(c) Determination on review by HUD. The determination by HUD shall include, but need not be limited to:

(1) The Area Director's decision on reconsideration of the claim;

(2) Findings of fact and conclusions of law, including any pertinent explanation or rationale;

(3) A statement of claimant's right to seek judicial review.

(d) Final determinations not based on merits. A State agency's refusal to review a claim (e.g., because of claimant's failure to request such review within the required time period) shall be considered as a "final determination" and upon the claimant's request shall be reviewed by HUD. If the Area Director finds that the State agency's refusal to review the claim was unreasonable, the claim shall be remanded to the State agency for review on its merits within 30 days of the State agency's receipt of the remanded claim. If the State agency's refusal to hear the claim is not found to have been unreasonable, the Area Director shall so notify the claimant and inform him that he may have a right to judicial review.

§ 42.255 Review procedure in connection with refusals to waive time limitation on filing of claims.

(a) State agency review. Whenever a State agency rejects a request by a claimant for a waiver of the time limits provided in § 42.60 for filing payment claims, a claimant may file a written request for review of this decision in accordance with the procedures set forth in §§ 42.235 and 42.240, except that such written request for review must be filed within 30 days of the claimant's receipt of the State agency's determination. If after reviewing the claim the State agency determines that the time limits for filing claims should be waived, the State agency shall promptly request HUD concurrence in accordance with § 42.215 and the claimant shall be so informed.

(b) HUD review. If upon review the State agency determines that the time limits for filing claims should not be waived, the claimant should be so informed in accordance with § 42.240 (c). If the claimant believes himself aggrieved by this determination, he may then file a written request, in accordance with the procedures of §§ 42.245 and 42.250, to the Director of the Area Office, which has responsibility for the locality wherein the displacement oc

curred, for a review of the reasonableness of the State agency's determination in refusing to grant the waiver. If the Area Director determines that there was good cause for the failure to file within the time period of § 42.60, he shall then remand the claim to the State agency for consideration on the merits and the claimant shall be so informed. If the Area Director concurs in the State agency's determination that a waiver should not be granted, both the State agency and the claimant shall be informed that he may have a right to judicial review.

§ 42.260 Extension of time limits.

The time limits specified in §§ 42.235 and 42.245 may be extended for good cause by the State agency or by the Area Director, respectively.

§ 42.265 Recommendations by third party.

Upon agreement between the claimant and the State agency, a mutually acceptable third party or parties may review the claim and make advisory recommendations thereon to the head of the State agency for its final determination. The agreement between the claimant and the State agency may provide for an extension of the time limit for State agency review set out in § 42.240 (d). In reviewing the claim and making recommendations to the State agency, the third party or parties should be guided by the provisions of § 42.240 (b) and paragraphs (c) (1) and (2) of § 42.240. The requirements of these sections and of paragraph (c)(3) of § 42.240 remain fully applicable to the State agency.

§ 42.270 Review of files by claimant.

Except for confidential material, and except to the extent specifically prohibited by law, a State agency shall permit the claimant to inspect all files and records bearing upon his claim or the prosecution of his grievance. The State agency may, however, impose reasonable conditions on the claimant's right to inspect.

This subpart, and all applicable rules and regulations on which State agency and HUD determinations are based, shall be liberally construed so as to fulfill the statutory purpose as declared in section 201 of the Act of "fair and equitable treatment" in order that displaced persons "not suffer disproportionate injuries as a result of programs designed for the benefit of the public as a whole." § 42.285 Right 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 proceedings set forth in this subpart.

§ 42.290 Judicial review.

Nothing in this subpart shall in any way preclude or limit a claimant 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 subpart.

APPENDIX A-EXAMPLE OF COMPUTATION OF PAYMENT FOR INCREASED INTEREST COST UNDER § 42.90 (c) (2) 1

43.6

1

43.7

DWELLING TO BE ACQUIRED

Submission of replacement housing plan for comment.

Determination by displacing agency of feasibility and compliance.

Approval of plan by Federal agency. Implementation of the replacement

housing plan.

Housing production.

Advice and technical assistance by HUD and other Federal agencies. 43.14 Aggregate housing under jointly financed programs.

43.15 Displaced person not required to accept replacement dwelling in lieu of acquisition payments and supplemental payment.

43.16 Conformity with the Act and other statutes, policies, and procedures.

Subpart B-Loans for Planning and Preliminary Expenses-Relocation Seed-Money Loans

43.25 Purpose.

43.26 Legislative authority.

43.27 Applicability to Federal agencies.

43.28

Definitions.

43.29 Eligible applicants.

of

$88.57

43.30

43.31

43.32

$81.02

$7.55

Eligible expenses.

Terms and conditions for loans.

Procedures for provision of section 215 loans.

137 F.R. 14770, July 25, 1972.

84-076-73- -9

It is the purpose of this part to set forth uniform criteria and procedures for the implementation of section 206 (a), which shall be applied and administered to promote the purposes and policies of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (84 Stat. 1894). § 43.2 Legislative authority.

The legislative authority is pursuant to section 206(a) of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (84 Stat. 1894).

§ 43.3 Applicability.

Pursuant to paragraph 4 of the President's memorandum of January 4, 1971, to the heads of departments and agencies concerning the Uniform Relocation and Real Property Acquisition Policies Act of 1970, these criteria and procedures are applicable to all Federal and State agencies administering Federal projects causing residential displacement. § 43.4 Definitions.

For purposes of this part the following definitions shall apply:

(a) "Federal agency" means any department, agency or instrumentality in the executive branch of the U.S. Government (except the National Capital Housing Authority), any wholly owned Government corporation (except the District of Columbia Redevelopment Land Agency) and the Architect of the

137 F.R. 14770, July 25, 1972.

Capitol, the Federal Reserve Banks and branches thereof.

(b) "State" means any of the several States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, the Trust Territory of the Pacific Islands, or any political subdivision thereof.

(c) "State agency" means the National Capital Housing Authority, the District of Columbia Redevelopment Land Agency, and any department, agency, or instrumentality of a State or of a political subdivision of a State, or any department, agency, or instrumentality of two or more States or of two or more political subdivisions of a State or States.

(d) "Federal financial assistance" means a grant, loan or contribution provided by the United States, except any Federal guarantee or insurance, and any annual payment or capital loan to the District of Columbia.

(e) "Displacing agency" means a Federal agency in the case of a direct Federal project causing displacement, and a State agency in the case of a project receiving Federal financial assistance and causing displacement.

(f) "Federal project" means any direct Federal project or any project receving Federal financial assistance.

(g) "HUD" means the Area Office (or, where none exists, the Regional Office of the Department of Housing and Urban Development).

§ 43.5 Determination that section 206(a) may be utilized.

The Act requires: That displacing agencies provide assurance that within a reasonable period of time prior to displacement adequate replacement hous ing will be available for those to be displaced; that they provide current and continuing information on the availability, prices, and rentals of comparable replacement housing; and that no person may be displaced unless adequate replacement housing is available to such person. Whenever in connection with the planning, development, or execution of a Federal or federally assisted project, it appears to the head of the displacing agency that adequate replacement housing may not be available to satisfy the requirements of the Act, or that such housing is not available on a nondiscriminatory basis, the head of the displacing agency shall undertake the

following, using existing data and supplementing them where necessary, to ascertain more precisely the need to utilize section 206 (a) to provide such housing.

(a) Inventory of household relocation needs. Prepare an inventory of the characteristics and relocation needs of the families and individuals to be displaced.

(b) Inventory of available housing. Prepare (1) an inventory of currently available comparable replacement sale and rental housing, and (2) an inventory of housing planned to be constructed or rehabilitated and which will be available as comparable replacement housing. In preparing such inventories, the displacing agency shall consult Federal, State, or local agencies which may be able to provide such housing or are knowledgeable with respect to housing programs.

(c) Inventory of other displacement projects. In order to avoid reliance by more than one displacing agency on the same replacement housing resources, the displacing agency shall coordinate with the other displacing agencies with respect to the utilization and allocation of these resources.

(d) Analysis of inventories. Correlate and analyze the information contained in the above inventories.

§ 43.6 Determination

to use project funds under section 206(a).

If the analysis undertaken in accordance with § 43.5 indicates that adequate replacement housing is not or will not be available to satisfy the requirements of the Act, the head of the displacing agency may make a determination to use project funds under section 206(a) to provide such necessary replacement housing. In the case of a federally assisted project, the displacing agency shall secure prior approval for such use of project funds under section 206(a) from the Federal agency providing financial assistance for the project. In the case of a federally assisted project, the funds used to provide housing under section 206(a) shall be treated in the same manner as other costs of relocation payments and assistance and shall be subject to the provisions of section 211 of the Act with respect to Federal-local cost sharing.

§ 43.7 Development of replacement housing plan.

(a) General. Following determination pursuant to § 43.6, the head of the dis

placing agency, in accordance with paragraph (b) of this section or this paragraph (a), shall develop or cause to be developed a replacement housing plan to produce adequate replacement housing. The plan shall specify how, when and where the housing will be provided, how it will be financed and the amount of project funds to be diverted to such housing, the prices at which it will be rented or sold to the families and individuals to be displaced, the arrangements for housing management and social services, as appropriate, the environmental suitability of the location and environmental impact of the proposed housing, the arrangements for maintaining rent levels appropriate for the persons to be rehoused, and the disposition of proceeds from rental, sale, or resale of such housing. In the development of the plan, innovative approaches and methods for the provision of suitable replacement housing are encouraged. The use of small and minority firms and firms located in or near the project area, and the employment of residents of the project area, are also encouraged. If 25 units or less of replacement housing need to be provided, the head of the displacing agency may proceed under paragraph (d) of this section.

(b) Replacement housing plan developed by displacing agency. If the head of the displacing agency elects to develop the replacement housing plan, he shall appoint an advisory committee which shall consult with and provide advice and assistance to the displacing agency in the development of the plan. The advisory committee shall include representatives of the following: The displacing agency; the chief executive officer of the jurisdiction in which displacement will occur; and State and local agencies knowledgeable regarding housing in the area, including but not limited to the local housing authority, the local redevelopment agency and the centralized relocation agency, if any. In addition, the committee should include representatives of other appropirate public (e.g., local and areawide planning agencies), and private groups knowledgeable regarding housing and the problems of housing discrimination, as well as representatives of affected residents to be displaced. The failure of any person to particiapte on the committee shall not preclude the committee from satisfying the requirements of this section.

(c) Replacement housing plan developed by an agency other than displacing agency. If the head of the displacing agency elects not to develop a replacement housing plan under paragraph (b) of this section, he shall engage a State or local housing agency, or other agency or organization having experience in the administration or conduct of housing programs to develop the replacement housing plan. In such case, the head of the displacing agency shall appoint an advisory committee to work with the agency or organization so engaged. The advisory committee shall be constituted and shall function as under the provisions of paragraph (b) of this section.

(d) Provision of housing by head of displacing agency-25 units or less. If the total need for replacement housing to be provided under section 206(a) by a single project (or in the case of joint development under § 43.14, by several projects), is for 25 units or less, the head of the displacing agency may plan and provide such housing without the assistance of an advisory committee or a housing or other agency pursuant to paragraph (b) or paragraph (c) of this section. The head of the displacing agency undertaking such activities shall be guided by the HUD project selection criteria (24 CFR Part 200, 36 F.R. 203, January 7, 1972) and minimum property standards for comparable Federal housing programs and shall comply with the policies, requirements and procedures specified in § 43.16.

(e) Consultation. From the inception of the replacement housing plan and continuing during the course of its development in accordance with this part, the agency developing the plan shall consult with HUD (or the Farmers Home Administration, where appropriate) and with the residents to be displaced or their representatives.

(f) Use of section 215 for planning and other preliminary expenses. Consideration should be given to the opportunities for stimulating the development of the required supply of housing through the use of seed money loans for planning and other preliminary expenses under section 215 of the Act (84 Stat. 1901).

(b) or (c) to HUD (or the Farmers Home Administration, where appropriate) and the Regional and State Clearinghouse designated pursuant to OMB Circular A-95. HUD (or the Farmers Home Administration, where appropriate) shall review and comment on the plan with respect to plan feasibility, project selection, minimum property standards, environmental standards and impact, compatibility with local and areawide housing plans (provided that such plans are in compliance with the authorities cited in § 43.16) and compliance with the Civil Rights Acts and Executive orders specified in § 43.16. The Regional and State Clearinghouse shall review and comment on the plan with respect to its compatibility with the areawide housing plan or strategy developed or being developed by the Regional Planning Agency. HUD (or the Farmers Home Administration, where appropriate) and the Regional and State Clearinghouse shall review the plan and submit their comments to the displacing agency within 30 calendar days after receipt of the plan.

§ 43.9 Determination by displacing agency of feasibility and compliance.

(a)

Upon receipt and consideration of the comments on the plan, or passage of the 30-day review period provided in § 43.8, without receiving any comments, the displacing agency shall determine: Whether the plan is feasible; (b) whether it complies with (1) Federal standards and regulations with respect to HUD project selection criteria (except criteria six, seven and eight) (24 CFR Part 200, 36 F.R. 203, January 7, 1972) and minimum property standards, (2) environmental standards and procedures, and (3) the dwelling and relocation standards, Civil Rights Acts and Executive orders specified in § 43.16; and (c) whether the plan is compatible with local housing plans and the areawide housing plan or strategy (provided such plans and strategies are in compliance with the authorities cited in § 43.16). If any of the above determinations by the displacing agency is negative, the displacing agency (taking into consideration any comments received in connection with the reviews provided in § 43.8) shall revise the plan as necessary. Unless time does not permit, any substantial modifications in the plan, except those made in accord with such comments, should be submit