§ 101-6.102-6 Initiation of negotiations.

The term "initiation of negotiations" means the day on which the acquiring 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. (See §§ 101-6.106-1 and 101-6.107-1.)

§ 101-6.102-7 Interest payment.

The amount, if any, necessary to compensate a displaced person for any increased interest costs, including points paid by the purchaser, if the acquired dwelling was encumbered by a bona fide mortgage. (See § 101-6.1063.)

§ 101-6.102-8 Net earnings.

The term "average annual net earnings" as used in subsection 202(c) of the Act means one-half of any net earnings of the business or farm operation before Federal, State, and local income taxes, during the two taxable years immediately preceding the taxable 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 compensation paid by the business or farm operation to the owner, his spouse, or his dependents during such period. (See § 101-6.105-5.)

§ 101-6.102-9 The Act.

"The Act" means the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (Pub. L. 91-646), approved January 2, 1971.

§ 101-6.102-10 Displacing agency.

"Displacing agency" means a Federal agency in the case of a direct Federal project, or a State agency, as defined in the Act, in the case of a project receiving Federal financial assistance whose project is causing the displacement of a person, business, or a farm operation.

§ 101-6.102-11 Dwelling.

"Dwelling" means the place of permanent or customary and usual abode

of a person. It includes a single-family building; a one-family unit in a multifamily building; a unit of a condominium or cooperative housing project; any other residential unit, including a mobile home which is either considered to be real property under State law or cannot be moved without substantial damage or unreasonable cost or is not a decent, safe, and sanitary dwelling.

§ 101-6.102-12 Family.

A "family" means two or more individuals who are related by blood, adoption, marriage, or legal guardianship who live together as a family unit. However, upon appropriate determination by the head of the Federal agency, others who live together as a family unit may be treated as if they were a family for the purpose of determining benefits under Title II of the Act.

§ 101-6.102-13 Financial means.

For the purpose of determining financial means of families and individuals in accordance with section 205(c) (3) of the Act, a financial means test (ability to pay) must be made to satisfy the requirements set forth in § 1016.106-2(f). In order to meet a financial means test, a determination should be made as to the displaced person's ability to afford the replacement dwelling. In making this determination, the average monthly rental or housing cost (e.g., monthly mortgage payments, insurance for the dwelling unit, property taxes and other reasonable recurring related expenses) which the displaced person will be required to pay, in general, should not exceed 25 percent of the monthly gross income or the present ratio of housing payments to the income of the displaced family or individual, including supplemental payments made by public agencies. The regulation of each Federal agency may provide for determinations that 25 percent of monthly gross income for housing costs or the present ratio of housing payment to the individual income is or is not excessive to the other needs of the displaced family or individual, such as food, clothing, childcare, medical ex

penses, etc. In these cases, the head of the Federal agency shall establish criteria for determining the financial means of the displaced family or individual.

§ 101-6.102-14 Owner.

"Owner" means a person who holds fee title, a life estate, a 99 year lease, or an interest in a cooperative housing project which includes the right of occupancy of a dwelling unit, or is the contract purchaser of any such estate or interest, or who is possessed of such other proprietary interest in the property acquired as, in the judgment of the head of the Federal agency, warrants consideration as ownership. In the case of one who has succeeded to any of the foregoing interests by devise, bequest, inheritance, or operation of law, the tenure of ownership, but not occupancy, of the succeeding owner shall include the tenure of the preceding owner.

§ 101-6.103-1 Assurance of availability.

(a) Availability. No Federal agency should proceed with any phase of a project or authorize a State agency to proceed with any phase of a project which will cause the displacement of any person until the Federal agency has determined, or received satisfactory assurances from the displacing State agency, that within a reasonable period of time prior to a displacement, there will be available on a basis consistent with the requirements of Title VIII of the Civil Rights Act of 1968 (Pub. 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, as described in § 101-6.102-3, equal in number to the number of, and available to, such displaced persons who require such dwellings and reasonably accessible to their places of employment.

(b) Support. The determination or assurances shall be based on a current

survey and analysis of available re placement housing by the displacing agency. The survey and analysis must take into account the competing de mands on available housing. (See § 101-6.108.)

(c) Waiver. Pursuant to section 205(c)(3) of the Act, the head of a Fed eral agency may prescribe by regula tions those situations in which the assurances described in this § 101-6.103-1 may be waived. These waivers shall be limited only to emergency or other extraordinary situations in which imme diate possession of real property is of crucial importance. Each waiver of assurance of replacement housing shall be supported by appropriate findings and a detemination of the necessity for the waiver.

§ 101-6.103-2 Housing provided as a last

resort.

When it is determined that adequate replacement housing is not available and cannot otherwise be made availa ble, the head of the Federal agency may take action or approve action by a State agency to develop replacement housing. Federal agencies taking or approving such action for replacement housing will be guided by the criteria and procedures issued by the Secre tary of Housing and Urban Development (24 CFR Part 43, Subpart A) in accordance with the provision concerning section 206(a) of the Act in the President's memorandum of Janu ary 4, 1971. A State agency taking such action shall comply with the requirements and procedures of the Federal agency which provides the Federal financial assistance.

§ 101-6.103-3 Loans for planning and preliminary expenses.

Federal agencies will be guided by the criteria and procedures developed by the Secretary of Housing and Urban Development (24 CFR Part 43. Subpart B) when providing loans to eligible borrowers for planning and other preliminary expenses authorized under section 215 of the Act. A State agency providing such loans shall comply with the requirements and procedures of the Federal agency which provides the Federal financial

assistance in accordance with the President's memorandum of January 4, 1971.

§ 101-6.104 Moving and related expenses.

§ 101-6.104-1 Eligibility.

(a) Any displaced person (including one who conducts a business 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 personal property from real property, as a result of the acquisition of such real property in whole or part, or as a result of a written notice of the acquiring agency to vacate real property, or solely for the purposes of section 202 (a) and (b) of the Act as a result of the acquisition of, or a written notice of the acquiring agency to vacate, other real property on which such person conducts a farm or business, is eligible to receive a payment for moving expenses.

§ 101-6.104-2 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 exceed 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 12 months when the displacing agency determines that storage is necessary in connection with relocation;

(5) Insurance premiums covering loss and damage of personal property while in storage or transit;

(6) Removal, reinstallation, reestablishment, including such modification as deemed necessary by the Federal 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 property, 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;

(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; and

(8) Other reasonable expenses determined to be allowable under regulations issued by the head of the Federal agency.

(b) Limitations. (1) If the displaced person accomplishes the move himself, the amount of payment shall not exceed the estimated cost of moving commercially, unless the head of the responsible Federal agency determines a greater amount is justified.

(2) If an item of personal property that is used in connection with any business or farm operation is not moved but is 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 cost of moving, whichever is less.

(3) If personal property that 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 Federal agency responsible for the program or project causing the displacement, the allowable reimbursement for the expense of moving the personal property shall not exceed the difference between 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 cases of moving of junk yards, stockpiled sand, gravel, miner

(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 provided 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;

(f) Loss of profits;

(g) Loss of trained employees;

(h) Personal injury;

(i) Cost of preparing the application for moving and related expenses:

(j) Payment of search cost in connection with locating a replacement dwelling; and

(k) Such other items as the head of the Federal agency determines should be excluded.

§ 101-6.104-4 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; and

(4) In the discretion of the displacing agency, necessary broker, real estate, or other professional fees to locate a replacement business or farm operation under circumstances prescribed in Federal agency regulations.

(b) Limitation. The total amount a displaced person may be paid for searching expenses may not exceed $500 unless the head of the Federal agency determines that a greater

amount is justified because of the circumstances involved.

§ 101-6.104-5 Actual direct losses by business or farm operation.

If the displaced person does not move personal property, he shall be required to make a bona fide effort to sell it, and shall be reimbursed 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 location prior to displacement and the sale proceeds, or the estimated costs of moving 50 miles, whichever is less.

(b) When the personal property is abandoned, the displaced person is entitled to payment for the fair market 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.

§ 101-6.105 Payments in lieu of moving and related expenses.

§ 101-6.105-1 Dwellings-schedules.

(a) Subsection 202(b) of the Act provides that at the option of the displaced 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 respective State highway departments shall be used as the basis for the agency's schedules. These schedules should provide for adequate reimbursement in every locality. The Federal Highway Administration will approve all such schedules on a current basis, and will make them available to displacing agencies upon request.

(b) Where there are no highway department schedules, the heads of the Federal agencies undertaking or providing Federal financial assistance to a project causing displacement in such areas shall cooperate in the development of a single moving expense

schedule for the use of all displacing agencies.

(c) 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.

§ 101-6.105-2 Businesses-eligibility.

- (a) A person displaced from his business, as defined in subsection 101(7) (A), (B), and (C) of the Act, is eligible under subsection 202(c) of the Act to receive a fixed payment in lieu of moving and related expenses. Care must be exercised in each instance, however, to ensure that such payments are made only in connection with a bona fide business.

(b) A payment in lieu of actual reasonable moving expenses may be made under section 202(c) of the Act to the displaced owner of a business only if the local agency determines that, during the two taxable years prior to displacement, or during such other period as the head of the Federal agency determines to be more equitable, the business:

(1) Had average annual gross receipts of at least $2,000 in value; or

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

(3) Contributed at least 33% percent of the average gross annual income of the owner(s), including income from all sources, such as welfare.

If the application of the above criteria obviously creates an inequity in a given case, the head of the Federal agency may approve the use of other criteria as determined appropriate.

(c) Those businesses, described in subsection 101(7)(D) of the Act are not eligible under subsection 202(c) of the Act for a payment in lieu of moving and related expenses.

(d) Where a displaced person is displaced from his place of business, no payment shall be made under subsection 202(c) of the Act 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) Type of business conducted by the displaced concern;

(2) Nature of the clientele of the displaced concern; and

(3) Relative importance of the present and proposed location to the displaced business and the availability of a suitable replacement location for the displaced person.

§ 101-6.105-3 Farms.

(a) Eligibility. A payment in lieu of actual reasonable moving expenses may be made to the displaced owner of a farm operation according to the criteria established for displaced owners of businesses. (See § 101-6.105-2.) Such a payment may be made to the displaced operator of a farm operation only if the acquiring agency determines that the farm operator has discontinued his entire farm operation at the present location or has relocated the entire farm operation.

(b) Partial taking. In the case of a partial taking, the operator will be considered to have been displaced from a farm operation if:

(1) The part taken met the definition of a farm operation prior to the taking; or

(2) The taking caused the operator to be displaced from the farm operation on the remaining land; or

(3) The taking caused such a substantial change in the nature of the existing farm operation as to constitute a displacement.

If the use of the above criteria obviously creates an inequity in a given case, the head of the Federal agency may approve the use of other criteria as determined appropriate.

§ 101-6.105-4 Nonprofit organizations.

If a nonprofit organization is displaced, no payment shall be made under subsection 202(c) of the Act until after the head of the Federal agency determines: