Uniform Relocation Assistance and Real Property Acquisition for Federal and Federally-Assisted Programs

DEPARTMENT OF TRANSPORTATION

Office of the Secretary

49 CFR Part 24

[FHWA Docket No. FHWA-2003-14747]

RIN 2125-AE97

Uniform Relocation Assistance and Real Property Acquisition for Federal and Federally-Assisted Programs

AGENCY:

Federal Highway Administration (FHWA), DOT.

ACTION:

Notice of proposed rulemaking (NPRM), request for comments, and notice of public meetings.

SUMMARY:

The FHWA is proposing to amend several sections of the regulations that set forth governmentwide requirements for implementing the Uniform Relocation Assistance and Real Property Acquisition Policies Act (Uniform Act.) These proposed changes would clarify present requirements, meet modern needs and improve the service to individuals and businesses affected by Federal or federally-assisted projects while at the same time reducing the burdens of government regulations. The regulation has not been fully reviewed or updated since it was issued in 1989. The proposed amendments to the Uniform Act regulation would affect the land acquisition and displacement activities of 18 Federal Agencies including the new Department of Homeland Security. This document also provides notice of public meetings on the proposed changes to the regulation.

DATES:

The public meetings will be held on January 15, 2004, from 10 a.m. to 2 p.m., Washington, DC; January 22, 2004, from 10 a.m. to 2 p.m., Lakewood, CO; and January 28, 2004, from 10 a.m. to 2 p.m., Atlanta, GA.

Comments in response to this NPRM must be received on or before February 17, 2004.

ADDRESSES:

The January 15, 2004 meeting will be held in Washington, DC, United States Department of Transportation, 400 7th Street, SW., Room 8236. The January 22, 2004 meeting will be held in Lakewood, CO, Zang Building, Conference Room 360, 555 Zang Street. The January 28, 2004 meeting will be held in Atlanta, GA, Atlanta Federal Center, Conference Room B, 61 Forsyth Street, SW., Atlanta, Georgia. Each meeting will be scheduled from 10 a.m. to 2 p.m.

Mail or hand deliver comments to the docket number that appears in the heading of this document to the U.S. Department of Transportation, Dockets Management Facility, Room PL-401, 400 Seventh Street, SW., Washington, DC 20590, or submit electronically at

http://dmses.dot.gov/submit.

All comments received will be available for examination and copying at the above address 9 a.m. to 5 p.m., e.s.t., Monday through Friday, except Federal holidays. Those desiring notification of receipt of comments must include a pre-addressed, stamped envelope or post card or you may print the acknowledgement page that appears after submitting comments electronically.

Anyone is able to search the electronic form of all comments received into any of our dockets by the name of the individual submitting the comment (or signing the comment, if submitted on behalf of an association, business, labor union, etc.). You may review DOT's complete Privacy Act statement in the

Federal Register

published on April 11, 2002 (Volume 65, Number 70, Page 19477-78) or you may visit

http://dms.dot.gov.

FOR FURTHER INFORMATION CONTACT:

Ronald E. Fannin, Office of Real Estate Services, HEPR, (202) 366-2042; Reginald K. Bessmer, Office of Real Estate Services, HEPR, (202) 366-2037 or Reid Alsop, Office of the Chief Counsel, HCC-30, (202) 366-1371, Federal Highway Administration, 400 Seventh Street, SW., Washington, DC 20590. Office hours are from 7:45 a.m. to 4:15 p.m., e.s.t., Monday through Friday, except Federal holidays.

SUPPLEMENTARY INFORMATION:

Electronic Access and Filing

You may submit or retrieve comments online through the Document Management System (DMS) at:

http://dmses.dot.gov/submit.

Acceptable formats include: MS Word (versions 95 to 97), MS Word for Mac (versions 6 to 8), Rich Text File (RTF), American Standard Code Information Interchange (ASCII)(TXT), Portable Document Format (PDF), and WordPerfect (versions 7 to 8.) The DMS is available 24 hours each day, 365 days each year. Electronic submission and retrieval help and guidelines are available under the help section of the web site.

An electronic copy of this document may be downloaded by using a modem and suitable communications software from the Government Printing Office's Electronic Bulletin Board Service at (202) 512-1661. Internet users may also reach the Federal Register's home page at:

http://www.archives.gov

and the Government Printing Office's database at:

http://www.access.gpo.gov/nara.

Background

Reasons for This Proposal

Title 49 CFR part 24 has not been comprehensively revised or updated since its initial publication in 1989. We believe there is some confusion regarding a number of existing requirements. There could be improvement in achieving the goal of national program uniformity; and there are inadequacies in meeting contemporary needs. We also believe we could improve the service to individuals and businesses affected by Federal and federally-assisted projects while reducing administrative burdens.

History

Relevant Legislation

Title 49 CFR part 24 implements the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, 42 U.S.C. 4601

et seq.

, (“the Uniform Act”).

Current Regulations

As originally enacted, the Uniform Act authorized “the head of each Federal Agency” to establish regulations and procedures for implementing the Uniform Act. Inevitably, this led to significant differences in Agencies implementing regulations. In a March 8, 1978, Report to Congress (GAO Report No. GGD-78-6, “Changes Needed in the Relocation Act to Achieve More Uniform Treatment of Persons Displaced by Federal Programs, B-148044 (1978)),”

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the Comptroller General found that as a result of these differences the Federal government was not providing uniform treatment to people displaced from their homes and businesses by Federal or federally-assisted programs. Those differences among Federal implementing regulations also imposed significant administrative burdens on State and local governments. In 1981, for the Vice President's Presidential Task Force on Regulatory Relief, State and local governments identified the Uniform Act as a good candidate for State and local regulatory relief.

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A copy of this report, Changes Needed in the Relocation Act to Achieve More Uniform Treatment of Persons Displaced by Federal Programs, is available in the docket.

Therefore, in May 1982, the Office of Management and Budget (OMB) formed a Uniform Act Interagency Regulatory Review Working Group to develop uniform regulations to be implemented by each Agency covered by the Uniform Act. A Presidential Memorandum, dated February 27, 1985, was published in the

Federal Register

on March 5, 1985 (50

FR 8953), naming the U.S. Department of Transportation (USDOT) as the Agency with lead responsibility for the Uniform Act. The Secretary of Transportation (hereafter Secretary) delegated this responsibility to the Federal Highway Administrator.

On March 5, 1985 (50 FR 8955), the USDOT published a model Uniform Act regulation, which, in accordance with the President's Memorandum of February 27, 1985, served as the basis for a proposed Uniform Act “common rule” to be issued by the 16 other affected Agencies. The proposed common rule was issued for comment by those 16 Agencies on May 28, 1985 (50 FR 21712.) After consideration of comments, on February 27, 1986, the common rule was adopted by each of the affected Federal Agencies and the former disparate relocation regulations of those Agencies were removed. This common rulemaking effort by the Federal Agencies that administered both direct Federal programs and projects, and federally-assisted programs and projects undertaken by State or local Agencies, achieved regulatory consistency among the separate Federal Agencies subject to the Uniform Act.

This common rulemaking effort presaged several of the statutory changes to the Uniform Act that were made by the Uniform Relocation Act Amendments of 1987 (Title IV, Pub. L. 100-17, 101 Stat. 246) (“1987 Amendments”). In the administrative area, for example, to further ensure uniformity, the amendments specifically designated the USDOT as Lead Agency and required it, in coordination with other Federal Agencies, to issue a governmentwide rule, establish procedures and make interpretations to implement provisions of the Uniform Act. In the substantive area, the common rulemaking effort granted greater flexibility and discretion to State and local Agencies, a theme reiterated in the 1987 Amendments.

Implementation of the 1987 Amendments to the Uniform Act

On May 19, 1987 (52 FR 18768), the FHWA issued a notice proposing significant changes to the common rule as a result of the 1987 amendments to the Uniform Act. On December 1, 1987 (52 FR 45667), the FHWA issued a Notice of Regulatory Intent giving further notice of the specific regulatory actions that it and the other affected Federal Agencies would take to implement the 1987 Amendments.

On December 17, 1987 (52 FR 47994), the FHWA issued an interim final rule, as 49 CFR part 24, that revised the provisions of the common rule to include those provisions of the 1987 amendments to the Uniform Act (primarily increases in the dollar amounts of specific relocation assistance) that did not allow for administrative discretion or interpretation, and for which a period of public notices and comment would have been impractical. This interim final rule was promulgated in order to allow those Federal, State and local Agencies that were willing and able to provide the increased dollar amounts for specific relocation assistance, provided by the 1987 amendments, to do so expeditiously. On the same day at 52 FR 48015, 17 Federal Departments and Agencies that administer the Uniform Act published interim final rules rescinding the common rule from each of their regulations and adopting in its place a cross-reference to the single interim final rule published by the FHWA as 49 CFR part 24. The effective date for these Agency rescissions and cross-references varied. However, all such actions took effect on or before April 2, 1989, the date the 1987 Amendments became mandatory. The Department of Housing and Urban Development (HUD), was unable to join the other Federal Agencies in publishing an interim final rescission and cross referencing action on December 17, 1987, because of its need to first satisfy certain Congressional review obligations. HUD subsequently published such an interim rule on February 19, 1988 (53 FR 4964).

The FHWA issued an NPRM on July 21, 1988, at 53 FR 27598, proposing to fully implement the statutory amendments to the Uniform Act and to replace the interim final rule. On March 2, 1989 (54 FR 8928), the FHWA issued the final rule, which implemented all of the provisions of the 1987 Amendments to the Uniform Act, and replaced the interim final rule. This was the final step in the development of a single common rule for implementing the Uniform Act.

The Uniform Act and the common rule govern the relocation and land acquisition programs of all Federal departments and Agencies. Those departments and Agencies that, for convenience, provide a cross reference to this part, and the location of those cross-references, are listed below:

Department of Agriculture

7 CFR Part 21

Department of Commerce

15 CFR Part 11

Department of Defense

32 CFR Part 259

Department of Education

34 CFR Part 15

Department of Energy

10 CFR Part 1039

Environmental Protection Agency

40 CFR Part 4

Federal Emergency Management Agency

44 CFR Part 25

General Services Administration

41 CFR Part 105-51

Department of Health and Human Services

45 CFR Part 15

Department of Housing and Urban Development

24 CFR Part 42

Department of Justice

41 CFR Part 128-18

Department of Labor

29 CFR Part 12

National Aeronautics and Space Administration

14 CFR Part 1208

Tennessee Valley Authority

18 CFR Part 1306

Veterans Administration

38 CFR Part 25

The United States Postal Service has indicated that it will comply voluntarily with the Uniform Act, although its current regulations (39 CFR part 777) differ slightly from these proposed regulations.

However, because the Uniform Act applies to all acquisitions of real property or displacements of persons resulting from Federal or federally-assisted programs or projects, the Act's application is not affected by the absence of a cross reference to 49 CFR part 24 in a department's or Agency's regulations. Further, Federal or federally-assisted activities involving land acquisition or displacement, undertaken by a newly constituted Federal department or Agency, such as, for example, the new Department of Homeland Security, would be covered by the Act.

1993 Amendments to the Governmentwide Regulations

On January 28, 1992, the President issued a Memorandum for Certain Department and Agency Heads entitled “Reducing the Burden of Government Regulation” which called upon Departments and Agencies to review their existing regulations in order to determine whether changes should be made to promote economic growth, create jobs, or eliminate unnecessary costs or other burdens on the economy.

The FHWA, as a result of its review of the Uniform Act common rule, identified several amendments that it believed would enhance the relocation assistance provided to displaced businesses, thus increasing their chances of a successful relocation. Additionally, we identified changes that

would reduce the regulatory burden imposed on such businesses as well as on State and local governments implementing the regulation. Therefore, on July 27, 1992 (57 FR 33164), we issued a notice of proposed rulemaking (NPRM) proposing these changes to the common rule and published the final rule on April 30, 1993 (58 FR 26072).

1999 Amendments to the Governmentwide Regulation

Pub. L. 105-117, 111 Stat. 2384 (November 21, 1997) amended the Uniform Act to provide that an alien not lawfully present in the United States shall not be eligible to receive relocation payments or any other assistance provided under the Uniform Act, unless such ineligibility would result in exceptional and extremely unusual hardship to the alien's spouse, parent, or child, and such spouse, parent, or child is a citizen or an alien admitted for permanent residence. As a result of these changes, the FHWA proposed to amend the common rule to reflect the prohibitions on payments to aliens not lawfully present in the United States. After publishing an NPRM on June 12, 1998 (63 FR 32175), the FHWA published a final rule implementing these changes on February 12, 1999 (64 FR 7127).

FHWA Actions To Update the Regulations

Following a series of requests from other Federal Agencies, States, and local public agencies, concerning the need for updating the Uniform Act and Title 49, CFR Part 24, the FHWA initiated a comprehensive review of 49 CFR part 24 by hosting an all Federal Agency briefing and listening session at the Uniform Act 30th Anniversary Symposium in Mesa, Arizona, in November of 2001. Seventy-five individuals representing 14 Federal Agencies, provided specific comments and suggestions. We compiled the comments and in March of 2002 we formed a Federal Interagency Task Force (Task Force) to review all comments received from both the private and public sectors and to begin developing proposed changes to the common rule. All 18 Federal Agencies whose programs are affected by the Uniform Act were asked to provide a representative to be a member of the Task Force. Next, the FHWA published a notice on May 14, 2002 (67 FR 34514), announcing 5 nationwide public listening sessions in June and July 2002 to gather broader input.

Following these sessions, the Task Force once again evaluated each comment. Based on the comments received, the FHWA determined there was a need to update the regulation. The Task Force then began to identify specific provisions of the regulation that should be updated. The Task Force drafted proposed regulatory language, and on November 7, 2002, the FHWA hosted an All-Federal Agencies' meeting to present and discuss the draft language to each of the Agencies affected by this rule. On December 5, 2002, each Agency was given the draft language and asked to provide its specific feedback to the FHWA. This feedback helped the FHWA formulate the proposed changes in this NPRM.

Section-by-Section Discussion of Proposed Changes

Descriptions of the regulatory changes proposed in this part are set forth below. All members of the public who are affected by relocation or land acquisition activities undertaken or funded by Federal departments and Agencies are encouraged to comment on this NPRM. Comments from interested State and local governments are particularly requested. We have made several minor grammar changes such as adding or deleting commas and shortening sentences for clarity that will not change the meaning or intent. These minor changes are not addressed in the Section-by-Section discussion.

Subpart A—General

Section 24.2 Definitions

We propose to add a subsection listing acronyms and to include a numbering system to better identify definitions. This would provide users a list of the most commonly used acronyms in the regulation. These acronyms have become commonplace in conversation and correspondence in the land acquisition and displacement activities of the 18 Federal Agencies. Also, currently, there are 35 complex and lengthy definitions listed in alphabetical order. Without a clear and simple way of referring to definition provisions it is difficult to communicate with affected parties, which complicates both effective Agency administration and public understanding of applicable provisions. Since this rule applies to the programs of approximately 18 Federal Agencies, it is important that they all write and talk with the same understanding. To include a numbering system for the definitions was one of the most requested proposals received during the comment period from both the private and public domain.

Section 24.2(a)(6)(ii) Comparable Replacement Dwelling

We propose to remove the phrase “style of living” from paragraph (2) of the definition of comparable replacement dwelling.

The phrase “style of living” has sometimes been misused and has proven to be confusing. Occasionally, it has been used out of context and interpreted to require identical unique features found in acquired dwellings such as, cherry cabinets, gold fixtures, and other specialized items to be in comparable replacement dwellings. In such cases, the standard for replacement housing has been raised to a level above “comparable.” This interpretation can make it nearly impossible to find appropriate replacement housing and could result in replacement housing payments greater than those intended by Congress. As noted in the conference report accompanying the 1987 amendments, “The Conferees recognize that strict and absolute adherence to an exhaustive, detailed, feature-by-feature comparison can result in rigidities. These can constitute a substantial economic burden and can lead to excessive cost if the law requires, or is interpreted to require, the replacement dwelling to possess every feature of the acquired dwelling as an absolute minimum.” H.R. Conf. Rep. No. 100-27, at 247 (1987).

The Congress realized the difficulty in finding comparable replacement dwellings and intended there to be some flexibility in the definition. Removing the phrase “style of living” will not erode any protections provided to the displaced person. Other criteria under the definition of comparability would adequately cover the factors covered by “style of living.”

