[Code of Federal Regulations]
[Title 24, Volume 1]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR42.350]

[Page 354]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
PART 42--DISPLACEMENT, RELOCATION ASSISTANCE, AND REAL PROPERTY ACQUISITION FOR HUD AND HUD-ASSISTED PROGRAMS--Table of Contents
 
 Subpart C--Requirements Under Section 104(d) of Housing and Community 
                         Development Act of 1974
 
Sec. 42.350  Relocation assistance for displaced persons.

    A displaced person may choose to receive either assistance under the 
URA and implementing regulations at 49 CFR part 24 or assistance under 
section 104(d) of the HCD Act of 1974, including:
    (a) Advisory services. Advisory services at the levels described in 
49 CFR part 24. A displaced person must be advised of his or her rights 
under the Fair Housing Act (42 U.S.C. 3601-19). If the comparable 
replacement dwelling to be provided to a minority person is located in 
an area of minority concentration, as defined in the recipient's 
consolidated plan, if applicable, the minority person must also be 
given, if possible, referrals to comparable and suitable decent, safe, 
and sanitary replacement dwellings not located in such areas.
    (b) Moving expenses. Payment for moving expenses at the levels 
described in 49 CFR part 24.
    (c) Security deposits and credit checks. The reasonable and 
necessary cost of any security deposit required to rent the replacement 
dwelling unit, and for credit checks required to rent or purchase the 
replacement dwelling unit.
    (d) Interim living costs. The recipient shall reimburse a person for 
actual reasonable out-of-pocket costs incurred in connection with a 
displacement, including moving expenses and increased housing costs, if:
    (1) The person must relocate temporarily because continued occupancy 
of the dwelling unit constitutes a substantial danger to the health or 
safety of the person or the public; or
    (2) The person is displaced from a ``lower-income dwelling unit,'' 
none of the comparable replacement dwelling units to which the person 
has been referred qualifies as a lower-income dwelling unit, and a 
suitable lower-income dwelling unit is scheduled to become available in 
accordance with Sec. 42.375.
    (e) Replacement housing assistance. Persons are eligible to receive 
one of the following two forms of replacement housing assistance:
    (1) Each person must be offered rental assistance equal to 60 times 
the amount necessary to reduce the monthly rent and estimated average 
monthly cost of utilities for a replacement dwelling (comparable 
replacement dwelling or decent, safe, and sanitary replacement dwelling 
to which the person relocates, whichever costs less) to the ``Total 
Tenant Payment,'' as determined under part 813 of this title. All or a 
portion of this assistance may be offered through a certificate or 
voucher for rental assistance (if available) provided under Section 8. 
If a Section 8 certificate or voucher is provided to a person, the 
recipient must provide referrals to comparable replacement dwelling 
units where the owner is willing to participate in the Section 8 Tenant-
Based Assistance Existing Housing Program (see part 982 of this title). 
When provided, cash assistance will generally be in installments, in 
accordance with 42 U.S.C. 3537c; or
    (2) If the person purchases an interest in a housing cooperative or 
mutual housing association and occupies a decent, safe, and sanitary 
dwelling in the cooperative or association, the person may elect to 
receive a payment equal to the capitalized value of 60 times the amount 
that is obtained by subtracting the ``Total Tenant Payment,'' as 
determined under part 813 of this title, from the monthly rent and 
estimated average monthly cost of utilities at a comparable replacement 
dwelling unit. To compute the capitalized value, the installments shall 
be discounted at the rate of interest paid on passbook savings deposits 
by a federally insured financial institution conducting business within 
the recipient's jurisdiction. To the extent necessary to minimize 
hardship to the household, the recipient shall, subject to appropriate 
safeguards, issue a payment in advance of the purchase of the interest 
in the housing cooperative or mutual housing association.