# Uniform Act Frequently Asked Questions (FAQs)

> **General**
>
> ***What is the Uniform Act?***\
> It is the short name for the Uniform Relocation Assistance and Real
> Property Acquisition Act of 1970, as amended. This law was enacted as
> Public Law 91-646, and brought a minimum standard of performance to
> all Federally funded projects with regard to the acquisition of real
> property and the relocation of persons displaced by the acquisition of
> such property.
>
> ***Has it been amended since passage?***\
> Yes, there have been several amendments over the years, with the most
> significant taking place as a part of the Surface Transportation and
> Uniform Relocation Assistance Act of 1987.
>
> ***Where can I find the law and the rules created to carry out the
> law?***\
> The law is codified in 42 U.S.C. 4601 et seq. The rules governing the
> law are found in 49 CFR, Part 24. There may be other laws or rules
> established by an agency or State that elaborate or expand upon these
> minimum standards. Links to locate the basic law and Department of
> Transportation rules are from <http://www.fhwa.dot.gov/hep/legreg.htm>
>
> **Acquisition**
>
> ***Who determines the value of the property to be acquired?***\
> Value is estimated in a two step process. An appraiser researches the
> real estate market and presents an estimate of market value. A
> reviewing appraiser evaluates that work product and recommends an
> amount that an agency official will approve as the acquiring agency\'s
> estimate of just compensation.
>
> ***Who are qualified appraisers?***\
> The most complete sources of persons with appraisal credentials are
> the state appraisal licensing agencies. Public employees serving as
> appraisers already have been evaluated for conformance with
> qualification standards and may not be required in some states to be
> licensed or certified. For an appraiser to be considered to be
> qualified for a specific appraisal assignment, experience or technical
> expertise in the kind of appraisal effort appropriate is also
> necessary.
>
> ***Does the property owner have a choice of appraisers?***\
> Selection of the appraiser, as well as other personnel to work on the
> project, is the agency decision.
>
> ***Must all offers by an agency to acquire property be made in
> writing?***\
> The first time an agency makes an offer to purchase, it must be in
> writing and be in the full amount approved by the agency as its
> estimate of just compensation. Any subsequent offers to purchase that
> property may be either verbal or written, depending upon agency policy
> and applicable law.
>
> ***What if the owner doesn\'t agree with the amount offered?***\
> The laws of the acquiring agency set forth the legal steps the agency
> must take when they wish to purchase property that an owner does not
> want to sell. An important part of this process is the determination
> of the amount of compensation.
>
> ***Can property owners provide their own appraisal to the acquiring
> agency?***\
> Yes. The acquiring agency should consider all relevant information in
> its negotiations with property owners.
>
> ***Who makes the final settlement offer?***\
> This is a matter of negotiations policy as well as law. Some eminent
> domain laws place a special significance upon the concept of a final
> settlement offer when a case is not settled but proceeds through legal
> steps. In those cases, most typically the acquiring agency is the one
> that makes this \"final\" offer. Successful negotiations practices
> often ask that, when the acquiring agency\'s written offer is not
> acceptable, the property owner tender a written offer to sell at the
> lowest figure they are willing to accept, so that the acquiring agency
> can accept that offer and be sure they will bring closure to the
> negotiations. Such written counteroffers most frequently follow a
> sequence of verbal negotiations where both parties are attempting to
> understand the other party\'s perspective.
>
> ***Is condemnation the only solution when an agency can\'t reach
> agreement on the purchase of property for the project.***\
> No. One of the objectives of the Uniform Act is to \"encourage and
> expedite the acquisition of real property by agreements with owners
> and to avoid litigation and relieve congestion in courts\...\". In the
> event negotiations for the property fail, agencies should first
> consider the use of an administrative settlement (49CFR24.102(i)).
> Agency officials may approve the use of an administrative settlement
> if it is reasonable, prudent and in the public interest. Agencies may
> also use other alternative dispute resolution options, such as
> mediation.
>
> ***When should property owners be paid for their property?***\
> As quickly as possible under the applicable laws, and at a time when
> the property owner is in a position to transfer title. The acquiring
> agency should work with the property owner to resolve any liens
> against the property being acquired.
>
> ***When can a property owner be required to turn possession of the
> property over to an acquiring agency?***\
> A property owner may voluntarily turn control of their property to an
> acquiring agency at any time. An acquiring agency may not require a
> property owner to give them possession until the sale of the property
> is complete (payment made and title transferred) and the owner has
> been given notice of the acquiring agency\'s need to take possession.
> This notice to take possession is referred to, under the Uniform Act,
> as the 90-day notice. This notice is in writing, and may be given in
> one of two ways. The first way is by a single notice given once the
> closing on the property purchase has been completed, and provides at
> least 90 days advance notice of the specific date possession will be
> required. The second way is for a notice be given at or following the
> initiation of negotiations providing the property owner with assurance
> that they will not be required to vacate their property until a
> specific date at least 90 days from the time the owner is expected to
> receive the notice, and that upon closing of the sale transaction,
> they will be given another notice that will give them at least 30 days
> from expected receipt of the notice to vacate the property. This
> latter date, of course, may not be any earlier than the date already
> provided in the initial 90-day notice.

**Relocation**

**SUBPART A \-- GENERAL**

***49 CFR 24.2(d)(3). If it is \"culturally\" a part of the lifestyle
for six children to share a bedroom, would it be acceptable to base the
computation of the replacement housing payment on a dwelling that would
require the six children to share a bedroom?***\
No. The comparable must reflect appropriate local housing codes or the
requirements of 24.2(f). Displaced persons would have to ***insist*** on
non-DSS replacement housing and then the displacing agency would have to
request a waiver of the DSS requirements from the funding agency under
49 CFR 24.7.

***49 CFR 24.2(g)(1)(I). Can an eligible displaced person be paid
relocation benefits prior to completion of negotiations or acquisition
of the property that they occupy?***\
Yes. Persons who move as a result of the initiation of negotiations are
eligible dis-placed persons entitled to benefits and should be paid
promptly. Payments to such persons are eligible for Federal funding or
reimbursement at the time that residential occupants move to DSS
dwellings adequate to accommodate them or non-residential occupants
vacate the property.

***49 CFR 24.101, 24.108, and Subpart E - Replacement Housing Payments.
If property is acquired through donation, exchange, or some method other
than purchase, are the occupants entitled to relocation assistance and
payments for vacating the property?***\
Yes. The method of conveyance of property to the agency has no effect on
the entitlement to relocation benefits. The occupants are eligible as
\"displaced persons\" if they meet the definition of a displaced person
\[24.2(g)\].

**SUBPART C \-- GENERAL RELOCATION REQUIREMENTS**

***49 CFR 24.204. Can the displacing agency reduce the relocation
payment offer if, after 90-days have passed, the displaced person has
not acquired replacement housing and the agency locates another
comparable dwelling that is available for less than the comparable used
for the offer?***\
Yes. However, the displacing agency should not lower an offer if the
displaced person had, in good faith, made a commitment or is making a
good faith effort to acquire a replacement dwelling based on the
original offer. If the displaced person has made little or no effort to
acquire a replacement dwelling, it would be permissible, after a
reasonable period of time, to reduce the offer if a less-expensive,
comparable dwelling becomes available. If an agency elects to lower a
payment offer, it should document the files with the rationale and make
every effort to avoid acting in a coercive manner.

***49 CFR 24.203(c). Must the displacing agency restart the 90-day clock
if the original comparable replacement dwelling has been sold?***\
No.

A. The 90-day time period will continue to run without interruption.
However, if the original comparable dwelling is no longer available, the
displacing agency must assure itself that equally comparable dwellings
are still available in the same price range.

B. If the displacing agency finds it necessary to initiate eviction
actions, its records must contain sufficient documentation to confirm
that the comparable replacement dwelling or one equally comparable, in
cost and all other features, is available for occupancy.

***49 CFR 24.5 and 24.203. Is an agency required to prepare a relocation
brochure?***\
A relocation brochure is not required; however, each displaced person
must be provided a general written description of the displacing
agency\'s relocation program. Brochures are very effective for providing
accurate general relocation information in a uniform manner. It is
strongly recommended that each agency have brochures available to
furnish to displaced persons at the initial contact and to the public,
as appropriate. The lead agency has a relocation brochure available that
may be copied for this purpose.

***49 CFR 24.2(o). May an agency issue a notice of intent to acquire a
parcel in order to establish a date of eligibility for relocation
benefits prior to the initiation of negotiations?***\
Yes. Eligibility for benefits can be established prior to the initiation
of negotiations by issuing a notice of intent to acquire to a person who
will be displaced by a program or project.

