**CHAPTER 3**

**Relocation Payments -- Families and Individuals**

1.  PURPOSE OF CHAPTER. This Chapter describes the relocation payments
    to be provided to a family or individual who is being displaced from
    a dwelling. Required advisory assistance is described in Chapter 2.

2.  PAYMENT FOR MOVING AND RELATED EXPENSES.

    A.  [Any displaced residential owner-occupant or
        tenant-occupant]{.underline} who qualifies as a displaced person
        (defined at 49 CFR 24.2(a)(9)); see also Paragraph 1-4I of this
        Handbook) is entitled to a payment for his or her moving and
        related expenses, as the Agency determines to be reasonable and
        necessary. Generally, the displaced person may choose a payment
        for [actual reasonable moving and related expenses]{.underline},
        or a [fixed payment for moving expenses]{.underline}.

        1.  Actual Reasonable Moving and Related Expenses (49 CFR
            24.301(g)(1)-(7)). A displaced person's actual, reasonable
            and necessary moving expenses for moving personal property
            from a dwelling may be determined based on the cost of one,
            or a combination of the methods described at 49 CFR
            24.301(b). For moves from a mobile home, also see 49 CFR
            24.301(g)(8)-(10) and Paragraph 3-8 of this Handbook.
            (**[NOTE]{.underline}**: Reasonable moving expenses for a
            person with disabilities might cover the cost of moving
            assistive equipment that is the personal property of the
            tenant, the furnishings and personal belongings of a live-in
            aide, and/or other reasonable accommodations.)

        2.  Fixed Payment for Moving Expenses (49 CFR 24.302). This
            payment shall be determined according to the applicable
            Fixed Residential Moving Cost Schedule published by the
            Federal Highway Administration (FHWA). The allowance
            reflects the number of rooms in the displacement dwelling
            (which may include outbuildings), all moving and related
            expenses, and takes into consideration whether the displaced
            person owns and must move the furniture. If a room contains
            an unusually large amount of personal property (e.g., a
            crowded basement), the Agency may increase the payment
            accordingly (e.g., count it as two rooms). Copies of the
            schedule are available from the FHWA website at:
            [http://www.fhwa.dot.gov/realestate/fixsch96.htm]{.underline},
            or from HUD Offices.

            a.  Occupant of Dwelling with Congregate Sleeping Space. The
                moving expense and dislocation allowance for a person
                who is displaced from a dwelling (defined at 49 CFR
                24.2(a)(10) and Paragraph 1-4K.) with congregate
                sleeping space ordinarily utilized by three or more
                unrelated persons shall be limited to the amount stated
                in the most recent edition of the Fixed Residential
                Moving Cost Schedule (see FHWA website at:
                <http://www.fhwa.dot.gov/realestate/fixsch96.htm>).

            b.  Homeless Persons. A displaced \"homeless\" person (e.g.,
                the occupant of an emergency shelter) is not considered
                to have been displaced from a dwelling (defined at 49
                CFR 24.2(a)(10) and Paragraph 1-4K.) and, therefore, is
                not entitled to a fixed payment for moving expenses.
                (Such a person may, however, be eligible for a payment
                for actual costs for moving their possessions. See 49
                CFR 24.301 and Paragraph 3-2A.1 above.)

    B.  [Displaced Public Housing Tenants]{.underline}. Whenever a
        tenant is displaced from a public housing unit but is offered
        the opportunity to relocate to a comparable replacement public
        housing unit, the Public Housing Authority (PHA) has the option
        to choose the type of moving assistance to be provided to the
        displaced tenant. The PHA may elect to perform the move itself,
        using force account labor or a moving company, at no cost to the
        individual or family being displaced. In such cases, the
        individual or family is also entitled to a moving expense and
        dislocation allowance which shall be limited to the amount in
        the most recent edition of the Fixed Residential Moving Cost
        Schedule (see FHWA website at:
        [http://www.fhwa.dot.gov/realestate/fixsch96.htm]{.underline}).
        If the PHA does not elect to perform the move itself, the tenant
        may have the option to choose either a payment for actual moving
        and related expenses (49 CFR 24.301) or the PHA will pay
        directly to the tenant the applicable and current fixed payment
        for moving expenses required under 49 CFR 24.302.
        (**[NOTE]{.underline}**: This policy covers displacement under
        the URA and not \"general transfers.\" It does not apply to
        moves by displaced public housing tenants to other subsidized or
        private housing. (Moving expenses for such displaced public
        housing tenants are described in Paragraphs 3-2A.1 and 3-2A.2
        above.)

