(a) Form of claim. To obtain a relocation payment, a claimant shall file a written claim with the Agency on the appropriate HUD forms.

(b) Documentation in support of claim. A claim shall be supported by the following:

(1) If for moving expenses, except in the case of a fixed payment, a receipted bill or other evidence of such expenses. By prearrangement between the Agency, the claimant, and the mover, confirmed in writing by the Agency, the claimant may present an unpaid moving bill to the Agency, and the Agency may pay the mover directly.

(2) If for actual direct loss of property, written evidence thereof, which may include appraisals, certified prices, copies of bills of sale, receipts, canceled checks, copies of advertisements, offers to sell, auction records, and such other records as may be appropriate to support the claim.

(3) In any other case, such documentation as may be required by the Agency, which may include income tax returns, withholding or informational statements, and proof of age.

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(c) Time for filing claims. A claim for moving expenses, actual direct loss of property, or a small business displacement payment shall be submitted to the Agency within a period of 6 months after the displacement of the claimant. claim for a relocation adjustment payment shall be submitted within a period of 60 days after the displacement of the claimant. A claim for settlement costs shall be submitted within 6 months after the costs have been incurred.

(1) Displacement prior to December 1, 1966. Notwithstanding the first three sentences of this paragraph (c), the 6month and 60-day filing periods referred to therein shall commence running on the date of receipt of a notification of the availability of relocation payments or the date of a published notice with respect to any claimant who is displaced prior to December 1, 1966, and prior to the receipt of such notification or the date of such published notice.

(2) Waivers. The time limitations in this paragraph (c) may be waived by the Agency for good cause, with HUD concurrence.

§ 4.113 Limitation on amount of relocation payments.

(a) Moving expenses and loss of property. (1) Maximum amount-individuals or families. The maximum relocation payment that may be made or recognized for moving expenses and actual direct loss of property, for which reimbursement or compensation is not otherwise made, to an individual or family shall not exceed $200. The maximum relocation payment that may be made or recognized for moving expenses and actual direct loss of property, for which reimbursement or compensation is not otherwise made, to two or more unrelated individuals occupying the same dwelling unit shall not exceed $200.

(2) Maximum amount-business concerns. The maximum relocation payment that may be made or recognized in the case of a business concern for moving expenses and actual direct loss of property, for which reimbursement or compensation is not otherwise made, shall not exceed $3,000: Provided, That if the total of the actual moving expenses incurred on or after March 4, 1965, and prior to August 12, 1965, is greater than $3,000, the maximum relocation payment that may be made or recognized in the case of a business concern, for which reimbursement or compensation is not otherwise made, shall be the total of such actual moving expenses or $25,000, whichever is less. If the total of the actual moving expenses incurred on or after August 12, 1965, is greater than $3,000, the maximum relocation payment that may be made or recognized in the case of a business concern, for which reimbursement or compensation is not otherwise made, shall be the sum of:

(i) The total actual moving expenses or $25,000 whichever is less; and

(ii) A percentage of the actual moving expenses in excess of $25,000, which percentage shall be the same as the percentage of project cost paid for by the Federal Grant under the terms of the Federal Grant Contract: Provided, That the Agency makes a cash payment to the business concern equal to the remainder of the actual moving costs in excess of $25,000, which payment shall not constitute any portion of the local share of the project cost.

(3) Maximum moving distance. If a business concern moves beyond 100 miles from the boundary of the city, town, township, village, or county, as the case

may be, in which the project is carried out, a relocation payment for its moving expenses may not be made in excess of the reasonable and necessary expenses for moving such distance of 100 miles.

(b) Small business displacement payment-fixed amount. A small business displacement payment shall be $1,500 for business concerns displaced prior to August 10, 1965, and $2,500 for business concerns displaced on or after August 10, 1965.

(c) Maximum amount-relocation adjustment payment. The total relocation adjustment payment that may be made for a family or elderly individual shall be an amount not to exceed $500 which, when added to 20 percent of the annual income of the family or individual at the time of displacement, equals the average annual gross rental required for a decent, safe, and sanitary dwelling of modest standards adequate in size to accommodate the family or individual (in the area in which the project is carried out or in other areas generally not less desirable in regard to public utilities and public and commercial facilities), as determined by the Agency.

§ 4.114 Determinations in condemnation proceedings.

Notwithstanding any other provision of the regulations in this subpart, when property is acquired by proceedings in condemnation, and the amount of the judgment includes an allowance for reasonable and necessary moving expenses, actual direct loss of property, or settlement costs, the portion of the judgment representing compensation for these items, if separately stated, shall be entitled to recognition as a relocation payment in an amount not to exceed the applicable dollar limitations of § 4.113: Provided, That the allowance for actual direct loss of property makes no compensation for loss of good will or profit.

(a) "Act" means the Housing and Urban Development Act of 1965.

(b) "Secretary" means the Secretary of Housing and Urban Development or an officer of the Department of Housing and Urban Development empowered to exercise any of the functions of the Secretary under section 101 of the Act. (c) "Commissioner" means the Federal Housing Commissioner or his authorized representative.

