RELOCATION

YOUR RIGHTS AND BENEFITS AS A

DISPLACED PERSON UNDER THE FEDERAL 

RELOCATION ASSISTANCE PROGRAM
TABLEOFCONTENTS

Introduction 2

Important Terms Used In This Brochure 3

Section 1 – Relocation Advisory Services

Residential Assistance 6

Business, Farm, and Nonprofit Organization

Assistance 7

Section 2 – Individuals and Families

Moving Costs 9

Replacement Housing 10

Replacement Housing – Purchase Supplement 18

Replacement Housing – Rental Assistance 21

Replacement Housing – Downpayment 25

Section 3 – Business, Farm, and Nonprofit Organizations

Moving Cost Reimbursement 27

Related Eligible Expenses 30

Reestablishment Expenses 30

Fixed Payment For Moving Expenses

(In Lieu Payment) 32

Project Office 34

Relocation Payments Are Not Considered

To Be Income 34

Right To Appeal 34

1

Your Rights and Benefits as a Displaced Person Under 

the Federal Relocation Assistance Program
INTRODUCTION

Government programs designed to benefit the public

as a whole often result in acquisition of private property,

and sometimes in the displacement of people from their 

residences, businesses, nonprofit organizations, or farms.

To provide uniform and equitable treatment for persons 

displaced, Congress passed the Uniform Relocation 

Assistance and Real Property Acquisition Policies Act of

1970, and amended it in 1987. This law, called the Uniform 

Act, is the foundation for the information discussed in this 

brochure.

Acquisition and relocation policies and provisions for all 

Federal and federally assisted programs and projects are 

contained in the government-wide rule published in the 

Federal Register on January 4, 2005. The rules are reprinted 

each year in the Code of Federal Regulations (CFR), Title

49, Part 24. All Federal, State, local government agencies, 

and others receiving Federal financial assistance for public 

programs and projects that require the acquisition of real 

property must comply with the policies and provisions set 

forth in the Uniform Act and the regulation.

The acquisition itself does not need to be federally funded

for the rules to apply. If Federal funds are used in any phase 

of the program or project, the rules of the Uniform Act apply.

Section 1 of this brochure provides information about 

relocation assistance advisory service. Section 2 contains 

information important to you if you are being displaced from 

a residence. Section 3 contains information for displaced 

businesses, farms, and nonprofit organizations.

2

Your Rights and Benefits as a Displaced Person Under 

the Federal Relocation Assistance Program
If you are required to move as a result of a Federal or 

federally assisted program or project, a relocation counselor 

will contact you. The counselor will answer your specific 

questions and provide additional information you may need. 

If you have a disability that prevents you from reading

or understanding this brochure, you will be provided 

appropriate assistance. You should notify the sponsoring 

Agency if you have special requirements for assistance.

This brochure explains your rights as an owner or tenant of 

real property to be acquired for a federally funded program or 

project. The requirements for acquisition of property are 

explained in a brochure entitled Acquisition, Acquiring Real 

Property for Federal and Federal-aid Programs and Projects. 

Acquisition and relocation information can be found on

the Federal Highway Administration Office of Real Estate

Services website www.fhwa.dot.gov/realestate

IMPORTANT TERMS USED IN THIS 

BROCHURE

Agency

Relocation assistance advisory services and payments are 

administered at the local level by an Agency responsible

for the acquisition of real property and/or the displacement 

of people from property to be used for a federally funded 

program or project. The Agency may be a Federal agency,

a State agency, a local agency, such as a county or a

city, or a person carrying out a program or project with

Federal financial assistance. The Agency may contract with 

a qualified individual or firm to administer the relocation 

program. However, the Agency remains responsible for the 

program.

3

Your Rights and Benefits as a Displaced Person Under 

the Federal Relocation Assistance Program
Alien Not Lawfully Present

The law provides that if a displaced person is an alien not 

lawfully present in the United States such person is not 

eligible for relocation payments or assistance under the 

Uniform Relocation Assistance and Real Property Acquisition 

Policies Act, unless ineligibility would result in exceptional

and extremely unusual hardship to the alien’s spouse, parent 

or child, and such spouse, parent or child is a citizen or an 

alien lawfully admitted for permanent residence.

Business

Any lawful activity, with the exception of a farm operation, 

conducted primarily for the purchase, sale, lease, and 

rental of personal or real property; or for the manufacture, 

processing, and/or marketing of products, commodities, or 

any other personal property; or for the sale of services to 

the public; or solely for the purpose of the Uniform Act, an

outdoor advertising display or displays, when the display(s)

must be moved as a result of the project.

Displaced Person

Any person (individual, family, partnership, association or 

corporation) who moves from real property, or moves 

personal property from real property as a direct result of (1) 

the acquisition of the real property, in whole or in part, (2) a

written notice from the Agency of its intent to acquire, (3) the 

initiation of negotiations for the purchase of the real property 

by the Agency, or (4) a written notice requiring a person

to vacate real property for the purpose of rehabilitation or 

demolition of improvements, provided the displacement

is permanent and the property is needed for a Federal or 

federally assisted program or project.

