[Federal Register Volume 70, Number 2 (Tuesday, January 4, 2005)]
[Rules and Regulations]
[Pages 590-638]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-6]
[[Page 589]]
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Part V
Department of Transportation
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Federal Highway Administration
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49 CFR Part 24
Uniform Relocation Assistance and Real Property Acquisition for Federal
and Federally-Assisted Programs; Final Rule
Federal Register / Vol. 70, No. 2 / Tuesday, January 4, 2005 / Rules
and Regulations
[[Page 590]]
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DEPARTMENT OF TRANSPORTATION
Federal Highway Administration
49 CFR Part 24
[FHWA Docket No. FHWA-2003-14747]
RIN 2125-AE97
Uniform Relocation Assistance and Real Property Acquisition for
Federal and Federally-Assisted Programs
AGENCY: Federal Highway Administration (FHWA), DOT.
ACTION: Final rule.
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SUMMARY: The FHWA is revising the regulation that sets forth
governmentwide requirements for implementing the Uniform Relocation
Assistance and Real Property Acquisition Policies Act (Uniform Act).
These changes will clarify present requirements, meet modern needs and
improve the service to individuals and businesses affected by Federal
or federally-assisted projects while at the same time reducing the
burdens of government regulations. The regulation has not been fully
reviewed or updated since it was issued in 1989. These amendments to
the Uniform Act regulation will affect the land acquisition and
displacement activities of 18 Federal Agencies including the new
Department of Homeland Security.
DATES: Effective Date: February 3, 2005.
FOR FURTHER INFORMATION CONTACT: Mamie L. Smith, Office of Real Estate
Services, HEPR, (202) 366-2529; Reginald K. Bessmer, Office of Real
Estate Services, HEPR, (202) 366-2037; or JoAnne Robinson, Office of
the Chief Counsel, HCC-30, (202) 366-1346, Federal Highway
Administration, 400 Seventh Street, SW., Washington, DC 20590. Office
hours are from 7:45 a.m. to 4:15 p.m., e.t., Monday through Friday,
except Federal holidays.
SUPPLEMENTARY INFORMATION:
Electronic Access
An electronic copy of this document may be downloaded by using a
modem and suitable communications software from the Government Printing
Office's Electronic Bulletin Board Service at (202) 512-1661. Internet
users may also reach the Federal Register's home page at: http://www.archives.gov and the Government Printing Office's database at:
http://www.gpoaccess.gov/nara/.
Background
Title 49, CFR, part 24 implements the Uniform Relocation Assistance
and Real Property Acquisition Policies Act of 1970, as amended, 42
U.S.C. 4601 et seq., (the Uniform Act). The Uniform Act applies to all
acquisitions of real property or displacements of persons resulting
from Federal or federally-assisted programs or projects and affects 18
Federal Agencies. This regulation has not been comprehensively revised
or updated since its initial publication in 1989.
The FHWA, as the lead Federal Agency, hosted an all-Agency meeting
in 2001 to begin discussions about a comprehensive review of this
regulation because of numerous requests from various Agencies to update
49 CFR Part 24. The FHWA worked with the 18 other Federal Agencies to
form a Federal Interagency Task Force to explore the need to revise
this regulation. The FHWA then hosted five nationwide public listening
sessions to gather public input into the need for regulatory reform.
After receiving public input, working with the Interagency Task
Force and incorporating recommendations from all 18 Federal Agencies,
the FHWA published a notice of proposed rulemaking (NPRM) on December
17, 2003 (68 FR 70342). The NPRM proposed revisions to the Uniform Act
regulation that would clarify present requirements, meet modern needs
and improve the service to the individuals and businesses affected by
Federal or federally-assisted projects while at the same time reducing
the burdens of government regulations. An extensive history of the
Uniform Act's implementation, and a comprehensive narrative outlining
the efforts to update this regulation is discussed in the preamble to
the NPRM in great detail.
Public Meetings
During the comment period to the NPRM, the FHWA hosted three
additional public meetings (in Washington, DC; Atlanta, GA; and
Lakewood, CO) to discuss the proposed changes to the regulation as
outlined in the NPRM. The meetings were held to assure that every
opportunity was offered to encourage additional public and stakeholder
comment on the proposed changes. A total of 60 individuals and
organizations attended the three public meetings. Also, during the
comment period, the FHWA posted on its Web site a pre-addressed comment
form for easy access and mailing to the docket.
Discussion of Comments Received to the Notice of Proposed Rulemaking
(NPRM)
In response to the NPRM published on December 17, 2003, the FHWA
received 775 comments to the docket. The 775 comments were received
from 80 individual commenters. The commenters included a variety of
groups and organizations, such as local public Agencies, State Highway
Administrations, private real estate and environmental consulting firms
and interested individuals.
Of the 775 docket comments, 62 were positive and supportive of the
proposed changes and 58 were on subjects where no change had been
proposed. Thirty comments were programmatic questions and will be
answered through a follow-up question and answer memorandum, and 26
comments requested increases in statutory limits that cannot be
addressed in the regulations. On March 3, 2004, all 18 Federal Agencies
were invited and encouraged to send representatives to an Interagency
Federal Task Force (IFTF) meeting to review and respond to the 775
comments. Of the 18 Federal Agencies, 12 responded by sending one or
more representatives. Following the initial meeting, four additional
IFTF meetings were held and all 775 comments were categorized into
subparts discussed individually, and evaluated. The FHWA, as Lead
Agency, would like to thank the Department of Housing and Urban
Development (HUD) who worked closely with FHWA to organize and share in
hosting the work group meetings to assure that all comments were
carefully considered.
Section-by-Section Discussion Changes
Subpart A--General
Section 24.1(b)
One commenter indicated that Sec. 24.1(b) should include an anti-
discrimination purpose.
A number of Federal statutes (notably the Civil Rights Acts of 1964
and 1968) and Executive Orders apply to Agencies carrying out Federal
or federally-assisted programs, and prohibit discrimination on the
basis of race, color, sex, age, religion, national origin or
disability. These legal authorities are self-executing and do not
require specific mention in a rule implementing the Uniform Act to find
effect. Any explicit listing of such provisions in this regulation runs
the risk of inadvertent omission, creating the implication that any
legal authority not referenced is somehow inapplicable.
Section 24.2 Definitions and Acronyms
Two commenters suggested various formatting changes. One suggested
that clarity and readability would be improved by stating each defined
term only once, rather than entry as a heading, followed by repeating
the term
[[Page 591]]
in the definition. Another suggested that we adopt simplified
formatting.
We appreciate these comments, however, we will keep the same format
in this final rule.
Section 24.2(a) Personal Property
One commenter requested that we add a definition of personal
property.
We considered the request, however, after surveying the varying
State laws that define personal property, we have determined that it
would not be feasible to provide a single definition that would fit
within all State laws. Therefore, whether an item is personal property
or real property will continue to be left to State law.
Section 24.2(a)(5) Citizen
One commenter requested that we define or clarify the term
``noncitizen national'' used in the definition of ``citizen'' in Sec.
24.2(a)(5).
The term ``noncitizen national'' was added to the definition of
citizen in 1999 (64 FR 7130). The term includes persons from certain
United States possessions, such as American Samoa, who are considered
citizens for purpose of this part. Accordingly, no change in the final
rule is necessary.
Section 24.2(a)(6)(ii) Comparable Replacement Dwelling
Ten comments were made on the proposal to remove the phrase ``style
of living'' from the definition of comparable replacement dwelling. The
majority of the comments were in favor of removing the phrase; however,
two commenters were concerned that the displaced person's rights would
be diminished if the phrase is deleted.
We carefully considered removing ``style of living'' from the
definition of comparability, and we determined that the displaced
person would not suffer any erosion of protections provided by existing
comparability requirements. The phrase ``style of living'' has
sometimes been misused and has proven to be confusing.
Occasionally, the phrase has been used out of context and
interpreted to require identical unique features found in acquired
dwellings. In such cases, the standard for replacement housing has been
raised to a level above ``comparable.'' This interpretation can make it
nearly impossible to find appropriate replacement housing and could
result in replacement housing payments greater than those intended by
the Congress.
A more complete explanation can be found in the preamble to the
NPRM (68 FR 70344). The Congress recognized that strict and absolute
adherence to an exhaustive, detailed, feature-by-feature comparison can
result in rigidities. We believe other criteria currently under the
definition of comparability will adequately cover the factors covered
by ``style of living'' and, therefore, have not included this phrase in
the final rule.
Section 24.2(a)(6)(viii) Deductions from Rent
One commenter objected to the proposed addition of language in
Sec. 24.2(a)(6)(viii) that would have allowed rent owed to an Agency
to be taken into account when determining whether a comparable
replacement dwelling is within a displaced person's financial means.
The comment noted that State landlord/tenant laws normally govern
disputes over rent, and that Sec. 24.2(a)(6)(viii) should not, in
effect, supercede the tenant protections contained in such laws in
determining a displaced person's financial means.
We agree with this comment, and accordingly have not adopted the
language that would have considered any rent owed the Agency in
determining financial means.
Section 24.2(a)(6)(viii) Financial Means
The Uniform Act requires that comparable replacement dwellings must
be ``within the financial means'' of a displaced person. This term is
defined further within the definition of comparable replacement
dwelling. The NPRM proposed simplifying the definition of financial
means by consolidating it from three paragraphs to a single paragraph.
No change in meaning was intended.
We received 12 comments on this proposed change. The commenters
expressed two major concerns. First, several comments indicated that
consolidating the separate paragraphs relating to owners and tenants
was confusing and might, in some cases, result in changes to
replacement housing payments.
After further consideration, we believe these comments are correct,
and, accordingly, have not adopted the proposed consolidation. (We
have, however, deleted some redundant language relating to welfare
assistance programs that designate amounts for shelter and utilities,
since this is now addressed in Sec. 24.402(b)(2)(iii).)
Secondly, because of other related changes in the NPRM, several
commenters stated that the proposal would no longer adequately address
the benefits to be provided to a person who is not eligible to receive
replacement-housing payments because of a failure to meet the necessary
length of occupancy requirements. Such persons are still entitled to
receive comparable replacement housing within their financial means.
Besides proposing to simplify the description of financial means,
the NPRM also proposed changing the way the rental replacement housing
payment would be computed by revising the description of ``base monthly
rent'' in Sec. 24.402(b)(2), and removing the reference to 30 percent
of income in Sec. 24.404(c)(3) (which describes the eligibility of
persons that fail to meet the length of occupancy requirements). The
later two changes have been adopted, as discussed further in this
preamble.
We agree that the proposed changes left it unclear as to the
benefits that were to be provided to persons who failed to meet length
of occupancy requirements. Accordingly, we have retained a paragraph
(Sec. 24.2(a)(6)(viii)(C)), within the description of financial means,
that addresses those persons, described in Sec. 24.404(c)(3), who do
not meet length of occupancy requirements. It is similar to the current
provision, and provides that the payment to such persons shall be the
amount, if any, by which the rent at the replacement dwelling exceeds
the base monthly rent described in Sec. 24.402(b)(2), over a period of
42 months.
Section 24.2(a)(6)(ix) Subsidized Housing
Several commenters took issue with the proposed change to apply a
government housing subsidy program's unit size restrictions when
providing comparable replacement housing.
It appears that several of the commenters did not understand how
the government subsidy programs work. The choice of a replacement
dwelling is always left to a displaced person, but a displaced tenant's
eligibility for relocation assistance is premised upon the selection of
a decent, safe and sanitary ``comparable'' dwelling. The existing
regulations have long provided that a comparable dwelling, in the case
of a person displaced from housing receiving certain project-based or
voucher based subsidies, is another dwelling unit receiving the same or
a similar subsidy.
In such cases the HUD program requirements for subsidized housing,
may limit the unit size of available subsidized housing by applying a
determination as to a family's current needs, even though the
displacement dwelling may have been larger. This final rule
acknowledges these requirements, and provides in Sec. 24.2(a)(6)(ix)
that the requirements of government housing assistance
[[Page 592]]
programs, relating to the size of the dwelling unit that may be
provided, apply when such housing is used as a comparable replacement
dwelling.
A person displaced from a subsidized unit may elect to relocate to
housing available on the private market without subsidy, but the
available relocation payment will be limited by a computation using a
comparable subsidized unit. In most cases, the long-term housing
subsidy available to someone displaced from a subsidized unit, will be
more advantageous than a relocation payment based on the selection of a
dwelling available on the private market. The relocation payment for a
dwelling on the private market is limited to a rental differential for
a 42-month period by the Uniform Act.
Section 24.2(a)(8)(ii) Decent, Safe and Sanitary
Twenty comments were received concerning the inclusion of standards
relating to deteriorated paint or lead-based paint in the definition of
``decent, safe, and sanitary dwelling'' in Sec. 24.2(a)(8). While all
of these comments were favorable, there is no legal authority for
mandating these standards in connection with the referral to comparable
private market replacement housing under the Uniform Act. Accordingly,
this language has been removed from the list of the mandatory elements
of ``decent, safe, and sanitary'' replacement housing appearing in this
regulation. Instead, we have included in appendix A a suggestion that
such standards may be required by local housing and occupancy codes,
and may, in any event be highly desirable in protecting the health and
safety of displaced persons and their families.
Section 24.2(a)(8)(iv) Housing and Occupancy Codes
Of the seven comments received on Sec. 24.2(a)(8)(iv) having to do
with using local housing and occupancy codes to determine whether the
unit is decent, safe and sanitary, most were concerned with determining
the number of rooms and living space per individual. One commenter
requested that the FHWA set a minimum number of square feet in a
bedroom for each occupant as well as set an age standard for bedrooms
occupied by siblings of opposite gender.
The protection of the public health, safety and welfare is an
essential power of a sovereign government specifically reserved to the
States. Accordingly, this regulation references local housing and
occupancy codes as the primary source for defining ``standard''
housing. (In the case of certain federally subsidized replacement
housing, federally-issued ``housing quality standards'' may be employed
where such codes do not exist or are not applied to such housing.)
As was noted in the preamble to the NPRM, the existing regulatory
policy on this subject would apply only in the absence of local codes.
This has been clarified in Sec. 24.2(a)(8)(iv). Questions of whether
contrary or more restrictive housing and occupancy standards than those
found in a local code, imposed by State law, must be deemed to override
these local standards must be determined as a matter of State law by
courts of competent jurisdiction or by the State's Attorney General,
and cannot be addressed in these regulations.
Section 24.2(a)(8)(vi) Egress to Safe Open Space
We received three comments concerning the removal of the
requirement that replacement housing units have two means of egress
when replacement units are on the second story or above and have direct
access to a common corridor. One was in favor of the change, a second
was uncertain as to the purpose of the requirement and another was
against the change for fear of the safety risks to the displaced
person.
This is an area best handled through local fire and building codes
and does not require Federal guidelines to assure the safety of
displaced persons. There was overwhelming support for removing the
requirement from our five national Public Listening Sessions that we
held leading up to preparations of the NPRM. Therefore, no change was
made to the language proposed in the NPRM.
Section 24.2(a)(8)(vii) Disability
Thirteen commenters requested that the definitions of Comparable
Replacement Dwelling and Decent Safe and Sanitary Dwelling (and the
corresponding provisions of appendix A) go into more detail regarding
the needs of persons with disabilities, as well as a variety of
disabilities.
Because the needs of persons who are disabled are addressed by
other Federal or local statutory and regulatory requirements, which may
or may not apply to any individual project which triggers the Uniform
Act, we believe it is unnecessary to elaborate further in this rule
except as noted in appendix A. The final rule addresses the need to
accommodate the displaced person's needs in terms of unit size,
location, access to services and amenities, reasonable ingress, egress
or use of a replacement unit, and therefore, we do not believe
additional detail is necessary.
We agree that there is a need to revise some of the language in
appendix A, Sec. 24.2(a)(8)(vii) to address the physical attributes of
replacement housing for persons with physical disabilities beyond those
dependent on a wheelchair. Therefore, we have broadened the language in
the final rule to include persons with a physical impairment that
substantially limits one or more of the major life activities of such
individual. We have not addressed the needs of other nonphysical
disabilities (such as mental impairment) in this rule since it is
unclear what unit attributes would need to be addressed for this class
of persons and any needs of such persons would be more appropriately
addressed by other statutory and regulatory requirements.
Section 24.2(a)(9)(ii)(D) Temporary Relocation
In 1987, the Uniform Act was amended to cover displacement from
Federal and federally-assisted programs or projects as a direct result
of rehabilitation. To counter the disincentive this might create for a
tenant temporarily displaced from a residence while that residence is
being rehabilitated, we considered such a person not to be displaced,
if, and only if, certain stringent protections are applied. These
included covering moving expenses to and from the temporary location,
payment of increased housing costs during the period of relocation, the
guarantee of a return to the same unit, or to another suitable unit in
the same building or complex, and a limitation on a rental increase at
the rehabilitated replacement unit.
We believe that this interpretation of the law, to create an
exception to its general applicability, must be limited and strictly
applied, in order to meet the intent of Congress. Accordingly, the NPRM
proposed that displacement for a period exceeding 12 months must
ordinarily be considered significant enough to fall within the general
rule pertaining to displacement as a direct result of rehabilitation,
and not to come within the limited exception to the definition of
``displaced person'' which the law establishes. Therefore, the language
proposed in the NPRM will not change.
We received eleven comments on the proposed language further
describing temporary relocation in Sec. 24.2(a)(9)(ii)(D) of appendix
A. Two comments supported this change. However, we are seriously
concerned that several of the commenters appear to believe that a
person who is displaced by a project that triggers the Uniform
[[Page 593]]
Act can somehow be exempted from full relocation assistance benefits as
a displaced person if the Agency terms his/her relocation
``temporary'', regardless of the required length of time or hardship
caused to the displaced person. We are further concerned that some
commenters seem to consider the cost to their project more important
than the protection provided by the Uniform Act. This may indicate that
appropriate project and relocation planning is not taking place. It is
for this reason that additional clarity concerning temporary relocation
has been added to the rule.
Several commenters referenced the HUD policies on temporary
relocation. HUD has indicated for years that it has always restricted
``temporary relocation'' to situations where the Uniform Act trigger
was rehabilitation. In such cases, a tenant was guaranteed the right to
return to a unit in the project prior to moving from the displacement
dwelling. In recent years, HUD has permitted grantees to consider up to
one year as acceptable temporary relocation duration, but again, only
where the Uniform Act trigger is rehabilitation. However, HUD reports
that some HUD grantees may have abused this policy and stretched it to
apply in situations which are clearly beyond the scope of
``temporary,'' where an entire building or group of buildings is being
demolished and will be replaced with fewer units. In this situation,
displaced persons cannot be guaranteed a unit in the new building(s) at
the time they are required to move from the displacement unit for
reasons including: there may be insufficient units rebuilt; former
tenant may not meet newly adopted return criteria, and, return to the
project may not be for years simply because of the massive demolition
and rebuilding that must take place. While many of these sorts of
projects purport to allow displaced tenants to return, the reality is
that few can. We do not support advising tenants that they are only
being temporarily relocated, and are not displaced, when their actual
return to a unit in the project is in doubt, and/or may not be for an
extended period of time. Further, permanently displacing a person and
providing them with full relocation assistance under the Uniform Act
should not automatically negate their ability to apply for or return to
the site of the HUD funded project that caused their displacement. Many
HUD projects give preference to former tenants who want to return.
The rule, now requires that any residential tenant who has been
temporarily relocated for a period beyond one year must be contacted by
the Agency and offered all permanent relocation assistance.
One commenter suggested imposing the same one-year requirement upon
owner occupants and nonresidential occupants. The final rule adopts
language in the proposed rule that provides that ``temporary relocation
should not extend beyond one year before the person is returned to his
or her previous unit or location.'' We believe this establishes a sound
policy that should be followed in most cases. We recognize, however,
that in some situations, involving temporary relocations caused by
disasters or public health emergencies, Agencies may not be able to
provide permanent relocation benefits to such occupants within one
year, if ever, because of statutory or programmatic limitations.
We also agree with the commenter who suggested that a temporary
move of personal property is not intended to be covered by the one-year
limitation on temporary moves.
We expanded the language in appendix A, Sec. 24.2(a)(9)(ii)(D), to
cover ``rehabilitation or demolition'' as suggested by one of the
commenters. As noted, we are not changing the language relative to
``one year'' as we believe this is a reasonable time for any tenant to
be in temporary housing (one year is a fairly common initial lease
period across the United States). After the one-year period, the final
rule requires that a residential tenant be offered permanent relocation
assistance. Such tenants may be given the opportunity to choose to
continue to remain temporarily relocated for an agreed to period (based
on new information about when they can return to the displacement
unit), choose to permanently relocate to the unit which has been their
temporary unit, and/or choose to permanently relocate elsewhere with
Uniform Act assistance. It is expected that temporary relocations will
be rare, and, for HUD funded projects, clearly planned for in the
development of the project, and used only where a tenant is guaranteed
a replacement unit in the project or unit from which they were
displaced.
Section 24.2(a)(9)(ii)(M) American Dream Downpayment Initiative (ADDI)
A new paragraph, Sec. 24.2(a)(9)(ii)(M), has been added to the
list of ``persons not displaced'' to reflect a provision, added by
Section 102 of the American Dream Downpayment Act (Pub. L. 108-186;
codified at 42 U.S.C. 12821) provides that the Uniform Act does not
apply to the American Dream Downpayment Initiative (ADDI), a
downpayment assistance program administered by the Department of
Housing and Urban Development.
Section 24.2(a)(11) Dwelling Site
We received nine comments in response to the proposed definition of
dwelling site. Most agreed that it was needed. Six commenters asked
that additional information be provided on what constitutes a dwelling
site.
We agree and are revising the definition for clarity. We have
provided specific examples in appendix A as to when its use is
appropriate.
Section 24.2(a)(12) Eviction For Cause
We received nine comments on the proposal to simplify the eviction
for cause provisions in Sec. 24.206 by moving some of them to a new
definition in Sec. 24.2(a)(12). Several commenters found this proposal
to be confusing, and believed that it resulted in substantive changes
to the eviction for cause provisions. This was not our intent, and
accordingly we have not adopted the changes to Sec. 24.206 and the new
definition that were proposed in the NPRM. We have retained the current
regulatory language in Sec. 24.206.
One commenter objected to a clarifying sentence proposed in Sec.
24.206 of appendix A, which simply stated that an eviction related to
project development does not affect entitlement to relocation benefits.
The commenter felt that this conflicted with the current eviction for
cause provisions. However, we have retained the language in appendix A
to make it clear that evictions related to scheduled project
development, to gain possession of property, do not affect relocation
eligibility. As noted in Sec. 24.206, a person who is a lawful
occupant on the date of initiation of negotiations is presumed to be
entitled to relocation benefits, and can only be denied relocation
benefits if the person had received an eviction notice prior to the
initiation of negotiations, or is evicted thereafter ``for serious or
repeated violations of material terms of the lease or occupancy
agreement.'' We do not consider an eviction resulting from a failure to
move or relocate when asked to do so, or to cooperate in the relocation
process for a federally funded project, to be based on a ``serious or
repeated violation of material terms'' of a lease or agreement.
If an eviction is ``for the project'' (resulting from a failure to
move or relocate when asked to do so, or to cooperate in the relocation
process) such an eviction cannot be considered as ``serious or repeated
violation of material terms'' of a lease or agreement unless, prior to
executing the lease, the
[[Page 594]]
tenant was notified in writing of the proposed project and its possible
impact on him/her and that he/she would not be eligible for relocation
payments. While public housing leases may have a clause requiring that
a tenant move or cooperate in a move, these provisions are included for
the purpose of adjusting unit size as necessary for changes in family
composition, and do not negate the tenant's eligibility for relocation
benefits caused by a federally-assisted project which triggers the
Uniform Act.
Section 24.2(a)(13) Financial Assistance/Lease Payments
One commenter objected to the proposed addition of the term ``lease
payment'' in the definition of ``Federal financial assistance'' in
Sec. 24.2(a)(13). The commenter noted that this term is not included
in the statutory definition of ``Federal financial assistance'' and its
addition could have major consequences that were not mentioned or
considered in the NPRM. We agree and have deleted the term.
Section 24.2(a)(14) Household Income
We received 16 comments concerning the new definition of household
income. Most of the comments were positive and in support of the new
definition. However, four commenters requested that we go further in
our definition of household income by adding additional examples.
Several of the same commenters also requested that the examples given
in appendix A be moved to the definition in Sec. 24.2(a)(14).
Because the sources of household income constantly change and vary
by household, we will not produce a more definitive list of income
sources. Based on the experience of other Federal Agencies that use
definitions of income, such definitions can never be totally
comprehensive or timely, and could render the regulations outdated
within a short period of time. Displacing Agencies need to determine
income for each individual or family based on whatever financial
resources are available (earned, unearned, benefits, etc.). When a
question arises as to whether something should be considered as income,
the Federal Agency administering the program should be contacted for
its assessment. To further assist in the determination of income
exclusions, the FHWA has provided a Web site, (see appendix A, Sec.
24.2(a)(14)), of income exclusions that are federally mandated. The
income exclusions change periodically based on congressional action and
the FHWA will update the Web site as necessary.
We are opposed to moving the examples in appendix A to the
definition. The examples are to support the definition and should not
be a part of the definition. Therefore, they will remain in appendix A.
One commenter suggested that we change the language in the
definition to assure that income claimed is actually received. It is
our position that the responsibility for verifying income should be
left to the acquiring Agency.
One commenter raised the concern that we have not made provisions
for changes that may occur in the income stream throughout a 12 month
period. We suggest that if the income changes before the relocation
offer is made, that an adjustment be made based upon verification of
the change in income. Otherwise, we suggest using the income stream in
existence at the time of the relocation offer. The amount of a
displaced tenant's replacement housing payment should not be adjusted
if the tenant's income later changes. The Uniform Act envisions a
rental assistance payment that is determined once, and which is not
affected by subsequent events. Replacement Housing Payments under the
Uniform Act are not to be confused with rental or homeownership subsidy
programs. There is no statutory provision for adjusting relocation
claims or payments based on changes in income after the eligibility
determination has been made.
Section 24.2(a)(15) Initiation of Negotiations
The NPRM proposed adding paragraph (iv) to the definition of
Initiation of Negotiations (ION) in Sec. 24.2(a)(15), to address ION
for acquisitions that occur amicably, without recourse to the power of
eminent domain. The intent was to avoid establishing a tenant's
relocation eligibility before there was any certainty that the property
would actually be acquired.
We received 21 comments on this change. A major concern was that
delaying tenant eligibility in these cases, until the owner accepts an
offer to purchase, might have an adverse effect on such tenants by, for
example, their being forced to move as part of the pre-acquisition
negotiations, as well as otherwise increasing uncertainty in program
management.
In response, we have revised paragraph (iv) in the final rule to
provide that ION means the actions described in paragraphs (i) and
(ii), for routine Agency acquisitions, except that, in the case of
amicable acquisitions covered in paragraph (iv), the ION does not
become effective for purposes of establishing relocation eligibility
until there is a written agreement between the Agency and the owner to
purchase the property. This would establish the potential relocation
entitlement of tenants at the time negotiations begin, but would not
provide relocation benefits in the event no agreement was reached to
acquire the property. Such tenants should be fully informed of their
potential eligibility.
In response to a comment we also changed the reference to
``acceptance of the Agency's offer to purchase the real property'' to
``written agreement between the Agency and the owner to purchase the
real property,'' for greater clarity and specificity.
At the request of the Environmental Protection Agency (EPA), the
language in Sec. 24.2(a)(15)(iii), concerning the initiation of
negotiations on superfund related projects, has been updated and
clarified, primarily to delete references to a ``Federal or federally-
coordinated health advisory.'' Such health advisories are general in
nature and are rarely related to determinations that relocation is
necessary. Rather, the action that triggers relocation is a fact-based
determination by the EPA, or the Federal Agency conducting an action
under the Comprehensive Environmental Response Compensation and
Liability Act of 1980 (Pub. L. 96-510 or Superfund) (CERCLA), that
temporary relocation or acquisition is necessary because there is a
threat to an individual's health or safety. Typically, on such
projects, temporary relocation occurs first, and then, if warranted by
the circumstances, it may be followed by permanent relocation. Similar
clarifications have also been made in appendix A, Sec.
24.2(a)(15)(iii).
Section 24.2(a)(17) Mobile/Manufactured Homes
A new definition for the term ``mobile home'' has been added to
this section. Six comments were received on this proposed addition.
Five commenters agreed that the definition was needed, and three
comments proposed changes to the definition to differentiate between
mobile homes, manufactured housing and recreational vehicles. The term
``mobile home'' includes both manufactured homes and recreational
vehicles used as residences. Appendix A explains that ``mobile homes''
and ``manufactured homes'' are recognized as synonymous by HUD for that
Agency's programs, and for purposes of this regulation will be
considered the same. Appendix A also includes further requirements that
recreational vehicles must meet in order to qualify as replacement
housing in appendix A.
[[Page 595]]
(Subpart F continues to include an explanation of the different methods
of computing relocation assistance when a mobile home has been
determined to be personal property, and when it is determined to be
real property.)
Section 24.2(a)(22) Program or Project
One commenter requested a more detailed definition of the term
``project.'' Federal Agency experience over the years has amply
demonstrated that it is not feasible to devise a common definition of
``project'' which could apply to all Federal and federally-assisted
programs subject to the Uniform Act. Widely varying legislative and
administrative histories of the various programs currently covered, as
well as (in some cases) decades of practice, have led to the conclusion
that the broad definition of ``project'' should remain unchanged. To
alter the present definition might prove highly disruptive to the
administration of many programs administered by Federal Agencies.
However, Federal Agencies should always interpret the term
``project'' in a way that will ensure that persons who are forced to
move as a result of Federal or federally-assisted activities are
covered by the Uniform Act.
Section 24.2(a)(30) Utility Costs
Two commenters suggested further clarifying the expenses that are
included in the definition of utility costs. In response, we have
replaced the reference to heat and light with a reference to
electricity, gas, and other heating and cooking fuels.
Section 24.4(a)(3) Assurances
We received two comments opposing the changes proposed in the NPRM
to Sec. 24.4(a)(3) of the NPRM. One commenter was concerned that the
proposed language would exempt Agencies undertaking arm's length
acquisitions from required compliance with the Uniform Act. Similarly,
a second commenter brought to our attention that the proposed language
may nullify the conditions set forth in CFR 49 Part 24.101(b)(1). We
did not intend to undermine the requirements of other sections of the
regulations, therefore, after careful review, we agree that the
proposed language may be perceived to conflict with the provisions in
Sec. 24.101(b)(1), and have not adopted the proposal in the final
rule.
Section 24. 8 Compliance with Other Laws and Regulations
Several commenters suggested the inclusion of additional laws and
regulations within Sec. 24.8.
The existing regulatory language requires the implementation of
this part to be in compliance with other applicable Federal laws and
implementing regulations, including, but not limited to the laws and
regulations cited. The list is merely a representative sample of some
significant laws and regulations and is by no means intended to be a
comprehensive listing of all applicable laws and regulations. An
applicable law or regulation is not required to be cited in this
section to be applicable to this part. Therefore, no change is
considered necessary. However, for clarity, we have corrected two
existing laws. We have added, ``as amended'' after the reference to the
Robert T. Stafford Disaster Relief and Emergency Assistance Act in
Sec. 24.8(n); and, we have added a reference to EO 12892, Leadership
and Coordination of Fair Housing in Federal Programs: Affirmatively
Furthering Fair Housing (January 17, 1994), Sec. 24.8(o). EO 12892
replaced EO 12259.
Section 24.9 Records and Reports
We received twelve comments on the proposed revisions to Sec.
24.9(c), which proposed to require each Federal Agency to submit an
annual report summarizing its relocation and acquisition activities.
One commenter supported this change and one sought further
clarification. The remaining ten commenters opposed this change,
primarily on the grounds that it would impose significant
administrative burdens and would have little apparent value.
It was not our intent to increase administrative burdens. As was
noted in the NPRM, our primary interest was in obtaining more accurate
information, to more effectively monitor implementation of the Uniform
Act. However, due to the negative comments received, we have decided
not to adopt the proposed change.
Further, since no comments objected to the proposed simplification
of the report form in appendix B, we have adopted the proposed form and
the instructions for its use. The simplification of the form may lead
to greater use by Agencies.
Outside the context of Part 24, the lead Agency will explore the
possibility of obtaining such additional acquisition and displacement
information from other Federal Agencies as may result from routine
Agency operations and oversight.
Subpart B--Real Property Acquisition
We received a comment that the NPRM proposed change to replace the
term ``fair market value'' with ``market value'' throughout Subpart B
to better reflect current appraisal terminology was neither minor nor
reflected universally accepted eminent domain terminology throughout
the country.
Upon further examination, we determined that ``fair market value''
terminology is consistent with Uniform Act language and it appears that
Federal courts see no difference in the terms ``fair market value'' and
``market value.'' Accordingly, we have retained the terminology ``fair
market value'' throughout the subpart, except for Sec. 24.101(b)(1)
through (5), where eminent domain is not applicable. But we have added
language to appendix A noting that for Federal eminent domain purposes,
the two terms may be synonymous.
Section 24.101(a) Direct Federal Program or Project
Federal Agencies advised us voluntary transaction provisions were
being used to a significant extent and suggested that these exceptions
should no longer apply to acquisitions by Federal Agencies. Their
proposal to eliminate this provision for Federal agencies direct
purchases is consistent with section 305(b)(2) (42 U.S.C. 4655(b)(2))
of the Uniform Act, which allows these exceptions for recipients of
Federal financial assistance, but provides no such exceptions for
Federal Agencies themselves. We included the Agencies' suggested
revision in the NPRM.
Formerly, the two major exceptions to real property acquisition
requirements in Subpart B were voluntary transactions and acquisitions
in which the Agency does not have the power of eminent domain. We
restructured this section to clarify the application of the real
property acquisition requirements set forth in this subpart, and to
revise the exceptions to those requirements.
We have adopted the Agencies' proposed change in the final rule,
but the exceptions for federally-assisted projects and programs remains
in Sec. 24.101(b).
One commenter objected to excluding direct Federal acquisitions
from voluntary transaction procedures because the commenter believed
that where an Agency acquired a property that was listed for sale, it
would create a windfall for that property owner by allowing the owner
to receive Uniform Act benefits.
However, as noted elsewhere in this rule (See Sec.
24.2(a)(9)(ii)(E) and (H) and 24.101(a)(2)), if a property owner
voluntarily conveys his or her property, without recourse to the power
of eminent domain, he or she would
[[Page 596]]
continue to be ineligible for relocation benefits.
Based on a comment we added the word ``direct'' to the title of
Sec. 24.101(a) for clarity. We also added language to appendix A to
further clarify the applicability of this paragraph.
We updated language in the rule and in appendix A to reflect the
Rural Utilities Service, successor Agency to the Rural Electrification
Administration.
We added Sec. 24.101(a)(2) to make it clear that, despite the rule
change to make all direct Federal acquisitions undertaken without
recourse to the power of eminent domain subject to the provisions of
Subpart B, the owners of property acquired voluntarily by direct
Federal acquisition, continue to be ineligible for relocation
assistance benefits.
Section 24.101(c) Less-Than-Full-Fee Interest in Real Property
There was a comment suggesting we move the language from appendix
A, discussing Agencies applying these regulations to any less-than-
full-fee acquisition, into the body of the rule itself for greater
clarity.
We agree, and the final rule reflects this change.
Section 24.102 Basic Acquisition Policies
We received a comment stating that Sec. 24.102 relates only to
acquisitions under the threat of eminent domain, and should be retitled
to reflect that.
We respectfully disagree with this comment and note the exceptions
to the applicability of Subpart B, Real Property Acquisition, are in 49
CFR 24.101.
Section 24.102(c)(2) Appraisal, Waiver thereof, and Invitation to Owner
We received 28 comments on the NPRM appraisal waiver provisions.
Twelve support the changes proposed in the NPRM.
Five commenters disagree with the proposed ``two-tier'' waiver
threshold, especially the provision that the property owner be given
the option to have an appraisal if the Agency wishes to use a waiver
threshold between $10,000 and $25,000. These comments expressed the
position that this procedure would be confusing and not really
accomplish much.
In response to the language proposed in the NPRM, we received
comments requesting waiver thresholds far in excess of $10,000.
However, the Agencies are not comfortable with a waiver threshold over
the proposed $10,000 limit without additional safeguards for the
property owner. Part of this caution is based on the regulatory history
of the present policy, which links the appraisal waiver threshold to
the cost of appraisal, i.e., a concern that appraisal costs were
exceeding acquisition costs. The final rule does not change the NPRM
proposal. We point out that use of the appraisal waiver provision is
optional for an Agency, so if appraisal waiver provisions become
burdensome or ineffective, the Agency need not implement them.
Two commenters expressed concern that appraisal waiver provisions
risked property owner protection and were inconsistent with OMB
Circular 92-06, which states, ``Agencies should prepare real estate
appraisal and appraisal review reports in accordance with written and
approved agency standards consistent with the Uniform Standards of
Professional Appraisal Practice (USPAP), sections (sic) I-III, as
developed by the Appraisal Standards Board of the Appraisal
Foundation.''
We point out that appraisal waivers for low value acquisitions are
specifically authorized by the Uniform Act, Section 301(2). We share
the concern that property owners retain protections intended by the
Uniform Act. That is one reason why we did not raise the waiver
threshold to any higher level. As for the issue of consistency with
USPAP, appraisal waiver is not an appraisal performance issue, but an
issue about when an appraisal is needed under Federal law.
A question was also raised as to whether the threshold applies to
the value of the larger parcel (before value) or the value of the
proposed acquisition.
The regulation states that it applies to the ``anticipated value of
the proposed acquisition.''
One commenter suggested removing the ``on a case-by-case basis''
language from proposed Sec. 24.102(c)(ii) because it created
confusion.
We did remove the ``on a case-by-case-basis'' language from the
final rule as it was unclear.
There was one comment expressing concern about situations where a
high percentage of an Agency's acquisitions may be through appraisal
waiver procedures.
The FHWA shares that concern and is considering initiating research
to examine this issue as it applies to our partner State DOTs; however,
it is beyond the scope of this rulemaking action.
Two commenters pointed out (and support) that the NPRM proposed
adding language that the determination to use an appraisal waiver must
be made by a qualified person.
We are pleased to see not only support for this provision, but that
it was significant enough to comment on it.
Because of the number of comments indicating confusion in general
as to the appraisal waiver provisions, we have added further
explanation in appendix A.
Section 24.102(f) Basic Negotiation Procedures
Two commenters suggested that ``reasonable opportunity'' provided
to an owner to consider and respond to an offer should be defined with
a specific time frame (such as 30 days).
We did not include a required time frame, but appendix A does
discuss the issue, stating that, depending on the circumstances, 30
days would seem to be a minimum time frame. We are reluctant to specify
a time frame because we believe that circumstances can dramatically
impact what is an appropriate reasonable opportunity to consider an
offer and present information.
One commenter stated that giving property owners ``a reasonable
opportunity to consider the offer'' has the potential to slow down
project times.
We recognize this potential, however, we believe this statement
reflects the primary purpose of the Uniform Act and this regulation,
which is to assist and protect property owners and occupants.
One commenter suggested that Agencies should provide the owner and/
or his/her appraiser a copy of the Agency's appraisal requirements and
inform them that their appraisal should be based on those requirements.
This is an excellent idea, and we have included language to
encourage Agencies to do this in appendix A.
One commenter suggested adding the word ``all'' to ``reasonable
efforts to contact the owner.''
We agree and added the word ``all'' to the final rule for greater
clarity.
Section 24.102(i) Administrative Settlement
Comments indicated support for this section, but noted that not
much was changed. We agree. The revised language focuses more on
clearly stating the supporting justification for settlements.
One commenter suggested that Sec. 24.107, certain legal expenses,
should be cross-referenced in this section.
Since the topics and issues are different, we did not make that
change.
We have revised the language to require more specific information
in the written justification (``state'' rather than ``indicate'') and
deleted specific suggestions (``appraisals, recent court
[[Page 597]]
awards, estimated trial costs, or valuation problems'') in favor of
requesting ``what available information, including trial risks,
supports the settlement.''
Section 24.102(n) Conflict of Interest
The NPRM proposed expansion of this section to include all persons
making waiver valuations under Sec. 24.102(c)(2). This change would
bring equal conflict of interest standards to all individuals valuing
real property, whether their work is waiver valuations, appraisal, or
appraisal review, and would clarify who is covered.
We received 24 comments on the proposed revision to this section.
The majority of comments referenced the proposal that any person
functioning as a negotiator shall not supervise or formally evaluate
the appraiser, review appraiser or person making waiver valuations.
Comments received focused on the impacts on Agency operations. A
major concern was how an Agency could comply with the requirement that
an appraiser, review appraiser or anyone making a waiver valuation not
be supervised or evaluated by anyone negotiating for the property since
currently most, if not all, managers frequently become involved in
negotiations.
This is a difficult issue, but we, as well as the other affected
Federal Agencies, continue to support the provision providing
independence for appraisers from officials negotiating to acquire the
property.
One commenter recommended that no Agencies be exempted from
appraiser independence provisions and suggested that streamlined
appraisals and reports could be used to meet budgetary needs.
The exemption is not based on financial considerations, but rather
on recognition that some small Agencies, especially Federal-assistance
recipients such as local public Agencies, do not have the staffing
levels that are needed to support the separation of functions.
One commenter wondered about the impact on consultants of providing
independence for appraisers from officials negotiating to acquire the
property, and suggested the ethical controls in the Uniform Standards
of Professional Appraisal Practice (USPAP)\1\ are sufficient.
---------------------------------------------------------------------------
\1\ Uniform Standards of Professional Appraisal Practice
(USPAP). Published by The Appraisal Foundation, a nonprofit
educational organization. Copies may be ordered from The Appraisal
Foundation at the following URL: http://www.appraisalfoundation.org/html/USPAP2004/toc.htm.
---------------------------------------------------------------------------
We note that USPAP controls apply to the appraiser, whose only
recourse to inappropriate pressure from a manager or supervisor is
refusal to do the assigned task. We believe that this does not
adequately address conflict of interest concerns. Policing conflict of
interest should not be the appraiser's responsibility. The impact on a
consultant will ultimately be up to the funding Agency, which may waive
this provision if it believes it appropriate to do so. Again, the
responsibility to prevent undue pressure on an appraiser is on the
Agency.
One commenter suggested the same (Agency) person should be able to
procure contract appraisal services and serve as a negotiator.
This comment was from a local public Agency, which, as such, would
be eligible for a waiver if granted by the Federal funding Agency,
therefore we did not incorporate such a change.
One commenter expressed a concern that a Federal Agency could give
itself a waiver from the requirement that negotiators may not supervise
appraisers.
We believe the regulation is clear that the waiver is only for ``a
program or project receiving Federal financial assistance.'' This
precludes the Federal Agency from granting itself a waiver.
One commenter supported the exception in the last paragraph, which
allows the appraiser, the review appraiser and preparer of a waiver
valuation to also act as negotiator when the offer to acquire is
$10,000 or less. However, another commenter objected to this exception,
stating the issue was too important to allow a waiver.
Another commenter suggested the $10,000 threshold be raised to
match the appraisal waiver threshold.
One commenter objected to allowing appraisers to act as negotiators
in acquisitions under $10,000.
We did not change the threshold amount because the participating
Federal Agencies continue to believe that the $10,000 limit provides a
reasonable and appropriate exception for low value transactions. The
rule adopts the conflict of interest language proposed in the NPRM.
Section 24.103 Criteria for Appraisals
One commenter asked if there is some way we could require that all
appraisals prepared for use under the Uniform Act meet appraisal
requirements in this rule. The commenter was referring to appraisals
made other than for the Agency, such as for property owners.
Many jurisdictions grant broad authority to property owners to
express their opinions about their property, and some even compensate
them for the costs of an independent appraisal. We see no way we can
require appraisal requirements in this rule for property owners'
appraisals or other valuation opinions. We suggest Agencies make
available their appraisal requirements to property owners so at the
least they will know what the requirements are for the Agency's
appraisal(s).
The revisions relating to appraisals in Sec. Sec. 24.103 and
24.104 are the first since The Appraisal Foundation published the USPAP
in 1989. Considerable confusion and misunderstanding as to the
applicability of the USPAP provisions to Uniform Act real property
acquisitions have existed ever since USPAP was first published. The
Uniform Act and 49 CFR part 24 set the requirements for appraisal and
appraisal review in support of Federal and federally-assisted
acquisition of real property for government projects. Many of the
revised provisions of Sec. Sec. 24.103 and 24.104 are intended to
assist the appraiser, the Agency and others in understanding the
requirements of these subparts in light of the USPAP.
We changed the terminology throughout this section from
``standards'' to ``requirements'' to avoid confusion with USPAP
standards rules. We also added the phrase ``Federal and federally-
assisted program'' to more accurately identify the type of appraisal
practices that are to be referenced, and to differentiate them from
private sector, especially mortgage lending, appraisal practice.
One commenter suggested we use USPAP Standards 1, 2 and 3 for
several reasons. Certified and licensed appraisers in most States are
required to comply with USPAP, and although the Jurisdictional
Exception may be used where the USPAP is contrary to law or public
policy, that complicates matters unnecessarily. Also, USPAP standards
are already in place, and this would assure the Federal government,
taxpayers and property owners that appraisals and appraisal reports
comply with certain minimum standards.
Uniform Act appraisal requirements have been in place for some time
and actually predate USPAP. They were put in place to do what the
commenter suggests: provide assurance that when an Agency needs real
property, all the parties involved are treated fairly. That is the
primary purpose of the Uniform Act. As for the USPAP Jurisdictional
Exception, we believe any ``complication'' is mostly based in
misunderstanding of how it works. In any case, USPAP Jurisdictional
Exceptions are by definition based in law or public policy and the
Agency has
[[Page 598]]
very little, if any, flexibility for optional compliance with the
Uniform Act.
Section 24.103(a) Appraisal Requirements
In the NPRM we proposed stating that these regulations set forth
the requirements for real property acquisition appraisals for Federal
and federally-assisted programs to make it clear that other performance
standards, such as USPAP and those issued by professional appraisal
societies, do not directly govern programs covered by the Uniform Act.
Based on the comments we received, this proposed language clarified the
relationship between the appraisal requirements in this rule and USPAP
and we have included that language in the final rule. Additionally, we
have added further explanatory language in appendix A.
The NPRM proposed adding a requirement for a scope of work
statement in each appraisal. The scope of work replaces the former
appraisal problem statement. It also renders obsolete the former
``minimum standards'' and ``detailed'' appraisals, replacing them with
an infinitely variable standard driven by the circumstances of each
acquisition. We have included in appendix A a discussion on preparing
the scope of work.
We received several comments supporting the adoption of the scope
of work. One commenter suggested that the scope of work for Uniform Act
purposes needs to be clearly differentiated from the scope of work
required by USPAP.
As of the publication of this regulation, the Appraisal Standards
Board has not finalized the scope of work in USPAP, so it would be
premature to attempt to differentiate. It is our hope that the two
concepts will be consistent and that a scope of work written in
compliance with this rule will be compatible with any future scope of
work requirement in USPAP.
One commenter said that the appraiser should not be able to
unilaterally determine the scope of the assignment or what the
appraiser will provide the Agency. However, another commenter suggested
that the appraiser should decide the scope of work, perhaps in
consultation with the client (Agency). This comment was made as part of
a discussion about the Agency instructing the appraiser that in certain
circumstances, the sales comparison approach would be the only approach
to value to be used.
We point out that Agencies have had input to the appraisal process
under the old rule. First, the ``sales comparison approach only''
option has been available to Agencies for many years and has, to our
knowledge, caused no problems. Second, these requirements are written
on the basis that the Agency is a ``knowledgeable user'' of appraisal
services. That is, the Agency is familiar with both the appraisal
process and its own needs, and is capable of participating in a
legitimate statement of work to solve the appraisal problem.
Accordingly, we believe that appraisers should not be given final
authority over the appraisal process for an Agency. We believe it is
appropriate that this option continue to be retained by the Agency.
One commenter said it believes the purpose and/or function of the
appraisal, a definition of the estate being appraised, and if it is
market value, its applicable definition, and the assumptions and
limiting conditions should be stated separately, and not be in the
scope of work.
We believe the scope of work, as a vehicle of agreement between the
appraiser and the Agency, is the appropriate place to include these
items. They should also be included in the appraisal report, as part of
the scope of work statement.
One commenter questioned the meaning of ``the extent appropriate''
for application of the Uniform Appraisal Standards for Federal Land
Acquisition (UASFLA).\2\
---------------------------------------------------------------------------
\2\ The ``Uniform Appraisal Standards for Federal Land
Acquisitions'' is published by the Interagency Land Acquisition
Conference. It is a compendium of Federal eminent domain appraisal
law, both case and statute, regulations and practices. It is
available at http://www.usdoj.gov/enrd/land-ack/toc.htm or in soft
cover format from the Appraisal Institute at http://www.appraisalinstitute.org/ecom/publications/default.asp and select
``Legal/Regulatory'' or call 888-570-4545.
---------------------------------------------------------------------------
The UASFLA is a publication that summarizes Federal eminent domain
appraisal case and statute law. So, to the extent that an Agency either
follows Federal eminent domain practices, or voluntarily adopts UASFLA
as its appraisal guidelines, it may be applicable.
Another commenter recommended that the appraisal clearly define and
list which items are considered as real property and which are
considered as personal property.
We agree and the regulation and appendix A have been revised to
reflect this suggestion.
Still another commenter suggested the five-year sales history be
changed to ten years since the property may not have changed hands in
the last five years.
Although we did not change the requirement in the regulation, we
point out that its requirements are minimums. If the appraiser or the
Agency believes higher levels of performance are necessary, then the
appraisal scope of work should reflect that.
Section 24.103(a)(2)(ii) Appraisal Requirements
A commenter suggested that USPAP compliance would require
appraisers to invoke the USPAP Departure Provision to use only the
sales comparison approach.
We disagree with this evaluation. At the present time, a State
certified or licensed appraiser who is requested by an Agency to
provide only the sales comparison approach would, in our opinion, be
doing so under the USPAP Jurisdictional Exception Rule, since the
Agency's request would be pursuant to the authority granted it under
its law and public policy, which is the basis for a USPAP
Jurisdictional Exception.
Section 24.103(d) Qualifications of Appraisers and Review Appraisers
One commenter suggested the rule should recognize that appraisal
professional organizations' designations provide an indication of an
appraiser's abilities.
We have added language to Sec. 24.103(d)(1) and corresponding text
to appendix A to emphasize the need for appraisers and review
appraisers to be qualified and competent, and that State licensing or
certification, and professional designations can help provide an
indication of an appraiser's abilities.
Section 24.103(d)(1)
While the majority of the comments on the proposed changes to this
section were positive, we did receive several comments that recommended
that appraisers and review appraisers be required to be State
certified.
Although we have not adopted that suggestion, we recognize the need
for appraisers and review appraisers to be qualified and competent, and
that State licensing or certification, and professional designations
can help provide an indication of an appraiser's abilities. Therefore,
we have added certification and licensing to the list of items to be
considered by an Agency in determining the qualification of an
appraiser (or review appraiser). We also note that some States have
specifically excluded certain State Agency appraisers from State
licensing/certification requirements.
Section 24.104 Review of Appraisals
For consistency, the term review appraiser is used throughout this
rule to refer to the person performing appraisal reviews. We also added
language that
[[Page 599]]
will clarify and specify the responsibilities, authorities and
expectations associated with appraisal review.
One commenter stated that the NPRM significantly expands appraisal
review responsibilities and requirements.
We believe the final rule more accurately elucidates what was
commonly assumed to be appraisal review responsibilities and
requirements.
A commenter suggested that the final rule should allow
administrative reviews performed by appraisers or non-appraisers where
the values are less than $50,000.
We disagree because only a technical review can provide the basis
for approving an appraisal for valuation purposes.
There was an objection to the discussion in the first two
paragraphs of appendix A as being promotional and self-serving.
This discussion provides information on the concept of appraisal
review as it is used by public Agencies and we believe it is necessary.
One commenter said the proposed change to allow the review
appraiser to support and approve a different value without any
oversight or review is not a good policy. This could result in the
review appraiser being pressured to increase or reduce appraised values
without oversight.
First, the policy allowing the review appraiser to support and
approve a value different from that of the appraisal being reviewed has
been part of the preceding rule and is not new. Second, at the Agency's
option, the Agency official who establishes the amount believed to be
just compensation to be offered to the property owner may be someone
other than the review appraiser.
Section 24.104(a) Review Appraisers
Several commenters responded to the three options available for the
appraisal review.
One commenter expressed concern for using the term ``rejected.''
We agree and replaced the term ``rejected'' proposed in the NPRM
with ``not accepted.'' This more clearly reflects that such appraisals,
while they may meet others' standards or requirements, do not meet the
requirements of this rule and the Agency.
One commenter suggested that the type and level of review should be
left to the discretion of the acquiring client Agency.
We agree that the Agency should have some discretion as to the
review, and we believe that is included in the appraisal review
provisions. However, we also believe the amount of appraisal review
discipline specified in this rule is necessary to assure compliance
with the Uniform Act requirement that the offer believed to be just
compensation be based on an approved appraisal.
The same commenter also suggested that the rule delete the
requirement that all appraisals must be reviewed.
We do not believe we have flexibility under the Uniform Act to make
appraisal review optional. The Uniform Act calls for an approved
appraisal, which this rule interprets and implements as requiring a
technically reviewed appraisal. We note that while the Uniform Act
specifically grants authority for waiver of the appraisal, it does not
do so for approving an appraisal.
There were two comments saying the appraisal review provisions
should be consistent with USPAP. One specifically cited that having the
review appraiser approve the appraisal was not consistent with USPAP,
and should be changed unless there is a compelling reason to be
different.
We believe, first of all, that it is not inconsistent with USPAP
for the review appraiser to be requested to approve the appraisal. We
believe the requirement for approving the appraisal is within the
bounds of USPAP's Standard Rule 3-1(c) where identification of the
scope of the (review appraisal) work to be performed is discussed.
Second, if there is any question as to consistency, we point out that
the requirement for an ``approved appraisal'' is in the Uniform Act and
would appear to qualify as a USPAP Jurisdictional Exception, based on
being ``law or public policy.''
One commenter suggested that the phrase ``accepted (but not used)''
could raise questions in condemnation litigation as to why a report met
``government standards'' was not used, perhaps implying the Agency
shopped for the value it wanted to get.
The appraisal review report should discuss why one of two or more
reports was selected as approved for best supporting an offer believed
to be just compensation.
Another commenter stated that references to the review appraiser
setting just compensation is inaccurate and should be deleted.
The language in Sec. 24.104 was carefully written to follow the
Uniform Act. A staff review appraiser may be authorized to ``develop
and report the amount believed to be just compensation,'' not ``set''
just compensation, which we acknowledge is the purview of the courts.
One commenter raised a concern that the review appraiser should be
required to develop an opinion on whether or not the report complies
with Standards 1, 2 and 3 of USPAP as well as an opinion of market
value.
As we have noted, while this regulation is intended to be
consistent with USPAP, it implements the Uniform Act and its
requirements only; it is not a vehicle for implementing USPAP.
A commenter suggested that the owner be offered the opportunity to
accompany the review appraiser on the inspection of the property.
An on-site inspection by the review appraiser is not a specific
requirement of these regulations, so inviting the property owner would
be inappropriate. The necessity of an onsite inspection by the review
appraiser depends on the appraisal problem, the appraisal(s), and
Agency policy.
One commenter asked what was the background of accepted, approved
and rejected.
The three appraisal review results options specified reflect the
results that were always needed, but never specifically cited. They are
directly related to the needs of the acquisition process specified in
the Uniform Act. Additional language has been added to appendix A to
further clarify that process.
Section 24.104(b) Review of Appraisals
One commenter expressed the position that it is not good policy to
allow the review appraiser, as part of the appraisal review process, to
develop independent valuation information if he/she could not approve
any submitted appraisal. Concern was expressed that there was potential
for undue coercion to be exerted on the review appraiser without
oversight.
We believe that newly introduced provisions to enhance appraiser
and review appraiser independence will mitigate this risk. We point out
that the provisions allowing the review appraiser to develop an
independent valuation are carried over from the previous rule.
Section 24.104(c) Written Report
One commenter requested clarification that only a duly authorized
Agency staff person can make the approved appraisal decision, because
Agencies sometimes mistakenly believe they have no choice but to accept
the review appraiser's conclusion.
This is clarified in the final rule.
Another commenter asked if an appraisal report which has had its
value conclusion modified in some fashion
[[Page 600]]
during review, maintains its status as approved.
This would come into play primarily when, subsequent to submission
by a fee appraiser, the reviewer modifies the recommended (or approved)
amount due to a plan revision or other similar reason. For the purposes
of the Uniform Act and this regulation, the review appraiser could
adjust the recommended or approved amount to reflect changes without
voiding the acceptance of the reviewed appraisal report, if those
changes are not so substantial as to change the appraisal problem.
Still another commenter asked whether the requirement that any
damages or benefits to any remaining property be identified in the
review appraiser's report is to be just a simple allocation between
damages and benefits or whether discussion is implied.
The requirement is to ``identify'' any damages or benefits.
Therefore, if some discussion may be needed to explain an allocation,
such discussion should be included, too, but is not explicitly
required.
Two commenters objected to authorizing the review appraiser to
determine the amount believed to be just compensation, opining that is
a management determination.
We agree it is a management determination, but it is also
appropriate to give management the option of delegating this
responsibility to a staff review appraiser.
Section 24.105 Acquisition of Tenant-Owned Improvements.
One commenter stated that some tenant-owned improvements or
modifications made to accommodate a tenant's disability or the
disability of a household member, such as ramps, may have no market
value or salvage value because they are of limited use to anyone but
the tenant who installed them. In such situations, the regulations
should require that the household be compensated for the replacement
value of the improvements.
We did not change the provision in Sec. 24.105 for such a
situation because the residential occupant would be ``made whole''
through relocation assistance provisions of this regulation.
Section 24.106 Expenses Incidental to Transfer of Title to the Agency
One commenter stated that we should add a new paragraph describing
``other related costs incurred'', solely as a result of transfer of
real property to the Agency. The regulation can allow only those
expenses specified by the Uniform Act, section 303, therefore, this
change was not made.
Subpart C--General Relocation Requirements
Section 24.202 Applicability
One commenter suggested we change the word ``benefits'' to
``entitlements.'' We feel that since the word ``assistance'' is used
throughout the Uniform Act that we will change the word ``benefits'',
when feasible, to ``assistance'' to be more in line with the language
used in the Uniform Act. The Uniform Act program is not an entitlement
program but rather a reimbursement program to assist in relocating to a
new site.
Section 24.203(b) Notice of Relocation Eligibility
One commenter requested that we further define ``promptly'' in
Sec. 24.203(b), suggesting that it refers to the prompt notification
of all occupants/tenants after the initiations of negotiations and,
therefore, should be defined to not exceed 7 calendar days or perhaps
up to 10 calendar days at most. We consider promptly meaning ``as soon
as practicable'' and do not believe that further elaboration is
necessary. Displacing Agencies may wish to further define the term in
their operational procedures. (The FHWA has issued guidance in the past
to the State Highway Agencies suggesting that, as used in this section,
``promptly'' means 7 to 10 days).
Section 24.203(d) Notice of Intent to Acquire
The NPRM proposed moving the definition of notice of intent to
acquire from the ``Definitions'' section to the ``Notices'' section of
the regulations. The intent was to group all relocation notices in one
place for consistency. A minor revision in wording for clarity was also
proposed. No change in the meaning of the term was intended.
We received four comments on this proposed change. One commenter
proposed alternative wording for the term that has not been adopted.
Three commenters expressed confusion over the intent of this term,
therefore, further explanation is warranted here.
The notice of intent to acquire is one of three actions (the other
two being initiation of negotiations for acquisition, and actual
acquisition) that can establish a person's eligibility for relocation
assistance (see Sec. 24.2(a)(9)(i)(A)). Unlike the other notices
described in Sec. 24.203, a notice of intent to acquire is not
mandatory. As was noted when the 1989 final rule was issued (54 FR
8916), its purpose ``is to clearly establish a 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.''
A notice of intent to acquire may be used to establish a person's
eligibility for relocation assistance prior to the initiations of
negotiations and sometimes prior to commitment of Federal-financial
assistance. A notice of intent to acquire is a means by which
displacing Agencies may establish a person's relocation eligibility in
advance of the typical acquisition and relocation process in order to
conduct orderly relocation, minimize adverse impacts on displaced
persons and to expedite project advancement and completion.
One commenter suggested that the notice of intent to acquire could
be confused with the ``notice to owner'' found in Sec. 24.102(b). A
notice to owner is merely an Agency's notice informing the owner of the
Agency's interest in acquiring the property; it is not a commitment and
does not establish relocation eligibility. Whereas a notice of intent
to acquire is an Agency's written notice provided to a person to be
displaced; it is a commitment and clearly establishes relocation
eligibility in advance of the normal acquisition and relocation
process.
One commenter was uncertain as to the relationship between the
notice of intent to acquire, and the notice of relocation eligibility,
described in Sec. 24.203(b). While the notice of intent to acquire is
one of three possible actions that establish eligibility for relocation
assistance, the notice of relocation eligibility is a mandatory notice
that notifies persons when they become eligible for relocation
assistance. For greater clarity and consistency we have added
references to the notice of intent to acquire and actual acquisition in
Sec. 24.203(b) to make it clear that the notice of relocation
eligibility must be provided after whichever Agency action first
triggers a person's eligibility for relocation assistance.
Section 24.204(b)(1) Disaster Relief Act and Section 24.204(c) Basic
Conditions of Emergency Move
For clarity, we have updated the citation to the Robert Stafford
Disaster and Emergency Assistance Relief Act, as amended, (42 U.S.C.
5122) in Sec. 24.204(b)(1). We have also added a reference to
``displacement dwelling'' in Sec. 24.204(c) to emphasize that we are
referring to relocations from such dwellings.
[[Page 601]]
Section 24.205 Relocation Planning, Advisory Services, and Coordination
One commenter asked whether changes in Sec. 24.205 were intended
to preclude so-called ``global settlements.'' Another comment, focusing
primarily on Sec. 24.207(f) (which prohibits Agencies from requesting
that displaced persons waive relocation benefits), recommended that the
regulation would preclude the use of such settlements. The comment
described ``global settlements'' as ``the packaging of relocation
entitlements (in some cases moving, mortgage interest, price
differential, etc.) with the fair market value to reach an
administrative settlement of the acquisition.''
The changes to Sec. 24.205 are not intended to reflect ``global
settlements.'' We do not believe that such settlements are consistent
with the requirements of the Uniform Act or this part.
The Uniform Act and this part require that relocation payments be
determined in accordance with specific fact based criteria. For
example, a homeowner's replacement housing payment shall be based on
the ``amount, if any'' that must be added to ``the acquisition cost of
the dwelling acquired'' to equal the reasonable cost of a comparable
dwelling. It is therefore impossible to accurately determine the amount
of a displaced homeowner's replacement housing payment until the actual
acquisition cost of the acquired dwelling is established. Furthermore,
a replacement housing payment can only be made to a displaced homeowner
if the homeowner purchases and occupies a decent safe and sanitary
replacement dwelling within one year after he or she receives final
payment for the acquired dwelling. Accordingly, under the Uniform Act
and this part, a homeowner's replacement housing payment cannot be
determined until the actual acquisition cost is known.
In addition, actual reasonable moving expenses often cannot be
determined until after the move has been completed. Relocation benefits
provided under the Uniform Act and this part must be determined in
accordance with the applicable requirements contained therein, and any
``settlement'', related to relocation benefits, that does not do so
would not be consistent with statutory and regulatory requirements.
Both Sec. Sec. 24.205 and 24.207(f) are drafted to ensure that
displaced persons are fully advised of all relocation assistance
benefits that are available to them, and that a displaced person is
offered all the assistance and benefits for which he or she is
eligible. This applies to both residential and nonresidential
displacements.
Section 24.205(c)(2)(i)(A-F) General Planning
We received eleven comments on the proposed requirement for
obtaining information from the displaced business owners concerning a
business's needs during the relocation process to enable the acquiring
Agency to assist the business in successfully relocating to a
replacement site. Most were in favor of the new informational
requirements. Three commenters expressed concerns, stating that their
planning process was undertaken early, during the early environmental
studies, and that the information would be obsolete prior to the actual
relocation process.
We included this requirement so that the interviews, where the six
informational items are to be obtained, are conducted during the
advisory assistance process. This process is to be undertaken when
relocation can be expected to begin within a short interval of time.
One commenter was concerned that some business owners employed
legal counsel that advised the businesses not to provide any
information to the displacing Agency. In such cases, acquiring Agencies
should explain to business owners that the intent of the interview
questions is to obtain data that will enable the Agency to better
assist the displaced business, and that the Agency is required to seek
such information by a Federal regulation implementing the Uniform Act.
Section 24.205(c)(2)(i)(C)
We received two comments recommending we change the wording in
Sec. 24.205(c)(2)(i)(C) concerning the resolution of personalty/realty
issues, in order that the provision apply to all businesses not just
tenant businesses. We agree with the recommendation and have removed
``tenant'' from Sec. 24.205(c)(2)(i)(C).
We received six comments to the proposed change to Sec.
24.205(c)(2)(i)(C), concerning identification and resolution of realty/
personalty items prior to an appraisal of the property.
All commenters agreed that this is a problem area and that a change
is needed. However, all commenters shared a common concern, that
requiring resolution prior to the appraisal of the property is
sometimes not possible.
One commenter suggested ``should'' be used in place of ``must.''
Several commenters reminded us that most Agencies are aware of the
problem and make every effort to identify and resolve these issues as
early as possible, but that sometimes it is not possible given the
reluctance of tenants and owners to cooperate.
We received many comments from the public prior to the NPRM
requesting a stronger position be taken on resolving realty/personalty
issues early in the process. However, we recognize the valid concerns
reflected in the comments and, therefore, have changed Sec.
24.205(c)(2)(i)(C) to provide that ``every effort must be made'' to
identify and resolve realty/personalty issues prior to ``or at the time
of'' the appraisal.
Section 24.205(c)(2)(i)(E)
We received three comments on Sec. 24.205(c)(2)(i)(E) which
proposed that interviews with displaced business owners include an
estimate of a business searching expense payment based on the estimated
difficulty in locating a replacement site. The comments questioned the
purpose of obtaining an estimate of searching expenses and asked
whether the acquiring Agency or the business owner should prepare it.
There are two general purposes for this provision. The first is to
generate a discussion of the anticipated problems faced by the business
to enable the acquiring Agency to determine the time required for the
move; and, second, to factor in the time and costs of investigating a
replacement site. These costs include those necessary to obtain
permits, attend zoning hearings and negotiate the purchase of a
replacement site. Our primary intent was to identify problems in
locating a replacement site. For clarity, and in response to the
comments, we have deleted the requirement that an estimate of the
searching expense payment be provided.
Section 24.205(c)(2)(ii)
Several commenters noted the incorrect placement of a sentence
concerning business interviews within the residential portion of this
section of the regulations, at the end of Sec. 24.205(c)(2)(ii). This
sentence was erroneously repeated from the preceding business interview
discussion, and has been deleted from the final rule.
One commenter recommended that the regulations provide that
reasonable accommodations be made for disabled displaced persons in the
interview process and with regard to transportation. The NPRM did not
propose any changes in this area and we believe none are necessary.
Agencies must make every effort to provide reasonable accommodations
for all displaced persons, including the
[[Page 602]]
disabled, in order to minimize any adverse impacts. This is not a new
requirement; it is a fundamental principle of relocation advisory
services. As such, no additional changes were adopted.
Section 24.205(c)(2)(ii)(D)
We received 12 comments regarding the proposal that an Agency,
which has a program objective of providing minority persons with an
opportunity to relocate outside of areas of minority concentration, may
determine to provide a reasonable and justifiable increase in the
payment to facilitate such a move. Every comment disagreed with the
addition of this flexibility for various reasons, many because it was
perceived as a mandate to provide additional payments rather than an
option based on an Agency's program goals. Based on further
consideration, and in response to the comments, we removed this
language from the final rule.
Section 24.205(c)(2)(ii)(E)
We received six comments on Sec. 24.205(c)(2)(ii)(E), which
concerns transportation to inspect replacement housing. One commenter
suggested that such transportation should be ``need based'' for only
certain individuals, such as those with health limitations or
disabilities. Another commenter wanted to add the wording ``as
appropriate.'' Still another commenter wanted the decision to provide
this transportation to be at the discretion of the Agency.
The requirement to offer transportation to all displaced persons is
not new. A minor clarification was proposed to emphasize that all
displaced persons are entitled to such transportation. It has been our
experience that most people will provide their own transportation, but
in fairness to all, transportation shall be offered to all displaced
persons equally.
One commenter voiced concern about government liability in
transporting non-government persons, and suggested designating other
forms of transportation. We purposely did not designate a mode of
transportation. It is the responsibility of the Agency to decide how
they will transport a displaced person. If liability is a concern,
there are other means of transportation available such as a taxicab or
rental car.
Section 24.206 Eviction for Cause
See the explanation under Subpart A, definitions, Sec.
24.2(a)(12), in this preamble.
Section 24.207(f) Waiver of Benefits
We received 17 comments on Sec. 24.207(f), which provides that
displacing Agencies shall not propose or request that a displaced
person waive his or her relocation benefits. This section complements
Sec. Sec. 24.205(c) and 24.203(a), (b) and (c) which describe the
information and notices that must be provided to persons prior to
displacement.
The comments were virtually unanimous in support of Sec.
24.207(f). However, it appears that a few commenters did not fully
understand this provision. As we noted in the preamble to the NPRM (68
FR 70348-70349), because the Uniform Act imposes requirements on
displacing Agencies to provide relocation assistance, a person to be
displaced cannot relieve an Agency from the Uniform Act's requirements
by agreeing to waive his or her relocation assistance and benefits.
Appendix A, Sec. 24.207(f), provides that a person, after they
have been fully advised of all relocation payments and assistance to
which they are entitled, may, in a written statement, choose not to
accept some or all of such benefits. In the unlikely event that a
person simply refuses to accept some or all payments and assistance,
and refuses to provide any written statement to that affect, the Agency
should document such refusal in writing.
We have made two minor changes to Sec. 24.207(f) in response to
comments. We have inserted ``No'' as the first word of the section's
title, to emphasize that this provision is not intended to encourage
any waiver of benefits. We have also changed the phrase ``relocation
assistance and payments provided by the Uniform Act,'' to ``relocation
assistance and benefits provided by the Uniform Act,'' to avoid any
implication that this section would apply to payments for the
acquisition of real property, which are addressed in detail in subpart
B.
Section 24.207(g) Expenditure of Payments
We received five comments on proposed Sec. 24.207(g). These
generally requested minor editorial changes or further clarification.
This section expresses longstanding practice and understanding by
stating that relocation payments provided to a displaced person are not
``Federal financial assistance'' for purposes of this part, and
therefore, their expenditure is not subject to the Uniform Act. In
response to the comments received minor changes have been made to
improve clarity.
Subpart D--Payments for Moving and Related Expenses
Section 24.301(b) Moves From a Dwelling
We received 13 comments on Sec. 24.301(b), moving from a dwelling.
Most of the commenters were unclear on what is meant by the phrase
``but not by the lower of two bids or estimates'' in Sec. 24.301(b).
It has long been our position that a residential displaced person
cannot be paid for a self-move based on the lower of two bids or
estimates. This has always been a moving option reserved for
businesses. There are only three types of moving options available for
residential moves, that are described in Sec. Sec. 24.301(b)(1) and
(2)(i) and (ii). After careful consideration of the comments we agree
that the proposed language in Sec. 24.301(b) could be misunderstood
and have made changes to better clarify that a residential self-move
cannot be based on the lower of two bids or estimates.
Two commenters questioned why we allow an actual cost move,
supported by receipted bills, to equal the hourly rate that a
commercial mover would receive. In response to that, the rate a
commercial mover would pay is only there as a comparison, to ensure
that the rate charged is not excessive. The rate may be less than the
prevailing commercial rate.
One commenter suggested that we make it clear that the hourly rate
for equipment rental be based on the actual cost of the equipment
rental, but not exceed the cost a commercial mover would charge. We
agree and have added language to Sec. Sec. 24.301(b)(2)(ii) and
24.301(d)(2)(ii) to reflect this clarification.
Section 24.301(b)(2)(iii) and (c)(2)(iii) Moving Cost Finding
We received 20 comments on the proposed new method of moving
personal property that would allow a qualified Agency staff person to
estimate and determine the cost of a small uncomplicated personal
property move up to $3,000, with the informed consent of the displaced
person (NPRM Sec. 24.301(b)(2)(iii).)
The comments varied from those who supported the proposal to those
who opposed it. Others found it confusing and questioned the legality
of our actions. Six commenters requested we increase the amount
anywhere from $5,000 to $10,000 with one commenter suggesting the
amount be set individually by each State. Four
[[Page 603]]
commenters requested additional explanation as to what determines a
``qualified'' staff person and two commenters questioned the legality
of such a move indicating that there is no statutory support for
creating a different type of move.
One commenter suggested we tie the amount to a meaningful index to
be evaluated periodically similar to the Fixed Residential Moving Costs
Schedule and one commenter requested an explanation of how we arrived
at $3,000.
This proposed change was intended to provide greater flexibility.
However, because of the apparent misunderstanding of the purpose of the
proposal, and the range of confusion and concern expressed, we have
decided not to adopt this proposal.
Section 24.301(d) Moves From a Business, Farm or Nonprofit organization
One commenter brought to our attention that we had inadvertently
left out actual cost moves as one of the options for business moves. We
agree and thank the commenter for bringing it to our attention. We have
added it back in the regulations as part of Sec. 24.301(d)(2)(ii).
Two commenters requested additional information on hourly rates. We
feel hourly rates are adequately explained in Actual Cost Self-Move.
Section 24.301(d)(2) Self-Move
One commenter objected to the elimination of ``qualified staff'' to
estimate actual, reasonable moving expenses, especially in low-cost
uncomplicated moves. While we recognize that it is sometimes difficult
to receive an accurate estimate from a professional mover, the use of
such an estimate, wherever possible, is valuable in establishing
accuracy. We understand that occasionally it is necessary to consult
trade associations representing specialty movers on a case-by-case
basis. As a result, we did not make any changes to the rule.
Section 24.301(e) Personal Property Only
We received seven comments concerning the new paragraph on personal
property, Sec. 24.301(e). All were positive comments, however, four
commenters requested additional explanation of what is covered by the
new paragraph. The four commenters were concerned that, as proposed,
Sec. 24.301(e), personal property, would be limited to eligible
expenses as described in Sec. 24.301(g)(1) through (g)(7) and not be
eligible for expenses in Sec. 24.301(g)(8) through (g)(18). Thus, in
effect eliminating the use of actual direct loss of tangible personal
property, substitute personal property, searching expense, and other
normally eligible business expenses.
As explained in the preamble to the NPRM, this provision was only
intended to be used for moving personal property from property acquired
for a Federal or federally-assisted project, where there was no need
for a full relocation of a residence, business, farm or nonprofit
organization. It was not intended to cover the eligible moving items in
Sec. 24.301(g)(8) through (g)(18). However, upon further
consideration, eligibility for payment based on Sec. 24.301(g)(18) Low
Value/High Bulk is determined to be appropriate for inclusion in a
personal property only move. As such, we have revised this section of
the regulations to include Sec. 24.301(g)(18) as an eligible actual
moving expense as part of a nonresidential personal property only move.
It should also be noted that personal property only moves do not
trigger eligibility for reestablishment expense payments, nor are they
eligible for actual moving expense payments under Sec. 24.301(g)(8)
through (g)(17).
For moving options and examples of the types of personal property
only relocations, see appendix A, Sec. 24.301(e).
Section 24.301(g)(3) Eligible Moving Expenses
We received 19 comments regarding compliance with code requirements
at the replacement site of a small business, farm or nonprofit
organization. The commenters requested that we consider moving more
criteria from Sec. 24.304 to either Sec. Sec. 24.301 or 24.303.
Nine of the commenters urged moving the provision providing
payments for ``repairs or improvements to the replacement real property
as required by Federal, State or local law, code or ordinance'' from
the reestablishment expense Sec. 24.304, which provides a
reestablishment payment not to exceed $10,000, to Sec. 24.303, where
the reimbursement provision is not limited. Four commenters suggested
that we should move additional criteria from Sec. 24.304 to other
sections that provide payment for actual, reasonable and necessary
expenses.
We do not believe these suggestions are appropriate since we
believe actual moving cost expenses for businesses should be limited to
personal property items, while expenses for improving business real
property should be reimbursed under reestablishment provisions of Sec.
24.304. However, we note that three provisions which were formerly
under reestablishment limitations, and which do not fall within the
category of realty or personalty, have been moved to revised Sec.
24.303, and can be considered for reimbursement without a defined
dollar limitation.
Four commenters requested further clarification of the reference to
modifications of personal property in Sec. 24.301(g)(3). To clarify,
the provision for displaced businesses, permitting modifications to the
personal property within the replacement structure, provides payment
for costs necessary to adapt personal property to the replacement site,
and includes modifications mandated by Federal, State or local law,
code, or ordinance. This includes circumstances when such property and
equipment was ``grandfathered'' in the displacement structure, but
changes or upgrading of the personalty is required by the Americans
with Disabilities Act (ADA), the Occupational Safety and Health
Administration (OSHA), other Federal laws, State or local law, code or
ordinances at the replacement site. The modifications authorized for
reimbursement must be clearly and directly associated with the
reinstallation of the personal property and cannot be for general
repairs or upgrading of equipment because of the personal choice of the
business owner. Finally, the expenditures for authorized modifications
must be reasonable and necessary.
Two commenters were concerned that we may have gone too far in
moving some items from Sec. Sec. 24.304 to 24.303, instead suggesting
that more attention should be given to the level of service provided to
businesses as proposed in Sec. 24.205. Their concern is that it is
questionable whether having no cost limits will always improve the
percentage of successful business relocations. We considered their
concern but have elected to make the proposed changes.
To further clarify Sec. 24.301(g)(3) we have restructured the
existing wording to distinguish residential and nonresidential items
and added a reference to Federal, State or local law, code or
ordinance.
Section 24.301(g)(12)
We received one comment recommending that Sec. 24.301(g)(12)
further define the limits of eligible fees for professional services.
The commenter recommended that such eligible fees be limited to fees
related to actually moving the personal property, and not include fees
related to
[[Page 604]]
conceptual building or site layouts intended for construction/
reconstruction at the replacement property.
No changes have been made to this section. The professional
services described in this section only include those that are directly
related to moving personal property. Conceptual building or site
layouts intended for construction/reconstruction at the replacement
property are not considered eligible expenses under this section.
Professional services related to these types of expenses may be
considered eligible expenses under Sec. 24.303(b), related
nonresidential eligible expenses, if the Agency determines them to be
actual, reasonable and necessary.
Section 24.301(g)(14) and (g)(14)(i)
We received 13 comments recommending that we clarify Sec.
24.301(g)(14) relating to the actual direct loss of tangible personal
property. In particular commenters expressed confusion about the
meaning of the phrase ``value in place as is for continued use,'' with
two comments suggesting that the regulation include a definition of an
appraisal method to estimate this in-place value. Two comments
requested clarification as to whether reconnect charges should be
included with the estimated moving cost.
The term ``value in place as is for continued use'' means the
depreciated value of the item as it is installed at the displacement
site as of the date of the acquisition. We have modified Appendix A,
Sec. 24.301(g)(14) to clarify the correct value considerations to
estimate in-place value. Generally, an item will be valued based on the
current cost of the item as installed on the displacement site, and
depreciated to reflect the current condition and estimated remaining
useful life. Standard professional personal property appraisal methods
would be acceptable. The in-place value at its ``as is'' condition may
not include costs that reflect code or other requirements that were not
actually in effect at the displacement site; or include installation
costs for machinery or equipment that is not operable or not installed
at the displacement site.
The estimated moving cost for an item is also to be limited to the
``as is'' condition of the item at the displacement site. Therefore,
estimated reconnect costs may not include costs to meet code or other
requirements that would only be necessary to relocate the item to a
replacement site. Since the item is claimed as a loss and is not to be
relocated, allowable reconnect costs may only reflect an estimate of
the cost that would be incurred to install the item as it currently
exists at the displacement site. Also the moving cost estimate may not
include reconnect costs for an item that is not operable or installed
at the displacement site.
We believe that the provision proposed in the NPRM, as further
explained in appendix A, is correct and consistent with this intent of
the Uniform Act, to provide moving benefits that are actual, reasonable
and necessary. Therefore, we have included this provision in the final
rule.
Section 24.301(g)(17)
We received twelve comments concerning Sec. 24.301(g)(17), which
proposed raising the searching expense limit from $1,000 to $2,500. One
commenter was not in favor of the increase. Other commenters wanted a
greater increase on the allowable limit, no limitation, or urged that
it be indexed. The remaining commenters expressed agreement with the
increase and/or sought clarifications.
Two commenters asked whether the actual fees assessed for permits
are payable under Sec. 24.301(g)(17)(v). This provision includes the
actual time and effort required to obtain permits and to attend zoning
hearings, not the assessed fees for the permits.
Section 24.301(g)(17) also includes the time spent in negotiating
the purchase of a replacement business site based on a reasonable
salary or earnings rate. We have added paragraph (g)(17)(vi) to provide
for these expenses. In addition, fees necessary in obtaining such
permits are eligible costs but should be based on a pre-approved hourly
rate that is reasonable and necessary.
Section 24.301(g)(18)
We received ten comments on Sec. 24.301(g)(18) concerning low
value/high bulk personal property. Most comments concerned basing the
moving payments on the lesser of the amount received if sold, and the
replacement cost at the new location of the business. Two commenters
stated that a determination as to whether items should be moved should
be a joint decision between business operator and the displacing
Agency.
We have adopted the proposed language providing for payment of the
lesser of the described amounts. We believe that the business owner
should be permitted to make the decision on whether the material is to
be moved to the new business location. However, the amount of the
reimbursement in the move cost should be limited to that set forth in
the final rule. Also, there was concern that the items listed in the
last sentence of Sec. 24.301(g)(18) are the only items that can be
moved under this provision. However, that was not the intent. The items
listed are only examples and there certainly can be other items that
qualify under this provision. We have made a minor clarification to
address this concern.
Section 24.301(h)(12)
We received six comments on Sec. 24.301(h)(12). Two commenters
objected to listing refundable security and utility deposits as
ineligible moving expenses. While a good argument might be made for
providing reimbursement for these expenses, the Uniform Act provides no
authority for their reimbursement and we therefore cannot include them
in the regulatory description of ``actual, reasonable moving
expenses,'' without a legislative change. The fact that they are
refundable would remove them from eligibility.
Section 24.302 Fixed Payment For Moving Expenses--Residential Moves
We received one comment on the proposed changes to Sec. 24.302,
Fixed Residential Moving Cost Schedule (FRMCS). The commenter requested
that the amounts be updated annually or biannually. The same commenter
requested that the amount be increased to be more in line with what a
professional commercial mover would receive.
The purpose of the FRMCS is not to be in competition with
professional commercial movers, but rather to offer an option to the
commercial move. There are currently three methods to move personal
property from a dwelling; a professional commercial mover, the fixed
residential moving cost schedule, or an actual cost move based on
receipted bills (See Sec. 24.301(b).) The Fixed Residential Moving
Cost Schedule is updated every three years. The language in the final
rule will remain as proposed in the NPRM.
Section 24.303(b) Related Nonresidential Eligible Expenses
We received 7 comments requesting further clarification of eligible
professional services mentioned in Sec. 24.303(b). There was confusion
as to whether professional services included attorneys' fees and other
professional services relating to costs of negotiating to acquire
property, closing costs, etc.
Generally, professional services performed prior to the purchase or
lease of a replacement site, to determine it's suitability for the
displaced person's
[[Page 605]]
business operation, would be eligible for reimbursement; provided the
Agency determines that they are actual, reasonable and necessary. Such
professional services include, but are not limited to, soil testing,
feasibility and marketing studies, and may be based on a pre-approved
hourly rate. Fees and commissions directly related to the purchase or
lease of the site, such as realtor commissions or finder's fees are
ineligible for reimbursement.
Moving expenses for businesses sometimes include the cost of
obtaining outside professional services made necessary only by the
relocation. For example, attorneys' fees for representation before
zoning authorities, or the cost of obtaining a soil analysis necessary
in the preparation of a replacement site are directly related to
relocation, and may be considered eligible expenses. By contrast, if
these services are provided by regular employees of the displaced
business, (such as staff engineers,) or professional contractors
ordinarily used by the business for its everyday operations (such as
legal counsel on retainer), these services are considered ordinary
costs of doing business, and cannot be recognized among eligible moving
expenses.
One commenter suggested we revise the wording in this section for
clarity. We concur and have made some minor modifications.
Section 24.304 Reestablishment Expenses--Nonresidential Moves
Three comments suggested that Sec. 24.303 be expanded to include
costs necessary to satisfy requirements of Federal, State or local law,
code or ordinance, including the Americans with Disabilities Act (ADA).
In the NPRM we considered such costs to be among those listed as
reestablishment expenses in Sec. 24.304(a). As mentioned above,
reestablishment expenses are, by statute, available to displaced farms,
nonprofits, and small businesses, and are limited to $10,000.
In the NPRM we proposed increasing assistance to businesses and
farms by changing some of the costs that had been considered to be
reestablishment expenses, to actual reasonable moving expenses, which
are not subject to the $10,000 cap. However, the proposed changes only
included those costs that were unrelated to improvements to the
replacement site. Costs related to improving the replacement real
property were more clearly considered to be ``reestablishment
expenses,'' and accordingly, were retained in Sec. 24.304.
We continue to believe that this approach provides the most
reasonable interpretation of the Uniform Act's requirements and,
therefore, in the final rule we have left costs of repairs or
improvements to the replacement real property, required by Federal,
State or local law or codes, in Sec. 24.304, as reestablishment
expenses.
Section 24.304(a)(2)
We received one comment pointing out that Sec. 24.304(a)(2), which
concerns necessary modifications to the replacement property, seems to
apply to existing buildings which are purchased or leased and must be
renovated to some extent, and asked if this section applied to new
construction.
The cost of constructing a new business building on the vacant
replacement property is considered a capital expenditure and, as
provided in Sec. 24.304(b)(1), is generally ineligible for
reimbursement as a reestablishment expense. In those rare instances
when a business cannot relocate without construction of a replacement
structure, a displacing Agency may request a waiver from the funding
Agency of Sec. 24.304(b)(1) under the provisions of 49 CFR part 24.7.
Subpart E--Replacement Housing Payments
Section 24.401(a) Eligibility
One commenter assumed that appendix A is not regulatory. This is
not accurate. Appendix A is an integral part of the regulation, and,
while it does not impose mandatory requirements, it does provide
important additional guidance and information concerning the purpose
and intent of a number of the provisions in part 24.
Section 24.401(e) Incidental Expenses
One commenter suggested that the payment of actual reasonable
expenses incidental to the purchase of a replacement dwelling,
described in Sec. 24.401(e), would be simplified by providing a single
payment for a displaced homeowner's actual closing costs up to a fixed
amount, such as $3,000. While this suggestion might simplify the
computation of this component of the replacement housing payment, it
was not proposed for public comment in the NPRM and, therefore, it is
outside the scope of this rulemaking. However, this suggestion could be
addressed in a future rulemaking effort to update 49 CFR part 24.
Section 24.401(f) Rental Assistance for 180-day Homeowner
We received nine comments on the change in proposed in Sec.
24.401(f) that would allow a rental assistance payment for a displaced
180-day homeowner (who elects to rent instead of purchase a replacement
dwelling) to exceed $5,250 if the difference in the estimated market
rent of the acquired dwelling and the rent for a comparable replacement
dwelling support a higher figure. The NPRM also proposed that the
rental supplemental payment not be allowed to exceed the amount the
180-day homeowner would have received as a housing (purchase)
supplemental payment under Sec. 24.401(b).
Three of the nine commenters suggested clarification as to the
maximum amount of assistance to which the displaced 180-day homeowner
is entitled. In response, we have made several minor changes to this
section. The rental assistance payment cannot exceed the amount the
180-day homeowner would have received under Sec. 24.401(b)(1) (see
also Sec. 24.401(c)) which describes how that amount is determined.
The payment cannot include costs for expenses under Sec. Sec.
24.401(b)(2) and (3) (also see Sec. Sec. 24.401(d) and (e)) as it is
not possible to calculate what the 180-day homeowner who rents would
have received for increased mortgage interest costs and incidental
costs if the person does not actually purchase a replacement dwelling.
Section 24.402(b)(2) Base Monthly Rental for Replacement Dwelling
We received 23 comments on the proposed change in Sec.
24.402(b)(2) that reflects more closely the statutory requirement that
only a low-income displaced person's income shall be taken into
consideration when calculating rental assistance payments for a
comparable replacement dwelling (42 U.S.C. 4624(a)). We have adopted
this change in the final rule and it is more in line with the intent of
the Uniform Act in that it assures consideration of income for low-
income persons. The procedures in Sec. 24.402(b)(2)(ii) will continue
to use 30 percent of monthly gross household income, but only for
displaced persons who qualify as low income under the U.S. Department
of Housing and Urban Development's Annual Survey of Income Limits.\3\
---------------------------------------------------------------------------
\3\ A link to the applicable URA Low Income Limit is available
on FHWA's Web site at the following URL: http://www.fhwa.dot.gov/realestate/ua/ualic.htm.
---------------------------------------------------------------------------
Of the 23 comments, thirteen strongly favored the change; five
expressed concern about increased administrative burden; three
commenters requested that we drop the 30 percent altogether; one
expressed concern that the change would deny replacement housing
[[Page 606]]
assistance to tenants; and one commenter pointed out that there would
be variations of income by county and State.
We have carefully considered each comment and for the following
reasons, we have adopted the proposed change in the final rule.
Regarding the increased administrative burden, we have requested
several of our field offices to use the HUD Annual Survey of Income
Limits and find it relatively user friendly. The initial attempt, as in
any new procedure, was awkward, but additional tests became
increasingly easier. The request to drop the 30 percent requirement
completely would not be in compliance with the Uniform Act, as noted
above. The concern by one commenter that the change would eliminate
those who are most in need of the assistance is incorrect. We believe
that we would be reaching out specifically to those who are truly in
need of additional assistance. Those tenants that do not fall into the
low-income category will be offered a comparable dwelling based on a
rent-to-rent comparison.
Section 24.402(c) Downpayment Assistance Payment
We received eight comments on the proposed change in the criteria
to receive a downpayment. Four commenters expressed support for the
proposed change to the discussion of Sec. 24.402(c) in appendix A. The
proposal would remove language that indicated that an Agency should
limit the amount of downpayment assistance to an amount ordinarily
required for conventional loan financing. The proposed change allows a
displaced person to apply the full amount of the rental replacement
housing payment as a downpayment towards the purchase price of the
replacement dwelling and related incidental expenses, regardless of any
limitation on what is ordinarily required for conventional loan
financing. No negative responses were received and the change has been
adopted.
Two commenters stated that Sec. 24.404(c)(1)(viii), (concerning
possible differences between a rental assistance payment and a
downpayment when providing housing of last resort) was inconsistent
with the proposed change to appendix A, Sec. 24.402(c), described
above. We agree and, accordingly, have deleted Sec.
24.404(c)(1)(viii).
Section 24.403(a) Determining Cost of Comparable Replacement Dwelling
The NPRM proposed that the homeowner's replacement housing payment
be broadened to include any increase in real property taxes at the
replacement dwelling during the first two years of ownership. We
received 31 widely varying comments on this proposal. Nine comments
opposed the proposed change. Six comments supported the proposal.
Eleven comments supported the concept, but either disagreed with the
details of the proposal, or also wanted to include any increases in
such costs as insurance, utilities and homeowner's association fees.
The remaining comments asked for clarification or expressed no opinion.
Comments that opposed the proposal mentioned such factors as; the
addition of substantial administrative burdens, with relatively little
benefit; the difficulty in factoring in various State or local
provisions that grant property tax relief based on age, income,
disability or other factors; and the view that an increase in real
property taxes is not really part of the ``cost'' of the replacement
dwelling for purposes of the Uniform Act.
We have carefully considered the comments and have decided not to
adopt this proposed change. Our decision is based primarily on the
general administrative burdens mentioned in the comments, as well as on
the difficulty, suggested in the comments, of trying to develop a
reasonably equitable and manageable system for providing short term
compensation for property tax increases. We believe that it would be
difficult for such a system to easily take into account the variable
and inconsistent nature of such taxes resulting from provisions of
State and local law that often provide reduced taxes in certain
circumstances or to certain groups. Our decision was also influenced by
the lack of any clear indication in the Uniform Act that real property
taxes were intended to be included as part of the cost of a comparable
dwelling.
Not including this proposal in the final rule does not affect the
ability of any displacing Agency to compensate displaced homeowners for
increased property taxes and similar costs if otherwise authorized to
do so.
Section 24.403(a)(1)
The NPRM proposed removing the requirement that Agencies adjust the
asking price of comparable replacement dwellings in computing a
homeowner's replacement housing payment. That adjustment was considered
burdensome for displacing Agencies, as well as for displaced homeowners
by, in effect, forcing the homeowner to negotiate for a price lower
than the asking price when purchasing a replacement dwelling.
We received 14 comments on this proposal. Ten supported it, and
three asked for some further clarification. One commenter requested the
right to continue adjusting the comparable. We have adopted the
proposal without change. Accordingly, since the requirement to adjust
asking prices has been deleted from the rule, there is no longer any
authority or basis for Agencies operating under the Uniform Act to make
such adjustments (which would reduce the amount of the homeowner's
replacement housing payment). Displacing Agencies must now use the
asking price of a comparable dwelling in computing the replacement
housing payment.
Section 24.403(a)(6)
In the NPRM, we proposed to include language in Sec.
24.2(a)(6)(viii) that would have allowed rent owed to an Agency to be
taken into account when determining whether a comparable replacement
dwelling is within a displaced person's financial means. Because we
received a comment objecting to similar language in Sec.
24.2(a)(6)(viii), we have decided to remove this language from both
24.403(a)(6) and Sec. 24.2(a)(6)(viii).
Subpart F--Mobile Homes
Sections 24.501 through 24.502
We received seven comments on Subpart F, Mobile Homes, concerning
clarifications of Sec. Sec. 24.501 and 24.502. Four commenters
identified incorrect wording in Sec. Sec. 24.502(a)(1)(iii) and
24.502(b)(2). The error concerned the replacement housing payment
eligibility computation for an eligible homeowner that is displaced
from his/her mobile home. We agree that the wording did not accurately
transpose in formatting the NPRM and the error has been corrected in
Sec. Sec. 24.502(a)(1)(iii) and 24.502(b)(2).
Two commenters suggested a simplification of the terms describing a
displaced homeowners application of a rental assistance payment and
concerning a homeowner who is not displaced from their mobile home.
After reviewing these provisions we have determined that they are clear
as proposed in the NPRM; however, to further clarify the comparable
replacement home site we have moved the existing Sec. Sec. 24.502(d)
to 24.502(b)(3).
Distributions Tables
For ease of reference, distribution and derivation tables are
provided for the current sections and the proposed sections as follows:
[[Page 607]]
Derivation Table
------------------------------------------------------------------------
New section Old section
------------------------------------------------------------------------
24.1...................................... 24.1.
24.2(a)(1)................................ 24.2 Agency.
24.2(a)(2)................................ 24.2 Alien not lawfully
present in the United
States.
24.2(a)(3)................................ 24.2 Appraisal.
24.2(a)(4)................................ 24.2 Business.
24.2(a)(5)................................ 24.2 Citizen.
24.2(a)(6)................................ 24.2 Comparable replacement
dwelling.
24.2(a)(6)(i) through (vii)............... 24.2 Comparable replacement
dwelling (1) through (7).
24.2(a)(6)(viii)(A) through (C)........... 24.2 Comparable replacement
dwelling (8)(i) through
(iii).
24.2(a)(6)(ix)............................ None.
24.2(a)(7)................................ 24.2 Contribute materially.
24.2(a)(8)................................ 24.2 Decent, safe, and
sanitary dwelling.
24.2(a)(9)................................ 24.2 Displaced person.
24.2(a)(9)(ii)(M)......................... None.
24.2(a)(10)............................... 24.2 Dwelling.
24.2(a)(11)............................... None.
24.2(a)(12)............................... 24.2 Farm operation.
24.2(a)(13)............................... 24.2 Federal financial
assistance.
24.2(a)(14)............................... None.
24.2(a)(15)............................... 24.2 Initiation of
negotiations.
24.2(a)(15)(iv)........................... None.
24.2(a)(16)............................... 24.2 Lead Agency.
24.2(a)(17)............................... None.
24.2(a)(18)............................... 24.2 Mortgage.
24.2(a)(19)............................... 24.2 Nonprofit organization.
24.2(a)(20)............................... 24.2 Owner of a dwelling.
24.2(a)(21)............................... 24.2 Person.
24.2(a)(22)............................... 24.2 Program or project.
24.2(a)(23)............................... 24.2 Salvage value.
24.2(a)(24)............................... 24.2 Small business.
24.2(a)(25)............................... 24.2 State.
24.2(a)(26)............................... 24.2 Tenant.
24.2(a)(27)............................... 24.2 Uneconomical remnant.
24.2(a)(28)............................... 24.2 Uniform Act.
24.2(a)(29)............................... 24.2 Unlawful occupancy.
24.2(a)(30)............................... 24.2 Utility costs.
24.2(a)(31)............................... 24.2 Utility facility.
24.2(a)(32)............................... 24.2 Utility relocation.
24.2(a)(33)............................... None.
24.2(b)................................... None.
24.8(m)................................... None.
24.8(n)................................... None.
24.8(o)................................... None.
24.101(a) and (b)......................... 24.101(a).
24.101(b)(1).............................. 24.101(a)(1).
24.101(b)(1)(i)........................... 24.101(a)(1)(i).
24.101(b)(1)(ii).......................... 24.101(a)(1)(ii).
24.101(b)(1)(iii)......................... 24.101(a)(1)(iii).
24.101(b)(1)(iv).......................... 24.101(a)(1)(iv).
24.101(b)(2).............................. 24.101(a)(2).
24.101(b)(2)(i)........................... 24.101(a)(2)(i).
24.101(b)(2)(ii).......................... 24.101(a)(2)(ii).
24.101(b)(3).............................. 24.101(a)(3).
24.101(b)(4).............................. 24.101(a)(4).
24.101(b)(5).............................. 24.101(a)(5).
24.101(c)................................. 24.101(b).
24.101(d)................................. 24.101(c).
24.102(c)(1).............................. 24.102(c).
24.102(n)................................. 24.103(e).
24.103(a)(1).............................. 24.103(a)(2).
24.103(a)(2).............................. 24.103(a)(3).
24.103(a)(3).............................. 24.103(a)(4).
24.103(a)(4).............................. 24.103(a)(5).
24.103(a)(5).............................. 24.103(a)(6).
24.203(a)(2) through (5).................. 24.203(a)(4).
24.203(d)................................. 24.2 Notice of intent to
acquire.
24.205(a)(4).............................. None.
24.205(a)(5).............................. 24.205(a)(4).
24.205(c)(2)(i)(A) through (F)............ None.
24.205(c)(2)(ii)(A)....................... 24.205(c)(2)(ii).
24.205(c)(2)(ii)(B)....................... 24.205(c)(2)(ii)(A).
24.205(c)(2)(ii)(C)....................... 24.205(c)(2)(ii)(B).
24.205(c)(2)(ii)(D)....................... 24.205(c)(2)(ii)(C).
24.205(c)(2)(ii)(E)....................... 24.205(c)(2)(ii)(D).
24.205(c)(2)(ii)(F)....................... None.
None...................................... 24.205(c)(2)(vi).
24.205(e)................................. 24.205(c)(2)(iv).
24.207(e)................................. 24.207(g).
