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Office of Real Estate Services - Project Development Guide
The United States Constitution and the constitutions and laws of the States have long prescribed certain requirements when governmental bodies acquire private property. However, until the 1930s little attention was given to the effects of acquisition on the people who owned or occupied the property being acquired. Benefits such as moving expense payments and housing payments were gradually added to various Federal programs, but these remained at minimal levels and differed widely from one Federal program to another. During the 1960s, Congress addressed these problems and, in January 1971, passed the Uniform Act. The Uniform Act was a response to the need to unify, increase protections provided to private persons affected by government projects and address the needs of the people, especially people displaced by a public project.
The Uniform Act proved to be highly successful, but eventually it required updating. In 1987, as part of the Surface Transportation and Uniform Relocation Assistance Act (STURAA), Congress amended the Uniform Act to increase payment levels, to add benefits for small businesses, and to designate the Department of Transportation as the Lead Agency for the Uniform Act for all Federal and Federally-funded programs and projects. The Federal Highway Administration has the responsibility to act for the Department of Transportation. The Uniform Act was once again amended on November 21, 1997, to add Public Law 105-117, "alien not lawfully present in the United States." The provisions of the Uniform Act concerning relocation are found in Title II. As stated in the law, the purpose of Title II is to assure fair and equitable treatment of displaced persons so that such persons do not suffer disproportionate injury from projects designed to benefit the public as a whole. It is important to keep this purpose in mind. It will serve as a valuable guide when making decisions on difficult questions. It also is important to understand that successful relocation is essential not only to the welfare of those to be displaced but to the progress of the entire highway project. Without the relocation of those on site, the project cannot proceed to actual construction and the highway will not be built. 10.1. RELOCATION PLANNING Successful relocation requires planning. Housing resources must meet the needs of displaced residents in terms of size, price, rental, location, and timely availability. Advisory services and various notices, some with specific timing requirements, must be provided. Businesses must be given assistance in relocating with a minimum of disruption to their operations. Payments must be made available to displaced persons at the time they are needed to obtain replacement housing or to move. Often coordination with other displacing programs or agencies is necessary. These things do not happen automatically; they require planning. FHWA long has stressed the value of relocation planning, but Congress gave new emphasis to planning in the 1987 amendments to the Uniform Act. Section 205 of the Act was amended to add a new Section 205(a) explicitly requiring such planning, i.e.,
In a sense, planning for relocation begins with planning for the project, since the relocation of occupants is one of the major potential impacts of any project and must be considered at an early juncture. The earlier problems are identified, the easier it will be eventually to minimize or mitigate them. As a project progresses, the focus on the potential for relocation becomes sharper. By the time the general area to be affected has been identified, relocation planning becomes more formalized. At this stage generalized information concerning the potential relocation impact of the project is gathered and the differing impacts of alternative locations are compared. For new highways (as opposed to widening or realigning existing roads), this and other information will assist in narrowing potential project corridors to the relatively few from which the final alignment will be chosen. It also may have a major role in the selection of that alignment. While obtaining relocation information is important for the selection process, it has another, more direct role in project management. The information obtained in the planning process will form the basis for actions the State must take to conduct the actual relocation of project occupants. Essentially, the acquiring agency must be able to match up project occupants with appropriate relocation resources. The nature of these resources will vary, depending on the characteristics of the displaced persons. Will there be large families, low-income elderly, or persons with disabilities displaced? Will there be a shortage of available dwellings for such persons? In addition, the State must plan for providing the advisory services displaced persons will need. Providing these services may make the difference between a successful relocation and one which delays the progress of project activities. One effective way to obtain the information needed is to conduct a relocation survey. The elements of a relocation survey and how to prepare one are discussed in Section 5 above. 10.2. INFORMATION AND NOTICES While the displacing agency needs information about potential displaced persons and their needs to conduct relocation in a successful manner, the displaced person has an equal or greater need for information about the displacement process. After all, it is the displaced person who will have to make a major readjustment in his or her daily life, i.e., to move to a new home or business location. In such a situation, people need to know what is going to happen to them and they need to know it in time to plan and in time to act. The Uniform Act and the DOT/FHWA regulations require that persons to be displaced be provided the information they will need to minimize the disruption of moving and maximize the likelihood of a successful relocation. Much of this information is contained in a series of Notices from the displacing agency to the displaced person. These Notices must be delivered either in person or by certified mail. There are three basic notices. We will discuss each one in turn. 10.2.1. GENERAL INFORMATION NOTICE At an early stage of the project, the displacing agency must provide general information about the project and the relocation program to persons who may be displaced. This information must be in writing using easily understood language. Sometimes, the information may need to be provided in a foreign language. One of the most effective ways to convey this information is in a relocation brochure. Providing the brochure gives the relocation field worker the opportunity to meet potential displaced persons and to begin to establish a personal relationship which may prove crucial later. A well-written brochure contains the basic relocation information a displaced person needs to know, is small enough not to be intimidating, and is easy to refer back to later. You should hand out relocation brochures at all related public meetings to all persons you think may have to move. We encourage agencies to prepare a brochure of their own or to use the brochure FHWA has developed. We believe this brochure is written broadly enough to be used in all Federal-aid or Federal programs or projects. We can make limited numbers of these brochures available to you or will loan the plates to you for use in duplication. 10.2.1.1. CONTENT OF THE GENERAL INFORMATION NOTICE The General Information Notice provides a general description of the displacing agency's relocation program. It should include all of the following and any appropriate additional elements:
10.2.2. NOTICE OF RELOCATION ELIGIBILITY The Notice of Relocation Eligibility is a major step in the relocation process. Prior to this notice the displacing agency should have provided general relocation information to all those persons who might be displaced by the project. The Notice of Relocation Eligibility informs particular persons that they will be displaced by the project and thus will be eligible for relocation benefits appropriate to their situation (homeowner, tenant, business etc.). The trigger for this notice is the initiation of negotiations to acquire the real property where the person lives or conducts a business. The date on which this occurs generally is the date on which the property owner receives the agency's initial offer to buy the property for the amount it has determined to be "just compensation". The regulations require that the notice be provided "promptly" in writing to persons to be displaced. Therefore, it should be issued on the same day as the offer to acquire the property or as soon thereafter as possible. The Notice of Relocation Eligibility should be delivered within seven and, in no case, later than fourteen days. Otherwise, the requirement of promptness will not be satisfied. In unusual circumstances, where there is a need to vacate property or relocate persons before the initiation of negotiations, the agency may issue a Notice of Intent to Acquire prior to the initiation of negotiations to the current occupant. 