96-25401. Displacement, Relocation Assistance, and Real Property Acquisition for HUD and HUD-Assisted Programs; Streamlining Rule  

  • [Federal Register Volume 61, Number 193 (Thursday, October 3, 1996)]
    [Rules and Regulations]
    [Pages 51756-51760]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-25401]
    
    
          
    
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    Part III
    
    
    
    
    
    Department of Housing and Urban Development
    
    
    
    
    
    _______________________________________________________________________
    
    
    
    Office of the Secretary
    
    
    
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    24 CFR Part 42, et al.
    
    
    
    Displacement, Relocation Assistance, and Real Property Acquisition for 
    HUD and HUD-Assisted Programs: Streamlining; Final Rule
    
    Federal Register / Vol. 61, No. 193 / Thursday, October 3, 1996 / 
    Rules and Regulations
    
    [[Page 51756]]
    
    
    
    DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
    
    Office of the Secretary
    
    24 CFR Parts 42, 91, 92, 570
    
    [Docket No. FR-3982-F-01]
    RIN 2501-AC11
    
    
    Displacement, Relocation Assistance, and Real Property 
    Acquisition for HUD and HUD-Assisted Programs; Streamlining Rule
    
    AGENCY: Office of the Secretary, HUD.
    
    ACTION: Final rule.
    
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    SUMMARY: This final rule amends HUD's regulations implementing section 
    104(d) of the Housing and Community Development Act of 1974, including 
    residential antidisplacement and relocation assistance plans, one-for-
    one replacement requirements, and relocation benefits. In an effort to 
    comply with the President's regulatory reform initiatives, this rule 
    will streamline those regulations by consolidating them into one part. 
    This final rule will make the regulations clearer and more concise.
    
    EFFECTIVE DATE: November 4, 1996.
    
    FOR FURTHER INFORMATION CONTACT: Janice Petty, Relocation Specialist, 
    Relocation and Real Estate Division, Room 7168, Department of Housing 
    and Urban Development, 451 Seventh Street, SW, Washington, DC 20410, 
    telephone number (202) 708-1367 (this is not a toll-free number). For 
    hearing- and speech-impaired persons, this number may be accessed via 
    TTY by calling the Federal Information Relay Service at 1-800-877-8339.
    
    SUPPLEMENTARY INFORMATION: On March 4, 1995, President Clinton issued a 
    memorandum to all Federal departments and agencies regarding regulatory 
    reinvention. In response to this memorandum, HUD conducted a page-by-
    page review of its regulations to determine which can be eliminated, 
    consolidated, or otherwise improved.
        This revised part 42 implements section 104(d) of the Housing and 
    Community Development Act of 1974 (HCD Act of 1974) (42 U.S.C. 
    5304(d)(4)), which sets forth requirements governing conversion, 
    demolition, and one-for-one replacement of units removed from the 
    housing stock. Section 104(d) requires residential antidisplacement and 
    relocation assistance plans (RARAPs) for State and local governments 
    receiving funds under the Community Development Block Grant (CDBG) and 
    Urban Development Action Grant (UDAG) programs. This requirement was 
    extended to the HOME Investment Partnerships (HOME) program by section 
    105(b)(14) of the Cranston-Gonzalez National Affordable Housing Act 
    (NAHA) (42 U.S.C. 12705(b)(14)). In streamlining these requirements, 
    this final rule also implements the restrictions in 42 U.S.C. 3537c on 
    lump-sum payments for relocation assistance.
        On July 1, 1994 (59 FR 34300), HUD published a proposed rule that 
    would have created a new part 43 to replace the current requirements in 
    Secs. 92.353(e) and 570.606(c) of title 24. Consistent with its 
    reinvention objectives, HUD is adding the section 104(d) requirements 
    to part 42, rather than creating a detailed new part 43. In doing so, 
    it is retaining some of the current language of part 570. As a result, 
    part 42 will make clear the distinction between the generally 
    applicable requirements of the Uniform Relocation Assistance and Real 
    Property Acquisition Policies Act of 1970 (42 U.S.C. 4601 et seq.) 
    (Uniform Relocation Act or URA) and the more targeted requirements of 
    section 104(d) of the HCD Act of 1974 (Section 104(d)).
    