***49 CFR 24.207(e). What was the intent of the last sentence of this
paragraph regarding multiple occupants of one displacement dwelling?
(\"However, if two or more occupants maintained separate households
within the same dwelling, such occupants have separate entitlements to
relocation payments.\")***\
Two or more occupants of a dwelling may maintain separate households
within that dwelling. If they do, they have separate entitlement to
relocation payments. The displacing agency is responsible for
determining the number of households in a dwelling based on the use of
the dwelling, the relationship of the occupants, and any other
information that may be obtained. The payment computation for each
household should be based on the part of the dwelling that the household
occupies and the space that is shared with others. An attempt should be
made to locate similar comparable DSS living facilities. The record
should be sufficiently documented to support the decision reached.

***49 CFR 24.203(b). Can an owner of a property to be acquired prevent
the agency from contacting the tenants of the property?***\
An owner may not prevent authorized agency employees from notifying
tenants of the benefits they may be eligible to receive under the
Uniform Act. The agency should advise the owner that it is better to
explain to the tenants the requirements and obligations for the
eligibility for benefits and to advise them there is no rush to
relocate. In rare circumstances when the owner is concerned the tenants
will move and there will be loss of rental income, the agency may offer
to make a payment to replace lost rent for vacancies occurring due to
relocation for a reasonable period of time.

***49 CFR 24.208. Is there any background or clarification on how I can
best stay within the law when my project displaces someone who may not
be in the US legally?***\
The background and tips for success in this are found by visiting the
comprehensive discussion at
<http://www.fhwa.dot.gov/realestate/illegaqa.htm>

**SUBPART D \-- PAYMENT FOR MOVING AND RELATED EXPENSES**

**RESIDENTIAL MOVES**

***49 CFR 24.302. Is the fixed moving payment provided for in section
24.302 the only coverage for a seasonal residence?***\
No. The occupant of a seasonal residence could receive actual moving
expenses in accordance with section 24.301. Persons owning or renting
seasonal residences are generally not eligible for any relocation
payments other than for moving expenses.

**NONRESIDENTIAL MOVES**

***49 CFR 24.303(a)(3). Can the costs of pits, pads, and foundations
necessary for the installation of machinery or equipment in the
replacement business site be reimbursed as a moving cost?***\
The costs of pits, pads, and foundations can be reimbursed as an
eligible moving cost if they are necessary for the reinstallation of
equipment or machinery or the installation of substitute items that are
necessary for the business operation, unless the value of the pits,
pads, and foundations was clearly included in the just compensation paid
for the real property. Normally, pits, pads, and foundations only add
value to a property for a particular business operation and would not
generally enhance real property. They should not be included in the
valuation of the real property unless the highest and best use of the
property being acquired is for the business operation for which it is
being used and the fair market value is determined on this basis.

***49 CFR 24.303(a)(3). Are the costs incurred for site preparation for
installing underground tanks eligible moving expenses?***\
Underground tanks are generally considered realty and purchased as part
of the real estate. However, if under State law, the tanks are
considered to be personal property, site prep-aration costs necessary
for the installation of the tanks could be considered an eligible moving
expense. The site preparation would have to be necessary for
reinstallation of the tanks (or substitute tanks), and the installed
tanks would have to be required for the operation of the particular
business being relocated.

***49 CFR 24.303(a)(6). Are there any limitations on the costs which can
be reimbursed for licenses, permits, or certifications required of the
displaced person at the replacement location.***\
The costs must be actual, reasonable, and necessary. The licenses,
permits, or certification requirements eligible for reimbursement as
moving expenses are those that are required to operate the particular
business being relocated. They do not include general occupancy
licenses, occupancy permits, building permits, or one-time assessments
that any business would have to pay for occupancy of a property.

Reimbursement of actual, reasonable, and necessary costs is limited to
those amounts that are: (1) for the remaining useful life of the
licenses, etc., at the site acquired or (2) the costs of new licenses,
etc., required to operate the business at the replacement site. The
costs participated in should be those charged by the licensing agency.
It is the displacing agency\'s responsibility to determine that the
stated costs are necessary and reasonable.

Reimbursement under Reestablishment, 49 CFR 24.304, is available for the
cost of occupancy permits, building permits, and other fees related to
the replacement business site not eligible as moving expenses up to the
\$10,000 maximum payment. These are costs that would be incurred by any
business entity occupying the real estate and are not directly related
to the business operation being displaced.

