costa actually incurred by the displaced person incident to the 8941 purchase of a replacement dwelling. and customarily paid by the buyer, including: (1) Legal. closing, and related costs. including those for title search. preparng 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) Certificatloa of structural soundness and termite Inspection when required. (5) Credit report (61 Owner's and mortgagee's evidence of title, e.g.. title insurance, not to exceed the costa for a comparable replacement dwelling. (7) Escrow agent's fee. (8) State revenue ar documentary stamps, sales or transfer taxes (not to exceed the costs for a comparable replacement dwelling). (8) Such other costs as the Agency determines to be incidental to the purchase. (f) Rental assistance payment for 16a day homeowner. A 18Oday 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 not to exceed 55.250, competed and disbursed in accordance with 1124.402(6}. 1 24.402 Replacement housing for 90 -day occupants payment (a) Eligibility. A tenant or owner- occupant wneroccupant displaced from a dwelling is entitled to a payment not to exceed 15,250 for rental assistance, es computed In accordance with paragraph (b) of this section. or downpayment assistance, es computed in accordance with paragraph (c) of this section. if ouch diapleced person: (1) Hes actually and lawfully occupied the displacement dwelling for at least 90 days immediately prior to the initiation of negotiation., and (2) Has rented or purchased. and occupied a decent. safe. and sanitary replacement dwelling within 1 year (unless the Agency extends this period for good cause) after. (1) For a tenant, the data he or she moves from the displacement dwelling, Of of: (11) For an owner -occupant. the later (A) The date he ar ebe receives final payment for the displacement dwelling or In the case of condemnation, the date Federal Register / vol. 54. No. 40 / Thursday. March z, MN the full amowat of the compensation is estimate of just co court; nodeposited with the (B) The date he or ehe moves from the displacement dwelling. (b) Rental assistance poymenl— (1) Amount of payment An eligible displaced person who rents a replacement dwelling is entitled to a payment not to exceed $5.250 for rental assistance. (See also 124.404.] Such payment shall be 42 times the amount obtained by subtracting the base monthly rental for the displacement dwelling from the lesser ai: (i) The monthly rent and estimated downpay hent 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 discretion of the Agency, a downpayment assistance payment may be increased to any amount not to exceed $5.250. However. the payment to a displaced homeowner shall nal exceed th- g / Rules and Regulations dwelling for purposes of computing -the replacement housing payment. (4) To the extent feasible. comparable replacement dwellings shall be selected from the neighborhood in which the displacement dwelling was located or, if that is not possible, in nearby or similar neighborhoods where housing costa are enerally the same or higher. (b) Inspection of replacement dwelling. Before making a replacement ousing payment or releasing a payment from escrow. the Agency or its rgnated representative shall inspect re reeplacement dwelling and determine whether it is a decent, safe. and sanitary dwelling as defined et f 24.2(1). sanitary Purchase of replacement dwelling. displaced person is considered to ve met the requirement to purchase a lacement dwellfap, if the person; (1) Purchases a dwelling or (2) Purrhaaes and rehabilitates e substandard dwelling or (3) Relocates a dwelling which he or e owns or purchases; ar (4) Construes a dwelling on a site he she owns or purchaser'; or 5) Contracts for the purchase or =Unction of a dwelling oa a site by a builder or an a site the person owns or purchase,. {B) Currently owns a previously urrbaaed dwelling and site, valuation of hich shall be on the basis of current market value. ) Occupancy requr'ruments for PCrsonent ar sball pedant dwelling. acement how ��ti�` for fug payment solely emcee the person is unable to meet the pancy requirements set forth in sea ragulatfane fora beyond ar her contrd, lm disaster, an emergency, or an ent threat to the public health or [fare, as determined by the President. eral agency funding the project. e displacing agency, or Another reason. such as a delay in construction of the replacement te[ stay, as dei wed bybythe military or Conversion Of ant A cad person who lniiially rents e reptacement dwelling and receives a assistance payment under z4.40*j Is eligible to receive a t carder f 24.401 or f 24.402(c) if she meets the eligibility criteria for payments. Including purchase and cy within the preecribed,i•year Any portion of the rental tames gayment that hes been stall be deducted f the omputeduttda .124.401 ar the owner would receive under amount 24.401(b) if he or ehe met the 180 -day h occupancy requirement. An Agency's discretion to provide the maximum; payment shall be exercised in a uniform dee d consistent manner, so that eligible splaced persons in like circumstances are treated equally. A displaced person eligible to receive a payment as a 1s0- A day owner ant under f 24.401(a) i not eligible for is payment, (See ala Appendix A of this part. f 24.402(c),1 (2) Application of payment. The ful amount of the replacement housing payment for downpayment assistan must be applied to the purchase price the replacement dwelling and related incidental expenses. average monthly cost of utilities for a dig comparable replacement dwelling; or (it) The monthly rent and estimated average monthly cost of utilities far the decent, safe. and sanitary replacement dwelling actually occupied by the displaced person. (2) Base monthly rental for displacement dwelling. The base monthly rental for the displacement dwelling is the lesser of: (1) me average monthly cost for rent and utilities at the displacement a rep ce of eh or co( provided of welling for a reasonable period prior to 12 displacement, as determined by the Agency. fairirmarkett renor an tffarpaht. nse displacement dwellin For a tenant itleaep1 & who paid little or a 4.403 Additional ruts* goye1 replacement housing payments. {a) Determining oast of comparable acemeat dwelling. The upper limit replacement rent for the displacement dwelling, use the fair market rent, unless its use would remit in a hardship because of the person's income or other circumstances); or (ii) Thirty (30) percent of the person's average gross household income. (If the person refuses to provide appropriate evidence of income or is a dependent. the base monthly rental shall be established solely on the criteria in paragraph (b)(23(1) of this section. A full time student arreeident of an Institution may be assumed to be a dependent. unless the pereon demonstrates otherwise.k or (iii) The total of the amounts designated for shelter and utilities if receiving a welfare accidence payment from �e program that designates the amounts for shelter and utilities. (3) Manner of disbursement A rental assistance payment may. et the Agency's be disbursed in either a isenp sum or in installments. However, except as limited by f 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 howling (c) Downpayarentassistance poyareal—(li Amount oaaf w payment. An a replacement payment shall be based an the coat of a comparable replacement dwelling (defined at o w 1 24.2(d)). fair, (1r' If available, at least three (d comparable replacement dwellings shall displacem be examined and the payment computed No on the basis of the dwelling most nearly a red representative of, and equal to, ar better b than. the displacement dwelling. An occu adjustment shall be made to the asking the price of any dwelling, to the extent his justified by local market data (see also (1) A 124.205(a)(2) and Appendix A of this immin part). An obviously overpriced dwelling we may be ignored. the F(2) If the site of the ed th replacement dwelling lacksamaj r e or 2) exterior attribute of the j° {xl dwelling site, (e.g.. the site is lacemettt the significaatjy smaller. or does not contain howle attributetilbr'� subtracted from the la acquisition cost of the dieplacement the value dear* �� dpa for purposes of computing the (3) If the acquisition of a rents! typical residential parties the causes a I displacement of the owner fmm the �en dwelling and the remainder is a or buildable residential lot, the Agency such may offer to purchase the entire peen property. If the owner refuses to sell the anis remainder to the Agency. t fair market disbursed value of the remainder may be added to the acquisition cost tithe displacement 124. payment Federal Register / Vol. 54. No. 40 / Thursday, March 2. 1989 / Rules and Regulations. payment after death. A lepincement housing payment is personal to the displaced person and ;poll his or her death the undisbursed on of any such payment shall not paid to the heirs or aniline, except dist: 1 The amount attributable to the displaced person's period of actual occupancy of the replacement housing shall be paid. (21 The full payment shall be disbursed in any case in which a member of a displaced family dies and the other family members) continue to occupy a decent. safe, and sanitary replacement dwelling. (31 Any portion of a replacement houskrag 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. j 24.404 Replacement housing of last resort. (a) Determination to provide replacement housing of last resort Whenever a program or project cannot proceed an a timely basis because comparable replacement dwellings are not available within the monetary limits for owners or tenants, as specified in 1 24.401 or * 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 bast, 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; end (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; and (ii) A program or project cannot be advanced to completion to 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. (Will project delay jus► vatting for less expentive comparable replacement housing to become evadable?) (b) Basic rights of persons to be displaced. Notwithstanding any provision of this subpart, no person shall be required to move from a displacement dwelling unless comparable replacement housing is available to such person. No person may be deprived of any rights the person may have under the Uniform Act or this part. The Agency shall not require any displaced person to accept a dwelling provided by the Agency under these procedures (unless the Agency and the displaced person have entered into a contract to do so) in lieu of any acquisition payment or any relocation payment for which the person may otherwise be eligible, (c) Methods ofproviding 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 ! 24.401 or ll 24.402. A rental assistance subsidy under this section may be provided in installments or in a lump sum at the Agency's discretion. (h) Rehabilitation of and/or additions to an exlstfng 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 Lf necessary, rehabilitation of a dwelling. (vi) The purchase of land and/or a replacement dwelling by the displacing agency and subsequent sale or lease to, or exchange with a displaced person. (vii) The removal of barriers to the handicapped. (viii) The change in status of the displaced person with his or her concurrence from tenant to homeowner when it 6 more cost effective to do so, as in cases where a downpayment may be less expensive than a last resort rental assistance payment (2) Under spedal 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 Appendixw,.of this part, i 24.4041 894.4 including upgraded but smaller replacement housing that is decent. safe, and sanitary and adequate to accommodate individuals or families displaced from marginal or substandard batwing with probable functional obsolesenca. In no event. however, shall a displaced person be required to move into a dwelling that is not functionally equivalent in accordance with 1 24.2(d)(2). (3) The agency shall provide assistance under this subpart to a displaced person who is not eligible to receive a replacement housing payment under II 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 person's financial means, which is 30 percent of the person's gross monthly household income. Such assistance shall cover a period of 42 months. Subpart F—Ntobile Homes ! 24.501 Apppcsbalq►. This subpart describes the requirements governing the provision of relocation payments boa 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 k entitled to a moving expense payment is accordance with Subpart D and a replacement housing payment in accordance with Subpart E to the same extent and subject to the same requirements as persons displaced from conventional dwellings. 124.502 Moving and related etpenses— moblle tomos. (a) A homeowner -occupant displaced from a mobile home or mobile homeaite is entitled to a payment for the cost of moving his or her mobile home on an actual cost basis in accordance with ! 24.301. A non -occupant owner of a rented mobile home le eligible for actual cost reimbursement under; 24.903. However, if the mobile home is not acquired. but the homeowner -occupant obtains a replacement housing payment under one of the circumstances described at i 24.503(a)(3), the owner is not eligible for payment for moving the mobile home, but may be eligible for a payment for moving personA property from the mobile home. (b] The following rules apply to payments for actual moving expenses under E 24.301: (1) A displaced mobile homeowner, who moves the mobile home to a Federal Resist / VoL 34, No. 40 / Thursday. 8Y• Marne Z. iggg / Rules and Regulatforfa replacement site. is eligible for the reasonable most of dfsaaaembat moving, and reasseumling any attached appurtenances, such as porches, docks. skirting, and awnings, which were not acquired, anchoring of the unit and utility 'hook-up" (2) If a mobile �r,ee rs and/or modifications so that it can be e moved and/or made decant, safe, and sanitary. and the Agency determines that ft would be economically feasible to incur the addiliooal expense. the reasonable cost of such repairs sand/or modifications is telmbursable. (31 Anonreturnable mobile home park entrance fee is reimbursable to the extent it does not exceed the fee at a comparable neobile home park. If the moa is emplaced from a mobile home park or the Agency determines that payment of the fee is necessary to effect rdocatiot:. f 24.503 P housing payment for teaser eiobae homeowner -occupants. (a) A displaced owner -occupant of mobile home is entitled to a replace housing payment not to exoeed x,500, under f ZE401 if: (1) The person both owned the displacement mobile home and occupi it on the displacement site far at heat 190 days immediately prior to the initiation of negotiations; (2) The person meets the other basic eligibility requirements at 1.24.4014); (3) The Agency acquires the mobile home and/or mobile home site, or the mobile home is not acquired by the Agency but the owner io displaced from the mobile home because the Agency determines that the mobile home: (1) is not and cannot aconomirally be made decent safe, and sanitary; or (ii) Cannot be relocated without substantial damage ar unreasonable Wilt or (iii) Cannot be relocated because there is no available comparable replacement site; or (iv) Cannot be relocated because it does notmeet mobile home park entrance requirements. (b) If the mobile home is not acquired. and the Agency determines that itis no practical to relocate it. the acquisition cost of the diisplacement dwelling used when computing the price differential amount. described at Z4.401(c), shall include the salvage value ar trade-in value of the mobile home. whkhever higher. 1 24.504 Skplootorsord for 9O -day mobs home o meta sail A dtsplaaedlanai&aroasm` ocoqsant of a mobbile home is sage& for a replacement housing payment, not to exceed $5,250, under 1 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 negodatione (b) 'the person meets the other basic eability requirements at 1 24.402(aj (c) The Agency acquires the mobile home and/or mobile borne site, or the mobile home is not acquired by the Agency bet the owner or tenant is displaced from the mobile home because of one of the circumstances &seedbed at 1 24.5034)(31. 24.905 Addldond nMs ryy relocsdon payments to ambits borne (a) Replacement housing payment based on dwelling and Sita Bo but the occupant is considered-displ aced wider this part. the "initiation of negotiations" is the initiation of negotiations to acquire the land. or. if the land is not acquired, the written notiffcallon that he or she is a displaces person under this part. (d) Person mores mobile home: If the owner he reimbursed for the cost of bile home under this he oomoving hthetnoteeligible to receives a Pert' replacement housing payment to assist purchasizegor rang a replacement mobile home. The parson may. however, be eligible for esaistance in pub sing or renting a replacementsite. (el Partial acquisition of anode borne park The inquisition of a pennon of e mobile home remaining p� of the property property cosy lasso a pt+iiperty that isadequate to ou he Agency determi mobile horse and continuet e operation of be mobile home site mat a mobile homelocated in nes that lacement when computing a part of the property remaining using Payment Far �•�-- a example, a displaced mobile home meat occupant may have awned the displacement mobile home and rented site or may have the displacement home and owned ed the site. Also. a: person ect to purchasea mode home and rent teP mobile home.replacementsite, or rent a a replacement site. In such cases. nd mus° total replacement ho the ent shall consist of a payment for aalling and e payment for a site. each computed under the applicable section in Subpart E. However. the total housing payment under Subpar shall not exceed the meaimum payment (either $22,500 or $5.250) permitted under the section that governs the computation for the dwelling. (See also f 24.403(b).) (b) Cost of comparable replacement dwellill) If a comparable replacement mobile home is not available. the replacement housing payment shall be computed on the basis of the reasonable cost of a conventional comparable replacement dwelling. (2) If the Agency determines that it would be practical to relocate the t mobile home, but the owner -occupant elects not to do so. the Agency may determine that forpurpoep of computing the price differential under f 24.401(c), the cost of comparable replacement dwelling is the sum oh (i) The valise of the mobile home, (i) The cost of any necessary repairs or modifications, anis (iii) The estimated coat of moving the mobile home to a replecemco{ site. (c) initiation of rregoUdtjrnm fftbe mobile Waite honor aemelly,eogidreet must be moved as a result of the project. the owner and any tenant shalt be considered e relocation displaced person who is entitled to assistance payments tand then Subpart Q --Gnat !cation This subpart pita a State Agency to fulfill its Uniform Act sboneibjHtiea under the It shall in accordance that Jaws and regulations winch shall accompliah the purse and effect of the Uniform Act in of providing the assurances 1equired by 1 24.4 of this part. 124.902 Certification application. (a) General. (1) The State governor. or his or her designee, on behalf of any State agency or agendas may apply far certification in accordance with this section. (2) The governor may designate a lead agency to administer ca#dicatioa in accordance with this section. (b) Responsibilities of &ate agency -- (1) The State agency's application shall be submitted to the governor or his or Buie, For algal at pprovaL (2) The Stale agency application shall contain a statement that the State agency shall carry out the responsibilities imposed b7 the Uniform Act. The State agency application shall include a copy of the State leas and regulations which shalt accomplish the purpose and effect of the Uniform Act. (c) Reuporm'bifeter ofjovaraor or lila other designee: (T) The governor: or his ar her designee. shall approve cr Federal Register / Vol. 54. No. 40 / Thursday, Mer i 2, 1980 / Rules and Regulations disapprove the State agency's application. (2) The governor. or his or her designee, shall have discretion to disapprove any State agency application (3) The governor. or his or her designee, shall analyze State law and regulations and shall certify that they accomplish the purpose and effect of the Uniform Act. (4) The governor. or his or her designee. shall determine in writing whether the State agency's professional staffing is adequate to fully implement the State kw and regulations. (5) If the State agency's application is approved by the governor. or Eris or her designee. it shall be transmitted to the Federal agency providing financial assistance to the State agency. with an . information copy to the Federal aileacY• (6) When a determination is received from the Federal funding agency. the governor. or his or her designee. shad notify the State agency (di Responsibilities ojFedeml funding agency. (1) The Federal funding agency shall accept the approved epplicatian for cerlificatioa provided by the governor or his or her designee and shall not conduct an independent review unless or until fhture monitoring ar other appropriate indicators reveal pew= deficiencies therefrom. (2) The Federal funagency shall transmit all