        1.  A displaced public housing tenant who elects to be
            reimbursed for actual moving expenses (49 CFR 24.301) will
            receive assistance for all necessary moving services,
            including packing and unpacking of personal belongings. For
            displaced public housing tenants who prefer to pack their
            own personal possessions and items of value, the PHA may
            provide packing instructions, boxes, markers, and tape to
            assist the displaced public housing tenant.

        2.  Reasonable moving costs include not just the cost of
            packing, moving, and unloading, but also disconnecting,
            dismantling, removing, reassembling, and reinstalling
            relocated household appliances and other personal property.
             This would include costs for deinstallation, moving, and
            reinstallation services for tenant-provided equipment or
            amenities such as fans, air conditioners, personal
            computers, etc.  When force account is used for a move and
            does not include these services, a PHA may determine whether
            or not it will hire an independent contractor to do this
            work, or reimburse a displaced public housing tenant on an
            actual cost basis (all costs for these methods must be
            documented).  A PHA cannot require that a displaced public
            housing tenant pay for these services on his/her own.  A PHA
            must adequately inform a displaced public housing tenant
            accordingly.

        3.  The PHA must also provide direct payment or reimbursement
            for all disconnection and reconnection of necessary
            utilities (i.e., water, sewer, gas, and electricity) either
            by: 1) paying the expenses directly to the applicable
            utility company on behalf of the tenant, or 2) reimbursing
            the displaced public housing tenant for the cost of
            transferring utility services to the replacement unit.
            (Documentation of the cost must be provided to the PHA by
            the displaced public housing tenant). This payment does not
            include any reimbursement for new or increased utility
            deposits since deposits are refundable and not considered a
            cost. However, the PHA may elect to advance funds for such
            deposits to a displaced public housing tenant under a
            repayment agreement. If the displaced public housing tenant
            had cable service at the displacement unit, the PHA should
            reimburse the displaced public housing tenant for the cost
            of transferring service, if any.

    C.  [Optional Claim Form]{.underline}. A copy of Form HUD-40054,
        \"Residential Claim for Moving and Related Expenses,\" is
        contained in Appendix 11. The form is optional; however, if the
        form is not used, documentation must be included in the
        Agency\'s files to support the amounts claimed and paid (see
        Chapter 6).

3.  ESTABLISHING UPPER LIMIT OF REPLACEMENT HOUSING PAY-MENTS.

    A.  [Determining Cost of Comparable Replacement Dwelling (49 CFR
        24.403(a))]{.underline}. The upper limit of a replacement
        housing payment shall be based on the cost of a comparable
        replacement dwelling (49 CFR 24.2(a)(6)). If available, at least
        three comparable replace­ment dwellings shall be examined
        (including internal and external inspection) to ensure that the
        replacement dwelling is decent, safe and sanitary as defined at
        49 CFR 24.2(a)(8). The upper limit of the replacement housing
        payment shall be established on the basis of the cost for the
        comparable replacement dwelling that is most representative of,
        and equal to, or better than, the displacement dwelling.

        1.  For purposes of establishing the payment limit, comparable
            replacement dwellings shall, to the extent feasible, be
            selected from the neighbor­hood in which the displacement
            dwelling is located or in nearby similar neighborhoods where
            housing costs are generally the same or higher. An obviously
            overpriced dwelling (e.g., luxury housing, if the
            displacement dwelling is non-luxury housing) may be ignored.

        2.  A copy of Form HUD-40061, Selection of Most Representative
            Comparable Replacement Dwelling for Purposes of Computing a
            Replacement Housing Payment, is included as Appendix 12. The
            form is optional; however, if the form is not used, other
            reasonable documentation must be maintained.

            **[NOTE]{.underline}**: When selecting the most
            representative comparable replacement dwelling for a person
            with disabilities, reasonable accommodation is to be
            determined on a case-by-case basis. The range of accessible
            unit features in Appendix A, 49 CFR 24.2(a)(8)(vii) is
            offered as an illustrative list only.

