# Presentation: 664749

## Changes to 49 CFR Part 24 Uniform Relocation Assistance and Real Property Acquisition for Federal and Federally-Assisted Programs

**Rick Etter**
**Airport Acquisition Specialist**
**FAA, Office of Airport Planning and Programming**
**(202) 267-8773, rick.etter@faa.gov**

**FAA Southwest Region Airports Division****2005 Partnering Conference**
**March 9, 2005**

**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.   

## Objectives

- Identify most significant changes.
- Why these changes were made.
- How these changes affect airport projects.

**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.

## Additional Information

- FAA Airports @ _[www.faa.gov/arp/environmental/land](http://www.faa.gov/arp/environmental/land)_
-  Updated Order and Advisory Circular, Q&A’s
- FHWA @ _[www.fhwa.dot.gov/realestate/ua/index.htm](http://www.fhwa.dot.gov/realestate/ua/index.htm)__ _
-  Q&A’s, Training Information
- International Right-of-Way Association @ _[www.irwaonline.org](http://www.irwaonline.org/)_
-   Training Seminars, Conferences

**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.

## Uniform Relocation Assistance and Real Property Acquisition Policies Act (URA)

- URA Purpose *(42 USC 4601 et seq)*
- Treat property owners fairly and consistently.
- Treat persons displaced from their homes and businesses fairly, equitably, consistently.
- Minimize litigation.
- Act efficiently and in a cost-effective manner.

**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.  

## 49 CFR Part 24

- Subpart A – General, § 24.2 Definitions.
- Subpart B - Real Property Appraisal  & Acquisition
- Subpart C -- General  Relocation.
- Subpart D – Moving Cost.
- Subpart E – Replacement Housing.
- Subpart F -- Mobile Homes.

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

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.

## Effective Date of Changes

- Final rule published -- January 4, 2005.
- Rule effective -- February 3, 2005.
- FAA guidance updated.
- Updated FAA Order 5100.37B – March 05
- Updated FAA AC 150/5100-17 – June 05
- Available at _[www.](http://www.faa.gov/arp/environmental/land/index.cfm)__[faa](http://www.faa.gov/arp/environmental/land/index.cfm)__[.](http://www.faa.gov/arp/environmental/land/index.cfm)__[gov](http://www.faa.gov/arp/environmental/land/index.cfm)__[/](http://www.faa.gov/arp/environmental/land/index.cfm)__[arp](http://www.faa.gov/arp/environmental/land/index.cfm)__[/environmental/land](http://www.faa.gov/arp/environmental/land/index.cfm)_

**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 see guidance issued on January 4, 2005 relative to transition and general waivers.  This was also referenced in January 18, 2005, Memo to FHWA Division Offices.  Moreover, State Dept. of Transportation (STD)  Right of Way Operations manuals must be updated by January 1, 2006, unless FHWA grants a waiver. 

## 49 CFR Part 24Subpart A

*Definitions*

**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.   

## Subpart A Changes  § 24.2(a) Definitions

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

- New

**Notes:**
NOTES: The definitions were numbered for ease of reference.   The list of Acronyms is not all inclusive.  See the rule at § 24.2(b)
 New definitions are in your Workbook

(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

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

(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 items 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’ 

## 49 CFR Part 24Subpart B

*Appraisal, Appraisal Review, and Waiver Valuations*

**Notes:**
NOTES:  This section of the training covers material related to Subpart B – Real Property Acquisition. The first part of this section deals with valuation items, including appraisal, appraisal review and waiver valuation option. The second part of this section deals with offers, negotiations, and settlement-related items.

## Key Changes

**Key Changes**

- Appraisal waiver.
- Appraisal and appraisal review requirements.
- Qualifications.
- Responsibilities.

**Notes:**
NOTES:	Waiver valuation (formerly appraisal waiver) § 24.102(c)(2)(ii) and Appendix A

    Appraisal requirements § 24.103(a)

	Appraisal review requirements § 24.104(a), § 24.104(b), and § 24.104(c)

	URA appraisal requirements is found in § 24.2(a)(3) and § 24.103(a) and Appendix A.

	USPAP standards is found in § 24.103(a) and Appendix A

    Appraiser/review appraiser qualifications § 24.103(d) and Appendix A

    Agency responsibilities § 24.103(a)(1) & (2)

	Appraiser/review appraiser responsibilities is found in § 24.103(a) and § 24.104(a) and (b)

## Is an Appraisal Required?

**Is an Appraisal Required?**

**§ 24.102(c)(2)** Appraisal not required if:
- Owner is donating property.
- Agency determines the appraisal problem is:
- Uncomplicated.
- Low value.

**Notes:**
NOTES:  The rule provides two instances when an appraisal is not required:
When the owner is donating his/her property. This is conditional, and is based on the owner giving the agency a release from having to prepare an appraisal.
Based on an agency determination.

For an agency to make the determination that an appraisal is not required, the agency must first decide if it will use the procedure on uncomplicated and low-value properties. The use of the appraisal waiver procedure is both an opportunity to save time on low-value and uncomplicated acquisitions and it is also the agency’s responsibility to be sure that knowledgeable personnel are available to make the determination of when a waiver valuation will be prepared.  A major consideration in this determination is whether there is sufficient local market data (comparable sales) available which is essential to support such a valuation.  If there is not good data available, the waiver valuation should not be used.   