Section 24.2(a)(6)(vii) Comparable Replacement Dwelling—Currently Available

We propose to revise section 24.2(a)(6)(vii) by deleting the last sentence and moving it to a new section, 24.2(a)(6)(ix). This new section would also provide that, when a person that is displaced from government subsidized housing accepts an offer of government housing assistance at the replacement dwelling, any requirements of the government housing program relating to the number of rooms or living space of the replacement dwelling would apply.

Section 24.2(a)(6)(viii) Comparable Replacement Dwelling—Within the Financial Means of the Displaced Person

We propose to consolidate the definition of comparable replacement

dwelling into a single paragraph, proposed as § 24.2(a)(6)(viii). This consolidation would define the purchase price or amount of rent that is considered to be within the displaced person's financial means for both a homeowner and a residential tenant. The consolidation would reduce verbiage, without any change in substance.

Section 24.2(a)(8)(ii) Decent, Safe, and Sanitary Dwelling

We propose to add a requirement to the decent, safe, and sanitary dwelling definition to reflect the protections provided by Public Law 102-550, Residential Lead-Based Paint Hazard Reduction Act of 1992. Lead based paint hazard levels established by the U.S. Environmental Protection Agency in accordance with Public Law 102-550 are intended to protect families and children under the age of six from ingesting paint dust or chips while occupying replacement housing. HUD's Lead Safe Housing Rule (24 CFR 35, subparts B-R), which implements that law for federally-owned and assisted housing, provides the strategy for protecting occupants during temporary relocation. The replacement dwelling unit must not have deteriorated paint (or deteriorated lead-based paint if paint testing is conducted) or dust-lead hazards. A unit built on or after January 1, 1978 meets the requirement. The lead safety provision does not apply to displacement of persons who are either elderly or disabled (unless a child under 6 years will reside or be expected to reside in the unit), nor if the replacement dwelling unit is a zero-bedroom dwelling. This proposed change would include this same standard in § 24.2(a)(8)(ii).

Section 24.2(a)(8)(v) Decent, Safe, and Sanitary Dwelling—Local Housing Codes

We propose to amend this definition to require the Agencies to follow the local housing code provision that addresses the maximum number of persons permitted to occupy a room used for sleeping purposes. In the absence of a local housing code requirement, the written policy of the Agency would govern. Additionally, Agencies must also follow any housing code provision which addresses the minimum amount of square feet for each person occupying a dwelling unit or portion thereof. This would make it easier to determine the number of bedrooms required for a replacement dwelling unit.

Similarly, we propose that the local housing code or, if no such code provision exists, the written policy of the Agency, would determine the minimum age of children of the opposite gender which must occupy separate rooms used for sleeping purposes. In the absence of a local housing code or a written policy by the Agency, the minimum standards established for a decent, safe and sanitary dwelling in § 24.2(a)(8) are to be applied.

Section 24.2(a)(9)(ii)(D) Persons Not Displaced

We proposed to amend this section in appendix A to provide that temporary relocation assistance to a person required to move from their dwelling, business, farm, or nonprofit organization are limited to a one year period. Such persons remaining in a temporary location for a period exceeding one year must be offered all permanent relocation assistance.

Section 24.2(a)(11) Dwelling Site

We propose to add a definition of the term “dwelling site.” The dwelling site represents the area, and specifically the size of the land area, on which a dwelling is located. The “dwelling site,” as defined, is a typical lot for similar dwellings in the neighborhood where the dwelling to be acquired is located. This definition would help ensure more accurate computations of replacement housing payments when a dwelling is located on a larger than normal site or when mixed-use or multi-family properties are involved, and reflects current practice.

Section 24.2(a)(12) Eviction for Cause

At the request of the HUD and with concurrence by the Task Force, we propose to simplify the eviction for cause provision in § 24.206 by adding a definition of eviction for cause to § 24.2(a)(12). The proposed definition includes some of the provisions that are currently included in § 24.206. Eviction is a legal process, not an administrative procedure, and therefore, the proposed definition would retain the current link to applicable State and local law.

Section 24.2(a)(15) Household Income

At the request of Federal, State, and local public Agencies having the responsibility of administering the Uniform Act, we propose to add, for clarity, a new definition, “household income.” This definition would include examples of what does and does not constitute a person's gross monthly household income for purposes of establishing a base monthly income under proposed § 24.402(b)(2)(ii).

Household income would generally include average monthly income from all sources, but would exclude income from dependent children 18 years old or younger and full time students, and various governmental assistance described in appendix A of this part, § 24.2(a)(15).

Section 24.2(a)(16) Initiation of Negotiations

We propose to add a sentence to the definition of “initiation of negotiations” to provide that, in the case of acquisitions of real property, described in the initiation of negotiations, for the purposes of § 24.101(b)(1) through (5) (that must be based on an amicable agreement with the owner) establishing a qualified tenant's eligibility for relocation benefits, would occur when the Agency and the owner reach agreement to purchase the real property.

Section 24.2(a)(18) Mobile Home

We propose to add a definition for a mobile home to this section. The term includes both manufactured homes and recreational vehicles used as residences. We also propose to add further requirements that recreational vehicles must meet in order to be qualified for relocation assistance in appendix A. Appendix A would also explain the difference between manufactured homes and mobile homes recognized by HUD for that Agency's programs. For purposes of this regulation, however, we propose that both are to be considered as mobile homes. (Subpart F continues to include an explanation of the different methods of computing relocation assistance when a mobile home has been determined to be personal property, and when it is determined to be real property.)

Section 24.2(a)(24) Salvage Value

We propose to revise the definition of “salvage value” to clarify that the value of an item is to be based on the item being removed at the buyer's expense.

Section 24.2(a)(30) Unlawful Occupant

We propose to change the term “unlawful occupancy” to “unlawful occupant” so that the definition can be stated more clearly. We also propose to remove the word “squatter” from the definition. The word may be offensive and is not necessary to the definition. The wording changes proposed would simplify the definition without changing its meaning.

Section 24.2(a)(34) Waiver Valuation

We propose to use the term “waiver valuation” to identify the valuation

process and product when § 24.102(c)(2) appraisal waiver provisions are implemented.

Section 24.9 Recordkeeping and Reports

In accordance with the Presidential Memorandum dated February 27, 1985, United States Department of Transportation is required to report annually to the President's Council on Management Improvement, a part of the Office of Management and Budget, on implementation of the Uniform Act. Under the current reporting requirement, the Lead Agency has received very little statistical information, and thus has little or no knowledge of the extent and impact of other Federal funding Agencies acquisition and displacement activities. Therefore, in § 24.9(c), we propose to require Federal Agencies to submit an annual report summarizing of their real property acquisition and displacement activities to the Lead Agency. This proposed change would enable us to prepare and submit a more comprehensive and useful report, in addition to facilitating a more active monitoring role in our duty as Lead Agency.

We propose to redesign Appendix B to be less burdensome and to enable the information to be reported electronically. Appendix B is the statistical support form of which Agencies are required to submit reports of real property acquisition and displacement activities, if required by the Federal Agency funding the project. Additionally, we propose to remove the requirement that the Agency submit this report no more frequently than every three years, since this report is issued each year.

The Department of Housing and Urban Development and most other Federal funding Agencies support this proposed change.

Subpart B—Real Property Acquisition

We propose to make a minor change by replacing the term “fair market value” with “market value” throughout the subpart to better reflect current appraisal terminology.

Section 24.101 Applicability of Acquisition Requirements

We propose to restructure § 24.101(a) to clarify the application of the real property acquisition requirements set forth in this subpart, and to revise the exceptions to those requirements.

Currently, the two major exceptions to real property acquisition requirements in Subpart B are voluntary transactions and acquisitions in which the Agency does not have the power of eminent domain.

Based on the suggestion of Federal Agencies, we propose that these exceptions no longer apply to acquisitions by Federal Agencies. We are advised that some Federal Agencies use these types of transactions to a significant extent. To best ensure that the objectives of the Uniform Act are satisfied, we propose that Federal Agencies follow the valuation processes set forth in this subpart for all of their direct acquisitions. This proposal is also consistent with section 305(b)(2) (42 U.S.C. 4655(b)(2)) of the Uniform Act, which allows these exceptions for recipients of Federal financial assistance, but provides no such exceptions for Federal Agencies themselves. We propose to retain the exceptions for federally-assisted projects and programs.

Essential to the exceptions is the requirement that the owner must be informed that the property would not be acquired unless an amicable agreement can be reached. Currently, the regulation requires the Agency to inform the owner what it believes to be the fair market value of the property. We propose to require the Agency to inform the property owner in writing (1) that the property will not be acquired unless an amicable agreement can be reached, and (2) of the market value of his/her property. This would more closely parallel the Uniform Act requirement that is applicable to covered transactions, and provide the property owner with documented assurance of the Agency's authority and intentions.

Some Agencies suggested that the requirement that the Agency inform the owner of what it believes to be market value in § 24.101(a)(1) and (2) be revised to also include a requirement for a supporting appraisal. We have not proposed adding such a requirement. However, we propose adding language to Appendix A noting that, while the regulation does not require an appraisal in these cases, an Agency may still decide to use some form of an appraisal, and, in any event, an agency must have some reasonable basis for the valuation required by § 24.101(a)(1) and (2).

To assist readers/users, we propose to add a cross reference to the location in the rule of relocation assistance provisions that are applicable to any tenants that must move as a result of these excepted acquisitions.

We propose to delete the introductory phrase in proposed § 24.101(c), currently § 24.101(b), to eliminate unnecessary verbiage.

Section 24.102 Basic Acquisition Policies

The Uniform Act provides that the requirement for an appraisal may be waived in cases involving the acquisition of property with a low market value. We propose to clarify § 24.102(c)(2) by separating it into paragraphs (i) and (ii). Paragraph (i) would concern donations and is essentially unchanged. Paragraph (ii) would address low value properties and would specify that when such properties are to be acquired, and the appraisal waived, the Agency must prepare a “waiver valuation,” a term proposed to be defined in § 24.2(a)(34). We propose to raise the appraisal waiver threshold in § 24.102(c)(2) from $2,500 to $10,000. In addition, we propose to add a new provision that would allow the Federal funding Agency to raise the threshold up to a maximum of $25,000, provided that the Agency acquiring the real property offers the property owner the option of having an appraisal performed.

These proposed changes reflect the general increase in property values since the present threshold was established. Comments we have received and our experience to date, have shown no indication of administrative abuse or property owner objection. Broad Agency support indicates a higher threshold is justified.

Section 24.102(e) Summary Statement

We propose to revise the language in (3) to be clearer and more specific.

Section 24.102(i) Administrative Settlement

We propose to revise the language to require more specific information in the written justification (“state” rather than “indicate”) and delete specific suggestions (“appraisals, recent court awards, estimated trial costs, or valuation problems”) in favor of requesting “what available information, including trial risks, supports the settlement.”

Section 24.102(n) Conflict of Interest

Language currently in § 24.103(e) Criteria for appraisals, addresses conflicts of interest for appraisers and review appraisers. Proposed language would add all persons making waiver valuations under § 24.102(c)(2) to this section. This proposed change would bring equal conflict of interest standards to all individuals valuing real property, whether their work be waiver valuations, appraisal, or appraisal review, and would clarify who is covered.

We also propose adding a new provision that any person functioning as a negotiator shall not supervise or formally evaluate either the appraiser, review appraiser or person making waiver valuations. This provision would enhance appraiser independence and further support the Uniform Act concept that the appraisal is part of the acquisition process that includes not only appraisal and appraisal review, but also the Agency responsibility and authority to establish an amount, based on an approved (reviewed) appraisal, believed to be just compensation, offer that amount to the property owner, and be prepared to consider updating the offer of just compensation (§ 24.102(g)) and administrative settlement (§ 24.102(i)), as appropriate. Recognizing that some Federal assistance recipients, particularly those with limited staff resources, may find this provision unworkable, we propose that, in such cases, the Federal funding agency may waive this provision. And, since the proposed provision would apply to more individuals than just the appraiser, we propose to relocate it to be under basic acquisition policies.

Section 24.103 Criteria for Appraisal

The revisions we propose to §§ 24.103 and 24.104 are the first since the Appraisal Foundation published the Uniform Standards of Professional Appraisal Practice (USPAP).

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Considerable confusion and misunderstanding as to the applicability of USPAP provisions to Uniform Act real property acquisitions have existed ever since USPAP was published. The Uniform Act and 49 CFR Part 24 set the requirements for appraisal and appraisal review in support of Federal and federally-assisted acquisition of real property for government projects.

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Uniform Standards of Professional Appraisal Practice (USPAP). Published by the Appraisal Foundation, a non-profit educational organization. Copies may be ordered from the Foundation at the following URL:

http://www.appraisalfoundation.org/html/USPAP2003/toc.htm.

Appraisers who are committed to adhere to USPAP by virtue of State appraisal licensing or certification should look to the provisions of USPAP, including the scope of work, the Jurisdictional Exception Rule and the Supplemental Standards provisions, and their State Appraisers' board for guidance on how they can remain in compliance with USPAP and perform appraisals for Agencies following Uniform Act and 49 CFR part 24 requirements.

Many of the proposed provisions of §§ 24.103 and 24.104, are intended to assist the appraiser, the Agency and others in understanding the requirements of these subparts in light of USPAP.

We propose to change the terminology throughout this section from “standards” to “requirements” to avoid confusion with USPAP standards rules. We also propose to add the phrase “Federal and federally-assisted program” to more accurately identify the type of appraisal practices that are to be referenced, and to differentiate them from private sector, especially mortgage lending, appraisal practice.

Section 24.103(a) Appraisal Requirements

We propose to add a sentence indicating that these regulations set forth the requirements for real property acquisition appraisals for Federal and federally-assisted programs. This would make it clear that other performance standards, such as USPAP and those issued by professional appraisal societies, do not govern programs covered by the Uniform Act. We propose to reorder other sentences in the paragraph for greater clarity, and to add a requirement for a scope of work statement in each appraisal. In appendix A, we propose to add a discussion on preparing the scope of work. We also propose to insert the word “simple” to help identify and differentiate the “minimum requirements” appraisal. We propose to move the requirements now in § 24.103(a)(1) to the scope of work, as discussed in appendix A, and renumber the remaining detailed appraisal requirements (1) through (5).

Section 24.103(a)(3)

To clarify the intent of this section, we propose to add language that describes the content of a detailed appraisal to conform with currently used terminology (sales comparison approach). We also propose to move the discussion of the Agency's authority to require only the market approach (sales comparison approach) to appendix A, where we propose it be included in the determination of the scope of work.

Section 24.103(b)

We propose to delete the first phrase because it is redundant.

Section 24.103(d)

We propose to specifically add “review appraisers” to clarify that they are included in this section that addresses appraiser qualifications. We also propose to add a discussion to appendix A to emphasize the need for appraisers and review appraisers to be qualified and competent, and that State licensing or certification can help provide an indication of an appraiser's abilities.

Section 24.104 Review of Appraisals

We propose to use consistent terminology to refer to the person performing appraisal reviews,

i.e.

, review appraiser. We also propose to add language to clarify and specify the responsibilities, authorities and expectations associated with appraisal review.

Section 24.104(a)

We propose to add language that would specifically state that the review appraiser's examination of the appraisal must include examination of the presentation and analysis of market information. While this may not be a change from what Agencies, as a matter of practice, now expect of review appraisers, we believe this proposed language would avoid misunderstanding and confusion. Also, we propose to state clearly that the review appraiser is to ensure that appraisal performance complies with appraisal requirements in § 24.103 and other applicable requirements, and supports the appraiser's opinion of value. This would avoid any misunderstanding as to the criteria for the review. The level of analysis and reporting would depend on the complexity of the appraisal and appraisal review problems. We propose that the report identify the appraisal report(s) reviewed, document the findings and conclusions arrived at during the review of the appraisal(s), and identify each appraisal report as rejected, accepted (meets all requirements, but not selected as approved), or approved (as the basis for the establishment of the amount believed to be just compensation). Identification of each appraisal report is proposed as a method of avoiding confusion as to the status of each reviewed appraisal.

Section 24.104(b)

We propose to add language that would make it clear that the review appraiser may develop independent valuation information as part of the appraisal review process.

Section 24.104(c)

We propose to add language that would require the review appraiser to prepare a written report and specify what is to be in the report.

We also propose that the review appraiser prepare a signed certification, which would state the parameters of the review and the approved value and, if

appropriate, the amount believed to be just compensation to be offered the property owner.

