structed on a site to be provided by a builder or developer or on a site which the displaced person owns or acquires for such purpose. Where completion of construction, 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 State agency 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 or rehabilitation is completed.

(5) Where, for reasons of hardship and beyond the control of the displaced person, such person is unable to occupy the replacement dwelling by the date by which occupancy is required under this paragraph (b), the State agency may determine the date of occupancy to be the date on which the displaced person became entitled to possession of such dwelling: Provided, That the displaced person occupies the replacement dwelling within such reasonable period of time as shall be determined by HUD.

(c) Computation of replacement housing payment (1) Cost of comparable replacement dwelling. The cost of a comparable replacement dwelling for purposes of paragraph (a) (1) of this section, shall be determined by the method specified in paragraph (c) (1) (1) except as provided in paragraph (c) (1) (ii) or (111);

(1) Comparative method: On a caseby-case basis by determining the sales price of one or more dwellings which have been selected by the State agency and which are most representative of the acquired dwelling unit and meet the definition of "comparable replacement housing" set out in § 42.20(b);

(11) Schedule method: By the use of a schedule as described in § 42.160, in cases in which a State agency determines that the use of a schedule is desirable.

(iii) Alternative method: Where the State agency determines that neither the schedule nor comparative method is feasible in a given situation, by the use of such other method as may be approved by HUD.

(2) Interest payments. Interest payments shall be equal to the difference between (1) the aggregate interest ap

plicable to the amount of the principal of the mortgage on the acquired dwelling over its remaining term at the time of acquisition, and other debt service costs, and (ii) the aggregate interest paid on the mortgage on the replacement dwelling, and other debt service costs: Provided, That the term and amount of the mortgage on the replacement dwelling for purposes of this paragraph shall be the lesser of (iii) the remaining term and amount of the mortgage on the acquired dwelling, or (iv) the actual term and amount of the mortgage on the replacement dwelling: And provided further, That such differential shall be reduced to discounted present value. In making such computation, the aggregate interest and other debt service costs with respect to the replacement dwelling shall not exceed the prevailing interest rate currently charged by the mortgage lending institutions in the general area in which the replacement dwelling is located. The discount rate for computing the present worth of future payments of increased interest shall be computed at the prevailing interest rate paid on savings deposited by commercial banks in the general area in which the replacement dwelling is located: And provided further, That the amount of the debt service cost with respect to the replacement dwelling shall be the lesser of (v) the debt service cost based on the cost required for a comparable dwelling, or (vi) the debt service cost based on the actual cost of the replacement dwelling.

(3) Expenses incident to the purchase of the replacement dwelling. Such payments shall be the amount necessary to reimburse the displaced person for actual costs incurred by him incident to the purchase of the replacement dwelling, including (1) legal, closing, and related costs including title search, preparing conveyance contracts, notary fees, surveys, preparing drawings or plats, and charges paid incident to recordation. (ii) Lender, FRA or VA appraisal. (iii) FHA or VA application fee. (iv) Certification of structural soundness. (v) Credit report. (vi) Owner's and mortgagee's evidence or assurance of title. (vii) Escrow agent's fee. (viii) Sales or transfer taxes: Provided, That no payment for any such expenses shall exceed the amount attributable to the purchase of a comparable dwelling, as defined by § 42.20(b) and selected in accordance with this section. No reim

bursement shall be made for any fee, cost, charge, or expense which is determined to be a part of the debt service or finance charge under Title I of the Truth in Lending Act (Pub. L. 90-321), and Regulation Z issued pursuant thereto by the Board of Governors of the Federal Reserve System.

(d) Limitation-joint owner-occupants of single-family dwellings. The total amount of payment under this section to individuals (regardless of whether they are family members or not) who were joint owner-occupants of a singlefamily dwelling acquired as a result of the project shall be subject to the limitation of § 42.80(b).