***49 CFR 24.303(a)(13). How early can search costs be incurred by a
displaced business and still be reimbursable? Could they be incurred
prior to authorization or award of a grant for the project or
program?***\
While searching costs may be incurred by the displaced business at any
time, the agency cannot reimburse the displaced business for any
searching costs incurred before the displaced business qualifies as a
displaced business as defined in section 24.2(g).

***49 CFR 24.303(b)(2). Can the displacing agency withhold payment for a
move solely because the displaced person does not provide advance
written notice to the agency of the date of the proposed move?***\
Yes. However, the records of the displacing agency should provide
documentation of the advice provided to the displaced person concerning
the responsibility to provide notice and the necessity for the notice
(so that the agency can monitor the move and make reasonable and timely
inspection of the personal property at both the displacement and
replacement sites). If the displaced business provides verifiable
records, bills, and receipts documenting actual expenses incurred and
identifies the personal property moved; withholding payment would be
inappro-priate. A displaced person has the right to appeal any such
decision made by the displacing agency.

***49 CFR 24.303(c). Should a moving cost estimate prepared by an agency
employee be based on the costs charged by a professional moving firm or
on the actual costs a displaced person may incur? Is it permissible to
negotiate with the owner of a business the amount to be paid to him/her
for a self move?***\
The moving cost estimate for a non-residential self-move prepared by a
qualified agency employee should be based on the cost that would be
charged by a professional moving firm. If the estimate includes profit,
overhead, or other additional costs that the business will not actually
incur, it is permissible for the agency to negotiate a payment for an
amount that would reflect the actual costs the business would incur in
the move. This procedure does not preclude the owner from electing to
make an actual cost, documented self-move.

***49 CFR 24.301(d) and 24.303(a)(4). Is storage of personal property an
entitlement of every displaced person? Who determines if an agency
should pay for the storage of personal property, the terms of such
storage, and the length of time for storage payment?***\
The agency determines if the storage of personal property is a
reasonable and neces-sary moving expense for a displaced person. The
determination should be based on the needs of the agency and the
displaced person, the nature of the business, the plans for permanent
reloca-tion, the amount of time available for the relocation process,
and whether storage will facilitate relocation. It is the agency\'s
responsibility to set the terms for storage, including prohibiting
thestorage site\'s use as a temporary business operating site and the
length of time. On the other hand, if storage is essential to a
successful relocation, it may be extended, for good cause, to more than
one year.

**REESTABLISHMENT EXPENSES - NONRESIDENTIAL**

***49 CFR 24.304. Is new construction at the replacement site eligible
for reimbursement as a reestablishment expense?***\
The cost of constructing a new business building on the vacant
replacement property is a capital expenditure and is generally
ineligible for reimbursement as a reestablishment expense. In those rare
instances when a business cannot relocate without construction of a
replacement structure, a displacing agency may request a waiver of Part
24.304(b)(1) under the provisions of 49 CFR 24.7. An example of such an
instance would be in a rural area where there are no suitable buildings
available and the construction of a replacement structure will enable
the business to remain a viable commercial operation. If a waiver is
granted, the cost of constructing the new building will be considered an
eligible reestablishment expense subject to the \$10,000 statutory limit
on such payment.

***49 CFR 24.304. What reestablishment expense costs are eligible for
reimbursement if a displaced business occupies a shell structure.***\
Basically all of the costs listed under 49 CFR 24.304(a) are eligible if
considered actual, reasonable and necessary for the operation of the
business. In markets where existing and new buildings are available for
rental (and sometimes for purchase), the buildings or the various units
available within the buildings often have only the basic amenities such
as heat, light, and water, and sewer available. These buildings or units
are shells. The cost of a building (shell) is not an eligible expense
because the shell is considered a capital real estate improvement (a
capital asset). However, this determination does not preclude the
consideration by an acquiring agency of certain modifications to an
existing replacement business building. Eligible improvements or
modifications up to the amount of \$10,000 may include the addition of
necessary facilities such as bathrooms, room partitions, built-in
display cases and similar items, if required by Federal, State or local
codes, ordinances, or simply considered reasonable and necessary for the
operation of the business.