    Proposed Rule
    
        Some existing section 104(d) requirements established for the CDBG 
    programs do not work well in the HOME Program. The July 1, 1994, rule 
    proposed section 104(d) policies that would be better tailored to both 
    HOME and CDBG Program policy needs, providing consistent and workable 
    policies for both programs in the same regulation. Such consistency is 
    essential because CDBG and HOME funds may be used in the same project. 
    Portions of the proposed rule necessary to achieve that objective have 
    been incorporated in this final rule. Other parts of the proposed rule, 
    however, are unnecessarily lengthy, complex, or prescriptive. Since 
    adoption of these portions would be inconsistent with HUD's 
    streamlining objectives, HUD has not included them in the final rule.
        Two organizations and three other persons submitted comments in 
    response to the proposed rule. Commenters have asked why it is 
    necessary to have a RARAP when there would be no displacement resulting 
    from the project. Section 104(d) of the HCD Act of 1974 states that a 
    grant for a CDBG program ``may be made only if the grantee certifies 
    that it is following'' a RARAP. While HUD cannot bypass this statutory 
    requirement, an acceptable ``plan'' for such circumstances need not be 
    elaborate. Since the RARAP does not need to be revised or readopted 
    annually, but only when the recipient's program necessitates, this 
    requirement should not impose any major burden on program participants.
    
    Overnight Homeless Shelters and Other Public Facilities
    
        ``Conversion'' (defined in the final rule) is one of the two 
    actions that triggers the requirements of section 104(d). In the past, 
    HUD had stated that a change of lower-income housing into an overnight 
    emergency shelter constituted ``conversion,'' even if the market rent 
    of the shelter housing, upon completion of the project, did not exceed 
    the Section 8 Fair Market Rent (FMR). Questions were raised about the 
    policy applicable to changing lower-income housing into nursing homes, 
    battered spouse shelters, halfway houses, group homes, and transitional 
    housing. The July 1, 1994, proposed rule stated, ``The Department has 
    concluded that such facilities and emergency overnight shelters may 
    contribute to the supply of available lower income housing, and 
    changing conventional housing into such a use does not necessarily 
    trigger a replacement requirement. * * * In other words, the Department 
    would consider the physical structure, rather than whether the tenants 
    are permitted to remain for only a temporary period of time and must 
    vacate to permit use by other tenants.''
        In response to public comments, and upon further consideration of 
    the issue, HUD has revised its position. It is HUD's determination that 
    housing that is changed to an emergency shelter, whether it serves 
    homeless persons, battered spouses, or others, is indeed a 
    ``conversion'' of lower-income housing. Changing lower-income housing 
    into nursing homes, halfway houses, group homes and transitional 
    housing, or other forms of permanent or transitional housing, does not 
    constitute a ``conversion'' and, thus, does not trigger a replacement 
    requirement. Accordingly, the final rule revises the definition of 
    conversion at Sec. 42.305(b)(2) to include alteration of a housing unit 
    to be used for an emergency shelter.
    
    Removal of Dilapidated Housing
    
        CDBG recipients had been required to replace vacant, dilapidated 
    housing that is not suitable for rehabilitation if the unit was 
    occupied at any time within the period beginning 1 year before the 
    execution of the contract covering the demolition. The proposed rule 
    reduced the 12-month period to 3 months. Two commenters agreed with the 
    proposal. One opposed it, stating that the change was an evasion of the 
    one-for-one housing replacement requirement.
    
    [[Page 51757]]
    
        HUD disagrees with the latter comment and remains concerned that 
    the old 1-year rule has had the effect of unduly delaying the 
    demolition of run-down vacant buildings that are a danger to public 
    health and safety. Moreover, the removal of vacant, dilapidated housing 
    that is clearly not occupiable does not effectively diminish the 
    available supply of lower-income housing. Therefore, the final rule 
    definition of ``vacant occupiable dwelling unit'' at Sec. 42.305 adopts 
    the 3-month policy set out in the proposed rule.
    
