# Presentation: 356133

## Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (URA)

*49 CFR Part 24*

**Notes:**
NOTES:  This training program covers the final rule issued on January 4, 2005 revising 49 CFR Part 24. This section of the Code of Federal Regulations contains the unified rule implementing the URA.  The final rule is effective on February 3, 2005.  

The final rule issued in January was effective in 30 days, on February 3, 2005.  Since most everything in the final rule had been included in the Notice of Proposed Rule Making (NPRM) issued December 17, 2003 the 30-day period was deemed sufficient notice considering the changes were regulatory and had been under discussion for a full year. 

INSTRUCTOR NOTES:  This session will serve as an opportunity for the introduction of the instructors and the participants.  

Emphasize – there are no statutory changes associated with this rule change.  It would be appropriate to create a statutory “parking lot” during discussions to keep track of comments/concerns that can only be addressed by a change of the statute.   

The coverage of the introduction is designed to review the background information surrounding the development and current modification of this part.  It will also go over the extent of changes made to 49 CFR Part 24 and present the new material in Subpart A – Definitions.   

## For Additional Information

- Contact an FHWA Division Realty Officer at
- _[http://](http://www.fhwa.dot.gov/realestate/divroster.htm)__[www.fhwa.dot.gov/realestate/divroster.htm](http://www.fhwa.dot.gov/realestate/divroster.htm)_
- -or-
- Mamie Smith-Fisher, HQ Contact for the new rule at
- _[Mamie.Smith@fhwa.dot.gov](mailto:Mamie.Smith@fhwa.dot.gov)_
- URA resources
- _[http://](http://www.hud.gov/relocation)__[www.hud.gov](http://www.hud.gov/relocation)__[/relocation](http://www.hud.gov/relocation)_
-  _[http://](http://www.fhwa.dot.gov/field.html#fieldsites)__[www.fhwa.dot.gov/field.html#fieldsites](http://www.fhwa.dot.gov/field.html#fieldsites)_

- March 2005

## Training Objectives

- Identify what changed.
- Understand why the changes were made.
- Know how the changes affect operations.

- March 2005

**Notes:**
NOTES:  The objective for the training is to cover how the newly issued rule affects operations.  Minor wording changes for clarity, section reorganization for ease of use, and added interpretive material were intended to make the rule easier to use and better meet current needs. 

Since statutory benefit limits remain unchanged, it must be recognized that the modified regulation adjusted the benefit mix and provided opportunities to offer better service to those persons affected by acquisitions subject to the URA.

INSTRUCTOR NOTES: Statutory benefit limits did not change. This training will point out where the modifications in the regulation adjust certain benefits and provide additional assistance to persons affected by acquisitions subject to the URA.  The training will also address those changes in the rule that present opportunities for the Agency to streamline their acquisition process.

## Key Topics

- Purpose of the URA.
- Purpose and scope of the revision.
- Modifications or additions to provisions.
- Identification of opportunities.
- Implications of benefits.

- March 2005

**Notes:**
NOTES: The training will briefly review background material including the purpose of the original legislation.  We will cover how the rule has evolved and then address the content of the latest rule, going over the main changes sequentially as they are found throughout the rule.  The introduction will cover Subpart A revisions, most of which are located in the definitions section.  The actual application will be covered in the appropriate Subpart.  

INSTRUCTOR NOTES: This brief introduction is primarily designed to go over the new rule, and provide the participant with an understanding of how the revised rule fits within the 30 plus year history of the legislation.  Looking back is necessary so that the changes can be put in proper perspective.  Since the session is being presented after the rule became effective the participants will already have their own interpretation and understanding of the rules content.  

The objective for the session needs to be to pointed out, the rule received a comprehensive review and changes were made accordingly. Clarification, reorganization for ease of use, modified and added interpretive material, result in a rule that better meets current needs.

Statutory benefit limits remain the same – the modified regulations may result in some changes in how benefits and services are delivered.

## Training Organization

- Introduction
- Background.
- Subpart A – General, § 24.2 Definitions.
- Appendices A and B.
- Scope of revision.
- Subpart B - Real Property Acquisition:
- Valuation, appraisal, & appraisal review.
- Acquisition.

