Nebraska Administrative Code › Topic - TRANSPORTATION, DEPARTMENT OF › Title 410 - NEBRASKA DEPARTMENT OF ROADS - RIGHT OF WAY DIVISION › Chapter 5 - Relocation Assistance › Appendix A - ADDITIONAL INFORMATION

Current through June 17, 2024
This appendix provides additional information to explain the intent of
	 certain provisions.
GENERAL (001)
DEFINITIONS. ( 001.02)
DEFINITION OF COMPARABLE REPLACEMENT DWELLING. (
	 001.02D)
The requirement in Section
	 001.02D2 that a
	 comparable replacement dwelling be "functionally equivalent" to the
	 displacement dwelling means that it must perform the same function, provide the
	 same utility, and be capable of contributing to a comparable style of living as
	 the displacement dwelling. While it need not possess every feature of the
	 displacement dwelling, the principal features must be present.
For example, if the displacement dwelling contains a pantry and a
	 similar dwelling is not available, a replacement dwelling with ample kitchen
	 cupboards may be acceptable. Insulated and heated space in a garage might prove
	 an adequate substitute for basement workshop space. A dining area may
	 substitute for a separate dining room. Under some circumstances, attic space
	 could substitute for basement space for storage purposes, and vice
	 versa.
Only in unusual circumstances may a comparable replacement dwelling
	 contain fewer rooms or, consequentially less living space than the displacement
	 dwelling. Such may be the case when a decent, safe, and sanitary replacement
	 dwelling (which by definition is "adequate to accommodate" the displaced
	 person) may be found to be "functionally equivalent" to a larger but very
	 run-down substandard displacement dwelling.
Section
	 001.02D7 requires that
	 a comparable replacement dwelling for a person who is not receiving assistance
	 under any government housing program before displacement must be currently
	 available on the private market without any subsidy under a government housing
	 program.
A public housing unit may qualify as a comparable replacement dwelling
	 only for a person displaced from a public housing unit; a privately-owned
	 dwelling with a housing program subsidy tied to the unit may qualify as a
	 comparable replacement dwelling only for a person displaced from a similarly
	 subsidized unit or public housing; a housing program subsidy to a person (not
	 tied to the building), such as a HUD Section 8 Existing Housing Program
	 Certificate or a Housing Voucher, may be reflected in an offer of a comparable
	 replacement dwelling to a person receiving a similar subsidy or occupying a
	 privately-owned subsidized unit or public housing unit before
	 displacement.
However, nothing in this rule prohibits an Agency from offering, or
	 precludes a person from accepting, assistance under a government housing
	 program, even if the person did not receive similar assistance before
	 displacement. However, the Agency is obligated to inform the person of his or
	 her options under this rule. (If a person accepts assistance under a government
	 housing program, the rental assistance payment under Section 004.02 would be
	 computed on the basis of the persons actual out-of-pocket cost for the
	 replacement housing.)
PERSONS NOT DISPLACED. (
	 001.02G2)
Section
	 001.2G2d recognizes
	 that there are circumstances where the acquisition of real property takes place
	 without the intent or necessity that an occupant of the property be permanently
	 displaced. Because such occupants are not considered "displaced persons" under
	 this rule, great care must be exercised to ensure that they are treated fairly
	 and equitably. For example, if the tenant-occupant of a dwelling will not be
	 displaced, but is required to relocate temporarily in connection with the
	 project, the temporarily-occupied housing must be decent, safe, and sanitary
	 and the tenant must be reimbursed for all reasonable out-of-pocket expenses
	 incurred in connection with the temporary relocation, including moving expenses
	 and increased housing costs during the temporary relocation.
It is also noted that any person who disagrees with the Agencys
	 determination that he or she is not a displaced person under this rule may file
	 an appeal in accordance with Section 001.05.
Section
	 001.02G2e refers to
	 voluntary acquisitions. These transactions must meet the following
	 conditions:
(i) No specific site or property needs to be acquired, although the
	 Agency may limit its search for alternative sites to a general geographic area.
	 Where an Agency wishes to purchase more than one site within a geographic area
	 on this basis, all owners are to be treated similarly.
(ii) The property to be acquired is not part of an intended, planned,
	 or designated project area where all or substantially all of the property
	 within the area is to be acquired within specific time limits.
(iii) The Agency will not acquire the property in the event
	 negotiations fail to result in an amicable agreement, and the owner is so
	 informed in writing.
