[Code of Federal Regulations]
[Title 49, Volume 1]
[Revised as of October 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 49CFR24.404]

[Page 252-253]
 
                        TITLE 49--TRANSPORTATION
 
          Subtitle A--Office of the Secretary of Transportation
 
PART 24_UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION FOR 
 
                 Subpart E_Replacement Housing Payments
 
Sec.  24.404  Replacement housing of last resort.

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

[[Page 253]]

    (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;
    (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;
    (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.
    (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 replacement housing payment 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 for persons with disabilities.
    (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, Sec.  24.404(c)), 
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 
obsolescence. In no event, however, shall a displaced person be required 
to move into a dwelling that is not functionally equivalent in 
accordance with Sec.  24.2(a)(6)(ii) of this part.
    (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 displaced person's 
financial means. (See Sec.  24.2(a)(6)(viii)(C).) Such assistance shall 
cover a period of 42 months.