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proceeds, or the cost of moving, whichever is less.

(c) When personal property is abandoned, the displaced person is entitled to payment for the difference between the in-place value and the amount which would have been received from the sale of the item, or the cost of moving, whichever is less.

§ 15.19 Exclusions on moving expenses and losses.

(a) Additional expenses incurred because of living in a new location.

(b) Cost of moving structures, improvements or other real property in which the displaced person reserved ownership.

(c) Improvements to the replacement site, except when required by law.

(d) Interest on loans to cover moving expenses.

(e) Loss of goodwill.

(f) Loss of profits.

(g) Loss of trained employees.

(h) Personal injury.

(i) Cost of preparing the application for moving and related expenses.

(j) Modification of personal property to adapt it to the replacement site, except when required by law.

(k) Such other items as the Secretary determines should be excluded.

§ 15.20 Expenses in searching for replacement business or farm.

(a) To be allowed. (1) Travel costs. (2) Extra costs for meals and lodging. (3) Cost of searching, at the rate of the displaced person's salary or earnings but not in excess of $10 per hour.

(4) Brokerage or realtor fees to locate a replacement business or farm operation under approved circumstances.

(b) Limitation. The total amount which a displaced person may be paid for searching expenses shall not exceed $500, unless the displacing agency determines that a greater amount is justified on the basis of the circumstances involved.

§ 15.21 Payments in lieu of moving and related expenses.

(a) Dwellings-schedules. The Act provides that agencies may pay a moving expense allowance based on established schedules. Such schedules shall be based on moving allowance schedules maintained by the individual State highway departments or such other schedules as the Secretary may recognize, shall be

current and shall provide for adequacy of reimbursement in every locality.

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(b) Business—(1) Eligibility. Το eligible for payment, the business being considered must contribute materially to the income of the displaced owner. This standard eliminates those part-time family occupations which do not contribute materially to a displaced person's income.

(2) Loss of existing patronage. A fixed payment may be made to a business if the Secretary determines (i) that the business cannot be relocated without a substantial loss of existing patronage and (ii) that the business is not part of a commercial enterprise having another establishment which is engaged in a similar business but which is not being acquired. The determination of loss of existing patronage will be made by the displacing agency only after consideration of all pertinent circumstances, including the following factors:

(a) The type of business conducted by the displaced concern.

(b) The nature of the clientele of the displaced concern.

(c) The relative importance of the present and proposed location to the displaced business.

(c) Farms-partial taking. In the case in which an entire farm operation is not displaced, the payment will be made only if the Secretary determines that the farm met the definition of a farm operation prior to the displacement and that the remaining property is no longer economically operable.

§ 15.22

Replacement housing payments for home owners.

(a) A displaced owner-occupant is eligible for a replacement housing payment if he meets the following requirements:

(1) Actually ownership and occupancy of the acquired dwelling for not less than 180 days prior to the initiation of negotiations for the property.

(2) Relocation and occupancy in a decent, safe, and sanitary dwelling occurs within a 1-year period from the date on which he was required to move.

(3) The displacing agency, which will also process the relocation, inspects the replacement dwelling and determines that it meets the standards for decent, safe, and sanitary housing.

(b) A displaced owner-occupant who is determined to be ineligible under this

section may be eligible for a replacement housing payment under § 15.35.

§ 15.23 Comparable replacement dwelling.

A comparable replacement dwelling is one which is:

(a) Decent, safe, and sanitary.

(b) Functionally equivalent and substantially the same as the acquired dwelling with respect to:

(1) Number of rooms.
(2) Area of living space.
(3) Age.

(4) State of repair.

(c) Open to all person regardless of race, color, religion, sex, or national origin and consistent with the requirements of title VIII of the Civil Rights Act of 1968.

(d) In areas not generally less desirable than the dwelling to be acquired in regard to:

(1) Public utilities.

(2) Public and commercial facilities. (e) Reasonably accessible to the relocatee's place of employment.

(f) Available on the market to the displaced person.

(g) Within the financial means, considering subsidy payments, of the displaced family or individual.

§ 15.24 Computation of replacement housing payment.