4

Your Rights and Benefits as a Displaced Person Under 

the Federal Relocation Assistance Program
Farm

Any activity conducted solely or primarily for the production 

of one or more agricultural products or commodities, 

including timber, for sale and home use, and customarily

producing such products or commodities in sufficient quantity 

to be capable of contributing materially to the operator’s

support.

Nonprofit Organization 

A public or private entity 

that has established its 

nonprofit status under 

applicable Federal or 

State law.

Program or Project

An activity or series of

activities undertaken by a Federal agency, or an activity 

undertaken by a State or local agency with Federal financial 

assistance in any phase of the activity.

Small Business

A business having not more than 500 employees working at 

a site which is the location of economic activity and which 

will be acquired for a program or project, or is displaced by

a program or project. A site occupied solely by an outdoor 

advertising sign(s) does not qualify for purposes of the 

reestablishment expense benefit.

5

Your Rights and Benefits as a Displaced Person Under 

the Federal Relocation Assistance Program
SECTION 1 – RELOCATION ADVISORY SERVICES

A relocation counselor will contact you and offer relocation 

assistance service.

Any individual, family, business or farm displaced by a 

Federal or federally assisted program shall be offered 

relocation assistance services for the purpose of locating a 

suitable replacement property. Relocation services are 

provided by qualified personnel employed by the Agency. It 

is their goal and desire to be of service to you, and assist in 

any way possible to help you successfully relocate.

Remember, your relocation counselor is there to help

and advise you, so please be sure to make full use of the 

counselor’s services. Do not hesitate to ask questions and 

be sure you fully understand all your rights and benefits.

An individual with a disability will be provided the assistance 

needed to locate and move to a replacement dwelling or

site. The individual should notify the Agency of any special 

requirements for assistance.

RESIDENTIAL ASSISTANCE

A relocation counselor from the Agency will contact and 

interview you to find out your needs. Relocation services and 

payments will be explained in accordance with your eligibility.

During the initial interview your housing needs and desires 

will be determined as well as your need for assistance.

The counselor will offer assistance and provide a current 

listing of comparable properties. You will be provided a 

written determination of the amount of replacement housing

6

Your Rights and Benefits as a Displaced Person Under 

the Federal Relocation Assistance Program
payment for which you qualify. The counselor can supply 

information on other Federal and State programs in your 

area.

Transportation will be offered to inspect housing referrals. 

The Agency will provide counseling or help you get 

assistance from other sources as a means of minimizing 

hardships in adjusting to your new location.

You cannot be required to move unless at least one 

comparable decent, safe, and sanitary (DSS) replacement 

dwelling is made available to you.

Please let your counselor know if you locate a replacement 

dwelling so that it can be inspected to assure that it meets 

DSS standards.

BUSINESS, FARM, AND NONPROFIT 

ORGANIZATION ASSISTANCE

A relocation counselor from the Agency will contact and 

interview you to find out your needs and replacement site 

requirements and estimate the time needed to accomplish 

the move. Relocation services and payments will be 

explained in accordance with your eligibility. It is important

to explain to the counselor any anticipated problems. During 

the initial interview the relocation counselor will ask many 

questions to determine your financial ability to accomplish 

the move, including lease terms and other obligations.

The counselor will help determine the need for outside 

specialists to plan, move, and reinstall personal property.

The counselor will identify and resolve any issues regarding

7

Your Rights and Benefits as a Displaced Person Under 

the Federal Relocation Assistance Program
what is real estate and what is personal property to be 

relocated. The counselor will explore and provide advice as 

to possible sources of funding and assistance from other 

local, State, and Federal agencies. In addition, as needed, 

the relocation counselor will maintain listings of commercial 

properties and farms.

The goal is to achieve a successful relocation back into the 

community.

Social Services Provided By Other Agencies

Your relocation counselor will be familiar with the services 

provided by other public and private agencies in your 

community. If you have special problems, the counselor will 

make every effort to secure the services of those agencies 

with trained personnel who have the expertise to help you. 

Make your needs known in order that you may receive the 

help you need.

8

Your Rights and Benefits as a Displaced Person Under 

the Federal Relocation Assistance Program
SECTION2– INDIVIDUALSANDFAMILIES

MOVING COSTS

If you qualify as a displaced person, you are entitled to 

reimbursement of your moving costs and certain related 

moving expenses. Displaced individuals and families may 

choose to be paid either on the basis of actual, reasonable 

moving costs and related expenses, or according to a fixed 

moving cost schedule. To assure your eligibility and prompt 

payment of moving expenses, you should contact the 

relocation counselor from the Agency before you move.