        3.  The Agency may limit the amount of replacement housing
            payment to the amount required to obtain a comparable
            replacement dwelling only if it gives a timely written
            notice (referral) of such comparable replacement dwelling.
            If the Agency fails to offer a comparable replacement
            dwelling before the person enters into a lease or purchase
            agreement for, and occupies, a decent, safe and sanitary
            replacement dwelling, HUD may require the replacement
            housing payment be based on the cost of such decent, safe
            and sanitary replace­ment dwelling, or take such other
            corrective action as may be deemed necessary to mitigate (to
            the extent possible) the adverse consequences of the
            deficiency.

4.  REPLACEMENT HOUSING PAYMENT FOR 180-DAY HOMEOWNER-OCCUPANTS (49 CFR
    24.401).

    A.  [Eligibility (49 CFR 24.401(a))]{.underline}. A displaced person
        is eligible for a replacement housing payment for a 180-day
        homeowner-occupant if the person:

        1.  Actually owned and occupied the displacement dwelling for
            not less than 180 days immediately prior to the initiation
            of negotiations. A person is considered to have met the
            requirement to own the displacement dwelling if the person
            meets the definition of "Owner of a dwelling" at 49 CFR
            24.2(a)(20); and

        2.  Purchases and occupies a decent, safe and sanitary
            replacement dwelling within one year after the later of:

            a.  the date the person receives final payment for the
                displacement dwelling; or

            b.  in the case of condemnation, the date the court award of
                just compensation is deposited with the court; or

            c.  a comparable replacement dwelling has been made
                available to the person.

                The Agency shall extend this period for good cause. A
                displaced person is considered to have met the
                requirement to purchase a replacement dwelling if the
                person meets the requirements at 49 CFR 24.403(c),
                Purchase of Replacement Dwelling.

    B.  [Amount of Payment (49 CFR 24.401(b) and 49 CFR 24.404. See also
        Paragraph 3-3A3).)]{.underline}.

    C.  [Computation of Replacement Housing Payment]{.underline}. The
        calculation for a replacement housing payment under 49 CFR
        24.401(b) shall be the sum of:

        1.  The purchase price differential (49 CFR 24.401(c)). This is
            the amount by which the cost of a comparable replacement
            dwelling exceeds the acquisition cost of the displacement
            dwelling, and

        2.  Increased Mortgage Interest Costs (49 CFR 24.401(d)), and

        3.  Incidental Expenses (49 CFR 24.401(e)).

    D.  [Issues Affecting Acquisition Cost]{.underline}. For purposes of
        calculating the replacement housing payment under 49 CFR
        24.401(b), consideration must be given to the following when
        determining the acquisition cost:

        1.  Comparable Replacement Dwelling Lacks Major Exterior
            Attribute (49 CFR 24.403(a)(2)). If the site of the
            comparable replacement dwelling lacks a major exterior
            attribute of the displacement dwelling site (e.g., the site
            is significantly smaller or does not contain a swimming
            pool), the value of such attribute shall be subtracted from
            the acquisition cost of the displacement dwelling for
            purposes of computing the purchase price differential
            payment.

        2.  Mixed-use and Multifamily Properties (49 CFR 24.403(a)(7)).
            If the displacement dwelling was part of a property that
            contained another dwelling unit and/or space used for
            nonresidential purposes, only that portion of the
            acquisition payment which is actually attributable to the
            displacement dwelling shall be considered its acquisition
            cost when computing the purchase price differential. The
            Agency should ask its appraiser to make this determination
            at the time of the appraisal of the displacement property.

        3.  Insurance Proceeds (49 CFR 24.403(g)). To the extent
            necessary to avoid duplicate compensation, the amount of any
            insurance proceeds received by a person in connection with
            any real property damages or other loss to the displacement
            dwelling due to a catastrophic occurrence (e.g., fire,
            flood, etc.) shall be included in the acquisition cost of
            the displacement dwelling when computing the purchase price
            differential.

        4.  Owner Retention of Displacement Dwelling (49 CFR
            24.401(c)(2)). If the homeowner retains ownership of his or
            her dwelling, moves it from the displacement site and
            reoccupies it on a replacement site, the purchase price of
            the replacement dwelling shall be deemed to be the sum of:

            \(a\) The cost of moving and restoring the dwelling to a
            condition

            comparable to that prior to the move; and

            \(b\) The cost of making the unit a decent, safe and
            sanitary replacement

            dwelling (defined at 49 CFR 24.2(a)(8) and Paragraph 1-4H);
            and

            \(c\) The estimated current fair market value for
            residential use of the

            replacement site (appraisal not required), unless the
            claimant

            rented the displacement site and there is a reasonable
            opportunity

            for the claimant to rent a suitable replacement site; and

            \(d\) The retention value of the dwelling, if such retention
            value is

            reflected in the "acquisition cost" used when computing the

            replacement housing payment.

