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CHAPTER 8. ADDITIONAL PROGRAM REQUIREMENTS

Section 1. CDBG Entitlement, CDBG HUD-Administered Small Cities, UDAG,

Special Purpose Grants, Section 108 Loan Guarantee, and CDBG

Presidentially Declared Major Disasters Programs

8-1. APPLICABILITY.

a\. Programs Covered. This section provides guidance with respect to

the following programs:

\(1\) CDBG Entitlement Program (see [24 CFR
570.606](http://www.gpoaccess.gov/cfr/index.html)).

\(2\) CDBG HUD-Administered Small Cities Program (see [24
CFR](http://www.gpoaccess.gov/cfr/index.html)

[570.606](http://www.gpoaccess.gov/cfr/index.html)).

\(3\) Urban Development Action Grants (UDAG) (see [24 CFR
570.457](http://www.gpoaccess.gov/cfr/index.html)).

\(4\) Special Purpose Grants (see [24 CFR
570.410](http://www.gpoaccess.gov/cfr/index.html)).

\(5\) Section 108 Loan Guarantees (see 24 CFR 570.703(d).

b\. Rules That Apply. The programs described in Paragraph 8-1a are

subject to the following requirements:

\(1\) The URA and implementing relations at 49 CFR Part 24. These

are described in Chapters 1 through 6 of this handbook.

\(2\) Section 104(d) of the Housing and Community Development Act of

1974,as amended. and implementing relations at 24 CFR

570.606(c). The relocation requirements are described in

Chapter 7 of this handbook.

\(3\) Section [24 CFR 570.606](http://www.gpoaccess.gov/cfr/index.html).
These additional policies are

described in this Section 1.

8-2. MINIMIZING DISPLACEMENT. Consistent with the other goals and
objectives

of the programs covered by this Section 1, the grantee shall assure that

it has taken all reasonable steps to minimize displacement as a result

of an assisted project.

8-3. DEFINITION OF DISPLACED PERSON.

a\. Section 104(d). For section 104(d) purposes; the term \"displaced

person\" is described in Paragraph 7-7.

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b\. URA Levels of Assistance. Each \"displaced person\" is eligible for

assistance at URA levels. For these purposes, the term \"displaced

person\" is generally described in Paragraph 1-8. However, 24 CFR

570.606(b)(2) provides the following additional guidance:

\(1\) The term \"displaced person\" includes (but may not be limited

to):

\(a\) A person that moves permanently from the real property

after receiving a notice from the grantee requiring such

move, if the move occurs on or after:

\(i\) For the CDBG Entitlement Program, the date of the

initial submission to HUD of the final statement

(or amended final statement) under 24 CFR

570.302(a)(2) describing the assisted activity.

\(ii\) For the HUD-administered Small Cities Program, the

date of the initial submission to HUD of an

application for assistance under \'\'570.426, 570.430,

or 570.435(d) that is later granted.

\(iii\) For the Special Purpose Grants Program, the date of

the submission to HUD of an application for

assistance under \'570.410 that is later granted.

\(iv\) For the Section 108 Loan Guarantee Program, the

date of the submission to HUD of an application for

loan guarantee assistance under \'571.701 that is

later provided.

\(v\) For the UDAG Program, the date of the submission to

HUD of an application for assistance under \'570.458

that is later granted.

\(b\) A person that moves permanently from the real property

after receiving a notice from the property owner (or

person in control of the site) that requires such move,

if the move occurs on or after the date of the submission

to the grantee of an application for assistance that is

later approved or the date the site is identified, if

later.

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\(c\) Any person, including a person who moves before the

date(s) described in Paragraph 8-3b(1)(a) or (b) that

HUD or the grantee determines was displaced as a direct

result of acquisition, rehabilitation, or demolition

for the assisted project.

\(d\) A tenant-occupant of a dwelling who moves permanently

from the building/complex after the \"initiation of

negotiations\" (described in Paragraph 8-4), if the move

occurs before the tenant is provided written notice

offering him or her the opportunity to lease and occupy

a suitable, decent, safe, and sanitary dwelling in the

same building/complex, under reasonable terms and

conditions, upon completion of the project. Such

reasonable terms and conditions include a monthly rent

and estimated average monthly utility costs that do not

exceed the greater of: (i) The tenant\'s monthly rent

before the \"initiation of negotiations\" and estimated

average monthly utility costs;\" or (ii) 30 percent of

the household\'s average monthly gross income.

\(e\) A tenant-occupant of a dwelling who is required to

relocate temporarily for the project, but does not

return to the building/complex, if either:

\(i\) The tenant is not offered payment for all

reasonable out-of-pocket expenses incurred in

connection with the temporary relocation

(including the cost of moving to and from the

temporarily occupied unit and any increased

housing costs); or

\(ii\) Other conditions of the temporary relocation are

not reasonable.

\(f\) A tenant-occupant of a dwelling who moves from the

building/complex permanently after he or she has been

required to relocate to another unit in the

building/complex in order to carry out the project, if

either:

\(i\) The tenant is not offered reimbursement for all

reasonable out-of-pocket expenses incurred in

connection with the move, or

\(ii\) Other conditions of the move are not reasonable.

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\(2\) Persons Not Eligible. Notwithstanding the provisions of

Paragraph 8-3b(1), a person does not qualify as a \"displaced

person\" (and is not entitled to relocation assistance at URA

levels), if:

\(a\) The person is excluded under Paragraph 1-8c; or

\(b\) The person has been evicted for serious or repeated

violation of the terms and conditions of the lease or

occupancy agreement, violation of applicable Federal,

State or local law, or other good cause, and the

grantee determines that the eviction was not undertaken

for the purpose of evading the obligation to provide

relocation assistance; or

\(c\) The person moves into the property after the date

described in Paragraph 8-3b(1)(a) or (b) and, before

commencing occupancy, was provided written notice of

the project, its possible impact on the person (e.g.,

the person may be displaced, temporarily relocated or

suffer a rent increase) and the fact that he or she

would not qualify as a \"displaced person\" as a result

of the project.

NOTE: Section 414 of the Disaster Relief Act of 1974 (DRA)

waives the occupancy requirements in Paragraphs 3-3, 3-4, or 3-5,

if the person was displaced from his or her dwelling by a

Presidentially recognized disaster. Therefore, if HUD financial

assistance is used to acquire real property or rehabilitate or

demolish a structure that has been vacant since it was rendered

uninhabitable by a disaster, the previous occupants must either

be given the opportunity to return to the site under reasonable

terms and conditions or be provided replacement housing

assistance (if otherwise eligible). See Paragraph 3-7e(1).

8-4. DEFINITION OF INITIATION OF NEGOTIATIONS. For purposes of

determining whether a person displaced from a dwelling qualifies for

a replacement housing payment under Paragraph 3-3 or Paragraph 3-4

(as opposed to Paragraph 3-5), the term \"initiation of negotiations\"

means:

a\. The action described in Paragraph 1-15a, if the displacement

results from acquisition by a State agency (defined in Paragraph

1-23).

b\. The execution of the grant or loan agreement between the grantee

and the person owning or controlling the real property, if the

displacement results directly from privately undertaken

rehabilitation, demolition, or acquisition.

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c\. The notice to the person that he or she will be displaced by the

project (or the person\'s actual move, if there is no such

notice), if the displacement results from grantee demolition or

rehabilitation and there is no related State agency acquisition.

8-5. OPTIONAL RELOCATION ASSISTANCE. Under section 105(a)(11) of the

Housing and Community Development Act of 1974, as amended (the Act),

the grantee may provide relocation payments and other relocation

assistance to persons displaced by activities that are not subject to

the URA or section 104(d). The grantee may also provide relocation

assistance to persons receiving assistance under the URA or section

104(d) at levels in excess of those required by Chapters 1 through 7

of this handbook. For assistance that is not required by State or

local law, the grantee shall adopt a written policy available to the

public that describes the relocation assistance that it has elected

to furnish and provides for equal relocation assistance within each

class of displaced persons.

8-6. APPEAL BY LOWER-INCOME PERSON. Under the programs described in

Paragraph 8-1a a lower-income person (defined in Paragraph 1-16) who

is dissatisfied with the grantee\'s determination on his or her appeal

under Paragraph 1-33 may request the HUD Field Office (that

administers URA requirements in HUD-assisted programs in the area) to

review that determination. HUD review is described in Paragraph

1-33i.

8-7. COMPLIANCE RESPONSIBILITY OF GRANTEE.

a\. Certification. Before receiving HUD financial assistance, the

grantee must certify to HUD that it will comply with the URA,

implementing regulations at 49 CFR Part 24, and 24 CFR 570.606,

including the requirements in 24 CFR 570.606(c) governing the

residential antidisplacement and relocation assistance plan under

section 104(d) of the Act (including a certification that it is

following such a plan). The grantee is responsible for ensuring

compliance with such requirements, as described in this handbook,

notwithstanding any third party\'s contractual obligation to the

grantee to comply with such provisions.

b\. The cost of required relocation assistance is an eligible project

cost in the same manner and to the same extent as the other

project costs. However, such assistance may also be paid for

with funds available from other sources.

c\. The grantee must maintain records in detail sufficient to

demonstrate compliance with the provisions of this handbook, as

described in Chapter 6.

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8-8. APPLICATION OF CDBG REQUIREMENTS TO OTHER PROGRAMS.

a\. General Policy. If CDBG funds are used to pay any part of the

cost of acquisition, demolition, construction or rehabilitation

activities for a project, the project is subject to all of the

requirements described in Paragraph 8-1b. These include the URA

(see Chapters 1 through 6) and section 104(d) of the Housing and

Community Development Act of 1974, as amended (see Chapter 7).

b\. \"Rehabilitation Activities\" Triggering CDBG Requirements. CDBG

requirements, including the section 104(d) requirements, are

triggered by the use of CDBG funds to pay any part of the cost of

\"rehabilitation activities\" as described in 24 CFR 570.202(b).

NOTE: In addition to the actual repair work, alterations and

additions to structures, this term includes rehabilitation

services, such as rehabilitation counseling, energy auditing,

preparation of work specifications, loan processing, and property

inspections.

c\. CDBG Assistance Not Triggering CDBG Requirements. The CDBG

requirements described in Paragraph 8-1b are not triggered by the

use of CDBG funds solely to pay the costs of general program

administration as described in 24 CFR 570.206 or to pay for

relocation assistance under 24 CFR 570.201(i).

8-9. - 8-20. RESERVED

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Section 2. State CDBG Program

8-21. APPLICABLE RULES. The State CDBG Program (24 CFR 570, Subpart 1)

is subject to:

a\. The URA and implementing regulations at 49 CFR Part 24. These

requirements are described in Chapters 1 through 6 of this

handbook.

b\. Section 104(d) of the Housing and Community Development Act of

1974, as amended, and implementing regulations at 24 CFR

570.488(c). The relocation requirements of this rule are

described in Chapter 7 of this handbook.

c\. 24 CFR 570.488. These additional policies are described in this

Section 2.

8-22. MINIMIZING DISPLACEMENT. Consistent with the other goals and

objectives of the State CDBG Program, the grantee shall assure that it

has taken all reasonable steps to minimize displacement as a result of

activities assisted under the program.

8-23. DEFINITION OF DISPLACED PERSON.

a\. Section 104(d). For section 104(d) purposes, the term \"displaced

person\" is described in Paragraph 7-7.

b\. URA. For those eligible for assistance at URA levels, the term

\"displaced person\" is generally described in Paragraph 1-8.

However, 24 CFR 570.488a(2) provides the following additional

guidance:

\(1\) The term \"displaced person\" includes (but may not be limited

to):

\(a\) A person that moves permanently from the real property

after notice by the property owner requiring such move,

if the move occurs on or after the date of the initial

submission of an application to the State recipient by

the property owner (or person in control of the site)

requesting assistance that is later approved for the

project.

\(b\) A person that moves permanently from the real property

after notice by the State recipient requiring such

move, if the move occurs on or after the date of the

initial submission of an application to the State by

the State recipient requesting assistance under 24 CFR

570.480 that is later granted for the project.

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\(c\) Any person, including a person who moves before the date

described in Paragraph 8-22b(1)(a) or (b) that HUD, the

State or the State recipient determines was displaced as

a direct result of acquisition, rehabilitation, or

demolition for the assisted project.

\(d\) A tenant-occupant of a dwelling who moves permanently

from the building/complex after the \"initiation of

negotiations\" (described in Paragraph 8-24), if the move

occurs before the tenant is provided written notice

offering him or her the opportunity to lease and occupy

a suitable, decent, safe, and sanitary dwelling in the

same building/complex, under reasonable terms and

conditions, upon completion of the project. Such

reasonable terms and conditions include a monthly rent

and estimated average monthly utility costs that do not

exceed the greater of: (i) The tenant\'s monthly rent

before the \"initiation of negotiations\" and estimated

average monthly utility costs;\" or (ii) 30 percent of the

household\'s average monthly gross income.

\(e\) A tenant-occupant of a dwelling who is required to

relocate temporarily for the projects, but does not

return to the building/complex, if either:

\(i\) The tenant is not offered payment for all

reasonable out-of-pocket expenses incurred in

connection with the temporary relocation (including

the cost of moving to and from the temporarily

occupied unit and any increased housing costs); or

\(ii\) Other conditions of the temporary relocation are

not reasonable.

\(f\) A tenant-occupant of a dwelling who moves from the

building/complex permanently after he or she has been

required to relocate to another unit in the

building/complex in order to carry out the project, if

either:

\(i\) The tenant is not offered reimbursement for all

reasonable out-of-pocket expenses incurred in

connection with move, or

\(ii\) Other conditions of the move are not reasonable.

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\(2\) Persons Not Eligible. Notwithstanding the provisions of

Paragraph 8-23b(1), a person does not qualify as a \"displaced

person\" (and is not entitled to relocation assistance at URA

levels), if:

\(a\) The person is excluded under Paragraph 1-8c; or

\(b\) The person has been evicted for serious or repeated

violation of the terms and conditions of the lease or

occupancy agreement, violation of applicable Federal,

State or local law, or other good cause, and the State or

State recipient determines that the eviction was not

undertaken for the purpose of evading the obligation to

provide relocation assistance; or

\(c\) The person moves into the property after the date

described in Paragraph 8-23b(1)(a) or (b) and, before

commencing occupancy, was provided written notice of the

project, its possible impact on the person (e.g., the

person may be displaced, temporarily relocated or suffer

a rent increase) and the fact that he or she would not

qualify as a \"displaced person\" as a result of the

project.

8-24. DEFINITION OF INITIATION OF NEGOTIATIONS. For purposes of
providing

the appropriate notice under Paragraph 2-3b and determining whether a

person displaced from a dwelling qualifies for a replacement housing

payment under Paragraph 3-3 or Paragraph 3-4 (as opposed to Paragraph 3-

5), the term \"initiation of negotiations\" means:

a\. If the displacement results from privately undertaken

rehabilitation. demolition. or acquisition, the execution of the

grant or loan agreement between the State or State recipient and

the person owning or controlling the real property.

b\. If the displacement results from acquisition by a State agency

(defined in Paragraph 1-23), the action described in Paragraph 1-

15a.

c\. If the displacement results from State agency demolition or

rehabilitation and there is no related State agency acquisition,

the notice to the person that he or she will be displaced by the

project (or the person\'s actual move, if there is no such notice).

8-25. OPTIONAL RELOCATION ASSISTANCE. Under section 105(a)(11) of the

Housing and Community Development Act of 1974, as amended, the State may

permit State recipients to provide relocation payments and other

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relocation assistance to persons displaced by activities that are not

subject to Chapters 1 through 7 of this handbook. The State may also

permit State recipients to provide relocation assistance to displaced

persons (see Paragraphs 1-8, 7-7 and 8-22) at levels in excess of those

required by Chapters 1 through 7 of this handbook. Unless such

assistance is provided under State or local law, the State recipient

shall provide such assistance only upon the basis of a written policy

adopted by the State or State recipient that is available to the public,

describes the relocation assistance to be firm shed, and provides for

equal relocation assistance within each class of displaced persons.

8-26. APPEAL BY LOW-INCOME PERSON. Under the State CDBG Program, a lower

-income person (defined in Paragraph 1-16), who is dissatisfied with the

determination of the State recipient on his or her appeal under

Paragraph 1-33, may request the State to review that determination, as

described in Paragraph 1-33i.

8-27. COMPLIANCE RESPONSIBILITIES OF STATE AND STATE RECIPIENTS.

a\. The State is responsible for ensuring compliance with the

requirements of this Section 2. It must:

\(1\) Require the State recipient to certify that it will comply

with the requirements of the URA, implementing regulations at

49 CFR Part 24, and 24 CFR 570.488 including the requirements

in 24 CFR 570.488(c) governing the residential

antidisplacement and relocation assistance plan under section

104(d) of the Act (including a certification that it is

following such a plan).

\(2\) Monitor State recipient compliance with such requirements.

\(3\) Maintain records of monitoring activities, including findings

and follow-up action; approved applications and performance

reports describing displacement, relocation, and real property

acquisition activities: and training and technical assistance

materials provided to State recipients.

b\. The State recipient must:

\(1\) Certify that it will comply with the requirements of the URA,

implementing regulations at 49 CFR Part 24, and 24 CFR

570.488, including the requirements in 24 CFR 570.488(c)

governing residential antidisplacement and relocation

assistance plan under section 104(d) of the Act (including a

certification that it is following such a

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plan). The State recipient shall ensure such

compliance, notwithstanding any third party\'s

contractual obligation to the State recipient to

comply with specified requirements.

\(2\) Maintain records in detail sufficient to

demonstrate compliance with all required statutory

and regulatory provisions. These recordkeeping

requirements are described in Chapter 6 of this

handbook.

c\. The cost of required relocation assistance is an eligible

project cost in the same manner and to the same extent as

other project costs. The cost of required assistance

may, however, also be paid from local public funds or

funds available from other sources.

8-28. APPLICATION OF CDBG REQUIREMENTS TO OTHER PROGRAMS.

See policy under Paragraph 8-8.

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Section 3. Community Development Block Grants

for Indian Tribes and Alaskan Native Villages

8-31. APPLICABLE RULES. The Community Development Block

Grants for Indian Tribes and Alaskan Native Villages

Program is subject to:

a\. The URA and implementing regulations at 49 CFR Part 24.

These requirements are described in Chapters 1 through 6

of this handbook.

b\. Section 24 CFR 571.602. These additional policies are

described in this Section 3.

c\. The \"optional relocation assistance\" authority of section

105(a)(11) of the Housing and Community Development Act

of 1974. Under section 105(a)(11), the grantee may

provide relocation payments and other relocation

assistance to persons displaced by a project that is not

subject to the URA. The grantee may also provide

relocation assistance to persons receiving assistance

under the URA at levels in excess of those required by

Chapters 1 through 6 of this handbook. For assistance

that is not required by State or tribal law, the grantee

shall adopt a written policy available to the public that

describes the relocation assistance that it has elected

to furnish and provides for equal relocation assistance

within each class of displaced persons.

NOTE: Grants under 24 CFR 571 are not subject to the

section 104(d) policies in Chapter 7.

8-32. MINIMIZING DISPLACEMENT. Consistent with the other goals

and objectives of the Community Development Block Grants

for Indian Tribes and Alaskan Native Villages Program,

grantees shall assure that they have taken all reasonable

steps to minimize displacement as a result of a project

assisted under this Program.

8-33. TEMPORARY RELOCATION. See policy in Paragraph 2-4b.

8-34. DEFINITION OF DISPLACED PERSON. Each \"displaced person\"

is eligible for relocation assistance at URA levels. The

term \"displaced person\" is generally described in

Paragraph 1-8. However, 24 CFR 571.602(g) provides the

following additional guidance:

a\. The term \"displaced person\" includes (but may not be

limited to):

\(1\) A person that moves permanently from the real

property after notice from the grantee requiring

such move, if the move occurs on or after the date

of the submission to HUD of an application for

financial assistance that is later approved for the

project.

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\(2\) A person that moves permanently from the real

property after notice from the property owner

requiring such move, if the move occurs on or after

the date of the submission to the grantee of an

application for financial assistance that is later

approved for the project.

\(3\) Any person, including a person who moves before the

date described in Paragraph 8-34a(1) or (2) if

either HUD or the grantee determines that the

person was displaced as a direct result of

acquisition, rehabilitation, or demolition for the

assisted project.

\(4\) A tenant-occupant of a dwelling unit who moves

after execution of the agreement between the

grantee and HUD, if the move occurs before the

tenant is provided written notice offering him or

her the opportunity to lease and occupy a

suitable, decent, safe, and sanitary dwelling in

the same building/complex, under reasonable terms

and conditions, upon completion of the project.

Such reasonable terms and conditions include a

monthly rent and estimated average monthly utility

costs that do not exceed the greater of:

\(a\) the tenant\'s monthly rent before the

agreement and estimated average monthly

utility costs; or (b) 30 percent of the

household\'s average monthly gross income; or

\(5\) A tenant-occupant of a dwelling who is required to

relocate temporarily for the project, but does not

return to the building/complex, if either

\(a\) The tenant is not offered payment for all

reasonable out-of-pocket expenses incurred in

connection with the temporary relocation

(including the cost of moving to and from the

temporarily occupied unit and any increased

housing costs); or

\(b\) Other conditions of the temporary relocation

are not reasonable.

\(6\) A tenant-occupant of a dwelling who moves from the

building/complex permanently after he or she has

been required to move to another unit in the

building/complex in order to carry out the project,

if either:

\(a\) The tenant is not offered reimbursement for

all reasonable out-of-pocket expenses

incurred in connection with the move; or

\(b\) Other conditions of the move are not

reasonable.

b\. Persons Not Eligible. Notwithstanding the provisions of

Paragraph 8-33a, a person does not qualify as a

\"displaced person\" (and is not entitled to relocation

assistance at URA levels), if:

\(1\) The person is excluded under Paragraph 1-8c; or

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\(2\) The person has been evicted for serious or repeated

violation of the terms and conditions of the lease or

occupancy agreement, violation of applicable Federal,

State, local or tribal law, or other good cause, and HUD

determines that the eviction was not undertaken for the

purpose of evading the obligation to provide relocation

assistance; or

\(3\) The person moves into the property after the submission of

the application for assistance to HUD and, before signing a

lease or commencing occupancy, is provided written notice

of the project, its possible impact on the person (e.g.,

the person may be displaced, temporarily relocated, or

suffer a rent increase), and the fact that the person would

not qualify as a \"displaced person\" as a result of the

project.

8-35. DEFINITION OF INITIATION OF NEGOTIATIONS. For purposes of
providing

the appropriate notice under Paragraph 2-3b and determining whether

a person displaced from a dwelling qualifies for a replacement

housing payment under Paragraph 3-3 or Paragraph 3-4 (rather than

Paragraph 3-5), the term \"initiation of negotiations\" means:

a\. If the displacement results from rehabilitation or demolition,

the execution of the agreement between the grantee (or property

owner) and the rehabilitation or demolition contractor.

b\. If the displacement results from acquisition by a State agency

(defined in Paragraph 1-23), the action described in Paragraph

1-15a.

c\. If the displacement results from grantee demolition or

rehabilitation and there is no related State acquisition, the

notice to the person that he or she will be displaced by the

project (or the person\'s actual move, if there is no such

notice).

