# Presentation: 704464

## 49 CFR Part 24Subpart D

***Moving Costs and Related Expenses***

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- March 2005

**Notes:**
NOTES:  Some changes explained in the NPRM preamble did not carry forward to the final rule preamble. This is usually the case where no comments were received during the NPRM on proposed changes. If you want to reference the complete background concerning a change, you should retain the preamble documents from both the NPRM and the final rule.  The NPRM and final rule may be found at FHWA’s website on the uniform act page:  www.fhwa.dot.gov/realestate/ua/index.htm. 

INSTRUCTOR NOTES: Acknowledge that the reorganization may be challenging for long-time practitioners, while newer users may not have the same adjustment period.

## Key Topics

- Subpart reorganization.
- Residential self-moves.
- Moves of personal property only.
- Calculating actual direct loss.

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**Notes:**
NOTES:  The various types of moving requirements were reorganized in this section of the regulation. The revised regulations clarify, add additional options, and reclassify certain expenses resulting in enhanced payments, particularly for nonresidential displacements. The new rule also allows a combination of moving methods in certain cases, which will facilitate both residential and nonresidential moves.

The overall goal of the reorganization and benefit change was to make the moving cost provisions easier to use and more practical in the field. For example, there is sufficient regulatory flexibility to permit Agencies to pay both a fixed schedule move and an actual cost move – covering different items of personalty on the same residential parcel.

## Nonresidential moves.
Low value/high bulk items.
Moving personal property – various methods for:
Residential.
Commercial.

- Low value/high bulk items.
- Moving personal property – various methods for:
- Residential.
- Commercial.

**Key Topics (cont.)**

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## Old Rule
§ 24.301
§ 24.302
§ 24.303
§ 24.304
§ 24.305
§ 24.306
§ 24.307

- § 24.301
- § 24.302
- § 24.303
- § 24.304
- § 24.305
- § 24.306
- § 24.307

**Reorganized Subpart**

- _New Rule_
- § 24.301 Expanded
- § 24.302  Reworded
- § 24.303  NEW*
- § 24.304  Unchanged
- § 24.305  New # only
- § 24.306  New # only

***No longer subject to a$10,000 re-establishment cap.**

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**Notes:**
NOTES:
§ 24.301 Payment for actual reasonable moving and related expenses.
The key changes in reorganizing this subpart were placing in § 24.301 all eligible and ineligible moving cost lists previously in § 24.303 (eligible) and § 24.305 (ineligible). The section was reworded to describe the eligible costs based on the origin of the moves. The reorganization was intended to make the section easier to read. In addition, one item formerly in re-establishment was moved to § 24.301. This pertained to reimbursement of fees for licenses, permits, and certifications.

§ 24.302 Fixed payment for moving expense – residential moves.
There was a slight rewording in § 24.302 relating to the Fixed Residential Moving Cost Schedule maintained by FHWA. 
§ 24.303 Related nonresidential eligible expenses.
This new section contains three expense items that had formerly been listed under § 24.304. This can be a significant change for businesses as the items are no longer subject to the $10,000 limit. The three items moved from the previous section on re-establishment expenses were the following:
Utility connections from R/W.
Professional services prior to purchase/lease of replacement.
Impact fees and one-time assessments.

§ 24.304 Re-establishment expenses – nonresidential moves.
Four expense items were moved from this section: one was placed in § 24.301 and three were placed in the new § 24.303. This effectively stretches the $10,000 limit for eligible relocations.

§ 24.305 Fixed payment for moving expenses – nonresidential moves.
This section was renumbered from the old § 24.306 but otherwise remains the same.

§ 24.306 Discretionary utility relocation payments.
This section was renumbered from the old § 24.307 but otherwise remains the same.

## Residential Self-Moves

- § 24.301(b) Moves from a dwelling.
- § 24.301(c) Moves from a mobile home.
- Self-moves based on the lower of two bids or estimates are not eligible for reimbursement under this section.
- Labor and equipment rates limited to that paid by commercial movers.

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**Notes:**
NOTES:  There has been continuing confusion regarding self-move payments to the occupants of residential properties. There is no provision permitting the payment of lump sum (regardless of how it is determined) other than the fixed schedule amount. A residential self-move must be supported by receipts or proof of expenditure for all eligible items. Hourly rates must be commensurate with those typically charged in the moving industry.

The change in the rule relating to residential moves is the prohibition added to the rule regarding use of bids to set the reimbursement limit for residential self-moves. This was undertaken to clarify requirements for self-moves. The use of bids or estimates resulted in inflated costs and claims for reimbursement that were not well documented.

The revised regulations establish three methods for a residential displacee to move:
  Commercial Mover
  Actual Cost supported by receipted bills with costs limited to rates paid by commercial movers for labor and equipment, or
  The Fixed Residential Moving Cost Schedule 

## Residential Move Options § 24.301(B)

- Commercial Move.
- Actual cost based on Receipted Bills.
- Fixed Residential Moving Cost Schedule.
- Combination.

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**Notes:**
NOTES: There are four potential ways for the displaced occupant of a residence to accomplish the move of personal property.

## “Let’s See How It Works”

**“****Let’s See How It Works”**

**Please refer to examples entitled:**
**Residential Self Move**

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## Moves of Personal Property Only

- New § 24.301(e) covers situations in which the main business or dwelling is not required to move but the owner’s or tenant’s “stuff” is.

