[Code of Federal Regulations]
[Title 24, Volume 3]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR572.145]

[Page 181-182]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
  CHAPTER V--OFFICE OF ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND 
        DEVELOPMENT, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 572_HOPE FOR HOMEOWNERSHIP OF SINGLE FAMILY HOMES PROGRAM (HOPE 3)--Table of Contents
 
   Subpart B_Homeownership Program Requirements_Implementation Grants
 
Sec. 572.145  Displacement prohibited; protection of nonpurchasing residents.

    (a) Displacement prohibited. (1) No person may be displaced from his 
or her dwelling as a direct result of a homeownership program under this 
part. This does not preclude terminations of tenancy for violation of 
the terms of occupancy of the unit. Each resident of an eligible 
property on the date the application for an implementation grant was 
submitted to HUD and each resident at the time the property is selected 
must be given an opportunity to become a homeowner under this program if 
the resident qualifies as an eligible family and meets other program 
requirements. If the resident does not qualify or does not elect to 
move, the property is not eligible. The protections provided to 
residents under this section do not apply to the former owner of the 
property if the property is acquired from him or her as a result of a 
tax or mortgage foreclosure.

[[Page 182]]

    (2) In addition to any applicable sanctions under the grant 
agreement, a violation of paragraph (a)(1) of this section may trigger a 
requirement to provide relocation assistance in accordance with the 
Uniform Relocation Assistance and Real Property Acquisition Policies Act 
of 1970 and governmentwide implementing regulations at 49 CFR part 24.
    (b) Relocation assistance for residents who elect to move. The 
recipient must offer each nonpurchasing resident who elects to move 
relocation assistance in accordance with the approved homeownership 
program. The program must provide, at least, the following assistance:
    (1) Advisory services, including timely information, counseling 
(including the provision of information on a resident's rights under the 
Fair Housing Act), and referrals to suitable, affordable, decent, safe, 
and sanitary alternative housing;
    (2) Payment for actual, reasonable moving expenses; and
    (3) Financial assistance sufficient to permit relocation to 
suitable, affordable, decent, safe, and sanitary housing. This 
requirement is met if the family is provided the opportunity to relocate 
to suitable, decent, safe, and sanitary housing for which the monthly 
rent and estimated average utility costs do not exceed the greater of 30 
percent of the person's income or the person's monthly rent before 
relocation and the estimated average monthly utility costs. The 
homeownership program must specify the period for which replacement 
housing assistance will be provided to persons who do not receive 
assistance through a Section 8 rental certificate or voucher or other 
housing program subsidy.
    (c) Temporary relocation. The recipient must provide each resident 
of an eligible property, who is required to relocate temporarily to 
permit work to be carried out, with suitable, decent, safe, and sanitary 
housing for the temporary period and must reimburse the resident for all 
reasonable out-of-pocket expenses incurred in connection with the 
temporary relocation, including the costs of moving to and from the 
temporarily occupied housing and any increase in monthly costs of rent 
and utilities.
    (d) Notice of relocation assistance. As soon as feasible, each 
recipient must give each resident of an eligible property a written 
description of the applicable provisions of this section.