## Appraisal Waiver Changes.

**Appraisal Waiver Changes.**

- Low value is defined as up to $10,000:
- Increased from $2,500.
- Also option now available for up to $25,000:
- FAA must approve.
- Owner must be offered option for appraisal.
-  Sponsor Must Prepare a waiver valuation.

**Notes:**
NOTES:  Under § 24.102(c)(2)(ii), the agency has an option to determine whether an appraisal is necessary. If certain criteria are met, a simpler approach can be used. Although the prior regulation provided such use, it was limited to $2,500, while the new rule allows agencies to use any amount up to $10,000. This has to be both a business decision and one related to the market conditions in the project area. The maximum amount does not have to be used; any amount up to $10,000 could be adopted by the agency and included in its procedures.

The waiver of appraisals for amounts more than $10,000 is covered in § 24.102(c)(2)(ii)(C). That provision creates a programmatic option up to $25,000.  It requires approval by the federal funding agency and the owner must be offered the option for an appraisal. Implementation of the owner’s consent to forgo an appraisal could be placed in the offer which is acknowledged by the owner.  These practices should also be included in the agency’s procedure manual if the agency uses a limit over $10,000.

For FHWA, federal funding agency approval will be done by local division offices according to FHWA policy criteria issued on January 18, 2005.  Note that this is not a waiver in accordance with § 24.7.

## Appraisal or Waiver Valuation?

**Appraisal or Waiver Valuation?**

**Notes:**
IMPLEMENTATION:  Federal Agencies or Project Sponsors would need to: 

Decide if they want to use this option
If already using the procedure, the can adjust the maximum amount per the revised regulation if desired.
If not presently using this concept, then procedures consistent with the regulation would need to be developed. 
Decide whether programmatic option of up to $25,000 will be used and obtain approval to do so, including appropriate revision of operating procedures.  

## Waiver Valuation Requirements

**Waiver Valuation Requirements**

- Prepared by knowledgeable person.
- Not an appraisal.
- Review not required.
- Owner accompaniment not required.
- Sponsor responsible for:
- Basis for preparing.
- Establishing just compensation amount.

**Notes:**
NOTES:  The waiver valuation is not an appraisal. The URA Rule appraisal requirements and USPAP standards relating to appraisals do not apply. An appraisal review is not required, but within the agency, there must be a process to assure that the basis for not preparing an appraisal is appropriate and that the waiver valuation amount is used to determine what is believed to be just compensation.

The basic concept is that the valuation will be prepared by a knowledgeable person who is aware of the general market values in the project area. It is not intended that the person preparing the valuation be an appraiser. The process is designed to free the appraisal staff to concentrate on more complex and difficult appraisal problems. Additionally, the URA requirement for offering the owner the opportunity to accompany the appraiser does not apply to waiver valuations. This will further streamline the process.

There is no specific requirement for “approval” of the waiver valuation (reviewing either the valuation itself or the decision to use a waiver valuation.)  Like an appraisal, the waiver valuation is input to the (separate) determination of the just compensation offer.  Also, the waiver valuation (or an appraisal) need not directly represent what is believed to be just compensation.  Both estimate fair market value, from which the Agency determines the just compensation offer (which may not be less than the appraised/valued amount).

## Appraisal	Assignment 

**Appraisal****	****Assignment **

- Sponsor is to participate in:
- Defining the appraisal problem.
- Developing the scope of work.
- Appraisal must identify personal property.
- Personal Property – § 24.103(a)(2)(i).
- Real Property – Appendix A § 24.103(a)(i).

**Notes:**
The scope of work is a written statement agreed upon by the appraiser and the agency describing the appraisal work the appraiser is to do. 

It should be developed cooperatively by the assigned or contract appraiser and an agency official who is competent to both represent the agency's needs and respect valid appraisal practice.

The scope of work should describe what the agency and the appraiser each are to do, and what is the mutually expected outcome of the assignment/contract.

Although this is a revised approach from what was required in the past relative to abbreviated and detailed appraisal formats, actually greater flexibility is afforded.  Under the new rule, once a “scope of work” has been developed, existing appraisal formats that agencies have in use can continue to be utilized if they fit the scope that has been developed.

Existing guidance for developing an appraisal scope of work has been compiled and is included in the Informational Guide for further clarification on this issue.  

BACKGROUND: The scope of work concept is coming into wide acceptance. Not only does this Rule adopt it, but The Appraisal Foundation is working on scope of work in the USPAP context. Their latest Exposure Draft (2/15/2005) proposes to define Scope of Work as: “the type and extent of research and analysis in an assignment.” Their draft Scope of Work Rule proposes “An appraiser must properly identify the problem to be solved in order to determine the appropriate scope of work. The appraiser must be prepared to demonstrate that the scope of work is sufficient to produce credible assignment results.”  The draft further comments: “Scope of work includes, but is not limited to: • the extent to which the property is identified, • the extent to which tangible property is inspected, • type and extent of data researched, and • the type and extent of analysis applied to arrive at opinions or conclusions.” The draft also comments, “Appraisers have broad flexibility and significant responsibility in determining the scope of work . . . “  We agree with and support these statements, and anticipate continuing convergence with USPAP as we and the Appraisal Standards Board “flesh out” the scope of work concept.

NOTES: § 24.103 (a) (2)(i) requires the appraiser must identify “personal property,” while the appendix adds that “real property” also be identified. Please see the example personalty/realty report in the Informational Guide.  

Appendix A, § 24.103(a)(1): “The appraisal report requires identification of the items considered in the appraisal to be  real property, as well as those identified as personal property.”

