[Code of Federal Regulations]

[Title 49, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 49CFR24.401]



[Page 247-249]

 

                        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. 24.401  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



[[Page 248]]



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 fair market value for residential use of the 

replacement 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



[[Page 249]]



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.



[70 FR 611, Jan. 4, 2005, as amended at 70 FR 22611, May 2, 2005]