10.2.3. NINETY-DAY NOTICE The General Information Notice contains assurances for persons to be displaced. No one will have to move from a dwelling without at least 90 days written notice. This is one of the most important protections that the Uniform Act and the regulations provide. And a 90 day notice is not effective for a residential occupant unless a comparable replacement dwelling has been made. Realistically, a residential occupant does not have to move until at least 90 days after receipt of notice of replacement housing availability. The clock does not begin on the 90-day notice until at least one comparable dwelling is made available. The DOT/FHWA regulations at 49 CFR 24 require that: 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. The 90-day notice informs the person that any person who is an alien not lawfully present in the United States is ineligible for relocation advisory services and relocation payments, unless such ineligibility would result in exceptional and extremely unusual hardship to a qualifying spouse, parent, or child. The regulations provide two basic approaches to the content of the 90-day Notice. Under the first the agency includes in the Notice a specific date, at least 90 days away, by which Mr. Jones may have to move -- July 15 in our example above. Under the second approach, the 90-day Notice does not state a specific date, but informs Mr. Jones that in not less than 60 days the agency will provide a second notice which will state a specific date by which a move will be required, and that this latter notice will provide no less than 30 days advance notice. Note that under both approaches, the earliest date by which the agency may require a move must be at least 90 days after the 90-day Notice is given. The Agency must acquire the property in question before issuing this latter notice. We have attached a chart illustrating these timing requirements at the end of this subsection. In practice this process may work out in a variety of ways. For example, it may turn out that the agency does not need Mr. Jones out until August. On the other hand, the agency may elect to provide more than 90 days advance notice intentionally, that is, notifying Mr. Jones, in writing, on March 1. In either case, Mr. Jones does not have to move before July 15 and the 90-day notice requirement has been met. The requirement for the 90 days notice applies to situations in which the agency requires an occupant to move. Where occupants move on their own before receiving a notice, it is not necessary for the agency to provide one. Finally, some situations, expected to be rare, may require an agency to move persons with less than 90 days notice. Examples include health, safety or other reasons which make 90 days notice impracticable. However, the need of the agency for the land, the project schedule, or similar causes do not constitute sufficient reason for failing to provide 90 days notice. In exceptional instances, where less than 90 days notice is appropriate, the agency should document its reason(s) in the case file. 10.2.4. ADDITIONAL INFORMATION TO DISPLACED PERSONS While much of the information the agency will provide to displaced persons is contained in the three notices described above, some information of great importance to them will be provided through other channels. For example, the regulations require the agency to give the person to be displaced information about the specific dwelling unit used as the comparable dwelling, its location, the price or rent used to set the upper limit of the replacement housing payment, and the basis for the determination (24.205(c)(2)(ii)(A)). This information must be provided in writing. 10.2.4.1 ALIENS NOT LAWFULLY PRESENT IN THE UNITED STATES. Each person seeking relocation payments or relocation advisory assistance shall, as a condition of eligibility, certify:
A certification shall suffice in determining whether such person is either a citizen or national of the United States, or an alien who is lawfully present in the United States. In computing relocation payments under the Uniform Act, if any member(s) of a household or owner(s) of an unincorporated business, farm, or nonprofit organization is (are) determined to be ineligible because of a failure to be legally present in the United States, no relocation payments may be made to him or her. Any payment(s) for which such household, unincorporated business, farm, or nonprofit organization would otherwise be eligible shall be computed for the household, based on the number of eligible household members and for the unincorporated business, farm, or nonprofit organization, based on the ratio of ownership between eligible and ineligible owners. If, based on a review of an alien's documentation or other credible evidence, a displacing agency has reason to believe that a person's certification is invalid (for example a document reviewed does not on its face reasonably appear to be genuine), and that, as a result, such person may be an alien not lawfully present in the United States, it shall obtain the following information before making a final determination.
No relocation payments or relocation advisory assistance shall be provided to a person who has not provided the certification described in this section or who has been determined to be not lawfully present in the United States, unless such person can demonstrate to the displacing agency's satisfaction that the denial of relocation benefits will result in an exceptional and extremely unusual hardship to such person's spouse, parent, or child who is a citizen of the United States, or is an alien lawfully admitted for permanent residence in the United States. "Exceptional and extremely unusual hardship" to such spouse, parent, or child of the person not lawfully present in the United States means that the denial of relocation payments and advisory assistance to such person will directly result in:
10.2.4.2 Site Offices Perhaps one of the most effective means of communicating with potential displaced persons is to open a local relocation office on or near the project site. Of course not every project has a workload large or difficult enough to merit a site office, but for those which do, it can be of great assistance. Opening an office early in the project's life will show occupants that the agency is interested in communicating with them. Keeping the office open at hours that are convenient for occupants demonstrates that they will not be treated in a "business as usual" fashion. The office should be readily accessible to occupants and it should be a resource for the kinds of information and assistance occupants need, especially those to be displaced. At a site office occupants should be able to find information about what the project proposes to do, basic relocation requirements, and benefits, available replacement housing and business locations, community resources such as parks, schools, churches, shopping, and transportation, financial requirements relating to the cost of obtaining replacement housing or business sites, local codes, and other useful information as well. If a local office is not merited the relocation agent will have to provide this type of information to occupants. 10.3. RELOCATION ASSISTANCE ADVISORY SERVICES A relocation agent must be able to work with many different people and situations. Consider the following: A displaced person whom you have been helping to search for a replacement dwelling hurries into your office. She has found just the apartment for her family. It is available at a rent she can afford. But there is one problem; the rental agent is requiring a deposit of first and last month's rent and she doesn't have that kind of cash to spare from her family's budget. She is afraid she will lose the apartment! You can explain to her that if the apartment meets the requirements for replacement housing (decent, safe, and sanitary), you can arrange for an advance on her replacement housing payment to make the required deposits and provide a letter to the rental agent explaining her status and benefits. In the end, there will be three happy people: the displaced person who has a place to move, you because you will not have to find a comparable, and the rental agent who hopes to have rented to a good tenant. An elderly man cannot look for replacement housing because of a disability which prevents him from driving or even using public transportation. You offer to drive him around to view a number of homes and to give him the names of several local contractors who have done remodeling work to make houses accessible and useful to people with disabilities. When he requests it, you agree to be present when he meets with a contractor. A man comes into your office several months after a public meeting announcing a highway project and informs you that, since the meeting, the same person has visited him twice and each time tried to convince him to sell his home "before the floor falls out from under the value of his home." You counsel him not to panic and to wait for the State to contact him about the impact of the project on his dwelling. You emphasize that if his home eventually is acquired for the project, he could jeopardize substantial benefits by moving before official notice. You help a family complete an application for public housing. You refer a frightened wife to a program which will help her to deal with her husband's alcohol problem. You patiently explain to a skeptical young legal immigrant couple that, yes, they can use their relocation payment as a downpayment on their first home. In all of these cases you are providing relocation assistance advisory services. These services are provided in every phase and in connection with every aspect of a highway project. They involve providing information, counseling, advice, and encouragement and often require repeated and intense personal contact. Perhaps no other assistance, not even relocation payments, is more important to persons to be displaced. Some displaced persons will require minimal advisory services; others will need extensive services. A project in an area with a large concentration of the latter will require more relocation "advisors" than one with out such problems. There simply is no substitute for knowing the area the project is impacting and for knowing the people who are to be displaced. Sometimes this knowledge must go beneath the surface to special problems or needs of the displaced person and sometimes acquiring such knowledge may require skilled interviewing and repeated contacts. The goal is to assure that all displaced persons are relocated successfully. Your advisory assistance goal is to address all problems that prevent the displaced persons from relocating successfully. 10.3.1. WHO IS ELIGIBLE FOR ADVISORY SERVICES? There are four categories of persons eligible to receive advisory services:
10.3.2. WHAT SERVICES MUST AGENCIES PROVIDE? While a relocation agent may sometimes have to provide unusual types of assistance, there is a group of services which forms the core of a typical advisory services program. These are the basic, minimal services which the agency must make available to all displaced persons and include the following items:
10.3.3. WHAT SPECIAL SERVICES ARE AVAILABLE? There is a variety of social services available from a number of public and private agencies. It is important for each agency to determine the services available to the residents of the project area and the methods to obtain the services for the displaced persons. 10.4. RELOCATION ASSISTANCE PAYMENTS One of the main purposes of the Uniform Act is to prevent affected persons from bearing an unfair share of the burden of public projects. In addition to the relocation assistance advisory services discussed above, the Uniform Act and its regulations provide relocation assistance payments to help accomplish this. Relocation assistance payments are designed to compensate displaced persons for costs which are the result of acquisition of the property on which they reside. These payments fall into two broad categories, residential and nonresidential, that is, businesses, farms, and non-profit organizations. These two broad categories are made up of several subcategories.