Subpart C—General Relocation Requirements

Section 24.202 Applicability

We propose to add a sentence to § 24.202 that adds a requirement that displaced persons be fully informed of their rights and benefits. It has come to our attention that displaced persons have been asked to waive their relocation rights and benefits without being informed of the extent of those benefits. This proposal would protect and strengthen the requirement that Agencies fully inform displaced persons of any rights and benefits they may be eligible for under this part.

This proposal is also integral to new proposed § 24.207(f), Waiver of relocation benefits, which would prohibit Agencies from proposing or asking displaced persons to waive their relocation rights and benefits.

Section 24.203(d) Notice of Intent To Acquire

We propose to move the definition of “notice of intent to acquire” from § 24.2 “Definitions” to § 24.203, “Relocation notices,” with a minor revision. This proposed revision would be for continuity and clarity.

Section 24.205 Relocation Planning, Advisory Services and Coordination

In response to widespread concern about the inadequacy of Uniform Act relocation and reestablishment procedures and payments for displaced businesses, we sponsored the National Business Relocation Study

3

(“the study”). The study, undertaken for FHWA by an independent consultant, investigated business relocation concerns and provided recommendations to develop solutions to these problems.

3

The National Business Relocation Study (2002) is available for public inspection at the following URL:

http//www.fhwa.dot.gov/realestate/nbrs2002.htm.

The study found that relocation assistance advisory services for businesses were generally considered fair to poor. Some of the findings specifically noted that relocation agents were not adequately trained or informed to address the complexities of complicated business relocations, and were unable to provide meaningful assistance in locating replacement properties.

The changes proposed in this section are based upon the findings and recommendations of the study and are meant to address the added burden of displacement on businesses, and provide additional assistance to increase businesses' viability after displacement.

Section 24.205(a) Relocation Planning

We propose to change § 24.205(a) to provide additional items for Agencies to consider in planning for business relocations.

The Uniform Act and this section of the regulation require Agencies to plan federally funded programs and projects in such a manner that Agencies recognize the problems associated with displacement and develop solutions to minimize the adverse affects of displacement. An Agency must engage in such planning before proceeding with any action, which causes displacement and should scope the plan to the complexity and nature of the displacing action.

Currently, this section of the regulation provides examples of items to consider in relocation planning. The planning considerations currently include both residential and non-residential items, but residential planning requirements are more comprehensive than the non-residential planning ones. We recognize that the Uniform Act requires a more generous “make whole” approach for residential displacements. However, we also recognize that a significant number of displaced small businesses have not been able to successfully relocate. Therefore, we propose to require the Agency to engage in planning for the problems associated with non-residential displacement.

Section 24.205(c)(2)(i)(A)-(F) Relocation Assistance Advisory Services

We propose to change § 24.205(c)(2)(i)(A) through (F) to include six specific items in personal interviews for business relocations. These six paragraphs are a result of our National Relocation Business Study and will assist in determining the future needs of displaced businesses.

During the five national listening sessions, the FHWA received many comments concerning the lack of guidance and direction on what information the Agency should obtain when making personal interviews with businesses. The FHWA also received testimony from States and Local Public Agencies of actual cases where good interviewing and early planning is credited with preventing business closures.

The Uniform Act and this section of the regulation requires Agencies to ensure that relocation assistance advisory services are made available to all persons displaced by the Agency. A critical element in any successful relocation, and also an advisory services requirement, is to determine the needs and preferences of displaced persons through a personal interview.

Currently, this section of the regulations provides no examples of items for Agencies to consider in personal interviews for either residential or non-residential displacements. Generally, we believe Agencies do not need additional guidance in conducting personal interviews for residential displacements. However, we believe that specific guidance in conducting personal interviews for non-residential displacements is necessary to help address the added burden of displacement on businesses and provide additional assistance to increase their viability after displacement. Therefore, we have proposed guidance in (c)(2)(i)(A) through (F) of this section to assist Agencies in conducting personal interviews. This proposed change is based upon the findings and recommendations of the National Business Relocation Study.

Section 24.205(c)(2)(ii)(C) Relocation Assistance Advisory Service

We propose to revise this section to permit any displacing agency that has a program objective of providing minority persons with an opportunity to relocate to areas outside of minority concentration to provide reasonable and justifiable increases in the replacement housing payment to facilitate such moves.

Section 24.205(c)(2)(ii)(D) Transportation

In order to make it clear that all displaced persons must be offered transportation to inspect replacement housing, we propose to eliminate the specific reference to the elderly and handicapped in the current regulation.

Section 24.206 Eviction for Cause

We propose to revise this section on eviction for cause by moving several of the current provisions to the new definition of eviction for cause in § 24.2(a)(12).

Section 24.207(f) Waiver of Relocation Benefits

We propose to implement a new requirement for “waiver of relocation benefits.” This requirement would offer more protection to displaced persons. It would prohibit an Agency from proposing or requesting a displaced person to give up his/her rights or entitlements to relocation assistance.

We do not believe that an otherwise eligible person may relieve a governmental body of its statutory obligation to provide Uniform Act assistance by agreeing to waive such assistance. The primary purpose of the Uniform Act is to impose requirements upon Agencies that acquire property and displace persons for Federal or federally-funded projects. The Uniform Act does not grant rights or benefits directly to individuals, rather it imposes duties and obligations upon Federal, State, and local governments.

A statement or agreement by a displaced person who does not wish to receive certain assistance does not free a government Agency from the obligations or requirements imposed by Federal law. In such a case where a displaced person indicates in writing he/she does not want assistance, the Federal or State Agencies must still fully inform the displaced person of all the assistance he/she is entitled to receive.

Section 24.207(g) Entitlement to Payments

We propose to add new paragraph (g) to § 24.207 to clarify that, since relocation payments are considered a form of compensation, they do not constitute Federal financial-assistance, and accordingly, the expenditure of such relocation payments by a displaced person would not trigger further application of the Uniform Act or similarly applicable Federal requirements.

Section 24.208(f)(1) Aliens Not Lawfully Present in the United States

We propose that the references to the Immigration and Naturalization Service (INS) in § 24.208(f)(1) be revised to reflect the fact that the INS has become part of the Department of Homeland Security, and renamed the Bureau of Citizenship and Immigration Services (BCIS).

Subpart D—Payments for Moving and Related Expenses

We propose to substantially reorganize Subpart D. With few exceptions, the basic content would remain the same; however, based upon the comments from our 5 national public listening sessions and comments from other Agencies, this subpart needs to be reorganized for clarity and ease of use. Accordingly, we propose to realign the different moving costs allowance provisions.

We propose to divide Subpart D into six sections. We would transfer a number of criteria from § 24.304, Reestablishment Expense, with its $10,000 limit, to § 24.301, Payment for actual reasonable moving and related expenses, and § 24.303, Payment for related non-residential expenses, where there are no limits and the payment is determined by actual, reasonable and necessary criteria. This would offer greater flexibility in assisting small businesses, farms, and non-profit organizations by removing several relocation costs from inclusion in the $10,000 statutory limit placed on reestablishment expenses. We propose to incorporate existing § 24.303 into proposed § 24.301 with specific criteria clearly spelled out for each type of move.

We propose several new paragraphs that would help clarify the different types of moving costs. In § 24.303 we propose that payment would be provided for certain moving related costs that are not personal property but are essential to the continuance of operation of the business. We propose a new paragraph, § 24.301(e), that would compensate displaced persons who are not forced to move from their residence or business but have personal property that must be moved from the acquired area.

Section 24.301(b)(3), 24.301(c)(iii) and 24.301(d)(2)(ii) Moving Cost Finding

We are proposing to add a provision allowing moving expenses to be determined by a qualified staff person for small uncomplicated personal property moves, commonly called a “moving cost finding” or “a finding.” The proposed moving cost finding is another option available to the displaced person and the Agency. This option cannot be forced on the displaced person. The proposed moving cost finding would recognize an additional method of moving personal property that is currently being used by many Agencies. The proposed moving cost finding gives the Agency a cost effective and expeditious way to pay for small uncomplicated moves of personal property that are located outside of the primary dwelling or business structure(s). This method would allow the Agency to use qualified staff personnel to estimate the cost of such small-uncomplicated personal property moves and offer the option to the displaced person as a means of a self move. The cost would be capped at $3,000 and not be binding on the displaced person. The displaced person may elect any of the other methods to move. This provides both the Agency and the displaced person a quick cost effective way of making a self-move.

Section 24.301(e) Personal Property Only

We propose a new paragraph that would describe the relocation assistance available to a displaced person for moving personal property from the acquisition area, when the acquisition does not require the relocation of a dwelling (including a mobile home), business, farms or nonprofit organizations. Personal property only moves might include moving such things as farm equipment or livestock where the related buildings are not affected.

Section 24.301(g)(14)(i) Actual Direct Loss of Tangible Personal Property

The Uniform Act provides that a displaced business, farm or non-profit organization is entitled to be compensated for the actual direct loss of tangible personal property. We propose to slightly change the direct loss of tangible personal property provision to eliminate much confusion over the term “fair market value for continued use.” Displacing Agencies are reluctant to discuss this benefit with displaced businesses because of the uncertainty over how to determine the payment.

Therefore, we propose to strike the phrase “fair market value of the item for continued use at the displacement site” and replace it with “market value of the item, less the proceeds of the sale” to clarify the basis for valuing such property. This is consistent with the intent of the Uniform Act, 42 U.S.C. 4622(a)(2).

Section 24.301(g)(14)(ii) Actual Direct Loss of Tangible Personal Property

We propose to add language to this section that would clarify what constitutes the estimated cost of moving when a business elects to discontinue the business or the business has a piece of equipment in storage or non-operational at the acquired site. Confusion comes from whether or not such an estimate, used to compute the payment for actual direct loss of tangible personal property, should include disconnecting and reconnecting costs when the business elects to discontinue operation or elects not to move the equipment to the replacement location. The proposed language would clarify those cases in which reconnecting costs would or would not be included in calculating the estimated cost of moving such equipment. We believe this would be consistent with the intent of the Uniform Act, to provide moving benefits that are actual, reasonable and necessary.

Section 24.301(g)(17) Searching for a Replacement Location

We propose to move this paragraph from § 24.303(a)(13) and increase “searching expenses” from $1,000 to $2,500. This amount has been set at $1,000 for 16 years. This proposed change is supported by the FHWA's National Business Relocation Study which recommended increasing the searching expenses. Searching expenses are intended to provide compensation for the actual time and effort to find a replacement site, which also should include reasonable costs to investigate the site. Such costs may include the cost of obtaining permits, attending zoning hearings or negotiating the purchase of a replacement site. We propose to provide additional insight and flexibility in appendix A on the application of searching expenses.

Section 24.301(g)(18) Low Value/High Bulk

We propose to add a paragraph on low value/high bulk property. The current regulation does not address cases where items of personal property owned by a displaced business are more costly to move than they are worth. The proposed change would provide a procedure available when the personal property to be moved is of low value and high bulk and, in the judgment of the displacing Agency, the cost of moving the personal property is disproportionate to its value.

Section 24.301(h)(12) Ineligible Moving and Related Expenses.

For clarity and uniformity, we propose to add refundable security and utility deposits to the list of ineligible moving expenses, § 24.301(h)(12). Since refundable deposits, by the name alone, indicates a return of the investment to the displaced person, we do not consider a refundable deposit a reimbursable expense under the Uniform Act.

Section 24.301(i)(1) and (2) Notification and Inspection

We propose to reorganize and merge this section from four paragraphs into three paragraphs. We do not propose to change the wording. These proposed changes are for clarity and readability. The phrase “The displaced person must” is merged into the introductory paragraph to eliminate redundancy and provide clarity.

Section 24.302 Fixed Payment for Moving Expenses-Residential Moves

This section provides that displaced residential owners and tenants may receive a moving expense payment based on the Fixed Residential Moving Cost Schedule

4

approved by the FHWA. Currently, this section provides that the Fixed Residential Moving Cost Schedule payment made to a person with minimal personal possessions in occupancy of a dormitory style room or whose residential move is performed by an Agency at no cost to the individual is limited to $50. This has been the limit since 1987. Since this payment is included in the fixed residential moving cost schedule that is updated periodically, we are proposing to remove the $50 dollar amount from § 24.302, so that the amount and future increases to this payment would be established by the Fixed Residential Moving Cost Schedule. Therefore, each time the schedule is updated, this payment could be updated as well. Agencies must be sure they are using the most current edition of the Fixed Residential Moving Cost Schedule.

4

The Fixed Residential Moving Cost Schedule is available for public inspection at the following URL:

http://www.fhwa.dot.gov//////realestate/fixsch96.htm.

Section 24.303 Related Non-Residential Eligible Expenses

As a result of reorganizing Subpart D for convenience and clarity, the relocation of all items of personal property would be included in § 24.301. We are proposing to add a new section, § 24.303, that would provide reimbursement for several costs that are not considered to be personal property but are essential to the continuing operation of the business. These costs are additional expenses, other than for moving personal property, that are not covered by either § 24.301 (personal property) or § 24.304 (real property.) Reimbursement for these expenses would be allowed if they are determined by the Agency to be “actual, reasonable and necessary.”

Subpart E—Replacement Housing Payments

Section 24.401(e)(4) Incidental Expenses

We are proposing to add professional home inspection to the list of reimbursable incidental expenses. Professional home inspections including electrical systems, plumbing, and HVAC are commonplace and should be added to the list of reimbursable incidental expenses. Most agencies are currently allowing for this expense.

Section 24.401(f) Rental Assistance Payment for 180 Day Homeowner-Occupant

We propose to add language that would allow a rental assistance payment for a 180-day homeowner, who elects to rent, instead of purchase, a replacement dwelling, to exceed $5,250 if the difference in the estimated market rent of the acquired dwelling and the rent for a comparable replacement dwelling support a higher figure. However, the rental supplemental payment would not be allowed to exceed the amount the 180-day owner would have received as a housing (purchase) supplemental payment under proposed § 24.401(b). It was brought to our attention through the national listening sessions and through discussions with other Federal Agencies that this change would be fair and make the displaced person whole at no additional cost to the Agency.

An example of the proposed change would be where an elderly couple who own their home may want to rent rather than purchase another home. Under current procedure, the Agency would compute a replacement housing offer, which for this example is, say, $10,000. The Agency would then compute a rental assistance payment based on the difference in market rent and an available comparable dwelling, which for this example is $7,000. Currently, we would only pay the maximum amount of $5,250. The proposed change would allow the Agency to pay the $7,000 rent supplement or any rent supplement up to what they would have received as a 180-day homeowner ($10,000 in this example) to purchase a replacement dwelling.

We feel this would be a fair and equitable approach, provided the rent supplement does not exceed the amount the 180-day homeowner could receive if he or she elected to purchase a replacement dwelling, rather than to rent one.

Section 24.402(b)(2)(ii) Replacement Housing Payment for 90-Day Occupant

We propose to slightly revise § 24.402(b)(2)(ii) to reflect the statutory requirement that only a low-income displaced person's income shall be taken into consideration when calculating rental assistance payments for a comparable replacement dwelling (42 U.S.C. 4624(a).)

Section 24.402(b)(2) currently uses 30 percent of a person's average monthly gross household income as the criteria for computing replacement housing payments for all eligible displaced tenants. This often results in large payments to existing tenants who are

not low income and who elect to pay more than 30 percent of their monthly gross household income for rental housing. This proposed change would be more reflective of the intent of the Uniform Act in that it assures consideration of income for low-income persons.

The proposal would rely on the U.S. Department of Housing and Urban Development's Annual Survey of Income Limits.

5

The proposed procedures in § 24.402(b)(2)(ii) would continue to use the 30 percent of monthly gross household income, but only for displaced persons who qualify as low income. The base monthly rental would continue to be established solely on the criteria in § 24.402(b)(2).

5

The Annual Survey of Income Limits can be found at the following URL:

http://www.huduser.org/datasets/il.html.

Section 24.402(c) Downpayment Assistance Payment

For uniformity, we propose to clarify that the replacement housing payment received under § 24.402(b) may be used for a downpayment assistance payment. There is a disparity among Agencies as to the amount that can be used as the downpayment. Most State and Federal Agencies currently allow the full amount of the rent supplement to be applied to the downpayment. Some, on the other hand, follow the guidance in appendix A of this regulation which limits the amount of the downpayment to what would ordinarily be required to obtain conventional loan financing for a decent, safe and sanitary dwelling. No such limits are included in the Uniform Act.

