Virginia Administrative Code › Title 24 - TRANSPORTATION AND MOTOR VEHICLES › Agency 30 - DEPARTMENT OF TRANSPORTATION › Chapter 41 - RULES AND REGULATIONS GOVERNING RELOCATION ASSISTANCE › Part VIII - Replacement Housing Payments for Owner-Occupants for 180 Days or More › Section 24VAC30-41-450 - Mixed-use properties

Current through Register Vol. 40, No. 24, July 15, 2024
A.
				  When the acquired dwelling unit is part of a structure which also includes
				  space used for nonresidential purposes, the amount of the purchase supplement
				  offer will be determined by using only that part of the fair market value that
				  is attributable to the residential use of the acquired property. The following
				  calculation shows how this amount is determined:
Example Displacement Property in
							 Residential and Commercial Use
A grocery storeowner lives in a
							 two-bedroom, one-bath apartment above the store. The residential unit has 1,200
							 sq. ft. of habitable living space. The property is appraised at $150,000. The
							 appraiser allocated 40% of total property value to the residence. There are
							 several two-bedroom, one-bath units available for sale. They are: (i) a duplex
							 with two identical units - $125,000; (ii) a single-family house - $75,000;
							 (iii) a condo unit in a sixplex - $50,000.
Most comparable property: a) duplex unit.
Value $62,500
LESS: Displacement dwelling.
Value $60,000
Maximum Purchase Supplement Amount
$2,500
When the replacement property is a structure which includes
					 space used for nonresidential purposes, only that part of the total cost that
					 relates to the value of the owner's living unit will be used when determining
					 the purchase supplement payment.
B. When the replacement property contains
				  buildings other than the residence which are used for nonresidential purposes,
				  the value of these buildings must be carved out of the entire purchase price of
				  the replacement property in order to determine the residential use value. The
				  residential use value will represent the amount paid for replacement housing
				  when determining the purchase supplement payment amount. The following
				  calculation shows how this amount is determined:
Example Displacee Purchases Mixed Use Replacement
							 Property
A family displaced from a single-family house
							 (acquisition value $80,000, purchase supplement $10,000) contracts to purchase
							 an operating chicken farm for $250,000. They will live in the farmhouse, which
							 has an estimated value separate from the farm of $85,000. The displaced family
							 submits a claim for the full $10,000 maximum purchase supplement amount.
The family is eligible to receive $5,000, not $10,000,
							 as a Purchase Supplement Payment
Before processing the claim for payment, the district
							 office must determine the value of the farmhouse on a lot normal for
							 residential use in the area. This will determine the payment ceiling. The part
							 of the purchase price attributable to the farm operation ($165,000) is not to
							 be considered in the claim. This should have been explained to the displaced
							 family members before they search for replacement property.
C.
				  When the acquired property consists of a multi-family structure of which one
				  unit is owner-occupied, the amount of the supplemental offer will be the
				  difference between the value of one unit of a multi-family comparable and the
				  value of the owner occupied residential-use portion of the acquired property.
				  When the replacement property is a multi-family structure, only the value of
				  the owner's living unit can be used to determine the supplemental payment, not
				  the entire purchase price. The purchase supplement amount will be the price of
				  one unit of a multi-family comparable or the price of one unit of a
				  multi-family replacement, whichever is less, minus the residential use portion
				  of the acquired property.
The following calculation shows how this amount is
					 determined:
Example Owner Displaced from Condominium Unit
The acquired dwelling is a condominium unit in a
							 building containing three stores and six residential units. The appraised value
							 of the building is $1 million. The value of the displacee's unit is $120,000.
The purchase supplement is the cost of a comparable
							 condo unit in a similarly configured building having residential and commercial
							 units, less the $120,000 attributed to the displacement unit.
There may not be a condominium unit on the market in a
							 mixed use, six residential unit building. Look for units in buildings having
							 five, four, three, or two units. Use the "most comparable" unit considering the
							 ownership form and configuration of units, as well as other factors.
Statutory Authority
§§ 25-253 and 33.1-12 of the Code of Virginia;
						42 USC § 4601 et seq.