CC - 1974-14 - Implementing the Relocation Assistance lawRESOLUTION NO. 7.4-14
A RESOLUTION OF THE CITY OF ROSEMEAD
ADOPTING GUIDELINES REGULATIONS AND
PROCEDURES IMPLEMENTING THE RELOCATION
ASSISTANCE LAW
THE CITY COUNCIL'OF•'THE CITY OF ROSEMEAD HEREBY RESOLVES
AS FOLLOWS:
Section 1. Pursuant''to Government Code Section
7267.8, the "Guidelines for Issuance-of Regulations and
Procedures Implementing the Relocation Assistance Law", a
copy of which is attached hereto and incorporated herein
by reference,.are hereby adopt6d.:.<
Section 2. As used in the attached-Guidelines,
the terms "public entity", "public agency" and "displacing
agency" shall be deemed to refer'to the City.of Rosemead
and the term "head" of any of the above terms shall be
deemed to refer to the City Manager of the ;City of Rosemead.
PASSED,'APPROVED and ADOPTED thisa6 day of
1974.
MAYOR'
ATTEST:
CI Y. CLERK '
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APPROVED
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STATE OF CALIFORNIA ~
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GUIDELINES FOR ISSUANCE OF REGULATIONS & PROCEED)
IMPL
EMENTING THE RELOCATION ASSISTANCE LAW
GOVERNMENT CODE, CHAPTER 16, SECTIONS 7260 et.seq.
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CONTENTS
Sect
- i
ion Title
1
General
2
Assurances
3
Moving Expense Payments
4
Payments in-lieu of Moving
5
Replacement Housing Payment, Owners
6
Replacement Housing Payment, Tenants
7
Advisory_ Services
I
8
Grievance Procedure
9
Property Acquisition Policy
10
Definitions
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11
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Cross References
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A~ 7'f-01- ' •
STATE OF. CALIFORNIA
GUIDELINES FOR ISSUANCE OF.REGULATIONS & PROCEDURES
IMPLEMENTING THE RELOCATION ASSISTANCE LAW .
GOVERNMENT CODE, CHAPTER 16, SECTIONS 7260 et.seq.
t 1 - GENERAL
1 i
1.1 Purpose and coverage.
a. These guidelines are to assist public entities in the
development of regulations and procedures implementing Chapter 16,
Sections 7260 et. seq. of the Government Code, Relocation Assis-
tance, hereinafter referred to as the Act, to assure a uniform
policy for the fair and equitable treatment of.persons displaced
by programs of public entities. All references in these Guidelines
to sections or subsections are references to sections or subsections
of the Act.
b. In the event of any conflict between these guidelines and
the provisions of the Act, or any other applicable law, the statu-
tory provisions are controlling.
c. It is the intent of the guidelines to establish minimum
requirements for relocation assistance payments by public •entities.
These guidelines shall not be construed to limit any other authority
which a public entity may have to make other relocation assistance
payments, or to make any relocation assistance payment in an amount
which exceeds the maximum amount for such payment authorized by this
chapter. ;
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d. Anv public entity may, also, make any other relocation assis-
tance payment, or may make any relocation assistance payment in an amount
which exceeds the maximum amount for such payment authorized by
these guidelines, if the making of such payment, or the payment in '
such amount, is required under federal law to secure federal funds.
1.2 General considerations.
a. In developing regulations and procedures under the Act and
these Guidelines, agencies should consider:
(1) House Report No. 91-1656 of December 2, 1970, A Report
to accompany 5.1, Co=Lmittee on Public Works, House of Representatives,
Dist Congress, 2nd Session.
(2) Provisions of other applicable law, including Title VI
of the Civil Rights Act of 1964, and Title VIII of the Civil Rights
Act of 1968.
(3) Applicable state laws and good faith and reasonableness.
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b. Agencies should instruct officials responsible for pro-
grams under this Act that:
C (1) A written notice of displacement must be given by
the agency to each individual, family, business, or farm operation
to be displaced. Such notice shall be served personally or by
certified (or reigstered) first-class mail.
(2) In order to qualify for benefits under the Act as
a displaced person, either of two conditions must be fulfilled:
(a)' The person must have moved (or moved his per-
sonal property) as a result of the receipt of a written notice
to vacate which'notice may have been given before or after initi-
ation of negotiations for acquisition of the property. (when
negotiations are initiated prior to issuance of a written notice,
all persons contacted by the negotiating agency should be advised
that the benefits of the Act ,are available only when the person
moves subsequent to receipt of a written notice); or
(b) The subject real property must in fact have
been acquired, in whole or in part, and the person must have
moved as a result of its acquision.
(3) In addition, certain of the benefits provided by the
Act are available as follows:
(a) whenever the acquisition of, or notice to move
from, real Property used for a business or farm operation causes .
C any person to move from other real property used for his dwelling,
or to move his personal property from such other real property,
such person shall receive the benefits provided by Sections 7262(a)
and (b) and 7261.
(b) If the head of the displacing agency determines
that any person occupying property immediately adjacent to the
real property acquired, is caused substantial economic injury
because of the acquisition, he may offer such person relocation
advisory services under Section 7261.
(4) For real property acquisitions under State law, con-
tracts or options to purchase real property shall-not incorporate
provisions for making payments for relocation costs and related
items in the Act. Appraisers shall not give consideration to or
include in their.real property aonra sals any allowances for the
bene-its provided by t%;a_ Act- In the evert o'= conGemnatlon ii_th
a declaration of taking, the estimated compensation shall be deter-
mined solely on the basis of the appraised value of the real property
with no consideration being given to or reference contained therein
to the payments to be made under the Act.
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(5) Agency regulations should provide that applications'
for benefits under the Act are to be.made within eighteen months
from the date on which the displaced person moves from the real
property acquired or to be acquired; or the date on which the dis-
placing agency makes final payment of all costs of that real
property, whichever is the later date. The head of an-agency
may extend this period upon a proper showing of good cause..
(6) The provisions of the Act apply to the acquisition
of all real property for, and the relocation of all persons dis-,
placed by projects or programs undertaken by a public entity re-
gardless of the source of funds.
1.3 Agencies' regulations and procedures. All. public entities
responsible for land acquisition programs or projects must revise
promptly their regulations and procedures consistent with these
Guidelines.
1.4 Review of activities for compliance with the Act.. The head
of each public entity shall provide for periodic review of all
programs to insure compliance with the provisions of the Act.
1.5 Public information. The head of each public entity must make
available to the public full information concerning the agency's re
location programs and he shall insure that persons to be displaced
are fully informed, at the earliest possible time, of such matters
as available relocation payments and assistance; the specific plans
and procedures for assuring that suitable.replacement housing will
be available for homeowners and tenants, in advance of displacement;
the eligibility requirements and procedures for obtaining such pay-
ments and assistance; and the right of administrative review by the
head of the agency concerned.