complete, approvedapplications, for certification to tha Federal lead agency. (3) At the same time as transmission to the Federal Lead agency or during the public comment period, the Federal funding agency shalt provide to the lead agency its written assessment of the State agency's capabilities to operate under certification. (4) The Federal funding agency shall promptly notify the governor, or his or her designee, of the Federal lead agency's determination described in paragraph (e 2) of this section. (5) The Fe&ral funding agency shall recognize the State agency's certification within 30 days of the Federal lead aagg (e) Res abilities ofof F� ! lead agency- (1) The lead agency sheik (1) Accept the approval provided by the governor. or bis ar her designee, and shall not conduct an independent review, except as provided for is Paragraphs (e)(1)(11). (iii) and (iv) of this section. unless future monitoring or other appropriate indicators reveal origirutting herefrnrmogram deficiencies (11) Analyze the extant to which the provisions dike applicable State laws end regulations accomplish the purpose and effect of the Uniform Act, with particular emphasis on the definition of a displaced person, the categories of assistance required. and the keels of assistance provided to persons in such categories; (iii) Provide a 60 -day period of public review and comment, and solicit and consider the views of interested general purpose local governments within the State. as well as the views of interested Federal and State agencies and consider all comments received as a result and (iv) Consider any extraordinary information it believes to be relevant. (2) After considering all the information provided. the lead agency shall either make a finding that the State agency will carry out the Federal agency's Uniform Act responsibility in accordance with State taws and regulations which shall accomplish the same purpose and effect as the Uniform Act. or shall make a determination that informa finding cannot be made: and Federal funding agency. s° f 24.503 Yoeft iing and corrective scrim (aThe shall. coordination at Federal agency in agencies, monitor from time to time programs or projects State agency impletaentatioo of wideroertificatr and State the ion agency shall make available any information required far this purpose. (b) A Federal agency that has accepted a State Agency'. certification pursuant to this subpart should withhold its approval of any of its Federal financial assistance to any prefect. program, or activity, in progress or to be undertaken by suds State agency, if it is found by the Federal agency that the State agency has failed to comply with the applicable State lav and regalations implementing those previsions of the Uniform Act for which the State agency would otherwise have provided the assurances required by sections 210 and 305 of the Uniform Act. The Federal agency may withhold Federal financial assistance if the certifying State fails to comply with the applicable State law and regulations impkmenting other provisions of the Uniform Act The Federal agency shall the lead agency atldays decision to ~withhold funds under this subpart. The lead agency may consult with the Federal agency upon receiving such notification. The lead agency will also inform other Federal erodes which have accepted certification ander this subpart from !ha seine State agency of the pending actkeL after consultation Federal the eaddaagency. and 091.5 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 shalt initiate consultation with the feed agency at least 30 days prior to any decision to rescind approval of e certification under this subpart. The lead agency will also inform other Federal agencies which have accepted a certification under this . u,;a ,,rt from the whaState egency. and will take tever other action that may be appropriate. (d) Section 103(b)(21 of the Uniform Act as amended, requires that the head 'tithe lead agency report biennially to the Congress an State agency implementation of section 103. To enable adequate preparation of the prescribed biennial report, the lead agency may require periodic Information or date from affected Federal or State Appendix AAtoPast 24—Additional This appendix provides additional information to explain the latent of certain provisions of tide part. Subpart A --General Section 2tf2 Definitions Section 24.20X2) Definition of comparable rgpiacemeont dwell The requirement in 124.21d)(2) that a aomparabk replacement dwelling be displacement dw ant" toa the elfin$ means that It must perform the same function, provide the same utility. and be capable of contributing to a comparable style of living as the displacement dwelling. While it need not possess every feature of the displacement dwelling the principal features must be preaeut. For example, if the displacement dwelling contains a pastry 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 sabstitate far basement workshop apace. A dining may substituteefarseparatedi area Under sante circumstances, attic space could snbbstitnts for basement space for storage purposes, and vice versa. Only in cnusual circumstances may a comparable replacement dwelling contain fewer rooms or, consequentially. lesa bring space than die displacement dwelling. Beth way deeest, safe, s�lt�replacement 8946 Federal Register / Vo dwelling (which by definition is "adequate to accommodate" the displaced person) may be found to be "functionally equivalent" to a larger bu very run-down substandard displacement dwelling. Section 24.2(d)(7) 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. A public housing unit may qualify as comparable replacement dwelling only for a person displaced from a public housing unit: a privately.owned dwelling with a housing program subsidy tied to the unit may qualify as a comparable replacement dwelling only for a person displaced free a similarly subsidized unit or public housing; a housing program subsidy to a person (not tied to the building). such as a HU Section 8 Existing Horning Program Certificate or a Housing Voucher, may be reflected in an offer of a comparable replacement dwelling to a person receiving a similar subsidy or occupying a privately -owned subsidized unit or public housing unit before displacement. However. nothing in this part prohibits an Agency from offering, or preludes a person from accepting. assistance under a government housing program. even if the person did not receive similar assistance before displacement. However, the Agency is obligated to inform the person of his or her options under this part (If a person accepts assistance under a government housing program, the rental assistance payment under f 24.402 would be computed on the basis of the person's actual out-of-pocket coat for thq replacement housing.) Section 24.2(81(2) Persons not displaced. Section 24.2(g)(2)(iv) recognizes that there are circumstances where the acquisition of real property takes place without the intent or necessity that an occupant of the property be permanently displaced. Because such occupants are not considered "displaced persons" under this part. great care must be ensure that they are treated far irly send to equitably. For example, if the tenant - occupant de dwelling will not be displaced. but is required to relocate temporarily In connection with the project. the temporarily -occupied housing must be decent. safe, and sanitary and the tenant must be refmbwsed for all reasonable out-of- pocket expenses incurred in connection with the temporary relocation. inducting 1. 