10.4.1. RESIDENTIAL RELOCATION PAYMENTS Residential relocation payments are intended for persons who move (or move personal property) from a dwelling as a result of a highway project receiving Federal financial assistance. As the chart above shows, these payments may be subdivided into three types: moving expense payments, replacement housing payments, and last resort housing payments. There are several different levels of eligibility, each with its own set of specific requirements. 10.4.1.1. RESIDENTIAL MOVING EXPENSE PAYMENTS Residential moving expense payments are designed to compensate for the moving and related costs which a person incurs as a result of having to move from his or her dwelling or to move personal property for a Federal or federally-assisted project. They include items such as the cost of transporting household goods, packing and unpacking those goods, the cost of storage, if necessary, and other related costs (see the end of this sub-section for a list of eligible moving and related costs). Residential moving expense payments may be computed in two ways, the actual cost method and the schedule method. The latter method, as the name indicates, involves the use of a schedule of moving costs approved and published in the Federal Register regularly by FHWA. For each State the schedule establishes fixed amounts to be paid for moving expenses, based on the number of rooms of furniture in the dwelling from which the move occurred. The schedule also provides for moves from dwellings with either little or no furniture. In some cases a displaced person will have an unusually large amount of furniture in one or more rooms, e.g., in a basement or attic. You may adjust the number of rooms and hence the schedule payment to reflect this situation. The key is to establish the number of rooms of possessions that must be moved, regardless of the location in the dwelling or outside the dwelling. The advantage of the schedule method is that it minimizes paperwork for both the agency and the displaced person. The right-of-way section at the FHWA Division Office or the State Transportation Agency will have a copy of the latest schedule. The actual cost method also is true to its name. It is based on the actual, reasonable cost of moving and related costs. Eligible residential moving expense costs are listed following this section. While there is no fixed dollar ceiling on payments for actual moving expenses as there is for the schedule payments, there are limits on what may be paid. First, the payment may not exceed the actual cost of the moving and related expenses. This amount will be based on receipts for the costs claimed. Second, the charges which make up the payment must be reasonable, i.e., typical of the amounts charged for a similar move. Third, the items of cost which are included in the claim for reimbursement must be necessary to accomplish the move. When making determinations concerning reasonableness and necessity, the agency should use common sense and good judgement. An actual cost move may be carried out by a commercial mover or by the displaced person, as a self-move. If the displaced person elects to use a commercial mover, it is necessary to obtain bids or estimates. (Good business practice would consist of obtaining two if possible. An estimate prepared by a qualified Agency staff member also may be acceptable.) Payment will be limited to the amount of the low acceptable bid. If necessary, the agency may pay the mover directly for the services. In any case, the costs claimed for reimbursement of an actual cost move must be supported by appropriate receipts, or other records. A displaced person may elect to make an actual cost self-documented move if he or she wishes. Reimbursement will be made for the necessary costs of moving and placing all possessions in the new dwelling and necessary utility charges. A record must be maintained of all activities and the time spent, all purchases of supplies and services, and the persons performing the move. If someone elects to make a self-documented move, the agency should provide them with the hourly rate that will be paid for the moving activities. ELIGIBLE RESIDENTIAL MOVING EXPENSES It is up to the Agency to determine which of these expenses are necessary for each move.
10.4.1.2. REPLACEMENT HOUSING PAYMENTS In addition to the Moving Expense payments discussed above, the Uniform Act and the DOT/FHWA regulations provide another set of payments for persons displaced from their homes by FHWA or FHWA-assisted projects. These Replacement Housing payments are designed to help eligible displaced persons occupy housing which is decent, safe, and sanitary, adequate for their needs, and comparable to what they had before the project required their move (The precise meaning of the terms in bold will be discussed below.). These payments are available to persons who occupied dwellings as their primary place of residence only. There are 3 categories of Replacement Housing Payments (RHPs): Purchase Supplements, Rental Assistance, and Downpayment Assistance. Sometimes even these payments are not sufficient to meet the objectives of the law and regulations and it is necessary to provide housing of last resort payments and procedures. We will discuss these supplemental payments/procedures in the next chapter. 10.4.1.2.1. REPLACEMENT HOUSING PAYMENTS: COMMON REQUIREMENTS Each of the two categories of RHP has specific requirements for eligibility and computation. However, all RHPs have a number of features in common. Let's look at those common elements first.
RHPs are intended to assist displaced persons in obtaining comparable replacement housing and to compensate for the increased housing-related costs due to relocation. Thus, the payment computed under an RHP, with certain exceptions specified below, is based on the cost of either a comparable replacement dwelling or the replacement dwelling actually occupied, whichever is less. 10.4.1.2.2. REPLACEMENT HOUSING STANDARDS A basic requirement of the relocation program is to make replacement housing available to displaced persons that meets certain qualitative standards. These standards are contained in the interrelated concepts of "decent, safe, and sanitary housing" and "comparable replacement housing." 10.4.1.2.2.1. DECENT, SAFE, AND SANITARY HOUSING The term decent, safe, and sanitary (DSS) refers to the physical condition of the replacement dwelling and its effect on the health and safety of the occupants. Basically, a dwelling which meets the requirements of a local housing and/or occupancy code will be decent, safe, and sanitary. It is important to understand the distinction between housing/ occupancy codes and building codes. Building codes set standards for construction and apply only to new construction and certain additions and alterations. Housing/occupancy codes set standards for habitability and apply to all dwellings in a community. If an occupancy code changes to require smoke detectors, for example, all dwellings would be required to comply. Housing/occupancy codes are narrower in scope than building codes. They are concerned only with those elements which influence health and safety. Building codes are concerned with conformance to current building standards. Most local housing and occupancy codes are adaptations of one of the national model codes promulgated by code setting organizations. 10.4.1.2.2.2. MINIMUM STANDARDS In places where there are no local housing and occupancy codes, such as rural areas or small towns, or where the codes are less stringent, the regulations apply the following minimum standards to replacement housing:
10.4.1.2.2.3. COMPARABLE REPLACEMENT DWELLING The regulations require that no person may be required to move from a dwelling unless he or she has been offered a comparable replacement dwelling. In carrying out this requirement, the agency must offer every displaced person at least one comparable replacement dwelling and, if possible, three. This is a crucial part of the displacement process since the comparable replacement dwelling will form the basis for the computation of the Replacement Housing payment. Many of the elements of comparability deal with the specific needs of displaced persons, e.g., financial means, access to employment, and access to public and commercial facilities. This reemphasizes the critical importance of what was stressed in the chapter on Advisory Services, the need for the agency to determine the displaced person's needs and circumstances. This can be accomplished only by personal contact with each displaced household early in the process. The term comparable replacement dwelling means a dwelling which meets the following criteria:
Each of these criteria is discussed below to clarify the intent of the relocation program.
MINIMUM STANDARDS SUMMARY In summary, a great deal of judgement is required in applying the minimum standards for replacement housing. The criteria sometimes become subjective in application and an attitude of reasonableness must prevail. In implementing comparability and DSS standards for replacement housing, it is important to remember the overall objective of the program: fairness and equity to displaced persons. 10.4.1.2.3. ELIGIBILITY FOR REPLACEMENT HOUSING PAYMENTS In addition to the common elements discussed above, each Replacement Housing payment has particular rules and requirements governing eligibility and computation. The following paragraphs discuss the requirements for eligibility and explain specifically how to compute each payment. Remember the requirement to use Housing of Last Resort when replacement housing cannot be made available within the limits stated in the following paragraphs. 10.4.1.2.3.1. REPLACEMENT HOUSING PAYMENTS FOR 180-DAY HOMEOWNERS A displaced homeowner must have occupied the dwelling from which he or she moved for at least 180 days immediately prior to the initiation of negotiations to be eligible for this category of payments. Persons within this category may be eligible for either a Purchase Supplement or a Rental Assistance payment.
10.4.1.2.3.2. REPLACEMENT HOUSING PAYMENTS FOR TENANTS AND FOR HOMEOWNERS OF 90 TO 179 DAYS A displaced residential tenant who occupied the dwelling from which he or she was displaced for at least 90 days immediately prior to the initiation of negotiations and a displaced homeowner who occupied the dwelling from which he or she moved for at least 90 but less than 180 days prior to the initiation of negotiations is eligible for this category of payments. Persons within this category may be eligible for either a Rental Assistance payment or Downpayment Assistance.
REPLACEMENT HOUSING PAYMENT ELIGIBILITY
10.4.1.2.4. COMPUTATION OF REPLACEMENT HOUSING PAYMENTS
10.4.1.2.5. DECENT, SAFE, AND SANITARY INSPECTION It is Federal policy not to make Replacement Housing payments for replacement housing which is not decent, safe, and sanitary (DSS). Before an RHP may be made, the displacing agency must inspect the actual replacement dwelling to assure that it meets the criteria discussed in the chapter on Replacement Housing Standards. Replacement housing also must be inspected to determine its acceptability before referring it to displaced persons. When inspecting potential replacement housing you should examine it carefully for DSS problems. Areas meriting particular attention include:
In order to avoid problems, the agency should caution displaced persons not to become financially obligated to purchase (or rent) a replacement dwelling unit until the inspection has been performed. Often sales or rental agreements may be written subject to a DSS inspection by the displacing agency. If the dwelling is found not to be DSS, the displaced person should be informed of the specific deficiencies noted. The agency's records should contain documentation of the DSS inspection. Most agencies have developed and use a pre-established form for this purpose. Sometimes a dwelling with DSS deficiencies is still desirable to the displaced person and the agency. Such dwellings may be used as replacement housing if the deficiencies are corrected. The cost to correct DSS deficiencies may be included as a part of the price differential payment to the extent that they do not bring the cost of the dwelling above the price of the comparable. Care should be taken that the cost of repairs or improvements undertaken for the desires of the displaced person but are not necessary to correct DSS deficiencies are not included in the RHP computation.