2' - ASSURANCE OF ADEQUATE REPLACZMENT HOUSING
PRIOR TO DISPLACEMENT
2.1 Assurance of availability.
a. Availability. No public entity shall proceed with anv
phase of a project which will cause the displacement of any per-
son until the public.entity has determined that within a reasonable
period of time.prior to displacement, there will be available on a
basis consistent with-the requirements of Title VIII of the Civil
Rights Act of.1968 (P,L..90-284), in areas not generally less
desirable in. regard to public utilities and public and.commercial
facilities and at rents or prices within the financial means of
..the families and individuals displaced, decent, safe and sanitary
dwellings,. equal in number to the.number of, and available to, such
displaced persons.who require such dwellings and reasonably acces-
sible to their.places of employment:
b.. Support. The determination should be based on a current
survey and analysis of. available replacement housing by the dis-
placing agency. Such survey and analysis must.take into account
the competing demands on available housing.
c. Waiver. Pursuant to Section 7261(c) (3) of the Act, the
head of a public entity may prescribe by regulations, situations
where the determination described in paragraph 2.1a may be waived.
These should be limited only to emergency or other extraordinary
situations where immediate possession of real property is of cru-
cial importance. Each waiver of assurance.of replacement housing
shall be supported by appropriate findings and a determination of
the necessity for the waiver.' .
d. Standards for decent, safe, and sanitary dwellings.
(a) A decent safe, and sanitary dwelling is one which meets
all of.the following minimum requirements. Adjustments may be made
only in the cases of unusual.circumstances or in unique geographic
areas.
(1) Conforms with all applicable provisions for ex-
isting structures that have been established under State or local
building, plumbing, electrical, housing and occupancy codes and
similar ordinances or regulations.
(2) Has a continuing and adequate supply of potable
safe water.
(3) Has a kitchen or an area set aside for kitchen
use which contains a sink in good working condition and connected
11- 5
to hot and cold water, and an adequate sewage.system. A stove
and refrigerator in good operation condition shall be provided
when required by local code, ordinances or custom. When these
facilities are not so required by local codes, ordinances, or
custom, the kitchen area or area set aside for such use shall
have utility service connections and adequate space for the
installation of such facilities.
(4) Has an adequate heating system in good working
order which will maintain a minimum temperature of 70 degrees in
the living area; excluding bedrooms, under local outdoor design
temperature conditions. A heating system will not be required in
those geographical areas where such is not normally included in
new housing.
(5) Has a bathroom, well-lighted and ventilated
and affording privacy to a. person within;it, containing a.lava
tory basin and a bathtub or stall shower, properly connected to
an adequate supply of hot and cold running water, and a flush
closet, all in good working order and properly connected to a
sewage disposal system.
(6) Has an adequate and safe wiring system for
lighting and other electrical services.
(7) Is structurally sound, weathertight, in good
repair and adequately maintained.
(8) Each building used for dwelling purposes shall
have a safe unobstructed means of egress leading to safe open space
at ground level. Each dwelling unit in a multi-dwelling building
must have access either directly or through a common corridor to a
means of egress to open space at ground level. In multi-dwelling
buildings of three stories or more, the common corridor on each
story must have at least two means of egress..'
(9) Has 150 square feet of habitable floor space
for the first occupant in a standard living unit and at least 100
square feet of habitable floor space for each additional occupant.
The floor space is to be subdivided into sufficient rooms to be
adequate for the family. All rooms must be adequately ventilated.
Habitable floor space is defined as that space used for sleeping,
living, cooking or dining purposes, and excludes such enclosed
places as closets, pantries, bath or toilet rooms, service rooms,
connecting corridors, laundries, and unfinished attics,,foyers,
storage spaces, cellars, utility rooms and simi13r spaces.
(b) A decent, safe and sanitary sleeping room is one
which includes the minimum requirements contained in paragraph (a),
subparagraphs (2), (4), (5), (6), (7), and (8) of this section
and the following:
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(1) At least 100 square feet of habitable floor
space for the first occupant and 50 square feet of habitable
floor space for.each additional occupant.
(2) Lavatory, bath and toilet facilities that pro-
vide privacy, including a door that can be locked if such facili-
ties are separate from the room.
(c) A decent,safe, and sanitary mobile'home is one which
includes the minimum requirements contained in paragraph (a), sub-
paragraphs (2), (3), (4), (5), (6), (7), (8), and (9) of this sec-
tion except that it may have-70 square feet of habitable floor
space for each additional occupant, and the following:
(1) Bears the insignia of approval issued by the
State of California, Department of Housing and Community Develop-
ment, pursuant to the California Health and Safety Code, except
those manufactured.prior to September 1, 1958.•
2.2 Housine provided as a last resort. when it is determined .
that adequate replacement housing is not available and cannot
otherwise be made available, the head of the public entity may '
take action to develop replacement housing:. Such action for re-
placement housing will be guided by the criteria and procedures
issued by the Secretary of Housing and Urban.Development in accord-
ance with the provision concerning Section 206(a) of.the Uniform
Relocation Assistance and Land Acquisition Policies Act of 1970
(P.L..91-646).
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3 - MOVING-AND RELATED EXPENSES
3.1 Eligibility.
a. Any displaced person (including one who conducts.a busi-
ness or farm operation), is eligible to receive a payment for moving
expenses. A person who lives on his business or farm property may
be eligible for both moving and related expenses as a dwelling
occupant in addition to being eligible for payments with respect to
displacement from a business or farm operation.
b. Any person who moves from real property or moves his per-
sonal property from real property: 1) as a result.of the acquisi-
tion of such real property in whole or part, or 2) as a result of
a written notice of the acquiring agency to vacate real property,
or 3) as a result of written notice of the acquiring agency to
vacate, other real property on which such person conducts a farm
or business, is el'igible'to receive a payment for moving expenses.
3.2 Actual reasonable expenses in moving...
a. Allowable moving expenses.
('1) Transportation of individuals, families, - and personal
property from the acquired site to the replacement site, not to ex-
ceed a distance of 50 miles, except where the displacing agency
determines that relocation beyond this 50-mile area is justified.
(2) Packing, and unpacking, crating and uncrating of
personal property.
(3) Advertising for packing, crating, and transportation
when the displacing agency determines that it is necessary.
(4) Storage of personal property for a period-generally
not to exceed six months when the displacing agency determines
that storage is necessary in connection with relocation.
(5) Insurance premiums covering loss and damage of per-
sonal property while in storage or transit.
(6) Removal, reinstallation, reestablishment, including
such modification as deemed necessary by the public agency of, and
reconnection of utilities for, machinery, equipment, appliances,
and other items, not acquired as real property. Prior tO payment
of any expenses for removal and reinstallation of such proaert_j,
the displaced person shall be required to agree in writing that
the.property is personalty and that the displacing agency is
released from any payment for the property.
11- 8
(7) Property lost, stolen, or damaged (not caused by the
fault or negligence of the displaced person, his agent or employees),
in the process of moving, where insurance to cover such loss or
damage is not available.
b. Limitations.
(1) Wb en the displaced person accomplishes the move him-
self, the amount of payment shall not exceed the estimated cost.of,
moving commercially, unless the head of the responsible public agency
determines a greater amount is justified.
(2) When an-item of personal property which is"used in
connection with any business or farm operation is not moved but
sold and promptly replaced with a comparable item, reimbursement
shall not exceed the replacement cost minus the proceeds received
from the sale, or the.estimated costs of moving, whichever, is less. .
(3) When personal property which is used*in connection..
with any business or farm operation to be moved is of low value
and high bulk, and the cost of moving would.be disproportionate
in relation to the value, in the judgment of the head of the pub-
lic agency responsible for the reimbursement lor.the expense of
moving the personal.property shall not exceed the difference be-
tween the amount which would have been received for such item on
liquidation and the cost of replacing the same with a comparable
item available on the market.. This provision will be applicable
in the case of moving of junk yards, stockpiled sand, gravel,
minerals, metals and similar type items of personal property..
(4) If the cost of moving or relocating an outdoor ad-
vertising display or displays is determined to be equal to or in
excess of the in place value of the display, consideration should
be given to acquiring such display or displays as a.part.of the
real property, unless such acquisition is prohibited by State law.:
3.3 Nonallowable moving expenses and losses.
a. Additional:expenses incurred because_of living in a new
location.
b. Cost of moving.structures or other improvements'in which
the displaced person, reserved ownership except as otherwise pro-
vided by law.
C. improvements to the replacement'site,- except when required .
by law.
d_ Interest on loans to cover moving expenses.
e. Loss of good-will.
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f.
Loss of profits.
g.
Loss of trained employees.
h;
Personal injury.
.i.
Cost of preparing the application for moving and related
expenses
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j.
Payment for search cost in connection with locating a re-
placemen
t dwelling.
3.4 Expenses in searching for replacement business or farm.
a.
Allowable.
(1) Actual travel costs.
(2) Extra costs for meals and lodging.
(3) Time spent in searching at the rate of the displaced
person's
salary or earnings, but not to exceed $10 per hour.
(4) In the discretion of the displacing agency, necessary
broker,
real estate or other professional fees to, locate a.replace-
ment bus
iness or farm operation under circumstances prescribed in
public a
gency regulations.
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b.
Limitation- The total amount a displaced person may be
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paid for searching expenses may not exceed $SOO.unless the head of
the public agency determines that a greater amount is justified
based on the circumstances involved.
3.5 Actual direct losses by business or farm operation. When the
displaced person does not move personal property, he should be re-
quired to make a bona fide effort to sell it, and should be reim-
bursed for the reasonable costs incurred.
a. When the business or farm operation is discontinued, the
displaced person is entitled to the difference between the fair
market value of the personal property for continued use at its lo-
cation prior to displacement and the sale proceeds, or the estimated
costs of moving 50 miles whichever is less,.
b. Wien the ^ersonai property is abandoned, the displaced
peson is to payment f.-.r the fair ,;tarkei .value of the
property for continued use at its location prior to displacement
or the estimated cost of moving 50 miles whichever is less.
C. The cost of removal of the personal property shall not
be considered as an offsetting charge against other payments to
the displaced person.
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4 - PAYMENTS IN LIEU OF MOVING
AND RELATED EXPENSES
4.1 Dwellinqs - schedules.
a. Section 7262(b) provides that at the option'of-the dis-
placed person he may receive a moving expense allowance not to
exceed $300 based on schedules established by each agency head.
Moving allowance schedules maintained by the State Highway Depart-
ment should be used as the basis for the agency's schedules. In
addition, a displaced.person shall receive a dislocation allowance
of.$200.
b. A.displaced person, who elects to receive a payment
based on a-schedule, shall be paid under the schedule used in
the jurisdiction in which the-displacement occurs regardless of
where he 'relocates.
4.2 Businesses - eligibility.
a. A person displaced from his business,-'as defined in
Section 7260(d) is eligible under Section 7262(c) to receive a
fixed payment in lieu of moving and related expenses. Care must-
be exercised, in each instance, however, to assure that such pay-
ments are made only in connection with a bona fide business. The
public agency responsible for the program or project causing dis-
placement shall, by regulation, prescribe appropriate criteria for
a determination that a given activity does, in fact, constitute a
bona fide business.
b. Those businesses described in Section 7260(4) are not
eligible under Section 7262(c) for a payment in lieu of moving
and related expenses.
C. Where a displaced person is displaced from his place of
business, no payment shall be made under Section '7262(c)'until
after the head of the displacing agency determines (1) that,the -
business is not part of a commercial enterprise having at least
one other establishment not being acquired, which is engaged in
the same or similar business, and (2) that the business cannot
be relocated without a substantial loss of existing patronage..:'
The determination. of loss of existing patronage shall.be made-by
the displacing agency only after.consideration of all pertinent
circumstances, including but not limited to, the following factors:
(1) The type of.business conducted by the displaced
concern.
(2) The nature of the clientele of the displaced
concern.
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(3) The relative importance of the present and proposed
location to the displaced business and the availability of a suit-
able replacement location for the displaced person.
4.3 Farms - partial taking. Where a displaced: person is displaced
from only a part of his farm operation, the fixed.payment provided
by Section 7262(c) shall be made only if the displacing agency
determines that the farm met the definition of a farm operation
prior to the acquisition and that the property remaining after the
acquisition can no longer meet the definition of a farm operation.
4.4. Nonprofit organizations.' Where a nonprofit organization is
displaced, no payment shall be made under Section 7262(c) until
after the head of-the public agency determines:
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a. That the.nonprofit organization cannot be relocated with-
out a substantial loss of its existing patronage. The term "existing
patronage" as used in connection with nonprofit organizations in-
eludes the persons, community or clientele served or affected by
the activities of the.nonprofit organization.
b. That the nonprofit organization is not part of a commer-
cial enterprise having at least one other establishment not being
acquired which is engaged in the same or similar activity. -
4.5 Net earnings. The term "average annual net earnings" as used
in Section 7262(c) means one-half of any net earnings of the busi-
ness or farm operation, before Federal, State, and local income
taxes, during the two taxable years immediately preceding the tax-
able year in which such business or farm operation moves from the
real property acquired for such project, or during such other
period as the head of the displacing agency determines to be more
equitable for establishing such earnings, and includes any compen-
sation paid by the.business or farm operation to the owner, his
spouse or his dependents during such period. If a business or
farm operation has no net earnings, or has suffered losses during
the period used to compute "average annual net earnings" it may
nevertheless receive the $2,500 minimum payment authorized by such
Section.
4.6 Amount of Business Fixed Payment. The fixed payment to a per-
son displaced from a farm operation or from his place of business,
including nonprofit organizations, shall be in an amount equal to
the average annual net earnings of the business or farm operation,
except that such payment shall not be less than $2,500 nor more
thar, $10,000.;
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5 - REPLACEMENT HOUSING PAYMENT FOR HOMEOWNERS
5.1 Eligibility. .
a. A displaced owner-occupant is eligible for a replacement
housing payment, authorized by Section 7263, not to exceed $15,000,
if he meets both of the following requirements:
(1) Actually owned and occupied the acquired dwelling
from which displaced for not less than 180 days prior to the initi-
ation of negotiations for the property. The term "initiation of
negotiations" means the day on which the acquiring agency makes
the first personal contact with the property owner or his repre-
sentative and furnishes him with a written offer to purchase.the
real property.
(2) Purchases and occupies a replacement dwelling, which
is decent, safe, and sanitary, not later than the 'end of the one-
year period beginning on the date on which he receives from the
displacing agency the final payment of all costs of the acquired
dwelling, or on the date on which he moves from the acquired
dwelling, whichever is the later date.
b. A displaced owner-occupant of a dwelling who is determined
to be ineligible under this chapter may be eligible for a replace-
ment housing payment under Chapter 6.
5.2 Comparable replacement dwelling. For the purposes of rendering
C.' relocation assistance by.making referrals for replacement housing
and for computation of the replacement housing payment,. a 'comparable
replacement dwelling is one which is decent, safe, and sanitary and:
a. Functionally equivalent and substantially.the same as the
acquired dwelling, but not excluding newly constructed housing..
b. Adequate in size to meet the needs of the displaced family
or individual. However, at the option.of the displaced person, a
replacement dwelling may exceed his needs when the replacement
dwelling has the same number of rooms or the equivalent square
footage as the dwelling from which he was. displaced.