24.207(f) and (g)......................... None.
24.301(a)................................. 24.303(a) and 24.502(b).
24.301(a)(1) and (2)...................... 24.502(a).
24.301(b)(1) and (2)...................... 24.301 Intro. para.
24.301(b)(1).............................. 24.303(a).
24.301(b)(2)(i)........................... 24.302 First sentence.
24.301(b)(3).............................. None.
24.301(c)................................. None.
24.301(d)................................. 24.303(a).
24.301(d)(1) and (2)...................... 24.303 (c).
24.301(f)................................. 24.303(e).
24.301(g)(1).............................. 24.303(a)(1) and 24.301(a).
24.301(g)(2).............................. 24.301(b) and 24.303(a)(2).
24.301(g)(3).............................. 24.303(a)(3).
24.301(g)(4).............................. 24.303(a)(4) and 24.301(d).
24.301(g)(5).............................. 24.303(a)(5) and 24.301(e).
24.301(g)(6).............................. 24.303(a)(7) and 24.301(f).
24.301(g)(7).............................. 24.303(a)(14) and 24.301(g).
24.301(g)(8).............................. 24.502(b)(1).
24.301(g)(9).............................. 24.502(b)(2).
24.301(g)(10)............................. 24.502(b)(3).
24.301(g)(11)............................. 24.303(a)(6).
24.301(g)(12)............................. 24.303(a)(8).
24.301(g)(12)(i) through (iii)............ 24.303(a)(8)(i) through
(iii).
24.301(g)(13) through (17)................ 24.303(a)(9) through
(13)(iv).
24.301(g)(17)(v) and (vi)................. None.
24.301(g)(18)............................. None.
24.301(h)(1) through (11)................. 24.305(a) through (k).
24.301(i)................................. 24.303(b).
24.301(j)................................. 24.303(d).
24.303 Intro. para........................ 23.303 Intro. para.
24.303(a)................................. 24.304(a)(4).
24.303(b)................................. 24.304(a)(7) and (a)(9).
24.303(c)................................. 24.304(a)(11).
24.304(a)(4).............................. 24.304(a)(5).
24.304(a)(5).............................. 24.304(a)(8).
24.304(a)(6).............................. 24.304(a)(10).
24.304(a)(7).............................. 24.304(a)(12).
24.305.................................... 24.306.
24.305(b)(1) through (4).................. 24.306 (b)(1) through (4).
24.305(c) through (e)..................... 24.306 (c) through (e).
24.306.................................... 24.307.
24.401(c)(2).............................. 24.401(c)(4).
24.403(a)(5).............................. 24.207(e).
24.403(a)(6).............................. 24.207(f).
24.403(a)(7).............................. 24.401(c)(2).
24.403(g)................................. 24.401(c)(3).
None...................................... 24.404(c)(1)(viii).
24.501(a)................................. 24.501 Intro. para.
24.501(b)................................. 24.505(e).
24.502 Heading............................ 24.503.
24.502(a)................................. 24.503(a)(1) and 505(c).
24.502(a)(1).............................. 24.503(a)(1) and 505(c).
24.502(a)(2) and (3)...................... 24.503(a)(2) and (3).
24.502(b)................................. 24.503(b).
24.502(b)(1).............................. None.
24.502(b)(2).............................. 24.503(a)(3) and 503(b).
24.502(c)................................. 24.505(a).
24.502(d)................................. 24.503(a)(3)(iii) and
24.505(b)(1).
24.502(e)................................. 24.505(b)(2).
24.503.................................... 24.504.
------------------------------------------------------------------------
Distribution Table
------------------------------------------------------------------------
Old section New section
------------------------------------------------------------------------
Subpart A Subpart A
-------------------------------------------
24.1...................................... 24.1 Text unchanged.
24.2 Heading.............................. 24.2 Heading revised.
None...................................... 24.2(a) Introductory para.
added.
Agency.................................... 24.2(a)(1) Revised.
(1) Acquiring agency...................... 24.2(a)(1)(i) Redesignated
and revised.
(2) Displacing agency..................... 24.2(a)(1)(ii) Redesignated
and text unchanged.
(3) Federal agency........................ 24.2(a)(1)(iii) Redesignated
and text unchanged.
(4) State agency.......................... 24.2(a)(1)(iv) Redesignated
and text unchanged.
Alien not lawfully present in the US...... 24.2(a)(2) Redesignated.
Appraisal................................. 24.2(a)(2)(i) Redesignated
and revised.
24.2(a)(2)(ii) Redesignated
and text unchanged.
24.2(a)(3) Redesignated and
text unchanged.
Business.................................. 24.2(a)(4) Redesignated.
[[Page 608]]
(1) and (2)............................... 24.2(a)(4)(i) and (ii)
Redesignated and revised.
(2) and (3)............................... 24.2(a)(4)(iii) and (iv)
Redesignated and text
unchanged.
Citizen................................... 24.2(a)(5) Redesignated and
text unchanged.
Comparable replacement dwelling........... 24.2(a)(6) Redesignated and
text unchanged.
(1) and (2)............................... 24.2(a)(6)(i) and (ii)
Redesignated and revised.
(3) through (6)........................... 24.2(a)(6)(iii) through (vi)
Redesignated and text
unchanged.
(7) and (8)............................... 24.2(a)(6)(vii) and (viii)
Redesignated and revised.
(8)(i) through (iii)...................... 24.2(a)(6)(viii) (A) through
(C) Redesignated and text
unchanged.
None...................................... 24.2(a)(6)(ix) Added.
Contribute materially..................... 24.2(a)(7) Redesignated and
text unchanged.
Decent, safe, and sanitary dwelling....... 24.2(a)(8) Redesignated and
revised.
(1) through (3)........................... 24.2(a)(8)(i) through (iii)
Redesignated and text
unchanged.
(4) Sentence one.......................... 24.2(a)(8)(iv) Redesignated
and revised.
(4) Remaining sentences................... 24.2(a)(8)(iv) Redesignated
and text unchanged.
(5)....................................... 24.2(a)(8)(vi) Redesignated
and revised.
(6)....................................... 24.2(a)(8)(vii) Redesignated
and revised.
Displaced Person.......................... 24.2(a)(9) Redesignated.
Displaced person (1)...................... 24.2(a)(9)(i) Redesignated
and revised.
Displaced person (1)(i)................... 24.2 (a)(9)(i)(A)
Redesignated and revised.
Displaced person (1)(ii).................. 4.2 (a)(9)(i)(B)
Redesignated and text
unchanged.
Displaced person (1)(iii)................. 24.2 (a)(9)(i)(C)
Redesignated and text
unchanged.
Persons not displaced (2)................. 24.2 (a)(9)(ii) Redesignated
and text unchanged.
Persons not displaced (2)(i) through (iii) 24.2 (a)(9)(ii) (A) through
(C) Redesignated and text
unchanged.
Persons not displaced (2)(iv) through 24.2 (a)(9)(ii)(D) through
(viii). (H) Redesignated and
revised.
Displaced person (2)(ix).................. 24.2(a)(9)(ii)(I)
Redesignated and text
unchanged.
Displaced person (2)(x) and (xi).......... 24.2(a)(9)(ii)(J) and (K)
Redesignated and revised.
Displaced person (2)(xii)................. 24.2(a)(9)(ii)(L)
Redesignated and revised.
None...................................... 24.2(a)(9)(ii)(M) Added.
Dwelling.................................. 24.2(a)(10) Redesignated and
text unchanged.
None...................................... 24.2(a)(11) Added.
Farm operation............................ 24.2(a)(12) Redesignated and
text unchanged.
Federal financial assistance.............. 24.2(a)(13) Redesignated and
text unchanged.
None...................................... 24.2(a)(14) Added.
Initiation of negotiations Intro. para.... 24.2(a)(15) Intro. para.
Redesignated and text
unchanged.
(1) and (2)............................... 24.2(a)(15)(i) and (ii)
Redesignated and text
unchanged.
(3)....................................... 24.2(a)(15)(iii)
Redesignated and revised.
None...................................... 24.2(a)(15)(iv) Added.
Lead agency............................... 24.2(a)(16) Redesignated and
text unchanged.
None...................................... 24.2(a)(17) Added.
Mortgage.................................. 24.2(a)(18) Redesignated and
text unchanged.
Nonprofit organization.................... 24.2(a)(19) Redesignated and
text unchanged.
Notice of intent to acquire or notice.....
of eligibility for relocation assistance.. 24.203(d) Revised.
Owner of a dwelling....................... 24.2(a)(20) Redesignated and
revised.
(1), (2) and (4).......................... 24.2(a)(20)(i), (ii) and
(iv) Redesignated and text
unchanged.
(3)....................................... 24.2(a)(20)(iii)
Redesignated and revised.
Person.................................... 24.2(a)(21) Redesignated.
Program or project........................ 24.2(a)(22) Redesignated.
Salvage value............................. 24.2(a)(23) Revised.
Small business............................ 24.2(a)(24) Redesignated.
State..................................... 24.2(a)(25) Redesignated.
Tenant.................................... 24.2(a)(26) Redesignated.
Uneconomic remnant........................ 24.2(a)(27) Redesignated.
Uniform Act............................... 24.2(a)(28) Revised.
Unlawful occupancy........................ 24.2(a)(29) Revised.
Utility costs............................. 24.2(a)(30) Redesignated and
revised.
Utility facility.......................... 24.2(a)(31) Redesignated.
Utility relocation........................ 24.2(a)(32) Redesignated.
None...................................... 24.2(a)(33) Added.
None...................................... 24.2(b) Added.
24.3...................................... 24.3 Text unchanged.
24.4(a)(1) through (3).................... 24.4(a)(1) through (3) Text
unchanged.
24.4(b) and (c)........................... 24.4(b) and (c) Text
unchanged.
24.5 through 24.7......................... 24.5 through 24.7 Text
unchanged.
24.8(a) through (g)....................... 24.8(a) through (g) Text
unchanged.
24.8(h)................................... 24.8(h) Revised.
24.8(i)................................... 24.8(i) Revised.
24.8(j) through (l)....................... 24.8(j) through (l) Text
unchanged.
24.8(m)................................... 24.8(m) Removed.
24.8(n)................................... 24.8(m) Redesignated.
None...................................... 24.8(n) Added.
None...................................... 24.8(o) Added
24.9(a) and (b)........................... 24.9(a) and (b) Text
unchanged.
24.9(c)................................... 24.9(c) Revised.
24.10(a) through (f)...................... 24.10(a) through (f) Text
unchanged.
24.10(g).................................. 24.10(g) Revised.
24.10(h).................................. 24.10(h) Text unchanged.
-------------------------------------------
Subpart B Subpart B
-------------------------------------------
24.101 Heading............................ 24.101 Heading Text
unchanged.
24.101(a)................................. 24.101(a) Revised.
24.101(a) Second phrase................... 24.101(b) Redesignated and
revised.
24.101(a)(1).............................. 24.101(b)(1) Redesignated
and revised.
24.101(a)(1)(i)........................... 24.101(b)(1)(i) Redesignated
and revised.
24.101(a)(1)(ii) and (iii)................ 24.101(b)(1)(ii) and (iii)
Redesignated and revised.
24.101(a)(1)(iv).......................... 24.101(b)(1)(iv)
Redesignated and revised.
24.101(a)(2).............................. 24.101(b)(2) Redesignated
and text unchanged.
24.101(a)(2)(i)........................... 24.101(b)(2)(i) Redesignated
and revised.
24.101(a)(2)(ii).......................... 24.101(b)(2)(ii)
Redesignated and revised.
24.101(a)(3) and (4)...................... 24.101(b)(3) and (4)
Redesignated and text
unchanged.
24.101(a)(5).............................. 24.101(b)(5) Redesignated
and revised.
[[Page 609]]
24.101(b)................................. 24.101(c) Redesignated and
revised.
24.101(c)................................. 24.101(d) Redesignated and
text unchanged.
24.102(a)................................. 24.102(a) Text unchanged.
24.102(b)................................. 24.102(b) Revised.
24.102(c) Intro. para..................... 24.102(c) Intro. para. Text
unchanged.
24.102(c)(1).............................. 24.102(c)(1) Revised.
24.102(c)(2).............................. 24.102(c)(2)(i) and (ii)
redesignated and revised.
None...................................... 24.102(c)(2)(ii)(A)
24.102(d)................................. 24.102(d) Revised.
24.102(e)................................. 24.102(e) Text unchanged.
24.102(f)................................. 24.102(f) Revised.
24.102(g) and (h)......................... 24.102(g) and (h) Text
unchanged.
24.102(i) through (k)..................... 24.102(i) through (k)
Revised.
24.102 (l)................................ 24.102 (l) Text unchanged.
24.102(m)................................. 24.102(m) Revised.
None...................................... 4.102(n) Added.
24.103 Heading............................ 24.103 Heading. Text
unchanged.
24.103(a)................................. 24.103(a) Revised.
24.103(a)(1).............................. Appendix 24.103(a).
24.103(a)(2).............................. 24.103(a)(1) Redesignated
and revised.
24.103(a)(3).............................. 24.103(a)(2) Redesignated
and revised.
24.103(a)(4) through (6).................. 24.103(a)(3) through (5)
Redesignated. and text
unchanged.
24.103(b) and (c)......................... 24.103(b) and (c) Revised.
24.103(d) Heading and (d)(1).............. 24.103(d) Heading and
(d)(1)Revised.
24.103(d)(2).............................. 24.103(d)(2) Revised.
24.103(e)................................. 24.102(n) Redesignated and
revised.
24.104 Introductory para.................. 24.104 Introductory para.
Text unchanged.
24.104(a), (b) and (c).................... 24.104(a), (b) and (c)
Revised.
24.105(a) and (b)......................... 24.105(a) and (b) Text
unchanged.
24.105(c)................................. 24.105(c) Revised.
24.105(d) Introductory para............... 24.105(d) Introductory para.
Revised.
24.105(d)(1) through D24.105(e)........... 24.105(d)(1) through
24.105(e) Text unchanged.
24.106(a) and (b)......................... 24.106(a) and (b) Text
unchanged.
24.107 through 24.108..................... 24.107 through 24.108 Text
unchanged.
-------------------------------------------
Subpart C Subpart C
-------------------------------------------
24.201.................................... 24.201 Text unchanged.
24.202.................................... 24.202 Revised.
24.203 (a) and (a)(1) and (2)............. 24.203(a)(1) and (2) Text
unchanged.
24.203(a)(3).............................. 24.203(a)(3) Text unchanged.
24.203(a)(4).............................. 24.203(a)(5) Redesignated
and revised
24.203(b)................................. 24.203(b) Revised.
24.203(c) and (c)(1)...................... 24.203(c) and (c)(1) Text
unchanged.
24.203(c)(2).............................. 24.203(c)(2) Revised.
24.203(c)(3).............................. 24.203(c)(3) Text unchanged.
24.203(c)(4).............................. Removed.
24.203(c)(5).............................. 24.203(c)(4) Redesignated
and text unchanged.
None...................................... 24.203(d) Added.
24.204(a)................................. 24.204(a) Revised.
24.204(a)(1) through (b) Intro. para...... 24.204(a)(1) through (b)
Intro. para. Text
unchanged.
24.204(b)(1).............................. 24.204(b)(1) Revised.
24.204(b)(2) and (3)...................... 24.204(b)(2) and (3) Text
unchanged.
24.204(c) Intro. para..................... 24.204(c) Intro. para.
Revised.
24.204(c)(1) through (3).................. 24.204(c)(1) through (3)
Text unchanged.
24.205(a)................................. 24.205(a) Revised.
24.205(a)(1) and (2)...................... 24.205(a)(1) and (2)
Revised.
24.205(a)(3).............................. 24.205(a)(3) Text unchanged.
None...................................... 24.205(a)(4) Added.
24.205(a)(4).............................. 24.205(a)(5) Redesignated
and text unchanged.
24.205(b) through 24.205(c)(2)............ 24.205(b) through
24.205(c)(2) Text
unchanged.
24.205(c)(2)(i)........................... 24.205(c)(2)(i) Revised.
None...................................... 24.205(c)(2)(i)(A) through
(F) Added.
24.205(c)(2)(ii) Added
24.205(c)(2)(ii).......................... 24.205(c)(2)(ii)(A)
Redesignated and text
unchanged.
24.205(c)(2)(ii)(A) and (B)............... 24.205(c)(2)(ii)(B) and (C)
Redesignated and text
unchanged.
24.205(c)(2)(ii)(C) and (D)............... 24.205(c)(2)(ii)(D) and (E)
Redesignated and revised.
None...................................... 24.205(c)(2)(ii)(F) Added.
24.205(c)(2)(iii)......................... 24.205(c)(2)(iii) Revised.
24.205(c)(2)(iv) and (v).................. 24.205(c)(2)(iv) and (v)
Text unchanged.
24.205(c)(2)(vi).......................... 24.205(e) Redesignated and
text unchanged.
24.205(d)................................. 24.205(d) Text unchanged.
24.206.................................... 24.206 Text unchanged.
24.207(a) through (d)(1).................. 24.207(a) through (d)(1)
Text unchanged.
24.207(d)(2).............................. 24.207(d)(2) Revised.
24.207(e)................................. 24.403(a)(5) Redesignated.
24.207(f)................................. 24.403(a)(6) Redesignated
24.207(g)................................. 24.207(e) Redesignated and
text unchanged.
None...................................... 24.207(f) and (g) Added.
24.208 Heading............................ 24.208 Heading Text
unchanged.
24.208(a) through (f) Intro. para......... 24.208(a) through (f) Intro.
para. Text unchanged.
24.208(f)(1).............................. 24.208(f)(1) Revised.
24.208(f)(2) through 24.209............... 24.208(f)(2) through 24.209
Text unchanged.
-------------------------------------------
Subpart D Subpart D
-------------------------------------------
24.301 Heading............................ 24.301 Heading Revised.
24.301 Introductory paragraph............. 24.301(a) Redesignated and
revised.
None...................................... 24.301(a) Added.
24.301(a) and (b)......................... 24.301(g)(1) and (g)(2)
Redesignated and text
unchanged.
None...................................... 24.301(b) Added.
24.301(c)................................. 24.301(g)(3) Redesignated.
None...................................... 24.301(c) Added.
24.301(d) through (f)..................... 24.301(g)(4) through (g)(6)
Redesignated.
None...................................... 24.301(d) through (f) Added.
24.301(g)................................. 24.301(g)(7) Revised.
None...................................... 24.301(g)(18) Added.
None...................................... 24.301(h) through (j) Added.
24.302.................................... 24.302 Revised.
24.303.................................... 24.303 Revised.
24.303(a) through (a)(14)................. 24.301(g)(1) through (g)(17)
Redesignated and revised.
24.303(b) through (b)(3).................. 24.301(i)(1) and (2)
Redesignated and revised.
24.303(c)................................. 24.301(d) Redesignated and
revised.
24.303(d)................................. 24.301(j) Redesignated and
text unchanged.
24.303(e) through (e)(2).................. 24.301(f) through (f)(2)
Redesignated and text
unchanged.
24.304 Heading............................ 24.304 Heading Text
unchanged.
24.304 Introductory para.................. 24.304 Introductory para.
Revised.
24.304(a) through (a)(3).................. 24.304(a) through (a)(3)
Text unchanged.
24.304(a)(4).............................. 24.303(a) Redesignated.
24.304(a)(5).............................. 24.304(a)(4) Redesignated.
[[Page 610]]
24.304(a)(6).............................. 24.301(g)(11) Redesignated.
24.304(a)(7).............................. 24.303(b) Redesignated and
revised.
24.304(a)(8).............................. 24.304(a)(5) Redesignated.
24.304(a)(9).............................. 24.303(b) Redesignated and
revised.
24.304(a)(10)............................. 24.304(a)(6) Redesignated.
24.304(a)(11)............................. 24.303(c) Redesignated and
revised.
24.304(a)(12)............................. 24.304(a)(7) Redesignated.
24.304(b)(1) through (3).................. 24.304(b)(1) through (3)
Text unchanged.
24.304(b)(4).............................. 24.304(b)(4) Revised.
24.305 section heading.................... 24.305 Removed.
24.305(a) through (k)..................... 24.301(h)(1) through (h)(11)
Redesignated and revised.
None...................................... 24.305(h)(12) Added.
24.306 section heading.................... 24.305 Redesignated.
24.306(a)................................. 24.305(a) Redesignated and
revised.
24.306(a)(1) through (a)(5)............... 24.305(a)(1) through (a)(5)
Redesignated and text
unchanged.
24.306(a)(6).............................. 24.305(a)(6) Revised.
24.306(b)................................. 24.305(b) Revised.
24.306(c)................................. 24.305(c) Revised.
24.306(c)(1) through (d).................. 24.305(c)(1) through (d)
Redesignated.
24.306(e)................................. 24.305(e) Revised.
24.307 section heading.................... 24.306 Redesignated.
24.307(a) through (b)..................... 24.306(a) through (b)
Redesignated.
24.307(c)................................. 24.306(c) Revised.
-------------------------------------------
Subpart E Subpart E
-------------------------------------------
24.401 through 24.40l(b).................. 24.401 through 24.401(b)
Text unchanged.
24.401(c)................................. 24.401(c) Text unchanged.
24.401(c)(1).............................. 24.401(c)(1) Revised.
24.401(c)(1)(i) and (ii).................. 24.401(c)(1)(i) and (ii)
Text unchanged.
24.401(c)(2).............................. 24.403(a)(7) Redesignated
and revised.
24.401(c)(3).............................. 24.403(g) Redesignated and
text unchanged.
24.401(c)(4).............................. 24.401(c)(2) Redesignated
and text unchanged.
24.401(c)(4)(i)........................... 24.401(c)(2)(i) Redesignated
and text unchanged.
24.401(c)(4)(ii) and (iii)................ 24.401(c)(2)(ii) and (iii)
Redesignated and revised.
24.401(c)(4)(iv).......................... 24.401(c)(2)(iv)
Redesignated and text
unchanged.
24.401(d)................................. 24.401(d) Text unchanged.
24.401(d)(1).............................. 24.401(d) Revised.
24.401(d)(2) through 24.401(e)(3)......... 24.401(d)(2) through
24.401(e)(3) Text
unchanged.
24.401(e)(4).............................. 24.401(e)(4) Revised.
24.401(e)(5) through (e)(9)............... 24.401(e)(5) through (e)(9)
Text unchanged.
24.401(f)................................. 24.401(f) Revised.
24.402(a) through (b)(2)(i)............... 24.402(a) through (b)(2)(i)
Text unchanged.
24.402(b)(2)(ii).......................... 24.402(b)(2)(ii) Revised.
24.402(b)(2)(iii) and (b)(3).............. 24.402(b)(2)(iii) and (b)(3)
Text unchanged.
24.402(c)(1).............................. 24.402(c)(1) Revised.
24.402(c)(2).............................. 24.402(c)(2) Text unchanged.
24.403 Heading............................ 24.403 Text unchanged.
24.403(a) and (a)(1)...................... 24.403(a) and (a)(1)
Revised.
24.403(a)(2) through (4).................. 24.403(a)(2) through (4)
Text unchanged.
None...................................... 24.403(a)(5) through (7)
Added.
24.403(b)................................. 24.403(b) Revised.
24.403(c) through (f(1)................... 24.403(c) through (f)(1)
Text unchanged.
24.403(f)(2).............................. 24.403(f)(2) Revised.
24.403(f)(3).............................. 24.403(f)(3) Text unchanged.
None...................................... 24.403(g) Added.
24.404(a) through 404(a)(2)(ii)........... 24.404(a) through
404(a)(2)(ii) Text
unchanged.
24.404(a)(2)(iii)......................... 24.404(a)(2)(iii) Revised.
24.404(b) through 404(c)(1)(vi)........... 24.404(b) through
404(c)(1)(vi) Text
unchanged.
24.404(b) through 404(c)(1)(i)............ 24.404(b) through
404(c)(1)(i) Revised.
24.404(c)(1)(ii) through (vi)............. 24.404(c)(1)(ii) through
(vi) text unchanged.
24.404(c)(1)(vii)......................... 24.404(c)(1)(vii) Revised.
24.404(c)(1)(viii)........................ Removed.
24.404(c)(2) and (3)...................... 24.404(c)(2) and (3)
Revised.
-------------------------------------------
Subpart F Subpart F
-------------------------------------------
24.501 Heading............................ 24.501 Heading Text
unchanged.
24.501 Intro. para........................ 24.501(a) Redesignated and
revised.
None...................................... 24.501(b) Added.
24.502(a)................................. 24.301 (a)(1) and (2)
24.502(b) through (b)(3).................. 24.301(g)(8) through (g)(10)
Redesignated and revised.
24.503 section heading.................... 24.502 Redesignated and
revised.
24.503(a)................................. 24.502(a) Redesignated and
revised.
24.503(a)(1).............................. 24.502(a)(1) Redesignated
and revised.
None...................................... 24.502(a)(1)(i) through
(iii) Added.
24.503(a)(2).............................. 24.502(a)(2) Redesignated
and text unchanged.
24.503(a)(3).............................. 24.502(a)(3) Redesignated
and revised.
24.503(a)(3)(i) through (iv).............. 24.502(a)(3)(i) through (iv)
Redesignated and text
unchanged.
None...................................... 24.502(b)(1) Added.
24.503(b)................................. 24.502(b)(2) Redesignated
and revised.
None...................................... 24.502(b)(3) Added.
None...................................... 24.502 (c) through (e)
Added.
24.504 Heading............................ 24.503 Heading Redesignated
and text unchanged.
24.504 Intro. para........................ 24.503 Intro. para.
Redesignated.
24.504(a) and (b)......................... 24.503(a) and (b)
Redesignated and text
unchanged.
24.504(c)................................. 24.503(c) Redesignated and
revised.
24.505(a) through (e)..................... 24.505(a) through (e)
Removed.
24.505(e)................................. 24.501(b) Redesignated.
24.601.................................... 24.601 Text unchanged.
24.602.................................... 24.602 Revised.
24.603.................................... 24.603 Text unchanged.
------------------------------------------------------------------------
Rulemaking Analyses and Notices
Executive Order 12866 (Regulatory Planning and Review) and DOT
Regulatory Policies and Procedures
The FHWA has determined that this action is not a significant
regulatory action within the meaning of Executive Order 12866, nor is
it significant within the meaning of Department of Transportation
regulatory policies and procedures.
This action updates and streamlines the Uniform Act regulation and
does not include any new initiatives. We have made only nominal
adjustments to enhance services and payments to persons displaced by
Federal and federally-assisted programs and projects. The costs of the
increased benefits will continue to be funded through Federal and
federally-assisted project funds. These changes will assist the 18
Federal Agencies that acquire real property or displace persons, and
several of these Agencies provided input in developing this final rule.
[[Page 611]]
This final rule will not adversely affect, in a material way, any
sector of the economy. This action will assist Agencies in developing
their programs that acquire real property or displace persons by
providing increased assistance, especially for businesses, farms and
nonprofit organizations. None of the changes will materially alter the
budgetary impact of any entitlements, grants, user fees, or loan
programs. Consequently, a full regulatory evaluation is not required.
Regulatory Flexibility Act
In compliance with the Regulatory Flexibility Act (Pub. L. 96-354,
5 U.S.C. 60l-612) the FHWA has evaluated the effects of this action on
small entities and has determined that the final rule will not have a
significant economic impact on a substantial number of small entities.
This action updates the government-wide regulation that provides
assistance for persons, including small businesses, displaced by
Federal and federally-assisted programs or projects. One of the reasons
for the update is to increase assistance for displaced small
businesses. We anticipate this final rule will have a positive impact
on those relatively few small businesses that are affected by such
programs or projects. Financial impacts on local governments are
mitigated by the fact that any increased costs will accrue only on
federally-assisted programs, which will include participation of
Federal funds. For these reasons, the FHWA certifies that this action
will not have a significant economic impact on a substantial number of
small entities.
Unfunded Mandates Reform Act of 1995
This final rule will not impose unfunded mandates as defined by the
Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4, March 22, 1995,
109 Stat. 48). The updates are applicable only on Federal and
federally-assisted programs. This final rule will not result in the
expenditure by State, local, and tribal governments, in the aggregate,
or by the private sector, of $120.7 million or more in any one year (2
U.S.C. 1532).
Executive Order 13132 (Federalism)
This action has been analyzed in accordance with the principles and
criteria contained in Executive Order 13132, and the FHWA has
determined that this action will not have a substantial direct effect
or sufficient federalism implications on States that will limit the
policymaking discretion of the States. The FHWA has also determined
that this action will not preempt any State law, or State regulation,
or affect the States' ability to discharge traditional State
governmental functions.
Executive Order 12372 (Intergovernmental Review)
Catalog of Federal Domestic Assistance Program Number 20.205,
Highway Planning and Construction. The regulations implementing
Executive Order 12372 regarding intergovernmental consultation on
Federal programs and activities apply to this program.
Paperwork Reduction Act
This action does not contain a collection of information
requirement under the Paperwork Reduction Act of 1995, 44 U.S.C. 3501-
3520.
National Environmental Policy Act
The FHWA has analyzed this action for the purpose of the National
Environmental Policy Act of 1969 (42 U.S.C. 4321) and has determined
that this final rule will not have any effect on the quality of the
environment.
Executive Order 12630 (Taking of Private Property)
This action will not affect a taking of private property or
otherwise have taking implications under Executive Order 12630,
Government Actions and Interface with Constitutionally Protected
Property Rights.
Executive Order 12988 (Civil Justice Reform)
This final rule meets applicable standards in Sec. Sec. 3(a) and
3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize
litigation, eliminate ambiguity, and reduce burden.
Executive Order 13045 (Protection of Children)
We have analyzed this final rule under Executive Order 13045,
Protection of Children from Environmental Health Risks and Safety
Risks. This action does not involve an economically significant rule
and does not concern an environmental risk to health or safety that may
disproportionately affect children.
Executive Order 13175 (Tribal Consultation)
The FHWA has analyzed this final rule under Executive Order 13175,
dated November 6, 2000, and believes that this action will not have
substantial direct effects on one or more Indian tribes; will not
impose substantial direct compliance costs on Indian tribal
governments; and will not preempt tribal law. Therefore, a tribal
summary impact statement is not required.
Executive Order 13211 (Energy Effects)
We have analyzed this final rule under Executive Order 13211,
Actions Concerning Regulations That Significantly Affect Energy Supply,
Distribution, or Use. We have determined that it is not a significant
energy action under that order because it is not a significant
regulatory action under Executive Order 12866 and is not likely to have
a significant adverse effect on the supply, distribution, or use of
energy. Therefore, a Statement of Energy Effects under Executive Order
13211 is not required.
Regulation Identification Number
A regulation identification number (RIN) is assigned to each
regulatory action listed in the Unified Agenda of Federal Regulations.
The Regulatory Information Service Center publishes the Unified Agenda
in April and October of each year. The RIN contained in the heading of
this document can be used to cross reference this action with the
Unified Agenda.
List of Subjects in 49 CFR Part 24
Real property acquisition, Relocation assistance, Reporting and
recordkeeping requirements and Transportation.
Issued on: December 27, 2004.
Mary E. Peters,
Federal Highway Administrator.
In consideration of the foregoing, the FHWA amends title 49, Code
of Federal Regulations, Part 24, as set forth below:
PART 24--UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY
ACQUISITION FOR FEDERAL AND FEDERALLY-ASSISTED PROGRAMS
Subpart A--General
Sec.
24.1 Purpose.
24.2 Definitions and acronyms.
24.3 No duplication of payments.
24.4 Assurances, monitoring and corrective action.
24.5 Manner of notices.
24.6 Administration of jointly-funded projects.
24.7 Federal Agency waiver of regulations.
24.8 Compliance with other laws and regulations.
24.9 Recordkeeping and reports.
24.10 Appeals.
Subpart B--Real Property Acquisition
24.101 Applicability of acquisition requirements.
24.102 Basic acquisition policies.
24.103 Criteria for appraisals.
24.104 Review of appraisals.
24.105 Acquisition of tenant-owned improvements.
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24.106 Expenses incidental to transfer of title to the Agency.
24.107 Certain litigation expenses.
24.108 Donations.
Subpart C--General Relocation Requirements
24.201 Purpose.
24.202 Applicability.
24.203 Relocation notices.
24.204 Availability of comparable replacement dwelling before
displacement.
24.205 Relocation planning, advisory services, and coordination.
24.206 Eviction for cause.
24.207 General requirements claims for relocation payments.
24.208 Aliens not lawfully present in the United States.
24.209 Relocation payments not considered as income.
Subpart D--Payments for Moving and Related Expenses
24.301 Payment for actual reasonable moving and related expenses.
24.302 Fixed payment for moving expenses'residential moves.
24.303 Related nonresidential eligible expenses.
24.304 Reestablishment expenses'nonresidential moves.
24.305 Fixed payment for moving expenses'nonresidential moves.
24.306 Discretionary utility relocation payments.
Subpart E--Replacement Housing Payments
24.401 Replacement housing payment for 180-day homeowner-occupants.
24.402 Replacement housing payment for 90-day occupants.
24.403 Additional rules governing replacement housing payments.
24.404 Replacement housing of last resort.
Subpart F--Mobile Homes
24.501 Applicability.
24.502 Replacement housing payment for 180-day mobile homeowner
displaced from a mobile home, and/or from the acquired mobile home
site.
24.503 Replacement housing payment for 90-day mobile home occupants.
Subpart G--Certification
24.601 Purpose.
24.602 Certification application.
24.603 Monitoring and corrective action.
Appendix A to Part 24--Additional Information
Appendix B to Part 24--Statistical Report Form
Authority: 42 U.S.C. 4601 et seq.; 49 CFR 1.48(cc).
