708.3 Grants for the advance acquisition of land.

708.4 Amount of grant.

708.5 Requirements for assistance. 708.6 Repayment of grant.

708.7 Application of other Federal laws. 708.8 Information, application forms, and applications.

AUTHORITY: The provisions of this Part 708 issued under sec. 502, 62 Stat. 1283, as amended, sec. 705 (a), 79 Stat. 492; 12 U.S.C. 1701c, 42 U.S.C. 3105(a).

SOURCE: The provisions of this Part 708 appear at 31 F.R. 432, Jan. 13, 1966, unless otherwise noted.

The purpose of section 704 of the Housing and Urban Development Act of 1965 (79 Stat. 491, 42 U.S.C. 3104) is to encourage and assist the large and small communities throughout the Nation in the timely acquisition of land planned to be utilized in connection with the future construction of public works or facilities by making available Federal grant assistance to assist in financing the acquisition of a fee simple estate or other interest in land.

[31 F.R. 432, Jan. 13, 1966; 31 F.R. 537, Jan. 15, 1966]

(a) "Act" shall mean the Housing and Urban Development Act of 1965 (Public Law 89-117, approved August 10, 1965).

(b) "Local public bodies and agencies" shall mean any public corporate bodies or political subdivisions; public agencies or instrumentalities of one or more States (including public agencies and instrumentalities of one or more municipalities or other political subdivisions of one or more States); Indian tribes; or boards or commissions established under the laws of any State to finance specific capital improvement projects.

(c) "Public works or facilities" shall include the types of public works or facilities enumerated in § 702.6(a) of this chapter.

(d) "Secretary" shall mean the Housing and Home Finance Administrator in the Department of Housing and Urban Development pending appointment of the

Secretary of Housing and Urban Development, and thereafter the Secretary of Housing and Urban Development, or an officer authorized to perform the functions of such Administrator or Secretary.

(e) "State" shall mean the several States, the District of Columbia, the Commonwealth of Puerto Rico, and the territories and possessions of the United States.

§ 708.3

Grants for the advance acquisition of land.

Grants may be made to local public bodies and agencies to assist in financing the acquisition of a fee simple estate or other interest in land planned to be utilized in connection with the future construction of eligible public works or facilities.

§ 708.4 Amount of grant.

The amount of any grant may not exceed the aggregate amount of reasonable interest charges on the loan or other financial obligation incurred by a local public body or agency to finance the acquisition of such land for a period not exceeding the lesser of (a) 5 years from the date of issue of the loan or financial obligation, or (b) the period between the date of issue and the date on which construction of the public work or facility is begun.

§ 708.5 Requirements for assistance.

(a) Grant assistance will be made available only if the public work or facility for which the land is to be utilized

(1) Is planned to be constructed or initiated within a reasonable period of time (not to exceed 5 years after the date of the contract to make a grant);

(2) Is, or will be, consistent with the comprehensively planned development of the area; and

(3) Is, or will be, consistent with a community-wide or area-wide system of such public works or facilities.

(b) Grant assistance will be made available only if the local public body or agency (1) possesses adequate legal authority to finance the acquisition of the land to be utilized for the public work or facility to be constructed, and (2) demonstrates to the Secretary that the public work or facility for which the land is acquired is planned to be constructed or initiated within a reasonable period of time (as required by paragraph (a) of this section).

§ 710.1 Statement of applicable law.

Section 404 (a) of the Housing and Urban Development Act of 1965, 42 U.S.C. 3074(a), provides that financial assistance extended to any applicant under the following programs may include grants for relocation payments: (a) The Public Facility Loans Program under Title II of the Housing Amendments of 1955, as amended, 42 U.S.C. 1491-1497; (b) the Water and Sewer Facilities Grant Program under Title VII of the Housing and Urban Development Act of 1965, 42 U.S.C. 3101-3108; and (c) the Advance Acquisition of Land Program under Title VII of the Housing and Urban Development Act of 1965, 42 U.S.C. 3101-3108. Authority to issue regulations is included in the delegation to the

Assistant Secretary for Metropolitan Development at 31 F.R. 7358, May 20, 1966. § 710.2 Definitions.