    Other Matters
    
    Executive Order 12866
    
        The Office of Management and Budget reviewed this final rule under 
    Executive Order 12866, Regulatory Planning and Review. Any changes made 
    to the rule as a result of that review are clearly identified in the 
    docket file, which is available for public inspection at the Office of 
    the Rules Docket Clerk, Office of General Counsel, Room 10276, 
    Department of Housing and Urban Development, 451 Seventh Street, SW., 
    Washington, DC 20410-0500.
    
    Regulatory Flexibility Act
    
        The Secretary, in accordance with the Regulatory Flexibility Act (5 
    U.S.C. 605(b)), has reviewed and approved this final rule, and in so 
    doing certifies that this rule will not have a significant economic 
    impact on a substantial number of small entities. This rule merely 
    streamlines and consolidates existing requirements, thereby providing 
    consistency in affected programs. The rule will have no adverse or 
    disproportionate economic impact on small businesses.
    
    Environmental Impact
    
        A Finding of No Significant Impact with respect to the environment 
    was made in accordance with HUD regulations in 24 CFR part 50 that 
    implement section 102(2)(C) of the National Environmental Policy Act of 
    1969 (42 U.S.C. 4332). This Finding is available for public inspection 
    between 7:30 a.m. and 5:30 p.m. weekdays in the Office of the Rules 
    Docket Clerk, Office of General Counsel, Room 10276, Department of 
    Housing and Urban Development, 451 Seventh Street, SW., Washington, DC.
    
    Executive Order 12612, Federalism
    
        The General Counsel, as the Designated Official under section 6(a) 
    of Executive Order 12612, Federalism, has determined that this rule 
    will not have substantial direct effects on States or their political 
    subdivisions, or the relationship between the Federal government and 
    the States, or on the distribution of power and responsibilities among 
    the various levels of government. No programmatic or policy changes 
    will result from this rule that would affect the relationship between 
    the Federal Government and State and local governments.
    
    Executive Order 12606, The Family
    
        The General Counsel, as the Designated Official under Executive 
    Order 12606, The Family, has determined that this rule will not have 
    the potential for significant impact on family formation, maintenance, 
    or general well-being, and thus is not subject to review under the 
    Order. No significant change in existing HUD policies or programs will 
    result from promulgation of this rule.
    
    List of Subjects
    
    24 CFR Part 42
    
        Administrative practice and procedure, Grant programs, Loan 
    programs, Manufactured homes, Real property acquisition, Relocation 
    assistance, Reporting and recordkeeping requirements.
    
    24 CFR Part 91
    
        Aged, Grant programs--housing and community development, Homeless, 
    Individuals with disabilities, Low and moderate income housing, 
    Reporting and recordkeeping requirements.
    
    24 CFR Part 92
    
        Administrative practice and procedure, Grant programs--housing and 
    community development, Grant programs--Indians, Indians, Low and 
    moderate income housing, Manufactured homes, Rent subsidies, Reporting 
    and recordkeeping requirements.
    
    24 CFR Part 570
    
        Administrative practice and procedure, American Samoa, Community 
    development block grants, Grant programs--education, Grant programs--
    housing and community development, Guam, Indians, Lead poisoning, Loan 
    programs--housing and community development, Low and moderate income 
    housing, New communities, Northern Mariana Islands, Pacific Islands 
    Trust Territory, Pockets of poverty, Puerto Rico, Reporting and 
    recordkeeping requirements, Small cities, Student aid, Virgin Islands.
        Accordingly, part 42 of title 24 of the Code of Federal Regulations 
    is revised in its entirety, and parts 91, 92, and 570 are amended as 
    follows:
    
    PART 42--DISPLACEMENT, RELOCATION ASSISTANCE, AND REAL PROPERTY 
    ACQUISITION FOR HUD AND HUD-ASSISTED PROGRAMS
    
        1. Part 42 is revised to read as follows:
    
    Subpart A--General
    
    Sec.
    42.1  Applicable rules.
    
    Subpart B--[Reserved]
    
    Subpart C--Requirements Under Section 104(d) of Housing and Community 
    Development Act of 1974
    
    42.301  Applicability.
    42.305  Definitions.
    42.325  Residential antidisplacement and relocation assistance plan.
    42.350  Relocation assistance for displaced persons.
    42.375  One-for-one replacement of lower-income dwelling units.
    42.390  Appeals.
    
        Authority: 42 U.S.C. 3535(d), 4601, 5304, and 12705(b).
    
    Subpart A--General
    
    
    Sec. 42.1  Applicable rules.
    
        (a) URA. HUD-assisted programs and projects are subject to the 
    Uniform Relocation Assistance and Real Property Acquisition Policies 
    Act of 1970, 42 U.S.C. 4601 (URA) (42 U.S.C. 4601), and implementing 
    regulations issued by the Department of Transportation at 49 CFR part 
    24.
        (b) Section 104(d). In addition to the URA, the Community 
    Development Block Grant (CDBG), Urban Development Action Grant (UDAG), 
    and HOME Investment Partnerships (HOME) programs are also subject to 
    section 104(d) of the Housing and Community Development Act of 1974 (42 
    U.S.C. 5304(d)). The provisions applicable to these programs are set 
    out in subpart C of this part.
        (c) Additional requirements. Applicable program regulations may 
    contain additional relocation provisions.
    
    Subpart B--[Reserved]
    
    Subpart C--Requirements Under Section 104(d) of Housing and 
    Community Development Act of 1974
    
    
    Sec. 42.301  Applicability.
    
        This subpart applies only to CDBG grants under 24 CFR part 570, 
    subparts D, F, and I (Entitlement grants, HUD-Administered Small 
    Cities, and State programs); grants under 24 CFR part 570, subpart G 
    (Urban Development Action Grants), and Loan Guarantees under 24 CFR 
    part 570, subpart M; and assistance to State and local governments 
    under 24 CFR part 92 (HOME program).
    
    [[Page 51758]]
    
    Sec. 42.305  Definitions.
    
        The terms Fair Market Rent (FMR), HUD, Section 8, and Uniform 
    Relocation Act (URA) are defined in part 5 of this title. Otherwise, as 
    used in this subpart:
        Comparable replacement dwelling unit means a dwelling unit that:
        (1) Meets the criteria of 49 CFR 24.2(d)(1) through (6); and
        (2) Is available at a monthly cost for rent plus estimated average 
    monthly utility costs that does not exceed the ``Total Tenant Payment'' 
    determined under Sec. 813.107 of this title, after taking into account 
    any rental assistance the household would receive.
        Conversion. (1) This term means altering a housing unit so that it 
    is:
        (i) Used for nonhousing purposes;
        (ii) Used for housing purposes, but no longer meets the definition 
    of lower-income dwelling unit; or
        (iii) Used as an emergency shelter.
        (2) A housing unit that continues to be used for housing after 
    completion of the project is not considered a ``conversion'' if, upon 
    completion of the project, the unit is owned and occupied by a person 
    who owned and occupied the unit before the project.
        Displaced person means a lower-income person who, in connection 
    with an activity assisted under any program subject to this subpart, 
    permanently moves from real property or permanently moves personal 
    property from real property as a direct result of the demolition or 
    conversion of a lower-income dwelling. For purposes of this definition, 
    a permanent move includes a move made permanently and:
        (1) After notice by the grantee to move from the property following 
    initial submission to HUD of the consolidated plan required of 
    entitlement grantees pursuant to Sec. 570.302; of an application for 
    assistance pursuant to Secs. 570.426, 570.430, or 570.465 that is 
    thereafter approved; or an application for loan assistance under 
    Sec. 570.701 that is thereafter approved;
        (2) After notice by the property owner to move from the property, 
    following the submission of a request for financial assistance by the 
    property owner (or other person in control of the site) that is 
    thereafter approved; or
        (3) Before the dates described in this definition, if HUD or the 
    grantee determine that the displacement was a direct result of 
    conversion or demolition in connection with an activity subject to this 
    subpart for which financial assistance has been requested and is 
    thereafter approved.
        HCD Act of 1974 means the Housing and Community Development Act of 
    1974 (42 U.S.C. 5301 et seq.).
        Lower-income dwelling unit means a dwelling unit with a market rent 
    (including utility costs) that does not exceed the applicable Fair 
    Market Rent (FMR) for existing housing established under 24 CFR part 
    888.
        Lower-income person means, as appropriate, a ``low and moderate 
    income person'' as that term is defined in Sec. 570.3 of this title, or 
    a ``low-income family'' as that term is defined in Sec. 92.2 of this 
    title.
        Recipient means CDBG grantee, UDAG grantee, or the HOME 
    participating jurisdiction.
        Standard condition and substandard condition suitable for 
    rehabilitation have the meaning the recipient has established for those 
    terms in its HUD-approved consolidated plan pursuant to 24 CFR part 91. 
    In the case of a unit of general local government funded by a State, 
    either the State's definitions for those terms or the definitions 
    adopted by the unit of general local government for this purpose shall 
    apply.
        Vacant occupiable dwelling unit means a vacant dwelling unit that 
    is in a standard condition; a vacant dwelling unit that is in a 
    substandard condition, but is suitable for rehabilitation; or a 
    dwelling unit in any condition that has been occupied (except by a 
    squatter) at any time within the period beginning 3 months before the 
    date of execution of the agreement by the recipient covering the 
    rehabilitation or demolition.
    