(iv) The Agency will inform the owner of what it believes to be the
	 fair market value of the property; or
Acquisitions for programs or projects undertaken by an Agency or person
	 that does not have authority to acquire property by eminent domain, provided
	 that such Agency or person shall:
(i) Prior to making an offer for the property, clearly advise the owner
	 that it is unable to acquire the property in the event negotiations fail to
	 result in an amicable agreement; and
(ii) Inform the owner of what it believes to be fair market value of
	 the property.
INITIATION OF NEGOTIATIONS. (
	 001.02K)
This section of the rule provides a special definition for acquisitions
	 and displacements under Public Law 96-510 or Superfund. These activities differ
	 under Superfund in that relocation may precede acquisition, the reverse of the
	 normal sequence. Superfund is a program designed to clean up hazardous waste
	 sites. When such a site is discovered, it may be necessary, in certain limited
	 circumstances, to alert the public to the danger and to the advisability of
	 moving immediately. If a decision is made later to permanently relocate such
	 persons, those who had moved earlier would no longer be on site when a formal,
	 written offer to acquire the property was made and thus would lose their
	 eligibility for a replacement housing payment. In order to prevent this unfair
	 outcome, we have provided a definition which is based on the public health
	 advisory or announcement of permanent relocation.
SMALL BUSINESS. (
	 001.02S)
Section
	 001.02S is intended to
	 emphasize "a location of economic activity." In doing this, it is clear that
	 such businesses as a coin-operated facility or storage building visited by
	 employees on a regular basis, daily or at least weekly, would qualify for
	 reestablishment expenses. This would also include an occupied rental property
	 at which the owner maintains personal property and for which rental property
	 the owner is responsible for maintenance.
NO DUPLICATION OF PAYMENTS. ( 001.03)
This section prohibits an Agency from making a payment to a person
	 under these regulations that would duplicate another payment the person
	 receives under federal, state, or local law. The Agency is not required to
	 conduct an exhaustive search for such other payments; it is only required to
	 avoid creating a duplication based on the Agencys knowledge at the time a
	 payment under these regulations is computed.
GENERAL RELOCATION REQUIREMENTS (002)
AVAILABILITY OF COMPARABLE REPLACEMENT DWELLING BEFORE DISPLACEMENT. (
	 002.04)
GENERAL. (
	 002.04A)
This provision requires that no one may be required to move from a
	 dwelling without one comparable replacement dwelling having been made
	 available. In addition, Section
	 002.04A requires that,
	 "Where possible, three or more comparable replacement dwellings shall be made
	 available." Thus, the basic standard for the number of referrals required under
	 this section is three. Only in situations where three comparable replacement
	 dwellings are not available (e.g., when the local housing market does not
	 contain three comparable dwellings) may the Agency make fewer than three
	 referrals.
RELOCATION ASSISTANCE ADVISORY SERVICES. ( 002.05)
Section
	 002.05B2b(3) is
	 intended to emphasize that if the comparable replacement dwellings are located
	 in areas of minority concentration, minority persons should, if possible, also
	 be given opportunities to relocate to replacement dwellings not located in such
	 areas.
GENERAL REQUIREMENTS - CLAIMS FOR RELOCATION PAYMENTS. ( 002.07)
Section
	 002.07A allows an
	 Agency to make a payment for low cost or uncomplicated moves without additional
	 documentation, as long as the payment is limited to the amount of the lowest
	 acceptable bid or estimate, as provided for in Section
	 003.03C.
PAYMENT FOR MOVING AND RELATED EXPENSES (003)
FIXED PAYMENT FOR MOVING EXPENSES - NONRESIDENTIAL MOVES. (
	 003.06)
NONPROFIT ORGANIZATIONS. (
	 003.06D)
Gross revenues may include membership fees, class fees, cash donations,
	 tithes, receipts from sales or other forms of fund collection that enables the
	 nonprofit organization to operate. Administrative expenses are those for
	 administrative support such as rent, utilities, salaries, advertising and other
	 like items as well as fund raising expenses. Operating expenses for carrying
	 out the purposes of the nonprofit organization are not included in
	 administrative expenses. The monetary receipts and expense amounts may be
	 verified with certified financial statements or financial documents required by
	 public agencies.
REPLACEMENT HOUSING PAYMENTS (004)
REPLACEMENT HOUSING PAYMENT FOR 180-DAY HOMEOWNER OCCUPANTS. (
	 004.01)
The provision for extending eligibility for a replacement housing
	 payment beyond the one-year period for good cause means that an extension may
	 be granted if some event beyond the control of the displaced person such as
	 acute or life threatening illness, bad weather preventing the completion of
	 construction of a replacement dwelling or other like circumstances should cause
	 delays in occupying a decent, safe, and sanitary replacement dwelling. (
	 004.01A2)
The provision in Section 004.01C4c to use the current fair market value
	 for residential use does not mean the Agency must have the property appraised.