C. Open to all persons regardless of race, color, religion,
or national origin, consistent with the requirements of the Civil
Rights Act of 1964 and.Title VIII of the Civil Rights,Act of 1968.
d. Located in an area not generally less desirable than the
one in which the acquired dwelling is located, with respect to:
(1)- Neighborhood conditions, including but not limited
to municipal services and other environmental factors. -
II_ 13
(2) Public utilities, and
(3) Public and. commercial facilities.
.e. Reasonably accessible to the displaced person's place
of employment or potential place of employment. I .
f. Within the financial means of the displaced family or
individual.
g. Available on the market to the displaced person
h. If housing meeting the requirements of paragraph 5.2 is
not available on the market, the head of a displacing agency may,
upon a proper finding of the need therefor, consider available
housing exceeding these basic criteria.
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5.3 Computation of replacement housing payment. The replacement
housing payment of not more than $15,000 comprises.the following:
a. Differential payments for replacement housing. The head
of the public agency may determine the amount which, if.any, when
added to the acquisition cost of the dwelling acquired by the dis-
placing agency, is necessary to purchase a comparable replacement
dwelling by either establishing a schedule or by. using a compara-
tive method.
(1) Schedule method. The agency may establish a schedule
of reasonable acquisition costs for comparable replacement dwellings
of the various types of dwellings to be acquired and available on
the private market. The schedule shall be based on a current market
analysis sufficient to support determinations of the.amount for each
type of dwelling to be.acquired. When more than one public agency
is causing displacement in a community or an area, the heads'of the
agencies concerned shall coordinate the establishment of the schedule
for replacement housing payments.
(2) Comparative method. The agency may determine the
price of a comparable replacement dwelling by selecting a dwelling
or dwellings most representative of the dwelling unit acquired,
available to the displaced person, and which meets the definition '
of comparable replacement dwelling. A single dwelling shall be
used only when additional comparable dwellings are not available.
(3) Alternate method. The head of the displacing agency
..!av develop C-lterla for '._'orD,n -4n ?y 'r e:Jl _1G e men-' ho using ay^tenCS -
i~'len nelt[:er Lhe schedule method :nor the comparative method is
feasible:
(4) Limitations. The amount established as the differ-
ential payment for the replacement housing sets the upper limit of
this payment.
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.
(a) If the displaced person voluntarily purchases
and occupies a decent, safe, and sanitary dwelling at a.price less
than the above, the comparable replacement housing payment will be
1 reduced to that amount required to pa_y the difference between the
acquisition price of the acquired dwelling and the actual purchase
price of the replacement dwelling. >
(b) If the displaced person voluntarily purchases
and occupies a decent,. safe, and sanitary dwelling at a price less .
- than the acquisition price of the acquired dwelling; no differen-
tial payment shall be made.
b. Interest payment. The head of the public agency,shall de-
termine the amount,.if any, necessary to compensate a. displaced
person for any increased interest costs, including, points paid by
the purchaser. Such amount shall be paid only of the acquired
dwelling was encumbered by a bona fide mortgage.. The following.
shall be considered:
(1) The payment shall be-equal to the excess in'the
aggregate interest and other debt service costs of that amount of
the principal of the mortgage on the replacement dwelling which
is equal to the unpaid balance of the bona.fide mortgage on the
acquired dwelling, at the time of acquisition, over the remainder
term of the mortgage on the acquired dwelling, reduced to discounted
present value.
(2) The discount rate shall be the prevailing interest
rate paid.on savings deposits by commercial banks in the general
area in which the replacement dwelling is located.
(3) A "bona fide mortgage" is one which was a valid lien
on the acquired dwelling for not less than 180 days prior to the
initiation of negotiations.
c. Incidental expenses.
(1) The head of the public agency.shall.determine the
amount, if any, necessary to reimburse a displaced person for ac-
tual costs incurred by him incident to the purchase of the replace-
ment dwelling (but not including prepaid expenses) such as:.
(a) Legal,- closing and related costs including,
title search, preparing.conveyance instruments, notary fees,.sur-
veys, preparing plats, and charges incident to recordation.
(b) Lenders' FF.A or VA, aporaisal fees.
(c) FHA application fee.
(d) Certification of structural soundness when
required by lender, FHA or VA.
11 _ 15
/ 77 ~I (e) Credit report. •
(f) Title policies or abstracts of title.
(g) Escrow agent's fee.
(h) State revenue stamps or sale or transfer taxes.
(2) No fee, cost, charge, or expense is reimbursable whici
is determined to be a cart of the finance charge under the Truth in
Lending Act, Title I, Public Law 90-321, and Regulation "Z" (12 CFR
Part 226) issued pursuant thereto by.the Board of Governors of the
Federal Reserve Svstem. Loan service fee (not to exceed 1%) and
origination or discount points are an eligible expense if such fees
are normal to real estate transactions in the area.
II - 16
/~z
MOBILE HOMES
5:4 Acquisition of Mobile Hones.
The public agency may purchase mobile homes where:
(1) The structural condition of the mobile home is such that
it cannot be moved without substantial damage or.unreasonable cost;
or
(2) The mobile home is not considered to.be a decent; safe
. and sanitary dwelling unit as defined in section 2,1(d) of this
Article.,
5.4 Partial Acquisition of Mobile Home Park.
Where the public agency' determines that a sufficient portion of a
mobile home park is taken to justify the operator of such park to
move his business or go out of business the owners and occupants
of the mobile home dwellings not within the actual taking but who
are forced to move shall be eligible to receive the same payments
as though their dwellings were within the actual taking.
5.5 Mobile Homes as Replacement Dwellings
A mobile home may be considered a replacement dwelling provided: -
. ~
(1) The mobile home meets standards of decent, safe and sani-
tary housing;
(2) The mobile home is placed in a.fixed location:
(a) In a. mobile home park which is licensed and operating
under State law; or
(b) In a mobile home subdivision wherein the displaced
person owns the lot on-which the mobile home is placed; or
(c) On real property owned or leased by the displaced
person in other than a mobile home subdivision; provided such place-
ment is in accordance with State and local laws or ordinances and
provided such placement was made under permit from the State or lo-
cal agency:
3.6 Corr.putation on Next Highest Tvpe.
When a comparable mobile home is not available it will be necessary
to calculate the replacement housing payment on the basis of the
next highest type of dwelling that is available and meets the appli-
cable'requirements and standards, i.e_, a higher type mobile home or
a conventional dwelling.
II - 17
(1) "Not available" as used in this subsection includes,
but is not limited to, those cases where mobile homes cannot be re-
located in mobile home parks within a reasonable distance from the
place.of dislocation because of lack of available spaces or because
of the standards and rules of the mobile home parks where spaces are
available.
5.7 General Provisions.
The general provisions for moving expenses and replacement housing
payments of this Article are also applicable to -_%~.ners and tenants
of mobile homes.
5.8 Moving Expenses "or Mobile Homes.
(a) General.
The.eligibility requirements of section'3 and the pro-
visions of sections 5 and 6 are applicable to owners and occu-
pants displaced from a mobile home.