8-36. REAL PROPERTY ACQUISITION.

a\. State Agency Acquisition. The acquisition of real property by a

State agency (defined in Paragraph 1-23) for an assisted project

is subject to the policies in Chapter 5.

b\. Other Acquisition. Whenever the grantee does not have the

authority to acquire the real property through condemnation, it

shall:

\(1\) Before discussing the purchase price, inform the owner:

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\(a\) Of the amount it believes to be the fair market value

of the property. Such amount shall be based upon one

or more appraisals prepared by a qualified appraiser.

However, this provision does not prevent the grantee

from accepting a donation or purchasing the real

property at less than its fair market value.

\(b\) That it will be unable to acquire the property if

negotiations fail to result in an amicable agreement.

\(2\) Obtain HUD approval of the proposed acquisition price

before executing a firm commitment to purchase the

property. The grantee shall include with its request for

such approval a copy of the appraisal(s) and, when

applicable, a justification for any proposed acquisition

payment that exceeds the fair market value of the property.

HUD will promptly review the proposal and inform the

grantee of its approval or disapproval.

8-37. APPEAL BY LOWER-INCOME PERSON. Under the Community Development

Block Grants for Indian Tribes and Alaskan Native Villages Program,

a person who is dissatisfied with the determination of the grantee

on his or her appeal under Paragraph 1-33, may request the HUD Field

Office to review that determination as described in Paragraph 1-33i.

8-38. COMPLIANCE RESPONSIBILITY OF GRANTEE.

a\. Certification of Compliance. Before HUD approval of a grant,

the grantee must certify to HUD that it will comply with the

Uniform Relocation Assistance and Real Property Acquisition

Policies Act of 1970, as amended, implementing regulations at 49

CFR Part 24, and 24 CFR 571.602. The grantee is responsible for

ensuring compliance with such requirements, notwithstanding any

third party\'s contractual obligation to the grantee to comply

with these provisions.

b\. The cost of required relocation assistance is an eligible

project cost in the same manner and to the same extent as other

project costs. The cost of required relocation assistance may,

however, also be paid from local funds or funds available from

other sources.

c\. The grantee must maintain records in detail sufficient to

demonstrate compliance with all required statutory and

regulatory provisions. These recordkeeping requirements are

described in Chapter 6 of this handbook.

8-39. - 8-40. RESERVED

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Section 4. Home Investment in Affordable Housing (HOME); Home

Investment in Affordable Housing for Indian Tribes

(HOME for Indians)

8-41. APPLICABILITY.

a\. Programs Covered. This section covers the following programs:

\(1\) The Home Investment in Affordable Housing (HOME) Program (24

CFR Part 92).

\(2\) The Home Investment in Affordable Housing for Indian Tribes

Program (24 CFR Part 92, Subpart M).

b\. Rules That Apply. The programs described in Paragraph 8-41a are

subject to the following requirements:

\(1\) The URA and implementing regulations at 49 CFR Part 24. These

requirements are described in Chapters 1 through 6 of this

handbook.

\(2\) Sections 24 CFR 92.353 and 24 CFR 92.634. These additional

policies are described in this Section 4.

8-42. MINIMIZING DISPLACEMENT. Consistent with the other goals and

objectives of the HOME Program, the grantee (participating

jurisdiction/State recipient/CHDO/Indian tribe) shall assure that it has

taken all reasonable steps to minimize displacement (direct or indirect)

that occurs as a result of a project assisted with HOME funds. To the

extent feasible, residential tenants of dwellings to be rehabilitated

shall be provided a reasonable opportunity to lease and occupy a

suitable, decent, safe, sanitary, and affordable dwelling in the

building/complex upon completion of the project.

8-43. DEFINITION OF DISPLACED PERSON. Each \"displaced person\" is

eligible for relocation assistance at URA levels. The term \"displaced

person\" is generally described in Paragraph 1-8. However, 24 CFR

92.353(g) and 24 CFR 92.634(c)(2) provide the following additional

guidance:

a\. The term \"displaced person\" includes, but may not be limited to:

\(1\) A person that moves permanently from the real property after

receiving notice from the property owner that requires such

move, if the move occurs on or after:

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\(a\) The date of the submission of an application to the

grantee (e.g., participating jurisdiction) or HUD, if the

applicant has site control and the project is later

approved; or

\(b\) The date the grantee (e.g., participating jurisdiction)

approves the applicable site, if the applicant does not

have site control at the time of the application.

\(2\) Any person, including a person who moves before the date

described in Paragraph 8-43a(1), if either HUD or the grantee

(e.g., participating jurisdiction) determines that the

displacement directly resulted from acquisition,

rehabilitation, or demolition for the assisted project.

\(3\) A tenant-occupant of a dwelling who moves permanently from the

building/complex after execution of the Agreement\* covering

the rehabilitation or acquisition, if the move occurs before

the tenant is provided written notice offering him or her the

opportunity to lease and occupy a suitable, decent, safe, and

sanitary dwelling in the same building/complex, under

reasonable terms and conditions, upon completion of the

project. Such reasonable terms and conditions shall include a

term of at least 1 year at a monthly rent and estimated

average monthly utility costs that do not exceed the greater

of:

\(a\) The tenant\'s monthly rent before the Agreement and

estimated average monthly utility costs; or

\(b\) The total tenant payment (TIP) (described in Paragraph 7-

20\) if the tenant is low-income, or 30 percent of gross

income if the tenant is not low-income.

\* NOTE: With respect to the terms and conditions of continued

occupancy see Paragraph 1-8b(4) on page 1-12.

\*For private-owner rehabilitation or acquisition, the Agreement is

the agreement between the grantee (e.g., participating

jurisdiction) and the person owning or controlling the property.

For rehabilitation of property owned by a State agency or Indian

tribe, the Agreement is the contract with the rehabilitation

contractor.

3/96 8-18

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\(4\) A tenant-occupant of a dwelling who is required to relocate

temporarily for the project, but does not return to the

building/complex, if either:

\(a\) The tenant is not offered payment for all reasonable

out-of-pocket expenses incurred in connection with the

temporary relocation (including the cost of moving to

and from the temporarily occupied unit and any

increased housing costs), or

\(b\) Other conditions of the temporary relocation are not

reasonable.

\(5\) A tenant-occupant of a dwelling who moves from the

building/complex permanently after he or she has been

required to move to another unit in the building/complex,

if either:

\(a\) The tenant is not offered reimbursement for all

reasonable out-of-pocket expenses incurred in

connection with the move, or

\(b\) Other conditions of the move are not reasonable.

b\. Persons Not Eligible. Notwithstanding the provisions of

Paragraph 8-43a, a person does not qualify as a \"displaced

person\" (and is not entitled to relocation assistance at URA

levels), if:

\(1\) The person is excluded under Paragraph 1-8c; or

\(2\) The person has been evicted for serious or repeated

violation of the terms and conditions of the lease or

occupancy agreement, violation of applicable Federal,

State, local or tribal law (State law may apply on Indian

lands if the Indian tribe is not exercising recognized

powers of self-government), or other good cause, and the

grantee (e.g., participating jurisdiction) determines that

the eviction was not undertaken for the purpose of evading

the obligation to provide relocation assistance. The

effective date of any termination or refusal to renew must

be preceded by at least 30 days advance written notice to

the tenant specifying the grounds for the action; or

\(3\) The person moves into the property after the submission of

the application but, before signing a lease and commencing

occupancy, was provided written notice of the project, its

possible impact on the person (e.g., the person may be

displaced, temporarily relocated or suffer a rent increase)

and the fact that the person would not qualify as a

\"displaced person\" as a result of the project.

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8-19 7/92

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8-44. DEFINITION OF INITIATION OF NEGOTIATIONS. For purposes of
providing

the appropriate notice under Paragraph 2-3b and determining whether

a person displaced from a dwelling qualifies for a replacement

housing payment under Paragraph 3-3 or Paragraph 3-4 (as opposed to

Paragraph 3-5), the term \"initiation of negotiations\" means:

a\. If the displacement results from private-owner rehabilitation,

demolition, or acquisition, the execution of the agreement

between the grantee (e.g., participating jurisdiction) and the

person owning or controlling the real property.

b\. If the displacement results from acquisition by a State agency

(defined in Paragraph 1-23), the action described in Paragraph

1-15a.

c\. If the displacement results from State agency demolition or

rehabilitation and there is no related State agency acquisition,

the notice to the person that he or she will be displaced by the

project (or the person\'s actual move, if there is no such

notice).

8-45. DEFINITION OF PROJECT. The acquisition of real property and the

displacement of any person as a direct result of acquisition,

rehabilitation or demolition for a HOME-assisted project is subject

to the URA. As defined in 24 CFR 92.2, the term \"project\" means a

site or an entire building (including a manufactured housing unit),

or two or more buildings, together with the site or sites on which

the building or buildings is located, that are under common

ownership, management, and financing and are to be assisted with

HOME funds, under a commitment by the owner, as a single undertaking

under the HOME Program. Project includes all the activities

associated with the site and building. If there is more than one

site associated with a project, the sites must be within a

four-block area.

Example 1: Using local funds, the grantee (e.g., participating

jurisdiction) acquires and clears a site for a low-income housing

project. Following the acquisition and clearance, HOME funds are

used to pay part of the cost of the construction of the housing.

Determination: The acquisition of the site, demolition of the

improvements, and construction of the building comprise a single

HOME-assisted \"project.\" Therefore, the acquisition of each parcel

included in whole or in part in the site and any displacement from

the acquired parcels are subject to the URA.

Example 2: The grantee (e.g., participating jurisdiction) acquires

eight single family owner-occupied dwellings on contiguous lots to

provide a site for a housing project. HOME funds are used to

purchase one lot. Non-Federal funds are used to acquire the other

seven lots, clear all eight lots and construct the housing.

Determination: The HOME-assisted \"project\" includes the acquisition

and clearance of the entire site and the

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7/92 8-20

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construction of the new housing. Therefore, each of the eight

acquisitions and each of the eight displacements is part of a single

\"HOME-assisted project\" and is subject to the URA.

Example 3: A contract is executed covering the rehabilitation of a

12-unit multifamily building. HOME funds are used to pay part of

the cost of the rehabilitation of five units to be occupied by

low/moderate-income families. Non-Federal funds are used to finance

the rehabilitation of the other seven units. Determination: The

HOME-assisted \"project\" is the rehabilitation of the building (all

12 units). A person displaced from any one of the 12 units is

protected by the URA.

8-46. OPTIONAL RELOCATION ASSISTANCE. The participating

jurisdiction/Indian tribe may provide relocation payments and other

relocation assistance to families, individuals, businesses,

nonprofit organizations and farms displaced by a HOME-assisted

project where the displacement is not subject to the URA or the

provisions of this Section 4. The jurisdiction/Indian tribe may

also provide relocation assistance to persons covered by the URA or

this Section 4 at levels in excess of those required by Chapters 1

through 6 of this handbook. For any such assistance that is not

required by State, tribal (State law may apply if the Indian tribe

is not exercising recognized powers of self-government) or local

law, the jurisdiction/Indian tribe shall adopt a written policy

available to the public that describes the relocation assistance

that it has elected to furnish and provides for equal relocation

assistance within each class of displaced persons.

8-47. HOME TENANT-BASED RENTAL ASSISTANCE PROGRAM. Participating

jurisdictions may use HOME funds to establish a Tenant-Based

Assistance (TBA) Program. Tenants occupying the site of a

HOME-assisted project may be provided HOME TBA to enable them to

relocate or to remain in the property. TBA contracts are authorized

for a period of up to 2 years. However, assuming funds are

appropriated by Congress, the period of assistance may be extended

upon expiration of the term.

a\. Persons Not Displaced. HOME TBA may be used to make a tenant\'s

continued occupancy of the property affordable and thereby avoid

economic displacement. As indicated in the NOTE on page 1-15,

however, at the time the project is initiated, there must be an

expectation that tenants who are not offered relocation

assistance will be able to continue in occupancy of the property

for an indefinite period of time. If it appears likely that the

person will require rental assistance beyond the 2-year period,

the participating jurisdiction should seek long-term alternative

assistance (e.g., Section 8 rental certificates or vouchers) or

be prepared to continue the TBA at the end of the 2-year period

if the person remains eligible and Congress appropriates the

funds.

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8-21 7/92

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b\. Displaced Persons. If the displaced person is agreeable (or is

already receiving housing assistance), HOME TBA may be used to

meet all or a portion of the rental assistance required to

satisfy his or her relocation entitlement. However, the period

for required relocation payments (e.g., 42 months or 60 months)

is greater than the 2-year maximum contract period authorized

for HOME assistance and, in some cases, the relocation rules may

require a deeper subsidy. Accordingly, when using HOME TBA to

meet relocation obligations, the participating jurisdiction must

make a commitment to use other funds as necessary to cover the

gap between the required relocation payment(s) and the amounts

authorized by the HOME TBA Program.

8-48. APPEAL BY LOWER-INCOME PERSON. Under the HOME Program, a

lower-income person (defined in Paragraph 1-16), who is dissatisfied

with the determination of the participating jurisdiction/Indian

tribe on his or her appeal under Paragraph 1-33, may request the HUD

Field Office administering URA requirements to review that

determination as described in Paragraph 1-33i.

8-49. APPLICATION OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)

REQUIREMENTS.

a\. General Policy. If CDBG funds are used to pay any part of the

cost of acquisition, demolition, construction or rehabilitation

activities for a project, the project is subject to all of the

CDBG requirements, including those described in Paragraph 8-1b.

These include the URA (see Chapters 1 through 6) and section

104(d) of the Housing and Community Development Act of 1974, as

amended (see Chapter 7).

b\. CDBG \"Rehabilitation Activities\" Triggering CDBG Requirements.

CDBG requirements, including the section 104(d) requirements,

are triggered by the use of CDBG funds to pay any of the cost of

\"rehabilitation activities\" as described in 24 CFR 570.202(b).

NOTE: In addition to the actual repair work, alterations and

additions to structures, this term includes rehabilitation

services, such as rehabilitation counseling, energy auditing,

preparation of work specifications, loan processing, and

property inspections.

c\. CDBG Activities Not Triggering Section 104(d) Requirements. The

section 104(d) requirements are not triggered by the use of CDBG

funds solely to pay the costs of general program administration

as described in 24 CFR 570.206 or to pay for relocation

assistance.

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8-50. COMPLIANCE RESPONSIBILITY OF PARTICIPATING JURISDICTION/INDIAN

TRIBE.

a\. Certification. Before receiving HUD financial assistance, the

participating jurisdiction/Indian tribe must certify to HUD that

it will comply with the URA, 49 CFR Part 24, and the applicable

section of the program regulation (24 CFR 92.353 or

24 CFR 92.634). The participating jurisdiction/Indian tribe is

responsible for ensuring compliance with such requirements, as

described in this handbook, notwithstanding any third party\'s

contractual obligation to the participating jurisdiction to

comply with such provisions.

b\. The cost of required relocation assistance is an eligible

project cost in the same manner and to the same extent as the

other project costs. However, such assistance may also be

paid for with funds available from other sources.

c\. The participating jurisdiction/Indian tribe must maintain

records in sufficient detail to demonstrate compliance with

the provisions of this handbook, as described in Chapter 6.

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Section 5. Rental Rehabilitation Program

8-51. APPLICABLE RULES. The Rental Rehabilitation Program (RRP) is

subject to:

a\. The URA and implementing regulations at 49 CFR Part 24. These

are described in Chapters 1 through 6 of this handbook.

b\. Section 24 CFR 511.14. These additional policies are described

in this Section 5.

Flow Chart. A flow chart describing the tenant

assistance/relocation process under the RRP is contained at the end

of this Section as Exhibit 8-5.

8-52. DEFINITION OF COMMITMENT. The term \"commitment\" means:

a\. For a privately owned project, a written, legally binding

agreement between a grantee (State recipient, in the case of a

State distributing rental rehabilitation grant amounts to units

of general local government) and the project owner under which

the grantee (includes State recipient) agrees to provide RRP

funds to the owner for an identifiable rehabilitation project

that can reasonably be expected to start construction within 90

days of the agreement and in which the owner agrees to start

construction within that period; or

b\. For a publicly owned project, the Pre-Rehabilitation Report

submitted under the RRP Cash/Management Information (C/MI)

System which identifies a specific rehabilitation project that

will start rehabilitation within 90 days of receipt of the

Pre-Rehabilitation Report.

8-53. DEFINITION OF DISPLACED PERSON. Each \"displaced person\" is
eligible

for relocation assistance at URA levels. The term \"displaced

person\" is generally described in Paragraph 1-8. However, 24 CFR

511.14 provides the following additional guidance:

a\. The term \"displaced person\" includes (but may not be limited

to):

\(1\) A person that moves permanently from the real property

after receiving a notice requiring such move, if the move

occurs on or after:

\(a\) The date of the submission to HUD of an application

for financial assistance that is later approved for

the project, if the notice is provided by the property

owner.

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\(b\) The date of the commitment to a specific local

project, if the notice is provided by the grantee

(includes State recipient).

\(2\) Any person, including a person who moves before the date(s)

described in Paragraph 8-53a(1), if either HUD or the

grantee determines that the person was displaced as a

direct result of acquisition, rehabilitation, or demolition

for the assisted project.

\(3\) A tenant-occupant of a dwelling unit who moves after the

\"initiation of negotiations\" (defined in Paragraph 8-54),

if the move occurs before the tenant is provided written

notice offering him or her the opportunity to lease and

occupy a suitable, decent, safe, and sanitary dwelling in

the same building/complex, under reasonable terms and

conditions, upon completion of the project. Such

reasonable terms and conditions include a monthly rent and

estimated average monthly utility costs that do not exceed

the greater of: (a) the tenant\'s monthly rent and estimated

average monthly utility costs before the commitment; or (b)

the total tenant payment (described in Paragraph 7-20) if

the tenant is lower income, or 30 percent of gross

household income, if the tenant is not lower income.

\(4\) A tenant-occupant of a dwelling who is required to relocate

temporarily for the project, but does not return to the

building/complex, if either:

\(a\) The tenant is not offered payment for all reasonable

out-of-pocket expenses incurred in connection with the

temporary relocation (including the cost of moving to

and from the temporarily occupied unit and any

increased housing costs); or

\(b\) Other conditions of the temporary relocation are not

reasonable.

\(5\) A tenant-occupant of a dwelling who moves from the

building/complex permanently after he or she has been

required to move to another unit in the building/complex in

order to carry out the project, if either:

\(a\) The tenant is not offered reimbursement for all

reasonable out-of-pocket expenses incurred in

connection with the move; or

\(b\) Other conditions of the move are not reasonable.

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1378 CHG-1

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b\. Persons Not Eligible. Notwithstanding the provisions of

Paragraph 8-53a, a person does not qualify as a \"displaced

person\" (and is not entitled to relocation assistance at URA

levels), if:

\(1\) The person is excluded under Paragraph 1-8c; or

\(2\) The person has been evicted for serious or repeated

violation of the terms and conditions of the lease or

occupancy agreement, violation of applicable Federal, State

or local law, or other good cause, and HUD determines that

the eviction was not undertaken for the purpose of evading

the obligation to provide relocation assistance; or

\(3\) The person moves into the property after the submission of

the application for assistance to HUD and, before

commencing occupancy, is provided written notice of the

project, its possible impact on the person (e.g., the

person may be displaced, temporarily relocated, or suffer a

rent increase), and the fact that the person would not

qualify as a \"displaced person\" as a result of the project.

8-54. DEFINITION OF INITIATION OF NEGOTIATIONS. For purposes of
providing

the appropriate notice under Paragraph 2-3b and determining whether

a person displaced from a dwelling qualifies for a replacement

housing payment under Paragraph 3-3 or Paragraph 3-4 (as opposed to

Paragraph 3-5), the term \"initiation of negotiations\" means:

a\. For a privately owned project, execution of the legally binding

agreement between the grantee (includes State recipient) and the

project owner under which the grantee (includes State recipient)

agrees to provide rental rehabilitation grant amounts for the

project.

b\. For a publicly owned project, the commitment or such earlier

notice as the grantee (includes State recipient) determines to

be appropriate.

8-55. GENERAL POLICIES. The grantee (includes State recipient) shall:

a\. Ensure that the rehabilitation will not cause the displacement

of any very low income family by a family that is not a very low

income family.

b\. Consistent with the other goals and objectives of the program,

minimize displacement. To the extent feasible, residential

occupants shall be provided a

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

8-27 7/92

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

1378 CHG-1

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reasonable opportunity to lease and occupy a suitable, decent,

safe, sanitary and affordable dwelling unit in the project (see

also Paragraph 8-53b).

c\. Administer all phases of the RRP in a manner that does not

result in discrimination because of race, color, religion, sex,

age, handicap, familial status or national origin. There shall

be no discrimination in the selection of units to be

rehabilitated, the provision of notices, counseling, referrals,

other advisory services or relocation payments,

d\. Adopt and make public a written Tenant Assistance Policy (TAP)

that describes the assistance that will be provided to tenants

who reside in the project and which includes a statement of

nondiscrimination policy consistent with Paragraph 8-55c. The

TAP shall comply with the provisions of this handbook. Each

tenant in the project shall be provided a copy of the TAP as

described in Paragraph 8-56.

8-56. TIMELY NOTICES TO TENANTS.

a\. Privately Owned Projects.

\(1\) General Information Notice At Time of Application. As soon

as feasible after the owner\'s submission of the application

to the grantee (includes State recipient), it shall issue a

general information notice to all occupants of the

property, or ensure that the owner issues such a notice.

The notice shall meet the requirements of Paragraph 2-3a

and include a copy of the Tenant Assistance Policy (TAP).

\(2\) Notice at Time of Execution of Agreement. Promptly after

the execution of the agreement with the owner, the grantee

(includes State recipient) shall issue to each person

residing in the property either a:

\(a\) Notice of Nondisplacement. As described in Paragraph

2-3b(1), this notice shall explain the reasonable

terms and conditions under which the tenant may lease

and occupy the real property upon completion of the

rehabilitation, including the rent after

rehabilitation, and, if applicable, the steps to be

taken to obtain Section 8 assistance. NOTE: If this

notice is not provided on a timely basis, the tenant

may move and qualify as a displaced person (see

Paragraph 8-53b); or

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7/92 8-28

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1378 CHG-1

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\(b\) Notice of Eligibility for Relocation Assistance. This

notice shall indicate the tenant\'s eligibility for

relocation assistance and comply with Paragraph

2-3b(2). If applicable, the notice shall indicate the

steps to be taken to obtain Section 8 assistance.

b\. Publicly-Owned Projects. To ensure that tenants do not move

unnecessarily or prematurely, the grantee (includes State

recipient) shall keep tenants informed about the project, as

appropriate, and caution them not to move. As soon as feasible

and not later than the commitment (described in Paragraph

8-52b), the grantee (includes State recipient) shall issue each

tenant either a notice of nondisplacement (see Paragraph

2-3b(1)) or a notice of eligibility for relocation assistance

(see Paragraph 2-3b(2)). The notice shall include a copy of the

TAP.

8-57. APPEAL BY LOWER-INCOME PERSON. Under the RRP a lower income person

(defined in Paragraph 1-16), who is dissatisfied with the

determination of the grantee (includes State recipient) on his or

her appeal under Paragraph 1-33, may request HUD or the State, as

the case may be, to review that determination as described in

Paragraph 1-33i.

8-58. APPLICATION OF CDBG REQUIREMENTS TO RRP. See policy under
Paragraph

8-8.