Therefore, we propose to add language that would allow the displaced person to apply the full amount of the rent supplement to the downpayment on a decent, safe and sanitary dwelling. We also propose to slightly modify appendix A to conform to the proposed change.

Section 24.403(a) Determining Cost of Comparable Replacement Dwelling

At the request of several Federal Agencies, we are proposing that Agencies pay, as a part of the reasonable cost of a comparable replacement dwelling, the increased real estate taxes, if any, for displaced 180-day owner occupants displaced as a result of a Federal or federally-funded project. This payment would be based on the difference between the monthly real estate tax on the acquired dwelling, and the monthly real estate tax on the replacement dwelling at the time of purchase but not to exceed the monthly real estate tax on a comparable replacement dwelling.

The benefit would be calculated over a 24-month period. If the displaced person elects to purchase a replacement dwelling where the real estate tax at the time of purchase exceeds that of the comparable replacement dwelling, the increased tax payment, if any, would be limited to the increased monthly tax cost of the comparable replacement dwelling at the time of purchase for 24 months. Should the displaced person elect to purchase a replacement dwelling for less than the cost of a comparable replacement dwelling, the increased tax calculation would be based on the 24 month increase, if any, in the real estate tax of the acquired dwelling and that of the replacement dwelling at the time of purchase.

The rationale for this proposal is that increased real estate taxes represent a real part of the cost of a replacement dwelling and are often a financial burden, particularly for displaced persons with fixed incomes, such as social security. Other situations could arise where a displaced person that purchases a new home may lose his/her grand-fathered real estate tax rate privileges and be subject to a higher real estate tax rate. The proposal would comport with the spirit and purpose of the Uniform Act, which is to treat displaced persons fairly by ensuring that they are able to relocate to a replacement dwelling that is comparable to the dwelling from which they were displaced.

Section 24.403(a)(1) Adjustment of Comparables

We propose to remove the requirement that Agencies adjust the asking price of the comparable replacement dwelling in computing replacement housing payments. Currently, this section bases a displaced person's replacement housing payment on the adjusted difference between the asking price and the selling price of a comparable replacement dwelling as determined by an Agency survey of the area. This requirement, because it can provide a replacement housing payment that is different than the price of a comparable dwelling, is burdensome and forces the displaced person to become a negotiator. This imposes an unnecessary obligation on the displaced person for which he/she probably is not qualified. Removing this requirement also would relieve the Agency of the administrative burden of conducting a market survey to determine the adjusted sales value. The procedure for determining a comparable dwelling would not change, only the current requirement to adjust the price of the selected comparable dwelling would be eliminated. The replacement housing payment would be based on the list price of the comparable dwelling not the adjusted price. Additionally, the reference to the adjustment of comparable replacement dwellings in Appendix A would be removed.

Subpart F—Mobile Homes

Based upon the comments from our five national public listening sessions and comments from the other Agencies, we are proposing to reorganize Subpart F for clarity and ease of use. The basic content would remain unchanged.

We propose to move the required determinations to distinguish a mobile home displacement as either an acquisition of real property or as a move of personal property, to the eligibility paragraph in § 24.502.

Subpart E provides replacement housing payments for an owner occupant or tenant occupant displaced from a conventional dwelling. Subpart F provides similar payments for an owner occupant or tenant that is displaced from an acquired mobile home. However, mobile homes may instead be considered personal property and relocated, not purchased, which in turn may lead to the determination that the occupant is not displaced from his/her dwelling. The proposed reorganization merely consolidates the necessary displacement determination, locating each with the applicable payment eligibility provisions.

We propose to eliminate § 24.505 (Additional rules governing relocation payments to mobile home occupants), and consolidate its provisions into the following paragraphs in which they are more closely affiliated: § 24.501 (Applicability); § 24.502 (currently § 24.503—Replacement housing payment for 180-day mobile homeowner-occupants); and § 24.503 (currently § 24.504 —Replacement housing payment for 90-day mobile home occupants.) Also, as previously discussed in the preamble to Subpart D, we propose to consolidate the moving provisions in § 24.301(g)(8) through (g)(10).

Section 24.502(b) Replacement Housing Payment Computation for a 180-Day Owner Displaced From a Mobile Home

We propose to modify and consolidate § 24.502(b) that provides for payment of actual moving expenses with the criteria for replacement housing payments in those cases where the displacing Agency determines the homeowner is displaced from the

mobile home for the reasons described in § 24.502(a)(3).

Section 24.502(c) Rental Assistance Payment for a 180-Day Owner-Occupant Displaced From Acquired Leased or Rented Site

We propose to allow the displaced person to claim the computed rental assistance payment if it is applied towards the purchase of a replacement site or added to the eligible purchase price of a conventional dwelling or mobile home. This would eliminate the confusion over combining the two payments (mobile home and mobile home site) in the purchase of a conventional dwelling. The justification being that when buying a conventional dwelling, the land and dwelling are one; whereas, in many instances with mobile homes, the displaced person owns the mobile home but rents the land. Therefore, in the case where the mobile home owner buys a conventional dwelling we would allow the rental supplement on the land (site) to be added to the housing supplement, not to exceed the statutory limit of $22,500 (unless the housing supplement is in Housing of Last Resort). The total payment must be used toward the purchase of replacement decent, safe and sanitary housing.

Distribution Tables

For ease of reference, distribution and derivation tables are provided for the current sections and the proposed sections, as follows:

Distribution Table

Old section

New section

Subpart A

24.1

24.1 Text unchanged.

24.1(b)

24.1(b) Revised.

24.2 Heading

24.2 Heading revised.

None

24.2(a) Introductory para. added.

Agency

24.2(a)(1) Paras. revised.

Alien not lawfully present in the United States

24.2(a)(2) Paras. redesignated.

Appraisal

24.2(a)(3) Redesignated.

Business

24.2(a)(4) Redesignated.

Citizen

24.2(a)(5) Redesignated.

Comparable replacement dwelling

24.2(a)(6) Redesignated.

(1) and (2)

24.2(a)(6)(i) and (ii) Redesignated and revised.

(3) through (6)

24.2(a)(6)(iii) through (vi) Redesignated and text unchanged.

(7) and (8)

24.2(a)(6)(vii) and (viii) Redesignated and revised.

None

24.2(a)(6)(ix) Added.

Contribute materially

24.2(a)(7) Redesignated and text unchanged.

Decent, safe, and sanitary dwelling

24.2(a)(8) Redesignated and revised.

(1)

24.2(a)(8) Redesignated and text unchanged.

None

24.2(a)(8) Added.

(2) and (3)

24.2(a)(8)(iii) and (iv) Redesignated and text unchanged.

(4)

24.2(a)(8)(v) and (vi) Redesignated and revised.

(5) and (6)

24.2(a)(8)(vii) and (viii) Redesignated and revised.

Displaced person

24.2(a)(9) All paras. redesignated.

Displaced person (1)(i)

24.2 (a)(9)(i)(A) Revised.

Displaced person (1)(iii)

24.2 (a)(9)(i)(C) Revised.

Displaced person (2)(v)

24.2(a)(9)(ii)(E) Revised.

Displaced person (2)(vii)

24.2(a)(9)(ii)(G) Revised.

Displaced person (2)(xi)

24.2(a)(9)(ii)(K) Revised.

Dwelling

24.2(a)(10) Redesignated.

None

24.2(a)(11) Added.

None

24.2(a)(12) Added.

Farm operation

24.2(a)(13) Redesignated.

Federal financial assistance

24.2(a)(14) Revised.

None

24.2(a)(15) Added.

Initiation of negotiations—Intro. Para

24.2(a)(16)Intro. para. Redesignated and text unchanged.

(1) through(3)

24.2(a)(16)(i) through (iii) Redesignated and text unchanged.

None

24.2(a)(16)(iv) Added.

Lead agency

24.2(a)(17) Redesignated.

None

24.2(a)(18) Added.

Mortgage

24.2(a)(19) Redesignated.

Nonprofit organization

24.2(a)(20) Redesignated.

Notice of intent to acquire or notice of eligibility for relocation assistance

24.203(d) Revised.

Owner of a dwelling

24.2(a)(21) Revised.

Person

24.2(a)(22) Redesignated.

Program or project

24.2(a)(23) Redesignated.

Salvage value

24.2(a)(24) Revised.

Small business

24.2(a)(25) Redesignated.

State

24.2(a)(26) Redesignated.

Tenant

24.2(a)(27) Redesignated.

Uneconomic remnant

24.2(a)(28) Redesignated.

Uniform Act

24.2(a)(29) Revised.

Unlawful occupancy

24.2(a)(30) Revised.

Utility costs

24.2(a)(31) Redesignated.

Utility facility

24.2(a)(32) Redesignated.

Utility relocation

24.2(a)(33) Redesignated.

None

24.2(a)(34) Added.

None

24.2(b) Added.

24.3

24.3 Revised.

24.4(a)(1) and (2)

24.4(a)(1) and (2) Text unchanged.

None

24.4(a)(3) Added.

24.4(a)(3)

24.4(a)(4) Revised.

24.4(b) and (c)

24.4(b) and (c) Text unchanged.

24.5 through 24.7

24.5 through 24.7 Text unchanged.

24.8 (a) through (g)

24.8(a) through (g) Text unchanged.

24.8(h)

24.8(h) Revised.

24.8(i)

24.8(i) Revised.

24.8(j) through (l)

24.8(j) through (l) Text unchanged.

24.8(m)

24.8(m) Removed.

24.8(n)

24.8(m) Redesignated.

None

24.8(n) Added

24.9(a) and (b)

24.9(a) and (b) Text unchanged.

24.9(c)

24.9(c) Revised.

24.10(a) through (f)

24.10(a) through (f) Text unchanged.

24.10(g) and (h)

24.10(g) and (h) Revised.

Subpart B

24.101 Heading.

24.101 Heading Text unchanged.

24.101(a)

24.101(a) Revised.

24.101(a) Second para.

24.101(b) Redesignated and revised.

24.101(a)(1)

24.101(b)(1) Redesignated and revised.

24.101(a)(1)(i)

24.101(b)(1)(i) Redesignated and revised.

24.101(a)(1)(ii) and (iii)

24.101(b)(1)(ii) and (iii) Redesignated.

24.101(a)(1)(iv)

24.101(b)(1)(iv) Redesignated and revised.

24.101(a)(2)

24.101(b)(2) Redesignated.

24.101(a)(2)(i)

24.101(b)(2)(i) Redesignated.

24.101(a)(2)(ii)

24.101(b)(2)(ii) Redesignated and revised.

24.101(a)(3) and (4)

24.101(b)(3) and (4) Redesignated.

24.101(a)(5)

24.101(b)(5) Redesignated and revised.

24.101(b)

24.101(c) Redesignated and revised.

24.101(c)

24.101(d) Redesignated and revised.

24.102(a)

24.102(a) Text unchanged.

24.102(b)

24.102(b) Revised.

24.102(c) Intro. para.

24.102(c) Intro. para. Text unchanged.

24.102(c)(1) through (e) Intro. para.

24.102(c)(1) through (e) Intro para. Revised.

24.102(e)(1) and (2)

24.102(e)(1) and (2) Text unchanged.

24.102(e)(3)

24.102(e)(3) Revised.

24.102(f)

24.102(f) Revised.

24.102(g) and (h)

24.102(g) and (h) Text unchanged.

24.102(i) through (k)

24.102(i) through (k) Revised.

24.102 (l)

24.102 (l) Text unchanged.

24.102(m)

24.102(m) Revised.

None

24.102(n) Added.

24.103 Heading

24.103 Heading Text unchanged.

24.103(a)

24.103(a) Revised.

24.103(a)(1)

Appendix 24.103(a).

24.103(a)(2)

24.101(a)(1) Redesignated and text unchanged.

24.103(a)(3)

24.103(a)(2) Redesignated and revised.

24.103(a)(4) through (6)

24.103(a)(3) through (5) Redesignated.and text unchanged.

24.103(b) and (c)

24.103(b) and (c) Revised.

24.103(d) Heading and (d)(1)

24.103(d) Heading and (d)(1) Revised.

24.103(d)(2)

24.103(d)(2) Text unchanged.

24.103(e)

24.102(n) Redesignated and revised.

24.104 Introductory para.

24.104 Introductory para. Text unchanged.

24.104(a), (b) and (c)

24.104(a), (b) and (c) Revised.

24.105(a) and (b)

24.105(a) and (b) Text unchanged.

24.105(c)

24.105(c) Revised.

24.105(d) Introductory para

24.105(d) Introductory para. Revised.

24.105(d)(1) through 24.105(e)

24.105(d)(1) through 24.105(e) Text unchanged.

24.106(a)

24.106(a) Text unchanged.

24.106(b)

24.106(b) Revised.

24.107 through 24.108

24.107 through 24.108 Text unchanged.

Subpart C

24.201

24.201 Text unchanged.

24.202

24.202 Revised.

24.203 (a) and (a)(1)

24.203(a) and (a)(1) Text unchanged

24.203(a)(2) through (5)

24.203(a)(2)-(5) Revised.

24.203(b) and (c)

24.203(b) and (c) Text unchanged.

None

24.203(d) Added.

24.204(a)

24.204(a) Revised.

24.204(a)(1) through (c)

24.204(a)(1) through (c) Text unchanged.

24.205(a)

24.205(a) Revised.

24.205(a)(1) and (2)

24.205(a)(1) and (2) Revised.

24.205(a)(3)

24.205(a)(3) Text unchanged.

None

24.205(a)(4) Added.

24.205(a)(4)

24.205(a)(5) Redesignated.

24.205(b) through 24.205(c)(2)

24.205(b) through 24.205(c)(2) Text unchanged.

24.205(c)(2)(i)

24.205(c)(2)(i) Revised.

None

24.205(c)(2)(i)(A) through (F) Added.

24.205(c)(2)(ii) and (c)(2)(ii)(A)

24.205(c)(2)(ii) and (c)(2)(ii)(A) Text unchanged.

24.205(c)(2)(ii)(B) through (E)

24.205(c)(2)(ii)(B) through (E) Revised.

None

24.205(c)(2)(ii)(F) Added.

24.205(c)(2)(iii) through (v)

24.205(c)(2)(iii) through (v) Text unchanged.

24.205(c)(2)(vi)

24.205(e) Redesignated and text unchanged.

None

24.205(c)(2)(vi) Added.

24.205(d)

24.205(d) Text unchanged.

24.206 Introductory paragraph

24.206 Revised.

24.206(a) and (b)

24.2(a)(12)(i) and (ii) Redesignated and revised.

24.206(c)

24.206 Redesignated and revised.

24.207(a) through (d)(1)

24.207(a) through (d)(1) Text unchanged.

24.207(d)(2)

24.207(d)(2) Revised.

24.207(e)

24.403(a)(5) Redesignated.

24.207(f)

24.403(a)(6) Redesignated

24.207(g)

24.207(e) Redesignated.

None

24.207(f) and (g) Added.

24.208 Intro. para.

24.208 Intro. para. Text unchanged.

24.208(a) through (f) Intro. para

24.208(a) through (f) Intro. para. Text unchanged.

24.208(f)(1)

24.208(f)(1) Revised.

24.208(f)(2) through 24.209

24.208(f)(2) through 24.209 Text unchanged.

Subpart D

24.301 Heading

24.301 Heading Revised.

24.301 Introductory paragraph

24.301(a) Redesignated and revised.

None

24.301(a) Added.

24.301(a) and (b)

24.301(g)(1) and (g)(2) Redesignated and text unchanged.

None

24.301(b) Added.

24.301(c)

24.301(g)(3) Redesignated

None

24.301(c) Added.

24.301(d) through (f)

24.301(g)(4) through (g)(6) Redesignated.

None

24.301(d) through (f) Added.

24.301(g)

24.301(g)(7) Revised.

None

24.301(g)(18) Added.

None

24.301(h) through (j) Added.

24.302

24.302 Revised.

24.303

24.303 Revised.

24.303(a) through (a)(14)

24.301(g)(1) through (g)(17) Redesignated and revised.

24.303(b) through (b)(3)

24.301(i)(1) and (2) Redesignated and revised.

24.303(c)

24.301(d) Redesignated and revised.

24.303(d)

24.301(j) Redesignated and text unchanged.

24.303(e) through (e)(2)

24.301(f) through (f)(2) Redesignated and text unchanged.

24.304 Heading

24.304 Heading Text unchanged.

24.304 Introductory para.

24.304 Introductory para. Revised.

24.304(a) through (a)(3)

24.304(a) through (a)(3) Text unchanged.