54, No. 40 / Thursday. March 2, 1989 / Rules and Regulations movingems end increased housing cos during the temporary relocation. It Is also noted that any person who t disagrees with the Agency's determination that he or she is not a displaced person under this part may file an appeal in accordance with 1 24.10. Section 24.2(7) Initiation of negotiations. This section of the part: provides a special definition for acquisitions and displacements under Pub. 4 98-5io or Superfund. 'Reese a activities differ under Superfund in that relocation may precede acquisition, the reverse of the normal sequence. Superfund is a program designed to dean up hazardous waste sites. When such a site is discovered, it may be necessary, in certain limited circumstances, to alert the public to the danger and to the advisability of immediately. If a decision is made later to permanently relocate such persona. those who bad moved earlier would no longer be on site when a formal, written offer to acquire the property was made and thus would lose their eligibility for a replacement bonging payment In order to prevent this unfair outcome. we have provided a definition which is based on the public health advisory or announcement of permanent relocation. Section 24.3 No Duplication of Payments This section prohibits an Agency from malting a payment to a person wider these regulations that would duplicate another payment the person receives under Federal. State, or Local Law. The Agency is not repaired 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 under these regulations is computed. Section 24.9 Recordkeeprng and Reports Section 24.9(c) Reports. This paragraph allows Federal agencies to require the submission of a reporton activities wider the Uniform Act no mare frequently than once every three years. The report. if required. will cover activities during the Federal fiscal year immediately prior to the submission hat date. In order to minimize the administrative burden on Agencies implementing this part„ a basic report p farm (see Appendix B of this part) has p been developed which. with only minor e modifications, would be used in all ma Fedet'al and federally -assisted programs • or pip,„ Subpart B—Real Property Acquisition Section 24.101 Applicability of Acquisition Requirements Section 24.10x(6) Less -than -full -fee interest in real property. 'Phis provision provides a benchmark beyond which the requirements of the subpart clearly apply to leases. However, the Agency may apply the regulations to any lees - than -full -fee acquisition which is short of Sq years but which in its judgment should be covered. Section 24.102 Basic Acquisition Policies Section 24102(d) Establishment of offer of just compensation. The initial offer to the property o 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) Bosic•negatiation procedures. It is intended that an offer to an owner be adequately presented and that the owner be properly informed. Personal. face-to-face contact should take place. if feasible, but this section is not intended to require such contact in all cases. Section 24.102(1) Administrative settlement. This section provides guidance on administrative settlement ae an alternative to judicial resolution of a difference of opinion on the value of a property, in order to avoid unnecessary litigation and congestion in the courts. All relevant facts and circumstances should be considered by an Agency official delegated this authority. Appraisers. including reviewing aadjust their estimate besers. must not pressured f r the purpose of justifying such settlements. Such action would invalidate the appraisal process. Section 24.102()) 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 fs agreeable to the process. Section 2f 102(m) Fair rental. Section 301(8) of the Uniform Act Iimita e when a ormer ownereror previous occupant of e roperty is permitted to rent the roperty for a short tetra or when occupancy 4 subject to termination by sib Agency on short notice. Such rent y not exceed "the fair rental value • • to a short -tans occupier." Generally. the Agency's eight to Federal Register / Vol. 54, No. 40 j Thursday, Marek 2. 1999 / Rules and Regulations 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 24.103 Criteria for Appraisals Section 24.103(a) Standards of appraisal. In paragraph (s)(3) of this section. It is intended that all relevant and reliable approaches to value be utilized. However, where an Agency determines that the market approach will be adequate by Itself because ee of the type of property being appraised and the availability of sales data. it may limit the appraisal assignment to the market approach.Sectian 24.103(ib) influence of the project on just compensation. As used in this section, the tenn "project' is intended to mean an nadertaldng which is planned. designed and intended to operate as a unit Because of the public knowledge of the proposed project. property values may be affected. Aprops owner 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 seated by the proposed project. Section 24.103(e) Can/licit( interest The overall objective is to odnlmixe the risk of fraud and 11115018nagement and to promote public confidence in Federal and federally -assisted lend acquisition practices. Recognising that the costs may outweigh the benefits fn some circumstances. 1 24.103(e) provides that the same person may both appraise and negotiate an acquisition, if the value is 51500 or less. However. it should be noted that all appraisals must be reviewed in accordance with 124.104. This includes appraisals of real property valued at 52,500. or leu. Section 24.104 Review of appraisals This section recognizes that Agencies differ in the authority delegated to the review appraiser. In some cases the reviewer establishes the amount of the offer to tbe owner and in other cases the reviewer makes a recommendation which is acted on at a higher level. It is also within Agency discretion to decide whether a second review is needed if the first review appraiser establishes e value different from that in the appraisal report or reports on a property. Before acceptance of an appraisal, the review appraiser Hurst determine that the apprataer's documentation. including valuation data and the analyses of that data, demonstrates the soundness of the appraiser's opinion of value. 'Ma gnalificatione dtf.tha review appraiser and the level of explanation of the basis for the reviewer's recommended or approved value depend on the complexity of the appraisal problem. For a tow value property requiring an uncomplicated valuation process. tbe reviewer's approval, endorsing the appraiser's report. may satisfy the requirement for the reviewer's statement. Section 24.108 Expenses Incidental to Transfer of Tide to the Agency Generally. the Agency la able to pay such incidental costs directly end. 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 peaces of the Agency's intent to make each arrangements. In addition. it is emphasized that such expenses must be reasonable and necessary. Subpart C—General Relocation Requirements Section 2411,1 Availability of Comparable Replacement Dwelling Before Displacement Section 24.04 (a) Cenral This provision requires that no one may be rewired to move Sam a dwelling without one comparable replacement dwelling having been made available. In addition. i 24?04(a) requires that. "Where possible. three or more comparable replacement dwellings shall be made available." Tbus 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(cX2Xii)(C) is intended to emphasize that if the comparable replacement dwellings are located in areas of minority concentration. minority persons should, if possible. also be given ca ven opportunities to relata to replacement dwellings not located in such areas. Section 24.207 General Requitement. --Claims far Relocation Payments Section 24.207(al allows an Agency to make apayment for low cost or uncomplicated moves without additional docuritentation as long as the payment is limited to the amoemi of the 8047 lowest acceptable bid or estimate. as provided for in 24.303(c). Subpart 0 --Payment for Moving and Related Expenses Section 24.306 Fixed Payment for Moving Expenses—Nonresidential Moves Section 24.906(d) Nonprofit organizations. Gross manias may include membership fees, class fees. cash donations, tithes. receipts from sales or other forms of fund collection that enables the nen-profit aeganization to operate. Administrative expenses are those for administrative support such as rent. utilities. salaries. advertising and other lice items u well as fund raising expenses. Operating expenses for carrying out the purposes of the non- profit organisation are net included to administrative expenses. The monetary receipts and expense amounts may be verified with certified financial statements or financial documents required by public agendes. Section 24.307 Discretionary Utility Relocation Payments Section 24.107(cl describes the issues which must be agreed to between the displacing agency and the utility facility owner in detenmdning the amount of the relocation payment. To facilitate and rid In reaching such agreement, the practices in the Federal Highway Administration regulation. 23 CFR 045, Subpart A. Utility Relocatlaos, Adjustments and Reimbursement, should be followed. Subpart F.—Replacement Honing Payments Section 24.401 Replaceaeeat Housing Payment far 1&-DayHomeowner- Occupants Section 24.401(0)(2). The provision for extending eligibility for a replacement housing payment beyond the one year period for good cause means that an extension may be granted if some event beyond the control of the displaced person such as acute or life threatening illness, bad weather preventing the completion of construction of a replacement dwelling or other like dreumaianc es should cause delays in occupying a decent. safe, and sanitary replacement dwelling. Section 24.401(c) Price differential. The provision In 2&401(cg4Kiii) 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 maybe as 8948 Federal Register / Vo 1. 54. No. 40 / Thursday, March 2 Section 24.401(d) Increased mortgage interest costs. The provision in f 24.401(d) set forth the factors to be used in computing the payment that wil be required to reduce a person's replacement mortgage (added to the downpayment) to an amount which can be amortized at the same monthly payment for principal and interest over the same period of time as the remaining term on the displacement mortga e new mortgage (544010.18). the buydo shall be prorated accordingly. if the actual mortgage obtained in our 1 example were 835,000. the buydown payment would be 57,706.57 ($35,000 by $42.010.18 = .83 $P.250.13 X .83 = 57.706.57). person e of the pproxency is imate amto ount of this payment and that he or she must obtain a mortgage of at least the same amount u the old mortgage and for at least the same term in order to receive the full amount of this payment. The dsplecee is also to be advised of the interest rate and points used to calculi the payment. Section 24.402 Replacement Housing Payment for 00 -Day Occupants The downpayment assistance provisions in j 24.402(c) are intended to limit such assistance to the amount of the computed rental assistance paymen for a tenant or an eligible homeowner. does, however, provide the latitude for Agency discretion in offering downpayment assistance which exceed the computed rental assistance payment, up to the $5,250 statutory maximhowevum. . such Agency not mean. may be exerdsed Inudiscve oetioa discriminatory fashion. pe displacing a�should develop equal treatment for peraoms in like circumstances and this poll cy should be applied uniformly throughout the recommended that dIa Ia projects.g It to ndas coordinate with each other to rae ch a consensus on a uniform procedure for the State and/or the local jurisdiction. For purposes of this section. the term downpayment means the downpayment conventiorenal loan man uired to obtain decent, safe,; and sanitary ddwelling for ng actuallypurchased and occupied However. If the downpayment actually required of a displaced person for the purchase of the replacement dwelling exceeds the amount ordinarily required, the amount of the downpayment may be the amount which the Agency determines is necessary. Section 24.403 Additional Rules eating Replacement Housing Payments This payment is commonly known as the "buydown." The remaining principal balance. the interest rate. and monthly principal and interest payments for the old mortgage aa well as the interest rate, points and term for the new mortgage must be known to compute the increased mortgage interest coats. if the combination of interest and pointe for the new mortgage exceeds the current prevailing fixed interest rate and pointe for conventional mortgages and there is no justification for the excessive rate„ thea 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 Prindpal Balance .. 850.000 Monthly Payment (principal and taterest} 4s8.22 New Interest rate (percent] « ....ro.—,,, 7 InteresMortgt rata (percent) Points `" 13 Term {yeah)„___.._...._ 9 1s 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 Increased mortgage interest points on ti42.QIQ5o 7,98042 1.280.31 Total beydowe necessary to maintain paymen at $45&22/month....-- 9250.13 If the new mortgage actually obtained is 'lees than the computed amount for e $50, —47,O1o.1 1989 / Rules and Regulations wn comparables, but cannot acquire The property for the adjusted price, it fa appropriate to increase the replace/nen housing payment to the actual purcheg, amount. Section 24.404 Replacement Housing the of Lost Resort Section 24.403(a)(Ij, The procedure for adjusting the asking price of comparable replacement dwellings requires that the agency provide advisory assistance to the displaced person concerning negotiations so that a or she tnay enter the market as a knowledgeable buyer if a displaced parson elects to buy one of the selected Section 24.404(b) Basic rights o f persons to be displcced. This paragraph affirms the right of a 180 -day homeowner -occupant, who is eligible fol a replacement housing payment under f 24.401. to a reasonable opportunity to to Purchase a comparable replacement dwelling. However. it should be read in conjunction with the definition of "owner of a dwelling" at 1 24.2(p). 