####### Lesson's Learned

####### Solutions to Common Problems and Needs

######### Land Acquisition and Relocation Assistance for Airport Projects

![](media/image1.jpeg){width="3.125in" height="3.125in"}

![](media/image2.jpeg){width="1.0in" height="0.96875in"}Updated:
September 30, 2004

CONTENTS

[Real Property Acquisition for Airport Projects
4](#real-property-acquisition-for-airport-projects)

[Acquisition 4](#acquisition)

[Voluntary Transaction 4](#voluntary-transaction)

[Voluntary Transaction, Noise Buy-Out
5](#voluntary-transaction-noise-buy-out)

[Negotiations, Update of Offer 6](#negotiations-update-of-offer)

[Administrative Settlement 7](#administrative-settlement)

[Just Compensation, Auction Sale 8](#just-compensation-auction-sale)

[Appraisal 9](#appraisal)

[Historic Appraisal 9](#historic-appraisal)

[Report Forms 10](#report-forms)

[Project Influence RPZ Acquisition
11](#project-influence-rpz-acquisition)

[Appraisal Review 12](#appraisal-review)

[Reviewer Determination of Value 12](#reviewer-determination-of-value)

[Residential Relocation Assistance for Airport Projects
13](#residential-relocation-assistance-for-airport-projects)

[Replacement Housing Payments 180-Day Owners
13](#replacement-housing-payments-180-day-owners)

[Payment Eligibility, Purchase Requirement
13](#payment-eligibility-purchase-requirement)

[Payment Eligibility, Seasonal residences
14](#payment-eligibility-seasonal-residences)

[Payment Eligibility, Noise Project
15](#payment-eligibility-noise-project)

[Payment Eligibility, Home ReHab 16](#payment-eligibility-home-rehab)

[Purchase Price Differential, Conversion of Payment, Elderly or Disabled
Displaced Persons
17](#purchase-price-differential-conversion-of-payment-elderly-or-disabled-displaced-persons)

[Purchase Price Differential Recompute Eligibility
18](#purchase-price-differential-recompute-eligibility)

[Purchase Price Differential Applied at Purchase
19](#purchase-price-differential-applied-at-purchase)

[Mortgage Interest Differential Payment
20](#mortgage-interest-differential-payment)

[Mortgage Interest Differential Payment
20](#mortgage-interest-differential-payment-1)

[Incidental Expenses 21](#incidental-expenses)

[Replacement Housing Payments 90-Day Tenant Occupants
22](#replacement-housing-payments-90-day-tenant-occupants)

[Tenant Occupants, Noise Buyout Projects
22](#tenant-occupants-noise-buyout-projects)

[Replacement Housing Payments General
23](#replacement-housing-payments-general)

[Appeals 23](#appeals)

[Appeals, FAA Role 24](#appeals-faa-role)

[Residential Moving Cost 25](#residential-moving-cost)

[Actual Cost Self Move 25](#actual-cost-self-move)

[Non-Residential Relocation Assistance for Airport Projects
26](#non-residential-relocation-assistance-for-airport-projects)

[Non-Residential Moving Cost 26](#non-residential-moving-cost)

[Reconnect and Reinstallation 26](#reconnect-and-reinstallation)

[Direct Loss of Tangible Personal Property
27](#direct-loss-of-tangible-personal-property)

[Reestablish-ment Expense 28](#reestablish-ment-expense)

[Rental of Single Family Home 28](#rental-of-single-family-home)

[Rental of Single Family Home 28](#rental-of-single-family-home-1)

[Fixed Moving Expense Payment (In Lieu)
29](#fixed-moving-expense-payment-in-lieu)

[Attachment A: SAMPLE Tenant Relocation Eligibility Letter - Noise
Buyout Project
30](#attachment-a-sample-tenant-relocation-eligibility-letter---noise-buyout-project)

[Attachment B: SAMPLE Direct Loss Payment Claim
31](#attachment-b-sample-direct-loss-payment-claim)