We are waiting to see how this new provision develops as a procedural requirement.  Do not expect major new requirements or increased cost to the appraisal process. Intended to improve appraisal process (Get it right the first time.)  No effect on residential appraisals, will improve process for complex appraisal (commercial industrial, damages, unique property) Procdural / Documentation guidance will be in the AC, also FHWA website.

NOTES:  From an implementation standpoint, it is critical to achieve responsible allocation of what is realty what is personalty. The allocation will drive what is acquired vs. relocated.  If this is not sorted out correctly, duplicate payments can result from situations where items acquired and owned by the agency are relocated at an additional expense. The determination of realty/personalty items as part of the appraisal process ensures proper handling of such items. The result is fair compensation and/or reimbursement of relocation expenses to the owners of the respective items. Legal counsel should be consulted if there are any questions as to the status of a given item.
An on-site meeting of the appraiser and relocation staff is essential to accomplishing this process. The result is then included in the appraisal report and serves as a guide in this area for the balance of the acquisition process.

## Should address:
Purpose/function of appraisal (Appraise FMV)
Definition of estate to be appraised.
Appraisal Requirements under 49 CFR 24
Owner accompaniment, 5yr sales history, etc
Assumptions and limiting conditions.
May include:
Data search parameters.
Analysis approaches.
Details commensurate with complexity/value.
May be updated as needed. 

- Should address:
- Purpose/function of appraisal (Appraise FMV)
- Definition of estate to be appraised.
- Appraisal Requirements under 49 CFR 24
- Owner accompaniment, 5yr sales history, etc
- Assumptions and limiting conditions.
- May include:
- Data search parameters.
- Analysis approaches.
- Details commensurate with complexity/value.
- May be updated as needed.

**Appraisal Scope of Work**

**Notes:**
NOTES: The scope of work statement should include the purpose and/or function of the appraisal, a definition of the estate being appraised (if it is fair market value, include its applicable definition), and the assumptions and limiting conditions affecting the appraisal.

The scope of work should consider the specific requirements in the URA definition of “appraisal,” § 24.103(a)(1) through § 24.103(a)(5). and § 24.103(b), and address each as appropriate.

NOTES: . It should include parameters for the data search and identification of the technology, including approaches to value, which are to be used to analyze the data. 

## Appraisal Review

**Appraisal Review**

- Review appraiser responsibilities:
- Assure all appraisal requirements are met.
- Meets definition of appraisal in § 24.2(a)(3).
- Review appraiser actions:
- Review report must state review findings that:
- Appraisal is recommended.
- Appraisal is accepted (meets all requirements).
- Not accepted. (Including reason for rejection).
- If necessary, may prepare an independent valuation that meets requirements (per § 24.103).

**Notes:**
NOTES:  The updated rule more completely addresses the appraisal review function. The requirements should not be that new to the transportation community. The terms may be new, but the approach has not changed. §  24.104(a) of the updated rule specifically addresses what the review appraiser is to examine.

 In § 24.104(a), the review appraiser is given three options in reporting the review. As part of the review, the agency is given the option of authorizing the staff review appraiser to approve the appraisal (as the basis for the agency’s establishment of the offer of just compensation,) and if also authorized by the agency, to develop and report the amount believed to be just compensation. If there are multiple appraisals, the review appraiser can accept two (or more) and recommend one.
	The above actions are required when there is one or multiple appraisals. It should not be significantly different from the process now followed, except that the review appraiser is now required to more formally categorize the assessment of each report. Implementation will require revision of appraisal review procedures.
Appendix A:
“If the initial appraisal submitted for review is not acceptable, the review appraiser is to communicate and work with the appraiser to the greatest extent possible to facilitate the appraiser's development of an acceptable appraisal.
In doing this, the review appraiser is to remain in an advisory role, not directing the appraisal, and retaining objectivity and options for the appraisal review itself.”
“§ 24.104(b). In developing an independent approved or recommended value, the review appraiser may reference any acceptable resource, including acceptable parts of any appraisal, including an otherwise unacceptable appraisal. When a review appraiser develops an independent value, while retaining the appraisal review, that independent value also becomes the approved appraisal of the fair market value for URA statutory Section 301(3) purposes. It is within Agency discretion to decide whether a second review is needed if the first review appraiser establishes a value different from that in the appraisal report or reports on the property.”
“NOTE TO INSTRUCTOR: Anticipate questions regarding preparation of an independent value by the review appraiser complying with USPAP. If the review appraiser believes it does not comply, the jurisdictional exception can be used based on the URA regulations, but must comply with Part 24 appraisal requirements.

IMPLEMENTATION:  Agency procedures would require revision to add this item of responsibility for review appraisers.  
Some procedural / Documentation guidance will be in the AC.

## 49 CFR Part 24Subpart B

*Offers, Negotiations, and Settlements*

**Notes:**
NOTES:

Title Slide the starting point for covering the non-appraisal related changes in Subpart B.

## Key Changes

**Key Changes**

- Voluntary Transactions Offers.
- Administrative settlements.
- Conflict of interest.

**Notes:**
NOTES:

Most of the changes here are just refinements of existing policies.

## Voluntary Transactions 49 CFR 24.101(b)Tenant Relocation & Contacting Owners

**Voluntary Transactions ****49 CFR 24.101(b)****Tenant Relocation & Contacting Owners**

- Tenant relocation eligibility trigger: Initiation of Negotiation is acceptance of sales agreement.
- Notices and offers to owner must be in writing.