II- 18
i
6 - REPLACEMENT HOUSING PAYMENTS FOR TENANTS AND CERTAIN OTHERS
6.1 Eligibility.
a. A displaced tenant or owner-occupant of a dwelling for
less than 180 days is eligible for a replacement housing payment
not to exceed $4,000, as authorized by Section 7264, if.he meets
both.of the following requirements:
(1) Actually occupied the dwelling for not less than
90 days prior to the initiation of negotiations for acquisition of
the property. The term "initiation of negotiations" means the
day on which the public agency makes the first personal contact
with the property owner or his representative and furnishes him
with 'a writtenoffer to purchase the real property. Agencies
regulations should provide the tenants and other persons occupying.,
the property shall be advised when negotiations for the property
are initiated with the owner thereof.
(2) Is not eligible to receive a payment under Section 7263.
b.. An owner-occupant of a dwelling for not less than 180 days
prior to the initiation of negotiations is eligible for areplace-
ment housing payment as a tenant, as authorized by Section 7264,
when he rents a decent, safe and sanitary replacement dwelling .
instead of purchasing and occupying a replacement dwelling, which is
decent, safe, and sanitary not later than the end of the one-year
period beginning on the date on which he receives from the dis-
placing agency final payment for all costs for the acquired dwelling,
or on the date on which he moves fromithe acquired dwelling, which-
ever is the later date.
6.2 Computation of replacement housing ayments for displaced
tenants. A displaced tenant is eligible £or a rental replace-
ment housing payment, not to exceed $4,000, which shall be determined
by subtracting from the amount which the tenant actually pays for
a replacement dwelling or, if lesser, the amount determined by the
State as necessary to rent a comparable dwelling; or if he purchases
replacement housing within one year from displacement, he is eligible
.for a down payment including expenses incidental to closing not to.
exceed $4,000.
a. Rental replacement housing payment. The head of the public
agency concerned may determin ale amount r.e Ce53ar! to r°n t'a
comparable replacement dwelling by either.establishing,a schedule or
by using a comparative method.
(1) Schedule method. The agency may establish.a rental
schedule for renting compara le replacement dwellings as described
in paragraph 5.2 and which are available in the private market for
the various types of dwellings to be acquired. The payment shall
be computed by determining the amount necessary to rent a comparable
replacement dwelling for four years (the average monthly cost from
i
II- 19
the schedule) and subtracting from such amount forty-eight times
the average month's rent paid by the displaced tenant in the last
three months prior to initiation of negotiation if such rent was,
reasonable. Agency regulations may prescribe circumstances which
may dictate the use of economic rather than actual rent paid by
the displaced tenant. For purposes of these Guidelines; economic
rent is defined as the amount of rent the displaced tenant would
have nad to pay for a comparable dwelling unit in an area similar
to the neighborhood in which the dwelling unit to be acquired is
located. The schedule should be based on current analysis of the
market to determine the amount of each type of dwelling required.
When more than one public agency is causing the displacement in a
ccmmunity or an area, the agency heads shall cooperate in choosing,
the method for computing the replacement housing payment and shall
use uniform schedules of average rental housing in the community
or area.
(2) Comparative method. The agency may determine that
average month's rent by selecting one or more dwellings most repre-
sentative of the dwelling unit acquired, which is available to the
displaced person and meets the definition of a comparable replace-
ment dwelling as described in paragraph 5.2 The payment should .
be computed by determinig the amount necessary to rent.a compara-
ble replacement dwelling for four years and subtracting from such
amount forty-eight'times the average month's rent paid by the dis-
placed tenant in the last three months prior to initiation of
negotiations, if such rent was reasonable. Agency regulations may
prescribe circumstances which may dictate the use.of economic rather
than actual rent paid by the displaced tenant.
(3) Exceptions. The head of the public agency may estab-
lish the average month's rent paid by the displaced person by..
using more than three months, if he deems it advisable. If rent
is being paid to the displacing agency, economic rent shall be used
in determining the amount of the payment to which the displaced
tenant is entitled.
.(4) Alternate to (1) and (2) above. When neither method
is feasible, the head of the public agency shall develop criteria
for computing the payment.
(5) Disbursement of rental replacement housing payment.
The head of the public agency should develop procedures to imple-
ment Section 7264 to provide, within the $4,000 and four, year limi-
taticns of such sect.io7i, a rental replacement housing payment that
W-4. 11 enable the displace-. to rent comparable decent, safe and saai-
tary housing. The public agency should develop criteria for.a
determination as to the manner of disbursement, that is,.lump sum
payment, and/or annual installments, or.monthly payments.
1
II- 20
b. Purchases - replacement housing pavment. If the tenant
elects to purchase instead of -renting, the payment shall be com-
puted by determining the amount necessary to enable him to make a
` down payment and to cover incidental expenses on.the purchase of
replacement housing, as follows:
(1) The down payment shall be the amount necessary
to make a down payment on a comparable replacement dwelling.
Determination of the amount necessary for such down payment shall
be based on the amount of down payment that would be required for
purchase of the dwelling using a conventional loan.
(2) Incidental expenses of closing the transaction
are those as described in paragraph 5.30..
(3) The maximum payment.may.not exceed $4,000, ex-
cept that if more than $2,000 is required, the tenant must match
any amount in excess of $2,000 by an equal amount.in making the
down payment.
(4) The full amount of the replacement housing pay-
ment must be applied to the purchase price and incidental costs'
shown on the closing statement.
6.3 Computation of replacement housing payments for certain others..
a. A displaced owner-occupant who does not qualify for a
replacement housing payment under Chapter 5 because of the 180-
day occupancy requirement and elects to rent is eligible for a
rental replacement housing payment not to exceed $4,.000. The
payment will be computed in the same manner as shown.in paragraph
6.2a except that the present rental rate for the acquired dwelling
shall be economic rent as determined by market data.
b. A displaced owner-occupant who does not qualify for a re-
placement housing payment under Chapter 5 because of the 180-day
occupancy requirement and elects to purchase a replacement dwelling
is eligible for a replacement housing down payment and closing costs
not to exceed $4,000. The payment will be computed in the same
manner as shown in paragraph 6.2b.
7 -
RELOCATION ASSISTANCE
ADVISORY SERVICES
7.1 Relocation assistance advisory program. Under Section 7261,
the head of a.public agency shall require a relocation assistance
advisory program for persons displaced as a result of programs or
projects. Each relocation assistance advisory program shall in-
clude such measures, facilities, or services as may be necessary
or appropriate to perform all of the.tasks detailed in Section
7261(c).
7.2 Coordination of planned relocation activities.
a. Coordination. When two or more public agencies contem-
plate displacement activities in a given community or area, the .
heads of the respective agencies responsible for the planned ac-
tivities shall require that appropriate channels of communication
be established between the agencies for the purpose of planning
relocation activities and coordinating available housing resources.
The public agencies
causing displacement shall designate at least one representative
who will meet periodically with the representatives of other
Federal, State and local agencies to review the impact of their
respective programs on the community or area.
b. Local coordination. To further insure maximum coordina-
tion of relocation activities in a given com_munity.or area, each
public agency's regulations shall require that the displacing
agency consult appropriate local officials before approving any
proposed project in the community, consistent with the require-
ments of the procedures promulgated by the Office of Management
and Budget Circular A-95 (Revised). That Circular provides a
central point of identifying local officials.
7.3 Contracting for relocation services.
a. Contracting with central relocation agency.' The head of
a displacing agency contemplating initiation of displacement ac-
tivities shall consider contracting with the central relocation
agency in a community or area for the purpose of carrying out its
relocation activities.
