[Federal Register Volume 68, Number 242 (Wednesday, December 17, 2003)]
[Proposed Rules]
[Pages 70342-70385]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 03-30804]



[[Page 70341]]

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Part II





Department of Transportation





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Office of the Secretary



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49 CFR Part 24



Uniform Relocation Assistance and Real Property Acquisition for Federal 
and Federally-Assisted Programs; Proposed Rule

Federal Register / Vol. 68, No. 242 / Wednesday, December 17, 2003 / 
Proposed Rules

[[Page 70342]]


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DEPARTMENT OF TRANSPORTATION

Office of the Secretary

49 CFR Part 24

[FHWA Docket No. FHWA-2003-14747]
RIN 2125-AE97


Uniform Relocation Assistance and Real Property Acquisition for 
Federal and Federally-Assisted Programs

AGENCY: Federal Highway Administration (FHWA), DOT.

ACTION: Notice of proposed rulemaking (NPRM), request for comments, and 
notice of public meetings.

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SUMMARY: The FHWA is proposing to amend several sections of the 
regulations that set forth governmentwide requirements for implementing 
the Uniform Relocation Assistance and Real Property Acquisition 
Policies Act (Uniform Act.) These proposed changes would clarify 
present requirements, meet modern needs and improve the service to 
individuals and businesses affected by Federal or federally-assisted 
projects while at the same time reducing the burdens of government 
regulations. The regulation has not been fully reviewed or updated 
since it was issued in 1989. The proposed amendments to the Uniform Act 
regulation would affect the land acquisition and displacement 
activities of 18 Federal Agencies including the new Department of 
Homeland Security. This document also provides notice of public 
meetings on the proposed changes to the regulation.

DATES: The public meetings will be held on January 15, 2004, from 10 
a.m. to 2 p.m., Washington, DC; January 22, 2004, from 10 a.m. to 2 
p.m., Lakewood, CO; and January 28, 2004, from 10 a.m. to 2 p.m., 
Atlanta, GA.
    Comments in response to this NPRM must be received on or before 
February 17, 2004.

ADDRESSES: The January 15, 2004 meeting will be held in Washington, DC, 
United States Department of Transportation, 400 7th Street, SW., Room 
8236. The January 22, 2004 meeting will be held in Lakewood, CO, Zang 
Building, Conference Room 360, 555 Zang Street. The January 28, 2004 
meeting will be held in Atlanta, GA, Atlanta Federal Center, Conference 
Room B, 61 Forsyth Street, SW., Atlanta, Georgia. Each meeting will be 
scheduled from 10 a.m. to 2 p.m.
    Mail or hand deliver comments to the docket number that appears in 
the heading of this document to the U.S. Department of Transportation, 
Dockets Management Facility, Room PL-401, 400 Seventh Street, SW., 
Washington, DC 20590, or submit electronically at http://dmses.dot.gov/
submit. All comments received will be available for examination and 
copying at the above address 9 a.m. to 5 p.m., e.s.t., Monday through 
Friday, except Federal holidays. Those desiring notification of receipt 
of comments must include a pre-addressed, stamped envelope or post card 
or you may print the acknowledgement page that appears after submitting 
comments electronically.
    Anyone is able to search the electronic form of all comments 
received into any of our dockets by the name of the individual 
submitting the comment (or signing the comment, if submitted on behalf 
of an association, business, labor union, etc.). You may review DOT's 
complete Privacy Act statement in the Federal Register published on 
April 11, 2002 (Volume 65, Number 70, Page 19477-78) or you may visit 
http://dms.dot.gov.

FOR FURTHER INFORMATION CONTACT: Ronald E. Fannin, Office of Real 
Estate Services, HEPR, (202) 366-2042; Reginald K. Bessmer, Office of 
Real Estate Services, HEPR, (202) 366-2037 or Reid Alsop, Office of the 
Chief Counsel, HCC-30, (202) 366-1371, Federal Highway Administration, 
400 Seventh Street, SW., Washington, DC 20590. Office hours are from 
7:45 a.m. to 4:15 p.m., e.s.t., Monday through Friday, except Federal 
holidays.

SUPPLEMENTARY INFORMATION:

Electronic Access and Filing

    You may submit or retrieve comments online through the Document 
Management System (DMS) at: http://dmses.dot.gov/submit. Acceptable 
formats include: MS Word (versions 95 to 97), MS Word for Mac (versions 
6 to 8), Rich Text File (RTF), American Standard Code Information 
Interchange (ASCII)(TXT), Portable Document Format (PDF), and 
WordPerfect (versions 7 to 8.) The DMS is available 24 hours each day, 
365 days each year. Electronic submission and retrieval help and 
guidelines are available under the help section of the web site.
    An electronic copy of this document may be downloaded by using a 
modem and suitable communications software from the Government Printing 
Office's Electronic Bulletin Board Service at (202) 512-1661. Internet 
users may also reach the Federal Register's home page at: http://
www.archives.gov and the Government Printing Office's database at: 
http://www.access.gpo.gov/nara.

Background

Reasons for This Proposal

    Title 49 CFR part 24 has not been comprehensively revised or 
updated since its initial publication in 1989. We believe there is some 
confusion regarding a number of existing requirements. There could be 
improvement in achieving the goal of national program uniformity; and 
there are inadequacies in meeting contemporary needs. We also believe 
we could improve the service to individuals and businesses affected by 
Federal and federally-assisted projects while reducing administrative 
burdens.

History

Relevant Legislation

    Title 49 CFR part 24 implements the Uniform Relocation Assistance 
and Real Property Acquisition Policies Act of 1970, as amended, 42 
U.S.C. 4601 et seq., (``the Uniform Act'').

Current Regulations

    As originally enacted, the Uniform Act authorized ``the head of 
each Federal Agency'' to establish regulations and procedures for 
implementing the Uniform Act. Inevitably, this led to significant 
differences in Agencies implementing regulations. In a March 8, 1978, 
Report to Congress (GAO Report No. GGD-78-6, ``Changes Needed in the 
Relocation Act to Achieve More Uniform Treatment of Persons Displaced 
by Federal Programs, B-148044 (1978)),'' \1\ the Comptroller General 
found that as a result of these differences the Federal government was 
not providing uniform treatment to people displaced from their homes 
and businesses by Federal or federally-assisted programs. Those 
differences among Federal implementing regulations also imposed 
significant administrative burdens on State and local governments. In 
1981, for the Vice President's Presidential Task Force on Regulatory 
Relief, State and local governments identified the Uniform Act as a 
good candidate for State and local regulatory relief.
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    \1\ A copy of this report, Changes Needed in the Relocation Act 
to Achieve More Uniform Treatment of Persons Displaced by Federal 
Programs, is available in the docket.
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    Therefore, in May 1982, the Office of Management and Budget (OMB) 
formed a Uniform Act Interagency Regulatory Review Working Group to 
develop uniform regulations to be implemented by each Agency covered by 
the Uniform Act. A Presidential Memorandum, dated February 27, 1985, 
was published in the Federal Register on March 5, 1985 (50

[[Page 70343]]

FR 8953), naming the U.S. Department of Transportation (USDOT) as the 
Agency with lead responsibility for the Uniform Act. The Secretary of 
Transportation (hereafter Secretary) delegated this responsibility to 
the Federal Highway Administrator.
    On March 5, 1985 (50 FR 8955), the USDOT published a model Uniform 
Act regulation, which, in accordance with the President's Memorandum of 
February 27, 1985, served as the basis for a proposed Uniform Act 
``common rule'' to be issued by the 16 other affected Agencies. The 
proposed common rule was issued for comment by those 16 Agencies on May 
28, 1985 (50 FR 21712.) After consideration of comments, on February 
27, 1986, the common rule was adopted by each of the affected Federal 
Agencies and the former disparate relocation regulations of those 
Agencies were removed. This common rulemaking effort by the Federal 
Agencies that administered both direct Federal programs and projects, 
and federally-assisted programs and projects undertaken by State or 
local Agencies, achieved regulatory consistency among the separate 
Federal Agencies subject to the Uniform Act.
    This common rulemaking effort presaged several of the statutory 
changes to the Uniform Act that were made by the Uniform Relocation Act 
Amendments of 1987 (Title IV, Pub. L. 100-17, 101 Stat. 246) (``1987 
Amendments''). In the administrative area, for example, to further 
ensure uniformity, the amendments specifically designated the USDOT as 
Lead Agency and required it, in coordination with other Federal 
Agencies, to issue a governmentwide rule, establish procedures and make 
interpretations to implement provisions of the Uniform Act. In the 
substantive area, the common rulemaking effort granted greater 
flexibility and discretion to State and local Agencies, a theme 
reiterated in the 1987 Amendments.

Implementation of the 1987 Amendments to the Uniform Act

    On May 19, 1987 (52 FR 18768), the FHWA issued a notice proposing 
significant changes to the common rule as a result of the 1987 
amendments to the Uniform Act. On December 1, 1987 (52 FR 45667), the 
FHWA issued a Notice of Regulatory Intent giving further notice of the 
specific regulatory actions that it and the other affected Federal 
Agencies would take to implement the 1987 Amendments.
    On December 17, 1987 (52 FR 47994), the FHWA issued an interim 
final rule, as 49 CFR part 24, that revised the provisions of the 
common rule to include those provisions of the 1987 amendments to the 
Uniform Act (primarily increases in the dollar amounts of specific 
relocation assistance) that did not allow for administrative discretion 
or interpretation, and for which a period of public notices and comment 
would have been impractical. This interim final rule was promulgated in 
order to allow those Federal, State and local Agencies that were 
willing and able to provide the increased dollar amounts for specific 
relocation assistance, provided by the 1987 amendments, to do so 
expeditiously. On the same day at 52 FR 48015, 17 Federal Departments 
and Agencies that administer the Uniform Act published interim final 
rules rescinding the common rule from each of their regulations and 
adopting in its place a cross-reference to the single interim final 
rule published by the FHWA as 49 CFR part 24. The effective date for 
these Agency rescissions and cross-references varied. However, all such 
actions took effect on or before April 2, 1989, the date the 1987 
Amendments became mandatory. The Department of Housing and Urban 
Development (HUD), was unable to join the other Federal Agencies in 
publishing an interim final rescission and cross referencing action on 
December 17, 1987, because of its need to first satisfy certain 
Congressional review obligations. HUD subsequently published such an 
interim rule on February 19, 1988 (53 FR 4964).
    The FHWA issued an NPRM on July 21, 1988, at 53 FR 27598, proposing 
to fully implement the statutory amendments to the Uniform Act and to 
replace the interim final rule. On March 2, 1989 (54 FR 8928), the FHWA 
issued the final rule, which implemented all of the provisions of the 
1987 Amendments to the Uniform Act, and replaced the interim final 
rule. This was the final step in the development of a single common 
rule for implementing the Uniform Act.
    The Uniform Act and the common rule govern the relocation and land 
acquisition programs of all Federal departments and Agencies. Those 
departments and Agencies that, for convenience, provide a cross 
reference to this part, and the location of those cross-references, are 
listed below:

Department of Agriculture
    7 CFR Part 21
Department of Commerce
    15 CFR Part 11
Department of Defense
    32 CFR Part 259
Department of Education
    34 CFR Part 15
Department of Energy
    10 CFR Part 1039
Environmental Protection Agency
    40 CFR Part 4
Federal Emergency Management Agency
    44 CFR Part 25
General Services Administration
    41 CFR Part 105-51
Department of Health and Human Services
    45 CFR Part 15
Department of Housing and Urban Development
    24 CFR Part 42
Department of Justice
    41 CFR Part 128-18
Department of Labor
    29 CFR Part 12
National Aeronautics and Space Administration
    14 CFR Part 1208
Tennessee Valley Authority
    18 CFR Part 1306
Veterans Administration
    38 CFR Part 25

    The United States Postal Service has indicated that it will comply 
voluntarily with the Uniform Act, although its current regulations (39 
CFR part 777) differ slightly from these proposed regulations.
    However, because the Uniform Act applies to all acquisitions of 
real property or displacements of persons resulting from Federal or 
federally-assisted programs or projects, the Act's application is not 
affected by the absence of a cross reference to 49 CFR part 24 in a 
department's or Agency's regulations. Further, Federal or federally-
assisted activities involving land acquisition or displacement, 
undertaken by a newly constituted Federal department or Agency, such 
as, for example, the new Department of Homeland Security, would be 
covered by the Act.

1993 Amendments to the Governmentwide Regulations

    On January 28, 1992, the President issued a Memorandum for Certain 
Department and Agency Heads entitled ``Reducing the Burden of 
Government Regulation'' which called upon Departments and Agencies to 
review their existing regulations in order to determine whether changes 
should be made to promote economic growth, create jobs, or eliminate 
unnecessary costs or other burdens on the economy.
    The FHWA, as a result of its review of the Uniform Act common rule, 
identified several amendments that it believed would enhance the 
relocation assistance provided to displaced businesses, thus increasing 
their chances of a successful relocation. Additionally, we identified 
changes that

[[Page 70344]]

would reduce the regulatory burden imposed on such businesses as well 
as on State and local governments implementing the regulation. 
Therefore, on July 27, 1992 (57 FR 33164), we issued a notice of 
proposed rulemaking (NPRM) proposing these changes to the common rule 
and published the final rule on April 30, 1993 (58 FR 26072).

1999 Amendments to the Governmentwide Regulation

    Pub. L. 105-117, 111 Stat. 2384 (November 21, 1997) amended the 
Uniform Act to provide that an alien not lawfully present in the United 
States shall not be eligible to receive relocation payments or any 
other assistance provided under the Uniform Act, unless such 
ineligibility would result in exceptional and extremely unusual 
hardship to the alien's spouse, parent, or child, and such spouse, 
parent, or child is a citizen or an alien admitted for permanent 
residence. As a result of these changes, the FHWA proposed to amend the 
common rule to reflect the prohibitions on payments to aliens not 
lawfully present in the United States. After publishing an NPRM on June 
12, 1998 (63 FR 32175), the FHWA published a final rule implementing 
these changes on February 12, 1999 (64 FR 7127).

FHWA Actions To Update the Regulations

    Following a series of requests from other Federal Agencies, States, 
and local public agencies, concerning the need for updating the Uniform 
Act and Title 49, CFR Part 24, the FHWA initiated a comprehensive 
review of 49 CFR part 24 by hosting an all Federal Agency briefing and 
listening session at the Uniform Act 30th Anniversary Symposium in 
Mesa, Arizona, in November of 2001. Seventy-five individuals 
representing 14 Federal Agencies, provided specific comments and 
suggestions. We compiled the comments and in March of 2002 we formed a 
Federal Interagency Task Force (Task Force) to review all comments 
received from both the private and public sectors and to begin 
developing proposed changes to the common rule. All 18 Federal Agencies 
whose programs are affected by the Uniform Act were asked to provide a 
representative to be a member of the Task Force. Next, the FHWA 
published a notice on May 14, 2002 (67 FR 34514), announcing 5 
nationwide public listening sessions in June and July 2002 to gather 
broader input.
    Following these sessions, the Task Force once again evaluated each 
comment. Based on the comments received, the FHWA determined there was 
a need to update the regulation. The Task Force then began to identify 
specific provisions of the regulation that should be updated. The Task 
Force drafted proposed regulatory language, and on November 7, 2002, 
the FHWA hosted an All-Federal Agencies' meeting to present and discuss 
the draft language to each of the Agencies affected by this rule. On 
December 5, 2002, each Agency was given the draft language and asked to 
provide its specific feedback to the FHWA. This feedback helped the 
FHWA formulate the proposed changes in this NPRM.

Section-by-Section Discussion of Proposed Changes

    Descriptions of the regulatory changes proposed in this part are 
set forth below. All members of the public who are affected by 
relocation or land acquisition activities undertaken or funded by 
Federal departments and Agencies are encouraged to comment on this 
NPRM. Comments from interested State and local governments are 
particularly requested. We have made several minor grammar changes such 
as adding or deleting commas and shortening sentences for clarity that 
will not change the meaning or intent. These minor changes are not 
addressed in the Section-by-Section discussion.

Subpart A--General

Section 24.2 Definitions

    We propose to add a subsection listing acronyms and to include a 
numbering system to better identify definitions. This would provide 
users a list of the most commonly used acronyms in the regulation. 
These acronyms have become commonplace in conversation and 
correspondence in the land acquisition and displacement activities of 
the 18 Federal Agencies. Also, currently, there are 35 complex and 
lengthy definitions listed in alphabetical order. Without a clear and 
simple way of referring to definition provisions it is difficult to 
communicate with affected parties, which complicates both effective 
Agency administration and public understanding of applicable 
provisions. Since this rule applies to the programs of approximately 18 
Federal Agencies, it is important that they all write and talk with the 
same understanding. To include a numbering system for the definitions 
was one of the most requested proposals received during the comment 
period from both the private and public domain.

Section 24.2(a)(6)(ii) Comparable Replacement Dwelling

    We propose to remove the phrase ``style of living'' from paragraph 
(2) of the definition of comparable replacement dwelling.
    The phrase ``style of living'' has sometimes been misused and has 
proven to be confusing. Occasionally, it has been used out of context 
and interpreted to require identical unique features found in acquired 
dwellings such as, cherry cabinets, gold fixtures, and other 
specialized items to be in comparable replacement dwellings. In such 
cases, the standard for replacement housing has been raised to a level 
above ``comparable.'' This interpretation can make it nearly impossible 
to find appropriate replacement housing and could result in replacement 
housing payments greater than those intended by Congress. As noted in 
the conference report accompanying the 1987 amendments, ``The Conferees 
recognize that strict and absolute adherence to an exhaustive, 
detailed, feature-by-feature comparison can result in rigidities. These 
can constitute a substantial economic burden and can lead to excessive 
cost if the law requires, or is interpreted to require, the replacement 
dwelling to possess every feature of the acquired dwelling as an 
absolute minimum.'' H.R. Conf. Rep. No. 100-27, at 247 (1987).
    The Congress realized the difficulty in finding comparable 
replacement dwellings and intended there to be some flexibility in the 
definition. Removing the phrase ``style of living'' will not erode any 
protections provided to the displaced person. Other criteria under the 
definition of comparability would adequately cover the factors covered 
by ``style of living.''

Section 24.2(a)(6)(vii) Comparable Replacement Dwelling--Currently 
Available

    We propose to revise section 24.2(a)(6)(vii) by deleting the last 
sentence and moving it to a new section, 24.2(a)(6)(ix). This new 
section would also provide that, when a person that is displaced from 
government subsidized housing accepts an offer of government housing 
assistance at the replacement dwelling, any requirements of the 
government housing program relating to the number of rooms or living 
space of the replacement dwelling would apply.

Section 24.2(a)(6)(viii) Comparable Replacement Dwelling--Within the 
Financial Means of the Displaced Person

    We propose to consolidate the definition of comparable replacement

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dwelling into a single paragraph, proposed as Sec.  24.2(a)(6)(viii). 
This consolidation would define the purchase price or amount of rent 
that is considered to be within the displaced person's financial means 
for both a homeowner and a residential tenant. The consolidation would 
reduce verbiage, without any change in substance.

Section 24.2(a)(8)(ii) Decent, Safe, and Sanitary Dwelling

    We propose to add a requirement to the decent, safe, and sanitary 
dwelling definition to reflect the protections provided by Public Law 
102-550, Residential Lead-Based Paint Hazard Reduction Act of 1992. 
Lead based paint hazard levels established by the U.S. Environmental 
Protection Agency in accordance with Public Law 102-550 are intended to 
protect families and children under the age of six from ingesting paint 
dust or chips while occupying replacement housing. HUD's Lead Safe 
Housing Rule (24 CFR 35, subparts B-R), which implements that law for 
federally-owned and assisted housing, provides the strategy for 
protecting occupants during temporary relocation. The replacement 
dwelling unit must not have deteriorated paint (or deteriorated lead-
based paint if paint testing is conducted) or dust-lead hazards. A unit 
built on or after January 1, 1978 meets the requirement. The lead 
safety provision does not apply to displacement of persons who are 
either elderly or disabled (unless a child under 6 years will reside or 
be expected to reside in the unit), nor if the replacement dwelling 
unit is a zero-bedroom dwelling. This proposed change would include 
this same standard in Sec.  24.2(a)(8)(ii).

Section 24.2(a)(8)(v) Decent, Safe, and Sanitary Dwelling--Local 
Housing Codes

    We propose to amend this definition to require the Agencies to 
follow the local housing code provision that addresses the maximum 
number of persons permitted to occupy a room used for sleeping 
purposes. In the absence of a local housing code requirement, the 
written policy of the Agency would govern. Additionally, Agencies must 
also follow any housing code provision which addresses the minimum 
amount of square feet for each person occupying a dwelling unit or 
portion thereof. This would make it easier to determine the number of 
bedrooms required for a replacement dwelling unit.
    Similarly, we propose that the local housing code or, if no such 
code provision exists, the written policy of the Agency, would 
determine the minimum age of children of the opposite gender which must 
occupy separate rooms used for sleeping purposes. In the absence of a 
local housing code or a written policy by the Agency, the minimum 
standards established for a decent, safe and sanitary dwelling in Sec.  
24.2(a)(8) are to be applied.

Section 24.2(a)(9)(ii)(D) Persons Not Displaced

    We proposed to amend this section in appendix A to provide that 
temporary relocation assistance to a person required to move from their 
dwelling, business, farm, or nonprofit organization are limited to a 
one year period. Such persons remaining in a temporary location for a 
period exceeding one year must be offered all permanent relocation 
assistance.

Section 24.2(a)(11) Dwelling Site

    We propose to add a definition of the term ``dwelling site.'' The 
dwelling site represents the area, and specifically the size of the 
land area, on which a dwelling is located. The ``dwelling site,'' as 
defined, is a typical lot for similar dwellings in the neighborhood 
where the dwelling to be acquired is located. This definition would 
help ensure more accurate computations of replacement housing payments 
when a dwelling is located on a larger than normal site or when mixed-
use or multi-family properties are involved, and reflects current 
practice.

Section 24.2(a)(12) Eviction for Cause

    At the request of the HUD and with concurrence by the Task Force, 
we propose to simplify the eviction for cause provision in Sec.  24.206 
by adding a definition of eviction for cause to Sec.  24.2(a)(12). The 
proposed definition includes some of the provisions that are currently 
included in Sec.  24.206. Eviction is a legal process, not an 
administrative procedure, and therefore, the proposed definition would 
retain the current link to applicable State and local law.

Section 24.2(a)(15) Household Income

    At the request of Federal, State, and local public Agencies having 
the responsibility of administering the Uniform Act, we propose to add, 
for clarity, a new definition, ``household income.'' This definition 
would include examples of what does and does not constitute a person's 
gross monthly household income for purposes of establishing a base 
monthly income under proposed Sec.  24.402(b)(2)(ii).
    Household income would generally include average monthly income 
from all sources, but would exclude income from dependent children 18 
years old or younger and full time students, and various governmental 
assistance described in appendix A of this part, Sec.  24.2(a)(15).

Section 24.2(a)(16) Initiation of Negotiations

    We propose to add a sentence to the definition of ``initiation of 
negotiations'' to provide that, in the case of acquisitions of real 
property, described in the initiation of negotiations, for the purposes 
of Sec.  24.101(b)(1) through (5) (that must be based on an amicable 
agreement with the owner) establishing a qualified tenant's eligibility 
for relocation benefits, would occur when the Agency and the owner 
reach agreement to purchase the real property.

Section 24.2(a)(18) Mobile Home

    We propose to add a definition for a mobile home to this section. 
The term includes both manufactured homes and recreational vehicles 
used as residences. We also propose to add further requirements that 
recreational vehicles must meet in order to be qualified for relocation 
assistance in appendix A. Appendix A would also explain the difference 
between manufactured homes and mobile homes recognized by HUD for that 
Agency's programs. For purposes of this regulation, however, we propose 
that both are to be considered as mobile homes. (Subpart F continues to 
include an explanation of the different methods of computing relocation 
assistance when a mobile home has been determined to be personal 
property, and when it is determined to be real property.)

Section 24.2(a)(24) Salvage Value

    We propose to revise the definition of ``salvage value'' to clarify 
that the value of an item is to be based on the item being removed at 
the buyer's expense.

Section 24.2(a)(30) Unlawful Occupant

    We propose to change the term ``unlawful occupancy'' to ``unlawful 
occupant'' so that the definition can be stated more clearly. We also 
propose to remove the word ``squatter'' from the definition. The word 
may be offensive and is not necessary to the definition. The wording 
changes proposed would simplify the definition without changing its 
meaning.

Section 24.2(a)(34) Waiver Valuation

    We propose to use the term ``waiver valuation'' to identify the 
valuation

[[Page 70346]]

process and product when Sec.  24.102(c)(2) appraisal waiver provisions 
are implemented.

Section 24.9 Recordkeeping and Reports

    In accordance with the Presidential Memorandum dated February 27, 
1985, United States Department of Transportation is required to report 
annually to the President's Council on Management Improvement, a part 
of the Office of Management and Budget, on implementation of the 
Uniform Act. Under the current reporting requirement, the Lead Agency 
has received very little statistical information, and thus has little 
or no knowledge of the extent and impact of other Federal funding 
Agencies acquisition and displacement activities. Therefore, in Sec.  
24.9(c), we propose to require Federal Agencies to submit an annual 
report summarizing of their real property acquisition and displacement 
activities to the Lead Agency. This proposed change would enable us to 
prepare and submit a more comprehensive and useful report, in addition 
to facilitating a more active monitoring role in our duty as Lead 
Agency.
    We propose to redesign Appendix B to be less burdensome and to 
enable the information to be reported electronically. Appendix B is the 
statistical support form of which Agencies are required to submit 
reports of real property acquisition and displacement activities, if 
required by the Federal Agency funding the project. Additionally, we 
propose to remove the requirement that the Agency submit this report no 
more frequently than every three years, since this report is issued 
each year.
    The Department of Housing and Urban Development and most other 
Federal funding Agencies support this proposed change.

Subpart B--Real Property Acquisition

    We propose to make a minor change by replacing the term ``fair 
market value'' with ``market value'' throughout the subpart to better 
reflect current appraisal terminology.

Section 24.101 Applicability of Acquisition Requirements

    We propose to restructure Sec.  24.101(a) to clarify the 
application of the real property acquisition requirements set forth in 
this subpart, and to revise the exceptions to those requirements.
    Currently, the two major exceptions to real property acquisition 
requirements in Subpart B are voluntary transactions and acquisitions 
in which the Agency does not have the power of eminent domain.
    Based on the suggestion of Federal Agencies, we propose that these 
exceptions no longer apply to acquisitions by Federal Agencies. We are 
advised that some Federal Agencies use these types of transactions to a 
significant extent. To best ensure that the objectives of the Uniform 
Act are satisfied, we propose that Federal Agencies follow the 
valuation processes set forth in this subpart for all of their direct 
acquisitions. This proposal is also consistent with section 305(b)(2) 
(42 U.S.C. 4655(b)(2)) of the Uniform Act, which allows these 
exceptions for recipients of Federal financial assistance, but provides 
no such exceptions for Federal Agencies themselves. We propose to 
retain the exceptions for federally-assisted projects and programs.
    Essential to the exceptions is the requirement that the owner must 
be informed that the property would not be acquired unless an amicable 
agreement can be reached. Currently, the regulation requires the Agency 
to inform the owner what it believes to be the fair market value of the 
property. We propose to require the Agency to inform the property owner 
in writing (1) that the property will not be acquired unless an 
amicable agreement can be reached, and (2) of the market value of his/
her property. This would more closely parallel the Uniform Act 
requirement that is applicable to covered transactions, and provide the 
property owner with documented assurance of the Agency's authority and 
intentions.
    Some Agencies suggested that the requirement that the Agency inform 
the owner of what it believes to be market value in Sec.  24.101(a)(1) 
and (2) be revised to also include a requirement for a supporting 
appraisal. We have not proposed adding such a requirement. However, we 
propose adding language to Appendix A noting that, while the regulation 
does not require an appraisal in these cases, an Agency may still 
decide to use some form of an appraisal, and, in any event, an agency 
must have some reasonable basis for the valuation required by Sec.  
24.101(a)(1) and (2).
    To assist readers/users, we propose to add a cross reference to the 
location in the rule of relocation assistance provisions that are 
applicable to any tenants that must move as a result of these excepted 
acquisitions.
    We propose to delete the introductory phrase in proposed Sec.  
24.101(c), currently Sec.  24.101(b), to eliminate unnecessary 
verbiage.

Section 24.102 Basic Acquisition Policies

    The Uniform Act provides that the requirement for an appraisal may 
be waived in cases involving the acquisition of property with a low 
market value. We propose to clarify Sec.  24.102(c)(2) by separating it 
into paragraphs (i) and (ii). Paragraph (i) would concern donations and 
is essentially unchanged. Paragraph (ii) would address low value 
properties and would specify that when such properties are to be 
acquired, and the appraisal waived, the Agency must prepare a ``waiver 
valuation,'' a term proposed to be defined in Sec.  24.2(a)(34). We 
propose to raise the appraisal waiver threshold in Sec.  24.102(c)(2) 
from $2,500 to $10,000. In addition, we propose to add a new provision 
that would allow the Federal funding Agency to raise the threshold up 
to a maximum of $25,000, provided that the Agency acquiring the real 
property offers the property owner the option of having an appraisal 
performed.
    These proposed changes reflect the general increase in property 
values since the present threshold was established. Comments we have 
received and our experience to date, have shown no indication of 
administrative abuse or property owner objection. Broad Agency support 
indicates a higher threshold is justified.

Section 24.102(e) Summary Statement

    We propose to revise the language in (3) to be clearer and more 
specific.

Section 24.102(i) Administrative Settlement

    We propose to revise the language to require more specific 
information in the written justification (``state'' rather than 
``indicate'') and delete specific suggestions (``appraisals, recent 
court awards, estimated trial costs, or valuation problems'') in favor 
of requesting ``what available information, including trial risks, 
supports the settlement.''

Section 24.102(n) Conflict of Interest

    Language currently in Sec.  24.103(e) Criteria for appraisals, 
addresses conflicts of interest for appraisers and review appraisers. 
Proposed language would add all persons making waiver valuations under 
Sec.  24.102(c)(2) to this section. This proposed change would bring 
equal conflict of interest standards to all individuals valuing real 
property, whether their work be waiver valuations, appraisal, or 
appraisal review, and would clarify who is covered.