***49 CFR 24.303(a)(3) and 24.304(a)(1). Are costs incurred in complying
with OSHA and other code requirements at the replacement location
considered eligible costs in situations where the business was not
subject to the requirement at the displacement property because of a
\"grandfather\" provision?***\
Modifications to personal property mandated by Federal, State or local
law, code, or ordinance which are necessary to reassemble or reinstall
the personal property or adapt it to the replacement structure, the
replacement site, or the utilities at the replacement site are eligible
for reimbursement under subsection 24.303(a)(3). The modifications
authorized by this subsection must be clearly and directly associated
with the reinstallation of the personal property and cannot be for
general repairs or upgrading of equipment because of the personal choice
of the business owner. Finally, the expenditures for authorized
modifications must be reasonable and necessary.

Costs for repairs, modifications, or improvements to the replacement
real property due to the requirements of laws, codes, or ordinances can
only be paid under 49 CFR 24.304(a)(1) and are limited to the \$10,000
maximum payment under this subsection. Any costs in excess of \$10,000
are ineligible.

***49 CFR 24.304. If the nature, character, or type of business
established after displacement is different from the business displaced
by acquisition, would it be eligible for a reestablishment payment?***\
Yes. A change in a displaced business does not affect eligibility for
actual, reasonable, and necessary reestablishment expenses incurred in
reestablishing a business. In some instances, it is not economically
feasible to relocate a particular business operation and a change in the
nature, character, or type of business may be the most practical
solution for the business operator. Expenditures of funds for
reestablishing the business must be reviewed for acceptability. Costs of
new or used equipment purchased to serve the changed business operation
are not eligible for reimbursement as reestablishment expenses.
Similarly, general repairs or improvements to the replacement property
made to the structure because of the personal choice of the business
operator are ineligible. The costs of utility upgrades and necessary and
reasonable modifications to the real property to accommodate the changed
business may be eligible when properly supported. All reestablishment
payments are limited by the \$10,000 statutory maximum.

***49 CFR 24.304. Is a business operation that consists solely of
leasing real estate to others at the displacement site eligible for the
reestablishment payment?***\
Yes. The business of leasing real estate to others is considered to be a
\"small business\" for the purposes of the regulations for the Uniform
Act. The owner of the business is eligible for reimbursement of the
actual, reasonable, and necessary expenses for the reestablishment of a
rental property. The agency should provide the same advisory services to
real estate leasing operations as performed for other businesses
including providing information on suitable replacement properties. It
is the agency\'s responsibility to determine if the expenses to be
reimbursed under reestablishment are reasonable and necessary.

**FIXED PAYMENT - NONRESIDENTIAL MOVES**

***49 CFR 24.306(e). If the net income of a displaced business is very
low in one or both years prior to displacement, can the payment be based
upon a different period?***\
Yes. Average annual net earnings may be based upon a different time
period of two consecutive years when the displacing agency determines it
to be more equitable.

***49 CFR 24.306(e). If a business experienced a loss in one of the two
years, should the amount of the loss be offset against the net income
from the other year, or should the income be considered as zero for the
year in which the loss was incurred?***\
If a loss of net income occurs in one year and a gain in the other year,
the income of the year in which the loss was incurred shall be computed
as zero when determining the average net income for the 2-year period.

***49 CFR 24.306(e). If a business has been in operation for only a
short period of time (e.g., six months) prior to displacement, what
method is used for determining the amount of the fixed payment?***\
The fixed payment would be based on the net earnings of the business at
the dis-placement site for the actual period of operation projected to
an annual rate. The existing net earnings income data would be
extrapolated and used to project what the net earnings could have been
if the business had been in business for a full two years. If the
business is seasonal, this fact should be taken into account in the
computations.

**SUBPART E \-- REPLACEMENT HOUSING PAYMENTS \-- GENERAL**

***49 CFR 24.2(d). Can a replacement housing payment computation be
based upon a comparable property which may have a minor decent, safe,
and sanitary deficiency?***\
If the availability of comparable replacement properties is limited, the
displacing agency may base a replacement housing payment on an available
property having minor DSS deficiencies, provided the deficiencies can be
easily corrected for a nominal amount. Use of non-DSS properties with
minor deficiencies should be limited to situations where a windfall or
excessive expenditure can be avoided and/or when housing of last resort
is needed to relocate the displaced person into comparable housing. The
payment computation ***must*** reflect the cost to correct the
deficiencies. If such housing is used to meet the \"make available\"
requirement, the housing must be available and DSS at the time of the
move.

