§ 24.402 - Replacement housing payment for 90-day tenants and certain others.

§ 24.402 Replacement housing payment for 90-day occupantstenants and certain others.

(a) Eligibility. A tenant or owner-occupant homeowner displaced from a dwelling is entitled to a payment not to exceed $5$9,250 570 for rental assistance, as computed in accordance with paragraph (b) of this section, or downpayment down payment assistance, as computed in accordance with paragraph (c) of this section, if such 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 DSS replacement dwelling within 1 year (unless the Agency agency extends this period for good cause) after :

(i) For a tenant,

the date he or she moves from the displacement dwelling

; or

(ii) For an owner-occupant, the later of:

(A) The date he or she 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

(B) The date he or she moves from the displacement dwelling

.

(b) Rental assistance payment —

(1) Amount of payment. An eligible displaced person under paragraph (a) of this section who rents a replacement dwelling is entitled to a payment not to exceed $5$9,250 570 for rental assistance. (See § 24.404.) Such payment shall be 42 times the amount obtained by subtracting the base monthly rental for the displacement dwelling 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 cost of utilities for the decent, safe, and sanitary DSS replacement dwelling actually occupied by the displaced person.

(2) Base monthly rental for displacement dwelling. The base monthly rental 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 Agency agency (for an owner-occupant, use the fair market rent for the displacement dwelling. For ; for a tenant who paid little or no rent for the displacement dwelling, use the fair market rent, unless its use would result in a hardship because of the person's income or other circumstances);

(ii) Thirty (30) percent of the displaced person's average monthly gross household income if the amount is classified as “low income” by the U.S. Department of Housing and Urban Development 's Annual Survey of Income Limits for the Public Housing and Section 8 Programs^[4] (HUD) in its most recently published Uniform Relocation Act Income Limits (“Survey”). The base monthly rental shall be established solely on the criteria in paragraph (b)(2)(i) of this section for persons with income exceeding the surveySurvey's “low income” limits, for persons refusing to provide appropriate evidence of income, and for persons who are dependents. A full-time student or resident of an institution may be assumed to be a dependent, unless the person demonstrates otherwise; or,

(iii) The total of the amounts designated for shelter and utilities if the displaced person is receiving a welfare assistance payment from a program that designates the amounts for shelter and utilities.

Note 1 to paragraph (b)(2): The Survey's income limits are updated annually and are available on FHWA's website at https://www.fhwa.dot.gov/real_estate/low_income_calculations/index.cfm.

(3) Manner of disbursement. A rental assistance payment may, at the Agencyagency's discretion, be disbursed in either a lump sum or in installments. However, except as limited by § 24.403(f), 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 replacement housing.

(c) Downpayment Down payment assistance payment —

(1) Amount of payment. An eligible displaced person under paragraph (a) of this section who purchases a replacement dwelling is entitled to a downpayment down payment assistance payment in the amount the person would receive under paragraph (b) of this section if the person rented a comparable replacement dwelling. At the Agencyagency's discretion, a downpayment down payment assistance payment that is less than $5$9,250 570 may be increased to any amount not to exceed $5$9,250570. However, the payment to a displaced homeowner person shall not exceed the amount the owner homeowner would receive under § 24.401(b) if he or she met the 18090-day occupancy requirement. If the Agency agency elects to provide the maximum payment of $5$9,250 570 as a downpaymentdown payment, the Agency agency shall apply this discretion in a uniform and consistent manner, so that eligible displaced persons in like circumstances are treated equally. A displaced person eligible to receive a payment as a 18090-day owner-occupant under § 24.401(a) is not eligible for this payment. (See appendix A to this part, § section 24.402(c) for payments to less than 90-day occupants and for a discussion of those who fail to meet the 90-day occupancy requirements.)

(2) Application of payment. The full amount of the replacement housing payment for downpayment down payment assistance must be applied to the purchase price of the replacement dwelling and related incidental expenses.

Footnotes - 24.402

^[4] The U.S. Department of Housing and Urban Development's Public Housing and Section 8 Program Income Limits are updated annually and are available on FHWA's Web site at http://www.fhwa.dot.gov/realestate/ua/ualic.htm.