(1) Payments for
90-Day Owner-Occupants.
(a) Eligibility.
A displaced person is eligible for replacement housing
payments as an owner-occupant under this paragraph if:
1. The person has actually owned and occupied
the displacement dwelling for not less than 90 days immediately prior to the
initiation of negotiations; and
2.
The person purchases and occupies a decent, safe and sanitary dwelling within
one year after the later of the following dates:
(i) The date the person receives final
payment for the displacement dwelling where the acquisition is by settlement
or, in the case of condemnation, the date the full amount of the estimate of
just compensation is deposited with the court; or
(ii) The date on which the displacing agency
meets its obligation to make a comparable replacement dwelling available to the
person, as provided in Rule 1680-06-02-07, Paragraph (5).
3. If the displaced person purchases a
replacement dwelling before the one-year deadline but is unable to occupy the
dwelling for reasons beyond the displaced person's control, the requirement to
occupy the replacement dwelling within the one-year period may be
waived.
(b) Amount of
Payment (Basic Computation).
The replacement housing payment made to an eligible 90-day
owner-occupant shall be in an amount, not to exceed $31,000, necessary to
relocate the owner-occupant to a comparable replacement dwelling within the
one-year eligibility period, as defined in Subparagraph (a) above. Such payment
shall be determined by calculating the sum of:
1. The amount, if any, by which the
acquisition cost of the replacement dwelling exceeds the base compensation
received for the displacement dwelling, with such cost differential to be
determined in accordance with Subparagraph (c) below;
2. The amount of any increased interest costs
and other debt service costs that are incurred in connection with the
mortgage(s) on the replacement dwelling, as determined in accordance with
Subparagraph (d) below; and
3. The
reasonable expenses incidental to the purchase of the replacement dwelling, as
determined in accordance with Subparagraph (e) below.
(c) Determining the Cost Differential Between
the Replacement Dwelling and the Displacement Dwelling.
1. Acquisition Cost of the Replacement
Dwelling.
(i) Replacement Dwelling. For the
purposes of calculating the replacement housing payment for a 90-day
owner-occupant under this Rule, the acquisition cost of the replacement
dwelling shall be the lesser of:
(I) The
reasonable cost of a comparable replacement dwelling, as determined in
accordance with Subparagraph (3)(a) below; or
(II) The purchase price of a decent, safe and
sanitary replacement dwelling actually purchased and occupied by the displaced
person.
(ii) Retention
of Displacement Dwelling. In the alternative, if the owner-occupant retains
ownership of his or her displacement dwelling and moves it from the
displacement site to reoccupy it at the replacement site, the acquisition cost
of the replacement dwelling shall be the sum of:
(I) The cost of moving and restoring the
dwelling to a condition comparable to that prior to the move;
(II) Any additional cost necessary to make
the unit a decent, safe and sanitary replacement dwelling;
(III) The current fair market value for
residential use of the replacement site, as determined by appraisal or any
other reasonable method, unless the claimant rented the displacement site and
there is a reasonable opportunity for the claimant to rent a suitable
replacement site; and
(IV) The
retention value of the dwelling, if such retention value is reflected in the
"acquisition cost" used when computing the replacement housing
payment.
2.
Adjustments to Base Compensation for Displacement Dwelling.
(i) Mixed-Use and Multi-Family Properties. If
the displacement dwelling was part of a property that contained another
dwelling unit and/or space used for non-residential purposes, and/or is located
on a lot larger than typical for residential purposes, only that portion of the
compensation payment actually attributable to the displacement dwelling shall
be considered when computing the cost differential.
(ii) Insurance Proceeds. To the extent
necessary to avoid duplicate compensation, the amount of any insurance proceeds
received by a person in connection with a loss to the displacement dwelling due
to a disaster (fire, flood, etc.) shall be included in the base compensation
for the displacement dwelling when computing the cost differential.
(d) Increased Mortgage
Interest Costs.
1. The payment for increased
mortgage interest costs shall be the amount that will reduce the mortgage
balance on a new mortgage, if any, to an amount that could be amortized with
the same monthly payments for principal and interest as that for the
mortgage(s) on the displacement dwelling. It shall also include other debt
service costs, if not paid as incidental costs, and shall be based only on bona
fide mortgages that were valid liens on the displacement dwelling for at least
180 days prior to the initiation of negotiations.
2. The computation of the increased mortgage
interest costs payment shall be based on the following:
(i) The payment shall be based on the unpaid
mortgage balance(s) on the displaced dwelling. In the event, however, that the
person obtains a smaller mortgage than the mortgage balance computed in the
buydown determination, the payment shall be prorated and reduced accordingly.
In the case of a home equity loan, the unpaid balance shall be that balance
which existed 180 days prior to the initiation of negotiations or the balance
on the date of acquisition, whichever is less.
(ii) The payment shall be based on the
remaining term of the mortgage(s) on the displacement dwelling or the term of
the new mortgage, whichever is shorter.
(iii) The interest rate on the new mortgage
used in determining the amount of the payment shall not exceed the prevailing
fixed interest rate for conventional mortgages charged by mortgage lending
institutions in the area in which the replacement dwelling is
located.
(iv) Purchaser's points
and loan origination or assumption fees, but not seller's points, shall be paid
to the extent that:
(I) They are not paid as
incidental expenses;
(II) They do
not exceed rates normal to similar real estate transactions in the
area;
(III) The displacing agency
determines them to be necessary; and
(IV) The computation of such points and fees
shall be based on the unpaid mortgage balance(s) on the displacement dwelling,
less the amount determined for the reduction of such mortgage balance(s) under
this part.
(v) The
displaced person shall be advised of the approximate amount of this payment and
the conditions that must be met to receive the payment as soon as the facts
relative to the person's current mortgage(s) are known and the payment shall be
made available at or near the time of closing on the replacement dwelling in
order to reduce the new mortgage as intended.
(e) Incidental Expenses.
The incidental expenses to be paid are those necessary and
reasonable costs actually incurred by the displaced person incident to the
purchase of a replacement dwelling, and customarily paid by the buyer,
including the following:
1. Legal,
closing and related costs, including those for title search, title insurance,
preparing conveyance instruments, notary fees, preparing surveys and plats, and
recording fees;
2. Lender, FHA or
VA application and appraisal fees;
3. Loan origination or assumption fees that
do not represent prepaid interest;
4. Certification of structural soundness, and
termite inspection when required;
5. Credit report;
6. Owner's and mortgagee's evidence or
assurance of title, e.g., title insurance (not to exceed the costs for evidence
or assurance of title for a comparable replacement dwelling);
7. Escrow agent's fee;
8. State revenue or documentary stamps, sales
or transfer taxes (not to exceed the costs for a comparable replacement
dwelling);
9. Mortgage default
insurance (based on the unpaid mortgage balance(s) on the displacement dwelling
or the new mortgage amount, whichever is less); and
10. Such other costs as the displacing agency
determines are normally incidental to the purchase of similar real estate in
the area.
(f) Rental
Assistance Payment for 90-Day Owner-Occupant.
A displaced 90-day owner-occupant eligible for a replacement
housing payment under Paragraph (1) of this Rule may choose to rent a
replacement dwelling. In such case, the displaced person is entitled to receive
a rental assistance payment, not to exceed $7,200, in lieu of a replacement
housing payment. The amount of the rental assistance payment shall be
calculated and disbursed in accordance with Subparagraph (2)(b) of this
Rule.
(2)
Replacement Housing Payments for 90-Day Occupants.
(a) Eligibility.
A tenant or owner-occupant displaced from a dwelling is
entitled to a payment, not to exceed $7,200, for rental assistance, as computed
in accordance with Subparagraph (b) below, or down payment assistance, as
computed in accordance with Subparagraph (c) below, if the displaced person:
1. Has actually and lawfully occupied
the displacement dwelling for at least 90 days immediately prior to the
initiation of negotiations; and
2.
Has rented, or purchased, and occupied a decent, safe and sanitary replacement
dwelling within one year (unless the displacing agency extends this period for
good cause based on occurrences beyond the displaced person's control) after:
(i) In the case of a tenant, the date the
person moves from the displacement dwelling, or
(ii) In the case of an owner-occupant, the
later of:
(I) The date the person receives
final payment for the displacement dwelling, or in the case of condemnation,
the date the full amount of the estimate of just compensation is deposited with
the court, or
(II) The date the
person moves from the displacement dwelling.
(b) Rental Assistance Payment.
1. Amount of Payment. An eligible displaced
person who rents a replacement dwelling is entitled to a payment, not to exceed
$7,200, for rental assistance.
Such payment shall be 42 times the amount obtained by
subtracting the base monthly rent for the displacement dwelling, as calculated
in accordance with Part 2 below, from the lesser of:
(i) The monthly rent and estimated average
monthly cost of utilities for a comparable replacement dwelling; or
(ii) The monthly rent and estimated average
monthly costs of utilities for the decent, safe and sanitary dwelling actually
occupied by the displaced person.
2. Base Monthly Rent For Displacement
Dwelling. The base monthly rent for the displacement dwelling is the lesser of:
(i) The average monthly cost for rent and
utilities at the displacement dwelling for a reasonable period prior to
displacement, as determined by the displacing agency, except that:
(I) For an owner-occupant, the monthly rent
shall be the fair market rent for the displacement dwelling, or
(II) For a tenant who paid little or no rent,
the monthly rent shall be the fair market rent, unless its use would create a
hardship because of the person's income or other circumstances;
(ii) Thirty (30) percent of the
persons average gross household income if their income is classified as "low
income" by the U.S Department of Housing and Urban Development's Annual Survey
of Income Limits for Public Housing and Section 8 Programs (
http://www.fhwa.dot.gov/realestate/ua/ualic.htm).
If the person refuses to provide appropriate evidence of income or is a
dependent (a full time student or resident of an institution may be assumed to
be a dependent unless the person demonstrates otherwise), the base monthly rent
shall be established solely on the criteria in Subpart 2(i) above; or
(iii) The total of the amounts designated for
shelter and utilities if the person is receiving a welfare assistance payment
from a program that designates the amounts for shelter and utilities.
3. Manner of Disbursement. A
rental assistance payment may, at the displacing agency's discretion, be
disbursed either in a lump sum or in installments. However, except as limited
by Subparagraph (3)(h) below, the full amount vests immediately, whether or not
there is any later change in the person's income or rent, or in the condition
or location of the person's housing.
(c) Down Payment Assistance Payment.
1. Eligibility. A displaced person eligible
for a rental assistance payment under Paragraph (2) of this Rule is also
eligible to receive a down payment assistance payment if the person chooses to
purchase a replacement dwelling. Any displaced person eligible to receive a
replacement housing payment as a 90-day owner-occupant is not eligible for this
payment.
2. Amount of Payment. The
amount of the down payment assistance payment shall be equal to the amount the
person would receive under Subparagraph (2)(b) of this Rule if the person
rented a comparable replacement dwelling. At the discretion of the displacing
agency, the down payment assistance payment may be increased to any amount not
to exceed $7,200, or the amount the person would receive as a replacement
housing payment if the person met the 90-day occupancy requirement, whichever
is less. The displacing agency's discretion to provide the maximum shall be
exercised in a uniform and consistent manner, so that eligible displaced
persons in like circumstances are treated equally.
3. Application of Payment. The full amount of
the down payment assistance must be applied to the purchase price of the
replacement dwelling and related incidental expenses.
(3) Additional Rules
Governing Replacement Housing Payments.
(a)
Determining the Acquisition Cost of Comparable Replacement Dwelling.
The upper limit of a replacement housing payment shall be
based on the cost (asking price) of a comparable replacement dwelling
identified for the displaced person.
1. If available, at least three comparable
replacement dwellings shall be examined and the payment computed on the basis
of the dwelling most nearly representative of, and equal to or better than, the
displacement dwelling. An obviously overpriced dwelling may be ignored.
If an adjustment is made in the replacement housing payment
computation and the displaced person purchases the selected comparable dwelling
but at a price higher than the adjusted price, the replacement housing payment
will be adjusted upward to reflect the actual purchase price of the replacement
dwelling.
2. If the site of
the comparable replacement dwelling lacks a major exterior attribute of the
displacement dwelling site, e.g., the site is significantly smaller or does not
contain a swimming pool, the value of such attribute shall be subtracted from
the acquisition cost of the displacement dwelling for purposes of computing the
payment.
3. If the acquisition of a
portion of a typical residential property causes the displacement of the owner
from the dwelling and the remainder is a buildable residential lot, the
displacing agency may offer to purchase the entire property. If the owner
refuses to sell the remainder to the displacing agency, the fair market value
of the remainder may be added to the acquisition cost of the displacement
dwelling for purposes of computing the replacement housing payment.
4. To the extent feasible, comparable
replacement dwellings shall be selected from the neighborhood in which the
displacement dwelling was located or, if that is not possible, in nearby or
similar neighborhoods where housing costs are generally the same or
higher.
(b) Inspection
of Replacement Dwelling.
Before making a replacement housing payment or releasing a
payment from escrow, the displacing agency or its designated agent shall
inspect the replacement dwelling and determine whether it is a decent, safe and
sanitary dwelling.
(c)
Statement of Eligibility to Lending Agency.
If the displaced person qualifies for a replacement housing
payment but has not yet purchased or occupied a replacement dwelling, the
displacing agency shall, upon the request of the displaced person, provide a
written statement to any interested party, financial institution or lending
agency, that the displaced person is eligible for the payment of a specific sum
subject to the displacing agency's requirements.
(d) Revisions to the Replacement Housing
Payment.
When replacement housing, similar in price and comparability
to the dwelling used in the original replacement housing computation, is no
longer available, the displacing agency shall make any necessary referrals to
comparable housing currently available, and the displacing agency shall revise
the replacement housing payment subject to the following requirements:
1. The revised offer may not be less than the
original offer merely because a less expensive comparable becomes
available.
2. A replacement housing
payment offer shall be revised and may be less than the original offer if:
(i) The appraisal is updated and the offer
for the displacement dwelling and site is increased;
(ii) In condemnation cases, the final award
is greater than the acquisition offer for the displacement dwelling and site;
or
(iii) In the case of an
administrative settlement, the initial acquisition offer for the displacement
dwelling and site is increased.
3. Except in those cases where the
acquisition offer is increased, the primary purpose of a revised replacement
housing payment offer is to provide the displaced person with information
regarding currently available replacement housing. Therefore, if replacement
dwellings similar in price and comparability to the dwelling used in the
original replacement housing payment computation are available, a revised offer
is not necessary. However, current listings must be provided to the displaced
person if requested.
(e)
Purchase of Replacement Dwelling.
A displaced person shall be considered to have met the
requirement to purchase a replacement dwelling under any one of the following
conditions:
1. The displaced person
purchases an existing decent, safe and sanitary dwelling.
2. The displaced person purchases and
rehabilitates a substandard dwelling; provided, that in such a case the
displacing agency shall pay the person an amount, not to exceed the amount
offered as a replacement housing payment, to the extent that the sum of the
following exceeds the acquisition price for the displacement dwelling:
(i) The purchase price of the substandard
dwelling; plus
(ii) The costs of
undertaking any actions pre-approved by the displacing agency as being
necessary to make the dwelling decent, safe, and sanitary, but not to make the
dwelling comparable.
3.
The displaced person relocates a dwelling that the displaced person owns or
purchases; provided, that in such a case the displacing agency shall pay the
person an amount, not to exceed the amount offered as a replacement housing
payment, to the extent that the sum of the following exceeds the acquisition
price for the displacement dwelling:
(i) The
retention value or current fair market value of the relocated dwelling;
plus
(ii) The cost of moving the
relocated dwelling; plus
(iii) The
cost of undertaking any actions pre-approved by the displacing agency as being
necessary to restore the relocated dwelling to a condition comparable to that
prior to the move; plus
(iv) The
cost of undertaking any actions pre-approved by the displacing agency as being
necessary to make the relocated dwelling a decent, safe and sanitary dwelling;
plus
(v) The cost of purchasing the
replacement site, up to an amount not to exceed the cost of an available
suitable replacement site, or the current fair market value of the replacement
site, in any case where the relocated dwelling is moved to remainder land
adjacent to the site of the displacement dwelling or on other land previously
owned by the displaced person.
4. The displaced person constructs a decent,
safe, and sanitary dwelling on a site which the displaced person owns or
purchases; provided, that in such a case the displacing agency shall pay the
person an amount, not to exceed the amount offered as a replacement housing
payment, to the extent that the sum of the following exceeds the acquisition
price for the displacement dwelling:
(i) The
cost of constructing a decent, safe and sanitary dwelling; plus
(ii) The cost of purchasing the replacement
site, up to an amount not to exceed the cost of an available suitable
replacement site, or the current fair market value of the replacement site, in
any case where the relocated dwelling is constructed on remainder land adjacent
to the site of the displacement dwelling or on other land previously owned by
the displaced person.
5.
The displaced person contracts for the purchase or construction of a dwelling
on a site provided by a builder or on a site the person owns or
purchases.
6. The displaced person
occupies a decent, safe, and sanitary dwelling that the displaced person
previously owned, in which case the acquisition cost for the replacement
dwelling shall be the current fair market value of that dwelling.
(f) Occupancy Requirements for
Displacement or Replacement Dwelling.
No person shall be denied eligibility for a replacement
housing payment solely because the person is unable to meet the occupancy
requirements for a displacement or replacement dwelling set forth in these
Rules for a reason beyond the displaced person's control, including:
1. A disaster, an emergency, or an imminent
threat to the public health or welfare, as determined by the President, the
agency funding the project, or the displacing agency; or
2. Another reason, such as delay in the
construction of the replacement dwelling, military reserve duty, or hospital
stay, as determined by the displacing agency.
(g) Conversion of Payment.
A displaced person who initially rents a replacement dwelling
and receives a rental assistance payment under Rule 1680-06-02-.13,
Subparagraph (2)(b), is eligible to receive a replacement housing payment under
Rule 1680-06-02-.13, Paragraph (1), or a down payment assistance payment under
Rule 1680-06-02-.13, Subparagraph (2)(c), if the displaced person meets the
applicable eligibility requirements for such payments, including purchase and
occupancy within the prescribed one-year period. Any portion of the rental
assistance payment that has been disbursed shall be deducted from the
replacement housing payment or down payment assistance payment.
(h) Payment After Death.
A replacement housing payment is personal to the displaced
person and upon his or her death the undisbursed portion of any such payment
shall not be paid to the heirs or assigns, except that:
1. The amount attributable to the displaced
person's period of actual occupancy of the replacement housing shall be
paid;
2. The full payment shall be
disbursed in any case in which a member of the displaced family dies and the
other family members continue to occupy a decent, safe, and sanitary
replacement dwelling; and
3. Any
portion of a replacement housing payment necessary to satisfy the legal
obligation of an estate in connection with the selection of a replacement
dwelling by or on behalf of a deceased person shall be disbursed to the
estate.