(e) Descent and distribution of replacement housing payments. A replacement housing payment computed in accordance with this section or with § 42.95 shall be personal to the displaced person claiming such payment, and shall not be paid to his heirs or assigns to the extent to which such payment, or any portion thereof, has not been disbursed prior to the death of such displaced person (except as to the amount attributable to such displaced person's actual period of Occupancy of comparable replacement housing): Provided, That such payment shall be fully disbursed in any case in which the displaced person was a member of a family living with him in the dwelling or dwelling unit from which he was displaced, which continues to occupy together the comparable dwelling selected in accordance with the regulations in this Part; And provided further, That so much of a replacement housing payment as will satisfy the legal obligation of an estate in connection with the selection of a comparable dwelling by or on behalf of a deceased displaced person shall be disbursed to the estate.

(f) Mobile Homes-(1) Acquisition of mobile homes. Any person displaced as the result of the acquisition of a mobile home (actually owned and occupied by such person in accordance with paragraph (b) of this section or actually occupied in accordance with § 42.95 (b)) who otherwise meets the eligibility requirements of the regulations in this Part shall be eligible for a payment under this section or under the provisions of § 42.95: Provided, That payments shall be computed in accordance with paragraph (c) (1) of this section or 8 42.95 (c) based upon the reasonable cost of a comparable mobile home.

(2) Displacement from mobile homes not caused by acquisition. For purposes of this section and § 42.95, any person required to move a mobile home (actually owned and occupied by such person in accordance with the provisions of paragraph (b) of this section or actually occupied in accordance with § 42.95 (b)) from real property acquired for a project as defined by the regulations in this Part shall be deemed displaced by reason of acquisition, notwithstanding the fact that the mobile home cannot be acquired as real property pursuant to State law, if:

(i) The mobile home cannot be moved without substantial damage or unreasonable cost as determined by the State agency; or

(ii) The mobile home is not a decent, safe and sanitary dwelling, as determined by the State agency.

The State agency shall determine the salvage value of the mobile home and shall deem such value the "acquisition cost" in computing a payment under paragraph (c) of this section.

(3) The displaced person must be determined to have moved to a comparable dwelling as defined by § 42.20 (b) of the regulations in this Part.

(4) Payments shall be computed in accordance with paragraph (c) (1) of this section or § 42.95 (c) based upon the reasonable cost of a comparable mobile home.

(g) Presidentially-declared Disasters. Notwithstanding any other provision of the regulations in this Part, no person otherwise eligible for a payment under this section or under § 42.95 shall be denied such eligibility as a result of his being unable, because of a major disaster as determined by the President, to meet the occupancy requirements set forth in the regulations in this Part. § 42.95

Replacement housing payments

for tenants and certain others.

(a) General. A State agency shall make to a displaced person who satisfies the eligibility requirements of § 42.55 and the conditions of paragraph (b) of this section, a payment not to exceed $4,000 for either:

(1) An amount, computed in accordance with paragraph (c) (1) of this section, necessary to enable such displaced person to lease or rent a comparable replacement dwelling for a period not to exceed 4 years; or

(2) An amount, computed in accordance with paragraph (c) (2) of this section, necessary to enable such displaced person to make a downpayment (including incidental expenses described in § 42.90 (a) (3), on the purchase of a comparable dwelling: Provided, That if such amount exceeds $2,000, such displaced person shall equally match any such amount in excess of $2,000 in making the downpayment.

(b) Eligibility conditions. A displaced person is eligible for the payments specified in paragraph (a) of this section if such displaced person:

(1) Has actually and lawfully occupied the dwelling from which he is displaced for a period of not less than 90 days prior to the initiation of negotiation for acquisition of such dwelling; and

(2) Is not eligible to receive a replacement housing payment for homeowners under § 42.90; and

(3) Where such displaced person was the owner of the dwelling, such dwelling is (1) acquired for a project or (11) in connection with a project and in accordance with local code, is demolished, is declared unfit for human habitation, or requires vacation for any other reason, such as overcrowding and is deemed acquired under the regulations in this Part; and

(4) In cases in which a payment specified in paragraph (a) (2) of this section is sought such displaced person shall within one year from the date of displacement purchase and occupy a replacement dwelling. For purposes of this paragraph, the term "purchase" shall be defined in accordance with § 42.90(b)

(4).

(5) The term "initiation of negotiations" shall mean, for the purposes of this paragraph (b), the following:

(i) In the case of code enforcement, voluntary rehabilitation, improvement of private property, or demolition in connection with a project, the date such person vacates the dwelling.

(ii) In the case of a low-rent public housing project carried out by means of the turnkey method (new construction or rehabilitation), the date of the letter from the State agency notifying a developer of his tentative selection in connection with such project, except: (A) For turnkey new construction cases where the State agency obtains control of the site prior to tentative selection

of the developer, the date of the initial written offer to the owner by or on behalf of the State agency of the amount established as just compensation in accordance with § 42.135, and (B) for turnkey rehabilitation cases where the State agency enters into an agreement with a developer for unidentified properties, the date of the initial written offer for each property by the developer to the owner or the date of the contract between the developer and the State agency, whichever is later.

(iii) In the case of displacement arising pursuant to the housing assistance payments program, the date specified in § 42.55 (d) (3).

(c) Computation of payment—(1) Rentals. The amount of payment necessary to lease or rent a comparable replacement dwelling, as specified under paragraph (a)(1) of this section, shall be computed by subtracting 48 times the base monthly rental of the displaced person (as determined in accordance with paragraph (c)(1)(1) of this section), from 48 times the comparable monthly rental for a replacement dwelling (as determined in accordance with paragraph (c) (1) (ii) of this section): Provided, That in no case may such amount exceed the difference between 48 times the base monthly rental as determined in accordance with this paragraph and 48 times the monthly rental actually required for the comparable dwelling occupied by the displaced

person.

(1) Base monthly rental. The base monthly rental shall be the average monthly rental paid by the displaced person for the 3-month period prior to initiation of negotiations: Provided, That where the displaced person was the owner of the dwelling from which he was displaced, the base monthly rental shall be the average monthly rental during such three month period for similar dwellings in an area not generally less desirable than that of the dwelling from which the person was displaced. (Hereinafter referred to as the economic rent.) And provided further, That where necessary to satisfy the definition under § 42.20(b) (5) of comparable replacement housing as being within the financial means of the displaced person, the amount of such base monthly rental shall not exceed 25 percent of such person's monthly income

(11) Comparable monthly rental. The comparable monthly rental shall be the amount of rental determined by the State agency by the method specified in paragraph (a), except as provided in paragraph (b) or (c);

(A) Comparative method. On a caseby-case basis by determining the average month's rent for one or more dwellings which have been selected by the State agency and which are most representative of the acquired dwelling and meet the definition of "comparable replacement dwelling" set out in

$ 42.20 (b);

(B) Schedule method. By the use of a schedule as described in § 42.160, in cases in which a State agency determines that the use of a schedule is desirable.

(C) Alternative method. Where the State agency determines that neither the schedule nor comparative method is feasible in a given situation, by the use of such other method as may be approved by HUD.

(2) Downpayment. The downpayment for which a payment specified under paragraph (a) (2) of this section may be made, together with any matching share which may be required, shall not exceed (i) the amount ordinarily required for a downpayment for the purchase of a comparable dwelling where such purchase is financed by a conventional loan, and (ii) expenses incident to the purchase of a replacement dwelling computed in accordance with § 42.90 (c) (3) (including purchaser's points and loan origination charges, where customary): Provided, That if the amount actually required of the displaced person as a downpayment for the purchase of a comparable dwelling is more than the amount specified in paragraph (c) (2) (i) of this section, such amount shall be the amount which the State agency determines to be necessary for such downpayment. The full amount of a downpayment under this section shall be applied to the purchase price of the replacement dwelling and shall be shown on the closing statement.

(d) Limitation on payments and disbursement of payments-(1) Joint occupants of single-family dwellings. The total amount of payment under this section to individuals (regardless of whether they are family members or not) who were joint occupants of a single-family dwelling acquired for the project shall be subject to the limitation of § 42.80 (b).

(2) Rental replacement housing for displaced owner-occupant. A displaced person who is not eligible for a replacement housing payment under § 42.90 because he elects to rent rather than purchase a replacement dwelling, and who meets the eligibility conditions specified in paragraph (b) of this section, is eligible for the payment specified in paragraph (a)(1) of this section.

(3) Rental replacement housing payments for dependents. Notwithstanding the provisions of paragraph (c) of this section, the amount of payments necessary to lease or rent a comparable replacement dwelling, as specified under paragraph (a) (1) of this section, shall, in the case of displaced persons designated dependents in accordance with this subparagraph, be limited to the difference between 48 times the rental actually paid for the unit previously occupied by the displaced person and 48 times the monthly rental actually required for the comparable dwelling occupied by the displaced person. For purposes of this subparagraph, a "dependent" shall be any person who derives fifty-one percent or more of his income in the form of gifts from any private person or any academic scholarship or stipend. Full-time students and persons residing in hospitals, sanitariums and similar institutions shall be presumed to be dependents: Provided, That any displaced person presumed to be a dependent may rebut this presumption by demonstrating that fifty percent or more of his income is derived from sources other than gifts from another private person or academic scholarships or stipends.

(e) Disbursement. The Secretary shall have the authority to prescribe the manner for the disbursement of payments under this section and may from time to time establish procedures governing such disbursements.

Subpart C-Relocation Assistance Advisory Program and Assurance of Adequate Replacement Housing

less adequate replacement housing is available.

§ 42.105 Relocation assistance advisory

program.

State agencies shall develop and implement a relocation assistance advisory program which satisfies the requirements of 42.115 and of Title VI of the Civil Rights Act of 1964 and Title VIII of the Civil Rights Act of 1968. Such program shall be administered so as to provide advisory services which offer maximum assistance to minimize the hardship of displacement and to assure that (a) all persons displaced from their dwellings are relocated into housing meeting the criteria described in § 42.120, and (b) all persons displaced from their places of business or farm operations are assisted in reestablishing with a minimum of delay and loss of earnings.

§ 42.110 Eligibility for services.

Relocation assistance advisory services shall be available to:

(a) Any person who occupies property from which he will be displaced for a project or whose personal property will be so displaced: Provided, That whenever the State agency determines that the project will result in substantial economic injury to any person, the State agency may offer such person relocation advisory services; and

(b) Any person who moves from real property or moves his personal property from real property, because he is displaced from other real property on which he conducts a business or farm operation. § 42.115 Minimum requirements of re

location assistance advisory program. Each relocation assistance advisory program undertaken pursuant to § 42.105 shall include, at a minimum, such measures, facilities or services as may be necessary or appropriate in order to:

(a) Fully inform eligible persons under this Subpart at the earliest possible date as to the availability of relocation payments and assistance and the eligibility requirements therefor, as well as the procedures for obtaining such payments and assistance;

(b) Through direct personal interview, determine the extent of the need of each such eligible person for relocation assistance;

(c) Provide current and continuing information on the availability, prices,

and rentals of comparable sales and rental housing, and of comparable commercial properties and locations;

(d) Assure that, within a reasonable period of time prior to displacement, there will be available adequate replacement housing meeting the criteria described in § 42.120 equal in number to the number of, and available to, such eligible persons who will be displaced;

(e) Assist any such eligible person displaced from his business or farm operation in obtaining and becoming established in a suitable replacement location;

(f) Supply to such eligible persons information concerning Federal and State housing programs, disaster loan and other programs administered by the Small Business Administration, and other Federal or State programs, offering assistance to displaced persons;

(g) Provide any services required to insure that the relocation process does not result in different or separate treatment on account of race, color, religion, national origin, sex, or source of income. § 42.120 Requirement of adequate replacement housing prior to displace. ment; notices to displaced persons.

(a) Availability. No person shall be required to move from his dwelling on account of a project unless within a reasonable period of time prior to displacement there are available to such person replacement dwellings which are: (1) Decent, safe, and sanitary;

(2) Demonstrated to be open to all persons regardless of race, color, religion, or national origin in a manner consistent with Title VIII of the Civil Rights Act of 1968, and available without discrimination based on sex or source of income;

(3) In an area not subjected to unreasonable adverse environmental conditions from either natural or manmade sources, and in an area not generally less desirable nor less accessible with regard to public utilities and services, schools, churches, recreation, transportation, and other public and commercial facilities;

(4) Reasonably accessible to the displaced person's place of employment or potential employment;

(5) Adequate in size, facilities and amenities to accommodate the needs of the displaced person and his family: and