Subpart A--General
Sec. 24.1 Purpose.
The purpose of this part is to promulgate rules to implement the
Uniform Relocation Assistance and Real Property Acquisition Policies
Act of 1970, as amended (42 U.S.C. 4601 et seq.) (Uniform Act), in
accordance with the following objectives:
(a) To ensure that owners of real property to be acquired for
Federal and federally-assisted projects are treated fairly and
consistently, to encourage and expedite acquisition by agreements with
such owners, to minimize litigation and relieve congestion in the
courts, and to promote public confidence in Federal and federally-
assisted land acquisition programs;
(b) To ensure that persons displaced as a direct result of Federal
or federally-assisted projects are treated fairly, consistently, and
equitably so that such displaced persons will not suffer
disproportionate injuries as a result of projects designed for the
benefit of the public as a whole; and
(c) To ensure that Agencies implement these regulations in a manner
that is efficient and cost effective.
Sec. 24.2 Definitions and acronyms.
(a) Definitions. Unless otherwise noted, the following terms used
in this part shall be understood as defined in this section:
(1) Agency. The term Agency means the Federal Agency, State, State
Agency, or person that acquires real property or displaces a person.
(i) Acquiring Agency. The term acquiring Agency means a State
Agency, as defined in paragraph (a)(1)(iv) of this section, which has
the authority to acquire property by eminent domain under State law,
and a State Agency or person which does not have such authority.
(ii) Displacing Agency. The term displacing Agency means any
Federal Agency carrying out a program or project, and any State, State
Agency, or person carrying out a program or project with Federal
financial assistance, which causes a person to be a displaced person.
(iii) Federal Agency. The term Federal Agency means any department,
Agency, or instrumentality in the executive branch of the government,
any wholly owned government corporation, the Architect of the Capitol,
the Federal Reserve Banks and branches thereof, and any person who has
the authority to acquire property by eminent domain under Federal law.
(iv) State Agency. The term State Agency means any department,
Agency or instrumentality of a State or of a political subdivision of a
State, any department, Agency, or instrumentality of two or more States
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.
(2) Alien not lawfully present in the United States. The phrase
``alien not lawfully present in the United States'' means an alien who
is not ``lawfully present'' in the United States as defined in 8 CFR
103.12 and includes:
(i) An alien present in the United States who has not been admitted
or paroled into the United States pursuant to the Immigration and
Nationality Act (8 U.S.C. 1101 et seq.) and whose stay in the United
States has not been authorized by the United States Attorney General;
and,
(ii) An alien who is present in the United States after the
expiration of the period of stay authorized by the United States
Attorney General or who otherwise violates the terms and conditions of
admission, parole or authorization to stay in the United States.
(3) Appraisal. The term appraisal means a written statement
independently and impartially prepared by a qualified appraiser setting
forth an opinion of defined value of an adequately described property
as of a specific date, supported by the presentation and analysis of
relevant market information.
(4) Business. The term business means any lawful activity, except a
farm operation, that is conducted:
(i) Primarily for the purchase, sale, lease 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;
(ii) Primarily for the sale of services to the public;
(iii) Primarily for outdoor advertising display purposes, when the
display must be moved as a result of the project; or
(iv) By a nonprofit organization that has established its nonprofit
status under applicable Federal or State law.
(5) Citizen. The term citizen for purposes of this part includes
both citizens of the United States and noncitizen nationals.
(6) Comparable replacement dwelling. The term comparable
replacement dwelling means a dwelling which is:
(i) Decent, safe and sanitary as described in paragraph 24.2(a)(8)
of this section;
(ii) Functionally equivalent to the displacement dwelling. The term
functionally equivalent means that it performs the same function, and
provides the same utility. While a comparable replacement dwelling need
not possess every feature of the displacement dwelling, the principal
[[Page 613]]
features must be present. Generally, functional equivalency is an
objective standard, reflecting the range of purposes for which the
various physical features of a dwelling may be used. However, in
determining whether a replacement dwelling is functionally equivalent
to the displacement dwelling, the Agency may consider reasonable trade-
offs for specific features when the replacement unit is equal to or
better than the displacement dwelling (See appendix A, Sec.
24.2(a)(6));
(iii) Adequate in size to accommodate the occupants;
(iv) In an area not subject to unreasonable adverse environmental
conditions;
(v) In 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;
(vi) On a site that is typical in size for residential development
with normal site improvements, including customary landscaping. The
site need not include special improvements such as outbuildings,
swimming pools, or greenhouses. (See also Sec. 24.403(a)(2));
(vii) Currently available to the displaced person on the private
market except as provided in paragraph (a)(6)(ix) of this section (See
appendix A, Sec. 24.2(a)(6)(vii)); and
(viii) Within the financial means of the displaced person:
(A) A replacement dwelling purchased by a homeowner in occupancy at
the displacement dwelling for at least 180 days prior to initiation of
negotiations (180-day homeowner) is considered to be within the
homeowner's financial means if the homeowner will receive the full
price differential as described in Sec. 24.401(c), all increased
mortgage interest costs as described at Sec. 24.401(d) and all
incidental expenses as described at Sec. 24.401(e), plus any
additional amount required to be paid under Sec. 24.404, Replacement
housing of last resort.
(B) A replacement dwelling rented by an eligible displaced person
is considered to be within his or her financial means if, after
receiving rental assistance under this part, the person's monthly rent
and estimated average monthly utility costs for the replacement
dwelling do not exceed the person's base monthly rental for the
displacement dwelling as described at Sec. 24.402(b)(2).
(C) For a displaced person who is not eligible to receive a
replacement housing payment because of the person's failure to meet
length-of-occupancy requirements, comparable replacement rental housing
is considered to be within the person's financial means if an Agency
pays that portion of the monthly housing costs of a replacement
dwelling which exceeds the person's base monthly rent for the
displacement dwelling as described in Sec. 24.402(b)(2). Such rental
assistance must be paid under Sec. 24.404, Replacement housing of last
resort.
(ix) For a person receiving government housing assistance before
displacement, a dwelling that may reflect similar government housing
assistance. In such cases any requirements of the government housing
assistance program relating to the size of the replacement dwelling
shall apply. (See appendix A, Sec. 24.2(a)(6)(ix).)
(7) Contribute materially. The term contribute materially means
that during the 2 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:
(i) Had average annual gross receipts of at least $5,000; or
(ii) Had average annual net earnings of at least $1,000; or
(iii) Contributed at least 33\1/3\ percent of the owner's or
operator's average annual gross income from all sources.
(iv) If the application of the above criteria creates an inequity
or hardship in any given case, the Agency may approve the use of other
criteria as determined appropriate.
(8) Decent, safe, and sanitary dwelling. The term decent, safe, and
sanitary dwelling means a dwelling which meets local housing and
occupancy codes. However, any of the following standards which are not
met by the local code shall apply unless waived for good cause by the
Federal Agency funding the project. The dwelling shall:
(i) Be structurally sound, weather tight, and in good repair;
(ii) Contain a safe electrical wiring system adequate for lighting
and other devices;
(iii) Contain a heating system capable of sustaining a healthful
temperature (of approximately 70 degrees) for a displaced person,
except in those areas where local climatic conditions do not require
such a system;
(iv) Be adequate in size with respect to the number of rooms and
area of living space needed to accommodate the displaced person. The
number of persons occupying each habitable room used for sleeping
purposes shall not exceed that permitted by local housing codes or, in
the absence of local codes, the policies of the displacing Agency. In
addition, the displacing Agency shall follow the requirements for
separate bedrooms for children of the opposite gender included in local
housing codes or in the absence of local codes, the policies of such
Agencies;
(v) There shall be a separate, well lighted and ventilated bathroom
that provides privacy to the user and contains a sink, bathtub or
shower stall, and a toilet, all in good working order and properly
connected to appropriate sources of water and to a sewage drainage
system. In the case of a housekeeping dwelling, there shall be a
kitchen area that contains a fully usable sink, properly connected to
potable hot and cold water and to a sewage drainage system, and
adequate space and utility service connections for a stove and
refrigerator;
(vi) Contains unobstructed egress to safe, open space at ground
level; and
(vii) For a displaced person with a disability, be free of any
barriers which would preclude reasonable ingress, egress, or use of the
dwelling by such displaced person. (See appendix A, Sec.
24.2(a)(8)(vii).)
(9) Displaced person. (i) General. The term displaced person means,
except as provided in paragraph (a)(9)(ii) of this section, any person
who moves from the real property or moves his or her personal property
from the real property. (This includes a person who occupies the real
property prior to its acquisition, but who does not meet the length of
occupancy requirements of the Uniform Act as described at Sec.
24.401(a) and Sec. 24.402(a)):
(A) As a direct result of a written notice of intent to acquire
(see Sec. 24.203(d)), the initiation of negotiations for, or the
acquisition of, such real property in whole or in part for a project;
(B) As a direct result of rehabilitation or demolition for a
project; or
(C) 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 person under
this paragraph applies only for purposes of obtaining relocation
assistance advisory services under Sec. 24.205(c), and moving expenses
under Sec. 24.301, Sec. 24.302 or Sec. 24.303.
(ii) Persons not displaced. The following is a nonexclusive listing
of persons who do not qualify as displaced persons under this part:
(A) A person who moves before the initiation of negotiations (see
Sec. 24.403(d)), unless the Agency determines that the person was
[[Page 614]]
displaced as a direct result of the program or project;
(B) A person who initially enters into occupancy of the property
after the date of its acquisition for the project;
(C) A person who has occupied the property for the purpose of
obtaining assistance under the Uniform Act;
(D) A person who is 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 Federal
Agency funding the project (See appendix A, Sec. 24.2(a)(9)(ii)(D));
(E) An owner-occupant who moves as a result of an acquisition of
real property as described in Sec. Sec. 24.101(a)(2) or 24.101(b)(1)
or (2), or as a result of the rehabilitation or demolition of the real
property. (However, the displacement of a tenant as a direct result of
any acquisition, rehabilitation or demolition for a Federal or
federally-assisted project is subject to this part.);
(F) A person whom the Agency determines is not displaced as a
direct result of a partial acquisition;
(G) A person who, after receiving a notice of relocation
eligibility (described at Sec. 24.203(b)), is notified in writing that
he or she will not be displaced for a project. Such written
notification shall not be issued unless the person has not moved and
the Agency agrees to reimburse the person for any expenses incurred to
satisfy any binding contractual relocation obligations entered into
after the effective date of the notice of relocation eligibility;
(H) An owner-occupant who conveys his or her property, as described
in Sec. Sec. 24.101(a)(2) or 24.101(b)(1) or (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 property.
In such cases, however, any resulting displacement of a tenant is
subject to the regulations in this part;
(I) A person who retains the right of use and occupancy of the real
property for life following its acquisition by the Agency;
(J) An owner who retains the right of use and occupancy of the real
property for a fixed term after its acquisition by the Department of
the Interior under Pub. L. 93-477, Appropriations for National Park
System, or Pub. L. 93-303, Land and Water Conservation Fund, except
that such owner remains a displaced person for purposes of subpart D of
this part;
(K) A person who is determined to be in unlawful occupancy prior to
or after the initiation of negotiations, or a person who has been
evicted for cause, under applicable law, as provided for in Sec.
24.206. However, advisory assistance may be provided to unlawful
occupants at the option of the Agency in order to facilitate the
project;
(L) A person who is not lawfully present in the United States and
who has been determined to be ineligible for relocation assistance in
accordance with Sec. 24.208; or
(M) Tenants required to move as a result of the sale of their
dwelling to a person using downpayment assistance provided under the
American Dream Downpayment Initiative (ADDI) authorized by section 102
of the American Dream Downpayment Act (Pub. L. 108-186; codified at 42
U.S.C. 12821).
(10) Dwelling. The term dwelling means the place of permanent or
customary and usual residence of a person, according to local custom or
law, including a single family house; a single family unit in a two-
family, multi-family, or multi-purpose property; a unit of a
condominium or cooperative housing project; a non-housekeeping unit; a
mobile home; or any other residential unit.
(11) Dwelling site. The term dwelling site means a land area that
is typical in size for similar dwellings located in the same
neighborhood or rural area. (See appendix A, Sec. 24.2(a)(11).)
(12) Farm operation. The term farm operation means any activity
conducted solely or primarily for the production of one or more
agricultural products or commodities, including timber, for sale or
home use, and customarily producing such products or commodities in
sufficient quantity to be capable of contributing materially to the
operator's support.
(13) Federal financial assistance. The term Federal financial
assistance means a grant, loan, or contribution provided by the United
States, except any Federal guarantee or insurance and any interest
reduction payment to an individual in connection with the purchase and
occupancy of a residence by that individual.
(14) Household income. The term household income means total gross
income received for a 12 month period from all sources (earned and
unearned) including, but not limited to wages, salary, child support,
alimony, unemployment benefits, workers compensation, social security,
or the net income from a business. It does not include income received
or earned by dependent children and full time students under 18 years
of age. (See appendix A, Sec. 24.2(a)(14) for examples of exclusions
to income.)
(15) Initiation of negotiations. Unless a different action is
specified in applicable Federal program regulations, the term
initiation of negotiations means the following:
(i) Whenever the displacement results from the acquisition of the
real property by a Federal Agency or State Agency, the initiation of
negotiations means the delivery of the initial written offer of just
compensation by the Agency to the owner or the owner's representative
to purchase the real property for the project. However, if the Federal
Agency or State Agency issues a notice of its intent to acquire the
real property, and a person moves after that notice, but before
delivery of the initial written purchase offer, the initiation of
negotiations means the actual move of the person from the property.
(ii) 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 negotiations means the notice to the person
that he or she will be displaced by the project or, if there is no
notice, the actual move of the person from the property.
(iii) In the case of a permanent relocation to protect the public
health and welfare, under the Comprehensive Environmental Response
Compensation and Liability Act of 1980 (Pub. L. 96-510, or Superfund)
(CERCLA) the initiation of negotiations means the formal announcement
of such relocation or the Federal or federally-coordinated health
advisory where the Federal Government later decides to conduct a
permanent relocation.
(iv) In the case of permanent relocation of a tenant as a result of
an acquisition of real property described in Sec. 24.101(b)(1) through
(5), the initiation of negotiations means the actions described in
Sec. 24.2(a)(15)(i) and (ii), except that such initiation of
negotiations does not become effective, for purposes of establishing
eligibility for relocation assistance for such tenants under this part,
until there is a written agreement between the Agency and the owner to
purchase the real property. (See appendix A, Sec. 24.2(a)(15)(iv)).
(16) Lead Agency. The term Lead Agency means the Department of
Transportation acting through the Federal Highway Administration.
(17) Mobile home. The term mobile home includes manufactured homes
and recreational vehicles used as residences. (See appendix A, Sec.
24.2(a)(17)).
(18) Mortgage. The term mortgage means such classes of liens as are
commonly given to secure advances on, or the unpaid purchase price of,
real
[[Page 615]]
property, under the laws of the State in which the real property is
located, together with the credit instruments, if any, secured thereby.
(19) Nonprofit organization. The term nonprofit organization means
an organization that is incorporated under the applicable laws of a
State as a nonprofit organization, and exempt from paying Federal
income taxes under section 501 of the Internal Revenue Code (26 U.S.C.
501).
(20) Owner of a dwelling. The term owner of a dwelling means a
person who is considered to have met the requirement to own a dwelling
if the person purchases or holds any of the following interests in real
property:
(i) Fee title, a life estate, a land contract, a 99 year lease, or
a lease including any options for extension with at least 50 years to
run from the date of acquisition; or
(ii) An interest in a cooperative housing project which includes
the right to occupy a dwelling; or
(iii) A contract to purchase any of the interests or estates
described in Sec. 24.2(a)(1)(i) or (ii) of this section; or
(iv) Any other interest, including a partial interest, which in the
judgment of the Agency warrants consideration as ownership.
(21) Person. The term person means any individual, family,
partnership, corporation, or association.
(22) 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.
(23) Salvage value. The term salvage value means the probable sale
price of an item offered for sale to knowledgeable buyers with the
requirement that it be removed from the property at a buyer's expense
(i.e., not eligible for relocation assistance). This includes items for
re-use as well as items with components that can be re-used or recycled
when there is no reasonable prospect for sale except on this basis.
(24) Small business. A small business is a business having not more
than 500 employees working at the site being acquired or displaced by a
program or project, which site is the location of economic activity.
Sites occupied solely by outdoor advertising signs, displays, or
devices do not qualify as a business for purposes of Sec. 24.304.
(25) 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, or a political subdivision of any of
these jurisdictions.
(26) Tenant. The term tenant means a person who has the temporary
use and occupancy of real property owned by another.
(27) Uneconomic remnant. The term uneconomic remnant means a parcel
of real property in which the owner is left with an interest after the
partial acquisition of the owner's property, and which the Agency has
determined has little or no value or utility to the owner.
(28) Uniform Act. The term Uniform Act means the Uniform Relocation
Assistance and Real Property Acquisition Policies Act of 1970 (Pub. L.
91-646, 84 Stat. 1894; 42 U.S.C. 4601 et seq.), and amendments thereto.
(29) Unlawful occupant. A person who occupies without property
right, title or payment of rent or a person legally evicted, with no
legal rights to occupy a property under State law. An Agency, at its
discretion, may consider such person to be in lawful occupancy.
(30) Utility costs. The term utility costs means expenses for
electricity, gas, other heating and cooking fuels, water and sewer.
(31) Utility facility. The term utility facility means any
electric, gas, water, steam power, or materials transmission or
distribution system; any transportation system; any communications
system, including cable television; and any fixtures, equipment, or
other property associated with the operation, maintenance, or repair of
any such system. A utility facility may be publicly, privately, or
cooperatively owned.
(32) Utility relocation. The term utility relocation means the
adjustment of a utility facility required by the program or project
undertaken by the displacing Agency. It includes removing and
reinstalling the facility, including necessary temporary facilities;
acquiring necessary right-of-way on a new location; moving, rearranging
or changing the type of existing facilities; and taking any necessary
safety and protective measures. It shall also mean constructing a
replacement facility that has the functional equivalency of the
existing facility and is necessary for the continued operation of the
utility service, the project economy, or sequence of project
construction.
(33) Waiver valuation. The term waiver valuation means the
valuation process used and the product produced when the Agency
determines that an appraisal is not required, pursuant to Sec.
24.102(c)(2) appraisal waiver provisions.
(b) Acronyms. The following acronyms are commonly used in the
implementation of programs subject to this regulation:
(1) BCIS. Bureau of Citizenship and Immigration Service.
(2) FEMA. Federal Emergency Management Agency.
(3) FHA. Federal Housing Administration.
(4) FHWA. Federal Highway Administration.
(5) FIRREA. Financial Institutions Reform, Recovery, and
Enforcement Act of 1989.
(6) HLR. Housing of last resort.
(7) HUD. U.S. Department of Housing and Urban Development.
(8) MIDP. Mortgage interest differential payment.
(9) RHP. Replacement housing payment.
(10) STURAA. Surface Transportation and Uniform Relocation Act
Amendments of 1987.
(11) URA. Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970.
(12) USDOT. U.S. Department of Transportation.
(13) USPAP. Uniform Standards of Professional Appraisal Practice.
Sec. 24.3 No duplication of payments.
No person shall receive any payment under this part if that person
receives a payment under Federal, State, local law, or insurance
proceeds which is determined by the Agency to have the same purpose and
effect as such payment under this part. (See appendix A, Sec. 24.3).
Sec. 24.4 Assurances, monitoring and corrective action.
(a) Assurances. (1) Before a Federal Agency may approve any grant
to, or contract, or agreement with, a State Agency under which Federal
financial assistance will be made available for a project which results
in real property acquisition or displacement that is subject to the
Uniform Act, the State Agency must provide appropriate assurances that
it will comply with the Uniform Act and this part. A displacing
Agency's assurances shall be in accordance with section 210 of the
Uniform Act. An acquiring Agency's assurances shall be in accordance
with section 305 of the Uniform Act and must contain specific reference
to any State law which the Agency believes provides an exception to
Sec. Sec. 301 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 acquires
real
[[Page 616]]
property and displaces persons, may combine its section 210 and section
305 assurances in one document.
(2) If a Federal Agency or State Agency provides Federal financial
assistance to a ``person'' causing displacement, such 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.
(3) As an alternative to the assurance requirement described in
paragraph (a)(1) of this section, a Federal Agency may provide Federal
financial assistance to a State Agency after it has accepted a
certification by such State Agency in accordance with the requirements
in subpart G of this part.
(b) Monitoring and corrective action. The Federal Agency will
monitor compliance with this part, and the State Agency shall take
whatever corrective action is necessary to comply with the Uniform Act
and this part. The Federal Agency may also apply sanctions in
accordance with applicable program regulations. (Also see Sec. 24.603,
of this part).
(c) Prevention of fraud, waste, and mismanagement. The Agency shall
take appropriate measures to carry out this part in a manner that
minimizes fraud, waste, and mismanagement.
Sec. 24.5 Manner 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 Sec.
24.102(b), shall be personally served or sent by certified or
registered first-class mail, return receipt requested, and documented
in Agency files. Each notice shall be written in plain, understandable
language. Persons 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 answers to questions or other needed help.
Sec. 24.6 Administration of jointly-funded projects.
Whenever two or more Federal Agencies provide financial assistance
to an Agency or Agencies, other than a Federal Agency, to carry out
functionally or geographically related activities, which will result in
the acquisition of property or the displacement of a person, the
Federal Agencies may by agreement designate one such Agency as the
cognizant Federal Agency. In the unlikely event that agreement among
the Agencies cannot be reached as to which Agency shall be the
cognizant Federal Agency, then the Lead Agency shall designate one of
such Agencies to assume the cognizant role. At a minimum, the agreement
shall set forth the federally-assisted activities which are subject to
its terms and cite any policies and procedures, in addition to this
part, that are applicable to the activities under the agreement. Under
the agreement, the cognizant Federal Agency shall assure that the
project is in compliance with the provisions of the Uniform Act and
this part. All federally-assisted activities under the agreement shall
be deemed a project for the purposes of this part.
Sec. 24.7 Federal Agency waiver of regulations.
The Federal Agency funding the project may waive any requirement in
this part not required by law if it determines that the waiver does not
reduce any assistance or protection provided to an owner or displaced
person under this part. Any request for a waiver shall be justified on
a case-by-case basis.
Sec. 24.8 Compliance with other laws and regulations.
The implementation of this part must be in compliance with other
applicable Federal laws and implementing regulations, including, but
not limited to, the following:
(a) Section I of the Civil Rights Act of 1866 (42 U.S.C. 1982 et
seq.).
(b) Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et
seq.).
(c) Title VIII of the Civil Rights Act of 1968 (42 U.S.C. 3601 et
seq.), as amended.
(d) The National Environmental Policy Act of 1969 (42 U.S.C. 4321
et seq.).
(e) Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 790 et
seq.).
(f) The Flood Disaster Protection Act of 1973 (Pub. L. 93-234).
(g) The Age Discrimination Act of 1975 (42 U.S.C. 6101 et seq.).
(h) Executive Order 11063--Equal Opportunity and Housing, as
amended by Executive Order 12892.
(i) Executive Order 11246--Equal Employment Opportunity, as
amended.
(j) Executive Order 11625--Minority Business Enterprise.
(k) Executive Orders 11988--Floodplain Management, and 11990--
Protection of Wetlands.
(l) Executive Order 12250--Leadership and Coordination of Non-
Discrimination Laws.
(m) Executive Order 12630--Governmental Actions and Interference
with Constitutionally Protected Property Rights.
(n) Robert T. Stafford Disaster Relief and Emergency Assistance
Act, as amended (42 U.S.C. 5121 et seq.).
(o) Executive Order 12892--Leadership and Coordination of Fair
Housing in Federal Programs: Affirmatively Furthering Fair Housing
(January 17, 1994).
Sec. 24.9 Recordkeeping and reports.
(a) Records. The Agency shall maintain adequate records of its
acquisition and displacement activities in sufficient detail to
demonstrate compliance with this part. These records shall be retained
for at least 3 years after each owner of a property and each person
displaced from the property receives the final payment to which he or
she is entitled under this part, or in accordance with the applicable
regulations of the Federal funding Agency, whichever is later.
(b) Confidentiality of records. Records maintained by an Agency in
accordance with this part are confidential regarding their use as
public information, unless applicable law provides otherwise.
(c) Reports. The Agency shall submit a report of its real property
acquisition and displacement activities under this part if required by
the Federal Agency funding the project. A report will not be required
more frequently than every 3 years, or as the Uniform Act provides,
unless the Federal funding Agency shows good cause. The report shall be
prepared and submitted using the format contained in appendix B of this
part.
Sec. 24.10 Appeals.
(a) General. The Agency shall promptly review appeals in accordance
with the requirements of applicable law and this part.
(b) Actions which may be appealed. Any aggrieved 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 may
include, but is not limited to, the person's eligibility for, or the
amount of, a payment required under Sec. 24.106 or Sec. 24.107, or a
relocation payment required under this part. The Agency shall consider
a written appeal regardless of form.
(c) Time limit for initiating appeal. The Agency may set a
reasonable time limit for a person to file an appeal. The time limit
shall not be less than 60 days after the person receives written
notification of the Agency's determination on the person's claim.
(d) Right to representation. A person has a right to be represented
by legal
[[Page 617]]
counsel or other representative in connection with his or her appeal,
but solely at the person's own expense.
(e) Review of files by person making appeal. The Agency shall
permit a person to inspect and copy all materials pertinent to his or
her appeal, except materials which are classified as confidential by
the Agency. The Agency may, however, impose reasonable conditions on
the person's right to inspect, consistent with applicable laws.
(f) Scope of review of appeal. In deciding an appeal, the Agency
shall consider all pertinent justification and other material submitted
by the person, and all other available information that is needed to
ensure a fair and full review of the appeal.
(g) Determination and notification after appeal. Promptly after
receipt of all information submitted by a person in support of an
appeal, the Agency shall make a written determination on the appeal,
including an explanation of the basis on which the decision was made,
and furnish the person a copy. If the full relief requested is not
granted, the Agency shall advise the person of his or her right to seek
judicial review of the Agency decision.
(h) Agency official to review appeal. The Agency official
conducting the review of the appeal shall be either the head of the
Agency or his or her authorized designee. However, the official shall
not have been directly involved in the action appealed.
Subpart B--Real Property Acquisition
Sec. 24.101 Applicability of acquisition requirements.
(a) Direct Federal program or project.
(1) The requirements of this subpart apply to any acquisition of
real property for a direct Federal program or project, except
acquisition for a program or project that is undertaken by the
Tennessee Valley Authority or the Rural Utilities Service. (See
appendix A, Sec. 24.101(a).)
(2) If a Federal Agency (except for the Tennessee Valley Authority
or the Rural Utilities Service) will not acquire a property because
negotiations fail to result in an agreement, the owner of the property
shall be so informed in writing. Owners of such properties are not
displaced persons, (see Sec. Sec. 24.2(a)(9)(ii)(E) or (H)), and as
such, are not entitled to relocation assistance benefits. However,
tenants on such properties may be eligible for relocation assistance
benefits. (See Sec. 24.2(a)(9)).
(b) Programs and projects receiving Federal financial assistance.
The requirements of this subpart apply to any acquisition of real
property for programs and projects where there is Federal financial
assistance in any part of project costs except for the acquisitions
described in paragraphs (b)(1) through (5) of this section. The
relocation assistance provisions in this part are applicable to any
tenants that must move as a result of an acquisition described in
paragraphs (b)(1) through (5) of this section. Such tenants are
considered displaced persons. (See Sec. 24.2(a)(9).)
(1) The requirements of Subpart B do not apply to acquisitions that
meet all of the following conditions in paragraphs (b)(1)(i) through
(iv):
(i) No specific site or property needs to be acquired, although the
Agency may limit its search for alternative sites to a general
geographic area. Where an Agency wishes to purchase more than one site
within a general geographic area on this basis, all owners are to be
treated similarly. (See appendix A, Sec. 24.101(b)(1)(i).)
(ii) The property to be acquired is not part of an intended,
planned, or designated project area where all or substantially all of
the property within the area is to be acquired within specific time
limits.
(iii) The Agency will not acquire the property if negotiations fail
to result in an amicable agreement, and the owner is so informed in
writing.
(iv) The Agency will inform the owner in writing of what it
believes to be the market value of the property. (See appendix A, Sec.
24.101(b)(1)(iv) and (2)(ii).)
(2) Acquisitions for programs or projects undertaken by an Agency
or person that receives Federal financial assistance but does not have
authority to acquire property by eminent domain, provided that such
Agency or person shall:
(i) Prior to making an offer for the property, clearly advise the
owner that it is unable to acquire the property if negotiations fail to
result in an agreement; and
(ii) Inform the owner in writing of what it believes to be the
market value of the property. (See appendix A, Sec. 24.101(b)(1)(iv)
and (2)(ii).)
(3) The acquisition of real property from a Federal Agency, State,
or State Agency, if the Agency desiring to make the purchase does not
have authority to acquire the property through condemnation.
(4) The acquisition of real property by a cooperative from a person
who, as a condition of membership in the cooperative, has agreed to
provide without charge any real property that is needed by the
cooperative.
(5) Acquisition for a program or project that receives Federal
financial assistance from the Tennessee Valley Authority or the Rural
Utilities Service.
(c) Less-than-full-fee interest in real property.
(1) 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 term, including option(s) for extension, is 50
years or more; and to the acquisition of permanent and/or temporary
easements necessary for the project. However, the Agency may apply
these regulations to any less-than-full-fee acquisition that, in its
judgment, should be covered.
(2) The provisions of this subpart do not apply to temporary
easements or permits needed solely to perform work intended exclusively
for the benefit of the property owner, which work may not be done if
agreement cannot be reached.
(d) Federally-assisted projects. For projects receiving Federal
financial assistance, the provisions of Sec. Sec. 24.102, 24.103,
24.104, and 24.105 apply to the greatest extent practicable under State
law. (See Sec. 24.4(a).)
Sec. 24.102 Basic acquisition policies.
(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 Agency shall notify
the owner in writing of the Agency's interest in acquiring the real
property and the basic protections provided to the owner by law and
this part. (See Sec. 24.203.)
(c) Appraisal, waiver thereof, and invitation to owner.
(1) Before the initiation of negotiations the real property to be
acquired shall be appraised, except as provided in Sec. 24.102 (c)(2),
and the owner, or the owner's designated representative, shall be given
an opportunity to accompany the appraiser during the appraiser's
inspection of the property.
(2) An appraisal is not required if:
(i) The owner is donating the property and releases the Agency from
its obligation to appraise the property; or
(ii) The Agency determines that an appraisal is unnecessary because
the valuation problem is uncomplicated and the anticipated value of the
proposed acquisition is estimated at $10,000 or less, based on a review
of available data.
(A) When an appraisal is determined to be unnecessary, the Agency
shall prepare a waiver valuation.
(B) The person performing the waiver valuation must have sufficient
[[Page 618]]
understanding of the local real estate market to be qualified to make
the waiver valuation.
(C) The Federal Agency funding the project may approve exceeding
the $10,000 threshold, up to a maximum of $25,000, if the Agency
acquiring the real property offers the property owner the option of
having the Agency appraise the property. If the property owner elects
to have the Agency appraise the property, the Agency shall obtain an
appraisal and not use procedures described in this paragraph. (See
appendix A, Sec. 24.102(c)(2).)
(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 not be less than the approved appraisal of the market value of
the property, taking into account the value of allowable damages or
benefits to any remaining property. An Agency official must establish
the amount believed to be just compensation. (See Sec. 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
compensation. (See appendix A, Sec. 24.102(d).)
(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 included as part of the offer of just compensation.
Where appropriate, the statement shall identify any other separately
held ownership interest in the property, e.g., a tenant-owned
improvement, and indicate that such interest is not covered by this
offer.
(f) Basic negotiation procedures. The Agency shall make all
reasonable efforts to contact the owner or the owner's representative
and discuss its offer to purchase the property, including the basis for
the offer of just compensation and explain its acquisition policies and
procedures, including its payment of incidental expenses in accordance
with Sec. 24.106. The owner shall be given reasonable opportunity to
consider the offer and present material which the owner believes is
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. (See appendix A, Sec.
24.102(f).)
(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 appraisal(s) of the property, the Agency shall have the
appraisal(s) updated or obtain a new appraisal(s). If the latest
appraisal information indicates that a change in the purchase offer is
warranted, the Agency shall promptly reestablish just compensation and
offer that amount to the owner in writing.
(h) Coercive action. The Agency shall not advance the time of
condemnation, or defer negotiations or condemnation or the deposit of
funds with the court, or take any other coercive action in order to
induce an agreement on the price to be paid for the property.
(i) 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 states what available
information, including trial risks, supports such a settlement. (See
appendix A, Sec. 24.102(i).)
(j) Payment before taking possession. Before requiring the owner to
surrender possession of the real property, the Agency shall pay 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 of the market value of such
property, or the court award of compensation in the condemnation
proceeding for the property. In exceptional circumstances, with the
prior approval of the owner, the Agency may obtain a right-of-entry for
construction purposes before making payment available to an owner. (See
appendix A, Sec. 24.102(j).)
(k) Uneconomic remnant. If the acquisition of only a portion of a
property would leave the owner with an uneconomic remnant, the Agency
shall offer to acquire the uneconomic remnant along with the portion of
the property needed for the project. (See Sec. 24.2(a)(27).)