[[Page 70347]]

    We also propose adding a new provision that any person functioning 
as a negotiator shall not supervise or formally evaluate either the 
appraiser, review appraiser or person making waiver valuations. This 
provision would enhance appraiser independence and further support the 
Uniform Act concept that the appraisal is part of the acquisition 
process that includes not only appraisal and appraisal review, but also 
the Agency responsibility and authority to establish an amount, based 
on an approved (reviewed) appraisal, believed to be just compensation, 
offer that amount to the property owner, and be prepared to consider 
updating the offer of just compensation (Sec.  24.102(g)) and 
administrative settlement (Sec.  24.102(i)), as appropriate. 
Recognizing that some Federal assistance recipients, particularly those 
with limited staff resources, may find this provision unworkable, we 
propose that, in such cases, the Federal funding agency may waive this 
provision. And, since the proposed provision would apply to more 
individuals than just the appraiser, we propose to relocate it to be 
under basic acquisition policies.

Section 24.103 Criteria for Appraisal

    The revisions we propose to Sec. Sec.  24.103 and 24.104 are the 
first since the Appraisal Foundation published the Uniform Standards of 
Professional Appraisal Practice (USPAP).\2\ Considerable confusion and 
misunderstanding as to the applicability of USPAP provisions to Uniform 
Act real property acquisitions have existed ever since USPAP was 
published. The Uniform Act and 49 CFR Part 24 set the requirements for 
appraisal and appraisal review in support of Federal and federally-
assisted acquisition of real property for government projects.
---------------------------------------------------------------------------

    \2\ Uniform Standards of Professional Appraisal Practice 
(USPAP). Published by the Appraisal Foundation, a non-profit 
educational organization. Copies may be ordered from the Foundation 
at the following URL: http://www.appraisalfoundation.org/html/
USPAP2003/toc.htm.
---------------------------------------------------------------------------

    Appraisers who are committed to adhere to USPAP by virtue of State 
appraisal licensing or certification should look to the provisions of 
USPAP, including the scope of work, the Jurisdictional Exception Rule 
and the Supplemental Standards provisions, and their State Appraisers' 
board for guidance on how they can remain in compliance with USPAP and 
perform appraisals for Agencies following Uniform Act and 49 CFR part 
24 requirements.
    Many of the proposed provisions of Sec. Sec.  24.103 and 24.104, 
are intended to assist the appraiser, the Agency and others in 
understanding the requirements of these subparts in light of USPAP.
    We propose to change the terminology throughout this section from 
``standards'' to ``requirements'' to avoid confusion with USPAP 
standards rules. We also propose to add the phrase ``Federal and 
federally-assisted program'' to more accurately identify the type of 
appraisal practices that are to be referenced, and to differentiate 
them from private sector, especially mortgage lending, appraisal 
practice.

Section 24.103(a) Appraisal Requirements

    We propose to add a sentence indicating that these regulations set 
forth the requirements for real property acquisition appraisals for 
Federal and federally-assisted programs. This would make it clear that 
other performance standards, such as USPAP and those issued by 
professional appraisal societies, do not govern programs covered by the 
Uniform Act. We propose to reorder other sentences in the paragraph for 
greater clarity, and to add a requirement for a scope of work statement 
in each appraisal. In appendix A, we propose to add a discussion on 
preparing the scope of work. We also propose to insert the word 
``simple'' to help identify and differentiate the ``minimum 
requirements'' appraisal. We propose to move the requirements now in 
Sec.  24.103(a)(1) to the scope of work, as discussed in appendix A, 
and renumber the remaining detailed appraisal requirements (1) through 
(5).

Section 24.103(a)(3)

    To clarify the intent of this section, we propose to add language 
that describes the content of a detailed appraisal to conform with 
currently used terminology (sales comparison approach). We also propose 
to move the discussion of the Agency's authority to require only the 
market approach (sales comparison approach) to appendix A, where we 
propose it be included in the determination of the scope of work.

Section 24.103(b)

    We propose to delete the first phrase because it is redundant.

Section 24.103(d)

    We propose to specifically add ``review appraisers'' to clarify 
that they are included in this section that addresses appraiser 
qualifications. We also propose to add a discussion to appendix A to 
emphasize the need for appraisers and review appraisers to be qualified 
and competent, and that State licensing or certification can help 
provide an indication of an appraiser's abilities.

Section 24.104 Review of Appraisals

    We propose to use consistent terminology to refer to the person 
performing appraisal reviews, i.e., review appraiser. We also propose 
to add language to clarify and specify the responsibilities, 
authorities and expectations associated with appraisal review.

Section 24.104(a)

    We propose to add language that would specifically state that the 
review appraiser's examination of the appraisal must include 
examination of the presentation and analysis of market information. 
While this may not be a change from what Agencies, as a matter of 
practice, now expect of review appraisers, we believe this proposed 
language would avoid misunderstanding and confusion. Also, we propose 
to state clearly that the review appraiser is to ensure that appraisal 
performance complies with appraisal requirements in Sec.  24.103 and 
other applicable requirements, and supports the appraiser's opinion of 
value. This would avoid any misunderstanding as to the criteria for the 
review. The level of analysis and reporting would depend on the 
complexity of the appraisal and appraisal review problems. We propose 
that the report identify the appraisal report(s) reviewed, document the 
findings and conclusions arrived at during the review of the 
appraisal(s), and identify each appraisal report as rejected, accepted 
(meets all requirements, but not selected as approved), or approved (as 
the basis for the establishment of the amount believed to be just 
compensation). Identification of each appraisal report is proposed as a 
method of avoiding confusion as to the status of each reviewed 
appraisal.

Section 24.104(b)

    We propose to add language that would make it clear that the review 
appraiser may develop independent valuation information as part of the 
appraisal review process.

Section 24.104(c)

    We propose to add language that would require the review appraiser 
to prepare a written report and specify what is to be in the report.
    We also propose that the review appraiser prepare a signed 
certification, which would state the parameters of the review and the 
approved value and, if

[[Page 70348]]

appropriate, the amount believed to be just compensation to be offered 
the property owner.

Subpart C--General Relocation Requirements

Section 24.202 Applicability

    We propose to add a sentence to Sec.  24.202 that adds a 
requirement that displaced persons be fully informed of their rights 
and benefits. It has come to our attention that displaced persons have 
been asked to waive their relocation rights and benefits without being 
informed of the extent of those benefits. This proposal would protect 
and strengthen the requirement that Agencies fully inform displaced 
persons of any rights and benefits they may be eligible for under this 
part.
    This proposal is also integral to new proposed Sec.  24.207(f), 
Waiver of relocation benefits, which would prohibit Agencies from 
proposing or asking displaced persons to waive their relocation rights 
and benefits.

Section 24.203(d) Notice of Intent To Acquire

    We propose to move the definition of ``notice of intent to 
acquire'' from Sec.  24.2 ``Definitions'' to Sec.  24.203, ``Relocation 
notices,'' with a minor revision. This proposed revision would be for 
continuity and clarity.

Section 24.205 Relocation Planning, Advisory Services and Coordination

    In response to widespread concern about the inadequacy of Uniform 
Act relocation and reestablishment procedures and payments for 
displaced businesses, we sponsored the National Business Relocation 
Study \3\ (``the study''). The study, undertaken for FHWA by an 
independent consultant, investigated business relocation concerns and 
provided recommendations to develop solutions to these problems.
---------------------------------------------------------------------------

    \3\ The National Business Relocation Study (2002) is available 
for public inspection at the following URL: http//www.fhwa.dot.gov/
realestate/nbrs2002.htm.
---------------------------------------------------------------------------

    The study found that relocation assistance advisory services for 
businesses were generally considered fair to poor. Some of the findings 
specifically noted that relocation agents were not adequately trained 
or informed to address the complexities of complicated business 
relocations, and were unable to provide meaningful assistance in 
locating replacement properties.
    The changes proposed in this section are based upon the findings 
and recommendations of the study and are meant to address the added 
burden of displacement on businesses, and provide additional assistance 
to increase businesses' viability after displacement.

Section 24.205(a) Relocation Planning

    We propose to change Sec.  24.205(a) to provide additional items 
for Agencies to consider in planning for business relocations.
    The Uniform Act and this section of the regulation require Agencies 
to plan federally funded programs and projects in such a manner that 
Agencies recognize the problems associated with displacement and 
develop solutions to minimize the adverse affects of displacement. An 
Agency must engage in such planning before proceeding with any action, 
which causes displacement and should scope the plan to the complexity 
and nature of the displacing action.
    Currently, this section of the regulation provides examples of 
items to consider in relocation planning. The planning considerations 
currently include both residential and non-residential items, but 
residential planning requirements are more comprehensive than the non-
residential planning ones. We recognize that the Uniform Act requires a 
more generous ``make whole'' approach for residential displacements. 
However, we also recognize that a significant number of displaced small 
businesses have not been able to successfully relocate. Therefore, we 
propose to require the Agency to engage in planning for the problems 
associated with non-residential displacement.

Section 24.205(c)(2)(i)(A)-(F) Relocation Assistance Advisory Services

    We propose to change Sec.  24.205(c)(2)(i)(A) through (F) to 
include six specific items in personal interviews for business 
relocations. These six paragraphs are a result of our National 
Relocation Business Study and will assist in determining the future 
needs of displaced businesses.
    During the five national listening sessions, the FHWA received many 
comments concerning the lack of guidance and direction on what 
information the Agency should obtain when making personal interviews 
with businesses. The FHWA also received testimony from States and Local 
Public Agencies of actual cases where good interviewing and early 
planning is credited with preventing business closures.
    The Uniform Act and this section of the regulation requires 
Agencies to ensure that relocation assistance advisory services are 
made available to all persons displaced by the Agency. A critical 
element in any successful relocation, and also an advisory services 
requirement, is to determine the needs and preferences of displaced 
persons through a personal interview.
    Currently, this section of the regulations provides no examples of 
items for Agencies to consider in personal interviews for either 
residential or non-residential displacements. Generally, we believe 
Agencies do not need additional guidance in conducting personal 
interviews for residential displacements. However, we believe that 
specific guidance in conducting personal interviews for non-residential 
displacements is necessary to help address the added burden of 
displacement on businesses and provide additional assistance to 
increase their viability after displacement. Therefore, we have 
proposed guidance in (c)(2)(i)(A) through (F) of this section to assist 
Agencies in conducting personal interviews. This proposed change is 
based upon the findings and recommendations of the National Business 
Relocation Study.

Section 24.205(c)(2)(ii)(C) Relocation Assistance Advisory Service

    We propose to revise this section to permit any displacing agency 
that has a program objective of providing minority persons with an 
opportunity to relocate to areas outside of minority concentration to 
provide reasonable and justifiable increases in the replacement housing 
payment to facilitate such moves.

Section 24.205(c)(2)(ii)(D) Transportation

    In order to make it clear that all displaced persons must be 
offered transportation to inspect replacement housing, we propose to 
eliminate the specific reference to the elderly and handicapped in the 
current regulation.

Section 24.206 Eviction for Cause

    We propose to revise this section on eviction for cause by moving 
several of the current provisions to the new definition of eviction for 
cause in Sec.  24.2(a)(12).

Section 24.207(f) Waiver of Relocation Benefits

    We propose to implement a new requirement for ``waiver of 
relocation benefits.'' This requirement would offer more protection to 
displaced persons. It would prohibit an Agency from proposing or 
requesting a displaced person to give up his/her rights or entitlements 
to relocation assistance.

[[Page 70349]]

We do not believe that an otherwise eligible person may relieve a 
governmental body of its statutory obligation to provide Uniform Act 
assistance by agreeing to waive such assistance. The primary purpose of 
the Uniform Act is to impose requirements upon Agencies that acquire 
property and displace persons for Federal or federally-funded projects. 
The Uniform Act does not grant rights or benefits directly to 
individuals, rather it imposes duties and obligations upon Federal, 
State, and local governments.
    A statement or agreement by a displaced person who does not wish to 
receive certain assistance does not free a government Agency from the 
obligations or requirements imposed by Federal law. In such a case 
where a displaced person indicates in writing he/she does not want 
assistance, the Federal or State Agencies must still fully inform the 
displaced person of all the assistance he/she is entitled to receive.

Section 24.207(g) Entitlement to Payments

    We propose to add new paragraph (g) to Sec.  24.207 to clarify 
that, since relocation payments are considered a form of compensation, 
they do not constitute Federal financial-assistance, and accordingly, 
the expenditure of such relocation payments by a displaced person would 
not trigger further application of the Uniform Act or similarly 
applicable Federal requirements.

Section 24.208(f)(1) Aliens Not Lawfully Present in the United States

    We propose that the references to the Immigration and 
Naturalization Service (INS) in Sec.  24.208(f)(1) be revised to 
reflect the fact that the INS has become part of the Department of 
Homeland Security, and renamed the Bureau of Citizenship and 
Immigration Services (BCIS).

Subpart D--Payments for Moving and Related Expenses

    We propose to substantially reorganize Subpart D. With few 
exceptions, the basic content would remain the same; however, based 
upon the comments from our 5 national public listening sessions and 
comments from other Agencies, this subpart needs to be reorganized for 
clarity and ease of use. Accordingly, we propose to realign the 
different moving costs allowance provisions.
    We propose to divide Subpart D into six sections. We would transfer 
a number of criteria from Sec.  24.304, Reestablishment Expense, with 
its $10,000 limit, to Sec.  24.301, Payment for actual reasonable 
moving and related expenses, and Sec.  24.303, Payment for related non-
residential expenses, where there are no limits and the payment is 
determined by actual, reasonable and necessary criteria. This would 
offer greater flexibility in assisting small businesses, farms, and 
non-profit organizations by removing several relocation costs from 
inclusion in the $10,000 statutory limit placed on reestablishment 
expenses. We propose to incorporate existing Sec.  24.303 into proposed 
Sec.  24.301 with specific criteria clearly spelled out for each type 
of move.
    We propose several new paragraphs that would help clarify the 
different types of moving costs. In Sec.  24.303 we propose that 
payment would be provided for certain moving related costs that are not 
personal property but are essential to the continuance of operation of 
the business. We propose a new paragraph, Sec.  24.301(e), that would 
compensate displaced persons who are not forced to move from their 
residence or business but have personal property that must be moved 
from the acquired area.

Section 24.301(b)(3), 24.301(c)(iii) and 24.301(d)(2)(ii) Moving Cost 
Finding

    We are proposing to add a provision allowing moving expenses to be 
determined by a qualified staff person for small uncomplicated personal 
property moves, commonly called a ``moving cost finding'' or ``a 
finding.'' The proposed moving cost finding is another option available 
to the displaced person and the Agency. This option cannot be forced on 
the displaced person. The proposed moving cost finding would recognize 
an additional method of moving personal property that is currently 
being used by many Agencies. The proposed moving cost finding gives the 
Agency a cost effective and expeditious way to pay for small 
uncomplicated moves of personal property that are located outside of 
the primary dwelling or business structure(s). This method would allow 
the Agency to use qualified staff personnel to estimate the cost of 
such small-uncomplicated personal property moves and offer the option 
to the displaced person as a means of a self move. The cost would be 
capped at $3,000 and not be binding on the displaced person. The 
displaced person may elect any of the other methods to move. This 
provides both the Agency and the displaced person a quick cost 
effective way of making a self-move.

Section 24.301(e) Personal Property Only

    We propose a new paragraph that would describe the relocation 
assistance available to a displaced person for moving personal property 
from the acquisition area, when the acquisition does not require the 
relocation of a dwelling (including a mobile home), business, farms or 
nonprofit organizations. Personal property only moves might include 
moving such things as farm equipment or livestock where the related 
buildings are not affected.

Section 24.301(g)(14)(i) Actual Direct Loss of Tangible Personal 
Property

    The Uniform Act provides that a displaced business, farm or non-
profit organization is entitled to be compensated for the actual direct 
loss of tangible personal property. We propose to slightly change the 
direct loss of tangible personal property provision to eliminate much 
confusion over the term ``fair market value for continued use.'' 
Displacing Agencies are reluctant to discuss this benefit with 
displaced businesses because of the uncertainty over how to determine 
the payment.
    Therefore, we propose to strike the phrase ``fair market value of 
the item for continued use at the displacement site'' and replace it 
with ``market value of the item, less the proceeds of the sale'' to 
clarify the basis for valuing such property. This is consistent with 
the intent of the Uniform Act, 42 U.S.C. 4622(a)(2).

Section 24.301(g)(14)(ii) Actual Direct Loss of Tangible Personal 
Property

    We propose to add language to this section that would clarify what 
constitutes the estimated cost of moving when a business elects to 
discontinue the business or the business has a piece of equipment in 
storage or non-operational at the acquired site. Confusion comes from 
whether or not such an estimate, used to compute the payment for actual 
direct loss of tangible personal property, should include disconnecting 
and reconnecting costs when the business elects to discontinue 
operation or elects not to move the equipment to the replacement 
location. The proposed language would clarify those cases in which 
reconnecting costs would or would not be included in calculating the 
estimated cost of moving such equipment. We believe this would be 
consistent with the intent of the Uniform Act, to provide moving 
benefits that are actual, reasonable and necessary.

[[Page 70350]]

Section 24.301(g)(17) Searching for a Replacement Location

    We propose to move this paragraph from Sec.  24.303(a)(13) and 
increase ``searching expenses'' from $1,000 to $2,500. This amount has 
been set at $1,000 for 16 years. This proposed change is supported by 
the FHWA's National Business Relocation Study which recommended 
increasing the searching expenses. Searching expenses are intended to 
provide compensation for the actual time and effort to find a 
replacement site, which also should include reasonable costs to 
investigate the site. Such costs may include the cost of obtaining 
permits, attending zoning hearings or negotiating the purchase of a 
replacement site. We propose to provide additional insight and 
flexibility in appendix A on the application of searching expenses.

Section 24.301(g)(18) Low Value/High Bulk

    We propose to add a paragraph on low value/high bulk property. The 
current regulation does not address cases where items of personal 
property owned by a displaced business are more costly to move than 
they are worth. The proposed change would provide a procedure available 
when the personal property to be moved is of low value and high bulk 
and, in the judgment of the displacing Agency, the cost of moving the 
personal property is disproportionate to its value.

Section 24.301(h)(12) Ineligible Moving and Related Expenses.

    For clarity and uniformity, we propose to add refundable security 
and utility deposits to the list of ineligible moving expenses, Sec.  
24.301(h)(12). Since refundable deposits, by the name alone, indicates 
a return of the investment to the displaced person, we do not consider 
a refundable deposit a reimbursable expense under the Uniform Act.

Section 24.301(i)(1) and (2) Notification and Inspection

    We propose to reorganize and merge this section from four 
paragraphs into three paragraphs. We do not propose to change the 
wording. These proposed changes are for clarity and readability. The 
phrase ``The displaced person must'' is merged into the introductory 
paragraph to eliminate redundancy and provide clarity.

Section 24.302 Fixed Payment for Moving Expenses-Residential Moves

    This section provides that displaced residential owners and tenants 
may receive a moving expense payment based on the Fixed Residential 
Moving Cost Schedule \4\ approved by the FHWA. Currently, this section 
provides that the Fixed Residential Moving Cost Schedule payment made 
to a person with minimal personal possessions in occupancy of a 
dormitory style room or whose residential move is performed by an 
Agency at no cost to the individual is limited to $50. This has been 
the limit since 1987. Since this payment is included in the fixed 
residential moving cost schedule that is updated periodically, we are 
proposing to remove the $50 dollar amount from Sec.  24.302, so that 
the amount and future increases to this payment would be established by 
the Fixed Residential Moving Cost Schedule. Therefore, each time the 
schedule is updated, this payment could be updated as well. Agencies 
must be sure they are using the most current edition of the Fixed 
Residential Moving Cost Schedule.
---------------------------------------------------------------------------

    \4\ The Fixed Residential Moving Cost Schedule is available for 
public inspection at the following URL: http://www.fhwa.dot.gov/////
/realestate/fixsch96.htm.
---------------------------------------------------------------------------

Section 24.303 Related Non-Residential Eligible Expenses

    As a result of reorganizing Subpart D for convenience and clarity, 
the relocation of all items of personal property would be included in 
Sec.  24.301. We are proposing to add a new section, Sec.  24.303, that 
would provide reimbursement for several costs that are not considered 
to be personal property but are essential to the continuing operation 
of the business. These costs are additional expenses, other than for 
moving personal property, that are not covered by either Sec.  24.301 
(personal property) or Sec.  24.304 (real property.) Reimbursement for 
these expenses would be allowed if they are determined by the Agency to 
be ``actual, reasonable and necessary.''

Subpart E--Replacement Housing Payments

Section 24.401(e)(4) Incidental Expenses

    We are proposing to add professional home inspection to the list of 
reimbursable incidental expenses. Professional home inspections 
including electrical systems, plumbing, and HVAC are commonplace and 
should be added to the list of reimbursable incidental expenses. Most 
agencies are currently allowing for this expense.

Section 24.401(f) Rental Assistance Payment for 180 Day Homeowner-
Occupant

    We propose to add language that would allow a rental assistance 
payment for a 180-day homeowner, who elects to rent, instead of 
purchase, a replacement dwelling, to exceed $5,250 if the difference in 
the estimated market rent of the acquired dwelling and the rent for a 
comparable replacement dwelling support a higher figure. However, the 
rental supplemental payment would not be allowed to exceed the amount 
the 180-day owner would have received as a housing (purchase) 
supplemental payment under proposed Sec.  24.401(b). It was brought to 
our attention through the national listening sessions and through 
discussions with other Federal Agencies that this change would be fair 
and make the displaced person whole at no additional cost to the 
Agency.
    An example of the proposed change would be where an elderly couple 
who own their home may want to rent rather than purchase another home. 
Under current procedure, the Agency would compute a replacement housing 
offer, which for this example is, say, $10,000. The Agency would then 
compute a rental assistance payment based on the difference in market 
rent and an available comparable dwelling, which for this example is 
$7,000. Currently, we would only pay the maximum amount of $5,250. The 
proposed change would allow the Agency to pay the $7,000 rent 
supplement or any rent supplement up to what they would have received 
as a 180-day homeowner ($10,000 in this example) to purchase a 
replacement dwelling.
    We feel this would be a fair and equitable approach, provided the 
rent supplement does not exceed the amount the 180-day homeowner could 
receive if he or she elected to purchase a replacement dwelling, rather 
than to rent one.

Section 24.402(b)(2)(ii) Replacement Housing Payment for 90-Day 
Occupant

    We propose to slightly revise Sec.  24.402(b)(2)(ii) to reflect the 
statutory requirement that only a low-income displaced person's income 
shall be taken into consideration when calculating rental assistance 
payments for a comparable replacement dwelling (42 U.S.C. 4624(a).)
    Section 24.402(b)(2) currently uses 30 percent of a person's 
average monthly gross household income as the criteria for computing 
replacement housing payments for all eligible displaced tenants. This 
often results in large payments to existing tenants who are

[[Page 70351]]

not low income and who elect to pay more than 30 percent of their 
monthly gross household income for rental housing. This proposed change 
would be more reflective of the intent of the Uniform Act in that it 
assures consideration of income for low-income persons.
    The proposal would rely on the U.S. Department of Housing and Urban 
Development's Annual Survey of Income Limits.\5\ The proposed 
procedures in Sec.  24.402(b)(2)(ii) would continue to use the 30 
percent of monthly gross household income, but only for displaced 
persons who qualify as low income. The base monthly rental would 
continue to be established solely on the criteria in Sec.  
24.402(b)(2).
---------------------------------------------------------------------------

    \5\ The Annual Survey of Income Limits can be found at the 
following URL: http://www.huduser.org/datasets/il.html.
---------------------------------------------------------------------------

Section 24.402(c) Downpayment Assistance Payment

    For uniformity, we propose to clarify that the replacement housing 
payment received under Sec.  24.402(b) may be used for a downpayment 
assistance payment. There is a disparity among Agencies as to the 
amount that can be used as the downpayment. Most State and Federal 
Agencies currently allow the full amount of the rent supplement to be 
applied to the downpayment. Some, on the other hand, follow the 
guidance in appendix A of this regulation which limits the amount of 
the downpayment to what would ordinarily be required to obtain 
conventional loan financing for a decent, safe and sanitary dwelling. 
No such limits are included in the Uniform Act.
    Therefore, we propose to add language that would allow the 
displaced person to apply the full amount of the rent supplement to the 
downpayment on a decent, safe and sanitary dwelling. We also propose to 
slightly modify appendix A to conform to the proposed change.

Section 24.403(a) Determining Cost of Comparable Replacement Dwelling

    At the request of several Federal Agencies, we are proposing that 
Agencies pay, as a part of the reasonable cost of a comparable 
replacement dwelling, the increased real estate taxes, if any, for 
displaced 180-day owner occupants displaced as a result of a Federal or 
federally-funded project. This payment would be based on the difference 
between the monthly real estate tax on the acquired dwelling, and the 
monthly real estate tax on the replacement dwelling at the time of 
purchase but not to exceed the monthly real estate tax on a comparable 
replacement dwelling.
    The benefit would be calculated over a 24-month period. If the 
displaced person elects to purchase a replacement dwelling where the 
real estate tax at the time of purchase exceeds that of the comparable 
replacement dwelling, the increased tax payment, if any, would be 
limited to the increased monthly tax cost of the comparable replacement 
dwelling at the time of purchase for 24 months. Should the displaced 
person elect to purchase a replacement dwelling for less than the cost 
of a comparable replacement dwelling, the increased tax calculation 
would be based on the 24 month increase, if any, in the real estate tax 
of the acquired dwelling and that of the replacement dwelling at the 
time of purchase.
    The rationale for this proposal is that increased real estate taxes 
represent a real part of the cost of a replacement dwelling and are 
often a financial burden, particularly for displaced persons with fixed 
incomes, such as social security. Other situations could arise where a 
displaced person that purchases a new home may lose his/her grand-
fathered real estate tax rate privileges and be subject to a higher 
real estate tax rate. The proposal would comport with the spirit and 
purpose of the Uniform Act, which is to treat displaced persons fairly 
by ensuring that they are able to relocate to a replacement dwelling 
that is comparable to the dwelling from which they were displaced.

Section 24.403(a)(1) Adjustment of Comparables

    We propose to remove the requirement that Agencies adjust the 
asking price of the comparable replacement dwelling in computing 
replacement housing payments. Currently, this section bases a displaced 
person's replacement housing payment on the adjusted difference between 
the asking price and the selling price of a comparable replacement 
dwelling as determined by an Agency survey of the area. This 
requirement, because it can provide a replacement housing payment that 
is different than the price of a comparable dwelling, is burdensome and 
forces the displaced person to become a negotiator. This imposes an 
unnecessary obligation on the displaced person for which he/she 
probably is not qualified. Removing this requirement also would relieve 
the Agency of the administrative burden of conducting a market survey 
to determine the adjusted sales value. The procedure for determining a 
comparable dwelling would not change, only the current requirement to 
adjust the price of the selected comparable dwelling would be 
eliminated. The replacement housing payment would be based on the list 
price of the comparable dwelling not the adjusted price. Additionally, 
the reference to the adjustment of comparable replacement dwellings in 
Appendix A would be removed.

Subpart F--Mobile Homes

    Based upon the comments from our five national public listening 
sessions and comments from the other Agencies, we are proposing to 
reorganize Subpart F for clarity and ease of use. The basic content 
would remain unchanged.
    We propose to move the required determinations to distinguish a 
mobile home displacement as either an acquisition of real property or 
as a move of personal property, to the eligibility paragraph in Sec.  
24.502.
    Subpart E provides replacement housing payments for an owner 
occupant or tenant occupant displaced from a conventional dwelling. 
Subpart F provides similar payments for an owner occupant or tenant 
that is displaced from an acquired mobile home. However, mobile homes 
may instead be considered personal property and relocated, not 
purchased, which in turn may lead to the determination that the 
occupant is not displaced from his/her dwelling. The proposed 
reorganization merely consolidates the necessary displacement 
determination, locating each with the applicable payment eligibility 
provisions.
    We propose to eliminate Sec.  24.505 (Additional rules governing 
relocation payments to mobile home occupants), and consolidate its 
provisions into the following paragraphs in which they are more closely 
affiliated: Sec.  24.501 (Applicability); Sec.  24.502 (currently Sec.  
24.503--Replacement housing payment for 180-day mobile homeowner-
occupants); and Sec.  24.503 (currently Sec.  24.504 --Replacement 
housing payment for 90-day mobile home occupants.) Also, as previously 
discussed in the preamble to Subpart D, we propose to consolidate the 
moving provisions in Sec.  24.301(g)(8) through (g)(10).

Section 24.502(b) Replacement Housing Payment Computation for a 180-Day 
Owner Displaced From a Mobile Home

    We propose to modify and consolidate Sec.  24.502(b) that provides 
for payment of actual moving expenses with the criteria for replacement 
housing payments in those cases where the displacing Agency determines 
the homeowner is displaced from the

[[Page 70352]]

mobile home for the reasons described in Sec.  24.502(a)(3).

Section 24.502(c) Rental Assistance Payment for a 180-Day Owner-
Occupant Displaced From Acquired Leased or Rented Site

    We propose to allow the displaced person to claim the computed 
rental assistance payment if it is applied towards the purchase of a 
replacement site or added to the eligible purchase price of a 
conventional dwelling or mobile home. This would eliminate the 
confusion over combining the two payments (mobile home and mobile home 
site) in the purchase of a conventional dwelling. The justification 
being that when buying a conventional dwelling, the land and dwelling 
are one; whereas, in many instances with mobile homes, the displaced 
person owns the mobile home but rents the land. Therefore, in the case 
where the mobile home owner buys a conventional dwelling we would allow 
the rental supplement on the land (site) to be added to the housing 
supplement, not to exceed the statutory limit of $22,500 (unless the 
housing supplement is in Housing of Last Resort). The total payment 
must be used toward the purchase of replacement decent, safe and 
sanitary housing.

Distribution Tables

    For ease of reference, distribution and derivation tables are 
provided for the current sections and the proposed sections, as 
follows:

                           Distribution Table
------------------------------------------------------------------------
              Old section                          New section
------------------------------------------------------------------------
                                Subpart A
------------------------------------------------------------------------
24.1...................................  24.1 Text unchanged.
24.1(b)................................  24.1(b) Revised.
24.2 Heading...........................  24.2 Heading revised.
None...................................  24.2(a) Introductory para.
                                          added.
Agency.................................  24.2(a)(1) Paras. revised.
Alien not lawfully present in the        24.2(a)(2) Paras. redesignated.
 United States.
Appraisal..............................  24.2(a)(3) Redesignated.
Business...............................  24.2(a)(4) Redesignated.
Citizen................................  24.2(a)(5) Redesignated.
Comparable replacement dwelling........  24.2(a)(6) Redesignated.
    (1) and (2)........................  24.2(a)(6)(i) and (ii)
                                          Redesignated and revised.
    (3) through (6)....................  24.2(a)(6)(iii) through (vi)
                                          Redesignated and text
                                          unchanged.
    (7) and (8)........................  24.2(a)(6)(vii) and (viii)
                                          Redesignated and revised.
None...................................  24.2(a)(6)(ix) Added.
Contribute materially..................  24.2(a)(7) Redesignated and
                                          text unchanged.
Decent, safe, and sanitary dwelling....  24.2(a)(8) Redesignated and
                                          revised.
    (1)................................  24.2(a)(8) Redesignated and
                                          text unchanged.
    None...............................  24.2(a)(8) Added.
    (2) and (3)........................  24.2(a)(8)(iii) and (iv)
                                          Redesignated and text
                                          unchanged.
    (4)................................  24.2(a)(8)(v) and (vi)
                                          Redesignated and revised.
    (5) and (6)........................  24.2(a)(8)(vii) and (viii)
                                          Redesignated and revised.
Displaced person.......................  24.2(a)(9) All paras.
                                          redesignated.
Displaced person (1)(i)................  24.2 (a)(9)(i)(A) Revised.
Displaced person (1)(iii)..............  24.2 (a)(9)(i)(C) Revised.
Displaced person (2)(v)................  24.2(a)(9)(ii)(E) Revised.
Displaced person (2)(vii)..............  24.2(a)(9)(ii)(G) Revised.
Displaced person (2)(xi)...............  24.2(a)(9)(ii)(K) Revised.
Dwelling...............................  24.2(a)(10) Redesignated.
None...................................  24.2(a)(11) Added.
None...................................  24.2(a)(12) Added.
Farm operation.........................  24.2(a)(13) Redesignated.
Federal financial assistance...........  24.2(a)(14) Revised.
None...................................  24.2(a)(15) Added.
Initiation of negotiations--Intro. Para  24.2(a)(16)Intro. para.
                                          Redesignated and text
                                          unchanged.
    (1) through(3).....................  24.2(a)(16)(i) through (iii)
                                          Redesignated and text
                                          unchanged.
    None...............................  24.2(a)(16)(iv) Added.
Lead agency............................  24.2(a)(17) Redesignated.
None...................................  24.2(a)(18) Added.
Mortgage...............................  24.2(a)(19) Redesignated.
Nonprofit organization.................  24.2(a)(20) Redesignated.
Notice of intent to acquire or notice    24.203(d) Revised.
 of eligibility for relocation
 assistance.
Owner of a dwelling....................  24.2(a)(21) Revised.
Person.................................  24.2(a)(22) Redesignated.
Program or project.....................  24.2(a)(23) Redesignated.
Salvage value..........................  24.2(a)(24) Revised.
Small business.........................  24.2(a)(25) Redesignated.
State..................................  24.2(a)(26) Redesignated.
Tenant.................................  24.2(a)(27) Redesignated.
Uneconomic remnant.....................  24.2(a)(28) Redesignated.
Uniform Act............................  24.2(a)(29) Revised.
Unlawful occupancy.....................  24.2(a)(30) Revised.
Utility costs..........................  24.2(a)(31) Redesignated.
Utility facility.......................  24.2(a)(32) Redesignated.

[[Page 70353]]

 
Utility relocation.....................  24.2(a)(33) Redesignated.
None...................................  24.2(a)(34) Added.
None...................................  24.2(b) Added.
24.3...................................  24.3 Revised.
24.4(a)(1) and (2).....................  24.4(a)(1) and (2) Text
                                          unchanged.
None...................................  24.4(a)(3) Added.
24.4(a)(3).............................  24.4(a)(4) Revised.
24.4(b) and (c)........................  24.4(b) and (c) Text unchanged.
24.5 through 24.7......................  24.5 through 24.7 Text
                                          unchanged.
24.8 (a) through (g)...................  24.8(a) through (g) Text
                                          unchanged.
24.8(h)................................  24.8(h) Revised.
24.8(i)................................  24.8(i) Revised.
24.8(j) through (l)....................  24.8(j) through (l) Text
                                          unchanged.
24.8(m)................................  24.8(m) Removed.
24.8(n)................................  24.8(m) Redesignated.
None...................................  24.8(n) Added
24.9(a) and (b)........................  24.9(a) and (b) Text unchanged.
24.9(c)................................  24.9(c) Revised.
24.10(a) through (f)...................  24.10(a) through (f) Text
                                          unchanged.
24.10(g) and (h).......................  24.10(g) and (h) Revised.
------------------------------------------------------------------------
                                Subpart B
------------------------------------------------------------------------
24.101 Heading.........................  24.101 Heading Text unchanged.
24.101(a)..............................  24.101(a) Revised.
24.101(a) Second para..................  24.101(b) Redesignated and
                                          revised.
24.101(a)(1)...........................  24.101(b)(1) Redesignated and
                                          revised.
24.101(a)(1)(i)........................  24.101(b)(1)(i) Redesignated
                                          and revised.
24.101(a)(1)(ii) and (iii).............  24.101(b)(1)(ii) and (iii)
                                          Redesignated.
24.101(a)(1)(iv).......................  24.101(b)(1)(iv) Redesignated
                                          and revised.
24.101(a)(2)...........................  24.101(b)(2) Redesignated.
24.101(a)(2)(i)........................  24.101(b)(2)(i) Redesignated.
24.101(a)(2)(ii).......................  24.101(b)(2)(ii) Redesignated
                                          and revised.
24.101(a)(3) and (4)...................  24.101(b)(3) and (4)
                                          Redesignated.
24.101(a)(5)...........................  24.101(b)(5) Redesignated and
                                          revised.
24.101(b)..............................  24.101(c) Redesignated and
                                          revised.
24.101(c)..............................  24.101(d) Redesignated and
                                          revised.
24.102(a)..............................  24.102(a) Text unchanged.
24.102(b)..............................  24.102(b) Revised.
24.102(c) Intro. para..................  24.102(c) Intro. para. Text
                                          unchanged.
24.102(c)(1) through (e) Intro. para...  24.102(c)(1) through (e) Intro
                                          para. Revised.
24.102(e)(1) and (2)...................  24.102(e)(1) and (2) Text
                                          unchanged.
24.102(e)(3)...........................  24.102(e)(3) Revised.
24.102(f)..............................  24.102(f) Revised.
24.102(g) and (h)......................  24.102(g) and (h) Text
                                          unchanged.
24.102(i) through (k)..................  24.102(i) through (k) Revised.
24.102 (l).............................  24.102 (l) Text unchanged.
24.102(m)..............................  24.102(m) Revised.
None...................................  24.102(n) Added.
24.103 Heading.........................  24.103 Heading Text unchanged.
24.103(a)..............................  24.103(a) Revised.
24.103(a)(1)...........................  Appendix 24.103(a).
24.103(a)(2)...........................  24.101(a)(1) Redesignated and
                                          text unchanged.
24.103(a)(3)...........................  24.103(a)(2) Redesignated and
                                          revised.
24.103(a)(4) through (6)...............  24.103(a)(3) through (5)
                                          Redesignated.and text
                                          unchanged.
24.103(b) and (c)......................  24.103(b) and (c) Revised.
24.103(d) Heading and (d)(1)...........  24.103(d) Heading and (d)(1)
                                          Revised.
24.103(d)(2)...........................  24.103(d)(2) Text unchanged.
24.103(e)..............................  24.102(n) Redesignated and
                                          revised.
24.104 Introductory para...............  24.104 Introductory para. Text
                                          unchanged.
24.104(a), (b) and (c).................  24.104(a), (b) and (c) Revised.
24.105(a) and (b)......................  24.105(a) and (b) Text
                                          unchanged.
24.105(c)..............................  24.105(c) Revised.
24.105(d) Introductory para............  24.105(d) Introductory para.
                                          Revised.
24.105(d)(1) through 24.105(e).........  24.105(d)(1) through 24.105(e)
                                          Text unchanged.
24.106(a)..............................  24.106(a) Text unchanged.
24.106(b)..............................  24.106(b) Revised.
24.107 through 24.108..................  24.107 through 24.108 Text
                                          unchanged.
------------------------------------------------------------------------
                                Subpart C
------------------------------------------------------------------------
24.201.................................  24.201 Text unchanged.

[[Page 70354]]

 
24.202.................................  24.202 Revised.
24.203 (a) and (a)(1)..................  24.203(a) and (a)(1) Text
                                          unchanged
24.203(a)(2) through (5)...............  24.203(a)(2)-(5) Revised.
24.203(b) and (c)......................  24.203(b) and (c) Text
                                          unchanged.
None...................................  24.203(d) Added.
24.204(a)..............................  24.204(a) Revised.
24.204(a)(1) through (c)...............  24.204(a)(1) through (c) Text
                                          unchanged.
24.205(a)..............................  24.205(a) Revised.
24.205(a)(1) and (2)...................  24.205(a)(1) and (2) Revised.
24.205(a)(3)...........................  24.205(a)(3) Text unchanged.
None...................................  24.205(a)(4) Added.
24.205(a)(4)...........................  24.205(a)(5) Redesignated.
24.205(b) through 24.205(c)(2).........  24.205(b) through 24.205(c)(2)
                                          Text unchanged.
24.205(c)(2)(i)........................  24.205(c)(2)(i) Revised.
None...................................  24.205(c)(2)(i)(A) through (F)
                                          Added.
24.205(c)(2)(ii) and (c)(2)(ii)(A).....  24.205(c)(2)(ii) and
                                          (c)(2)(ii)(A) Text unchanged.
24.205(c)(2)(ii)(B) through (E)........  24.205(c)(2)(ii)(B) through (E)
                                          Revised.
None...................................  24.205(c)(2)(ii)(F) Added.
24.205(c)(2)(iii) through (v)..........  24.205(c)(2)(iii) through (v)
                                          Text unchanged.
24.205(c)(2)(vi).......................  24.205(e) Redesignated and text
                                          unchanged.
None...................................  24.205(c)(2)(vi) Added.
24.205(d)..............................  24.205(d) Text unchanged.
24.206 Introductory paragraph..........  24.206 Revised.
24.206(a) and (b)......................  24.2(a)(12)(i) and (ii)
                                          Redesignated and revised.
24.206(c)..............................  24.206 Redesignated and
                                          revised.
24.207(a) through (d)(1)...............  24.207(a) through (d)(1) Text
                                          unchanged.
24.207(d)(2)...........................  24.207(d)(2) Revised.
24.207(e)..............................  24.403(a)(5) Redesignated.
24.207(f)..............................  24.403(a)(6) Redesignated
24.207(g)..............................  24.207(e) Redesignated.
None...................................  24.207(f) and (g) Added.
24.208 Intro. para.....................  24.208 Intro. para. Text
                                          unchanged.
24.208(a) through (f) Intro. para......  24.208(a) through (f) Intro.
                                          para. Text unchanged.
24.208(f)(1)...........................  24.208(f)(1) Revised.
24.208(f)(2) through 24.209............  24.208(f)(2) through 24.209
                                          Text unchanged.
------------------------------------------------------------------------
                                Subpart D
------------------------------------------------------------------------
24.301 Heading.........................  24.301 Heading Revised.
24.301 Introductory paragraph..........  24.301(a) Redesignated and
                                          revised.
None...................................  24.301(a) Added.
24.301(a) and (b)......................  24.301(g)(1) and (g)(2)
                                          Redesignated and text
                                          unchanged.
None...................................  24.301(b) Added.
24.301(c)..............................  24.301(g)(3) Redesignated
None...................................  24.301(c) Added.
24.301(d) through (f)..................  24.301(g)(4) through (g)(6)
                                          Redesignated.
None...................................  24.301(d) through (f) Added.
24.301(g)..............................  24.301(g)(7) Revised.
None...................................  24.301(g)(18) Added.
None...................................  24.301(h) through (j) Added.
24.302.................................  24.302 Revised.
24.303.................................  24.303 Revised.
24.303(a) through (a)(14)..............  24.301(g)(1) through (g)(17)
                                          Redesignated and revised.
24.303(b) through (b)(3)...............  24.301(i)(1) and (2)
                                          Redesignated and revised.
24.303(c)..............................  24.301(d) Redesignated and
                                          revised.
24.303(d)..............................  24.301(j) Redesignated and text
                                          unchanged.
24.303(e) through (e)(2)...............  24.301(f) through (f)(2)
                                          Redesignated and text
                                          unchanged.
24.304 Heading.........................  24.304 Heading Text unchanged.
24.304 Introductory para...............  24.304 Introductory para.
                                          Revised.
24.304(a) through (a)(3)...............  24.304(a) through (a)(3) Text
                                          unchanged.
24.304(a)(4)...........................  24.303(a) Redesignated.
24.304(a)(5)...........................  24.304(a)(4) Redesignated.
24.304(a)(6)...........................  24.301(g)(11) Redesignated.
24.304(a)(7)...........................  24.303(b) Redesignated and
                                          revised.
24.304(a)(8)...........................  24.304(a)(5) Redesignated.
24.304(a)(9)...........................  24.303(b) Redesignated and
                                          revised.
24.304(a)(10)..........................  24.304(a)(6) Redesignated.
24.304(a)(11)..........................  24.303(c) Redesignated and
                                          revised.
24.304(a)(12)..........................  24.304(a)(7) Redesignated.
24.304(b)(1) through (3)...............  24.304(b)(1) through (3) Text
                                          unchanged.
24.304(b)(4)...........................  24.304(b)(4) Revised.
24.305 section heading.................  24.305 Removed.

[[Page 70355]]

 
24.305(a) through (k)..................  24.301(h) through (h)(11)
                                          Redesignated and revised.
None...................................  24.305(h)(12) Added.
24.306 section heading.................  24.305 Redesignated.
24.306(a)..............................  24.305(a) Redesignated and
                                          revised.
24.306(a)(1) through (a)(5)............  24.305(a)(1) through (a)(5)
                                          Redesignated and text
                                          unchanged.
24.306(a)(6)...........................  24.305(a)(6) Revised.
24.306(b)..............................  24.305(b) Revised.
24.306(c)..............................  24.305(c) Revised.
24.306(c)(1) through (d)...............  24.305(c)(1) through (d)
                                          Redesignated.
24.306(e)..............................  24.305(e) Revised.
24.307 section heading.................  24.306 Redesignated.
24.307(a) through (b)..................  24.306(a) through (b)
                                          Redesignated.
24.307(c)..............................  24.306(c) Revised.
------------------------------------------------------------------------
                                Subpart E
------------------------------------------------------------------------
24.401 through 24.401(b)...............  24.401 through 24.401(b) Text
                                          unchanged.
24.401(c)..............................  24.401(c) Text unchanged.
24.401(c)(1)...........................  24.401(c)(1) Revised.
24.401(c)(1)(i) and (ii)...............  24.401(c)(1)(i) and (ii) Text
                                          unchanged.
24.401(c)(2)...........................  24.403(a)(7) Redesignated and
                                          revised.
24.401(c)(3)...........................  24.403(g) Redesignated and
                                          revised.
24.401(c)(4)...........................  24.401(c)(2) Redesignated and
                                          text unchanged.
24.401(c)(4)(i)........................  24.401(c)(2)(i) Redesignated
                                          and text unchanged.
24.401(c)(4)(ii) and (iii).............  24.401(c)(2)(ii) and (iii)
                                          Redesignated and revised.
24.401(c)(4)(iv).......................  24.401(c)(2)(iv) Redesignated
                                          and text unchanged.
24.401(d) through 24.401(e)(3).........  24.401(d) through 24.401(e)(3)
                                          Text unchanged.
24.401(e)(4)...........................  24.401(e)(4) Revised.
24.401(e)(5) through (e)(3)............  24.401(e)(5) through (e)(9)
                                          Text unchanged.
24.401(f)..............................  24.401(f) Revised.
24.402(a) through (b)(2)(i)............  24.402(a) through (b)(2)(i)
                                          Text unchanged.
24.402(b)(2)(ii).......................  24.402(b)(2)(ii) Revised.
24.402(b)(2)(iii) and (b)(3)...........  24.402(b)(2)(iii) and (b)(3)
                                          Text unchanged.
24.402(c)(1)...........................  24.402(c)(1) Revised.
24.402(c)(2)...........................  24.402(c)(2) Text unchanged.
24.403 Heading.........................  24.403 Text unchanged.
24.403(a) and (a)(1)...................  24.403(a) and (a)(1) Revised.
24.403(a)(2) through (4)...............  24.403(a)(2) through (4) Text
                                          unchanged.
None...................................  24.403(a)(5) through (7) Added.
24.403(b)..............................  24.403(b) Revised.
24.403(c) through (f)(1)...............  24.403(c) through (f)(1) Text
                                          unchanged.
24.403(f)(2)...........................  24.403(f)(2) Revised.
24.403(f)(3)...........................  24.403(f)(3) Text unchanged.
None...................................  24.403(g) Added.
24.404(a) through 404(a)(2)(ii)........  24.404(a) through 404(a)(2)(ii)
                                          Text unchanged.
24.404(a)(2)(iii)......................  24.404(a)(2)(iii) Revised.
24.404(b) through 404(c)(1)............  24.404(b) through 404(c)(1)
                                          Text unchanged.
24.404(b) through 404(c)(1)(i).........  24.404(b) through 404(c)(1)(i)
                                          Revised.
24.404(c)(ii) through 404(c)(1)(vi)....  24.404(c)(ii) through
                                          404(c)(1)(vi) text unchanged.
24.404(c)(1)(vii)......................  24.404(c)(1)(vii) Revised.
24.404(c)(1)(viii).....................  24.404(c)(1)(viii) Text
                                          unchanged.
24.404(c)(2)...........................  24.404(c)(2) Revised.
24.404(c)(3)...........................  24.404(c)(3) Text unchanged.
------------------------------------------------------------------------
                                Subpart F
------------------------------------------------------------------------
24.501 Heading.........................  24.501 Heading Text unchanged.
24.501 Intro. para.....................  24.501(a) Revised.
None...................................  24.501(b) Added.
24.502(b) through (b)(3)...............  24.301(f)(8) through (f)(10)
                                          Redesignated and revised.
24.503 section heading.................  24.502 Redesignated and
                                          revised.
24.503(a)..............................  24.502(a) Redesignated and
                                          revised.
24.503(a)(1)...........................  24.502(a)(1) Revised.
None...................................  24.502(a)(1)(i) through (iii)
                                          Added.
24.503(a)(2) through (3)...............  24.502(a)(2) through (3)
                                          Redesignated and text
                                          unchanged.
24.503(a)(3)...........................  24.502(a)(3) Revised.
24.503(a)(3)(i) through (iv)...........  24.502(a)(3)(i) through (iv)
                                          Redesignated and text
                                          unchanged.
None...................................  24.502(b)(1) Added.
24.503(b)..............................  24.502(b)(2) Revised.
None...................................  24.502 (c) through (e) Added.
24.504 Heading.........................  24.503 Heading Redesignated and
                                          text unchanged.
24.504 Intro. para.....................  24.503 Intro. para.
                                          Redesignated.

[[Page 70356]]

 
24.504(a) and (b)......................  24.503(a) and (b) Redesignated
                                          and text unchanged.
24.504(c)..............................  24.503(c) Redesignated and
                                          revised.
24.505(a) through (e)..................  24.505(a) through (e) Removed.
24.505(e)..............................  24.501(b) Redesignated.
24.601.................................  24.601 Text unchanged.
24.602.................................  24.602 Revised.
24.603.................................  24.603 Text unchanged.
------------------------------------------------------------------------


                            Derivation Table
------------------------------------------------------------------------
              New section                          Old section
------------------------------------------------------------------------
24.1...................................  24.1.
24.2(a)................................  None.
24.2(a)(1).............................  24.2 Agency.
24.2(a)(2).............................  24.2 Alien not lawfully present
                                          in the United States.
24.2(a)(3).............................  24.2 Appraisal.
24.2(a)(4).............................  24.2 Business.
24.2(a)(5).............................  24.2 Citizen.
24.2(a)(6).............................  24.2 Comparable replacement
                                          dwelling.
24.2(a)(6)(ix).........................  None.
24.2(a)(7).............................  24.2 Contribute materially.
24.2(a)(8).............................  24.2 Decent, safe, and sanitary
                                          dwelling.
24.2(a)(8)(i)..........................  24.2 Decent, safe, and sanitary
                                          dwelling, Para. (1).
24.2(a)(8)(ii).........................  None.
24.2(a)(8)(iii)........................  24.2 Decent, safe, and sanitary
                                          dwelling, Para. (2).
24.2(a)(8)(iv).........................  24.2 Decent, safe, and sanitary
                                          dwelling, Para. (3).
24.2(a)(8)(v)..........................  24.2 Decent, safe, and sanitary
                                          dwelling, Para. (4), First
                                          sentence.
24.2(a)(8)(vi).........................  24.2 Decent, safe, and sanitary
                                          dwelling, Para. (4), All text
                                          after first sentence.
24.2(a)(8)(vii) and (viii).............  24.2 Decent, safe, and sanitary
                                          dwelling, Paras. (5) and (6).
24.2(a)(9).............................  24.2 Displaced person.
24.2(a)(10)............................  24.2 Dwelling.
24.2(a)(11)............................  None.
24.2(a)(12)............................  24.206 Intro. para.
24.2(a)(12)(i) and (ii)................  24.206(a) and (b).
24.2(a)(13)............................  24.2 Farm operation.
24.2(a)(14)............................  24.2 Federal financial
                                          assistance.
24.2(a)(15)............................  None.
24.2(a)(16)............................  24.2 Initiation of
                                          negotiations.
24.2(a)(17)............................  24.2 Lead Agency.
24.2(a)(18)............................  None.
24.2(a)(19)............................  24.2 Mortgage.
24.2(a)(20)............................  24.2 Nonprofit organization.
24.2(a)(21)............................  24.2 Owner of a dwelling.
24.2(a)(22)............................  24.2 Person.
24.2(a)(23)............................  24.2 Program or project.
24.2(a)(24)............................  24.2 Salvage value.
24.2(a)(25)............................  24.2 Small business.
24.2(a)(26)............................  24.2 State.
24.2(a)(27)............................  24.2 Tenant.
24.2(a)(28)............................  24.2 Uneconomical remnant.
24.2(a)(29)............................  24.2 Uniform Act.
24.2(a)(30)............................  24.2 Unlawful occupancy.
24.2(a)(31)............................  24.2 Utility costs.
24.2(a)(32)............................  24.2 Utility facility.
24.2(a)(33)............................  24.2 Utility relocation.
24.2(a)(34)............................  None.
24.2(b)................................  None.
24.8(m)................................  24.8(n).
24.8(n)................................  None.
24.101(b)..............................  24.101(a) 2nd para.
24.101(b)(1)...........................  24.101(a)(1).
24.101(b)(1)(i)........................  24.101(a)(1)(i).
24.101(b)(1)(ii).......................  24.101(a)(1)(ii).
24.101(b)(1)(iii)......................  24.101(a)(1)(iii).
24.101(b)(1)(iv).......................  24.101(a)(1)(iv).
24.101(b)(2)...........................  24.101(a)(2).
24.101(b)(2)(i)........................  24.101(a)(2)(i).
24.101(b)(2)(ii).......................  24.101(a)(2)(ii).
24.101(b)(3)...........................  24.101(a)(3).

[[Page 70357]]

 
24.101(b)(4)...........................  24.101(a)(4).
24.101(b)(5)...........................  24.101(a)(5).
24.101(c)..............................  24.101(b).
24.101(d)..............................  24.101(c).
24.102(n)..............................  24.103(e).
24.103(a)(1)...........................  24.103(a)(2).
24.103(a)(2)...........................  24.103(a)(3).
24.103(a)(3)...........................  24.103(a)(4).
24.103(a)(4)...........................  24.103(a)(5).
24.103(a)(5)...........................  24.103(a)(6).
24.203(d)..............................  24.2 Notice of intent to
                                          acquire.
24.205(a)(4)...........................  None.
24.205(a)(5)...........................  24.205(a)(4).
24.205(c)(2)(i)(A) through (F).........  None.
24.205(c)(2)(ii)(F)....................  None.
24.205(c)(2)(vi).......................  Added.
24.205(e)..............................  24.205(c)(2)(vi) Redesignated
                                          and text unchanged.
24.206.................................  24.206 Intro. para. and
                                          24.206(c).
24.207(e)..............................  24.207(g)
24.207(f) and (g)......................  Added.
24.301(a)..............................  24.303(a) and 24.502(b).
24.301(a)(1)...........................  24.502(a).
24.301(b)..............................  None.
24.301(b)(1) and (2)...................  24.301 Intro. para.
24.301(b)(1)...........................  24.303(a).
24.301(b)(2)(i)........................  24.302 First sentence.
24.301(b)(3)...........................  None.
24.301(c)..............................  None.
24.301(d)..............................  24.303(a) and (c).
24.301(d)(1) and (2)...................  24.303(c).
24.301(f)..............................  24.303(e).
24.301(f)(8) through (10)..............  24.502(b) through (b)(3)
24.301(g)(1)...........................  24.301(a) and 24.303(a)(1).
24.301(g)(2)...........................  24.301(b) and 24.303(a)(2).
24.301(g)(3)...........................  24.301(a) and 24.303(a)(3).
24.301(g)(4)...........................  24.301(d) and 24.303(a)(4).
24.301(g)(5)...........................  24.301(e) and 24.303(a)(5).
24.301(g)(6)...........................  24.301(f) and 24.303(a)(7).
24.301(g)(7)...........................  24.301(g) and 24.303(a)(14).
24.301(g)(8)...........................  24.502(b)(1).
24.301(g)(9)...........................  24.502(b)(2).
24.301(g)(10)..........................  24.502(b)(3).
24.301(g)(11)..........................  24.303(a)(6).
24.301(g)(12)..........................  24.303(a)(8).
24.301(g)(12)(i) through (iii).........  24.303(a)(8)(i) through (iii).
24.301(g)(13) through (17).............  24.303(a)(9) through (13).
24.301(g)(18)..........................  None.
24.301(h)(1) through (11)..............  24.305(a) through (k).
24.301(i)..............................  24.303(b).
24.301(j)..............................  24.303(d).
24.303 Intro. para.....................  23.303 Intro. para.
24.303(a)..............................  24.304(a)(4).
24.303(b)..............................  24.304(a)(7) and (a)(9).
24.303(c)..............................  24.304(a)(11).
24.304(a)(4)...........................  24.304(a)(5).
24.304(a)(5)...........................  24.304(a)(8).
24.304(a)(6)...........................  24.304(a)(10).
24.304(a)(7)...........................  24.304(a)(12).
24.304(b)..............................  24.305(b).
24.305 and 24.305(a) and (b)...........  24.306 and 24.306(a) and (b).
24.305(b)(1) through (4)...............  24.306(b)(1) through (4).
24.305(c) through (e)..................  24.306(c) through (e).
24.306.................................  24.307.
24.401(c)(2)...........................  24.401(c)(4).
24.403(a)(5)...........................  24.207(e).
24.403(a)(6)...........................  24.207(f).
24.403(a)(7)...........................  24.401(c)(2).
24.403(g)..............................  24.401(c)(3).
24.501(a)..............................  24.501 Intro. para.
24.501(b)..............................  24.505(e).
24.502 Heading.........................  24.503.
24.502(a)..............................  24.503(a)(1).

[[Page 70358]]

 
24.502(a)(1)...........................  24.503(a)(1).
24.502(a)(2) and (3)...................  24.503(a)(2) and (3).
24.502(b)..............................  24.503(b).
24.502(b)(1)...........................  None.
24.502(b)(2)...........................  24.503(a)(3) and 503(b).
24.502(c)..............................  24.505(a).
24.502(d)..............................  24.503(a)(3)(iii).
24.502(e)..............................  24.505(b)(2).
24.503.................................  24.504.
------------------------------------------------------------------------

Public Meetings

    Public meetings will be held on January 15, 22, and 28, 2004. The 
January 15, 2004 meeting will be held in Washington, DC, United States 
Department of Transportation, 400 7th Street SW., Room 8236; the 
January 22, 2004 meeting will be held in Lakewood, CO, Zang Building, 
Conference Room 360, 555 Zang Street. The January 28, 2004 meeting will 
be held in Atlanta, GA, Atlanta Federal Center, Conference Room B, 61 
Forsyth Street, SW., Atlanta, Georgia. Each meeting will be held from 
10 am to 2 pm.

Rulemaking Analyses and Notices

    All comments received before the close of business on the comment 
closing date indicated above will be considered and will be available 
for examination in the docket at the above address. Comments received 
after the comment closing date will be filed in the docket and will be 
considered to the extent practicable. In addition to late comments, the 
FHWA will also continue to file relevant information in the docket as 
it becomes available after the comment period closing date, and 
interested persons should continue to examine the docket for new 
material. A final rule may be published at any time after close of the 
comment period.

Executive Order 12866 (Regulatory Planning and Review) and DOT 
Regulatory Policies and Procedures

    The FHWA has determined preliminarily that this action would not be 
a significant regulatory action within the meaning of Executive Order 
12866, nor would it be significant within the meaning of Department of 
Transportation regulatory policies and procedures. It is anticipated 
that the economic impact of this rulemaking would be minimal.
    This action proposes to update and streamline the Uniform Act 
regulation and does not propose any new initiatives. We have proposed 
only nominal adjustments to enhance services and payments to persons 
displaced by Federal and federally-assisted real property acquisitions. 
The costs of the increased benefits will continue to be funded through 
Federal and federally-assisted project funds. These proposed changes 
would assist the 18 Federal Agencies that acquire real property and 
several of these Agencies provided input in developing these proposals.
    These proposed changes would not adversely affect, in a material 
way, any sector of the economy. These changes would assist Agencies in 
developing their programs that acquire real property by providing 
increased assistance, especially for businesses, farms and non-profit 
organizations. None of the proposed changes would materially alter the 
budgetary impact of any entitlements, grants, user fees, or loan 
programs. Consequently, a full regulatory evaluation is not required.

