least every 2 years in accordance with generally accepted auditing standards by an appropriate State authority or by independent certified public accountants or independent licensed public accountants, certified or licensed by a regulatory authority of a State or other subdivision of the United States. Guidelines furnished by the Department shall be followed in conducting the audit. [33 F.R. 17787, Nov. 28, 1968]

§ 14.9 Handling of property.

(a) All acquisition, warehousing, and distribution functions shall be a direct part of the State Agency's operation and shall be under the direction and control of a single executive officer.

(b) All distribution of donable property to eligible civil defense organizations will be made only in accordance with pertinent regulations of the Office of Civil Defense.

(c) Donable surplus property shall be compared with the respective Standard Form 123 and pertinent shipping documents immediately upon receipt, and any shortage or overage shall be reported to the agency from which the property was obtained and a copy of the report shall be transmitted to the appropriate regional office of the Department, in accordance with procedures set forth in the Surplus Property Utilization Manual issued by the Department.

(d) State Agencies shall maintain adequate provision for protecting property in their custody, including reasonable protection against the hazards of fire, theft, vandalism, and weather.

(e) State Agencies shall, at least annually, report to the appropriate Regional Representative all surplus property which has been in their custody longer than 12 months. Such reports shall be made within 60 days following periodic verification of property on hand as required by the Plan of Operation.

§ 14.10 Eligibility.

Findings by State Agencies as to the eligibility of applicants to acquire donable property in accordance with the requirements of section 203 (j) of the Act and regulations issued thereunder shall be based upon applications by the governing bodies of the applicant institutions stating the nature and purpose of the institutions and shall be recorded and such record preserved in accordance

with the provisions of § 14.6(d). However, the foregoing requirement does not apply to tax-supported, approved, and/or accredited public schools, colleges, universities, and school systems which were participating in the donable property program prior to January 1, 1968. [33 F.R. 5875, Apr. 17, 1968]

§ 14.11 Utilization and compliance responsibility.

(a) Each State Agency shall assist the Department in effecting utilization and compliance by health and educational donees with the terms and conditions established for any single item of donated property having an acquisition cost of $2,500 or more, and shall make an on-site investigation of the use of such item as least once during the period of Federal restrictions. The SASP shall fully document its investigations and make its report of investigation available for review by any authorized Federal official.

(b) State Agencies shall take reasonable measures to assure that single items of personal property with an acquisition cost of less than $2,500 that are donated under the provisions of the Act for health or educational purposes are actually used for such purposes.

(c) Where information received by a State Agency indicates fraud or misuse of surplus property donated for health, educational or civil defense purposes, the circumstances pertaining thereto shall be reported immediately to the Department. Upon request by the appropriate Regional Representative, State Agencies shall make appropriate investigations of alleged fraud or misuse of surplus personal property donated for health and educational purposes.

(d) State Agencies shall report immediately to the appropriate law enforcement authorities and to the respective Regional Representative any theft, fraud or indication of fraud in connection with any donable property in its custody and shall investigate and/or settle any such case only with the concurrence of the Regional Representative. § 14.12

Assistance to the Department.

Each State Agency shall cooperate with the Department by releasing property from its custody upon request, and will assist the Department in obtaining voluntary release by donee institutions of property needed for defense or emergency use.

If the Department determines that a State Agency is not operating in accordance with its approved Plan of Operation or these Minimum Standards, allocation of property to the State Agency may be suspended until the nonconformance is corrected to the satisfaction of the Department.

§ 14.14 Amendments.

The Department reserves the right at any time to modify or amend these Minimum Standards. Upon issuance of amendments hereto requiring State Agencies to modify their operations, reasonable opportunity will be afforded the State Agencies to conform their operations to such amended standards. § 14.15 Temporary suspension.

Compliance with the requirements imposed by the first sentence in each of §§ 14.6(c) and 14.11(a), is temporarily suspended until notice of their effective dates shall hereafter be published. State Plans of Operation shall, nevertheless, contain appropriate provision to meet such suspended requirements.

[32 F.R. 16100, Nov. 23, 1967]

The Act establishes a uniform policy for the fair and equitable treatment of persons who are displaced, or have their real property taken for Federal or federally assisted programs. The need for these policies arises from the increasing impact of such programs as they evolved to meet the needs of a growing and increasingly urban population. The Act provides a program of relocation payments, advisory assistance, assurance that prior to displacement there will be available for displaced persons comparable, decent, safe, and sanitary replacement housing, economic adjustments, and other assistance to owners and tenants displaced from their homes, farms, and places of business. A uniform policy is established on the real property ac

136 F.R. 22368, Nov. 25, 1971.

Payments prescribed in this procedure shall be provided to all persons eligible on and after January 2, 1971, but, prior to July 2, 1972, in the case of a State agency, only to the extent that the State agency can comply under State laws. The procedures in this part, exclusive of payments, are effective immediately, except insofar as a State agency is unable to comply fully with all provision hereof. These procedures will become fully effective in such a State as soon as it can comply with all provisions of the Act, but in every case after July 1, 1972. § 15.4

Definitions.

(a) State means any of the several States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, the Trust Territory of the Pacific Islands, and any political subdivision thereof.

(b) State agency means the National Capital Housing Authority, the District of Columbia Redevelopment Land Agency, or any department, agency, or instrumentality of a State or of a political subdivision of a State, or any department, agency, or instrumentality of two or more States or of two or more political subdivisions of a State or States.

(c) Federal financial assistance means a grant, loan, or contribution provided by the United States, except any annual payment or capital loan to the District of Columbia and any Federal guarantee or insurance.

(d) Person means any individual, partnership, corporation, or association.

(e) Displaced person means any person who, on or after January 2, 1971, moves from real property, or moves his personal property from real property, as a result of the acquisition of such real property, in whole or in part, or as the resuit of the written order of the acquiring agency to vacate real property, for a program or project undertaken by a Federal agency, or with Federal financial assistance; or, solely for the purposes of sections 202 (a) and (b) and 205 of the Act, as a result of the acquisition of or as a result of the written order of the acquiring agency to vacate other real property on which such person conducts a business or farm operation, for such a program or project. If a person moves on or after January 2, 1971, as the result

of such a notice to vacate, it makes no difference whether the real property is acquired before or after that date or even is actually acquired, if Federal funds are used for or contribute to the cost of the program or project.

(f) Business means any lawful activity, excepting a farm operation, conducted primarily: (1) For the purchase, sale, lease, or rental of personal and real property, or for the manufacture, processing, or marketing of products, commodities, or any other personal property; (2) for the sale of services to the public; (3) by a nonprofit organization; or (4) solely for the purposes of section 202(a) of the Act, for assisting in the purchase, sale, resale, manufacture, processing, or marketing of products, commodities, personal property, or services by the erection and maintenance of an outdoor advertising display or displays, whether or not such display or displays are located on the premises on which any of such activities are conducted.

(g) Farm operation means any activity conducted solely or primarily for the production of one or more agricultural products or commodities, including timber, for sale or home use, which customarily produce such products or commodities in sufficient quantities as to be capable of contributing materially to the operator's support.

(h) Mortgage means such classes of liens as are commonly given to secure advances on, or the unpaid purchase price of, real property, under the laws of the State in which the real property is located, together with the credit instruments, if any, secured thereby.

(i) Initiation of negotiation means the date the acquiring agency makes the first personal contact with the owner or his representative at which the price for the real property to be acquired is discussed.

(j) Displacing agency means the Federal, State, or local agency that acquires the real property or gives a written notice to a person to vacate the real property.

(k) Secretary, as used in the regulations of this part, means the Secretary of Health, Education, and Welfare. § 15.5 Applicability.

Title II of the Act, relating to relocation payments and assistance, applies to all projects of the Department of Health, Education, and Welfare involving the displacement on or after January 2, 1971 of an owner or tenant of real property.

The policies enunciated in Title II of the Act also apply to any program or project of a State agency (as that term is defined in § 15.4) for which financial assistance is otherwise made available from the Department of Health, Education, and Welfare to pay all or a part of its cost and which will result, or has resulted on or after January 2, 1971, in the displacement of an owner or tenant of real property. Title III of the Act, relating to real property acquisition policies, applies to real property acquisitions by the Department of Health, Education, and Welfare. Those policies also apply to any program or project of a State agency (as that term is defined in § 15.4) for which financial assistance is made available from the Department of Health, Education, and Welfare to pay all or part of its cost and which will result, or has resulted on or after January 2, 1971, in the acquisition of real property by that agency. § 15.6

Categorical exceptions.

The mandatory requirements of the Act do not apply to programs or projects of private entities.

Subpart B-Assurance of Adequate Replacement Housing Prior to Displacement

(a) DHEW agencies may not proceed with the phase of any project, or authorize a State agency to proceed with the phase of any project, which will cause the displacement of any person until it has determined, or received satisfactory assurance from the displacing agency, that within a reasonable period of time prior to displacement, there will be available on a basis consistent with the requirements of title VIII of the Civil Rights Act of 1968 (Public Law 90-284), in areas not generally less desirable in regard to public utilities and public and commercial facilities and at rents or prices within the financial means (including supplements provided by law) of the families and individuals displaced, decent, safe, and sanitary dwellings, as described in paragraph (d) of this section, for, and available to, the number of such displaced persons who require such dwellings and reasonably accessible to their places of employment.

(b) This determination or assurance shall be based on a current survey and analysis of available replacement hous

ing by the displacing agency. Such survey and analysis must take into account the competing demands on available housing.

(c) In certain extraordinary situations where immediate possession of real property is of crucial importance, the Secretary may waive the requirements of paragraph (a) of this section. Requests for such a waiver must be substantially documented and supported by sufficient documentation to show the necessity for such a waiver.

(d) A decent, safe, and sanitary dwelling is one which is found to be in sound, clean and weathertight condition, and which meets local housing codes. The Secretary will consider the following criteria in determining whether a dwelling unit is decent, safe, and sanitary. Adjustments may only be made in the cases of unusual or unique geographical areas or circumstances:

(1) A housekeeping unit must include a kitchen with fully usable sink; a stove, or connections for same; a separate complete bathroom; hot and cold running water in both the bath and the kitchen; an adequate and safe wiring system for lighting and other electrical services; and heating as required by climatic conditions and local codes.

(2) A nonhousekeeping unit is one which meets local code standards for boarding houses, hotels, or other congregate living. If local codes do not include requirements relating to space and sanitary facilities, standards will be subject to the approval of the Secretary.

(3) Occupancy standards for replacement housing must comply with local codes or, in the absence of local codes, the requirements of the Secretary.

(4) A dwelling unit meeting the physical and occupancy standards stated above will be considered as suitable replacement housing only when it is reasonably convenient to such community facilities as schools, stores, and public transportation.

(e) Where local housing codes do not exist or do not contain certain minimum standards, the Secretary will prescribe the standards.

§ 15.11 Housing provided as a last resort.

The Secretary will provide replacement housing for Federal projects when it is determined that the required housing cannot otherwise be made available. Criteria, guidelines, and procedures to implement this section will be issued by

the Secretary of Housing and Urban Development.

§ 15.12 Loans for planning and preliminary expenses.

The Act provides for seed money loans for planning and obtaining federally insured mortgage financing to stimulate the construction and rehabilitation of sale and rental housing to meet the needs of displaced families and individuals. Loans may be made to nonprofit, limiteddividend, or cooperative organizations, and to public bodies, for not more than 80 percent of the reasonable expenses, prior to construction, for such activities as preliminary surveys and analyses of market needs, preliminary site engineering and architectural fees, site title searches and appraisals, application and mortgage commitment fees and charges, legal fees, and construction loan fees and discounts. Criteria, guidelines and procedures for this section will be issued by the Secretary of Housing and Urban Development.

Subpart C-Moving and Related
Expenses

§ 15.17 Actual reasonable expenses in moving.

(a) To be allowed. (1) Transportation of individuals, families, and personal property, including storage, to the replacement site, not to exceed a distance of 5 miles, except when the Secretary determines that relocation beyond the 50-mile area is justified.

(2) Packing and crating of personal property.

(3) Advertising for packing, crating, and transportation when the Secretary determines that such advertising is desirable.

(4) Storage of personal property for a period generally not to exceed 6 months when the Secretary determines that storage is necessary in connection with relocation.

(5) Insurance premiums covering loss and damage of personal property while in storage or transit.

(6) Removal, reinstallation, and reestablishment of machinery, equipment, appliances, and other items not acquired as real property, including reconnection of utilities, which do not constitute an improvement (except when required by law) to the replacement site, and which were not acquired by the Department. Prior to payment of any expenses for

removal and reinstallation of such property, the displaced person will be required to agree in writing that the property is personal and that the Secretary is released from any payment for the property.

(7) Personal property lost, stolen, or damaged (not caused by the fault or negligence of the displaced person, his agent or employees) in the process of moving, when insurance to cover such loss or damage is not available. (8) Such other expenses as are determined by the Secretary to be reasonable.

(b) Limitations. (1) When the displaced person accomplishes the move himself, the amount paid for the move shall not exceed the estimated cost of moving commercially.

(2) When an item of personal property which is used in connection with any business or farm operation is not moved but sold and promptly replaced with a comparable item, reimbursement will not exceed the replacement cost minus the proceeds received from the sale, or the cost of moving, whichever is less.

(3) When personal property used in connection with any business or farm operation to be moved is of low value and high bulk, and when the cost of moving would be disproportionate in relation to the value, in the judgment of the Secretary, the allowable reimbursement for the expense of moving the personal property will not exceed the difference between the amount which would have been received for such item on liquidation and the cost of replacing it with a comparable item available on the market. This provision will be applicable in the case of moving of junk yards, stockpiled sand, gravel, minerals, metals and similar type items of personal property.

§ 15.18 Actual direct losses by business or farm operation.

When the displaced person does not move personal property, he will be required to make a bona fide effort to sell it.

(a) When personal property is sold and the business or farm operation reestablished, the displaced person is entitled to payment provided for in § 15.17(b) (2).

(b) When a business or farm operation is discontinued, the displaced person is entitled to the difference between the in-place value of personal property used in connection therewith and the sale