**Notes:**
NOTES:

Appendix A, was revised as follows: 
§ 24.2(a)(15)(iv) Initiation of negotiations (Tenants.) Tenants that occupy property that may be acquired amicably, are entitled to the following [no use of eminent domain per § 24.101(b)(1) through (5)] : 

Informed as to eligibility for relocation assistance (i.e., potential eligibility at initiation of negotiations)
Notification when they become fully eligible, if the property is acquired from owner 
Notification that they are no longer eligible for relocation benefits if no agreement is reached with the 
   owner to purchase the property

If a tenant is not readily accessible, as the result of a disaster or emergency, the Agency must make a good faith effort to provide these notifications and document its efforts in writing.

In the context of the second bullet above, where options are being used, this notice would be triggered by a written agreement that binds the acquiring agency to purchase the property from which a tenant would be displaced.  That is the agency and the property owner are subject to legally enforceable commitments to proceed with the purchase. 

IMPLEMENTATION:  Will require potentially additional contacts with tenants occupants as the new procedures are followed. 

FHWA is strengthening requirements for written notices and that now includes willing sellers.  The early notice of interest in acquiring property is also required in writing per § 24.102(b).

## Conflict of Interest 49 CFR 24.102(n)

**Conflict of Interest ****49 CFR 24.102(n)**

- Appraisers, review appraisers, or waiver valuation preparers:
- Shall not have any interest in property.
- Shall not be subject to influence or coercion regarding valuation.
- May be authorized to act as a negotiator where valuation role is for acquisitions <$10,000.

**Notes:**
NOTES:  The maximum amount for value-negotiator has increased to $10,000.  Appendix A, § 24.102(n) Conflict of interest. The overall objective is to minimize the risk of fraud while allowing Agencies to operate as efficiently as possible. This particular provision § 24.102(n)(2)is part of an emphasis in the new rule to assure the valuation process is not inappropriately influenced.
The use of an appraiser/value preparer to negotiate is not required but an option available to agencies. It does not require approval, but if adopted, it should be a standard policy and applied with consistency.
The change is that the preparer of a waiver valuation is added. This applies to everyone doing the work including consultants.
The limit amount of conflict of interest was increased in the new regulation to $10,000 which was previously $2,500.

IMPLEMENTATION: As noted above, preparer of waiver valuation would need to certify of having no interest in the property under appraisal.  Existing required certifications should suffice for appraisers and review appraisers.  

## New Conflict of Interest Restriction@ 49 CFR 24.102(n)(2)

**New Conflict of Interest Restriction****@ 49 CFR 24.102(n)(2)**

- Negotiator (i.e. Person making the offer) cannot supervise or formally evaluate:
- Appraisers.
- Review appraisers.
- Persons performing waiver valuations.
- FAA may waive for hardship.

**Notes:**
NOTES:  “Negotiator” refers to the person or persons immediately involved in making the initial offer and conducting initial negotiations. It is not intended to cover everyone who may eventually be included in settlement negotiations.  This change could require minor modifications of some organizational structures to implement § 24.102(n)(2).

Does this affect contracting appraisal services?  Look for Q&A’s.

INSTRUCTOR NOTES:  Does this provision create a problem for agencies? Who will be the knowledgeable person used to prepare waiver valuations and how will they be removed from being supervised by negotiators.  Isn’t the negotiation section where many of the current preparers of valuation documents housed in many organizations?  
Applies principally to staff positions, but intended to cover any situation that may foster coercion.
“Waiver” is programmatic – not a waiver of the rule under § 24.7 and can be considered where this may crate a hardship on agencies with a small staff.

FAA Order will provide Guidance to Regions/ADO.

## 49 CFR Part 24Subpart C

*General Relocation Requirements*

## Key Changes

**Key Changes**

- Relocation planning for displaced businesses.
- Advisory services.
- No waiver of benefits allowed.

## Relocation PlanningProject Development Stage49 CFR 24.204(a)(4)

**Relocation Planning****Project Development Stage****49 CFR 24.204(a)(4)**

- Relocation Planning must:
- Indicate Availability of replacement business sites
- Discuss impacts of any shortage
- Consider complexity and length of moving process in developing lead time estimate.
- Discuss displacement impact on small financially constrained businesses (e.g. Mom & Pop, Neighborhood dependent business)
- Secondary Sources Allowed to Survey Needs.

**Notes:**
NOTES: NOTES:  In the prior rule, the emphasis was on replacement housing sites. Nothing has changed regarding the residential survey of available housing sites or the residential interview requirement. However, the new rule, in § 205(a)(4), requires an estimate of available business sites. The new item on relocation interviews is also related to businesses, with the addition of six specified items to be covered, at the minimum, in the nonresidential relocation interview.

The new rule emphasizes planning.  In § 205(a)(4), an estimate of available business sites and some preliminary planning to identify and develop solutions is required.

FHWA’s 2002 National Business Relocation Study provides a resource to understand the background of this provision and the one that follows relating to the business interview.

## Relocation PlanningAcquisition Stage (prior to offer)49 CFR 24.204(c)(2)(I)

**Relocation Planning****Acquisition Stage (prior to offer)****49 CFR 24.204(c)(2)(I)**

- Personal interview with displaced business required to determine:
- Replacement Site requirements.
- Need for Outside specialists.
- Personalty/realty issues.
- Time required to vacate.
- Site availability.
- Advance payment needs.