(a) Differential payment for replacement housing. The Secretary will determine the amount necessary to purchase a comparable replacement dwelling by either establishing a schedule or by using a comparative method.

(1) Schedule method. The Secretary will establish the reasonable acquisition cost for comparable replacement dwellings in the various types of dwellings to be acquired and available determined on a current analysis of the market for each type of dwelling to be acquired. When more than one Federal agency is causing the displacement in a community or an area, the Secretary will cooperate with the heads of the other agencies on the method of computing the replacement housing payment and will apply uniform scheduled of sale housing in the community or areas.

(2) Comparative method. The Secretary may determine the price of a comparable replacement dwelling by selecting a dwelling or dwellings most representative of the dwelling unit acquired, available to the displaced person, and

meeting the definition of comparable replacement dwelling. Asking prices are to be adjusted to reflect the market sale experience. A single dwelling will be used only when additional comparable dwellings are not available.

(3) Alternate to subparagraphs (1) and (2) of this paragraph. When neither method is feasible the Secretary will compute the amount of the payment.

(4) Limitations. The amount established as the differential payment for the replacement housing sets the upper limit of this payment. To qualify for the full amount the displaced person must purchase and occupy a decent, safe, and sanitary dwelling equal to or higher in price than the acquisition price of the acquired dwelling.

(i) If the displaced person voluntarily purchases and occupies a decent, safe, and sanitary dwelling at a price less than that established under subparagraph (2) of this subparagraph, the comparable replacement housing payment will be reduced to that amount required to pay the difference between the acquisition price of the acquired dwelling and the actual purchase price of the replacement dwelling.

(ii) If the displaced person voluntarily purchases and occupies a decent, safe, and sanitary dwelling at a price less than the acquisition price of the acquired dwelling, no differential payment shall be made.

(b) Interest payment. The interest payment will be based on the current cost of the interest differential including points paid by the purchaser on the amount refinanced but not exceeding the amount of the unpaid debt for its remaining term at the time of acquisition of the real property.

(c) Incidental expenses. (1) Reimbursable incidental expenses are the amounts necessary to reimburse the homeowner for actual costs incurred by him incident to the purchase of the replacement dwelling such as:

(i) Legal, closing, and related costs including title search, preparing conveyance contracts, notary fees, surveys, preparing drawings of plats, and charges incident to recordation.

(ii) Lenders', FHA or VA, appraisal fees.

(iii) FHA application fee.

(iv) Certification of structural soundness when required by lender, FHA or VA (v) Credit report.

(vi) Title policies or abstracts of title.

(vii) Escrow agent's fee.

(viii) State revenue stamps or sale or transfer taxes.

(2) No fee, cost, charge, or expense is reimbursable which is determined under the Truth in Lending Act, title I of Public Law 90-231 and Regulation "Z" issued pursuant thereto by the Board of Governors of the Federal Reserve System (12 CFR Part 226), to be a part of the finance charge.

§ 15.25 Replacement housing payment for tenants and certain others.

(a) A displaced tenant or owner-occupancy of less than 180 days is eligible for a replacement housing payment if he meets both of the following requirements:

(1) Actually occupied the dwelling for not less than 90 days prior to the initiation of negotiations for the property. Tenants and other persons occupying the property will be advised when negotiations for the property are initiated with the owner thereof.

(2) Rented and occupied a decent, safe, and sanitary dwelling within the 1-year period from the date on which he was required to move.

(b) An owner-occupant otherwise eligible for a payment under § 15.22 who rents instead of purchasing a replacement dwelling is eligible for replacement housing as a tenant.

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A displaced tenant is eligible for a rental replacement housing payment; or, if he purchases replacement housing, he is eligible for a downpayment including closing costs.

(a) Rental replacement housing payment. The Secretary will determine the amount necessary to rent a comparable replacement dwelling by either establishing a schedule or by using a comparative method.

(1) Schedule method. The Secretary will establish a rental schedule for renting comparable replacement dwellings as described in § 15.24 in the various types of dwellings to be acquired and available on the private market. The payment should be computed by determining the amount necessary to rent a comparable replacement dwelling for 4 years (the average monthly cost from the schedule) and subtracting from such amount 48 times the average month's rent paid by the displaced tenant in the

last 3 months prior to initiation of negotiation if such rent was reasonable. The schedule will be based on a current analysis of the market for each type of dwelling required. When more than one Federal agency is causing the displacement in a community or an area, the Secretary will cooperate on the method for computing the replacement housing payment and will use uniform schedules of average rental housing in the community or area.