+--------+-----------+-------------+----------------------------------+
| Le     |           |             |                                  |
| sson's |           |             |                                  |
| Le     |           |             |                                  |
| arned: |           |             |                                  |
| Sol    |           |             |                                  |
| utions |           |             |                                  |
| to     |           |             |                                  |
| Common |           |             |                                  |
| Pr     |           |             |                                  |
| oblems |           |             |                                  |
| and    |           |             |                                  |
| Needs  |           |             |                                  |
|        |           |             |                                  |
| # Real |           |             |                                  |
|  Prope |           |             |                                  |
| rty Ac |           |             |                                  |
| quisit |           |             |                                  |
| ion fo |           |             |                                  |
| r Airp |           |             |                                  |
| ort Pr |           |             |                                  |
| ojects |           |             |                                  |
+========+===========+=============+==================================+
| Ca     | Problem / | Cost and    | Preferred Solution and FAA       |
| tegory | Need      | Quality     | Requirements                     |
|        |           | Issues      |                                  |
+--------+-----------+-------------+----------------------------------+
| ##     | Can the   | The         | Airport expansion projects need  |
|  Acqui | "         | voluntary   | specific parcels of land to meet |
| sition | Voluntary | transaction | sound design and airport         |
|        | Tr        | exception   | operation requirements.          |
| #      | ansaction | to the      | Therefore, by definition at 49   |
| ## Vol | E         | Uniform Act | CFR 24.101(b) acquisitions for   |
| untary | xception" | does not    | airport expansion are not        |
|  Trans | to the    | apply to    | voluntary transactions.          |
| action | Uniform   | airport     |                                  |
|        | Act, as   | expansion   | Noise compatibility projects     |
|        | defined   | or noise    | that intend to change land use   |
|        | at 49 CFR | buy-out     | although often negotiated        |
|        | 24.101(b) | projects.   | without threat of condemnation,  |
|        | be        |             | require possession of most       |
|        | applied   |             | property within a defined        |
|        | to any    |             | project area. Therefore these    |
|        | airport   |             | acquisitions also are not        |
|        | project   |             | voluntary transactions.          |
|        | where the |             |                                  |
|        | sponsor   |             | Purchase or Sales Assurance is a |
|        | will not  |             | noise compatibility measure that |
|        | resort to |             | does not change land use or      |
|        | eminent   |             | require any particular property. |
|        | domain to |             | A participating property owners  |
|        | acquire   |             | sale is a voluntary transaction. |
|        | needed    |             |                                  |
|        | real      |             |                                  |
|        | property? |             |                                  |
+--------+-----------+-------------+----------------------------------+
| ####   | The       | The         | Typically, an airport will       |
|  Acqui | airport   | acquisition | solicit "voluntary" property     |
| sition | has       | of property | owner participation in an        |
|        | decided   | for a noise | airport noise buy-out project.   |
| ###    | not to    | buy-out     | The airport must negotiate the   |
| Volunt | use       | project     | property purchase in good faith  |
| ary Tr | eminent   | (purchase   | with its offer of just           |
| ansact | domain    | and         | compensation conforming to FAA   |
| ion, N | authority | conversion  | requirements (49 CFR 24.102).    |
| oise B | to force  | of          | However, should a participating  |
| uy-Out | p         | residential | owner decline the offer the      |
|        | ossession | property to | airport may decide to terminate  |
|        | for its   | compatible  | the current negotiations and not |
|        | noise     | land use)   | condemn the property.            |
|        | buy-out   | is not a    |                                  |
|        | program.  | voluntary   | With a buy-out offer, the        |
|        | Should    | t           | airport must give the property   |
|        | property  | ransaction. | owner a general information      |
|        | owners    | Voluntary   | notice describing the            |
|        | therefore | t           | acquisition procedure and        |
|        | be        | ransactions | advising that if they sell to    |
|        | advised   | are         | the airport, the owner is a      |
|        | that the  | narrowly    | displaced person eligible for    |
|        | sale of   | defined at  | relocation assistance and        |
|        | their     | 49 CFR      | payments. The FAA brochure       |
|        | property  | 24.101(b)   | entitled \"Land Acquisition for  |
|        | is        | and the     | Public Airports\" provides this  |
|        | v         | defining    | notice. All purchase offers      |
|        | oluntary? | criteria    | (first and any following offers) |
|        |           | exclude     | must provide full payment of     |
|        |           | noise       | just compensation not less than  |
|        |           | buy-out     | the approved appraised fair      |
|        |           | programs    | market value of the property     |
|        |           | because     | disregarding any value influence |
|        |           | \"all or    | of the airport buy-out project.  |
|        |           | su          |                                  |
|        |           | bstantially | Assembly of property for         |
|        |           | all         | redevelopment to compatible land |
|        |           | property    | use may extend over several      |
|        |           | within a    | years or possibly will not fully |
|        |           | geographic  | develop. Should the lack of a    |
|        |           | area is to  | particular property frustrate    |
|        |           | be          | redevelopment the airport may    |
|        |           | acquired\". | reinitiate negotiations. If      |
|        |           |             | these negotiations fail, the     |
|        |           |             | Uniform Act does not preclude    |
|        |           |             | the airport or local public      |
|        |           |             | agency use of its legal eminent  |
|        |           |             | domain authority to condemn      |
|        |           |             | needed property.                 |
+--------+-----------+-------------+----------------------------------+
| ####   | In "Good  | "           | As provided under the governing  |
|  Acqui | Faith"    | Creditable" | regulation (49 CFR               |
| sition | neg       | valuation   | 24.102(f)&(g)), in its purchase  |
|        | otiations | information | negotiations the airport is to   |
| ###    | what is   | is a        | respond to the property owner's  |
|  Negot | c         | verifiable  | presentation of valuation        |
| iation | onsidered | fact or     | information pertinent to the     |
| s, Upd | "cr       | valuation   | purchase price of the property.  |
| ate of | editable" | opinion     | Such owner's information should  |
|  Offer | valuation | that would  | be provided the review appraiser |
|        | in        | reasonably  | and as warranted, the offer of   |
|        | formation | lead to an  | just compensation adjusted. The  |
|        | or        | increased   | airport may proceed directly to  |
|        | material  | fair market | contract / option a property at  |
|        | that a    | value       | the confirmed appraised market   |
|        | property  | conclusion  | value.                           |
|        | owner may | consistent  |                                  |
|        | provide   | with        | Equally, the review appraiser    |
|        | for       | appraisal   | shall not accept a value or      |
|        | cons      | standards   | value opinion that is not        |
|        | ideration | and         | supported or would be            |
|        | as just   | p           | contradicted by acceptable       |
|        | comp      | rofessional | appraisal analysis and support.  |
|        | ensation? | practices.  | The reviewer is to assure an     |
|        |           |             | acceptable appraisal process and |
|        |           |             | product, and is expected to      |
|        |           |             | reject unacceptable value        |
|        |           |             | opinions.                        |
+--------+-----------+-------------+----------------------------------+
| ####   | How is an | Adm         | The use of administrative        |
|  Acqui | admin     | inistrative | settlement may be considered an  |
| sition | istrative | settlements | option to condemnation or        |
|        | s         | are simply  | termination of a stalemated      |
| ### A  | ettlement | that --     | acquisition. Sound project       |
| dminis | different | settlements | management requires that any     |
| trativ | from an   | in excess   | proposed or accepted settlement, |
| e Sett | adjusted  | of the      | at a cost above the airport      |
| lement | offer of  | appraised   | approved and confirmed appraised |
|        | just      | value       | value, be adequately documented  |
|        | com       | justified   | to show the settlement reflects  |
|        | pensation | as being in | the public interest and is cost  |
|        | made      | the public  | effective.                       |
|        | during    | interest    |                                  |
|        | nego      | for a       | Under the Uniform Act reasonable |
|        | tiations? | timely and  | attempts to expedite             |
|        |           | cost        | acquisitions by agreements with  |
|        |           | effective   | owners to avoid litigation and   |
|        |           | acquisition | relieve congestion in the courts |
|        |           | of the real | are encouraged. Administrative   |
|        |           | property    | settlements may be accepted      |
|        |           | for the     | given the following              |
|        |           | airport     | justification, as applicable:    |
|        |           | project.    |                                  |
|        |           |             | -   The probable range of        |
|        |           |             |     testimony in litigation.     |
|        |           |             |                                  |
|        |           |             | -   The type of property         |
|        |           |             |     involved and damages, if     |
|        |           |             |     any.                         |
|        |           |             |                                  |
|        |           |             | -   Recent court awards in the   |
|        |           |             |     vicinity (particularly       |
|        |           |             |     involving similar property). |
|        |           |             |                                  |
|        |           |             | -   A summary of the negotiation |
|        |           |             |     effort and the               |
|        |           |             |     recommendation of the        |
|        |           |             |     negotiator to conclude the   |
|        |           |             |     purchase with a settlement.  |
|        |           |             |                                  |
|        |           |             | -   The estimate of trial cost,  |
|        |           |             |     including preparations.      |
|        |           |             |                                  |
|        |           |             | -   The advice and opinion of    |
|        |           |             |     legal counsel.               |
|        |           |             |                                  |
|        |           |             | The appropriate airport          |
|        |           |             | official, with management        |
|        |           |             | responsibility for the           |
|        |           |             | acquisition project, shall       |
|        |           |             | approve an accepted settlement.  |
|        |           |             | Adequately supported settlements |
|        |           |             | are an eligible property         |
|        |           |             | acquisition cost.                |
+--------+-----------+-------------+----------------------------------+
| ####   | May an    | Yes, if the | The airport may purchase the     |
|  Acqui | airport   | property    | property at auction consistent   |
| sition | sponsor   | acquisition | with 49 CFR 24 and FAA           |
|        | purchase  | conforms to | requirements by documenting the  |
| ### J  | a         | the         | following.                       |
| ust Co | property  | r           |                                  |
| mpensa | offered   | equirements | The airport provides the owner   |
| tion,  | at        | of 49 CFR   | with a general information       |
| Auctio | auction   | 24.         | brochure (e.g. \"Land            |
| n Sale | for a FAA | However, as | Acquisition for Public Airports  |
|        | assisted  | is          | or comparable notice\*) and      |
|        | project?  | practical,  | advised the owner of the right   |
|        |           | when the    | to have the property appraised   |
|        |           | airport     | and receive just compensation.   |
|        |           | becomes     | The owner may waive this right.  |
|        |           | aware of an |                                  |
|        |           | auction the | If the owner does not waive the  |
|        |           | airport     | right to just compensation, the  |
|        |           | should      | airport will have the property   |
|        |           | first       | appraised and the appraiser will |
|        |           | attempt to  | provide the owner the            |
|        |           | appraise    | opportunity to accompany the     |
|        |           | and         | appraiser on an inspection of    |
|        |           | negotiate   | the property. The appraisal      |
|        |           | the         | shall be reviewed and the review |
|        |           | purchase    | appraiser shall recommend the    |
|        |           | directly    | amount of just compensation for  |
|        |           | with the    | the acquisition.                 |
|        |           | property    |                                  |
|        |           | owner prior | If the auction price is          |
|        |           | to auction. | significantly less than the      |
|        |           |             | approved appraised fair market   |
|        |           |             | value the sponsor shall provide  |
|        |           |             | the owner the additional payment |
|        |           |             | required to provide just         |
|        |           |             | compensation. If the auction     |
|        |           |             | price is greater than the        |
|        |           |             | approved fair market value, then |
|        |           |             | the just compensation            |
|        |           |             | requirement has been met.        |
|        |           |             |                                  |
|        |           |             | Whether the owner waives just    |
|        |           |             | compensation or not, displaced   |
|        |           |             | persons shall be provided        |
|        |           |             | relocation assistance and        |
|        |           |             | payments.                        |
|        |           |             |                                  |
|        |           |             | At the time of FAA funding, the  |
|        |           |             | airport may be reimbursed the    |
|        |           |             | eligible land cost incurred      |
|        |           |             | (i.e. fair market value of the   |
|        |           |             | property as of the date of       |
|        |           |             | purchase, justified settlement   |
|        |           |             | amount, eligible incidental      |
|        |           |             | expense).                        |
+--------+-----------+-------------+----------------------------------+
| ## App | I need a  | A historic  | The value estimate of a          |
| raisal | Historic  | or          | retrospective appraisal is more  |
|        | or        | re          | reliable the more recent the     |
| ###    | Retr      | trospective | date of value and typically      |
| Histor | ospective | appraisal   | under \$100,000 in appraised     |
| ic App | A         | is an       | market value. At higher values   |
| raisal | ppraisal. | estimate of | and time frames greater than 5   |
|        | What is   | market      | years, the appraisal assignment  |
|        | it?       | value that  | becomes more complex and         |
|        |           | is likely   | subjective and requires          |
|        |           | to have     | appraisers experienced and       |
|        |           | applied as  | competent to perform reliable    |
|        |           | of a date   | retrospective appraisals meeting |
|        |           | of value in | professional and legal appraisal |
|        |           | the past.   | standards. State eminent domain  |
|        |           | Historic or | law and procedures will govern   |
|        |           | re          | court admissibility of data and  |
|        |           | trospective | analysis supporting a            |
|        |           | value       | retrospective value for          |
|        |           | estimates   | condemnation of property.        |
|        |           | are typical |                                  |
|        |           | for         | For purposes of AIP              |
|        |           | c           | reimbursement of past land       |
|        |           | ondemnation | purchases, FAA acceptance of     |
|        |           | purposes    | value estimates, in whole or in  |
|        |           | and as well | part, should depend and cite     |
|        |           | can be made | verified data and documentation  |
|        |           | to evaluate | that clearly support a reliable  |
|        |           | a past      | value conclusion that would have |
|        |           | purchase    | been eligible for Federal        |
|        |           | price as    | funding as of the date of the    |
|        |           | reasonable  | purchase. Among other            |
|        |           | or not for  | requirements, sponsor            |
|        |           | FAA         | certification of Uniform Act     |
|        |           | acceptance  | conformance is also required for |
|        |           | (per        | Federal reimbursement of         |
|        |           | FAA Order   | eligible project cost.           |
|        |           | 5100.38A,   |                                  |
|        |           | paragraph   |                                  |
|        |           | 722         |                                  |
|        |           | Re          |                                  |
|        |           | imbursement |                                  |
|        |           | for Land    |                                  |
|        |           | Previously  |                                  |
|        |           | Acquired).  |                                  |
+--------+-----------+-------------+----------------------------------+
| ##     | Private   | Private     | A summary or short-form          |
| ## App | a         | appraisers  | appraisal report is acceptable   |
| raisal | ppraisers | will prefer | for low value and simple         |
|        | tell me   | to use      | acquisitions. A Self-Contained   |
| ###    | they want | standard    | (or detailed) appraisal report   |
| Report | to use    | forms used  | should be prepared for all other |
|  Forms | their     | widely in   | acquisitions.                    |
|        | standard  | the         |                                  |
|        | summary   | appraisal   | Examples of an uncomplicated     |
|        | appraisal | industry.   | acquisition are a single‑family  |
|        | report    | Appraisal   | residence; unimproved            |
|        | forms.    | fees may be | residential or small commercial  |
|        | Are these | expected to | lot or a strip taking from a     |
|        | a         | increase    | large parcel not involving       |
|        | cceptable | for         | significant benefits or damages  |
|        | to FAA?   | n           | to the remaining property. The   |
|        |           | on-standard | Federal National Mortgage        |
|        |           | report      | Association (FannieMae) or       |
|        |           | forms.      | Federal National Home Loan Bank  |
|        |           |             | (FreddieMac) appraisal forms or  |
|        |           |             | comparable appraisal report      |
|        |           |             | forms in common use are          |
|        |           |             | acceptable summary report forms. |
|        |           |             | [FAA Form                        |
|        |           |             | 5100-112URAR](http://www.f       |
|        |           |             | aa.gov/arp/forms/index.cfm#land) |
|        |           |             | provides a cover sheet for       |
|        |           |             | summary appraisal reports citing |
|        |           |             | the applicable FAA requirements  |
|        |           |             | to include with the form report  |
|        |           |             | (i.e. 5 year sales history of    |
|        |           |             | subject, disregard of project    |
|        |           |             | influence, etc.)                 |
|        |           |             |                                  |
|        |           |             | It would be expected that the    |
|        |           |             | use of form appraisal reports    |
|        |           |             | would facilitate appraiser use   |
|        |           |             | of appraisal software and reduce |
|        |           |             | appraisal costs on airport       |
|        |           |             | projects.                        |
+--------+-----------+-------------+----------------------------------+
| ##     | To        | Project     | On an AIP assisted acquisition   |
| ## App | appraise  | influence   | of property located in a RPZ,    |
| raisal | property  | is defined  | (acquired to preclude continued  |
|        | within an | at 49 CFR   | land use and/or development      |
| #      | existing  | 24.103(b),  | incompatible with the airport    |
| ## Pro | RPZ, is   | and         | operations), the current         |
| ject I | airport   | provides    | restricted use and effects of    |
| nfluen | proximity | that on an  | airport proximity are considered |
| ce RPZ | a project | acquisition | to appraise the fair market      |
|  Acqui | influence | of real     | value of the property. The       |
| sition | that must | property    | appraiser must evaluate the      |
|        | be        | for a       | current property owner\'s        |
|        | dis       | Federally   | vertical area of effective       |
|        | regarded. | assisted    | possession, subject to FAR Part  |
|        |           | project the | 77 and local land use controls,  |
|        |           | appraiser   | as it relates to the highest and |
|        |           | shall       | best use of the property, and    |
|        |           | disregard   | also account for any market      |
|        |           | any         | effects airport proximity has on |
|        |           | decrease or | the fair market value of the     |
|        |           | increase in | property. Comparable property    |
|        |           | the fair    | sales for the appraisal are      |
|        |           | market      | properly selected from sales of  |
|        |           | value of    | property similarly located       |
|        |           | the real    | proximate to the airport, and    |
|        |           | property    | subject to same or comparable    |
|        |           | caused by   | legal restrictions as the        |
|        |           | the project | subject property.                |
|        |           | for which   |                                  |
|        |           | the         |                                  |
|        |           | property is |                                  |
|        |           | to be       |                                  |
|        |           | a           |                                  |
|        |           | cquired..." |                                  |
|        |           |             |                                  |
|        |           | This        |                                  |
|        |           | requirement |                                  |
|        |           | is          |                                  |
|        |           | applicable  |                                  |
|        |           | to the      |                                  |
|        |           | effects of  |                                  |
|        |           | the         |                                  |
|        |           | specific    |                                  |
|        |           | project for |                                  |
|        |           | which a     |                                  |
|        |           | property is |                                  |
|        |           | to be       |                                  |
|        |           | acquired.   |                                  |
|        |           | The         |                                  |
|        |           | influence   |                                  |
|        |           | of any      |                                  |
|        |           | particular  |                                  |
|        |           | airport     |                                  |
|        |           | project     |                                  |
|        |           | does not    |                                  |
|        |           | include the |                                  |
|        |           | p           |                                  |
|        |           | re-existing |                                  |
|        |           | condition   |                                  |
|        |           | that a      |                                  |
|        |           | property    |                                  |
|        |           | may have as |                                  |
|        |           | being       |                                  |
|        |           | located     |                                  |
|        |           | proximate   |                                  |
|        |           | to the      |                                  |
|        |           | airport and |                                  |
|        |           | to airport  |                                  |
|        |           | operations. |                                  |
+--------+-----------+-------------+----------------------------------+
| #      | May the   | The review  | On larger projects it may be     |
| # Appr | review    | a           | necessary to assign similar      |
| aisal  | appraiser | ppraiser\'s | acquisition parcels to several   |
| Review | approve   | first task  | appraisers who may report their  |
|        | an        | is to       | appraised value based on         |
| ### R  | appraisal | secure an   | different unit values for        |
| eviewe | but       | acceptable  | comparable property (e.g.        |
| r Dete | recommend | appraisal   | variance in \$/sq ft for         |
| rminat | a         | and prior   | commercial lots, variance in     |
| ion of | different | to          | \$/acre for agricultural land,   |
|  Value | value to  | acceptance  | etc.) From this range of         |
|        | secure    | the review  | accepted and documented          |
|        | unit      | appraiser   | appraised values the review      |
|        | value     | shall       | appraiser may select or          |
|        | co        | \"seek      | determine a single appraised     |
|        | nsistency | necessary   | unit value on which to recommend |
|        | on a      | corrections | the amount of just compensation  |
|        | project?  | or          | for comparable property project  |
|        |           | r           | wide.                            |
|        |           | evisions\". |                                  |
|        |           | However,    |                                  |
|        |           | the review  |                                  |
|        |           | appraiser   |                                  |
|        |           | must also   |                                  |
|        |           | ensure      |                                  |
|        |           | consistent  |                                  |
|        |           | and         |                                  |
|        |           | reliable    |                                  |
|        |           | appraised   |                                  |
|        |           | values are  |                                  |
|        |           | applied on  |                                  |
|        |           | a project   |                                  |
|        |           | wide basis. |                                  |
+--------+-----------+-------------+----------------------------------+

