HomeMy Public PortalAboutResolution - 74-07- 19740410 - Adopt polocies for relocRESOLUTION NO.
74-7
RESOLUTION ADOPTING RELOCATION ASSISTANCE
PROGRAM AND RULES AND REGULATIONS TO
IMPLEMENT PAYMENTS PURSUANT THERETO.
WHEREAS, Chapter 1574, California Statutes of 1971 (Assembly
Bill No. 533), requires public entities, such as the Midpenin-
sula Regional Park District, to provide relocation assistance
to persons,businesses, and farm operations displaced due to
the acquistion of property by the District for public use; and
WHEREAS, the Board of Directors of the Midpeninsula Regional
Park District recognizes the need for, and the desirability
of, an adopted Relocation Assistance Program; and
WHEREAS, in the opinion of the Board of Directors, the
recommendations of the General Manager for implementation
of a District Relocation Assistance Program should be
implemented;
NOW, THEREFORE, the Board of Directors of the Midpeninsula
Regional Park District does RESOLVE as follows:
Section 1. In cases where relocation is necessary
or appropriate in instances of displacement caused by the
Midpeninsula Regional Park District to achieve public use,
the District shall use and adhere to the State Relocation
Guidelines (State Department of Housing and Community
Development) dated October 17, 1973, which are hereby
adopted by reference.
A copy of said guidelines is on file with the Secretary
of the District for inspection by the public at all
reasonable times.
Section 2. The General Manager shall be respon-
sible for the implementation of Chapter 1574, California
Statutues of 1971, and is hereby authorized to establish
procedures for said implementation.
Section 3. The General Manager is authorized
to make relocation assistance payments as provided in
Chapter 1574, California Statutes of 1971, upon submission
of claims approved by the Board of Directors.
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Section 4. The following standards for a decent,
safe, and sanitary dwelling hereby are adopted:
a. The dwelling shall conform with local building,
housing, and occupancy codes for existing structures.
b. The dwelling shall have a continuing supply
of drinkable water.
c. The dwelling shall have a kitchen with hot
and cold water, a sink with sewage connections, and an
area for a stove and a refrigerator with proper utility
connections.
d. The dwelling shall have a heating system
which is adequate for the entire living area.
e. The dwelling shall have a well -lighted,
ventilated bathroom affording privacy to a person within
it. The bathroom shall contain a lavatory basin and a
bathtub or stall shower, both being properly connected to
an adequate supply of hot and cold running water, and shall
contain a flush toilet, all in good working order and properly
connected to a sewage system.
f. The dwelling shall have provision for artificial
lighting in each room.
g. The dwelling shall be structurally sound and
adequately maintained.
h. The dwelling shall have a safe, unobstructed
exit leading to a safe, open space at ground level. In a
building of three or more stories, each common corridor
shall have at least two such safe exits.
i. The dwelling shall have at least 150 square
feet of habitable floor space for the first occupant and
at least 100 square feet of habitable floor space for each
additional occupant. Habitable floor space means the area
used for sleeping, living, cooking, and dining purposes.
It does not include closets, pantries, bathrooms, service
or utility rooms, hallways, foyers, unfinished attics,
storage spaces, cellars, and similar spaces.
j. The division of the interior area of the dwelling
shall provide an adequate number of rooms for the family. All
the rooms shall be adequately ventilated.
Section 5. The General Manager is authorized to
establish special standards applicable to rooming houses,
sleeping -room facilities, and mobile homes in order to
determine if such a facility constitutes a decent, safe,
and sanitary dwelling.
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Section 6. The following room count moving expense
schedule, which provides a flat amount based on the number
of rooms of furniture and personal belongings which must
be moved, hereby is adopted:
a. If the tenant furnishes all or a major part
of the household equipment, payment will be as follows:
1 Room $ 50
2 Rooms 80
3 Rooms 120
4 Rooms 160
5 Rooms $200
6 Rooms 240
7 Rooms 280
8 Rooms
or More 300
b. If the landlord owns the furniture and the
tenant furnishes none or only a small amount of the household
equipment, payment will be as follows:
First room - $15
Each additional room - $10
Maximum payment - $300
Section 7. The following mobile home square foot
schedule for moving expenses, which provides payment of
moving expenses based upon the length of the external wall
measured at floor level,. hereby is adopted:
300 square feet
301 square feet
401 square feet
501 square feet
601 square feet
Over 700 square
or less
to 400 square
to 500 square
to 600 square
to 700 square
feet
$130
feet 180
feet 210
feet 240
feet 270
300
For double units, the payment shall be computed for each
separate component, but the total may not exceed $300.
In addition, a dislocation allowance of $200 will be made.
* * * * * * * * * * * * * *
RESOLUTION NO.
74-7
PASSED AND ADOPTED by the Board of Directors of the
Midpeninsula Regional Park District on
April 10 1974
at a regular meeting thereof, by the following vote:
AYES: Condron, Duffy, Hanko, Peters, Wendin
NOES: None
ABSTAIN: None
ABSENT: None
ATTEST: APPROVED:
Secretary President, Board of Directors
r/fdelf(iiint. 6' 10 1
I, the Secretary of the Midpeninsula Regional Park District,
hereby certify that the above is a true and correct copy of a resolu-
tion duly adopted by the Board of Directors of the District by the
above vote at a meeting thereof duly held and called on the above
date.
Secretary
STATE OF CALIFORNIA
ELOCATION GUIDELINES
Qida�we lei. 49e#ict 9mpie#ne4aia#i
aG ealibiutia ReZ3catio*t Ild4istaace 4at
Odd 17, 1973
Ronald Reagan, Governor Elwood Teague, Chairman
State of California Commission of Housing and Community' Development
STATE OF CALIFORNIA
Business and Transportation Agency
Department of Housing and Community Development
RELOCATION GUIDELINES
OCTOBER 17,1973
Gorden S. Hill
Chief
Division of Research and Assistance
Larry Kurmel
Administrator
Relocation Assistance Program
STATE OF CALIFORNIA
RONALD REAGAN, Governor
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
CENTRAL RELOCATION AGENCY QUESTIONNAIRE
Gentlemen:
The Department of Housing and Community Development, in cooperation with the
Department of Transportation, is attempting to compile an up-to-date roster of
"central relocation agencies" (re: AB 2211 - Section 7261.6 California
Government Code). The roster will be used as a mailing list for circulating
information of concern to all relocation agencies. In order to accomplish this
task the department would appreciate your completing and returning this survey
sheet to:
Department of Housing & Community Development
1400 Tenth Street, Room 214
Sacramento, California 95814
Attention: Larry Kurmel, Administrator
Relocation Assistance Program
1. Has a central relocation agency been established for your city (or county)?
YES NO
a. If YES, what agency acts in this capacity?
Agency Name
Address
Telephone Number
Executive Officer
b. If NO, what organization provides (or would provide) relocation services
for city/county agencies causing displacement?
Agency Name
Address
Telephone Number
Executive Officer
2. Has your city/county conducted a relocation program, related to public
works projects, within the past three years? YES NO
3. Would your city/county consider contracting to obtain relocation services?
YES NO
4. Would your city/county contract to provide such services? YES NO
STATE OF CALIFORNIA
RONALD REAGAN, Governor
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
December 4, 1973
Gentlemen:
The enclosed State Relocation Guidelines were adopted by the California
Commission of Housing and Community Development on October 17, 1973, under the
legislative mandate contained in AB 1040 of the 1972 Legislative Session. The
guidelines closely parallel and are consistent with the guidelines developed
by the Federal Office of Management and Budget pursuant to Public Law 91-646
(Uniform Relocation Assistance and Land Acquisition Policies of 1970).
The guidelines are intended to establish a statewide uniform relocation policy
and, as such, provide a consistent context for local interpretation of specific
cases. State Relocation Law and guidelines are applicable in all instances of
displacement caused by public agencies to achieve public use.
For your convenience the following items are included in this transmittal:
1. State Relocation Assistance Law - AB 533, Chapter 16, Sections 7260
et. seq. California Health and Safety Code.
2. State Relocation Guidelines - Pursuant to AB 1040, Chapter 1307
California Government Code and Sections 37042 and 37109.5, California
Health and Safety Code.
3. "In the Path of Progress" - Yale Law Journal, Volume 82, Number 2,
December 1972. This article documents basic relocation issues.
The date by which local jurisdictions must adopt the enclosed State Guidelines
is March 7, 1974.
The Department of Housing and Community Development will provide assistance
and consultation to assure adequate completion of this task. Such requests
or questions regarding the enclosed documents should be directed to:
Department of Housing & Community Development
1400 Tenth Street, Room 214
Sacramento, California 95814
Attention: Larry Kurmel , Administrator
Relocation Assistance Program
(916) 322-3111
The intent of this mailing is to make relocation guidelines available to
local jurisdictions as provided by law. The Department recognizes that other
operating departments within city and county government, e.g. city attorneys,
redevelopment agencies, community development functions and public works
departments, will utilize these documents. All public agencies involved in
relocation should familiarize themselves with both the law and guidelines to
avoid disruption of project development and the possibility of litigation.
Gorden S. Hill
Chief
Division of Research & Assistance
Enclosure
v
TABLE OF CONTENTS
I. State Relocation Assistance Law I-1
II. State Relocation Guidelines II -1
III. "In the Path of Progress" III -1
)((4"''
(b) "Person" means any individual, partnership, corporation, or association.
(c) ."Displaced person" means any person who moves from real property, or who
moves his personal property from real property, 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.
(d) "Business" means any lawful activity, except a farm operation, conducted
primarily:
(1) For the purchase, sale, lease, or rental of personal and real property, and for
the manufacture, processing, or marketing of products, commodities, or any other
personal property;
(2) For the sale of services to the public;
(3) By a nonprofit organization; or
(4) Solely for the purpose of Section 7262 for assisting in the purchase, sale,
resale, manufacture, processing, or marketing of products, 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.
(e) "Farm operation" means any activity conducted solely or primarily for the
production of one or more agricultural products or commodities, including timber, for
sale or home use, and customarily producing such products or commodities in sufficient
quantity to be capable of contributing materially to the operator's support.
(f) "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.
(g) "Public use" means a use for which real property may be acquired by
eminent domain.
(h) "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. •
Sec. 7261. Relocation advisory assistance by public entity; local offices
(a) A public entity shall provide relocation advisory assistance to.any person,
business, or farm operation displaced because of the acquisition of real property by
that public entity for public use.
(b) In giving such assistance, the public entity may establish local relocation
advisory assistance offices to assist in obtaining replacement facilities for persons,
business, and farm operations which find that it is necessary to relocate because of
the acquisition of real property by the public entity.
(c) Such advisory assistance shall include:
(1) Determining the need, if any, of displaced persons for relocation assistance.
GOVERNMENT CODE
CHAPTER 16. RELOCATION ASSISTANCE
Section
7260. Definitions.
7261. Relocation advisory assistance by public entity; local offices.
7261.5 Contracts with private entity for services; use of other governmental.
entities.
7261.6 Relocation assistance coordination (effective January 1, 1974).
7262. Compensation for displaced person; amount.
7263. Additional payment to displaced dwelling owner; amount.
7263.5 Lease of condominium deemed purchase.
7264. Additional payment to displaced individual or family renters; amount.
7264.5 Comparable replacement housing; use of funds; tax assessment information.
7265. Additional payment to contiguous property owner; amount.
7265.3 Payments and advice to person who moves as result of rehabilitation or
demolition program.
7265.4 Expenses of owner; reimbursement.
7266. Review by public entity; finality.
7267. Guidelines for public entities.
7267.1 Acquisition by negotiation; appraisal.
7267.2 Just compensation; offer of fair market value; written statement.
7267.3 Scheduling construction or development; written notice; time.
7267.4 Fair rental value; short-term occupier.
7267.5 Coercion to compel agreement on price.
7267.6 Condemnation proceedings; institution by public entity instead of by
owner.
7267.7 Acquisition of entire property; avoidance of uneconomic remnant.
7267.8 Rules and regulations of public entities'; priority of federal law.
7268. Guidelines by commission of housing and community development for pay-
ments and relocation assistance; assistance to public entities.
7269. Status of payments; income tax and public assistance.
7270. Existence of damages on date of enactment of chapter.
7271. Severability.
7272. Protection of owner or occupant; law governing.
7272.3 Legislative intent; minimum requirements; federal funds.
7272.4 Existent elements of damage.
7273. Relocation assistance for displaced persons.
7274. Construction of sections 7267 to 7267.7.
Sec. 7260. Definitions
As used in this chapter:
(a) "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.
If the agency disapproves the plan or finds that the plan conflicts in the use of
relocation resources with those plans filed by other public entities or that adequate
resources are not available in places and at times necessary to meet the relocation
needs as set forth in one or more of the plans it shall call a meeting of the public
entities concerned as soon as possible. At such meeting, the agency shall try to
resolve such conflicts as exist or insure that adequate relocation resources are
developed to meet such needs.
The agency may direct modifications of a plan in the case of unresolved conflicts and
may extend its approval deadline by 30 days to determine whether such modifications
affect such relocation plans. Additional extensions may be granted for periods of
30 days with the consent of all affected parties. Where modification to a relocation
plan is directed by the agency, the public entity may appeal to the relocation appeals
board established pursuant to Section 33417.5 of the Health and Safety Code. If no
suchrelocation appeals board has been established, the public entity may appeal to
the legislative body creating the central relocation agency.
Approval of a relocation plan will constitute a finding by the agency that it has
reasonable assurance that adequate relocation resources exist within the requirements
of law which will be available at the times required by the plan.
The central relocation agency shall coordinate the execution of each public entity's
relocation plans and shall share with each public entity making a request the relocation
information of all other public entities. The central relocation agency may contract
with adjoining cities or counties to perform relocation and central relocation services.
Public entities with displacement of less than 5 percent of the local agency's total
local annual displacement based on all relocation plans filed and state agencies shall
be exempt from the requirement of approval of their relocation plan prior to its
execution.
A public entity may amend its relocation plan during any fiscal year by filing an
amended plan with the central relocation agency and obtaining its:approval. All
amended plans must have approval before execution may occur and the central relocation
agency shall approve or disapprove amended plans within 30 days or approval will be
automatic.
Execution of any relocation plan must be in accordance with the approved relocation
plan or the public entity may not displace any persons. Failure to file a relocation
plan and obtain approval when required, prior to displacement, may subject the public
entity to an order from the central relocation agency to desist from any displacement.
Sec. 7262. Compensation for displaced person; amount
(a) As a part of the cost of acquisition of real property for a public use, a
public entity shall compensate a displaced person for his:
(1) Actual and reasonable expense in moving himself, family, business, or farm
operation, including moving personal property.
(2) Actual direct losses of tangible personal property as a result of moving or
discontinuing a business or farm operation, but not to exceed an amount equal to the
reasonable expenses that would have been required to relocate such property, as
determined by the public entity.
(2) Providing current and continuing information on the availability, prices, and
rentals of comparable decent, safe, and sanitary housing for displaced persons, and
of comparable commercial properties and locations for displaced businesses.
(3) Assuring that, within a reasonable period of time, prior to displacement, to
the extent that it can be reasonably accomplished, there will be available 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 accessible to their places of employment, except that, in the case
of a federally funded project, a waiver may be obtained from the federal government.
(4) Assisting a displaced person displaced from his business or farm operation in
obtaining and becoming established in a suitable replacement location.
(5) Supplying information concerning federal and state housing programs, disaster
loan programs, and other federal or state programs offering assistance to displaced
persons.
(6) Providing other advisory services to displaced persons in order to minimize
hardships to such persons.
(d) The public entity shall coordinate its relocation assistance program with
the project work necessitating the displacement and with other planned or proposed
activities of other public entities in the community or nearby areas which may affect
the implementation of its relocation assistance program.
Sec. 7261.5 Contracts with private entity for services; use of other governmental
entities
In order to prevent unnecessary expenses and duplications of functions, and to promote
uniform and effective administration of relocation assistance programs for displaced
persons under this chapter, a public entity may enter into a contract with any individual,
firm, association, or corporation for services in connection with such program; or may
carry out its functions under this chapter through any federal, state, or local govern—
mental agency having an estabilished organization for conducting relocation assistance
programs. Any public entity may, in carrying out its relocation assistance activities,
utilize the services of state or local housing agencies or other agencies having
experience in the administration or conduct of similar housing assistance activities.