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 t replacement dwelling than the Agency It would be required to provide such persons if they awned fee simple title to the displacement dwelling. If such s 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 housing.providiv lacement The use a cost effective means of providing comparable replacement housing is implied throughout the subpart The term "reasonable cost" is used here to underline 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 spedal cases, which may involve variations from the usual methods of obtaining comparability. However. it should be specially noted that 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. 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. ozily a portion of which is being used as living quarters by the occupants and no other large comparable dwellings are available in the area. Federal Register / Vol. 54, No. 40 / Thursday, March 2. 1989 / Rules and Regulations 8949 subpart F --Mobile Homes Section 24.503 Replacement Housing payment for 180 -Day Mobile Homeowner -Occupants A180 -day owner -occupant who is displaced from a mobile home on a rented site may be eligible for a replacement housing payment for a dwelling computed under 24.401 and a replacement housing payment for a site computed under 124.402. A 180 -day owner -occupant of both the mobile home and the site. who relocates the mobile home, may be eligible for a replacement housing payment under f 24.401 to assist in the purchase of a replacement site or, under 12,4.402. to assist in resting a replacement site. Appendix 8 to Part Z4—Statistical Report Fonn This appendix sets forth the statistical information. collected from Agencies in accordance with 1 24.9(c). General 1. Report COvers all relocation and acquisition activities under a Federal or a federally assisted project or program subject to the provisions of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended by Pub. L.10047,101 Stat. 132 2. Report period. Activities shall be reported on a Federal Fiscal Year basis, Le., October 1 through September 30. 3. Where and when to submit report Submit an original and two copies of this report to (Name and Address of Federal Agency) as soon as possible after September 30, but NOT LATER THAN NOVEMBER 15. 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 and C to the nearest dollar. & Statutory references. The references in Part B Indicate the aectiou of the Uniform Act that authorizes the coat. Port A. Persons displaced Report in Part A the number of persona ("households," `businesses, including nonprofit organizations,' and "farms") who were permanently displaced during the fiscal year by project or program activities and moved to their replacement dwelling or location. This includes businesses. nonprofit organizations and farms which. upon displacement. discontinued operations. The category "households' includes all families and individuals. A family shall be reported u "one" household. not by the number of people In the family writ. Persons shall be reported according to their status as "owners" or ~tenants" of the property from which displaced. Part B. Relocation payments and expenses Columns (Aj and (B) Report in Column (A) the number of displacements during the report year. Report in Column (8) the total amount represented by the displacements reported in Column (A). Lane 7A is a new line item far reporting the business reestablishment expense payment. Lines 7A and & Column (B). Report in Column (B) the amount of costs that ware included in the total amount approved on Lines 8 and 8, Column (8), Liner 12 A and B. Report in Column (A) the number of households displaced by project or program activities which were provided assistance in accordance with section 208(a) of the Uniform Act. Report in Column (B) the total financial assistance under section 20; (a) allocable to the households reported in Column (A). (If a household received financial assistance under section 203 or section 204 as well as under section 20; (a) of the Uniform Act. report the household u a displacement in Column (A), but in Column (B) report only the amount of financial assistance allocable to section 206(a). For example, if a tenant -household receives a payment of 57.000 to rent a replacement dwelling. the sum of 55,250 shall be included on Line 10, Column (8). and 51.750 shall be included on Line 12B, Column (8).) Line M. Report on Line 13 all administrative costa incurred during the report year in connection with providing relocation advisory aseistance and services under section 205 of the Uniform Act. Line 15. Report on Line 15 dee total Dumber of reloca tion appeals filed during the fiscal year by aggrieved persons. Part C. Real property acquisition subject to Uniform Act Line ld Columns (A) and (B). Report in Column (A) all parcels acquired during the report year where tide or possession was vested in the acquiring agency during the reporting period. (Include parcels acquired without Federal financial assistance. if there was or will be Federal finandel assistance in other phases of the project or program.) Report in Column (B) 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 acquiring agency. Line 17. Report on Line 17 the number of parcels reported on Line 16 that were acquired by condemnation where price disagreement was involved. eairNO CODE 4.ie4241 8958 Federal Register / VoL 54. Na. 40 / Thursday. March 2. 1984 / Rules and Regulations g111441 .14 42 F u M /. :`11111 Y w; *Q K l- e- 0 ..rM pi 0 eit X V A K 0 -u a- 4 K W W AL vs 00o J J aiu I K a- 20 0 14 I. 1- 9214 !DURAL 'Mama 1 t W 1. 4. w Y L i r 1- Y i K W ..• I..Lu y a wall 0api OC •C Al ap as ?NI O Y W IN ill S p � M G. 6i 7r = M a N N! 4 0 v iiL •. 0 MF ^ MS 4. alm• N ....4 isa W S V 0 ~ % G F/ p W N M W W W O N q• • 1L . r , b t Y r j K 7 W j — W IV. ; r W i 1" e r W • = ^ 2 y1 u U t 0 t 71 i F. O M 0 O ~ W III O W i F L ' .0 a o ` W a W 4 = a a i I O I. 0 0 5 r u G t w N y 3 0 : . 2 a . . . q +. 0 9 w a K O. : j - q 4 ! O b S q S F. K .. W ! ^ 14 H 5 q = v } IJ C W C q MN IL • 10J ta UM IC 0 PI i r J q 11•WJ /` VW WC W i qi ••• • au • M ... 6. q Y ' ` 21-1 ea Cs q W W = 0 L +J le ao w r L J 'a at _ i K 4 K 14S _ Q? p 0 ..• F• q q K 3 ti 3 O z F w K W yy L K K K q •.' q yt al i p ; W ly ; i 4 H . W .. = 0 24 9 •PC _ ; W l d t F at b . _ ~ a K V 0 17 av 1.21 O u •••• K O O 1 J 14 W s W J j r f L V ~' 1► r I >i O + • r . . • . Ic 1a ie I_ r — - F r l; d F W S .1 6 `p .. eV M I+f r u J w N 14 at 1a Federal Register / VoI. 54, No. 40 / Thursday. March 2. 