**R/W**

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**Notes:**
NOTES:  The new § 24.301(e) Personal property only. Eligible expenses for a person who is required to move personal property from real property but is not required to move from a dwelling (including a mobile home), business, farm, or nonprofit organization include those expenses described in paragraphs (g)(1) through (g)(7) as well as (g)(18) of this section. (See also Appendix A, § 24.301(e).)

The illustration shows a factory and stockpiled materials within the right of way. It could also depict a house with a shed and materials out back that fall inside the required right of way. This modification addresses a situation in the old rule where this circumstance was not covered specifically in the case of an acquisition from a residential property. The clarification covers that situation for both residential and nonresidential displacements where the residence or business is not acquired and thus there is no resulting displacement of either a residence or a business.

## Actual Direct Loss	

- § 24.301(g)(14) Payment is the lesser of:

**Market value in place “as is.”**

**LESS**

**( i )**

- Sale
- $$$

**or**

**( ii )**  **Estimated cost to move and reconnect “as is.”**

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**Notes:**
NOTES:  This is not a new eligible expense, but it is one of the sections that was reworded to provide greater clarity. Additional guidance was also added in Appendix A. The key additions were “in place”  and “as is.” In the estimated move cost example, that will mean no code required additions or other changes that do not currently exist at the displacement site. The example on the following slides explain the clarifications.

INSTRUCTOR NOTES: Work through the example with the participants as time permits.

## “Let’s See How It Works”

**Please refer to example entitled:**
**Working with Tangible Property Loss**

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## Nonresidential Moves

- § 24.301(g)(17) Searching expense:
- Limit raised to $2,500.
- New reimbursement items.
- Owner or professional services’ time spent for:
- Obtaining permits and attending hearings.
- Negotiating the purchase or lease of replacement site.

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- March 2005

**Notes:**
NOTES:  For nonresidential moves, several changes potentially provide increased benefits to assist in making a relocation successful. One is the increased searching expense limit and the two new items added to the nonexclusive list of items that could be reimbursed. The owner’s or owner representative’s time, based on a reasonable hourly rate, can now be reimbursed for activities directly related to securing the new site. This change does not extend to brokerage fees, etc. Additionally, this does not include fees assessed for permits that can be reimbursed under § 24.301(g)(11).

Note that the list in § 24.301(g)(17) provides examples of qualifying costs, not an all-inclusive list. 

## Nonresidential Moves – Searching Expense

- Appendix A, § 24.301(g)(17):
- Examples of reasonable and necessary costs that may be considered for reimbursement.
- Potential to use waiver under § 24.7 to exceed $2,500 for situations where warranted based on Federal funding Agency procedures.

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**Notes:**
NOTES:  Appendix A provides more detailed examples relating to searching expense as well as an option for increasing the $2,500 limit if the reasonable and necessary costs for a particular business relocation justify an increase. The availability is dependent on the Federal funding Agency and its delegation of authority regarding the use of § 24.7.

§ 24.7 Federal Agency waiver of regulations. The Federal Agency funding the project may waive any requirement in this part not required by law if it determines that the waiver does not reduce any assistance or protection provided to an owner or displaced person under this part. Any request for a waiver shall be justified on a case-by-case basis.

Refer to Appendix A, § 24.301(g)(17) in the Guide for further implementation details. Eligible activities in this regard could include the following:
Investigation of replacement sites.
Owner’s or owner representative’s time to attend hearings and apply for permits and negotiate purchase/lease of replacement property.

## Low Value/High Bulk 	

**Low Value/High Bulk ****	**

- § 24.301(g)(18). This is a new addition to the list of eligible moving expenses.
-     Stockpiled sand, gravel, and similar items
**Pay the **
_**lesser**_** of ...**

- or

** ****Price for sale at old site.**

**Cost for new at new site.**

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- March 2005

**Notes:**
NOTES:  This new item was added to the list of eligible moving expenses to codify guidance that had been issued on how to handle the low value/high bulk materials encountered when dealing with nonresidential properties. This particular section can also be applied to the new moves of personal property only.  Application of this provision is at the acquiring Agency’s discretion.  Generally, if an Agency requires the material to be moved by the owner, then this provision should not be used.

## “Let’s See How It Works”

**“****Let’s See How It Works”**

**Please refer to example entitled:**
**Example of Low Value / High Bulk**

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## Nonresidential MovesRelated Eligible Expense

- § 24.303 Actual, reasonable, and necessary costs for:
- Utility connection from right of way:
- Not related to personal property.
- Professional services prior to purchase/lease to determine suitability:
- Soil testing, feasibility, and marketing studies to determine site suitability.
- Impact fees and one-time assessments.

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**Notes:**
NOTES:  These are the same expense items that had been part of the re-establishment expenses in § 24.304. As such, they are not new. The difference is that they are now separate from the $10,000 limitation for total re-establishment costs and are handled individually on an “actual, reasonable, and necessary” basis.

Related to professional services and prior to purchase/lease of a site, certain investigative costs are reimbursable, but these must be reasonable and justified. If a site is rejected, further site testing may be justified at an alternative site following a “due diligence” rationale. The Agency should be involved and provide advice in such situations.

Agencies should work with displaced persons to establish acceptable rates for professional services needed to determine site suitability.

Informational Guide: Please reference the “Changes in Business Moving Payments Example”.  This graphically illustrates the revised outcomes of moving cost reimbursement to displaced businesses as the result of the changes in Subpart D § 24.301,303, 304. 

## Ineligible Moving and Related Expenses

- § 24.301(h)(12)
- Refundable security and utility deposits

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- March 2005

**Notes:**
NOTES:  The above item was added to the list of ineligible moving expenses.