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RELOCATION ASSISTANCE U.S. Department of Housing 

TO DISPLACED BUSINESSES, and Urban Development 

NONPROFIT ORGANIZATIONS Office of Community Planning 

AND FARMS and Development 

Introduction

This booklet describes the relocation assistance and payments provided to displaced 

businesses, nonprofit organizations and farms under the Uniform Relocation 

Assistance and Real Property Acquisition Policies Act of 1970, as amended

(URA). This includes any such occupant that moves from real property, or moves 

personal property from real property, as a direct result of acquisition, rehabilitation or 

demolition for a Federal project or a project in which Federal funds are used. 

If you are notified that you will be displaced, it is important that you do not move before 

you learn what you must do to receive the relocation payments and other assistance to 

which you are entitled. 

Pursuant to Public Law 105-117, aliens not lawfully present in the United States 

are not eligible for relocation assistance, unless such ineligibility would result in 

exceptional hardship to a qualifying spouse, parent, or child. All persons seeking 

relocation assistance will be required to certify that they are a United States 

citizen or national, or an alien lawfully present in the United States.

This booklet may not answer all of your questions. If you have more questions about 

your relocation, contact the Agency responsible for the project. (Check the back of this 

booklet for the name of the person to contact at the Agency.) Ask your questions before 

you move. Afterwards, it may be too late. 

Summary of Relocation Assistance

As an eligible displaced person, you will be offered the following advisory and financial 

assistance: 

• Advisory Services includes referrals to suitable replacement locations, help in 

preparing claim forms for relocation payments and other assistance to minimize the 

impact of the move. 

• Payment for Moving and Reestablishment Expenses falls into two general 

categories: 

∗ Payment for Actual, Reasonable Moving and Related Expenses. If you 

choose this payment, you may also be eligible for a Payment for 

Reestablishment Expenses, up to $10,000. 

∗ Fixed Payment (“In Lieu Of” Payment). As an alternative to receiving payment 

for your actual, reasonable and related moving and reestablishment expenses, 

certain persons are eligible to choose a Fixed Payment in the amount of 

 $1,000 - $20,000. 
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General Questions

How Will I Know I Am Eligible For Relocation Assistance?

You should receive a written notice explaining your eligibility for relocation assistance. 

You should not move before receiving that notice. If you do, you may not be eligible for 

relocation assistance. 

How Will The Agency Know How Much Help I Need? 

You will be contacted at an early date and personally interviewed by a representative of 

the Agency to determine your relocation needs and preferences. 

How Soon Will I Have To Move? 

Every reasonable effort will be made to provide you with sufficient time to find and 

reestablish your business in a suitable replacement location. If possible, a mutually 

agreeable date for the move will be worked out. You will be given enough time to make 

plans for moving. Unless there is a health or safety emergency, you will not be required 

to move without at least 90 days advance written notice. 

How Will I Find A Replacement Location?

The Agency will provide you with current information on available replacement locations 

that meet your needs. The Agency may also provide you with the names of real estate 

agents and brokers who can assist you in finding the type of replacement location you 

need. 

While the Agency will assist you in obtaining a suitable replacement location, you should 

take an active role in finding and relocating to a location of your choice; no one knows 

your needs better than you. When searching for a replacement location for your 

business, you should ensure that there are no zoning or other requirements which will 

unduly restrict your planned operations. 

What Other Assistance Will Be Available To Help Me?

In addition to help in finding a suitable replacement location, other assistance, as 

necessary, will be provided by the Agency. This includes providing information on 

Federal, State, and local programs that may be of help in reestablishing a business. 

For example, the Small Business Administration (SBA) provides managerial and 

technical assistance to some businesses. 

You should ask the Agency representative to tell you about the specific services that 

may be available to help you. 
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I Have A Replacement Location And Want To Move. What Should I Do?

Before you make any arrangements to move, notify the Agency as soon as possible. 

The Agency will discuss the move with you and advise you of the relocation payment(s) 

for which you may be eligible, the requirements to be met, and how to obtain a 

payment. 

I Plan To Discontinue My Business Rather Than Move. What Should I Do?

If you have decided to discontinue your business rather than reestablish, you may still 

be eligible to receive a payment. Contact the Agency and discuss your decision to 

discontinue your business. You will be informed of the payment, if any, for which you 

may be eligible and the requirements that must be met to obtain the payment. 

I Own This Property. Will I Be Paid For It Before I Have To Move?

If you reach a negotiated agreement to sell your property to a public agency, you will not 

be required to move before you receive the agreed purchase price. If the property is 

acquired through an eminent domain proceeding, you cannot be required to move 

before the estimated fair market value of the property has been deposited with the 

court. (You should be able to withdraw this amount immediately, less any amounts 

necessary to pay off any mortgage or other liens on the property and to resolve any 

special ownership problems. Withdrawal of your share of the money will not affect your 

right to seek additional compensation for your property.) 