        5.  Partial Acquisition Leaves Buildable Remainder (49 CFR
            24.403(a)(3)). If the acquisition of a portion of a
            residential property causes the displacement of the owner
            from the dwelling and the remainder is a suitable, buildable
            residential lot, the Agency may offer to purchase the entire
            property. If the owner refuses to sell the remainder to the
            Agency, the fair market value of the remainder may be added
            to the acquisition cost of the displacement dwelling for
            purposes of computing the replacement housing payment.

    E.  [Optional Claim Form]{.underline}. A copy of Form HUD-40057,
        \"Claim for Replacement Housing Payment for 180-Day Homeowner,\"
        is contained in Appendix 13. The form is optional; however, if
        the form is not used, documentation must be included in the
        Agency\'s files to support the amounts claimed and paid (see
        Chapter 6).

    F.  [Maintaining Tenure of 180-day Homeowner]{.underline}.

        1.  Owner of Entire Fee Interest. A 180-day homeowner-occupant
            who owns fee simple title to the displacement dwelling and
            thus will receive all net acquisition proceeds must have the
            opportunity to purchase a comparable replacement dwelling
            without incurring an increase in the total outstanding
            mortgage debt, or an increase in the number of, or amount
            of, mortgage principal/interest payments.

        2.  Owner of Fractional Interest (49 CFR 24.404(b)). The Agency
            is not required to provide to a person who owned only a
            fractional interest in the displacement dwelling a greater
            level of assistance to purchase a replacement dwelling than
            the Agency would be required to provide if the person owned
            the entire interest in the displacement dwelling. If such
            assistance is not sufficient to enable the person to buy a
            replacement dwelling, the Agency may provide additional
            purchase assistance or it may elect to offer rental
            assistance. Generally, the amount offered as rental
            assistance should not be less than the amount available for
            purchase assistance under 49 CFR 24.401(b).

    G.  [Rental Assistance for 180-day Homeowner (49 CFR
        24.401(f))]{.underline}. A displaced 180-day homeowner who
        elects to rent, rather than buy, a replacement dwelling is
        eligible for rental assistance as described in 49 CFR 24.401(a).
        If, within one year after receiving final payment for the
        displacement dwelling, such displaced homeowner-occupant
        subsequently elects to again purchase and occupy a decent, safe
        and sanitary replacement dwelling, the replacement housing
        payment may be converted to purchase assistance. (See also
        Paragraph 3-7C.)

5.  REPLACEMENT HOUSING PAYMENT FOR 90-DAY OCCUPANT (49 CFR 24.402).

    A.  [Eligibility (49 CFR 24.402(a))]{.underline}.

        1.  Timeliness in Determining Eligibility. When a displaced
            person's eligibility has not been determined in a timely
            manner (e.g., a person's ineligibility determination has
            been appealed and/or reversed) the person's current income
            (i.e., income at the time the original determination is
            reversed or appeal is decided) should be used when
            calculating the rental assistance payment. Information on
            the monthly rent and estimated average monthly utility costs
            for the displacement dwelling and the comparable replacement
            dwelling should be based on prevailing rates at the time the
            assistance is offered.

    B.  [Rental Assistance Payment (49 CFR 24.402(b))]{.underline}.

        1.  Amount of Payment (49 CFR 24.402(b)(1) and 24.404). See also
            Paragraph 3-3A3).

        2.  Base Monthly Rent (49 CFR 24.402(b)(2)).

        3.  Government Housing Assistance. If the displaced person did
            not receive government housing assistance before
            displacement, he/she cannot be required to accept government
            assisted housing in lieu of a cash replacement housing
            payment under Paragraph 3-4B. Agencies may help eligible
            low-income displaced tenants obtain a housing voucher for
            rental assistance provided by a local Public Housing Agency
            (PHA) and offer referrals to suitable replacement dwellings
            with landlords who are willing to participate in the housing
            voucher program, or can provide referrals to other
            government assisted housing programs. If the displaced
            person accepts the government housing assistance, the rental
            assistance payment should be based on the person's actual
            out-of-pocket costs. For example, where the replacement
            dwelling rent/utility cost is more than the payment standard
            under the voucher program, or the initial rent/utilities
            burden exceeds 30 percent of the tenant's average monthly
            gross household income, the tenant may be eligible for a
            42-month cash supplement to cover the gap. (See also
            Paragraph 2-6A.) The Agency, however, remains obligated to
            inform the displaced person of his/her options under 49 CFR
            Part 24 (e.g., referrals to comparable replacement dwellings
            available on the private market).

        4.  Determination of Utility Costs (49 CFR 24.2(a)(30)).[^1]

            a.  [Displacement Dwelling]{.underline}. For purposes of
                computing rental assistance, the average monthly utility
                costs (defined at 49 CFR 24.2(a)(30)) at the
                displacement dwelling are 1/12 of the utility costs over
                a 12-month period. The determination may be based on the
                12-month period immediately prior to the date of
                displacement, using statements/bills of actual cost.

            b.  [Replacement Dwelling]{.underline}. The estimated
                average monthly utility costs at the replacement
                dwelling should be based on actual 12-month utility data
                for that unit to the extent possible, or some shorter
                period of time, if necessary. Agencies may establish
                their own procedures to be used for determining the
                estimated cost of utilities if the procedures are used
                uniformly and reflect current reasonable costs.

        5.  Determination of Average Monthly Gross Household Income (to
            be used in calculating Rental Assistance Payments for
            low-income displaced person(s) only). The average monthly
            gross household income for a low-income displaced person is
            1/12 of the gross household income (see 49 CFR 24.2(a)(14)).

            **[NOTE]{.underline}**: The provisions in Paragraphs 3-5B(4)
            and 3-5B(5) are applicable to the calculation of a displaced
            tenant's replacement housing payment under the URA only and
            are not intended to cover the calculation of the government
            housing assistance payment (e.g., public housing or Section
            8 Housing Choice Voucher) itself. Government housing
            assistance payments are subject to applicable program
            requirements.

    C.  [Downpayment Assistance Payment (49 CFR 24.402(c))]{.underline}.
        An eligible displaced person who was a renter may elect to
        receive a lump sum amount for a downpayment to purchase a
        replacement dwelling.

        1.  Amount of Payment (49 CFR 24.402(c)(1)).

        2.  Application of Payment (49 CFR 24.402(c)(2) and Appendix A,
            49 CFR 24.402(c)).

    D.  Optional Claim Form. A copy of form HUD-40058, \"Claim for
        Rental or Downpayment Assistance,\" is contained in Appendix 14.
        The form is optional; however, if the form is not used,
        documentation must be included in the Agency\'s files to support
        the amounts claimed and paid (see Chapter 6).

6.  REPLACEMENT HOUSING PAYMENT FOR PERSON WHO IS NOT A 90-DAY OCCUPANT.

    A.  [Background]{.underline}. A person who is displaced from a
        dwelling that he/she did not occupy for at least 90 days before
        the initiation of negotiations is not entitled to a replacement
        housing payment under 49 CFR 24.401 or 24.402. (This includes
        tenants who moved into the displacement dwelling after the
        initiation of negotiations as well as those moving into a unit
        less than 90 days before the initiation of negotiations.)
        However, to comply with section 205(c)(3) of the URA, the Agency
        must provide the assistance necessary to enable such person to
        relocate to comparable rental housing within his/her financial
        means. (See 49 CFR 24.404(c)(3)). Section 206 of the URA (Last
        Resort Housing) authorizes the use of project funds for this
        purpose.

    B.  [Eligibility (49 CFR 24.404(c))]{.underline}. A displaced person
        who fails to meet the length of occupancy requirements under 49
        CFR 24.401(a) or 24.402(a) qualifies for assistance under 49 CFR
        24.404(c)(3) and this Paragraph 3-6.

    C.  [Amount of payment]{.underline} [^2]

        1.  Person Rents Replacement Dwelling. A person who meets the
            eligibility requirements in Paragraph 3-6B and rents a
            replacement dwelling is entitled to assistance based on 49
            CFR 24.402(b)(2)(i) or (ii) if the person is low-income. If
            the person is not low-income, the calculation is based on 49
            CFR 24.402(b)(2)(i) only.

        2.  Person Buys Replacement Dwelling (49 CFR 24.402(c)). A
            person who meets the eligibility requirements in Paragraph
            3-6B may convert the rental assistance payment in the above
            paragraph to a downpayment to purchase at the discretion of
            the Agency on a case-by-case basis. This payment cannot
            exceed the amount an owner would receive under 49 CFR
            24.401(b) if he or she met the 180-day occupancy
            requirement.

7.  ADDITIONAL RULES GOVERNING REPLACEMENT HOUSING PAYMENTS (49 CFR
    24.403).

    A.  [Inspection of Replacement Dwelling (49 CFR
        24.403(b))]{.underline}. Before making a replacement housing
        payment or releasing a payment from escrow, the Agency or its
        designated representative shall make a thorough internal and
        external inspection of the replacement dwelling to determine
        whether it is decent, safe and sanitary (as defined at 49 CFR
        24.2(a)(8)). A copy of the inspection report should be included
        with the pertinent claim form in the Agency\'s files. (See also
        Chapter 6, Paragraph 6-2C.1(h).) **[NOTE]{.underline}**: The
        definition of "decent, safe and sanitary" provides that
        replacement units must contain the accessibility features needed
        by displaced persons with disabilities. (See 49 CFR
        24.2(a)(8)(vii); Appendix A, 24.2(a)(8)(vii); Chapter 1,
        Paragraph 1-9 of this Handbook; Exhibit 3-1, and HUD guidance on
        accessibility features needed by displaced person with
        disabilities.)

        1.  If the displaced person relocates to another community, the
            Agency may arrange for officials of that community to
            perform the inspection.

        2.  If the Agency determines that a replacement housing payment
            may have to be denied because the replacement dwelling
            selected by a displaced person is not decent, safe and
            sanitary (e.g., does not meet the local code), it must so
            notify the displaced person, determine if the property can
            be made decent, safe and sanitary, and/or assist the person
            to locate another replacement unit.

    B.  [Occupancy Requirements for Displacement or Replacement Dwelling
        (49 CFR 24.403(d))]{.underline}. No person shall be denied
        eligibility for a replacement housing payment solely because the
        person is unable to meet the occupancy requirements set forth in
        this Handbook for a reason beyond his or her control,
        including: (i) a disaster, an emergency, or an imminent threat
        to the public health or welfare, as determined by the President,
        the Federal agency funding the project, or the Agency; or (ii)
        another reason, such as a delay in the construction of the
        replacement dwelling, military reserve duty, illness, or
        hospital stay, as determined by the Agency.

        **[NOTE:]{.underline}** Section 414 of the Robert T. Stafford
        Disaster Relief and Emergency Assistance Act of 1974, as
        amended, 42 U.S.C. §5181 ("Stafford Act") provides that
        "Notwithstanding any other provision of law, no person otherwise
        eligible for any kind of replacement housing payment under the
        \[Uniform Act\] shall be denied such eligibility as a result of
        his being unable, because of a major disaster as determined by
        the President, to meet the occupancy requirements set by such
        \[Uniform Act\].\" By virtue of section 414 of the Stafford Act,
        replacement housing assistance should be provided to otherwise
        eligible residential displaced persons without regard to their
        inability to meet prescribed occupancy requirements due to a
        national disaster or a presidentially declared emergency.
        Contact your Regional Relocation Specialist for assistance in
        identifying HUD projects that may be affected by Section 414.

    C.  [Conversion of Payment (49 CFR 24.403(e))]{.underline}. A
        displaced person, who initially rents a replacement dwelling,
        receives rental assistance pursuant to 49 CFR 24.402(b) and
        later purchases a replacement dwelling, is eligible to receive a
        payment under 49 CFR 24.401 and 24.402(c) if he or she meets the
        eligibility criteria for such payment, including purchase and
        occupancy within the prescribed 1-year period. The amount of the
        purchase assistance payment shall be the amount calculated under
        49 CFR 24.401(f) or 24.402(b)(1), minus any portion of the
        rental assistance that has already been disbursed. The entire
        purchase assistance payment must be applied, at closing, to the
        purchase of a decent, safe and sanitary replacement dwelling.
        (**[NOTE]{.underline}**: In the event the displaced person
        purchases a decent, safe and sanitary replacement prior to
        converting his/her rental assistance payment to purchase
        assistance, the entire amount must be used to reduce the
        outstanding mortgage balance.)

