contracting State agency complies with the relocation requirements set forth in title II.

Section 111 defines the term "owner" and "person" to mean any individual, and any partnership, corporation, or association, whether organized for profit or not for profit; or any Indian tribe, band, or

group.

Finally, section 112 defines "real property" as used in the amended bill as including land, and any interest in land, including but not limited to easements, rights-of-way, water rights, and mineral interests.

TITLE II-UNIFORM RELOCATION ASSISTANCE

Declaration of policy

Section 201 states that it is the purpose of this title to establish a uniform policy for the fair and equitable treatment of owners, tenants, and other persons displaced by the acquisition of real property in Federal or federally assisted programs to the end that such persons shall not suffer disproportionate injuries as a result of programs designed for the benefit of the public as a whole. It provides that such a policy shall be uniform as practicable as to relocation payments, advisory assistance, assurance of availability of standard housing, and Federal reimbursement for relocation payments under federally assisted programs.

Relocation payments

Part A-Federal programs

Section 211(a) provides that heads of Federal agencies are required to make fair and reasonable relocation payments to displaced persons in accordance with regulations established by the President under section 241 of the act. This is the authority for the basic method of reimbursement for those who wish to follow the traditional administrative route.

Section 211(b) provides an alternative method of reimbursement, intended primarily to assist lower income displacees. It would make payments to him in prescribed amounts without having to go through the more complicated process of administrative analysis and determination. A displaced person moving from a dwelling would receive (1) a moving expense allowance not to exceed $200; and (2) a dislocation allowance of $100.

Section 211 (c) begins a series of payments to be made to displacees in addition to those included in section 211 (a) and (b), to facilitate the economic readjustment of individuals, businesses, and farms affected by relocation.

Section 211 (c) provides for an additional payment to a displaced person who moves or discontinues his business, provided the average annual net earnings of the business are less than $10,000 a year. The prescribed payment is an amount equal to the average annual net earnings of the business, except that such payment shall not be less than $2,500 nor more than $5,000. In the case of a displaced person who is 60 years of age or older, the payment shall be in an amount equal to three times the average annual net earnings of the business or $6,000, whichever is less. The additional payments authorized by this subsection may be made only when it is found that the business cannot be relocated without a substantial loss of its existing patronage and

that the business is not a part of a commercial enterprise having at least one other establishment, not being acquired, which is engaged in the same or a similar business.

For purposes of this subsection, the term "average annual net earnings" means one-half of any net earnings of the business, before Federal, State, and local income taxes, during the 2 taxable years immediately preceding the taxable year in which such business moves from the real property acquired, and includes any compensation paid by the business to the owner, his spouse, or his dependents during such 2-year period.

Section 211(d) provides for an additional payment to any displaced person who moves or discontinues a farm operation, provided his average annual net earnings of the operation are less than $10,000 per year. This payment shall be in an amount equal to the average annual net earnings of the farm operation, except that such payment shall not be less than $2,500 nor more than $5,000. In the case of a displaced person who is 60 years of age or over, this payment shall be in an amount equal to three times the average annual net earnings of the business or $6,000, whichever is less.

Where the entire farm operation is not acquired by such Federal agency, the payment authorized by this subsection shall be made only if the head of such agency determines that the property not acquired is no longer an economic unit.

For purposes of this subsection, the term "average annual net earnings" means one-half of any net earnings of the farm operation, before Federal, State, and local income taxes, during the 2 taxable years immediately preceding the taxable year in which such farm operation moves from the real property acquired, and includes any compensation paid by the farm operation to the owner, his spouse, or his dependents during such 2-year period.

Section 211(e) provides for an additional payment, not to exceed $5,000, to a displaced person who is the owner-occupier of real property which is improved by a single-, two-, or three-family dwelling, provided he purchases another dwelling within 1 year from the date of his displacement. The payment shall be the amount, if any, which, when added to the acquisition payment, equals the average price required for a decent, safe, and sanitary dwelling of modest standards adequate to accommodate the displaced owner, readily accessible to public services and places of employment

To be eligible for this payment, the owner must have occupied the property "for not less than 1 year prior to the initiation of negotiations" for its acquisition. It is not intended that the owner be required to actually occupy the property at the date negotiations commence. The 1-year occupancy requirement would be satisfied by an owner who has occupied the property after the commencement of the project and for at least 1 year prior to his move.

The Secretary of Housing and Urban Development shall determine the prices prevailing in the locality for dwellings meeting the requirements of paragraph (1) of this subsection for all agencies making such

payments.

Section 211(f) provides for an additional payment to an individual or family displaced from a dwelling and not eligible to receive a payment under the above section, provided such dwelling was actually

and lawfully occupied by such individual or family for not less than 90 days prior to the initiation of negotiations for acquisition of the property.

Such payment shall not exceed $1,500, and shall be an amount which (1) is necessary to make the downpayment on a dwelling; or (2) be the amount which, when added to 20 percent of the income of the displaced person during the 2-year period immediately preceding displacement, equals the average rental required for a 2-year period for a decent, safe, and sanitary dwelling of modest standards adequate to accommodate the displaced person or family in areas not generally less desirable in regard to public utilities and public and commercial facilities. Such payment here shall be made only to an individual or family who is unable to secure a dwelling unit in low-rent housing assisted under the U.S. Housing Act of 1937, or under a State or local program found by the Secretary of Housing and Urban Development to have the same general purposes as such federally assisted program, or a dwelling unit assisted under section 101 of the Housing and Urban Development Act of 1965.

The Secretary of Housing and Urban Development is made responsible for determining, for all Federal agencies, the amount of assistance under this subsection in accordance with family size, family or individual income, average rents required, and similar considerations.

Section 211(g) provides that no payment received under this section or under section 231 shall be considered as income for the purposes of the Internal Revenue Code of 1954, or for the purpose of determining the eligibility or extent of eligibility of any person for assistance under the Social Security Act or any other Federal law.

Section 211(h) provides that payments provided for in the section shall be made administratively by the head of the Federal agency acquiring real property, and none of the provisions of the section shall in any way affect any condemnation action or just compensation to be determined or paid to the landowner in such action.

Relocation assistance programs

Section 212(a) requires that when a Federal agency acquires real property for public use, it shall provide a relocation assistance program which shall offer services as described in section 212(c) set forth below. It also requires that such assistance be supplied to persons occupying property immediately adjacent to the real property acquired where substantial economic injury has been caused by the public improvement. Section 212(b) requires that Federal agencies administering programs that could be of assistance in the relocation of displaced persons shall cooperate to the maximum extent feasible with the agency causing the displacement to assure that displaced persons received the maximum assistance available.

Section 212(c) spells out the type of relocation assistance programs required by section 212(a). Each such program shall include to the maximum extent practicable such measures, facilities, or services as may be necessary or appropriate in order

(1) To determine the needs of displaced families, individuals, business concerns, and farm operators for relocation assistance; (2) To assure that within a reasonable period of time prior to displacement, there will be available, in areas not generally less desirable in regard to public utilities and public and com

mercial facilities and at rents or prices within the financial means of the families and individuals displaced, decent, safe, and sanitary dwellings equal in number to the number of, and available to, such displaced families and individuals and reasonably accessible to their places of employment. The President is authorized to prescribe by regulations situations when such assurances may be waived;

(3) To assist owners of displaced businesses, nonprofit organizations, and farm operators in obtaining and becoming established in suitable business locations or replacement farms;

(4) To supply information concerning the Federal housing programs, the small business disaster loan program under section 7(b)(3) of the Small Business Act, and other State or Federal programs offering assistance to displaced persons;

(5) To assist in minimizing hardships to displaced persons in adjusting to relocation; and

(6) To assure the coordination of relocation activities with other project activities and other planned or proposed governmental actions in the community or nearby areas which may affect the carrying out of the relocation program.

States furnishing real property incident to Federal assistance

Section 213 provides that whenever real property is acquired by a State agency and furnished as a required contribution incident to a Federal project to improve a locality, the Federal agency may not accept such property unless the acquiring State agency has made relocation payments, provided relocation assistance, and provided assurance of availability of housing as required in the case of acquisitions of real property by a Federal agency. The State agency shall bear the costs of relocation payments and assistance as a part of the real property acquisition cost, except that the Federal agency having authority over the project shall contribute the first $25,000 of the cost of providing such payments and assistance to any person displaced prior to July 1, 1972. The figure is increased to $27,500 if the displaced person, at the time of displacement, lives in a State which is not contiguous to any other State.

Part B-Federally assisted programs

Part B of title II is concerned with the displacement of persons from their homes, businesses, and farms as a result of real property acquisitions by State and local governments in programs receiving Federal assistance. It is the intention of the committee to apply protection to persons displaced under these federally assisted programs in much the same manner that they are protected under programs of direct Federal acquisition.

Relocation payments and assistance; assurance of availability of housing

Section 231 (a) requires, in essence, that State and local governments administering federally assisted development programs must also agree to provide the relocation payments, services, and assurances of available housing that are required of Federal agencies, as a condition for receiving the Federal assistance for the programs involved.

S. Rept. 91-488- -3

More specifically, the subsection requires (1) the same fair and reasonable payments as provided by section 211(a) subject to regulations and limitations established by the President, (2) the same amounts and under the same terms and conditions as required by section 211 (b), (c), (d), (e) (2), and (f), of title II.

In addition, the subsection requires that the State or local government must provide a feasible method for the temporary relocation of families and individuals displaced from the property acquired, and assurance that within a reasonable period of time prior to displacement there will be available 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 of the families and individuals displaced, decent, safe, and sanitary dwellings equal in number to the number of and available to such displaced families and individuals and reasonably accessible to their places of employment.

With regard to the additional payment authorized by section 211(e) (1) for the owner-occupant of a dwelling, this subsection provides that no such payment shall be required or included in the project cost under subsection 231(c) if the owner-occupant receives a payment required by the State law of eminent domain having the same purpose and effect as subsection 211(e) (1) and to be a part of the cost of the project for which Federal financial assistance is available.

Section 231(b) requires, as a condition to Federal assistance, the Federal agency shall require the State agency, as (1) part or all of the cost of real property acquisition; (2) part or all of the cost of a public improvement for which real property is to be acquired; or (3) a program which will otherwise result in the displacement of families and individuals, that within a reasonable time prior to actual displacement, satisfactory assurance by the State agency that decent, safe, and sanitary dwellings as required by subsection 231 (a) (4) are available for the relocation of each such individual or family.

Section 231(c) is a very basic part of the proposed act. It provides that the cost to a State agency of providing relocation payments and services may be included as part of the cost of the project for which Federal financial assistance made available to the State agency, and the State agency shall be eligible for Federal financial assistance with respect to such payments and services in the same manner and to the same extent as with respect to other project costs. However, notwithstanding any other law the Federal agency providing such relocation assistance shall contribute the first $25,000 of the cost of providing such payments to any person displaced prior to July 1, 1972, and that no State agency need agree to make any relocation payment in excess of $25,000 to any displaced person in order to receive Federal assistance.

The Federal agency providing such relocation assistance shall contribute the first $27,500 if the displaced person, at the time of displacement, lives in a State which is not contiguous to any other State.

Thus, up to July 1972, Federal agencies are obligated to provide the first $25,000, or $27,500 upon that determination noted, per dislocatee as a full Federal contribution. After that, the relocation costs are on a shared basis in line with project formulas.