10.4.1.2.6 OCCUPANCY REQUIREMENTS- SPECIAL CIRCUMSTANCES Sometimes special circumstances make it impossible for a displaced person to satisfy the occupancy requirements of an RHP. The Uniform Act regulations provide that no displaced person shall be denied eligibility for a replacement housing payment solely because he or she is unable to meet occupancy requirements due to reasons beyond their control. This includes special circumstances such as a disaster, an emergency, or an imminent threat to public health or welfare, as determined by the President or the Federal agency funding the project or other reasons, such as military service or hospitalization. When failure to meet the occupancy requirement is as a direct result of the special circumstance, the occupancy requirement may be considered to be satisfied. For example, consider several persons permanently displaced by the acquisition of their dwellings for construction of a bridge approach. In this case, a flood both damaged the bridge and forced the occupants from their homes. Due to the flood, they were not in physical occupancy of their dwellings on the date of initiation of negotiations. Since this was beyond their control, their eligibility for an RHP should not be adversely affected. Similarly, if a displaced person fails to occupy an otherwise satisfactory replacement dwelling within one year because of being in the hospital for three months, RHP eligibility should not be affected. 10.4.1.2.7. DISASTER RELATED INSURANCE PROCEEDS To the extent necessary to avoid duplicate compensation, the amount of any insurance proceeds received by a person in connection with a disaster related loss to the displacement dwelling shall be included in the acquisition cost of the displacement dwelling when computing the price differential. 10.4.1.2.8. CONVERSION OF PAYMENT A displaced person who initially rents a replacement dwelling and claims and receives a rental assistance payment retains eligibility for a Purchase Supplement or Downpayment Assistance Payment, if applicable, provided he/she purchase and occupies a DSS replacement dwelling during the l-year eligibility period. Such a Purchase Supplement or Downpayment Assistance payment shall be computed in the usual manner but shall be reduced by the amount of the Rental Assistance payment already received. 10.4.1.2.9. PAYMENT AFTER DEATH A replacement housing payment is personal to the displaced person. If he or she lived alone and dies and the complete payment has not been made, there will be no additional payments to heirs or assigns, except:
10.4.2. NON-RESIDENTIAL RELOCATION PAYMENTS Non-residential relocation payments are intended to compensate a business, farm, or a non-profit organization (NPO) caused to move by a highway project receiving Federal financial assistance. Payments may be made to owners, owner/occupants, and tenants. These payments may be subdivided into two types: moving expense payments and reestablishment expense payments. As with residential payments, each payment has its own set of specific requirements. 10.4.2.1. NON-RESIDENTIAL MOVING EXPENSE PAYMENTS Non-residential moving expense payments are designed to compensate for the moving and related costs which a person incurs as a result of having to move his or her business, farm, or a non-profit organization (or to move personal property) for a Federal or federally-assisted project. They include items such as the cost of transporting personal property from the displacement to the relocation site, packing and unpacking, the cost of storage, if necessary, and other related costs. There are two methods for computing non-residential moving expense payments, the actual cost payment method and the in-lieu payment method. A displaced business which chooses the actual cost method also may be eligible for a separate reestablishment payment; however, a business choosing the in-lieu payment method is not. The in-lieu payment is just that, in lieu of all other moving costs, and has special requirements and not all displaced businesses will be eligible. A displaced business which is eligible may choose either of these payment methods. (We have provided below lists of eligible and ineligible non-residential moving and related costs) ELIGIBLE NON-RESIDENTIAL MOVING EXPENSES
INELIGIBLE MOVING AND RELATED EXPENSES
10.4.2.1.1. ACTUAL COST PAYMENT The non-residential actual cost payment, like its residential counterpart, is based on the actual, reasonable cost of moving and related costs. This means that to be reimbursed costs must be actually incurred and must be reasonable, i.e., typical of the amounts charged in the area for similar moves. In addition, the items of cost which are included in the claim for reimbursement must be necessary to accomplish the move. When making determinations concerning reasonableness and necessity, the agency should use common sense and good judgement. There is no fixed dollar ceiling on payments for actual moving expenses, but the payment may not exceed the actual cost of the moving and related expenses. An actual cost move may be carried out by a commercial mover or by the displaced person, that is, a self-move. In either case, to be certain that the move takes place at a reasonable cost, an inventory (a detailed itemization of personal property to be moved) should be prepared. The relocation agent should verify the accuracy of the inventory and use it as a basis of comparison with bids or estimates and eventual requests for payment. Many business moves are quite simple and straight-forward, but some may be very complicated. If appropriate in the agency's estimation, the move should be based on written specifications. Specifications are detailed instructions concerning how and when the move is to be carried out and ensure that the displaced person, the agency, and the mover all agree on what is to take place. The relocation agent should observe the move as it takes place (full-time if large or complex enough to warrant it) to insure conformance with the specifications and reasonableness of cost. If the displaced person elects to use a commercial mover and the agency concurs, it is desirable to obtain bids or estimates, two if possible. This is the agency's responsibility! The agency may pay a reasonable amount for bid preparation, if it is necessary to do so to obtain adequate and reasonable bids. If necessary, the agency may pay the mover directly for the services. In any case, the costs claimed for reimbursement of an actual cost move must be supported by appropriate receipts or other records. Often a self-move is advantageous to both the displacing agency and the displaced person because of specialized knowledge or skills possessed by the latter. This knowledge or skill may be difficult to find in the local moving industry or available only at great expense, whereas the displaced person's employees may be able to carry out the move more efficiently and at their regular rates of pay, which may well result in lower costs. Reimbursement for a self-move is based on the actual cost incurred by the business for equipment and labor. Labor is to be charged at the actual rates paid by the business but not to exceed the rate charged by local moving firms for the same services. Charges for equipment owned by the business and used in the move should be prorated against its usual operating cost. It also is acceptable to pay for management time for overseeing the move. 10.4.2.1.2. ALTERNATE ACTUAL PAYMENT METHODS In certain situations moving equipment, supplies, and other items is undesirable from the displaced business point of view. Machinery may be obsolete with little remaining economic value. Materials, for example, gravel or sand, may be bulky and heavy and cost more to move than they are worth. Other items may be of little or no value to the business at its relocation site. In these circumstances, the agency may compute the payment for a move, or a distinct portion of a move, using an alternate method known as "direct loss of tangible personal property." Under this method, the personal property in question is not moved. Instead, it is appraised and put up for sale. The payment then is computed by: (1) subtracting the proceeds of the sale from the appraised value; and (2) adding the cost of the sale. However, the payment is limited to what it would have cost to move the item(s) in question. Alternatively, if an owner wishes not to move a piece of equipment but, rather, to replace it at the relocation site, he may do so. Under this method, called Substitute Equipment, the owner is paid the cost of the new equipment less the proceeds of the sale of the old equipment as above. Again, the payment is limited to what it would cost to move the equipment. While the business is required to make a good faith effort to sell the personal property on which it wishes to take a direct loss, the agency may determine in advance that there is no market for the property. In such cases, the property would be abandoned and the payment would be the lesser of the property's value for continued use or the cost to move it to the relocation site.
ELIGIBLE REESTABLISHMENT EXPENSES The following is a list of the expenses which are included under this payment. All such expenses must be reasonable and necessary for reestablishment in the judgement of the agency:
10.4.2.1.3. FIXED PAYMENT IN-LIEU OF ACTUAL MOVING EXPENSES (ILO)
Not all displaced businesses will be eligible for the ILO payment. In order to be eligible for the ILO, a displaced business or non-profit organization must meet specific criteria:
If, in its judgement, the application of these criteria create a hardship, the agency may use other, more appropriate criteria. 10.4.1.3. REPLACEMENT HOUSING OF LAST RESORT The Uniform Act requires that comparable, decent, safe, and sanitary replacement housing within a person's financial means be made available before that person may be displaced by a Federal or Federally-assisted program or project. When such housing cannot be provided under the provisions for Replacement Housing payments, the Act provides for Housing of Last Resort (HLR). HLR involves the use of payments in excess of statutory maximums or the use of other unusual methods of providing comparable housing. Some agencies have used HLR since the early 1970s, but many others have not. With the issuance of the government-wide common rule in 1986, HLR provisions became a part of the regulations for all covered agencies. In the 1987 amendments to the Act, Congress strengthened the HLR provisions but required case-by-case justification for the use of payments in excess of the statutory maximums. This requires the Agency to make a determination that there is a reasonable likelihood that the project cannot proceed to construction in a timely manner because a comparable replacement dwelling(s) will not be available to a person(s) to be displaced. High replacement housing costs have been encountered more frequently in recent years. The statutory payment limits, unchanged until 1987, were sufficient to rehouse almost all displaced persons in the early 1970s, but became increasingly inadequate thereafter. 10.4.1.3.1. PLANNING FOR HOUSING OF LAST RESORT When a project appears to include persons who cannot readily be moved using the regular relocation program benefits and/or procedures, i.e., when there is a unique housing need or when the cost of available comparable housing would result in payments in excess of the statutory payment limits ($22,500 or $5,250), you should consider using Housing of Last Resort. Of particular concern are large families, low-income persons (especially families), the elderly or handicapped, other persons with physical, social or emotional problems, tight or volatile housing markets, large older dwellings, a large number of substandard dwellings within the project area, and similar situations. As the preceding list makes apparent, the need for HLR cuts across economic lines and is not limited to displaced persons with low incomes. Using HLR effectively requires planning. The acquiring agency may wish to develop a plan delineating the needs of displaced persons, the proposed method(s) of providing necessary housing, and consideration of the needed level of funding. The plan is a guide for action. Early advance planning will provide sufficient time for the Agency to consider a broad range of possible HLR alternatives and to avoid costly delays in construction. Every effort should be made to identify potential HLR cases early. Some relocation agents have a tendency to postpone contacts with displaced persons with difficult housing needs. Knowing that HLR is a possibility may focus attention on a case early enough to enable the Agency to resolve the problem by the use of intensified but routine (non-HLR) relocation services. HLR should be used only when all regular relocation benefits and services are inadequate. The use of HLR to backstop an inefficient relocation operation is wasteful and, in addition, may be perceived as inequitable by persons who do not receive HLR benefits. HLR should not be a substitute for adequate lead time or appropriate relocation advisory services. The agency should obtain information about the needs, preferences, and intentions of the displaced person through in-depth interviews before planning housing solutions. There may be several possible solutions for each displaced person or group of displaced persons. Do not make assumptions about the acceptability of a particular housing proposal until all the options have been explored with the displaced person. After discussing HLR housing proposals with the displaced person and receiving their concurrence, the Agency should obtain their written consent before implementing the chosen solution. In the absence of a displaced person's written agreement, the potential exists for a substantial expenditure on a proposal (for the construction of a house, for example) which the displaced person later may prove unwilling to accept. Do not limit consideration of housing solutions to those that minimize the Agency's administrative involvement. People who are displaced often have unique needs and housing solutions may have to be creative and individualized in order to meet those special needs. Merely providing the displaced person with more money to spend on housing may be administratively simple but more expensive than other housing solutions and may not address housing needs other than affordability. In addition, try to plan a solution that will accommodate a displaced person's long-term housing needs. Persons receiving last resort assistance often are in tenuous positions and may find it difficult to maintain their situation after some period of time passes. One way of providing greater stability for some persons is to assist them to become homeowners. We encourage this approach when it is appropriate and concurred in by the displaced person. The displaced person likely will need assistance in obtaining financing. For example, special counseling may be necessary in order to help the displaced person qualify for a mortgage. Perhaps the Agency itself will have to provide financing or structure a solution allowing the displaced person to later qualify to purchase, e.g., to offer the dwelling initially for rent with an option to purchase agreement that would apply a portion of the rent to a downpayment. A number of other arrangements are conceivable. Coordination with other agencies may be helpful and opportunity for cooperative agreements should be explored. Local agencies with programs involving housing such as Public Housing Authorities may be in a better position to provide and manage housing than the displacing agency. HLR projects may be contracted out to other agencies for construction as well as management. However, the displacing agency always retains responsibility for the outcome of the relocation. 10.4.1.3.2. METHODS FOR PROVIDING HOUSING OF LAST RESORT Agencies have broad latitude in how to use HLR authority. Housing of Last Resort may be provided on an individual basis (often a single case on a project), for an entire project, or anything in-between. Innovative methods are encouraged. HLR is a tool which is intended to respond to difficult or special needs and, in many cases, the best solution may be the one that does not fit a common mold. Whatever the method, it should be cost-effective. We have identified below some methods of providing HLR:
There are many variations and combinations of techniques and methods that can be used to provide housing. HLR should be considered a useful administrative tool which can free the process of providing replacement housing from the regular procedural constraints. It is a tool that invites innovation and creativity in solving unique or difficult replacement housing problems. 10.4.1.3.3 USE OF SOUND BUSINESS PRACTICES IN HOUSING OF LAST RESORT Housing of Last Resort is a mechanism utilizing extraordinary funding or other actions to provide comparable, decent, safe, and sanitary housing. It is essential that all such actions be conducted in a cost-effective manner and in conformance with sound business practices. In particular, you should make every effort to assure that funds are utilized for the intended purpose (housing) to the maximum extent feasible. For example, if the agency uses HLR to subsidize rent, an escrow account may be established, payable on a periodic basis to the displaced person, jointly to the displaced person and the landlord, or to some other appropriate person, as agreed to by the displaced person. Do not set up accounts to be paid to landlords or other persons without their written agreement to continue to provide the selected housing, maintained in accordance with DSS standards, for the displaced person for the entire 42 months. Of course, such accounts should be established only with the full knowledge and concurrence of the displaced person. Also be aware that the personal circumstances of a displaced person can change after relocation into HLR. A subsequent move may be necessary due to a job opportunity in a distant location, a family illness, loss of employment, or other similar reasons. The HLR method should not freeze a person into a dwelling. On the other hand, the agency cannot incur additional costs to subsidize a subsequent move which is not project related. To the extent feasible, the agency should be willing to make benefits transferrable if necessary. Sometimes a displaced renter may move or the dwelling may no longer be available. In the event of such changes, the escrow agent should be instructed to promptly notify the agency. Since the full amount of the HLR rental subsidy vested with the displaced person when he or she occupied DSS replacement housing, the remainder can be paid to him or her or the agency can assist in locating other housing. 10.5. MOBILE HOMES Mobile homes present one of the most complex and difficult situations with which displacing agencies must cope. Mobile homes differ from conventional housing in that their status as real or personal property varies from State to State. Also, in a mobile home situation, there is a separation between the dwelling and the site it occupies which is not present with a conventional dwelling. For example, one may own a mobile home but rent its site or vice versa. These differences present the displacing agency with two general problems. The first involves a decision it does not have to make with conventional housing -- whether to acquire or move the dwelling from which displacement occurs. The second is a major increase in the complexity of determining the relocation payments for which the displaced person is eligible. In addition, mobile homes typically will have a disproportionate number of low income, elderly, and other occupants who are difficult to move successfully. For all these reasons, dealing with mobile home moves will require the maximum in planning, preparation, patience, and assistance. 10.5.1. THREE BASIC MOBILE HOME FACTORS As noted above, moves from mobile homes present two special problems, a decision on whether to acquire or move the mobile home and increased complexities concerning relocation payments. These problems, in turn, are affected by three basic considerations:
10.5.1.1. REALTY VERSUS PERSONALTY The first consideration when dealing with mobile home moves is to determine the status of the mobile home as realty or personalty. If the acquiring agency is a State or local agency, or any other entity, the status of the mobile home is determined in accordance with the laws of the State in which it is located. Some State laws allow mobile homes to be considered as either realty or personalty; others do not address the issue. Some State laws provide that mobile homes are considered realty if the wheels have been removed and the mobile homes have been attached in a permanent fashion to the site. Other State laws consider mobile homes as personalty regardless of how they are attached to the land. The status of mobile homes as realty or personalty is important because, depending on State law, it may affect the agency's decision whether to acquire the mobile home or move it. In general there are fewer problems associated with acquiring a mobile home as realty, especially if the site is owned by the owner-occupant of the mobile home. If acquisition is permitted under State law, we recommend that you acquire. Whatever its requirements, State law concerning the status of mobile homes should be considered at the time the appraisal is made. 10.5.1.2. MOBILE HOME VERSUS SITE As discussed above, mobile homes, unlike their conventional counterparts, may be separated from their sites, i.e., one may own a mobile home but rent its site, or vice versa. Thus it is useful to think of a mobile home move as consisting of two parts, one dealing with the mobile home itself and one dealing with the site. Fortunately, in terms of the decision whether to acquire or move, one part is simple to think about. The site is always acquired. However, for the mobile home (dwelling) part of the move, the matter becomes somewhat more complicated because a mobile home may be either acquired or moved. This decision will be influenced by a number of factors, including State law and the owner's (also sometimes the tenant's) wishes. There are four distinct possibilities: Mobile Home (Dwelling): Acquire or Move
Since a mobile home move often has two distinct parts, the mobile home itself and the site, it often is necessary to compute two separate replacement housing payments. For example, these payments might each reflect a different status (owner or tenant), since a person might own the mobile home but rent the site or vice versa. 10.5.1.3. OWNER VERSUS TENANT As with conventional homes, replacement housing payments for persons displaced from mobile homes differ based on status as homeowner or tenant. For RHP purposes, the occupant's status as an owner or a tenant is determined by his/her ownership or tenancy of the mobile home itself (not of the site on which it is located). Thus, an occupant of a mobile home who owns the mobile home and its site and an occupant who owns the mobile home but not the site, are both homeowners for RHP purposes and are potentially eligible for an RHP of $22,500. Conversely, an occupant who owns the site but rents the mobile home is a tenant for RHP purposes and is eligible for an RHP not to exceed $5,250. The computation of actual payments is discussed below.. Eligibility for RHPs also is affected by the length of time the displaced person has occupied the mobile home and the displacement site prior to the initiation of negotiations. This parallels the requirements for occupants of conventional dwellings. 10.5.2. MOVING COSTS AND RELATED EXPENSES Any displaced person who owns and/or occupies a mobile home located within the required acquisition site is entitled to reimbursement of moving costs and related expenses for moving the mobile home if it is considered personal property, and/or for moving the contents of the mobile home. There are many possible variations in payment computations for mobile home owners and occupants. These computations normally apply only to mobile homes. (However, they also may apply to boats or other "detachable" structures used as dwellings.) In order to facilitate payment computations, some, though not all, of the mobile home situations which may occur are discussed below. 10.5.2.1. MOVING EXPENSES FOR MOBILE HOMES OCCUPIED BY OWNERS An owner-occupant of a displaced mobile home classified as personal property and not acquired by the displacing agency may be reimbursed for moving and related expenses on an actual cost basis, providing the agency determines the costs are reasonable and necessary. If an owner-occupant is reimbursed for the cost of moving the mobile home and any necessary related expenses, he/she is not eligible to receive a replacement housing payment for the mobile home itself. However, he/she may be eligible for a replacement housing payment in connection with the rental or purchase of a replacement site, depending upon the length and type of occupancy on the displacement site. 10.5.2.2. MOVING EXPENSES FOR MOBILE HOMES WITH NON-OCCUPANT OWNERS A non-occupant owner of a displaced mobile home that is not acquired may be reimbursed for the actual cost of moving the mobile home from the site based on moving cost findings or estimates, documented self-move, or a commercial move. The use of business move procedures is proper in such a case because the mobile home is personalty used for a business. Since the owner in this case is not an occupant, there is no eligibility for a replacement housing payment. 10.5.2.3. MOVING EXPENSES FOR MOBILE HOMES OCCUPIED BY TENANTS A tenant of a displaced mobile home may be reimbursed for moving his/her personal property on an actual cost basis or on the basis of a moving expense schedule. The latter payment depends on the number of rooms of furniture and whether the mobile home is rented furnished or unfurnished. (See the Appendix at the end of this Section for a copy of the current Federal Highway Administration Moving Expense Schedule which is published annually in the Federal Register). You should note that for a mobile home there may be two moving expense payments, one for the owner to move the mobile home, and one for the tenant to move furnishings and other personal property. This also may occur for a conventional dwelling (e.g., when a non-occupant owner has personal property to be moved), but much less frequently. 10.5.3. ELIGIBLE MOVING EXPENSES The following are the moving and related expenses eligible for reimbursement:
10.5.4. REPLACEMENT HOUSING PAYMENTS A Replacement Housing payment for a person displaced from a mobile home usually is comprised of a computation for a comparable mobile home and a computation for a comparable mobile home site, or a combination of the two. If the displaced person owns both the mobile home and the mobile home site, the agency should endeavor to locate a mobile home on a site, as a unit for comparison purposes, similar to the comparison of conventional dwellings. The first step is to compare the value or the rent of the displacement mobile home to the cost or the rent of a comparable replacement mobile home and compute a price differential offer or a rental assistance offer, depending upon the ownership or tenancy status of the mobile home occupant. The second step is to compare the displacement site to a comparable replacement site and compute a price differential offer or a rental assistance offer depending upon the ownership or tenancy of the mobile home site. 10.5.4.1. 180-DAY OWNER-OCCUPANTS A displaced person who owned and occupied a mobile home on the displacement site for at least 180 days immediately preceding the initiation of negotiations for the acquisition of the mobile home and/or the site is eligible for a Purchase Supplement payment (composed of a Price Differential, Incidental Expenses, and, if applicable, a Mortgage Interest Differential) not to exceed $22,500. The payment is computed using a replacement mobile home and site. If a comparable mobile home and site is not available, you may use an appropriate conventional dwelling. The total payment for both the replacement mobile home and site may not exceed $22,500 (unless housing of last resort is required). If the mobile home is realty and is to be acquired, it will be appraised to determine its value and the acquisition price for the mobile home and its site may be used as the basis for computing the Price Differential portion of the payment. At his or her option, a displaced owner-occupant may choose an alternate payment for rental assistance (RAP). This payment may not exceed $5,250 and will be computed using the market rent of the acquired mobile home and site as the base monthly rent. If a displaced person chooses to purchase a replacement mobile home and rent the site or vice versa, the payment may be computed easily by combining the appropriate mobile home or site computation from above.