    D.  [Manner of Disbursing Rental Assistance]{.underline}. Relocation
        assistance payments for residential tenants who are displaced
        for HUD projects are subject to 42 USC Sec. 3537c and must be
        disbursed in installments, except that lump sum payments may be
        made to cover (1) moving expenses, (2) a downpayment on the
        purchase of replacement housing, or incidental expenses related
        to (1) or (2) . Whenever the payment is made in installments,
        the full amount of the approved payment shall be disbursed in
        regular installments, whether or not there is any later change
        in the person\'s income or rent, or in the condition or location
        of the person\'s housing.

        The frequency of these disbursements may be determined by the
        Agency.

        However, if not paid monthly, HUD recommends that there be no
        less than

        three installment payments, except when the rental assistance
        payment is

        \$500 or less. Where the rental assistance payment is \$500 or
        less, it is

        recommended that payment may be made in two installments with no
        less

        than a four-month interval between payments.

    E.  [Payment After Death (49 CFR 24.403(f))]{.underline}.

8.  LAST RESORT HOUSING MEASURES (49 CFR 24.404). Whenever comparable
    replacement dwellings are not available within the monetary limits
    for displaced owner-occupants and tenants, the Agency must provide
    additional alternative assistance under the provisions of this
    section. (Also see Exhibit 3-1 of this Handbook.)

    A.  [Cash Assistance to Exceed Statutory Payment Caps]{.underline}.
        The Uniform Act requires that comparable replacement housing
        within a person's financial means be made available before the
        person may be displaced. Whenever the payment ceiling under
        section 203 of the URA (\$22,500 for displaced owner-occupants
        under 49 CFR 24.401(b)); \$5,250 for displaced renters under 49
        CFR 24.402(b)[^3] is insufficient to provide comparable
        replacement housing, additional or alternative assistance must
        be provided. Generally, this is accomplished by providing
        additional cash assistance which exceeds the above ceiling
        limits. Section 206 of the URA authorizes the use of project
        funds to provide such additional cash assistance.
        [NOTE]{.underline}: Exceeding the payment ceilings at 49 CFR
        24.401(b) and 24.402(b) is commonplace. To ensure that a
        displaced person is not unduly burdened financially, the Agency
        is [required]{.underline} to provide additional cash or
        alternative assistance (see 49 CFR 24.404(c)(1)(i)-(iv).

    B.  [Other Last Resort Housing Measures]{.underline}. Section 206
        also authorizes Agencies to use project funds to undertake
        special measures, such as the construction, rehabilitation, or
        relocation of housing; the purchase of land and/or housing and
        later sale or lease to, or exchange with, the person; the
        provision of a direct loan; and the removal of barriers for
        persons with disabilities.

    C.  [Option of Displaced Person]{.underline}. The displaced person
        may enter into an agreement with the Agency to accept a decent,
        safe and sanitary replacement dwelling to be provided as a last
        resort housing measure. Absent such agreement, the Agency shall
        not require the displaced person to accept a dwelling provided
        by the Agency under the last resort housing provisions as an
        alternative to an acquisition payment or any relocation payment
        for which the person may otherwise be eligible.

9.  SPECIAL REQUIREMENTS COVERING MOBILE HOMES (49 CFR 24, SUBPART F).
    This Paragraph 3-9 provides additional guidance to be followed when
    providing relocation payments to persons displaced from a mobile
    home and/or mobile home site. Generally, such persons are entitled
    to receive a moving expense payment in accordance with 49 CFR 24,
    Subpart D, and a replacement housing payment in accordance with 49
    CFR 24, Subpart E to the same extent and subject to the same
    requirements as persons displaced from conventional dwellings.

    A.  [Payment for Moving and Related Expenses]{.underline}.

        1.  Eligibility. A displaced mobile home owner-occupant or
            tenant-occupant is eligible to receive a moving expense
            payment to the same extent and subject to the same
            requirements as persons displaced from conventional
            dwellings, except:

            a.  A displaced non-occupant owner of a mobile home that
                meets the definition of a business (see 49 CFR
                24.2(a)(4)) is eligible for reimbursement of actual and
                reasonable moving and related expenses under 49 CFR
                24.301(d), including the reasonable cost of moving the
                mobile home, only.

            b.  An owner-occupant who obtains a replacement housing
                payment under one of the circumstances described in 49
                CFR 24.502(a)(3)(i)-(iv) is eligible for a payment for
                moving personal property from the mobile home, but is
                not eligible for payment for moving the mobile home.)

            c.  A displaced owner-occupant or tenant-occupant of a
                mobile home that is determined to be personal property
                and that is not relocated and reoccupied on a
                replacement site (e.g., mobile home cannot be moved due
                to age or condition), is eligible for the cost of one or
                a combination of the following: (1) actual moving and
                related expenses incurred for moving their personal
                property under 49 CFR 24.301(g)(1)-(7), (2) a fixed
                payment for moving expense under 49 CFR 24.302, or (3) a
                commercial move of their personal property performed by
                a professional mover.

