Displacement Plan for CDBG and HOME

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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