24.304(a)(4)

24.303(a) Redesignated.

24.304(a)(5)

24.304(a)(4) Redesignated.

24.304(a)(6)

24.301(g)(11) Redesignated.

24.304(a)(7)

24.303(b) Redesignated and revised.

24.304(a)(8)

24.304(a)(5) Redesignated.

24.304(a)(9)

24.303(b) Redesignated and revised.

24.304(a)(10)

24.304(a)(6) Redesignated.

24.304(a)(11)

24.303(c) Redesignated and revised.

24.304(a)(12)

24.304(a)(7) Redesignated.

24.304(b)(1) through (3)

24.304(b)(1) through (3) Text unchanged.

24.304(b)(4)

24.304(b)(4) Revised.

24.305 section heading

24.305 Removed.

24.305(a) through (k)

24.301(h) through (h)(11) Redesignated and revised.

None

24.305(h)(12) Added.

24.306 section heading

24.305 Redesignated.

24.306(a)

24.305(a) Redesignated and revised.

24.306(a)(1) through (a)(5)

24.305(a)(1) through (a)(5) Redesignated and text unchanged.

24.306(a)(6)

24.305(a)(6) Revised.

24.306(b)

24.305(b) Revised.

24.306(c)

24.305(c) Revised.

24.306(c)(1) through (d)

24.305(c)(1) through (d) Redesignated.

24.306(e)

24.305(e) Revised.

24.307 section heading

24.306 Redesignated.

24.307(a) through (b)

24.306(a) through (b) Redesignated.

24.307(c)

24.306(c) Revised.

Subpart E

24.401 through 24.401(b)

24.401 through 24.401(b) Text unchanged.

24.401(c)

24.401(c) Text unchanged.

24.401(c)(1)

24.401(c)(1) Revised.

24.401(c)(1)(i) and (ii)

24.401(c)(1)(i) and (ii) Text unchanged.

24.401(c)(2)

24.403(a)(7) Redesignated and revised.

24.401(c)(3)

24.403(g) Redesignated and revised.

24.401(c)(4)

24.401(c)(2) Redesignated and text unchanged.

24.401(c)(4)(i)

24.401(c)(2)(i) Redesignated and text unchanged.

24.401(c)(4)(ii) and (iii)

24.401(c)(2)(ii) and (iii) Redesignated and revised.

24.401(c)(4)(iv)

24.401(c)(2)(iv) Redesignated and text unchanged.

24.401(d) through 24.401(e)(3)

24.401(d) through 24.401(e)(3) Text unchanged.

24.401(e)(4)

24.401(e)(4) Revised.

24.401(e)(5) through (e)(3)

24.401(e)(5) through (e)(9) Text unchanged.

24.401(f)

24.401(f) Revised.

24.402(a) through (b)(2)(i)

24.402(a) through (b)(2)(i) Text unchanged.

24.402(b)(2)(ii)

24.402(b)(2)(ii) Revised.

24.402(b)(2)(iii) and (b)(3)

24.402(b)(2)(iii) and (b)(3) Text unchanged.

24.402(c)(1)

24.402(c)(1) Revised.

24.402(c)(2)

24.402(c)(2) Text unchanged.

24.403 Heading

24.403 Text unchanged.

24.403(a) and (a)(1)

24.403(a) and (a)(1) Revised.

24.403(a)(2) through (4)

24.403(a)(2) through (4) Text unchanged.

None

24.403(a)(5) through (7) Added.

24.403(b)

24.403(b) Revised.

24.403(c) through (f)(1)

24.403(c) through (f)(1) Text unchanged.

24.403(f)(2)

24.403(f)(2) Revised.

24.403(f)(3)

24.403(f)(3) Text unchanged.

None

24.403(g) Added.

24.404(a) through 404(a)(2)(ii)

24.404(a) through 404(a)(2)(ii) Text unchanged.

24.404(a)(2)(iii)

24.404(a)(2)(iii) Revised.

24.404(b) through 404(c)(1)

24.404(b) through 404(c)(1) Text unchanged.

24.404(b) through 404(c)(1)(i)

24.404(b) through 404(c)(1)(i) Revised.

24.404(c)(ii) through 404(c)(1)(vi)

24.404(c)(ii) through 404(c)(1)(vi) text unchanged.

24.404(c)(1)(vii)

24.404(c)(1)(vii) Revised.

24.404(c)(1)(viii)

24.404(c)(1)(viii) Text unchanged.

24.404(c)(2)

24.404(c)(2) Revised.

24.404(c)(3)

24.404(c)(3) Text unchanged.

Subpart F

24.501 Heading

24.501 Heading Text unchanged.

24.501 Intro. para.

24.501(a) Revised.

None

24.501(b) Added.

24.502(b) through (b)(3)

24.301(f)(8) through (f)(10) Redesignated and revised.

24.503 section heading

24.502 Redesignated and revised.

24.503(a)

24.502(a) Redesignated and revised.

24.503(a)(1)

24.502(a)(1) Revised.

None

24.502(a)(1)(i) through (iii) Added.

24.503(a)(2) through (3)

24.502(a)(2) through (3) Redesignated and text unchanged.

24.503(a)(3)

24.502(a)(3) Revised.

24.503(a)(3)(i) through (iv)

24.502(a)(3)(i) through (iv) Redesignated and text unchanged.

None

24.502(b)(1) Added.

24.503(b)

24.502(b)(2) Revised.

None

24.502 (c) through (e) Added.

24.504 Heading

24.503 Heading Redesignated and text unchanged.

24.504 Intro. para.

24.503 Intro. para. Redesignated.

24.504(a) and (b)

24.503(a) and (b) Redesignated and text unchanged.

24.504(c)

24.503(c) Redesignated and revised.

24.505(a) through (e)

24.505(a) through (e) Removed.

24.505(e)

24.501(b) Redesignated.

24.601

24.601 Text unchanged.

24.602

24.602 Revised.

24.603

24.603 Text unchanged.

Derivation Table

New section

Old section

24.1

24.1.

24.2(a)

None.

24.2(a)(1)

24.2 Agency.

24.2(a)(2)

24.2 Alien not lawfully present in the United States.

24.2(a)(3)

24.2 Appraisal.

24.2(a)(4)

24.2 Business.

24.2(a)(5)

24.2 Citizen.

24.2(a)(6)

24.2 Comparable replacement dwelling.

24.2(a)(6)(ix)

None.

24.2(a)(7)

24.2 Contribute materially.

24.2(a)(8)

24.2 Decent, safe, and sanitary dwelling.

24.2(a)(8)(i)

24.2 Decent, safe, and sanitary dwelling, Para. (1).

24.2(a)(8)(ii)

None.

24.2(a)(8)(iii)

24.2 Decent, safe, and sanitary dwelling, Para. (2).

24.2(a)(8)(iv)

24.2 Decent, safe, and sanitary dwelling, Para. (3).

24.2(a)(8)(v)

24.2 Decent, safe, and sanitary dwelling, Para. (4), First sentence.

24.2(a)(8)(vi)

24.2 Decent, safe, and sanitary dwelling, Para. (4), All text after first sentence.

24.2(a)(8)(vii) and (viii)

24.2 Decent, safe, and sanitary dwelling, Paras. (5) and (6).

24.2(a)(9)

24.2 Displaced person.

24.2(a)(10)

24.2 Dwelling.

24.2(a)(11)

None.

24.2(a)(12)

24.206 Intro. para.

24.2(a)(12)(i) and (ii)

24.206(a) and (b).

24.2(a)(13)

24.2 Farm operation.

24.2(a)(14)

24.2 Federal financial assistance.

24.2(a)(15)

None.

24.2(a)(16)

24.2 Initiation of negotiations.

24.2(a)(17)

24.2 Lead Agency.

24.2(a)(18)

None.

24.2(a)(19)

24.2 Mortgage.

24.2(a)(20)

24.2 Nonprofit organization.

24.2(a)(21)

24.2 Owner of a dwelling.

24.2(a)(22)

24.2 Person.

24.2(a)(23)

24.2 Program or project.

24.2(a)(24)

24.2 Salvage value.

24.2(a)(25)

24.2 Small business.

24.2(a)(26)

24.2 State.

24.2(a)(27)

24.2 Tenant.

24.2(a)(28)

24.2 Uneconomical remnant.

24.2(a)(29)

24.2 Uniform Act.

24.2(a)(30)

24.2 Unlawful occupancy.

24.2(a)(31)

24.2 Utility costs.

24.2(a)(32)

24.2 Utility facility.

24.2(a)(33)

24.2 Utility relocation.

24.2(a)(34)

None.

24.2(b)

None.

24.8(m)

24.8(n).

24.8(n)

None.

24.101(b)

24.101(a) 2nd para.

24.101(b)(1)

24.101(a)(1).

24.101(b)(1)(i)

24.101(a)(1)(i).

24.101(b)(1)(ii)

24.101(a)(1)(ii).

24.101(b)(1)(iii)

24.101(a)(1)(iii).

24.101(b)(1)(iv)

24.101(a)(1)(iv).

24.101(b)(2)

24.101(a)(2).

24.101(b)(2)(i)

24.101(a)(2)(i).

24.101(b)(2)(ii)

24.101(a)(2)(ii).

24.101(b)(3)

24.101(a)(3).

24.101(b)(4)

24.101(a)(4).

24.101(b)(5)

24.101(a)(5).

24.101(c)

24.101(b).

24.101(d)

24.101(c).

24.102(n)

24.103(e).

24.103(a)(1)

24.103(a)(2).

24.103(a)(2)

24.103(a)(3).

24.103(a)(3)

24.103(a)(4).

24.103(a)(4)

24.103(a)(5).

24.103(a)(5)

24.103(a)(6).

24.203(d)

24.2 Notice of intent to acquire.

24.205(a)(4)

None.

24.205(a)(5)

24.205(a)(4).

24.205(c)(2)(i)(A) through (F)

None.

24.205(c)(2)(ii)(F)

None.

24.205(c)(2)(vi)

Added.

24.205(e)

24.205(c)(2)(vi) Redesignated and text unchanged.

24.206

24.206 Intro. para. and 24.206(c).

24.207(e)

24.207(g)

24.207(f) and (g)

Added.

24.301(a)

24.303(a) and 24.502(b).

24.301(a)(1)

24.502(a).

24.301(b)

None.

24.301(b)(1) and (2)

24.301 Intro. para.

24.301(b)(1)

24.303(a).

24.301(b)(2)(i)

24.302 First sentence.

24.301(b)(3)

None.

24.301(c)

None.

24.301(d)

24.303(a) and (c).

24.301(d)(1) and (2)

24.303(c).

24.301(f)

24.303(e).

24.301(f)(8) through (10)

24.502(b) through (b)(3)

24.301(g)(1)

24.301(a) and 24.303(a)(1).

24.301(g)(2)

24.301(b) and 24.303(a)(2).

24.301(g)(3)

24.301(a) and 24.303(a)(3).

24.301(g)(4)

24.301(d) and 24.303(a)(4).

24.301(g)(5)

24.301(e) and 24.303(a)(5).

24.301(g)(6)

24.301(f) and 24.303(a)(7).

24.301(g)(7)

24.301(g) and 24.303(a)(14).

24.301(g)(8)

24.502(b)(1).

24.301(g)(9)

24.502(b)(2).

24.301(g)(10)

24.502(b)(3).

24.301(g)(11)

24.303(a)(6).

24.301(g)(12)

24.303(a)(8).

24.301(g)(12)(i) through (iii)

24.303(a)(8)(i) through (iii).

24.301(g)(13) through (17)

24.303(a)(9) through (13).

24.301(g)(18)

None.

24.301(h)(1) through (11)

24.305(a) through (k).

24.301(i)

24.303(b).

24.301(j)

24.303(d).

24.303 Intro. para.

23.303 Intro. para.

24.303(a)

24.304(a)(4).

24.303(b)

24.304(a)(7) and (a)(9).

24.303(c)

24.304(a)(11).

24.304(a)(4)

24.304(a)(5).

24.304(a)(5)

24.304(a)(8).

24.304(a)(6)

24.304(a)(10).

24.304(a)(7)

24.304(a)(12).

24.304(b)

24.305(b).

24.305 and 24.305(a) and (b)

24.306 and 24.306(a) and (b).

24.305(b)(1) through (4)

24.306(b)(1) through (4).

24.305(c) through (e)

24.306(c) through (e).

24.306

24.307.

24.401(c)(2)

24.401(c)(4).

24.403(a)(5)

24.207(e).

24.403(a)(6)

24.207(f).

24.403(a)(7)

24.401(c)(2).

24.403(g)

24.401(c)(3).

24.501(a)

24.501 Intro. para.

24.501(b)

24.505(e).

24.502 Heading

24.503.

24.502(a)

24.503(a)(1).

24.502(a)(1)

24.503(a)(1).

24.502(a)(2) and (3)

24.503(a)(2) and (3).

24.502(b)

24.503(b).

24.502(b)(1)

None.

24.502(b)(2)

24.503(a)(3) and 503(b).

24.502(c)

24.505(a).

24.502(d)

24.503(a)(3)(iii).

24.502(e)

24.505(b)(2).

24.503

24.504.

Public Meetings

Public meetings will be held on January 15, 22, and 28, 2004. The January 15, 2004 meeting will be held in Washington, DC, United States Department of Transportation, 400 7th Street SW., Room 8236; the January 22, 2004 meeting will be held in Lakewood, CO, Zang Building, Conference Room 360, 555 Zang Street. The January 28, 2004 meeting will be held in Atlanta, GA, Atlanta Federal Center, Conference Room B, 61 Forsyth Street, SW., Atlanta, Georgia. Each meeting will be held from 10 am to 2 pm.

Rulemaking Analyses and Notices

All comments received before the close of business on the comment closing date indicated above will be considered and will be available for examination in the docket at the above address. Comments received after the comment closing date will be filed in the docket and will be considered to the extent practicable. In addition to late comments, the FHWA will also continue to file relevant information in the docket as it becomes available after the comment period closing date, and interested persons should continue to examine the docket for new material. A final rule may be published at any time after close of the comment period.

Executive Order 12866 (Regulatory Planning and Review) and DOT Regulatory Policies and Procedures

The FHWA has determined preliminarily that this action would not be a significant regulatory action within the meaning of Executive Order 12866, nor would it be significant within the meaning of Department of Transportation regulatory policies and procedures. It is anticipated that the economic impact of this rulemaking would be minimal.

This action proposes to update and streamline the Uniform Act regulation and does not propose any new initiatives. We have proposed only nominal adjustments to enhance services and payments to persons displaced by Federal and federally-assisted real property acquisitions. The costs of the increased benefits will continue to be funded through Federal and federally-assisted project funds. These proposed changes would assist the 18 Federal Agencies that acquire real property and several of these Agencies provided input in developing these proposals.

These proposed changes would not adversely affect, in a material way, any sector of the economy. These changes would assist Agencies in developing their programs that acquire real property by providing increased assistance, especially for businesses, farms and non-profit organizations. None of the proposed changes would materially alter the budgetary impact of any entitlements, grants, user fees, or loan programs. Consequently, a full regulatory evaluation is not required.

Regulatory Flexibility Act

In compliance with the Regulatory Flexibility Act (Pub. L. 96-354, 5 U.S.C. 601-612) the FHWA has evaluated the effects of this proposed action on small entities and has determined that the proposed action would not have a significant economic impact on a substantial number of small entities.

This action proposes to update the governmentwide regulation that provides assistance for persons, including small businesses, displaced by government acquisition of real property. One of the reasons for proposing the update is to increase assistance for displaced small businesses. We anticipate this proposal would have a positive impact on those relatively few small businesses that are affected by government acquisition of real property. Financial impacts on local governments are mitigated by the fact that any increased costs would accrue only on federally-assisted programs, which would include participation of Federal funds. For these reasons, the FHWA certifies that this action would not have a significant economic impact on a substantial number of small entities.

Unfunded Mandates Reform Act of 1995

This proposed rule would not impose unfunded mandates as defined by the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4, March 22, 1995, 109 Stat. 48). The proposed updates are applicable only on Federal and federally-assisted programs. This proposed rule will not result in the expenditure by State, local, and tribal governments, in the aggregate, or by the private sector, of $100 million or more in any one year (2 U.S.C. 1532).

Executive Order 13132 (Federalism)

This proposed action has been analyzed in accordance with the principles and criteria contained in Executive Order 13132, and the FHWA has determined that this proposed action would not have a substantial direct effect or sufficient federalism implications on States that would limit the policymaking discretion of the States. The FHWA has also determined that this proposed action would not preempt any State law or State regulation or affect the States' ability to discharge traditional State governmental functions.

Executive Order 12372 (Intergovernmental Review)

Catalog of Federal Domestic Assistance Program Number 20.205, Highway Planning and Construction. The regulations implementing Executive Order 12372 regarding intergovernmental consultation on Federal programs and activities apply to this program.

Paperwork Reduction Act

Under the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501,

et seq.

), Federal Agencies must obtain approval from the Office of Management and Budget (OMB) for each collection of information they conduct, sponsor, or require through regulations.

Most of the data FHWA proposes to collect is currently required under the

existing regulation. All information the FHWA proposes to collect for reporting purposes is statistical data from the 18 Federal Agencies engaged in land acquisition and displacement activities. The PRA was enacted to minimize paperwork burdens and recordkeeping requirements that the Federal government imposes on non-Federal entities. All the information this proposed rule proposes to collect comes from the 18 Federal Agencies that acquire real property for Federal and federally-assisted projects, and the information is generally already collected by those Agencies for their own internal purposes. Therefore, the FHWA has determined that this proposal does not contain collection of information requirements for the purposes of the PRA.

National Environmental Policy Act

The FHWA has analyzed this proposed action for the purpose of the National Environmental Policy Act of 1969 (42 U.S.C. 4321) and has determined that this proposed action would not have any effect on the quality of the environment.

Executive Order 12630 (Taking of Private Property)

This proposed action would not affect a taking of private property or otherwise have taking implications under Executive Order 12630, Government Actions and Interface with Constitutionally Protected Property Rights.

Executive Order 12988 (Civil Justice Reform)

This proposed action meets applicable standards in §§ 3(a) and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize litigation, eliminate ambiguity, and reduce burden.

Executive Order 13045 (Protection of Children)

We have analyzed this proposed action under Executive Order 13045, Protection of Children from Environmental Health Risks and Safety Risks. This proposed action does not involve an economically significant rule and does not concern an environmental risk to health or safety that may disproportionately affect children.

Executive Order 13175 (Tribal Consultation)

The FHWA has analyzed this proposal under Executive Order 13175, dated November 6, 2000, and believes that the proposed action will not have substantial direct effects on one or more Indian tribes; will not impose substantial direct compliance costs on Indian tribal governments; and will not preempt tribal law. Therefore, a tribal summary impact statement is not required.

Executive Order 13211 (Energy Effects)

We have analyzed this proposed rule under Executive Order 13211, Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use. We have determined that it is not a significant energy action under that order because it is not a significant regulatory action under Executive Order 12866 and is not likely to have a significant adverse effect on the supply, distribution, or use of energy. Therefore, a Statement of Energy Effects under Executive Order 13211 is not required.

Regulation Identification Number

A regulation identification number (RIN) is assigned to each regulatory action listed in the Unified Agenda of Federal Regulations. The Regulatory Information Service Center publishes the Unified Agenda in April and October of each year. The RIN contained in the heading of this document can be used to cross reference this action with the Unified Agenda.

List of Subjects in 49 CFR Part 24

Real property acquisition, Relocation assistance, Reporting and recordkeeping requirements and Transportation.

Issued on: December 5, 2003.

Mary E. Peters,

Federal Highway Administrator.

In consideration of the foregoing, the FHWA proposes to revise title 49 Code of Federal Regulations part 24, as set forth below:

PART 24—UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION FOR FEDERAL AND FEDERALLY-ASSISTED PROGRAMS

Subpart A—General

Sec.

24.1

Purpose.

24.2

Definitions and acronyms.

24.3

No duplication of payments.

24.4

Assurances, monitoring and corrective action.

24.5

Manner of notices.

24.6

Administration of jointly-funded projects.

24.7

Federal Agency waiver of regulations.

24.8

Compliance with other laws and regulations.

24.9

Recordkeeping and reports.

24.10

Appeals.

Subpart B—Real Property Acquisition

24.101

Applicability of acquisition requirements.

24.102

Basic acquisition policies.

24.103

Criteria for appraisals.

24.104

Review of appraisals.

24.105

Acquisition of tenant-owned improvements.

24.106

Expenses incidental to transfer of title to the Agency.

24.107

Certain litigation expenses.

24.108

Donations.

Subpart C—General Relocation Requirements

24.201

Purpose.

24.202

Applicability.

24.203

Relocation notices.

24.204

Availability of comparable replacement dwelling before displacement.

24.205

Relocation planning, advisory services, and coordination.

24.206

Eviction for cause.

24.207

General requirements—claims for relocation payments.

24.208

Aliens not lawfully present in the United States.

24.209

Relocation payments not considered as income.

Subpart D—Payments for Moving and Related Expenses

24.301

Payment for actual reasonable moving and related expenses.

24.302

Fixed payment for moving expenses—residential moves.

24.303

Related non-residential eligible expenses.

24.304

Reestablishment expenses—non-residential moves.

24.305

Fixed payment for moving expenses—non-residential moves.

24.306

Discretionary utility relocation payments.

Subpart E—Replacement Housing Payments

24.401

Replacement housing payment for 180-day homeowner-occupants.

24.402

Replacement housing payment for 90-day occupants.

24.403

Additional rules governing replacement housing payments.

24.404

Replacement housing of last resort.

Subpart F—Mobile Homes

24.501

Applicability.

24.502

Replacement housing payment for 180-day mobile homeowner displaced from a mobile home, and/or from the acquired mobile home site.

24.503

Replacement housing payment for 90-day mobile home occupants.

Subpart G—Certification

24.601

Purpose.

24.602

Certification application.

24.603

Monitoring and corrective action.

Appendix A to Part 24—Additional Information

Appendix B to Part 24—Statistical Report Form

Authority:

42 U.S.C. 4601

et seq.

; 49 CFR 1.48(cc).

Subpart A—General

§ 24.1

Purpose.

The purpose of this part is to promulgate rules to implement the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (42 U.S.C. 4601

et seq.

), in accordance with the following objectives:

(a) To ensure that owners of real property to be acquired for Federal and federally-assisted projects are treated fairly and consistently, to encourage and expedite acquisition by agreements with such owners, to minimize litigation and relieve congestion in the courts, and to promote public confidence in Federal and federally-assisted land acquisition programs;

(b) To ensure that persons displaced as a direct result of Federal or federally-assisted projects are treated fairly, consistently, and equitably so that such displaced persons will not suffer disproportionate injuries as a result of projects designed for the benefit of the public as a whole; and

(c) To ensure that Agencies implement these regulations in a manner that is efficient and cost effective.

§ 24.2

Definitions and acronyms.

(a)

Definitions.

Unless otherwise noted, the following terms used in this part shall be understood as defined in this section:

(1)

Agency.

The term

Agency

means the Federal Agency, State, State Agency, or person that acquires real property or displaces a person.

(i)

Acquiring Agency.

The term

acquiring Agency

means a State Agency, as defined in paragraph (a)(1)(iv) of this section, which has the authority to acquire property by eminent domain under State law, and a State Agency or person which does not have such authority.

(ii)

Displacing Agency.

The term

displacing Agency

means any Federal Agency carrying out a program or project, and any State, State Agency, or person carrying out a program or project with Federal financial assistance, which causes a person to be a displaced person.

(iii)

Federal Agency.

The term

Federal Agency

means any department, Agency, or instrumentality in the executive branch of the Government, any wholly owned government corporation, the Architect of the Capitol, the Federal Reserve Banks and branches thereof, and any person who has the authority to acquire property by eminent domain under Federal law.

(iv)

State Agency.

The term

State Agency

means any department, Agency or instrumentality of a State or of a political subdivision of a State, any department, Agency, or instrumentality of two or more States or of two or more political subdivisions of a State or States, and any person who has the authority to acquire property by eminent domain under State law.

(2)

Alien not lawfully present in the United States.

The phrase “alien not lawfully present in the United States” means an alien who is not “lawfully present” in the United States as defined in 8 CFR 103.12 and includes:

(i) An alien present in the United States who has not been admitted or paroled into the United States pursuant to the Immigration and Nationality Act (8 U.S.C. 1101

et seq.

) and whose stay in the United States has not been authorized by the United States Attorney General, and

(ii) An alien who is present in the United States after the expiration of the period of stay authorized by the United States Attorney General or who otherwise violates the terms and conditions of admission, parole or authorization to stay in the United States.

(3)

Appraisal.

The term

appraisal

means a written statement independently and impartially prepared by a qualified appraiser setting forth an opinion of defined value of an adequately described property as of a specific date, supported by the presentation and analysis of relevant market information.

(4)

Business.

The term

business

means any lawful activity, except a farm operation, that is conducted:

(i) Primarily for the purchase, sale, lease and/or rental of personal and/or real property, and/or for the manufacture, processing, and/or marketing of products, commodities, and/or any other personal property;

(ii) Primarily for the sale of services to the public;

(iii) Primarily for outdoor advertising display purposes, when the display must be moved as a result of the project; or

(iv) By a nonprofit organization that has established its nonprofit status under applicable Federal or State law.

(5)

Citizen.

The term

citizen

for purposes of this part, includes both citizens of the United States and noncitizen nationals.

(6)

Comparable replacement dwelling.

The term

comparable replacement dwelling

means a dwelling which is:

(i) Decent, safe and sanitary as described in paragraph (a)(8) of this section;

(ii) Functionally equivalent to the displacement dwelling. The term

functionally equivalent

means that it performs the same function, and provides the same utility. While a comparable replacement dwelling need not possess every feature of the displacement dwelling, the principal features must be present. Generally, functional equivalency is an objective standard, reflecting the range of purposes for which the various physical features of a dwelling may be used. However, in determining whether a replacement dwelling is functionally equivalent to the displacement dwelling, the Agency may consider reasonable trade-offs for specific features when the replacement unit is equal to or better than the displacement dwelling. (See appendix A to this part);

(iii) Adequate in size to accommodate the occupants;

(iv) In an area not subject to unreasonable adverse environmental conditions;

(v) In a location generally not less desirable than the location of the displaced person's dwelling with respect to public utilities and commercial and public facilities, and reasonably accessible to the person's place of employment;

(vi) On a site that is typical in size for residential development with normal site improvements, including customary landscaping. The site need not include special improvements such as outbuildings, swimming pools, or greenhouses. (See also § 24.403(a)(2));

(vii) Currently available to the displaced person on the private market except as provided in paragraph (a)(6)(ix) of this section. (

See

appendix A, section 24.2(a)(6)); and

(viii) Within the financial means of the displaced person eligible for a replacement housing payment. This means that after receipt of all acquisition and relocation payments under this regulation (including any amount deducted because of rent owed the Agency), the price or rent (including utilities), as appropriate, of the replacement dwelling offered as a comparable does not exceed the price or rent (including utilities) of the dwelling from which displaced.

(ix) For a person receiving government housing assistance before displacement, a dwelling that may reflect similar government housing assistance. In such cases any requirements of the government housing assistance program relating to the size of the replacement dwelling shall apply. (

See

appendix A, section 24.2(a)(6)).

(7)

Contribute materially.

The term

contribute materially

means that during

the 2 taxable years prior to the taxable year in which displacement occurs, or during such other period as the Agency determines to be more equitable, a business or farm operation:

(i) Had average annual gross receipts of at least $5,000; or

(ii) Had average annual net earnings of at least $1,000; or

(iii) Contributed at least 33 1/3 percent of the owner's or operator's average annual gross income from all sources.

(iv) If the application of the above criteria creates an inequity or hardship in any given case, the Agency may approve the use of other criteria as determined appropriate.

(8)

Decent, safe, and sanitary dwelling.

The term

decent, safe, and sanitary dwelling

means a dwelling which meets local housing and occupancy codes. However, any of the following standards which are not met by the local code shall apply unless waived for good cause by the Federal Agency funding the project. The dwelling shall:

(i) Be structurally sound, weathertight, and in good repair;

(ii) Have no deteriorated paint (or no deteriorated lead-based paint if paint testing is conducted) and have no dust-lead hazards, as these terms are defined at 24 CFR 35.110, unless the displaced person is either elderly or disabled and no child under 6 years of age will reside or be expected to reside in the unit, or the replacement dwelling unit is a zero-bedroom dwelling. A unit built on or after January 1, 1978, shall meet this requirement;

(iii) Contain a safe electrical wiring system adequate for lighting and other devices;

(iv) Contain a heating system capable of sustaining a healthful temperature (of approximately 70 degrees) for a displaced person, except in those areas where local climatic conditions do not require such a system;

(v) Be adequate in size with respect to the number of rooms and area of living space needed to accommodate the displaced person. The number of persons occupying each habitable room used for sleeping purposes shall not exceed that permitted by local housing codes or the policies of the displacing Agency. In addition, the displacing Agency shall follow the requirements for separate bedrooms for children of the opposite gender included in local housing codes or the policies of such Agencies;

(vi) There shall be a separate, well lighted and ventilated bathroom that provides privacy to the user and contains a sink, bathtub or shower stall, and a toilet, all in good working order and properly connected to appropriate sources of water and to a sewage drainage system. In the case of a housekeeping dwelling, there shall be a kitchen area that contains a fully usable sink, properly connected to potable hot and cold water and to a sewage drainage system, and adequate space and utility service connections for a stove and refrigerator;

(vii) Contains unobstructed egress to safe, open space at ground level; and

(viii) For a displaced person with a disability, be free of any barriers which would preclude reasonable ingress, egress, or use of the dwelling by such displaced person. (

See

appendix A, section 24.2(a)(8).)

(9)

Displaced person

—(i)

General.

The term

displaced person

means, except as provided in paragraph (a)(9)(ii) of this section, any person who moves from the real property or moves his or her personal property from the real property. (This includes a person who occupies the real property prior to its acquisition, but who does not meet the length of occupancy requirements of the Uniform Act as described at § 24.401(a) and § 24.402(a)):

(A) As a direct result of a written notice of intent to acquire (

see

section 24.203(d)), the initiation of negotiations for, or the acquisition of, such real property in whole or in part for a project;

(B) As a direct result of rehabilitation or demolition for a project; or

(C) As a direct result of a written notice of intent to acquire, or the acquisition, rehabilitation or demolition of, in whole or in part, other real property on which the person conducts a business or farm operation, for a project. However, eligibility for such person under this paragraph applies only for purposes of obtaining relocation assistance advisory services under § 24.205(c), and moving expenses under § 24.301, § 24.302 or § 24.303.

(ii)

Persons not displaced.

The following is a nonexclusive listing of persons who do not qualify as displaced persons under this part:

(A) A person who moves before the initiation of negotiations (see section 24.403(d)), unless the Agency determines that the person was displaced as a direct result of the program or project;

(B) A person who initially enters into occupancy of the property after the date of its acquisition for the project;

(C) A person who has occupied the property for the purpose of obtaining assistance under the Uniform Act;

(D) A person who is not required to relocate permanently as a direct result of a project. Such determination shall be made by the Agency in accordance with any guidelines established by the Federal Agency funding the project. (

See

appendix A, section 24.2(a)(9)(ii)(D));

(E) An owner-occupant who moves as a result of an acquisition of real property as described in § 24.101(b)(1) through (5), or as a result of the rehabilitation or demolition of the real property. (However, the displacement of a tenant as a direct result of any acquisition, rehabilitation or demolition for a Federal or federally-assisted project is subject to this part.);

(F) A person whom the Agency determines is not displaced as a direct result of a partial acquisition;

(G) A person who, after receiving a notice of relocation eligibility (described at § 24.203(b)), is notified in writing that he or she will not be displaced for a project. Such notice shall not be issued unless the person has not moved and the Agency agrees to reimburse the person for any expenses incurred to satisfy any binding contractual relocation obligations entered into after the effective date of the notice of relocation eligibility;

(H) An owner-occupant who conveys his or her property, as described in § 24.101(b)(1) through (5), after being informed in writing that if a mutually satisfactory agreement on terms of the conveyance cannot be reached, the Agency will not acquire the property. In such cases, however, any resulting displacement of a tenant is subject to the regulations in this part; or

(I) A person who retains the right of use and occupancy of the real property for life following its acquisition by the Agency;

(J) An owner who retains the right of use and occupancy of the real property for a fixed term after its acquisition by the Department of the Interior under Public Law 93-477, Appropriations for National Park System, or Public Law 93-303, Land and Water Conservation Fund, except that such owner remains a displaced person for purposes of subpart D of this part;

(K) A person who is determined to be in unlawful occupancy prior to or after the initiation of negotiations, or a person who has been evicted for cause, under applicable law, as provided for in § 24.206. However, advisory assistance may be provided to unlawful occupants at the option of the Agency in order to facilitate the project; or

(L) A person who is not lawfully present in the United States and who has been determined to be ineligible for relocation assistance in accordance with § 24.208.

(10)

Dwelling.

The term

dwelling

means the place of permanent or customary and usual residence of a person, according to local custom or law, including a single family house; a single family unit in a two-family, multi-family, or multi-purpose property; a unit of a condominium or cooperative housing project; a non-housekeeping unit; a mobile home; or any other residential unit.

(11)

Dwelling site.

The term

dwelling site

means a typical site upon which a dwelling is located.

(12)

Eviction for cause.

The term

eviction for cause

means an eviction in conformance with applicable State and local requirements, provided:

(i) The eviction notice was received before or after the initiations of negotiations and as a result of that notice is later evicted; or

(ii) Eviction was for serious or repeated violations of material terms of the lease or occupancy agreement.

(13)

Farm operation.

The term

farm operation

means any activity conducted solely or primarily for the production of one or more agricultural products or commodities, including timber, for sale or home use, and customarily producing such products or commodities in sufficient quantity to be capable of contributing materially to the operator's support.

(14)

Federal financial assistance.

The term

Federal financial assistance

means a grant, loan, lease payments or contribution provided by the United States, except any Federal guarantee or insurance and any interest reduction payment to an individual in connection with the purchase and occupancy of a residence by that individual.

(15)

Household income.

The term

household income

means total gross income received for a 12 month period from all sources (earned and unearned) including, but not limited to wages, salary, child support, alimony, unemployment benefits, workers compensation social security, or the net income from a business. It does not include income received or earned by dependent children and full time students under 18 years of age. (See appendix A, section 24.2(a)(15) for examples of exclusions to income.)

(16)

Initiation of negotiations.

Unless a different action is specified in applicable Federal program regulations, the term

initiation of negotiations

means the following:

(i) Whenever the displacement results from the acquisition of the real property by a Federal Agency or State Agency, the

initiation of negotiations

means the delivery of the initial written offer of just compensation by the Agency to the owner or the owner's representative to purchase the real property for the project. However, if the Federal Agency or State Agency issues a notice of its intent to acquire the real property, and a person moves after that notice, but before delivery of the initial written purchase offer, the

initiation of negotiations

means the actual move of the person from the property.

(ii) Whenever the displacement is caused by rehabilitation, demolition or privately undertaken acquisition of the real property (and there is no related acquisition by a Federal Agency or a State Agency), the

initiation of negotiations

means the notice to the person that he or she will be displaced by the project or, if there is no notice, the actual move of the person from the property.

(iii) In the case of a permanent relocation to protect the public health and welfare, under the Comprehensive Environmental Response Compensation and Liability Act of 1980 (Public Law 96-510, or Superfund) the

initiation of negotiations

means the formal announcement of such relocation or the Federal or federally-coordinated health advisory where the Federal Government later decides to conduct a permanent relocation.

(iv) In the case of permanent relocation of a tenant as a result of an acquisition of real property described in § 24.101(b)(1) through (5), the initiation of negotiations means acceptance of the Agency's offer to purchase the real property.

(17)

Lead Agency.

The term

Lead Agency

means the Department of Transportation acting through the Federal Highway Administration.

(18)

Mobile home.

The term

mobile home

includes manufactured homes and recreational vehicles. (

See

appendix A, section 24.2(a)(18).)

(19)

Mortgage.

The term

mortgage

means such classes of liens as are commonly given to secure advances on, or the unpaid purchase price of, real property, under the laws of the State in which the real property is located, together with the credit instruments, if any, secured thereby.

(20)

Nonprofit organization.

The term

nonprofit organization

means an organization that is incorporated under the applicable laws of a State as a non-profit organization, and exempt from paying Federal income taxes under section 501 of the Internal Revenue Code (26 U.S.C. 501).

(21)

Owner of a dwelling.

The term owner of a dwelling means a person who is considered to have met the requirement to own a dwelling if the person purchases or holds any of the following interests in real property;

(i) Fee title, a life estate, a land contract, a 99 year lease, or a lease including any options for extension with at least 50 years to run from the date of acquisition; or

(ii) An interest in a cooperative housing project which includes the right to occupy a dwelling; or

(iii) A contract to purchase any of the interests or estates described in § 24.2(a)(1)(i) or (ii) of this section, or

(iv) Any other interest, including a partial interest, which in the judgment of the Agency warrants consideration as ownership.

(22)

Person.

The term

person

means any individual, family, partnership, corporation, or association.

(23)

Program or project.

The phrase

program or project

means any activity or series of activities undertaken by a Federal Agency or with Federal financial assistance received or anticipated in any phase of an undertaking in accordance with the Federal funding Agency guidelines.

(24)

Salvage value.

The term

salvage value

means the probable sale price of an item offered for sale to knowledgeable buyers with the requirement that it be removed from the property at a buyer's expense (

i.e.

, not eligible for relocation assistance). This includes items for re-use as well as items with components that can be re-used or recycled when there is no reasonable prospect for sale except on this basis.

(25)

Small business.

A

small business

is a business having not more than 500 employees working at the site being acquired or displaced by a program or project, which site is the location of economic activity. Sites occupied solely by outdoor advertising signs, displays, or devices do not qualify as a business for purposes of § 24.304.

(26)

State.

Any of the several States of the United States or the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, or a political subdivision of any of these jurisdictions.

(27)

Tenant.

The term

tenant

means a person who has the temporary use and occupancy of real property owned by another.

(28)

Uneconomic remnant.

The term

uneconomic remnant

means a parcel of real property in which the owner is left with an interest after the partial acquisition of the owner's property, and which the Agency has determined has little or no value or utility to the owner.

(29)

Uniform Act.

The term

Uniform Act

means the Uniform Relocation Assistance and Real Property

Acquisition Policies Act of 1970 (Public Law 91-646, 84 Stat. 1894; 42 U.S.C. 4601

et seq.

), and amendments thereto.

(30)

Unlawful occupant.

A person who occupies without property right, title or payment of rent or a person legally evicted, with no legal rights to occupy a property under State law. An Agency, at its discretion, may consider such person to be in lawful occupancy.

(31)

Utility costs.

The term

utility costs

means expenses for heat, lights, water and sewer.

(32)

Utility facility.

The term

utility facility

means any electric, gas, water, steam power, or materials transmission or distribution system; any transportation system; any communications system, including cable television; and any fixtures, equipment, or other property associated with the operation, maintenance, or repair of any such system. A utility facility may be publicly, privately, or cooperatively owned.

(33)

Utility relocation.

The term

utility relocation

means the adjustment of a utility facility required by the program or project undertaken by the displacing Agency. It includes removing and reinstalling the facility, including necessary temporary facilities; acquiring necessary right-of-way on a new location; moving, rearranging or changing the type of existing facilities; and taking any necessary safety and protective measures. It shall also mean constructing a replacement facility that has the functional equivalency of the existing facility and is necessary for the continued operation of the utility service, the project economy, or sequence of project construction.

(34)

Waiver valuation.

The term

waiver valuation

means the valuation process used and the product produced when the Agency determines that an appraisal is not required, pursuant to § 24.102(c)(2) appraisal waiver provisions.

(b)

Acronyms.

The following acronyms are commonly used in the implementation of programs subject to this part:

(1)

BCIS.

Bureau of Citizenship and Immigration Service.

(2)

FEMA.

Federal Emergency Management Agency.

(3)

FHA.

Federal Housing Administration.

(4)

FHWA.

Federal Highway Administration.

(5)

FIRREA.

Financial Institutions Reform, Recovery, and Enforcement Act of 1989.

(6)

HLR.

Housing of last resort.

(7)

HUD.

U. S. Department of Housing and Urban Development.

(8)

MIDP.

Mortgage interest differential payment.

(9)

RHP.

Replacement housing payment.

(10)

STURAA.

Surface Transportation and Uniform Relocation Act Amendments of 1987.

(11)

URA.

Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970.

(12)

USDOT.

U.S. Department of Transportation.

(13)

USPAP.

Uniform Standards of Professional Appraisal Practice.

§ 24.3

No duplication of payments.

No person shall receive any payment under this part if that person receives a payment under Federal, State, local law, or insurance proceeds which is determined by the Agency to have the same purpose and effect as such payment under this part. (See appendix A, section 24.3.)

§ 24.4

Assurances, monitoring and corrective action.

(a)

Assurances.

(1) Before a Federal Agency may approve any grant to, or contract, or agreement with, a State Agency under which Federal financial assistance will be made available for a project which results in real property acquisition or displacement that is subject to the Uniform Act, the State Agency must provide appropriate assurances that it will comply with the Uniform Act and this part. A displacing Agency's assurances shall be in accordance with section 210 of the Uniform Act. An acquiring Agency's assurances shall be in accordance with section 305 of the Uniform Act and must contain specific reference to any State law which the Agency believes provides an exception to sections 301 or 302 of the Uniform Act. If, in the judgment of the Federal Agency, Uniform Act compliance will be served, a State Agency may provide these assurances at one time to cover all subsequent federally-assisted programs or projects. An Agency, which both acquires real property and displaces persons, may combine its section 210 and section 305 assurances in one document.

(2) If a Federal Agency or State Agency provides Federal financial assistance to a “person” causing displacement, such Federal or State Agency is responsible for ensuring compliance with the requirements of this part, notwithstanding the person's contractual obligation to the grantee to comply.

(3) Any Agency or person solely acquiring property pursuant to the provisions of § 24.101(b)(1) through (5) need not provide the assurances required by § 24.4(a)(1) or (2).

(4) As an alternative to the assurance requirement described in paragraph (a)(1) of this section, a Federal Agency may provide Federal financial assistance to a State Agency after it has accepted a certification by such State Agency in accordance with the requirements in subpart G of this part.

(b)

Monitoring and corrective action.

The Federal Agency will monitor compliance with this part, and the State Agency shall take whatever corrective action is necessary to comply with the Uniform Act and this part. The Federal Agency may also apply sanctions in accordance with applicable program regulations. (Also see § 24.603 of this part.)

(c)

Prevention of fraud, waste, and mismanagement.

The Agency shall take appropriate measures to carry out this part in a manner that minimizes fraud, waste, and mismanagement.

§ 24.5

Manner of notices.

Each notice which the Agency is required to provide to a property owner or occupant under this part, except the notice described at § 24.102(b), shall be personally served or sent by certified or registered first-class mail, return receipt requested, and documented in Agency files. Each notice shall be written in plain, understandable language. Persons who are unable to read and understand the notice must be provided with appropriate translation and counseling. Each notice shall indicate the name and telephone number of a person who may be contacted for answers to questions or other needed help.

§ 24.6

Administration of jointly-funded projects.

Whenever two or more Federal Agencies provide financial assistance to an Agency or Agencies, other than a Federal Agency, to carry out functionally or geographically related activities, which will result in the acquisition of property or the displacement of a person, the Federal Agencies may by agreement designate one such Agency as the cognizant Federal Agency. In the unlikely event that agreement among the Agencies cannot be reached as to which Agency shall be the cognizant Federal Agency, then the Lead Agency shall designate one of such Agencies to assume the cognizant role. At a minimum, the agreement shall set forth the federally-assisted activities which are subject to its terms and cite any policies and procedures, in addition to this part, that are applicable to the activities under the agreement. Under the agreement, the

cognizant Federal Agency shall assure that the project is in compliance with the provisions of the Uniform Act and this part. All federally-assisted activities under the agreement shall be deemed a project for the purposes of this part.

§ 24.7

Federal Agency waiver of regulations.

The Federal Agency funding the project may waive any requirement in this part not required by law if it determines that the waiver does not reduce any assistance or protection provided to an owner or displaced person under this part. Any request for a waiver shall be justified on a case-by-case basis.

§ 24.8

Compliance with other laws and regulations.

The implementation of this part must be in compliance with other applicable Federal laws and implementing regulations, including, but not limited to, the following:

(a) Section I of the Civil Rights Act of 1866 (42 U.S.C. 1982

et seq.

).

(b) Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d

et seq.

).

(c) Title VIII of the Civil Rights Act of 1968 (42 U.S.C. 3601

et seq.

), as amended.

(d) The National Environmental Policy Act of 1969 (42 U.S.C. 4321

et seq.

).

(e) Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 790

et seq.

).

(f) The Flood Disaster Protection Act of 1973 (Public Law 93-234).

(g) The Age Discrimination Act of 1975 (42 U.S.C. 6101

et seq.

).

(h) Executive Order 11063—Equal Opportunity and Housing, revised by Executive Order 12892.

(i) Executive Order 11246—Equal Employment Opportunity, as amended.

(j) Executive Order 11625—Minority Business Enterprise.

(k) Executive Orders 11988—Floodplain Management, and 11990—Protection of Wetlands.

(l) Executive Order 12250—Leadership and Coordination of Non-Discrimination Laws.

(m) Executive Order 12630—Governmental Actions and Interference with Constitutionally Protected Property Rights.

(n) Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121

et seq.

)

§ 24.9

Recordkeeping and reports.

(a)

Records.

The Agency shall maintain adequate records of its acquisition and displacement activities in sufficient detail to demonstrate compliance with this part. These records shall be retained for at least 3 years after each owner of a property and each person displaced from the property receives the final payment to which he or she is entitled under this part, or in accordance with the applicable regulations of the Federal funding Agency, whichever is later.

(b)

Confidentiality of records.

Records maintained by an Agency in accordance with this part are confidential regarding their use as public information, unless applicable law provides otherwise.

(c)

Reports.

(1) The Agency shall submit a report of its real property acquisition and displacement activities under this part if required by the Federal Agency funding the project. The report shall be prepared in the format contained in appendix B of this part.

(2) Federal Agencies shall submit an annual report summarizing their real property acquisition and displacement activities under this part to the Lead Agency. The report may be prepared and submitted using the format contained in appendix B of this part.

§ 24.10

Appeals.

(a)

General.

The Agency shall promptly review appeals in accordance with the requirements of applicable law and this part.

(b)

Actions which may be appealed.

Any aggrieved person may file a written appeal with the Agency in any case in which the person believes that the Agency has failed to properly consider the person's application for assistance under this part. Such assistance may include, but is not limited to, the person's eligibility for, or the amount of, a payment required under § 24.106 or § 24.107, or a relocation payment required under this part. The Agency shall consider a written appeal regardless of form.

(c)

Time limit for initiating appeal.

The Agency may set a reasonable time limit for a person to file an appeal. The time limit shall not be less than 60 days after the person receives written notification of the Agency's determination on the person's claim.

(d)

Right to representation.

A person has a right to be represented by legal counsel or other representative in connection with his or her appeal, but solely at the person's own expense.

(e)

Review of files by person making appeal.

The Agency shall permit a person to inspect and copy all materials pertinent to his or her appeal, except materials which are classified as confidential by the Agency. The Agency may, however, impose reasonable conditions on the person's right to inspect, consistent with applicable laws.

(f)

Scope of review of appeal.

In deciding an appeal, the Agency shall consider all pertinent justification and other material submitted by the person, and all other available information that is needed to ensure a fair and full review of the appeal.

(g)

Determination and notification after appeal.

Promptly after receipt of all information submitted by a person in support of an appeal, the Agency shall make a written determination on the appeal, including an explanation of the basis on which the decision was made, and furnish the person a copy. If the full relief requested is not granted, the Agency shall advise the person of his or her right to seek judicial review of the Agency decision.

(h)

Agency official to review appeal.

The Agency official conducting the review of the appeal shall be either the head of the Agency or his or her authorized designee. However, the official shall not have been directly involved in the action appealed.

Subpart B—Real Property Acquisition

§ 24.101

Applicability of acquisition requirements.

(a)

Federal program or project.

The requirements of this subpart apply to any acquisition of real property for a direct Federal program or project, except acquisition for a program or project which is undertaken by the Tennessee Valley Authority or the Rural Electrification Administration. (

See

appendix A, section 24.101(a).)

(b)

Programs and projects receiving Federal financial assistance.

The requirements of this subpart apply to any acquisition of real property for programs and projects where there is Federal financial assistance in any part of project costs except for the acquisitions described in paragraphs (b)(1) through (5) of this section. The relocation assistance provisions in this part are applicable to any tenants that must move as a result of an acquisition described in paragraphs (b)(1) through (5) of this section. Such tenants are considered displaced persons. (

See

§ 24.2(a)(9))

(1) Acquisitions that meet all of the conditions in paragraphs (b)(1)(i) through (iv) of this section.