+--------+-----------+-------------+----------------------------------+
| Le     |           |             |                                  |
| sson's |           |             |                                  |
| Le     |           |             |                                  |
| arned: |           |             |                                  |
| Sol    |           |             |                                  |
| utions |           |             |                                  |
| to     |           |             |                                  |
| Common |           |             |                                  |
| Pr     |           |             |                                  |
| oblems |           |             |                                  |
| and    |           |             |                                  |
| Needs  |           |             |                                  |
|        |           |             |                                  |
| #      |           |             |                                  |
| Reside |           |             |                                  |
| ntial  |           |             |                                  |
| Reloca |           |             |                                  |
| tion A |           |             |                                  |
| ssista |           |             |                                  |
| nce fo |           |             |                                  |
| r Airp |           |             |                                  |
| ort Pr |           |             |                                  |
| ojects |           |             |                                  |
+========+===========+=============+==================================+
| Ca     | Problem / | Cost and    | Preferred Solution and FAA       |
| tegory | Need      | Quality     | Requirements                     |
|        |           | Issues      |                                  |
+--------+-----------+-------------+----------------------------------+
| ## R   | Is a      | To claim a  | When accepting a contract for    |
| eplace | "Contract | replacement | purchase the airport needs to    |
| ment H | for Deed" | housing     | determine that an actual         |
| ousing | s         | payment the | purchase has occurred and that   |
|  Payme | ufficient | displaced   | the terms of the conveyance are  |
| nts 18 | to        | homeowner   | reasonable and adequate to allow |
| 0-Day  | satisfy   | must        | the homeowner to maintain        |
| Owners | the       | actually    | occupancy. The following         |
|        | purchase  | purchase    | generally list the provisions    |
| ###    | re        | and occupy  | and terms a displaced homeowner  |
|  Payme | quirement | a           | or tenant should be advised to   |
| nt Eli | for a     | replacement | require on a contract for deed   |
| gibili | displaced | dwelling.   | purchase of a replacement        |
| ty, Pu | person to |             | dwelling. The contract for deed  |
| rchase | claim a   | A "Contract | must be written in recordable    |
|  Requi | re        | for Deed",  | form, and must be recorded.      |
| rement | placement | also known  |                                  |
|        | hosing    | as an       | The contract for deed must       |
|        | payment?  | installment | contain a "Certificate"          |
|        |           | "Land       | provision that requires the deed |
|        |           | Contract",  | to be executed at closing and    |
|        |           | is a real   | held in escrow pending final     |
|        |           | estate      | payment.                         |
|        |           | conveyance  |                                  |
|        |           | and         | At closing require title         |
|        |           | financing   | insurance with the purchaser     |
|        |           | instrument. | insured for "Equitable Title".   |
|        |           | A contract  |                                  |
|        |           | for deed    | The contract for deed must       |
|        |           | provides    | exclude a "Forfeiture" clause.   |
|        |           | for         | Exclusion of the forfeiture      |
|        |           | installment | clause protects the purchaser    |
|        |           | payments    | from an unreasonable seizure of  |
|        |           | with title  | the property for a contended     |
|        |           | to be       | default on contract terms or     |
|        |           | transferred | missed payments, without due     |
|        |           | upon making | process of law. In states where  |
|        |           | final       | judicial foreclosure is not      |
|        |           | payment.    | required, a contract for deed    |
|        |           |             | may not qualify as a             |
|        |           |             | reimbursable purchase if it      |
|        |           |             | includes a forfeiture clause.    |
|        |           |             |                                  |
|        |           |             | Document preparation and owners  |
|        |           |             | title insurance costs, (not to   |
|        |           |             | exceed costs for a comparable    |
|        |           |             | replacement dwelling), are       |
|        |           |             | reimbursable incidental          |
|        |           |             | expenses.                        |
+--------+-----------+-------------+----------------------------------+
| #### R | The       | An owner of | A person displaced from their    |
| eplace | airport   | a seasonal  | dwelling is eligible for a       |
| ment H | at a      | residence   | replacement housing payment      |
| ousing | resort    | (e.g.       | needed to purchase or lease and  |
|  Payme | location  | vacation    | occupy a comparable replacement  |
| nts 18 | is        | home) is    | dwelling as their permanent      |
| 0-Day  | acquiring | not         | residence. However, there is no  |
| Owners | some      | eligible    | obligation to assure a           |
|        | vacation  | for a       | replacement seasonal residence.  |
| ##     | cottages. | replacement | Although not entitled to a       |
| # Paym | Are the   | housing     | replacement housing payment, a   |
| ent El | owners of | payment. A  | person required to move from a   |
| igibil | these     | seasonal    | seasonal residence is a          |
| ity, S | seasonal  | residence,  | displaced person and is entitled |
| easona | r         | by          | to moving costs.                 |
| l resi | esidences | definition, |                                  |
| dences | entitled  | is not a    | A seasonal residence may be      |
|        | to        | person\'s   | distinguished from a person\'s   |
|        | re        | permanent   | permanent residence or domicile  |
|        | placement | or          | in that a domicile is the place  |
|        | housing   | customary   | of a person\'s fixed permanent   |
|        | payments? | and usual   | home and principle establishment |
|        |           | place of    | and to which place the person    |
|        |           | residence,  | when absent has full intention   |
|        |           | or the      | of returning. Normally, a        |
|        |           | person\'s   | person\'s permanent residence or |
|        |           | dwelling as | home is apparent and there is no |
|        |           | defined at  | need to verify that an acquired  |
|        |           | 49 CFR Part | residence is the occupant\'s     |
|        |           | 24.2(h).    | permanent home. However when     |
|        |           |             | questionable, the airport        |
|        |           |             | sponsor would need to verify     |
|        |           |             | that an acquired property is in  |
|        |           |             | fact a person\'s permanent       |
|        |           |             | residence prior to establishing  |
|        |           |             | replacement housing payment      |
|        |           |             | eligibility. Primary proof of a  |
|        |           |             | person\'s permanent residence is |
|        |           |             | the residence reported for       |
|        |           |             | purposes of paying income taxes, |
|        |           |             | both Federal and state.          |
|        |           |             | Additional proof of permanent    |
|        |           |             | residence may be the place of    |
|        |           |             | voter registration, driver\'s    |
|        |           |             | license, or other documentation  |
|        |           |             | of legal domicile.               |
+--------+-----------+-------------+----------------------------------+
| #### R | A         | Clearly, a  | It is FAA policy that comparable |
| eplace | homeowner | person      | replacement housing used to      |
| ment H | would     | displaced   | compute the replacement housing  |
| ousing | like to   | from a      | payment (RHP) eligibility is not |
|  Payme | relocate  | buy-out     | selected from within the         |
| nts 18 | from the  | project     | airport\'s 65 dB DNL noise       |
| 0-Day  | noise     | would not   | contour. FAA policy also         |
| Owners | buyout    | be eligible | provides that a RHP is only      |
|        | project   | for any     | payable to a displaced person    |
| ##     | to a      | assistance  | who elects to purchase a noise   |
| # Paym | re        | to move to  | impacted replacement dwelling,   |
| ent El | placement | another     | if the dwelling is already       |
| igibil | home      | area that   | soundproof or is adequately      |
| ity, N | located   | is proposed | soundproofed prior to purchase.  |
| oise P | within    | for         |                                  |
| roject | the       | buy-out.    | If an eligible homeowner chooses |
|        | airport's | However, a  | to relocate to a soundproofing   |
|        | noise     | person      | area, the RHP eligibility may be |
|        | contours. | displaced   | applied to the cost of           |
|        |           | from a      | soundproofing. The soundproofing |
|        | Would     | buyout      | cost must be included the sales  |
|        | they be   | program may | contract and the work completed  |
|        | eligible  | have good   | prior to or committed at         |
|        | for       | reason to   | settlement. With adherence to    |
|        | m         | remain in   | the referenced FAA policies on   |
|        | itigation | the         | computation and payment of the   |
|        | measures  | immediate   | RHP, there is no additional cost |
|        | offered   | area (e.g.  | to the government or duplicative |
|        | at the    | proximity   | benefits should a displaced      |
|        | re        | to          | person elect to move from a      |
|        | placement | employment, | buyout area into a soundproofing |
|        | housing   | a           | area.                            |
|        | location? | vailability |                                  |
|        |           | of          |                                  |
|        |           | affordable  |                                  |
|        |           | housing),   |                                  |
|        |           | and a sound |                                  |
|        |           | replacement |                                  |
|        |           | housing     |                                  |
|        |           | choice may  |                                  |
|        |           | be to move  |                                  |
|        |           | into a      |                                  |
|        |           | noi         |                                  |
|        |           | se-impacted |                                  |
|        |           | area where  |                                  |
|        |           | so          |                                  |
|        |           | undproofing |                                  |
|        |           | assistance  |                                  |
|        |           | is offered. |                                  |
+--------+-----------+-------------+----------------------------------+
| #### R | A         | As is       | To conform to the payment        |
| eplace | homeowner | feasible    | eligibility requirements the     |
| ment H | wants to  | the airport | displaced homeowner is required  |
| ousing | include   | may work    | to include any rehabilitation or |
|  Payme | the cost  | with the    | home improvement work as part of |
| nts 18 | of        | displaced   | the sales agreement, and/or in   |
| 0-Day  | rehab     | homeowner's | the mortgage financing for the   |
| Owners | ilitation | purchase of | purchase and improvement of the  |
|        | or home   | a           | replacement dwelling. The        |
| ### P  | im        | replacement | rehabilitation or home           |
| ayment | provement | dwelling    | improvement financing should be  |
|  Eligi | in the    | they intend | adequately structured with among |
| bility | purchase  | to improve. | other requirements; adequate     |
| , Home | price of  |             | building plans and               |
|  ReHab | a         | Given an    | specifications for the work      |
|        | re        | a           | prepared conforming to local     |
|        | placement | vailability | building codes and lender        |
|        | dwelling  | of          | requirements, enforceable        |
|        | and claim | comparable  | contractor guarantees, fire and  |
|        | their     | replacement | hazard insurance requirements,   |
|        | re        | dwellings   | and bonding to assure            |
|        | placement | at the time | satisfactory work and scheduled  |
|        | housing   | of          | completion.                      |
|        | payment   | di          |                                  |
|        | (RHP)     | splacement, | Cost to add luxury items,        |
|        | eli       | there is no | ornamentation, or unusual or     |
|        | gibility. | provision   | atypical features also not       |
|        |           | for any     | eligible for reimbursement on a  |
|        |           | additional  | replacement housing payment      |
|        |           | payments    | claim.                           |
|        |           | for cost    |                                  |
|        |           | incurred by | There is a significant source of |
|        |           | a displaced | home improvement mortgage        |
|        |           | homeowner   | financing via the [HUD/FHA 203k  |
|        |           | undertaking | loans](http://www.hud.gov/of     |
|        |           | home        | fices/hsg/sfh/203k/203kabou.cfm) |
|        |           | improvement | that may be available for        |
|        |           | if          | displaced homeowners to improve  |
|        |           | occupancy   | a replacement dwelling           |
|        |           | of a DSS    | consistent with replacement      |
|        |           | dwelling is | housing payment eligibility      |
|        |           | delayed.    | requirements and limitations.    |
|        |           |             | Typically under acceptable       |
|        |           |             | purchase and home improvement    |
|        |           |             | mortgage financing the home      |
|        |           |             | improvement work must be         |
|        |           |             | completed and accepted no more   |
|        |           |             | than 6 months following closing  |