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(d) "Dilapidated housing" means housing unit that does not provide safe and adequate shelter, and in its present condition endangers the health, safety or well-being of the occupants. Such a housing unit shall have one or more critical defects, or a combination of intermediate defects in sufficient number or extent to require considerable repair or rebuilding. Such defects may involve original construction, or they may result from continued neglect or lack of repair or from serious damage to the structure.

(e) "Displaced by governmental action" means an individual or family, moved or to be moved from real property occupied as a dwelling unit as a result of activities in connection with a public improvement or development program carried on by an agency of the United States or any State or local governmental body or agency.

(f) "Family" means two or more persons related by blood, marriage, or operation of law, who occupy the same dwelling unit.

(g) "Physically handicapped" means an individual who has a physical impairment which:

(1) Is expected to be of long continued and indefinite duration;

(2) Substantially impedes his ability to live independently; and

(3) Is of such nature that his ability to live independently could be improved by more suitable housing conditions.

(h) "Substandard housing" means a unit which is either dilapidated as defined in paragraph (d) of this section, or does not have one of the following plumbing facilities:

(1) Hot and cold piped water inside the unit.

(2) Usable flush toilet inside the structure for the exclusive use of the occupants of the unit.

(3) Usable bathtub or shower inside the structure for the exclusive use of the occupants of the unit.

§ 5.5 Scope of rent supplement assist

ance.

The Commissioner may enter into & rent supplement contract with the owner of specific types of multifamily housing projects for payment of a portion of the rent on behalf of qualified tenants. The conditions of eligibility for such a contract and its terms are specified in this part.

§ 5.10 Projects eligible for benefits.

Rent supplement payments shall be available in connection with multifamily projects involving new construction. They shall also be available in connection with projects involving the major rehabilitation of existing structures, the creation of standard units in structures previously containing substandard units, and (on an experimental basis) in connection with certain existing elderly housing projects.

§ 5.15 Eligible housing owner.

(a) To be eligible to receive rent supplement payments, the owner of the multifamily project shall be a nonprofit, limited distribution, or cooperative mortgagor. The project shall be financed in one of the following ways:

(1) By a mortgage bearing interest at the market rate prescribed in § 221.518 (a) of this title and insured under section 221(d) (3) of the National Housing Act. Such mortgage shall be insured pursuant to an insurance commitment issued after August 10, 1965.

(2) By a state or local program providing assistance through loans, loan insurance, or tax abatements, if the project is approved by the Commissioner for receiving rent supplement payments and such approval is given prior to the completion of the construction or rehabilitation.

(b) The Commissioner may, on an experimental basis, enter into a limited number of rent supplement contracts with the following types of housing

owners:

(1) A nonprofit, limited distribution, or cooperative mortgagor under a mortgage bearing interest at the below-market rate prescribed in § 221.518 (b) of this title. Such project must be insured pursuant to a commitment issued after August 10, 1965, for the insurance of a mortgage under section 221(d) (3) of the National Housing Act.

(2) A private nonprofit mortgagor under a mortgage insured pursuant to section 231(c)(3) of the National Housing Act which is approved for receiving the benefits provided in this part and finally endorsed for insurance after August 10, 1965.

(3) A private nonprofit corporation, a public body or agency, or a cooperative housing corporation which is a borrower under section 202 of the Housing Act of 1959 and has been approved for receiving the benefits provided in this part.

(4) A nonprofit, limited distribution, or cooperative mortgagor under a mortgage insured pursuant to section 236 of the National Housing Act which is receiving interest reduction payments pursuant to such section and is approved for receiving the benefits provided in this part.

(c) A housing owner qualifying under the provisions of paragraph (a) or (b) of this section shall only be eligible for rent supplement payments if:

(1) The dwelling unit or project is part of a workable program for community improvements meeting the requirements of section 101(c) of the Housing Act of 1949; or

(2) The dwelling unit or project receives local official approval for participation in the Federal rent supplement program.

(d) Where the project is to be insured under section 221(d) (3) of the National Housing Act and is to be located in a community in which a workable program was required and was in effect at an

earlier date (at which time a loan or grant was made under title I of the Housing Act of 1949 or under the United States Housing Act of 1937), the workable program requirement of paragraph (c) (1) of this section must be met and the requirements of paragraph (c)(2) of this section shall not be applicable. [31 F.R. 7563, May 12, 1966, as amended at 31 F.R. 13081, Oct. 8, 1966; 33 F.R. 11151, Aug. 7, 1968; 33 F.R. 16071, Nov. 1, 1968] § 5.20 Qualified tenant.

(a) The benefits of the rent supplement payments are available only to an individual or a family renting a dwelling unit in a project owned by an eligible housing owner or occupying such a dwelling unit as a cooperative member. To qualify for such benefits, the individual or family shall meet the following requirements:

(1) Have an annual income below the maximum amount established by the Secretary, which amount shall not be higher than can be established in the area where the property is located for occupancy in a low-rent public housing project assisted under the United States Housing Act of 1937. In computing a tenant's income for the purpose of this section, $300 shall be deducted for each minor person who is a member of the immediate family of the tenant and residing with the tenant and any earnings of such minor shall not be included in computing the tenant's income.

(2) In a case involving an elderly individual or a family whose head or spouse is elderly, have assets not exceeding $5,000.

(3) In a case involving other than the elderly, have assets not exceeding $2,000. (4) Be one of the following:

(i) An individual or family displaced by governmental action.

(ii) An individual who is 62 years of age or over, or physically handicapped.

(iii) A head of a family who is or whose spouse is, 62 years of age or over, or who is physically handicapped.

(iv) An occupant of substandard housing.

(v) An occupant or former occupant of a dwelling which is (or was) situated in an area determined by the Small Business Administration subsequent to April 1, 1965, to have been affected by a natural disaster and which has been extensively damaged or destroyed as the result of such disaster.

(b) For the purposes of this section, income shall mean the total gross income, before taxes and other deductions, received by all members of the tenant's household. In determining gross income, there shall be included all wages, social security payments, retirement benefits, military and veteran's disability payments, unemployment benefits, welfare benefits, interest and dividend payments, and such other income items as the Secretary considers appropriate. [31 F.R. 7563, May 21, 1966, as amended at 33 F.R. 11151, Aug. 7, 1968]

§ 5.25 Certificate of eligibility.

(a) Upon request of a housing owner, the Commissioner will review for eligibility the application by a prospective tenant for rent supplement payments. If the application meets the requirements of § 5.20, the Commissioner shall issue a certificate of eligibility. The certificate shall state the amount of rent supplement to be paid monthly by the Commissioner to the housing owner on behalf of the qualified tenant. The payment shown in the certificate shall not, regardless of the tenant's income, exceed 70 percent of the approved rent for the unit. No certificate of eligibility shall be issued where the amount of rent supplement payment would be less than 10 percent of such approved rent.

(b) The Commissioner may approve a qualified tenant as a lessee under an option to purchase a dwelling at a stipulated price, if he determines that the tenant will be able to finance such purchase on the basis of the probability of future increases in the tenant's income. § 5.30 Provisions applicable to coopera

tive members.

(a) A member of a cooperative who obtains a certificate of eligibility shall be required, as a condition of receiving the certificate, to agree that upon a sale of his membership, any equity increment accumulated through rent supplement payments will not be made available to the member, but will be turned over to the cooperative housing owner. Funds received by a cooperative representing an equity increment accumulated through rent supplement payments shall be deposited by the cooperative in a special account to be disbursed as directed by the Commissioner.

(b) The term "tenant" as used in this section shall mean a member of a cooperative, and the term "rent" shall

The rent supplement contract shall be limited to the term of the mortgage or 40 years from the date of the first payment made under the contract, whichever is the lesser.

§ 5.40 Maximum annual project payments under contract.

The rent supplement contract shall state the maximum dollar amount of the rent supplement payments for any 1 year based upon the Commissioner's estimate of probable effective demand and distribution of tenant income, including a 10percent contingency allowance. At the end of such period of time as the Commissioner may prescribe for the rental of the dwelling units, appropriate adjustment shall be made in the maximum rental payments, including a 10-percent contingency allowance, to reflect the actual requirements of the tenants. Payments shall not be made with respect to more than 20 percent of the number of dwelling units in any project which is assisted under:

(a) Section 202 of the Housing Act of 1959, if the loan agreement under that section was entered into on or before August 10, 1965; or

(b) Section 231 (c) (3) of the National Housing Act, if the mortgage was finally endorsed for insurance under that section after August 10, 1965, pursuant to a commitment issued on or before such date.

(c) Section 236 of the National Housing Act.

[31 F.R. 7563, May 21, 1966, as amended at 33 F.R. 16071, Nov. 1, 1968]

(1) $300 shall be deducted for each minor person who is a member of the immediate family of the tenant and residing with the tenant and any earnings of such minor shall not be included in computing the tenant's income.

(2) The Commissioner may allow special deductions to take into account expenses incurred as a result as a result of physical disability or continuing illness, the cost of necessary child care while a wage earner of the household is at work and such other deductions as the Secretary considers appropriate.

[31 F.R. 7563, May 21, 1966, as amended at 33 F.R. 11151, Aug. 7, 1968]

The rent supplement contract shall provide, except with respect to tenants who are 62 years of age or older, that a recertification of income shall be obtained by the housing owner each year from the date the original certificate of eligibility was issued. Provision shall be included for adjusting payments to reflect income changes shown by the recertification.

§ 5.60 Hardship cases.

Where a tenant's income has decreased due to illness, loss of job, or other hardship beyond his control, the Commissioner may grant a temporary increase in rent supplement payments.

§ 5.65 Tenant occupancy limitations.

Qualified tenants shall not be permitted to occupy units larger than the Commissioner determines necessary for their needs.

§ 5.70 Form of lease.

(a) Lease form. Qualified tenants shall be required to execute a lease in a form approved by the Commissioner.

(b) Special lease provisions. The lease shall contain the following special provisions:

(1) A provision obligating the tenant to report immediately to the housing owner any increase in income which results in a monthly income of four or more times the full monthly rental for the housing unit.