8-59. COMPLIANCE RESPONSIBILITY OF THE GRANTEE.

a\. Certification. Before receiving HUD financial assistance, the

grantee must certify to HUD that it will comply with the URA, 49

CFR Part 24, and 24 CFR 511.14. The grantee is responsible for

ensuring compliance with such requirements, as described in this

handbook, notwithstanding any third party\'s contractual

obligation to the grantee to comply with such provisions.

b\. The cost of required relocation assistance is an eligible

project cost in the same manner and to the same extent as the

other project costs. However, such assistance may also be paid

for with funds available from other sources.

c\. The grantee must maintain records in sufficient detail to

demonstrate compliance with the provisions of this handbook, as

described in Chapter 6.

8-60. RESERVED

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8-29 7/92

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1378 CHG-1

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7/92 8-30

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EXHIBIT 8-5

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Tenant Assistance/Relocation Process Under the

Rental Rehabilitation Program (RRP)\*

\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*

\* \*

\* \*

\* \*

\* \*

\* \*

\* \*

\* \*

\* \*

\* \*

\* \*

\* \*

\* GRAPHICS MATERIAL IN ORIGINAL DOCUMENT OMITTED \*

\* \*

\* \*

\* \*

\* \*

\* \*

\* \*

\* \*

\* \*

\* \*

\* \*

\* \*

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\* References are to HUD

Handbook 1378

9-90

1378 CHG-3

Section 6. Housing Opportunities for Persons with AIDS

8-61. APPLICABLE RULES. The Housing Opportunities for Persons

with AIDS Program (HOPWA) is subject to:

a\. The URA and implementing regulations at 49 CFR Part 24.

These requirements are described in Chapters 1 through

6 of this handbook.

b\. Section 24 CFR 574.630. These additional policies are

described in this Section 6.

8-62. PROGRAM DESCRIPTION.

a\. Purpose and Grant Types. The purpose of HOPWA is to

provide States and localities with resources and

incentives to devise long-term comprehensive strategies

for meeting the housing needs of low-income individuals

with AIDS or related diseases and their families.

Grantees are encouraged to form active partnerships with

nonprofit organizations to provide housing assistance and

supportive services for eligible persons. HOPWA

authorizes two types of grants for housing assistance and

supportive services:

\(1\) Entitlement grants awarded by formula to eligible

States and qualifying cities for eligible

metropolitan statistical areas with the largest

number of cases of AIDS; and

\(2\) Competitively awarded grants to State and local

governments and nonprofit organizations.

b\. Eligible Activities. Activities funded under HOPWA

include: housing information services (counseling,

information, housing referrals); acquisition,

rehabilitation, conversion, lease and repair of

facilities to provide housing and services; new

construction for single room occupancy dwellings and

community residences; project- and tenant-based rental

assistance; short-term rent, mortgage and utility

payments to prevent homelessness; supportive services

(health, mental health, assessment, permanent housing

placement, drug and alcohol abuse treatment and

counseling, day care, nutritional services, intensive

care and assistance in receiving local, State and Federal

government benefits and services; operating costs for

housing; technical assistance in establishing and

operating a community residence; administrative expenses;

and other activities proposed by the applicant and

approved by HUD.

8-31 4/94

1378 CHG-3

8-63. MINIMIZING DISPLACEMENT. Consistent with the other goals

and objectives of HOPWA, the grantee shall assure that it

has taken all reasonable steps to minimize displacement

as a result of a project assisted under the program.

8-64. DEFINITION OF DISPLACED PERSON. Each \"displaced person\"

is eligible for relocation assistance at URA levels. The

term \"displaced person\" is generally described in

Paragraph 1-8. However, 24 CFR 574.630(f)(1) provides

the following additional guidance.

a\. The term \"displaced person\" includes, but may not be

limited to:

\(1\) A person that moves permanently from the real

property after receiving a notice from the grantee

that requires such move, if the move occurs on or

after the date that the grantee submits to HUD an

application for assistance that is later approved

and funded.

\(2\) Any person, including a person who moves before the

submission of the application to HUD, that HUD, the

grantee determines was displaced as a direct result

of acquisition, rehabilitation, or demolition for

the project.

\(3\) Any tenant-occupant of a dwelling unit who moves

permanently from the building/complex after the

\"initiation of negotiations\" (defined in Paragraph

8-65), if the move occurs before the tenant is

provided written notice offering him or her the

opportunity to lease and occupy a suitable, decent,

safe, and sanitary dwelling in the same

building/complex, under reasonable terms and

conditions, upon completion of the project. Such

reasonable terms and conditions shall include a

monthly rent and estimated average monthly utility

costs that do not exceed the greater of:

\(a\) The tenant\'s monthly rent before the

\"initiation of negotiations\" and estimated

average monthly utility costs; or

\(b\) 30 percent of the household\'s average monthly

gross income.

\(4\) A tenant-occupant of a dwelling unit who is

required to relocate temporarily but does not

return to the building/complex, if either:

\(a\) The tenant is not offered payment for all

reasonable out-of-pocket expenses incurred in

connection with the temporary relocation

4/94 8-32

1378 CHG-3

(including the cost of moving to and from the

temporarily occupied unit and any increased

housing costs), or

\(b\) Other conditions of the temporary relocation

are not reasonable.

\(5\) A tenant-occupant of a dwelling who moves from the

building/complex permanently after he or she has

been required to move to another unit in the

building/complex, in order to carry out the

project, if either:

\(a\) The tenant is not offered reimbursement for

all reasonable out-of-pocket expenses

incurred in connection with the move, or

\(b\) Other conditions of the move are not

reasonable.

b\. Persons Not Eligible. Notwithstanding the provisions of

Paragraph 8-64a, a person does not qualify as a

\"displaced person\" (and is not entitled to relocation

assistance at URA levels), if:

\(1\) The person is excluded under Paragraph 1-8c; or

\(2\) The person has been evicted for serious or repeated

violation of the terms and conditions of the lease

or occupancy agreement, violation of applicable

Federal, State or local law, or other good cause,

and HUD determines that the eviction was not

undertaken for the purpose of evading the

obligation to provide relocation assistance; or

\(3\) The person moved into the property after the

submission of the application and, before signing a

lease and commencing occupancy, was provided

written notice of the project, its possible impact

on the person (e.g., the person may be displaced,

temporarily relocated or suffer a rent increase),

and the fact that the person would not qualify as a

\"displaced person\" as a result of the project.

8-65. DEFINITION OF INITIATION OF NEGOTIATIONS. For purposes

of providing the appropriate notice under Paragraph 2-3b

and determining whether a person displaced from a

dwelling qualifies for a replacement housing payment

under Paragraph 3-3 or Paragraph 3-4, the term

\"initiation of negotiations\" means the execution of the

agreement between the grantee and the project sponsor.

(Displaced households who are not eligible for a

replacement housing payment under Paragraph 3-3 or 3-4

must be provided replacement housing assistance under

Paragraph 3-5.)

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1378 CHG-3

8-66. APPEAL BY LOWER-INCOME PERSON. Under the HOPWA

program, a lower income person (defined in Paragraph 1-16),

who is dissatisfied with the determination of the

grantee on his or her appeal under Paragraph 1-33, may

request a review of that determination by HUD, as

described in Paragraph 1-33i.

8-67. COMPLIANCE RESPONSIBILITY OF GRANTEE.

a\. Certification. As a condition for receiving HUD

financial assistance, the grantee must certify to HUD

that it will comply with the URA, 49 CFR Part 24, and 24

CFR 574.630. The grantee is responsible for ensuring

compliance with such requirements, notwithstanding any

third party\'s contractual obligation to the grantee to

comply with these provisions.

b\. The cost of required relocation assistance is an eligible

project cost in the same manner and to the same extent as

other project costs. The cost of required relocation

assistance may, however, also be paid from local funds or

funds available from other sources.

c\. The grantee must maintain records in sufficient detail to

demonstrate compliance with the provisions of this

handbook. The basic recordkeeping requirements are

described in Chapter 6.

8-68. - 8-70. RESERVED

4/94 8-34

1378 CHG-3

Section 7. Shelter Plus Care Program; Supportive Housing

Program; Emergency Shelter Grants Program;

Transitional Housing Program; Permanent Housing

Program for Handicapped Homeless Persons;

Supplemental Assistance for Facilities to Assist

the Homeless (SAFAH)

8-71. APPLICABILITY.

a\. Programs Covered. This section provides guidance with

respect to the following programs:

\(1\) Shelter Plus Care Program (S+C) (24 CFR Part 582).

\(2\) Supportive Housing Program (SHP) (24 CFR Part

583).

\(3\) Emergency Shelter Grants (ESG) (24 CFR Part 576).

\(4\) Supportive Housing Demonstration Program (SHDP):

\(a\) Transitional Housing Program (THP) (24 CFR

Part 577).

\(b\) Permanent Housing Program for Handicapped

Homeless Persons (PHHH) (24 CFR Part 578).

NOTE: A grant originally awarded under SHDP

will continue to be subject to the

applicable regulations through the full

term of the grant. Projects originally

funded under SHDP that are renewed will

be subject to the SHP regulations.

\(5\) Supplemental Assistance for Facilities to Assist

the Homeless (SAFAH) (24 CFR Part 579). Projects

originally funded under SAFAH that are renewed will

be subject to SHP regulations.

NOTE: Guidance on the Section 8 Moderate

Rehabilitation Program for SRO Dwellings for

Homeless Individuals is contained in Section

13 of this Chapter.

b\. Rules That Apply. The programs described in Paragraph 8-71a are

subject to the following requirements:

8-35 4/94

1378 CHG-3

\(1\) The URA and implementing regulations at 49 CFR Part

24\. These requirements are described in Chapters 1

through 6 of this handbook.

\(2\) Section 24 CFR 582.335, 583.310, 576.80, 577.315,

578.315, or 579.315, as appropriate. These

additional policies are described in this Section

7\.

8-72. PROGRAM DESCRIPTIONS.

a\. Shelter Plus Care Program. The S + C Program provides

rental housing assistance that is linked with supportive

services (funded from other sources) to homeless persons

with disabilities, primarily persons who are seriously

mentally ill, have chronic problems with alcohol or

drugs, or both, or have acquired immunodeficiency

syndrome (AIDS) or related diseases. Eligible applicants

are States, units of general government, public housing

agencies and Indian tribes. Recipients of S + C funds

must match the rental housing assistance with supportive

services for the residents that are at least equal in

value to the aggregate amount of rental assistance and

are appropriate to the needs of homeless disabled

individuals and their families. The S+C Program provides

rental assistance through four components:

\(1\) Tenant-Based Rental Assistance Program (S+C/TRA).

The S+C/TRA provides grants for rental assistance

over a 5-year period. Participants reside in

housing of their choice, except that, where

necessary to facilitate the coordination of

supportive services, grantees may require

participants to live in a specific area for their

entire period of participation or in a specific

structure for the first year and in a specific area

for the remainder of their period of participation.

\(2\) Sponsor-Based Rental Assistance Program (S+C/SRA).

The S+C/SRA provides grants to fund rental

assistance through contracts with sponsor

organizations over a 5-year period. A sponsor may

be a private, nonprofit organization or a community

mental health agency established as a public

nonprofit organization. Participants reside in

housing owned or leased by the sponsor. Applicants

must identify in their applications the nonprofit

sponsor(s) and the housing site(s) to be provided.

\(3\) Project-Based Rental Assistance Program (S+C/PRA).

The S+C/PRA provides grants to fund rental

assistance through contracts between the grantee

and owners of existing structures, where the owners

agree to lease the subsidized units to, or on

behalf of participants. Rental subsidies are

provided for a period of 5 or 10 years. To be

eligible for 10 years of rental

4/94 8-36

1378 CHG-3

subsidies, the owner must complete, at his/her

expense, at least \$3,000 of rehabilitation for

each unit (including the unit\'s prorated share of

work to be accomplished on common areas or

systems), to make the structure decent, safe and

sanitary. The rehabilitation must be completed

within 12 months of the date of the grant

agreement.

\(4\) Section 8 Moderate Rehabilitation Program for

Single Room Occupancy (SRO) Dwellings for Homeless

Individuals (S+C/SRO). The S+C/SRO provides

grants for rental assistance in connection with

the moderate rehabilitation of single room

occupancy housing units. The rental assistance

covers the operating expenses of the rehabilitated

SRO units, including debt service to pay back the

rehabilitation financing. The monthly rental

assistance per unit must not exceed the fair

market rent (FMR) established by HUD for a

rehabilitated SRO unit. Assistance is available

for 10 years. No project may receive assistance

for more than 100 units.

NOTE: The S+C/SRO Program differs from the

Section 8 Moderate Rehabilitation SRO

Program for Homeless Individuals

described in Section 13 of this chapter.

b\. Supportive Housing Program.

\(1\) Components. SHP promotes the development of

supportive housing and supportive services,

including innovative approaches to assist homeless

persons in the transition from homelessness and to

enable them to live as independently as possible.

SHP funds are used to provide:

\(a\) Transitional housing designed to enable

homeless persons and families to move to

permanent housing within a 24-month period,

which may include up to 6 months of follow-up

services after residents move to permanent

housing;

\(b\) Permanent housing provided in conjunction

with appropriate supportive services designed

to maximize the ability of persons with

disabilities to live as independently as

possible within permanent housing;

\(c\) Innovative projects that meet the immediate

and long-term needs of homeless individuals

and families; or

8-36a 4/94

1378 CHG-3

\(d\) Supportive services for homeless individuals

not provided in conjunction with supportive

housing.

\(2\) Eligible applicants are States, local governments,

other governmental entities, Indian tribes, private

nonprofit organizations and community mental health

associations that are public nonprofit

organizations.

\(3\) Eligible activities include acquisition of

structures for use as supportive housing or in

providing supportive services; rehabilitation of

structures for use as supportive housing or in

providing supportive services; new construction of

buildings for use as supportive housing; leasing of

structures for use as supportive housing or in

providing supportive services; operating costs of

supportive housing; and the cost of supportive

services provided for supportive housing or to

homeless persons who do not reside in supportive

housing.

c\. Emergency Shelter Grants Program. ESG is designed to

help improve the quality of existing emergency shelters

for the homeless, to provide additional shelters, to meet

the costs of operating shelters and to provide essential

social services to homeless individuals, and to help

prevent homelessness. Under ESG, HUD provides grants to

States, metropolitan cities, urban counties and

territories for renovation, major rehabilitation, or

conversion of buildings for use as emergency shelters for

the homeless and for essential services for the homeless.

d\. Supportive Housing Demonstration Program. SHDP provides

supportive housing for deinstitutionalized homeless

individuals, homeless families with children, and

homeless individuals with mental disabilities and other

handicapped homeless persons. SHDP consists of two

components:

\(1\) Transitional Housing Program. THP funds innovative

approaches to providing short-term (24 months or

less) housing and supportive services to homeless

persons who are capable of making the transition to

independent living.

\(2\) Permanent Housing for Handicapped Homeless Persons.

PHHH provides permanent housing assistance in

developing community-based, long-term housing and

supportive services for projects housing not more

than eight handicapped individuals and/or families

(16 in a multifamily structure if not more than 20

percent of the units are designed for such

persons).

4/94 8-36b

1378 CHG-3

Assistance is provided to States, metropolitan cities,

urban counties, governmental entities, tribes, and

private nonprofit organizations for acquisition, moderate

rehabilitation, substantial rehabilitation, new

construction under limited circumstances, supportive

services, employment assistance and technical assistance.

e\. Supplemental Assistance for Facilities to Assist the

Homeless. SAFAH provides comprehensive assistance for

meeting the immediate and long-term needs of homeless

individuals and families by funding the purchase, lease,

renovation, operation, or conversion of facilities to

assist the homeless and by providing supportive services

for the homeless. SAFAH also provides assistance to

cover the costs in excess of assistance provided under

ESG and SHDP to meet the needs of homeless families with

children, elderly homeless individuals or handicapped

homeless persons, to facilitate the transfer and use of

public buildings to assist homeless individuals and

families, or to provide supportive services for the

homeless. Eligible applicants include States,

metropolitan cities, urban counties, governmental

entities, tribes, and private nonprofit organizations.

8-73. MINIMIZING DISPLACEMENT. Consistent with the other

goals and objectives of the

programs listed in paragraph 8-71a, grantees must assure that

they have taken all reasonable steps to minimize displacement

as a result of projects assisted under the programs.

8-74. DEFINITION OF DISPLACED PERSON. Each \"displaced

person\" is eligible for relocation assistance at URA

levels. The term \"displaced person\" is generally

described in Paragraph 1-8. However, 24 CFR 582.335,

583.310, 576.80, 577.315, 578.315, and 579.319) provide

the following additional guidance:

a\. The term \"displaced person\" includes, but may not be

limited to:

\(1\) A person that moves permanently from the real

property after receiving a notice from the grantee

that requires such move, if the move occurs on or

after:

\(a\) For SHP and S + C, (i) the date that the

grantee submits to HUD an application for

assistance that is later approved and funded,

if the grantee has site control, (ii) or the

date that the grantee obtains control

8-36c 4/94

1378 CHG-3

of the project site, if such control is

obtained after the submission of the

application to HUD.

\(b\) For ESG, THP, PHHH and SAFAH, the date that

the grantee submits to HUD an application for

assistance that is later approved and funded;

or

\(2\) Any person, including a person who moves before the

submission of the application to HUD, that HUD, the

grantee determines was displaced as a direct result

of acquisition, rehabilitation, or demolition for

the project.

\(3\) Any tenant-occupant of a dwelling unit who moves

permanently from the building/complex after the

\"initiation of negotiations\" (defined in Paragraph

8-75), if the move occurs before the tenant is

provided written notice offering him or her the

opportunity to lease and occupy a suitable, decent,

safe, and sanitary dwelling in the same

building/complex, under reasonable terms and

conditions, upon completion of the project. Such

reasonable terms and conditions shall include a

monthly rent and estimated average monthly utility

costs that do not exceed the greater of:

\(a\) The tenant\'s monthly rent before the

\"initiation of negotiations\" and estimated

average monthly utility costs; or

\(b\) 30 percent of the household\'s average monthly

gross income.

\(4\) A tenant-occupant of a dwelling unit who is

required to relocate temporarily but does not

return to the building/complex, if either:

\(a\) The tenant is not offered payment for all

reasonable out-of-pocket expenses incurred in

connection with the temporary relocation

(including the cost of moving to and from the

temporarily occupied unit and any increased

housing costs), or

\(b\) Other conditions of the temporary relocation

are not reasonable.

\(5\) A tenant-occupant of a dwelling who moves from the

building/complex permanently after he or she has

been required to move to another unit in the

building/complex, in order to carry out the

project, if either:

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\(a\) The tenant is not offered reimbursement for

all reasonable out-of-pocket expenses

incurred in connection with the move, or

\(b\) Other conditions of the move are not

reasonable.

b\. Persons Not Eligible. Notwithstanding the provisions of

Paragraph 8-74a, a person does not qualify as a

\"displaced person\" (and is not entitled to relocation

assistance at URA levels), if:

\(1\) The person is excluded under Paragraph 1-8c; or

\(2\) The person has been evicted for serious or repeated

violation of the terms and conditions of the lease

or occupancy agreement, violation of applicable

Federal, State or local law, or other good cause,

and HUD determines that the eviction was not

undertaken for the purpose of evading the

obligation to provide relocation assistance; or

\(3\) The person moves into the property after the

submission of the application and, before signing a

lease and commencing occupancy, was provided

written notice of the project, its possible impact

on the person (e.g., the person may be displaced,

temporarily relocated or suffer a rent increase),

and the fact that the person would not qualify as a

\"displaced person\" as a result of the project.

8-75. DEFINITION OF INITIATION OF NEGOTIATIONS. For purposes

of providing the appropriate notice under Paragraph 2-3b

and determining whether a person displaced from a

dwelling qualifies for a replacement housing payment

under Paragraph 3-3 or Paragraph 3-4, the term

\"initiation of negotiations\" means:

a\. For displacement that results directly from

rehabilitation, demolition, or acquisition undertaken by

a private entity (includes developers, private nonprofit

organizations, and community mental health associations):

\(1\) Under SHP and S + C, the execution of the

agreement between the grantee and HUD, unless the

project site is selected later. In the latter

case, the initiation of negotiations is HUD

approval of the site selected.

\(2\) Under ESG, the execution of the grant or loan

agreement between the grantee and the person owning

or controlling the real property.

\(3\) Under THP, PHHH and SAFAH, the execution of the

agreement between the grantee and HUD.

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b\. For displacement that results from acquisition by a

State agency (defined in Paragraph 1-23, the action

described in Paragraph 1-15a.

c\. For displacement that results from State agency

demolition or rehabilitation and there is no related

State agency acquisition, the notice to the person that

he or she will be displaced by the project (or the

person\'s actual move, if there is no such notice).

NOTE: Displaced households who are not eligible for

a replacement housing payment under paragraph

3-3 or 3-4 must be provided replacement

housing assistance under Paragraph 3-5).

8-76. APPEAL BY LOWER-INCOME PERSON. Under the programs listed

in Paragraph 8-71a, a lower-income person (defined in

Paragraph 1-16), who is dissatisfied with the

determination of the grantee on his or her appeal under

Paragraph 1-33, may request a review of that

determination by HUD, as described in Paragraph 1-33i.

8-77. APPLICATION OF RESIDENTIAL ANTIDISPLACEMENT AND

RELOCATION ASSISTANCE PLAN REQUIREMENTS. If CDBG or HOME

funds are used in the project, the project is subject to

the Antidisplacement and Relocation Assistance Plan

requirements in 24 CFR Part 43.

8-78. COMPLIANCE RESPONSIBILITY OF GRANTEE.

a\. Certification. As a condition for receiving HUD

financial assistance, the grantee must certify to HUD

that it will comply with the URA, 49 CFR Part 24, and the

applicable section of the program regulation (e.g., 24

CFR 583.310, 576.80, 577.315, 578.315, 579.315 or

582.335). The grantee is responsible for ensuring

compliance with such requirements, notwithstanding any

third party\'s contractual obligation to the grantee to

comply with these provisions.

b\. The cost of required relocation assistance is an eligible

project cost in the same manner and to the same extent as

other project costs. The cost of required relocation

assistance may, however, also be paid from local funds or

funds available from other sources.

c\. The grantee must maintain records in sufficient detail to

demonstrate compliance with the provisions of this

handbook. The basic recordkeeping requirements are

described in Chapter 6.

8-79. - 8-80. RESERVED

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Section 8. Public Housing Development and

Major Reconstruction of Obsolete Projects

8-81. APPLICABILITY.

a\. Programs Covered. This section covers projects under 24 CFR Part

941 which governs the following programs:

\(1\) The Public Housing Development Program, including:

\(a\) The Conventional Method \-- New

Construction/Rehabilitation.

\(b\) Turnkey Method \-- New Construction/Rehabilitation.

\(c\) Acquisition of Existing Housing (Without Rehabilitation).

\(2\) Major Reconstruction of Obsolete Projects Program (MROP).

b\. Rules That Apply. The programs described in Paragraph 8-81a are

subject to the following requirements:

\(1\) The URA and implementing regulations at 49 CFR Part 24. These

requirements are described in Chapters 1 through 6 of this

handbook.

\(2\) Section 24 CFR 941.207. These additional policies are

described in this Section 8.\*

8-82. MINIMIZING DISPLACEMENT. Consistent with the other goals and

objectives of the programs listed in paragraph 8-81a, the PHA shall

assure that it has taken all reasonable steps to minimize displacement

as a result of a project assisted under the program.

8-83. NOTICES TO OCCUPANTS OF PROPERTY. The significance of issuing

timely notices cannot be overemphasized.

a\. Basic Notice(s). Each occupant is entitled to timely notice(s)

explaining the impact of the project on him or her. A person who

will be displaced by a project must be informed of his/her

eligibility for relocation assistance and the nature of that

assistance; a tenant that will not be displaced must be informed of

the reasonable terms and conditions under which he or she may

occupy the property upon completion of the project. While it is

sometimes possible to convey all this information in one timely

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notice, most project circumstances dictate the issuance of two

notices to each tenant.

\(1\) A general information notice (see Paragraph 2-3a) to be issued

as soon as feasible. Generally, this is the date described in

Paragraph 8-85a(1). (For MROP, send notice at the time of

application approval.) Failure to provide this notice in a

timely manner may trigger avoidable claims for relocation

payments by persons who move from the site before the PHA

commits itself to the project.

\(2\) Either a notice of eligibility for relocation assistance or a

notice of nondisplacement (see Paragraph 2-3b) to be issued

not later than the \"initiation of negotiations\" (defined in

Paragraph 8-86). If the occupant moves permanently from the

property after the \"initiation of negotiations\" (and he/she

has not been provided a notice of nondisplacement), the person

will automatically qualify as a \"displaced person.\" In other

words, even if there was no intention to displace the person,

it is assumed that the person\'s move was an involuntary move

caused by the project because he/she was not given timely

information essential to making an informed judgment.

b\. Notice of Comparable Replacement Dwelling. As described in

Paragraph 2-5d, a person to be displaced must be given timely

notice of the location and cost of a \"comparable replacement

dwelling\" that sets the upper limit of the replacement housing

payment for which the person can qualify. If an otherwise eligible

person moves before this notice the only limit on the payment is

the cost of the housing to which he or she moves. That can mean

wasted project dollars. Usually, this notification is included in

the notice of eligibility for relocation assistance.

c\. Ninety-Day Notice. As described in Paragraph 2-3c, no lawful

occupant to be displaced may be required to move without at least

90 days advance written notice. Such notice may not be issued

before the notice of eligibility for relocation assistance and, if

applicable, the notice of a comparable replacement dwelling. Of

course, if both parties can agree upon a vacate date, this notice

need not be issued.

d\. Issuance of Notices Under the Turnkey Program. When carrying

out a Turnkey Program, the PHA should work very closely with the

developer to ensure that the relocation requirements of this

handbook are met. Because of the financial exposure of the PHA

(i.e., the PHA executes the compliance certification), the PHA

itself should issue the required notices and provide or contract

for the delivery of relocation services. An option agreement that

provides for delivery of a vacant project site to the developer

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does not relieve the PHA of responsibility for any displacement

from the site that may have taken place in anticipation of its

possible approval for a project.

8-84. TEMPORARY RELOCATION. See the policies in Paragraph 2-4.

8-85. DEFINITION OF DISPLACED PERSON. Each \"displaced person\" is

eligible for assistance at URA levels. The term \"displaced person\" is

generally described in Paragraph 1-8. However, 24 CFR 941.207 provides

the following additional guidance: \*

a\. The term \"displaced person\" includes (but may not be limited to):

\(1\) A person that moves permanently from the real property after

receiving a notice from the PHA or property owner that

requires such move, if the move occurs on or after:

\(a\) For conventional or acquisition projects, the date that

HUD approves the PHA proposal incorporating the site;

\(b\) For scattered sites, the date HUD approves the applicable

site;

\(c\) For turnkey projects, the date the PHA proposal is

submitted to HUD; or

\(d\) For major reconstruction of obsolete public housing

projects, the date the PHA issues the invitation for bids

for the project.

\(2\) Any person, including a person who moves before the date

described in Paragraph 8-85a(1), that HUD or the PHA

determines was displaced as a direct result of acquisition,

rehabilitation, or demolition for the assisted project.

\(3\) A tenant-occupant of a dwelling who moves permanently from the

building complex after the \"initiation of negotiations\"

(defined in Paragraph 8-86) if the move occurs before the

tenant is provided written notice offering him or her the

opportunity to lease and occupy a suitable, decent, safe and

sanitary dwelling in the same building/complex, under

reasonable terms and conditions, upon completion of the

project. Such reasonable terms and conditions shall include

a monthly rent and estimated average monthly utility costs

that do not exceed the \"total tenant payment\" as determined

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under 24 CFR 913.107. (The total tenant payment is also

described in Paragraph 7-20.)

\(4\) A tenant-occupant of a dwelling who is required to relocate

temporarily and does not return to the building/complex, if

either:

\(a\) The tenant is not offered payment for all reasonable out-

of-pocket expenses incurred in connection with the

temporary relocation (including the cost of moving to and

from the temporarily occupied unit and any increased

housing costs), or

\(b\) Other conditions of the temporary relocation are not

reasonable.

\(5\) A tenant-occupant of a dwelling who moves from the

building/complex permanently after he or she has been required

to move to another unit in the building/complex, if either:

\(a\) The tenant is not offered reimbursement for all

reasonable out-of-pocket expenses incurred in connection

with the move, or

\(b\) Other conditions of the move are not reasonable.

b\. Persons Not Eligible. Notwithstanding the provisions of Paragraph

8-85a, a person does not qualify as a \"displaced person\" (and is

not entitled to relocation assistance at URA levels), if:

\(1\) The person is excluded under Paragraph 1-8c; or

\(2\) The person has been evicted for serious or repeated violation

of the terms and conditions of the lease or occupancy

agreement, violation of applicable Federal, State or local

law, or other good cause, and the PHA determines that the

eviction was not undertaken for the purpose of evading the

obligation to provide relocation assistance; or

\(3\) The person moves into the property after the dates described

in Paragraph 8-85a(1) and, before signing a lease and

commencing occupancy, was provided written notice of the

project, its possible impact on the person (e.g., the person

may be displaced, temporarily relocated or suffer a rent

increase) and the fact that the person would not qualify as a

\"displaced person\" as a result of the project.

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8-86. DEFINITION OF INITIATION OF NEGOTIATIONS. For purposes of
providing

the appropriate notice under Paragraph 2-3b and determining whether a

person displaced from a dwelling qualifies for a replacement housing

payment under Paragraph 3-3 or Paragraph 3-4 (rather than Paragraph 3-

5), the term \"initiation of negotiations\" means:

a\. For conventional or acquisition projects:

\(1\) Where the PHA purchases the real property through an arm\'s-

length transaction as described in Paragraph 5-1a(1), the

seller\'s acceptance of the PHA\'s written offer to purchase the

property (i.e., the seller\'s execution of form HUD-51971-II),

provided the PHA later purchases the property, or such other

date as may be determined by the PHA with the approval of the

HUD Field Office; or

\(2\) Where the PHA\'s purchase of the real property does not qualify

as an arm\'s-length transaction, the delivery of the initial

written purchase offer from the PHA to the owner of the

property (i.e., the PHA\'s execution of form HUD-51971-II).

However, if the PHA issues a notice of intent to acquire the

property, and a person moves after that notice, but before the

initial written purchase offer, the initiation of negotiations

is the actual move of the person from the property.

b\. For turnkey projects, the date of HUD Field Office\* approval of the

PHA\'s proposal incorporating the developer\'s proposal, provided the

contract of sale is later executed.

c\. For major reconstruction of obsolete projects, the date the PHA

issues the invitation for bids for the project.

8-87. ACQUISITION OF REAL PROPERTY.

a\. General. The acquisition of real property for a project assisted

under 24 CFR Part 941 is subject to the requirements of Chapter 5

of this Handbook.

b\. Scattered-Site Public Housing Acquisition Program. The

requirements of Paragraphs 5-2 through 5-8 do not apply to a PHA

acquisition that is clearly a voluntary, arm\'s length transaction

(see Paragraph 5-1a(1)), if the following conditions are met:

\(1\) Disclosure. The PHA must:

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\(a\) Determine and inform the owner in writing that it will

not use its power of eminent domain to acquire the

property if negotiations fail to result in an amicable

agreement; and

\(b\) Inform the owner of HUD\'s estimate of the fair market

value of the property. The notice must be in writing

(i.e., included in form HUD-51971-II). If the estimated

fair market value is more than the offer price in form

HUD-51971-I, the seller must be provided the opportunity

to withdraw his/her offer after the appropriate

disclosures have been made. (NOTE: The PHA is permitted

to negotiate a sale price below fair market value.)

\(2\) No specific site or property shall be designated for

acquisition, although the PHA may limit its search for

alternative sites to a general geographic area. Where the PHA

wishes to purchase more than one side within a geographic

area, all owners are to be treated similarly. The property to

be acquired shall not be 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.

c\. Turnkey Acquisition By Private Developer. A private developer

(buyer) negotiating an arm\'s-length purchase (i.e., he/she does not

have the power of eminent domain) can avoid the URA acquisition

requirements in Paragraphs 5-2 through 5-8 IF before the seller

enters into the final contract of sale, the following two

disclosures are made to the seller:

\(1\) The buyer does not have the power of eminent domain and,

therefore, will not acquire the property if negotiations fail

to result in an amicable agreement; and

\(2\) The buyer\'s estimate of the fair market value of the property.

An appraisal is not required; however, the PHA\'s files must

include an explanation, with reasonable evidence of the basis

of the sale. If the seller executes an option or contract of

sale before he/she is informed of the property\'s fair market

value and the fair market value is more than the

option/contract price, the seller must be provided the

opportunity to withdraw from the option or contract after the

appropriate disclosures have been made.

d\. Related Relocation Issues.

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\(1\) A tenant-occupant displaced from the property as a result of

the Scattered-Site Acquisition Program or Turnkey Acquisition

Program is eligible for URA relocation assistance and must be

provided timely notices as described in Paragraph 2-3 of HUD

Handbook 1378.

\(2\) An owner-occupant (seller) of the property displaced by the

Scattered-Site Acquisition Program or Turnkey Program is not

eligible for URA relocation assistance, if the applicable

disclosures (Paragraph 8-87b or 8-87c) are made. To avoid any

dispute, the seller should be provided early written notice

that he/she will not qualify for URA relocation assistance.

8-88. APPEAL BY LOWER-INCOME PERSON. Under the programs listed in

Paragraph 8-81a,\* a lower-income person (defined In Paragraph 1-16),
who

is dissatisfied with the determination of the PHA on his or her appeal

under Paragraph 1-33, may request HUD to review that determination as

described in Paragraph 1-33i.

8-89. COMPLIANCE RESPONSIBILITY OF PHA.

a\. Certification. Before receiving HUD financial assistance, the PHA

must certify to HUD that it will comply with the URA, 49 CFR Part

24, and 24 CFR 941.207. (The assurance provided in the PHA

Resolution in Support of Public Housing Project, Form HUD-52471,

constitutes the PHA\'s certification of compliance with the URA.)

The PHA is responsible for ensuring compliance with such

requirements, as described in this handbook, notwithstanding any

third party\'s contractual obligation to the PHA to comply with such

provisions. For this reason, when administering a Turnkey Project,

the PHA should coordinate the acquisition and relocation very

closely and \'should, at a minimum, issue the required notices

itself. While it may delegate this task to the developer under the

contract, it remains responsible for compliance.

b\. The cost of required relocation assistance is an eligible project

cost in the same manner and to the same extent as other project

costs. The cost of required relocation assistance may, however,

also be paid from local funds or funds available from other

sources.

c\. The PHA must maintain records in sufficient detail to demonstrate

compliance with the provisions of this handbook, as described in

Chapter 6.

8-90. RESERVED

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1378 CHG-3

Section 9. Public Housing Modernization (CIAP and CGP)

8-91. APPLICABILITY.

a\. Programs Covered. This section covers the following

programs:

\(1\) The Public Housing Comprehensive Improvement

Assistance Program (CIAP) (24 CFR Part 968, Subpart

B); and

\(2\) The Public Housing Comprehensive Grant Program

(CGP) (24 CFR 968, Subpart C). Beginning in FY

1992, for PHAs with 500 or more units. Beginning

in FY 1993, for PHAs with 250 or more units.

b\. Rules That Apply. The programs described in Paragraph 8-91a

are subject to the following requirements:

\(1\) The URA and implementing regulations at 49 CFR Part

24\. These requirements are described in Chapters 1

through 6 of this handbook.

\(2\) Section 24 CFR 968.108. These additional policies

are described in this Section 9.

c\. Flow Chart. A flow chart describing the tenant

assistance/relocation process under the CIAP and CGP

Programs is contained at the end of this Section as

Exhibit 8-9-1.

8-92. BACKGROUND. Section 14 of the U.S. Housing Act of 1937

(42 U.S.C. 14371) established the Comprehensive

Improvement Assistance Program (CIAP) to provide for the

modernization of public housing. CIAP was designed to

improve the physical condition of existing public housing

projects and to upgrade their management and operation to

ensure that they would continue to be available to serve

low-income families. Section 119 of the Housing and

Community Development Act of 1987 (Pub. L. 100-242),

enacted on February 5, 1988, significantly revised public

housing modernization. Among other things, it

established a new Comprehensive Grant Program (CGP) to

govern the modernization needs of PHAs that own or

operate 500 or more public housing units and limited

CIA.P to PHAs that own or operate fewer than 500 public

housing units. (Beginning with funding for FY 1993, this

threshold is reduced from 500 to 250 units.) Section 24

CFR Part 968 contains the relocation requirements for

both these programs. Program specific provisions are

contained in Subpart B (CIAP) and Subpart C (CGP) of Part

968\.

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8-93. MINIMIZING DISPLACEMENT. Consistent with the other goals

and objectives of the Public Housing Program, PHAs must

assure that they have taken all reasonable steps to

minimize displacement as a result of a project.

8-94. DEFINITION OF DISPLACED PERSON. Each \"displaced person\"

is eligible for relocation assistance at URA levels. The

term \"displaced person\" is generally described in

Paragraph 1-8. PHAs shall also comply with the following

additional guidance:

a\. The term \"displaced person\" includes (but may not be

limited to):

\(1\) Any tenant-occupant of a dwelling who moves

permanently from the building/complex after the

\"initiation of negotiations\" (see Paragraph 8-97),

if the move occurs before the tenant is provided

written notice offering him or her the opportunity

to lease and occupy a suitable, decent, safe, and

sanitary dwelling in the same building/complex,

under reasonable terms and conditions, upon

completion of the project. Reasonable terms and

conditions include a monthly rent and estimated

average monthly utility costs that do not exceed

the \"total tenant payment\" as determined under 24

CFR 913.107. (The total tenant payment is also

described in Paragraph 7-20.)

\(2\) A tenant-occupant of a dwelling who is required to

relocate temporarily for the project, but does not

return to the building/complex, if either:

\(a\) The tenant is not offered payment for all

reasonable out-of-pocket expenses incurred in

connection with the temporary relocation

(including the cost of moving to and from the

temporarily occupied unit and any increased

housing costs); or

\(b\) Other conditions of the temporary relocation

are not reasonable.

\(3\) A tenant-occupant of a dwelling who moves from the

building/complex permanently after he or she has

been required to relocate to another unit in the

building/complex, if either:

\(a\) The tenant is not offered reimbursement for

all reasonable out-of-pocket expenses incurred

in connection with the move, or

\(b\) Other conditions of the move are not

reasonable.

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\(4\) For displacement resulting from State agency

acquisition, any person that moves permanently from

the real property after the date described in

Paragraph 1-15a.

\(5\) Any person, including a person who moves before the

\"initiation of negotiations,\" that HUD or the PHA

determines was displaced as a direct result of

acquisition, rehabilitation or demolition for the

project.

b\. Persons Not Eligible. Notwithstanding the provisions of

Paragraph 8-94a, a person does not qualify as a

\"displaced person\" (and is not entitled to relocation

assistance at URA levels or for assistance under this

section), if:

\(1\) The person is excluded under Paragraph 1-8c; or

\(2\) The person has been evicted for serious or repeated

violation of the terms and conditions of the lease

or occupancy agreement, violation of applicable

Federal, State or local law, or other good cause,

and the PHA determines that the eviction was not

undertaken for the purpose of evading the

obligation to provide relocation assistance; or

\(3\) The person moves into the property after submission

of the Annual Statement (CGP) or application (CIAP)

and, before signing a lease and commencing

occupancy, was provided written notice of the

project, its possible impact on the person (e.g.,

the person may be displaced, temporarily relocated

or suffer a rent increase), and the fact that the

person would not qualify as a \"displaced person\"

(or for assistance under this section) as a result

of the project; or

\(4\) The relocation is determined to be a \"general

transfer\" in accordance with applicable Public

Housing Program policies.

8-95. TEMPORARY RELOCATION. See policies in Paragraphs 2-4 and

8-96.

8-96. EXPENSES OF TENANTS NOT DISPLACED.

a\. Policy. Tenants who are not displaced, but must move

temporarily, or move permanently within the same

building/complex, must be reimbursed for actual

reasonable costs incurred because of the project. The

PHA shall either:

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\(1\) Take direct responsibility for all actual,

reasonable moving and related expenses by

undertaking the move itself, using force account

labor, a resident-owned business, or a moving

company; or

\(2\) Reimburse the tenants for all actual, reasonable

out-of-pocket expenses incurred in connection with

the move. The PHA shall not make fixed payments

for the moving expenses of persons not displaced

since such payments may not be representative of

actual reasonable costs.

b\. Utility Deposits.

\(1\) Temporary Housing. The PHA shall pay the cost of

utility deposits if required at temporarily

occupied housing.

\(2\) Permanent Housing. If the newly rehabilitated unit

(the permanent housing) is in a development which

has tenant-purchased, rather than PHA-furnished,

utilities which require utility deposits, the PHA

shall not pay for the new utility deposits since

they are required to be paid by any person

currently living in a development which is being

converted to tenant-purchased utilities and by any

other person moving into such development. The PHA

shall work with the utility company to ensure that

residents who are unable to pay the entire utility

deposit up front receive a payment plan from the

utility company.

c\. Telephone and Cable Television. The PHA shall pay the

required cost of telephone installation and cable

television hook-up at a temporarily occupied unit and at

the permanently occupied, newly rehabilitated unit, if

the person previously had a telephone and cable

television.

d\. Meal Assistance. Whenever a person is not required to

move, but is unable to use -the kitchen for short

period(s) of time because of modernization activities,

the PHA may use project funds for meal vouchers if the

PHA determines that the cost of meal vouchers is less

than the cost of temporary relocation. The PHA shall

maintain documentation of the basis for the determination

in its files.

8-97. DEFINITION OF INITIATION OF NEGOTIATIONS. For purposes

of providing the appropriate notice under Paragraph 2-3b

and determining whether a person displaced from a

dwelling qualifies for a replacement housing payment

under Paragraph 3-3 or Paragraph 3-4 (as opposed to

Paragraph 3-5), the term \"initiation of negotiations\"

means

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45 days before the issuance of the invitation for bids for the

project or the start of force account work, whichever is

applicable:

a\. Forty-five days before the issuance of the invitation for

bids for the project or the start of force account work,

whichever is applicable, if the displacement results

directly from rehabilitation or demolition.

b\. The action described in Paragraph 1-15a, if the

displacement results from State agency (PHA) acquisition.

8-98. APPEAL BY LOWER-INCOME PERSON. Under CIAP or CGP, a

lower-income person (defined in Paragraph 1-16), who is

dissatisfied with the determination of the PHA on his or

her appeal under Paragraph 1-33, may request HUD to

review that determination, as described in Paragraph 1-33i.

8-99. COMPLIANCE RESPONSIBILITY OF PHA.

a\. Certification. As a condition for receiving financial

assistance, the PHA must certify to HUD that it will

comply with the URA, implementing regulations at 49 CFR

Part 24, and 24 CFR Part 968.108. The PHA is responsible

for ensuring compliance with such requirements as

described in this handbook, notwithstanding any third

party\'s contractual obligation to the PHA to comply with

these provisions.

b\. The cost of required relocation assistance is an eligible

project cost in the same manner and to the same extent as

other project costs. The cost of required relocation

assistance may, however, also be paid from local funds or

funds available from other sources.

c\. The PHA must maintain records in detail sufficient to

demonstrate compliance with the provisions of this

handbook. The basic recordkeeping requirements are

described in Chapter 6.

8-100. RESERVED

8-49 4/94

1378 CHG-3

4/94 8-50

1378 CHG-3

Section 10. Indian Housing Programs

8-101. APPLICABILITY.

a\. Programs Covered. This section covers the following

programs:

\(1\) The Indian Housing Development Program (24 CFR 905,

Subpart C), including:

\(a\) The Conventional Method.

\(b\) Turnkey Method.

\(c\) Modified Turnkey Method.

\(d\) Self-Help Method.

\(e\) Acquisition of Existing Housing (With or

Without Rehabilitation).

\(f\) Force Account Method.

\(2\) Mutual Help Homeownership Opportunity (24 CFR 905,

Subpart E).

\(3\) Turnkey III Method.

\(4\) Comprehensive Improvement Assistance Program (CIAP)

(24 CFR 905, Subpart I).

\(5\) Comprehensive Grant Program (CGP) (24 CFR 905,

Subpart I). Beginning in FY 1992, for IRAs with

500 or more units. Beginning in FY 1993, for IHAs

with 250 or more units.

\(6\) Disposition or Demolition of Projects (24 CFR 905,

Subpart M).

NOTE: For information about the Section 5(h)

Homeownership Program for Indian Housing (24

CFR 905. 1010), see Section 14 of this Chapter

8\.

b\. Rules That Apply. The programs described in Paragraph 8-101a

are subject to the following requirements:

\(1\) The URA and implementing regulations at 49 CFR Part

24\. These requirements are described in Chapters 1

through 6 of this handbook.

\(2\) Section 24 CFR 905.117. These additional policies

are described in this Section 10.

8-51 4/94

1378 CHG-3

8-102. MINIMIZING DISPLACEMENT. Consistent with the other goals

and objectives of the Indian Housing Programs, the IHA

shall assure that it has taken all reasonable steps to

minimize displacement as a result of a project assisted

under the program.

8-103. DEFINITION OF DISPLACED PERSON. Each \"displaced person\"

is eligible for relocation assistance at URA levels. The

term \"displaced person\" is generally described in

Paragraph 1-8. IHAs shall also comply with the following

additional guidance:

a\. The term \"displaced person\" includes (but may not be

limited to):

\(1\) A person that moves permanently from the real

property after receiving a notice from the IHA or

property owner that requires such move, if the move

occurs on or after:

\(a\) For conventional development under 24 CFR Part

905, Subpart C, the date that HUD approves the

IHA proposal incorporating the site, or, if

HUD site approval is not required, the date

the IHA approves the site for the project.

\(b\) For CIAP and CGP under 24 CFR 905, Subpart I,

45 calendar days before: (1) the date that the

IHA issues the invitation for bids for the

project, or (2) the start of force account

work, whichever is applicable.

\(c\) For disposition or demolition of Indian

housing under 24 CFR 905, Subpart M, HUD

approval of the IHA\'s proposal.

\(2\) Any person, including a person who moves before the

date described in Paragraph 8-103a(1), that HUD or

the IHA determines was displaced as a direct result

of acquisition, rehabilitation, or demolition for

the assisted project.