(i) No specific site or property needs to be acquired, although the Agency may limit its search for alternative sites to a general geographic area. Where an Agency wishes to purchase more than one site within a general geographic area on this basis, all owners are to be treated similarly. (

See

appendix A, section 24.101(b)(1)(i).)

(ii) The property to be acquired is not part of an intended, planned, or designated project area where all or substantially all of the property within the area is to be acquired within specific time limits.

(iii) The Agency will not acquire the property in the event negotiations fail to result in an agreement, and the owner is so informed in writing.

(iv) The Agency will inform the owner in writing of what it believes to be the market value of the property. (

See

appendix A, section 24.101(b)(1)(iv) & (2)(ii).)

(2) Acquisitions for programs or projects undertaken by an Agency or person that receives Federal financial assistance but does not have authority to acquire property by eminent domain, provided that such Agency or person shall:

(i) Prior to making an offer for the property, advise the owner in writing that it is unable to acquire the property in the event negotiations fail to result in an amicable agreement; and

(ii) Inform the owner in writing of what it believes to be market value of the property. (

See

appendix A, section 24.101(b)(1)(iv) & (2)(ii).)

(3) The acquisition of real property from a Federal Agency, State, or State Agency, if the Agency desiring to make the purchase does not have authority to acquire the property through condemnation.

(4) The acquisition of real property by a cooperative from a person who, as a condition of membership in the cooperative, has agreed to provide without charge any real property that is needed by the cooperative.

(5) Acquisition for a program or project which receives Federal financial assistance from the Tennessee Valley Authority or the Rural Electrification Administration.

(c)

Less-than-full-fee interest in real property.

The provisions of this subpart apply when acquiring fee title subject to retention of a life estate or a life use; to acquisition by leasing where the lease term, including option(s) for extension, is 50 years or more; and to the acquisition of permanent easements. (

See

appendix A, section 24.101(c).)

(d)

Federally-assisted projects.

For projects receiving Federal financial assistance, the provisions of §§ 24.102, 24.103, 24.104, and 24.105 apply to the greatest extent practicable under State law. (

See

section 24.4(a).)

§ 24.102

Basic acquisition policies.

(a)

Expeditious acquisition.

The Agency shall make every reasonable effort to acquire the real property expeditiously by negotiation.

(b)

Notice to owner.

As soon as feasible, the Agency shall notify the owner in writing of the Agency's interest in acquiring the real property and the basic protections provided to the owner by law and this part. (

See also

§ 24.203.)

(c)

Appraisal, waiver thereof, and invitation to owner.

(1) Before the initiation of negotiations, the real property to be acquired shall be appraised, except as provided in § 24.102(c)(2), and the appraiser shall provide the owner, or the owner's designated representative, an opportunity to accompany the appraiser during the appraiser's inspection of the property.

(2) An appraisal is not required if:

(i) The owner is donating the property and releases the Agency from its obligation to appraise the property, or

(ii) The Agency determines that an appraisal is unnecessary because the valuation problem is uncomplicated and the market value is estimated at $10,000 or less, based on a review of available data. When an appraisal is determined to be unnecessary, the Agency shall prepare a waiver valuation. The Federal Agency funding the project may, on a case-by-case basis, approve exceeding the $10,000 threshold, up to a maximum of $25,000, if the Agency acquiring the real property offers the property owner the option of having the Agency appraise the property. If the property owner elects to have the Agency appraise the property, the Agency shall obtain an appraisal and not use procedures described in this paragraph. (

See

appendix A, section 24.102(c)(2).)

(d)

Establishment and offer of just compensation.

Before the initiation of negotiations, the Agency shall establish an amount which it believes is just compensation for the real property. The amount shall not be less than the approved appraisal of the market value of the property, taking into account the value of allowable damages or benefits to any remaining property. The amount believed to be just compensation must be established by an Agency official. (

See also

§ 24.104.) Promptly thereafter, the Agency shall make a written offer to the owner to acquire the property for the full amount believed to be just compensation. (

See

appendix A, section 24.102(d).)

(e)

Summary statement.

Along with the initial written purchase offer, the Agency shall provide the owner a written statement of the basis for the offer of just compensation, which shall include:

(1) A statement of the amount offered as just compensation. In the case of a partial acquisition, the compensation for the real property to be acquired and the compensation for damages, if any, to the remaining real property shall be stated separately.

(2) A description and location identification of the real property and the interest in the real property to be acquired.

(3) An identification of the buildings, structures, and other improvements (including removable building equipment and trade fixtures) which are included as part of the offer of just compensation. Where appropriate, the statement shall identify any other separately held ownership interest in the property,

e.g.

, a tenant-owned improvement, and indicate that such interest is not covered by this offer.

(f)

Basic negotiation procedures.

The Agency shall make reasonable efforts to contact the owner or the owner's representative and discuss its offer to purchase the property, including the basis for the offer of just compensation and explain its acquisition policies and procedures, including its payment of incidental expenses in accordance with § 24.106. The owner shall be given reasonable opportunity to consider the offer and present material which the owner believes is relevant to determining the value of the property and to suggest modification in the proposed terms and conditions of the purchase. The Agency shall consider the owner's presentation. (

See

appendix A, section 24.102(f).)

(g)

Updating offer of just compensation.

If the information presented by the owner, or a material change in the character or condition of the property, indicates the need for new appraisal information, or if a significant delay has occurred since the time of the appraisal(s) of the property, the Agency shall have the appraisal(s) updated or obtain a new appraisal(s). If the latest appraisal information indicates that a change in the purchase offer is warranted, the Agency shall promptly reestablish just compensation and offer that amount to the owner in writing.

(h)

Coercive action.

The Agency shall not advance the time of condemnation, or defer negotiations or condemnation or the deposit of funds with the court, or take any other coercive action in order to induce an agreement on the price to be paid for the property.

(i)

Administrative settlement.

The purchase price for the property may exceed the amount offered as just compensation when reasonable efforts to negotiate an agreement at that amount have failed and an authorized Agency official approves such administrative settlement as being reasonable, prudent, and in the public interest. When Federal

funds pay for or participate in acquisition costs, a written justification shall be prepared, which states what available information, including trial risks, supports such a settlement. (

See

appendix A, section 24.102(i).)

(j)

Payment before taking possession.

Before requiring the owner to surrender possession of the real property, the Agency shall pay the agreed purchase price to the owner, or in the case of a condemnation, deposit with the court, for the benefit of the owner, an amount not less than the Agency's approved appraisal of the market value of such property, or the court award of compensation in the condemnation proceeding for the property. In exceptional circumstances, with the prior approval of the owner, the Agency may obtain a right-of-entry for construction purposes before making payment available to an owner. (

See

appendix A, section 24.102(j).)

(k)

Uneconomic remnant.

If the acquisition of only a portion of a property would leave the owner with an uneconomic remnant, the Agency shall offer to acquire the uneconomic remnant along with the portion of the property needed for the project. (

See

section 24.2(a)(28).)

(l)

Inverse condemnation.

If the Agency intends to acquire any interest in real property by exercise of the power of eminent domain, it shall institute formal condemnation proceedings and not intentionally make it necessary for the owner to institute legal proceedings to prove the fact of the taking of the real property.

(m)

Fair rental.

If the Agency permits a former owner or tenant to occupy the real property after acquisition for a short term or a period, subject to termination by the Agency on short notice, the rent shall not exceed the fair market rent for such occupancy. (

See

appendix A, section 24.102(m).)

(n)

Conflict of interest.

No appraiser, review appraiser or other person making an appraisal or a waiver valuation under § 24.102(c)(2) shall have any interest, direct or indirect, in the real property being valued for the Agency that would in any way conflict with the preparation of the appraisal, the waiver valuation or the review of the appraisal. Compensation for making an appraisal or a waiver valuation shall not be based on the amount of the valuation estimate. No person functioning as a negotiator for a project or program shall supervise or formally evaluate the performance of any appraiser or review appraiser performing appraisal or appraisal review work for that project or program, except that, for a program or project receiving Federal financial assistance, the Federal funding agency may waive this requirement if it determines it would create a hardship for the Agency. No appraiser or other person making an appraisal or a waiver valuation shall act as a negotiator for real property for which that person has made an appraisal or a waiver valuation, except that the Agency may permit such person to negotiate an acquisition where the offer to acquire the property is $10,000, or less. (

See

appendix A, section 24.102(n).)

§ 24.103

Criteria for appraisals.

(a)

Appraisal requirements.

These regulations set forth the requirements for real property acquisition appraisals on Federal and federally-assisted programs. The format and level of documentation for an appraisal depend on the complexity of the appraisal problem. An appraisal must contain a scope of work statement and sufficient documentation, including valuation data and the appraiser's analysis of that data, to support his or her opinion of value. The Agency shall develop minimum requirements for simple appraisals consistent with established and commonly accepted Federal and federally-assisted program appraisal practice for those acquisitions, which, by virtue of their low value or simplicity, do not require the in-depth analysis and presentation necessary in a detailed appraisal. A detailed appraisal shall be prepared for all other acquisitions. A detailed appraisal shall reflect established and commonly accepted Federal and federally-assisted program appraisal practices, including, to the extent appropriate, the Uniform Appraisal Standards for Federal Land Acquisition.

1

At a minimum, a detailed appraisal shall contain the following items: (

See

appendix A, sections 24.103 and 24.103(a).)

1

The “Uniform Appraisal Standards for Federal Land Acquisitions” is published by the Interagency Land Acquisition Conference. It is a compendium of Federal eminent domain appraisal law, both case and statute, regulations and practices. It is available at

http://www.usdoj.gov/enrd/land-ack/toc.htm

or in soft cover format from the Appraisal Institute at

http://www.appraisalinstitute.org/ecom/publications/Items.asp?ID=3

or call 888-570-4545.

(1) An adequate description of the physical characteristics of the property being appraised (and, in the case of a partial acquisition, an adequate description of the remaining property), a statement of the known and observed encumbrances, if any, title information, location, zoning, present use, an analysis of highest and best use, and at least a 5 year sales history of the property.

(2) All relevant and reliable approaches to value consistent with established Federal and federally-assisted program appraisal practices. If the appraiser uses more than one approach, there shall be an analysis and reconciliation of approaches to value used that is sufficient to support the appraiser's opinion of value. (

See

appendix A, section 24.103(a).)

(3) A description of comparable sales, including a description of all relevant physical, legal, and economic factors such as parties to the transaction, source and method of financing, and verification by a party involved in the transaction.

(4) A statement of the value of the real property to be acquired and, for a partial acquisition, a statement of the value of the damages and benefits, if any, to the remaining real property, where appropriate.

(5) The effective date of valuation, date of appraisal, signature, and certification of the appraiser.

(b)

Influence of the project on just compensation.

The appraiser shall disregard any decrease or increase in the market value of the real property caused by the project for which the property is to be acquired, or by the likelihood that the property would be acquired for the project, other than that due to physical deterioration within the reasonable control of the owner. (

See

appendix A, section 24.103(b).)

(c)

Owner retention of improvements.

If the owner of a real property improvement is permitted to retain it for removal from the project site, the amount to be offered for the interest in the real property to be acquired shall be not less than the difference between the amount determined to be just compensation for the owner's entire interest in the real property and the salvage value (defined at § 24.2(a)(24)) of the retained improvement.

(d)

Qualifications of appraisers and review appraisers.

(1) The Agency shall establish criteria for determining the minimum qualifications of appraisers and review appraisers. Qualifications shall be consistent with the level of difficulty of the assignment. The Agency shall review the experience, education, training, and other qualifications of appraisers and review appraisers and use only those determined to be qualified. (

See

appendix A, section 24.103(d)(1).)

(2) If the appraisal assignment requires the preparation of a detailed appraisal pursuant to § 24.103(a), and the Agency uses a contract (fee) appraiser to perform the appraisal, such appraiser shall be certified in accordance with title XI of the Financial Institutions Reform, Recovery, and

Enforcement Act of 1989 (FIRREA) (12 U.S.C. 3331

et seq.

).

§ 24.104

Review of appraisals.

The Agency shall have an appraisal review process and, at a minimum:

(a) A qualified review appraiser (

See

§ 24.103(d)(2) and appendix A, section 24.104) shall examine the presentation and analysis of market information in all appraisals to assure that they meet the definition of appraisal found in 49 CFR 24.2(a)(3), appraisal requirements found in 49 CFR 24.103 and other applicable requirements, including, to the extent appropriate, the Uniform Appraisal Standards for Federal Land Acquisition, and support the appraiser's opinion of value. The level of review analysis and reporting depends on the complexity of the appraisal problem. As needed, the review appraiser shall, prior to acceptance, seek necessary corrections or revisions. The review appraiser shall identify each appraisal report as approved (as the basis for the establishment of the amount believed to be just compensation), accepted (meets all requirements, but not selected as approved), or rejected. If authorized by the Agency to do so, the review appraiser shall also develop and report the amount believed to be just compensation. (

See

appendix A, section 24.104(a).)

(b) If the review appraiser is unable to approve an appraisal as an adequate basis for the establishment of the offer of just compensation, and it is determined by the acquiring Agency that it is not practical to obtain an additional appraisal, the review appraiser may develop appraisal documentation in accordance with § 24.103 to support an approved or recommended value. (

See

appendix A, section 24.104(b).)

(c) The review appraiser shall prepare a written report that identifies the appraisal reports reviewed and documents the findings and conclusions arrived at during the review of the appraisal(s). Any damages or benefits to any remaining property shall be identified in the review appraiser's report. The review appraiser shall also prepare a signed certification that states the parameters of the review. The certification shall state the approved value, and, if the review appraiser is authorized to do so, the amount believed to be just compensation for the acquisition. (

See

appendix A, section 24.104(c).)

§ 24.105

Acquisition of tenant-owned improvements.

(a)

Acquisition of improvements.

When acquiring any interest in real property, the Agency shall offer to acquire at least an equal interest in all buildings, structures, or other improvements located upon the real property to be acquired, which it requires to be removed or which it determines will be adversely affected by the use to which such real property will be put. This shall include any improvement of a tenant-owner who has the right or obligation to remove the improvement at the expiration of the lease term.

(b)

Improvements considered to be real property.

Any building, structure, or other improvement, which would be considered to be real property if owned by the owner of the real property on which it is located, shall be considered to be real property for purposes of this subpart.

(c)

Appraisal and establishment of just compensation for tenant-owned improvements.

Just compensation for a tenant-owned improvement is the amount which the improvement contributes to the market value of the whole property or its salvage value, whichever is greater. (Salvage value is defined at § 24.2(a)(24).)

(d)

Special conditions for tenant owned improvements.

No payment shall be made to a tenant-owner for any real property improvement unless:

(1) The tenant-owner, in consideration for the payment, assigns, transfers, and releases to the Agency all of the tenant-owner's right, title, and interest in the improvement; and

(2) The owner of the real property on which the improvement is located disclaims all interest in the improvement; and

(3) The payment does not result in the duplication of any compensation otherwise authorized by law.

(e)

Alternative compensation.

Nothing in this subpart shall be construed to deprive the tenant-owner of any right to reject payment under this subpart and to obtain payment for such property interests in accordance with other applicable law.

§ 24.106

Expenses incidental to transfer of title to the Agency.

(a) The owner of the real property shall be reimbursed for all reasonable expenses the owner necessarily incurred for:

(1) Recording fees, transfer taxes, documentary stamps, evidence of title, boundary surveys, legal descriptions of the real property, and similar expenses incidental to conveying the real property to the Agency. However, the Agency is not required to pay costs solely required to perfect the owner's title to the real property;

(2) Penalty costs and other charges for prepayment of any preexisting recorded mortgage entered into in good faith encumbering the real property; and

(3) The pro rata portion of any prepaid real property taxes which are allocable to the period after the Agency obtains title to the property or effective possession of it, whichever is earlier.

(b) Whenever feasible, the Agency shall pay these costs directly so that the owner will not have to pay such costs and then seek reimbursement from the Agency. (

See

appendix A, section 24.106(b).)

§ 24.107

Certain litigation expenses.

The owner of the real property shall be reimbursed for any reasonable expenses, including reasonable attorney, appraisal, and engineering fees, which the owner actually incurred because of a condemnation proceeding, if:

(a) The final judgment of the court is that the Agency cannot acquire the real property by condemnation; or

(b) The condemnation proceeding is abandoned by the Agency

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