|        |           |             | on the purchase.                 |
+--------+-----------+-------------+----------------------------------+
| #### R | May aged  | For persons | An airport may allow the         |
| eplace | or        | with        | displaced owner's computed       |
| ment H | disabled  | failing     | purchase price differential to   |
| ousing | displaced | abilities   | be applied to the rental cost of |
|  Payme | h         | to carryout | the assisted or independent      |
| nts 18 | omeowners | the         | living facility, subject to the  |
| 0-Day  | apply     | "Activities | following conditions.            |
| Owners | their     | of Daily    |                                  |
|        | re        | Living"[^1] | The payment amount is computed   |
| ###    | placement | needed for  | as a rental assistance payment   |
|  Purch | housing   | home        | to reflect the increased actual  |
| ase Pr | payments  | ownership,  | cost of the care facility versus |
| ice Di | for lease | the         | the economic rent of the         |
| fferen | payments  | relocation  | acquired dwelling. The total     |
| tial,  | at an     | choice best | rental assistance payments made  |
| Conver | as        | offered at  | shall not exceed the computed    |
| sion o | sisted/in | d           | price differential eligibility   |
| f Paym | dependent | isplacement | for the purchase of a comparable |
| ent, E | living    | for an      | dwelling.                        |
| lderly | facility  | airport     |                                  |
|  or Di | versus    | project may | The replacement housing payment  |
| sabled | purchase  | be an       | eligibility, less the amounts    |
|  Displ | of a      | assisted/   | paid for assisted care facility, |
| aced P | re        | independent | remains available to be applied  |
| ersons | placement | living      | to a purchase of a DSS dwelling  |
|        | dwelling? | facility    | during or at the end of the one  |
|        |           | with the    | year eligibility period          |
|        |           | capacity to | following displacement from the  |
|        |           | provide     | acquired home.                   |
|        |           | services    |                                  |
|        |           | for lost or | An airport should develop        |
|        |           | failing     | procedures and qualification     |
|        |           | abilities.  | criteria for the application of  |
|        |           |             | payment eligibility to           |
|        |           | The airport | assisted/independent living      |
|        |           | is          | costs. A qualified displaced     |
|        |           | obligated   | homeowner and their family       |
|        |           | to provide  | should also seek counseling      |
|        |           | relocation  | services on long term care       |
|        |           | assistance  | options, estate planning and tax |
|        |           | to minimize | considerations, Medicare, and    |
|        |           | hardships   | private insurance benefits in    |
|        |           | to persons  | order to weigh their replacement |
|        |           | adjusting   | housing options of either        |
|        |           | to          | purchase of a home or assisted   |
|        |           | relocation. | living care.                     |
|        |           | This        |                                  |
|        |           | assistance  |                                  |
|        |           | does not    |                                  |
|        |           | require an  |                                  |
|        |           | airport to  |                                  |
|        |           | provide     |                                  |
|        |           | additional  |                                  |
|        |           | payments,   |                                  |
|        |           | but in      |                                  |
|        |           | response to |                                  |
|        |           | the needs   |                                  |
|        |           | of          |                                  |
|        |           | displaced   |                                  |
|        |           | aged or     |                                  |
|        |           | disabled    |                                  |
|        |           | person, the |                                  |
|        |           | help        |                                  |
|        |           | provided    |                                  |
|        |           | may be to   |                                  |
|        |           | apply the   |                                  |
|        |           | 180-day     |                                  |
|        |           | owner       |                                  |
|        |           | payment     |                                  |
|        |           | (purchase   |                                  |
|        |           | price       |                                  |
|        |           | di          |                                  |
|        |           | fferential) |                                  |
|        |           | eligibility |                                  |
|        |           | to assisted |                                  |
|        |           | care cost.  |                                  |
+--------+-----------+-------------+----------------------------------+
| #### R | Is the    | Conforming  | If the just compensation amount  |
| eplace | Purchase  | to 49 CFR   | is increased during the course   |
| ment H | Price     | 24          | of timely purchase negotiations  |
| ousing | Dif       | .203(c)(3), | the PPD amount that may be       |
|  Payme | ferential | a displaced | claimed is reduced for the       |
| nts 18 | (PPD)     | homeowner   | increased acquisition payment to |
| 0-Day  | amount    | shall not   | the displaced homeowner (per the |
| Owners | r         | be required | computation specified at 49 CFR  |
|        | ecomputed | to vacate   | 24.401(c)).                      |
| ### P  | if the    | their       |                                  |
| urchas | just      | dwelling    |                                  |
| e Pric | com       | until at    |                                  |
| e Diff | pensation | least 90    |                                  |
| erenti | offer is  | days        |                                  |
| al Rec | increased | following   |                                  |
| ompute | due to a  | the date    |                                  |
|  Eligi | s         | which a     |                                  |
| bility | ettlement | comparable  |                                  |
|        | following | dwelling is |                                  |
|        | the PPD   | made        |                                  |
|        | offer and | available.  |                                  |
|        | the       | The airport |                                  |
|        | a         | PPD offer   |                                  |
|        | irport\'s | provided    |                                  |
|        | issuance  | the         |                                  |
|        | of 90-day | displaced   |                                  |
|        | notice to | homeowner   |                                  |
|        | vacate to | satisfies   |                                  |
|        | the       | this        |                                  |
|        | displaced | p           |                                  |
|        | h         | rerequisite |                                  |
|        | omeowner? | that a      |                                  |
|        |           | comparable  |                                  |
|        |           | dwelling be |                                  |
|        |           | \"made      |                                  |
|        |           | available\" |                                  |
|        |           | (49 CFR     |                                  |
|        |           | 24.204(a)), |                                  |
|        |           | and allows  |                                  |
|        |           | n           |                                  |
|        |           | egotiations |                                  |
|        |           | to proceed  |                                  |
|        |           | to the      |                                  |
|        |           | airports    |                                  |
|        |           | purchase    |                                  |
|        |           | and         |                                  |
|        |           | possession  |                                  |
|        |           | of the      |                                  |
|        |           | property.   |                                  |
+--------+-----------+-------------+----------------------------------+
| #### R | To        | A homeowner | It is required that a displaced  |
| eplace | receive   | usually     | homeowner actually purchase and  |
| ment H | their     | needs the   | occupy a DSS replacement         |
| ousing | purchase  | full        | dwelling within one year of      |
|  Payme | price     | eligible    | displacement to be able to claim |
| nts 18 | dif       | PPD amount  | their PPD as part of their       |
| 0-Day  | ferential | to purchase | replacement housing payment      |
| Owners | (PPD) is  | their       | eligibility.                     |
|        | a         | replacement |                                  |
| ###    | displaced | home. The   | With adequate supporting         |
|  Purch | 180-day   | full PPD    | documentation of the actual      |
| ase Pr | homeowner | amount must | purchase and purchase price paid |
| ice Di | required  | be          | for the DSS replacement dwelling |
| fferen | to apply  | available   | (certified settlement sheet,     |
| tial A | the PPD   | to the      | deed, etc.) the homeowner may    |
| pplied | as a      | displaced   | (among other requirements) claim |
|  at Pu | do        | homeowner   | reimbursement for the entire     |
| rchase | wnpayment | at          | eligible PPD although not apply  |
|        | for the   | settlement. | the amount as downpayment for    |
|        | purchase  | However,    | the purchase.                    |
|        | of their  | the         |                                  |
|        | re        | homeowner   |                                  |
|        | placement | may opt for |                                  |
|        | dwelling? | mortgage    |                                  |
|        |           | financing   |                                  |
|        |           | that allows |                                  |
|        |           | a lesser    |                                  |
|        |           | downpayment |                                  |
|        |           | at          |                                  |
|        |           | settlement. |                                  |
+--------+-----------+-------------+----------------------------------+
| #### R | Interest  | A 180-day   | Replacement mortgage offerings   |
| eplace | rates     | homeowner   | typically include different      |
| ment H | have      | is entitled | interest rates and points. Of    |
| ousing | risen     | to a        | the available mortgages, the     |
|  Payme | slightly  | mortgage    | available mortgage with the      |
| nts 18 | over the  | d           | lowest Annual Percentage Rate    |
| 0-Day  | past      | ifferential | (APR) will typically prove to be |
| Owners | year.     | payment for | the most cost effective. The     |
|        | Re        | the         | airport should base its MID      |
| ### Mo | placement | increased   | eligibility on the most cost     |
| rtgage | mortgages | cost of     | effective loan available.        |
|  Inter | are       | mortgage    |                                  |
| est Di | available | interest    | FAA form 5100-123 computes the   |
| fferen | at the    | incurred    | Mortgage Interest Differential   |
| tial P | same rate | due to      | (MID) payment eligibility based  |
| ayment | and terms | di          | on the regulatory requirements   |
|        | as        | splacement. | (49 CFR 24.401 (d)). If an equal |
|        | displaced | The airport | replacement mortgage rate is     |
|        | owners    | may provide | available with additional        |
|        | had on    | this        | points, the airport may compute  |
|        | the       | payment in  | the MID eligibility based on the |
|        | acquired  | the most    | prevailing rate at lesser        |
|        | home, but | cost        | points, or at the equal rate     |
|        | with      | effective   | with additional points. The      |
|        | payment   | manner.     | outstanding mortgage balance and |
|        | of        |             | remaining amortization term on   |
|        | a         |             | the acquired home will determine |
|        | dditional |             | if the payment of additional     |
|        | points.   |             | points for a lower rate is the   |
|        |           |             | most cost effective. The less    |
|        |           |             | costly payment eligibility would |
|        |           |             | be the MID payment eligibility   |
|        |           |             | offered.                         |
+--------+-----------+-------------+----------------------------------+
| #### R | May the   | Under       | [FAA form                        |
| eplace | mortgage  | conditions  | 5100                             |
| ment H | interest  | of          | -123ARM](http://www.faa.gov/arp/ |
| ousing | dif       | increasing  | app600/49cfr24/Forms/midarm.xlt) |
|  Payme | ferential | mortgage    | compares interest cost           |
| nts 18 | payment   | rates it    | differentials between available  |
| 0-Day  | (MID)     | may be      | ARM or fixed rate mortgages to   |
| Owners | el        | expected    | compute the MID payment          |
|        | igibility | that        | eligibility for a                |
| ### Mo | be        | replacement | pre-displacement ARM as of the   |
| rtgage | computed  | ARM         | date of acquisition. As required |
|  Inter | for a     | mortgages   | by 49 CFR 24.401(d), a MID       |
| est Di | pre-dis   | are the     | eligibility shall be based only  |
| fferen | placement | more cost   | on bona fide mortgages that were |
| tial P | A         | effective   | valid liens on the acquired      |
| ayment | djustable | replacement | property at least 180 days prior |
|        | Rate      | mortgage    | to the initiation of             |
|        | Mortgage  | financing   | negotiations; and payment of the |
|        | (ARM)     | for a       | computed MID eligibility is      |
|        | based on  | pre-d       | contingent upon a mortgage being |
|        | an        | isplacement | placed on the replacement        |
|        | available | ARM.        | dwelling.                        |
|        | re        |             |                                  |
|        | placement |             | If a replacement ARM with        |
|        | ARM if    |             | equivalent rate adjustment       |
|        | more cost |             | specifications and terms as the  |
|        | effective |             | pre-displacement ARM is          |
|        | than the  |             | available at a less interest     |
|        | available |             | cost differential than the fixed |
|        | fixed     |             | rate mortgage, the available ARM |
|        | interest  |             | should be used to compute the    |
|        | mortgage? |             | MID eligibility.                 |
+--------+-----------+-------------+----------------------------------+
| #### R | The       | A buyer\'s  | The buyer\'s agent contract may  |
| eplace | h         | agent\'s    | state that the commission is     |
| ment H | omeowners | commission  | paid "on behalf of the buyer",   |
| ousing | want to   | is          | but as the fee comes from the    |
|  Payme | use a     | typically   | home seller\'s proceeds the cost |
| nts 18 | \         | paid by the | is not an incidental expense of  |
| 0-Day  | "Buyer\'s | home seller | the displaced homeowner.         |
| Owners | Agent\".  | at closing  |                                  |
|        | Are the   | and is      |                                  |
| ### I  | fees      | divided     |                                  |
| nciden | eligible  | between the |                                  |
| tal Ex | as an     | listing     |                                  |
| penses | i         | broker and  |                                  |
|        | ncidental | buyer\'s    |                                  |
|        | expense   | agent       |                                  |
|        | for       | broker.     |                                  |
|        | displaced |             |                                  |
|        | hom       |             |                                  |
|        | eowner\'s |             |                                  |
|        | purchase  |             |                                  |
|        | of a      |             |                                  |
|        | re        |             |                                  |
|        | placement |             |                                  |
|        | dwelling? |             |                                  |
+--------+-----------+-------------+----------------------------------+
| #      | A tenant  | A tenant    | A person occupying real property |
| # Repl | in        | who moves   | that is acquired for an AIP      |
| acemen | occupancy | after the   | assisted project is eligible for |
| t Hous | of a      | initiation  | applicable relocation payments   |
| ing Pa | house     | of          | as of the initiation of          |
| yments | being     | negotiation | negotiations or if in occupancy  |
|  90-Da | acquired  | and notice  | on the property when required to |
| y Tena | for a     | of          | move due to the acquisition of   |
| nt Occ | noise     | relocation  | the property. For any proposed   |
| upants | buy-out   | eligibility | acquisition of occupied          |
|        | project   | may be      | property, the airport is         |
| #      | may move  | eligible    | obligated to advise occupants of |
| ## Ten | after the | for         | their relocation eligibility as  |
| ant Oc | i         | relocation  | soon as possible after the       |
| cupant | nitiation | payments.   | initiation of negotiations.      |
| s, Noi | of        |             | However, where eminent domain is |
| se Buy | nego      | For         | not to be employed, the airport  |
| out Pr | tiations. | projects    | should further advise occupants  |
| ojects | However,  | where       | that relocation payments will    |
|        | the       | a           | only be made should the property |
|        | property  | cquisitions | be acquired for the project.     |
|        | owner may | are not     |                                  |
|        | decline   | being made  | To preclude misunderstandings on |
|        | the       | under       | payment eligibility, it is       |
|        | airport's | threat of   | recommended that the relocation  |
|        | offer to  | c           | eligibility letter to a tenant   |
|        | purchase  | ondemnation | occupant include a notice        |
|        | the       | (e.g., some | similar to the following:        |
|        | property. | noise       |                                  |
|        | Will the  | buyout      | *"Please note that prior to the  |
|        | airport   | projects),  | Airport Authority's acquisition  |
|        | have to   | tenants and | of your leased property you      |
|        | pay the   | owner       | remain obligated to your present |
|        | tenant's  | occupants   | lease for payment of rent and    |
|        | r         | should be   | other terms and conditions of    |
|        | elocation | advised     | your lease. Also, should an      |
|        | costs if  | that they   | agreement for the airport's      |
|        | the       | are not     | purchase of the property not be  |
|        | property  | displaced   | secured with the property owner, |
|        | is not    | if the      | you will not be required to      |
|        | acquired  | airport     | vacate the property by the       |
|        | for the   | does not    | airport, and this notice of      |
|        | project?  | acquire the | relocation eligibility is        |
|        |           | property.   | withdrawn."*                     |
|        |           |             |                                  |
|        |           |             | [Attachment                      |
|        |           |             | A](#_Attachment_A:__1) provides  |
|        |           |             | a sample relocation eligibility  |
|        |           |             | letter that includes this        |
|        |           |             | notice. It is also recommended   |
|        |           |             | to assure equity on these        |
|        |           |             | projects that, as practical, a   |
|        |           |             | property be negotiated for       |
|        |           |             | purchase within the lease term   |
|        |           |             | of tenants in occupancy at the   |
|        |           |             | initiation of negotiations.      |
+--------+-----------+-------------+----------------------------------+
| ##     | May the   | If          | Should a homeowner appeal the    |
| Replac | displaced | d           | sponsor\'s selection of a        |
| ement  | homeowner | issatisfied | comparable dwelling, the sponsor |
| Housin | appeal    | with an     | must fully and objectively       |
| g Paym | re        | offer of    | consider the owner\'s request    |
| ents G | placement | relocation  | against all the defined          |
| eneral | housing   | eligibility | comparable dwelling criteria     |
|        | payment   | the         | (defined at 49 CFR 24.2(a)).     |
| ### A  | offered   | displaced   | Where the homeowner\'s request   |
| ppeals | and       | person has  | is reasonable under the criteria |
|        | computed  | the right   | the sponsor may adjust the       |
|        | based on  | to make an  | replacement housing payment      |
|        | FAA       | appeal with | eligibility. The sponsor may     |
|        | guidance? | the airport | also accept part of the appeal   |
|        |           | sponsor.    | and adjust its offers, and       |
|        |           |             | reject the ineligible portion of |
|        |           | The         | the appeal request.              |
|        |           | sponsor\'s  |                                  |
|        |           | relocation  | If the appeal is denied the      |
|        |           | agent       | sponsor must fully document why  |
|        |           | should      | based on applicable regulatory   |
|        |           | first make  | requirements. An appeal          |
|        |           | all         | determination may not result in  |
|        |           | reasonable  | a reduction in relocation        |
|        |           | efforts to  | assistance services or in the    |
|        |           | fully       | amount of the existing payment   |
|        |           | explain the | eligibility offers presented the |
|        |           | basis of    | displaced occupants by the       |
|        |           | the         | sponsor, (barring significant    |
|        |           | relocation  | error in the initial             |
|        |           | offers. A   | computations).                   |
|        |           | qualified   |                                  |
|        |           | relocation  | If the appeal is denied, the     |
|        |           | agent has   | Sponsor shall provide the        |
|        |           | sufficient  | displaced person its appeal      |
|        |           | discretion  | finding in writing. The Sponsor  |
|        |           | within the  | shall also advise the displaced  |
|        |           | relocation  | person of their right to         |
|        |           | assistance  | judicial review of the Sponsor's |
|        |           | program     | appeal decision.                 |
|        |           | guidelines  |                                  |
|        |           | to respond  |                                  |
|        |           | to the      |                                  |
|        |           | displaced   |                                  |
|        |           | person\'s   |                                  |
|        |           | preferences |                                  |
|        |           | and needs   |                                  |
|        |           | to assure   |                                  |
|        |           | comparable  |                                  |
|        |           | housing is  |                                  |
|        |           | made        |                                  |
|        |           | available.  |                                  |
+--------+-----------+-------------+----------------------------------+
| ####   | What is   | The FAA     | The FAA may provide technical    |
| Replac | the FAA   | assists     | assistance in evaluating the     |
| ement  | role in a | airport     | sponsor\'s appeal decisions, but |
| Housin | disputed  | sponsors to | the FAA is not a party to the    |
| g Paym | r         | conform to  | dispute and may not be directly  |
| ents G | elocation | program and | involved in the appeal. In the   |
| eneral | appeal    | Federal     | event that a case is accepted    |
|        | deter     | re          | for review in Federal court the  |
| ###    | mination? | quirements, | sponsor should advise FAA of the |
|  Appea |           | FAA Order   | pending suit to allow FAA review |
| ls, FA |           | 5100.37 and | of the issues that may have      |
| A Role |           | the FAA AC  | precedent or involve Federal     |
|        |           | 150.5100-17 | policy or regulatory issues.     |
|        |           | may be      |                                  |
|        |           | cited in    | The sponsor must assure that its |
|        |           | sponsors    | relocation payment eligibility   |
|        |           | acceptance  | and assistance documentation     |
|        |           | or          | provide a sufficient             |
|        |           | rejection   | administrative record for        |
|        |           | of an       | judicial review. Lacking         |
|        |           | appeal      | sufficient documentation to      |
|        |           | claim.      | fully support its determinations |
|        |           |             | the sponsor may be found to be   |
|        |           | Generally   | \"arbitrary and capricious\" and |
|        |           | on AIP land | its appeal determinations        |
|        |           | projects    | reversed and/or remanded for     |
|        |           | less than   | reconsideration consistent with  |
|        |           | 2% of       | the governing regulations and    |
|        |           | relocation  | any findings of the court. Where |
|        |           | cases go to | the public interest is served    |
|        |           | formal      | the sponsor may pursue           |
|        |           | appeal.     | reasonable settlement of a       |
|        |           |             | disputed claim in lieu of trial  |
|        |           |             | and any extended and expensive   |
|        |           |             | litigation.                      |
+--------+-----------+-------------+----------------------------------+
| ##     | A         | The fixed   | Normally, the expense of a       |
|  Resid | homeowner | schedule or | residential household move may   |
| ential | wants to  | commercial  | be accomplished by fixed cost    |
|  Movin | move his  | move may    | schedule or at actual cost of a  |
| g Cost | "co       | not be      | commercial move. However, where  |
|        | llection" | feasible    | significant non-household        |
| #      | of        | for         | personal property must be moved  |
| ## Act | vintage   | no          | some discretion, within the      |
| ual Co | cars and  | n-household | prescribed eligible limits, is   |
| st Sel | parts in  | personalty; | available for a self-move        |
| f Move | the       | such as     | agreement with the displaced     |
|        | backyard  | numerous    | homeowner. The owner may also    |
|        | as a      | a           | opt for a commercial actual cost |
|        | s         | utomobiles, | move.                            |
|        | elf-move. | large lots  |                                  |
|        | C         | of          | The self-move agreement amount   |
|        | ommercial | automotive  | would reflect the hard moving    |
|        | mover     | parts,      | costs anticipated and require    |
|        | bids to   | extensive   | actual cost receipts for         |
|        | move the  | machinery   | reimbursement of the needed      |
|        | c         | and         | truck and equipment rental and   |
|        | ollection | equipment,  | packing material purchases. The  |
|        | are       | or an       | amount of reimbursable labor     |
|        | ex        | extensive   | cost provided in the agreement   |
|        | orbitant. | collection  | would be based on the typical    |
|        | May the   | (antiques,  | commercial mover labor wage      |
|        | airport   | m           | rates in the project area        |
|        | enter a   | emorabilia, | (exclusive of any overhead,      |
|        | self-move | etc.) that  | insurance, or profit) as         |
|        | agreement | requires    | required for the proposed work.  |
|        | (i.e. a   | special     | The self move agreement should   |
|        | n         | handling to | cite the date the property will  |
|        | egotiated | move.       | be cleared and provide that      |
|        | amount    |             | failing to complete all or any   |
|        | based on  | For such    | part of the move precludes       |
|        | actual    | cases       | payment for the work not         |
|        | move      | commercial  | performed. Also, the agreement   |
|        | cost)     | move cost   | should provide that property not |
|        | with the  | may even    | moved is abandoned and may be    |
|        | displaced | exceed the  | sold or scrapped. To the extent  |
|        | homeowner | value of    | commensurate with the cost       |
|        | for this  | the items   | exposure, monitoring should be   |
|        | move?     | to be       | performed to verify actual work  |
|        |           | moved.      | and cost incurred. The payment   |
|        |           |             | for accepted work prescribed in  |
|        |           |             | the self-move agreement may be   |
|        |           |             | claimed in addition to the       |
|        |           |             | commercial or fixed schedule     |
|        |           |             | expense of moving household      |
|        |           |             | items.                           |
+--------+-----------+-------------+----------------------------------+