1989 / Notices DEPARTMENT OF TRANSPORTATION Highway Administration W,(form Relocation and Real Property Acquisition for Federal and Federally - Assisted ed ,Assist Programa; Fixed Payment for moving Expenses; Residential Moves AGENCY: Federal Highway Administration (FHWA), DOT. ACTION: Notice. straWaARY: The purpose of this notice is to publish the alternative moving expense and dislocation allowance schedule for persons displaced from dwellings in each State, the District of Columbia. Puerto Rico. and the Virgin islands as required by section 405(b) of the Surface Transportation and Uniform Relocation Assistance Act of 1997, Pub. L.100-17.101 Stat. 132 (1987 Amendments). EFFECTIVE DATE: The provisions of this Notice are effective March 2, 1909, For further information about implementation dates, see the discussion in the supplementary information section below. FOR FURTHER INFORMATION CONTACT: Barbara ). Satorius, Policy Development Branch. Office of Right -of -Way (202- 388-3043), or Reid Alsop, Office of the Chief Counsel (202-369-1371), Federal Highway Administration, 400 Seventh Street. SW., Washington, DC 20590. Office hours, Monday -Friday are from 7:30 a.m. to 4:00 p.m., e.t. SUPPI.Ea1ENTARY INFORMATION: Section 202(b) of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, Pub. L 91-848, 84 Stat.1894 (Uniform Act), as amended by section 405(b) of the 1987 Amendments, provides that a displaced individual or family may elect to be paid for moving expenses on the basis of a moving expense and dislocation allowance schedule established by the head of the lead agency as an alternative to being paid for moving and related expenses actually incurred. Section 405(b) eliminated statutory limitations on the amounts that could be paid pursuant to such a schedule. Implementing regulations at 49 CFR 24.302 provide that the FHWA wtl! develop and approve this schedule. The purpose of this notice is to publish the schedule approved by the FHWA for use in payment determinations by all Federal, State and local governments. and persona affected by the Uniform Act. as amended. It has been developed from data provided by State highway agendes, and incorporates the dislocation allowance within the schedule's payment amounts. The exceptions and limitations are as follows: 1. The expense and dislocation allowance to a person whose residential move L performed by an agency at no cost to the person shall be limited to 550.00. 2. An occupant will be paid on an actual cost basis for moving his or her mobile home from the displacement site. In addition. a reasonable payment to the occupant for packing and securing 8851 personal property for the move may be paid at the agency's discretion. 3. The expense and dislocation allowance to a person with minimal personal possessions who is In occupancy of a dormitory style room shared by two or more other unrelated persona shall be limited to 150.00. An occupant who moves from a mobile home may be paid for the removal of personal property from the mobile home in accordance with the moving and dislocation allowance payment schedule. Any government. agency or person that is in compliance with 49 CFR Part 24 may implement the schedule being published today. Any government. agency or person that is unable to comply with 49 at Part 24 at this time may continue to use the moving expense schedule published in the Federal Register on December 30. 1988. ule publidbed here becomes the eeched mandatory on April 2,1989, the date that the 1987 Amendments and 49 CFR Part Z4 become fully applicable. (Catalog of Federal Domestic Assistance Program Number 26.205. Highway Planning and Construction. The regulations Implementing Executive Order 12372 regarding inietrwerrimatial amsutatiae en Federal programs and activities apply to this program.) (42 U.B.C. 4961; 40 CFR 24.302(a)). Issued on February 24. tam Robert t; Farris, Federal HighwoyAdminiserceor. IMMO WOE *iatsa Federal Register / Vol. 54, No. 40 / Thursday. Mardi 2. 1989 / Notices RESIDENTIAL MOVING EXPENSE 6 DISL.00ATI04 ALLOWANCE PAYMENT SCHEDULE STATE ALABAMA ALASKA ARIZONA ARKANSAS CALIFORNIA COLORADO CONNECTICUT DELAWARE D. C. FLORIDL GEORGIA HAfrAIt IDAHO ILLINOIS [NOEANA IOWA KANSAS KENTUCKY LOUISIANA MAINE MARYLAND MASSACHUSETTS MICHIGAN MINNESOTA MISSISSIPPI MISSOURI MONTANA NEN RASKA NEVADA NEW HAMPSHIRE NEW JERSEY NEW MEXICO NEW YORK NORTH CAROLINA NORTH DAKOTA OHIO OKLAHOMA OREGON PENNSYLVANIA PUERTO RICO RHODE ISLAND SOUTH CAROLINA SOUTH DAKOTA TENNESSEE TEXAS UTAH VERMONT VIRGIN ISLANDS VIRGINIA WASHINGTON WEST VIRGINIA WISCONSIN WYOMING 1 250 350 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250 2'50 250 250 250 ' 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250 OCCUPANT OWNS FURNITURE NUMBER 0? 2 1 350 500 400 350 400 400 400 250 400 350 350 404 350 400 400 350 35D 400 350 350 404 400 400 400 350 350 350 350 400 350 400 400 400 350 350 400 350 400 400 350 350 350 350 350 350 350 350 350 400 400 400 400 350 3 450 650 550 450 550 550 550 450 550 450 450 550 450 550 550 450 450 550 450 450 550 550 550 550 450 450 450 450 550 450 550 550 550 1 450 450 550 450 550 550 450 450 450 450 450 450 450 450 450 550 550 550 550 450 4 550 800 650 550 650 650 650 55• 650 550 550 650 550 650 650 550 550 650 550 550 650 650 650 658 550 554 550 550 650 550 650 650 650 550 550, 650 ' 550 650 650 550 550 550 550 550 550 550 550 550 650 650 650 650 550 MS OF FURNITURE 5 1 6 1 7 625 700 925 1050 750 850 625 700 750 850 750 850 750 850 625 700 750 05.0 625 700 625 700 750 850 625 700 750 850 750 850 625 700 625 700 750 050 625 700 625 700 750 850 750 850 750 850 750 850 625 700 625 700 625 700 625 700 750 850 625 700 750 850 750 850 750 850 625 700 625 700 750 850 625 700 750 850 750 850 625 700 625 700 625 700 625 700 625 700 625 700 625 700 625 700 625 700 750 850 750 850 750 850 750 850 625 700 775 1175 950 775 950 950 950 775 950 775 775 950 775 950 950 775 775 950 775 775 950 950 950 950 775 775 775 775 950 775 950 950 '50 775 775 950 775 950 950 775 775 775 775 775 775 775 775 775 950 950 950 950 775 (1) 6 21 JOCCUPANT DOES NOT OIJN FURNITURE (3) EACH ADD. FIRST MACE ADD. 8 ROOM ROOM ! ROOM 850 1300 1050 850 1050 1050 1050 850 1050 852 850 1050 850 1050 1050 850 850 1050 859 850 1050 1050 1050 1050 850 854 850 850 1050 850 1050 1050 1050 850 850 1050 850 1050 2050 850 850 850 850 850 850 850 850 850 1050 1050 1050 1050 850 75 100 100 75 100 100 100 75 100 75 75 100 75 100 100 75 75 100 75 75 100 100 100 100 75 75 75 75 100 75 100 100 100 75 75 100 75 100 100 75 75 75 75 75 75 75 75 75 100 200 100 100 75 200 225 225 200 225 225 225 200 225 200 200 225 200 225 225 200 200 125 200 200 22S 225 225 225 208 200 200 200 225 200 225 225 225 200 200 225 200 225 225 200 200 200 200 200 200 200 200 200 225 225 225 225 200 Exceptions: See supplementary information. i11 Person whose residential move is performed by agency, 550. (21 Hove of a mobile home from site, actual cost: reasonable amount may be added for packing and securing personal property for the move at agency discretion. (31 Occupant of dormitory. 550. IFR Doc. 89.4780 Filed 3 -1 -at 8:45 am] MUM came e1 25 35 35 25 35 35 35 25 35 25 25 35 25 35 35 25 25 35 25 25 35 35 35 35 25 25 25 25 35 25 35 35 35 25 25 35 25 35 35 25 25 25 25 25 25 25 25 25 35 35 35 35 25