Actual, Reasonable Moving Costs

You may be paid for your actual, reasonable moving costs 

by a professional mover plus related expenses, or you may 

move yourself. Reimbursement will be limited to a 50-mile 

distance in most cases. Related expenses involved in the 

move may include:

• Packing and unpacking personal property.

• Disconnecting and reconnecting household 

appliances.

• Temporary storage of personal property.

• Insurance while property is in storage or transit.

• Transfer of telephone service and other similar utility 

reconnections.

• Other expenses considered eligible by the Agency.

9

Your Rights and Benefits as a Displaced Person Under 

the Federal Relocation Assistance Program
All expenses must be considered necessary and reasonable 

by the Agency and supported by paid receipts or other 

evidence of expenses incurred.

Fixed Moving Cost Schedule

You may choose to be paid on the basis of a fixed moving 

cost schedule established for your State of residence. The

amount of the payment is based on the number of rooms in 

your dwelling. Your relocation counselor will be able to tell 

you the exact amount you will be eligible to receive if you 

select this option. The schedule is designed to include all of 

the expenses incurred in moving, including those services 

that must be purchased from others.

If you are the owner of a displaced mobile home, you may be 

entitled to a payment for the cost of moving the mobile home 

to a replacement site on an actual cost basis. Displaced 

mobile home occupants (owners or tenants) may also be 

eligible for a payment for moving personal property from

the mobile home such as furniture, appliances and clothing 

on an actual cost basis, or on the basis of a moving cost 

schedule. For a complete explanation of all moving cost 

options involving a mobile home, please discuss the matter 

with your relocation counselor.

REPLACEMENT HOUSING

There are three types of replacement housing payments: 

purchase supplement, rental assistance, and downpayment. 

To understand replacement housing payments you first need 

to become familiar with the terms Comparable; Financial 

Means; Decent, Safe, and Sanitary (DSS); and Last 

Resort Housing.

10

Your Rights and Benefits as a Displaced Person Under 

the Federal Relocation Assistance Program
Comparable

A comparable replacement dwelling must be DSS and 

functionally equivalent to your present dwelling. While not 

necessarily identical to your present dwelling, a comparable 

replacement dwelling should provide for the same utility and

function as the dwelling from which you are being displaced. 

In addition, a comparable replacement dwelling should be:

• Adequate in size to accommodate the occupants

(e.g., you and your family).

• Located in an area that is not subject to unreasonable 

adverse environmental conditions.

• Located in an area that is not less desirable than your 

present location with respect to public utilities and 

commercial and public facilities.

• Reasonably accessible to your place of employment.

• Located on a site that is typical in size for residential 

development with normal site improvements.

• Currently available on the private market.

• Within your financial means.

Financial Means

For a homeowner, if a purchase supplement is needed and 

provided, in addition to the acquisition price for your dwelling, 

then the replacement dwelling is considered to be within your 

financial means.

11

Your Rights and Benefits as a Displaced Person Under 

the Federal Relocation Assistance Program
For a tenant, the monthly rent and estimated average 

monthly utility (electricity, gas, other heating and cooking 

fuels, water and sewer) cost for a comparable replacement 

dwelling is considered to be within financial means if, after 

receiving rental assistance, this amount does not exceed the 

base monthly rent (including average monthly utility cost) for 

the dwelling from which the tenant is displaced.

The Agency may need to calculate the base monthly rent 

using 30% of the displaced tenant’s total monthly gross 

household income, if that income qualifies as low income 

in accordance with established low income amounts 

determined by the U.S. Department of Housing and Urban 

Development (HUD).

The Agency will also evaluate the amounts designated for 

shelter and utilities for a tenant that receives government 

assistance.

The rental assistance payment will be computed using the 

lesser of the three (rent and average monthly utility cost;

30% of the total monthly gross household income for a 

qualified low income tenant; or the total amount designated 

for shelter and utilities for a tenant receiving government 

assistance). To ensure the maximum benefit, it is important 

to provide the Agency appropriate evidence of total monthly 

household income when asked. There are some amounts 

that are not included as monthly household income, 

including income earned by dependents. The Agency will 

explain this procedure in greater detail.

12

Your Rights and Benefits as a Displaced Person Under 

the Federal Relocation Assistance Program
Decent, Safe, and Sanitary

The DSS standard means the replacement dwelling 

meets the minimum requirements established by Federal 

regulations and conforms to applicable local housing and 

occupancy codes. The dwelling shall:

• Be structurally sound, weather tight, and in 

good repair.

• Contain a safe electrical wiring system adequate for 

lighting and other devices.

• Contain a heating system capable of sustaining a 

healthful temperature (approximately 70 degrees 

Fahrenheit) except in those areas where local climatic 

conditions do not require such a system.

• Be adequate in size with respect to the number of 

rooms and area of living space to accommodate the 

displaced person.