Regulatory Flexibility Act

    In compliance with the Regulatory Flexibility Act (Pub. L. 96-354, 
5 U.S.C. 601-612) the FHWA has evaluated the effects of this proposed 
action on small entities and has determined that the proposed action 
would not have a significant economic impact on a substantial number of 
small entities.
    This action proposes to update the governmentwide regulation that 
provides assistance for persons, including small businesses, displaced 
by government acquisition of real property. One of the reasons for 
proposing the update is to increase assistance for displaced small 
businesses. We anticipate this proposal would have a positive impact on 
those relatively few small businesses that are affected by government 
acquisition of real property. Financial impacts on local governments 
are mitigated by the fact that any increased costs would accrue only on 
federally-assisted programs, which would include participation of 
Federal funds. For these reasons, the FHWA certifies that this action 
would not have a significant economic impact on a substantial number of 
small entities.

Unfunded Mandates Reform Act of 1995

    This proposed rule would not impose unfunded mandates as defined by 
the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4, March 22, 
1995, 109 Stat. 48). The proposed updates are applicable only on 
Federal and federally-assisted programs. This proposed rule will not 
result in the expenditure by State, local, and tribal governments, in 
the aggregate, or by the private sector, of $100 million or more in any 
one year (2 U.S.C. 1532).

Executive Order 13132 (Federalism)

    This proposed action has been analyzed in accordance with the 
principles and criteria contained in Executive Order 13132, and the 
FHWA has determined that this proposed action would not have a 
substantial direct effect or sufficient federalism implications on 
States that would limit the policymaking discretion of the States. The 
FHWA has also determined that this proposed action would not preempt 
any State law or State regulation or affect the States' ability to 
discharge traditional State governmental functions.

Executive Order 12372 (Intergovernmental Review)

    Catalog of Federal Domestic Assistance Program Number 20.205, 
Highway Planning and Construction. The regulations implementing 
Executive Order 12372 regarding intergovernmental consultation on 
Federal programs and activities apply to this program.

Paperwork Reduction Act

    Under the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501, et 
seq.), Federal Agencies must obtain approval from the Office of 
Management and Budget (OMB) for each collection of information they 
conduct, sponsor, or require through regulations.
    Most of the data FHWA proposes to collect is currently required 
under the

[[Page 70359]]

existing regulation. All information the FHWA proposes to collect for 
reporting purposes is statistical data from the 18 Federal Agencies 
engaged in land acquisition and displacement activities. The PRA was 
enacted to minimize paperwork burdens and recordkeeping requirements 
that the Federal government imposes on non-Federal entities. All the 
information this proposed rule proposes to collect comes from the 18 
Federal Agencies that acquire real property for Federal and federally-
assisted projects, and the information is generally already collected 
by those Agencies for their own internal purposes. Therefore, the FHWA 
has determined that this proposal does not contain collection of 
information requirements for the purposes of the PRA.

National Environmental Policy Act

    The FHWA has analyzed this proposed action for the purpose of the 
National Environmental Policy Act of 1969 (42 U.S.C. 4321) and has 
determined that this proposed action would not have any effect on the 
quality of the environment.

Executive Order 12630 (Taking of Private Property)

    This proposed action would not affect a taking of private property 
or otherwise have taking implications under Executive Order 12630, 
Government Actions and Interface with Constitutionally Protected 
Property Rights.

Executive Order 12988 (Civil Justice Reform)

    This proposed action meets applicable standards in Sec. Sec.  3(a) 
and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize 
litigation, eliminate ambiguity, and reduce burden.

Executive Order 13045 (Protection of Children)

    We have analyzed this proposed action under Executive Order 13045, 
Protection of Children from Environmental Health Risks and Safety 
Risks. This proposed action does not involve an economically 
significant rule and does not concern an environmental risk to health 
or safety that may disproportionately affect children.

Executive Order 13175 (Tribal Consultation)

    The FHWA has analyzed this proposal under Executive Order 13175, 
dated November 6, 2000, and believes that the proposed action will not 
have substantial direct effects on one or more Indian tribes; will not 
impose substantial direct compliance costs on Indian tribal 
governments; and will not preempt tribal law. Therefore, a tribal 
summary impact statement is not required.

Executive Order 13211 (Energy Effects)

    We have analyzed this proposed rule under Executive Order 13211, 
Actions Concerning Regulations That Significantly Affect Energy Supply, 
Distribution, or Use. We have determined that it is not a significant 
energy action under that order because it is not a significant 
regulatory action under Executive Order 12866 and is not likely to have 
a significant adverse effect on the supply, distribution, or use of 
energy. Therefore, a Statement of Energy Effects under Executive Order 
13211 is not required.

Regulation Identification Number

    A regulation identification number (RIN) is assigned to each 
regulatory action listed in the Unified Agenda of Federal Regulations. 
The Regulatory Information Service Center publishes the Unified Agenda 
in April and October of each year. The RIN contained in the heading of 
this document can be used to cross reference this action with the 
Unified Agenda.

List of Subjects in 49 CFR Part 24

    Real property acquisition, Relocation assistance, Reporting and 
recordkeeping requirements and Transportation.

    Issued on: December 5, 2003.
Mary E. Peters,
Federal Highway Administrator.
    In consideration of the foregoing, the FHWA proposes to revise 
title 49 Code of Federal Regulations part 24, as set forth below:

PART 24--UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY 
ACQUISITION FOR FEDERAL AND FEDERALLY-ASSISTED PROGRAMS

Subpart A--General
Sec.
24.1 Purpose.
24.2 Definitions and acronyms.
24.3 No duplication of payments.
24.4 Assurances, monitoring and corrective action.
24.5 Manner of notices.
24.6 Administration of jointly-funded projects.
24.7 Federal Agency waiver of regulations.
24.8 Compliance with other laws and regulations.
24.9 Recordkeeping and reports.
24.10 Appeals.
Subpart B--Real Property Acquisition
24.101 Applicability of acquisition requirements.
24.102 Basic acquisition policies.
24.103 Criteria for appraisals.
24.104 Review of appraisals.
24.105 Acquisition of tenant-owned improvements.
24.106 Expenses incidental to transfer of title to the Agency.
24.107 Certain litigation expenses.
24.108 Donations.
Subpart C--General Relocation Requirements
24.201 Purpose.
24.202 Applicability.
24.203 Relocation notices.
24.204 Availability of comparable replacement dwelling before 
displacement.
24.205 Relocation planning, advisory services, and coordination.
24.206 Eviction for cause.
24.207 General requirements--claims for relocation payments.
24.208 Aliens not lawfully present in the United States.
24.209 Relocation payments not considered as income.
Subpart D--Payments for Moving and Related Expenses
24.301 Payment for actual reasonable moving and related expenses.
24.302 Fixed payment for moving expenses--residential moves.
24.303 Related non-residential eligible expenses.
24.304 Reestablishment expenses--non-residential moves.
24.305 Fixed payment for moving expenses--non-residential moves.
24.306 Discretionary utility relocation payments.
Subpart E--Replacement Housing Payments
24.401 Replacement housing payment for 180-day homeowner-occupants.
24.402 Replacement housing payment for 90-day occupants.
24.403 Additional rules governing replacement housing payments.
24.404 Replacement housing of last resort.
Subpart F--Mobile Homes
24.501 Applicability.
24.502 Replacement housing payment for 180-day mobile homeowner 
displaced from a mobile home, and/or from the acquired mobile home 
site.
24.503 Replacement housing payment for 90-day mobile home occupants.
Subpart G--Certification
24.601 Purpose.
24.602 Certification application.
24.603 Monitoring and corrective action.
Appendix A to Part 24--Additional Information
Appendix B to Part 24--Statistical Report Form

    Authority: 42 U.S.C. 4601 et seq.; 49 CFR 1.48(cc).

[[Page 70360]]

Subpart A--General


Sec.  24.1  Purpose.

    The purpose of this part is to promulgate rules to implement the 
Uniform Relocation Assistance and Real Property Acquisition Policies 
Act of 1970, as amended (42 U.S.C. 4601 et seq.), in accordance with 
the following objectives:
    (a) To ensure that owners of real property to be acquired for 
Federal and federally-assisted projects are treated fairly and 
consistently, to encourage and expedite acquisition by agreements with 
such owners, to minimize litigation and relieve congestion in the 
courts, and to promote public confidence in Federal and federally-
assisted land acquisition programs;
    (b) To ensure that persons displaced as a direct result of Federal 
or federally-assisted projects are treated fairly, consistently, and 
equitably so that such displaced persons will not suffer 
disproportionate injuries as a result of projects designed for the 
benefit of the public as a whole; and
    (c) To ensure that Agencies implement these regulations in a manner 
that is efficient and cost effective.


Sec.  24.2  Definitions and acronyms.

    (a) Definitions. Unless otherwise noted, the following terms used 
in this part shall be understood as defined in this section:
    (1) Agency. The term Agency means the Federal Agency, State, State 
Agency, or person that acquires real property or displaces a person.
    (i) Acquiring Agency. The term acquiring Agency means a State 
Agency, as defined in paragraph (a)(1)(iv) of this section, which has 
the authority to acquire property by eminent domain under State law, 
and a State Agency or person which does not have such authority.
    (ii) Displacing Agency. The term displacing Agency means any 
Federal Agency carrying out a program or project, and any State, State 
Agency, or person carrying out a program or project with Federal 
financial assistance, which causes a person to be a displaced person.
    (iii) Federal Agency. The term Federal Agency means any department, 
Agency, or instrumentality in the executive branch of the Government, 
any wholly owned government corporation, the Architect of the Capitol, 
the Federal Reserve Banks and branches thereof, and any person who has 
the authority to acquire property by eminent domain under Federal law.
    (iv) State Agency. The term State Agency means any department, 
Agency or instrumentality of a State or of a political subdivision of a 
State, any department, Agency, or instrumentality of two or more States 
or of two or more political subdivisions of a State or States, and any 
person who has the authority to acquire property by eminent domain 
under State law.
    (2) Alien not lawfully present in the United States. The phrase 
``alien not lawfully present in the United States'' means an alien who 
is not ``lawfully present'' in the United States as defined in 8 CFR 
103.12 and includes:
    (i) An alien present in the United States who has not been admitted 
or paroled into the United States pursuant to the Immigration and 
Nationality Act (8 U.S.C. 1101 et seq.) and whose stay in the United 
States has not been authorized by the United States Attorney General, 
and
    (ii) An alien who is present in the United States after the 
expiration of the period of stay authorized by the United States 
Attorney General or who otherwise violates the terms and conditions of 
admission, parole or authorization to stay in the United States.
    (3) Appraisal. The term appraisal means a written statement 
independently and impartially prepared by a qualified appraiser setting 
forth an opinion of defined value of an adequately described property 
as of a specific date, supported by the presentation and analysis of 
relevant market information.
    (4) Business. The term business means any lawful activity, except a 
farm operation, that is conducted:
    (i) Primarily for the purchase, sale, lease and/or rental of 
personal and/or real property, and/or for the manufacture, processing, 
and/or marketing of products, commodities, and/or any other personal 
property;
    (ii) Primarily for the sale of services to the public;
    (iii) Primarily for outdoor advertising display purposes, when the 
display must be moved as a result of the project; or
    (iv) By a nonprofit organization that has established its nonprofit 
status under applicable Federal or State law.
    (5) Citizen. The term citizen for purposes of this part, includes 
both citizens of the United States and noncitizen nationals.
    (6) Comparable replacement dwelling. The term comparable 
replacement dwelling means a dwelling which is:
    (i) Decent, safe and sanitary as described in paragraph (a)(8) of 
this section;
    (ii) Functionally equivalent to the displacement dwelling. The term 
functionally equivalent means that it performs the same function, and 
provides the same utility. While a comparable replacement dwelling need 
not possess every feature of the displacement dwelling, the principal 
features must be present. Generally, functional equivalency is an 
objective standard, reflecting the range of purposes for which the 
various physical features of a dwelling may be used. However, in 
determining whether a replacement dwelling is functionally equivalent 
to the displacement dwelling, the Agency may consider reasonable trade-
offs for specific features when the replacement unit is equal to or 
better than the displacement dwelling. (See appendix A to this part);
    (iii) Adequate in size to accommodate the occupants;
    (iv) In an area not subject to unreasonable adverse environmental 
conditions;
    (v) In a location generally not less desirable than the location of 
the displaced person's dwelling with respect to public utilities and 
commercial and public facilities, and reasonably accessible to the 
person's place of employment;
    (vi) On a site that is typical in size for residential development 
with normal site improvements, including customary landscaping. The 
site need not include special improvements such as outbuildings, 
swimming pools, or greenhouses. (See also Sec.  24.403(a)(2));
    (vii) Currently available to the displaced person on the private 
market except as provided in paragraph (a)(6)(ix) of this section. (See 
appendix A, section 24.2(a)(6)); and
    (viii) Within the financial means of the displaced person eligible 
for a replacement housing payment. This means that after receipt of all 
acquisition and relocation payments under this regulation (including 
any amount deducted because of rent owed the Agency), the price or rent 
(including utilities), as appropriate, of the replacement dwelling 
offered as a comparable does not exceed the price or rent (including 
utilities) of the dwelling from which displaced.
    (ix) For a person receiving government housing assistance before 
displacement, a dwelling that may reflect similar government housing 
assistance. In such cases any requirements of the government housing 
assistance program relating to the size of the replacement dwelling 
shall apply. (See appendix A, section 24.2(a)(6)).
    (7) Contribute materially. The term contribute materially means 
that during

[[Page 70361]]

the 2 taxable years prior to the taxable year in which displacement 
occurs, or during such other period as the Agency determines to be more 
equitable, a business or farm operation:
    (i) Had average annual gross receipts of at least $5,000; or
    (ii) Had average annual net earnings of at least $1,000; or
    (iii) Contributed at least 33 1/3 percent of the owner's or 
operator's average annual gross income from all sources.
    (iv) If the application of the above criteria creates an inequity 
or hardship in any given case, the Agency may approve the use of other 
criteria as determined appropriate.
    (8) Decent, safe, and sanitary dwelling. The term decent, safe, and 
sanitary dwelling means a dwelling which meets local housing and 
occupancy codes. However, any of the following standards which are not 
met by the local code shall apply unless waived for good cause by the 
Federal Agency funding the project. The dwelling shall:
    (i) Be structurally sound, weathertight, and in good repair;
    (ii) Have no deteriorated paint (or no deteriorated lead-based 
paint if paint testing is conducted) and have no dust-lead hazards, as 
these terms are defined at 24 CFR 35.110, unless the displaced person 
is either elderly or disabled and no child under 6 years of age will 
reside or be expected to reside in the unit, or the replacement 
dwelling unit is a zero-bedroom dwelling. A unit built on or after 
January 1, 1978, shall meet this requirement;
    (iii) Contain a safe electrical wiring system adequate for lighting 
and other devices;
    (iv) Contain a heating system capable of sustaining a healthful 
temperature (of approximately 70 degrees) for a displaced person, 
except in those areas where local climatic conditions do not require 
such a system;
    (v) Be adequate in size with respect to the number of rooms and 
area of living space needed to accommodate the displaced person. The 
number of persons occupying each habitable room used for sleeping 
purposes shall not exceed that permitted by local housing codes or the 
policies of the displacing Agency. In addition, the displacing Agency 
shall follow the requirements for separate bedrooms for children of the 
opposite gender included in local housing codes or the policies of such 
Agencies;
    (vi) There shall be a separate, well lighted and ventilated 
bathroom that provides privacy to the user and contains a sink, bathtub 
or shower stall, and a toilet, all in good working order and properly 
connected to appropriate sources of water and to a sewage drainage 
system. In the case of a housekeeping dwelling, there shall be a 
kitchen area that contains a fully usable sink, properly connected to 
potable hot and cold water and to a sewage drainage system, and 
adequate space and utility service connections for a stove and 
refrigerator;
    (vii) Contains unobstructed egress to safe, open space at ground 
level; and
    (viii) For a displaced person with a disability, be free of any 
barriers which would preclude reasonable ingress, egress, or use of the 
dwelling by such displaced person. (See appendix A, section 
24.2(a)(8).)
    (9) Displaced person--(i) General. The term displaced person means, 
except as provided in paragraph (a)(9)(ii) of this section, any person 
who moves from the real property or moves his or her personal property 
from the real property. (This includes a person who occupies the real 
property prior to its acquisition, but who does not meet the length of 
occupancy requirements of the Uniform Act as described at Sec.  
24.401(a) and Sec.  24.402(a)):
    (A) As a direct result of a written notice of intent to acquire 
(see section 24.203(d)), the initiation of negotiations for, or the 
acquisition of, such real property in whole or in part for a project;
    (B) As a direct result of rehabilitation or demolition for a 
project; or
    (C) As a direct result of a written notice of intent to acquire, or 
the acquisition, rehabilitation or demolition of, in whole or in part, 
other real property on which the person conducts a business or farm 
operation, for a project. However, eligibility for such person under 
this paragraph applies only for purposes of obtaining relocation 
assistance advisory services under Sec.  24.205(c), and moving expenses 
under Sec.  24.301, Sec.  24.302 or Sec.  24.303.
    (ii) Persons not displaced. The following is a nonexclusive listing 
of persons who do not qualify as displaced persons under this part:
    (A) A person who moves before the initiation of negotiations (see 
section 24.403(d)), unless the Agency determines that the person was 
displaced as a direct result of the program or project;
    (B) A person who initially enters into occupancy of the property 
after the date of its acquisition for the project;
    (C) A person who has occupied the property for the purpose of 
obtaining assistance under the Uniform Act;
    (D) A person who is not required to relocate permanently as a 
direct result of a project. Such determination shall be made by the 
Agency in accordance with any guidelines established by the Federal 
Agency funding the project. (See appendix A, section 
24.2(a)(9)(ii)(D));
    (E) An owner-occupant who moves as a result of an acquisition of 
real property as described in Sec.  24.101(b)(1) through (5), or as a 
result of the rehabilitation or demolition of the real property. 
(However, the displacement of a tenant as a direct result of any 
acquisition, rehabilitation or demolition for a Federal or federally-
assisted project is subject to this part.);
    (F) A person whom the Agency determines is not displaced as a 
direct result of a partial acquisition;
    (G) A person who, after receiving a notice of relocation 
eligibility (described at Sec.  24.203(b)), is notified in writing that 
he or she will not be displaced for a project. Such notice shall not be 
issued unless the person has not moved and the Agency agrees to 
reimburse the person for any expenses incurred to satisfy any binding 
contractual relocation obligations entered into after the effective 
date of the notice of relocation eligibility;
    (H) An owner-occupant who conveys his or her property, as described 
in Sec.  24.101(b)(1) through (5), after being informed in writing that 
if a mutually satisfactory agreement on terms of the conveyance cannot 
be reached, the Agency will not acquire the property. In such cases, 
however, any resulting displacement of a tenant is subject to the 
regulations in this part; or
    (I) A person who retains the right of use and occupancy of the real 
property for life following its acquisition by the Agency;
    (J) An owner who retains the right of use and occupancy of the real 
property for a fixed term after its acquisition by the Department of 
the Interior under Public Law 93-477, Appropriations for National Park 
System, or Public Law 93-303, Land and Water Conservation Fund, except 
that such owner remains a displaced person for purposes of subpart D of 
this part;
    (K) A person who is determined to be in unlawful occupancy prior to 
or after the initiation of negotiations, or a person who has been 
evicted for cause, under applicable law, as provided for in Sec.  
24.206. However, advisory assistance may be provided to unlawful 
occupants at the option of the Agency in order to facilitate the 
project; or
    (L) A person who is not lawfully present in the United States and 
who has been determined to be ineligible for relocation assistance in 
accordance with Sec.  24.208.

[[Page 70362]]

    (10) Dwelling. The term dwelling means the place of permanent or 
customary and usual residence of a person, according to local custom or 
law, including a single family house; a single family unit in a two-
family, multi-family, or multi-purpose property; a unit of a 
condominium or cooperative housing project; a non-housekeeping unit; a 
mobile home; or any other residential unit.
    (11) Dwelling site. The term dwelling site means a typical site 
upon which a dwelling is located.
    (12) Eviction for cause. The term eviction for cause means an 
eviction in conformance with applicable State and local requirements, 
provided:
    (i) The eviction notice was received before or after the 
initiations of negotiations and as a result of that notice is later 
evicted; or
    (ii) Eviction was for serious or repeated violations of material 
terms of the lease or occupancy agreement.
    (13) Farm operation. The term 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, and customarily producing such products or commodities in 
sufficient quantity to be capable of contributing materially to the 
operator's support.
    (14) Federal financial assistance. The term Federal financial 
assistance means a grant, loan, lease payments or contribution provided 
by the United States, except any Federal guarantee or insurance and any 
interest reduction payment to an individual in connection with the 
purchase and occupancy of a residence by that individual.
    (15) Household income. The term household income means total gross 
income received for a 12 month period from all sources (earned and 
unearned) including, but not limited to wages, salary, child support, 
alimony, unemployment benefits, workers compensation social security, 
or the net income from a business. It does not include income received 
or earned by dependent children and full time students under 18 years 
of age. (See appendix A, section 24.2(a)(15) for examples of exclusions 
to income.)
    (16) Initiation of negotiations. Unless a different action is 
specified in applicable Federal program regulations, the term 
initiation of negotiations means the following:
    (i) Whenever the displacement results from the acquisition of the 
real property by a Federal Agency or State Agency, the initiation of 
negotiations means the delivery of the initial written offer of just 
compensation by the Agency to the owner or the owner's representative 
to purchase the real property for the project. However, if the Federal 
Agency or State Agency issues a notice of its intent to acquire the 
real property, and a person moves after that notice, but before 
delivery of the initial written purchase offer, the initiation of 
negotiations means the actual move of the person from the property.
    (ii) Whenever the displacement is caused by rehabilitation, 
demolition or privately undertaken acquisition of the real property 
(and there is no related acquisition by a Federal Agency or a State 
Agency), the initiation of negotiations means the notice to the person 
that he or she will be displaced by the project or, if there is no 
notice, the actual move of the person from the property.
    (iii) In the case of a permanent relocation to protect the public 
health and welfare, under the Comprehensive Environmental Response 
Compensation and Liability Act of 1980 (Public Law 96-510, or 
Superfund) the initiation of negotiations means the formal announcement 
of such relocation or the Federal or federally-coordinated health 
advisory where the Federal Government later decides to conduct a 
permanent relocation.
    (iv) In the case of permanent relocation of a tenant as a result of 
an acquisition of real property described in Sec.  24.101(b)(1) through 
(5), the initiation of negotiations means acceptance of the Agency's 
offer to purchase the real property.
    (17) Lead Agency. The term Lead Agency means the Department of 
Transportation acting through the Federal Highway Administration.
    (18) Mobile home. The term mobile home includes manufactured homes 
and recreational vehicles. (See appendix A, section 24.2(a)(18).)
    (19) Mortgage. The term 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.
    (20) Nonprofit organization. The term nonprofit organization means 
an organization that is incorporated under the applicable laws of a 
State as a non-profit organization, and exempt from paying Federal 
income taxes under section 501 of the Internal Revenue Code (26 U.S.C. 
501).
    (21) Owner of a dwelling. The term owner of a dwelling means a 
person who is considered to have met the requirement to own a dwelling 
if the person purchases or holds any of the following interests in real 
property;
    (i) Fee title, a life estate, a land contract, a 99 year lease, or 
a lease including any options for extension with at least 50 years to 
run from the date of acquisition; or
    (ii) An interest in a cooperative housing project which includes 
the right to occupy a dwelling; or
    (iii) A contract to purchase any of the interests or estates 
described in Sec.  24.2(a)(1)(i) or (ii) of this section, or
    (iv) Any other interest, including a partial interest, which in the 
judgment of the Agency warrants consideration as ownership.
    (22) Person. The term person means any individual, family, 
partnership, corporation, or association.
    (23) Program or project. The phrase program or project means any 
activity or series of activities undertaken by a Federal Agency or with 
Federal financial assistance received or anticipated in any phase of an 
undertaking in accordance with the Federal funding Agency guidelines.
    (24) Salvage value. The term salvage value means the probable sale 
price of an item offered for sale to knowledgeable buyers with the 
requirement that it be removed from the property at a buyer's expense 
(i.e., not eligible for relocation assistance). This includes items for 
re-use as well as items with components that can be re-used or recycled 
when there is no reasonable prospect for sale except on this basis.
    (25) Small business. A small business is a business having not more 
than 500 employees working at the site being acquired or displaced by a 
program or project, which site is the location of economic activity. 
Sites occupied solely by outdoor advertising signs, displays, or 
devices do not qualify as a business for purposes of Sec.  24.304.
    (26) State. Any of the several States of the United States or the 
District of Columbia, the Commonwealth of Puerto Rico, any territory or 
possession of the United States, or a political subdivision of any of 
these jurisdictions.
    (27) Tenant. The term tenant means a person who has the temporary 
use and occupancy of real property owned by another.
    (28) Uneconomic remnant. The term uneconomic remnant means a parcel 
of real property in which the owner is left with an interest after the 
partial acquisition of the owner's property, and which the Agency has 
determined has little or no value or utility to the owner.
    (29) Uniform Act. The term Uniform Act means the Uniform Relocation 
Assistance and Real Property

[[Page 70363]]

Acquisition Policies Act of 1970 (Public Law 91-646, 84 Stat. 1894; 42 
U.S.C. 4601 et seq.), and amendments thereto.
    (30) Unlawful occupant. A person who occupies without property 
right, title or payment of rent or a person legally evicted, with no 
legal rights to occupy a property under State law. An Agency, at its 
discretion, may consider such person to be in lawful occupancy.
    (31) Utility costs. The term utility costs means expenses for heat, 
lights, water and sewer.
    (32) Utility facility. The term utility facility means any 
electric, gas, water, steam power, or materials transmission or 
distribution system; any transportation system; any communications 
system, including cable television; and any fixtures, equipment, or 
other property associated with the operation, maintenance, or repair of 
any such system. A utility facility may be publicly, privately, or 
cooperatively owned.
    (33) Utility relocation. The term utility relocation means the 
adjustment of a utility facility required by the program or project 
undertaken by the displacing Agency. It includes removing and 
reinstalling the facility, including necessary temporary facilities; 
acquiring necessary right-of-way on a new location; moving, rearranging 
or changing the type of existing facilities; and taking any necessary 
safety and protective measures. It shall also mean constructing a 
replacement facility that has the functional equivalency of the 
existing facility and is necessary for the continued operation of the 
utility service, the project economy, or sequence of project 
construction.
    (34) Waiver valuation. The term waiver valuation means the 
valuation process used and the product produced when the Agency 
determines that an appraisal is not required, pursuant to Sec.  
24.102(c)(2) appraisal waiver provisions.
    (b) Acronyms. The following acronyms are commonly used in the 
implementation of programs subject to this part:
    (1) BCIS. Bureau of Citizenship and Immigration Service.
    (2) FEMA. Federal Emergency Management Agency.
    (3) FHA. Federal Housing Administration.
    (4) FHWA. Federal Highway Administration.
    (5) FIRREA. Financial Institutions Reform, Recovery, and 
Enforcement Act of 1989.
    (6) HLR. Housing of last resort.
    (7) HUD. U. S. Department of Housing and Urban Development.
    (8) MIDP. Mortgage interest differential payment.
    (9) RHP. Replacement housing payment.
    (10) STURAA. Surface Transportation and Uniform Relocation Act 
Amendments of 1987.
    (11) URA. Uniform Relocation Assistance and Real Property 
Acquisition Policies Act of 1970.
    (12) USDOT. U.S. Department of Transportation.
    (13) USPAP. Uniform Standards of Professional Appraisal Practice.


Sec.  24.3  No duplication of payments.

    No person shall receive any payment under this part if that person 
receives a payment under Federal, State, local law, or insurance 
proceeds which is determined by the Agency to have the same purpose and 
effect as such payment under this part. (See appendix A, section 24.3.)


Sec.  24.4  Assurances, monitoring and corrective action.

    (a) Assurances. (1) Before a Federal Agency may approve any grant 
to, or contract, or agreement with, a State Agency under which Federal 
financial assistance will be made available for a project which results 
in real property acquisition or displacement that is subject to the 
Uniform Act, the State Agency must provide appropriate assurances that 
it will comply with the Uniform Act and this part. A displacing 
Agency's assurances shall be in accordance with section 210 of the 
Uniform Act. An acquiring Agency's assurances shall be in accordance 
with section 305 of the Uniform Act and must contain specific reference 
to any State law which the Agency believes provides an exception to 
sections 301 or 302 of the Uniform Act. If, in the judgment of the 
Federal Agency, Uniform Act compliance will be served, a State Agency 
may provide these assurances at one time to cover all subsequent 
federally-assisted programs or projects. An Agency, which both acquires 
real property and displaces persons, may combine its section 210 and 
section 305 assurances in one document.
    (2) If a Federal Agency or State Agency provides Federal financial 
assistance to a ``person'' causing displacement, such Federal or State 
Agency is responsible for ensuring compliance with the requirements of 
this part, notwithstanding the person's contractual obligation to the 
grantee to comply.
    (3) Any Agency or person solely acquiring property pursuant to the 
provisions of Sec.  24.101(b)(1) through (5) need not provide the 
assurances required by Sec.  24.4(a)(1) or (2).
    (4) As an alternative to the assurance requirement described in 
paragraph (a)(1) of this section, a Federal Agency may provide Federal 
financial assistance to a State Agency after it has accepted a 
certification by such State Agency in accordance with the requirements 
in subpart G of this part.
    (b) Monitoring and corrective action. The Federal Agency will 
monitor compliance with this part, and the State Agency shall take 
whatever corrective action is necessary to comply with the Uniform Act 
and this part. The Federal Agency may also apply sanctions in 
accordance with applicable program regulations. (Also see Sec.  24.603 
of this part.)
    (c) Prevention of fraud, waste, and mismanagement. The Agency shall 
take appropriate measures to carry out this part in a manner that 
minimizes fraud, waste, and mismanagement.


Sec.  24.5  Manner of notices.

    Each notice which the Agency is required to provide to a property 
owner or occupant under this part, except the notice described at Sec.  
24.102(b), shall be personally served or sent by certified or 
registered first-class mail, return receipt requested, and documented 
in Agency files. Each notice shall be written in plain, understandable 
language. Persons who are unable to read and understand the notice must 
be provided with appropriate translation and counseling. Each notice 
shall indicate the name and telephone number of a person who may be 
contacted for answers to questions or other needed help.


Sec.  24.6  Administration of jointly-funded projects.