\(3\) A tenant-occupant of a dwelling who moves

permanently from the building/complex after the

\"initiation of negotiations\" (defined in Paragraph

8-104). if the move occurs before the tenant is

provided written notice offering him or her the

opportunity to lease and occupy a suitable, decent,

safe, and sanitary dwelling in the same

building/complex, under reasonable terms and

conditions, upon completion of the project. Such

reasonable terms and conditions shall include a

monthly rent and estimated average monthly utility

costs that do not exceed the \"total tenant payment\"

(TTP) as determined under 24 CFR 905.325.

4/94 8-52

1378 CHG-3

\(4\) A tenant-occupant of a dwelling who is required to

relocate temporarily and does not return to the

building/complex, if either:

\(a\) The tenant is not offered payment for all

reasonable out-of-pocket expenses incurred in

connection with the temporary relocation

(including the cost of moving to and from the

temporarily occupied unit and any increased

housing costs), or

\(b\) Other conditions of the temporary relocation

are not reasonable.

\(5\) A tenant-occupant of a dwelling who moves from the

building/ complex permanently after he or she has

been required to move to another unit in the

building/complex, if either:

\(a\) The tenant is not offered reimbursement for

all reasonable out-of-pocket expenses incurred

in connection with the move, or

\(b\) Other conditions of the move are not

reasonable.

b\. Persons Not Eligible. Notwithstanding the provisions of

Paragraph 8-103a, a person does not qualify as a

\"displaced person\" (and is not entitled to relocation

assistance at URA levels), if:

\(1\) The person is excluded under Paragraph 1-8c; or

\(2\) The person has been evicted for serious or repeated

violation of the terms and conditions of the lease

or occupancy agreement, violation of applicable

Federal, Tribal, State or local law, or other good

cause, and HUD determines that the eviction was not

undertaken for the purpose of evading the

obligation to provide relocation assistance; or

\(3\) The person moves into the property after the dates

described in Paragraph 8-103a(1) and, before

signing a lease and commencing occupancy, was

provided written notice of the project, its

possible impact on the person (e.g., the person may

be displaced, temporarily relocated or suffer a

rent increase) and the fact that the person would

not qualify as a \"displaced person\" as a result of

the project.

8-53 4/94

1378 CHG-3

8-104. DEFINITION OF INITIATION OF NEGOTIATIONS. For purposes

of providing the appropriate notice under Paragraph 2-3b

and determining whether a person displaced from a

dwelling qualifies for a replacement housing payment

under Paragraph 3-3 or Paragraph 3-4 (as opposed to

paragraph 3-5), the term \"initiation of negotiations\"

means:

a\. For a CIAP or CGP under Subpart I, 45 calendar days

before: (1) the IHA\'s issuance of the invitation for bids

for the project, or (2) the start of force account work,

whichever is applicable.

b\. For an IHA purchase through an arm\'s length transaction,

as described in Paragraph 5-1a(1), the seller\'s

acceptance of the IHA\'s written offer to purchase the

property (i.e., the seller\'s execution of form HUD-51971-H).

c\. For an IHA purchase that does not qualify as an arm\'s

length transaction, the delivery of the initial written

purchase offer from the IHA to the owner of the property

(i.e., the IHA executed form HUD-51971-H). However, if

the IHA issues a notice of intent to acquire the

property, and a person moves after that notice, but

before the initial written purchase offer, the initiation

of negotiations is the actual move of the person from the

property.

d\. For disposition or demolition of Indian housing under 24

CFR 905, Subpart M, HUD approval of the IHA\'s proposal.

8-105. APPEAL BY LOWER-INCOME PERSON. Under Indian Housing

Programs, a lower-income person (defined in Paragraph 1-16),

who is dissatisfied with the determination of the

IHA on his or her appeal under Paragraph 1-33, may

request HUD to review that determination as described in

Paragraph 1-33i.

8-106. COMPLIANCE RESPONSIBILITY OF IHA.

a\. Certification. Before receiving HUD financial

assistance, the IHA must certify to HUD that it will

comply with the URA, 49 CFR Part 24, and 24 CFR 905.117.

The IHA is responsible for ensuring compliance with such

requirements, as described in this handbook,

notwithstanding any third party\'s contractual obligation

to the IHA to comply with such provisions.

b\. The cost of required relocation assistance is an eligible

project cost in the same manner and to the same extent as

the other project costs. However, such assistance may

also be paid for with funds available from other sources.

4/94 8-54

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1378 CHG-1

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c\. The IHA must maintain records in detail sufficient to

demonstrate compliance with the provisions of this handbook,

as described in Chapter 6.

8-107. - 8.110. RESERVED

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8-55 7/92

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1378 CHG-1

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7/92 8-56

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1378 CHG-1

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Section 11. Public Housing Program \-- Demolition

or Disposition of Public Housing Projects

8-111. APPLICABLE RULES. The Demolition or Disposition of Public Housing

Projects Program (24 CFR Part 970) is subject to the following

requirements:

a\. The URA and implementing regulations at 49 CFR Part 24. These

requirements are described in Chapters 1 through 6 of this

handbook.

b\. Other Requirements. Until the current 24 CFR 970.5 is revised

to conform to applicable relocation policies, Public Housing

Agencies (PHAs) shall follow the guidance in this Section 11.

8-112. RELOCATION ASSISTANCE AT URA LEVELS. A person who is displaced as

a direct result of acquisition, rehabilitation or demolition for a

Federal or federally assisted project is eligible for relocation

assistance at URA levels as described in Chapters 1 through 6. For

example, the disposition of property to a Federal agency or to any

person or entity that acquires the property for a federally

assisted project makes such transaction subject to the URA. As

described in 24 CFR 970, public housing units that are demolished

or disposed of under 24 CFR 970 must be replaced. Any person

displaced as a direct result of acquisition, demolition or

rehabilitation for a federally assisted project that provides

required replacement housing is eligible for relocation assistance

at URA levels.

8-113. RELOCATION ASSISTANCE AT NON-URA LEVELS.

a\. Whenever the displacement of a residential tenant (family or

individual) occurs in connection with the demolition or

disposition of a project, but the displacement is not subject

to the URA (e.g., the buyer is not a Federal agency and the

conveyance is not for a federally assisted project), the

displaced tenant shall be eligible for the following relocation

assistance:

\(1\) Advance written notice of the expected displacement. The

notice shall be provided as soon as feasible, describe the

assistance and the procedures for obtaining the

assistance, and contain the name, address and phone number

of an official responsible for providing the assistance.

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8-57 7/92

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1378 CHG-1

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\(2\) Other advisory services, as appropriate, including

counseling, referrals to suitable, decent, safe, and

sanitary replacement housing. Minority persons also shall

be given, if possible, referrals to decent, safe and

sanitary replacement dwellings that are not located in an

area of minority concentration;

\(3\) Payment for actual reasonable moving expenses, as

determined by the PHA.

\(4\) For displaced eligible families and individuals:

\(a\) The opportunity to relocate to a suitable, decent,

safe, and sanitary dwelling unit in a public housing

project, or in another HUD subsidized rental housing

project; or

\(b\) Assistance under the Section 8 Certificate Program or

the Housing Voucher Program, if the assistance is

available.

\(5\) Such other Federal, State or local assistance as may be

available.

b\. Residential tenants who will not be required to move

permanently, but who must relocate temporarily (e.g., to permit

property repairs), shall be provided:

\(1\) Reimbursement for all reasonable out-of-pocket expenses

incurred in connection with the temporary relocation,

including the cost of moving to and from the temporary

housing and any increase in monthly rent/utility costs.

\(2\) Appropriate advisory services, including reasonable

advance written notice of (i) the date and approximate

duration of the temporary relocation, (ii) the suitable,

decent, safe, and sanitary housing to be made available

for the temporary period, (iii) the terms and conditions

under which the tenant may lease and occupy a suitable,

decent, safe, and sanitary dwelling in the

building/complex following completion of the repairs, and

\(iv\) the provisions of Paragraph 8-113b(1).

8-114. DEFINITION OF DISPLACED PERSON. The following definition of a

\"displaced person\" applies to transactions covered by the URA and

non-URA transactions.

a\. The term \"displaced person\" includes (but may not be limited

to):

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\(1\) A person that moves permanently from the real

property after receiving a notice from the PHA, or

from the person buying the property, that requires

such move, if the move occurs on or after the date

of HUD approval of the demolition or disposition of

the project.

\(2\) Any person, including a person who moves before the

date of HUD approval of the demolition or

disposition of the project, that either HUD or the

PHA determines was displaced as a direct result of

acquisition, rehabilitation, or demolition for the

assisted project.

\(3\) A tenant-occupant of a dwelling who moves

permanently from the building/complex after the

date of HUD approval of the demolition or

disposition of the project, if the move occurs

before the tenant is provided written notice

offering him or her the opportunity to lease and

occupy a suitable, decent, safe, and sanitary

dwelling in the same building/complex, under

reasonable terms and conditions, upon completion of

the project. Such reasonable terms and conditions

shall include a monthly rent and estimated average

monthly utility costs that do not exceed that

permitted under Section 3(a) of the 1937 Act (i.e.,

Total Tenant Payment).

\(4\) A tenant-occupant of a dwelling who is required to

relocate temporarily and does not return to the

building/complex, if either:

\(a\) The tenant is not offered payment for all

reasonable out-of-pocket expenses incurred in

connection with the temporary relocation

(including the cost of moving to and from the

temporarily occupied unit and any increased

housing costs), or

\(b\) Other conditions of the temporary relocation

are not reasonable.

\(5\) A tenant-occupant of a dwelling who moves from the

building/complex permanently after he or she has

been required to move to another unit in the

building/complex, if either:

\(a\) The tenant is not offered reimbursement for

all reasonable out-of-pocket expenses incurred

in connection with the move, or

\(b\) Other conditions of the move are not

reasonable.

8-59 4/94

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1378 CHG-1

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b\. Persons Not Eligible. Notwithstanding the provisions of

Paragraph 8-114a, a person does not qualify as a \"displaced

person\" (and is not entitled to relocation assistance at URA

levels), if:

\(1\) The person is excluded under Paragraph 1-8c; or

\(2\) The person has been evicted for serious or repeated

violation of the terms and conditions of the lease or

occupancy agreement, violation of applicable Federal,

State or local law, or other good cause, and HUD

determines that the eviction was not undertaken for the

purpose of evading the obligation to provide relocation

assistance; or

\(3\) The person moves into the property after the submission of

the application for the demolition or disposition and,

before signing a lease and commencing occupancy, was

provided written notice of the planned demolition or

disposition, its possible impact on the person (e.g., the

person may be displaced, temporarily relocated or suffer a

rent increase) and the fact that the person would not

qualify as a \"displaced person\" as a result of the

demolition or disposition.

8-115. DEFINITION OF INITIATION OF NEGOTIATIONS. For purposes of

providing the appropriate notice under Paragraph 2-3b and

determining whether a person displaced from a dwelling qualifies

for a replacement housing payment under Paragraph 3-3 or Paragraph

3-4 (as opposed to paragraph 3-5), the term \"initiation of

negotiations\" means HUD approval of the demolition or disposition

of the project.

8-116. APPEAL BY LOWER-INCOME PERSON. If a person disagrees with the

PHA\'s determination concerning the person\'s eligibility for

relocation assistance or the amount of assistance for which the

person is eligible, the person may file a written appeal of that

determination with the PHA. A lower-income person who is

dissatisfied with the PHA\'s determination on his or her appeal may

submit a written request for review of the PHA\'s determination to

the HUD Field Office.

8-117. COMPLIANCE RESPONSIBILITY OF PHA.

a\. Certification. Before receiving HUD financial assistance, the

PHA must certify to HUD that it will comply with the URA, 49

CFR Part 24, and 24 CFR 970.5. The PHA is responsible for

ensuring compliance with such requirements, as described in

this handbook, notwithstanding any third party\'s contractual

obligation to the PHA to comply with such provisions.

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7/92 8-60

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b\. The cost of required relocation assistance is an eligible

project cost in the same manner and to the same extent as the

other project costs. However, such assistance may also be paid

for with funds available from other sources.

c\. The PHA must maintain records in sufficient detail to

demonstrate compliance with the provisions of this handbook,

as described in Chapter 6.

8-118. - 8-120. RESERVED

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8-61 7/92

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1378 CHG-1

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7/92 8-62

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1378 CHG-1

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Section 12. Supportive Housing for the Elderly;

Supportive Housing for Persons with Disabilities;

Section 202 Projects for the Elderly or Handicapped;

Section 202 Projects for the Nonelderly Handicapped

8-121. APPLICABILITY.

a\. Programs Covered. This section 12 covers the following

programs:

\(1\) Supportive Housing for the Elderly (24 CFR Part 889; see

889.265(e)).

\(2\) Supportive Housing for Persons with Disabilities (24 CFR

Part 890; see 890.260(e)).

\(3\) Section 202 Projects for the Elderly or Handicapped (24

CFR Part 885; see 885.9).

\(4\) Section 202 Projects for the Nonelderly Handicapped (24

CFR Part 885; see 885.740(e)).

b\. Rules That Apply. The programs described in Paragraph 8-121a

are subject to the following requirements:

\(1\) The URA and implementing regulations at 49 CFR Part 24.

These requirements are described in Chapters 1 through 6

of this handbook.

\(2\) Section 24 CFR 889.265(e), 889.260(e), 885.9, or

885.740(e), as appropriate. These additional policies are

described in this Section 12.

8-122. BACKGROUND.

a\. Supportive Housing for the Elderly (24 CFR Part 889). Part 889

implements section 202 of the Housing Act of 1959, as amended

by section 801 of the National Affordable Housing Act (NAHA),

to provide assistance to private nonprofit corporations and

nonprofit consumer cooperatives to expand the supply of

supportive housing for the elderly. The assistance is provided

through (1) capital advances and (2) project-based rental

assistance contracts. Capital advances bear no interest and

may be used to fund real property

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8-63 7/92

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acquisition, demolition, site improvement, rehabilitation and

conversion. The rental assistance covers HUD-approved

operating costs that are not met from project income.

Supportive services may include meal service, health-related

services, housekeeping aid, personal assistance and

transportation.

b\. Supportive Housing for Persons with Disabilities. Part 890

implements Section 811 of the NAHA, which established a new

Supportive Housing for Persons with Disabilities Program to

enable persons with disabilities to live with dignity and

independence within their communities by expanding the supply

of supportive housing that (1) is designed to accommodate the

special needs of such persons and (2) provides supportive

services that address the individual health and other needs of

such persons. The assistance is provided to nonprofit

corporations in the form of (1) capital advances, and (2)

contracts for project-based rental assistance. The assistance

may be used to fund real property acquisition, demolition, site

improvement, rehabilitation, and conversion.

c\. Section 202 Projects for the Elderly or Handicapped (24 CFR

Part 885, Subpart B). Under this program, HUD provided (1)

direct loans under section 202 of the Housing Act of 1959 and

\(2\) Section 8 housing assistance payments to private nonprofit

corporations and consumer cooperatives to finance rental or

cooperative housing facilities for elderly or handicapped

persons where necessary supportive services were also provided.

Part 885 applies to projects for which a section 202 loan

reservation was made in FY 1990 or earlier and was initially

closed as of January 1, 1992.

d\. Section 202 Projects for the Nonelderly Handicapped (24 CFR

Part 885, Subpart B). Under this program HUD provided (1)

direct loans under section 202 and (2) project assistance

payments under section 202(h) of the Housing Act of 1959 to

provide housing for nonelderly handicapped persons in which

necessary services were also provided. Part 895 applies to

projects for which the section 202 loan reservation was made in

FY 1990 or earlier and was initially closed as of January 1,

1992\.

8-123. MINIMIZING DISPLACEMENT. Consistent with the other goals and

objectives of the programs covered by this Section 12, the

Sponsor/Owner shall assure that all reasonable steps have been

taken to minimize displacement occurring as a result of an assisted

project.

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1378 CHG-1

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8-124. DEFINITION OF DISPLACED PERSON. Each \"displaced person\" is

eligible for relocation assistance at URA levels. The term

\"displaced person\" is generally described in Paragraph 1-8.

However, 24 CFR 889.265(e), 890.260(e), 885.9, and 885.740(e)

provide the following additional guidance:

a\. The term \"displaced person\" includes (but may not be limited

to):

\(1\) A person that moves permanently from the real property

after receiving a notice from the Sponsor/Owner that

requires such move, if the move occurs on or after:

\(a\) The date of the submission of the application to HUD

for assistance for the project which is later

approved, if the Sponsor has control of an

appropriate site; or

\(b\) The date that the Sponsor obtains control of an

approvable site, if such control is obtained after

the submission of the application to HUD.

\(2\) Any person, including a person who moves before the date

described in Paragraph 8-124a(1), if either HUD or the

Sponsor/Owner determines that the displacement directly

resulted from acquisition, rehabilitation, or demolition

for the project.

\(3\) A tenant-occupant of a dwelling who moves permanently from

the building/complex after execution of the Agreement

between the Sponsor/Owner and HUD, if the move occurs

before the tenant is provided written notice offering him

or her the opportunity to lease and occupy a suitable,

decent, safe, and sanitary dwelling in the same

project/complex, under reasonable terms and conditions,

upon completion of the project. Such reasonable terms and

conditions shall include a monthly rent and estimated

average monthly utility costs that do not exceed the

greater of:

\(a\) The tenant\'s monthly rent and estimated average

monthly utility costs before the Agreement; or

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

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1378 CHG-1

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\(b\) The Total Tenant Payment (TTP) as determined under 24

CFR 813.107, if the tenant is low income; or 30

percent of gross household income, if the tenant is

not low income. (The TTP is also described in

Paragraph 7-20 of this handbook.)

\(4\) A tenant-occupant of a dwelling who is required to

relocate temporarily and does not return to the

building/complex, if either:

\(a\) The tenant is not offered payment for all reasonable

out-of-pocket expenses incurred in connection with

the temporary relocation (including the cost of

moving to and from the temporarily occupied unit and

any increased housing costs), or

\(b\) Other conditions of the temporary relocation are not

reasonable.

\(5\) A tenant-occupant of a dwelling who moves from the

building/complex permanently after he or she has been

required to move to another unit in the same

building/complex, if either:

\(a\) The tenant is not offered reimbursement for all

reasonable out-of-pocket expenses incurred in

connection with the move, or

\(b\) Other conditions of the move are not reasonable.

b\. Persons Not Eligible. Notwithstanding the provisions of

Paragraph 8-124a, a person does not qualify as a displaced

person (and is not entitled to relocation assistance at URA

levels) if:

\(1\) The person is excluded under Paragraph 1-8c of this

handbook; or

\(2\) The person has been evicted for serious or repeated

violation of the terms and conditions of the lease or

occupancy agreement, violation of applicable Federal,

State or local law, or other good cause, and HUD

determines that the eviction was not undertaken for the

purpose of evading the obligation to provide relocation

assistance; or

\(3\) The person moves into the property after the submission of

the application and, before signing a lease and commencing

occupancy, was provided written notice of the project, its

possible impact on the person

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

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(e.g., the person may be displaced, temporarily

relocated or suffer a rent increase) and the fact

that the person would not qualify as a \"displaced

person\" as a result of the project.

8-125. DEFINITION OF INITIATION OF NEGOTIATIONS. For purposes of

providing the appropriate notice under Paragraph 2-3b of

this handbook and determining whether a person displaced

from a dwelling qualifies for a replacement housing

payment under Paragraph 3-3 or Paragraph 3-4 (as opposed

to paragraph 3-5), the term \"initiation of negotiations\"

means HUD issuance of the firm commitment for the

project.

8-126. APPEAL BY LOWER-INCOME PERSON. Under the programs covered

by this Section 12, a lower-income person (defined in

Paragraph 1-16), who is dissatisfied with the

determination of the Sponsor/Owner on his or her appeal

under Paragraph 1-33, may request HUD to review that

determination as described in Paragraph 1-33i.

8-127. COMPLIANCE RESPONSIBILITY OF SPONSOR/OWNER.

a\. Certification. Before receiving HUD financial

assistance, the applicant must certify to HUD that it

will comply with the URA, 49 CFR Part 24, and the

pertinent provisions of the program regulations (24 CFR

885.9, 885.740(e), 889.265(e) or 889.260(e)). The

Sponsor/Owner is responsible for ensuring compliance with

such requirements, as described in this handbook,

notwithstanding any third party\'s contractual obligation

to the Sponsor/Owner to comply with such provisions.

b\. The cost of required relocation assistance is an eligible

project costs in the same manner and to the same extent

as other project costs. However, such assistance may

also be paid for with funds available from other sources.

c\. The Sponsor/Owner must maintain records in sufficient

detail to demonstrate compliance with the provisions of

this handbook, as described in Chapter 6.

8-128. - 8-130. RESERVED

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4/94 8-68

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

1378 CHG-1

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1378 CHG-4

Section 13. Section 8 Project-Based Certificate Program; Section 8

Moderate Rehabilitation Program; and Section 8 Moderate

Rehabilitation Single Room Occupancy (SRO) for Homeless

Individuals Program

8-131. APPLICABILITY.

a\. Programs Covered. This Section 13 covers the following programs:

\* (1) Section 8 Project-Based Certificate Assistance (24 CFR

882.712).

\(2\) Section 8 Moderate Rehabilitation (24 CFR 882.406).

\(3\) Section 8 Moderate Rehabilitation Single Room Occupancy (SRO)

for Homeless Individuals (24 CFR 882.810).\*

b\. Rules That Apply. The programs described in Paragraph 8-131a are

subject to the following requirements:

\(1\) The URA and implementing relations at 49 CFR Part 24. These

requirements are described in Chapters 1 through 6 of this

handbook.

\(2\) Sections 24 CFR 882.712, 882.406 and 882.810 as appropriate.

These additional policies are described in this Section 13.

8-132. MINIMIZING DISPLACEMENT. Consistent with the other goals and

objectives of the programs listed in Paragraph 8-131a, Owners must

assure that they have taken all reasonable steps to minimize

displacement as a result of projects assisted under the programs.

8-133. TEMPORARY RELOCATION. See policy in Paragraph 2-4b.\*

8-134. DEFINITION OF DISPLACED PERSON. Each \"displaced person\" is
eligible

for relocation assistance at URA levels. The term \"displaced person\"
is

generally described in Paragraph 1-8. \*However, 24 CFR \'\'882.712,
882.406

and 882.810 provide the following additional guidance: \*

a\. The term \"displaced person\" includes, but may not be limited to:

\(1\) A person that moves permanently from the real property after

receiving a notice from the property owner requiring such

move, if the move occurs on or after the date of the

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1378 CHG-4

submission to the PHA of the owner proposal (or owner

application, in the case of the Project-Based Certificate

Program) that is later approved.

\(2\) A person, including a person who moves permanently before the

submission of the owner proposal (or application, in the case

of the Project-Based Certificate Program), that either HUD or

the PHA determines was displaced as a direct result of

acquisition, rehabilitation, or demolition for the assisted

project.

\(3\) A tenant-occupant of a dwelling who moves permanently from the

building/complex after the \"initiation of negotiations\"

(defined in Paragraph \*8-135)\*, if the move occurs before the

tenant is provided written notice offering him or her the

opportunity to lease and occupy a suitable, decent, safe, and

sanitary dwelling in the same building/complex, under

reasonable terms and conditions, upon its completion. \*Such

reasonable terms and conditions shall include a monthly rent

and estimated average monthly utility costs that do not exceed

the greater of:

\(a\) The tenant\'s monthly rent before the \"initiation of

negotiations\" and estimated average monthly utility

costs; or

\(b\) The \"total tenant payment\" (described in Paragraph 7-20),

if the tenant is lower income, or 30 percent of gross

household income, if the tenant is not lower income. \*

If the project will have little or no negative impact on the

tenant (e.g. the rehabilitation will result in no disruption

and no increase in rent), the notice specified in this

paragraph may be served by posting it in accessible

location(s) and supplying a copy, if applicable, to the

tenants representative.

\(4\) A tenant-occupant of a dwelling who is required to relocate

temporarily and does not return to the building/complex if

either:

\(a\) The tenant is not offered payment for all reasonable put-

of-pocket expenses incurred in connection with the

temporary relocation (including the cost of moving to and

from the temporarily occupied unit and any increased

housing costs), or

3/96 8-70

1378 CHG-4

\(b\) Other conditions of the temporary relocation are not

reasonable.

\(5\) A tenant-occupant of a dwelling who moves from the

building/complex permanently after he or she has been required

to move to another unit in the building/complex. if either:

\(a\) The tenant is not offered reimbursement for all

reasonable out-of-pocket expenses incurred in connection

with the move, or

\(b\) Other conditions of the move are not reasonable.

b\. Persons Not Eligible. Notwithstanding the provisions of Paragraph

8-134a, a person does not qualify as a \"displaced person\" (and is

not entitled to relocation assistance at URA levels), if:

\(1\) The person is excluded under Paragraph 1-8c; or

\(2\) The person has been evicted for serious or repeated violation

of the terms and conditions of the lease or occupancy

agreement, violation of applicable Federal, State or local

law, or other good cause, and HUD determines that the eviction

was not undertaken for the purpose of evading the obligation

to provide relocation assistance; or

\*(3) The person moved into the property after the submission of the

preliminary proposal (or application in the case of the

Project-Based Certificate Program, or if there is no

preliminary application)\* and before signing a lease and

commencing occupancy, was provided written notice of the

project, its possible impact on the person (e.g., the person

may be displaced, temporarily relocated or suffer a rent

increase) and the fact that the person would not qualify as a

\"displaced person\" (or for any assistance under this handbook)

if the proposal (or application) is approved.

8-135. DEFINITION OF INITIATION OF NEGOTIATIONS. For purposes of
providing

the appropriate notice under Paragraph 2-3b and determining whether a

person displaced from a dwelling qualifies for a replacement housing

payment under Paragraph 3-3 or Paragraph 3-4 (as opposed to paragraph 3-

5), the term \"initiation of negotiations\" means \*the execution of the

Agreement between the Owner and the PHA.\*

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8-136. APPEAL BY LOWER-INCOME PERSON. Under the programs covered by this

Section 13, a lower-income person (defined in Paragraph 1-16), who is

dissatisfied with the determination of the PHA on his or her appeal

under Paragraph 1-33, may request HUD to review that determination as

described in Paragraph 1-33i.

8-137. COMPLIANCE RESPONSIBILITY OF PHA.

a\. Certification. Before receiving HUD financial assistance, the

applicant must certify to HUD that it will comply with the URA, 49

CFR Part 24, and the pertinent rule in 24 CFR Part 882. The PHA is

responsible for ensuring compliance with such requirements, as

described in this handbook, notwithstanding any third party\'s

contractual obligation to the PHA to comply with such provisions.

NOTE: The compliance certification in Section 2.1 of the

Consolidated Annual Contributions Contract for the Rental

Certificate Program and Section 2.2 of the Annual Contributions

Contract for the Moderate Rehabilitation Program constitutes the

PHA\'s certification of compliance with the URA, implementing

regulations at 49 CFR Part 24, and the applicable section of the

program regulations.

b\. The cost of required relocation assistance is an eligible project

cost in the same manner and to the same extent as other project

costs. However, such assistance may also be paid for \*with local

public funds or from funds available from other sources. The cost

of PHA advisory services for temporary relocation of tenants may be

paid from preliminary administrative funds (or, in the case of the

Project-Based Certificate Program, from preliminary or ongoing

administrative fees).

c\. The PHA must maintain records in sufficient detail to demonstrate

compliance with the provisions of this handbook, as described in

Chapter 6.

8-138.-8-140. RESERVED

3/96 8-72

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1378 CHG-3

Section 14. HOPE for Public and Indian Housing, Homeownership

(HOPE 1); HOPE for Homeownership of Multifamily

Units (HOPE 2); HOPE for Homeownership of Single

Family Homes (HOPE 3); Section 5(h) Homeownership

Program for Public and Indian Housing; and Section

21 Homeownership (Public Housing Conversion)

8-141. APPLICABILITY.

a\. Programs Covered. This Section 14 covers the following

programs:

\(1\) HOPE for Public and Indian Housing Homeownership

(HOPE 1) (24 CFR Subtitle A, Appendix A; see

Section 735).

\(2\) HOPE for Homeownership of Multifamily Units (HOPE

2\) (24 CFR Subtitle A, Appendix B; see Section

735).

\(3\) HOPE for Homeownership of Single Family Homes (HOPE

3\) (24 CFR 572.145).

\(4\) Section 5(h) Homeownership Program for Indian

Housing (24 CFR Part 905, Subpart P; see 905.1010).

\(5\) Section 5(h) Homeownership Program for Public

Housing (24 CFR Part 906; see 906.10).

\(6\) Section 21 Homeownership Program for Public Housing

(not implemented).

b\. Rules That Apply. The programs described in Paragraph 8-141a

are subject to the following requirements:

\(1\) The applicable section of the program rule

(identified in Paragraph 8-141a).

\(2\) The URA and implementing regulations at 49 CFR Part

24\. Generally, the URA relocation provisions will

be triggered only if there is a violation of the

displacement prohibition described in Paragraph 8-142.)

8-142. DISPLACEMENT PROHIBITED.

a\. Basic Policy. No person may be displaced from his or her

dwelling as a direct result of a homeownership program

listed in Paragraph 8-141a. This does not, however,

preclude termination of tenancy for cause as described in

Paragraph

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1-8c(1). A violation of the displacement prohibition

may, in addition to any applicable program sanctions,

trigger a URA obligation to provide the person displaced

with relocation assistance in accordance with Chapters 1

through 6 of this handbook.

b\. HOPE 3.

\(1\) The HOPE 3 regulations prohibit the use in a HOPE 3

Program of any property that is occupied by a

tenant at the time the application for the

implementation grant covering the property is

filed, unless the tenant agrees voluntarily to

participate in the HOPE 3 Program (i.e., purchase

the property or elect to relocate). Also, the

termination (except for cause) of any tenant at the

time of program approval is prohibited by law.

NOTE: For purposes of this Section 14, the term

\"tenant\" does not include the former owner of the

property if it is acquired from him/her as a result

of a tax or mortgage foreclosure.

\(2\) Since a displacement and the resulting requirement

to provide URA assistance to a \"displaced person\"

could only result from a violation of Federal law,

HUD will expect HOPE 3 Program recipients to

reimburse the Program for any expenditure of HOPE 3

funds needed to meet such obligation.

8-143. NOTICE. As soon as feasible, each resident of a unit to

be used in a program shall be provided a written notice

of the applicable provisions of this section. The notice

must contain a clear statement that the resident will not

be displaced if he or she does not wish to participate in

the program. By providing notices of nondisplacement at

an early date (before project approval), the grantee will

ensure that the resident does not have a basis for moving

from the property and filing a claim for relocation

assistance under the URA.

NOTE: A suggested guideform notice to meet this requirement is

included at Exhibit 814-1.

8-144. TEMPORARY RELOCATION. Resident who must relocate

temporarily to permit work on the project to be carried

out must be provided suitable, decent, safe and sanitary

housing for the temporary period and reimbursed for all

reasonable out-of-pocket expenses incurred in connection

with the temporary relocation, including the cost of

moving to and from the temporarily occupied housing and

any increase in monthly rent/utility costs.

4/94 8-74

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8-145. RELOCATION ASSISTANCE TO TENANTS WHO ELECT TO RELOCATE.

As described in Paragraph 8-142, no tenant may be

displaced. However, a nonpurchasing tenant of a property

selected for use in an approved program who is ineligible

or unwilling to purchase (and does not wish to remain as

a renter) may elect to relocate. Each such non-purchasing

tenant shall be offered at least the following

relocation assistance:

a\. Advisory services, including timely information about the

assistance to be provided under this section, counseling,

referrals to suitable, affordable, decent, safe, and

sanitary alternative housing, and an explanation of the

tenant\'s rights under the Fair Housing Act;

b\. Payment for actual, reasonable moving expenses (see

Paragraph 3-2a); and

c\. Replacement housing assistance sufficient to permit

relocation to suitable, affordable, decent, safe and

sanitary replacement housing in accordance with the

relocation assistance component of the HUD-approved

homeownership assistance program. This requirement is

met if the tenant is provided the opportunity to relocate

to suitable, decent, safe and sanitary housing for which

the rent and estimated cost of utilities does not exceed

the greater of (a) 30 percent of the adjusted income of

the person (family or individual) (adjustments described

in Paragraph 7-22), or (b) the person\'s monthly rent

before relocation and the estimated average monthly cost

for utilities. The program shall specify the period that

assistance will be provided to persons who are not

provided a Section 8 certificate or voucher or other

assisted housing program subsidy.

\(1\) HOPE 1. If a low-income tenant residing in the

property on the date HUD approves an application

for an implementation grant chooses to relocate (at

any time during the term of the operating

assistance contract), the PHA/IHA shall, if

possible, offer the tenant (a) a unit in another

public or Indian housing development, or (b) a

Section 8 certificate or voucher for use in other

housing, without regard to otherwise applicable

Federal or PHA/IHA preferences. In the latter

case, the tenant must be provided referrals to

suitable, affordable, decent, safe and sanitary

housing where the owner is willing to participate

in the Section 8 Existing Housing Program.

\(2\) HOPE 2. If a low-income tenant residing in the

property on the date HUD approves an application

for an implementation grant decides not to purchase

a unit or is not qualified to do so under the terms

of the approved homeownership program, HUD shall,

subject to the availability

8-75 4/94

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of appropriations, ensure that the tenant receives

a Section 8 certificate or voucher for use in that

or another property. Any such tenant who chooses

to relocate should be provided referrals to

suitable, affordable, decent, safe and sanitary

housing where the owner is willing to participate

in the Section 8 Existing Housing Program.

\(3\) Section 5(h). Tenants shall be provided the

opportunity to relocate to a suitable dwelling

under the Public or Indian Housing Program, any of

the housing assistance programs under Section 8 of

the Act, or any other Federal, State or local

program that has comparable standards for housing

quality, admission, and rent and provides a term of

assistance of at least five years.

8-146. REAL PROPERTY ACQUISITION UNDER HOPE 3.

a\. Acquisition of Government-owned Property. Real property

acquisition under the HOPE 3 Program is limited to the

purchase of government-owned properties. As described in

Paragraph 5-la(3), these \"arm\'s-length\" acquisitions (the

purchaser is not able to acquire the property through

condemnation) are not subject to the provisions of Title

III of the URA or the acquisition requirements in Chapter

5\.

b\. Acquisition and Resale of Privately Owned Real Property.

HOPE 3 Program funds may not be used to acquire privately

owned property. If a HOPE 3 Program recipient uses non-HOPE 3

funds to purchase privately owned property for use

in a HOPE 3 Program and the purchase occurs after its

submission of the HOPE 3 implementation grant

application, there is a presumption that such purchase

from the private owner (and any resulting displacement)

is subject to the URA. (This presumption by HUD is

effective for purchases occurring after August 31, 1992.)

Conversely, there is a presumption (which may be rebutted

with evidence to the contrary) that an acquisition

carried out before the submission of the HOPE 3

implementation grant application was not carried out for

the program.

8-147. APPLICATION REQUIREMENTS.

a\. HOPE 1 and HOPE 2. The application shall:

\(1\) Describe the proposed relocation activities. The

plan shall specify the approximate number of

families and individuals who are expected to

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choose to move, the number who will be temporarily

relocated during rehabilitation, the estimated

costs, the source of funding, other available

resources (including, for example, Section 8

assistance), and the organization that will

administer the relocation.

\(2\) Contain either an application from the appropriate

PHA/IHA for assistance under Section 8 of the 1937

Act, specifying the period during which the

assistance will be needed, or a statement by the

applicant that no Section 8 assistance will be

needed. For HOPE 1, the application shall specify

whether the Section 8 assistance is proposed to

assist nonpurchasing tenants to relocate to another

property, or is needed to fulfill the requirement

to replace units which have been converted to

homeownership use, or both. For HOPE 2, the

application shall specify whether the assistance is

proposed for non-purchasing tenants for use in the

eligible property or another property, or both.

b\. HOPE 3. If the program will involve occupied property,

the application shall contain the information described

in Paragraph 8-147a(1).

8-148. APPEAL BY LOWER-INCOME PERSON. Under the homeownership

programs listed in Paragraph 8-141a, any lower-income

person (defined in Paragraph 1-16), who is dissatisfied

with the determination of the grantee on his or her

appeal under Paragraph 1-33, may request HUD to review

that determination as described in Paragraph 1-33i.

8-149. COMPLIANCE RESPONSIBILITY OF GRANTEE.

a\. General. The grantee (includes recipient) shall comply

with the policies described in this section and shall

ensure such compliance. Notwithstanding any third

party\'s contractual obligation to the grantee to comply

with these provisions, HUD will hold the grantee

responsible for compliance and will take any necessary

corrective and remedial action against the grantee.

b\. The cost of required relocation assistance is an eligible

project cost in the same manner and to the same extent as

other project costs. The cost of required relocation

assistance may, however, also be paid from local funds or

funds available from other sources.

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c\. The grantee (includes recipient) must maintain records in

detail sufficient to demonstrate compliance with all

required statutory and regulatory provisions. The basic

recordkeeping requirements are described in Chapter 6 of

this handbook.

8-150. RESERVED

4/94 8-78

EXHIBIT 8-14-1

GUIDEFORM PRE-PROJECT NOTICE TO SITE OCCUPANTS \--

CONVERSION TO HOMEOWNERSHIP (e.g., HOPE 2)

(Also constitutes General Information Notice

and Notice of Nondisplacement)

Dear \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_:

The \_\_\_\_\_\_\_\_\_\_\_\_\_(Applicant Name)\_\_\_\_\_\_\_\_\_\_ is
conducting a survey

to determine the feasibility of asking the U.S. Department of

Housing and Urban Development for a \[HOPE 2\] financial grant to

assist current low-

income occupants purchase a housing unit in the
\_\_\_\_\_\_\_\_\_\_(Name and

Address of Property)\_\_\_\_\_\_\_\_\_\_.

The purpose of this notice is to inform you that if enough families

in the property are interested and Federal financial assistance is

approved, each family in the development will be given the

opportunity to:

1 . Buy a unit in the property, if the family can qualify;

or

2\. Lease a unit in the property at an affordable rent as

defined in the program rules; or

3\. Move out of the property and receive relocation

assistance to help the family relocate to a suitable,

affordable, decent, safe and sanitary unit. That

assistance would include housing referrals, other

advisory services, payment for moving expenses and, if

needed, financial assistance to afford the new unit.

Please understand that, if a project is approved, you will not be

displaced (i.e., required to move from the property permanently).

If a family must move temporarily to permit rehabilitation work,

the family will be provided suitable, decent, safe and sanitary

housing for the temporary period and reimbursed for all reasonable

extra expenses, including moving costs and any increase in monthly

rent and utility costs.

If this project is to be successful, it is very important that you

provide us with needed information about your family size, income

and circumstances. In addition, it is important that you tell us

whether you are interested in becoming a homeowner, staying in the

development as a renter, or moving to other housing. Our

application to HUD will be based upon the choices made by you and

your neighbors.

A member of our staff will be in touch with you soon to explain the

program and the opportunities available to you and ask you to

provide the information needed to decide if the project is

feasible. We would appreciate your cooperation.

In the meantime, if you have any questions about this proposal,

please contact \_\_\_\_\_\_\_\_(Name)\_\_\_\_\_\_\_\_ at
\_\_\_\_\_\_\_\_(Phone

No.)\_\_\_\_\_\_\_\_\_,
\_\_\_\_\_\_\_\_\_\_\_\_\_(Address)\_\_\_\_\_\_\_\_\_\_\_\_.

Sincerely yours,

\_\_\_\_\_\_\_\_\_\_(Name and Title)\_\_\_\_\_\_\_\_\_\_\_\_

(This notice shall be personally served (obtain signed

acknowledgement) or sent by certified or registered first-class

mail, return receipt requested.)

4/94

EXHIBIT 8-14-2

GUIDEFORM POST-APPROVAL NOTICE TO SITE

OCCUPANTS \-- CONVERSION TO HOMEOWNERSHIP (e.g., HOPE 2)

(Also constitutes Notice of Nondisplacement)

Dear \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_:

On \_\_\_\_\_\_\_\_(Date)\_\_\_\_\_\_\_, the \_\_\_\_\_\_\_\_(Name of

Grantee)\_\_\_\_\_\_\_\_\_ received approval from the U.S. Department of

Housing and Urban Development (HUD) for a \[HOPE 2\] financial grant

to assist eligible persons purchase a unit in the
\_\_\_\_\_\_\_\_\_(Name of

Property)\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

On \_\_\_\_\_\_\_(Date)\_\_\_\_\_\_, you were asked to complete a survey

and informed about our plans to apply for assistance. At the time

of the survey, you indicated that you would like to \[choose one:

purchase a unit in the property/continue to lease a unit in the

property/receive relocation assistance to help you move from the

property permanently.

\[For prospective owners, insert:\]

We will contact you soon to provide more information about

homeownership opportunities. In the meantime, if you have any

questions, please contact \_\_\_\_\_\_\_\_\_(Name)\_\_\_\_\_\_\_\_\_,

\_\_\_\_\_\_\_\_\_(Address)\_\_\_\_\_\_\_\_\_\_, at \_\_\_\_\_(Phone
No.)\_\_\_\_\_\_\_. And if

you have changed your plans, please contact us immediately. Unless

you notify us within 30 days of the date of this letter that you

have changed your mind and wish to relocate, you will not be

eligible for relocation assistance if you later move from the

property.

\[For those remaining as renters, insert:\]

You may remain in the property at a rent that you can afford.

However, it may be necessary for you to relocate temporarily so

that rehabilitation work can be completed. If you are required to

relocate temporarily, we will provide you with reasonable advance

notice of the move and will pay for any reasonable out-of-pocket

expenses associated with your temporary move. No decision has been

made yet about whether or not it will be necessary for your family

to move temporarily.

If you have changed your mind about remaining as a renter, please

contact us immediately. Unless you notify us within 30 days of the

date of this letter that you have changed your plans and wish to

relocate, you will not be eligible for relocation assistance if you

later move from the property.

\[For households choosing to relocate, insert:\]

You will be eligible for relocation assistance if you relocate

within a period of one year from the date of this letter. The

assistance will include referrals to affordable housing, other

advisory services and moving expenses. \_\_\_\_\_\_\_\_\_\_\_ will call
on

you shortly to discuss your moving options and give you more

information about your rights.

\* \* \*

Please remember that you will not be required to move from the

property without your consent, if you continue to follow all of the

requirements of your lease.

We are eager to proceed and hope that we can continue to count on

your cooperation. If you have any questions about the project,

please contact \_\_\_\_\_\_\_\_(Name)\_\_\_\_\_\_,

\_\_\_\_\_\_\_\_\_\_(Address)\_\_\_\_\_\_\_\_\_\_\_, at
\_\_\_\_\_\_(Phone No.)\_\_\_\_.

Sincerely yours,

\_\_\_\_\_\_\_\_(Name and Title)\_\_\_\_\_\_\_\_\_\_

(This notice shall be personally served (obtain signed

acknowledgement) or sent by certified or registered first-class

mail, return receipt requested, to all residents of the property as

soon as the grant agreement is executed.)

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Section 15. Nehemiah Housing Opportunity Grants

8-151. APPLICABILITY. The Nehemiah Housing Opportunity Grants Program
(24

CFR Part 280) is subject to:

a\. The URA and implementing regulations at 49 CFR Part 24. These

requirements are described in Chapters 1 through 6 of this

handbook.

b\. Section 24 CFR 280.207(b). These additional policies are

described in this Section 15.

8-152. DEFINITION OF DISPLACED PERSON. Each \"displaced person\" is

eligible for relocation assistance at URA levels. The term

\"displaced person\" is generally described in Paragraph 1-8.

However, Section 24 CFR 280.207(b) provides the following

additional guidance:

a\. The term \"displaced person\" includes, but may not be limited

to:

\(1\) A person that moves permanently from the real property

after receiving a notice from the property owner (or

person in control of the site) requiring such move, if the

move occurs on or after the date of the submission of the

application to HUD that is later approved.

\(2\) Any person, including a person who moves before the

submission of the application to HUD if either HUD or the

recipient determines that the displacement directly

resulted from acquisition, rehabilitation, or demolition

for the project.

b\. Persons Not Eligible. Notwithstanding the provision of

Paragraph 8-152a, a person does not qualify as a \"displaced

person\" (and is not entitled to relocation assistance at URA

levels), if:

\(1\) The person is excluded under Paragraph 1-8c; or

\(2\) The person has been evicted for serious or repeated

violation of the terms and conditions of the lease or

occupancy agreement, violation of applicable Federal,

State or local law, or other good cause, and HUD

determines that the eviction was not undertaken for the

purpose of evading the obligation to provide relocation

assistance; or

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\(3\) The person moves into the property after the submission of

the application and, before signing a lease and commencing

occupancy, was provided written notice of the project, its

possible impact on the person (e.g., the person may be

displaced, temporarily relocated or suffer a rent

increase) and the fact that the person would not qualify

as a \"displaced person\" (or for any assistance under the

URA or this handbook) as a result of the project.

8-153. DEFINITION OF INITIATION OF NEGOTIATIONS. For purposes of

providing the appropriate notice under Paragraph 2-3b and

determining whether a person displaced from a dwelling qualifies

for a replacement housing payment under Paragraph 3-3 or Paragraph

3-4 (as opposed to paragraph 3-5), the term \"initiation of

negotiations\" means HUD approval of the application.

8-154. APPEAL BY LOWER-INCOME PERSON. Under the Nehemiah Housing

Opportunities Grants Program, a lower-income person (defined in

Paragraph 1-16), who is dissatisfied with the determination of the

recipient on his or her appeal under Paragraph 1-33, may request

HUD to review that determination as described in Paragraph 1-33i.

8-155. COMPLIANCE RESPONSIBILITY OF RECIPIENT.

a\. Certification. Before receiving HUD financial assistance, the

applicant must certify to HUD that it will comply with the URA,

49 CFR Part 24, and 24 CFR 280.207(b). The recipient is

responsible for ensuring compliance with such requirements, as

described in this handbook, notwithstanding any third party\'s

contractual obligation to the recipient to comply with such

provisions.

b\. The cost of required relocation assistance is an eligible

project cost in the same manner and to the same extent as other

project costs. However, such assistance may also be paid for

with funds available from other sources.

c\. The recipient must maintain records in sufficient detail to

demonstrate compliance with the provisions of this handbook, as

described in Chapter 6.

8-156. - 8-160. RESERVED

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

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Section 16. Section 312 Rehabilitation Loans

8-161. APPLICABILITY. The Section 312 Rehabilitation Loan Program is

subject to the following requirements:

a\. The URA and implementing regulations at 49 CFR Part 24. These

requirements are described in Chapters 1 through 6 of this

handbook.

b\. Section 24 CFR 510.52. These additional policies are described in

this Section 16.\*

8-162. MINIMIZING DISPLACEMENT. Consistent with the other goals and

objectives of the Section 312 Rehabilitation Loan Program, the local

processing agency (LPA) shall assure that all reasonable steps to

minimize displacement as a result of a project have been taken.

8-163. TEMPORARY RELOCATION. See policy in Paragraph 24b.\*

8-164. DEFINITION OF DISPLACED PERSON. Each \"displaced person\" is
eligible

for relocation assistance at URA levels. The term \"displaced person\"
is

generally described in Paragraph 1-8. \*However, 24 CFR 510.52 provides

the following additional guidance: \*

a\. The term \"displaced person\" includes, but may not be limited to:

\(1\) A person that moves permanently from the real property after

receiving a notice from the LPA or the property owner that

requires such move; if the move occurs on or after the date

that the property owner (or person in control of the site)

submits the application to the LPA for a loan that is later

approved.

\(2\) Any person including a person who moves before submission of

the loan application if either HUD or the LPA determines that

the displacement directly resulted from acquisition,

rehabilitation, or demolition for the project.

\(3\) A tenant-occupant of a dwelling who moves permanently from the

building/complex after execution of the loan agreement, if the

move occurs before the tenant is provided written notice

offering him or her the opportunity to lease and occupy a

suitable, decent, safe and sanitary dwelling in the same

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building/complex upon completion of the project under

reasonable terms and conditions. Such reasonable terms and

conditions shall include a monthly rent and estimated

average monthly utility costs that do not exceed the greater

of:

\(a\) The tenant\'s monthly rent and estimated average utility

costs before execution of the loan agreement, or

\(b\) 30% of the person\'s average monthly gross income.

\(4\) A tenant-occupant of a dwelling who is required to relocate

temporarily and does not return to the building/complex, if

either:

\(a\) The tenant is not offered payment for all reasonable

out-of-pocket expenses incurred in connection with the

temporary relocation (including the cost of moving to

and from the temporarily occupied unit and any

increased housing costs), or

\(b\) Other conditions of the temporary relocation are not

reasonable.

\(5\) A tenant-occupant of a dwelling who moves from the

building/complex permanently after he or she has been

required to move to another unit in the building/complex, if

either:

\(a\) The tenant is not offered reimbursement for all

reasonable out-of-pocket expenses incurred in

connection with the move, or

\(b\) Other conditions of the move are not reasonable.

b\. Persons Not Eligible. Notwithstanding the provisions of Paragraph

8- 163a a person does not qualify as a \"displaced person\" (and is

not entitled to relocation assistance under the URA or this

handbook), if:

\(1\) The person is excluded under Paragraph 1-8c; or

\(2\) The person moves into the property after the submission

of the application and, before signing a lease and

commencing occupancy, was provided written notice of

the project, its possible impact on the person (e.g.,

the person may be displaced; temporarily relocated or

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suffer a rent increase) and the fact that the person would not

qualify as a \"displaced person\" as a result of the project.

8-165. DEFINITION OF INITIATION OF NEGOTIATIONS. For purposes of
providing

the appropriate notice under Paragraph 2-3b and determining whether a

person displaced from a dwelling qualifies for a replacement housing

payment under Paragraph 3-3 or Paragraph 3-4 (as opposed to paragraph 3-

5), the term initiation of negotiations\" means the execution of the
loan

agreement between HUD and the property owner.

8-166. APPEAL BY LOWER-INCOME PERSON. Under the Section 312
Rehabilitation

Loan Program, a lower-income person (defined in Paragraph 1-16), who is

dissatisfied with the determination of the LPA on his or her appeal

under Paragraph 1-33, may request HUD to review that determination as

described in Paragraph 1-33i.

8-167. APPLICATION OF CDBG\*/HOME\* REQUIREMENTS TO SECTION 312

REHABILITATION LOAN PROGRAM. See policy under Paragraph 8-8.

8-168. COMPLIANCE RESPONSIBILITY OF LPA.

a\. General. The LPA is responsible for ensuring compliance with the

URA, 49 CFR Part 24, and the policies described in this handbook.

b\. The cost of required relocation assistance is an eligible project

cost in the same manner and to the same extent as other project

costs. However, such assistance may also be paid for with funds

available from other sources.

c\. The LPA must maintain records in detail sufficient to demonstrate

compliance with the provisions of this handbook, as described in

Chapter 6. \*The LPA is required to maintain data on the race,

ethnic, gender and disability status of displaced persons.\*

8-169.-8-170. RESERVED

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Section 17. Housing Development Grants (HoDAG)

8-171. APPLICABLE RULES. The Housing Development Grants (HoDAG) Program
is

subject to:

a\. The URA and implementing regulations at 49 CFR Part 24. These

requirements are described in Chapters 1 through 6 of this

handbook.

b\. Section 24 CFR 850.34. These additional policies are described in

this Section 17.\*

8-172. GENERAL POLICIES. The grantee (includes State recipient) shall:

a\. Ensure that the rehabilitation will not cause the displacement of

any very low-income family by a family that is not a very low-

income family.

b\. Consistent with the other goals and objectives of the program,

minimize displacement. To the extent feasible, residential

occupants shall be provided a reasonable opportunity to lease and

occupy a suitable, decent, safe, sanitary and affordable dwelling

unit in the project.

c\. Administer all phases of the HoDAG in a manner that does not result

in discrimination because of race, color, religion, sex, age,

handicap, familial status or national origin. There shall be no

discrimination in the selection of units to be rehabilitated, the

provision of notices, counseling, referrals, other advisory

services or relocation payments.

d\. Adopt and make public a written Tenant Assistance Policy (TAP) that

describes the assistance that will be provided to tenants who

reside in the project and which includes a statement of

nondiscrimination policy consistent with Paragraph 8-172c. The TAP

shall comply with the provisions of this handbook. Each tenant in

the project shall be provided a copy of the TAP.

8-173. DEFINITION OF DISPLACED PERSON. Each \"displaced person\" is
eligible

for relocation assistance at URA levels. The term \"displaced person\"
is

generally described in Paragraph 1-8. \*However, 24 CFR 850.34 provides

the following additional guidance:\*

a\. The term \"displaced person\" includes but may not be limited to:

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1378 CHG-1

\(1\) A person that moves permanently from the real property after

receiving a notice requiring such move, if the move occurs on

or after:

\(a\) If the notice is provided by the property owner, the date

that the property owner (or person in control of the

site) submits a request for assistance to the grantee

that is later approved and funded;

\(b\) If the notice is provided by the grantee, the date of the

firm project commitment to a specific local project.

\(2\) Any person, including a person who moves before the date

described in Paragraph 8-173a(1) that HUD or the grantee

determines was displaced as a direct result of acquisition,

rehabilitation, or demolition for the project.

\(3\) A tenant-occupant of a dwelling unit who moves permanently

from the building/complex after the \"initiation of

negotiations\" (defined in Paragraph 8-174), if the move occurs

before the tenant is provided notice offering him or her the

opportunity to lease and occupy a suitable, decent, safe, and

sanitary dwelling in the same building/complex, under

reasonable terms and conditions, upon the completion of the

project. Such reasonable terms and conditions include a

monthly rent and estimated average monthly utility costs that

do not exceed the greater of:

\(a\) The tenant\'s monthly rent and estimated average monthly

utility costs before the Fran project commitment; or

\(b\) The Total Tenant Payment as determined under 24 CFR

813.107 (also described in Paragraph 7-20), if the tenant

is lower income or 30 percent of gross household income,

if the tenant is not lower income.

\(4\) A tenant-occupant of a dwelling who is required to relocate

temporarily and does not return to the building/complex if

either:

\(a\) The tenant is not offered payment for all reasonable out-

of-pocket expenses incurred in connection with the

temporary relocation (including the cost of moving to and

from the temporarily occupied unit and any increased

housing costs); or

7/92 8-86

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\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\(b\) Other conditions of the temporary relocation are not

reasonable.

\(5\) A tenant-occupant of a dwelling who moves from the

building/complex permanently after he or she has been

required to relocate to another unit in the

building/complex, if either:

\(a\) The tenant is not offered reimbursement for all

reasonable out-of-pocket expenses incurred in

connection with the move; or

\(b\) Other conditions of the move are not reasonable.

b\. Persons Not Eligible. Notwithstanding the provisions of

Paragraph 8-173a(1), a person does not qualify as a \"displaced

person\" (and is not entitled to relocation assistance at URA

levels), if:

\(1\) The person is excluded under Paragraph 1-8c;

\(2\) The person moves into the property after the submission of

the application and, before signing a lease and commencing

occupancy, was provided written notice of the project, its

possible impact on the person (e.g., displacement,

temporary relocation, or a rent increase), and the fact

that the person will not qualify as a \"displaced person\"

as a result of the project.

8-174. DEFINITION OF INITIATION OF NEGOTIATIONS. For purposes of

determining whether a person displaced from a dwelling qualifies

for a replacement housing payment under Paragraph 3-3 or Paragraph

3-4 (rather than Paragraph 3-5), the term \"initiation of

negotiations\" means the firm project commitment to a specific local

project as defined in 24 CFR 850.3.

8-175. APPEAL BY LOWER-INCOME PERSON. Under the HoDAG Program, a

lower-income person (defined in Paragraph 1-16), who is

dissatisfied with the determination of the grantee on his or her

appeal under Paragraph 1-33, may request the HUD Field Office to

review that determination as described in Paragraph 1-33i.

8-176. COMPLIANCE RESPONSIBILITY OF GRANTEE.

a\. Certification. Before HUD approval of a grant, the grantee

(includes State recipient) must certify to HUD that it will

comply with the Uniform Relocation Assistance and Real Property

Acquisition Policies Act of 1970, as amended, and

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

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Federal implementing regulations at 49 CFR Part 24. The

grantee is responsible for ensuring compliance with such

requirements, notwithstanding any third party\'s contractual

obligation to the grantee to comply with these provisions.

b\. The cost of required relocation assistance is an eligible

project cost in the same manner and to the same extent as

other project costs. However, such assistance may also be

paid for with funds available from other sources.

c\. The grantee must maintain records in sufficient detail to

demonstrate compliance with the provisions of this handbook,

as described in Chapter 6.

8-177. - 8-180. RESERVED

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Section 18. Section 8 Loan Management Set-Aside for Projects

with a HUD-Insured or HUD-Held Mortgage; Section 8

Assistance for Disposition of HUD-Owned Projects

8-181. APPLICABILITY.

a\. Programs Covered. This Section provides guidance on the

following programs:

\(1\) Section 8 Loan Management Set-Aside (LMSA) for

Projects with a HUD-Insured or HUD-Held Mortgage

(24 CFR 886, Subpart A).

\(2\) Section 8 Assistance for Disposition of HUD-owned

projects (24 CFR 886, Subpart C).

b\. Rules That Apply. The programs described in Paragraph 8-181a

are subject to the following requirements:

\(1\) The URA and implementing regulations at 49 CFR Part

24\. These requirements are

described in Chapters 1 through 6 of this handbook.

\(2\) Sections 24 CFR 886.113 and 886.338. as

appropriate. These additional policies are

described in this Section 18.

8-182. PROGRAM DESCRIPTIONS.

a\. The Section 8 Loan Management Set-Aside (LMSA) Program

provides special allocations of project-based Housing

Assistance Payments (HAP) under Section 8 of the United

States Housing Act of 1937. The primary purpose of the

program is to reduce claims on the Department\'s insurance

fund by aiding FHA-insured or Secretary-held projects

with serious financial difficulties. Projects eligible

for LMSA assistance include:

\(1\) Existing subsidized or unsubsidized multifamily

residential projects subject to a mortgage insured

under any section of the National Housing Act;

\(2\) Any such project subject to a mortgage that has

been assigned to the Secretary;

\(3\) Any such project acquired by the Secretary and

thereafter sold under a Secretary-held purchase

money mortgage: and

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\(4\) Certain projects for the elderly financed under

Section 202 of the Housing Act of 1959.

b\. The Section 8 Assistance for Property Disposition Program

provides special allocations of project-based Section 8

assistance to ensure that eligible low-income tenants

will not be displaced as a result of the sale of a HUD-owned project.

8-183. MINIMIZING DISPLACEMENT. Consistent with the other goals

and objectives of 24 CFR Part 886, all reasonable steps

shall be taken to minimize the displacement as a result

of a project assisted under the program.

8-184. TEMPORARY RELOCATION. See the policies in Paragraph 2-4.

8-185. DEFINITION OF DISPLACED PERSON. Each \"displaced person\"

is eligible for relocation assistance at URA levels. The

term \"displaced person\" is generally described in

Paragraph 1-8.

a\. The term \"displaced person\" includes (but may not be

limited to):

\(1\) A person that moves from the real property

permanently after receiving a notice from the Owner

requiring such move, if the move occurs on or after

the date of the submission of the application for

assistance that is later approved.

\(2\) Any person, including a person who moves before the

date described in Paragraph 8-185a(1), that HUD

determines was displaced as a direct result of

acquisition, rehabilitation or demolition for the

assisted project.

\(3\) Any tenant-occupant of a dwelling who moves

permanently from the building/complex after the

\"initiation of negotiations\" (described in

Paragraph 8-186), if the move occurs before the

tenant is provided written notice offering him or

her the opportunity to lease and occupy a suitable,

decent, safe, and sanitary dwelling in the same

building/complex, under reasonable terms and

conditions, upon completion of the project. Such

reasonable terms and conditions include a monthly

rent and estimated average monthly utility costs

that do not exceed the greater of:

\(a\) The tenant\'s monthly rent before execution of

the HAP contract and estimated average monthly

utility costs; or

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\(b\) The \"total tenant payment\" as determined under

24 CFR 813.107. (The total tenant payment is

also described in Paragraph 7-20.)

\(4\) A tenant-occupant of a dwelling who is required to

relocate temporarily for the project, but does not

return to the building/complex, if either:

\(a\) The tenant is not offered payment for all

reasonable out-of-pocket expenses incurred in

connection with the temporary relocation

(including the cost of moving to and from the

temporarily occupied unit and any increase in

housing costs); or

\(b\) Other conditions of the temporary relocation

are not reasonable.

\(5\) A tenant-occupant of a dwelling who moves from the

building/complex permanently after he or she has

been required to relocate to another unit in the

building/complex in order to carry out the project,

if either:

\(a\) The tenant is not offered reimbursement for

all reasonable out-of-pocket expenses incurred

in connection with the move, or

\(b\) Other conditions of the relocation are not

reasonable.

b\. Persons Not Eligible. Notwithstanding the provisions of

Paragraph 8-185a, a person does not qualify as a

\"displaced person\" (and is not entitled to relocation

assistance at URA levels) if:

\(1\) The person is excluded under Paragraph 1-8c; or

\(2\) The person has been evicted for serious or repeated

violation of the terms and conditions of the lease

or occupancy agreement, violation of applicable

Federal, State or local law, or other good cause,

and HUD determines that the eviction was not

undertaken for the purpose of evading the

obligation to provide relocation assistance; or

\(3\) The person moves into the property after the date

described in Paragraph 8-185a(1) and, before

signing a lease and commencing occupancy, was

provided written notice of the project, its

possible impact on the person (e.g., the person may

be displaced, temporarily relocated or suffer a

rent increase), and the fact that the person would

not qualify as a \"displaced person\" as a result of

the project.

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8-186. DEFINITION OF INITIATION OF NEGOTIATIONS. For purposes

of providing the appropriate notice under Paragraph 2-3b

and determining whether a person displaced from a

dwelling qualifies for a replacement housing payment

under Paragraph 3-3 or Paragraph 3-4 (as opposed to

Paragraph 3-5), the term \"initiation of negotiations\"

means the execution of the HAP Contract between the Owner

and HUD.

8-187. APPEAL BY LOWER-INCOME PERSON. Under the Section 8 LMSA

and the Section 8 Assistance for Property Disposition

Programs, a lower-income person (defined in Paragraph 1-16),

who is dissatisfied with the determination of the

Owner on his or her appeal under Paragraph 1-33, may

request HUD to review that determination, as described in

Paragraph 1-33i.

8-188. COMPLIANCE RESPONSIBILITY OF OWNER.

a\. Certification. As a condition for the award of a HAP

contract, the Owner must certify to HUD that it will

comply with the URA and Federal implementing regulations

at 49 CFR Part 24. The Owner is responsible for ensuring

compliance with such requirements, as described in this

handbook, notwithstanding any third party\'s contractual

obligation to the Owner to comply with these provisions.

b\. The cost of required relocation assistance is an eligible

project cost in the same manner and to the same extent as

other project costs. The cost of required relocation

assistance may, however, also be paid from local funds or

funds available from other sources.

c\. The Owner must maintain records in detail sufficient to

demonstrate compliance with all required statutory and

regulatory provisions. These recordkeeping requirements

are described in Chapter 6 of this handbook.

8-189. - 8-190. RESERVED

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Section 19. Flexible Subsidy Program

8-191. PURPOSE OF FLEXIBLE SUBSIDY PROGRAM. The Flexible Subsidy Program

(24 CFR Part 219) provides assistance for financially troubled,

privately owned, federally assisted multifamily housing. The

assistance may be provided to correct deferred maintenance, make

capital improvements, improve management or correct certain

financial deficiencies. Rental or cooperative housing projects

under the following programs may be assisted under the Flexible

Subsidy Program:

a\. Section 236 (interest reduction); Section 221(d)(5) (commonly

known as 221(d)(3) BMIR); or the Rent Supplement Program. (See

also Section 22 of this Chapter.)

b\. Section 202 Loans for Housing for the Elderly or Handicapped,

where construction was completed more than 15 years before the

Flexible Subsidy assistance is provided. (See also Section 12

of this Chapter.)

c\. Certain projects under the Section 23 Housing Assistance

Payments Program. (See also Section 22 of this Chapter.)

d\. Certain projects assisted under the Section 8 Program after

conversion from Section 236 or Rent Supplement Programs. (See

also Sections 13 and 22 of this Chapter.)

e\. Certain projects assisted under the programs listed in

Paragraphs 8-191a and b above before they were acquired by HUD

and then sold by HUD subject to a HUD-held or HUD-insured

mortgage.

8-192. RULES THAT APPLY. The Flexible Subsidy Program is subject to the

URA and implementing regulations at 49 CFR Part 24. (These

requirements are explained in Chapters 1 through 6 of this

handbook.) The Program is also subject to 24 CFR 219.135, which

contains additional policies that are described in this Section 19.

Given the nature of the uses for which Flexible Subsidy assistance

may be provided, however, no displacement as a direct result of

rehabilitation, demolition or acquisition for an assisted project

is anticipated. Nonetheless, it is important that the property

owner notify the residents about the project, as described in

Paragraph 8-193, and ensure that the project is carried out in a

reasonable manner. NOTE: Tenants occupying units which may be

affected by a project under the Flexible Subsidy Program may be the

beneficiaries of a project-based housing subsidy provided under

another HUD-assisted program (see Paragraph 8-191). Such a

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subsidy constitutes \"HUD financial assistance\" (defined in

Paragraph 1-14) that brings with it the protections of the URA

and related program rules (described elsewhere in this Chapter

8).

8-193. NOTICE TO RESIDENTS. The property owner must give the residents

timely notice about the project and its impact on them.

Ordinarily, a single consolidated notice should meet the

requirements of Paragraphs 2-3a(1) and 2-3b(1). For residents who

will not be inconvenienced, this notice may be served by posting it

in an accessible location and providing a copy to the tenants\'

representative.

8-194. DEFINITION OF DISPLACED PERSON. The term \"displaced person\" is

generally described in Paragraph 1-8. However, 24 CFR 219.135

provides the following additional guidance:

a\. The term \"displaced person\" includes, but may not be limited

to:

\(1\) A person that moves permanently from the real property

after receiving a notice from the property owner that

requires such move, if the move occurs on or after the

date that the owner submits to HUD an application for

assistance that is later approved and funded.

\(2\) Any person, including a person who moves before the

submission of the application to HUD, if HUD or the owner

determines that the displacement directly resulted from

acquisition, rehabilitation, or demolition for the

project.

\(3\) Any tenant-occupant of a dwelling unit who moves

permanently from the building/complex after execution of

the agreement between the property owner and HUD, if the

move occurs before the tenant is provided written notice

offering him or her the opportunity to lease and occupy a

suitable, decent, safe, and sanitary dwelling in the same

building/complex, under reasonable terms and conditions,

upon completion of the project. NOTE: If the project

will have little or no negative impact on the tenant

(e.g., the rehabilitation will result in no disruption and

no increase in rent), this notice may be served by posting

it in accessible location(s) and supplying a copy, if

applicable, to the tenants\' representative.

\(4\) A tenant-occupant of a dwelling unit who is required to

relocate temporarily but does not return to the

building/complex, if either:

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\(a\) The tenant is not offered payment for all reasonable

out-of-pocket expenses incurred in connection with

the temporary relocation (including the cost of

moving to and from the temporarily occupied unit and

any increased housing costs), or

\(b\) Other conditions of the temporary relocation are not

reasonable.

\(5\) A tenant-occupant of a dwelling who moves from the

building/complex, permanently, after he or she has been

required to move to another unit in the building/complex

in order to carry out the project, if either:

\(a\) The tenant is not offered reimbursement for all

reasonable out-of-pocket expenses incurred in

connection with the move, or

\(b\) Other conditions of the move are not reasonable.

b\. Persons Not Eligible. Notwithstanding the provisions of

Paragraph 8-193a, a person does not qualify as a \"displaced

person\" (and is not entitled to relocation assistance at URA

levels), if:

\(1\) The person is excluded under Paragraph 1-8c; or

\(2\) The person has been evicted for serious or repeated

violation of the terms and conditions of the lease or

occupancy agreement, violation of applicable Federal,

State or local law, or other good cause, and HUD

determines that the eviction was not undertaken for the

purpose of evading the obligation to provide relocation

assistance; or

\(3\) The person moves into the property after the submission of

the application and, before signing a lease and commencing

occupancy, was provided written notice of the project, its

possible impact on the person (e.g., the person may be

displaced, temporarily relocated or suffer a rent

increase), and the fact that the person would not qualify

as a \"displaced person\" as a result of the project.

8-195. TEMPORARY RELOCATION. Although no displacement is anticipated,

temporary relocation may occur under the Flexible Subsidy Program.

Such temporary relocation is subject to the policies in Paragraph

2-4b.

8-196. APPEAL BY LOWER INCOME PERSON. Under the Flexible Subsidy Program

(and the programs listed in Paragraph 8-191), a lower-income person

(defined in

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Paragraph 1-16), who is dissatisfied with the determination of the

Owner on his or her appeal under Paragraph 1-33, may request HUD to

review that determination, as described in Paragraph 1-33i.