• Contain a well-lighted and ventilated bathroom 

providing privacy to the user and containing a sink, 

bathtub or shower stall, and a toilet, all in good 

working order and properly connected to appropriate 

sources of water and sewage drainage system.

• Contain a kitchen area with a fully usable sink, 

properly connected to potable hot and cold water and 

to a sewage drainage system, with adequate space 

and utility connections for a stove and refrigerator.

• Have unobstructed egress to safe, open space at 

ground level.

13

Your Rights and Benefits as a Displaced Person Under 

the Federal Relocation Assistance Program
• Be free of any barriers which prevent reasonable 

ingress, egress or, in the case of a handicapped 

displaced person, use of the dwelling.

IMPORTANT NOTICE

Please understand that the replacement dwelling inspection 

for decent, safe, and sanitary requirements is conducted by 

Agency personnel for the sole purpose of determining your 

eligibility for a relocation payment. Therefore, you must

not interpret the Agency’s approval of a dwelling to provide 

any assurance or guarantee that there are no deficiencies 

in the dwelling or in its fixtures and equipment that may be

discovered at a later date. It is your responsibility to protect 

your best interest and investment in the purchase or rental of 

your replacement property and you must clearly understand 

that the Agency will assume no responsibility if structural, 

mechanical, legal, or other unforeseen problems are 

discovered after the inspection has been conducted.

Last Resort Housing

The term Last Resort Housing is an administrative procedure 

authorized by law to address those times when comparable 

replacement housing is not available under statutory limits 

specified in law. The law and regulation allow the Agency

to provide a replacement housing payment in excess of the 

statutory maximums of $7,200 and $31,000. Because this 

provision is commonly used, the statutory maximums will not 

be restated throughout this brochure.

14

Your Rights and Benefits as a Displaced Person Under 

the Federal Relocation Assistance Program
The Agency must provide comparable replacement housing, 

that is DSS and within your financial means, before you are 

required to move. The Agency may provide the necessary 

housing in a number of ways, such as:

• Making a replacement housing payment in excess of 

the maximum $7,200 or $31,000 statutory limits.

• Purchasing an existing comparable residential 

dwelling and making it available to you in exchange 

for your dwelling.

• Moving and rehabilitating a dwelling and making it 

available to you in exchange for your property.

• Purchasing, rehabilitating or reconstructing an existing 

dwelling to make it comparable to your property.

• Purchasing land and constructing a new replacement 

dwelling comparable to your dwelling when 

comparables are not otherwise available.

• Purchasing an existing dwelling, removing barriers 

or rehabilitating the structure to accommodate a 

handicapped displaced person when a suitable 

comparable replacement dwelling is not available.

• Providing a direct loan which will enable you to 

construct or contract for the construction of a decent, 

safe, and sanitary replacement dwelling.

15

Your Rights and Benefits as a Displaced Person Under 

the Federal Relocation Assistance Program
Freedom of Choice

All eligible displaced persons have the freedom of choice 

in the selection of a replacement dwelling. The Agency will 

not require you, without your written consent, to accept

a replacement dwelling provided by the Agency. If you 

decide not to accept the replacement housing offered by

the Agency, you may secure a replacement dwelling of your 

choice but it must meet the DSS standard.

If you are eligible for Last Resort Housing, your relocation 

counselor will thoroughly explain the program to you.

Length of Occupancy – Basic Occupancy Requirements 

The type of payment you are eligible for depends on whether 

you are an owner or a tenant, and how long you have

lived in the property being acquired prior to the initiation of 

negotiations. “Length of occupancy” simply means counting 

the number of days that you occupied the dwelling before 

the date of initiation of negotiations by the Agency for the 

purchase of the property.

The term “initiation of negotiations” is usually the date the 

Agency makes the first personal contact with the owner of 

real property, or his/her representative, to provide a written 

offer to purchase the property being acquired.

Owners who were in occupancy 90 days or more prior to 

the initiation of negotiations may be eligible for a purchase 

supplement or a rental assistance payment.

Tenants who were in occupancy 90 days or more prior to 

the initiation of negotiations may be eligible for a rental 

assistance payment or downpayment assistance.

16

Your Rights and Benefits as a Displaced Person Under 

the Federal Relocation Assistance Program
17

If you were in occupancy at the time of the initiation of

negotiations, but less than 90 days prior to that date, you 

are considered a displaced person entitled to relocation 

assistance advisory services and moving payments. You

may be entitled to a rental assistance payment if 

comparable replacement rental housing is not available 

within your financial means. The Agency will use the 

financial means test described earlier in this brochure.

This involves checking to see if you qualify as low 

income using the HUD definition.

If so, and you are required to pay rent and utilities in 

excess of 30% of your average monthly gross 

household income for a comparable replacement 

dwelling unit, you may be eligible for a rental 

assistance payment under Last Resort Housing 

because comparable replacement housing is not 

available within your financial means. You should meet 

with your relocation counselor for an explanation of the 

relocation benefits that you may be eligible to receive.

17

Your Rights and Benefits as a Displaced Person Under the 

Federal Relocation Assistance Program
REPLACEMENT HOUSING – PURCHASE 

SUPPLEMENT

For Owner Occupants of 90 Days or More

If you are an owner and occupied your home for 90 days 

or more immediately prior to the initiation of negotiations 

for your property, you may be eligible - in addition to the 

fair market value of your property - for a supplemental 

payment for costs necessary to purchase a comparable 

DSS replacement dwelling. The Agency will compute the 

maximum payment you are eligible to receive. You must 

purchase and occupy a DSS replacement dwelling within

one year. A purchase supplement has three components: a 

price differential, an amount for increased mortgage interest 

and incidental expenses. The purchase supplement is in 

addition to the acquisition price paid for your property.

Price Differential

The price differential payment is the amount by which the 

cost of a replacement dwelling exceeds the acquisition cost 

of the displacement dwelling.

Increased Mortgage Interest

You may be reimbursed for increased mortgage interest 

costs if the interest rate on your new mortgage exceeds 

that of your present mortgage. To be eligible your acquired 

dwelling must have been encumbered by a bona fide

mortgage which was a valid lien for at least 180 days prior

to the initiation of negotiations.

18

Your Rights and Benefits as a Displaced Person Under 

the Federal Relocation Assistance Program
Incidental Expenses

You may be reimbursed for other expenses such as 

reasonable costs incurred for title search, recording fees,

and certain other closing costs, but not for prepaid expenses 

such as real estate taxes and property insurance.

Example of a Price Differential Computation

Example A: Assume the Agency purchases your property

for $100,000. After a thorough study of available comparable 

residential properties on the open market, the Agency 

determines that a comparable replacement property will cost

$116,500. If you purchase a DSS replacement property for

$116,500, you will be eligible for a price differential payment 

of $16,500.

Example B: If you purchase a DSS replacement property 

costing more than $116,500, you pay the difference as 

shown in Example B calculation shown on the next page.

Example C: If your purchase price is less than $116,500, the 

price differential payment will be based on your actual cost.

19

Your Rights and Benefits as a Displaced Person Under 

the Federal Relocation Assistance Program
Agency 

Computation 

of Maximum

Price Differential

Payment

Cost of Comparable Replacement 

Acquisition Price of Your Property 

Maximum Price Differential Payment

$116,500

-100,000

$ 16,500

Example A

Actual Cost of Replacement Property 

(Same Purchase Price as Comparable) 

Acquisition Price of Your Property

Price Differential Payment

$116,500

-100,000

$ 16,500

Example B

Actual Cost of Replacement Property 

Acquisition Price of Your Property 

Difference

Price Differential Payment

You Are Responsible for This Amount

$125,000

-100,000

$ 25,000

$16,500

$8,500

Example C Actual Cost of Replacement Property 

Acquisition Price of Your Property 

Price Differential Payment

Payment is Based on Actual Cost

$114,000

-100,000

$ 14,000

Displacement

Property

Price Differential 

Payment may be 

any amount up to

$16,500.

DSS 

Replacement 

Property

COMPARABLE

20

Your Rights and Benefits as a Displaced Person Under 
the Federal Relocation Assistance Program
REPLACEMENT HOUSING – RENTAL 

ASSISTANCE

90-Day Owners Who Elect to Rent

A rental computation will be computed based on a 

determination of the fair market rent for the acquired dwelling 

compared to a comparable rental dwelling available on

the market. The difference will be multiplied by 42. In no 

circumstances will the rental assistance payment exceed the 

amount the owner would have received as a price differential 

described previously.

Tenants of 90 Days or More

Tenants of 90 days or more may be eligible for a rental 

assistance payment. To be eligible for a rental assistance 

payment, tenants must have been in occupancy at least 90 

days immediately preceding the initiation of negotiations 

for the acquisition of the property.

This payment is designed to enable you to rent a

comparable decent, safe, and sanitary replacement dwelling 

for a 42-month period. If you choose to rent a replacement 

dwelling and the cost of rent and utilities are higher than

you were paying, you may be eligible for a rental assistance 

payment. The Agency will determine the maximum

payment you may be eligible to receive in accordance with 

established procedures.

The rental assistance payment will be paid in a lump sum 

unless the Agency determines that the payment should

be paid in installments. You must rent and occupy a DSS

replacement dwelling within one year to be eligible.

21

Your Rights and Benefits as a Displaced Person Under 

the Federal Relocation Assistance Program
Example:

Assume you have been paying $600 per month rent for the 

dwelling unit occupied by you and purchased by the Agency.

You also pay $200 per month for utilities (electricity, gas, 

other heating and cooking fuels, water, and sewer). The 

rental assistance payment computation always includes

the cost of basic utilities (electricity, gas, other heating and 

cooking fuels, water, and sewer), as well as the cost of 

rent. If rent includes utilities, a separate computation is not 

necessary.

After a study of the rental market, the Agency determines 

that replacement rental unit, that is DSS and comparable to

your unit, is available for $750 per month. It is estimated that 

average monthly utility costs for the replacement unit will be

$210 per month. The maximum rental assistance payment 

you can receive is $160 per month for a 42-month period, or 

a total of $6,720(see calculation on page 24).

22

Your Rights and Benefits as a Displaced Person Under 

the Federal Relocation Assistance Program
Example A: If you select a DSS replacement dwelling unit 

that rents for $800 per month plus $250 for utilities, despite 

the availability of comparable DSS replacement rental units 

that rent for $750 per month plus $210 for utilities, you will 

receive the maximum amount computed by the Agency, or

$6,720.You will be required to pay the additional $90 per 

month yourself.

Difference

Between

Displacement

Property

Total Payment 

may be up to

7,200 for a 42 

month period.

DSS 

Replacement 

Property

COMPARABLE

...not less than

90 days prior 

occupancy

... rented and 

occupied

within one year

23

Your Rights and Benefits as a Displaced Person Under 
the Federal Relocation Assistance Program
Example B: If you select a DSS replacement dwelling unit 

that rents for more than your present unit, but less than 

amount determined by the Agency as necessary to rent a 

comparable unit, your payment will be based on actual cost. 

For example, assume you select a replacement dwelling unit 

that rents for $725 per month plus $175 for utilities. On the 

basis of actual cost, you will be eligible for a payment of 

$100 per month for 42 months, or $4,200.

Agency 

Computation 

of Maximum 

Rental 

Assistance 

Payment

Rent You are Currently Paying

Plus Cost for Utilities You are Paying

Rent for a Comparable DSS Dwelling

Estimated Cost for Utilities

Difference ($960-800=$160) x 42 months

Maximum Rental Assistance Payment

$600

+200

$800

$750

+210

$960

$6720

$6720

Example A Actual Rent for DSS Replacement Property

Plus Estimated Cost for Utilities

Difference ($1050-800=$250) x 42 months

Rental Assistance Payment

$800

+250

$1050

$10500

$6720

Example B Actual Rent for DSS Replacement Property

Plus Estimated Cost for Utilities

Difference ($900-800=$100) x 42 months

Rental Assistance Payment

$725

+175

$900

$4200

$4200

24

Your Rights and Benefits as a Displaced Person Under 

the Federal Relocation Assistance Program
REPLACEMENT HOUSING –

DOWNPAYMENT

Tenants of 90 Days or More

Tenants of 90 days or more may be eligible for a 

downpayment and incidental expenses. The Agency will 

determine the maximum downpayment you may be eligible 

to receive based on its computation for a rental assistance 

payment. 

To be eligible for the full amount of the downpayment 

assistance payment, the entire payment must be used to 

purchase a DSS replacement dwelling. The payment may 

be utilized for a downpayment toward the purchase price 

and/or eligible incidental expenses. Incidental expenses 

include the reasonable costs of title search, recording

fees, and certain other closing costs but do not include 

prepaid expenses such as real estate taxes and property 

insurance. You may be eligible for the reimbursement of loan 

origination or loan assumption fees if such fees are normal

to real estate transactions in your area and do not represent 

prepaid interest. The combined amount of the downpayment 

and incidental expenses cannot exceed the amount the 

Agency computed as your maximum rental assistance 

payment.

25

Your Rights and Benefits as a Displaced Person Under 

the Federal Relocation Assistance Program
The relocation counselor will explain how the Agency 

determines the maximum downpayment assistance 

payment.

DSS REMINDER

It is very important to remember that the replacement 

dwelling you select must meet the basic DSS standard. Do 

not execute a sales contract or a lease agreement until a 

representative from the Agency has inspected and certified 

in writing that the dwelling you propose to purchase or rent

meets the DSS standard. Please do not jeopardize your right 

to receive a replacement housing payment by moving into a 

substandard dwelling.

FAIR HOUSING LAWS

Title VI of the Civil Rights Act of 1964 and Title VIII of the 

Civil Rights Act of 1968 set forth the policy of the United 

States to provide, within constitutional limitations, for fair 

housing throughout the United States. These Acts and 

Executive Order 11063 make discriminatory practices in the 

purchase and rental of residential units illegal if based on 

race, color, religion, sex, or national origin.

Whenever possible, a minority person shall be given 

reasonable opportunity to relocate to a DSS replacement 

dwelling which is not located in an area of minority 

concentration that is within their financial means. This policy 

does not require an Agency to provide a displaced person 

with a larger payment than is necessary to enable the person 

to relocate to a comparable replacement dwelling.