Sec. 7261.6 Relocation Assistance Coordination (Section 7261.6 is added to the
Government Code effective January 1, 1974)
i
7261.6 Notwithstanding any other provision of this chapter, any city, county, or
city and county may establish a central relocation agency to coordinate all relocation
activities within the jurisdiction of the local agency. A county relocation agency
shall have jurisdiction only over those relocation activities which take place within
the unincorporated areas of the county. Every public entity within the local agency's
jurisdiction (required to do so) shall file the relocation rules and regulations,
which it is required to adopt pursuant to Section 7267.8 with the central relocation
agency and shall file annually its relocation plans by June 1st of each year for the
subsequent fiscal year. The central relocation agency shall approve or disapprove the
public entity's relocation plan by July 1 or the plan will automatically become effective.
((-ftN
adequate to accommodate the displaced owner, reasonably accessible to public
services and the displaced person's place of employment, and available on the
market.
(2) The amount, if any, which will compensate the displaced owner for any increased
interest costs which he is required to pay for financing the acquisition of a
comparable replacement dwelling. The amount shall be paid only if the acquired dwelling
was encumbered by a bona fide mortgage which was a valid lien on such dwelling for not
less than 180 days prior to the initiation of negotiations for the acquisition of such
dwelling. The amount shall be equal to the excess in the aggregate interest and other
debt servicecosts of that amount of the principal of the mortgage on the replacement
dwelling which is equal to the unpaid balance of the mortgage on the acquired dwelling,
over the remainder term of the mortgage on the acquired dwelling, reduced to discounted
present value. Thediscount 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) Reasonable expenses incurred by the displaced owner for evidence of title, recording
fees, and other closing costs incident to the purchase of the replacement dwelling,
but not including prepaid expenses.
(c) Such payment shall be made only to a displaced owner who purchases and
occupies a replacement dwelling that meets standards established by the public entity
within one year subsequent to the date on which he moves from the dwelling acquired by
the public entity or the date on which he receives from the public entity final payment
of all costs of the dwelling acquired by the public entity, whichever is the later
date.
Sec. 7263.5 Lease of condominium deemed purchase
For the purposes of Section 7263, the leasing of a condominium for a 99 -year period,
or for a term which exceeds the life expectancy of the displaced person as determined
from the most recent life tables in Vital Statistics of the United States, as published
by the Public Health Service of the Department of Health, Education, and Welfare,
shall be deemed a purchase of the condominium.
Sec. 7264. Additional payment to displaced individual or family renters; amount
(a) In addition to the payments required by Section 7262, as a part of the cost
of acquisition, the public entity shall make a payment to any displaced person displaced
from any dwelling not eligible to receive a payment under Section 7263 which was actually
and lawfully occupied by such person for not less than 90 days prior to the initiation
of negotiation by the public entity for the acquisition of such property.
(b) Such payment, not to exceed four thousand dollars ($4,000), shall be the
additional amount which is necessary to enable such person to lease or rent for a
period not to exceed four years, or to make the down -payments on the purchase of, a
decent, safe, and sanitary dwelling of standards adequate to accommodate such person
in areas not generally less desirable in regard to public utilities and public and
commercial facilities.
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(3) Actual and reasonable expenses in searching for a replacement business or farm.
(b) Any displaced person who moves from a dwelling who elects to accept payments
authorized by this subdivision in lieu of the payments authorized by subdivision (a)
shall receive a moving expense allowance, determined according to a schedule established
by the public entity, not to exceed three hundred dollars ($300), and in addition a
dislocation allowance of two hundred dollars ($200).
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(c) Any displaced person who moves or discontinues his business or farm operation
who elects to accept the payment authorized by this subdivision in lieu of the payment
authorized by subdivision (a), shall receive a fixed relocation payment 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 two thousand five hundred dollars ($2,500) nor
more than ten thousand dolalrs ($10,000). In the case of a business, no payment shall
be made under this subdivision, unless the public entity is satisfied that the business
cannot be relocated without a substantial loss of patronage and is not a part of a
commercial enterprise having at least one other establishment not being acquired, which
is engaged in the same or similar business. For purposes of this subdivision, the term
"average annual net earnings" 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 preceeding the taxable year in which such business or farm operation
moves from the real property being acquired, or during such other period as the public
entity 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 two-year or such other period. To be eligible for the payment
authorized by this subdivision, the business or farm operation shall make available
its state income tax records, and its financial statements and accounting records, and
for audit for confidential use to determine the payment authorized by this subdivision.
In the case of an outdoor advertising display, the payment shall be limited to the
amount necessary to physically move or replace such display.
(d) Whenever the acquisition of real property used for a business or farm opera-
tion causes the person conducting the business or farm operation to move from other
real property, or to move his personal property from other real property, such person
shall receive payments for moving and related expenses under subdivision (a) or (b)
and relocation advisory assistance under Section 7261 for moving from such other
property.
Sec. 7263. Additional payment to displaced dwelling owner; amount
(a) In addition to the payments required by Section 7262, the public entity, as
part of the cost of acquisition, shall make a payment to the owner of real property
acquired for public use which is improved with a dwelling actually owned and occupied
by the owner for not less than 180 days prior to the initiation of negotiation for the
acquisition of such property.
(b) Such payment, not to exceed fifteen thousand dollars ($15,000), shall be
based on the following factors:
(1) The amount, if any, which, when added to the acquisition payment, equals the
reasonable cost of a comparable replacement dwelling determined, in accordance with
standards established by the public entity, to be a decent, safe and sanitary dwelling
I-5
or who moves or discontinues his business, as a result of a rehabilitation or
demolition program, or enforcement of building codes, by the public entity.
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Sec. 7265.4 Expenses of owner; reimbursement
In addition to the payments required by Section 7262, as a cost of acquisition, the
public entity, as soon as practicable after the date of payment of the purchase price
or the date of deposit in court of funds to satisfy the award of compensation in a
condemnation proceeding to acquire real property, whichever is the earlier, shall
reimburse the owner, to the extent the public entity deems fair and reasonable, for
expenses the owner necessarily incurred for recording fees, transfer taxes, and
similar expenses incidental to conveying such real property to the public entity.
Sec. 7266. Review by public entity; finality
Any person aggrieved by a determination as to eligibility for a payment authorized
by this chapter, or the amount of a payment, may have his application reviewed by
the public entity, and the decision of the public entity shall be final.
Sec. 7267. Guidelines for public entities
In order to encourage and expedite the acquisition of real property by agreements
with owners, to avoid litigation and relieve congestion in the courts, to assure
consistent treatment for owners in the public programs, and to promote public con-
fidence in public land acquisition practices, public entities shall, to the greatest
extent practicable, be guided by the provisions of Sections 7267.1 to 7267.7 inclusive.
Sec. 7267.1 Acquisition by negotiation; appraisal
(a) The public entity shall make every reasonable effort to acquire expeditiously
real property by negotiation.
(b) Real property shall be appraised before the initiation of negotiations, and
the owner, or his designated representative, shall be given an opportunity to accompany
the appraiser during his inspection of the property.
Sec. 7267.2 Just compensation; offer of fair market value; written statement
Before the initiation of negotiations for real property, the public entity shall es-
tablish an amount which it believes to be just compensation therefor, and shall make a
prompt offer to acquire the property for the full amount so established. In no event
shall such amount be less than the public entity's approved appraisal of the fair market
value of such property. Any decrease or increase in the fair market value of real
property to be acquired prior to the date of valuation ck.used by the public improvement
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(c) If the payment is to be used as a downpayment for the acquisition of a
decent, safe, and sanitary dwelling of such standards, the payment shall not exceed
two thousand dollars ($2,000), unless the amount in excess thereof is equally
matched by such person.
Sec. 7264.5 Comparable replacement housing; use of funds; tax assessment information.
(a) If comparable replacement housing is not available and the public entity
determines that such housing cannot otherwise be made available, the public entity shall
use funds authorized for the project for which the real property, or interest thereof,
is being acquired to provide such housing.
(b) No person shall be required to move from his dwelling because of its acquisi-
tion by a public entity, unless there is replacement housing, as described in para-
graph (3) of subdivision (c) of Section 7261, available to him.
(c) For purposes of determining the applicability of subdivision (a), the public
entity is hereby designated as a duly authorized administrative body of the state for
the purposes of subdivision (c) of Section 408 of the Revenue and Taxation Code.
Sec. 7265. Additional payment to contiguous property owner; amount
(a) In addition to the payments required by Section 7262, as a cost of acquisi-
tion, the public entity shall make a payment to any affected property owner meeting
the requirements of this section.
(b) Such affected property is immediately contiguous to property acquired for air-
port purposes and the owner shall have owned the property affected by acquisition by
the public entity not less than 180 days prior to the initiation of negotiation for
acquisition of the acquired property.
(c) Such payment, not to exceed fifteen thousand dollars ($15,000), shall be
the amount, if any, which equals the actual decline in the fair market value of the
property of the affected property owner caused by the acquisition by the public entity
for airport purposes of other real property and a change in the use of such property.
(d) The amount, if any, of actual decline in fair market value of affected prop-
erty shall be determined according to rules and regulations adopted by the public
entity pursuant to this chapter. Such rules and regulations shall limit payment
under this section only to such circumstances in which the decline in fair, market value
of affected property is reasonably related to objective physical change in the use of
acquired property.
Sec. 7265.3 Payments and advice to person who moves as result of rehabilitation or
demolition program
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A public entity may make payments in the amounts. prescribed in this chapter, and may
provide advisory assistance under this chapter, to a person who moves from a dwelling,
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(deif
Sec. 7267.8 Rules and regulations of public entities; priority of federal law
(a) All public entities shall adopt rules and regulations to implement payments
and to administer relocation assistance under the provisions of this chapter. Such
rules and regulations shall be in conformity with the guidelines adopted by the
Commission of Housing and Community Development pursuant to Section 7268. Such rules
and regulations shall, to the fullest extent possible, also be consistent as to federal
and nonfederal projects.
(b) Notwithstanding the provisions of subdivision (a), with respect to a federally -
funded project, a public entity shall make relocation assistance payments and provide
relocation advisory assistance as required under federal law. -
Sec. 7268. Guidelines by commission of housing and community development for pay—
ments and relocation assistance; assistance to public entities
(a) The Commission of Housing and Community Development shall adopt guidelines
for the implementation of payments under this chapter and for the uniform administration
of relocation assistance by public entities carrying out the provisions of this chapter.
(b) The Commission of Housing and Community Development shall, to the fullest
extent possible, conform such guidelines to the Presidential Guidelines promulgated by
the executive office of the President of the United States, Office of Management and
Budget, the requirements of the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970 (P.L. 91-646), and the rules and regulations promul—
gated pursuant thereto.
(c) Such guidelines shall provide that the payments and assistance required of a
public entity under this chapter shall be administered in a manner that is fair and
reasonable and as uniform as practicable. The guidelines shall also provide that the
payments shall be made as promptly as possible or, in hardship cases, in advance. In
addition, such guidelines shall provide.a reasonable mileage limitation in determining
the actual and reasonable expense in moving a business for purposes of Section 7262.
(d) In adopting such guidelines the Commission of Housing and Community Develop—
ment shall consult with the public entities carrying out the provisions of this chapter.
(e) The Department of Housing and Community Development shall provide consulting
and technical assistance to public entities in drafting and amending rules and regulations
to implement payments and to administer relocation assistance under this chapter.
Sec. 7269. Status of payments; income tax and public assistance
No payment received by any person under this chapter shall be considered as income for
the purposes of the Personal Income Tax Law, Part 10 (commencing with Section 17001)
of Division 2 of the Revenue and Taxation Code, or the Bank and Corporation Tax Law,
Part 11 (commencing with Section 23001) of Division 2 of the Revenue and Taxation Code,
nor shall such payments be considered as income or resources to any recipient of public
assistance and such payments shall not be deducted from the amount of aid to which the
for which such property is acquired, or by the likelihood that the property would be
acquired for such improvement, other than that due to physical deterioration within
the reasonable control of the owner or occupant, will be disregarded in determining the
compensation for the property. The public entity shall provide the owner of real
property to be acquired with a written statement of, and summary of the basis for,
the amount it established as just compensation. Where appropriate, the just compen-
sation for the real property acquired and for damages to remaining real property
shall be separately stated.
Sec. 7267.3 Scheduling construction or development; written notice; time
The construction or development of a public improvement shall be so scheduled that,
to the greatest extent practicable, no person lawfully occupying real property shall
be required to move from a dwelling, assuming a replacement dwelling will be available,
or to move his business or farm operation, without at least 90 days' written notice
from the public entity of the date by which such move is required.
Sec. 7267.4 Fair rental value; short-term occupier
If the public entity permits an owner or tenant to occupy the real property acquired
on a rental basis for a short term, or for a period subject to termination by the
public entity on short notice, the amount of rent required shall not exceed the fair
rental value of the property to a short-term occupier.
C.
Sec. 7267.5 Coercion to compel agreement on price
In no event shall the public entity either advance the time of condemnation, or defer
negotiations or condemnation and the deposit of funds in court for the use of the
owner, or take any other action coercive in nature, in order to compel an agreement
on the price to be paid for the property.
Sec. 7267.6 Condemnation proceedings; institution by public entity instead of by
owner
If any interest in real property is to be acquired by exercise of the power of
eminent domain, the public entity shall institute formal condemnation proceedings.
No public entity shall intentionally make it necessary for an owner to institute
legal proceedings to prove the fact of the taking of his real property.
Sec. 7267.7 Acquisition of entire property; avoidance of uneconomic remnant
c
If the acquisition of only a portion of a property would leave the remaining portion
in such a shape or condition as to constitute an uneconomic remnant, the public entity
shall offer to and may acquire the entire property if the owner so desires.
1-9
Sec. 7274. Construction of sections 7267 to 7267.7
Sections 7267 to 7267.7 inclusive, create no rights or liabilities and shall not
affect the validity of any property acquisitions by purchase or condemnation.
recipient would otherwise be entitled under Part 3 (commencing with Section 11000) of
Division 9 of the Welfare and Institutions Code.
Sec. 7270. Existence of damages on date of enactment of chapter
Nothing contained in this chapter shall be construed as creating in any condemnation
proceedings brought under the power of eminent domain any element of damages not in
existence on the date of enactment of this chapter.
Sec. 7271. Severability
If any provision of this chapter or the application thereof to any person or circum—
stances is held invalid, such invalidity shall not affect other provisions or applica—
tions of this chapter which can be given effect without the invalid provision or applica—
tion, and to this end the provisions of this chapter are severable.
Sec. 7272.3 Legislative intent; minimum requirements; federal funds
C
It is the intent of the Legislature, by this chapter, to establish minimum requirements
for relocation assistance payments by public entities. This chapter shall not be con-
strued to limit any other authority which a public entity may have to make other reloca—
tion assistance payments, or to make any relocation assistance payment in an amount
which exceeds the maximum amount for such payment authorized by this chapter.
Any public entity may, also, make any other relocation assistance payment, or may make
any relocation assistance payment in an amount which exceeds the maximum aount for
such payment authorized by this chapter, if the making of such payment, or the payment
in such amount, is required under federal, law to secure federal funds.
Sec. 7272.5 Existent elements of damage
Nothing contained in this article shall be construed as creating in any condemnation
proceeding brought under the power of eminent domain, any element of damages not in
existence on the date the public entity commences to make payments under the provisions
of this article as amended by the act which enacted this section at the 1971 Regular
Session of the Legislature.
Sec. 7273. Relocation assistance for displaced persons
Funds received pursuant to Sections 2106 and 2107 of the Streets and Highways Code may
be expended by any city to provide relocation advisory assistance, and to make relocation
assistance payments, to displaced persons displaced because of the construction of city
highways or streets.
7_
REFERENCES
REVENUE AND TAXATION CODE
Section 408. Non -statutory information; privacy; inspection by assessee; market
data
(a) Except as otherwise provided in subdivisions (b) and (c) any information
and records in the assessor's office which are not required by law to be kept or
prepared by the assessor are not public documents and shall not be open to public
inspection.
(b) The assessor may provide any appraisal data in his possession to the
assessor of any county and shall provide any market data in his possession to an
assessee of property or his designated representative upon request. The assessor
shall permit an assessee of property or his designated representative to inspect
at the assessor's office any information and records, whether or not required to
be kept or prepared by the assessor, relating to the appraisal and the assessment
of his property. An assessee or his designated representative, however, shall not
be provided or permitted to inspect information and records, other than market data,
which also relate to the property or business affairs of another person, unless
such disclosure is ordered by a competent court in a proceeding initiated by a
taxpayer seeking to challenge the legality of his assessment.
(c) The assessor shall disclose information, furnish abstracts or permit
.access to all records in his office to law enforcement agencies, the county grand
jury, the board of supervisors or their duly authorized agents,employees or repre-
sentatives when conducting an investigation of the assessor's office pursuant to
Section 25303 of the Government Code, the State Board of Equalization and other
duly authorized legislative or administrative bodies of the state pursuant to their
authorization to examine such records.
(d) For purposes of this section, "market data" means any information in the
assessor's possession, whether or not required to be prepared or kept by him, re-
lating to the sale of any property comparable to the property of the assessee, if
the assessor bases his assessment of the assessee's property, in whole or in part,
on such comparable sale or sales. The assessor shall provide the names of the
seller and buyer of each property on which the comparison is based, the location
of such property, the date of the sale, and the consideration paid for the property,
whether paid in money or otherwise, but for purposes of providing such market data,
the assessor shall not display any document relating to the business affairs or
property of another.
STATE OF CALIFORNIA
GUIDELINES FOR ISSUANCE OF REGULATIONS & PROCEDURES
IMPLEMENTING THE RELOCATION ASSISTANCE LAW
GOVERNMENT CODE, CHAPTER 16, SECTIONS 7260 et.seq.
CONTENTS
Section 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
8 Grievance Procedure
9 Property Acquisition Policy
10 Definitions
11 Cross References
-znres.
b. Agencies should instruct officials responsible for pro-
grams under this Act that:
(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:
e
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(a) Whenever the acquisition of, or notice to move
from, real property used for a business or farm operation causes
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 appraisals any allowances for the
benefits provided by the Act. In the event of condemnation with.
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.
II- 3
STATE OF CALIFORNIA
GUIDELINES FOR ISSUANCE OF REGULATIONS & PROCEDURES
IMPLEMENTING THE RELOCATION ASSISTANCE LAW
GOVERNMENT CODE, CHAPTER 16, SECTIONS 7260.et.seq.
1 - GENERAL
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 toas 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.
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 S.1, Committee on Public Works, House of Representatives,
91st 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.
2 - ASSURANCE OF ADEQUATE REPLACEMENT HOUSING
PRIOR TO DISPLACEMENT
2.1 Assurance of availability.
a. Availability. No public entity shall proceed with any
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) 1 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
t
(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.
II- 4
(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 Housing 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) .
C
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 asclosets, pantries, bath or toilet rooms, service rooms,
connecting corridors, laundries, and unfinished attics, foyers,
storage spaces, cellars, utility rooms and similar 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:
11- 6
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(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) When 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 for 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
itemavailable 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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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 eligible 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 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.
4 - PAYMENTS IN LIEU OF MOVING
AND RELATED EXPENSES
4.1 Dwellings - 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.
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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
faxed 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.
concern.
(2) The nature of the clienteleof the displaced
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 for search cost in connection with locating a re-
placement 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 business or farm operation under circumstances prescribed in
public 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 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. 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.
f•*\
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.
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5.2 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.
c
146°61 /a11.&1
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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:
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-
cludes 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
than $10,000.
(•R
(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
reduced to that amount required to pay 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.
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(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', FHA or VA, appraisal fees.
(c) FHA application fee.
(d) Certification of structural soundness when
required by lender, FHA or VA.
(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.
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
may develop criteria for computing replacement housing payments
when neither the 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.
MOBILE HOMES
5.4 Acquisition of Mobile Homes.
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.
5.6 Computation on Next Highest Type.
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.
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(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 which
is determined to be a part 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 System. 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.
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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 written offer 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 a replace-
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 from the acquired dwelling, which-
ever is the later date.
6.2 Computation of replacement housing payments for displaced
tenants. A displaced tenant is eligible for 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 determine the amount necessary to rent a
comparable replacement dwelling by either establishing a schedule or
by using a comparative method.
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(1) Schedule method. The agency may establish a rental
schedule for renting comparable 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
(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 owners arid tenants
of mobile homes.
5.8 Moving Expenses for 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.
b. Purchases - replacement housing payment. 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 5.3c.
(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 thereplacement 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.
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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 had 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
community 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-
tations of such section, a rental replacement housing payment that
will enable the displacee to rent comparable decent, safe and sani-
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.
c
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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 part.
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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
Cb) 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.
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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 community 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.
b. Contracting with others. When a centralized relocation
agency is not available in a community or if in the 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.
(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.
8.8 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
to fulfill the statutory purpose as declared in the Act of "fair and
equitable 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."
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II- 2.5
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 reasonable 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. Upon 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 further information which the public 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:
9 - UNIFORM REAL PROPERTY ACQUISITION POLICY
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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 faire market value of the property.
b. Incidental expenses incurred by displaced owner selli
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
8.9 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 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.
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 otherenvironmental factors.
(2) Public utilities, and
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(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 purchase price of real property, payment of which
is not insured 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.
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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 proceeding 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
fees, etc., but not including prepaid 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:
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 where
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
received 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.
c
c
10.9 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 dath 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.
10.16 Eligible Person. "Eligible person" means any displaced person
who is, or becomes, lawfully entitled to any relocation payment under
these regulations.
10.17. F.amily. 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 livewith and are considered a part
f f
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c
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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.
10.26 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 replacement site;
h. Interest on loans to cover moving expenses;
i. Loss of goodwill;
j. Loss of business or profits;
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
activityon a non-profit 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
C
10.37 Relocatee. "Relocatee" means any person who meets the
definition of a displaced person.
10.38 Stated Mortgage Interest Rate. "Stated Mortgage Interest
Rate" means the annual percentage rate to be paid or the debt of
a mortgage as set forth in the mortgage or other credit instrument.
C
II - 35
determination as to whether an item of property is personal or real
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.
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
upon completion, of a dwelling to be constructed or rehabilitated
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.
Section 11
-CONVERSION - FEDERAL TO STATE
LAW
PL -91-646
FEDERAL
GOVERNMENT
CODE
STATE
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GUIDELINES
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Title 1
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Section 11 CONVERSION - STATE TO FEDERAL
LAW
Government
Code
Section 7260.
Public
law
91-646
H/CD
GUIDELINES
OMB A-103
7260 101
7261 205
7261.5 212
7261.6 ---
7262 202
7263 203
7263.5 ---
7264 204
7264.5 206
7265 ---
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7265.4 303
7266. 213 '
7267. 301
7267.1 301(1)(2)
7267.2, 301(3)
7267.3 301(5)
7267.4 301(6)
7267.5 301(7)
7267.6 301(8)
7267.7 301(9)
7267.8 213
7268. 213
7269 216
7270 .102(b)
7271 ---
7272 ---
7272.3 201
7272.5 102(b)
7273 ---
7274 102(a)
10.1 11.1 - 11.3
7.1 - 7.2 7.1 - 7.3
7.3 8.3
3.1 - 4.6 • 3.1 - 4.6
5;1 - 5.8 5.1 - 5.4
6.1 - 6.3 6.1 - 6.3
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WMOIMMWM
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0.0.111 0.11
1.1 1.1 - 1.5
THE YALE LAW JOURNAL
Volume 82, Number 2
December 1972
Copyright 1972 by
The Yale Law Journal Co., Inc.
Reprinted by Permission
NOTE
"In the Path of Progress: Federal Highway Relocation Assurances"
by
Peter W. Sly
Nashville, Tennessee, famous for country and western music, is also
renowned as a dramatic example of "a white road through black bedrooms." As
Interstate 40 approaches Nashville, it swings suddenly in a wide loop, avoid-
ing the downtown area, but passing north through what was once the center of
Nashville's black community. Interstate 40 eliminated twenty-seven apartment
buildings and 626 homes in the black community. In vain, the community appealed
to the federal courts. Nashville's black community found itself in the path
of progress.
Nashville is not alone. In city after city, federally funded highway
plans to traverse residential areas have been challenged in the courts.
Congress has responded to the problem of residential dislocation by passing a
series of acts designed to cushion the impact of urban highway construction.
In particular, it has been concerned with the problem of relocation, and has
passed two acts designed to insure that highway displacees are adequately
rehoused. Unfortunately, implementation of the relocation acts has been
ineffective. As a result, construction of urban highways continues to frus-
trate the national goal of providing every American with a decent home.