                **[NOTE]{.underline}**: Neither the URA nor the
                implementing regulations provide payment for moving real
                property. The URA places the determination of real
                property under State law when the acquiring Agency is a
                State agency receiving Federal financial assistance.
                Federal and State laws require that those items
                considered to be real property under State law must be
                appraised and acquired as part of the real estate being
                acquired, while items considered to be personal property
                under state law must be moved in accordance with the
                URA. The determination of real property versus personal
                property is required during the appraisal stage (see 49
                CFR 24.103(a)(2)(i)).

        2.  Moving and Related Expenses. Moving cost payments to persons
            occupying mobile homes are covered in 49 CFR 24.301(g)(1)
            through (g)(10). Additional eligible expenses include
            payment for:

            a.  Moving the mobile home (including packing, securing and
                unpacking any items of personal property); and

            b.  Modifications to the replacement site, such as
                construction of a pad, drilling of a well, or
                installation of a septic tank, if the Agency determines
                that it is practical to do so.

        3.  Partial Acquisition of Mobile Home Park (49 CFR 24.501(b)).

    B.  [Replacement Housing Payments (49 CFR 24.502 and
        24.503).]{.underline}

        1.  Replacement Housing Payment is Based on Dwelling and Site.
            Both the mobile home and mobile home site must be considered
            when computing a replacement housing payment. (A displaced
            mobile home occupant may have owned the displacement mobile
            home and rented the site, or rented the displacement mobile
            home and owned the site, or owned both the mobile home and
            the site, or rented both the mobile home and the site.)
            Also, a displaced mobile home occupant may elect to purchase
            a replacement mobile home and rent a replacement site, rent
            a replacement mobile home and purchase a replacement site,
            purchase both a replacement mobile home and replacement
            site, or rent both a replacement mobile home and site. In
            such cases, the total replacement housing payment shall
            consist of a payment for a dwelling and a payment for a
            site, each computed under the applicable requirements in 49
            CFR 24.401 and 49 CFR 24.402.

            a.  Example No. 1. A displaced 180-day owner-occupant of a
                mobile home who rented the displacement site may be
                eligible for a replacement housing payment for a
                dwelling computed under 49 CFR 24.401 and a replacement
                housing payment for a site computed under 49 CFR 24.402.

            b.  Example No. 2. A displaced 180-day owner-occupant of
                both the mobile home and site who relocates the mobile
                home may be eligible for a replacement housing payment
                under 49 CFR 24.401 if the person purchases a
                replacement site. If such person elects to rent a
                replacement site, rather than buy, the person may
                qualify for a payment under 49 CFR 24.402(b) to help
                rent a site.

        2.  Replacement Housing Payment for 180-Day Mobile Homeowner
            Displaced from a Mobile Home and/or from the Acquired Mobile
            Home Site (49 CFR 24.502).

        3.  Replacement Housing Payment for 90-Day Mobile Home Occupants
            (49 CFR 24.503). A displaced 90-day mobile home occupant is
            eligible for a replacement housing payment computed in
            accordance with 49 CFR 24.402.

10. TEMPORARY RELOCATION (See Paragraph 2-6). An owner-occupant or
    tenant-occupant who must move temporarily should be reimbursed for
    moving expenses to and from the temporary location, and payment of
    increased housing costs during the period of relocation.

    A.  [Optional Claim Form]{.underline}. A copy of the form "Claim for
        Temporary Relocation Expenses (Residential Moves)," is contained
        in Appendix 15. (**[NOTE]{.underline}:** This form is a draft,
        pending OMB approval.) The form is optional; however, if the
        form is not used, documentation must be included in the
        Agency\'s files to support the amounts claimed and paid (see
        Chapter 6).

[^1]: See also HUD Relocation Assistance Policy newsletter at
    http://www.hud.gov/offices/cpd/library/relocation/policyandguidance/hudrap/vol2no2.pdf

[^2]: See http://www.fhwa.dot/gov/realestate/ua/uafaqs.htm.

[^3]: These caps were established in 1987 and may be revised in a future
    statutory update.