certified or registered mail, return receipt requested. Where the initial decision is made by the hearing examiner the applicant or recipient may within 30 days of the mailing of such notice of initial decision file with the responsible Department official his exceptions to the initial decision, with his reasons therefor. In the absence of exceptions, the responsible Department official may on his own motion within 45 days after the initial decision serve on the applicant or recipient a notice that he will review the decision. Upon the filing of such exceptions or of such notice of review the responsible Department official shall review the initial decision and issue his own decision thereon including the reasons therefor. In the absence of either exceptions or a notice of review the initial decision shall constitute the final decision of the responsible Department official.

(b) Decisions on record or review by the responsible Department official. Whenever a record is certified to the responsible Department official for decision or he reviews the decision of a hearing examiner pursuant to paragraph (a) of this section, or whenever the responsible Department official conducts the hearing, the applicant or recipient shall be given reasonable opportunity to file with him briefs or other written statements of its contentions, and a copy of the final decision of the responsible Department official shall be given in writing to the applicant or recipient, and to the complainant, if any, by certified or registered mail, return receipt requested.

(c) Decisions on record where a hearing is waived. Whenever a hearing is waived pursuant to § 1.9(a) a decision shall be made by the responsible Department official on the record and a copy of such decision shall be given in writing to the applicant or recipient, and to the complainant, if any, by certified or registered mail, return receipt requested.

(d) Rulings required. Each decision of a hearing examiner or responsible Department official shall set forth his ruling on each finding, conclusion, or exception presented, and shall identify the requirement or requirements imposed by or pursuant to this Part 1 with which it is found that the applicant or recipient has failed to comply.

(e) Content of orders. The final decision may provide for suspension or termination of, or refusal to grant or

continue Federal financial assistance, in whole or in part, under the program or activity involved, and may contain such terms, conditions, and other provisions as are consistent with and will effectuate the purposes of the Act and this Part 1, including provisions designed to assure that no Federal financial assistance will thereafter be extended under such program or activity to the applicant or recipient determined by such decision to be in default in its performance of an assurance given by it pursuant to this Part 1, or to have otherwise failed to comply with this Part 1, unless and until it corrects its noncompliance and satisfies the responsible Department official that it will fully comply with this Part 1. § 1.11 Judicial review.

Action taken pursuant to section 602 of the Act is subject to judicial review as provided in section 603 of the Act. § 1.12 Effect on other regulations; forms and instructions.

All (a) Effect on other regulations. regulations, orders, or like directions heretofore issued by any officer of the Department which impose requirements designed to prohibit any discrimination against persons on the ground of race, color, or national origin under any program or activity to which this Part 1 applies, and which authorize the suspension or termination of or refusal to grant or to continue Federal financial assistance to any applicant or recipient of such assistance under such program or activity for failure to comply with such requirements, are hereby superseded to the extent that such discrimination is prohibited by this Part 1, except that nothing in this Part 1 shall be deemed to relieve any person of any obligation assumed or imposed under any such superseded regulation, order, instruction, or like direction prior to the effective date of this Part 1. Nothing in this Part 1, however, shall be deemed to supersede any of the following (including future amendments thereof): (1) Executive Orders 10925 and 11114 and regulations issued thereunder, or (2) Executive Order 11063 and regulations issued thereunder, or any other regulations or instructions, insofar as such Order, regulations, or instructions prohibit discrimination on the ground of race, color, or national origin in any program or activity or situation to which

this Part 1 is inapplicable, or prohibit discrimination on any other ground.

(b) Forms and instructions. Each responsible Department official shall issue and promptly make available to interested persons forms and detailed instructions and procedures for effectuating this Part 1 as applied to programs and activities to which this Part 1 applies and for which he is responsible. coordination.

and

(c) Supervision The Secretary may from time to time assign to officials of the Department, or to officials of other departments or agencies of the Government with the consent of such department or agency, responsibilities in connection with the effectuation of the purposes of Title VI of the Act and this Part 1 (other than responsibility for final decision as provided in § 1.10), including the achievement of effective coordination and maximum uniformity within the Department and within the Executive Branch of the Government in the application of Title VI and this Part 1 to similar programs or activities and in similar situations.

PROGRAMS

APPENDIX A

OF THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT TO WHICH THIS PART 1 APPLIES

1. Community Disposition ProgramAtomic Energy Community Act of 1955, §§ 11-13, 21, 31-36, 41-43, 51-57, 61-66, 101– 103, 111-119, 69 Stat. 471 (1955), 42 U.S.C. 2301; E.O. 11105, 28 F.R. 3909.

2. Low-Income Housing Demonstration Grant Program-§ 207, Housing Act of 1961, 75 Stat. 165 (1961), 42 U.S.C. 1436.

3. Mass Transportation Demonstration Grant Program-§ 303, Housing Act of 1961, 75 Stat. 166 (1961), 42 U.S.C. 1453(b).

4. Rehabilitation Direct Loan Program§ 312, Housing Act of 1964, 78 Stat. 790 (1964), 42 U.S.C. 1460nt.

5. Training and Fellowship ProgramsTitle VIII, Housing Act of 1964, 78 Stat. 769 (1964), 12 U.S.C. 1703nt, 1703, 1709, 1710. 6. Urban Mass Transportation ProgramsUrban Mass Transportation Act of 1964, 78 Stat. 302 (1964), 49 U.S.C. 1601nt, 1601.

7. Low-Rent Public Housing ProgramUnited States Housing Act of 1937, 50 Stat. 888 (1937), 42 U.S.C. 1401.

8. Open Space Land Program-Title VII, Housing Act of 1961, 75 Stat. 183 (1961), 42 U.S.C. 1500.

9. Urban Renewal Demonstration Grant Program-§ 314, Housing Act of 1954, 68 Stat. 629 (1954), 42 U.S.C. 1452a.

10. Urban Renewal Program (Slum Clearance and Urban Renewal)-Title I, Housing

Act of 1949, 63 Stat. 414 (1949), 42 U.S.C. 1450.

11. College Housing Loan Program-Title IV, Housing Act of 1950, 64 Stat. 77 (1950), 12 U.S.C. 1749.

12. Community Facilities Administration Liquidation Programs.

13. Program of Advances for Public Works Planning-§ 702, Housing Act of 1954, 68 Stat. 641 (1954), 40 U.S.C. 462.

14. Public Facility Loans Program-Title II, Housing Amendments of 1955, 69 Stat. 642 (1955), 42 U.S.C. 1491.

15. Public Works Acceleration Act Program-Public Works Acceleration Act, 76 Stat. 541 (1962), 42 U.S.C. 2641.

16. Senior Citizens Housing Loan Program-§ 202, Housing Act of 1959, 73 Stat. 667 (1959), 12 U.S.C. 1701q.

Subpart A [Reserved]

Subpart B-Relocation Payments § 3.100

as

Statement of applicable law. Section 305 of the Housing Act of 1956 (70 Stat. T100, 42 U.S.C. 1456) amended Title I of the Housing Act of 1949, amended, by adding a new section 106(f), which provided that Title I urban renewal projects may include the making of relocation payments subject to rules and regulations prescribed by the Secretary of Housing and Urban Development. Section 106(f) was amended by section 304 of the Housing Act of 1957 (71 Stat. 300), section 409 of the Housing Act of 1959 (73 Stat. 673), and section 304 of the Housing Act of 1961 (75 Stat. 167). Section 310 of the Housing Act of 1964 amended Title I by adding a new section 114 (78 Stat. 788, 42 U.S.C. 1465) and incorporated therein, with additional provisions, the former section 106 (f) of Title I, which was repealed (42 U.S.C. 1456 (s)). Section 311(a) of the Housing and Urban Development Act of 1965 amended Title I by adding a new section 117 (79 Stat. 478, 42 U.S.C. 1468) providing for grants for programs of concentrated code enforcement and providing that the provisions of section 114 of Title I shall be applicable to such programs. Section 404 (a) of the Housing and Urban Development Act of 1965 (79 Stat. 486, 42 U.S.C. 3074) provides that the provisions of section 114 of Title I shall be applicable to all programs under Title I; by virtue of such section 404(a), the provisions of section 114 of Title I are applicable to contracts for grants for the demolition of structures which are structurally unsound or unfit for human habitation. Authority to issue regulations is included in the delegation to the Urban Renewal Commissioner and Regional Administrators, as amended, republished at 25 F.R. 9874, October 14, 1960, as amended. Such delegation of authority is continued in full force and effect by section 9(c) of the Department of Housing and Urban Development Act (79 Stat. 671, 5 U.S.C. 624 note). § 3.101

Definitions.

For the purpose of the regulations in this subpart, 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 site occupant by reason of the disposition or abandonment of the property resulting from the site occupant's displacement. A loss resulting from damage to the property while being moved is not included.

(b) Department. (1) In an urban renewal area, the LPA, or (2) in a code enforcement area or demolition grant area, the code agency.

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

(d) Code agency. A city, other municipality, or county authorized to engage in code enforcement activities in the locality.

(e) Code enforcement. Structural or other substantial repairs to, or alterations of, any building or other improvement on land, the demolition of any building or improvement, or a reduction in the number of occupants of, or any other change in the use of, any parcel of real property, pursuant to the requirements of, or to comply with a notice by a municipality of enforcement of, a zoning, building, or other municipal code or ordinance.

(f) Code enforcement area. An area which HUD has approved under section 117 of Title I for a program of concentrated code enforcement and public improvements.

(g) Demolition grant area. An area which HUD has approved under section 116 of Title I for a program of demolition of structures which are structurally unsound or unfit for human habitation.

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

(i) Federal financial assistance contract. (1) A contract for a loan, a grant, or a loan and grant, between the Federal Government and the LPA for an urban renewal project, executed on or after August 7, 1956; or

(2) A contract for a grant for a program of concentrated code enforcement and public improvements between the Federal Government and the code agency; or

(3) A contract for a grant for the demolition of unsafe structures between the Federal Government and the code agency;

whichever is pertinent in the context.

(j) HUD. (1) Prior to November 9, 1965, the Housing and Home Finance Administrator; or (2) on and after November 9, 1965, 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 (3) an employee duly authorized to perform the functions of such Administrator or Secretary.

(k) Individual. A person who is not a member of a family. An elderly individual is an individual 62 years of age or over at the time of displacement.

(1) LPA. A Local Public Agency authorized to undertake an urban renewal project being assisted under Title I.

(m) 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.

(n) 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 site occupant may lawfully re

move.

(0) Public body. A State, county, municipality, or other political subdivision, or an authority or agency which is a public legal entity.

(p) 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).

(q) 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 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.

(r) Site occupant. A family, individual, or business concern, as defined above. (s) 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) In the case of displacements prior to June 15, 1966, average annual gross receipts or sales in excess of $1,500; or in the case of displacements on and after June 15, 1966, 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.

an

Earnings for the purpose of this paragraph (s) include salaries, wages, or other compensation received by 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.

(t) Title I. Title I of the Housing Act of 1949, as amended (42 U.S.C. 1450 et seq.).

(u) Urban renewal area. An area which HUD has approved for an urban renewal project.

(v) Urban renewal plan. A duly approved plan, as it exists from time to time, for an urban renewal project.

(w) Urban renewal project. Undertakings and activities of an LPA in an urban renewal area for the elimination and prevention of the development or spread of slums or blight as defined in Title I.

Struc

(x) Voluntary rehabilitation. tural or other substantial repairs to, or alterations of, any building or other improvement on land within an urban renewal area, undertaken by an owner of any interest in such real property, in order to conform to the property rehabilitation standards set forth in the urban renewal plan.

(y) Base period. 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 paragraph (s) (ii) of this section based upon the 2 tax years immediately preceding displacement and the Agency finds that its business activity during such period was not representative, the base period shall be the third and fourth tax years immediately preceding displacement. [30 F.R. 15145, Dec. 8, 1965, as amended at 31 F.R. 5826, Apr. 15, 1966]

§ 3.102 Relocation payments by the Department.

The Department shall make relocation payments to or on behalf of eligible site occupants in accordance with and to the full extent permitted by the regulations in this subpart: Provided, That for each Federal financial assistance contract the Department may elect whether to make payments for moving expenses in excess of $25,000 in accordance with § 3.109 (a)

(1) From real property within the urban renewal area, on or after the date of execution of the pertinent Federal financial assistance contract, or the date of HUD approval of a budget for project execution activities resulting in the displacement (provided that in the latter case a Federal financial assistance contract for such contemplated project is thereafter executed); and

(2) Made necessary by (i) the acquisition of such real property by the LPA, or any other public body, or (ii) code enforcement activities undertaken in connection with the urban renewal project, or (iii) a program of voluntary rehabilitation of buildings or other improvements in accordance with the urban renewal plan, as further defined in paragraphs (b) and (c) of this section.

(b) Displacement made necessary by acquisition. A site occupant of the property on the date of execution of a Federal financial assistance contract (or HUD concurrence, prior to its approval of an Application for Loan and Grant, in the commencement of a project execution activity) which contemplates acquisition of the property, regardless of when or if such acquisition takes place, and a site occupant of the property at the time of its acquisition may be deemed displaced by the acquisition upon vacating the property. For this purpose, acquisition means the obtaining by the LPA or other public body of title to, or the right to possession of, the real property. This paragraph (b) shall apply to a site occupant displaced on or after January 27, 1964, but shall not affect adversely, in the case of a site occupant displaced prior to January 13, 1965, eligibility established in accordance with regulations in effect at the time of the site occupant's displacement.

(c) Displacement made necessary by code enforcement or voluntary rehabilitation. The vacating by the site occupant of the real property after the happening of any of the following events shall be deemed to be a displacement from the urban renewal area made necessary by code enforcement or voluntary rehabilitation, as the case may be:

(1) In the case of voluntary rehabilitation, the commencement of, or notice by the owner of the real property of the commencement of, voluntary rehabilitation of the building or other improvement, or the part thereof, occupied by the site occupant which makes it neces