For the purpose of the regulations in this part, the following terms shall

mean:

(a) Actual direct loss of property. Actual loss in the value of the property (exclusive of goods or other inventory kept for sale) sustained by the claimant by reason of the disposition or abandonment of the property resulting from the claimant's displacement. A loss resulting from damage to the property while being moved is not included.

(b) Agency. Any public body or private nonprofit corporation authorized to acquire or utilize real property in the course of the Public Facility Loans Program, the Water and Sewer Facilities Grant Program, or the Advance Acquisition of Land Program.

(c) Business concern. A corporation, partnership, individual, or other private entity, including a nonprofit organization, engaged in some type of business (including farming), professional, or institutional activity necessitating fixtures, equipment, stock in trade (including livestock), or other tangible property for the carrying on of the business, profession, or institution.

(d) Claimant. An individual, family, or business concern, as defined in this § 710.2, including any site occupant or owner of the real property, or, in the case of a claim for relocation payment for settlement costs, an owner (or joint owners) of real property.

(e) Family. Two or more persons related by blood, marriage, or adoption, who are living together in a single dwelling unit.

(f) Federal financial assistance contract. A contract between the Federal Government and the Agency for a loan under Title II of the Housing Amendments of 1955, as amended, 42 U.S.C. 1491-1497, or a grant under section 702 or section 704 of the Housing and Urban Development Act of 1965, 42 U.S.C. 3102 or 3104.

(g) HUD. The Secretary of Housing and Urban Development or his delegate. (h) Individual. A person who is not a member of a family. An elderly individual is an individual who is 62 years of age or over at the time of displacement.

(i) Moving expenses—(1) Individuals and families. Costs of packing, storing

(for a period of 1 year or less), carting, and insuring of property and incidental costs of disconnecting and reconnecting household appliances.

(2) Business concerns. Costs of dismantling, crating, storing (for a period of 1 year or less), transporting, insuring, reassembling, reconnecting, and reinstalling of property (including goods or other inventory kept for sale), exclusive of the cost of any additions, improvements, alterations, or other physical changes in or to any structure in connection with effecting such reassembly, reconnection, or reinstallation.

(j) Program. Undertakings and activities of an Agency in connection with a project assisted under the Public Facility Loans Program, the Water and Sewer Facilities Grant Program, or the Advance Acquisition of Land Program.

(k) Program area. The area acquired for or to be used by the Agency as a project site in connection with a project assisted under the Public Facility Loans Program, the Water and Sewer Facilities Grant Program, or the Advance Acquisition of Land Program.

(1) Property. Tangible personal property, excluding fixtures, equipment, and other property which under State or local law are considered real property, but including such items of real property as the claimant may lawfully remove.

(m) Relocation payment. A payment by an Agency:

(1) To an individual or family, for reasonable and necessary moving expenses and any actual direct loss of property (for which reimbursement or compensation is not otherwise made);

(2) To a business concern, for its reasonable and necessary moving expenses and any actual direct loss of property except goodwill or profit (for which reimbursement or compensation is not otherwise made);

(3) To a small business concern, for its displacement (small business displacement payment);

(4) To or on behalf of a family or elderly individual, for relocation adjustment (relocation adjustment payment);

or

(5) To an individual, family, or business concern for settlement costs (for which reimbursement or compensation is not otherwise made).

(n) Settlement costs. (1) Recording fees, transfer taxes, and similar expenses

incidental to conveying real property to the Agency;

(2) Penalty costs for prepayment of any mortgage encumbering such real property; and

(3) The pro rata portion of real property taxes and public service charges allocable to a period subsequent to the date of vesting of title, or the effective date of the acquisition of such real property by the Agency, whichever is earlier.

(0) Small business concern. A business concern (other than a nonprofit organization) which during the base period had:

(1) Average annual net earnings before income taxes of less than $10,000; and

(2) Average annual gross receipts or sales in excess of $1,500 together with average annual net earnings before income taxes in excess of $500, or average annual gross receipts or sales in excess of $2,500.

Earnings for the purpose of this paragraph (0) include salaries, wages, or other compensation received by an owner of the concern or any member of his household related to him. The term "owner" as used in the previous sentence includes the sole proprietor in a sole proprietorship, the principal partners in a partnership, and the principal stockholders of a corporation, as determined by HUD. The term "base period" shall mean the 2 tax years immediately preceding displacement (or, if the business concern is not in business that long, such other period as may be approved by HUD): Provided, That if a business concern does not qualify as a small business concern under this paragraph based upon gross receipts or sales during the 2 tax years immediately preceding displacement and the Agency finds that the concern's business activity during such period was not representative, the base period shall be the 3rd and 4th tax years immediately preceding displacement. § 710.3

Relocation payments by the

Agency.

The Agency shall make relocation payments to or on behalf of eligible claimants in accordance with and to the full extent permitted by the regulations in this part: Provided, That for each Federal financial assistance contract the Agency shall elect whether to make payments for moving expenses in excess of

$25,000 in accordance with § 710.16. Relocation payments made in accordance with the regulations in this part and pursuant to a Federal financial assistance contract are eligible in full for payment from Federal funds except as restricted in § 710.16.

§ 710.4 General eligibility conditions.

A claimant is eligible for a relocation payment for moving expenses, actual direct property loss, and settlement costs if:

(a) The claimant is displaced, as defined in § 710.5, from real property within the program area on or after the date of the filing of an application for Federal financial assistance;

(b) A Federal financial assistance contract is executed under Title II of the Housing Amendments of 1955, as amended, 42 U.S.C. 1491-1497, or section 702 or section 704 of the Housing and Urban Development Act of 1965, 42 U.S.C. 3102 or 3104; and

(c) The acquisition or use of such real property is determined by HUD to be necessary in connection with a project under such program.

§ 710.5 Displacement.

(a) A claimant is deemed displaced and is eligible for a relocation payment for moving expenses and actual direct loss of property if the claimant vacates the real property after the filing of an application for Federal financial assistance and upon the happening of any of the following events:

(1) The Agency acquires title to or use of the property in connection with the program.

(2) The Agency becomes entitled to possession of the real property pursuant to a condemnation proceeding instituted for the purpose of acquiring title; or

(3) A binding contract for the purchase of the real property is entered into by the Agency and the owner of such real property, if in fact the real property is not occupied by another occupant prior to acquisition of title to, or the right of possession to, the real property by the Agency.

(b) A claimant is deemed displaced and is eligible for a relocation payment for settlement costs if he is the owner of real property at the time of transfer of such real property to the Agency: Provided, That in the case of a claim for reimbursement of real estate taxes to the

extent permitted by § 710.2(n) the term "transfer of real property" includes the transfer of the right of possession pursuant to eminent domain proceedings instituted for the purpose of acquiring title.

(c) No relocation payment shall be made to a claimant for a temporary move within the program area.

§ 710.6 Eligibility of outdoor advertising displays.

Expenses incurred with respect to relocation of outdoor advertising displays required to be removed from the program area shall be considered eligible moving expenses notwithstanding that the business concern is not otherwise displaced from the program area.

§ 710.7 Eligibility for small business displacement payment.

A small business concern which satisfies the eligibility conditions of §§ 710.4 and 710.5 is eligible for a small business displacement payment if the concern:

(a) Is not a part of an enterprise having two or more establishments outside the program area;

(b) Has filed with the Internal Revenue Service income tax returns for the 2 tax years immediately preceding its displacement (or, if not in business that long, a tax return for such lesser period as may be approved by HUD); or has furnished such other evidence of earnings as may be approved by HUD; and

(c) Was doing business on the real property on the date of filing by the Agency of an application for assistance under the Public Facility Loans Program, the Water and Sewer Facilities Grant Program, or the Advance Acquisition of Land Program.

§ 710.8 Notice of intention to move.

Except as provided in this § 710.8 no relocation payment for moving expenses or actual direct loss of property and no small business displacement payment shall be made to a business concern unless (a) the Agency has received, at least 30 days but not earlier than 90 days prior to the moving date, written notice from the business concern of its intention to move or dispose of the property, which shall be described generally in the notice, and the date of such intended move or disposition, and (b) the business concern has permitted, at all reasonable times, the inspection by or on behalf of the Agency of such property at the site from