- March 2005

**Notes:**
NOTES: Overview of the Training Session

Background -  Trace the history of the URA from 1971 thru the original Unified Rule in 1989. Mention the minor amendments due to legislation mandates in the 1990’s, and review the process leading to the January 4, 2005 Final Rule.

Subpart A – Although some minor revisions were made to update references the only changes in this subpart was to § 24.2 Definitions.  We’ll go over what changed briefly, but leave the detail to be covered where the new term is applied in the rule.

Appendix A & B – We will discuss the changes made to each appendix.

Scope of Revision -  We will point out where the rule was revised in general and highlight the scope of change in each subpart.  Promote open discussion within group to identify the key items they see within each section.   

Subpart B 

Valuation, Appraisal & Appraisal Review – Presentation will go over in detail the rule provisions affecting property valuation and appraisal.  

Acquisition -  Presentation will go over the rule revisions dealing with offers, negotiating, reaching settlements and other related practices necessary to acquire property.

## Subpart C -- General  Relocation.
Subpart D – Moving Cost.
Subpart E – Replacement Housing.
Subpart F -- Mobile Homes.
Summation.

- Subpart D – Moving Cost.
- Subpart E – Replacement Housing.
- Subpart F -- Mobile Homes.
- Summation.

**Training Organization (cont.)**

- March 2005

**Notes:**
Continuation of Orientation Organization

NOTES: 

Subpart C - General Relocation Requirements as they affect eligibility, planning, and advisory services. 

Subpart D  - Moving Cost & Related Expenses. (reorganized subpart)

Subpart E  - Replacement housing computation and calculation modifications. 

Subpart F  - Mobile home (reorganized subpart)

Summation - Recap of the presentation and a period to assess any open questions or issues that need to be resolved. 

## URA - Purpose

- For acquisition:
- Treat owners fairly and consistently.
- Encourage acquisition by agreement.
- Minimize litigation.
- Promote confidence.

- March 2005

**Notes:**
NOTES:  Historic purpose underlying the URA

The underlying purpose needs to be understood so when interpretations of the rule are required, the decisions can be formed to compliment the URA Purpose.  

## URA – Purpose (cont.)

- For displaced persons:
- Treat individuals fairly, equitably, consistently.
- Do not cause disproportionate injury.
- For Agencies:
- Act efficiently and in a cost-effective manner.

- March 2005

**Notes:**
NOTES:  Historic purpose underlying the URA

## URA Regulation Timeline

- The Uniform Relocation Assistance
- and Real Property Acquisition Policies Act of 1970
- Pub. L. 91-646

**Law Signed -- 1971**

- Federal Agencies
- issued their
- own rule

**Interim Rule -- 1985**

**Unified Rule -- 1989**

**Amended -- 1993**

**Amended -- 1999**

**Rule Updated -- 2005**

**Symposium -- 2001**

- March 2005

**Notes:**
The URA Timeline

NOTES: It is important to recognize that the URA is a law with over 30 years of history behind it.  Originally the Federal Agencies individually implemented their own regulations.  Only in 1989 was a unified rule issued.  This is the first reissue of a revised rule since then. 

INSTRUCTOR NOTES:  Provide a brief history of the transition made over the last 30 years to implement the URA. Track the shift to a unified rule in 1989.

1970 URA enacted January 2, 1971 was implemented by each Federal Agency that administered programs requiring acquisition of real property.

By 1978 – the GAO issued a Report to Congress (March 8, 1978 No. GGD-78-6) indicating the goal of Uniform treatment.

The report initiated a movement within government which evolved during the early 80’s into publication of a model “Uniform Rule” with FHWA serving as the Lead Agency.  The model rule was published in 1985.  All Federal Agencies issued their own rules based on the model.

In 1987 Congress passed The Surface Transportation and Uniform Relocation Assistance Act of 1987 (Pub. L. 100-17, April 2, 1987) amending the URA and confirming USDOT as Lead Agency.

In 1989 FHWA issued the Final Unified Rule.  This action followed all other Federal Agencies rescinding their own rule and providing a cross reference to 49 CFR Part 24. 

In the early 90’s there were a couple of coordination attempts to revise the rule but none took hold and only two minor amendments were made to the rule. 

The 1993 Amendments to reduce regulatory burden.

The 1999 Amendments to prohibit payments to aliens not lawfully present in the United States.

## Current Update

- 2001 30th Anniversary Symposium.
- Federal Interagency Task Force.
- 2002 – 5 listening sessions.
- 2003 NPRM on December 17:
- 775 Comments received to the docket.
- 2004 – 3 public meetings.
- 2005 Final rule on January 4.

- March 2005

**Notes:**
NOTES: The current revision was initiated shortly after the 30 year Anniversary Symposium on the URA.  A total of 18 Federal Agencies, including the recently formed Department of Homeland Security and their programs are subject to the Act.  The rules issued are the result of their collaboration over the past 3 plus years and the public input received.  

Other reference points include research studies such as the National Business Study referenced in the rule, and the Appraisal Foundation’s Uniform Standards of Professional Appraisal Practice which were issued subsequent to the 1989 unified rule.  

The 30th Anniversary Symposium was the catalyst that fostered the listening sessions in 2002 that lead to the 2003 publication of the NPRM to amend the 1989 unified rule.  

This process resulted in a government wide final rule that effectively addresses the needs and best practices for all government Agencies administering programs subject to the URA.

Final Rule published January 4, 2005 and became effective February 3, 2005.

## Effective Date

- Final rule published -- January 4, 2005.
- Rule effective -- February 3, 2005.
- State laws, regulations, guidance updated.

- March 2005

**Notes:**
INSTRUCTOR NOTES: Discuss why a 30 Day period was given until rule became effective. Point to the material in the Final Rule (Pages 610 to 611) for reasons the rule became effective in 30 days.  Plus the fact that the NPRM had been out for a year and the adopted changes were under consideration in a collaborative way for 3 plus years with other government Agencies.

Point out that updating State Laws, regulations & guidance is expected to take a longer period and extend beyond the effective date just as the Federal Agencies & FHWA have been taking steps to update their guidance and published materials to conform with the new rule.  For FHWA guidance see the January 4, 2005 memo relative to transition and general waivers.  This was also referenced in the January 18, 2005, Memo to FHWA Division Offices providing answers to Division Office questions.  Moreover, State Dept. of Transportation (STD)  Right of Way Operations manuals must be updated by January 1, 2006, unless FHWA grants a waiver.  

## Intent of Rule Revisions

- Advance national program uniformity.
- Meet contemporary needs.
- Improve service to individuals and businesses.
- Reduce administrative burden.
- Make rule easier to understand.

- March 2005

**Notes:**
INSTRUCTOR NOTES:  As a lead in to the discussion of the changes to the rule, present the intent or purpose for the 3+ year effort to upgrade the rule.  

Because training is being held after the rule became effective most all participants will be familiar with the rule and some, if not all of the changes. They will have questions that will need to be addressed.  

As a prelude to going over the rule and hitting the highlights now is the time to start the dialogue to identify the top five – or ten – issues that the participants have concerns about or want more information on so that the module presentations can be assured to address those items in more detail.  

Interactivity – Instructor can ask students for a list of issues and concerns they have and want addressed during this training if there is time.  

Effective February 3, 2005 – Summary of Significant Changes 
Purpose of Uniform Act – To provide fair, equitable and consistent treatment without disproportionate injury for persons being displaced as a result of a Federal or federally funded project
Discuss why only a 30 day period was given until rule became effective – The action is not a significant regulatory action nor is it significant within the meaning of DOT regulatory policies and procedures.  The final rule action updates and streamlines procedures and makes nominal adjustments to enhance service and payments.

## Subpart A ChangesGeneral

- Updated references.
- Main changes were in § 24.2 – *Definitions:*
- New title.
- New numeric format.
- Acronyms added.

- March 2005

**Notes:**
Notes: The rest of this presentation will identify the subparts and go over the general nature of the changes made.  Legal references and numerical changes inserted in the rule to match new locations will not be addressed during this training session unless the content of the section or paragraph changed. 

For Subpart A only § 24.2 which contained the definitions was revised.  

The new title Definitions and Acronyms 

The definitions were numbered for ease of reference.

The list of Acronyms is not all inclusive.  See the rule at § 24.2(b)

## Subpart A Changes  § 24.2(a) Definitions

- (11) Dwelling site.
- (14) Household income.
- (17) Mobile home.
- (33) Waiver Valuation.

- New

- March 2005

**Notes:**
NOTES:  New definitions are in your Instructional Guide

(11) Dwelling site. The term dwelling site means a land area that is typical in size for similar dwellings located in the same neighborhood or rural area. (See appendix A, § 24.2(a)(11).)  This will insure more accurate computations of replacement housing payments when a dwelling is located on a larger than normal site or when mixed use properties are involved.

(14) Household income. The term household income means total gross income received for a 12 month period from all sources (earned and unearned) including, but not limited to wages, salary, child support, alimony, unemployment benefits, workers compensation, social security, or the net income from a business. It does not include income received or earned by dependent children and full time students under 18 years of age. (See appendix A, § 24.2(a)(14) for examples of exclusions to income.)  Federal, State and local Agencies requested clarification in this area to administer relocation assistance benefits in a more fair and equitable manner.

(17) Mobile home. The term mobile home includes manufactured homes and recreational vehicles used as residences. (See appendix A, § 24.2(a)(17)). Provides guidance on the types of mobile homes and manufactured housing that are acceptable as comparable replacement dwellings for those displaced from mobile homes.  This change was also driven by HUD’s definition and clarification of a mobile home for its programs.  The new definition intends to capture the current state of terminology concerning this term.  

(33) Waiver valuation. The term waiver valuation means the valuation process used and the product produced when the Agency determines that an appraisal is not required, pursuant to § 24.102(c)(2) appraisal waiver provisions.  This definition was added for several reasons.  The concept is extensively used in acquisition programs throughout the US.  Additionally, the definition clarifies that it is not an appraisal and thus not subject to the Appraisal Foundation’s USPAP and certain URA appraisal requirements.

## Subpart A Changes  § 24.2(a) Definitions

- (6) Comparable replacement dwelling.
- (8) Decent, safe, and sanitary.
- (15) Initiation of negotiation (ION).
- (23) Salvage value.
- (29) Unlawful occupant.
- (30) Utility costs.

- Revised

- March 2005

**Notes:**
NOTES:  Revised portions of these definitions are covered in the Guide.

(6) New provision added dealing with subsidized housing programs § 24.2(a)(6)(ix)

(8) Revised wording to emphasize use of local codes

(15) Revised and added language to cover when ION occurs when property is being acquired without threat of eminent domain – voluntary transactions. 

(23) Revision clarifies that the value of this item is based on the sale of the item to a knowledgeable buyer (no relocation assistance).  This includes items for reuse as well as items where components of an item can be recycled.  

(29) Revised term and changed definition slightly to reference “unlawful occupant” instead of “unlawful occupancy” and to remove the term “squatter” as it may be offensive and is not necessary to the definition.  Changes simplify definition without changing it’s meaning.  

(30) Made definition more specific to provide for ‘electricity, gas, other heating and cooking fuels’ 

## Eligibility Conditions

- § 24.2(a)(9)(ii) Persons not displaced:
- (D) Temporary relocation:
- In Appendix A, defined as less than 12 months.
- If more than 12 months, eligible displacees.
- (K) Unlawful occupant:
- Advisory assistance can be provided.
- (M) American Dream Down Payment Initiative (ADDI).

- Revised

- March 2005

**Notes:**
NOTES:  Another revised definition relates to eligibility.

Key provision is (D) where supplemental information in the appendix identifies that temporary relocations extending beyond 12 months trigger full relocation benefits for the displaced person. 

This situation is encountered as rehabilitation projects and also when persons have been evacuated for environmental cleanup.

In (K), additional wording adds that an Agency can provide advisory services to unlawful occupants.

“Unlawful occupant is a person who occupies without property right, title or payment of rent or a person legally evicted, with no legal rights to occupy a property under State law. An Agency, at its discretion, may consider such person to be in lawful occupancy.”  This definition gives an Agency the option to provide all benefits.

Item (M) is new and refers to tenants required to move as the result of the sale of the dwelling they occupy to a person receiving down payment assistance under the American Dream Down Payment Initiative – SEE Pub. L. 108-186.  Also please reference participant Instructional Guide example/definition of this requirement in Subpart A.

## Eligibility Conditions (Cont.)

**§** 24.206  Eviction for cause:
- Language added in Appendix A.
- Protects displaced persons legally evicted for project advancement.
- Displaced persons still eligible for benefits.

- Revised

- March 2005

**Notes:**
NOTES:  Eviction for Cause was proposed to be moved to Subpart A, and reworded, but the proposed change was not adopted so there was little changed in the rule. Appendix A was supplemented with a provision that states: 

Appendix A § 24.206 	“Eviction for cause. An eviction related to non-compliance with a requirement related to carrying out a project (e.g., failure to move or relocate when instructed, or to cooperate in the relocation process) shall not negate a person's entitlement to relocation payments and other assistance set forth in this part.”

## Subpart B ChangesReal Property Acquisition

- Waiver of appraisal.
- Appraisal requirements.
- Appraiser and review appraiser qualifications.
- Review appraiser responsibilities.
- Agency responsibilities:
- Appraisal assignments.
- Written offers.

- March 2005

**Notes:**
NOTES:  Key changes to be discussed during Subpart B presentation will include

§24.102(c)(2)(ii) – Waiver of appraisal process – if an Agency determines an appraisal is not necessary. 
§ 24.103 – Criteria for appraisals
§ 24.103(d)(1) – Appraiser and review appraiser qualifications
§ 24.104 – Responsibilities of the Review Appraiser

## Subpart C ChangesGeneral Relocation Requirements

- Relocation planning.
- Business interviews.
- Procedures.
- Relocated material.
- Language revisions.

- March 2005

**Notes:**
NOTES: This subpart deals with relocation planning and the early detection of relocation problems.  Material dealing with businesses based on the 2002 National Business Relocation Study, influenced some of the changes in this subpart.  The study specifically noted the need to do a site availability study and conduct in-depth interviews with potential displaced businesses to detect problems and seek viable solutions before displacement.

## Subpart D ChangesMoving Cost & Related Expenses

- Material reorganized.
- List of eligible expenses expanded.
- Dwelling self move administration.
- Searching expense increased.

- March 2005

**Notes:**
NOTES: The subpart received a major reorganization but much of the material was unchanged.

Most changes occurred regarding nonresidential expense items, including the addition of a new section of three eligible related moving expense categories (formerly listed under reestablishment) that now can be reimbursed on an actual cost basis with no monetary cap.

Residential self moves were clarified to prohibit use of bids or estimates to set reimbursement. 

Searching expense increased from $1,000 to $2,500 and eligible items added pertaining to reimbursement of the owner’s items to attend zoning or permit hearings and to negotiate the purchase/lease of a replacement property.  

## Subpart E Changes Replacement Housing Payments

- Low income calculation.
- Owner rental option.
- Comparable replacement housing.
- Less than 90-day tenants.

- March 2005

**Notes:**
NOTES:  Subpart E received several adjustments regarding computation and eligibility for housing supplements.  

## Subpart F ChangesMobile Homes

- New Definition.
- Reorganized.
- Eligibility Determination emphasized.
- Benefit options.

- March 2005

**Notes:**
NOTES:  Subpart F was substantially reorganized to improve clarity and ease of use.

## Subpart GCertification

- No substantive changes.

- March 2005

**Notes:**
NOTES:  There were no changes to this subpart, except for the updating of factual references.  

## Appendices

- An extension of the rule.
- Appendix A:
- New material.
- Examples.
- Revised for clarity.
- Appendix B:
- Reporting form simplified.

- March 2005

**Notes:**
NOTES:  As part of the new definitions you will note that several make reference to Appendix A.  The Appendix to the rule is a legal extension of the rule and has equal weight as the main section of the rule.  

Appendix A was revised to provide detail and examples to amplify the key changes made throughout the regulations.

Appendix B – the form for submitting activity was simplified.  Submission requirements unchanged. 

INSTRUCTOR NOTES:  It needs to be emphasized that appendix A has the same force and effect under the law as the main sections of the regulation per FHWA Office of Chief Counsel.