[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: 24CFR582.335]

[Page 243-245]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
  CHAPTER V--OFFICE OF ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND 
        DEVELOPMENT, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 582_SHELTER PLUS CARE--Table of Contents
 
                     Subpart D_Program Requirements
 
Sec. 582.335  Displacement, relocation, and real property acquisition.

    (a) Minimizing displacement. Consistent with the other goals and 
objectives of this part, recipients must assure that they have taken all 
reasonable steps to minimize the displacement of persons (families, 
individuals, businesses, nonprofit organizations, and farms) as a result 
of supportive housing assisted under this part.
    (b) Relocation assistance for displaced persons. A displaced person 
(defined in paragraph (f) of this section) must be provided relocation 
assistance at the levels described in, and in accordance with, the 
requirements of the Uniform Relocation Assistance and Real Property 
Acquisition Policies Act of 1970 (URA) (42 U.S.C. 4601-4655) and 
implementing regulations at 49 CFR part 24.
    (c) Real property acquisition requirements. The acquisition of real 
property for supportive housing is subject to the URA and the 
requirements described in 49 CFR part 24, subpart B.
    (d) Responsibility of recipient. (1) The recipient must certify 
(i.e., provide assurance of compliance) that it will comply with the 
URA, the regulations at 49 CFR part 24, and the requirements of this 
section, and must ensure such compliance notwithstanding any third 
party's contractual obligation to the recipient to comply with these 
provisions.
    (2) The cost of required relocation assistance is an eligible 
project cost in the same manner and to the same extent as other project 
costs. Such costs also may be paid for with local public funds or funds 
available from other sources.
    (3) The recipient must maintain records in sufficient detail to 
demonstrate compliance with provisions of this section.
    (e) Appeals. A person who disagrees with the recipient's 
determination concerning whether the person qualifies as a ``displaced 
person,'' or the amount of

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relocation assistance for which the person is eligible, may file a 
written appeal of that determination with the recipient. A low-income 
person who is dissatisfied with the recipient's determination on his or 
her appeal may submit a written request for review of that determination 
to the HUD field office.
    (f) Definition of displaced person. (1) For purposes of this 
section, the term ``displaced person'' means a person (family, 
individual, business, nonprofit organization, or farm) that moves from 
real property, or moves personal property from real property permanently 
as a direct result of acquisition, rehabilitation, or demolition for 
supportive housing project assisted under this part. The term 
``displaced person'' includes, but may not be limited to:
    (i) A person that moves permanently from the real property after the 
property owner (or person in control of the site) issues a vacate notice 
or refuses to renew an expiring lease, if the move occurs on or after:
    (A) The date that the recipient submits to HUD an application for 
assistance that is later approved and funded, if the recipient has 
control of the project site; or
    (B) The date that the recipient obtains control of the project site, 
if such control is obtained after the submission of the application to 
HUD.
    (ii) Any person, including a person who moves before the date 
described in paragraph (f)(1)(i) of this section, if the recipient or 
HUD determines that the displacement resulted directly from acquisition, 
rehabilitation, or demolition for the assisted project.
    (iii) A tenant-occupant of a dwelling unit who moves permanently 
from the building/complex on or after the date of the ``initiation of 
negotiations'' (see paragraph (g) of this section) if the move occurs 
before the tenant has been provided written notice offering him or her 
the opportunity to lease and occupy a suitable, decent, safe and 
sanitary dwelling in the same building/complex, under reasonable terms 
and conditions, upon completion of the project. Such reasonable terms 
and conditions must include a monthly rent and estimated average monthly 
utility costs that do not exceed the greater of:
    (A) The tenant's monthly rent before the initiation of negotiations 
and estimated average utility costs, or
    (B) 30 percent of gross household income. If the initial rent is at 
or near the maximum, there must be a reasonable basis for concluding at 
the time the project is initiated that future rent increases will be 
modest.
    (iv) A tenant of a dwelling who is required to relocate temporarily, 
but does not return to the building/complex, if either:
    (A) A tenant is not offered payment for all reasonable out-of-pocket 
expenses incurred in connection with the temporary relocation, or
    (B) Other conditions of the temporary relocation are not reasonable.
    (v) A tenant of a dwelling who moves from the building/complex 
permanently after he or she has been required to move to another unit in 
the same building/complex, if either:
    (A) The tenant is not offered reimbursement for all reasonable out-
of-pocket expenses incurred in connection with the move; or
    (B) Other conditions of the move are not reasonable.
    (2) Notwithstanding the provisions of paragraph (f)(1) of this 
section, a person does not qualify as a ``displaced person'' (and is not 
eligible for relocation assistance under the URA or this section), if:
    (i) The person has been evicted for serious or repeated violation of 
the terms and conditions of the lease or occupancy agreement, violation 
of applicable Federal, State, or local or tribal law, or other good 
cause, and HUD determines that the eviction was not undertaken for the 
purpose of evading the obligation to provide relocation assistance;
    (ii) The person moved into the property after the submission of the 
application and, before signing a lease and commencing occupancy, was 
provided written notice of the project, its possible impact on the 
person (e.g., the person may be displaced, temporarily relocated, or 
suffer a rent increase) and the fact that the person would not qualify 
as a ``displaced person'' (or for any assistance provided under this 
section), if the project is approved;

[[Page 245]]

    (iii) The person is ineligible under 49 CFR 24.2(g)(2); or
    (iv) HUD determines that the person was not displaced as a direct 
result of acquisition, rehabilitation, or demolition for the project.
    (3) The recipient may request, at any time, HUD's determination of 
whether a displacement is or would be covered under this section.
    (g) Definition of initiation of negotiations. For purposes of 
determining the formula for computing the replacement housing assistance 
to be provided to a residential tenant displaced as a direct result of 
privately undertaken rehabilitation, demolition, or acquisition of the 
real property, the term ``initiation of negotiations'' means the 
execution of the agreement between the recipient and HUD, or selection 
of the project site, if later.