    Whenever two or more Federal Agencies provide financial assistance 
to an Agency or Agencies, other than a Federal Agency, to carry out 
functionally or geographically related activities, which will result in 
the acquisition of property or the displacement of a person, the 
Federal Agencies may by agreement designate one such Agency as the 
cognizant Federal Agency. In the unlikely event that agreement among 
the Agencies cannot be reached as to which Agency shall be the 
cognizant Federal Agency, then the Lead Agency shall designate one of 
such Agencies to assume the cognizant role. At a minimum, the agreement 
shall set forth the federally-assisted activities which are subject to 
its terms and cite any policies and procedures, in addition to this 
part, that are applicable to the activities under the agreement. Under 
the agreement, the

[[Page 70364]]

cognizant Federal Agency shall assure that the project is in compliance 
with the provisions of the Uniform Act and this part. All federally-
assisted activities under the agreement shall be deemed a project for 
the purposes of this part.


Sec.  24.7  Federal Agency waiver of regulations.

    The Federal Agency funding the project may waive any requirement in 
this part not required by law if it determines that the waiver does not 
reduce any assistance or protection provided to an owner or displaced 
person under this part. Any request for a waiver shall be justified on 
a case-by-case basis.


Sec.  24.8  Compliance with other laws and regulations.

    The implementation of this part must be in compliance with other 
applicable Federal laws and implementing regulations, including, but 
not limited to, the following:
    (a) Section I of the Civil Rights Act of 1866 (42 U.S.C. 1982 et 
seq.).
    (b) Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et 
seq.).
    (c) Title VIII of the Civil Rights Act of 1968 (42 U.S.C. 3601 et 
seq.), as amended.
    (d) The National Environmental Policy Act of 1969 (42 U.S.C. 4321 
et seq.).
    (e) Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 790 et 
seq.).
    (f) The Flood Disaster Protection Act of 1973 (Public Law 93-234).
    (g) The Age Discrimination Act of 1975 (42 U.S.C. 6101 et seq.).
    (h) Executive Order 11063--Equal Opportunity and Housing, revised 
by Executive Order 12892.
    (i) Executive Order 11246--Equal Employment Opportunity, as 
amended.
    (j) Executive Order 11625--Minority Business Enterprise.
    (k) Executive Orders 11988--Floodplain Management, and 11990--
Protection of Wetlands.
    (l) Executive Order 12250--Leadership and Coordination of Non-
Discrimination Laws.
    (m) Executive Order 12630--Governmental Actions and Interference 
with Constitutionally Protected Property Rights.
    (n) Robert T. Stafford Disaster Relief and Emergency Assistance Act 
(42 U.S.C. 5121 et seq.)


Sec.  24.9  Recordkeeping and reports.

    (a) Records. The Agency shall maintain adequate records of its 
acquisition and displacement activities in sufficient detail to 
demonstrate compliance with this part. These records shall be retained 
for at least 3 years after each owner of a property and each person 
displaced from the property receives the final payment to which he or 
she is entitled under this part, or in accordance with the applicable 
regulations of the Federal funding Agency, whichever is later.
    (b) Confidentiality of records. Records maintained by an Agency in 
accordance with this part are confidential regarding their use as 
public information, unless applicable law provides otherwise.
    (c) Reports. (1) The Agency shall submit a report of its real 
property acquisition and displacement activities under this part if 
required by the Federal Agency funding the project. The report shall be 
prepared in the format contained in appendix B of this part.
    (2) Federal Agencies shall submit an annual report summarizing 
their real property acquisition and displacement activities under this 
part to the Lead Agency. The report may be prepared and submitted using 
the format contained in appendix B of this part.


Sec.  24.10  Appeals.

    (a) General. The Agency shall promptly review appeals in accordance 
with the requirements of applicable law and this part.
    (b) Actions which may be appealed. Any aggrieved person may file a 
written appeal with the Agency in any case in which the person believes 
that the Agency has failed to properly consider the person's 
application for assistance under this part. Such assistance may 
include, but is not limited to, the person's eligibility for, or the 
amount of, a payment required under Sec.  24.106 or Sec.  24.107, or a 
relocation payment required under this part. The Agency shall consider 
a written appeal regardless of form.
    (c) Time limit for initiating appeal. The Agency may set a 
reasonable time limit for a person to file an appeal. The time limit 
shall not be less than 60 days after the person receives written 
notification of the Agency's determination on the person's claim.
    (d) Right to representation. A person has a right to be represented 
by legal counsel or other representative in connection with his or her 
appeal, but solely at the person's own expense.
    (e) Review of files by person making appeal. The Agency shall 
permit a person to inspect and copy all materials pertinent to his or 
her appeal, except materials which are classified as confidential by 
the Agency. The Agency may, however, impose reasonable conditions on 
the person's right to inspect, consistent with applicable laws.
    (f) Scope of review of appeal. In deciding an appeal, the Agency 
shall consider all pertinent justification and other material submitted 
by the person, and all other available information that is needed to 
ensure a fair and full review of the appeal.
    (g) Determination and notification after appeal. Promptly after 
receipt of all information submitted by a person in support of an 
appeal, the Agency shall make a written determination on the appeal, 
including an explanation of the basis on which the decision was made, 
and furnish the person a copy. If the full relief requested is not 
granted, the Agency shall advise the person of his or her right to seek 
judicial review of the Agency decision.
    (h) Agency official to review appeal. The Agency official 
conducting the review of the appeal shall be either the head of the 
Agency or his or her authorized designee. However, the official shall 
not have been directly involved in the action appealed.

Subpart B--Real Property Acquisition


Sec.  24.101  Applicability of acquisition requirements.

    (a) Federal program or project. The requirements of this subpart 
apply to any acquisition of real property for a direct Federal program 
or project, except acquisition for a program or project which is 
undertaken by the Tennessee Valley Authority or the Rural 
Electrification Administration. (See appendix A, section 24.101(a).)
    (b) Programs and projects receiving Federal financial assistance. 
The requirements of this subpart apply to any acquisition of real 
property for programs and projects where there is Federal financial 
assistance in any part of project costs except for the acquisitions 
described in paragraphs (b)(1) through (5) of this section. The 
relocation assistance provisions in this part are applicable to any 
tenants that must move as a result of an acquisition described in 
paragraphs (b)(1) through (5) of this section. Such tenants are 
considered displaced persons. (See Sec.  24.2(a)(9))
    (1) Acquisitions that meet all of the conditions in paragraphs 
(b)(1)(i) through (iv) of this section.
    (i) No specific site or property needs to be acquired, although the 
Agency may limit its search for alternative sites to a general 
geographic area. Where an Agency wishes to purchase more than one site 
within a general geographic area on this basis, all owners are to be 
treated similarly. (See appendix A, section 24.101(b)(1)(i).)

[[Page 70365]]

    (ii) The property to be acquired is not part of an intended, 
planned, or designated project area where all or substantially all of 
the property within the area is to be acquired within specific time 
limits.
    (iii) The Agency will not acquire the property in the event 
negotiations fail to result in an agreement, and the owner is so 
informed in writing.
    (iv) The Agency will inform the owner in writing of what it 
believes to be the market value of the property. (See appendix A, 
section 24.101(b)(1)(iv) & (2)(ii).)
    (2) Acquisitions for programs or projects undertaken by an Agency 
or person that receives Federal financial assistance but does not have 
authority to acquire property by eminent domain, provided that such 
Agency or person shall:
    (i) Prior to making an offer for the property, advise the owner in 
writing that it is unable to acquire the property in the event 
negotiations fail to result in an amicable agreement; and
    (ii) Inform the owner in writing of what it believes to be market 
value of the property. (See appendix A, section 24.101(b)(1)(iv) & 
(2)(ii).)
    (3) The acquisition of real property from a Federal Agency, State, 
or State Agency, if the Agency desiring to make the purchase does not 
have authority to acquire the property through condemnation.
    (4) The acquisition of real property by a cooperative from a person 
who, as a condition of membership in the cooperative, has agreed to 
provide without charge any real property that is needed by the 
cooperative.
    (5) Acquisition for a program or project which receives Federal 
financial assistance from the Tennessee Valley Authority or the Rural 
Electrification Administration.
    (c) Less-than-full-fee interest in real property. The provisions of 
this subpart apply when acquiring fee title subject to retention of a 
life estate or a life use; to acquisition by leasing where the lease 
term, including option(s) for extension, is 50 years or more; and to 
the acquisition of permanent easements. (See appendix A, section 
24.101(c).)
    (d) Federally-assisted projects. For projects receiving Federal 
financial assistance, the provisions of Sec. Sec.  24.102, 24.103, 
24.104, and 24.105 apply to the greatest extent practicable under State 
law. (See section 24.4(a).)


Sec.  24.102  Basic acquisition policies.

    (a) Expeditious acquisition. The Agency shall make every reasonable 
effort to acquire the real property expeditiously by negotiation.
    (b) Notice to owner. As soon as feasible, the Agency shall notify 
the owner in writing of the Agency's interest in acquiring the real 
property and the basic protections provided to the owner by law and 
this part. (See also Sec.  24.203.)
    (c) Appraisal, waiver thereof, and invitation to owner. (1) Before 
the initiation of negotiations, the real property to be acquired shall 
be appraised, except as provided in Sec.  24.102(c)(2), and the 
appraiser shall provide the owner, or the owner's designated 
representative, an opportunity to accompany the appraiser during the 
appraiser's inspection of the property.
    (2) An appraisal is not required if:
    (i) The owner is donating the property and releases the Agency from 
its obligation to appraise the property, or
    (ii) The Agency determines that an appraisal is unnecessary because 
the valuation problem is uncomplicated and the market value is 
estimated at $10,000 or less, based on a review of available data. When 
an appraisal is determined to be unnecessary, the Agency shall prepare 
a waiver valuation. The Federal Agency funding the project may, on a 
case-by-case basis, approve exceeding the $10,000 threshold, up to a 
maximum of $25,000, if the Agency acquiring the real property offers 
the property owner the option of having the Agency appraise the 
property. If the property owner elects to have the Agency appraise the 
property, the Agency shall obtain an appraisal and not use procedures 
described in this paragraph. (See appendix A, section 24.102(c)(2).)
    (d) Establishment and offer of just compensation. Before the 
initiation of negotiations, the Agency shall establish an amount which 
it believes is just compensation for the real property. The amount 
shall not be less than the approved appraisal of the market value of 
the property, taking into account the value of allowable damages or 
benefits to any remaining property. The amount believed to be just 
compensation must be established by an Agency official. (See also Sec.  
24.104.) Promptly thereafter, the Agency shall make a written offer to 
the owner to acquire the property for the full amount believed to be 
just compensation. (See appendix A, section 24.102(d).)
    (e) Summary statement. Along with the initial written purchase 
offer, the Agency shall provide the owner a written statement of the 
basis for the offer of just compensation, which shall include:
    (1) A statement of the amount offered as just compensation. In the 
case of a partial acquisition, the compensation for the real property 
to be acquired and the compensation for damages, if any, to the 
remaining real property shall be stated separately.
    (2) A description and location identification of the real property 
and the interest in the real property to be acquired.
    (3) An identification of the buildings, structures, and other 
improvements (including removable building equipment and trade 
fixtures) which are included as part of the offer of just compensation. 
Where appropriate, the statement shall identify any other separately 
held ownership interest in the property, e.g., a tenant-owned 
improvement, and indicate that such interest is not covered by this 
offer.
    (f) Basic negotiation procedures. The Agency shall make reasonable 
efforts to contact the owner or the owner's representative and discuss 
its offer to purchase the property, including the basis for the offer 
of just compensation and explain its acquisition policies and 
procedures, including its payment of incidental expenses in accordance 
with Sec.  24.106. The owner shall be given reasonable opportunity to 
consider the offer and present material which the owner believes is 
relevant to determining the value of the property and to suggest 
modification in the proposed terms and conditions of the purchase. The 
Agency shall consider the owner's presentation. (See appendix A, 
section 24.102(f).)
    (g) Updating offer of just compensation. If the information 
presented by the owner, or a material change in the character or 
condition of the property, indicates the need for new appraisal 
information, or if a significant delay has occurred since the time of 
the appraisal(s) of the property, the Agency shall have the 
appraisal(s) updated or obtain a new appraisal(s). If the latest 
appraisal information indicates that a change in the purchase offer is 
warranted, the Agency shall promptly reestablish just compensation and 
offer that amount to the owner in writing.
    (h) Coercive action. The Agency shall not advance the time of 
condemnation, or defer negotiations or condemnation or the deposit of 
funds with the court, or take any other coercive action in order to 
induce an agreement on the price to be paid for the property.
    (i) Administrative settlement. The purchase price for the property 
may exceed the amount offered as just compensation when reasonable 
efforts to negotiate an agreement at that amount have failed and an 
authorized Agency official approves such administrative settlement as 
being reasonable, prudent, and in the public interest. When Federal

[[Page 70366]]

funds pay for or participate in acquisition costs, a written 
justification shall be prepared, which states what available 
information, including trial risks, supports such a settlement. (See 
appendix A, section 24.102(i).)
    (j) Payment before taking possession. Before requiring the owner to 
surrender possession of the real property, the Agency shall pay the 
agreed purchase price to the owner, or in the case of a condemnation, 
deposit with the court, for the benefit of the owner, an amount not 
less than the Agency's approved appraisal of the market value of such 
property, or the court award of compensation in the condemnation 
proceeding for the property. In exceptional circumstances, with the 
prior approval of the owner, the Agency may obtain a right-of-entry for 
construction purposes before making payment available to an owner. (See 
appendix A, section 24.102(j).)
    (k) Uneconomic remnant. If the acquisition of only a portion of a 
property would leave the owner with an uneconomic remnant, the Agency 
shall offer to acquire the uneconomic remnant along with the portion of 
the property needed for the project. (See section 24.2(a)(28).)
    (l) Inverse condemnation. If the Agency intends to acquire any 
interest in real property by exercise of the power of eminent domain, 
it shall institute formal condemnation proceedings and not 
intentionally make it necessary for the owner to institute legal 
proceedings to prove the fact of the taking of the real property.
    (m) Fair rental. If the Agency permits a former owner or tenant to 
occupy the real property after acquisition for a short term or a 
period, subject to termination by the Agency on short notice, the rent 
shall not exceed the fair market rent for such occupancy. (See appendix 
A, section 24.102(m).)
    (n) Conflict of interest. No appraiser, review appraiser or other 
person making an appraisal or a waiver valuation under Sec.  
24.102(c)(2) shall have any interest, direct or indirect, in the real 
property being valued for the Agency that would in any way conflict 
with the preparation of the appraisal, the waiver valuation or the 
review of the appraisal. Compensation for making an appraisal or a 
waiver valuation shall not be based on the amount of the valuation 
estimate. No person functioning as a negotiator for a project or 
program shall supervise or formally evaluate the performance of any 
appraiser or review appraiser performing appraisal or appraisal review 
work for that project or program, except that, for a program or project 
receiving Federal financial assistance, the Federal funding agency may 
waive this requirement if it determines it would create a hardship for 
the Agency. No appraiser or other person making an appraisal or a 
waiver valuation shall act as a negotiator for real property for which 
that person has made an appraisal or a waiver valuation, except that 
the Agency may permit such person to negotiate an acquisition where the 
offer to acquire the property is $10,000, or less. (See appendix A, 
section 24.102(n).)


Sec.  24.103  Criteria for appraisals.

    (a) Appraisal requirements. These regulations set forth the 
requirements for real property acquisition appraisals on Federal and 
federally-assisted programs. The format and level of documentation for 
an appraisal depend on the complexity of the appraisal problem. An 
appraisal must contain a scope of work statement and sufficient 
documentation, including valuation data and the appraiser's analysis of 
that data, to support his or her opinion of value. The Agency shall 
develop minimum requirements for simple appraisals consistent with 
established and commonly accepted Federal and federally-assisted 
program appraisal practice for those acquisitions, which, by virtue of 
their low value or simplicity, do not require the in-depth analysis and 
presentation necessary in a detailed appraisal. A detailed appraisal 
shall be prepared for all other acquisitions. A detailed appraisal 
shall reflect established and commonly accepted Federal and federally-
assisted program appraisal practices, including, to the extent 
appropriate, the Uniform Appraisal Standards for Federal Land 
Acquisition.\1\ At a minimum, a detailed appraisal shall contain the 
following items: (See appendix A, sections 24.103 and 24.103(a).)
---------------------------------------------------------------------------

    \1\ The ``Uniform Appraisal Standards for Federal Land 
Acquisitions'' is published by the Interagency Land Acquisition 
Conference. It is a compendium of Federal eminent domain appraisal 
law, both case and statute, regulations and practices. It is 
available at http://www.usdoj.gov/enrd/land-ack/toc.htm or in soft 
cover format from the Appraisal Institute at http://
www.appraisalinstitute.org/ecom/publications/Items.asp?ID=3 or call 
888-570-4545.
---------------------------------------------------------------------------

    (1) An adequate description of the physical characteristics of the 
property being appraised (and, in the case of a partial acquisition, an 
adequate description of the remaining property), a statement of the 
known and observed encumbrances, if any, title information, location, 
zoning, present use, an analysis of highest and best use, and at least 
a 5 year sales history of the property.
    (2) All relevant and reliable approaches to value consistent with 
established Federal and federally-assisted program appraisal practices. 
If the appraiser uses more than one approach, there shall be an 
analysis and reconciliation of approaches to value used that is 
sufficient to support the appraiser's opinion of value. (See appendix 
A, section 24.103(a).)
    (3) A description of comparable sales, including a description of 
all relevant physical, legal, and economic factors such as parties to 
the transaction, source and method of financing, and verification by a 
party involved in the transaction.
    (4) A statement of the value of the real property to be acquired 
and, for a partial acquisition, a statement of the value of the damages 
and benefits, if any, to the remaining real property, where 
appropriate.
    (5) The effective date of valuation, date of appraisal, signature, 
and certification of the appraiser.
    (b) Influence of the project on just compensation. The appraiser 
shall disregard any decrease or increase in the market value of the 
real property caused by the project for which the property is to be 
acquired, or by the likelihood that the property would be acquired for 
the project, other than that due to physical deterioration within the 
reasonable control of the owner. (See appendix A, section 24.103(b).)
    (c) Owner retention of improvements. If the owner of a real 
property improvement is permitted to retain it for removal from the 
project site, the amount to be offered for the interest in the real 
property to be acquired shall be not less than the difference between 
the amount determined to be just compensation for the owner's entire 
interest in the real property and the salvage value (defined at Sec.  
24.2(a)(24)) of the retained improvement.
    (d) Qualifications of appraisers and review appraisers. (1) The 
Agency shall establish criteria for determining the minimum 
qualifications of appraisers and review appraisers. Qualifications 
shall be consistent with the level of difficulty of the assignment. The 
Agency shall review the experience, education, training, and other 
qualifications of appraisers and review appraisers and use only those 
determined to be qualified. (See appendix A, section 24.103(d)(1).)
    (2) If the appraisal assignment requires the preparation of a 
detailed appraisal pursuant to Sec.  24.103(a), and the Agency uses a 
contract (fee) appraiser to perform the appraisal, such appraiser shall 
be certified in accordance with title XI of the Financial Institutions 
Reform, Recovery, and

[[Page 70367]]

Enforcement Act of 1989 (FIRREA) (12 U.S.C. 3331 et seq.).


Sec.  24.104  Review of appraisals.

    The Agency shall have an appraisal review process and, at a 
minimum:
    (a) A qualified review appraiser (See Sec.  24.103(d)(2) and 
appendix A, section 24.104) shall examine the presentation and analysis 
of market information in all appraisals to assure that they meet the 
definition of appraisal found in 49 CFR 24.2(a)(3), appraisal 
requirements found in 49 CFR 24.103 and other applicable requirements, 
including, to the extent appropriate, the Uniform Appraisal Standards 
for Federal Land Acquisition, and support the appraiser's opinion of 
value. The level of review analysis and reporting depends on the 
complexity of the appraisal problem. As needed, the review appraiser 
shall, prior to acceptance, seek necessary corrections or revisions. 
The review appraiser shall identify each appraisal report as approved 
(as the basis for the establishment of the amount believed to be just 
compensation), accepted (meets all requirements, but not selected as 
approved), or rejected. If authorized by the Agency to do so, the 
review appraiser shall also develop and report the amount believed to 
be just compensation. (See appendix A, section 24.104(a).)
    (b) If the review appraiser is unable to approve an appraisal as an 
adequate basis for the establishment of the offer of just compensation, 
and it is determined by the acquiring Agency that it is not practical 
to obtain an additional appraisal, the review appraiser may develop 
appraisal documentation in accordance with Sec.  24.103 to support an 
approved or recommended value. (See appendix A, section 24.104(b).)
    (c) The review appraiser shall prepare a written report that 
identifies the appraisal reports reviewed and documents the findings 
and conclusions arrived at during the review of the appraisal(s). Any 
damages or benefits to any remaining property shall be identified in 
the review appraiser's report. The review appraiser shall also prepare 
a signed certification that states the parameters of the review. The 
certification shall state the approved value, and, if the review 
appraiser is authorized to do so, the amount believed to be just 
compensation for the acquisition. (See appendix A, section 24.104(c).)


Sec.  24.105  Acquisition of tenant-owned improvements.

    (a) Acquisition of improvements. When acquiring any interest in 
real property, the Agency shall offer to acquire at least an equal 
interest in all buildings, structures, or other improvements located 
upon the real property to be acquired, which it requires to be removed 
or which it determines will be adversely affected by the use to which 
such real property will be put. This shall include any improvement of a 
tenant-owner who has the right or obligation to remove the improvement 
at the expiration of the lease term.
    (b) Improvements considered to be real property. Any building, 
structure, or other improvement, which would be considered to be real 
property if owned by the owner of the real property on which it is 
located, shall be considered to be real property for purposes of this 
subpart.
    (c) Appraisal and establishment of just compensation for tenant-
owned improvements. Just compensation for a tenant-owned improvement is 
the amount which the improvement contributes to the market value of the 
whole property or its salvage value, whichever is greater. (Salvage 
value is defined at Sec.  24.2(a)(24).)
    (d) Special conditions for tenant owned improvements. No payment 
shall be made to a tenant-owner for any real property improvement 
unless:
    (1) The tenant-owner, in consideration for the payment, assigns, 
transfers, and releases to the Agency all of the tenant-owner's right, 
title, and interest in the improvement; and
    (2) The owner of the real property on which the improvement is 
located disclaims all interest in the improvement; and
    (3) The payment does not result in the duplication of any 
compensation otherwise authorized by law.
    (e) Alternative compensation. Nothing in this subpart shall be 
construed to deprive the tenant-owner of any right to reject payment 
under this subpart and to obtain payment for such property interests in 
accordance with other applicable law.


Sec.  24.106  Expenses incidental to transfer of title to the Agency.

    (a) The owner of the real property shall be reimbursed for all 
reasonable expenses the owner necessarily incurred for:
    (1) Recording fees, transfer taxes, documentary stamps, evidence of 
title, boundary surveys, legal descriptions of the real property, and 
similar expenses incidental to conveying the real property to the 
Agency. However, the Agency is not required to pay costs solely 
required to perfect the owner's title to the real property;
    (2) Penalty costs and other charges for prepayment of any 
preexisting recorded mortgage entered into in good faith encumbering 
the real property; and
    (3) The pro rata portion of any prepaid real property taxes which 
are allocable to the period after the Agency obtains title to the 
property or effective possession of it, whichever is earlier.
    (b) Whenever feasible, the Agency shall pay these costs directly so 
that the owner will not have to pay such costs and then seek 
reimbursement from the Agency. (See appendix A, section 24.106(b).)


Sec.  24.107  Certain litigation expenses.

    The owner of the real property shall be reimbursed for any 
reasonable expenses, including reasonable attorney, appraisal, and 
engineering fees, which the owner actually incurred because of a 
condemnation proceeding, if:
    (a) The final judgment of the court is that the Agency cannot 
acquire the real property by condemnation; or
    (b) The condemnation proceeding is abandoned by the Agency other 
than under an agreed-upon settlement; or
    (c) The court having jurisdiction renders a judgment in favor of 
the owner in an inverse condemnation proceeding or the Agency effects a 
settlement of such proceeding.


Sec.  24.108  Donations.

    An owner whose real property is being acquired may, after being 
fully informed by the Agency of the right to receive just compensation 
for such property, donate such property or any part thereof, any 
interest therein, or any compensation paid therefore, to the Agency as 
such owner shall determine. The Agency is responsible for assuring that 
an appraisal of the real property is obtained unless the owner releases 
the Agency from such obligation, except as provided in Sec.  
24.102(c)(2).

Subpart C--General Relocation Requirements


Sec.  24.201  Purpose.

    This subpart prescribes general requirements governing the 
provision of relocation payments and other relocation assistance in 
this part.


Sec.  24.202  Applicability.

    These requirements apply to the relocation of any displaced person 
as defined at Sec.  24.2(a)(9). Any person who qualifies as a displaced 
person must be fully informed of his or her rights and benefits to 
relocation assistance and payments provided by the Uniform Act and this 
regulation. (See appendix A, section 24.202.)

[[Page 70368]]

Sec.  24.203  Relocation notices.

    (a) General information notice. As soon as feasible, a person 
scheduled to be displaced shall be furnished with a general written 
description of the displacing Agency's relocation program which does at 
least the following:
    (1) Informs the person that he or she may be displaced for the 
project and generally describes the relocation payment(s) for which the 
person may be eligible, the basic conditions of eligibility, and the 
procedures for obtaining the payment(s).
    (2) Informs the displaced person that he or she will be given 
reasonable relocation advisory services, including referrals to 
replacement properties, help in filing payment claims, and other 
necessary assistance to help the displaced person successfully 
relocate.
    (3) Informs the displaced person that he or she will not be 
required to move without at least 90 days advance written notice (See 
paragraph (c) of this section), and informs any person to be displaced 
from a dwelling that he or she cannot be required to move permanently 
unless at least one comparable replacement dwelling has been made 
available.
    (4) Informs the displaced person that any person who is an alien 
not lawfully present in the United States is ineligible for relocation 
advisory services and relocation payments, unless such ineligibility 
would result in exceptional and extremely unusual hardship to a 
qualifying spouse, parent, or child, as defined in Sec.  24.208(h).
    (5) Describes the displaced person's right to appeal the Agency's 
determination as to a person's application for assistance for which a 
person may be eligible under this part.
    (b) Notice of relocation eligibility. Eligibility for relocation 
assistance shall begin on the date of initiation of negotiations 
(defined in Sec.  24.2(a)(16)) for the occupied property. When this 
occurs, the Agency shall promptly notify all occupants in writing of 
their eligibility for applicable relocation assistance.
    (c) Ninety-day notice. (1) General. No lawful occupant shall be 
required to move unless he or she has received at least 90 days advance 
written notice of the earliest date by which he or she may be required 
to move.
    (2) Timing of notice. The displacing Agency may issue the notice 90 
days or earlier before it expects the person to be displaced.
    (3) Content of notice. The 90-day notice shall either state a 
specific date as the earliest date by which the occupant may be 
required to move, or state that the occupant will receive a further 
notice indicating, at least 30 days in advance, the specific date by 
which he or she must move. If the 90-day notice is issued before a 
comparable replacement dwelling is made available, the notice must 
state clearly that the occupant will not have to move earlier than 90 
days after such a dwelling is made available. (See Sec.  24.204(a).)
    (4) Urgent need. In unusual circumstances, an occupant may be 
required to vacate the property on less than 90 days advance written 
notice if the displacing Agency determines that a 90-day notice is 
impracticable, such as when the person's continued occupancy of the 
property would constitute a substantial danger to health or safety. A 
copy of the Agency's determination shall be included in the applicable 
case file.
    (d) Notice of intent to acquire. A notice of intent to acquire is a 
displacing Agency's written communication that is provided to a person 
to be displaced, including those to be displaced by rehabilitation or 
demolition activities from property acquired prior to the commitment of 
Federal financial assistance to the activity, which clearly sets forth 
that the Agency intends to acquire the property. A notice of intent to 
acquire establishes eligibility for relocation assistance prior to the 
initiation of negotiation and/or prior to the commitment of Federal 
financial assistance. (See Sec.  24.2(a)(9)(i)(A).)


Sec.  24.204  Availability of comparable replacement dwelling before 
displacement.

    (a) General. No person to be displaced shall be required to move 
from his or her dwelling unless at least one comparable replacement 
dwelling (defined at Sec.  24.2 (a)(6)) has been made available to the 
person. Where possible, three or more comparable replacement dwellings 
shall be made available. A comparable replacement dwelling will be 
considered to have been made available to a person, if:
    (1) The person is informed of its location;
    (2) The person has sufficient time to negotiate and enter into a 
purchase agreement or lease for the property; and
    (3) Subject to reasonable safeguards, the person is assured of 
receiving the relocation assistance and acquisition payment to which 
the person is entitled in sufficient time to complete the purchase or 
lease of the property.
    (b) Circumstances permitting waiver. The Federal Agency funding the 
project may grant a waiver of the policy in paragraph (a) of this 
section in any case where it is demonstrated that a person must move 
because of:
    (1) A major disaster as defined in section 102(c) of the Disaster 
Relief Act of 1974 (42 U.S.C. 5121); or
    (2) A presidentially declared national emergency; or
    (3) Another emergency which requires immediate vacation of the real 
property, such as when continued occupancy of the displacement dwelling 
constitutes a substantial danger to the health or safety of the 
occupants or the public.
    (c) Basic conditions of emergency move. Whenever a person to be 
displaced is required to relocate for a temporary period because of an 
emergency as described in paragraph (b) of this section, the Agency 
shall:
    (1) Take whatever steps are necessary to assure that the person is 
temporarily relocated to a decent, safe, and sanitary dwelling;
    (2) Pay the actual reasonable out-of-pocket moving expenses and any 
reasonable increase in rent and utility costs incurred in connection 
with the temporary relocation; and
    (3) Make available to the displaced person as soon as feasible, at 
least one comparable replacement dwelling. (For purposes of filing a 
claim and meeting the eligibility requirements for a relocation 
payment, the date of displacement is the date the person moves from the 
temporarily occupied dwelling.)


Sec.  24.205  Relocation planning, advisory services, and coordination.

    (a) Relocation planning. During the early stages of development, an 
Agency shall plan Federal and federally-assisted programs or projects 
in such a manner that recognizes the problems associated with the 
displacement of individuals, families, businesses, farms, and nonprofit 
organizations and develops solutions to minimize the adverse impacts of 
displacement. Such planning, where appropriate, shall precede any 
action by an Agency which will cause displacement, and should be scoped 
to the complexity and nature of the anticipated displacing activity 
including an evaluation of program resources available to carry out 
timely and orderly relocations. Planning may involve a relocation 
survey or study which may include the following:
    (1) An estimate of the number of households to be displaced 
including information such as owner/tenant status, estimated value and 
rental rates of properties to be acquired, family characteristics, and 
special consideration of the impacts on minorities, the elderly, large 
families, and persons with disabilities when applicable.

