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Section 24.103(b) Influence of the project on just compensation. As used in this Section, the term “project” is intended to mean an undertaking which is planned, designed, and intended to Operate as a unit.
Because of the public knowledge of the proposed project, property values may be affected. A property owner Should not be penalized because of a decrease in value caused by the proposed project nor reap a windfall at public expense because of increased value Created by the proposed project.
Section 24.103(e) Conflict of interest. The overall objective is to minimize the risk of fraud and mismanagement and to promote public confidence in Federal and federallyassisted land acquisition practices. Recognizing that the costs may outweigh the benefits in Some circumstances, $24.103(e) provides that the Same person may both appraise and negotiate an acquisition, if the value is $2,500 or less. However, it Should be noted that all appraisals must be reviewed in accordance with $24.104. This includes appraisals of real property valued at $2,500, or leSS.
Section 24.104 Review of appraisals
This section recognizes that Agencies differ in the authority delegated to the review appraiser. In Some cases the reviewer establishes the amount of the Offer to the owner and in other Cases the reviewer makes a recOmmendation which is acted on at a higher level. It is also within Agency discretion to decide whether a Second review is needed if the first review appraiser establishes a value different from that in the appraisal report or reportS On a property.
Before acceptance of an appraisal, the review appraiser must determine that the appraiser’s documentation, including valuation data and the analyses of that data, demOnStrates the Soundness of the appraiser’s opinion of value. The qualifications of the review appraiser and the level of explanation of the basis for the reviewer’s recommended or approved value depend On the Complexity of the appraisal problem. For a low value property requiring an uncomplicated valuation process, the reviewer’s approval, endorsing the appraiser's report, may satisfy the requirement for the reviewer’s StateInent.
Section 24.106 Erpenses Incidental to Transfer of Title to the Agency
Generally, the Agency is able to pay Such incidental costs directly and, where feasible, is required to do so. In order to prevent the property owner from making unnecessary Out-of-pocket expenditures and to avoid duplication of expenses, the property owner Should be informed early in the acquisition process of the Agency’s intent to make such arrangements. In addition, it is emphasized
that Such expenses must be reasonable and necessary.
Subpart C–General Relocation Requirements
Section 24.204 Availability of Comparable Replacement Dwelling Before Displacement
Section 24.204 (a) General. 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, $24.204(a) 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.
Section 24.205 Relocation Assistance Advisory Services
Section 24.205(c)(2)(ii)(C) 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 area.S.
Section 24.207 General Requirements—Claims for Relocation Payments
Section 24.207(a) 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 $24.303(c).
Subpart D–Payment for Moving and Related Expenses
Section 24.306 Fired Payment for Moving Expenses—Nonresidential Moves
Section 24.306(d) Nonprofit organizations. Gross revenues may include membership fees, class fees, Cash donations, tithes, receipts from Sales or other forms of fund collection that enables the non-profit organization to operate. Administrative expenses are those for administrative support such as rent, utilities, salaries, advertising and other like items as well as fundraising expenses. Operating expenses for Carrying out the purposes of the non-profit 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.
Section 24.307 Discretionary Utility Relocation Payments
Section 24.307(c) describes the iSSueS which must be agreed to between the displacing agency and the utility facility owner in determining the amount of the relocation payment. To facilitate and aid in reaching Such agreement, the practices in the Federal Highway Administration regulation, 23 CFR part 645, Subpart A, Utility Relocations, AdjustmentS and Reimbursement, should be followed.
Subpart E–Replacement Housing Payments
Section 24.401 Replacement Housing Payment for 180-Day Homeowner-Occupants
Section 24.401(a)(2). 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.
Section 24.401(c) Price differential. The provision in § 24.401(c)(4)(iii) 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.
Section 24.401(d) Increased mortgage interest costs. The provision in §24.401(d) set forth the factors to be used in Computing the payment that will be required to reduce a person’s 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. 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.
Old Mortgage: Remaining Principal Balance ......................... $50,000 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.
Amount to be financed to maintain monthly payments of $458.22 at 10%—$42,010.18
$50,000.00 — 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 annount 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 + by $42,010.18 = .8331; $9,250.13 x .83 = $7,706.57).
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 old mortgage 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.
Section 24.402 Replacement Housing Payment for 90-Day Occupants
The downpayment assistance provisions in $24.402(c) 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 Agency’s 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 annount ordinarily required, the amount of the downpayment may be the amount which the Agency determines is necessary.
Section 24.403 Additional Rules Governing Replacement Housing Payments
Section 24.403(a)(1). 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.
Section 24.404 Replacement Housing of Last Resort
Section 24.404(b) Basic rights of persons to be displaced. This paragraph affirms the right of a 180-day homeowner-occupant, who is eligible for a replacement housing payment under $24.401, 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” at $24.2(p). 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.
Section 24.404(c) Methods of providing comparable replacement housing. The use of cost effective means of providing comparable replacement housing is implied throughout the subpart. 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 24.404(c)(2) 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.
Subpart F-Mobile Homes
Section 24.503 Replacement Housing Payment for 180-Day Mobile Homeowner-Occupants
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 §24.401 and a replacement housing payment for a Site Computed under §24.402. 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 $24.401 to assist in the purchase of a replacement site or, under §24.402, to assist in renting a replacement Site.
[54 FR 8928, Mar. 2, 1989; 54 FR 24712, June 9, 1989]
APPENDIX B TO PART 24—STATISTICAL REPORT FORM
This appendix Sets forth the Statistical information Collected from Agencies in accordance with $24.9(c).
1. Report coverage. This report covers all relocation and real property acquisition activities under a Federal or a federally assisted project or program subject to the provisions of the Uniform Relocation ASSistance and Real Property Acquisition Policies Act of 1970, as amended by Public Law 100–17, 101 Stat. 132.
2. Report period. Activities shall be reported on a Federal fiscal year basis, i.e., October 1 through September 30.
3. Where and when to submit report. Submit an original and two copies of this report to (Name and Address of Federal Agency) as SOOn as possible after September 30, but NOT LATER THAN NOVEMBER. 15. 4. How to report relocation payments. The full amount of a relocation payment shall be reported as if disbursed in the year during which the claim was approved, regardless of whether the payment is to be paid in installment.S. 5. How to report dollar amounts. Round off all money entries in Parts B and C to the nearest dollar. 6. Statutory references. The references in Part B indicate the Section of the Uniform Act that authorizes the COSt.
Part A. Persons displaced
Report in Part A the number of persons (“‘households,” “businesses, including nonprofit organizations,” and “farms”) who were permanently displaced during the fiscal year by project or program activities and moved to their replacement dwelling or location. This includes businesses, nonprofit organizations and farms which, upon displacement, discontinued operations. The Category “households” includes all families and individuals. A family shall be reported as “One” household, not by the number of people in the family unit. Persons Shall be reported a Ccording to their status as “owners” or “tenants” of the property from which displaced.
Part B. Relocation payments and expenses
Columns (A) and (B). Report in Column (A) the number of displacements during the report year. Report in Column (B) the total amount represented by the displacement.S reported in Column (A). Lime 7A is a new line item for reporting the business reestablishment expense payment. Limes 7A and 9, Column (B). Report in Colunn (B) the amount of Costs that were included in the total amount approved on Lines 6 and 8, Column (B). Limes 12 A and B. Report in Column (A) the number of households displaced by project, or
program activities which were provided asSistance in accordance with Section 206(a) of the Uniform Act. Report in Column (B) the total financial assistance under Section 206(a) allocable to the households reported in Column (A). (If a household received finanCial assistance under Section 203 or Section 204 as well as under Section 206(a) of the Uniform Act, report the household as a displacement in Column (A), but in Column (B) report only the amount of financial assistance allocable to Section 206(a). For example, if a tenant-household receives a payment of $7,000 to rent a replacement dwelling, the sum of $5,250 shall be included on Line 10, Column (B), and $1,750 shall be included on Line 12B, Column (B).) Line 13. Report on Line 13 all administrative costs incurred during the report year in connection with providing relocation adviSOry assistance and Services under Section 205 of the Uniform Act. Line 15. Report on Line 15 the total number of relocation appeals filed during the fiscal year by aggrieved persons.
Part C. Real property acquisition subject to Uniform Act
Line 16, Columns (A) and (B). Report in Colunn (A) all parcels acquired during the report year where title or possession was vested in the acquiring agency during the reporting period. (Include parcels acquired without Federal financial assistance, if there was or will be Federal financial assistance in other phases of the project or program.) Report in Column (B) the total of the amounts paid, deposited in court, or otherwise made available to a property owner pursuant to applicable law in order to vest title or possession in the acquiring agency.
Line 17. Report on Line 17 the number of parcels reported on Line 16 that were acquired by condemnation where price disagreement was involved.
maintaining data, and completing/revi
FEDERAL FUND I NG AGENCY
PART A. PERSONS DISPLACED BY ACT I V | T 1 ES SUBJECT TO THE UNI FORM ACT DUR i NG THE FISCAL YEAR
At tachment - Appendix 8
including reviewing instructions, searching data sources, gathering/
hours per response,
I I EM TOTAL (A) OWNERS (8) Y ENANT S(C)