which the displaced person reserve ownership.

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

(d) Interest on loans to cover moving expenses.

(e) Loss of goodwill.

(f) Loss of trained employees.

(g) Personal injury.

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

(i) Modification of personal property to adapt it to the replacement site, except when required by law.

(j) Loss of profits.

(k) Such other items as the Chief of TVA's Land Branch determines should be excluded.

§ 306.7 Payments under sections 202(b) and (c) of Public Law 91-646, in lieu of moving and related expenses.

(a) Dwellings. Any displaced person eligible for payments under § 306.5 of this subpart who is displaced from a dwelling may elect to accept the following payments in lieu of the payments authorized therein:

(1) A dislocation allowance of $200; and

(2) A moving expense allowance, not to exceed $300, based on current moving expense schedules approved by the Federal Highway Administration. A displaced person who elects to receive a payment based on a schedule shall be paid under the schedule used in the jurisdiction in which the displacement occurs, regardless of where he relocates.

(b) Business and farm operations. Any person eligible for payments under § 306.5 who is displaced from his place of business or from his farm operation may elect to accept, in lieu of the payments authorized under § 306.5, a fixed payment in an amount equal to the average annual net earnings of the business or farm operation, except that such payment shall be not less than $2,500 nor more than $10,000. The term "average annual net earnings" means one-half of any net earnings of the business or farm operation, before Federal, State, and local income taxes, during the 2 taxable years immediately preceding the tax

able year in which such business or farm operation moves from the real property acquired, or during such other period as the Chief of TVA's Land Branch determines to be more equitable for establishing such earnings, and includes any compensation paid by the business or farm operation to the owner, his spouse, or his dependents during such period. (If a business or farm operation has no net earnings, or has suffered losses during the period used to compute "average annual net earnings," it may nevertheless receive a $2,500 minimum payment.)

(c) To be eligible for payment under § 306.7(b), a business (other than a non-profit organization) must contribute materially to the income of the displaced owner. Part-time family occupations which do not contribute mnaterially to a displaced person's income are not eligible. Also, no business relocation payment shall be made under § 306.7(b) unless the Chief of TVA's Land Branch is satisfied that the business (including a nonprofit organization) cannot be relocated without a substantial loss of its existing patronage and is not a part of a commercial enterprise having at least one other establishment not being acquired by the United States which is engaged in the same or similar business. In determining whether the business cannot be relocated without a substantial loss of its existing patronage, the following factors will be considered:

(1) The type of business conducted by the displaced person;

(2) The nature of the clientele of the displaced concern; and

(3) The relative importance of the present and proposed location of the displaced business.

(d) Where an entire farm is not acquired, payment under § 306.7(b) will be made only if the Chief of TVA's Land Branch determines that prior to its acquisition the farm met the definition of a farm operation set out in section 101(8) of Public Law 91-646 and that the property remaining after acquisition is no longer an economic farm unit.

§ 306.9 Replacement housing payments to homeowners under section 203(a) of Public Law 91-646.

(a) In addition to payments for moving and related expenses, a displaced person may receive payment not in excess of $15,000 if such person:

(1) Was displaced from a dwelling actually owned ("owned" refers to an interest in the title which allows absolute physical control) and occupied by him for not less than 180 days immeidately prior to the initiation of negotiations for the acquisition of the property on which the dwelling is located, and

(2) Purchases and occupies a replacement dwelling which is decent, safe, and sanitary not later than the end of 1 year from the date he receives payment for the acquired dwelling or the date he moves from said dwelling, whichever is the later date.

(b) Payment under this § 306.9 shall consist of the following:

(1) The amount, if any, which when added to the acquisition cost of the dwelling acquired by TVA, equals the reasonable cost of a comparable replacement dwelling as established by TVA. A comparable replacement dwelling for such purpose shall be deemed to be one which is decent, safe, and sanitary and as functionally equivalent to and substantially the same as the acquired dwelling (but not excluding newly constructed housing) with respect to the number of rooms, area of living space, age, state of repair, neighborhood, and places of employment, and is within the financial means of the displaced family or individual: Provided, That if no dwelling meeting these basic criteria is available on the market, the Chief of TVA's Land Branch, upon a proper finding of the need therefor, may consider available housing exceeding such criteria.

(2) The amount, if any, that will compensate the displaced person for any increased interest cost he may be required to pay for financing the acquisition of such comparable replacement dwelling. Such payment shall be made only if the dwelling acquired by TVA was encumbered by a bona fide mortgage which was a valid lien on such dwelling for not less than 180 days prior to the initiation of negotiations for the acquisition of such dwelling. The amount of such payment shall be based on the present value of the reasonable cost of the additional amount of interest, including points, if any, on that portion of the amount financed which does not exceed the amount of the unpaid debt for its remaining term at the time of acquisition of the dwelling.

(3) Reasonable expenses incurred by the displaced person for evidence of title, recording fees, and other closing costs incident to the purchase of the replacement dwelling: Provided, That no payment shall be made for prepaid expenses or for any fee, cost, charge, or expense which is determined to be a part of the finance charge under the Truth in Lending Act, title 1 of Public Law 90-321, 82 Stat. 146 (15 U.S.C. 1601), and Regulation Z issued pursuant thereto by the Board of Governors of the Federal Reserve System (12 CFR Part 226).

(c) The amount established by § 306.9 (b)(1) as the differential payment for the replacement housing sets the upper limit of such payment. To qualify for the full amount the displaced person must purchase and Occupy a decent, safe, and sanitary dwelling equal to or higher in price than the reasonable cost of a comparable replacement dwelling as established by TVA. If the displaced person on his own voluntarily purchases and occupies a decent, safe, and sanitary dwelling at a price:

(1) Less than the reasonable cost of a comparable replacement dwelling as established by TVA, the differential payment will be reduced to that amount required to pay the difference between the acquisition price of the acquired dwelling and the actual pur

chase price of the replacement dwelling;

(2) Less than the acquisition price of the acquired dwelling, no differential payment shall be made.

[38 FR 3592, Feb. 8, 1973; 38 FR 16999, June 28, 1973]

§ 306.10 Replacement housing payments to tenants and certain others under section 204 of Public Law 91-646.

(a) TVA will make a payment to or for any person displaced from any dwelling who is not eligible to receive a payment under § 306.9 which dwelling was actually and lawfully occupied by such displaced person for not less than 90 days prior to the initiation of negotiations for acquisition of such dwelling. Tenants and other persons occupying the property shall be so advised when negotiations for the property are initiated with the owner thereof. Such payment shall be either:

(1) The amount computed under § 306.11 to enable such displaced person to lease or rent for a period not to exceed 4 years, a decent, safe, and sanitary dwelling of standards adequate to accommodate such person in areas not generally less desirable in regard to public utilities and commercial and public facilities, and reasonably accessible to his place of employment, but not to exceed $4,000; or,

(2) The amount necessary to enable such person to make a downpayment, including incidental expenses described in § 306.9(b)(3), on the purchase of a decent, safe, and sanitary dwelling of standards adequate to accommodate such person in areas not generally less desirable in regard to public utilities and commercial and public facilities, but not to exceed $4,000, except that if such amount exceeds $2,000, such person must equally match any such amount in excess of $2,000 in making the downpayment.

(b) An owner-occupant otherwise eligible for a payment under § 306.9 but who rents instead of purchases a replacement dwelling is eligible for replacement housing as a tenant (see §§ 306.11 and 306.14).

§ 306.11 Computation of

replacement housing payment for displaced tenants-Rental replacement housing payment.

The Chief of TVA's Land Branch may establish the amount necessary to rent a suitable replacement dwelling either by establishing a schedule or by using a comparative method.

(a) Schedule method. The payment should be computed by determining the amount necessary to rent a suitable replacement dwelling for 4 years (the average monthly cost from the schedule) and subtracting from such amount 48 times the average month's rent paid by the displaced tenant in the last 3 months prior to initiation of negotiations if such rent is reasonable or, if not reasonable, 48 times the monthly economic rent for the dwelling unit. For the purpose of these regulations, economic rent is defined as the amount of rent the displaced tenant would have had to pay for a similar dwelling unit in areas not generally less desirable than the dwelling unit to be acquired. The schedule should be based on a current analysis of the market to determine an amount for each type of dwelling required.

(b) Comparative method. The average month's rent may be determined by selecting one or more dwellings representative of the dwelling unit acquired, available on the private market, which meet the definition of a suitable replacement dwelling. The payment should be computed by determining the amount necessary to rent for 4 years a suitable replacement dwelling and subtracting from the amount so determined 48 times the average month's rent paid by the displaced tenant in the last 3 months prior to initiation of negotiations if such rent is reasonable or, if not reasonable, 48 times the monthly economic rent for the dwelling unit established by TVA.

§ 306.12 Disbursement of rental replacement housing payment.

(a) Rental replacement housing payments will be made to or for eligible displacees. Such payments may be made in a lump sum or installments depending on the term and amount of

the lease or rental agreement. Other factors influencing the type or interval of payment are the type of property, the tenant's income, and local custom. Before making rental replacement housing payments determination will be made that the tenant is living in decent, safe, and sanitary housing as defined in § 306.4.

(b) If an onsite inspection is not practical to verify that the claimant is still occupying decent, safe, and sanitary housing, the claimant may make such verification by written certification to the Chief of TVA's Land Branch or his designated representative.

(a) If the tenant elects to purchase a replacement dwelling instead of renting, the payment shall be computed by determining the amount necessary to enable him to make a downpayment and to cover incidental expenses on the purchase of replacement housing.

(b) The downpayment shall be the amount necessary to make a downpayment on a suitable replacement dwelling. Determination of the amount "necessary" for such downpayment shall be based on the amount of downpayment that would be required for a conventional loan. The maximum payment may not exceed $4,000, except that if more than $2,000 is required, the tenant must match any amount in excess of $2,000 by an equal amount in making the downpayment.

(c) The full amount of the downpayment must be applied to the purchase price and such downpayment and incidental costs must be shown on the closing statement.

§ 306.14 Computation of replacement housing payments for certain others.

(a) A displaced owner-occupant eligible under § 306.9 who elects to rent rather than purchase a replacement dwelling may receive a rental replacement housing payment not to exceed $4,000. The payment shall be computed in the same manner as shown in § 306.11 with the following additional criteria:

(1) The present rental rate for the acquired dwelling shall be economic rent as determined by market data;

(2) The payment may not exceed the amount which the displaced owner-occupant would have received had he elected to receive a replacement housing payment under § 306.9; and

(3) The payment shall be deducted from any amount due under § 306.9 in the event the displaced owner-occupant subsequently purchases replacement housing as defined in § 306.9 within the prescribed time limit of 1 year.

(b) A displaced owner-occupant who does not qualify for a replacement housing payment under § 306.9 because of the 180-day occupancy requirement but qualifies under § 306.10 and elects to rent is eligible for a rental replacement housing payment not to exceed $4,000. The payment shall be computed in the same manner as shown in § 306.11, except that the present rental rate for the acquired dwelling shall be economic rent as determined by market data.

(c) A displaced owner-occupant who does not qualify for a replacement housing payment under § 306.9 because of the 180-day occupancy requirement but qualifies under § 306.10 and elects to purchase a replacement dwelling is eligible for a replacement housing down payment pursuant to § 306.10(a)(2), which payment shall be computed in the same manner shown in § 306.13.

§ 306.15 Initiation of negotiations.

as

The term "initiation of negotiations" for real property means the date TVA's offer for the real property to be acquired is presented in writing. When an offer to purchase is presented by mail, the initiation of negotiations will be considered to be the third day after the date of mailing. TVA will advise tenants and other occupants of the date negotiations begin with the owner.

§ 306.16 Relocation assistance advisory services under section 205 of Public Law 91-646.

TVA's Division of Reservoir Properties will establish and maintain a pro

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gram to provide advice and assistance, where needed, to persons displaced as a result of its acquisition of real property. Such program shall provide pertinent and current information regarding the availability, prices, and rentals of proper replacement properties; offer assistance in obtaining and relocating to such properties; and take such steps required to secure the cooperation of other agencies which may be of assistance in order to minimize hardships and assure that displaced persons receive the maximum assistance available to them. To the extent that the services of a central relocation agency are available to render assistance, such services will be used. In conducting this program, the Division of Reservoir Properties will coordinate its activities with the Division of Agricultural Development, the Division of Navigation Development and Regional Studies, and the Land Branch.

§ 306.17 Federally assisted programs.

TVA has no programs affording Federal financial assistance within the meaning of Public Law 91-646. If any such programs should be instituted, appropriate relocation assistance procedures relating thereto will be adopted.

§ 306.18 Uniform real property acquisition policy.

(a) Before negotiations are initiated for acquisition of real property, the Chief of TVA's Land Branch will cause the property to be appraised and establish an amount believed to be just compensation therefor. The appraiser shall afford the owner or his representative an opportunity to accompany him during his inspection of the property.

(b) When negotiations are initiated to acquire real property, the owner will be given a written statement of, and summary of the basis for, the amount estimated as just compensation. The statement will identify the property and the interest therein to be acquired, including buildings and other improvements to be acquired as a part of the real property, the amount of the estimated just compensation, and the basis therefor. If only

a portion of the property is to be acquired, the statement will include a statement of damages and benefits, if any, to the remainder.

§ 306.19 Surrender of possession.

Possession of real property will not be taken until the owner has been paid the agreed purchase price or TVA's estimate of just compensation has been deposited in court in a condemnation proceeding. To the greatest extent practicable, no person will be required to move from property acquired by TVA without at least 90 days' written notice thereof.

§ 306.20 Rent after acquisition.

If TVA rents real property acquired by it to the former owner or former tenant, the amount of rent shall not exceed the fair rental value on a shortterm basis.

§ 306.21 Tenants' rights in improvements.

Tenants of real property being acquired by TVA will be paid just compensation for any improvements owned by them, whether or not they might have a right to remove such improvements under the terms of their tenancy. Such payment will be made only upon the condition that all right, title, and interest of the tenant in such improvements shall be transferred to TVA and upon the further condition that the owner of the real property being acquired shall execute a disclaimer of any interest in said improvements.

§ 306.22 Expense of transfer of title and proration of taxes.

In connection with the acquisition of real property by TVA:

(a) TVA will, to the extent it deems fair and reasonable, bear all expenses incidental to the transfer of title to the United States, including penalty costs for the prepayment of any valid preexisting recorded mortgage;

(b) Real property taxes shall be prorated to relieve the seller from paying taxes which are allocable to a period subsequent to vesting of title in the United States or the date of possession, whichever is earlier.