ConaraCt-nQ 47i th a tilers. v -,'-ten a centralized relocation
agency is not available in a community -or if in "t he judgment of
the displacing agency the centralized agency does not have the
capacity to provide the necessary services, within the time re-
quired by the agency's program, the displacing' agency may contract
with another public agency or a private contractor who can provide
the necessary relocation services.
l
II - 22
8 -.GRIEVANCE PROCEDURE
8.0 Federal participation exemption.
If the public agency has an approved and adopted grievance procedure
policy mandated by a federal agency in order to receive federal
financial participation, then, that.policy may be used in lieu of
this section.
8.1 Right of review..
Any person aggrieved-by a determination.as to eligibility for, or
the amount of,'a payment under the regulations in this part,. may
have his claim reviewed and reconsidered by the head of the public
agency or his-authorized designee (other than the person who made '
the determination.in question) in accordance with the procedures
set forth-in.-this..section as supplemented by such procedures as.
the public agency shall have established for such review and'
reconsideration. Any person or class of persons may seek-review and
revision of any schedule with respect to payments under the regula-
tions in this pant.
8.2 Notification to claimant.
If the public agency denies the eligibility of a claimant for a.
payment or disapproves the full amount claimed or refuses to.con-
sider the claim on' its merits because of untimely filing or any
other ground,,the public agency's notification to the claimant
of its determination shall inform the claimant of its reasons
therefor and shall also-inform the claimant of the applicable.
procedures for obtaining review of this determination.
8.3 Request for review.'
a. General. Any person who has a right to seek review may
request the public agency to provide him with a full.written expla-
nation of its determination, and the basis.therefor if he feels
that the explanation accompanying the payment of his claim or
notice of the agency's determination was incorrect or inadequate.
The public agency shall provde such an explanation to the claim-
ant within 15 days of its receipt of claimant's request.
b. Time. limits for filing written request for review...
(1.) A claimant desiring review and reconsideration.of
the public agency's determination shall file a written request for
review with the public agency either (a) within 6 months of the
agency's notification to the claimant of its determination or
(b) prior to final closeout of the project which caused the dis-
placement, whichever is earlier, but in no event less than:30 days
following the agency's notification to the claimant of its .
determination.
II- 23
0 0
711
C. The written request for review. The claimant may include
- in his request for review any statement of fact within his knowl-
edge or belief, or other material which he feels has a bearing on
his appeal. If the claimant requests more time to gather and
`
.
prepare additional material for consideration or review and
"
demonstrates a'.reasohable basis therefor, he may be granted 30 days
from the date of his request for review. If the claimant-feels
he is unable to prepare the written claim, the public agency shall
offer to provide assistance to the claimant and further notify the
claimant of other available sources of assistance.
d. Oral presentation. Unon request of the claimant, the
public agency shall afford him an opportunity to make an oral-.
presentation. The claimant may be represented.by an attorney or
..other person of his choosing. This oral presentation shall enable
- the claimant to discuss his claim with the head of the public
agency or a designee other than the person who made the initial
determination having the authority to revise the initial determina-
tion on the claim. The public agency shall make 'a summary of the
matters discussed in the oral presentation and it.shall be included
-
as part of its file.
8.4 Public agency review.
a. General. The'public agency shall consider the request
for review and shall make a determination as to whether a modifi-
cation is necessary. This review should be conducted by the head
of the public agency or his authorized designee (other than the
person who made the determination). A designee must have the
authority to revise the initial determination of the claim and
.
any determination reached pursuant to an oral presentation. The
public agency shall consider every complaint regardless of form.
b. Scope of review. The public agency shall review and
reconsider its initial determination of the claimant's case in
light of:
(1) All material upon which the public agency based its
original determination including all applicable rules and regulations;
(2) The reasons given.by the claimant for requesting
review and reconsideration'of his claim;
}
(3) Whatever additional written material has been sub-
mitted by the claimant; and
(4) Any fu=t.^,er information which the •p7jbli: agency may,
in its discretion, obtain by request, investigation, or research,
to insure fair and full review of the claim.
C. Determination on review by public agency.'. The final de-
termination on review by the public agency shall include, but.is
not.limited to.-
11-24
I
(1) The agency's decision on reconsideration of the
claim;
(2) The factual and legal basis upon which its decision
is based, including any pertinent explanation or rationale;
d. Time limits.
(1) The public agency shall issue its determination of
review within. 30 days from receipt of the last material submitted
for consideration by the claimant.
(2) In the case of complaints dismissed for untimeliness
or for any other reason not based on the merits of the claim, the
public agency shall issue a statement as to why the complaint was
dismissed to the claimant.
8.5 Recommendations by third party.
Upon agreement between the claimant and the public agency, a mutu-
ally acceptable third party or parties may review-the claim and
make advisory recommendations thereon to the head of the agency
for its final determination: In reviewing the claim and making
.recommendations to the public agency, the third party or parties
should be guided by the provisions of the requirements of these
sections.
8.6 Review of files by claimant
Except for confidential material, and except to the extent specifi-
cally prohibited by law, a public agency shall permit the claimant
to inspect all files and records bearing upon his claim or the prose-
cution of his grievance. The public agency may, however, impose
reasonable conditions on the claimant's right to inspect.
8.7 Effect of determination on other persons.
The principles established in,all determinations by a public agency
shall be applied to all similar cases regardless of whether or not
a person has filed a written request for review.
g g Construction of rules and regulations.
This section and all applicable rules and regulations on which public
agency determinations are "based, shall be liberally construed so as
Lul-l_1 tye s_a_Utcr_y purpose as declared l"`.thc Dct of "fair ana
eouitable treatment" in order that displaced persons "not suffer dis-
proportionate injuries as a result of programs designed for the bene-
fit of the public as a whole."
Ti- 2.5
i~
7z -11z
819 Riqht to counsel.
Any aggrieved party has a right to representation by legal or
other counsel at his own expense`at any and all stages of the pro-
ceedings set forth in these sections.
8.10 Judicial review.
Nothing in this section shall in any way preclude or limit a claim-
ant from seeking judicial review or receiving a fair and impartial
consideration of his claim on its merits upon exhaustion of such
administrative remedies as are available to him under this section.
i
i
I
II- 26
i
9 -
UNIFORM REAL
PROPERTY ACQUISITION POLICY
.9.1 Acquisition procedures.
a. Just compensation. Section 7267.2 establishes the policy
that, before initiation of negotiations for the acquisition of real
property, the head of the public entity concerned shall establish
an amount which he believes to be just compensation therefor. In
no event shall such amount be less than the agency's approved
appraisal of the fair market value of the property.
b. Incidental expenses incurred by displaced owner selling to
acquiring public agency. Compensation for real property shall include
recording fees, transfer taxes and prepayment penalties on existing
liens and other similar expenses incidental to conveying such real
property to acquiring agency.
C. Initiation of negotiations.
(1) Statement to be furnished owner. When negotiations
for the acquisition of real property are initiated, the owner shall
be provided with a written statement concerning the proposed acqui-
sition. This statement shall include, as a minimum, the following-
(a) Identification of the real property and the
estate or interest therein to be acquired including the buildings,
structures, and other improvements on the land, as well as the
fixtures considered to be a part of the real property, and
(b) The amount of the estimated just compensation for
the property to be acquired, as determined by the acquiring agency,
and a statement of the basis therefor. In the case of a partial
taking, damages, if any, to the remaining real property shall be
separately stated.