8-197. COMPLIANCE RESPONSIBILITY OF OWNER.

a\. Certification. Before receiving HUD financial assistance, the

property owner must certify to HUD that it will comply with the

URA, 49 CFR Part 24 (and, when published, the applicable

section of the program regulations). The property owner is

responsible for ensuring compliance with such requirements, as

described in this handbook, notwithstanding any third party\'s

contractual obligation to the property owner to comply with

such provisions.

b\. The cost of required relocation assistance is an eligible

project cost in the same manner and to the same extent as the

other project costs. However, such assistance may also be paid

for with funds available from other sources.

c\. The property owner must maintain records in sufficient detail

to demonstrate compliance with the provisions of this handbook,

as described in Chapter 6.

8-198. - 8-200. RESERVED

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Section 20. Disposition of HUD-Acquired Single Family Property

8-201. APPLICABILITY OF THE URA.

a\. Mutual Mortgage Insurance and Rehabilitation Loans

Program (24 CFR Part 203). As described elsewhere in this

Handbook, only displacement that results from

rehabilitation, demolition, or acquisition for a Federal

or federally assisted program or project is subject to

the URA. HUD insurance under the Mutual Mortgage

Insurance and Rehabilitation Loans Program is not

\"federal financial assistance\" within the meaning of the

URA, and, therefore, it does not trigger the URA. Nor

does such insurance trigger any relocation assistance

requirement under any HUD program regulations.

b\. Disposition of HUD-Acquired Single Family Property (24

CFR Part 291). The acquisition and disposition of HUD-

acquired property in accordance with the provisions of 24

CFR Part 291 do not trigger the URA. However, if the

HUD-owned property is acquired for a federally assisted

project, the provisions of the URA would be triggered.

In such case, however, the grantee receiving the Federal

financial assistance must certify compliance with the

URA, 49 CFR Part 24, and applicable program regulations

under the program for which the purchase is made and/or

the rehabilitation or demolition will be carried out.

8-202. POLICIES APPLICABLE TO OCCUPIED PROPERTY UNDER 24 CFR

PART 291. For policies and procedures governing the

acquisition of occupied property, refer to HUD Handbook

4310.5 REV 1, Property Disposition Handbook, One- to

Four-Family Properties. This handbook provides criteria

for permitting temporary occupancy of properties to be

conveyed to the Department.

8-203.- 8-210. RESERVED

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Section 21. HUD-Owned and HUD-Managed Multifamily Properties

(24 CFR Part 290)

8-211. APPLICABILITY.

a\. Programs Covered. This section covers:

\(1\) All HUD-owned multifamily properties (five or more

units), and

\(2\) All multifamily rental housing properties subject

to a HUD-held mortgage that is either delinquent,

under workout agreement, or in foreclosure by HUD.

b\. Rules That Apply. The programs described in Paragraph 8-21

la are subject to the following requirements:

\(1\) The URA and implementing regulations at 49 CFR Part

24 apply only under the conditions described in

Paragraph 8-214a. These requirements are described

in Chapters 1 through 6 of this handbook.

\(2\) Section 24 CFR 290.7. These additional requirements

are described in this Section 21.

8-212. MINIMIZING DISPLACEMENT. Consistent with the other goals

and objectives of 24 CFR Part 290, all reasonable steps

shall be taken to minimize the displacement of persons

(includes families, individuals, businesses, and

nonprofit organizations) from properties covered by this

Section 21.

8-213. RELOCATION ASSISTANCE AT NON-URA LEVELS. Whenever the

displacement of a residential tenant (family or

individual) occurs in connection with the management or

disposition of a multifamily property, but is not subject

to the URA or Paragraph 8-214 (e.g., results from HUD

repair or demolition of all or a part of a HUD-owned

multifamily property, the foreclosure of a HUD-held

mortgage on a rental housing property or the sale of a

HUD-owned property without Federal financial assistance),

the displaced tenant shall be eligible for the following

relocation assistance:

a\. Advance written notice of the expected displacement. The

notice shall be provided as soon as feasible, describe

the assistance and the procedures for

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obtaining the assistance, and contain the name, address

and phone number of an official responsible for providing

the assistance.

b\. Other advisory services, as appropriate, including

counseling, referrals to suitable, decent, safe, and

sanitary replacement housing, and an explanation of the

person\'s fair housing rights.

c\. Payment for actual reasonable moving expenses, as

determined by HUD.

d\. The opportunity to relocate to a suitable, decent, safe,

and sanitary dwelling unit in a HUD-owned multifamily

property, in a public housing project, or in another HUD

subsidized rental housing property, if the person meets

applicable eligibility requirements.

e\. Assistance under the Section 8 Rental Certificate Program

or the Section 8 Rental Voucher Program, if the

assistance is available and the person meets applicable

eligibility requirements.

f\. Such other Federal, State or local assistance as may be

available.

8-214. RELOCATION ASSISTANCE AT URA LEVELS.

a\. General. Whenever assistance under 24 CFR Part 886,

Subpart C (Section 8 Loan Management Set-Aside), or other

Federal financial assistance is provided in connection

with the purchase by a third party of a multifamily

property, any persons displaced by the acquisition are

eligible for relocation assistance at the levels

described in, and in accordance with the requirements of,

the Uniform Relocation Assistance and Real Property

Acquisition Policies Act of 1970, as amended (URA),

implementing regulations at 49 CFR Part 24, and this

handbook. A \"displaced person\" must be provided

relocation assistance at URA levels as described in

Chapters I through 6 of this handbook.

b\. Definition of Displaced Person. For purposes of this

Paragraph 8-214, the term \"displaced person\" is generally

described in Paragraph 1-8. It includes, but may not be

limited to:

\(1\) A person that moves permanently from the real

property after receiving a notice requiring such

move, if the move occurs on or after the date of

the transfer of title to the purchaser.

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\(2\) Any person that HUD determines was displaced as a

direct result of acquisition, rehabilitation, or

demolition for a federally assisted project.

\(3\) A tenant-occupant of a dwelling unit who moves

permanently from the building/complex after the

transfer of title to the purchaser, if the move

occurs before the tenant is provided written notice

offering him or her the opportunity to lease and

occupy a suitable, decent, safe, and sanitary

dwelling in the same building/complex, under

reasonable terms and conditions, upon completion of

the project.

NOTE: If the project will have little or no

negative impact on the tenant (e.g., the

rehabilitation will result in no disruption and no

increase in rent), the notice specified in this

paragraph may be served by posting it in accessible

locations) and supplying a copy, if applicable, to

the tenants\' representative.

\(4\) A tenant-occupant of a dwelling who is required to

relocate temporarily for the project, but does not

return to the building/complex, if either:

\(a\) The tenant is not offered payment for all

reasonable out-of-pocket expenses incurred in

connection with the temporary relocation

(including the cost of moving to and from the

temporarily occupied unit and any increased

housing costs); or

\(b\) Other conditions of the temporary relocation

are not reasonable.

\(5\) A tenant-occupant of a dwelling who moves from the

building/complex permanently after he or she has

been required to move to another unit in the

building/complex in order to carry out the project,

if either:

\(a\) The tenant is not offered reimbursement for

all reasonable out-of-pocket expenses incurred

in connection with the move; or

\(b\) Other conditions of the move are not

reasonable.

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c\. Persons Not Eligible. Notwithstanding the provisions of

Paragraph 8-214b(1), a person does not qualify as a

\"displaced person\" (and is not eligible for relocation

assistance), if:

\(1\) The person is excluded under Paragraph 1-8c;

\(2\) The person has been evicted for serious or repeated

violation of the terms and conditions of the lease

or occupancy agreement, violation of applicable

Federal, State or local law, or other good cause,

and HUD determines that the eviction was not

undertaken for the purpose of evading the

obligation to provide relocation assistance;

\(3\) The person moves into the property after the

transfer of title to the purchaser; or

\(4\) HUD determines that the person was not displaced as

a direct result of acquisition, rehabilitation or

demolition for an assisted project.

d\. Definition of Initiation of Negotiations. For purposes

of providing the appropriate notice under Paragraph 2-3b

and determining whether a person displaced from a

dwelling qualifies for a replacement housing payment

under Paragraph 3-3 or Paragraph 3-4 (as opposed to

paragraph 3-5), the term \"initiation of negotiations\"

means the transfer of title to the purchaser.

8-215. TEMPORARY RELOCATION (ALL PROJECTS). Residential

tenants, who will not be required to move permanently for

the project, but who must relocate temporarily (e.g., to

permit property repairs), shall be provided:

a\. Reimbursement for all reasonable out-of-pocket expenses

incurred in connection with the temporary relocation,

including the cost of moving to and from the temporary

housing and any increase in monthly rent or utility

costs. The party required to provide this reimbursement

may, at its option, perform the required services (e.g.,

moving the tenant) or pay for such services.

b\. Appropriate advisory services, including reasonable

advance written notice of:

\(1\) The date and approximate duration of the temporary

relocation;

\(2\) The suitable, decent, safe, and sanitary housing to

be made available for the temporary period;

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\(3\) The terms and conditions under which the tenant may

lease and occupy a suitable, decent, safe, and

sanitary dwelling in the building/complex following

completion of the repairs; and

\(4\) The right to the assistance provided under

Paragraph 8-215a.

8-216. APPEALS. If a person disagrees with the purchaser\'s

determination concerning the person\'s eligibility for

relocation assistance or the amount of assistance for

which the person is eligible, the person may file a

written appeal of that determination with the

owner/purchaser as described in Paragraph 1-33. A person

who is dissatisfied with the owner/purchaser\'s

determination on his or her appeal may submit a written

request for review of that decision to the HUD Field

Office responsible for administering the URA in the

area/community, as described in Paragraph 1-33i.

8-217. COMPLIANCE RESPONSIBILITY.

a\. Certification of Compliance. Whenever HUD sells a

property, HUD shall require the purchaser to certify to

HUD that it will comply with the Uniform Relocation

Assistance and Real Property Acquisition Policies Act of

1970, as amended, implementing regulations at 49 CFR Part

24 and 24 CFR 290.7 and this handbook. The purchaser is

responsible for ensuring compliance with such

requirements, notwithstanding any third party\'s

contractual obligation to the purchaser to comply with

these provisions.

b\. HUD may require the purchaser to pay for the cost of

assistance required by this Section 21.

c\. The purchaser must maintain records in detail sufficient

to demonstrate compliance with all required statutory and

regulatory provisions. These recordkeeping requirements

are described in Chapter 6 of this handbook.

8-218. - 8-220. RESERVED

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Section 22. Others Project-Eased Rental Assistance Programs

8-221. APPLICABILITY.

a\. Programs Covered. This section provides guidance with respect to

the following programs:

\(1\) Section 215 Rent Supplement Payments (24 CFR \*215.80)\*.

\(2\) Section 221(d)(3) Multifamily Rental for Moderate-Income

Families (24 CFR \*221.797)\*.

\(3\) Section 236 Mortgage Insurance and Interest Reduction Payments

for Rental Projects (24 CFR \*236.1001)\*.

\(4\) Section 8 Housing Assistance Program for New Construction (24

CFR \*880.209)\*.

\(5\) Section 8 Housing Assistance Program for Substantial

Rehabilitation (24 CFR\*881.209)\*.

\(6\) Section 8 Housing Assistance Payments Program \-- State Housing

Agencies (24 CFR \*883.311)\*.

\(7\) Section 8 Housing Assistance Payments Program \-- New

Construction Set-Aside for Section 515 Rural Rental Housing

Projects (24 CFR \*884.112)\*.

\(8\) Section 23 Housing Assistance Payments Program \-- New

Construction and Substantial Rehabilitation (24 CFR

\*900.207)\*.

b\. Rules That Apply. HUD no longer funds new projects under the

housing programs listed in Paragraph 8-221a, but continues to

provide project-based subsidies for existing projects in order to

make the housing affordable to lower-income occupants. These

project-based subsidies constitute \"HUD financial assistance\"

(defined in Paragraph 1-14), and displacement as a direct result of

rehabilitation, demolition or acquisition for such \"HUD-assisted

projects\" is subject to:

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\(1\) The URA and implementing regulations at 49 CFR Part 24. These

requirements are described in Chapters 1 through 6 of this

handbook; and

\* (2) Sections 24 CFR 215.80, 221.795, 236.1001, 880.209, 881.209

883.311, 884.112 and 900.105. These additional policies are

described in this Section 22.\*

8-222. DEFINITION OF DISPLACED PERSON. Each \"displaced person\" is
eligible

for relocation assistance at URA levels. The term \"displaced person\"
is

generally described in Paragraph 1-8.

a\. The term \"displaced person\" includes (but may not be limited to):

\(1\) A tenant-occupant of a dwelling who moves permanently from the

building/complex after the Owner (includes PHA-owner) executes

the agreement covering the rehabilitation, demolition or

acquisition if the move occurs before the tenant is provided

written notice offering him or her the opportunity to lease

and occupy a suitable, decent, safe, and sanitary dwelling in

the same building/complex, under reasonable terms and

conditions, upon completion of the project. Such reasonable

terms and conditions shall include a monthly rent and

estimated average monthly utility costs that do not exceed the

greater of:

\(a\) The tenant\'s monthly rent before execution of the

agreement and estimated average utility costs, or

\(b\) The \"total tenant payment\" as determined under 24 CFR

813.107 (also described in Paragraph 7-20), if the tenant

is lower-income,or 30% of gross household income, if the

tenant is not lower-income.

NOTE: If the project will have little or no negative impact on

the tenant (e.g., the rehabilitation will result in no

disruption and no increase in rent), the notice specified in

this paragraph may be served by posting it in accessible

location(s) and supplying a copy, if applicable, to the

tenants\' representative.

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\(2\) A tenant-occupant of a dwelling who is required to

relocate temporarily for the project and does not return

to the building/complex, if either:

\(a\) The tenant is not offered payment for all reasonable

out-of-pocket expenses incurred in connection with

the temporary relocation (including the cost of

moving to and from the temporarily occupied unit and

any increased housing costs), or

\(b\) Other conditions of the temporary relocation are not

reasonable.

\(3\) A tenant-occupant of a dwelling who moves from the

building/complex permanently after he or she has been

required to move to another unit in the building/complex

if either:

\(a\) The tenant is not offered reimbursement for all

reasonable out-of-pocket expenses incurred in

connection with the move, or

\(b\) Other conditions of the move are not reasonable.

\(4\) Any person, including a person who moves before or after

the Owner\'s execution of the agreement covering the

rehabilitation, demolition or acquisition, if HUD or the

Owner (includes PHA-owner) determines that the person was

displaced as a direct result of acquisition,

rehabilitation, or demolition for the assisted project.

b\. Persons Not Eligible. Notwithstanding the provisions of

Paragraph 8-222a, a person does not qualify as a \"displaced

person\" (and is not entitled to relocation assistance at URA

levels), if:

\(1\) The person is excluded under Paragraph 1-8c; or

\(2\) The person has been evicted for serious or repeated

violation of the terms and conditions of the lease or

occupancy agreement, violation of applicable Federal,

State or local law, or other good cause, and HUD

determines that the eviction was not undertaken for the

purpose of evading the obligation to provide relocation

assistance; or

\(3\) The person moves into the property after the Owner

executes the agreement covering the rehabilitation,

demolition or acquisition and, before signing a lease and

commencing occupancy, was provided written

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notice of the project, its possible impact on the person

(e.g., the person may be displaced, temporarily relocated

or suffer a rent increase) and the fact that the person

would not qualify as a \"displaced person\" as a result of

the project.

8-223. DEFINITION OF INITIATION OF NEGOTIATIONS. For purposes of

determining whether a person displaced from a dwelling qualifies

for a replacement housing payment under Paragraph 3-3 or Paragraph

3-4 (as opposed to Paragraph 3-5), the term \"initiation of

negotiations\" means the execution of the agreement covering the

rehabilitation, demolition, or acquisition.

8-224. APPEAL BY LOWER-INCOME PERSON. Under the programs listed in

Paragraph 8-221a, a lower-income person (defined in Paragraph

1-16), who is dissatisfied with the determination of the Owner

(includes PHA) on his or her appeal under Paragraph 1-33, may

request HUD to review that determination, as described in Paragraph

1-33i.

8-225. COMPLIANCE RESPONSIBILITY OF OWNER.

a\. Certification. The Owner must certify to HUD that it will

comply with the URA, 49 CFR Part 24, and the pertinent section

in the program rule. The Owner is responsible for ensuring

compliance with such requirements, as described in this

handbook, notwithstanding any third party\'s contractual

obligation to the Owner to comply with such provisions.

b\. The cost of required relocation assistance is an eligible

project cost in the same manner and to the same extent as the

other project costs. However, such assistance may also be paid

for with funds available from other sources.

c\. The Owner must maintain records in detail sufficient to

demonstrate compliance with the provisions of this handbook, as

described in Chapter 6.

8-226. - 8-230. RESERVED

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Section 23. Prepayment of Low Income Housing Mortgages

8-231. PROGRAM DESCRIPTION.

a\. Purpose. The Prepayment of Low Income Housing Mortgages

Program (24 CFR Part 248) implements Title VI of the

National Affordable Housing Act of 1990 and provides for

the preservation of eligible, privately owned, low-income

multifamily housing properties. It also provides an

opportunity for residents and other qualified purchasers

to purchase the project through resident homeownership

programs. Under the Prepayment of Low Income Housing

Mortgages Program, an owner may prepay a HUD-insured

mortgage or voluntarily terminate a mortgage insurance

contract. When there is a permissible prepayment

(described in Paragraph 8-231d), the tenants of the

project may purchase it under a resident homeownership

program.

b\. Notice of Intent.

\(1\) Submission. Not earlier than 24 months before

becoming eligible to prepay the mortgage, the owner

must submit an Initial Notice of Intent to the

Federal Housing Commissioner (Commissioner), if the

owner wishes to:

\(a\) Prepay the HUD-insured mortgage or terminate

the mortgage insurance contract;

\(b\) Extend the existing low-income affordability

restrictions, retaining the property; or

\(c\) Transfer the housing to a qualified purchaser

who agrees to continue the low-income

affordability restrictions on the property.

\(2\) The Initial Notice of Intent shall contain

information about the property and the mortgage and

shall include a letter to tenants explaining the

owner\'s plans and the impact on tenants. If the

owner proposes to transfer the project to a

qualified purchaser, a second Notice of Intent

shall be submitted within 30 days after receiving

appraisal information from the Commissioner.

\(3\) If the project is eligible, the Commissioner shall

provide the owner with instructions for completing

a Plan of Action (see Paragraph 8-23 1 c).

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c\. Plan of Action. Based on the instructions of the

Commissioner, the owner and purchaser shall jointly

submit to the Commissioner a Plan of Action (POA).

Tenants seeking to purchase the project shall form a

resident council and submit a Resident Homeownership Plan

of Action. The owner shall notify the tenants of the

project about the POA by posting in each occupied

building a summary of the POA and by delivery of a copy

of the POA to the tenant representative, if any.

d\. Permissible Payment. The low-income affordability

restrictions on a project can be terminated through a

permissible prepayment pursuant to 24 CFR 248.169. A

permissible prepayment may occur when:

\(1\) An owner who submitted a second Notice of Intent to

sell is unable to sell the project because it did

not receive a bona fide offer or it accepted a bona

fide offer that failed through no fault of the

owner; or

\(2\) The POA of an owner who intends to keep the project

is approved by HUD, but HUD does not provide the

assistance approved in such POA within the 15-month

period beginning on the date of final approval of

the POA; or

\(3\) There is a voluntary or mandatory sales transaction

and HUD approves the POA but does not provide the

incentives in the POA by the earlier of:

\(i\) For projects where the POA was approved later

than 20 years after final endorsement, 2

months after the beginning of a new fiscal

year or 6 months after final approval.

\(ii\) For projects where the POA was approved within

20 years after final endorsement, 2 months

after the beginning of a new fiscal year or 9

months after POA approval.

e\. Other Payments. A POA may be approved to prepay a

Resident Council\'s purchase of a project under the

Resident Homeownership Program.

8-232. DISPLACEMENT POLICY.

a\. No person may be displaced from his or her dwelling as a

result of assistance for a project, i.e., to a property

owner or purchaser, provided under the Prepayment of Low

Income Housing Mortgages Program. This does not,

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however, preclude termination of tenancy for cause as

described in Paragraph 1-8c(l). A tenant displaced as a

result of a permissible prepayment (see Paragraph 8-23

Id) is entitled to the relocation assistance described in

Paragraph 8-233. (Permissible prepayments do not involve

assistance to property owners or purchasers.)

b\. If a project is assisted with Federal funds, a violation

of the displacement prohibition will trigger an

obligation to provide the displaced person with

relocation assistance in accordance with the URA and

implementing requirements described in Chapters I through

6 of this handbook.

c\. If no Federal funds are provided, a violation of the

displacement prohibition triggers the obligation to

provide the relocation assistance described in Paragraph

8-233.

8-233. RELOCATION ASSISTANCE. As described in Paragraph 8-232,

a tenant may not be displaced except as a result of a

permissible prepayment, in which event the tenant is

entitled to the relocation assistance described in this

Paragraph. However, a tenant may elect to relocate

voluntarily in connection with the approval of a POA to:

\(1\) prepay the mortgage or terminate the insurance

contract; or (2) sell the project to a resident council

under a resident homeownership program. Such tenants

shall also be offered at least the following relocation

assistance:

a\. Advisory Services. These include timely notice of

available assistance, counseling (to include fair housing

counseling) and referrals to suitable, decent, safe and

sanitary replacement housing. Whenever possible,

minority persons shall be given referrals to a variety of

locations, including locations outside of areas of

minority concentration.

b\. Payment for Actual Reasonable Moving Expenses. Eligible

expenses are described in Paragraph 3-2a.

c\. Replacement Housing Assistance. This may be provided

through public housing or other HUD-subsidized rental

housing, such as Section 8 rental certificates of

vouchers, if the tenant is eligible.

8-234. RIGHT TO CONTINUED OCCUPANCY.

a\. Special needs tenants and tenants located in low-vacancy

areas (defined in 24 CFR 248. 1 0 1) must be allowed to

remain in a project for a period of 3 years from the date

of mortgage prepayment or mortgage insurance termination.

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b\. Rents may not be increased to levels above those existing

at the time of prepayment or mortgage insurance

termination, except for rent increases made necessary by

increased operating and utility costs.

c\. If tenant is displaced at the end of the 3-year period,

or elects to relocate during the 3-year period, he/she

shall be entitled to the relocation assistance provided

under Paragraph 8-233a. Displacement may result from a

notice to vacate or from excessive rent charges.

8-235. COMPLIANCE RESPONSIBILITY OF OWNERS AND RESIDENT

COUNCILS.

a\. General. Owners and Resident Councils must comply with

the policies described in this section and shall ensure

such compliance, notwithstanding any third party\'s

contractual obligation to the Owner or Resident Council

to comply with these provisions. HUD will hold Owners

and Resident Councils responsible for compliance and will

take any necessary corrective action against the Owner or

Resident Council.

b\. Cost of required relocation assistance.

\(1\) Resident Homeownership Program. The Resident

Council may pay up to 100 percent of the costs of

relocation assistance when a tenant elects to move

under a resident homeownership program.

\(2\) Permissible Prepayments. A minimum of 50 percent

of the cost of required relocation assistance shall

be paid by the Owner unless HUD increases such

percentage because State or local law requires a

higher payment. Additional assistance may paid for

with funds available from other sources, such as

the Community Development Block (CDBG) Program. An

Owner or Resident Council may contact the local

community development agency to request CDBG

assistance.

c\. The Owner and Resident Council must maintain records in

sufficient detail to demonstrate compliance with the

provisions of this handbook, as described in Chapter 6.

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