(l) Inverse condemnation. If the Agency intends to acquire any
interest in real property by exercise of the power of eminent domain,
it shall institute formal condemnation proceedings and not
intentionally make it necessary for the owner to institute legal
proceedings to prove the fact of the taking of the real property.
(m) Fair rental. If the Agency permits a former owner or tenant to
occupy the real property after acquisition for a short term, or a
period subject to termination by the Agency on short notice, the rent
shall not exceed the fair market rent for such occupancy. (See appendix
A, Sec. 24.102(m).)
(n) Conflict of interest.
(1) The appraiser, review appraiser or person performing the waiver
valuation shall not have any interest, direct or indirect, in the real
property being valued for the Agency.
Compensation for making an appraisal or waiver valuation shall not
be based on the amount of the valuation estimate.
(2) No person shall attempt to unduly influence or coerce an
appraiser, review appraiser, or waiver valuation preparer regarding any
valuation or other aspect of an appraisal, review or waiver valuation.
Persons functioning as negotiators may not supervise or formally
evaluate the performance of any appraiser or review appraiser
performing appraisal or appraisal review work, except that, for a
program or project receiving Federal financial assistance, the Federal
funding Agency may waive this requirement if it determines it would
create a hardship for the Agency.
(3) An appraiser, review appraiser, or waiver valuation preparer
making an appraisal, appraisal review or waiver valuation may be
authorized by the Agency to act as a negotiator for real property for
which that person has made an appraisal, appraisal review or waiver
valuation only if the offer to acquire the property is $10,000, or
less. (See appendix A, Sec. 24.102(n).)
Sec. 24.103 Criteria for appraisals.
(a) Appraisal requirements. This section sets forth the
requirements for real property acquisition appraisals for Federal and
federally-assisted programs. Appraisals are to be prepared according to
these requirements, which are intended to be consistent with the
Uniform Standards of Professional
[[Page 619]]
Appraisal Practice (USPAP).\1\ (See appendix A, Sec. 24.103(a).) The
Agency may have appraisal requirements that supplement these
requirements, including, to the extent appropriate, the Uniform
Appraisal Standards for Federal Land Acquisition (UASFLA).\2\
(1) The Agency acquiring real property has a legitimate role in
contributing to the appraisal process, especially in developing the
scope of work and defining the appraisal problem. The scope of work and
development of an appraisal under these requirements depends on the
complexity of the appraisal problem.
---------------------------------------------------------------------------
\1\ Uniform Standards of Professional Appraisal Practice
(USPAP). Published by The Appraisal Foundation, a nonprofit
educational organization. Copies may be ordered from The Appraisal
Foundation at the following URL: http://www.appraisalfoundation.org/htm/USPAP2004/toc.htm.
\2\ The ``Uniform Appraisal Standards for Federal Land
Acquisitions'' is published by the Interagency Land Acquisition
Conference. It is a compendium of Federal eminent domain appraisal
law, both case and statute, regulations and practices. It is
available at http://www.usdoj.gov/enrd/land-ack/toc.htm or in soft
cover format from the Appraisal Institute at http://www.appraisalinstitute.org/econom/publications/Default.asp and
select ``Legal/Regulatory'' or call 888-570-4545.
---------------------------------------------------------------------------
(2) The Agency has the responsibility to assure that the appraisals
it obtains are relevant to its program needs, reflect established and
commonly accepted Federal and federally-assisted program appraisal
practice, and as a minimum, complies with the definition of appraisal
in Sec. 24.2(a)(3) and the five following requirements: (See appendix
A, Sec. Sec. 24.103 and 24.103(a).)
(i) An adequate description of the physical characteristics of the
property being appraised (and, in the case of a partial acquisition, an
adequate description of the remaining property), including items
identified as personal property, a statement of the known and observed
encumbrances, if any, title information, location, zoning, present use,
an analysis of highest and best use, and at least a 5-year sales
history of the property. (See appendix A, Sec. 24.103(a)(1).)
(ii) All relevant and reliable approaches to value consistent with
established Federal and federally-assisted program appraisal practices.
If the appraiser uses more than one approach, there shall be an
analysis and reconciliation of approaches to value used that is
sufficient to support the appraiser's opinion of value. (See appendix
A, Sec. 24.103(a).)
(iii) A description of comparable sales, including a description of
all relevant physical, legal, and economic factors such as parties to
the transaction, source and method of financing, and verification by a
party involved in the transaction.
(iv) A statement of the value of the real property to be acquired
and, for a partial acquisition, a statement of the value of the damages
and benefits, if any, to the remaining real property, where
appropriate.
(v) The effective date of valuation, date of appraisal, signature,
and certification of the appraiser.
(b) Influence of the project on just compensation. The appraiser
shall disregard any decrease or increase in the market value of the
real property caused by the project for which the property is to be
acquired, or by the likelihood that the property would be acquired for
the project, other than that due to physical deterioration within the
reasonable control of the owner. (See appendix A, Sec. 24.103(b).)
(c) Owner retention of improvements. If the owner of a real
property improvement is permitted to retain it for removal from the
project site, the amount to be offered for the interest in the real
property to be acquired shall be not less than the difference between
the amount determined to be just compensation for the owner's entire
interest in the real property and the salvage value (defined at Sec.
24.2(a)(24)) of the retained improvement.
(d) Qualifications of appraisers and review appraisers.
(1) The Agency shall establish criteria for determining the minimum
qualifications and competency of appraisers and review appraisers.
Qualifications shall be consistent with the scope of work for the
assignment. The Agency shall review the experience, education,
training, certification/licensing, designation(s) and other
qualifications of appraisers, and review appraisers, and use only those
determined by the Agency to be qualified. (See appendix A, Sec.
24.103(d)(1).)
(2) If the Agency uses a contract (fee) appraiser to perform the
appraisal, such appraiser shall be State licensed or certified in
accordance with title XI of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (FIRREA) (12 U.S.C. 3331 et
seq.).
Sec. 24.104 Review of appraisals.
The Agency shall have an appraisal review process and, at a
minimum:
(a) A qualified review appraiser (see Sec. 24.103(d)(1) and
appendix A, Sec. 24.104) shall examine the presentation and analysis
of market information in all appraisals to assure that they meet the
definition of appraisal found in 49 CFR 24.2(a)(3), appraisal
requirements found in 49 CFR 24.103 and other applicable requirements,
including, to the extent appropriate, the UASFLA, and support the
appraiser's opinion of value. The level of review analysis depends on
the complexity of the appraisal problem. As needed, the review
appraiser shall, prior to acceptance, seek necessary corrections or
revisions. The review appraiser shall identify each appraisal report as
recommended (as the basis for the establishment of the amount believed
to be just compensation), accepted (meets all requirements, but not
selected as recommended or approved), or not accepted. If authorized by
the Agency to do so, the staff review appraiser shall also approve the
appraisal (as the basis for the establishment of the amount believed to
be just compensation), and, if also authorized to do so, develop and
report the amount believed to be just compensation. (See appendix A,
Sec. 24.104(a).)
(b) If the review appraiser is unable to recommend (or approve) an
appraisal as an adequate basis for the establishment of the offer of
just compensation, and it is determined by the acquiring Agency that it
is not practical to obtain an additional appraisal, the review
appraiser may, as part of the review, present and analyze market
information in conformance with Sec. 24.103 to support a recommended
(or approved) value. (See appendix A, Sec. 24.104(b).)
(c) The review appraiser shall prepare a written report that
identifies the appraisal reports reviewed and documents the findings
and conclusions arrived at during the review of the appraisal(s). Any
damages or benefits to any remaining property shall be identified in
the review appraiser's report. The review appraiser shall also prepare
a signed certification that states the parameters of the review. The
certification shall state the approved value, and, if the review
appraiser is authorized to do so, the amount believed to be just
compensation for the acquisition. (See appendix A, Sec. 24.104(c).)
Sec. 24.105 Acquisition of tenant-owned improvements.
(a) Acquisition of improvements. When acquiring any interest in
real property, the Agency shall offer to acquire at least an equal
interest in all buildings, structures, or other improvements 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. This shall include any improvement of a
tenant-owner who has the right or obligation to remove the
[[Page 620]]
improvement at the expiration of the lease term.
(b) Improvements considered to be real property. Any building,
structure, or other improvement, which would be considered to be real
property if owned by the owner of the real property on which it is
located, shall be considered to be real property for purposes of this
subpart.
(c) Appraisal and Establishment of Just Compensation for a Tenant-
Owned Improvement. Just compensation for a tenant-owned improvement is
the amount which the improvement contributes to the market value of the
whole property, or its salvage value, whichever is greater. (Salvage
value is defined at Sec. 24.2(a)(23).)
(d) Special conditions for tenant-owned improvements. No payment
shall be made to a tenant-owner for any real property improvement
unless:
(1) The tenant-owner, in consideration for the payment, assigns,
transfers, and releases to the Agency all of the tenant-owner's right,
title, and interest in the improvement;
(2) The owner of the real property on which the improvement is
located disclaims all interest in the improvement; and
(3) 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 right to reject payment
under this subpart and to obtain payment for such property interests in
accordance with other applicable law.
Sec. 24.106 Expenses incidental to transfer of title to the Agency.
(a) The owner of the real property shall be reimbursed for all
reasonable expenses the owner necessarily incurred for:
(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;
(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 it, whichever is earlier.
(b) Whenever feasible, the Agency shall pay these costs directly to
the billing agent so that the owner will not have to pay such costs and
then seek reimbursement from the Agency.
Sec. 24.107 Certain litigation expenses.
The owner of the real 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, if:
(a) The final judgment of the court is that the Agency cannot
acquire the real property by condemnation;
(b) The condemnation proceeding is abandoned by the Agency other
than under an agreed-upon settlement; or
(c) The court having jurisdiction renders a judgment in favor of
the owner in an inverse condemnation proceeding or the Agency effects a
settlement of such proceeding.
Sec. 24.108 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 or any part thereof, any
interest therein, or any compensation paid therefore, to the Agency as
such owner shall determine. The Agency is responsible for ensuring that
an appraisal of the real property is obtained unless the owner releases
the Agency from such obligation, except as provided in Sec.
24.102(c)(2).
Subpart C--General Relocation Requirements
Sec. 24.201 Purpose.
This subpart prescribes general requirements governing the
provision of relocation payments and other relocation assistance in
this part.
Sec. 24.202 Applicability.
These requirements apply to the relocation of any displaced person
as defined at Sec. 24.2(a)(9). Any person who qualifies as a displaced
person must be fully informed of his or her rights and entitlements to
relocation assistance and payments provided by the Uniform Act and this
regulation. (See appendix A, Sec. 24.202.)
Sec. 24.203 Relocation notices.
(a) General information notice. 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 obtaining the payment(s);
(2) Informs the displaced person that he or she will be given
reasonable relocation advisory services, including referrals to
replacement properties, help in filing payment claims, and other
necessary assistance to help the displaced person successfully
relocate;
(3) Informs the displaced person that he or she will not be
required to move without at least 90 days advance written notice (see
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 has been made
available;
(4) Informs the displaced 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, as defined in Sec. 24.208(h); and
(5) Describes the displaced person's right to appeal the Agency's
determination as to a person'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 a notice of intent to acquire
(described in Sec. 24.203(d)), the initiation of negotiations (defined
in Sec. 24.2(a)(15)), or actual acquisition, whichever occurs first.
When this occurs, the Agency shall promptly notify all occupants in
writing of their eligibility for 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 or earlier before it expects the person to be displaced.
(3) Content of notice. The 90-day notice shall either state a
specific date as the earliest date by which the occupant may be
required to move, or state that the occupant will receive a further
notice indicating, at least 30 days in advance, the specific date by
which he or she must move. If the 90-day notice is issued before a
comparable replacement dwelling is made available, the notice must
state clearly that the occupant will not have to move earlier than 90
days after such a dwelling is made available. (See Sec. 24.204(a).)
(4) Urgent need. In unusual circumstances, an occupant may be
[[Page 621]]
required to vacate the property on less than 90 days advance written
notice if the displacing Agency determines that a 90-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.
(d) Notice of intent to acquire. A notice of intent to acquire is a
displacing Agency's written communication that is provided to a person
to be displaced, including those to be displaced by rehabilitation or
demolition activities from property acquired prior to the commitment of
Federal financial assistance to the activity, which clearly sets forth
that the Agency intends to acquire the property. A notice of intent to
acquire establishes eligibility for relocation assistance prior to the
initiation of negotiations and/or prior to the commitment of Federal
financial assistance. (See Sec. 24.2(a)(9)(i)(A).)
Sec. 24.204 Availability of comparable replacement dwelling before
displacement.
(a) General. No person to be displaced shall be required to move
from his or her dwelling unless at least one comparable replacement
dwelling (defined at Sec. 24.2 (a)(6)) has been made available to the
person. When 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, if:
(1) The person is informed of its location;
(2) The person has sufficient time to negotiate and enter into a
purchase agreement or lease for the property; and
(3) Subject to reasonable safeguards, the person is assured of
receiving the relocation assistance and acquisition payment to which
the person is entitled in sufficient time to complete the purchase or
lease of the property.
(b) Circumstances permitting waiver. The Federal Agency funding the
project may grant a waiver of the policy in paragraph (a) of this
section in any case where it is demonstrated that a person must move
because of:
(1) A major disaster as defined in section 102 of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act, as amended (42
U.S.C. 5122);
(2) A presidentially declared national emergency; or
(3) Another emergency which requires immediate vacation of the real
property, such as when continued occupancy of the displacement dwelling
constitutes a substantial danger to the health or safety of the
occupants or the public.
(c) Basic conditions of emergency move. Whenever a person to be
displaced is required to relocate from the displacement dwelling for a
temporary period because of an emergency as described in paragraph (b)
of this section, the Agency shall:
(1) Take whatever steps are necessary to assure that the person is
temporarily relocated to a decent, safe, and sanitary dwelling;
(2) Pay the actual reasonable out-of-pocket moving expenses and any
reasonable increase in rent and utility costs incurred in connection
with the temporary relocation; and
(3) Make available to the displaced person as soon as feasible, at
least one comparable replacement dwelling. (For purposes of filing a
claim and meeting the eligibility requirements for a relocation
payment, the date of displacement is the date the person moves from the
temporarily occupied dwelling.)
Sec. 24.205 Relocation planning, advisory services, and coordination.
(a) Relocation planning. During the early stages of development, an
Agency shall plan Federal and federally-assisted programs or projects
in such a manner that recognizes the problems associated with the
displacement of individuals, families, businesses, farms, and nonprofit
organizations and develop solutions to minimize the adverse impacts of
displacement. Such planning, where appropriate, shall precede any
action by an Agency which will cause displacement, and should be scoped
to the complexity and nature of the anticipated displacing activity
including an evaluation of program resources available to carry out
timely and orderly relocations. Planning may involve a relocation
survey or study, which may include the following:
(1) An estimate of the number of households to be displaced
including information such as owner/tenant status, estimated value and
rental rates of properties to be acquired, family characteristics, and
special consideration of the impacts on minorities, the elderly, large
families, and persons with disabilities when applicable.
(2) An estimate of the number of comparable replacement dwellings
in the area (including price ranges and rental rates) that are expected
to be available to fulfill the needs of those households displaced.
When an adequate supply of comparable housing is not expected to be
available, the Agency should consider housing of last resort actions.
(3) An estimate of the number, type and size of the businesses,
farms, and nonprofit organizations to be displaced and the approximate
number of employees that may be affected.
(4) An estimate of the availability of replacement business sites.
When an adequate supply of replacement business sites is not expected
to be available, the impacts of displacing the businesses should be
considered and addressed. Planning for displaced businesses which are
reasonably expected to involve complex or lengthy moving processes or
small businesses with limited financial resources and/or few
alternative relocation sites should include an analysis of business
moving problems.
(5) Consideration of any special relocation advisory services that
may be necessary from the displacing Agency and other cooperating
Agencies.
(b) Loans for planning and preliminary expenses. In the event that
an Agency elects to consider using the duplicative provision in section
215 of the Uniform Act which permits the use of project funds for loans
to cover planning and other preliminary expenses for the development of
additional housing, the Lead Agency will establish criteria and
procedures for such use upon the request of the Federal Agency funding
the program or project.
(c) Relocation assistance advisory services. (1) General. The
Agency shall carry out a relocation assistance advisory program which
satisfies the requirements of Title VI of the Civil Rights Act of 1964
(42 U.S.C. 2000d et seq.), Title VIII of the Civil Rights Act of 1968
(42 U.S.C. 3601 et seq.), and Executive Order 11063 (27 FR 11527,
November 24, 1962), and offer the services described in paragraph
(c)(2) of this section. If the Agency determines that a person
occupying property adjacent to the real property acquired for the
project is caused substantial economic injury because of such
acquisition, it may offer advisory services to such person.
(2) Services to be provided. The advisory program shall include
such measures, facilities, and services as may be necessary or
appropriate in order to:
(i) Determine, for nonresidential (businesses, farm and nonprofit
organizations) displacements, the relocation needs and preferences of
each business (farm and nonprofit organization) to be displaced and
explain the relocation payments and other assistance for which the
business may be eligible, the related eligibility requirements, and the
procedures for
[[Page 622]]
obtaining such assistance. This shall include a personal interview with
each business. At a minimum, interviews with displaced business owners
and operators should include the following items:
(A) The business's replacement site requirements, current lease
terms and other contractual obligations and the financial capacity of
the business to accomplish the move.
(B) Determination of the need for outside specialists in accordance
with Sec. 24.301(g)(12) that will be required to assist in planning
the move, assistance in the actual move, and in the reinstallation of
machinery and/or other personal property.
(C) For businesses, an identification and resolution of personalty/
realty issues. Every effort must be made to identify and resolve
realty/personalty issues prior to, or at the time of, the appraisal of
the property.
(D) An estimate of the time required for the business to vacate the
site.
(E) An estimate of the anticipated difficulty in locating a
replacement property.
(F) An identification of any advance relocation payments required
for the move, and the Agency's legal capacity to provide them.
(ii) Determine, for residential displacements, the relocation needs
and preferences of each person to be displaced and explain the
relocation payments and other assistance for which the person may be
eligible, the related eligibility requirements, and the procedures for
obtaining such assistance. This shall include a personal interview with
each residential displaced person.
(A) Provide current and continuing information on the availability,
purchase prices, and rental costs of comparable replacement dwellings,
and explain that the person cannot be required to move unless at least
one comparable replacement dwelling is made available as set forth in
Sec. 24.204(a).
(B) As soon as feasible, the Agency shall inform the person in
writing of the specific comparable replacement dwelling and the price
or rent used for establishing the upper limit of the replacement
housing payment (see Sec. 24.403 (a) and (b)) and the basis for the
determination, so that the person is aware of the maximum replacement
housing payment for which he or she may qualify.
(C) Where feasible, housing shall be inspected prior to being made
available to assure that it meets applicable standards. (See Sec.
24.2(a)(8).) If such an inspection is not made, the Agency shall notify
the person to be displaced that a replacement housing payment may not
be made unless the replacement dwelling is subsequently inspected and
determined to be decent, safe, and sanitary.
(D) Whenever possible, minority persons shall be given reasonable
opportunities to relocate to decent, safe, and sanitary replacement
dwellings, not located in an area of minority concentration, that are
within their financial means. This policy, however, does not require an
Agency to provide a person a larger payment than is necessary to enable
a person to relocate to a comparable replacement dwelling. (See
appendix A, Sec. 24.205(c)(2)(ii)(D).)
(E) The Agency shall offer all persons transportation to inspect
housing to which they are referred.
(F) Any displaced person that may be eligible for government
housing assistance at the replacement dwelling shall be advised of any
requirements of such government housing assistance program that would
limit the size of the replacement dwelling (see Sec. 24.2(a)(6)(ix)),
as well as of the long term nature of such rent subsidy, and the
limited (42 month) duration of the relocation rental assistance
payment.
(iii) Provide, for nonresidential moves, current and continuing
information on the availability, purchase prices, and rental costs of
suitable commercial and farm properties and locations. Assist any
person displaced from a business or farm operation to obtain and become
established in a suitable replacement location.
(iv) Minimize hardships to persons in adjusting to relocation by
providing counseling, advice as to other sources of assistance that may
be available, and such other help as may be appropriate.
(v) Supply persons to be displaced with appropriate information
concerning Federal and State housing programs, disaster loan and other
programs administered by the Small Business Administration, and other
Federal and State programs offering assistance to displaced persons,
and technical help to persons applying for such assistance.
(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. (See Sec. 24.6.)
(e) Any person who occupies property acquired by an Agency, when
such occupancy began subsequent to the acquisition of the property, and
the occupancy is permitted by a short term 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.
Sec. 24.206 Eviction for cause.
(a) Eviction for cause must conform to applicable State and local
law. Any person who occupies the real property and is 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 determines that:
(1) The person received an eviction notice prior to the initiation
of negotiations and, as a result of that notice is later evicted; or
(2) The person is evicted after the initiation of negotiations for
serious or repeated violation of material terms of the lease or
occupancy agreement; and
(3) 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.
(b) For purposes of determining eligibility for relocation
payments, the date of displacement is the date the person moves, or if
later, the date a comparable replacement dwelling is made available.
This section applies only to persons who would otherwise have been
displaced by the project. (See appendix A, Sec. 24.206.)
Sec. 24.207 General requirements--claims for relocation payments.
(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 claim
for payment.
(b) Expeditious payments. The Agency shall review claims in an
expeditious manner. The claimant shall be promptly notified as 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) Advanced payments. If a person demonstrates the need for an
advanced relocation payment in order to avoid or reduce a hardship, the
Agency shall issue the payment, subject to such safeguards as are
appropriate to ensure that the objective of the payment is
accomplished.
[[Page 623]]
(d) Time for filing. (1) All claims for a relocation payment shall
be filed with the Agency no later than 18 months after:
(i) For tenants, the date of displacement.
(ii) For owners, the date of displacement or the date of the final
payment for the acquisition of the real property, whichever is later.
(2) The Agency shall waive this time period for good cause.
(e) Notice of denial of claim. If the Agency disapproves all or
part of a payment claimed 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
determination, and the procedures for appealing that determination.
(f) No waiver of relocation assistance. A displacing Agency shall
not propose or request that a displaced person waive his or her rights
or entitlements to relocation assistance and benefits provided by the
Uniform Act and this regulation.
(g) Expenditure of payments. Payments, provided pursuant to this
part, shall not be considered to constitute Federal financial
assistance. Accordingly, this part does not apply to the expenditure of
such payments by, or for, a displaced person.
Sec. 24.208 Aliens not lawfully present in the United States.
(a) Each person seeking relocation payments or relocation advisory
assistance shall, as a condition of eligibility, certify:
(1) In the case of an individual, that he or she is either a
citizen or national of the United States, or an alien who is lawfully
present in the United States.
(2) In the case of a family, that each family member is either a
citizen or national of the United States, or an alien who is lawfully
present in the United States. The certification may be made by the head
of the household on behalf of other family members.
(3) In the case of an unincorporated business, farm, or nonprofit
organization, that each owner is either a citizen or national of the
United States, or an alien who is lawfully present in the United
States. The certification may be made by the principal owner, manager,
or operating officer on behalf of other persons with an ownership
interest.
(4) In the case of an incorporated business, farm, or nonprofit
organization, that the corporation is authorized to conduct business
within the United States.
(b) The certification provided pursuant to paragraphs (a)(1),
(a)(2), and (a)(3) of this section shall indicate whether such person
is either a citizen or national of the United States, or an alien who
is lawfully present in the United States. Requirements concerning the
certification in addition to those contained in this rule shall be
within the discretion of the Federal funding Agency and, within those
parameters, that of the displacing Agency.
(c) 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.
(d) The displacing Agency shall consider the certification provided
pursuant to paragraph (a) of this section to be valid, unless the
displacing Agency determines in accordance with paragraph (f) of this
section that it is invalid based on a review of an alien's
documentation or other information that the Agency considers reliable
and appropriate.
(e) Any review by the displacing Agency of the certifications
provided pursuant to paragraph (a) of this section shall be conducted
in a nondiscriminatory fashion. Each displacing Agency will apply the
same standard of review to all such certifications it receives, except
that such standard may be revised periodically.
(f) 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:
(1) If the Agency has reason to believe that the certification of a
person who has certified that he or she is an alien lawfully present in
the United States is invalid, the displacing Agency shall obtain
verification of the alien's status from the local Bureau of Citizenship
and Immigration Service (BCIS) Office. A list of local BCIS offices is
available at http://www.uscis.gov/graphics/fieldoffices/alphaa.htm. Any
request for BCIS verification shall include the alien's full name, date
of birth and alien number, and a copy of the alien's documentation. (If
an Agency is unable to contact the BCIS, it may contact the FHWA in
Washington, DC, Office of Real Estate Services or Office of Chief
Counsel for a referral to the BCIS.)
(2) If the Agency has reason to believe that the certification of a
person who has certified that he or she is a citizen or national is
invalid, the displacing Agency shall request evidence of United States
citizenship or nationality from such person and, if considered
necessary, verify the accuracy of such evidence with the issuer.
(g) 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
assistance 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.
(h) For purposes of paragraph (g) of this section, ``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:
(1) A significant and demonstrable adverse impact on the health or
safety of such spouse, parent, or child;
(2) A significant and demonstrable adverse impact on the continued
existence of the family unit of which such spouse, parent, or child is
a member; or
(3) Any other impact that the displacing Agency determines will
have a significant and demonstrable adverse impact on such spouse,
parent, or child.
(i) The certification referred to in paragraph (a) of this section
may be included as part of the claim for relocation payments described
in Sec. 24.207 of this part.
(Approved by the Office of Management and Budget under control
number 2105-0508.)
Sec. 24.209 Relocation payments not considered as income.
No relocation payment received by a displaced person under this
part shall be considered as income for the purpose
[[Page 624]]
of the Internal Revenue Code of 1954, which has been redesignated as
the Internal Revenue Code of 1986 (Title 26, U.S. Code), or for the
purpose of determining the eligibility or the extent of eligibility of
any person for assistance under the Social Security Act (42 U.S. Code
301 et seq.) or any other Federal law, except for any Federal law
providing low-income housing assistance.
Subpart D--Payments for Moving and Related Expenses
Sec. 24.301 Payment for actual reasonable moving and related
expenses.
(a) General. (1) Any owner-occupant or tenant who qualifies as a
displaced person (defined at Sec. 24.2(a)(9)) and who moves from a
dwelling (including a mobile home) or who moves from a business, farm
or nonprofit organization is entitled to payment of his or her actual
moving and related expenses, as the Agency determines to be reasonable
and necessary.
(2) A non-occupant owner of a rented mobile home is eligible for
actual cost reimbursement under Sec. 24.301 to relocate the mobile
home. If the mobile home is not acquired as real estate, but the
homeowner-occupant obtains a replacement housing payment under one of
the circumstances described at Sec. 24.502(a)(3), the home-owner
occupant is not eligible for payment for moving the mobile home, but
may be eligible for a payment for moving personal property from the
mobile home.
(b) Moves from a dwelling. A displaced person's actual, reasonable
and necessary moving expenses for moving personal property from a
dwelling may be determined based on the cost of one, or a combination
of the following methods: (Eligible expenses for moves from a dwelling
include the expenses described in paragraphs (g)(1) through (g)(7) of
this section. Self-moves based on the lower of two bids or estimates
are not eligible for reimbursement under this section.)
(1) Commercial move--moves performed by a professional mover.
(2) Self-move--moves that may be performed by the displaced person
in one or a combination of the following methods:
(i) Fixed Residential Moving Cost Schedule. (Described in Sec.
24.302.)
(ii) Actual cost move. Supported by receipted bills for labor and
equipment. Hourly labor rates should not exceed the cost paid by a
commercial mover. Equipment rental fees should be based on the actual
cost of renting the equipment but not exceed the cost paid by a
commercial mover.
(c) Moves from a mobile home. A displaced person's actual,
reasonable and necessary moving expenses for moving personal property
from a mobile home may be determined based on the cost of one, or a
combination of the following methods: (self-moves based on the lower of
two bids or estimates are not eligible for reimbursement under this
section. Eligible expenses for moves from a mobile home include those
expenses described in paragraphs (g)(1) through (g)(7) of this section.
In addition to the items in paragraph (a) of this section, the owner-
occupant of a mobile home that is moved as personal property and used
as the person's replacement dwelling, is also eligible for the moving
expenses described in paragraphs (g)(8) through (g)(10) of this
section.)
(1) Commercial move--moves performed by a professional mover.
(2) Self-move--moves that may be performed by the displaced person
in one or a combination of the following methods:
(i) Fixed Residential Moving Cost Schedule. (Described in Sec.
24.302.)
(ii) Actual cost move. Supported by receipted bills for labor and
equipment. Hourly labor rates should not exceed the cost paid by a
commercial mover. Equipment rental fees should be based on the actual
cost of renting the equipment but not exceed the cost paid by a
commercial mover.
(d) Moves from a business, farm or nonprofit organization. Personal
property as determined by an inventory from a business, farm or
nonprofit organization may be moved by one or a combination of the
following methods: (Eligible expenses for moves from a business, farm
or nonprofit organization include those expenses described in
paragraphs (g)(1) through (g)(7) of this section and paragraphs (g)(11)
through (g)(18) of this section and Sec. 24.303.)
(1) Commercial move. Based on the lower of two bids or estimates
prepared by a commercial mover. At the Agency's discretion, payment for
a low cost or uncomplicated move may be based on a single bid or
estimate.
(2) Self-move. A self-move payment may be based on one or a
combination of the following:
(i) The lower of two bids or estimates prepared by a commercial
mover or qualified Agency staff person. At the Agency's discretion,
payment for a low cost or uncomplicated move may be based on a single
bid or estimate; or
(ii) Supported by receipted bills for labor and equipment. Hourly
labor rates should not exceed the rates paid by a commercial mover to
employees performing the same activity and, equipment rental fees
should be based on the actual rental cost of the equipment but not to
exceed the cost paid by a commercial mover.
(e) Personal property only. Eligible expenses for a person who is
required to move personal property from real property but is not
required to move from a dwelling (including a mobile home), business,
farm or nonprofit organization include those expenses described in
paragraphs (g)(1) through (g)(7) and (g)(18) of this section. (See
appendix A, Sec. 24.301(e).)
(f) Advertising signs. The amount of a payment for direct loss of
an advertising sign, which is personal property shall be the lesser of:
(1) The depreciated reproduction cost of the sign, as determined by
the Agency, less the proceeds from its sale; or
(2) The estimated cost of moving the sign, but with no allowance
for storage.
(g) Eligible actual moving expenses.
(1) Transportation of the displaced person and personal property.
Transportation costs for a distance beyond 50 miles are not eligible,
unless the Agency determines that relocation beyond 50 miles is
justified.
(2) Packing, crating, unpacking, and uncrating of the personal
property.
(3) Disconnecting, dismantling, removing, reassembling, and
reinstalling relocated household appliances and other personal
property. For businesses, farms or nonprofit organizations this
includes machinery, equipment, substitute personal property, and
connections to utilities available within the building; it also
includes modifications to the personal property, including those
mandated by Federal, State or local law, code or ordinance, necessary
to adapt it to the replacement structure, the replacement site, or the
utilities at the replacement site, and modifications necessary to adapt
the utilities at the replacement site to the personal property.
(4) Storage of the personal property for a period not to exceed 12
months, unless the Agency determines that a longer period is necessary.
(5) Insurance for the replacement value of the property in
connection with the move and necessary storage.
(6) 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 is not reasonably available.
(7) Other moving-related expenses that are not listed as ineligible
under
[[Page 625]]
Sec. 24.301(h), as the Agency determines to be reasonable and
necessary.
(8) The reasonable cost of disassembling, moving, and reassembling
any appurtenances attached to a mobile home, such as porches, decks,
skirting, and awnings, which were not acquired, anchoring of the unit,
and utility ``hookup'' charges.
(9) The reasonable cost of repairs and/or modifications so that a
mobile home can be moved and/or made decent, safe, and sanitary.
(10) The cost of a nonrefundable mobile home park entrance fee, to
the extent it does not exceed the fee at a comparable mobile home park,
if the person is displaced from a mobile home park or the Agency
determines that payment of the fee is necessary to effect relocation.
(11) Any license, permit, fees or certification required of the
displaced person at the replacement location. However, the payment may
be based on the remaining useful life of the existing license, permit,
fees or certification.
(12) Professional services as the Agency determines to be actual,
reasonable and necessary for:
(i) Planning the move of the personal property;
(ii) Moving the personal property; and
(iii) Installing the relocated personal property at the replacement
location.
(13) Relettering signs and replacing stationery on hand at the time
of displacement that are made obsolete as a result of the move.
(14) Actual direct loss of tangible personal property incurred as a
result of moving or discontinuing the business or farm operation. The
payment shall consist of the lesser of:
(i) The fair market value in place of the item, as is for continued
use, less the proceeds from its sale. (To be eligible for payment, the
claimant must make a good faith effort to sell the personal property,
unless the Agency determines that such effort is not necessary. When
payment for property loss is claimed for goods held for sale, the
market value shall be based on the cost of the goods to the business,
not the potential selling prices.); or
(ii) The estimated cost of moving the item as is, but not including
any allowance for storage; or for reconnecting a piece of equipment if
the equipment is in storage or not being used at the acquired site.
(See appendix A, Sec. 24.301(g)(14)(i) and (ii).) If the business or
farm operation is discontinued, the estimated cost of moving the item
shall be based on a moving distance of 50 miles.
(15) The reasonable cost incurred in attempting to sell an item
that is not to be relocated.
(16) Purchase of substitute personal property. If an item of
personal property, which is used as part of a business or farm
operation is not moved but is promptly replaced with a substitute item
that performs a comparable function at the replacement site, the
displaced person is entitled to payment of the lesser of:
(i) The cost of the substitute item, including installation costs
of the replacement site, minus any proceeds from the sale or trade-in
of the replaced item; or
(ii) The estimated cost of moving and reinstalling the replaced
item but with no allowance for storage. At the Agency's discretion, the
estimated cost for a low cost or uncomplicated move may be based on a
single bid or estimate.
(17) Searching for a replacement location. A business or farm
operation is entitled to reimbursement for actual expenses, not to
exceed $2,500, as the Agency determines to be reasonable, which are
incurred in searching for a replacement location, including:
(i) Transportation;
(ii) Meals and lodging away from home;
(iii) Time spent searching, based on reasonable salary or earnings;
(iv) Fees paid to a real estate agent or broker to locate a
replacement site, exclusive of any fees or commissions related to the
purchase of such sites;
(v) Time spent in obtaining permits and attending zoning hearings;
and
(vi) Time spent negotiating the purchase of a replacement site
based on a reasonable salary or earnings.
(18) Low value/high bulk. When the personal property to be moved is
of low value and high bulk, and the cost of moving the property would
be disproportionate to its value in the judgment of the displacing
Agency, the allowable moving cost payment shall not exceed the lesser
of: The amount which would be received if the property were sold at the
site or the replacement cost of a comparable quantity delivered to the
new business location. Examples of personal property covered by this
provision include, but are not limited to, stockpiled sand, gravel,
minerals, metals and other similar items of personal property as
determined by the Agency.
(h) Ineligible moving and related expenses. A displaced person is
not entitled to payment for:
(1) The cost of moving any structure or other real property
improvement in which the displaced person reserved ownership. (However,
this part does not preclude the computation under Sec.
24.401(c)(2)(iii));
(2) Interest on a loan to cover moving expenses;
(3) Loss of goodwill;
(4) Loss of profits;
(5) Loss of trained employees;
(6) Any additional operating expenses of a business or farm
operation incurred because of operating in a new location except as
provided in Sec. 24.304(a)(6);
(7) Personal injury;
(8) Any legal fee or other cost for preparing a claim for a
relocation payment or for representing the claimant before the Agency;
(9) Expenses for searching for a replacement dwelling;
(10) Physical changes to the real property at the replacement
location of a business or farm operation except as provided in
Sec. Sec. 24.301(g)(3) and 24.304(a);
(11) Costs for storage of personal property on real property
already owned or leased by the displaced person, and
(12) Refundable security and utility deposits.
(i) Notification and inspection (nonresidential). The Agency shall
inform the displaced person, in writing, of the requirements of this
section as soon as possible after the initiation of negotiations. This
information may be included in the relocation information provided the
displaced person as set forth in Sec. 24.203. To be eligible for
payments under this section the displaced person must:
(1) Provide the Agency reasonable advance notice of the approximate
date of the start of the move or disposition of the personal property
and an inventory of the items to be moved. However, the Agency may
waive this notice requirement after documenting its file accordingly.
(2) Permit the Agency to make reasonable and timely inspections of
the personal property at both the displacement and replacement sites
and to monitor the move.
(j) Transfer of ownership (nonresidential). Upon request and in
accordance with applicable law, the claimant shall transfer to the
Agency ownership of any personal property that has not been moved,
sold, or traded in.
Sec. 24.302 Fixed payment for moving expenses--residential moves.
Any person displaced from a dwelling or a seasonal residence or a
dormitory style room is entitled to receive a fixed moving cost payment
as an alternative to a payment for actual moving and related expenses
under Sec. 24.301. This payment shall be determined according
[[Page 626]]
to the Fixed Residential Moving Cost Schedule \3\ approved by the
Federal Highway Administration and published in the Federal Register on
a periodic basis. The payment to a person with minimal personal
possessions who is in occupancy of a dormitory style room or a person
whose residential move is performed by an Agency at no cost to the
person shall be limited to the amount stated in the most recent edition
of the Fixed Residential Moving Cost Schedule.
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\3\ The Fixed Residential Moving Cost Schedule is available at
the following URL: http://www.fhwa.dot.gov//////realestate/fixsch96.htm. Agencies are cautioned to ensure they are using the
most recent edition.
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Sec. 24.303 Related nonresidential eligible expenses.
The following expenses, in addition to those provided by Sec.
24.301 for moving personal property, shall be provided if the Agency
determines that they are actual, reasonable and necessary:
(a) Connection to available nearby utilities from the right-of-way
to improvements at the replacement site.
(b) Professional services performed prior to the purchase or lease
of a replacement site to determine its suitability for the displaced
person's business operation including but not limited to, soil testing,
feasibility and marketing studies (excluding any fees or commissions
directly related to the purchase or lease of such site). At the
discretion of the Agency a reasonable pre-approved hourly rate may be
established. (See appendix A, Sec. 24.303(b).)
(c) Impact fees or one time assessments for anticipated heavy
utility usage, as determined necessary by the Agency.
Sec. 24.304 Reestablishment expenses--nonresidential moves.
In addition to the payments available under Sec. Sec. 24.301 and
24.303 of this subpart, a small business, as defined in Sec.
24.2(a)(24), farm or nonprofit organization is entitled to receive a
payment, not to exceed $10,000, for expenses actually incurred in
relocating and reestablishing such small business, farm or nonprofit
organization at a replacement site.
(a) Eligible expenses. Reestablishment expenses must be reasonable
and necessary, as determined by the Agency. They 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 the business.
(3) Construction and installation costs for exterior signing to
advertise the business.
(4) Redecoration or replacement of soiled or worn surfaces at the
replacement site, such as paint, paneling, or carpeting.
(5) Advertisement of replacement location.
(6) Estimated increased costs of operation during the first 2 years
at the replacement site for such items as:
(i) Lease or rental charges;
(ii) Personal or real property taxes;
(iii) Insurance premiums; and
(iv) Utility charges, excluding impact fees.
(7) Other items that the Agency considers essential to the
reestablishment of the business.
(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) Interest on money borrowed to make the move or purchase the
replacement property.
(4) Payment to a part-time business in the home which does not
contribute materially (defined at Sec. 24.2(a)(7)) to the household
income.
Sec. 24.305 Fixed payment for moving expenses--nonresidential moves.
(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
Sec. Sec. 24.301, 24.303 and 24.304. Such fixed payment, except for
payment to a nonprofit organization, shall equal the average annual net
earnings of the business, as computed in accordance with paragraph (e)
of this section, but not less than $1,000 nor more than $20,000. 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 which 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;
(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 not operated at a displacement dwelling solely
for the purpose of renting such dwelling to others;
(5) The business is not operated at the displacement site solely
for the purpose of renting the site to others; and
(6) The business contributed materially to the income of the
displaced person during the 2 taxable years prior to displacement. (See
Sec. 24.2(a)(7).)
(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;
(3) The entities are held out to the public, and to those
customarily dealing with them, as one business; and
(4) The same person or closely related persons own, control, or
manage the affairs of the entities.
(c) Farm operation. A displaced farm operation (defined at Sec.
24.2(a)(12)) may choose a fixed payment, in lieu of the payments for
actual moving and related expenses and actual reasonable
reestablishment expenses, in an amount equal to its average annual net
earnings as computed in accordance with paragraph (e) of this section,
but not less than $1,000 nor more than $20,000. In the case of a
partial acquisition of land, which was a farm operation before the
acquisition, the fixed payment shall be made only if the Agency
determines that:
(1) The acquisition of part of the land caused the operator to be
displaced 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
[[Page 627]]
choose a fixed payment of $1,000 to $20,000, in lieu of the payments
for actual moving and related expenses and actual reasonable
reestablishment expenses, if the Agency determines that it cannot be
relocated without a substantial loss of existing patronage (membership
or clientele). A nonprofit organization is assumed to meet this test,
unless the Agency demonstrates otherwise. Any payment in excess of
$1,000 must be supported with financial statements for the two 12-month
periods prior to the acquisition. The amount to be used for the payment
is the average of 2 years annual gross revenues less administrative
expenses. (See appendix A, Sec. 24.305(d).)
(e) Average 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 business 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 upon a different
period of time when the Agency 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. (See appendix A,
Sec. 24.305(e).)
Sec. 24.306 Discretionary utility relocation payments.
(a) Whenever a program or project undertaken by a displacing Agency
causes the relocation of a utility facility (see Sec. 24.2(a)(31)) and
the relocation of the facility creates extraordinary expenses for its
owner, the displacing Agency may, at its option, make a relocation
payment to the owner for all or part of such expenses, if the following
criteria are met:
(1) The utility facility legally occupies State or local government
property, or property over which the State or local government has an
easement or right-of-way;
(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
and occupancy permit, or other similar agreement;
(3) Relocation of the utility facility is required by and is
incidental to the primary purpose of the project or program undertaken
by the displacing Agency;
(4) There is no Federal law, other than the Uniform Act, which
clearly establishes a policy for the payment of utility moving costs
that is applicable to the displacing Agency's program or project; and
(5) State or local government reimbursement for utility moving
costs or payment of such costs by the displacing Agency is in
accordance with State law.
(b) For the purposes of this section, the term extraordinary
expenses means those expenses which, in the opinion of the displacing
Agency, are not routine or predictable expenses relating to the
utility's occupancy of rights-of-way, and are not ordinarily budgeted
as operating expenses, unless the owner of the utility facility has
explicitly and knowingly agreed to bear such expenses as a condition
for use of the property, or has voluntarily agreed to be responsible
for such expenses.
(c) A relocation payment to a utility facility owner for moving
costs under this section may not exceed the cost to functionally
restore the service disrupted by the federally-assisted program or
project, less any increase in value of the new facility and salvage
value of the old facility. The displacing Agency and the utility
facility owner shall reach prior agreement on the nature of the utility
relocation work to be accomplished, the eligibility of the work for
reimbursement, the responsibilities for financing and accomplishing the
work, and the method of accumulating costs and making payment. (See
appendix A, Sec. 24.306.)
Subpart E--Replacement Housing Payments
Sec. 24.401 Replacement housing payment for 180-day homeowner-
occupants.
(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 initiation of
negotiations; and
(2) Purchases and occupies a decent, safe, and sanitary replacement
dwelling within one year after the later of the following dates (except
that the Agency may extend such one year period for good cause):
(i) The date the displaced person receives final payment for the
displacement dwelling or, in the case of condemnation, the date the
full amount of the estimate of just compensation is deposited in the
court; or
(ii) The date the displacing Agency's obligation under Sec. 24.204
is met.
(b) Amount of payment. The replacement housing payment for an
eligible 180-day homeowner-occupant may not exceed $22,500. (See also
Sec. 24.404.) The payment under this subpart is limited to the amount
necessary to relocate to a comparable replacement dwelling within one
year from the date the displaced homeowner-occupant is paid for the
displacement dwelling, or the date a comparable replacement dwelling is
made available to such person, whichever is later. The payment shall be
the sum of:
(1) The amount by which the cost of a replacement dwelling exceeds
the acquisition cost of the displacement dwelling, as determined in
accordance with paragraph (c) of this section;
(2) The increased interest costs and other debt service costs which
are incurred in connection with the mortgage(s) on the replacement
dwelling, as determined in accordance with paragraph (d) of this
section; and
(3) The reasonable expenses incidental to the purchase of the
replacement dwelling, as determined in accordance with paragraph (e) of
this section.
(c) Price differential. (1) Basic computation. The price
differential to be paid under paragraph (b)(1) of this section is the
amount which must be added to the acquisition cost of the displacement
dwelling and site (see Sec. 24.2(a)(11)) to provide a total amount
equal to the lesser of:
(i) The reasonable cost of a comparable replacement dwelling as
determined in accordance with Sec. 24.403(a); or
(ii) The purchase price of the decent, safe, and sanitary
replacement dwelling actually purchased and occupied by the displaced
person.
(2) 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:
(i) The cost of moving and restoring the dwelling to a condition
comparable to that prior to the move;
(ii) The cost of making the unit a decent, safe, and sanitary
replacement dwelling (defined at Sec. 24.2(a)(8)); and
(iii) The current market value for residential use of the
replacement
[[Page 628]]
dwelling site (see appendix A, Sec. 24.401(c)(2)(iii)), unless the
claimant rented the displacement site and there is a reasonable
opportunity for the claimant to rent a suitable replacement site; and
(iv) 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 costs. The displacing Agency shall
determine the factors to be used in computing the amount to be paid to
a displaced person under paragraph (b)(2) 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 amortized with the same monthly payment for principal and interest
as that for the mortgage(s) on the displacement dwelling. In addition,
payments shall include other debt service costs, 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
(d)(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 balance(s) on
the displacement dwelling; however, in the event the displaced person
obtains a smaller mortgage than the mortgage balance(s) computed in the
buydown determination, the payment will be prorated and reduced
accordingly. (See appendix A, Sec. 24.401(d).) In the case of a home
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 is less.
(2) The payment shall be based on the remaining term of the
mortgage(s) on the displacement dwelling or the term of the 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 charged by mortgage lending
institutions in the area in which 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:
(i) They are not paid as incidental expenses;
(ii) They do not exceed rates normal to similar real estate
transactions in the area;
(iii) 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 for the reduction of the 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 as the facts relative to the person's current
mortgage(s) are known 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 as intended.
(e) Incidental expenses. The incidental expenses to be paid under
paragraph (b)(3) of this section or Sec. 24.402(c)(1) are those
necessary and reasonable costs actually incurred by the displaced
person incident to the purchase of a replacement dwelling, and
customarily paid by the buyer, including:
(1) Legal, closing, and related costs, including those for title
search, preparing 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) Professional home inspection, certification of structural
soundness, and termite inspection.
(5) Credit report.
(6) Owner's and mortgagee's evidence of title, e.g., title
insurance, not to exceed the costs for a comparable replacement
dwelling.
(7) Escrow agent's fee.
(8) State revenue or documentary stamps, sales or transfer taxes
(not to exceed the costs for a comparable replacement dwelling).
(9) Such other costs as the Agency determine to be incidental to
the purchase.
(f) Rental assistance payment for 180-day homeowner. A 180-day
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. The
amount of the rental assistance payment is based on a determination of
market rent for the acquired dwelling compared to a comparable rental
dwelling available on the market. The difference, if any, is computed
in accordance with Sec. 24.402(b)(1), except that the limit of $5,250
does not apply, and disbursed in accordance with Sec. 24.402(b)(3).
Under no circumstances would the rental assistance payment exceed the
amount that could have been received under Sec. 24.401(b)(1) had the
180-day homeowner elected to purchase and occupy a comparable
replacement dwelling.
Sec. 24.402 Replacement housing payment for 90-day occupants.
(a) Eligibility. A tenant or owner-occupant displaced from a
dwelling is entitled to a payment not to exceed $5,250 for rental
assistance, as computed in accordance with paragraph (b) of this
section, or downpayment assistance, as computed in accordance with
paragraph (c) of this section, if such displaced person:
(1) Has actually and lawfully occupied the displacement dwelling
for at least 90 days immediately prior to the initiation of
negotiations; 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:
(i) For a tenant, the date he or she moves from the displacement
dwelling; or
(ii) For an owner-occupant, the later of:
(A) The date he or she receives final payment for the displacement
dwelling, or in the case of condemnation, the date the full amount of
the estimate of just compensation is deposited with the court; or
(B) The date he or she moves from the displacement dwelling.
(b) Rental assistance payment. (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 Sec. 24.404.)
Such payment shall be 42 times the amount obtained by subtracting the
base monthly rental for the displacement dwelling from the lesser of:
(i) The monthly rent and estimated average monthly cost of
utilities for a comparable replacement dwelling; or
(ii) The monthly rent and estimated average monthly cost of
utilities for 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:
(i) The average monthly cost for rent and utilities at the
displacement
[[Page 629]]
dwelling for a reasonable period prior to displacement, as determined
by the Agency (for an owner-occupant, use the fair market rent for the
displacement dwelling. For a tenant who paid little or no rent for the
displacement dwelling, use the fair market rent, unless its use would
result in a hardship because of the person's income or other
circumstances);
(ii) Thirty (30) percent of the displaced person's average monthly
gross household income if the amount is classified as ``low income'' by
the U.S. Department of Housing and Urban Development's Annual Survey of
Income Limits for the Public Housing and Section 8 Programs \4\. The
base monthly rental shall be established solely on the criteria in
paragraph (b)(2)(i) of this section for persons with income exceeding
the survey's ``low income'' limits, for persons refusing to provide
appropriate evidence of income, and for persons who are dependents. A
full time student or resident of an institution may be assumed to be a
dependent, unless the person demonstrates otherwise; or,
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\4\ The U.S. Department of Housing and Urban Development's
Public Housing and Section 8 Program Income Limits are updated
annually and are available on FHWA's Web site at http://www.fhwa.dot.gov/realestate/ua/ualic.htm.
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(iii) The total of the amounts designated for shelter and utilities
if the displaced person is receiving a welfare assistance payment from
a program that designates the amounts for shelter and utilities.
(3) Manner of disbursement. A rental assistance payment may, at the
Agency's discretion, be disbursed in either a lump sum or in
installments. However, except as limited by Sec. 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 housing.
(c) Downpayment assistance payment--(1) Amount of payment. An
eligible displaced person who purchases a replacement dwelling is
entitled to a downpayment 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 Agency's discretion, a
downpayment assistance payment that is less than $5,250 may be
increased to any amount not to exceed $5,250. However, the payment to a
displaced homeowner shall not exceed the amount the owner would receive
under Sec. 24.401(b) if he or she met the 180-day occupancy
requirement. If the Agency elects to provide the maximum payment of
$5,250 as a downpayment, the Agency shall apply this discretion in a
uniform and consistent manner, so that eligible displaced persons in
like circumstances are treated equally. A displaced person eligible to
receive a payment as a 180-day owner-occupant under Sec. 24.401(a) is
not eligible for this payment. (See appendix A, Sec. 24.402(c).)
(2) Application of payment. The full amount of the replacement
housing payment for downpayment assistance must be applied to the
purchase price of the replacement dwelling and related incidental
expenses.
Sec. 24.403 Additional rules governing replacement housing payments.
(a) Determining cost of comparable replacement dwelling. The upper
limit of a replacement housing payment shall be based on the cost of a
comparable replacement dwelling (defined at Sec. 24.2(a)(6)).
(1) If available, at least three comparable replacement dwellings
shall be examined and the payment computed on the basis of the dwelling
most nearly representative of, and equal to, or better than, the
displacement dwelling.
(2) If the site of the comparable replacement dwelling lacks a
major exterior attribute of the displacement dwelling site, (e.g., the
site is significantly smaller or does not contain a swimming pool), the
value of such attribute shall be subtracted from the acquisition cost
of the displacement dwelling for purposes of computing the payment.
(3) If the acquisition of a portion of a typical residential
property causes the displacement of the owner from the dwelling and the
remainder is a buildable residential lot, the Agency may offer to
purchase the entire property. If the owner refuses to sell the
remainder to the Agency, the market value of the remainder may be added
to the acquisition cost of the displacement 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 costs are generally the same or higher.
(5) Multiple occupants of one displacement dwelling. If two or more
occupants of the displacement dwelling move to separate replacement
dwellings, each occupant is entitled to a reasonable prorated share, as
determined by the Agency, of any relocation payments that would have
been made if the occupants 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.
(6) 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. The Agency shall not
withhold any part of a relocation payment to a displaced person to
satisfy an obligation to any other creditor.
(7) Mixed-use and multifamily properties. If the displacement
dwelling was part of a property that contained another dwelling unit
and/or space used for nonresidential 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 the acquisition cost when
computing the replacement housing payment.
(b) Inspection of replacement dwelling. Before making a replacement
housing payment or releasing the initial payment from escrow, the
Agency or its designated representative shall inspect the replacement
dwelling and determine whether it is a decent, safe, and sanitary
dwelling as defined at Sec. 24.2(a)(8).
(c) Purchase of replacement dwelling. A displaced person is
considered to have met the requirement to purchase a replacement
dwelling, if the person:
(1) Purchases a dwelling;
(2) Purchases and rehabilitates a substandard dwelling;
(3) Relocates a dwelling which he or she owns or purchases;
(4) Constructs a dwelling on a site he or she owns or purchases;
(5) Contracts for the purchase or construction of a dwelling on a
site provided by a builder or on a site the person owns or purchases;
or
(6) Currently owns a previously purchased dwelling and site,
valuation of which shall be on the basis of current market value.
(d) Occupancy requirements for displacement or replacement
dwelling. No person shall be denied eligibility for a replacement
housing payment solely because the person is unable to meet the
occupancy requirements set forth in these regulations for a reason
beyond his or her control, including:
(1) A disaster, an emergency, or an imminent threat to the public
health or welfare, as determined by the President, the Federal Agency
funding the project, or the displacing Agency; or
(2) Another reason, such as a delay in the construction of the
replacement dwelling, military duty, or hospital stay, as determined by
the Agency.
(e) Conversion of payment. A displaced person who initially rents a
replacement dwelling and receives a rental assistance payment under
[[Page 630]]
Sec. 24.402(b) is eligible to receive a payment under Sec. 24.401 or
Sec. 24.402(c) if he or she meets the eligibility criteria for such
payments, including purchase and occupancy within the prescribed 1-year
period. Any portion of the rental assistance payment that has been
disbursed shall be deducted from the payment computed under Sec.
24.401 or Sec. 24.402(c).
(f) Payment after death. A replacement housing payment is personal
to the displaced person and upon his or her death the undisbursed
portion of any such payment shall not be paid to the heirs or assigns,
except that:
(1) The amount attributable to the displaced person's period of
actual occupancy of the replacement housing shall be paid.
(2) Any remaining payment shall be disbursed to the remaining
family members of the displaced household in any case in which a member
of a displaced family dies.
(3) Any portion of a replacement housing 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.
(g) Insurance proceeds. To the extent necessary to avoid duplicate
compensation, the amount of any insurance proceeds received by a person
in connection with a loss to the displacement dwelling due to a
catastrophic occurrence (fire, flood, etc.) shall be included in the
acquisition cost of the displacement dwelling when computing the price
differential. (See Sec. 24.3.)
Sec. 24.404 Replacement housing of last resort.
(a) Determination to provide replacement housing of last resort.
Whenever a program or project cannot proceed on a timely basis because
comparable replacement dwellings are not available within the monetary
limits for owners or tenants, as specified in Sec. 24.401 or Sec.
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 basis, 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;
(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;
(ii) A program or project cannot be advanced to completion in 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.
(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 of providing 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 Sec. 24.401 or Sec. 24.402. A replacement housing payment under
this section may be provided in installments or in a lump sum at the
Agency's discretion.
(ii) Rehabilitation of and/or additions to an existing 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, if 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 for persons with disabilities.
(2) Under special 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 appendix A, Sec. 24.404(c)),
including upgraded, but smaller replacement housing that is decent,
safe, and sanitary and adequate to accommodate individuals or families
displaced from marginal or substandard housing with probable functional
obsolescence. In no event, however, shall a displaced person be
required to move into a dwelling that is not functionally equivalent in
accordance with Sec. 24.2(a)(6)(ii) of this part.
(3) The Agency shall provide assistance under this subpart to a
displaced person who is not eligible to receive a replacement housing
payment under Sec. Sec. 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 displaced person's
financial means. (See Sec. 24.2(a)(6)(viii)(C).) Such assistance shall
cover a period of 42 months.
Subpart F--Mobile Homes
Sec. 24.501 Applicability.
(a) General. This subpart describes the requirements governing the
provision of replacement housing payments to a 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 is entitled to a moving expense payment in accordance
with subpart D of this part and a replacement housing payment in
accordance with subpart E of this part to the same extent and subject
to the same requirements as persons displaced from conventional
dwellings. Moving cost payments to persons occupying mobile homes are
covered in Sec. 24.301(g)(1) through (g)(10).
(b) Partial acquisition of mobile home park. The acquisition of a
portion of a mobile home park property may leave a remaining part of
the property that is not adequate to continue the operation of the
park. If the Agency determines that a mobile home located in the
remaining part of the property must be moved as a direct result of the
project, the occupant of the mobile home shall be considered to be a
displaced person
[[Page 631]]
who is entitled to relocation payments and other assistance under this
part.
Sec. 24.502 Replacement housing payment for 180-day mobile homeowner
displaced from a mobile home, and/or from the acquired mobile home
site.
(a) Eligibility. An owner-occupant displaced from a mobile home or
site is entitled to a replacement housing payment, not to exceed
$22,500, under Sec. 24.401 if:
(1) The person occupied the mobile home on the displacement site
for at least 180 days immediately before:
(i) The initiation of negotiations to acquire the mobile home, if
the person owned the mobile home and the mobile home is real property;
(ii) The initiation of negotiations to acquire the mobile home site
if the mobile home is personal property, but the person owns the mobile
home site; or
(iii) The date of the Agency's written notification to the owner-
occupant that the owner is determined to be displaced from the mobile
home as described in paragraphs (a)(3)(i) through (iv) of this section.
(2) The person meets the other basic eligibility requirements at
Sec. 24.401(a)(2); and
(3) The Agency acquires the mobile home as real estate, or acquires
the mobile home site from the displaced owner, or the mobile home is
personal property but the owner is displaced from the mobile home
because the Agency determines that the mobile home:
(i) Is not, and cannot economically be made decent, safe, and
sanitary;
(ii) Cannot be relocated without substantial damage or unreasonable
cost;
(iii) Cannot be relocated because there is no available comparable
replacement site; or
(iv) Cannot be relocated because it does not meet mobile home park
entrance requirements.
(b) Replacement housing payment computation for a 180-day owner
that is displaced from a mobile home. The replacement housing payment
for an eligible displaced 180-day owner is computed as described at
Sec. 24.401(b) incorporating the following, as applicable:
(1) If the Agency acquires the mobile home as real estate and/or
acquires the owned site, the acquisition cost used to compute the price
differential payment is the actual amount paid to the owner as just
compensation for the acquisition of the mobile home, and/or site, if
owned by the displaced mobile homeowner.
(2) If the Agency does not purchase the mobile home as real estate
but the owner is determined to be displaced from the mobile home and
eligible for a replacement housing payment based on paragraph
(a)(1)(iii) of this section, the eligible price differential payment
for the purchase of a comparable replacement mobile home, is the lesser
of the displaced mobile homeowner's net cost to purchase a replacement
mobile home (i.e., purchase price of the replacement mobile home less
trade-in or sale proceeds of the displacement mobile home); or, the
cost of the Agency's selected comparable mobile home less the Agency's
estimate of the salvage or trade-in value for the mobile home from
which the person is displaced.
(3) If a comparable replacement mobile home site is not available,
the price differential payment shall be computed on the basis of the
reasonable cost of a conventional comparable replacement dwelling.
(c) Rental assistance payment for a 180-day owner-occupant that is
displaced from a leased or rented mobile home site. If the displacement
mobile home site is leased or rented, a displaced 180-day owner-
occupant is entitled to a rental assistance payment computed as
described in Sec. 24.402(b). This rental assistance payment may be
used to lease a replacement site; may be applied to the purchase price
of a replacement site; or may be applied, with any replacement housing
payment attributable to the mobile home, to the purchase of a
replacement mobile home or conventional decent, safe and sanitary
dwelling.
(d) Owner-occupant not displaced from the mobile home. If the
Agency determines that a mobile home is personal property and may be
relocated to a comparable replacement site, but the owner-occupant
elects not to do so, the owner is not entitled to a replacement housing
payment for the purchase of a replacement mobile home. However, the
owner is eligible for moving costs described at Sec. 24.301 and any
replacement housing payment for the purchase or rental of a comparable
site as described in this section or Sec. 24.503 as applicable.
Sec. 24.503 Replacement housing payment for 90-day mobile home
occupants.
A displaced tenant or owner-occupant of a mobile home and/or site
is eligible for a replacement housing payment, not to exceed $5,250,
under Sec. 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 negotiations;
(b) The person meets the other basic eligibility requirements at
Sec. 24.402(a); and
(c) The Agency acquires the mobile home and/or mobile home site, or
the mobile home is not acquired by the Agency but the Agency determines
that the occupant is displaced from the mobile home because of one of
the circumstances described at Sec. 24.502(a)(3).
Subpart G--Certification
Sec. 24.601 Purpose.
This subpart permits a State Agency to fulfill its responsibilities
under the Uniform Act by certifying that it shall operate in accordance
with State laws and regulations which shall accomplish the purpose and
effect of the Uniform Act, in lieu of providing the assurances required
by Sec. 24.4 of this part.
Sec. 24.602 Certification application.
An Agency wishing to proceed on the basis of a certification may
request an application for certification from the Lead Agency Director,
Office of Real Estate Services, HEPR-1, Federal Highway Administration,
400 Seventh St, SW., Washington, DC 20590. The completed application
for certification must be approved by the governor of the State, or the
governor's designee, and must be coordinated with the Federal funding
Agency, in accordance with application procedures.
Sec. 24.603 Monitoring and corrective action.
(a) The Federal Lead Agency shall, in coordination with other
Federal Agencies, monitor from time to time State Agency implementation
of programs or projects conducted under the certification process and
the State Agency shall make available any information required for this
purpose.
(b) The Lead Agency may require periodic information or data from
affected Federal or State Agencies.
(c) A Federal Agency may, after consultation with the Lead Agency,
and 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 shall
initiate consultation with the Lead Agency at least 30 days prior to
any decision to rescind approval of a certification under this subpart.
The Lead Agency will also inform other Federal Agencies, which have
accepted a certification under this subpart from
[[Page 632]]
the same State Agency, and will take whatever other action that may be
appropriate.
(d) Section 103(b)(2) of the Uniform Act, as amended, requires that
the head of the Lead Agency report biennially to the Congress on State
Agency implementation of section 103. To enable adequate preparation of
the prescribed biennial report, the Lead Agency may require periodic
information or data from affected Federal or State Agencies.
Appendix A to Part 24--Additional Information
This appendix provides additional information to explain the
intent of certain provisions of this part.
Subpart A--General
Section 24.2 Definitions and Acronyms
Section 24.2(a)(6) Definition of comparable replacement
dwelling. The requirement in Sec. 24.2(a)(6)(ii) that a comparable
replacement dwelling be ``functionally equivalent'' to the
displacement dwelling means that it must perform the same function,
and provide the same utility. While it need not possess every
feature of the displacement dwelling, the principal features must be
present.
For example, if the displacement dwelling contains a pantry 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 substitute for basement
workshop space. A dining area may substitute for a separate dining
room. Under some circumstances, attic space could substitute for
basement space for storage purposes, and vice versa.
Only in unusual circumstances may a comparable replacement
dwelling contain fewer rooms or, consequentially, less living space
than the displacement dwelling. Such may be the case when a decent,
safe, and sanitary replacement dwelling (which by definition is
``adequate to accommodate'' the displaced person) may be found to be
``functionally equivalent'' to a larger but very run-down
substandard displacement dwelling. Another example is when a
displaced person accepts an offer of government housing assistance
and the applicable requirements of such housing assistance program
require that the displaced person occupy a dwelling that has fewer
rooms or less living space than the displacement dwelling.
Section 24.2(a)(6)(vii). The definition of comparable
replacement dwelling 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.
Section 24.2(a)(6)(ix). A public housing unit may qualify as a
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 from a similarly
subsidized unit or public housing.
A housing program subsidy that is paid to a person (not tied to
the building), such as a HUD Section 8 Housing Voucher Program, 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 precludes 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 assistance
program, the rules of that program governing the size of the
dwelling apply, and the rental assistance payment under Sec. 24.402
would be computed on the basis of the person's actual out-of-pocket
cost for the replacement housing.)
Section 24.2(a)(8)(ii) Decent, Safe and Sanitary. Many local
housing and occupancy codes require the abatement of deteriorating
paint, including lead-based paint and lead-based paint dust, in
protecting the public health and safety. Where such standards exist,
they must be honored. Even where local law does not mandate
adherence to such standards, it is strongly recommended that they be
considered as a matter of public policy.
Section 24.2(a)(8)(vii) Persons with a disability. Reasonable
accommodation of a displaced person with a disability at the
replacement dwelling means the Agency is required to address persons
with a physical impairment that substantially limits one or more of
the major life activities. In these situations, reasonable
accommodation should include the following at a minimum: Doors of
adequate width; ramps or other assistance devices to traverse stairs
and access bathtubs, shower stalls, toilets and sinks; storage
cabinets, vanities, sink and mirrors at appropriate heights. Kitchen
accommodations will include sinks and storage cabinets built at
appropriate heights for access. The Agency shall also consider other
items that may be necessary, such as physical modification to a
unit, based on the displaced person's needs.
Section 24.2(a)(9)(ii)(D) Persons not displaced. Paragraph
(a)(9)(ii)(D) of this section recognizes that there are
circumstances where the acquisition, rehabilitation or demolition 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 exercised to ensure that they are treated fairly
and equitably. For example, if the tenant-occupant of a 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 reimbursed for
all reasonable out-of-pocket expenses incurred in connection with
the temporary relocation. These expenses may include moving expenses
and increased housing costs during the temporary relocation.
Temporary relocation should not extend beyond one year before the
person is returned to his or her previous unit or location. The
Agency must contact any residential tenant who has been temporarily
relocated for a period beyond one year and offer all permanent
relocation assistance. This assistance would be in addition to any
assistance the person has already received for temporary relocation,
and may not be reduced by the amount of any temporary relocation
assistance.
Similarly, if a business will be shut-down for any length of
time due to rehabilitation of a site, it may be temporarily
relocated and reimbursed for all reasonable out of pocket expenses
or must be determined to be displaced at the Agency's option.
Any person who 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 49 CFR part 24.10 of this regulation.
Section 24.2(a)(11) Dwelling Site. This definition ensures that
the computation of replacement housing payments are accurate and
realistic (a) when the dwelling is located on a larger than normal
site, (b) when mixed-use properties are acquired, (c) when more than
one dwelling is located on the acquired property, or (d) when the
replacement dwelling is retained by an owner and moved to another
site.
Section 24.2(a)(14) Household income (exclusions). Household
income for purposes of this regulation does not include program
benefits that are not considered income by Federal law such as food
stamps and the Women Infants and Children (WIC) program. For a more
detailed list of income exclusions see Federal Highway
Administration, Office of Real Estate Services Web site: http://www.fhwa.dot.gov/realestate/. (FR 4644-N-16 page 20319 Updated.) If
there is a question on whether or not to include income from a
specific program contact the Federal Agency administering the
program.
Section 24(a)(15) Initiation of negotiations. This section
provides a special definition for acquisition and displacements
under Pub. L. 96-510 or Superfund. The order of activities under
Superfund may differ slightly in that temporary relocation may
precede acquisition. Superfund is a program designed to clean up
hazardous waste sites. When such a site is discovered, it may be
necessary, in certain limited circumstances, to alert individual
owners and tenants to potential health or safety threats and to
offer to temporarily relocate them while additional information is
gathered. If a decision is later made to permanently relocate such
persons, those who had been temporarily relocated under Superfund
authority 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 housing payment. In order to prevent this unfair
outcome, we have provided a definition of initiation of negotiation,
which is based on the date the Federal Government offers to
temporarily relocate an owner or tenant from the subject property.
[[Page 633]]
Section 24.2(a)(15)(iv) Initiation of negotiations (Tenants.)
Tenants who occupy property that may be acquired amicably, without
recourse to the use of the power of eminent domain, must be fully
informed as to their eligibility for relocation assistance. This
includes notifying such tenants of their potential eligibility when
negotiations are initiated, notifying them if they become fully
eligible, and, in the event the purchase of the property will not
occur, notifying them that they are no longer eligible for
relocation benefits. If a tenant is not readily accessible, as the
result of a disaster or emergency, the Agency must make a good faith
effort to provide these notifications and document its efforts in
writing.
Section 24.2(a)(17) Mobile home. The following examples provide
additional guidance on the types of mobile homes and manufactured
housing that can be found acceptable as comparable replacement
dwellings for persons displaced from mobile homes. A recreational
vehicle that is capable of providing living accommodations may be
considered a replacement dwelling if the following criteria are met:
the recreational vehicle is purchased and occupied as the
``primary'' place of residence; it is located on a purchased or
leased site and connected to or have available all necessary
utilities for functioning as a housing unit on the date of the
displacing Agency's inspection; and, the dwelling, as sited, meets
all local, State, and Federal requirements for a decent, safe and
sanitary dwelling. (The regulations of some local jurisdictions will
not permit the consideration of these vehicles as decent, safe and
sanitary dwellings. In those cases, the recreational vehicle will
not qualify as a replacement dwelling.)
For HUD programs, mobile home is defined as ``a structure,
transportable in one or more sections, which, in the traveling mode,
is eight body feet or more in width or forty body feet or more in
length, or, when erected on site, is three hundred or more square
feet, and which is built on a permanent chassis and designed to be
used as a dwelling with or without a permanent foundation when
connected to the required utilities and includes the plumbing,
heating, air-conditioning, and electrical systems contained therein;
except that such terms shall include any structure which meets all
the requirements of this paragraph except the size requirements and
with respect to which the manufacturer voluntarily files a
certification required by the Secretary of HUD and complies with the
standards established under the National Manufactured Housing
Construction and Safety Standards Act, provided by Congress in the
original 1974 Manufactured Housing Act.'' In 1979 the term ``mobile
home'' was changed to ``manufactured home.'' For purposes of this
regulation, the terms mobile home and manufactured home are
synonymous.
When assembled, manufactured homes built after 1976 contain no
less than 320 square feet. They may be single or multi-sectioned
units when installed. Their designation as personalty or realty will
be determined by State law. When determined to be realty, most are
eligible for conventional mortgage financing.
The 1976 HUD standards distinguish manufactured homes from
factory-built ``modular homes'' as well as conventional or ``stick-
built'' homes. Both of these types of housing are required to meet
State and local construction codes.
Section 24.3 No Duplication of Payments. This section prohibits
an Agency from making a payment to a person under these regulations
that would duplicate another payment the person receives under
Federal, State, or local law. The Agency is not required 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 is computed.
Subpart B--Real Property Acquisition
Federal Agencies may find that, for Federal eminent domain
purposes, the terms ``fair market value'' (as used throughout this
subpart) and ``market value,'' which may be the more typical term in
private transactions, may be synonymous.
Section 24.101(a) Direct Federal program or project. All 49 CFR
Part 24 Subpart B (real property acquisition) requirements apply to
all direct acquisitions for Federal programs and projects by Federal
Agencies, except for acquisitions undertaken by the Tennessee Valley
Authority or the Rural Utilities Service. There are no exceptions
for ``voluntary transactions.''
Section 24.101(b)(1)(i). The term ``general geographic area'' is
used to clarify that the ``geographic area'' is not to be construed
to be a small, limited area.
Sections 24.101(b)(1)(iv) and (2)(ii). These sections provide
that, for programs and projects receiving Federal financial
assistance described in Sec. Sec. 24.101(b)(1) and (2), Agencies
are to inform the owner(s) in writing of the Agency's estimate of
the market value for the property to be acquired.
While this part does not require an appraisal for these
transactions, Agencies may still decide that an appraisal is
necessary to support their determination of the market value of
these properties, and, in any event, Agencies must have some
reasonable basis for their determination of market value. In
addition, some of the concepts inherent in Federal Program appraisal
practice are appropriate for these estimates. It would be
appropriate for Agencies to adhere to project influence
restrictions, as well as guard against discredited ``public interest
value'' valuation concepts.
After an Agency has established an amount it believes to be the
market value of the property and has notified the owner of this
amount in writing, an Agency may negotiate freely with the owner in
order to reach agreement. Since these transactions are voluntary,
accomplished by a willing buyer and a willing seller, negotiations
may result in agreement for the amount of the original estimate, an
amount exceeding it, or for a lesser amount. Although not required
by the regulations, it would be entirely appropriate for Agencies to
apply the administrative settlement concept and procedures in Sec.
24.102(i) to negotiate amounts that exceed the original estimate of
market value. Agencies shall not take any coercive action in order
to reach agreement on the price to be paid for the property.
Section 24.101(c) Less-than-full-fee interest in real property.
This provision provides a benchmark beyond which the requirements of
the subpart clearly apply to leases.
Section 24.102(c)(2) Appraisal, waiver thereof, and invitation
to owner. The purpose of the appraisal waiver provision is to
provide Agencies a technique to avoid the costs and time delay
associated with appraisal requirements for low-value, non-complex
acquisitions. The intent is that non-appraisers make the waiver
valuations, freeing appraisers to do more sophisticated work.
The Agency employee making the determination to use the
appraisal waiver process must have enough understanding of appraisal
principles to be able to determine whether or not the proposed
acquisition is low value and uncomplicated.
Waiver valuations are not appraisals as defined by the Uniform
Act and these regulations; therefore, appraisal performance
requirements or standards, regardless of their source, are not
required for waiver valuations by this rule. Since waiver valuations
are not appraisals, neither is there a requirement for an appraisal
review. However, the Agency must have a reasonable basis for the
waiver valuation and an Agency official must still establish an
amount believed to be just compensation to offer the property
owner(s).
The definition of ``appraisal'' in the Uniform Act and appraisal
waiver provisions of the Uniform Act and these regulations are
Federal law and public policy and should be considered as such when
determining the impact of appraisal requirements levied by others.
Section 24.102(d) Establishment of offer of just compensation.
The initial offer to the property owner 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) Basic negotiation procedures. An offer should
be adequately presented to an owner, and the owner should be
properly informed. Personal, face-to-face contact should take place,
if feasible, but this section does not require such contact in all
cases.
This section also provides that the property owner be given a
reasonable opportunity to consider the Agency's offer and to present
relevant material to the Agency. In order to satisfy this
requirement, Agencies must allow owners time for analysis, research
and development, and compilation of a response, including perhaps
getting an appraisal. The needed time can vary significantly,
depending on the circumstances, but thirty (30) days would seem to
be the minimum time these actions can be reasonably expected to
require. Regardless of project time pressures, property owners must
be afforded this opportunity.
In some jurisdictions, there is pressure to initiate formal
eminent domain procedures at the earliest opportunity because
completing the eminent domain process, including gaining possession
of the needed real
[[Page 634]]
property, is very time consuming. These provisions are not intended
to restrict this practice, so long as it does not interfere with the
reasonable time that must be provided for negotiations, described
above, and the Agencies adhere to the Uniform Act ban on coercive
action (section 301(7) of the Uniform Act).
If the owner expresses intent to provide an appraisal report,
Agencies are encouraged to provide the owner and/or his/her
appraiser a copy of Agency appraisal requirements and inform them
that their appraisal should be based on those requirements.
Section 24.102(i) Administrative settlement. This section
provides guidance on administrative settlement as 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
review appraisers, must not be pressured to adjust their estimate of
value for the purpose of justifying such settlements. Such action
would invalidate the appraisal process.
Section 24.102(j) 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 is agreeable to the process.
Section 24.102(m) Fair rental. Section 301(6) of the Uniform Act
limits what an Agency may charge when a former owner or previous
occupant of a property is permitted to rent the property for a short
term or when occupancy is subject to termination by the Agency on
short notice. Such rent may not exceed ``the fair rental value of
the property to a short-term occupier.'' Generally, the Agency's
right to 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 24.102(n) Conflict of interest. The overall objective is
to minimize the risk of fraud while allowing Agencies to operate as
efficiently as possible. There are three parts to this provision.
The first provision is the prohibition against having any
interest in the real property being valued by the appraiser (for an
appraisal), the valuer (for a waiver estimate) or the review
appraiser (for an appraisal review.)
The second provision is that no person functioning as a
negotiator for a project or program can supervise or formally
evaluate the performance of any appraiser or review appraiser
performing appraisal or appraisal review work for that project or
program. The intent of this provision is to ensure appraisal/
valuation independence and to prevent inappropriate influence. It is
not intended to prevent Agencies from providing appraisers/valuers
with appropriate project information and participating in
determining the scope of work for the appraisal or valuation. For a
program or project receiving Federal financial assistance, the
Federal funding Agency may waive this requirement if it would create
a hardship for the Agency. The intent is to accommodate Federal-aid
recipients that have a small staff where this provision would be
unworkable.
The third provision is to minimize situations where
administrative costs exceed acquisition costs. Section 24.102(n)
also provides that the same person may prepare a valuation estimate
(including an appraisal) and negotiate that acquisition, if the
valuation estimate amount is $10,000 or less. However, it should be
noted that this exception for properties valued at $10,000 or less
is not mandatory, e.g., Agencies are not required to use those who
prepare a waiver valuation or appraisal of $10,000 or less to
negotiate the acquisition, and, all appraisals must be reviewed in
accordance with Sec. 24.104. This includes appraisals of real
property valued at $10,000 or less.
Section 24.103 Criteria for Appraisals. The term
``requirements'' is used throughout this section to avoid confusion
with The Appraisal Foundation's Uniform Standards of Professional
Appraisal Practice (USPAP) ``standards.'' Although this section
discusses appraisal requirements, the definition of ``appraisal''
itself at Sec. 24.2(a)(3) includes appraisal performance
requirements that are an inherent part of this section.
The term ``Federal and federally-assisted program or project''
is used to better identify the type of appraisal practices that are
to be referenced and to differentiate them from the private sector,
especially mortgage lending, appraisal practice.
Section 24.103(a) Appraisal requirements. The first sentence
instructs readers that requirements for appraisals for Federal and
federally-assisted programs or projects are located in 49 CFR part
24. These are the basic appraisal requirements for Federal and
federally-assisted programs or projects. However, Agencies may
enhance and expand on them, and there may be specific project or
program legislation that references other appraisal requirements.
These appraisal requirements are necessarily designed to comply
with the Uniform Act and other Federal eminent domain based
appraisal requirements. They are also considered to be consistent
with Standards Rules 1, 2, and 3 of the 2004 edition of the USPAP.
Consistency with USPAP has been a feature of these appraisal
requirements since the beginning of USPAP. This ``consistent''
relationship was more formally recognized in OMB Bulletin 92-06.
While these requirements are considered consistent with USPAP,
neither can supplant the other; their provisions are neither
identical, nor interchangeable. Appraisals performed for Federal and
federally-assisted real property acquisition must follow the
requirements in this regulation. Compliance with any other appraisal
requirements is not the purview of this regulation. An appraiser who
is committed to working within the bounds of USPAP should recognize
that compliance with both USPAP and these requirements may be
achieved by using the Supplemental Standards Rule and the
Jurisdictional Exception Rule of USPAP, where applicable.
The term ``scope of work'' defines the general parameters of the
appraisal. It reflects the needs of the Agency and the requirements
of Federal and federally-assisted program appraisal practice. It
should be developed cooperatively by the assigned appraiser and an
Agency official who is competent to both represent the Agency's
needs and respect valid appraisal practice. The scope of work
statement should include the purpose and/or function of the
appraisal, a definition of the estate being appraised, and if it is
market value, its applicable definition, and the assumptions and
limiting conditions affecting the appraisal. It may include
parameters for the data search and identification of the technology,
including approaches to value, to be used to analyze the data. The
scope of work should consider the specific requirements in 49 CFR
24.103(a)(1) through (5) and address them as appropriate.
Section 24.103(a)(1). The appraisal report should identify the
items considered in the appraisal to be real property, as well as
those identified as personal property.
Section 24.103(a)(2). All relevant and reliable approaches to
value are to be used. However, where an Agency determines that the
sales comparison approach will be adequate by itself and yield
credible appraisal results because of the type of property being
appraised and the availability of sales data, it may limit the
appraisal assignment to the sales comparison approach. This should
be reflected in the scope of work.
Section 24.103(b) Influence of the project on just compensation.
As used in this section, the term ``project'' means an undertaking
which is planned, designed, and intended to operate as a unit.
When the public is aware of the proposed project, project area
property values may be affected. Therefore, property owners 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 created by the proposed project.
Section 24.103(d)(1). The appraiser and review appraiser must
each be qualified and competent to perform the appraisal and
appraisal review assignments, respectively. Among other
qualifications, State licensing or certification and professional
society designations can help provide an indication of an
appraiser's abilities.
Section 24.104 Review of appraisals. The term ``review
appraiser'' is used rather than ``reviewing appraiser,'' to
emphasize that ``review appraiser'' is a separate specialty and not
just an appraiser who happens to be reviewing an appraisal. Federal
Agencies have long held the perspective that appraisal review is a
unique skill that, while it certainly builds on appraisal skills,
requires more. The review appraiser should possess both appraisal
technical abilities and the ability to be the two-way bridge between
the Agency's real property valuation needs and the appraiser.
Agency review appraisers typically perform a role greater than
technical appraisal review. They are often involved in early project
development. Later they may be involved in devising the scope of
work statements and participate in making
[[Page 635]]
appraisal assignments to fee and/or staff appraisers. They are also
mentors and technical advisors, especially on Agency policy and
requirements, to appraisers, both staff and fee. Additionally,
review appraisers are frequently technical advisors to other Agency
officials.
Section 24.104(a). This paragraph states that the review
appraiser is to review the appraiser's presentation and analysis of
market information and that it is to be reviewed against Sec.
24.103 and other applicable requirements, including, to the extent
appropriate, the Uniform Appraisal Standards for Federal Land
Acquisition. The appraisal review is to be a technical review by an
appropriately qualified review appraiser. The qualifications of the
review appraiser and the level of explanation of the basis for the
review appraiser's recommended (or approved) value depend on the
complexity of the appraisal problem. If the initial appraisal
submitted for review is not acceptable, the review appraiser is to
communicate and work with the appraiser to the greatest extent
possible to facilitate the appraiser's development of an acceptable
appraisal.
In doing this, the review appraiser is to remain in an advisory
role, not directing the appraisal, and retaining objectivity and
options for the appraisal review itself.
If the Agency intends that the staff review appraiser approve
the appraisal (as the basis for the establishment of the amount
believed to be just compensation), or establish the amount the
Agency believes is just compensation, she/he must be specifically
authorized by the Agency to do so. If the review appraiser is not
specifically authorized to approve the appraisal (as the basis for
the establishment of the amount believed to be just compensation),
or establish the amount believed to be just compensation, that
authority remains with another Agency official.
Section 24.104(b). In developing an independent approved or
recommended value, the review appraiser may reference any acceptable
resource, including acceptable parts of any appraisal, including an
otherwise unacceptable appraisal. When a review appraiser develops
an independent value, while retaining the appraisal review, that
independent value also becomes the approved appraisal of the fair
market value for Uniform Act Section 301(3) purposes. It is within
Agency discretion to decide whether a second review is needed if the
first review appraiser establishes a value different from that in
the appraisal report or reports on the property.
Section 24.104(c). Before acceptance of an appraisal, the review
appraiser must determine that the appraiser's documentation,
including valuation data and analysis of that data, demonstrates the
soundness of the appraiser's opinion of value. For the purposes of
this part, an acceptable appraisal is any appraisal that, on its
own, meets the requirements of Sec. 24.103. An approved appraisal
is the one acceptable appraisal that is determined to best fulfill
the requirement to be the basis for the amount believed to be just
compensation. Recognizing that appraisal is not an exact science,
there may be more than one acceptable appraisal of a property, but
for the purposes of this part, there can be only one approved
appraisal.
At the Agency's discretion, for a low value property requiring
only a simple appraisal process, the review appraiser's
recommendation (or approval), endorsing the appraiser's report, may
be determined to satisfy the requirement for the review appraiser's
signed report and certification.
Section 24.106(b). Expenses incidental to transfer of title to
the agency. Generally, the Agency is able to pay such incidental
costs directly and, 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 process of the
Agency's intent to make such arrangements. Such expenses must be
reasonable and necessary.
Subpart C--General Relocation Requirements
Section 24.202 Applicability and Section 205(c) Services to be
provided. In extraordinary circumstances, when a displaced person is
not readily accessible, the Agency must make a good faith effort to
comply with these sections and document its efforts in writing.
Section 24.204 Availability of comparable replacement dwelling
before displacement.
Section 24.204(a) General. This provision requires that no one
may be required to move from a dwelling without a comparable
replacement dwelling having been made available. In addition, Sec.
24.204(a) requires that, ``where possible, three or more comparable
replacement dwellings shall be made available.'' Thus, 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(c)(2)(ii)(D) emphasizes that if the comparable replacement
dwellings are located in areas of minority concentration, minority
persons should, if possible, also be given opportunities to relocate
to replacement dwellings not located in such areas.
Section 24.206 Eviction for cause. An eviction related to non-
compliance with a requirement related to carrying out a project
(e.g., failure to move or relocate when instructed, or to cooperate
in the relocation process) shall not negate a person's entitlement
to relocation payments and other assistance set forth in this part.
Section 24.207 General Requirements-Claims for relocation
payments. Section 24.207(a) allows an Agency to make a payment for
low cost or uncomplicated nonresidential moves without additional
documentation, as long as the payment is limited to the amount of
the lowest acceptable bid or estimate, as provided for in Sec.
24.301(d)(1).
While Sec. 24.207(f) prohibits an Agency from proposing or
requesting that a displaced person waive his or her rights or
entitlements to relocation assistance and payments, an Agency may
accept a written statement from the displaced person that states
that they have chosen not to accept some or all of the payments or
assistance to which they are entitled. Any such written statement
must clearly show that the individual knows what they are entitled
to receive (a copy of the Notice of Eligibility which was provided
may serve as documentation) and their statement must specifically
identify which assistance or payments they have chosen not to
accept. The statement must be signed and dated and may not be
coerced by the Agency.
Subpart D--Payment for Moving and Related Expenses
Section 24.301. Payment for Actual Reasonable Moving and Related
Expenses.
Section 24.301(e) Personal property only. Examples of personal
property only moves might be: personal property that is located on a
portion of property that is being acquired, but the business or
residence will not be taken and can still operate after the
acquisition; personal property that is located in a mini-storage
facility that will be acquired or relocated; personal property that
is stored on vacant land that is to be acquired.
For a nonresidential personal property only move, the owner of
the personal property has the options of moving the personal
property by using a commercial mover or a self-move.
If a question arises concerning the reasonableness of an actual
cost move, the acquiring Agency may obtain estimates from qualified
movers to use as the standard in determining the payment.
Section 24.301 (g)(14)(i) and (ii). If the piece of equipment is
operational at the acquired site, the estimated cost to reconnect
the equipment shall be based on the cost to install the equipment as
it currently exists, and shall not include the cost of code-required
betterments or upgrades that may apply at the replacement site. As
prescribed in the regulation, the allowable in-place value estimate
(Sec. 24.301(g)(14)(i)) and moving cost estimate (Sec.
24.301(g)(14)(ii)) must reflect only the ``as is'' condition and
installation of the item at the displacement site. The in-place
value estimate may not include costs that reflect code or other
requirements that were not in effect at the displacement site; or
include installation costs for machinery or equipment that is not
operable or not installed at the displacement site.
Section 24.301(g)(17) Searching expenses. In special cases where
the displacing Agency determines it to be reasonable and necessary,
certain additional categories of searching costs may be considered
for reimbursement. These include those costs involved in
investigating potential replacement sites and the time of the
business owner, based on salary or earnings, required to apply for
licenses or permits, zoning changes, and attendance at zoning
hearings. Necessary attorney fees required to obtain such licenses
or permits are also reimbursable. Time spent in negotiating the
purchase of a replacement business site is also reimbursable based
on a reasonable salary or earnings rate. In those instances when
such additional costs to
[[Page 636]]
investigate and acquire the site exceed $2,500, the displacing
Agency may consider waiver of the cost limitation under the Sec.
24.7, waiver provision. Such a waiver should be subject to the
approval of the Federal-funding Agency in accordance with existing
delegation authority.
Section 24.303(b) Professional Services. If a question should
arise as to what is a ``reasonable hourly rate,'' the Agency should
compare the rates of other similar professional providers in that
area.
Section 24.305 Fixed Payment for Moving Expenses--Nonresidential
Moves.
Section 24.305(d) Nonprofit organization. Gross revenues may
include membership fees, class fees, cash donations, tithes,
receipts from sales or other forms of fund collection that enables
the nonprofit organization to operate. Administrative expenses are
those for administrative support such as rent, utilities, salaries,
advertising, and other like items as well as fundraising expenses.
Operating expenses for carrying out the purposes of the nonprofit
organization are not included in administrative expenses. The
monetary receipts and expense amounts may be verified with certified
financial statements or financial documents required by public
Agencies.
Section 24.305(e) Average annual net earnings of a business or
farm operation. If the average annual net earnings of the displaced
business, farm, or nonprofit organization are determined to be less
than $1,000, even $0 or a negative amount, the minimum payment of
$1,000 shall be provided.
Section 24.306 Discretionary Utility Relocation Payments.
Section 24.306(c) describes the issues that the Agency and the
utility facility owner must agree to in determining the amount of
the relocation payment. To facilitate and aid in reaching such
agreement, the practices in the Federal Highway Administration
regulation, 23 CFR part 645, subpart A, Utility Relocations,
Adjustments and Reimbursement, should be followed.
Subpart E--Replacement Housing Payments
Section 24.401 Replacement Housing Payment for 180-day
Homeowner-Occupants.
Section 24.401(a)(2). An extension of eligibility 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, or physical modifications required for
reasonable accommodation of a replacement dwelling, or other like
circumstances causes a delay in occupying a decent, safe, and
sanitary replacement dwelling.
Section 24.401(c)(2)(iii) Price differential. The provision in
Sec. 24.401(c)(2)(iii) to use the current market value for
residential use does not mean the Agency must have the property
appraised. Any reasonable method for arriving at the market value
may be used.
Section 24.401(d) Increased mortgage interest costs. The
provision in Sec. 24.401(d) sets forth the factors to be used in
computing the payment that will 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 mortgages. This payment is commonly known as the
``buydown.''
The Agency must know the remaining principal balance, the
interest rate, and monthly principal and interest payments for the
old mortgage as well as the interest rate, points and term for the
new mortgage to compute the increased mortgage interest costs. If
the combination of interest and points for the new mortgage exceeds
the current prevailing fixed interest rate and points for
conventional mortgages and there is no justification for the
excessive rate, then 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 Principal Balance.......................... $50,000
Monthly Payment (principal and interest)............. $458.22
Interest rate (percent).............................. 7
New Mortgage:
Interest rate (percent).............................. 10
Points............................................... 3
Term (years)......................................... 15
------------------------------------------------------------------------
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.
------------------------------------------------------------------------
------------------------------------------------------------------------
Calculation:
Remaining Principal Balance......................... $50,000.00
Minus Monthly Payment (principal and interest)...... -42,010.18
---------------
Increased mortgage interest costs................... 7,989.82
3 points on $42,010.18.............................. 1,260.31
---------------
Total buydown necessary to maintain payments at 9,250.13
$458.22/month......................................
------------------------------------------------------------------------
If the new mortgage actually obtained is less than the computed
amount for a new mortgage ($42,010.18), the buydown shall be
prorated accordingly. If the actual mortgage obtained in our example
were $35,000, the buydown payment would be $7,706.57 ($35,000
divided by $42,010.18 = .8331; $9,250.13 multiplied by .83 =
$7,706.57).
The Agency is obligated to inform the displaced person of the
approximate amount of this payment and that the displaced person
must obtain a mortgage of at least the same amount as the old
mortgage and for at least the same term in order to receive the full
amount of this payment. The Agency must advise the displaced person
of the interest rate and points used to calculate the payment.
Section 24.402 Replacement Housing Payment for 90-day Occupants
Section 24.402(b)(2) Low income calculation example. The Uniform
Act requires that an eligible displaced person who rents a
replacement dwelling is entitled to a rental assistance payment
calculated in accordance with Sec. 24.402(b). One factor in this
calculation is to determine if a displaced person is ``low income,''
as defined by the U.S. Department of Housing and Urban Development's
annual survey of income limits for the Public Housing and Section 8
Programs. To make such a determination, the Agency must: (1)
Determine the total number of members in the household (including
all adults and children); (2) locate the appropriate table for
income limits applicable to the Uniform Act for the state in which
the displaced residence is located (found at: http://www.fhwa.dot.gov/realestate/ua/ualic.htm); (3) from the list of
local jurisdictions shown, identify the appropriate county,
Metropolitan Statistical Area (MSA)*, or Primary Metropolitan
Statistical Area (PMSA)* in which the displacement property is
located; and (4) locate the appropriate income limit in that
jurisdiction for the size of this displaced person/family. The
income limit must then be compared to the household income (Sec.
24.2(a)(15)) which is the gross annual income received by the
displaced family, excluding income from any dependent children and
full-time students under the age of 18. If the household income for
the eligible displaced person/family is less than or equal to the
income limit, the family is considered ``low income.'' For example:
Tom and Mary Smith and their three children are being displaced.
The information obtained from the family and verified by the Agency
is as follows:
Tom Smith, employed, earns $21,000/yr.
Mary Smith, receives disability payments of $6,000/yr.
Tom Smith Jr., 21, employed, earns $10,000/yr.
Mary Jane Smith, 17, student, has a paper route, earns $3,000/
yr. (Income is not included because she is a dependent child and a
full-time student under 18)
Sammie Smith, 10, full-time student, no income.
Total family income for 5 persons is: $21,000 + $6,000 + $10,000
= $37,000
The displacement residence is located in the State of Maryland,
Caroline County. The low income limit for a 5 person household is:
$47,450. (2004 Income Limits)
This household is considered ``low income.''
* A complete list of counties and towns included in the
identified MSAs and PMSAs can be found under the bulleted item
``Income Limit Area Definition'' posted on the FHWA's Web site at:
http://www.fhwa.dot.gov/realestate/ua/ualic.htm.
[[Page 637]]
Section 24.402(c) Downpayment assistance. The downpayment
assistance provisions in Sec. 24.402(c) limit such assistance to
the amount of the computed rental assistance payment for a tenant or
an eligible homeowner. It does, however, provide the latitude for
Agency discretion in offering downpayment assistance that exceeds
the computed rental assistance payment, up to the $5,250 statutory
maximum. This does not mean, however, that such Agency discretion
may be exercised in a selective or discriminatory fashion. The
displacing Agency should develop a policy that affords equal
treatment for displaced persons in like circumstances and this
policy should be applied uniformly throughout the Agency's programs
or projects.
For the purpose of this section, should the amount of the rental
assistance payment exceed the purchase price of the replacement
dwelling, the payment would be limited to the cost of the dwelling.
Section 24.404 Replacement Housing of Last Resort.
Section 24.404(b) Basic rights of persons to be displaced. This
paragraph affirms the right of a 180-day homeowner-occupant, who is
eligible for a replacement housing payment under Sec. 24.401, to a
reasonable opportunity to purchase a comparable replacement
dwelling. However, it should be read in conjunction with the
definition of ``owner of a dwelling'' at Sec. 24.2(a)(20). 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 replacement dwelling than the Agency would be required
to provide such persons if they owned fee simple title to the
displacement dwelling. If such 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 providing comparable replacement
housing. This Section emphasizes the use of cost effective means of
providing comparable replacement housing. The term ``reasonable
cost'' is used to highlight 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
special cases, which may involve variations from the usual methods
of obtaining comparability. However, 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, only a portion of which is being used as
living quarters by the occupants and no other large comparable
dwellings are available in the area.
Appendix B to Part 24--Statistical Report Form
This Appendix sets forth the statistical information collected
from Agencies in accordance with Sec. 24.9(c).
General
1. Report coverage. This report covers all relocation and real
property acquisition activities under a Federal or a federally-
assisted project or program subject to the provisions of the Uniform
Act. If the exact numbers are not easily available, an Agency may
provide what it believes to be a reasonable estimate.
2. Report period. Activities shall be reported on a Federal
fiscal year basis, i.e., October 1 through September 30.
3. Where and when to submit report. Submit a copy of this report
to the lead Agency as soon as possible after September 30, but NOT
LATER THAN NOVEMBER 15. Lead Agency address: Federal Highway
Administration, Office of Real Estate Services (HEPR), Room 3221,
400 7th Street SW., Washington, DC 20590.
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 of this section A, B and C to the nearest dollar.
6. Regulatory references. The references in Parts A, B, C and D
of this section indicate the subpart of the regulations pertaining
to the requested information.
Part A. Real property acquisition under The Uniform Act
Line 1. Report all parcels acquired during the report year where
title or possession was vested in the Agency during the reporting
period. The parcel count reported should relate to ownerships and
not to the number of parcels of different property interests (such
as fee, perpetual easement, temporary easement, etc.) that may have
been part of an acquisition from one owner. For example, an
acquisition from a property that includes a fee simple parcel, a
perpetual easement parcel, and a temporary easement parcel should be
reported as 1 parcel not 3 parcels. (Include parcels acquired
without Federal financial assistance, if there was or will be
Federal financial assistance in other phases of the project or
program.)
Line 2. Report the number of parcels reported on Line 1 that
were acquired by condemnation. Include those parcels where
compensation for the property was 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 Agency through
condemnation authority.
Line 3. Report the number of parcels in Line 1 acquired through
administrative settlement where the purchase price for the property
exceeded the amount offered as just compensation and efforts to
negotiate an agreement at that amount have failed.
Line 4. Report 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 Agency in
Line 1.
Part B. Residential Relocation Under the Uniform Act
Line 5. Report the number of households who were permanently
displaced during the fiscal year by project or program activities
and moved to their replacement dwelling. The term ``households''
includes all families and individuals. A family shall be reported as
``one'' household, not by the number of people in the family unit.
Line 6. Report the total amount paid for residential moving
expenses (actual expense and fixed payment).
Line 7. Report the total amount paid for residential replacement
housing payments including payments for replacement housing of last
resort provided pursuant to Sec. 24.404 of this part.
Line 8. Report the number of households in Line 5 who were
permanently displaced during the fiscal year by project or program
activities and moved to their replacement dwelling as part of last
resort housing assistance.
Line 9. Report the number of tenant households in Line 5 who
were permanently displaced during the fiscal year by project or
program activities, and who purchased and moved to their replacement
dwelling using a downpayment assistance payment under this part.
Line 10. Report the total sum costs of residential relocation
expenses and payments (excluding Agency administrative expenses) in
Lines 6 and 7.
Part C. Nonresidential Relocation Under the Uniform Act
Line 11. Report the number of businesses, nonprofit
organizations, and farms who were permanently displaced during the
fiscal year by project or program activities and moved to their
replacement location. This includes businesses, nonprofit
organizations, and farms, that upon displacement, discontinued
operations.
Line 12. Report the total amount paid for nonresidential moving
expenses (actual expense and fixed payment.)
Line 13. Report the total amount paid for nonresidential
reestablishment expenses.
Line 14. Report the total sum costs of nonresidential relocation
expenses and payments (excluding Agency administrative expenses) in
Lines 12 and 13.
Part D. Relocation Appeals
Line 15. Report the total number of relocation appeals filed
during the fiscal year by aggrieved persons (residential and
nonresidential).
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