+--------+-----------+-------------+----------------------------------+
| Le     |           |             |                                  |
| sson's |           |             |                                  |
| Le     |           |             |                                  |
| arned: |           |             |                                  |
| Sol    |           |             |                                  |
| utions |           |             |                                  |
| to     |           |             |                                  |
| Common |           |             |                                  |
| Pr     |           |             |                                  |
| oblems |           |             |                                  |
| and    |           |             |                                  |
| Needs  |           |             |                                  |
|        |           |             |                                  |
| # Non- |           |             |                                  |
| Reside |           |             |                                  |
| ntial  |           |             |                                  |
| Reloca |           |             |                                  |
| tion A |           |             |                                  |
| ssista |           |             |                                  |
| nce fo |           |             |                                  |
| r Airp |           |             |                                  |
| ort Pr |           |             |                                  |
| ojects |           |             |                                  |
+========+===========+=============+==================================+
| Ca     | Problem / | Cost and    | Preferred Solution and FAA       |
| tegory | Need      | Quality     | Requirements                     |
|        |           | Issues      |                                  |
+--------+-----------+-------------+----------------------------------+
| ## Non | To move   | The cost to | Sponsor relocation staff must    |
| -Resid | machinery | connect to  | correctly advise the displaced   |
| ential | and       | utilities   | business on the eligibility of   |
|  Movin | equipment | available   | proposed moving expenses.        |
| g Cost | and put   | at the      | Installation of moved or         |
|        | in        | replacement | replaced machinery and equipment |
| ##     | working   | site is     | is eligible as moving costs. The |
| # Reco | order at  | eligible.   | reasonable costs necessary to    |
| nnect  | a         | This        | set up the machinery, connect it |
| and Re | re        | includes    | to necessary utilities           |
| instal | placement | adapting    | (available on the replacement    |
| lation | site may  | and running | property) and put it in working  |
|        | require   | utilities   | order at the replacement         |
|        | si        | to          | property are eligible. Eligible  |
|        | gnificant | machinery   | moving expense to install moved  |
|        | cost to   | within the  | machinery should not involve     |
|        | install   | building at | significant construction or      |
|        | and       | the         | reengineering at the replacement |
|        | connect   | replacement | property.                        |
|        | to power  | site.       |                                  |
|        | and other |             | The cost required to modify the  |
|        | utility   | Some minor  | replacement real property to     |
|        | requ      | changes to  | accommodate the displaced        |
|        | irements. | the         | business itself are ineligible   |
|        | What is   | replacement | as moving expense. However,      |
|        | the limit | real        | under the reestablishment        |
|        | for this  | property    | expense provisions (49 CFR       |
|        | cost      | may be      | 24.304) some cost to modify or   |
|        | under     | necessary   | adapt the real property for a    |
|        | eligible  | for         | displaced small business may be  |
|        | moving    | in          | eligible, not to exceed \$10,000 |
|        | expenses? | stallation. | for all eligible items incurred. |
|        |           | Typically   |                                  |
|        |           | these would |                                  |
|        |           | include     |                                  |
|        |           | c           |                                  |
|        |           | onstruction |                                  |
|        |           | of pits,    |                                  |
|        |           | pads, and   |                                  |
|        |           | foundations |                                  |
|        |           | to install  |                                  |
|        |           | moved       |                                  |
|        |           | machinery.  |                                  |
|        |           |             |                                  |
|        |           | For         |                                  |
|        |           | example,    |                                  |
|        |           | vibrations  |                                  |
|        |           | from        |                                  |
|        |           | running     |                                  |
|        |           | machinery   |                                  |
|        |           | may require |                                  |
|        |           | a concrete  |                                  |
|        |           | pad at the  |                                  |
|        |           | machine     |                                  |
|        |           | site to     |                                  |
|        |           | prevent     |                                  |
|        |           | damage to   |                                  |
|        |           | the floor   |                                  |
|        |           | or the      |                                  |
|        |           | machinery.  |                                  |
|        |           | The         |                                  |
|        |           | replacement |                                  |
|        |           | property    |                                  |
|        |           | floor must  |                                  |
|        |           | support     |                                  |
|        |           | commercial  |                                  |
|        |           | or          |                                  |
|        |           | industrial  |                                  |
|        |           | use, but    |                                  |
|        |           | individual  |                                  |
|        |           | pieces of   |                                  |
|        |           | machinery   |                                  |
|        |           | may require |                                  |
|        |           | extra       |                                  |
|        |           | bracing or  |                                  |
|        |           | support.    |                                  |
+--------+-----------+-------------+----------------------------------+
| ##     | The       | An eligible | The allowable in-place value     |
| ## Non | Direct    | displaced   | estimate must reflect only the   |
| -Resid | Loss of   | business    | "as is" condition and            |
| ential | Tangible  | may choose  | installation of the item at the  |
|  Movin | Personal  | a DLTPP     | displacement site.               |
| g Cost | Property  | claim when  |                                  |
|        | (DLTPP)   | the         | This in-place value may not      |
| ###    | claim     | displaced   | include costs that reflect code  |
|  Direc | option    | business is | or other requirements that were  |
| t Loss | needs     | d           | not in effect at the             |
|  of Ta | clari     | iscontinued | displacement site; or include    |
| ngible | fication. | or will not | installation costs for machinery |
|  Perso | What      | move or     | or equipment that is not         |
| nal Pr | costs and | replace an  | operable or not installed at the |
| operty | values    | item at its | displacement site.               |
|        | are       | replacement |                                  |
|        | included  | site. Under | The allowable moving cost        |
|        | and what  | 24.         | estimate may only include        |
|        | is        | 301(g)(14), | reconnect cost that would be     |
|        | excluded? | a displaced | necessary to install the item as |
|        |           | business    | it is installed at the           |
|        |           | may claim   | displacement site. The moving    |
|        |           | the lesser  | cost estimate may not include    |
|        |           | of the      | any reconnect costs for an item  |
|        |           | val         | that is not operable or          |
|        |           | ue-in-place | installed at the displacement    |
|        |           | of an item  | site.                            |
|        |           | "As Is" for |                                  |
|        |           | continued   | A sample eligible direct loss    |
|        |           | use (less   | payment claim is shown in        |
|        |           | sales       | [                                |
|        |           | proceeds);  | Attachment B](#_Attachment_B:_). |
|        |           | or the      |                                  |
|        |           | estimated   |                                  |
|        |           | moving cost |                                  |
|        |           | for the     |                                  |
|        |           | item as     |                                  |
|        |           | installed   |                                  |
|        |           | at the      |                                  |
|        |           | d           |                                  |
|        |           | isplacement |                                  |
|        |           | site.       |                                  |
|        |           |             |                                  |
|        |           | An eligible |                                  |
|        |           | displaced   |                                  |
|        |           | business    |                                  |
|        |           | also has    |                                  |
|        |           | the option  |                                  |
|        |           | to replace  |                                  |
|        |           | personal    |                                  |
|        |           | property    |                                  |
|        |           | items under |                                  |
|        |           | the         |                                  |
|        |           | substitute  |                                  |
|        |           | property    |                                  |
|        |           | provisions. |                                  |
+--------+-----------+-------------+----------------------------------+
| ##     | Is the    | The rental  | Eligible expenses include the    |
| Reesta | non       | of real     | reasonable cost to paint,        |
| blish- | -occupant | property is | replace worn carpets, and        |
| ment E | owner     | a business. | perform other "fix-up" work      |
| xpense | (         | A landlord  | necessary to offer the purchased |
|        | landlord) | owner of    | rental property at its market    |
| ##     | of an     | acquired    | rent. It is FAA policy that      |
| # Rent | acquired  | si          | costs to improve a substandard   |
| al of  | sing      | ngle-family | house to allow occupancy and     |
| Single | le-family | homes may   | rental are capital improvements  |
|  Famil | house     | be          | and are not eligible             |
| y Home | entitled  | considered  | reestablishment expense.         |
|        | to a      | a displaced |                                  |
|        | business  | small       |                                  |
|        | reesta    | business    |                                  |
|        | blishment | and claim   |                                  |
|        | payment?  | eligible    |                                  |
|        |           | expenses to |                                  |
|        |           | reestablish |                                  |
|        |           | their       |                                  |
|        |           | business.   |                                  |
+--------+-----------+-------------+----------------------------------+
| ####   | Several   | The         | The rental of real property is a |
| Reesta | rental    | acquisition | business, and the owner of the   |
| blish- | homes     | of more     | acquired rental property may     |
| ment E | will be   | than one    | claim eligible reestablishment   |
| xpense | acquired  | rental      | expense. As a displaced small    |
|        | from one  | house for a | business, the property owner is  |
| ##     | property  | project     | entitled to one payment for      |
| # Rent | owner for | from a      | their actual, reasonable, and    |
| al of  | an        | single      | necessary reestablishment        |
| Single | airport   | owner does  | expenses, not to exceed          |
|  Famil | project.  | not mean    | \$10,000.                        |
| y Home | Is the    | that more   |                                  |
|        | property  | than one    |                                  |
|        | owner     | business    |                                  |
|        | entitled  | had been    |                                  |
|        | to        | displaced   |                                  |
|        | multiple  | for the     |                                  |
|        | reesta    | project.    |                                  |
|        | blishment |             |                                  |
|        | claims?   |             |                                  |
+--------+-----------+-------------+----------------------------------+
| ## Fi  | Are       | The         | The only allowable adjustment to |
| xed Mo | "         | displaced   | the reported net income is to    |
| ving E | non-cash" | business    | add back salaries and wages paid |
| xpense | expenses  | may choose  | to the displaced owner operator  |
|  Payme | (e.g.     | a fixed     | and immediate family members     |
| nt (In | depr      | moving      | employed by the business.        |
|  Lieu) | eciation, | payment in  | Depreciation and other amortized |
|        | d         | lieu of     | expenses, that are deducted to   |
|        | epletion, | moving and  | arrive at the business pre-tax   |
|        | loan      | rees        | net income reported on the       |
|        | interest  | tablishment | displaced business's tax return  |
|        | amor      | expense     | are considered.                  |
|        | tization, | claims. The |                                  |
|        | etc.)     | fixed move  | With allowable tax deductions, a |
|        | claimed   | payment     | displaced business may report    |
|        | on a      | described   | only a small net income or       |
|        | displaced | at 49 CFR   | annual net loss. It is FAA       |
|        | b         | 24.305, is  | policy that for a displaced      |
|        | usiness's | the average | business reporting a pre-tax net |
|        | tax       | annual net  | loss, a zero income amount may   |
|        | returns,  | earnings to | be used as the net annual        |
|        | c         | the         | earnings. Also, under the        |
|        | onsidered | business    | regulation, if the two years     |
|        | in        | owner prior | immediately prior to             |
|        | de        | to          | displacement do accurately       |
|        | termining | d           | represent net earnings, earlier  |
|        | the       | isplacement | tax returns more representative  |
|        | annual    | based on    | of normal earnings may be used   |
|        | net       | the two tax | to compute the fixed payment.    |
|        | income    | years prior |                                  |
|        | used to   | to project  |                                  |
|        | compute   | di          |                                  |
|        | the       | splacement. |                                  |
|        | non-re    |             |                                  |
|        | sidential |             |                                  |
|        | fixed     |             |                                  |
|        | moving    |             |                                  |
|        | payment?  |             |                                  |
+--------+-----------+-------------+----------------------------------+

# Attachment A: SAMPLE Tenant Relocation Eligibility Letter - Noise Buyout Project

Dear Mr. Tenant:

As you may be aware, the Airport Authority is buying property within the
"buyout" area of the airport's approved noise compatibility program and
has started negotiations to buy the property you currently are renting.
Should the airport acquire the property, you may be eligible for certain
relocation assistance payments to assist your relocation to a
replacement [d]{.underline}ecent, [s]{.underline}afe, and
[s]{.underline}anitary (DSS) dwelling located outside of the airport's
designated buyout project area. The Airport Authority\'s has determined
the following eligible payments in accordance with requirements for
Federal Aviation Administration aided projects. Please refer to the
enclosed brochure entitled, \"Land Acquisition for Public Airports\",
for details on how the airport computes your eligible payment amount.

**1. Moving expenses.** These are the actual reasonable and necessary
expenses to move your personal property. You may choose a commercial
move supported by receipted bills, [or]{.underline} a fixed payment of
[\$ ,]{.underline} based on the number of rooms of personal property you
move.

**2. Replacement Housing Payment.** You are eligible for a maximum
replacement housing payment of \$ [,]{.underline} provided you lease and
occupy a DSS dwelling with monthly rent and utilities of \$ , or more.
This replacement housing payment eligibility is based on a property
located *(Note: The comparable replacement dwelling must be located
outside of the project limits and not within the noise contours of the
airport)* at [(address)]{.underline} which is available for rent at
[\$]{.underline} , and estimated monthly utility cost of \$ . The amount
of the replacement housing payment is the additional cost of a
comparable replacement dwelling for a period of 42 months following your
displacement from the acquired property.

**3. Downpayment Option.** You may, at your option, apply your
replacement housing payment eligibility as a downpayment for the
purchase of a replacement dwelling. The full amount of the downpayment
must be applied to the purchase price of the dwelling and related
incidental expenses.

Ms. Karen Wilson is the Airport Authority\'s representative to assist
your relocation. Ms. Wilson will further explain the relocation process
and answer your questions concerning your relocation payments. In order
for you to maintain eligibility for subsequent relocation payments,
please advise and consult with Ms. Wilson before committing or taking
any action regarding leasing a replacement property or moving your
personal property.

At this time it is necessary to advise you that you will have at least
90 days to remain on your property. At a later date, and after the
Airport Authority has acquired the property, you will be provided
another notice advising of the date to vacate the acquired property***.
However, please note that prior to the Airport Authority's acquisition
of your leased property you remain obligated to your present lease for
payment of rent and other terms and conditions of your lease. Also,
should an agreement for the airport's purchase of the property not be
secured with the property owner, you will not be required to vacate the
property by the airport, and this notice of relocation eligibility is
withdrawn.*** Ms. Wilson\'s phone number is given below, and please do
not hesitate to contact her should you have any questions or concerns
regarding your potential relocation.

Sincerely

Airport Manager

# Attachment B: SAMPLE Direct Loss Payment Claim

#### Hypothetical Facts And Assumed Values

> ***Displaced Business: U.S. Widgets, Inc.\
> Acquisition Date: June 1, 2005***
>
> ***U.S. Widgets is claiming payment for the following 3 items under
> Actual Direct Loss of Personal Property.***

-   ***Item 1. Widget Magician II (1989 model, capacity 1500 widgets /
    hr)***

####### Estimated Value in Place on June 2004: \$3,000

A.  ***Sales Proceeds: \$1,000***

B.  ***Net Loss: \$2,000 (A Minus B)***

C.  ***Estimated Moving Cost: \$4,000***

-   ***Item 2. Widget Magician Elite (1999 model, capacity 2000 widgets
    / hr)***

####### Estimated Value in Place on June 2004: \$13,500

####### Sales Proceeds: \$6,000

####### Net Loss: \$7,500 (A Minus B)

#######  Moving Cost: \$7,000

-   ***Item 3. Widget Magician I (1982 model, taken out of service
    2002)***

####### Estimated Value in Place on June 2004: \$300

#######  Sales Proceeds: \$0

#######  Net Loss: \$300 (A Minus B)

#######  Moving Cost: \$250

Table 1: Sample Claim for Direct Loss of Personal Property

**(Items not Moved or Replaced)\
\
LESSER of Direct Loss (i.e. Value-in-Place "As Is" for Continued Use
less Sales Proceeds) or\
Agency\'s Accepted Estimated Moving Cost to Relocate Item(s)**

+---------------+----------+----------+--------+--------+------------+
| Items         | A. Value | B.       | C.     | D.     | E. Amount  |
|               | In Place | Proceeds | Direct | Est    | Claimed    |
|               | "As Is"  | from     | Loss   | imated |            |
|               | for      | Sale of  |        | Moving | *(Lesser   |
|               | C        | Item     | *(Va   | Cost   | of Direct  |
|               | ontinued |          | lue-in |        | Loss or    |
|               | Use      | *(As Is  | -Place | (*See  | Estimated  |
|               |          | Sold     | less   | Table  | Moving     |
|               | *(See    | On-site  | Sales  | 3)*    | Cost)*     |
|               | Table    | for      | Proc   |        |            |
|               | 2)*      | R        | eeds)* |        |            |
|               |          | emoval)* |        |        |            |
+---------------+----------+----------+--------+--------+------------+
| 1\. Widget    | \$3,000  | \$1,000  | \      | \      | \$2,000    |
| Magician 2    |          |          | $2,000 | $4,000 |            |
+---------------+----------+----------+--------+--------+------------+
| 2\. Widget    | \$13,500 | \$6,000  | \      | \      | \$7,000    |
| Magician      |          |          | $7,500 | $7,000 |            |
| Elite         |          |          |        |        |            |
+---------------+----------+----------+--------+--------+------------+
| 3\. Widget    | \$300    | \$0      | \$300  | \$250  | \$250      |
| Magician I    |          |          |        |        |            |
+---------------+----------+----------+--------+--------+------------+
| > Subtotal    |          |          |        |        | \$9,250    |
| > Claimed     |          |          |        |        |            |
+---------------+----------+----------+--------+--------+------------+
| 4\. Cost of   |          |          |        |        | \$750      |
| Sale\         |          |          |        |        |            |
| (advertising, |          |          |        |        |            |
| display,      |          |          |        |        |            |
| etc.) Per     |          |          |        |        |            |
| 24.301(g)(15) |          |          |        |        |            |
+---------------+----------+----------+--------+--------+------------+
| > Total       |          |          |        |        | \$10,000   |
| > Claimed     |          |          |        |        |            |
+---------------+----------+----------+--------+--------+------------+

Table 2: Details of Estimate of Value in Place "As Is" for Continued Use

**(Cost New, plus Installation Cost, less Depreciation)**

+--------------+-------------+-----------+---------+----------+------+
| Items        | D           | Estimated | Plus    | Less     | Equ  |
|              | escription\ | Current   | Es      | Accrued  | als\ |
|              | "As Is"     | Item Cost | timated | Depr     | "In  |
|              | Installed   |           | "As Is" | eciation | Pl   |
|              |             |           | Insta   |          | ace" |
|              |             |           | llation |          | V    |
|              |             |           | Cost    |          | alue |
+--------------+-------------+-----------+---------+----------+------+
| 1\. Widget   | 1989 model  | Manu      | Ele     | Age/Life | \$3  |
| Magician 2   | installed   | facturers | ctrical | Method   | ,000 |
|              | new in      | Catalog   | &       |          |      |
|              | 1989.       | and       | P       | 75%      |      |
|              |             | Recent    | lumbing | depr     |      |
|              |             | Sales     | Connect | eciated. |      |
|              |             | Data      |         | E        |      |
|              |             |           | \$2,000 | stimated |      |
|              |             | (Value as |         | 5 year   |      |
|              |             | of        |         | r        |      |
|              |             | 6/1/2004) |         | emaining |      |
|              |             |           |         | use of   |      |
|              |             | \$10,000  |         | original |      |
|              |             |           |         | 20 year  |      |
|              |             |           |         | life.    |      |
|              |             |           |         |          |      |
|              |             |           |         | \$9,000  |      |
+--------------+-------------+-----------+---------+----------+------+
| 2\. Widget   | 1999 model  | Manu      | Ele     | Age/Life | \$13 |
| Magician     | installed   | facturers | ctrical | Method   | ,500 |
| Elite        | new in      | Catalog   | &       |          |      |
|              | 2000.       | and       | P       | 25%      |      |
|              |             | Recent    | lumbing | depr     |      |
|              | Holding     | Sales     | C       | eciated. |      |
|              | tank for    | Data      | onnect, | E        |      |
|              | plumbing    |           | plus    | stimated |      |
|              | connection  | (Value on | holding | 15 year  |      |
|              | to public   | 6/1/2004) | tank.   | r        |      |
|              | sewer, per  |           |         | emaining |      |
|              | 1999 code   | \$13,000  | \$5,000 | use of   |      |
|              | for new     |           |         | original |      |
|              | ins         |           |         | 20 year  |      |
|              | tallations. |           |         | life     |      |
|              |             |           |         |          |      |
|              |             |           |         | \$4,500  |      |
+--------------+-------------+-----------+---------+----------+------+
| 3\. Widget   | Taken out   | Salvage   | N/A     | N/A      | \    |
| Magician I   | of Service  | Value     |         |          | $300 |
|              | 2002.       |           |         |          |      |
|              |             | \$300     |         |          |      |
|              | Not         |           |         |          |      |
|              | operable    |           |         |          |      |
+--------------+-------------+-----------+---------+----------+------+

Table 3: Estimated Moving Cost Computation

**(Cost to Move, "As Is" Installed at Displacement Site)**

+-----------------+----------------+--------------+-----------+--------+
| Items           | Description\   | Estimated    | Plus      | Total  |
|                 | "As Is"        | Disconnect   | Estimated | Est    |
|                 | Installed      | and Move     | "As Is"   | imated |
|                 |                | Item Cost    | Rec       | Moving |
|                 |                |              | onnection | Cost   |
|                 |                |              | Cost      |        |
+-----------------+----------------+--------------+-----------+--------+
| 1\. Widget      | 1989 model     | \$2,000      | E         | \      |
| Magician 2      | installed new  |              | lectrical | $4,000 |
|                 | in 1989.       |              | &         |        |
|                 |                |              | Plumbing  |        |
|                 |                |              | Connect   |        |
|                 |                |              |           |        |
|                 |                |              | \$2,000   |        |
+-----------------+----------------+--------------+-----------+--------+
| 2\. Widget      | 1999 model     | \$2,000      | E         | \      |
| Magician Elite  | installed new  |              | lectrical | $7,000 |
|                 | in 2000.       |              | &         |        |
|                 |                |              | Plumbing  |        |
|                 | Holding tank   |              | Connect,  |        |
|                 | for plumbing   |              | plus      |        |
|                 | connection to  |              | holding   |        |
|                 | public sewer,  |              | tank.     |        |
|                 | per 1999 code  |              |           |        |
|                 | for new        |              | \$5,000   |        |
|                 | installations. |              |           |        |
+-----------------+----------------+--------------+-----------+--------+
| 3\. Widget      | Taken out of   | Move /       | N/A\      | \$250  |
| Magician I      | Service 2002.  | Dispose      | Not       |        |
|                 |                |              | Operable  |        |
|                 | Not operable   | \$250        |           |        |
+-----------------+----------------+--------------+-----------+--------+

[^1]: ***Activities of Daily Living*** (***ADLs***) and ***Instrumental
    Activities of Daily Living*** (***IADLs***), are the daily tasks
    required to function or function well independent of assistance. The
    ***ADLs*** are simply basic self-care activities (e.g. dressing,
    eating, bathing, etc.) which the loss of any one may require
    assistance. The ***IADLs*** are the more refined tasks required to
    function well (e.g. shopping, cooking, light housework, using
    transportation, etc.). A person's ***ADLs*** and ***IADLs*** may be
    evaluated when considering admittance to a long term care facility,
    in-home care, or need for other assistive care.