	 Any reasonable method for arriving at the fair market value may be used. (
	 004.01C)
INCREASE MORTGAGE INTEREST COSTS. (
	 004.01D)
The provision in Section
	 004.01D set forth the
	 factors to be used in computing the payment that will be required to reduce a
	 persons replacement mortgage (added to the downpayment) to an amount which can
	 be amortized at the same monthly payment for principal and interest over the
	 same period of time as the remaining term on the displacement mortgages. If the
	 term on the new mortgage is shorter and, therefore, used in the determination
	 of the payment, it will be necessary to recalculate a new monthly principal and
	 interest payment for the displacement dwelling based on the interest rate and
	 mortgage balance(s) on the displacement dwelling and the term of the new
	 mortgage. This payment is commonly known as the "buydown".
The remaining principal balance, the interest rate, and monthly
	 principal and interest payments for the old mortgage as well as the interest
	 rate, points and term for the new mortgage must be known to compute the
	 increased mortgage interest costs. If the combination of interest and points
	 for the new mortgage exceeds the current prevailing fixed interest rate and
	 points for conventional mortgages and there is no justification for the
	 excessive rate, then the current prevailing fixed interest rate and points
	 shall be used in the computations. Justification may be the unavailability of
	 the current prevailing rate due to the amount of the new mortgage, credit
	 difficulties, or other similar reasons.
SAMPLE COMPUTATION
Old Mortgage:
Remaining Principal Balance
				  ...............................................................
$50, 000.00
Monthly Payment (principal and interest)
				  ............................................
458.22
Interest Rate (percent)
				  .........................................................................
7
New Mortgage:
Interest rate (percent)
				  ...........................................................................
10
Points
				  ....................................................................................................
3
Term (years)
				  ..........................................................................................
15
Remaining term of the old mortgage is determined to be 174 months.
	 (Determining, or computing, the actual remaining term is more reliable than
	 using the data supplied by the mortgagee.) However, if it is shorter, use the
	 term of the new mortgage and compute the needed monthly payment.
The amount to be financed to maintain a monthly payment of $ 458.22 at
	 10% is $42, 010.18.
Remaining principal balance on old mortgage
				  ............................................
$50, 000.00
Less amount of reduced loan
				  .......................................................................
-42, 010.18
Increased mortgage interest costs
				  ...............................................................
$ 7, 989.82
3 points on $42,
				  010.18.................................................................................
1, 260.31
Total buydown necessary to maintain payments at $
				  458.22/month
				  ...............................................................
$ 9, 250.13
If the new mortgage actually obtained is less than the computed amount
	 for a new mortgage ($42, 010.18), the buydown shall be prorated accordingly. If
	 the actual mortgage obtained in our example were $35,000, the buydown payment
	 would be $7, 706.57 ($35,000 divided by $42, 010.18 =.8331 $9, 250.13 x .8331 =
	 $7, 706.57).
The following sample is for computations involving a shorter term at
	 the replacement property.
Old Mortgage:
Remaining Principal Balance
				  ...............................................................
$50, 000.00
Monthly Payment (principal and interest)
				  ............................................
458.22
Interest Rate (percent)
				  .........................................................................
7
Remaining Term (months)
				  .............................................................................
174
New Mortgage:
Interest Rate (percent)
				  .........................................................................
10
Term (months
				  ........................................................................................
120
Points
				  ....................................................................................................
3
Because the new term is less than the remaining term at the
	 displacement dwelling, it is necessary to recalculate a new monthly principal
	 and interest payment for the displacement dwelling based on the interest rate
	 and mortgage balance on the old mortgage and the term of the new mortgage. The
	 monthly payment for $50, 000.00 at 7% for 120 months is $ 580.54.
The amount to be financed to maintain a monthly payment of $ 580.54 at
	 10% is $43, 930.14.
Remaining principal balance on old mortgage
				  ............................................
$50, 000.00
Less amount of reduced loan
				  .......................................................................
43, 930.14
Increased mortgage interest costs
				  ...............................................................
$ 6, 069.86
3 points on $43,
				  930.14.................................................................................
1, 317.90
Total buydown necessary to maintain payment at $ 580.54/month
				  ...................................................................................
$ 7, 387.76
The Agency is obligated to inform the person of the approximate amount
	 of this payment and that he or she must obtain a mortgage of at least the same
	 amount as the computed buydown mortgage amount and for at least the same term
	 in order to receive the full amount of this payment. The displacee is also to
	 be advised of the interest rate and points used to calculate the
	 payment.
REPLACEMENT HOUSING PAYMENT FOR 90-DAY OCCUPANTS. ( 004.02)
DOWNPAYMENT ASSISTANCE PAYMENT. ( 004.02C)
The downpayment assistance provisions in Section 004.02C are intended
	 to limit such assistance to the amount of the computed rental assistance
	 payment for a tenant or an eligible homeowner. It does, however, provide the
	 latitude for Agency discretion in offering downpayment assistance which exceeds
	 the computed rental assistance payment, up to the $5,250 statutory maximum.
	 This does not mean, however, that such Agency discretion may be exercised in a
	 selective or discriminatory fashion. The displacing Agency should develop a
	 policy which affords equal treatment for persons in like circumstances and this
	 policy should be applied uniformly throughout the Agencys programs or projects.
	 It is recommended that displacing Agencies coordinate with each other to reach
	 a consensus on a uniform procedure for the state and/or the local
	 jurisdiction.
For purposes of this section, the term downpayment means the
	 downpayment ordinarily required to obtain conventional loan financing for the
	 decent, safe, and sanitary dwelling actually purchased and occupied. However,
	 if the downpayment actually required of a displaced person for the purchase of
	 the replacement dwelling exceeds the amount ordinarily required, the amount of
	 the downpayment may be the amount which the Agency determines is
	 necessary.
ADDITIONAL RULES GOVERNING REPLACEMENT HOUSING PAYMENTS. (
	 004.03)
DETERMINING COST OF COMPARABLE REPLACEMENT DWELLING. (
	 004.03A)
The procedure for adjusting the asking price of comparable replacement
	 dwellings requires that the Agency provide advisory assistance to the displaced
	 person concerning negotiations so that he or she may enter the market as a
	 knowledgeable buyer. If a displaced person elects to buy one of the selected
	 comparables, but cannot acquire the property for the adjusted price, it is
	 appropriate to increase the replacement housing payment to the actual purchase
	 amount. (
	 004.03A1)
REPLACEMENT HOUSING OF LAST RESORT. ( 004.04)
BASIC RIGHTS OF PERSONS TO BE DISPLACED. (
	 004.04B)
This paragraph affirms the right of a 180-day homeowner-occupant, who
	 is eligible for a replacement housing payment under Section
	 004.01, to a reasonable opportunity to
	 purchase a comparable replacement dwelling.However, it should be read in
	 conjunction with the definition of "owner of a dwelling" in Section
	 001.02P.
The Agency is not required to provide persons owning only a fractional
	 interest in the displacement dwelling a greater level of assistance to purchase
	 a replacement dwelling than the Agency would be required to provide such
	 persons if they owned fee simple title to the displacement dwelling. If such
	 assistance is not sufficient to buy a replacement dwelling, the Agency may
	 provide additional purchase assistance or rental assistance.
METHODS OF PROVIDING COMPARABLE REPLACEMENT HOUSING. (
	 004.04C)
The use of cost effective means of providing comparable replacement
	 housing is implied throughout the section. The term "reasonable cost" is used
	 here to underline the fact that while innovative means to provide housing are
	 encouraged, they should be cost-effective.
Section
	 004.04C2 permits the
	 use of last resort housing, in special cases, which may involve variations from
	 the usual methods of obtaining comparability. However, it should be specially
	 noted that such variation should never result in a lowering of housing
	 standards nor should it ever result in a lower quality of living style for the
	 displaced person. The physical characteristics of the comparable replacement
	 dwelling may be dissimilar to those of the displacement dwelling but they may
	 never be inferior.
One example might be the use of a new mobile home to replace a very
	 substandard conventional dwelling in an area where comparable conventional
	 dwellings are not available.
Another example could be the use of a superior, but smaller decent,
	 safe and sanitary dwelling to replace a large, old substandard dwelling, only a
	 portion of which is being used as living quarters by the occupants and no other
	 large comparable dwellings are available in the area.
MOBILE HOMES (005)
REPLACEMENT HOUSING PAYMENT FOR 180-DAY MOBILE HOMEOWNER-OCCUPANTS. (
	 005.03)
A 180-day owner-occupant who is displaced from a mobile home on a
	 rented site may be eligible for a replacement housing payment for a dwelling
	 computed under Section
	 004.01 and a replacement housing
	 payment for site computed under Section
	 004.02. A 180-day owner-occupant of
	 both the mobile home and the site, who relocates the mobile home, may be
	 eligible for a replacement housing payment under Section
	 004.01 to assist in the purchase of a
	 replacement site or, under Section
	 004.02, to assist in renting a
	 replacement site.