U.S. Department of Housing and Urban Development

Community Planning and Development

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Special Attention of:

**Notice**: CPD-94-16

All Regional Administrators Issued: May 25, 1994

All Field Office Managers Expires: May 25, 1995

Regional Directors for CPD

CPD Division Directors

All HOME Participating Jurisdictions Cross References: 24 CFR Parts

91, 92 and 570

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**Subject**: HOME Program; Residential Antidisplacement and Relocation
Assistance Plan

1.  **BACKGROUND.**

    a.  [Legislation]{.underline}. On October 28, 1992, the President
        approved the Housing and Community Development Act of 1992
        (Public Law 102-550) (1992 Act). Section 220(b) of the 1992 Act
        amended Section 105(b) of the Cranston-Gonzalez National
        Affordable Housing Act (42 U.S.C. 12705(b)) to require a
        participating jurisdiction (PJ) to certify as part of its
        Comprehensive Housing Affordability Strategy (CHAS) that it is
        following a Residential Antidisplacement and Relocation
        Assistance Plan (Plan) under its HOME Investment Partnerships
        Program (HOME) that requires the same actions and provides the
        same rights as the Plan required for the Community Development
        Block Grant (CDBG) Program under section 104(d) of the Housing
        and Community Development Act of 1974 (1974 Act).

    b.  [Regulations]{.underline}. The requirement that a PJ certify
        that it is following a Plan under the HOME Program was
        incorporated into the CHAS regulation (24 CFR Part 91) in a
        final rule published March 12, 1993 (58 FR 13686). However, the
        Department has not yet published a regulation establishing
        specific Plan requirements for the HOME Program.

2.  **POLICY**. The certification and Plan are required, even if the
    PJ\'s HOME-assisted projects will not result in the demolition or
    conversion of a low/moderate-income dwelling. Until such time as HUD
    publishes a regulation describing specific Plan requirements for the
    HOME Program, a PJ with a CDBG grant must follow the Plan currently
    applicable to its CDBG Program or a Plan identical to its CDBG Plan.
    PJs (e.g., HOME consortia) that are not CDBG grantees, must
    establish and follow a Plan that meets the requirements of the
    applicable CDBG regulation (24 CFR 570.606(c) for local
    jurisdictions and §570.488(c) for States).

3.  **EFFECTIVE DATE.** For the HOME Program, the requirements of the
    Plan became effective upon the submission of the PJ\'s FY 1994 CHAS.
    The Plan applies to every new commitment (defined in 24 CFR 92.2) of
    HOME funds, including FY 1992 or 1993 funds, that occurs on or after
    the date of the CHAS submission.

4.  **SUMMARY OF RESIDENTIAL ANTIDISPLACEMENT AND RELOCATION ASSISTANCE
    PLAN.** Under a Plan, the PJ must:

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a.  Identify the reasonable steps it will take to minimize the
    displacement of persons from their homes as a result of an assisted
    project.

b.  Replace all occupied and vacant occupiable \"low/moderate-income
    dwellings\" that are converted to a use other than
    \"low/moderate-income dwellings\" or are demolished for a project.

c.  Provide relocation assistance to low/moderate-income households
    (including families and individuals) displaced as a direct result of
    the conversion of a low/moderate-income dwelling or the demolition
    of any housing for a project.

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5.  **GUIDEFORM RESIDENTIAL ANTIDISPLACEMENT AND RELOCATION ASSISTANCE
    PLAN.** Attached is a Guideform Residential Antidisplacement and
    Relocation Assistance Plan that complies with existing requirements.
    It includes examples of steps that a PJ might wish to undertake to
    minimize the direct and indirect displacement of persons from their
    homes.

6.  **PROPOSED REGULATION AT 24 CFR PART 43.** HUD plans to publish in
    the near future a proposed rule at 24 CFR Part 43 that would set out
    proposed requirements for Residential Antidisplacement and
    Relocation Assistance Plans governing the HOME and CDBG Programs.
    Public comment will be invited.

**Attachment**

**GUIDEFORM RESIDENTIAL ANTIDISPLACENT AND\
RELOCATION ASSISTANCE PLAN \-- HOME PROGRAM**

The \[jurisdiction\] will replace all occupied and vacant occupiable
lower income housing demolished or converted to a use other than lower
income housing in connection with a project assisted with funds provided
under the HOME Investment Partnerships Act.

All replacement housing will be provided within three years after the
commencement of the demolition or conversion. Before entering into a
contract committing the \[jurisdiction\] to provide funds for a project
that will directly result in demolition or conversion, the
\[jurisdiction\] will make public by \[describe how, such as publication
in a newspaper of general circulation\] and submit to HUD \[the State,
under the State HOME Program\] the following information in writing:

1.  A description of the proposed assisted project;

2.  The address, number of bedrooms, and location on a map of lower
    income housing that will be demolished or converted to a use other
    than as lower income housing as a result of an assisted project;

3.  A time schedule for the commencement and completion of the
    demolition or conversion;

4.  To the extent known, the address, number of bedrooms and location on
    a map of the replacement housing that has been or will be provided.

5.  The source of funding and a time schedule for the provision of the
    replacement housing;

6.  The basis for concluding that the replacement housing will remain
    lower income housing for at least 10 years from the date of initial
    occupancy;

7.  Information demonstrating that any proposed replacement of housing
    units with smaller dwelling units (e.g., a 2-bedroom unit with two
    I-bedroom units), or any proposed replacement of efficiency or
    single-room occupancy (SRO) units with units of a different size, is
    appropriate and consistent with the housing needs and priorities
    identified in the approved Comprehensive Housing Affordability
    Strategy (CHAS).

To the extent that the specific location of the replacement housing and
other data in items 4 through 7 are not available at the time of the
general submission, the \[jurisdiction\] will identify the general
location of such housing on a map and complete the disclosure and
submission requirements as soon as the specific data are available.

The \[name and phone number of the office\] is responsible for tracking
the replacement of lower income housing and ensuring that it is provided
within the required period.

The \[name and phone number of the office\] is responsible for providing
relocation payments and other relocation assistance to any lower income
person displaced by the demolition of any housing or the conversion of
lower income housing to another use.

Consistent with the goals and objectives of activities assisted under
the Act, the \[jurisdiction\] will take the following steps to minimize
the direct and indirect displacement of persons from their homes:**\***

1.  Coordinate code enforcement with rehabilitation and housing
    assistance programs.

2.  Evaluate housing codes and rehabilitation standards in reinvestment
    areas to prevent undue financial burden on established owners and
    tenants.

3.  Stage rehabilitation of apartment units to allow tenants to remain
    in the building/complex during and after the rehabilitation, working
    with empty units first.

4.  Arrange for facilities to house persons who must be relocated
    temporarily during rehabilitation.

5.  Adopt policies to identify and mitigate displacement resulting from
    intensive public investment in neighborhoods.

6.  Adopt policies which provide reasonable protections for tenants
    faced with conversion to a condominium or cooperative.

7.  Adopt tax assessment policies, such as deferred tax payment plans,
    to reduce impact of increasing property tax assessments on lower
    income owner-occupants or tenants in revitalizing areas.

8.  Establish counseling centers to provide homeowners and tenants with
    information on assistance available to help them remain in their
    neighborhood in the face of revitalization pressures.

**\*** The jurisdiction must determine the appropriate steps. Those
listed are examples.