(2) Offer to purchase. The head of the public entity shall
make a prompt offer to purchase the property for the amount contained
in the statement.
9.2 Appraisal standards. For the purpose of promoting uniformity
under Section 7267.2, the head of each public entity shall establish,
for all programs under his jurisdiction, standards for appraisals
used in such programs, criteria for determining the qualifications
of appraisers, and a system of review by qualified appraisers.
9.3 Notice to move. Section 7267.3 provides that, to the greatest
extent practicable, no person lawfully occupying real property shall '
be required to move from a dwelling or to move his business or farm
operation without at least 90 days written notice from the head of
the displacing agency of the date by which such move is required.
II- 27
10 -'DEFINITIONS
10.1 Affected property. Affected property means any real property
which actually declines in fair market value because of acquisition
by a public entity for public use of other real property and a change
in .the use of the real property acquired by the public entity.
10.2 Average annual net earnings. The net earnings of the business
or farm operation before Federal, State, and local income tax, during
the 2 taxable years immediately,preceeding, displacement (or if the,
business or farm was not operated that long, such other period as may
be approved by the state agency), and includes salaries, wages or
other compensation paid by the business or farm operation to. the
owner, his spouse or his dependents. If the.state agency determines
that such 2 year period is not equitable for establishing earnings,
the period used for determining average net earnings shall be a sub-
stitute period determined by the state agency. In the case of a
corporate owner, earnings shall include any compensation paid to the
spouse or dependents of the owner of a majority.interest in the cor-
poration. For the purpose of determining majority.ownership, stock
held by a husband, his wife and their dependent children shall be
treated as one unit.
10.3 Business. Any lawful activity, except a farm operation conducted.
primarily:
a. For the purchase, sale, lease, and rental, of personal and.
real property, and for the manufacture, processing, or marketing of.
Products, commodities or any other personal.property;
b. For the sale of services to the public;
C. By.a nonprofit organization; or
d. Solely .for the purpose of Section 7262 for assisting in the
purchase, sale, resale, manufacture, processing or marketing or pro-
ducts, commodities, personal property, or services.by the erection
and maintenance of an outdoor advertising display,-whether or not
such display is located on the premises on which any of the'above
activities are conducted.
10.4 Closing (Replacement Housing Payments). -Those payments to
owner-occupants relating.to the closing costs on the purchase of a
replacement dwelling including costs of evidence of title, recording
aes, e'tc., but not 1ncludina:prepa-d expenses.
10.5 Comparable replacement dwelling. For the purposes of rendering
relocation assistance by making referrals for replacement housing and .
for computation of the replacement housing payment, a comparable
replacement dwelling is one which is decent, safe, and.sanitary.and: -
a. Functionally equivalent and substantially the same as the
acquired dwelling, but not excluding newly constructed housing.
b. Adequate in size to meet the needs of the displaced
family or individual. However, at the option of the displaced
person, a replacement dwelling may exceed his needs when the
replacement dwelling has the same number of rooms or the equivalent
square footage as the dwelling from which he was displaced.
C. Open to all persons regardless of race, color, religion,
or national origin, consistent with the requirements of the Civil
Rights Act of 1964 and Title VIII of the Civil Rights Act of 1968.
d. Located in an area not generally less desirable.than the
one in which the acquired dwelling is located, with respect to:
(1) Neighborhood conditions, including but not limited
to municipal services and other environmental factors.
(2) Public utilities, and
(3) Public and commercial facilities.
e. Reasonably accessible to the displaced person's place
of employment or potential place of employment.,
f. Within the financial means of the displaced family or
individual.
g. Available on the market to the displaced person.
h. If housing meeting the requirements of paragraph 5.2 is
not available on the market, the head of a displacing agency may,
upon a proper finding of the need therefor, consider available
housing exceeding these basic criteria.
10.6 "Condominium". "Condominium" means a combination of co-ownership
and ownership in severalty. It is an arrangement under which a family
or individual in a housing development holds full title to a one-
family dwelling unit, including an undivided interest in common areas
and facilities, and.such restricted common areas and facilities, and
such restricted common areas and facilities as may be designated.
10.7 Conventional Loan. "Conventional Loan" means a mortgage commonly
given by banks and savings and loan associations to secure advances
on, or the unpaid 7urcelase Price of real -grope: _,y, payment of
is not 'nsured by any agency of the State or Federal governments. .
10.8 Counted Room. "Counted Room" means that space in a dwelling
unit containing the usual quantity of household furniture, equipment
and personal library, study, dining room, kitchen, laundry room,
basement, bedroom,and garage. Rooms or storage areas which contain
substantial amounts of personal property equivalent to one or more
rooms may be counted as additional rooms.
II- 29
10.5 Date of Initiation-.of--Negotiations for Parcel. This phrase
means the day on which-the public agency makes the first personal
contact with the property owner or his representative and furnishes
him with a written offer to purchase the'real property.
10.10 Date of Initiation of Negotiations for the 'Project: This phrase
means the date the public agency makes the first personal-contact with
the owner of any property on the project or his representative where
price is discussed except where such contact is made solely for pro-
tective buying or because of hardship.,
10.11 Date of Intent to Acquire. "Intent to acquire" means the public
acknowledgment by the public entity of their intention and/or. plan
to obtain specified parcels for a specific purpose (project).
"Date of Intent to Acquire" means the date on which .the public agency
sends through certified mail to or makes personal contact with the
owner of each parcel or advertises in.a local paper of general circu-
lation that a specific project is.intended to be developed and
specified parcels therein are intended to be acquired. Upon the date
of intent to acquire, parcels may be acquired through.hardship.
10.12 Displaced Person. "Displaced person" means any person who moves
from real property or who moves his personal property from real pro-
perty, as a result of the acquisition of such real property, in whole
or in part, or as the result of a written order from a public entity
to vacate the real property, for public use.
10.13 Dwelling. A single-family building, a single-family unit
(including a nonhousekeeping unit) in a two-family or multifamily
building, a unit of a condominium or cooperative housing project, a
mobilehome, or other residential.unit.
10.14 Economic Rent. The amount of gross rent the displaced tenant
would have had to pay for a similar unit in an area not generally
less desirable than the dwelling unit to be acquired. (Gross rent
is contract rent, plus cost of utilities to tenant, over and above
contract rent.)
10.15 Effective Rate of Interest. "Effective rate of interest" means
the annual percentage rate paid on the debt of a mortgage as a result
of.including debt service charges in the total interest to be paid on
the mortgage debt, as an incident to the extension of credit, when
such debt service charges are normal to the market.
1_0.16 Eliqihle Person.. eligible person" means anv.displaced pe_son
who 1s, or becomes, lawfully entitled to any relocation payment under
these regulations:
10, 17. Family.' The term."family" means two or more individuals, one
of whom is the head of a household, plus all other,individuals regard-
less of blood or legal ties who live with and are considered a part
II-30
of the family unit. Where two or more individuals occupy the same
dwelling with no identifiable head of.household, they shall be
treated as one family for replacement housing payment purposes.
( 10.18 Farm Operation. "Farm operation" means any activity conducted
solely or primarily for the production of one or more' agricultural
products or commodities, including time, 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.