Ordinarily, if the mobile home is personalty it will be moved. If an owner-occupant disagrees with an Agency determination that a mobile home which is considered personalty can be relocated after making reimbursable repairs or modifications and insists on receiving a replacement housing payment, the Agency may use an alternate comparability procedure. The Agency may use as the cost of a comparable replacement mobile home, the sum of: 1. The value of the displaced mobile home; 2. The estimated cost of any necessary repairs or modifications; 3. The estimated cost of moving the unit to replacement site and, 4. Any necessary related expenses.
From this total, the value of the displaced mobile home is deducted to arrive at the replacement housing payment. If the payment is accepted, the owner will still be responsible for removing the mobile home from the project site. Sometimes the mobile home is considered personalty, but the acquiring agency determines it cannot be moved because:
If the mobile home is owner-occupied, and if State law permits, the Agency may acquire the mobile home and use the purchase price as a base for determining the replacement housing payment. If the Agency cannot purchase the mobile home under State law because it is considered personalty, the Agency should use the salvage value or trade-in value of the mobile home, whichever is higher, as the acquisition cost of the mobile home for purposes of computing the replacement housing payment. (However, title to the mobile home does not pass to the Agency and the displaced owner remains responsible for moving the unit off the acquired land. If the mobile home is abandoned in place, the Agency may remove it in accordance with State law.
10.5.4.2. TENANTS AND 90-179 DAY OWNER OCCUPANTS A displaced tenant or short-term owner-occupant is eligible for a replacement housing payment if:
This payment may not exceed $5,250 for either rental assistance or downpayment assistance.
The Replacement Housing payment for both the 90-day tenant and the 90-179 day owner-occupant will be based on a Rental Assistance payment for a comparable replacement mobile home and site, or for a conventional dwelling if no comparable mobile homes and sites are available. If the 90-179 day owner-occupant decides to purchase, a downpayment assistance payment would be computed in the same manner as a Purchase Supplement for a 180-day owner. The computed payment plus estimated Incidental Expenses and increased Mortgage Interest (if any) will set the upper limits for assistance in purchasing a replacement mobile home and site. The total may not exceed $5,250 (unless housing of last resort is required). If a tenant elects to remain a tenant in the subject mobile home at a replacement site, he/she may be eligible for a Rental Assistance payment (for the site), providing the relocated mobile home is decent, safe, and sanitary and there is an increase in the rent at the replacement site. However, the payment may not exceed the agency's computation based on a comparable mobile home and site.
At his/her option, a displaced tenant also may be eligible for downpayment assistance to assist in the purchase of a replacement mobile home and site, or a conventional dwelling. The total downpayment may not exceed $5,250 or the computed rental assistance payment whichever is in accordance with the displacing agency's regulations for RHP's for tenants. Another example: The displaced person is a 90-179 Day Owner-Occupant who owns the mobile home but rents the site. The mobile home cannot be acquired because it is considered to be personal property. Also, due to its age and deteriorated condition, the Agency has determined that the mobile home cannot be relocated without substantial damage or unreasonable cost. The displaced person is eligible for a payment for a replacement dwelling and a payment for a replacement site. For the dwelling portion, he or she may elect either downpayment assistance to purchase replacement housing or a rental assistance payment if he/she chooses to rent. Similarly, for the site part of the payment, he/she may elect either downpayment or rental assistance.
No matter which of these options the displaced person chooses, the maximum RHP for which he/she may be eligible is $5250. Payment may exceed $5,250 only if housing of last resort is needed. The RHP computation should be based on a replacement mobile home and site, or on a conventional dwelling if there are no mobile homes available. If the displaced person elects to purchase a replacement mobile home and purchase or rent a replacement site, the maximum payment for downpayment assistance would be limited to the amount he or she would have received as a 180-day owner up to $5,250, whichever is less. Salvage value or trade-in value (whichever is higher) would be used as the acquisition price in the computation. Since the mobile home is considered personal property, it cannot be acquired. If the displaced person elects to receive a downpayment or a rental assistance payment, he/she will still own the mobile home and must remove it from the project at his/her own expense (unless there is an agreement with the displacing agency to abandon the mobile home in place). The displaced person cannot receive both a replacement housing payment for the mobile home and a moving cost payment to relocate the mobile home.
10.5.5. MOVES BETWEEN A MOBILE HOME AND A CONVENTIONAL DWELLING There will be some cases when a displaced mobile home owner-occupant will prefer to purchase and relocate to a conventional dwelling. In this case the maximum price differential computation will be based on a comparable mobile home and site.
Similarly, a 180-day owner who occupies a conventional dwelling may decide to purchase a mobile home and site, or perhaps rent a replacement site. The purchase supplement would be computed in the usual manner using a conventional dwelling. If the displaced person purchases a DSS mobile home and a mobile home site, he or she can receive a purchase supplement up to the amount of the computed offer plus incidental expenses and an increased interest payment if applicable. This total amount may not exceed $22,500. 10.5.6. REPLACEMENT HOUSING PAYMENT FOR A SITE ONLY An owner-occupant of a mobile home may be eligible for a replacement housing payment for a replacement site even though the mobile home was moved and moving costs were reimbursed. The computation for 180-day owner-occupants cannot exceed $22,500 for a purchased site comparable to the acquired site. The computation for a short-term owner-occupant cannot exceed $5,250 for a replacement rental site. 10.5.7. REPLACEMENT HOUSING OF LAST RESORT Replacement Housing of Last Resort should be utilized when:
If the rental assistance offer exceeds $5,250, the displaced person may use the computed amount to rent a replacement mobile home and site or as a downpayment for a DSS replacement dwelling of his or her choice. Chapter 9 | Contents | Chapter 11
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