[[Page 70369]]

    (2) An estimate of the number of comparable replacement dwellings 
in the area (including price ranges and rental rates) that are expected 
to be available to fulfill the needs of those households displaced. 
When an adequate supply of comparable housing is not expected to be 
available, the Agency should consider housing of last resort actions.
    (3) An estimate of the number, type and size of the businesses, 
farms, and nonprofit organizations to be displaced and the approximate 
number of employees that may be affected.
    (4) An estimate of the availability of replacement business sites. 
When an adequate supply of replacement business sites is not expected 
to be available, the impacts of displacing the businesses should be 
considered and addressed. Planning for displaced businesses which are 
reasonably expected to involve complex or lengthy moving processes or 
small businesses with limited financial resources and/or few 
alternative relocation sites should include an analysis of business 
moving problems.
    (5) Consideration of any special relocation advisory services that 
may be necessary from the displacing Agency and other cooperating 
Agencies.
    (b) Loans for planning and preliminary expenses. In the event that 
an Agency elects to consider using the duplicative provision in section 
215 of the Uniform Act which permits the use of project funds for loans 
to cover planning and other preliminary expenses for the development of 
additional housing, the Lead Agency will establish criteria and 
procedures for such use upon the request of the Federal Agency funding 
the program or project.
    (c) Relocation assistance advisory services. (1) General. The 
Agency shall carry out a relocation assistance advisory program which 
satisfies the requirements of title VI of the Civil Rights Act of 1964 
(42 U.S.C. 2000d et seq.), title VIII of the Civil Rights Act of 1968 
(42 U.S.C. 3601 et seq.), and Executive Order 11063 (27 FR 11527, 
November 24, 1962), and offer the services described in paragraph 
(c)(2) of this section. If the Agency determines that a person 
occupying property adjacent to the real property acquired for the 
project is caused substantial economic injury because of such 
acquisition, it may offer advisory services to such person.
    (2) Services to be provided. The advisory program shall include 
such measures, facilities, and services as may be necessary or 
appropriate in order to:
    (i) Determine, for non-residential (businesses, farms and non-
profit organizations) displacements, the relocation needs and 
preferences of each business (farms and non-profit organizations) to be 
displaced and explain the relocation payments and other assistance for 
which the business may be eligible, the related eligibility 
requirements, and the procedures for obtaining such assistance. This 
shall include a personal interview with each business. At a minimum, 
interviews with displaced business owners and operators should include 
the following items:
    (A) The business's replacement site requirements, current lease 
terms and other contractual obligations and the financial capacity of 
the business to accomplish the move.
    (B) Determination of the need for outside specialists in accordance 
with Sec.  24.301(g)(12) that will be required to assist in planning 
the move, assistance in the actual move, and in the reinstallation of 
machinery and/or other personal property.
    (C) For tenant businesses, an identification and resolution of 
personalty/realty issues. This determination must be made prior to the 
appraisal of the property.
    (D) An estimate of the time required for the business to vacate the 
site.
    (E) An estimate of the searching expense payments required based on 
the anticipated difficulty in locating a replacement property.
    (F) An identification of any advance relocation payments required 
for the move, and the Agency's legal capacity to provide them.
    (ii) Determine, for residential displacements, the relocation needs 
and preferences of each person to be displaced and explain the 
relocation payments and other assistance for which the person may be 
eligible, the related eligibility requirements, and the procedures for 
obtaining such assistance. This shall include a personal interview with 
each residential displaced person. At a minimum, interviews with 
displaced business owners and operators should include the following 
items:
    (A) Provide current and continuing information on the availability, 
purchase prices, and rental costs of comparable replacement dwellings, 
and explain that the person cannot be required to move unless at least 
one comparable replacement dwelling is made available as set forth in 
Sec.  24.204(a).
    (B) As soon as feasible, the Agency shall inform the person in 
writing of the specific comparable replacement dwelling and the price 
or rent used for establishing the upper limit of the replacement 
housing payment (See Sec.  24.403 (a) and (b)) and the basis for the 
determination, so that the person is aware of the maximum replacement 
housing payment for which he or she may qualify.
    (C) Where feasible, housing shall be inspected prior to being made 
available to assure that it meets applicable standards. (See Sec.  
24.2(a)(8).) If such an inspection is not made, the Agency shall notify 
the person to be displaced that a replacement housing payment may not 
be made unless the replacement dwelling is subsequently inspected and 
determined to be decent, safe, and sanitary.
    (D) Whenever possible, minority persons shall be given reasonable 
opportunities to relocate to decent, safe, and sanitary replacement 
dwellings, not located in an area of minority concentration, that are 
within their financial means. While this policy does not require an 
Agency to provide a person a larger payment than is necessary to enable 
a person to relocate to a comparable replacement dwelling, if a 
displacing Agency has a program objective of providing minority persons 
with an opportunity to relocate to areas outside of minority 
concentration, the Agency may determine to provide a reasonable and 
justifiable increase in the payment to facilitate a move to a 
comparable replacement dwelling in such areas.
    (E) The Agency shall offer all persons transportation to inspect 
housing to which they are referred.
    (F) Any displaced person that may be eligible for government 
housing assistance at the replacement dwelling shall be advised of any 
requirements of such government housing assistance program that would 
limit the size of the replacement dwelling (see Sec.  24.2(a)(6)(ix)), 
as well as of the long term nature of such rent subsidy, and the 
limited (42 month) duration of the relocation rental assistance 
payment.
    (iii) Provide, for non-residential moves, current and continuing 
information on the availability, purchase prices, and rental costs of 
suitable commercial and farm properties and locations. Assist any 
person displaced from a business or farm operation to obtain and become 
established in a suitable replacement location.
    (iv) Minimize hardships to persons in adjusting to relocation by 
providing counseling, advice as to other sources of assistance that may 
be available, and such other help as may be appropriate.
    (v) Supply persons to be displaced with appropriate information 
concerning Federal and State housing

[[Page 70370]]

programs, disaster loan and other programs administered by the Small 
Business Administration, and other Federal and State programs offering 
assistance to displaced persons, and technical help to persons applying 
for such assistance.
    (d) Coordination of relocation activities. Relocation activities 
shall be coordinated with project work and other displacement-causing 
activities to ensure that, to the extent feasible, persons displaced 
receive consistent treatment and the duplication of functions is 
minimized. (See also Sec.  24.6.)
    (e) Any person who occupies property acquired by an Agency, when 
such occupancy began subsequent to the acquisition of the property, and 
the occupancy is permitted by a short term rental agreement or an 
agreement subject to termination when the property is needed for a 
program or project, shall be eligible for advisory services, as 
determined by the Agency.


Sec.  24.206  Eviction for cause.

    An eviction may not be undertaken to deny assistance or evade the 
provisions of the Uniform Act or this part. Any person who occupies the 
real property on the date of the initiation of negotiations is presumed 
to be entitled to relocation payments and other assistance set forth in 
this part unless the Agency determines that such person vacated the 
real property as the result of an eviction for cause. (See Sec.  
24.2(a)(12) and appendix A section 24.206.)


Sec.  24.207  General requirements--claims for relocation payments.

    (a) Documentation. Any claim for a relocation payment shall be 
supported by such documentation as may be reasonably required to 
support expenses incurred, such as bills, certified prices, appraisals, 
or other evidence of such expenses. A displaced person must be provided 
reasonable assistance necessary to complete and file any required claim 
for payment.
    (b) Expeditious payments. The Agency shall review claims in an 
expeditious manner. The claimant shall be promptly notified as to any 
additional documentation that is required to support the claim. Payment 
for a claim shall be made as soon as feasible following receipt of 
sufficient documentation to support the claim.
    (c) Advance payments. If a person demonstrates the need for an 
advance relocation payment in order to avoid or reduce a hardship, the 
Agency shall issue the payment, subject to such safeguards as are 
appropriate to ensure that the objective of the payment is 
accomplished.
    (d) Time for filing. (1) All claims for a relocation payment shall 
be filed with the Agency no later than 18 months after:
    (i) For tenants, the date of displacement;
    (ii) For owners, the date of displacement or the date of the final 
payment for the acquisition of the real property, whichever is later.
    (2) The Agency shall waive this time period for good cause.
    (e) Notice of denial of claim. If the Agency disapproves all or 
part of a payment claimed or refuses to consider the claim on its 
merits because of untimely filing or other grounds, it shall promptly 
notify the claimant in writing of its determination, the basis for its 
determination, and the procedures for appealing that determination.
    (f) Waiver of relocation assistance. A displacing Agency shall not 
propose or request that a displaced person waive his or her rights or 
entitlements to relocation assistance and payments provided by the 
Uniform Act and this part.
    (g) Entitlement to payments. Relocation payments, provided pursuant 
to this part, provide compensation for relocation costs and impacts, 
and shall not be considered to constitute Federal financial assistance. 
Accordingly, this part does not apply to purchases of real property 
resulting from the expenditure of such payments by, or for, a displaced 
person.


Sec.  24.208  Aliens not lawfully present in the United States.

    (a) Each person seeking relocation payments or relocation advisory 
assistance shall, as a condition of eligibility, certify:
    (1) In the case of an individual, that he or she is either a 
citizen or national of the United States, or an alien who is lawfully 
present in the United States.
    (2) In the case of a family, that each family member is either a 
citizen or national of the United States, or an alien who is lawfully 
present in the United States. The certification may be made by the head 
of the household on behalf of other family members.
    (3) In the case of an unincorporated business, farm, or nonprofit 
organization, that each owner is either a citizen or national of the 
United States, or an alien who is lawfully present in the United 
States. The certification may be made by the principal owner, manager, 
or operating officer on behalf of other persons with an ownership 
interest.
    (4) In the case of an incorporated business, farm, or nonprofit 
organization, that the corporation is authorized to conduct business 
within the United States.
    (b) The certification provided pursuant to paragraphs (a)(1), 
(a)(2), and (a)(3) of this section shall indicate whether such person 
is either a citizen or national of the United States, or an alien who 
is lawfully present in the United States. Requirements concerning the 
certification in addition to those contained in this rule shall be 
within the discretion of the Federal funding Agency and, within those 
parameters, that of the displacing Agency.
    (c) In computing relocation payments under the Uniform Act, if any 
member(s) of a household or owner(s) of an unincorporated business, 
farm, or nonprofit organization is (are) determined to be ineligible 
because of a failure to be legally present in the United States, no 
relocation payments may be made to him or her. Any payment(s) for which 
such household, unincorporated business, farm, or nonprofit 
organization would otherwise be eligible shall be computed for the 
household, based on the number of eligible household members and for 
the unincorporated business, farm, or nonprofit organization, based on 
the ratio of ownership between eligible and ineligible owners.
    (d) The displacing Agency shall consider the certification provided 
pursuant to paragraph (a) of this section to be valid, unless the 
displacing Agency determines in accordance with paragraph (f) of this 
section that it is invalid based on a review of an alien's 
documentation or other information that the Agency considers reliable 
and appropriate.
    (e) Any review by the displacing Agency of the certifications 
provided pursuant to paragraph (a) of this section shall be conducted 
in a nondiscriminatory fashion. Each displacing Agency will apply the 
same standard of review to all such certifications it receives, except 
that such standard may be revised periodically.
    (f) If, based on a review of an alien's documentation or other 
credible evidence, a displacing Agency has reason to believe that a 
person's certification is invalid (for example a document reviewed does 
not on its face reasonably appear to be genuine), and that, as a 
result, such person may be an alien not lawfully present in the United 
States, it shall obtain the following information before making a final 
determination:
    (1) If the Agency has reason to believe that the certification of a 
person who has certified that he or she is an alien

[[Page 70371]]

lawfully present in the United States is invalid, the displacing Agency 
shall obtain verification of the alien's status from the local Bureau 
of Citizenship and Immigration Service (BCIS) Office. A list of local 
BCIS offices is available at http://www.bcis.gov/graphics/fieldoffices/
alphaa.htm. Any request for BCIS verification shall include the alien's 
full name, date of birth and alien number, and a copy of the alien's 
documentation. (If an Agency is unable to contact the BCIS, it may 
contact the FHWA in Washington, DC, Office of Real Estate Services at 
202-366-0142 or Office of Chief Counsel, 202-366-0740, for a referral 
to the BCIS.)
    (2) If the Agency has reason to believe that the certification of a 
person who has certified that he or she is a citizen or national is 
invalid, the displacing Agency shall request evidence of United States 
citizenship or nationality from such person and, if considered 
necessary, verify the accuracy of such evidence with the issuer.
    (g) No relocation payments or relocation advisory assistance shall 
be provided to a person who has not provided the certification 
described in this section or who has been determined to be not lawfully 
present in the United States, unless such person can demonstrate to the 
displacing Agency's satisfaction that the denial of relocation 
assistance will result in an exceptional and extremely unusual hardship 
to such person's spouse, parent, or child who is a citizen of the 
United States, or is an alien lawfully admitted for permanent residence 
in the United States.
    (h) For purposes of paragraph (g) of this section, ``exceptional 
and extremely unusual hardship'' to such spouse, parent, or child of 
the person not lawfully present in the United States means that the 
denial of relocation payments and advisory assistance to such person 
will directly result in:
    (1) A significant and demonstrable adverse impact on the health or 
safety of such spouse, parent, or child;
    (2) A significant and demonstrable adverse impact on the continued 
existence of the family unit of which such spouse, parent, or child is 
a member; or
    (3) Any other impact that the displacing Agency determines will 
have a significant and demonstrable adverse impact on such spouse, 
parent, or child.
    (i) The certification referred to in paragraph (a) of this section 
may be included as part of the claim for relocation payments described 
in Sec.  24.207 of this part. (Approved by the Office of Management and 
Budget under control number 2105-0508.)


Sec.  24.209  Relocation payments not considered as income.

    No relocation payment received by a displaced person under this 
part shall be considered as income for the purpose of the Internal 
Revenue Code of 1954, which has been redesignated as the Internal 
Revenue Code of 1986 (Title 26, U.S.C.), or for the purpose of 
determining the eligibility or the extent of eligibility of any person 
for assistance under the Social Security Act (42 U.S.C. 301 et seq.) or 
any other Federal law, except for any Federal law providing low-income 
housing assistance.

Subpart D--Payments for Moving and Related Expenses


Sec.  24.301  Payment for actual reasonable moving and related 
expenses.

    (a) General. (1) Any owner-occupant or tenant who qualifies as a 
displaced person (defined at Sec.  24.2(a)(9)) and who moves from a 
dwelling (including a mobile home) or who moves from a business, farm 
or non-profit organization is entitled to payment of his or her actual 
moving and related expenses, as the Agency determines to be reasonable 
and necessary.
    (2) A non-occupant owner of a rented mobile home is eligible for 
actual cost reimbursement under Sec.  24.301 to relocate the mobile 
home. If the mobile home is not acquired as real estate, but the 
homeowner-occupant obtains a replacement housing payment under one of 
the circumstances described at Sec.  24.502(a)(3), the owner is not 
eligible for payment for moving the mobile home, but may be eligible 
for a payment for moving personal property from the mobile home.
    (b) Moves from a dwelling. A displaced person's actual, reasonable 
and necessary moving expenses for moving personal property from a 
dwelling may be determined based on the cost of one, or a combination 
of the following methods, but not by the lower of two bids or 
estimates. Eligible expenses for moves from a dwelling include the 
expenses described in paragraphs (g)(1) through (g)(7) of this section.
    (1) Commercial move--moves performed by a professional mover.
    (2) Self move--moves that may be performed by the displaced person 
in one or a combination of the following methods:
    (i) Fixed Residential Moving Cost Schedule. (Described in Sec.  
24.302.)
    (ii) Actual cost move. Supported by receipted bills for labor and 
equipment. Hourly labor rates and equipment rental fees should not 
exceed the cost paid by a commercial mover.
    (iii) Moving cost finding. A qualified Agency staff person may 
estimate and determine the cost of a small uncomplicated personal 
property move of $3,000 or less, with the informed consent of the 
displaced person. This estimate may include only the cost of moving 
personal property located outside of the dwelling, that is not included 
in the Fixed Residential Moving Cost Schedule, such as personal 
property in garages, storage sheds or other loose items outside of 
structures that are personal property.
    (c) Moves from a mobile home. A displaced person's actual, 
reasonable and necessary moving expenses for moving personal property 
from a mobile home may be determined based on the cost of one, or a 
combination of the following methods, but not by the lower of two bids 
or estimates. Eligible expenses for moves from a mobile home include 
those expenses described in paragraphs (g)(1) through (g)(7) of this 
section. In addition to the items in paragraph (a) of this section, the 
owner-occupant of a mobile home that is moved as personal property and 
used as the person's replacement dwelling, is also eligible for the 
moving expenses described in paragraphs (g)(8) through (g)(10) of this 
section.
    (1) Commercial move--moves performed by a professional mover.
    (2) Self move--moves that may be performed by the displaced person 
in one or a combination of the following methods:
    (i) Fixed Residential Moving Cost Schedule. (Described in Sec.  
24.302.)
    (ii) Actual cost move. Supported by receipted bills for labor and 
equipment. Hourly labor rates and equipment rental fees should not 
exceed the cost paid by a commercial mover.
    (iii) Moving cost finding. A qualified Agency staff person may 
estimate and determine the cost of a small uncomplicated personal 
property move of $3,000 or less, with the informed consent of the 
displaced person. This estimate may include only the cost of moving 
personal property located outside of the mobile home, that is not 
included in the Fixed Residential Moving Cost Schedule, such as 
personal property in garages, storage sheds or other loose items 
outside of structures that are personal property
    (d) Moves from a business, farm or nonprofit organization. Personal 
property as determined by an inventory from a business, farm or non-
profit organization may be moved by one or a combination of the 
following methods. Eligible expenses for moves from a business, farm or 
nonprofit organization include those expenses described in

[[Page 70372]]

paragraphs (g)(1) through (g)(7) of this section and paragraphs (g)(11) 
through (g)(18) of this section and Sec.  24.303.
    (1) Commercial move. Based on the lower of two bids or estimates 
prepared by a commercial mover. At the Agency's discretion, payment for 
a low cost or uncomplicated move may be based on a single bid or 
estimate.
    (2) Self-move. A self-move payment may be based on one or a 
combination of the following:
    (i) The lower of two bids or estimates prepared by a commercial 
mover or qualified Agency staff person. At the Agency's discretion, 
payment for a low cost or uncomplicated move may be based on a single 
bid or estimate; or
    (ii) Moving cost finding. A qualified Agency staff person may 
estimate and determine the cost of a small uncomplicated personal 
property move of $3,000 or less, with the informed consent of the 
displaced person. This method may be used to estimate the cost of small 
uncomplicated moves of equipment or other personal property.
    (e) Personal property only. Eligible expenses for a person who is 
required to move personal property from real property but is not 
required to move from a dwelling (including a mobile home), business, 
farm or nonprofit organization include those expenses described in 
paragraphs (g)(1) through (g)(7) of this section.
    (f) Advertising signs. The amount of a payment for direct loss of 
an advertising sign which is personal property shall be the lesser of:
    (1) The depreciated reproduction cost of the sign, as determined by 
the Agency, less the proceeds from its sale; or
    (2) The estimated cost of moving the sign, but with no allowance 
for storage.
    (g) Eligible actual moving expenses. (1) Transportation of the 
displaced person and personal property. Transportation costs for a 
distance beyond 50 miles are not eligible, unless the Agency determines 
that relocation beyond 50 miles is justified.
    (2) Packing, crating, unpacking, and uncrating of the personal 
property.
    (3) Disconnecting, dismantling, removing, reassembling, and 
reinstalling relocated household appliances, machinery, equipment, and 
other personal property, including substitute personal property. For 
businesses, this includes connection to utilities available within the 
building. It also includes modifications to the personal property 
necessary to adapt it to the replacement structure, the replacement 
site, or the utilities at the replacement site, and modifications 
necessary to adapt the utilities at the replacement site to the 
personal property.
    (4) Storage of the personal property for a period not to exceed l2 
months, unless the Agency determines that a longer period is necessary.
    (5) Insurance for the replacement value of the property in 
connection with the move and necessary storage.
    (6) The replacement value of property lost, stolen, or damaged in 
the process of moving (not through the fault or negligence of the 
displaced person, his or her agent, or employee) where insurance 
covering such loss, theft, or damage is not reasonably available.
    (7) Other moving-related expenses that are not listed as ineligible 
under Sec.  24.301(h), as the Agency determines to be reasonable and 
necessary.
    (8) The reasonable cost of disassembling, moving, and reassembling 
any appurtenances attached to a mobile home, such as porches, decks, 
skirting, and awnings, which were not acquired, anchoring of the unit, 
and utility ``hookup'' charges.
    (9) The reasonable cost of repairs and/or modifications so that a 
mobile home can be moved and/or made decent, safe, and sanitary.
    (10) The cost of a nonrefundable mobile home park entrance fee, to 
the extent it does not exceed the fee at a comparable mobile home park, 
if the person is displaced from a mobile home park or the Agency 
determines that payment of the fee is necessary to effect relocation.
    (11) Any license, permit, fees or certification required of the 
displaced person at the replacement location. However, the payment may 
be based on the remaining useful life of the existing license, permit, 
fees or certification.
    (12) Professional services as the Agency determines to be actual, 
reasonable and necessary for:
    (i) Planning the move of the personal property;
    (ii) Moving the personal property; and
    (iii) Installing the relocated personal property at the replacement 
location.
    (13) Relettering signs and replacing stationery on hand at the time 
of displacement that are made obsolete as a result of the move.
    (14) Actual direct loss of tangible personal property incurred as a 
result of moving or discontinuing the business or farm operation. The 
payment shall consist of the lesser of:
    (i) The market value in place of the item as is for continued use, 
less the proceeds from its sale. (To be eligible for payment, the 
claimant must make a good faith effort to sell the personal property, 
unless the Agency determines that such effort is not necessary. When 
payment for property loss is claimed for goods held for sale, the 
market value shall be based on the cost of the goods to the business, 
not the potential selling prices.); or
    (ii) The estimated cost of moving the item as is, but not including 
any allowance for storage; or for reconnecting a piece of equipment if 
the equipment is in storage or not being used at the acquired site (See 
appendix A, section 24.301(g)(14)(ii).) If the business or farm 
operation is discontinued, the estimated cost of moving the item shall 
be based on a moving distance of 50 miles.
    (15) The reasonable cost incurred in attempting to sell an item 
that is not to be relocated.
    (16) Purchase of substitute personal property. If an item of 
personal property which is used as part of a business or farm operation 
is not moved but is promptly replaced with a substitute item that 
performs a comparable function at the replacement site, the displaced 
person is entitled to payment of the lesser of:
    (i) The cost of the substitute item, including installation costs 
of the replacement site, minus any proceeds from the sale or trade-in 
of the replaced item; or
    (ii) The estimated cost of moving and reinstalling the replaced 
item but with no allowance for storage. At the Agency's discretion, the 
estimated cost for a low cost or uncomplicated move may be based on a 
single bid or estimate.
    (17) Searching for a replacement location. A business or farm 
operation is entitled to reimbursement for actual expenses, not to 
exceed $2,500, as the Agency determines to be reasonable, which are 
incurred in searching for a replacement location, including:
    (i) Transportation;
    (ii) Meals and lodging away from home;
    (iii) Time spent searching, based on reasonable salary or earnings;
    (iv) Fees paid to a real estate agent or broker to locate a 
replacement site, exclusive of any fees or commissions related to the 
purchase of such sites; and
    (v) The costs of obtaining permits and attending zoning hearings.
    (18) Low value/high bulk. When the personal property which is used 
in connection with any business or farm operation is of low value and 
high bulk, and the cost of moving the property would be 
disproportionate in relation to its value in the judgment of the 
displacing Agency, the allowable moving cost reimbursement shall not 
exceed the difference between the

[[Page 70373]]

amount which would have been received if such property was sold, and 
the cost of replacing the material at the replacement site with a 
comparable quantity available on the market. This provision applies to 
items such as stockpiled sand, gravel, minerals, and other similar 
items of personal property.
    (h) Ineligible moving and related expenses. A displaced person is 
not entitled to payment for:
    (1) The cost of moving any structure or other real property 
improvement in which the displaced person reserved ownership. (However, 
this part does not preclude the computation under Sec.  
24.401(c)(2)(iii));
    (2) Interest on a loan to cover moving expenses;
    (3) Loss of goodwill;
    (4) Loss of profits;
    (5) Loss of trained employees;
    (6) Any additional operating expenses of a business or farm 
operation incurred because of operating in a new location except as 
provided in Sec.  24.304(a)(6);
    (7) Personal injury;
    (8) Any legal fee or other cost for preparing a claim for a 
relocation payment or for representing the claimant before the Agency;
    (9) Expenses for searching for a replacement dwelling;
    (10) Physical changes to the real property at the replacement 
location of a business or farm operation except as provided in 
Sec. Sec.  24.301(g)(3) and 24.304(a); and
    (11) Costs for storage of personal property on real property 
already owned or leased by the displaced person.
    (12) Refundable security and utility deposits.
    (i) Notification and inspection. The Agency shall inform the 
displaced person, in writing, of the requirements of this section as 
soon as possible after the initiation of negotiations. This information 
may be included in the relocation information provided the displaced 
person as set forth in Sec.  24.203. To be eligible for payments under 
this section the displaced person must:
    (1) Provide the Agency reasonable advance notice of the approximate 
date of the start of the move or disposition of the personal property 
and an inventory of the items to be moved. However, the Agency may 
waive this notice requirement after documenting its file accordingly.
    (2) Permit the Agency to make reasonable and timely inspections of 
the personal property at both the displacement and replacement sites 
and to monitor the move.
    (j) Transfer of ownership. Upon request and in accordance with 
applicable law, the claimant shall transfer to the Agency ownership of 
any personal property that has not been moved, sold, or traded in.


Sec.  24.302  Fixed payment for moving expenses--residential moves.

    Any person displaced from a dwelling or a seasonal residence or a 
dormitory style room is entitled to receive a fixed moving cost payment 
as an alternative to a payment for actual moving and related expenses 
under Sec.  24.301. This payment shall be determined according to the 
Fixed Residential Moving Cost Schedule \2\ approved by the Federal 
Highway Administration and published in the Federal Register on a 
periodic basis. The payment to a person with minimal personal 
possessions who is in occupancy of a dormitory style room or a person 
whose residential move is performed by an Agency at no cost to the 
person shall be limited to the amount stated in the most recent edition 
of the Fixed Residential Moving Cost Schedule.
---------------------------------------------------------------------------

    \2\ The Fixed Residential Moving Cost Schedule is available at 
the following URL: http://www.fhwa.dot.gov//////realestate/
fixsch96.htm. Agencies are cautioned to ensure they are using the 
most recent edition.
---------------------------------------------------------------------------


Sec.  24.303  Related non-residential eligible expenses.

    The following expenses, in addition to those provided by Sec.  
24.301 for moving personal property, shall be provided if the Agency 
determines that they are actual, reasonable and necessary:
    (a) Connection to available nearby utilities from the right-of-way 
to improvements at the replacement site.
    (b) Professional services in connection with the purchase or lease 
of a replacement site including feasibility surveys, soil testing, and 
marketing studies (exclusive of any fees or commissions related to such 
site).
    (c) Impact fees or one time assessments for anticipated heavy 
utility usage, as determined necessary by the Agency.


Sec.  24.304  Reestablishment expenses--non-residential moves.

    In addition to the payments available under Sec. Sec.  24.301 and 
24.303 of this subpart, a small business, as defined in Sec.  
24.2(a)(25), farm or nonprofit organization is entitled to receive a 
payment, not to exceed $10,000, for expenses actually incurred in 
relocating and reestablishing such small business, farm or nonprofit 
organization at a replacement site.
    (a) Eligible expenses. Reestablishment expenses must be reasonable 
and necessary, as determined by the Agency. They include, but are not 
limited to, the following:
    (1) Repairs or improvements to the replacement real property as 
required by Federal, State or local law, code or ordinance.
    (2) Modifications to the replacement property to accommodate the 
business operation or make replacement structures suitable for 
conducting the business.
    (3) Construction and installation costs for exterior signing to 
advertise the business.
    (4) Redecoration or replacement of soiled or worn surfaces at the 
replacement site, such as paint, paneling, or carpeting.
    (5) Advertisement of replacement location.
    (6) Estimated increased costs of operation during the first 2 years 
at the replacement site for such items as:
    (i) Lease or rental charges,
    (ii) Personal or real property taxes,
    (iii) Insurance premiums, and
    (iv) Utility charges, excluding impact fees.
    (7) Other items that the Agency considers essential to the 
reestablishment of the business.
    (b) Ineligible expenses. The following is a nonexclusive listing of 
reestablishment expenditures not considered to be reasonable, 
necessary, or otherwise eligible:
    (1) Purchase of capital assets, such as, office furniture, filing 
cabinets, machinery, or trade fixtures.
    (2) Purchase of manufacturing materials, production supplies, 
product inventory, or other items used in the normal course of the 
business operation.
    (3) Interest on money borrowed to make the move or purchase the 
replacement property.
    (4) Payment to a part-time business in the home which does not 
contribute materially (defined at Sec.  24.2(a)(7)) to the household 
income.


Sec.  24.305  Fixed payment for moving expenses--non-residential moves.

    (a) Business. A displaced business may be eligible to choose a 
fixed payment in lieu of the payments for actual moving and related 
expenses, and actual reasonable reestablishment expenses provided by 
Sec. Sec.  24.301 and 24.303. Such fixed payment, except for payment to 
a nonprofit organization, shall equal the average annual net earnings 
of the business, as computed in accordance with paragraph (e) of this 
section, but not less than $1,000 nor more than $20,000. The displaced 
business is eligible for the payment if the Agency determines that:
    (1) The business owns or rents personal property which must be 
moved

[[Page 70374]]

in connection with such displacement and for which an expense would be 
incurred in such move and, the business vacates or relocates from its 
displacement site;
    (2) The business cannot be relocated without a substantial loss of 
its existing patronage (clientele or net earnings.) A business is 
assumed to meet this test unless the Agency determines that it will not 
suffer a substantial loss of its existing patronage;
    (3) The business is not part of a commercial enterprise having more 
than three other entities which are not being acquired by the Agency, 
and which are not under the same ownership and engaged in the same or 
similar business activities.
    (4) The business is not operated at a displacement dwelling solely 
for the purpose of renting such dwelling to others;
    (5) The business is not operated at the displacement site solely 
for the purpose of renting the site to others; and
    (6) The business contributed materially to the income of the 
displaced person during the 2 taxable years prior to displacement. (See 
Sec.  24.2(a)(7).)
    (b) Determining the number of businesses. In determining whether 
two or more displaced legal entities constitute a single business which 
is entitled to only one fixed payment, all pertinent factors shall be 
considered, including the extent to which:
    (1) The same premises and equipment are shared;
    (2) Substantially identical or interrelated business functions are 
carried out and business and financial affairs are commingled;
    (3) The entities are held out to the public, and to those 
customarily dealing with them, as one business; and
    (4) The same person or closely related persons own, control, or 
manage the affairs of the entities.
    (c) Farm operation. A displaced farm operation (defined at Sec.  
24.2(a)(13)) may choose a fixed payment, in lieu of the payments for 
actual moving and related expenses and actual reasonable 
reestablishment expenses, in an amount equal to its average annual net 
earnings as computed in accordance with paragraph (e) of this section, 
but not less than $1,000 nor more than $20,000. In the case of a 
partial acquisition of land which was a farm operation before the 
acquisition, the fixed payment shall be made only if the Agency 
determines that:
    (1) The acquisition of part of the land caused the operator to be 
displaced from the farm operation on the remaining land; or
    (2) The partial acquisition caused a substantial change in the 
nature of the farm operation.
    (d) Nonprofit organization. A displaced nonprofit organization may 
choose a fixed payment of $1,000 to $20,000, in lieu of the payments 
for actual moving and related expenses and actual reasonable 
reestablishment expenses, if the Agency determines that it cannot be 
relocated without a substantial loss of existing patronage (membership 
or clientele.) A nonprofit organization is assumed to meet this test, 
unless the Agency demonstrates otherwise. Any payment in excess of 
$1,000 must be supported with financial statements for the two 12-month 
periods prior to the acquisition. The amount to be used for the payment 
is the average of 2 years annual gross revenues less administrative 
expenses. (See appendix A, 24.305(d).)
    (e) Average annual net earnings of a business or farm operation. 
The average annual net earnings of a business or farm operation are 
one-half of its net earnings before Federal, State, and local income 
taxes during the 2 taxable years immediately prior to the taxable year 
in which it was displaced. If the business or farm was not in operation 
for the full 2 taxable years prior to displacement, net earnings shall 
be based on the actual period of operation at the displacement site 
during the 2 taxable years prior to displacement, projected to an 
annual rate. Average annual net earnings may be based upon a different 
period of time when the Agency determines it to be more equitable. Net 
earnings include any compensation obtained from the business or farm 
operation by its owner, the owner's spouse, and dependents. The 
displaced person shall furnish the Agency proof of net earnings through 
income tax returns, certified financial statements, or other reasonable 
evidence which the Agency determines is satisfactory. (See appendix A, 
24.305(e).)


Sec.  24.306  Discretionary utility relocation payments.

    (a) Whenever a program or project undertaken by a displacing Agency 
causes the relocation of a utility facility (See Sec.  24.2(a)(32)) and 
the relocation of the facility creates extraordinary expenses for its 
owner, the displacing Agency may, at its option, make a relocation 
payment to the owner for all or part of such expenses, if the following 
criteria are met:
    (1) The utility facility legally occupies State or local government 
property, or property over which the State or local government has an 
easement or right-of-way;
    (2) The utility facility's right of occupancy thereon is pursuant 
to State law or local ordinance specifically authorizing such use, or 
where such use and occupancy has been granted through a franchise, use 
and occupancy permit, or other similar agreement;
    (3) Relocation of the utility facility is required by and is 
incidental to the primary purpose of the project or program undertaken 
by the displacing Agency;
    (4) There is no Federal law, other than the Uniform Act, which 
clearly establishes a policy for the payment of utility moving costs 
that is applicable to the displacing Agency's program or project; and
    (5) State or local government reimbursement for utility moving 
costs or payment of such costs by the displacing Agency is in 
accordance with State law.
    (b) For the purposes of this section, the term extraordinary 
expenses means those expenses which, in the opinion of the displacing 
Agency, are not routine or predictable expenses relating to the 
utility's occupancy of rights-of-way, and are not ordinarily budgeted 
as operating expenses, unless the owner of the utility facility has 
explicitly and knowingly agreed to bear such expenses as a condition 
for use of the property, or has voluntarily agreed to be responsible 
for such expenses.
    (c) A relocation payment to a utility facility owner for moving 
costs under this section may not exceed the cost to functionally 
restore the service disrupted by the federally-assisted program or 
project, less any increase in value of the new facility and salvage 
value of the old facility. The displacing Agency and the utility 
facility owner shall reach prior agreement on the nature of the utility 
relocation work to be accomplished, the eligibility of the work for 
reimbursement, the responsibilities for financing and accomplishing the 
work, and the method of accumulating costs and making payment. (See 
appendix A to this part, section 24.306.)

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

[[Page 70375]]

    (2) Purchases and occupies a decent, safe, and sanitary replacement 
dwelling within one year after the later of the following dates (except 
that the 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 market value for residential use of the 
replacement site (See appendix A of this part, section 
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 interests 
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, section 24.401(d).) In the case of a home 
equity loan the unpaid balance shall be that balance which existed 180 
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 when required.
    (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 determines 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

[[Page 70376]]

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 and disbursed in accordance with Sec.  
24.402(b), however, the calculation under Sec.  24.402(b)(2)(ii) is not 
applicable. Under no circumstance would the rental assistance payment 
exceed the amount that could have been received had the 180-day 
homeowner elected to receive a replacement housing payment under 
paragraph (a) of this section.


Sec.  24.402  Replacement housing payment for 90-day occupants.

    (a) Eligibility. A tenant or owner-occupant displaced from a 
dwelling is entitled to a payment not to exceed $5,250 for rental 
assistance, as computed in accordance with paragraph (b) of this 
section, or downpayment assistance, as computed in accordance with 
paragraph (c) of this section, if such displaced person:
    (1) Has actually and lawfully occupied the displacement dwelling 
for at least 90 days immediately prior to the initiation of 
negotiations; and
    (2) Has rented, or purchased, and occupied a decent, safe, and 
sanitary replacement dwelling within 1 year (unless the Agency extends 
this period for good cause) after:
    (i) For a tenant, the date he or she moves from the displacement 
dwelling; or
    (ii) For an owner-occupant, the later of:
    (A) The date he or she 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 with the court; or
    (B) The date he or she moves from the displacement dwelling.
    (b) Rental assistance payment--(1) Amount of payment. An eligible 
displaced person who rents a replacement dwelling is entitled to a 
payment not to exceed $5,250 for rental assistance. (See also Sec.  
24.404.) Such payment shall be 42 times the amount obtained by 
subtracting the base monthly rental for the displacement dwelling from 
the lesser of:
    (i) The monthly rent and estimated average monthly cost of 
utilities for a comparable replacement dwelling; or
    (ii) The monthly rent and estimated average monthly cost of 
utilities for the decent, safe, and sanitary replacement dwelling 
actually occupied by the displaced person.
    (2) Base monthly rental for displacement dwelling. The base monthly 
rental for the displacement dwelling is the lesser of:
    (i) The average monthly cost for rent and utilities at the 
displacement dwelling for a reasonable period prior to displacement, as 
determined by the Agency (for an owner-occupant, use the fair market 
rent for the displacement dwelling. For a tenant who paid little or no 
rent for the displacement dwelling, use the fair market rent, unless 
its use would result in a hardship because of the person's income or 
other circumstances);
    (ii) Thirty (30) percent of the displaced person's average monthly 
gross household income if the amount is classified as ``low income'' by 
the U.S. Department of Housing and Urban Development's annual survey of 
Income Limits for the Public Housing and Section 8 Programs.\3\ The 
base monthly rental shall be established solely on the criteria in 
paragraph (b)(2)(i) of this section for persons with income exceeding 
the survey's ``low income'' limits, for persons refusing to provide 
appropriate evidence of income, and for persons who are dependents. A 
full time student or resident of an institution may be assumed to be a 
dependent, unless the person demonstrates otherwise or,
    (iii) The total of the amounts designated for shelter and utilities 
if the displaced person is receiving a welfare assistance payment from 
a program that designates the amounts for shelter and utilities.
---------------------------------------------------------------------------

    \3\ The U.S. Department of Housing and Urban Development's Home 
Program Income Llimits are updated annually and are available 
annually on HUD's Web site at http://www.huduser.org/datasets/
il.html.
---------------------------------------------------------------------------

    (3) Manner of disbursement. A rental assistance payment may, at the 
Agency's discretion, be disbursed in either a lump sum or in 
installments. However, except as limited by Sec.  24.403(f), the full 
amount vests immediately, whether or not there is any later change in 
the person's income or rent, or in the condition or location of the 
person's housing.
    (c) Downpayment assistance payment--(1) Amount of payment. An 
eligible displaced person who purchases a replacement dwelling is 
entitled to a downpayment assistance payment in the amount the person 
would receive under paragraph (b) of this section if the person rented 
a comparable replacement dwelling. At the Agency's discretion, a 
downpayment assistance payment that is less than $5,250 may be 
increased to any amount not to exceed $5,250. However, the payment to a 
displaced homeowner shall not exceed the amount the owner would receive 
under Sec.  24.401(b) if he or she met the 180-day occupancy 
requirement. If the Agency elects to provide the maximum payment of 
$5,250 as a downpayment, the Agency shall apply this discretion in a 
uniform and consistent manner, so that eligible displaced persons in 
like circumstances are treated equally. A displaced person eligible to 
receive a payment as a 180-day owner-occupant under Sec.  24.401(a) is 
not eligible for this payment. (See appendix A, section 24.402.)
    (2) Application of payment. The full amount of the replacement 
housing payment for downpayment assistance must be applied to the 
purchase price of the replacement dwelling and related incidental 
expenses.


Sec.  24.403  Additional rules governing replacement housing payments.

    (a) Determining cost of comparable replacement dwelling. The upper 
limit of a replacement housing payment shall be based on the cost of a 
comparable replacement dwelling (defined at Sec.  24.2(a)(6)), and the 
amount, if any, that will compensate a displaced homeowner for the 
estimated amount of any increase real estate taxes for 24 months 
determined in accordance with appendix A. (See appendix A, section 
24.403(a).)
    (1) If available, at least three comparable replacement dwellings 
shall be examined and the payment computed on the basis of the dwelling 
most nearly representative of, and equal to, or better than, the 
displacement dwelling.
    (2) If the site of the comparable replacement dwelling lacks a 
major exterior attribute of the displacement dwelling site, (e.g., the 
site is significantly smaller or does not contain a swimming pool), the 
value of such attribute shall be subtracted from the acquisition cost 
of the displacement dwelling for purposes of computing the payment.
    (3) If the acquisition of a portion of a typical residential 
property causes the displacement of the owner from the dwelling and the 
remainder is a buildable residential lot, the Agency may offer to 
purchase the entire property. If the owner refuses to sell the 
remainder to the Agency, the market value of the remainder may be added 
to the acquisition cost of the displacement dwelling for purposes of 
computing the replacement housing payment.
    (4) To the extent feasible, comparable replacement dwellings shall 
be selected from the neighborhood in which the displacement dwelling 
was located or, if

[[Page 70377]]

that is not possible, in nearby or similar neighborhoods where housing 
costs are generally the same or higher.
    (5) Multiple occupants of one displacement dwelling. If two or more 
occupants of the displacement dwelling move to separate replacement 
dwellings, each occupant is entitled to a reasonable prorated share, as 
determined by the Agency, of any relocation payments that would have 
been made if the occupants moved together to a comparable replacement 
dwelling. However, if the Agency determines that two or more occupants 
maintained separate households within the same dwelling, such occupants 
have separate entitlements to relocation payments.
    (6) Deductions from relocation payments. An Agency shall deduct the 
amount of any advance relocation payment from the relocation payment(s) 
to which a displaced person is otherwise entitled. Similarly, a Federal 
Agency shall, and a State Agency may, deduct from relocation payments 
any rent that the displaced person owes the Agency; provided that no 
deduction shall be made if it would prevent the displaced person from 
obtaining a comparable replacement dwelling as required by Sec.  
24.204. The Agency shall not withhold any part of a relocation payment 
to a displaced person to satisfy an obligation to any other creditor.
    (7) Mixed-use and multifamily properties. If the displacement 
dwelling was part of a property that contained another dwelling unit 
and/or space used for non-residential purposes, and/or is located on a 
lot larger than typical for residential purposes, only that portion of 
the acquisition payment which is actually attributable to the 
displacement dwelling shall be considered the acquisition cost when 
computing the replacement housing payment.
    (b) Inspection of replacement dwelling. Before making a replacement 
housing payment or releasing the initial payment from escrow, the 
Agency or its designated representative shall inspect the replacement 
dwelling and determine whether it is a decent, safe, and sanitary 
dwelling as defined at Sec.  24.2(a)(8).
    (c) Purchase of replacement dwelling. A displaced person is 
considered to have met the requirement to purchase a replacement 
dwelling, if the person:
    (1) Purchases a dwelling;
    (2) Purchases and rehabilitates a substandard dwelling;
    (3) Relocates a dwelling which he or she owns or purchases;
    (4) Constructs a dwelling on a site he or she owns or purchases;
    (5) Contracts for the purchase or construction of a dwelling on a 
site provided by a builder or on a site the person owns or purchases; 
or
    (6) Currently owns a previously purchased dwelling and site, 
valuation of which shall be on the basis of current market value.
    (d) Occupancy requirements for displacement or replacement 
dwelling. No person shall be denied eligibility for a replacement 
housing payment solely because the person is unable to meet the 
occupancy requirements set forth in these regulations for a reason 
beyond his or her control, including:
    (1) A disaster, an emergency, or an imminent threat to the public 
health or welfare, as determined by the President, the Federal Agency 
funding the project, or the displacing Agency; or
    (2) Another reason, such as a delay in the construction of the 
replacement dwelling, military duty, or hospital stay, as determined by 
the Agency.
    (e) Conversion of payment. A displaced person who initially rents a 
replacement dwelling and receives a rental assistance payment under 
Sec.  24.402(b) is eligible to receive a payment under Sec.  24.401 or 
Sec.  24.402(c) if he or she meets the eligibility criteria for such 
payments, including purchase and occupancy within the prescribed 1 year 
period. Any portion of the rental assistance payment that has been 
disbursed shall be deducted from the payment computed under Sec.  
24.401 or Sec.  24.402(c).
    (f) Payment after death. A replacement housing payment is personal 
to the displaced person and upon his or her death the undisbursed 
portion of any such payment shall not be paid to the heirs or assigns, 
except that:
    (1) The amount attributable to the displaced person's period of 
actual occupancy of the replacement housing shall be paid.
    (2) Any remaining payment shall be disbursed to the remaining 
family members of the displaced household in any case in which a member 
of a displaced family dies.
    (3) Any portion of a replacement housing payment necessary to 
satisfy the legal obligation of an estate in connection with the 
selection of a replacement dwelling by or on behalf of a deceased 
person shall be disbursed to the estate.
    (g) Insurance proceeds. To the extent necessary to avoid duplicate 
compensation, the amount of any insurance proceeds received by a person 
in connection with a loss to the displacement dwelling due to a 
catastrophic occurrence (fire, flood, etc.) shall be included in the 
acquisition cost of the displacement dwelling when computing the price 
differential. (See also Sec.  24.3.)


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:
    (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.
    (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-

[[Page 70378]]

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.
    (viii) The change in status of the displaced person with his or her 
concurrence from tenant to homeowner when it is more cost effective to 
do so, as in cases where a downpayment may be less expensive than a 
last resort rental assistance payment.
    (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), 
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(6)(viii)). Such assistance shall cover 
a period of 42 months.

Subpart F--Mobile Homes


Sec.  24.501  Applicability.

    (a) General. This subpart describes the requirements governing the 
provision of replacement housing payments to a person displaced from a 
mobile home and/or mobile home site who meets the basic eligibility 
requirements of this part. Except as modified by this subpart, such a 
displaced person is entitled to a moving expense payment in accordance 
with subpart D to this part and a replacement housing payment in 
accordance with subpart E to this part to the same extent and subject 
to the same requirements as persons displaced from conventional 
dwellings. Moving cost payments to persons occupying mobile homes are 
covered in Sec. Sec.  24.301(g)(1) through (g)(10).
    (b) Partial acquisition of mobile home park. The acquisition of a 
portion of a mobile home park property may leave a remaining part of 
the property that is not adequate to continue the operation of the 
park. If the Agency determines that a mobile home located in the 
remaining part of the property must be moved as a direct result of the 
project, the occupant of the mobile home shall be considered to be a 
displaced person who is entitled to relocation payments and other 
assistance under this part.


Sec.  24.502  Replacement housing payment for 180-day mobile homeowner 
displaced from a mobile home, and/or from the acquired mobile home 
site.

    (a) Eligibility. An owner-occupant displaced from a mobile home is 
entitled to a replacement housing payment, not to exceed $22,500, under 
Sec.  24.401 if:
    (1) The person occupied the mobile home on the displaced site for 
at least 180 days immediately before:
    (i) The initiation of negotiations to acquire the mobile home, if 
the person owned the mobile home and the mobile home is real property;
    (ii) The initiation of negotiations to acquire the mobile home site 
if the mobile home is personal property, but the person owns the mobile 
home site; or
    (iii) The date the person is notified that he or she is a displaced 
person if the person owns neither the mobile home or the site, if the 
Agency makes one of the determinations in paragraphs (a)(3)(i) through 
(iv) of this section.
    (2) The person meets the other basic eligibility requirements at 
Sec.  24.401(a); and
    (3) The Agency acquires the mobile home as real estate, or acquires 
the mobile home site from the displaced owner, or the mobile home is 
personal property but the owner is displaced from the mobile home 
because the Agency determines that the mobile home:
    (i) Is not, and cannot economically be made decent, safe, and 
sanitary;
    (ii) Cannot be relocated without substantial damage or unreasonable 
cost;
    (iii) Cannot be relocated because there is no available comparable 
replacement site; or
    (iv) Cannot be relocated because it does not meet mobile home park 
entrance requirements.
    (b) Replacement housing payment computation for a 180-day owner 
that is displaced from a mobile home. The replacement housing payment 
for an eligible displaced 180-day owner is computed as described at 
Sec.  24.401(c) incorporating the following, as applicable:
    (1) If the Agency acquires the mobile home as real estate, the 
acquisition cost used to compute the payment is the actual amount paid 
to the owner as just compensation for the acquisition of the mobile 
home, and site, if owned by the displaced mobile homeowner.
    (2) If the owner is determined to be eligible for a replacement 
housing payment based on paragraph (a)(1)(iii) of this section, but the 
Agency does not purchase the mobile home as real estate, the cost of a 
replacement mobile home used to compute the payment, is the lesser of 
the displaced mobile homeowner's net cost to purchase a replacement 
mobile home (i.e., purchase price of the replacement mobile home less 
trade-in or sale proceeds of the displacement mobile home); or, the 
cost of the Agency's selected comparable mobile home less the Agency's 
estimate of the salvage or trade-in value for the mobile home from 
which the person is displaced.
    (c) Rental assistance payment for a 180-day owner-occupant that is 
displaced from a leased or rented mobile home site. If the displacement 
mobile home site is leased or rented, a displaced 180-day owner-
occupant is entitled to a rental assistance payment computed as 
described in Sec.  24.402(b). This rental assistance payment may be 
used to lease a replacement site; may be applied to the purchase price 
of a replacement site; or may be applied, with any replacement housing 
payment attributable to the mobile home, to the purchase of a 
replacement mobile home or conventional decent, safe and sanitary 
dwelling.
    (d) Comparable mobile home site not available. If a comparable 
replacement mobile homesite is not available, the replacement housing 
payment shall be

[[Page 70379]]

computed on the basis of the reasonable cost of a conventional 
comparable replacement dwelling.
    (e) Owner not displaced from the mobile home. If the Agency 
determines that a mobile home is personal property and may be relocated 
to a comparable replacement site, but the owner-occupant elects not to 
do so, the owner is not entitled to a replacement housing payment for 
the purchase of a replacement mobile home. However, the owner is 
eligible for moving costs described at Sec.  24.301 and any replacement 
housing payment for the purchase or rental of a comparable site as 
described in paragraph (c) of this section.


Sec.  24.503  Replacement housing payment for 90-day mobile home 
occupants.

    A displaced tenant or owner-occupant of a mobile home is eligible 
for a replacement housing payment, not to exceed $5,250, under Sec.  
24.402 if:
    (a) The person actually occupied the displacement mobile home on 
the displacement site for at least 90 days immediately prior to the 
initiation of negotiations;
    (b) The person meets the other basic eligibility requirements at 
Sec.  24.402(a); and
    (c) The Agency acquires the mobile home and/or mobile home site, or 
the mobile home is not acquired by the Agency but the Agency determines 
that the occupant is displaced from the mobile home because of one of 
the circumstances described at Sec.  24.502(a)(3).

Subpart G--Certification


Sec.  24.601  Purpose.

    This subpart permits a State Agency to fulfill its responsibilities 
under the Uniform Act by certifying that it shall operate in accordance 
with State laws and regulations which shall accomplish the purpose and 
effect of the Uniform Act, in lieu of providing the assurances required 
by Sec.  24.4 of this part.


Sec.  24.602  Certification application.

    An Agency wishing to proceed on the basis of a certification may 
request an application for certification from the Lead Agency Director, 
Office of Real Estate Services, HEPR-1, Federal Highway Administration, 
400 Seventh St. SW., Washington, DC 20590. The completed application 
for certification must be approved by the governor of the State, or the 
governor's designee, and must be coordinated with the Federal funding 
Agency, in accordance with application procedures.


Sec.  24.603  Monitoring and corrective action.

    (a) The Federal Lead Agency shall, in coordination with other 
Federal Agencies, monitor from time to time State Agency implementation 
of programs or projects conducted under the certification process and 
the State Agency shall make available any information required for this 
purpose.
    (b) The Lead Agency may require periodic information or data from 
affected Federal or State Agencies.
    (c) A Federal Agency may, after consultation with the Lead Agency, 
and notice to and consultation with the governor, or his or her 
designee, rescind any previous approval provided under this subpart if 
the certifying State Agency fails to comply with its certification or 
with applicable State law and regulations. The Federal Agency shall 
initiate consultation with the Lead Agency at least 30 days prior to 
any decision to rescind approval of a certification under this subpart. 
The Lead Agency will also inform other Federal Agencies, which have 
accepted a certification under this subpart from the same State Agency, 
and will take whatever other action that may be appropriate.
    (d) Section 103(b)(2) of the Uniform Act, as amended, requires that 
the head of the Lead Agency report biennially to the Congress on State 
Agency implementation of section 103. To enable adequate preparation of 
the prescribed biennial report, the Lead Agency may require periodic 
information or data from affected Federal or State Agencies.

Appendix A to Part 24--Additional Information

    This Appendix provides additional information to explain the 
intent of certain provisions of this part.

Subpart A--General

    Section 24.2 Definitions and Acronyms.
    Section 24.2(a)(6) Definition of comparable replacement 
dwelling. The requirement in Sec.  24.2(a)(6)(ii) that a comparable 
replacement dwelling be ``functionally equivalent'' to the 
displacement dwelling means that it must perform the same function, 
and provide the same utility. While it need not possess every 
feature of the displacement dwelling, the principal features must be 
present.
    For example, if the displacement dwelling contains a pantry and 
a similar dwelling is not available, a replacement dwelling with 
ample kitchen cupboards may be acceptable. Insulated and heated 
space in a garage might prove an adequate substitute for basement 
workshop space. A dining area may substitute for a separate dining 
room. Under some circumstances, attic space could substitute for 
basement space for storage purposes, and vice versa.
    Only in unusual circumstances may a comparable replacement 
dwelling contain fewer rooms or, consequentially, less living space 
than the displacement dwelling. Such may be the case when a decent, 
safe, and sanitary replacement dwelling (which by definition is 
``adequate to accommodate'' the displaced person) may be found to be 
``functionally equivalent'' to a larger but very run-down 
substandard displacement dwelling. Another example is when a 
displaced person accepts an offer of government housing assistance 
and the applicable requirements of such housing assistance program 
require that the displaced person occupy a dwelling that has fewer 
rooms or less living space than the displacement dwelling.
    Section 24.2(a)(6)(vii). The definition of comparable 
replacement dwelling requires that a comparable replacement dwelling 
for a person who is not receiving assistance under any government 
housing program before displacement must be currently available on 
the private market without any subsidy under a government housing 
program.
    Section 24.2(a)(6)(ix). A public housing unit may qualify as a 
comparable replacement dwelling only for a person displaced from a 
public housing unit. A privately owned dwelling with a housing 
program subsidy tied to the unit may qualify as a comparable 
replacement dwelling only for a person displaced from a similarly 
subsidized unit or public housing.
    A housing program subsidy that is paid to a person (not tied to 
the building), such as a HUD Section 8 Housing Voucher Program, may 
be reflected in an offer of a comparable replacement dwelling to a 
person receiving a similar subsidy or occupying a privately owned 
subsidized unit or public housing unit before displacement.
    However, nothing in this part prohibits an Agency from offering, 
or precludes a person from accepting, assistance under a government 
housing program, even if the person did not receive similar 
assistance before displacement. However, the Agency is obligated to 
inform the person of his or her options under this part. (If a 
person accepts assistance under a government housing assistance 
program the rules of that program governing the size of the dwelling 
apply, and the rental assistance payment under Sec.  24.402 would be 
computed on the basis of the person's actual out-of-pocket cost for 
the replacement housing.)
    Section 24.2(a)(8)(viii) Persons with a disability. Reasonable 
accommodation of a displaced person with a disability at the 
replacement dwelling means the Agency is required to address 
situations involving persons dependent on the use of a wheelchair 
for mobility. In these situations, reasonable accommodation should 
include the following at a minimum: Doors of adequate width; ramps 
or other assistance devices to traverse stairs and access bathtubs, 
shower stalls, toilets and sinks; storage cabinets, vanities, sink 
and mirrors at appropriate heights. Kitchen accommodations will 
include sinks and storage cabinets built at appropriate heights for 
access. The Agency shall also consider

[[Page 70380]]

other items that may be necessary, such as physical modification to 
a unit, based on the displaced person's needs.
    Section 24.2(a)(9)(ii)(D) Persons not displaced. Paragraph 
(a)(9)(ii)(D) of this section recognizes that there are 
circumstances where the acquisition of real property takes place 
without the intent or necessity that an occupant of the property be 
permanently displaced. Because such occupants are not considered 
``displaced persons'' under this part, great care must be exercised 
to ensure that they are treated fairly and equitably. For example, 
if the tenant-occupant of a dwelling will not be displaced, but is 
required to relocate temporarily in connection with the project, the 
temporarily occupied housing must be decent, safe, and sanitary and 
the tenant must be reimbursed for all reasonable out-of-pocket 
expenses incurred in connection with the temporary relocation. These 
expenses may include moving expenses and increased housing costs 
during the temporary relocation. Temporary relocation should not 
extend beyond one year before the person is returned to his or her 
previous unit or location. Any residential tenant who has been 
temporarily relocated for a period beyond one year must be contacted 
by the Agency and be offered all permanent relocation assistance. 
This assistance would be in addition to any assistance the person 
has already received for temporary relocation, and may not be 
reduced by the amount of any temporary relocation assistance.
    Similarly, if a business will be shut-down for any length of 
time due to rehabilitation of a site, it may be temporarily 
relocated and reimbursed for all reasonable out of pocket expenses 
or must be determined to be displaced at the agency's option.
    It is also noted that any person who disagrees with the Agency's 
determination that he or she is not a displaced person under this 
part may file an appeal in accordance with 49 CFR 24.10.
    Section 24.2(a)(15) Household income (exclusions). Household 
income for purposes of this regulation does not include program 
benefits that are not considered income by Federal law such as food 
stamps and the Women Infants and Children (WIC) program. For a more 
detailed list of income exclusions see Federal Highway 
Administration, Office of Real Estate Services Web site: http://
www.fhwa.dot.gov/realestate. (FR 4644-N-16 page 20319 Updated.) If 
there is a question on whether or not to include income from a 
specific program contact the Federal Agency administering the 
program.
    Section 24(a)(16) Initiation of negotiations. This section 
provides a special definition for acquisitions and displacements 
under Public Law 96-510 or Superfund. These activities differ under 
Superfund in that relocation may precede acquisition, the reverse of 
the normal sequence. Superfund is a program designed to clean up 
hazardous waste sites. When such a site is discovered, it may be 
necessary, in certain limited circumstances, to alert the public to 
the danger and to the advisability of moving immediately. If a 
decision were made later to permanently relocate such persons, those 
who had moved earlier would no longer be on site when a formal, 
written offer to acquire the property was made and thus would lose 
their eligibility for a replacement housing payment. In order to 
prevent this unfair outcome, we have provided a definition that is 
based on the public health advisory or announcement of permanent 
relocation.
    Section 24.2(a)(18) Mobile home. A recreational vehicle that is 
capable of providing living accommodations may be considered a 
replacement dwelling if the following criteria are met: the 
recreational vehicle is purchased and occupied as the ``primary'' 
place of residence; it is located on a purchased or leased site and 
connected to all necessary utilities for functioning as a housing 
unit on the date of the displacing Agency's inspection; and, the 
dwelling, as sited, meets all local, State, and Federal requirements 
for a DSS dwelling. (It should be noted that the regulations of some 
local jurisdictions will not permit the consideration of these 
vehicles as DSS dwellings. In those cases, the recreational vehicle 
will not qualify as a replacement dwelling.)
    There are several types of factory-built housing, but the most 
common is ``HUD-Code'' or manufactured homes. HUD-Code homes are so 
named because since June 15, 1976, these home must be designed and 
constructed according to the Federal ``Manufactured Home 
Construction and Safety Standards'' \1\ administered by HUD.
---------------------------------------------------------------------------

    \1\ The U.S. Department of Housing & Urban Development's 
``Manufactured Home Construction and Safety Standards'' is available 
at the following URL: http://www.cfda.gov/public/
viewprog.asp?progid=316.
---------------------------------------------------------------------------

    Our definition of a mobile home would also include mobile homes, 
defined as being transportable in one or more sections not less than 
eight feet wide and forty feet long.
    When assembled, manufactured homes built after 1976 contain no 
less than 320 square feet. They are built on and remain on a 
permanent chassis, and may or may not be installed on a permanent 
foundation when connected to utilities. Manufactured homes may be 
single or multi-sectioned units when installed. Their designation as 
personalty or realty will be determined by State law. When 
determined to be realty, most are eligible for conventional mortgage 
financing.
    The 1976 HUD standards distinguish manufactured homes from 
factory-built ``modular homes'' as well as conventional or ``stick-
built'' homes. Both of these types of housing are required to meet 
State and local construction codes.
    Section 24.3 No Duplication of Payments.
    This section prohibits an Agency from making a payment to a 
person under these regulations that would duplicate another payment 
the person receives under Federal, State, or local law. The Agency 
is not required to conduct an exhaustive search for such other 
payments; it is only required to avoid creating a duplication based 
on the Agency's knowledge at the time a payment is computed.
    Section 24.9 Recordkeeping and Reports.
    Section 24.9(c) Reports. This paragraph requires that Federal 
Agencies submit an annual report of their real property acquisition 
and displacement activities under this part to the lead Agency. The 
report covers activities during the Federal fiscal year immediately 
prior to the submission date. In order to minimize the 
administrative burden on Agencies implementing this part, a basic 
report form (See appendix B of this part) has been developed which, 
with only minor modifications, would be used in all Federal and 
federally-assisted programs or projects.

