a

person qualifies as à displaced person if, after January 1, 1971, he moves from real property, or moves his personal property from real property, as a result of the acquisition of that real property, in whole or in part, or as the result of the written order of the acquiring agency to vacate real property, for a program or project undertaken by EPA or with EPA financial assistance.

(b) A person who moves from real property, or moves his personal property from real property, as a result of the acquisition of, or the written order of the acquiring agency to vacate, other real property on which such person conducts a business or farm operation (and the acquisition of that other real property is for an EPA or EPA-assisted project) is a displaced person solely for the purposes of sections 202(a), 202(b) and 205 of the act. Those sections provide for entitlement to payment for moving and related expenses and to relocation assistance advisory services.

(c) A person may qualify as a displaced person regardless of:

(1) Whether the property is acquired by EPA or by a State agency receiving assistance from EPA;

(2) The name or status of the person who acquires or holds fee title to the property; or

(3) Whether EPA funds contribute to the payment for the property, if the property must be acquired for an EPA or EPA-assisted program or project.

(d) A person, other than the former owner or tenant, who enters into rental occupancy of real property after its ownership passes to the displacing agency, does not qualify as a displaced person for purposes of this part.

(e) A person who enters into occupancy of real property after the initiation of negotiations for that property or after the issuance of a notice of intent to acquire that property by a given date, does not qualify as a displaced person for purposes of this part.

§ 4.104 Appeals.

(a) EPA administered projects. Any person aggrieved by a determination

made by EPA, in connection with an EPA project or program, concerning the eligibility for, or amount of, any payment to such person under the regulations in this part, may appeal to have his application reviewed by the Administrator. Appeals shall be submitted in writing and addressed to the Administrator, Environmental Protection Agency, Washington, D.C. 20460. No appeal will be considered unless it is received by the Administrator within 90 days of the date of receipt by the person aggrieved of written denial, in whole or in part, of his application for payment. The appeal should include written substantiation. An appeal may be presented by the attorney of the person aggrieved or by the person himself. The Administrator shall promptly issue a decision on the appeal, which decision may either uphold the original determination or allow prompt payment of any amounts which are determined to be due the claimant. The decision will be in writing, and state the facts and law upon which it is based. A copy of the decision will be furnished to the person aggrieved. The decision will constitute the final EPA decision on the application for payment.

(b) EPA-assisted projects. An applicant for a payment under an EPA assisted project who is aggrieved by a displacing agency's determination as to the applicant's eligibility for payment or the amount of the payment may appeal that determination in accordance with the procedures established by the displacing agency. Each displacing agency shall establish procedures for reviewing appeals by aggrieved applicants for payments. The procedures shall insure that:

(1) Each applicant has the opportunity for oral and written presentation and the right to have counsel participate in such presentation;

(2) Each appeal will be decided promptly;

(3) Each appeal decision will include a written statement of the reasons upon which it is based and a copy of such decision will be furnished the appellant;

(4) Prompt payment is made of any amounts which are determined to be due the claimant.

(6) Each appellant applicant has a final appeal to the head of the displacing agency.

§ 4.105 Records.

Each displacing agency shall maintain relocation records in accordance with the requirements of Appendix A to this part and make them available during regular business hours for inspection by the Administrator. The records shall be retained by the agency for at least 3 years after completion of a project.

§ 4.106 Application for benefits.

Application for benefits under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 are to be made within eighteen months from the date on which the displaced person moves from the real property acquired or to be acquired; or the date the displacing agency makes final payment of all costs of that real property, whichever is the later date. The Administrator may extend this period upon a proper showing of good

cause.

§ 4.107 Payment not to be considered income.

Displacing agencies must advise all displaced persons that no payment received under Title II of the Act shall be considered as income for the purposes of the Internal Revenue Code of 1954, or for the purposes of determining eligibility of any person for assistance under the Social Security Act or any other Federal law.

Subpart B-Moving and Related Expenses

§ 4.200 General.

Any displaced person, including one who conducts a business or farm operation, is eligible to receive a payment for moving A displaced expense. person may elect to receive actual reasonable moving and related expenses or a fixed moving expense allowance.

lated expenses.

§4.201-1 Allowable moving expenses.

(a) Transportation of individuals, families, and personal property from the acquired site to the replacement site, not to exceed a distance of 50 miles, except where the displacing agency determines that relocation beyond this 50 mile area is justified.

(b) Packing, unpacking, crating, and uncrating of personal property.

(c) Advertising for packing, crating, and transportation when the displacing agency determines that it is neces

sary.

(d) Storage of personal property for a period generally not to exceed 12 months when the displacing agency determines that storage is necessary in connection with relocation.

(e) Insurance premiums covering loss and damage of personal property while in storage or transit.

(f) Removal, reinstallation, reestablishment, including such modification as deemed necessary by the displacing agency of personal property, and reconnection of utilities for machinery, equipment, appliances, and other items, not acquired as real property. Prior to payment of any expenses for removal and reinstallation of such property, the displaced person shall be required to agree in writing that the property is personal and that the displacing agency is released from any payment for the property.

(g) Property lost, stolen, or damaged (not caused by the fault or negligence of the displaced person, his agency or employees) in the process of moving, where insurance to cover such loss or damage is not available.

(h) Such other actual reasonable expenses determined by the Administrator to be allowable and directly attributable to moving because of displacement.

§4.201-2 Limitations.

(a) When the displaced person accomplishes the move himself, the amount of payment shall not exceed the estimated cost of moving commercially, unless the Administrator determines a greater amount is justified.

(b) When an item of personal property which is used in connection with any business or farm operation is not moved but sold and promptly replaced with a comparable item, reimbursement shall not exceed the replacement cost minus the proceeds received from the sale, or the estimated costs of moving, whichever is less.

(c) When personal property which is used in connection with any business or farm operation to be moved is of low value and high bulk, and the cost of moving would be disproportionate in relation to the value, in the judgment of the head of the displacing agency, the allowable reimbursement for the expense of moving the personal property shall not exceed the difference between the amount which would have been received for such item on liquidation and the cost of replacing the same with a comparable item available on the market. This provision will be applicable in the case of moving of junk yards, stockpiled sand, gravel, minerals, metals, and similar items of personal property.

(d) If the cost of moving or relocating an outdoor advertising display or displays is determined to be equal to or in excess of the in-place value of the display, consideration should be given to acquiring such display or displays as a part of the real property, unless such acquisition is prohibited by State law.

§4.201-3 Nonallowable moving expenses and losses.

No payment will be made under this subpart for:

(a) Additional expenses incurred because of living in a new location.

(b) Cost of moving structures or other improvements in which the displaced person reserves ownership except as otherwise provided by law.

(c) Improvements to the replacement site, except when required by law.

(d) Interest on loans to cover moving expenses.

(e) Loss of good-will.

(f) Loss of profits.

(g) Loss of trained employees.

(h) Personal injury.

(i) Cost of preparing the application for moving and related expenses.

(j) Payment for search cost in connection with locating a replacement dwelling.

(k) Any other expense found by the Administrator not to be a necessary, actual and reasonable cost of moving.

§ 4.201-4 Expenses in searching for replacement business or farm.

(a) Actual reasonable expenses incurred by the displaced person in searching for a replacement business or farm may be allowed as follows: (1) Actual travel costs.

(2) Extra costs for meals and lodging.

(3) Time spent in searching at the rate of the displaced person's salary or earnings, but not to exceed $10 per hour.

(4) In the discretion of the displacing agency, necessary broker, real estate, or other professional fees to locate a replacement business or farm operation.

(b) The total amount which a displaced person may be paid for searching expenses may not exceed $500 unless the Administrator determines that a greater amount is justified based on the circumstances involved.

§4.201-5 Actual direct losses by business or farm operation.

Actual direct losses of tangible personal property as a result of moving or discontinuing a business or farm operation are reimbursable.

(a) When the business or farm operation is discontinued, the displaced person is entitled to the difference between the fair market value of the personal property for continued use at its location prior to displacement and the sale proceeds, or the estimated costs of moving 50 miles, whichever is less.

(b) When the personal property is abandoned, the displaced person is entitled to payment for the fair market value of the property for continued use at its location prior to displacement, or the estimated cost of moving 50 miles, whichever is less.

(c) The cost of removal of the personal property shall not be considered as an offsetting charge against other payments to the displaced person.

(d) The displaced person must make a bona fide effort to sell personal property not moved.

§4.205 Payment of a fixed moving expense allowance.

§ 4.205-1 Occupants of dwellings.

A person displaced from a dwelling can elect in lieu of payment for actual reasonable moving and related expenses:

(a) A dislocation allowance of $200; and

(b) A moving expense allowance, not to exceed $300, based on a moving allowance schedule for the jurisdiction in which displacement occurs.

(1) Moving allowance schedules maintained by the respective State highway departments should be used as the basis for the displacement agency's moving allowance schedules. These schedules should provide for adequacy of reimbursement in every locality.

(2) The Federal Highway Administration will make current schedules available to displacing agencies upon request.

(3) In areas where there are no highway department schedules, the displacing agency shall cooperate with other displacing agencies in the development of a single moving expense schedule for the use of all such agencies.

A displaced person who conducts a bona fide business may elect, in lieu of payment for actual reasonable moving and related expenses a fixed amount equal to the average annual net income of the business computed in accordance with § 4.206 of this part but not less than $2,500 or more than $10,000, if that business:

(a) Substantially contributes to the income of the displaced person;

(b) Cannot, in the opinion of the displacing agency, be relocated without substantial loss of existing patronage taking into consideration:

(1) The type of the business; (2) The nature of its clientele; and (3) The relative importance of the displacement and proposed relocation sites to the business; and

(c) Is not part of a commercial enterprise having at least one other establishment engaged in the same or similar business which is not being acquired by a State agency or the United States.

(d) Is not an outdoor advertising business.

§ 4.205-3 Farm operations.

(a) A displaced person who conducts a farm operation may elect, in lieu of payment for actual reasonable moving and related expenses, a fixed amount equal to the average annual net earnings of the farm operation, computed in accordance with § 4.206 of this part, but not less than $2,500 or more than $10,000.

(b) In the case of a partial acquisition and displacement of a farm operation, the fixed allowance described in paragraph (a) of this section may be paid only if the displacing agency finds that:

(1) The displaced activity was a farm operation before the acquisition of the displacement site; and

(2) The property remaining after acquisition is not an economic unit.

§ 4.205-4 Nonprofit organizations.

(a) A displaced person who conducts a nonprofit organization may elect, in lieu of payment for actual reasonable moving and related expenses, a fixed amount equal to the average annual net income of the nonprofit organization computed in accordance with § 4.206 of this part but not less than $2,500 or more than $10,000.

(b) Where a nonprofit organization is displaced, no payment shall be made under this subpart until after the Administrator determines:

(1) That the nonprofit organization cannot be relocated without a substantial loss of its existing patronage. The term "existing patronage" as used in connection with nonprofit organizations includes the persons, community or clientele served or affected by the activities of the nonprofit organization.

(2) That the nonprofit organization is not part of a commercial enterprise having at least one other establish

ment not being acquired which is engaged in the same or similar activity.

§ 4.206 Computing average annual net income; businesses and farm operations.

(a) The average annual net income of a business or farm operation is its average annual net earnings before Federal, State and local income taxes during the 2 tax years immediately preceding the tax year in which it is displaced. Net earnings include compensation obtained from the business or farm operation by its owner, his spouse, or dependents or in the case of a corporate owner, by the holder of a majority of the common stock, his spouse, or dependents.

(b) For the purpose of determining majority ownership, stock held by an individual, his spouse, and his dependents shall be treated as a unit.

(c) If the 2 tax years immediately preceding displacement are not representative, or if the business or farm operation has not been in operation that long, the displacing agency may, with the concurrence of the Administrator, prescribe some other time period for computing average annual net income.

(d) If a displaced person who conducts a business or farm operation elects to receive a fixed payment under this subpart, he shall provide proof of his earnings from the business or farm operation to the displacing agency. Proof of earnings may be established by income tax returns, certified financial statements, or other similar evidence.

§ 4.210 Application for payment.

of

(a) Application for payment moving and related expenses shall be in writing and filed with the displacing agency no later than 18 months after either the date of acquisition of the dwelling, business or farm by the agency or the date the applicant vacated the dwelling, business or farm, whichever is later.

(b) Applications shall include an itemization of the expenses involved and, except as provided in paragraphs (d) and (e) of this section, shall be supported by receipts and such other evidence as the displacing agency may re

quire. Itemization of moving expenses is not required if the displaced person has elected the payment of a fixed moving expense allowance.

(c) A displaced person may not be paid for his moving expenses in advance of the actual move unless the displacing agency finds that a hardship would otherwise result.

(d) If a displaced person, his mover, and the displacing agency agree by prearrangement in writing, the displaced person may submit an unpaid bill for moving expenses for direct payment.

(e) If the displacing agency contracts with independent movers on a schedule basis and provides a displaced person with a list of movers he may choose from to move his personal property, payment shall be made directly to the mover.

Subpart C-Replacement Housing

§ 4.301 Determinations or assurances required before displacement.

(a) No project which will result in the displacement of any person will be approved until the Administrator has determined, in the case of an EPA project, or has received satisfactory assurances, in the case of an EPA supported project, that:

(1) Fair and reasonable relocation payments will be provided to displaced persons as required by Subparts B and C of this part;

(2) Relocation assistance programs offering the services described in Subpart D of this part will be provided for displaced persons;

(3) The public was or will be adequately informed of the relocation payments and services which will be available under Subparts B, C, and D of this part; and

(4) Comparable replacement dwellings will be available, or provided if necessary, a reasonable period in advance of the time any person is to be displaced.

(b) The displacing agency will not proceed with any phase of a project which will cause the displacement of any person until the Administrator has determined, in the case of an EPA project, or has received satisfactory as