**Notes:**
NOTES:  For nonresidential relocation (primarily businesses), the personal interview requirement is expanded to include, at a minimum, a specified six items. (Please refer to the workbook for additional topical suggestions for consideration during the business interview.) The rule reads as follows:

“This shall include a personal interview with each business. At a minimum, interviews with displaced business owners and operators should include the following items:
(A)	The business's replacement site requirements, current lease terms and other contractual obligations and the financial capacity of the business to accomplish the move.
(B)	Determination of the need for outside specialists in accordance with § 24.301(g)(12) that will be required to assist in planning the move, assistance in the actual move, and in the reinstallation of machinery and/or other personal property.
(C)	For businesses, an identification and resolution of personalty/realty issues. Every effort must be made to identify and resolve realty/personalty issues prior to, or at the time of, the appraisal of the property. * This ties back to Subpart B requirement for determination in appraisal.  Note to instructor: refer class to earlier discussion of this in the appraisal requirements in Subpart B, § 24.103(a)(2)(i).  The appraiser is to identify realty/personalty items and Appendix A.
(D)	An estimate of the time required for the business to vacate the site.
(E)	An estimate of the anticipated difficulty in locating a replacement property.
(F)	An identification of any advance relocation payments required for the move, and the Agency's legal capacity to provide them.”

The new interview provisions are solely in the rule with no additional language in Appendix A. Again, many of these came from the National Business Relocation Study published by FHWA in 2002.

AC will be updated to provide sample interview / questionnaire.    Information required prior to appraisal (complex property), and not later than initiation of negotiation.  Must be completed to provide displaced business relocation eligibility.  Builds on project planning conceptual study or relocation impacts.

## New Advisory Services – Residential

**New Advisory Services – Residential**

- Decent, safe, and sanitary standard relies on local codes.
- If displaced from or moving to government-assisted housing, advise that the size/room limits of that program apply.
- For persons eligible, must advise that government housing assistance exceeds 42-month URA rental assistance.
- Transportation offered to _**all**_ displaced persons.

**Notes:**
INSTRUCTOR NOTES : Remind the audience that the new regulations greatly enhance pre-displacement business planning, but there are also several new aspects relevant to residential displacement in this subpart 

The definition for “decent, safe, and sanitary” was revised slightly and linked closely to local codes and ordinances.
The number of bedrooms needed relates to how many individuals can share a bedroom and the requirement for separate bedrooms for children of different genders. Again, local housing codes govern if this issue is addressed; in the absence of any code requirement, the policy of the displacing agency will be followed.

Lead-based paint is NOT in the rule but is addressed in Appendix A as a public policy consideration. The guidance in Appendix A refers to local code requirements as they pertain to the existence of lead-based paint and the health and safety of the public. If such local code requirements exist, they must be honored. Even if local law does not mandate adherence to such standards, it is strongly recommended that standards be considered as a matter of public policy.

A minor revision highlights that any physical disability (not just one that requires a wheelchair) needs to be accommodated. The concept of this change is that all relevant disabilities or special needs (e.g., vision, hearing, little people, and displaced persons with service animals) must be considered.
The subsidized housing program requirements work and contrast with URA benefits for private housing.

The requirement to offer transportation was always in place, but it now is clarified that it applies to all displaced persons, not just handicapped or elderly.  This can be accomplished in various ways, including providing cab fare, etc.

## No Waiver of Relocation Assistance or Benefits

**No Waiver of Relocation Assistance or Benefits**

- § 24.207(f) No soliciting waivers of relocation assistance or benefits.

**Notes:**
NOTES:  A new requirement was added in § 24.207(f) and in the related item in Appendix A to prohibit agencies from proposing or requesting that displaced persons waive their rights to relocation assistance or benefits.  The purpose is to make sure displacees understand their benefits and are not pressured into foregoing those benefits.  The relocation agency may not suggest or request a waiver.  A displaced person may refuse the benefits on his/her own initiative.

## Expenditure of Payments

**Expenditure of Payments**

- § 24.207(g) Expenditure of relocation funds by displacee does not constitute Federal financial assistance.

**Notes:**
A new requirement was added in § 24.207(g) to codify the longstanding practice and understanding that relocation benefits are not to be considered federal financial assistance. This is an important distinction in situations where replacement properties are acquired by displaced persons.

EXAMPLE: The action of a displaced person renting a replacement dwelling does not cause the present occupant of that replacement dwelling to gain eligibility for any relocation benefits.  Likewise, the construction of a new home or business by a displaced person does not require NEPA or other actions because relocation funds are used in this effort.

## 49 CFR Part 24Subpart D

***Moving Costs and ***
***Related Expenses***

## Major Changes

**Major Changes**

- Subpart reorganized
- Searching expenses increased
- “New” eligible nonresidential expenses.
- New personal property only moves.
- Calculating actual direct loss.
- Low value/high bulk items.

**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.

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

- _Old Rule_
- § 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.**

**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.

## Non-Residential Search Expense 49 CFR 24.301(g)(17) 

**Non-Residential Search Expense** 49 CFR 24.301(g)(17)

- Limit Raised to $2500
- Reimburse Owner or Professionals’ time spent,
- Obtaining permits and attending hearings.
- Negotiating the purchase or lease of replacement site.

**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(d)(11).

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 workbook 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.

## “Related Eligible Expense” 24.303 – (Formerly Under Reestablishment Expense)

**“****Related Eligible Expense” 24.303 – (****Formerly Under Reestablishment Expense)**

- Actual, reasonable, and necessary cost for:
- Utility connection from right of way to replacement building (Not related to personal property).
- Professional services prior to purchase/lease to determine suitability of replacement site:
- Soil testing, feasibility, and marketing studies to determine site suitability.
- Impact fees and one-time assessments for utility usage.

**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.

AC and eForms are being updated.

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. 

## Reestablishment Expense 24.304 –Still subject to $10,000 Cap

**Reestablishment Expense 24.304 –Still subject to $10,000 Cap**

- § 24.304 Actual, reasonable, and necessary costs for:
- Repairs or improvements required by Federal, state, or local law, code, or ordinance.
- Modifications to the replacement property to accommodate the business operation or make the replacement structures suitable for conducting business.
- Construction and installation costs for exterior signing to advertise the business.
- Redecoration or replacement of soiled or worn surfaces, such as paint, paneling, or carpeting.
- Licenses, fees, and permits when not paid as a moving expense.
- Advertisement of replacement location.

**Notes:**
NOTES:  These items stay as reestablishment and claims may not exceed $10,000

AC and eForms are being updated.

## Moves of Personal Property Only

**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**

**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	

**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.”**

**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.

## 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 are examples listed in Appendix A.
**Pay the **
_**lesser**_** of ...**

- or

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

**Cost for new at new site.**

**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.

## 49 CFR Part 24Subpart E

*Replacement Housing Payments*

## Key Changes

**Key Changes**

- Comparability determination.
- Base Monthly Rent for Low Income Households.
- Replacement Housing Payments.
- Cost of Comparable - No List Price Adjustments
- 180-day Owner that Rents
- Downpayments
- Subsequent Occupants

**Notes:**
NOTES:  The materials previously talked about some changes in comparability in discussion in Subpart C.  This section covers some additional comparability issues.

## Comparable Replacement Dwelling

**Comparable Replacement Dwelling**

- Slightly revised definition in § 24.2(a)(6):
- Removed “style of living” phrase.
- Reason – functionally equivalent, but not a “twin”.

**Notes:**
NOTES:  The changes to the definition of “comparable replacement dwelling” are minor. The “style of living” phrase was removed because it sometimes led to interpretations that comparable meant identical, even in unique features.

INSTRUCTOR NOTES:  Style of living has caused difficulties with agencies over-interpreting the meaning.  It was not meant to restrict the selection of a comparable dwelling to only those possessing every feature of the subject.  Congress intended a reasonable standard for the criteria of comparability and not a duplication of every feature.  Thus a home with a wooden dance floor might be comparable to a home without such flooring but with adequate space and room count.  Or a dwelling on a “horse property” does not necessarily have to be similarly situated in the replacement.  The comparable home should serve the same functional purposes as the subject, but does not need to be a twin.  Short summary:  Functionally equivalent and substantially the same.

## Base Monthly Rent for Low Income Households? 49 CFR 24.402(b)(2)(ii) 	

**Base Monthly Rent for Low Income Households?** 49 CFR 24.402(b)(2)(ii) **	**

- Base Monthly Rent is the lesser of Actual Rent or 30% of monthly household income for “Low Income” Households.
- Use 30% of monthly household income _ONLY_ when tenants and occupants are considered “low income” _by the U.S. Department of Housing and Urban Development’s Annual Survey of Income Limits for the Public__** **__Housing and__** **__Section 8 Programs._

**Notes:**
NOTES:The revision in the rule when calculating benefits for tenants and occupants of less than 90 days was to limit the use of the 30% average monthly household income to only those situations in which the income falls below the low-income limit established by HUD for the area. 

Rental Subsidy Computations and Use of Income
The gross income of a tenant is sometimes used in the calculation of the Rental Assistance Payment.  Therefore it is important to accurately obtain this information. If the tenant is determined to be a “low income” person based on the applicable HUD schedule, then income is a consideration in the calculation of the “base monthly rental for the displacement dwelling”  and ultimately may affect the amount of rental payment due the tenant.
The term “base monthly rental for the displacement dwelling” (base rent) is the lesser of:
1.  The current rent and utilities of the displacement dwelling; or
2.  Thirty percent of gross household income, if the amount is classified as low income by the HUD Annual Survey of Income Limits; or
3.  The amount designated for shelter and utilities in certain welfare programs.
Once the base rent is known, then it can be subtracted from the lesser of the actual new rent plus utilities; or the rent plus utilities of the comparable replacement.  The resulting difference is them multiplied by 42 (the payment is paid for a period of forty-two months) to yield the total amount of the Rental Assistance Payment. 
See § 24.402 for additional detail and limitations. 

## Finding Low Income Limits

**Finding Low Income Limits**

- Access is available on the FHWA Realty homepage.

- _[http://www.](http://www.fhwa.dot.gov/realestate/index.htm)__[fhwa](http://www.fhwa.dot.gov/realestate/index.htm)__[.dot.](http://www.fhwa.dot.gov/realestate/index.htm)__[gov](http://www.fhwa.dot.gov/realestate/index.htm)__[/](http://www.fhwa.dot.gov/realestate/index.htm)__[realestate](http://www.fhwa.dot.gov/realestate/index.htm)__[/index.](http://www.fhwa.dot.gov/realestate/index.htm)__[htm](http://www.fhwa.dot.gov/realestate/index.htm)_

**Notes:**
NOTES:  The URL listed on the prior slide is the current link to the information, but it is also accessible from the FHWA’s Realty home page. This page provides links to the related sites you will need to visit once you have determined the household income.

Low-income levels for each area are available by referring to the latest HUD-compiled tables. The new 2005 limits were effective February 11, 2005.  Calculation examples are in the appendix.
NOTES:  The FHWA Web site provides a link to HUD’s most recent publication listing the Mandated Exclusions. The guidance in the rule, and especially in the Appendix A, points out that the agency should also contact the federal agency if they encounter a subsidy that may come from a program starting later than the last published list. 

Examples of funds excluded from income:
Food stamps.
Alaska Native claims settlements payments.
Scholarships funded under Title IV of the Higher Education Act of 1965.
Agent Orange Settlement Funds.
Earned Income Tax Credits.

INSTRUCTOR NOTES: This process is one that lends itself to the use of handouts to step through the calculation process.

## Cost of Comparable Dwelling § 24.403(a)(1)

**Cost of Comparable Dwelling ****§**** 24.403(a)(1)**

- Adjustment of asking price no longer necessary or allowed.
- Former FAA requirement no longer applicable.

**Notes:**
NOTES:  Former rule forced homeowner to become a negotiator.  Change will reduce chance of appeal of replacement housing calculation.  The new procedure will reduce administrative burden for acquiring agencies and give relocatees “the benefit of the doubt” when the replacement housing allowance is calculated.

## Payment Options

**Payment Options**

- § 24.401(f) 180-day owner who rents:

**Eligible for**
**Purchase RHP**
**$19,500**

**Market Rental **
**Computation**
** **
**$12,500**

**Prior Limit**
**$5,250**

**NEW PAYMENT LIMIT**
**NTE Eligible Purchase Price Differential **

**Notes:**
NOTES:  The owner who rents can now receive more than was available under the prior rule if the market supports a higher rental amount. The owner could get “up to” the amount of the purchase RHP if the rental computation supports the supplement.  Income is not considered when calculating a rental assistance payment for an 180-day owner electing to rent.

## Payment Options

**Payment Options**

- § 24.402(c) 90-day Tenant Downpayment:

**Eligible for**
**Rental**
**Assistance**
**$12,000**

**Downpayment**
**0n $50,000**
**Mobile Home**
** **
**$12,000**

**Prior Limit **
**@ 20% **
**Required**
**$10,000**

- NEW LIMIT

**Notes:**
NOTES:  The owner who rents can now receive more than was available under the prior rule if the market supports a higher rental amount. The owner could get “up to” the amount of the purchase RHP if the rental computation supports the supplement.  Income is not considered when calculating a rental assistance payment for an 180-day owner electing to rent.

## Housing of Last Resort, Subsequent Occupants

**Housing of Last Resort, Subsequent Occupants**

- Less than 90 day occupants (Subsequent Occupants) may now receive “rent to rent” payment.
- FHWA is monitoring this and will issue Q&A on the regulatory change and on the use of “Rent Loss Agreements” to preclude Subsequent Occupants.

**Notes:**
FHWA uses “protective rents” to protect re-occupying; HUD uses “move in notice” to avoid this type of tenancy.  Effective use of these strategies will reduce if not eliminate situations where less than 90 day occupants  are encountered.

More to Come on this.

## 49 CFR Part 24Subpart F

*Mobile Homes*

## Key Topics	

**Key Topics****	**

- New definition.
- Reorganization.
- Early payment eligibility determinations.
- Payment options.

**Notes:**
NOTES:  The key items to be covered in this subpart are limited because the basic content did not change.

The new definition is marginally important, but only as tempered by added material in the appendix that relates how the recreational vehicle might be acceptable as an available replacement. DSS issues are a key consideration.

The reorganization approaches the various type of combinations of ownership/tenant/ site/dwelling possible and addresses each separately.  

In each scenario, the determination relating to realty/personalty is emphasized to be made at the front end of the process based on state law considerations. 

Determine availability of comparable replacement sites early in relocation planning.

Some clarification on how to handle certain payment eligibilities should make it easier for mobile home occupants to acquire conventional housing.

## Reorganization

**Reorganization**

- _Old Rule_
- § 24.501
- § 24.502
- § 24.503
- § 24.504
- § 24.505

- _New Rule_
- Moved to Subpart D, § 24.301(g)(8) to (10)
- § 24.501
- § 24.502
- § 24.503

**Notes:**
NOTES:

The subpart was shortened by taking the moving cost provisions in former § 24.502 and fitting them within Subpart D under the eligible expense list. A reference to the Subpart D location – § 24.301(g)(1) through (10) – is included under new § 24.501(b). That paragraph had been in old § 24.505, which was eliminated in the new rule; the content from this section was consolidated elsewhere in the subpart.

§ 24.501 Applicability.
§ 24.502 Replacement housing payment for 180-day mobile homeowner displaced from a mobile home and/or from the acquired mobile home site.
§ 24.503 Replacement housing payment for 90-day mobile home occupants.

## Reorganization (cont.)

**Reorganization (cont.)**

- Revised § 24.502 covers:
- (a) Eligibility for 180-day owner occupants.
- (b) Replacement housing payments.
- (c) Rental assistance.
- (d) Mobile home as personal property.
- Revised § 24.503 covers:
- Eligibility for 90-day occupants and tenants.

**Notes:**
NOTES:  A matrix is included in a later slide to assist in determining eligibility and a logic path for the process to calculate payment eligibility under various scenarios of tenancy and displacement.

## New Definition

**New Definition**

**§** **24.2(a)(17) **Mobile home.
- 	The term mobile home includes manufactured homes and recreational vehicles used as residences.
- Definition was added to clarify what is recognized by HUD for its programs.

**Notes:**
NOTES:  The appendix contains several paragraphs discussing each of these two types of housing that have been combined under the term “mobile home.”

The manufactured home addition comes from HUD-based programs that treat the two types of housing synonymously provided the housing is capable of being sectioned and moved.

The recreational vehicle is an option that is dependent on how these vehicles are perceived by the local jurisdiction to meet standards for DSS. If they do not qualify under local regulation as DSS, then they would not qualify as replacement dwelling.

This clarification adds specificity in Appendix A, § 24.2(a)(17) regarding HUD criteria for mobile homes that must be met if such facilities are to meet DSS housing standards. The guidance defers to local code requirements. HUD criteria is also provided including:
Size minimum of 8’ X 40’ in length or when erected on a site is 320 square feet or more
Connected to utilities, etc.

## Mobile Homes

**Mobile Homes**

- Pre-1976 Mobile Home

- Manufactured Housing

- Recreational Vehicle

**Notes:**
NOTES:

Modular homes are generally considered real estate and are generally dealt with in the same way as conventional housing.
Mobile homes can be considered either real estate or personal property based on state law.
Recreational vehicles are generally considered personal property.
May include a live aboard boat.

Photographs of the various types of housing referenced in this subpart are depicted in this slide as follows:
Recreational vehicles.
Manufactured housing.
Mobile homes.

## Determinations	

**Determinations****	**

- Basic to mobile home situations:
- Is the mobile home being acquired as real or personal property?
- If personal property, is the mobile home:
- Able to be moved?
- Able to be DSS?
- Are comparable replacement sites available prior to displacement?

**Notes:**
NOTES:  In each of the situations outlined for mobile homes, in order to handle occupant eligibility, the agency must first know if real estate, either the site or the mobile home, is being acquired. If not, and the home is considered to be personal property, then additional determinations must be applied to ensure that the appropriate benefits are being provided.

## Payment Option	

**Payment Option****	**

- § 24.502(c) permits purchase of conventional dwelling with combined payment eligibility.
- i.e. Housing supplement for mobile home plus rental supplement for site applied at purchase of conventional replacement dwelling.
- Limited to $22,500 unless last resort applies.

**Notes:**
NOTES:  The revised provision adds clarity to the ability to apply the potential split payments calculated where an owner of a mobile home rents the site.

As in all situations where housing supplements are insufficient, housing of last resort could exceed the limitation. The rental supplement would just be added to the last resort housing supplement to determine the total that would have to be applied to the purchase of a conventional dwelling.

The calculated cost differential for the mobile home would be added to the rental supplement calculated for the site. This gross amount could be used to replicate the procure replacement housing based on assumptions in calculation, or it could be applied to the purchase of a mobile home and site or to the purchase of conventional housing.

INSTRUCTOR NOTES:  It is possible for an agency to acquire a site but not the mobile home on that site.  This often happens if the dwelling unit is called personal property and not purchased by the agency.  In these instances, the owner-occupant of the mobile home unit is not displaced from the dwelling unit.  However, this person is a displaced person and could be paid for moving cost and a replacement housing payment for the rent or purchase of a replacement site. 

## Any questions?

**Thank you.**
***Any questions?***

**Rick Etter**
**Airport Acquisition Specialist**
**FAA, Office of Airport Planning and Programming**
**(202) 267-8773, rick.etter@faa.gov**

**Changes to 49 CFR Part 24**
***That’s ALL of Them!***

**Notes:**
NOTES:  The revised provision adds clarity to the ability to apply the potential split payments calculated where an owner of a mobile home rents the site.

As in all situations where housing supplements are insufficient, housing of last resort could exceed the limitation. The rental supplement would just be added to the last resort housing supplement to determine the total that would have to be applied to the purchase of a conventional dwelling.

The calculated cost differential for the mobile home would be added to the rental supplement calculated for the site. This gross amount could be used to replicate the procure replacement housing based on assumptions in calculation, or it could be applied to the purchase of a mobile home and site or to the purchase of conventional housing.

INSTRUCTOR NOTES:  It is possible for an agency to acquire a site but not the mobile home on that site.  This often happens if the dwelling unit is called personal property and not purchased by the agency.  In these instances, the owner-occupant of the mobile home unit is not displaced from the dwelling unit.  However, this person is a displaced person and could be paid for moving cost and a replacement housing payment for the rent or purchase of a replacement site. 

##    A - <number>

**Notes:**
NOTES:  The revised provision adds clarity to the ability to apply the potential split payments calculated where an owner of a mobile home rents the site.

As in all situations where housing supplements are insufficient, housing of last resort could exceed the limitation. The rental supplement would just be added to the last resort housing supplement to determine the total that would have to be applied to the purchase of a conventional dwelling.

The calculated cost differential for the mobile home would be added to the rental supplement calculated for the site. This gross amount could be used to replicate the procure replacement housing based on assumptions in calculation, or it could be applied to the purchase of a mobile home and site or to the purchase of conventional housing.

INSTRUCTOR NOTES:  It is possible for an agency to acquire a site but not the mobile home on that site.  This often happens if the dwelling unit is called personal property and not purchased by the agency.  In these instances, the owner-occupant of the mobile home unit is not displaced from the dwelling unit.  However, this person is a displaced person and could be paid for moving cost and a replacement housing payment for the rent or purchase of a replacement site.