[Code of Federal Regulations]
[Title 49, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 49CFR24.404]

[Page 227-229]
 
                        TITLE 49--TRANSPORTATION
 
          Subtitle A--Office of the Secretary of Transportation
 
PART 24_UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION FOR 
FEDERAL AND FEDERALLY ASSISTED PROGRAMS--Table of Contents
 
                 Subpart E_Replacement Housing Payments
 
Sec.  24.404  Replacement housing of last resort.

    (a) Determination to provide replacement housing of last resort. 
Whenever a

[[Page 228]]

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; and
    (ii) The resources available to provide comparable replacement 
housing; and
    (iii) The individual circumstances of the displaced person; or
    (2) By a determination that:
    (i) There is little, if any, comparable replacement housing 
available to displaced persons within an entire program or project area; 
and, therefore, last resort housing assistance is necessary for the area 
as a whole; and
    (ii) A program or project cannot be advanced to completion 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. (Will project delay justify waiting 
for less expensive comparable replacement housing to become available?)
    (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 rental assistance subsidy 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 to the handicapped.
    (viii) The change in status of the displaced person with his or her 
concurrence from tenant to homeowner when it is more cost effective to 
do so, as in cases where a downpayment may be less expensive than a last 
resort rental assistance payment.
    (2) Under 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, of this part, Sec.  
24.404), 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 obsolesence. In no event, however, shall a displaced person 
be required to

[[Page 229]]

move into a dwelling that is not functionally equivalent in accordance 
with Sec.  24.2).
    (3) The agency shall provide assistance under this subpart to a 
displaced person who is not eligible to receive a replacement housing 
payment under 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 person's financial 
means, which is 30 percent of the person's gross monthly household 
income. Such assistance shall cover a period of 42 months.

[54 FR 8928, Mar. 2, 1989, as amended at 64 FR 7132, Feb. 12, 1999]