Ask the Agency to provide you a copy of the HUD information brochure, When a Public 

Agency Acquires Your Property (HUD-1041-CPD). If you have any questions about 

the acquisition of your property, please contact the Agency. 

What Moving Expenses Are Eligible For Payment? 

If you choose a Payment For Actual, Reasonable Moving and Related Expenses, you 

may include in your claim the reasonable and necessary cost of: 

• Transportation of the displaced person and personal property. Transportation 

costs beyond 50 miles are ineligible, unless the Agency determines that 

relocation beyond 50 miles is justified. 

• Packing, crating, unpacking, and uncrating personal property. 

• Disconnecting, dismantling, removing, reassembling, and reinstalling relocated 

personal property including machinery, equipment, substitute personal property, 

and connections to utilities available within the building; it also includes 

modifications to the personal property, including those mandated by Federal, 

State or local law, code or ordinance, necessary to adapt it to the replacement 

structure, the replacement site, or the utilities at the replacement site, and 

modifications necessary to adapt the utilities at the replacement site to the 

personal property. 
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• Storage of the personal property for a period not to exceed l2 months, unless the 

Agency determines that a longer period is necessary. 

• Insurance for the replacement value of the property in connection with the move 

and necessary storage. 

• The replacement value of property lost, stolen, or damaged in the process of 

moving where insurance covering such loss, theft, or damage is not reasonably 

available. 

• Any license, permit, fees or certification required at the replacement location. 

However, the payment may be based on the remaining useful life of the existing 

license, permit, fees or certification. 

Professional services as the Agency determines to be actual, reasonable and 

necessary for: Planning the move of the personal property; Moving the personal 

property; and installing the relocated personal property at the replacement 

location. 

• Relettering signs and replacing stationery on hand at the time of displacement 

that are made obsolete as a result of the move. 

• Actual direct loss of tangible personal property incurred as a result of moving or 

discontinuing the business or farm operation. The payment shall consist of the 

lesser of: 

(1) The fair market value in place of the item, as is for continued use, less the 

proceeds from its sale; or 

(2) The estimated cost of moving the item as is, but not including any allowance 

for storage or for reconnecting a piece of equipment, if the equipment is in 

storage or not being used at the acquired site. If the business or farm operation 

is discontinued, the estimated cost of moving the item shall be based on a 

moving distance of 50 miles. 

• The reasonable cost incurred in attempting to sell an item that is not to be 

relocated. 

• Purchase of substitute personal property. If an item of personal property, (which 

is used as part of a business or farm operation) is not moved but is promptly 

replaced with a substitute item that performs a comparable function at the 

replacement site, the displaced person is entitled to payment of the lesser of: (1) 

The cost of the substitute item, including installation costs at the replacement 

site, minus any proceeds from the sale or trade-in of the replaced item; or (2) 

The estimated cost of moving and reinstalling the replaced item but with no 

allowance for storage. 

• Searching for a replacement location. A business or farm operation is entitled to 

reimbursement for actual, reasonable expenses, not to exceed $2,500, which are 

incurred in searching for a replacement location, including: Transportation; meals 

and lodging away from home; time spent searching, obtaining permits, attending 

zoning hearings and negotiating the purchase or lease of a replacement site 

(based on reasonable salary or earnings); fees paid to a real estate agent or 

broker to locate a replacement site (exclusive of any fees or commissions related 

to the purchase of such sites). 

• Low value/high bulk. When the personal property to be moved is of low value and 

high bulk, and the cost of moving the property would be disproportionate to its 

value in the judgment of the displacing Agency, the allowable moving cost 
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payment shall not exceed the lesser of: (1) the amount which would be received 

if the property were sold at the site or (2) the replacement cost of a comparable 

quantity delivered to the new business location. Examples include, but are not 

limited to, stockpiled sand, gravel, minerals, metals and other similar items of 

personal property as determined by the Agency. 

In addition to the eligible expenses for moving personal property listed above, the 

following items are also eligible moving expenses if the Agency determines they are 

actual, reasonable and necessary: 

• Connection to available nearby utilities from the right-of-way to improvements at 

the replacement site. 

• Professional services (based on a reasonable Agency pre-approved hourly rate) 

performed prior to the purchase or lease of a replacement site to determine its 

suitability for the displaced person’s business operation including but not limited 

to, soil testing, feasibility and marketing studies (excluding any fees or 

commissions directly related to the purchase or lease of such site). 

• Impact fees or one time assessments for anticipated heavy utility usage. 

The Agency will explain all eligible moving and related costs, as well as those which are 

not eligible. You must be able to account for all costs that you incur; so keep all your 

receipts. The Agency will inform you of the documentation needed to support your 

claim. 

You may elect to pay your moving costs yourself and be repaid by the Agency or, if you 

prefer, you may have the Agency pay the mover. In either case, select your mover with 

care. The Agency can help you select a reliable and reputable mover. 

Also, keep the Agency informed about your moving plans. You must provide the 

Agency reasonable advance written notice of the approximate date of the start of your 

move or disposition of your personal property and an inventory of the items to be 

moved. The Agency may agree to waive this requirement. You must permit the Agency 

to make reasonable and timely inspections of the personal property at the old and new 

locations and to monitor the move. 

What Is A Payment For Reestablishment Expenses?

If you choose to receive a payment for your actual moving and related expenses, you 

may also be eligible to receive a payment for reestablishment expenses, not to exceed 

$10,000. Such expenses must be reasonable and necessary, as determined by the 

Agency. They include, but are not limited to the following: 

• Repairs or improvements to the replacement real property as required by 

Federal, State or local law, code or ordinance. 

• Modifications to the replacement property to accommodate the business 

operation or make replacement structures suitable for conducting the business. 

• Construction and installation costs for exterior signing to advertise the business. 
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• Redecoration or replacement of soiled or worn surfaces at the replacement site, 

such as paint, paneling, or carpeting. 

• Advertisement of replacement location. 

• Estimated increased costs of operation during the first 2 years at the replacement 

site for such items as: Lease or rental charges; Personal or real property taxes; 

Insurance premiums; and Utility charges, excluding impact fees. 

• Other items that the Agency considers essential to the reestablishment of the 

business. 

What Is A Fixed Moving Payment (“In Lieu Of” Payment)? 

Certain businesses, nonprofit organizations and farms are eligible to obtain a Fixed 

Moving Payment, “in lieu of” receiving a payment for Actual, Reasonable Moving and 

Related Expenses and a Payment for Reestablishment Expenses. The Fixed Payment 

for a business or farm operation is based on the average annual net earnings of the 

business or farm operation; the Fixed Payment for a nonprofit organization is based on 

average annual gross revenues less administrative expenses. A Fixed Payment will not 

be less than $1,000, nor more than $20,000. Check with the Agency to see if you are 

eligible for this payment option. 

The Agency will inform you as to your eligibility for this payment and the documentation 

you must submit to support your claim. 

Remember, when you elect to take this payment you are not entitled to reimbursement 

for any other moving or reestablishment expenses. 

Must I File A Claim For A Relocation Payment? 

Yes. You must file a claim for a relocation payment. The Agency will, however, provide 

you with the required claim form, help you to complete it, and explain the type of 

documentation that you must submit in order to receive the payment. 

All claims for relocation payments must be filed no later than 18 months after: 

For tenants, the date of your move. For owners, the later of (1) the date of your 

move; or (2) the date of final payment for the acquisition of your property. 

However, it is to your advantage to file as soon as possible after you move. The sooner 

you submit your claim, the sooner it can be processed and paid. If you are unable to file 

your claim within 18 months, ask the Agency to consider extending this period. 

You will be paid promptly after you file an acceptable claim. If there is any question 

regarding your right to a relocation payment or the amount of the payment, you will be 

notified of the problem in writing and the action you must take to resolve the matter. 

If you must pay any relocation expenses before you move, discuss your needs with the 

Agency. You should be able to obtain an advance payment. An advance payment may 

be placed in "escrow" to ensure that the move will be completed on a timely basis. 
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Will I Have To Pay Rent To The Agency Before I Move?

If the Agency acquires your property, you may be required to pay a fair rent to the 

Agency for the period between the acquisition of the property and the date that you 

move. Such rent will not exceed the market rent for comparable properties in the area. 

Do I Have To Pay Federal Income Taxes On My Relocation Payments?

No. Section 216 of the URA states that you need not report relocation payments as part 

of your gross income for Federal tax purposes. For information on State or local income 

taxes, you should check with the State or local income tax office in your area or with 

your personal tax advisor. 

If I Don't Receive The Required Assistance, Can I Appeal? 

Yes. If you disagree with the Agency's decision as to your right to relocation assistance 

or the amount of a payment, you may appeal the decision to the Agency. The Agency 

will inform you of its appeal procedures. At a minimum, you will have 60 days to file 

your appeal with the Agency after you receive written notification of the Agency's 

determination on your claim. Your appeal must be in writing. However, if you need help, 

the Agency will assist you in preparing your appeal. 

If you are not satisfied with the Agency's final decision on your appeal, you may seek 

review of the matter by the courts. 

I Have More Questions. Who Will Answer Them? 

If you have further questions after reading this booklet, contact the Agency and discuss 

your concerns with the Agency representative. 

Agency: 

Address: 

Office Hours: 

Telephone Number: 

Person to Contact: