The Code of Federal Regulations of the United States of America

sary (as determined by the LPA) for the site occupant to vacate the real property.

(2) In the case of code enforcement, the commencement of, or notice by the code agency of, code enforcement, with respect to the real property, or the part thereof, occupied by the site occupant which makes it necessary (as determined by the LPA) for the site occupant to vacate the real property.

(3) In the case of either voluntary rehabilitation or code enforcement, an increase, or a notice of increase, in rent for the rent period involved amounting to not less than 25 percent in the case of a business concern and not less than 10 percent in the case of an individual or family: Provided, That in the case of an individual or family the increase shall also result in a rent exceeding the standards established by the LPA for displacees' ability to pay.

(d) Small business displacement payment. A small business concern which satisfies the eligibility conditions of paragraph (a) of this section is eligible for a small business displacement payment if the concern:

(1) Is displaced on or after January 27, 1964;

(2) Is not part of an enterprise having two or more establishments outside the urban renewal area;

(3) Has filed with the Internal Revenue Service income tax returns for the base period; or has furnished such other evidence of earnings as may be approved by HUD; and

(4) Was doing business in the urban renewal area on the date of the approval by the governing body of the locality of an urban renewal plan: Provided, That if the displacement occurs pursuant to a Federal financial assistance contract in accordance with the third sentence of section 102(a) of Title I (Early Land Acquisition Loan), the applicable date shall be the date of the approval by the governing body of the locality of an application for such contract, and if the displacement occurs pursuant to HUD approval of a budget for project execution activities, the applicable date shall be the date of the resolution by the LPA requesting HUD approval of such project execution activities.

door advertising displays required in the determination of the LPA to be removed from the urban renewal area.

(f) Temporary on-site moves. No relocation payment shall be made to a site occupant for a temporary move within the urban renewal area.

[30 F.R. 15145, Dec. 8, 1965, as amended at 31 F.R. 5827, Apr. 15, 1966]

§ 3.103a Basic eligibility conditionsdisplacement from a code enforce

ment area.

(a) Displacement. A site occupant is eligible for a relocation payment for moving expenses, actual direct loss of property, and settlement costs if the displacement is:

(1) From real property within the code enforcement area, on or after the date of execution of a Federal financial assistance contract or the date of HUD approval of a budget for a program of concentrated code enforcement (provided that in the latter case a Federal financial assistance contract is thereafter executed for the area); and

(2) Made necessary by (i) code enforcement activities, or (ii) the acquisition of real property by the code agency or any other public body in connection with a federally assisted program of concentrated code enforcement and public improvements, as further defined in paragraphs (b) and (c) of this section.

(b) Displacement made necessary by code enforcement. The displacement of a site occupant from a code enforcement area is deemed made necessary by code enforcement if the vacation of the real property occurs on or after the commencement of code enforcement, or notice by the code agency that code enforcement will be required, with respect to the real property occupied by the site occupant under either of the following circumstances:

(1) The code enforcement cannot reasonably be undertaken without the vacation of the real property by the site occupant and the code agency so determines in accordance with § 3.104(e) (2);

(2) In the case of a tenant, the owner has increased the rent or has notified the tenant of an increase in rent amounting to not less than 25 percent in the case of a business concern and not less than 10 percent in the case of an individual or family: Provided, That in the case of an individual or family the increase shall also result in a rent ex

ceeding the standards established by the code agency for displacees' ability to pay.

(c) Displacement made necessary by acquisition. The displacement of a site occupant from a code enforcement area is deemed made necessary by acquisition if the vacation of the real property occurs after the code agency or other public body acquiring legal or equitable title or the right to possession has ordered the site occupant to vacate the real property.

(1) Is not part of an enterprise having two or more establishments outside the code enforcement area;

(2) Satisfies the requirements § 3.103 (d) (3) governing evidence

earnings; and

of of

(3) Was doing business in the code enforcement area on the date of the approval by the code agency of an application for a Federal financial assistance contract for the area.

(e) Outdoor advertising display. business concern which is not displaced from a code enforcement area shall be eligible for a relocation payment for moving expenses with respect to its outdoor advertising displays required in the determination of the code agency to be removed from the code enforcement area by the acquisition of real property in connection with a Federally assisted program of concentrated code enforcement and public improvements.

[30 F.R. 15145, Dec. 18, 1965, as amended at 31 F.R. 5827, Apr. 15, 1966]

§ 3.103b Basic eligibility conditionsdisplacement from a demolition

grant area.

(a) Displacement. A site occupant is eligible for a relocation payment for moving expenses and actual direct loss of property if the vacation of the real property within a demolition grant area occurs on or after (1) the date of execution of a Federal financial assistance contract, or the date of HUD approval of an application for a demolition grant (provided that in the latter case a Federal financial assistance contract is thereafter executed for the area); and (2) order by the code agency to vacate and demolish the real property.

(b) Small business displacement payment. A small business concern which

A family or elderly individual who satisfies the eligibility conditions of § 3.103 (a) (displacement from an urban renewal area), § 3.103a (a) (displacement from a code enforcement area), or § 3.103b (a) (displacement from a demolition grant area), is eligible for a relocation adjustment payment if the site occupant:

(a) Is unable to secure a suitable dwelling unit in (1) a low-rent housing project assisted under the United States Housing Act of 1937, as amended, 42 U.S.C. 1401 et seq. (or a State or local program found by HUD to have the same general purposes), or (2) a dwelling unit assisted under section 101 of the Housing and Urban Development Act of 1965 (12 U.S.C. 1701s(a));

(b) Has moved to a decent, safe, and sanitary dwelling; and

§ 3.103d Notice of intention to move.

Except as provided in this § 3.103d, 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 Department 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 Department of such prop

erty at the site from which the business concern is displaced. For the purpose of this § 3.103d, "moving date" shall mean the date on which the first item of such property is intended to be moved or disposed of. The Department may make a relocation payment notwithstanding nonreceipt of such timely notice only if the Department has determined that there was reasonable cause for the failure of the business concern to give such notice, and the Department has adequately verified the facts pertaining to the move or disposition and the requested relocation payment.

(a) Conditions for relocation payment. The Department (or, if the Department is the municipality, the board or commission responsible for carrying out the Federally assisted activities or, if there is no such board or commission, the principal executive officer of the municipality) shall approve a schedule (Form H-6148) of average annual gross rentals for standard housing in the locality for determining the amount of relocation adjustment payments in accordance with § 3.109 (b) (2), any schedule (Form H6142) of fixed payments to be paid in accordance with § 3.105, and any other conditions under which the Department will make relocation payments. The schedules and conditions shall be consistent with the regulations in this subpart and shall be available in written form to site occupants in the relocation office of the Department.

(b) Notice to site occupants. The Department shall furnish all site occupants, who occupy property within an urban renewal area (or the area of the Federally assisted activities) and who are anticipated to be displaced, with a notice or informational statement advising the site occupant of (1) the availability of relocation payments to eligible site occupants, and (2) the office where the conditions under which relocation payments will be made are available for inspection.

(c) Action on claim-finality. The Department is initially responsible for determining the eligibility of a claim for, and the amount of, a relocation payment and shall maintain in its files complete and proper documentation supporting the determination. The determination on each claim shall be made or approved either by the governing body of the De

partment or by the principal executive officer of the Department or his duly authorized designee. The determination by the Department or any redetermination by HUD shall be final and conclusive with respect to the rights of any site occupant, and not subject to redetermination by any court or any other officer. Subject to the requirements of this paragraph (c), the Department may permit a third-party contractor responsible for relocation activities to examine and recommend action on a claim and to disburse funds in payment of a claim which has been approved by the Department.

(d) Prompt payment. A relocation payment shall be made by the Department as promptly as possible after a site occupant's eligibility has been determined in accordance with the regulations in this subpart: Provided, That a relocation adjustment payment shall be made during the first 5 months after the Department has determined the eligibility of the claimant.

(1) No

(e) Certain determinations. claim based upon acquisition of real property by a public body other than the Department shall be approved unless the Department shall have determined that the claimant was displaced by the acquisition or in contemplation thereof. The determination shall be supported by a signed statement from the public body indicating (i) when it acquired or proposes to acquire the property occupied by the claimant, and (ii) whether it compensated or has agreed to compensate the claimant for moving expenses, actual direct loss of property, or settlement costs resulting from the displacement.

(2) No claim based upon code enforcement or voluntary rehabilitation shall be approved unless the Department shall have determined that the claimant was displaced by such activities. The determination shall be supported by a statement by the Department giving the factual basis on which the determination was made.

(f) Department setoff against claim. The Department may set off against the claim of an otherwise eligible site occupant any financial claim the Department may have against the site occupant arising out of the use of the real property.

(g) Approval by HUD-business concerns. No relocation payment for moving expenses or settlement costs, or both, in excess of $10,000 shall be made without approval by HUD.

(h) Reimbursement of relocation payments. Relocation payments made in accordance with the regulations in this subpart and pursuant to a Federal financial assistance contract are reimbursable in full to the Department as a Title I grant.

(i) Accounts and records. Accounts and records shall be maintained as prescribed by HUD and shall be subject to inspection or audit at all reasonable times by HUD. Records pertaining to eligibility of relocation payments, including all claims, receipted bills or other documentation in support of a claim, and records pertaining to action on a claim, shall be retained by the Department for not less than 3 years after the completion of the urban renewal project or the other Federally assisted activities.

[30 F.R. 15145, Dec. 8, 1965, as amended at 31 F.R. 5827, Apr. 15, 1966]

§ 3.105 Fixed relocation payments to individuals and families.

(a) Schedule of fixed payments. A Department intending to pay fixed amounts in lieu of payments for reasonable and necessary moving expenses and actual direct loss of property of eligible individuals and families shall prepare a schedule of the fixed amounts which it proposes to pay. The schedule shall contain a statement indicating that the Department intends to permit eligible individuals and families to claim reimbursement for their actual moving expenses and actual direct loss of property.

(b) Schedule provisions. (1) A proposed schedule of fixed payments to eligible individuals and families owning furniture shall provide for a graduated scale of payments related to the number of all rooms occupied by the claimant except bathrooms, hallways, and closets, which payments shall not exceed the lowest normal charge for carting expenses for the average time required to move personal effects: Provided, That in any event the payments shall not exceed the maximum reimbursment to eligible individuals or families provided in the regulations in this subpart.

(2) Fixed payments to eligible individuals or families not owning furniture shall not exceed: (i) $5 for any individual, (ii) $10 for any family.

(c) Administration of fixed payments. Eligible individuals or families may be paid the amount provided in the schedule of fixed payments approved by HUD upon receipt of a properly completed

claim. A fixed payment shall be in full settlement for the claimant's moving expense and any actual direct loss of property. If the joint occupants of a single dwelling unit at the project site move to two or more locations and consequently submit more than one claim, an eligible claimant for a fixed payment may be paid only his reasonable prorated share (as determined by the Department) of the total fixed payment applicable to such dwelling unit, and the total of fixed payments made to all such claimants moving from such dwelling unit shall not exceed the total fixed payment applicable to such dwelling unit.

§ 3.106 Determining moving expenses of business concern.

(a) Submission of bids prior to moving date. No claim for a relocation payment for moving expenses in excess of $500 shall be allowed for costs incurred by a business concern on or after April 1, 1965, unless the concern has submitted to the Department, at least 15 days prior to the commencement of the move, a bid from three reputable firms covering the moving costs involved. Whenever it is not feasible to obtain three bids for any category of work, a lesser number of bids shall be submitted, together with a written justification by the concern; and no relocation payment shall be allowed in such cases unless the Department has approved the justification. The Department, with HUD concurrence, may waive any requirement of this paragraph (a) for good cause.

(b) Payment not to exceed low bid. Payment to a business concern for moving expenses shall not exceed the amount of the low bid submitted in accordance with paragraph (a) of this section unless the bid requirement has been waived in accordance with paragraph (a) of this section.

§ 3.107 Determining actual direct loss of property.

(a) The amount of actual direct loss of any item of property claimed shall be determined as follows:

(1) The fair market value of the property for continued use at its location prior to the displacement shall be ascertained by the claimant by an appraisal satisfactory to the Department, except as provided in subparagraph (2) of this paragraph.

(2) If the value of the property for which actual direct loss is claimed does

not warrant the expenses of an appraisal then its fair market value for such continued use shall be computed as follows: The original cost of the item to the claimant (exclusive of installation cost), multiplied by the figure obtained by dividing the period of the remaining useful life of the property at the date of removal, by the period of the normal useful life of the property at the date of its acquisition by the claimant.

(3) The property shall be disposed of by a bona fide sale (as determined by the Department) at the highest price offered after reasonable efforts have been made over a reasonable period of time to interest prospective purchasers. A tradein of the property may be considered a bona fide sale, and the trade-in allowance, exclusive of any amount of discount that would be allowed on the price of the property being acquired in the absence of the trade-in, shall be deemed the amount realized upon the sale of the property.

(4) If the amount realized from the sale, after deducting ordinary and reasonable expenses of the sale, is less than the fair market value for such continued use, the difference between the net amount realized and the fair market value is the amount of actual direct loss of the property. Expenses of sale include such items as sale commissions, auctioneer's fees, advertising costs, and similar charges.

(b) If a bona fide sale is not effected because no offer is received for the property, after reasonable efforts have been made over a reasonable period of time to sell it, then its fair market value for continued use, ascertained as provided in this section, is the amount of actual direct loss of the property.

(c) Cost of appraisals: The cost of appraisals to determine actual direct loss of property, if made by or in behalf of the claimant, is not allowable as part of a claim.

§ 3.108 Filing of claims.

(a) Form of claim. To obtain a relocation payment, a site occupant shall file a written claim with the Department on the appropriate HUD forms.

(b) Documentation in support of claim. A claim shall be supported by the following:

(1) If for moving expenses, except in the case of a fixed payment, a receipted bill or other evidence of such expenses. By prearrangement between the Department, the site occupant, and the mover,

confirmed in writing by the Department, the claimant may present an unpaid moving bill to the Department, and the Department may pay the mover directly.

(2) If for actual direct loss of property, written evidence thereof, which may include appraisals, certified prices, copies of bills of sale, receipts, canceled checks, copies of advertisements, offers to sell, auction records, and such other records as may be appropriate to support the claim.

(3) In any other case, such documentation as may be required by the Department, which may include income tax returns, withholding or informational statements, and proof of age.

(c) Time for filing claims. A claim for moving expenses, actual direct loss of property, or a small business displacement payment shall be submitted to the Department within a period of 6 months after the displacement of the claimant. A claim for a relocation adjustment payment shall be submitted within a period of 60 days after the displacement of the claimant. A claim for settlement costs shall be submitted within 6 months after the costs have been incurred.

(1) Displacement prior to January 13, 1965. Notwithstanding the first two sentences of the introductory text of this paragraph (c), a claim for relocation adjustment payment or for a small business displacement payment by a claimant displaced from an urban renewal area on or after January 27, 1964, and prior to January 13, 1965, shall be submitted within a period of 60 days of the last published or other notice by the LPA of the availability of such payments.

(2) Waivers. The time limitations in this paragraph (c) may be waived by the Department for good cause, with HUD concurrence, in the case of a claimant displaced on or after January 27, 1964. § 3.109 Limitations on amount of relocation payments.

(a) Moving expenses and loss of property (1) Maximum amount-individuals or families. The maximum relocation payment that may be made or recognized for moving expenses and actual direct loss of property, for which reimbursement or compensation is not otherwise made, to an individual or family shall not exceed $100 with respect to moving expenses incurred and actual direct loss of property suffered prior to September 23, 1959, and $200 with respect to such expenses incurred and loss

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