(2) Comparative method. The Secretary will determine the average month's rent by selecting one or more dwellings most representative of the dwelling unit acquired, which is available to the displaced person and meets the definition of a comparable replacement dwelling as described in § 15.24. The payment will be computed by determining the amount necessary to rent a comparable replacement dwelling for 4 years and subtracting from such amount 48 times the average month's rent prior to initiation of negotiations, if such rent was reasonable.

(3) Exceptions. The Secretary may establish the average month's rent by using more than 3 months, if he deems it advisable. If rent is being paid to the displacing agency, economic rent shall be used in determining the amount of the payment to which the displaced tenant is entitled.

(4) Alternate to subparagraphs (1) and (2) of this paragraph. When neither method is feasible, the Secretary will apply appropriate and reasonable criteria for computing the payment.

(5) Disbursement of rental replacement housing. All rental replacement housing payments in excess of $500 will be made in four equal annual installments. Before making each installment payment, the displacing agency must verify that the tenant is in decent, safe, and sanitary housing.

(b) Purchases—replacement housing payment. If the tenant elects to purchase instead of renting, the payment I will be computed by determining the amount necessary to enable him to make a downpayment and to cover incidental expenses on the purchase of replacement housing.

(1) The downpayment shall be the amount necessary to make a downpaydwelling. Determination of the amount necessary for such a downpayment will be based on the amount of downpayment that would be required for a conventional loan.

(2) Incidental expenses of closing the transaction are those as described in § 15.24 (c).

(3) The full amount of the downpayment must be applied to the purchase price and such a downpayment and inciment on comparable replacement dental costs shown on the closing statement.

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(c) Other payment. If the displaced person cannot be paid or payment computed under paragraph (b) of this section, payment should be computed as provided under § 15.27.

§ 15.27 Computation of replacement housing payments for certain others. (a) A displaced owner-occupant who is not eligible under § 15.22 because he elects not to purchase a replacement dwelling but who wishes to rent may receive a rental replacement housing payment not in excess of $4,000. The payment will be computed in the manner prescribed in § 15.26 (a) with the following additional criteria:

(1) The present rental rate for the acquired dwelling will be economic rent as determined on the basis of market data, and

(2) The payment may not exceed the amount which he would have received had he elected to receive a replacement housing payment under § 15.22.

(b) A displaced owner-occupant who does not qualify for a replacement housing payment under § 15.22 because of the 180-day Occupancy requirement and elects to rent is eligible for a rental replacement housing payment nct in excess of $4,000. The payment will be computed in the same manner as shown in § 15.26 except that the present rental rate for the acquired dwelling will be economic rent as determined on the basis of market data.

(c) A displaced owner-occupant who does not qualify for a replacement housing payment under § 15.22 because of the 180-day occupancy requirement and elects to purchase a replacement dwelling is eligible for a replacement housing down payment and closing costs not in excess of $4,000. The payment will be computed in the same manner as shown in § 15.26(b).

§ 15.28 Relocation assistance advisory

services.

The Secretary through contracting with other Federal agencies or State or local agencies shall provide a relocation assistance advisory program that will:

(a) Determine the needs of displaced persons and business concerns for relocation assistance.

(b) Provide current, complete, and continuing information on the availability of suitable relocation resources, both residential and commercial.

(c) Assure that suitable replacement housing units will be available, prior to displacement, to persons displaced

(§ 15.23).

(d) Assist displaced business concerns in obtaining and becoming established in a suitable replacement location.

(e) Supply information to those displaced concerning Federal and State housing programs, disaster loan programs, and other Federal and State programs offering assistance to displaced persons and business concerns.

(f) Provide other advisory services to displaced persons and business concerns in order to minimize hardships. Additionally, relocation assistance advisory services are also to be provided to persons and business concerns occupying property adjacent to the area where project or program activities are being carried out, when it is determined that they have suffered substantial economic injury as result of such activities. When more than one Federal agency is involved in the displacement, the Secretary may contract for such services with the agency that will provide the maximum coordination.

Subpart D-Federally Assisted
Programs

§ 15.33

Assurances from State agencies. (a) The Secretary will, through the cognizant DHEW agency, obtain from State agencies applying for grants with respect to programs or projects which will result in the displacement of any owner or tenant of real property, the following assurances:

(1) That fair and reasonable relocation payments and assistance will be provided to or for displaced persons as provided for in Subpart C of this Part;

(2) That relocation assistance programs offering the advisory services described in § 15.28 will be provided to such displaced persons; and

(3) That, as provided for in Subpart B of this Part, within a reasonable period of time prior to displacement, decent, safe, and sanitary housing will be available to such displaced persons.

(b) The Secretary will, through the cognizant DHEW agency, obtain from each State agency applying for a grant with respect to a program or project which will result in the acquisition of real property an assurance that the agency acquiring real property will be guided, to the greatest extent practicable under State law, by the policies prescribed in Subpart E of this Part and will pay the owner of real property his necessary expenses in connection with the transfer of title or litigation expenses in the event the property is not finally acquired.

(c) The State agency assurances will be accompanied by a statement in which it specifies any provision of the assurances required by paragraph (a) and (b) which it is unable to provide, in whole or in part, under its laws or as to which its laws require payments which it believes have substantially the same purpose and effect as the relocation payments and assistance provided for herein. In the event that a State agency maintains that it is legally unable to provide all or any part of the required assurances, its statement shall be supported by an opinion of the chief legal officer of the State, or other appropriate legal officer. The opinion shall contain a full discussion of the conclusion of legal inability to provide any part of the required assurances.

(d) The State agency assurances shall also state the extent, if any, to which it is unable to pay all or part of the expenses referred to in paragraph (b) of this section. In the event the State agency maintains that it is legally unable to pay such expenses, its statement shall be sup!ported by an opinion of the chief legal officer of the State, or other appropriate legal officer. The opinion shall contain a full discussion of the conclusion of legal inability to do so.

$15.34 Grantees' additional responsibilities.

(a) Cognizant DHEW agencies will require of public grantees that affected ndividuals be notified in person or by frst class mail of the fact that they will ibe displaced.

(b) Reimbursement or participation by DHEW in the State agencies' costs will be limited to those payments which are made to persons who have received notice to vacate or whose residence or property has in fact been acquired.

(c) If the displacing State agency elects to contract with any Federal,

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State, local, or private agency to administer relocation payments and assistance on the displacing agency's behalf, a copy of the contract must be made a part of the grant or loan document. Such contracts must contain, in addition to the performance requirements and other terms, the following provisions, and must be otherwise consistent with these regulations.

(1) That payments or services will be provided in accordance with DHEW regulations.

(2) That records required by DHEW regulations will be retained for a period of at least 3 years and shall be available for inspection by representatives of the Federal Government.

(3) That there will be compliance with the clauses prescribed by DHEW regulations (Part 80 of this subtitle) implementing Title VI of the Civil Rights Act of 1964 (Public Law 88-352). § 15.35 Records and reports.

The displacing agency shall maintain and submit such reports and records as may be prescribed by the Secretary. § 15.36 Appeals.

The non-Federal displacing agency shall establish procedures consistent with State and local law for the review of appeals under this procedure. § 15.37

Effect on project funding.

(a) DHEW program officials will immediately notify public agencies who may be preparing project applications that relocation payments and services will be an eligible project expense. Applications must contain an estimate of the total cost of relocation assistance and a description of the method by which the cost estimate was derived.

(b) Section 211(c) of the Act requires that any existing grant or other financial assistance agreement be amended to reflect the cost of providing payments or services to persons who were or will be displaced after January 2, 1971. All existing assisted projects or programs (regardless of the stage of completion) which are presumed to involve the acquisition of real property will be reviewed to ascertain whether any persons were or will be displaced after January 2, 1971. If so, project budgets will be revised to incorporate the estimated costs of relocation payments and services.

(c) If Federal funds have already been obligated, the obligation will be increased (within the limits of available funds) to

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