***49 CFR 24.2(f)(6). How should the replacement housing payment be
computed and paid when accommodations need to be provided for a
displaced person with disabilities?***\
The regulation permits sufficient flexibility for each agency to develop
procedures for accommodating the needs of a displaced person with
disabilities. The replacement housing payment computation may: (1) be
based on a dwelling designed for physically disabled persons, (2)
include the estimated costs of any needed modifications, or (3) contain
provisions for the adjustment to reflect the actual cost of
modifications to the replacement housing payment computation.

Arrangements for modifications to the replacement dwelling purchased by
the displaced person may be made by either the individual or by the
agency, and the agency shall provide reimbursement for the actual
reasonable costs paid for such modifications. The agency could also
elect to obtain bids or to contract directly for needed modifications.

Rental replacement housing could be provided in the same manner, with
the consent of the landlord, or the rental assistance payment could be
increased to appropriately compensate the landlord for any necessary
modifications or accommodations necessary for the replacement property
to be considered DSS. If a financial hardship would be created for the
displaced person, the agency could provide an advance replacement
housing payment for the needed modifications.

The fixed payment would be based on the net earnings of the business at
the dis-placement site for the actual period of operation projected to
an annual rate. The existing net earnings income data would be
extrapolated and used to project what the net earnings could have been
if the business had been in business for a full two years. If the
business is seasonal, this fact should be taken into account in the
computations.

**OWNER-OCCUPANTS**

***If the replacement housing property is a part of a property that
contains another dwelling unit and/or space used for non-residential
purposes or is located on a tract which is significantly larger than
typical for residential purposes, must there be an adjustment to the
purchase price of the replacement property to reflect the cost of the
replacement dwelling for the replacement housing payment
computation?***\
When the replacement property contains another dwelling unit and/or
space used for non-residential (commercial/industrial) purposes, an
adjustment to the price of the property shall be made to reflect the
cost of the replacement dwelling and a typical residential site.

When the replacement property does not contain another dwelling unit or
space used for non-residential purposes, but is significantly larger
than a typical residential site, an adjustment to the price of the
property shall be made only if, in the displacing agency\'s judgement, a
portion of the property constitutes an agricultural or other business
use. The adjustment shall be made to reflect the cost of the replacement
dwelling and a typical residential site.

In determining the need for an adjustment, the agency shall apply its
policy uniformly to persons in like circumstances. The agency should be
aware that the land in excess of a typical site may have a different
unit value than land valued for residential use on a typical site.

***49 CFR 24.2(p)(1). Is a displaced person who holds a life estate in
the displacement property an owner or a tenant?***\
A displaced person who holds a life estate is considered to be an owner.
A person who holds a life estate has a right to occupy a property for
life. Many times, a life estate is retained by a person who has been
granted such right by a grantor or who conveys the remainder interest to
another person. The computed replacement housing payment may depend upon
the distribution of the acquisition payment in accordance with state
law. Each agency should develop procedures in accordance with applicable
law. The replacement housing payment computation should be sufficient to
enable the displaced person to relocate as an owner with an interest at
least equivalent to the interest held prior to the acquisition of the
property.

The payment computation will be based on the total amount of the
acquisition payment for a dwelling comparable to the acquired dwelling.
As an alternative, the agency may acquire a dwelling and provide a
\"life estate\" to the displaced person. Any such agreement should
clearly establish the responsibilities and rights of each party.

***49 CFR 24.401(c)(4). When an owner-occupant retains the displacement
dwelling and moves it to the remainder or to a previously owned tract of
land, is the historical cost or the current fair market value of the
replacement site used as the \"acquisition cost\" for the RHP
computation?***\
The acquisition cost will be based on the current fair market value of
the replacement site for residential use as determined by the agency. If
an agency uses the buildable lot procedure in accordance with
24.403(a)(3), the value of the buildable remainder will have been added
to the acquisition cost of the displacement dwelling for purposes of
computing the replacement housing payment.

***49 CFR 24.403(a)(2). Can an alternative procedure which would enable
the displaced person to replace a major exterior attribute be utilized
for determining the replacement housing payment in cases where the
comparable replacement dwelling site lacks a major exterior attribute of
the displacement dwelling?***\
No. Section 24.403(a)(2) requires that the value of the attribute be
subtracted from the acquisition price of the displacement dwelling for
purposes of computing the payment if the comparable replacement dwelling
site lacks a major exterior attribute. The agency should always attempt
to locate a comparable dwelling with the attribute before selecting a
dwelling without the attribute.

***49 CFR 24.401(c). How much money must an owner-occupant with a
partial interest in the acquired property spend in order to receive the
maximum computed supplemental payment?***\
The owner-occupant with a partial interest must spend his/her share of
the acquisition payment plus the computed supplemental payment in order
to receive the maximum payment.

***49 CFR Appendix A, Subpart E, reference Section 24.404(b). How do you
relocate a partial owner-occupant who cannot afford to finance a
replacement dwelling? Can a direct loan under the provision of Section
24.404(c) be provided?***\
If an agency determines that the relocation of a partial owner-occupant
should be as an owner, the agency may provide a direct loan, lien or
other financial assistance under Section 24.404(c) if other financing is
not available to the person, in addition to the computed replacement
housing payment. A partial owner-occupant who cannot afford to purchase
a comparable replacement housing may be relocated as a tenant and
provided a rental assistance payment in accordance with Section 24.402.

***49 CFR 24.403(c). Will the purchase and occupancy of a motor home or
a boat meet the requirement for \"Purchase (of) a replacement
dwelling?\"***\
A motor home or a boat capable of providing living accommodations may be
considered a replacement dwelling if:

\(A\) The motor home or boat is purchased and occupied as the
\"primary\" place of residence,

\(B\) 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

\(C\) 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.

A motor home or a boat designed to provide living accommodations may
also meet the requirement of renting a replacement dwelling if it is
occupied as the \"primary\" place of residence and qualifies under (B)
and (C) above.

***49 CFR 24.403(a)(1). May an agency develop a statewide average
percentage adjustment to be used for adjusting comparable property list
prices to probable selling prices?***\
No. An agency must adjust asking prices for the specific project or
program area based on information appropriate for DSS, comparable
dwellings for sale in the same area, and price range as the acquired
dwelling. The use of historic differences in average list and sales
prices in an area may not reflect the impact of the project on the
prices of the potential replacement dwellings needed by displaced
persons. The use of a price and comparability \"band\" or \"range\" will
provide the most accurate information. When seeking to adjust the asking
price of a comparable replacement dwelling, the agency is required to
provide information to thedisplaced person about the negotiation
techniques necessary to acquire residential property for less than the
asking price.

**MORTGAGE AND INCIDENTAL COSTS FOR PURCHASE OF REPLACEMENT DWELLING (
Owners and Tenants)**

***49 CFR 24.401(d)(3). If the interest rate charged for a new mortgage
exceeds the prevailing interest rate because the displaced person is a
poor credit risk or for other similar reasons, may the actual rate be
utilized when determining the amount of the mortgage interest
differential payment?***\
The interest rate for a new mortgage should generally not exceed the
current range of prevailing mortgage interest rates of lending
institutions in the area of the replacement dwelling. If the displaced
person\'s unique circumstances require payment of a higher interest rate
and the agency determines that the additional cost could prevent the
displaced person from obtaining comparable housing, the required rate
may be used. The file should contain justification for the rate used.

***49 CFR 24.401(e). May the agency limit the reimbursement for all
incidental expenses to those which would have been incurred incident to
the purchase of a comparable replacement dwelling?***\
No. However, the incidental expenses of owner-occupants can be limited
to the expenses that would have been necessary for purchase of a
comparable replacement dwelling for owner\'s or mortgagee\'s evidence of
title, state revenue or documentary stamps, and sales or transfer taxes.
Participation in all incidental expenses should be limited to those that
are actual, reasonable, and necessary and required by the mortgagee or
necessary for the protection of the owner. For example, an owner who
buys without a mortgage should be entitled to title insurance, termite
and building inspections, surveys, and any other reasonable items that
would protect his or her investment.

In accordance with 24.402(c)(2) and 24.404, tenants are eligible to
receive reimbursement for incidental expenses related to the purchase of
a replacement dwelling to the extent that the total payment does not
exceed the amount of the computed rental assistance or housing of last
resort payment.

***49 CFR 24.401(e). Which of the incidental expenses for purchase of a
replacement dwelling can be limited to what would be required to obtain
a new mortgage in the same amount as the remaining balance of the
mortgage on the acquired dwelling?***\
Mortgage guarantee insurance premiums, origination and assumption fees,
purchaser\'s points, and any other like expenses that are based on the
amount of the mortgageobtained can be limited. These are the same
payments that would be limited for computation of increased mortgage
interest costs. Computations would be based on the lesser of the
remaining mortgage balance on the acquired dwelling or the mortgage
obtained on the replacement dwelling.

***49 CFR 24.401(e). Can a lump-sum payment for mortgage guarantee
insurance be included as an incidental expense?***\
Yes. Required lump-sum payments for mortgage guarantee insurance may be
included as part of the mortgage interest differential (MID) payment. If
they are paid as an incidental expense to an owner-occupant, any payment
made should be based upon the computed replacement mortgage for MID
purposes or the new mortgage amount, whichever is less. Payments to
tenants may be made if the computed rental assistance payment is
sufficient to cover this expense.

***49 CFR 24.402(c). What are the limitations on the payment of
incidental expenses for a tenant who elects to purchase a replacement
dwelling?***\
All incidental expenses actually incurred by a tenant for the purchase
of a replacement dwelling (customarily paid by the buyer) in accordance
with 24.401(e) can be included in the computation of down payment
assistance to the extent they do not exceed the amount available for
down payment assistance.

***49 CFR 24.402(c)(2). Are loan origination fees incurred by a tenant
in the purchase of a replacement dwelling eligible for reimbursement as
incidental expenses?***\
Yes. Sections 24.401(e)(3) and (9) provides for payment of loan
origination fees and other similar costs the agency determines to be
incidental to the purchase. The total payment for a tenant may not
exceed the computed rental assistance payment or \$5,250, whichever is
greater.

**TENANTS and other 90-day occupants**

***49 CFR 24.2(d)(7) and Appendix A, Subpart A, reference Section
24.2(d)(7). Can the displaced occupant of a public housing unit be
offered other public housing units as a comparable replacement
housing?***\
Yes. A person displaced from a public housing project may be offered a
comparable public housing unit as a replacement dwelling. The rental
assistance payment would be based upon the rent of the available unit
unless the person is no longer eligible for subsidized public housing.
In that event, a comparable replacement dwelling from the private market
would have to be made available.

**HOUSING OF LAST RESORT**

***49 CFR 24.404(c)(iv). May a direct loan as provided for in this
section be used as a substitute for a replacement housing payment?***\
No. A direct loan would be provided in addition to any replacement
housing payment computed for the displaced person. A direct loan may be
provided under housing of last resort if financing is not otherwise
available to the displaced person. It cannot be used as a substitute for
a replacement housing payment.

***49 CFR 24.404(c)(1). Are there other ways to assist displaced persons
to occupy purchased replacement housing other than the ones listed in
24.404(c)?***\
Yes. The agency has many options for assisting people to become owners
of replace-ment dwellings. A first mortgage or a lien can be placed on a
property that would become due and payable if the displaced person
ceased to occupy the property or conveyed or sold the property to
someone else. A life estate, based on the displaced person\'s life,
could be offered in a property owned or purchased by an agency. The
displaced person would have the right to occupy the property until death
when the full ownership of the property would revert to the agency for
other uses or sale. The agency could also \"buy down\" the interest or
the mortgage of a property with a financing agency to make the payments
affordable for the displaced person. Or the agency could initiate
mortgage financing for a displaced person and then sell the mortgage,
possibly at a reduced rate, to a person or institution who would become
the new mortgagee. Several agencies have also assisted displaced persons
in establishing credit at credit unions that then financed the mortgages
for them.

It is recommended that agencies use the provisions of Housing of Last
Resort to maximize housing opportunities in a cost efficient manner.

**SUBPART F \-- MOBILE HOMES**

***49 CFR 24.503. If a displaced owner-occupant of a mobile home is a
partial owner of the mobile home site, what payments would he or she be
entitled to receive?***\
The displaced person would be treated as an owner in accordance with the
guidance in Appendix A, Subpart E, Section 24.404(b). If the mobile home
is acquired or cannot be relocated, the owner would be eligible for a
replacement housing payment to purchase a mobile home. He/she would also
receive a replacement housing payment based upon the difference between
the asking price of a comparable mobile home site and the acquisition
price of the site (as improved for a mobile home) from which he/she is
displaced. If there are no mobile home sites available for purchase
within his/her financial means as a partial owner, then he/she could
receive a rental assistance payment sufficient to rent a comparable
mobile home site.

***49 CFR 24.504. Is a mobile home owner-occupant who leases or rents
his/her site at the displacement location eligible for a down payment
for a replacement site?***\
The owner of a mobile home, who rents the site from which he/she is
displaced, may either rent a replacement site and receive a rental
assistance payment in accordance with Section 24.402(b) or purchase a
replacement site and receive down payment assistance in accordance with
Section 24.402(c).