10.19 Federal Project, "Federal project" means any direct Federal
project or any project receiving Federal financial assistance.
10.20 Hardship. "Hardship" means the acquisition.of real property
by a public entity for a public use prior to the date of-initiation of
negotiations for the project.
10,21 Incidental Expenses. R easonable expenses incurred for evidence
of title, recording, fees, and other closing costs on the purchase
of a replacement dwelling.
10.22 Gross Income. Projected annual in come from all sources of
each member of the family residing in the household who is at least
eighteen years of age.
a. Adjusted Gross Income.
(1) A deduction of 5% of Gross Income, except that
the deduction shall be 10% in the case of a family whose head or
spouse is elderly;
(2) A deduction for extraordinary medical expenses cohere
not compensated for or covered by insurance, defined for this purpose
to mean medical expense in excess of 3% of Gross Income;
(3) A deduction of amounts for unusual occupational
expenses not compensated for by-the-employer, such as special tools
and equipment, but only to the extent by which such expenses exceed
normal and usual expenses incidental to employment;
(4) A deduction of amounts paid by the family for the
care of children or sick or incapacitated family members when
determined to be necessary to employment of the head or spouse,
provided the amount deducted does not exceed the amount of income
ceived by the family member thus released;.
(5) An exemption of $300 for each dependent, i.e., each
minor (other than the head or spouse) and for each adult (other than
the head or spouse) dependant upon the family for support;.
(6) Any nonrecurring income, or income of full-time students.
11-31
k. Loss of trained employees;
1. Personal injury;
M. Cost of 'preparing the application for moving and,
related expenses;
n. Modification of personal property to adapt it to
replacement site.
10.28 'Nonprofit Organization. "Nonprofit Organization" means a
corporation, partnership, individual or other public or private
entity, engaged in a business,. professional or instructional
activity on a no basis, necessitating fixtures, equipment,
stock in grade, or other tangible property for the carrying on of
the business, profession or institutional activity on the premises.
10.29 Owner. A person "owns a dwelling" if he:
a. Holds fee title, a life estate, a 99-year lease, or a,
lease with not less than 50 years to run from date of acquisition
of the property for the project.
b. Holds an interest in a cooperative housing project which
includes the rights of occupancy of a dwelling unit therein.
c. Is the contract purchaser of any of the foregoing estates
or interests.
d. Has a leasehold interest with an option to purchase;.or
e. Owns a mobile unit which under State law is determined
to be real property, not personal property. -
Also the tenure of ownership, not occupancy, of the succeeding
owner shall include the tenure of the preceeding owner.'
10.30 Person. Person means any individual, partnership, corporation,
or association.
10.31 Personal Property. (Tangible Personal Property). Tangible
property which is situated on the real property vacated or to be
vacated by a displaced person and which, is considered personal
property and is noncompensable (other than for moving expenses)
under the State law of eminent domain, and
In the case of a tenant,' fixtures and equipment, and other property
which may be characterized as real property under State.or local
law, but which the tenant may lawfully, and at his election determines
to, move and for which the tenant is not compensated in the real
property acquisition. In the case of an owner of real property, the
f
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0 0
10.24 Mobilehome. "Mobilehome" means a vehicle, other than a motor
vehicle, designed or used for human habitation,' for carrying persons
and property on its own structure, and for being drawn by a motor
vehicle.
10.25 Monthly Gross Income. "Monthly Gross Income" means the
total monthly income of a family or individual irrespective of
expenses and voluntary or involuntary deductions and includes, but
is not limited to salaries, wages, tips, commissions, rents, royal-
ties, dividends, interest, profits, pensions, and annuities.
10.25 Mortgage. "Mortgage" means such classes of liens as are commonly
given to secure advances on, or the unpaid purchase price of, real
property, together with the credit instruments, if any, secured
thereby.
10.27 Moving Expense. "Moving Expense" means the cost of dismantling,
disconnecting, crating, loading., insuring, temporary storage, trans-
porting, unloading and reinstalling of personal property, including
service charges in connection with effecting such reinstallations,
and necessary temporary lodging and transportation of eligible persons.
Moving expense shall not include:
a. Any addition, improvement, alteration'or other physical.
change in or to any structure in connection with.effecting removal
of personal property from, or reinstallation in such structure;
b. The cost of construction or improvement at the new location
to replace property for which compensation was paid in the acquisition;
C. Any loss of, or damage to, personal property caused by the
fault or negligence of the displaced person, his. agent, or employee
in the process of moving where insurance to cover such loss or damage
is or was available;
d. Any payment for moving personal property where such
property is purchased as part of the acquisition;
e. Additional expenses incurred because of living in a
new location;
f. Cost of moving structures, improvements or other real
property in which the displaced person reserved ownership;'-
. - g. Improvements to the reolacemert site; -
h. Interest on loans to cover moving expenses;
i. Loss of goodwill;
j. Loss of business or profits;
11-33
h th
t f ro ert is ersonal or real
determinauion as to w e er an i em o pp y p
shall depend upon how it is identified in the acquisition appraisals
and the closing or settlement statement with respect to the real
property acquisitions: Provided, that no item of property which is
compensable under State and local law to the owner of real property
in the real property acquisition may be treated as tangible personal.
property in computing actual direct losses of tangible personal
property.
10.32 Prepaid Expenses. ."Prepaid expenses" means items paid in .
advance by the seller of real property and prorated between such seller
and the buyer of such real property at the close of -escrow including,
but not limited to real.property taxes, for insurance, homeowners'
association dues and assessment payments.
10.33 Protective Buying. "Protective buying." means the acquisition .
of real property by a public entity for a public use prior to the date
of.initiation of negotiations for.the.project.
10.35 Public Entity. "Public entity" includes.the state, the
Regents of the University of California, a county,.city, city and
county, district, public authority, public agency, and any other
political subdivision or public corporation in the state when
acquiring real property, or any interest therein, in any city or
county for public use.
10..35 Public Use. "Public use" means a use for which real property
may be acquired by eminent domain. r
10.36 Purchases (re Replacement Housing)_
a. The acquisition, construction or rehabilitation of a
dwelling, the purchase and rehabilitation of a substandard dwelling,
the relocation or relocation and rehabilitation of an existing
dwelling, or the entering into a contract to purchase, or for the
construction of, a dwelling to be constructed on a site to be pro-
vided by a builder or developer or on a site which the displaced
person owns or acquires for such purpose. Where completion of con-
struction, rehabilitation, or relocation of a replacement dwelling.
is delayed, for reasons beyond control of the displaced person,
beyond the date by which occupancy is required under this paragraph;
b. The public entity may determine the date of occupancy to
be the date the displaced person enters into a contract for such
construction, rehabilitation, or relocation or for the •purchase
- - LTDOn COmDiel`..iO n, of a C. •:J2_L_ng to oe.C.. -.S L. Led or rehabi tc.ted
if, in fact, the displaced person occupies the replacement dwelling
when the construction of rehabilitation is completed.
Mobilehomes must be registered with the California Department of
Motor Vehicles in the name of the calimant.
J:
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i
1_0.37 Relocatee. "Relocatee" means an
definition of a dis
l
d
y person who meets the
p
ace
person.
10.38 Stated
Rat
"
Mortgage Interest Rate.
"Stated Mortgage Interest
e
means t
he annual percentage rate
to be paid or the debt of
.
a mortgage as
set forth in the mortgage
or other credit instrument.
11 - 35
r~