26

Your Rights and Benefits as a Displaced Person Under 

the Federal Relocation Assistance Program
SECTION3–BUSINESS,FARM,ANDNONPROFIT

ORGANIZATIONS

MOVING COST REIMBURSEMENT

Owners or tenants may be paid on the basis of actual, 

reasonable moving costs and related expenses or, under 

certain circumstances, a fixed payment. Actual, reasonable 

moving expenses may be paid when the move is performed 

by a professional mover or if you move yourself. Related 

expenses, such as personal property losses, expenses in 

finding a replacement site, and reestablishment expenses 

may also be reimbursable.

You must provide the Agency with an inventory of the 

personal property to be moved and advance notice of the 

approximate date of the move, unless the Agency specifically 

tells you these notices are not necessary.

The Agency has the right to inspect the personal property at 

the displacement and replacement sites, and to monitor the 

move.

Actual Cost Move

You may be paid the actual, reasonable and necessary cost 

of your move when the move is performed by a professional 

mover or when you elect to move yourself, however, all

your moving costs must be supported by paid receipts or 

other evidence of expenses incurred. In addition to the 

transportation costs of your personal property, certain 

other expenses may be reimbursable, such as packing,

crating, unpacking and uncrating, and the disconnecting, 

dismantling, removing, reassembling, and reinstalling

relocated machinery, equipment and other personal property.

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Your Rights and Benefits as a Displaced Person Under 

the Federal Relocation Assistance Program
Other expenses such as professional services necessary 

for planning and carrying out the move, temporary storage 

costs, and the cost of licenses, permits and certifications 

may also be reimbursable. This is not an inclusive list of 

moving related expenses. Your relocation counselor will 

provide you with a complete explanation of reimbursable 

expenses.

Estimated Cost Move

If you agree to take full responsibility for all or part of the 

move of your operation, the Agency may approve a payment 

not to exceed the lower of two acceptable bids or estimates 

obtained by the Agency from qualified moving firms, moving 

consultants, or a qualified Agency staff employee. A low

cost or uncomplicated move may be based on a single bid 

or estimate at the Agency’s discretion. The advantage of 

this moving option is that it relieves you from documenting 

all moving expenses because the payment is limited to the

amount of the lowest acceptable bid or estimate. The Agency 

may make the payment without additional documentation.

Direct Loss of Tangible Personal Property

Displaced businesses, farms, and nonprofit organizations 

may be eligible for a payment for the actual direct loss of 

tangible personal property which is incurred as a result of the 

move or discontinuance of the operation. This payment

is based on the lesser of the value of the item for continued 

use at the displacement site less the proceeds from its sale, 

or the estimated cost of moving the item. Your relocation 

counselor will explain this procedure in detail if this is a 

consideration for you.

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Your Rights and Benefits as a Displaced Person Under 

the Federal Relocation Assistance Program
Low Value High Bulk Property

If an Agency considers a personal property item to be of low 

value and high bulk, and moving costs are disproportionate 

to its value (such as minerals, metals, rock, or topsoil), the 

allowable moving cost payment shall not exceed the lesser 

of the amount which would be received if the property were 

sold at the site, or, the replacement cost of a comparable 

quantity delivered to the new business location.

Searching Expenses for Replacement Property

Displaced businesses, farms, and nonprofit organizations 

are entitled to reimbursement for actual, reasonable 

expenses incurred in searching for a replacement property,

not to exceed $2,500. Expenses may include transportation, 

meals, and lodging when away from home; the reasonable 

value of the time spent during the search; and other 

expenses determined to be reasonable and necessary by 

the Agency.

Fees paid to real estate agents or brokers to locate a 

replacement site may be reimbursed, exclusive of any 

commissions or fees related to the purchase of the site. 

Commissions and fees related to the purchase of a 

replacement site are not eligible relocation expenses and will 

not be reimbursed.

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Your Rights and Benefits as a Displaced Person Under 

the Federal Relocation Assistance Program
RELATED ELIGIBLE EXPENSES

In addition to the moving expenses listed above, costs for 

these items may be reimbursed if the Agency determines 

they are actual, reasonable, and necessary:

• Connection to available nearby utilities from the rightof-way to improvements at the replacement site.

• Professional services to determine a sites’ suitability 

for the displaced person’s operation.

• Impact fees or one time assessments for heavy utility 

usage as determined necessary by the Agency.

Please discuss this with your relocation counselor before 

incurring these costs to assure that they are reimbursable.

REESTABLISHMENT EXPENSES

A small business, farm, or nonprofit organization may be 

eligible for a payment, not to exceed $25,000, for expenses 

actually incurred in relocating and reestablishing the 

enterprise at a replacement site. To qualify, the business, 

farm, or nonprofit organization must have not more than 500 

employees working at the site who will be displaced by a 

program or project.

Reestablishment expenses may include, but are not limited 

to:

• Repairs or improvements to the replacement real 

property required by Federal, State, and local laws, 

codes or ordinances.

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Your Rights and Benefits as a Displaced Person Under 

the Federal Relocation Assistance Program
• Modifications to the replacement real property to 

make the structure(s) suitable for the operation.

• Construction and installation costs of exterior 

advertising signs.

• Redecoration or replacement such as painting, 

wallpapering, paneling, and carpeting when required 

by the condition of the replacement site.

• Advertising the replacement location.

• Estimated increased costs of operation at the 

replacement site during the first two years for items 

such as: lease or rental charges; personal or real 

property taxes; insurance premiums; utility charges 

(excluding impact fees).

• Other items that the Agency considers essential for 

reestablishment.

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Your Rights and Benefits as a Displaced Person Under 

the Federal Relocation Assistance Program
FIXED PAYMENT FOR ACTUAL MOVING 

EXPENSES (IN LIEU PAYMENT)

Displaced businesses, farms, and nonprofit organizations 

may be eligible for a fixed payment in lieu of (in place

of) actual moving expenses, personal property losses, 

searching expense, and reestablishment expenses. The

fixed payment may not be less than $1,000 nor more than

$40,000.

For a business to be eligible for a fixed payment, the Agency 

must determine the following:

• Business owns or rents personal property that must 

be moved due to the displacement.

• Business cannot be relocated without a substantial 

loss of its existing patronage.

• Business is not part of a commercial enterprise having 

more than three other businesses engaged in the 

same or similar activity which are under the same 

ownership and are not being displaced by the Agency.

• Business contributed materially to the income of the 

displaced business operator during the two taxable 

years prior to displacement.

Any business operation that is engaged solely in the rental of 

space to others is not eligible for a fixed payment. This includes 

the rental of space for residential or business purposes.

Eligibility requirements for farms and nonprofit organizations are 

slightly different than business requirements. The computation 

for nonprofit organizations differs in that the payment is

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Your Rights and Benefits as a Displaced Person Under 

the Federal Relocation Assistance Program
computed on the basis of average annual gross revenues 

less administrative expenses for the two year period 

specified. If you are interested in a fixed payment, please 

consult your relocation counselor for additional information.

Computation of Your Fixed Payment

The fixed payment for a displaced business or farm is based 

upon the average annual net earnings of the operation for 

the two taxable years immediately preceding the taxable

year in which it was displaced, or a two-year period deemed 

more representative by the Agency. You must provide the 

Agency with proof of net earnings to support your claim. 

Proof of net earnings can be documented by income tax 

returns, certified financial statements, or other reasonable 

evidence acceptable to the Agency.

Fixed Payment Example

2012 2013 2014

Annual Net Earnings

$33,000

Annual Net Earnings

$37,000

Year Displaced

Average annual net earnings

$33,000 + $37,000 = $70,000 / 2 = $35,000

Fixed Payment = $35,000

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Your Rights and Benefits as a Displaced Person Under 

the Federal Relocation Assistance Program
PROJECT OFFICE

The Agency may establish a relocation office near the 

project. Project relocation offices are usually open during 

hours convenient to persons being displaced, including 

evening hours when necessary. If the Agency opens a 

project office, the staff will be happy to assist you, answer 

questions, and will maintain various types of information.

RELOCATION PAYMENTS ARE NOT 

CONSIDERED TO BE INCOME

No relocation payment received will be considered as 

income for the purpose of the Internal Revenue Code. No 

relocation payment received will be considered income

for the purposes of determining eligibility or the extent of 

eligibility of any person for assistance under the Social 

Security Act or any other Federal law (except for any Federal 

law providing low-income housing assistance).

RIGHT TO APPEAL

Any aggrieved person may file a written appeal with the 

head of the Agency if the person believes the Agency has

failed to properly determine his or her eligibility for relocation 

assistance advisory services, or the amount of a relocation 

payment.

If you have a grievance, you will be given a prompt and 

full opportunity to be heard. You will also have the right to 

be represented by legal counsel or other representative in

connection with the appeal, but solely at your own expense.

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Your Rights and Benefits as a Displaced Person Under 

the Federal Relocation Assistance Program
The Agency will promptly review your appeal and consider 

all pertinent justification and information available to ensure 

a fair and full review. The Agency will provide you with

a written determination as well as an explanation of the 

decision. If you are still dissatisfied with the relief granted, 

the Agency will advise you of your right to seek judicial 

review of the Agency decision.

An alien not lawfully present in the United States shall not 

be eligible to receive relocation payments or any other 

assistance provided under 49 CFR Part 24.

This brochure is provided to assist you in understanding 

your rights and benefits. If you have questions regarding 

your relocation please contact your sponsoring Agency 

representative.

Additional information on Federal relocation and acquisition 

requirements, the law, and the regulation can be found at 

www.fhwa.dot.gov/realestate

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Your Rights and Benefits as a Displaced Person Under 

the Federal Relocation Assistance Program
36

Your Rights and Benefits as a Displaced Person Under 

the Federal Relocation Assistance Program
Publication No. FHWA-HEP-05-031