This Note will analyze the role the courts and the Federal Highway Admin-
istration,(FHWA) have played, and could play, in implementing the relocation
acts. The Note's focus will be on relocation of low-income households. It
wi l first discuss these acts in the context of Congress' attempt to reconcile
national housing and highway priorities and then analyze the housing market
effects of urban highway displacement on low-income groups. Following an
analysis of FHWA relocation practices, it will be argued that full implemen-
tation of the relocation acts requires that the FHWA minimize the dislocating
effects of highway displacement on the housing market by constructing new
housing units to replace those demolished for highways. Finally, it will be
si}ggested that complete implementation of these acts cannot be achieved unless
timely judicial procedures are provided for relocation litigation.
*A11 footnotes have been deleted from this publication.
THE YALE LAW JOURNAL
"In the Path of Progress:
Federal Highway Relocation Assurances"
t
C
those displacees forced to occupy more expensive units. To achieve the first
objective, the 1968 Act provided that the FHWA should not approve a federal
highway project involving displacement until "satisfactory assurances" were
received from the state highway department that "decent, safe and sanitary"
housing units within their financial means would be available to all displacees.
The second objective was achieved by providing supplemental payments to those
displaced, both homeowners and tenants.
The Uniform Relocation Assistance and Real Property Acquisition Policies
Act of 1970 (URA) stengthened each of the two thrusts of the 1968 Act. To
ensure an adequate supply of housing for displacees, the 1970 Act authorized
construction of replacement housing (new or rehabilitated units added to the
supply). The URA also increased the payments to the individuals displaced --
a homeowner may get up to $15,000, and a tenant may get up to $4,000 over a
four-year period.
These acts are an important step toward reconciling the federal highway
program with national housing goals. They have in common two important
elements: the "market" focus on an adequate supply of relocation housing,
and the "individual" focus on payments to those displaced. Although concern
with individual relocation payments has characterized FHWA administration of
the relocation acts, it will be argued in Part II that full implementation
of these acts requires a concern for the market effects of highway displace-
ment as well, especially in the low-income housing market. To understand
these market effects, and to lay the basis for a later critique of FHWA
administrative practices, a discussion of the economics of the low-income
housing market is required.
II. The Impact of Urban Highways: The Low -Income Housing Market
The housing market in urban areas is rarely a uniform whole. Most often,
urban housing markets are segmented into submarkets, thus limiting the res-
ponsiveness of the whole market to changes in any one submarket. Partially
for this reason, low-income submarkets are subject to chronic shortages of
adequate housing supply.
Because most new housing is constructed for upper -income households, low-
income submarkets are usually dependent on the "trickle down" of older housing.
However, this "trickle down" process is seriously deficient as a source of
supply, particularly for minorities. Construction of new upper -income housing
can trigger some "trickle down," but the older units which eventually become
available to low-income families often do not meet housing codes.
Shortages in the low-income housing market are aggravated by demolitions
for urban highway construction. The demand for housing caused by displacement
of both tenants and homeowners focuses most sharply on the same submarkets in
which the demolition occurred as the displacees seek housing similar to that
demolished --in size, neighborhood location and accessibility to work and
public facilities; moreover, low-income and minority displacees tend to relocate
within the same neighborhoods from which they are displaced. As a result of
the increased demand, focusing on inelastic submarkets, the price of low-income
housing may rise appreciably, especially since initial price increases are
normally insufficient to generate new housing construction.
This increase in housing prices.may be magnified by the relocation pay-
ments which give increased purchasing power to the displacees, both owners and
11I-3
I. Three Congressional Mandates
A. The Federal Highway Pro gram
The Federal Highway Trust Fund supports two major programs under which the
states are reimbursed for new highway construction. Under the "ABCD" system
the federal government pays fifty percent of the cost of constructing certain
roads meeting federal standards. But most recent controversies have concerned
the Interstate Program which provides nine dollars of federal matching funds
for each dollar expended by the states.
The 1956 Highway Act, establishing the Interstate Program, was concerned
with the "prompt and early completion" of this major road network. The Inter-
state System is now scheduled to be completed by 1976. Yet singleminded imple-
mentation of the national highway program has led to the frustration of another
congressional mandate --the provision of decent housing for every American.
B. The National Housing Goal
The Housing Act of 1949 was concerned with ensuring that all Americans,
including the urban poor, were provided with adequate living facilities. The
Housing Act explicitly stated that this national policy:
requires housing production . . . and the realization as soon as feasible
of the goal of a decent home and a suitable living environment for every
American family . . .
To achieve this goal Congress has established a series of housing programs
and subsidies: urban renewal, interest subsidies, public housing, code enforce-
ment, rent allowances, and other programs. In these acts, Congress has
implicitly recognized that the private housing market cannot adequately meet
the needs of low- and moderate -income segments of urban society.
Yet the housing acts have failed to achieve their goals. In no small
part, this failure has been due to the federal highway program. During the
first decade of the Interstate Program, right-of-way clearance for federal
highways destroyed more units of low- and moderate -income housing than were
built by the federal government's public housing program. City planners have
used highways to get rid of the oldest and least desirable housing in the
existing inventory, housing usually inhabited by low- and moderate -income
families. These units are usually located in close proximity to the central
business district. But such areas also provide the optimal location for traffic
arteries skirting or serving the downtown area. In addition, property in the
low-income area is less expensive than elsewhere; hence, highway location
through this area reduces total acquisition costs.
C. A Congressional Response: The Relocation Acts
Congress has recognized the conflict between the highway program and the
goal of providing every American with adequate housing. Legislation was enac-
ted in 1968 and 1970 with two major purposes: to prevent residents from being
displaced when insufficient relocation housing was available and to subsidize
3. At rents or prices within the financial means of the families and
individuals displaced.
4. In areas not generally less desirable in regard to public utilities
and public and commericial facilities.
5. Reasonably accessible to their places of employment.
Although the FHWA regulations implementing the URA are extensive, none
requires analysis of the market impact of highway displacement. Because of
this omission, the states have submitted --and the FHWA has accepted --reloca-
tion assurances which do not adequately protect low vacancy urban housing
markets from the effects of highway displacement. Much of the relocation
litigation discussed in.this Note can be attributed to inadequate supervision
and control by the FHWA over state relocation practices.
One result of inadequate FHWA supervision is that the states have been
allowed to use questionable statistical devices to expand the estimated supply
of available relocation housing. Highway projects are thus brought into
apparent conformity with the URA when, in fact, the necessary relocation units
do not exist.
One statistical practice, for example, has been to rely on housing "turn-
over" as an indicator of available relocation dwellings. Turnover is the
percentage of housing units which are sold or which change tenants during a
particular year. It describes the rate at which units change occupancy, and
could occur in the complete absence of vacancies. HUD has prohibited the use
of turnover as an indicator of available relocation housing in administering
its own programs. Nevertheless, state highway agencies continue to employ it
and consequently their assurances are often unrealistic.
As another method of temporarily disguising housing shortages, highway
displacees are sometimes given priority for public housing and put into public
housing ahead of those who have been on the waiting lists for many years. In
effect, resources allocated to public housing are diverted to compensate for
a highway's depletion of the housing supply.- Also, many state highway agencies
ignore the effects of racial segregation, which limit the relocation opportuni-
ties of displaced minorities. In addition to these practices which overstate
the apparent supply of available relocation housing, many states have also
minimized the demand for such housing by ignoring concurrent displacements from
other highways or public projects.
In a loose or high vacancy housing market, these failures to accurately
estimate the supply and demand for relocation housing would not be alarming.
In this situation, the market'would be elastic enough to accept the loss of
supply without serious consequences for the displacees or the low-income
housing submarket. But in urban areas --where large numbers of individuals
are displaced by highway construction, where many of the displacees are low-
income and their supply of housing is already inadequate --the relocation pay-
ment alone is an insufficient solution. "Satisfactory assurances" must in
this instance include specific guarantees that highway displacement will not
place uncompensated burdens on low-income displacees and on the low-income
housing submarket.
The substantive satisfactoriness of highway relocation assurances was
at issue in Keith v. Volpe, which concerned construction of the Century Freeway
in Los Angeles, expected to displace over 21,000 individuals. Although the
California Division. of Highways had prepared relocation plans and assurances
III -5
tenants, at the same time as supply is decreasing. Relocation payments may
enable the displacees to obtain housing that meets the "decent, safe and
sanitary" standards assured by the URA. But the submarket's reduced supply
and inflated prices place extra burdens on the non-displacee who must compete
for housing in a tighter market without a federal subsidy.
For displaced tenants, the impact of inflation is often merely delayed.
Tenant relocation payments end after four years. At the end of this period,
those tenants who have enjoyed the subsidy must choose between cutting the
quality of their housing, devoting a larger portion of their budget to housing,
or moving out of the locality entirely. The relocation payment merely post-
pones the day of reckoning to a time when tenants are less able to mobilize
opposition to the highway.
Displacements in the moderate -income portion of the market may affect low-
income households as well. In a tight market, reduction of the moderate -
income housing supply can choke off the "trickle down" of older units to low-
income persons.
It is clear that in a tight housing market, highway displacements can
have serious inflationary effects on the low-income submarket. If the reloca-
tion acts are to have their full effect --minimizing the impact of highway con-
struction in urban areas --inflationary results must be avoided. Yet in many
instances, state and federal highway agencies have ignored such market effects.
Their neglect has inspired litigation and subsequent judicial involvement in
the relocation process.
III. Satisfactory Relocation Assurances
Under the URA, state highway agencies must provide "satis.factory assur-
ances" that adequate relocation housing will be available to all those dis-
placed. The implementing regulations require that these assurances be sub-
mitted to the FHWA. But, in addition to "assuring" the FHWA, these documents
should have the effect of "assuring" all those•in a tight housing market that
highway displacements will not contribute to the housing shortage. Such
assurances must be satisfactory both in substance and in timing.
Two kinds of relocation assurances are presently required by FHWA regula-
tions: "statewide assurances" and "project assurances." Statewide assurances
are simply general assertions that the state will comply with applicable FHWA
regulations on all of its federal highway projects, and as such, have little
relevance to the impact of highway relocation on a particular housing market.
Project assurances are intended as guarantees that all those displaced by a
particular highway project will be adequately rehoused.
A. "Satisfactoriness " in Substance
Current FhWA Practice. "Project assurances" must be submitted to the FHWA
before relocation occurs and must demonstrate that relocation will conform to
the federal statutes. The URA requires "that within a reasonable period of
time prior to displacement" there must be available:
1. Decent, safe and sanitary dwellings.
2. Equal in number to the number of displaced families and individuals
and available to such persons.
C
C
No court has yet been squarely faced with the issue of replacement housing.
If this issue is raised, highway administrators may argue that use of this
provision is purely discretionary. But the replacement housing provision seems
clearly intended by Congress to be satisfactory without the addition of new
units to the housing supply. Because of the market effects described in Part II
(in the context of the low-income housing submarket), highway displacement in a
tight market without construction of new housing would render meaningless the
protections intended by the URA. Section 206(a), especially in light of other
provisions of the URA, seems intended to allow highway departments to construct
new replacement housing as an alternative to abandoning projects which cause
heavy displacement.
Construction of one -for -one replacement housing is not a novel remedy.
It is an established requirement for urban renewal programs. The highway
construction program causes approximately the same number of displacements as
urban renewal, and should also be subject to a one -for -one replacement housing
requirement when necessary.
State highway departments may not wish to construct or to manage replace-
ment housing themselves. However, there are a number of techniques by which
these agencies could participate in furnishing housing. For example, the FHWA
could establish a procedure similar to the interest subsidy programs of the
Federal Housing Administration. Under this procedure, the state highway depart-
ment would subsidize the interest on a loan taken out by the developer, and
provide supplemental payments to bring the housing within the financial means
of low-income displacees. The state could also assist, through use of its
power of eminent domain, in providing suitable land for development. Such
replacement units should be sold or rented at the same economic level as the
demolished units, and should be of an equivalent size. FHWA regulations should
provide that the replacement units be complete before relocation occurs.
These proposals could be implemented by the FHWA on an administrative
basis. But if the FHWA fails to require state highway departments to provide
adequate replacement housing, there inevitably will be further litigation by
low-income plaintiffs seeking the substantively adequate assurances required
by the relocation acts.
B. "Satis factoriness ": The Timing of Assurances
Although the readiness to build replacement housing is important, the
timeliness of such assurances is equally so. Should replacement housing be
required, it must be ready for occupancy by the time relocation actually
occurs. Thus, a determination of the need for replacement housing must be
made at an early stage --the "location" stage, as it is formally known --in the
highway planning process. Another reason compelling the early preparation
of satisfactory assurances is the existence of special hardships created by the
increasingly lengthy time span of highway planning. .A brief review of the
formalities of the highway planning process demonstrates the importance of the
timing component of "satisfactoriness."
Although the highway planning process comprises a complex series of
stages, only three of these are relevant to a relocation program: location,
design, and right-of-way. Federal approval of state relocation plans is
required at each of these stages.
I1I-7
t
in conformity with FHWA requirements, these assurances relied oft "turnover"
rates, ignored concurrent displacements, and failed to consider adequately
how many of the units in the available housing supply were "decent, safe and
sanitary." The court sharply criticized the turnover approach and enjoined
displacements pending preparation of a satisfactory relocation program by
the state.
A New Standard. Questionable relocation practices by state highway
departments, and the FHWA's failure to counter them, may well compel other
courts to face the question of what constitutes satisfactory highway reloca-
tion assurances. A thorough evaluation of the market effects of highway
displacement in an urban area would appear to require the following as essential
elements of "satisfactory assurances."
1. A determination of the relevant submarkets in the housing market --
rental, sale, neighborhood, racial, and price --and analysis of the
inter -relationship between these various submarkets.
2. A determination of vacancy rates for all affected submarkets which
takes account of apartment sizes and the adequacy of available units
under the decent, safe, and sanitary standard.
3. A determination of expected concurrent displacements, both public
and private.
4. An estimate of the average amount of relocation payment necessary to
enable tenants and owners to obtain comparable decent, safe and
sanitary dwellings.
These determinations should give a clear indication of the ability of the
low-income housing market to respond to the loss of units from the supply.
Replacement Housing. When the housing market is tight, relocation assur-
ances cannot be "satisfactory" unless they also indicate that new replacement
housing will be built on a one-to-one basis for every unit demolished. Under
section 206(2) of the URA, provision of replacement housing is authorized as
reimbursable project expense. FHWA regulations should require construction of
replacement housing when the vacancy rate in the relevant housing submarket
is below some previously -established minimum figure which represents the point
at which significant inflationary effects can be expected in the relevant
submarket. When the vacancy rate is below this minimum figure, the burden
should be on state highway departments to demonstrate that replacement housing
is not required.
Congress clearly felt that the replacement housing provision was critical
to the successful operation of the URA. As the House Report accompanying the
Act stated:
[P]erhaps most important of all, [the URA] gets to the heart of the
dislocation problem by providing the means for positive action to
increase the available housing supply for displaced low and moderate
income families and individuals.
f
11I-6
relocation assurances in existence at the time of the hardship acquisition are
only brief and general. Although the state is required to assure that the
displaced hardship owner receives adequate relocation housing, the effects of
this practice on a tight market may be severe. If they have occurred in sub-
stantial numbers, hardship acquisitions may render meaningless the subsequent
detailed "right-of-way" relocation assurances. Although the hardship procedure
is a necessary response to the individual costs of highway location planning;
it should not be used as a device to circumvent the URA's relocation require-
ments. Submission of detailed relocation assurances at the location stage of
a highway's plan must be required to avoid the possibility of such circumvention.
In the context of displacements resulting from hardship acquisitions, the
need for detailed relocation assurances previously required for federal design
approval --was recognized in Lathan v. Volpe. Lathan concerned the westernmost
leg of Interstate 90 passing through Seattle's black community. In 1968, when
affected residents became aware of the highway's planned location, the community
began to decline in quality, and the state announced that it would acquire pro-
perty under the hardship procedures. No relocation assurances accompanied the
state's request for federal approval of these acquisitions.
The Ninth Circuit held that the congressional purposes behind the URA
required that detailed relocation assurances be prepared not later than the
location stage of the highway planning process. The trial court was ordered
to enjoin further acquisitions of property until the state submitted an adequate
relocation plan. The opinion implies that relocation assurances must be given
immediately for projects which have already received FHWA location approval.
The new requirements of the Lathan decision have not yet been implemented
by state highway departments. Some states may resist any requirement that
detailed relocation assurances be submitted at the location stage. In part,
this is a fear that those living along the highway corridor will become too
excited if a survey of their relocation needs is taken. However, preparation
of detailed relocation assurances at this early stage would seem preferable to
the current practice of allowing coercive hardship acquisitions without the
benefit of full relocation assurances. Thus, the Lathan mandate is a sensible
resolution of the inherent tension between the due process requirements of
highway location planning and the necessity for genuine hardship acquisitions.
C. Application of the URA to "AB CD" Federal Highways
In both Lathan and Keith the proposed highways were planned to be part of
the federal Interstate System. Although such highways are constructed by the
states, they are clearly "federal" projects. Because of FHWA approval procedures
for highways in the ABCD system, an issue has been raised as to when such ABCD
routes become federal highways, and hence subject to the provisions of the URA.
Many states obtain federallocation approval for projects in the ABCD
system, and then proceed to fund much of the preliminary work --including right
of way acquisition --from their own highway funds. Only after obtaining federal
design approval do the states decide whether to request federal reimbursement.
Some states have attempted to avoid complying with FHWA relocation requirements
by arguing that highways in the ABCD system are exempt from these requirements
until a federal commitment for matching funds is made.
The issue of when highways in the ABCD system must comply with FHWA
requirements was dealt with squarely in La Raza Unida v. Volpe, a case involving
the Foothill Freeway in Hayward, California. Although California had obtained
With the request for federal approval of highway location, the state is
required to submit "conceptual" relocation assurances. These include a general
description of the relocation problems to be expected. More detailed "right-
of-way" assurances are mandatory at the time of federal approval of the proposed
highway design. Normal property acquisition and relocation occurs after design
approval, during the right-of-way stage. After all relocations have occurred,
the highway department must affirm that displacement has conformed to federal
regulations. The FHWA will not approve reimbursement for construction costs
unless it determines that adequate relocation housing has been made available.
In recent years, the time interval between federal approval of a highways'
location_and demolition of the housing in the highway corridor has increased to
eight or more years. The length of this planning process is to some degree the
result of the "due process" involved in planning a highway so that it is
responsive to public concerns. Any highway location decision is partially a
product of a political process. It constitutes a decision that certain members
of the community must bear sacrifices for the benefit of all. Thus a series of
hearing and review procedures have been established to ensure that all relevant
views have been considered in planning the highway. Any truncation of this
planning process will make the ultimate highway design less responsive to the
public.
However, a lengthy planning process has serious consequences for those
living in the highway corridor. The corridor approved for an urban expressway
is usually about 300 feet wide. Those living within this corridor know that
they will probably be evicted by the highway. But they are never quite sure.
Even if they are not eventually displaced,the highway location decision can
have immediate and serious effects on residents in the corridor area. Such
effects were succinctly described by one court:
As a practical matter, there is no longer an open market for the
property in the corridor; there is only one potential buyer, the
state. The inevitable effect is a lessening of the property owner's
motivation to maintain his property and a depressing effect upon
property values and the general physical, economic, and social tone
of the area . . .
In response to such problems caused by the lengthy highway planning process
the FHWA has allowed state highway departments to undertake "hardship acquisi-
tions." This device is designed to aid property owners in the designated high-
way corridor prior to normal acquisition. After obtaining the approval of the
FHWA, the state highway department may buy the property at the request of the
owner and then demolish it.
Although the owner's sale is voluntary in theory it may be near -compulsory
in practice. He knows that the state will ultimately resort to its power of
eminent domain if a sale is not negotiated. He knows that some owners will
seek to escape with as much as they can rather than hang on in a neighborhood
disintegrating as a result of a proposed highway corridor. Once this process
begins on a significant scale, it acquires its own momentum, and may foster a
sophisticated form of blockbusting.
There will be some instances where genuine hardships justify advance
acquisition by the state. However, under present practices, hardship acquisi-
tions may occur without benefit of full relocation assurances. The "conceptual"
111-8
h
Both the Lathan and Keith courts recognized that if the plaintiffs were
to obtain any effective relief, their displacement must be halted pending
submission of satisfactory relocation assurances. The Lathan opinion considered
and rejected the ordinary standard for injunctive.relief, which would have
required the plaintiffs to demonstrate that "the balance of irreparable harm"
favored issuance of an injunction. Instead, Lathan seems to imply that "the
balance of irreparable harm" standard does not apply to highway relocation law-
suits. However, even if this opinion is not read as introducing some new
standard for injunctive relief, it does indicate that "the balance of
irreparable harm" readily tips in favor of those facing imminent displacement.
By taking action when it still could be effective, the Lathan and Keith
decisions have avoided the pitfalls of Triangle and Clarksville. These courts
have helped to implement the congressional requirements of the relocation acts,
and to insure that relocation is indeed "satisfactory."
V. An Overview
The failure of the federal highway program to account for all the economic
and social costs of highway construction has contributed significantly to the
problems of urban decay and urban -suburban economic polarization in America.
Without the substantial modifications of FHWA administrative procedures and
judicial enforcement proposed in this Note, construction of new highways will
continue to impose large external costs on urban housing markets and particularly
on low-income submarkets.
Implicit in the discussion of the "market" effects of relocation isthe
recognition that highway relocation cannot be treated in isolation from
national housing priorities. As the National Commission on Urban Problems
suggested, "Relocation should be seen essentially not as a ground clearing
operation, but as a direct and integral step in the march toward the national
housing goal . . ." With the construction of one -for -one replacement housing,
the federal highway program can join in the effort to ensure a suitable living
environment for all Americans. The congressional mandate to protect those in
the path of highway "progress" requires no less.
Q85623---455 11-73 1200
7 ..
FHWA corridor approval for this ABCD highway in 1966, and had begun acquiring
property under the "hardship" procedures, no relocation assurances had been
submitted to the FHWA.
Even though no federal funds had yet been expended on the project, the
court held:
[F]or the purpose of applying the various federal statutes and regula-
tions, a federal -aid project is any project for which the state has
obtained location approval.
The court issued an injunction barring further acquisition of property pending
state compliance with the federal relocation acts. This requirement, the court
pointed out, was consistent with Congress' intent, expressed in the URA, that
federal controls must be exercised over all projects in which the FHWA might
participate. Designating a project "federal" only at the time of federal
expenditure or design approval would leave large numbers of highway displacees
excluded from the protections of the URA.
The La Raza Unida opinion may have a broad effect. Under it, the congres-
sional mandate of the relocation acts will be applied to any road on which
federal funds might be expended. Once federal route approval has been obtained,
state highway departments will henceforth ignore the URA at their peril.
IV. Courts and Remedies
Satisfactory assurances are an essential element of a successful reloca-
tion program, and of full compliance with the URA. But apparent non-compliance
with the URA's provisions has caused some urban displacees to seek enforcement
of such assurances in the courts. In several cases, relief has been denied
because of judicial hesitancy to halt displacements pending adjudication of
the merits of the case.
Two cases illustrate the necessity for stays pending appeal in highway
relocation lawsuits. In both Triangle I npro z ment Co tnnci l it Ritchie and
Concerned Citizens for the Preseruxtion o f Clarksville v. Volpe, minority
displacees sought the benefits of the 1968 Highway Act --assurances that they
would be relocated in dwellings which were decent, safe and sanitary. The
plaintiffs sought to enjoin their displacement until relocation assurances
were prepared. Disagreeing with the plaintiffs' contentions on the merits, the
lower courts denied the requested relief.
The district and appellate courts, however, refused to issue stays pending
appeal, and as a result, the plaintiffs' displacement proceeded during the
pendency of their appeal. Ultimately, the appellate courts found the cases
moot, because the displacees, as noted in one case, were "beyond the pale of
whatever benefit proper assurances would have afforded." The appellate courts
never reached the merits of these cases because of their reluctance to halt
relocation during the appeal.
As these cases suggest, the courts must intervene decisively and promptly
in the relocation process, or judicial safeguards will serve little purpose.
Denial of injunctive relief is likely to render the case moot; enforcement of
the relocation assurances becomes difficult; and any later victory for the
plaintiffs is a paper one.
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