Subpart B--Real Property Acquisition

    Section 24.101 Applicability of Acquisition Requirements.
    Section 24.101(a) Direct Federal program or project. All 49 CFR 
Part 24 requirements apply to all direct acquisitions for Federal 
programs and projects by Federal Agencies, except for acquisitions 
undertaken by the Tennessee Valley Authority or the Rural 
Electrification Administration. There are no exceptions for 
``voluntary transactions.''
    Section 24.101(b)(1)(i). The term ``general geographic area'' is 
used to clarify that the ``geographic area'' is not to be construed 
to be a small, limited area.
    Section 24.101(b)(1)(iv) and (2)(ii). These sections provide 
that for programs and projects receiving Federal financial 
assistance, Agencies are to inform the owner(s) in writing of the 
Agency's estimate of the market value for the property to be 
acquired.
    While this part does not require an appraisal for these 
transactions, Agencies may still decide that an appraisal is 
necessary to support their determination of the market value of 
these properties, and, in any event, Agencies must have some 
reasonable basis for their determination of market value. In 
addition, some of the concepts inherent in Federal Program appraisal 
practice are appropriate for these estimates. It would be 
appropriate for Agencies to adhere to project influence 
restrictions, as well as guard against discredited ``public interest 
value'' valuation concepts.
    Section 24.101(c) Less-than-full-fee interest in real property. 
This provision provides a benchmark beyond which the requirements of 
the subpart clearly apply to leases. However, the Agency may apply 
the regulations to any less-than-full-fee acquisition which is less 
than 50 years in duration, but which in its judgment should be 
covered.
    Section 24.102 Basic Acquisition Policies.
    Section 24.102(c)(2) Appraisal, waiver thereof, and invitation 
to owner. The threshold for an appraisal waiver is based on 
minimizing appraisal costs for low value, non-complex acquisitions.
    The determination to use the appraisal waiver process, i.e., 
that the acquisition will be uncomplicated and the market value is 
estimated at $10,000 or less must be made by a person who has enough 
understanding of appraisal principles to be qualified to make such a 
determination.
    The intent of the appraisal waiver provision is that waiver 
valuations be made by non-appraisers, freeing appraisers to do more 
sophisticated work. Since waiver

[[Page 70381]]

valuations are not appraisals, there is no requirement for an 
appraisal review. However, the Agency must have a reasonable basis 
for the waiver valuation and an Agency official must still establish 
an amount believed to be just compensation to offer the property 
owner(s).
    All parties, including State certified and licensed appraisers 
who may be engaged to perform waiver valuations, should keep in mind 
that waiver valuations are not appraisals under the applicable 
definitions of ``appraisal'' in Sec.  24.2(a)(3) and ``waiver 
valuation'' in Sec.  24.2(a)(34). Waiver valuations may be used on 
Federal and federally-assisted programs and projects without regard 
to whether or not appraisal requirements from any non-governmental 
source, such as the Appraisal Foundation's Uniform Standards of 
Professional Appraisal Practice (USPAP) or professional appraiser 
societies, account for such waiver valuations. Waiver valuations are 
intended to avoid the costs and time delays associated with 
appraisal requirements for low value, non-complex acquisitions.
    Section 24.102(d) Establishment of offer of just compensation. 
The initial offer to the property owner may not be less than the 
amount of the Agency's approved appraisal, but may exceed that 
amount if the Agency determines that a greater amount reflects just 
compensation for the property.
    Section 24.102(f) Basic negotiation procedures. An offer should 
be adequately presented to an owner, and the owner be properly 
informed. Personal, face-to-face contact should take place, if 
feasible, but this section does not require such contact in all 
cases.
    This section also provides that the property owner be given a 
reasonable opportunity to consider the Agency's offer and to present 
relevant material to the Agency. In order to satisfy this 
requirement, Agencies must allow owners time for analysis, research 
and development, and compilation of a response, including perhaps 
getting an appraisal. The needed time can vary significantly, 
depending on the circumstances, but thirty (30) days would seem to 
be the minimum time these actions can be reasonably expected to 
require. Regardless of project time pressures, property owners must 
be afforded this opportunity.
    In some jurisdictions, there is pressure to initiate formal 
eminent domain procedures at the earliest opportunity because 
completing the process, including gaining possession of the needed 
real property, is very time consuming. These provisions are not 
intended to restrict this practice, so long as it does not interfere 
with the reasonable time that must be provided for negotiations, 
described above, and the Agencies adhere to the Uniform Act ban on 
coercive action [section 301(7) of the Uniform Act].
    If the owner expresses an intent to provide an appraisal report, 
Agencies are encouraged to provide the owner and/or his/her 
appraiser a copy of Agency appraisal requirements and inform them 
that their appraisal should be based on those requirements.
    Section 24.102(i) Administrative settlement. This section 
provides guidance on administrative settlement as an alternative to 
judicial resolution of a difference of opinion on the value of a 
property, in order to avoid unnecessary litigation and congestion in 
the courts.
    All relevant facts and circumstances should be considered by an 
Agency official delegated this authority. Appraisers, including 
review appraisers, must not be pressured to adjust their estimate of 
value for the purpose of justifying such settlements. Such action 
would invalidate the appraisal process.
    Section 24.102(j) Payment before taking possession. It is 
intended that a right-of-entry for construction purposes be obtained 
only in the exceptional case, such as an emergency project, when 
there is no time to make an appraisal and purchase offer and the 
property owner is agreeable to the process.
    Section 24.102(m) Fair rental. Section 301(6) of the Uniform Act 
limits what an Agency may charge when a former owner or previous 
occupant of a property is permitted to rent the property for a short 
term or when occupancy is subject to termination by the Agency on 
short notice. Such rent may not exceed ``the fair rental value of 
the property to a short-term occupier.'' Generally, the Agency's 
right to terminate occupancy on short notice (whether or not the 
renter also has that right) supports the establishment of a lesser 
rental than might be found in a longer, fixed-term situation.
    Section 24.102(n) Conflict of interest. The overall objective is 
to minimize the risk of fraud and while allowing Agencies to operate 
as efficiently as possible. There are three parts to this provision. 
The first provision is the prohibition against having any interest 
in the real property being valued by the appraiser (for an 
appraisal), the valuer (for a waiver estimate) or the review 
appraiser (for an appraisal review). The second provision is that no 
person functioning as a negotiator for a project or program can 
supervise or formally evaluate the performance of any appraiser or 
review appraiser performing appraisal or appraisal review work for 
that project or program. However, for a program or project receiving 
Federal financial assistance, the Federal funding agency may waive 
this requirement if it would create a hardship for the Agency. The 
intent is to accommodate Federal-aid recipients that have a small 
staff where this provision would be unworkable. The third provision 
is to minimize situations where administrative costs exceed 
acquisition costs, Sec.  24.102(n) also provides that the same 
person may prepare a valuation estimate (including an appraisal) and 
negotiate that acquisition, if the valuation estimate amount is 
$10,000 or less. However, it should be noted that this exception for 
properties valued at $10,000 or less is not mandatory, e.g., 
Agencies are not required to use those who prepare a waiver 
valuation or appraisal of $10,000 or less to negotiate the 
acquisition, and, all appraisals must be reviewed in accordance with 
Sec.  24.104. This includes appraisals of real property valued at 
$10,000 or less.
    Section 24.103 Criteria for Appraisals.
    The term ``requirements'' is used throughout this section to 
avoid confusion with the Appraisal Foundation's Uniform Standards of 
Professional Appraisal Practice (USPAP) ``standards.'' Although this 
section discusses appraisal requirements, the definition of 
``appraisal'' itself at Sec.  24.2(a)(3) includes appraisal 
performance requirements that are an inherent part of this section.
    The term ``Federal and federally-assisted program'' is used to 
better identify the type of appraisal practices that are to be 
referenced and to differentiate them from the private sector, 
especially mortgage lending, appraisal practice.
    Section 24.103(a) Appraisal requirements. The first sentence 
instructs readers that requirements for appraisals for Federal and 
federally-assisted programs are located in 49 CFR part 24. These are 
the basic appraisal requirements for Federal and federally-assisted 
programs. However, Agencies may enhance and expand on them, and 
there may be specific project or program legislation that references 
other appraisal requirements.
    The term ``scope of work'' defines the general parameters of the 
appraisal. It reflects the needs of the Agency and the requirements 
of Federal and federally-assisted program appraisal practice. It 
should be developed cooperatively by the assigned appraiser and an 
Agency official who is competent to both represent the Agency's 
needs and respect valid appraisal practice. The scope of work 
statement should include the purpose and/or function of the 
appraisal, a definition of the estate being appraised, and if it is 
market value, its applicable definition, and the assumptions and 
limiting conditions affecting the appraisal. It may include 
parameters for the data search and identification of the technology, 
including approaches to value, to be used to analyze the data. The 
scope of work for a detailed appraisal should consider the specific 
requirements in 49 CFR 24.103(a)(1) through (5) and address them as 
appropriate.
    Paragraph (a)(2) of this section, explains that all relevant and 
reliable approaches to value are to be used. However, where an 
Agency determines that the sales comparison approach will be 
adequate by itself because of the type of property being appraised 
and the availability of sales data, it may limit the appraisal 
assignment to the sales comparison approach. This should be 
reflected in the scope of work.
    Section 24.103(b) Influence of the project on just compensation. 
As used in this section, the term ``project'' means an undertaking 
which is planned, designed, and intended to operate as a unit.
    When the public is aware of the proposed project, project area 
property values may be affected. Therefore, property owners should 
not be penalized because of a decrease in value caused by the 
proposed project nor reap a windfall at public expense because of 
increased value created by the proposed project.
    Section 24.103(d)(1). The appraiser and review appraiser must 
each be qualified and competent to perform the appraisal and 
appraisal review assignments, respectively. Among other 
qualifications, State licensing or certification can help provide an 
indication of an appraiser's abilities.
    Section 24.104 Review of appraisals.

[[Page 70382]]

    The term ``review appraiser'' is used rather than ``reviewing 
appraiser,'' to emphasize that ``review appraiser'' is a separate 
specialty and not just an appraiser who happens to be reviewing an 
appraisal. Federal Agencies have long held the perspective that 
appraisal review is a unique skill that, while it certainly builds 
on appraisal skills, requires more. The review appraiser should 
posses both appraisal technical abilities and the ability to be the 
two-way bridge between the Agency's real property valuation needs 
and the appraiser.
    Agency review appraisers typically perform a role greater than 
technical appraisal review. They are often involved in early project 
development. Later they may be involved in devising the appraisal 
problem statements and participate in making appraisal assignments 
to fee and/or staff appraisers. They are also mentors and technical 
advisors, especially on Agency policy and requirements, to 
appraisers, both staff and fee. Additionally, review appraisers are 
frequently technical advisors to other Agency officials.
    Section 24.104(a). This paragraph states what the review 
appraiser is to review (the appraiser's presentation and analysis of 
market information) and what it is to be reviewed against Sec.  
24.103 and other applicable requirements, including, to the extent 
appropriate, the Uniform Appraisal Standards for Federal Land 
Acquisition. The appraisal review is to be a technical review by an 
appropriately qualified review appraiser. The qualifications of the 
review appraiser and the level of explanation of the basis for the 
reviewer's approved value depend on the complexity of the appraisal 
problem. If the initial appraisal submitted for review is 
unacceptable, the review appraiser is expected to communicate and 
work with the appraiser to the greatest extent possible to 
facilitate the appraiser's development of an acceptable appraisal. 
In doing this, the review appraiser is to remain in an advisory 
role, not directing the appraisal, and retaining objectivity and 
options for the appraisal review itself.
    If the Agency intends that the staff review appraiser establish 
the amount the Agency believes is just compensation, she/he must be 
specifically authorized by the Agency to do so. If the review 
appraiser is not specifically authorized to establish the amount 
believed to be just compensation, that authority is with another 
Agency official.
    Section 24.104(b). If the review appraiser develops an 
independent opinion of value, he/she may reference any acceptable 
resource, including acceptable parts of any appraisal, including an 
otherwise unacceptable appraisal, to support his/her independent 
approved value. If no submitted appraisal is approved, and the 
review appraiser determines an independent review amount, while 
remaining the appraisal review, that review also becomes the 
appraisal of record for Uniform Act purposes. It is within Agency 
discretion to decide whether a second review is needed if the first 
review appraiser establishes a value different from that in the 
appraisal report or reports on the property.
    Section 24.104(c). Before acceptance of an appraisal, the review 
appraiser must determine that the appraiser's documentation, 
including valuation data and analysis of that data, demonstrates the 
soundness of the appraiser's opinion of value. For the purposes of 
this part, an acceptable appraisal is any appraisal that, on its 
own, meets the requirements of Sec.  24.103. An approved appraisal 
is the one acceptable appraisal that is determined to best fulfill 
the requirement to be the basis for the amount believed to be just 
compensation. Recognizing that appraisal is not an exact science, 
there may be more than one acceptable appraisal of a property, but 
for the purposes of this part, there can be only one approved 
appraisal.
    At the Agency's discretion, for a low value property requiring 
only a simple appraisal process, the review appraiser's approval, 
endorsing the appraiser's report, may be determined to satisfy the 
requirement for the review appraiser's signed report and 
certification.
    Section 24.106(b) Expenses incidental to transfer of title to 
the agency. Generally, the Agency is able to pay such incidental 
costs directly and, where feasible, is required to do so. In order 
to prevent the property owner from making unnecessary out-of-pocket 
expenditures and to avoid duplication of expenses, the property 
owner should be informed early in the acquisition process of the 
Agency's intent to make such arrangements. Such expenses must be 
reasonable and necessary.

Subpart C--General Relocation Requirements

    Section 24.202 Applicability and Section 205(c) Services to be 
provided. In extraordinary circumstances, when a displaced person is 
not readily accessible, the Agency must make a good faith effort to 
comply with these sections and document its efforts in writing.
    Section 24.204 Availability of comparable replacement dwelling 
before displacement.
    Section 24.204(a) General. This provision requires that no one 
may be required to move from a dwelling without a comparable 
replacement dwelling having been made available. In addition, Sec.  
24.204(a) requires that, ``Where possible, three or more comparable 
replacement dwellings shall be made available.'' Thus, the basic 
standard for the number of referrals required under this section is 
three. Only in situations where three comparable replacement 
dwellings are not available (e.g., when the local housing market 
does not contain three comparable dwellings) may the Agency make 
fewer than three referrals.
    Section 24.205 Relocation assistance advisory services.
    Section 24.205(c)(2)(ii)(C) emphasizes that if the comparable 
replacement dwellings are located in areas of minority 
concentration, minority persons should, if possible, also be given 
opportunities to relocate to replacement dwellings not located in 
such areas.
    Section 24.206 Eviction for cause. An eviction related to non-
compliance with a requirement related to carrying out a project 
(e.g., failure to move or relocate when instructed, or to cooperate 
in the relocation process) shall not negate a person's entitlement 
to relocation payments and other assistance set forth in this part.
    Section 24.207 General requirements--Claims for relocation 
payments. Section 24.207(a) allows an Agency to make a payment for 
low cost or uncomplicated moves without additional documentation, as 
long as the payment is limited to the amount of the lowest 
acceptable bid or estimate, as provided for in Sec.  24.301(d)(1).
    While section 24.207(f) prohibits an Agency from proposing or 
requesting that a displaced person waive his or her rights or 
entitlements to relocation assistance and payments, an Agency may 
accept a written statement from the displaced person that states 
that they have chosen not to accept some or all of the payments or 
assistance to which they are entitled. Any such written statement 
must clearly show that the individual knows what they are entitled 
to receive (a copy of the Notice of Eligibility which was provided 
may serve as documentation) and their statement must specifically 
identify which assistance or payments they have chosen not to 
accept. The statement must be signed and dated.

Subpart D--Payment for Moving and Related Expenses

    Section 24.301 Payment for actual reasonable moving and related 
expenses.
    Section 24.301(g)(14)(ii). If the piece of equipment is 
operational at the acquired site the estimated cost to reconnect the 
equipment shall be based on the cost to install the equipment as it 
currently exists, and shall not include the cost of code-required 
betterments or upgrades that may apply at the replacement site.
    Section 24.301(g)(17) Searching expenses. In special cases where 
the displacing Agency determines it to be reasonable and necessary, 
certain additional categories of searching costs may be considered 
for reimbursement. These include those costs involved in 
investigating potential replacement sites and the time of the 
business owner, based on salary or earnings, required to apply for 
licenses or permits, zoning changes, and attendance at zoning 
hearings. Necessary permit, license and attorney fees are also 
reimbursable. In those instances when such additional costs to 
investigate and acquire the site exceed $2,500, the displacing 
Agency may consider waiver of the cost limitation under the Sec.  
24.7 waiver provision. Such a waiver should be subject to the 
approval of the Federal funding Agency in accordance with existing 
delegation authority.
    Section 24.305 Fixed Payment for Moving Expenses--Nonresidential 
Moves.
    Section 24.305(d) Nonprofit organization. Gross revenues may 
include membership fees, class fees, cash donations, tithes, 
receipts from sales or other forms of fund collection that enables 
the non-profit organization to operate. Administrative expenses are 
those for administrative support such as rent, utilities, salaries, 
advertising, and other like items as well as fundraising expenses. 
Operating expenses for carrying out the purposes of the non-profit 
organization are not included in

[[Page 70383]]

administrative expenses. The monetary receipts and expense amounts 
may be verified with certified financial statements or financial 
documents required by public Agencies.
    Section 24.305(e) Average annual net earnings. If the average 
annual net earnings of the displaced business, farm, or non-profit 
organization are determined to be less than $1,000, even $0 or a 
negative amount, the minimum payment of $1,000 shall be provided.
    Section 24.306 Discretionary Utility Relocation Payments.
    Section 24.306(c) describes the issues that the Agency and the 
utility facility owner must agree to in determining the amount of 
the relocation payment. To facilitate and aid in reaching such 
agreement, the practices in the Federal Highway Administration 
regulation, 23 CFR part 645, subpart A, Utility Relocations, 
Adjustments and Reimbursement, should be followed.

Subpart E--Replacement Housing Payments

    Section 24.401 Replacement Housing Payment for 180-day 
Homeowner-Occupants.
    Section 24.401(a)(2). An extension of eligibility may be granted 
if some event beyond the control of the displaced person such as 
acute or life threatening illness, bad weather preventing the 
completion of construction, or physical modifications required for 
reasonable accommodation of a replacement dwelling, or other like 
circumstances causes a delay in occupying a decent, safe, and 
sanitary replacement dwelling.
    Section 24.401(c)(2)(iii) Price differential. The provision in 
Sec.  24.401(c)(2)(iii) to use the current market value for 
residential use does not mean the Agency must have the property 
appraised. Any reasonable method for arriving at the market value 
may be used.
    Section 24.401(d) Increased mortgage interest costs. The 
provision in Sec.  24.401(d) sets forth the factors to be used in 
computing the payment that will be required to reduce a person's 
replacement mortgage (added to the downpayment) to an amount which 
can be amortized at the same monthly payment for principal and 
interest over the same period of time as the remaining term on the 
displacement mortgages. This payment is commonly known as the 
``buydown.''
    The Agency must know the remaining principal balance, the 
interest rate, and monthly principal and interest payments for the 
old mortgage as well as the interest rate, points and term for the 
new mortgage to compute the increased mortgage interest costs. If 
the combination of interest and points for the new mortgage exceeds 
the current prevailing fixed interest rate and points for 
conventional mortgages and there is no justification for the 
excessive rate, then the current prevailing fixed interest rate and 
points shall be used in the computations. Justification may be the 
unavailability of the current prevailing rate due to the amount of 
the new mortgage, credit difficulties, or other similar reasons.

                           Sample Computation
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Old Mortgage:
  Remaining Principal Balance..............................      $50,000
  Monthly Payment (principal and interest).................       458.22
  Interest rate (percent)..................................            7
New Mortgage:
  Interest rate (percent)..................................           10
  Points...................................................            3
  Term (years).............................................           15
------------------------------------------------------------------------

    Remaining term of the old mortgage is determined to be 174 
months. Determining, or computing, the actual remaining term is more 
reliable than using the data supplied by the mortgagee.) However, if 
it is shorter, use the term of the new mortgage and compute the 
needed monthly payment.
Amount to be financed to maintain monthly payments of $458.22 at 
10%--$42,010.18

------------------------------------------------------------------------
 
------------------------------------------------------------------------
Calculation:
  Remaining Principal Balance...........................      $50,000.00
  Minus Monthly Payment (principal and interest)........      -42,010.18
                                                         ---------------
  Increased mortgage interest costs.....................        7,989.82
  3 points on $42,010.18................................        1,260.31
                                                         ---------------
    Total buydown necessary to maintain payments at             9,250.13
     $458.22/month......................................
------------------------------------------------------------------------

    If the new mortgage actually obtained is less than the computed 
amount for a new mortgage ($42,010.18), the buydown shall be 
prorated accordingly. If the actual mortgage obtained in our example 
were $35,000, the buydown payment would be $7,706.57 ($35,000 / by 
$42,010.18 = .8331; $9,250.13 x .83 = $7,706.57).
    The Agency is obligated to inform the displaced person of the 
approximate amount of this payment and that the displaced person 
must obtain a mortgage of at least the same amount as the old 
mortgage and for at least the same term in order to receive the full 
amount of this payment. The Agency must advise the displaced person 
of the interest rate and points used to calculate the payment.
    Section 24.402 Replacement Housing Payment for 90-day Occupants.
    The down payment assistance provisions in Sec.  24.402(c) limit 
such assistance to the amount of the computed rental assistance 
payment for a tenant or an eligible homeowner. It does, however, 
provide the latitude for Agency discretion in offering down payment 
assistance that exceeds the computed rental assistance payment, up 
to the $5,250 statutory maximum. This does not mean, however, that 
such Agency discretion may be exercised in a selective or 
discriminatory fashion. The displacing Agency should develop a 
policy that affords equal treatment for displaced persons in like 
circumstances and this policy should be applied uniformly throughout 
the Agency's programs or projects.
    For the purpose of this section, should the amount of the rent 
supplement exceed the purchase price of the replacement dwelling, 
the payment would be limited to the cost of the dwelling.
    Section 24.403 Additional Rules Governing Replacement Housing.
    Section 24.403(a) Determining Cost of Comparable Replacement 
Dwelling. The payment for increased real estate taxes, if any, for 
displaced 180-day owner occupants displaced as a result of a Federal 
or federally-funded project, would be based on the difference 
between the monthly real estate tax on the acquired dwelling, and 
the monthly real estate tax on the replacement dwelling at the time 
of purchase, but not to exceed the real estate tax on a comparable 
replacement dwelling.
    The increase dollar amount, if any, would be provided for a 24 
month period. If the displaced person elects to purchase a 
replacement dwelling whose real estate tax exceeds that of the 
comparable dwelling, the increased tax payment would be limited to 
the increased monthly tax on the comparable replacement dwelling at 
the time of purchase for 24 months. Should the displaced person 
elect to purchase a replacement dwelling for less than the cost of a 
comparable replacement dwelling, the increased tax calculation would 
be based on the 24 month increase, if any, in the tax cost of the 
acquired dwelling and that of the replacement dwelling at the time 
of purchase.
    24.404 Replacement Housing of Last Resort.
    Section 24.404(b) Basic rights of persons to be displaced. This 
paragraph affirms the right of a 180-day homeowner-occupant, who is 
eligible for a replacement housing payment under Sec.  24.401, to a 
reasonable opportunity to purchase a comparable replacement 
dwelling. However, it should be read in conjunction with the 
definition of ``owner of a dwelling'' at Sec.  24.2(a)(21). The 
Agency is not required to provide persons owning only a fractional 
interest in the displacement dwelling a greater level of assistance 
to purchase a replacement dwelling than the Agency would be required 
to provide such persons if they owned fee simple title to the 
displacement dwelling. If such assistance is not sufficient to buy a 
replacement dwelling, the Agency may provide additional purchase 
assistance or rental assistance.
    Section 24.404(c) Methods of providing comparable replacement 
housing. This Subpart emphasizes the use of cost effective means of 
providing comparable replacement housing. The term ``reasonable 
cost'' is used to highlight the fact that while innovative means to 
provide housing are encouraged, they should be cost-effective. 
Section 24.404(c)(2) permits the use of last resort housing, in 
special cases, which may involve variations from the usual methods 
of obtaining comparability. However, such variation should never 
result in a lowering of housing standards nor should it ever result 
in a lower quality of living style for the displaced person. The 
physical characteristics of the comparable replacement dwelling may 
be dissimilar to those of the displacement dwelling but they may 
never be inferior.

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    One example might be the use of a new mobile home to replace a 
very substandard conventional dwelling in an area where comparable 
conventional dwellings are not available.
    Another example could be the use of a superior, but smaller, 
decent, safe and sanitary dwelling to replace a large, old 
substandard dwelling, only a portion of which is being used as 
living quarters by the occupants and no other large comparable 
dwellings are available in the area.

Appendix B to Part 24--Statistical Report Form

    This Appendix sets forth the statistical information collected 
from Agencies in accordance with Sec.  24.9(c).

General

    1. Report coverage. This report covers all relocation and real 
property acquisition activities under a Federal or a federally-
assisted project or program subject to the provisions of the Uniform 
Relocation Assistance and Real Property Acquisition Policies Act of 
1970, as amended. If the exact numbers are not easily available, an 
Agency may provide what it believes to be a reasonable estimate.
    2. Report period. Activities shall be reported on a Federal 
fiscal year basis, i.e., October 1 through September 30.
    3. Where and when to submit report. Submit a copy of this report 
to the lead Agency as soon as possible after September 30, but not 
later than November 15. Lead Agency address: Federal Highway 
Administration, Office of Real Estate Services (HEPR), Room 3221, 
400 7th Street SW., Washington, DC 20590.
    4. How to report relocation payments. The full amount of a 
relocation payment shall be reported as if disbursed in the year 
during which the claim was approved, regardless of whether the 
payment is to be paid in installments.
    5. How to report dollar amounts. Round off all money entries in 
Parts of this section A, B and C to the nearest dollar.
    6. Regulatory references. The references in Parts A, B, C and D 
of this section indicate the subpart of the regulations pertaining 
to the requested information.

Part A. Real Property Acquisition Under the Uniform Act

    Line 1. Report all parcels acquired during the report year where 
title or possession was vested in the Agency during the reporting 
period. The parcel count reported should relate to ownerships and 
not to the number of parcels of different property interests (e.g., 
fee, perpetual easement, temporary easement, etc.) that may have 
been part of an acquisition from one owner. For example, an 
acquisition from a property that includes a fee simple parcel, a 
perpetual easement parcel, and a temporary easement parcel should be 
reported as 1 parcel not 3 parcels. (Include parcels acquired 
without Federal financial assistance, if there was or will be 
Federal financial assistance in other phases of the project or 
program.)
    Line 2. Report the number of parcels reported on Line 1 that 
were acquired by condemnation. Include those parcels where 
compensation for the property was paid, deposited in court, or 
otherwise made available to a property owner pursuant to applicable 
law in order to vest title or possession in the Agency through 
condemnation authority.
    Line 3. Report the number of parcels in Line 1 acquired through 
administrative settlement where the purchase price for the property 
exceeded the amount offered as just compensation and efforts to 
negotiate an agreement at that amount have failed.
    Line 4. Report the total of the amounts paid, deposited in 
court, or otherwise made available to a property owner pursuant to 
applicable law in order to vest title or possession in the Agency in 
Line 1.

Part B. Residential Relocation Under the Uniform Act

    Line 5. Report the number of households who were permanently 
displaced during the fiscal year by project or program activities 
and moved to their replacement dwelling. The term ``households'' 
includes all families and individuals. A family shall be reported as 
``one'' household, not by the number of people in the family unit.
    Line 6. Report the total amount paid for residential moving 
expenses (actual expense and fixed payment).
    Line 7. Report the total amount paid for residential replacement 
housing payments including payments for replacement housing of last 
resort provided pursuant to Sec.  24.404 of this part.
    Line 8. Report the number of households in Line 5 who were 
permanently displaced during the fiscal year by project or program 
activities and moved to their replacement dwelling as part of last 
resort housing assistance.
    Line 9. Report the number of tenant households in Line 5 who 
were permanently displaced during the fiscal year by project or 
program activities, and who purchased and moved to their replacement 
dwelling using a down payment assistance payment under this part.
    Line 10. Report the total sum costs of residential relocation 
expenses and payments (excluding Agency administrative expenses) in 
Lines 6 and 7.

Part C. Nonresidential Relocation Under the Uniform Act

    Line 11. Report the number of businesses, nonprofit 
organizations, and farms who were permanently displaced during the 
fiscal year by project or program activities and moved to their 
replacement location. This includes businesses, nonprofit 
organizations, and farms, that upon displacement, discontinued 
operations.
    Line 12. Report the total amount paid for nonresidential moving 
expenses (actual expense and fixed payment.)
    Line 13. Report the total amount paid for nonresidential 
reestablishment expenses.
    Line 14. Report the total sum costs of nonresidential relocation 
expenses and payments (excluding Agency administrative expenses) in 
Lines 12 and 13.

Part D. Relocation Appeals

    Line 15. Report the total number of relocation appeals filed 
during the fiscal year by aggrieved persons (residential and 
nonresidential).
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[FR Doc. 03-30804 Filed 12-16-03; 8:45 am]
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