    
    Sec. 42.325  Residential antidisplacement and relocation assistance 
    plan.
    
        (a) Certification. (1) As part of its consolidated plan under 24 
    CFR part 91, the recipient must certify that it has in effect and is 
    following a residential antidisplacement and relocation assistance 
    plan.
        (2) A unit of general local government receiving funds from the 
    State must certify to the State that it has in effect and is following 
    a residential antidisplacement and relocation assistance plan, and that 
    it will minimize displacement of persons as a result of assisted 
    activities. The State may require the unit of general local government 
    to follow the State's plan or permit it to develop its own plan. A unit 
    of general local government that develops its own plan must adopt the 
    plan and make it public.
        (b) Plan contents. (1) The plan shall indicate the steps that will 
    be taken consistent with other goals and objectives of the program, as 
    provided in parts 92 and 570 of this title, to minimize the 
    displacement of families and individuals from their homes and 
    neighborhoods as a result of any assisted activities.
        (2) The plan shall provide for relocation assistance in accordance 
    with Sec. 42.350.
        (3) The plan shall provide one-for-one replacement units to the 
    extent required by Sec. 42.375.
    
    
    Sec. 42.350  Relocation assistance for displaced persons.
    
        A displaced person may choose to receive either assistance under 
    the URA and implementing regulations at 49 CFR part 24 or assistance 
    under section 104(d) of the HCD Act of 1974, including:
        (a) Advisory services. Advisory services at the levels described in 
    49 CFR part 24. A displaced person must be advised of his or her rights 
    under the Fair Housing Act (42 U.S.C. 3601-19). If the comparable 
    replacement dwelling to be provided to a minority person is located in 
    an area of minority concentration, as defined in the recipient's 
    consolidated plan, if applicable, the minority person must also be 
    given, if possible, referrals to comparable and suitable decent, safe, 
    and sanitary replacement dwellings not located in such areas.
        (b) Moving expenses. Payment for moving expenses at the levels 
    described in 49 CFR part 24.
        (c) Security deposits and credit checks. The reasonable and 
    necessary cost of any security deposit required to rent the replacement 
    dwelling unit, and for credit checks required to rent or purchase the 
    replacement dwelling unit.
        (d) Interim living costs. The recipient shall reimburse a person 
    for actual reasonable out-of-pocket costs incurred in connection with a 
    displacement, including moving expenses and increased housing costs, 
    if:
        (1) The person must relocate temporarily because continued 
    occupancy of the dwelling unit constitutes a substantial danger to the 
    health or safety of the person or the public; or
        (2) The person is displaced from a ``lower-income dwelling unit,'' 
    none of the comparable replacement dwelling units to which the person 
    has been referred qualifies as a lower-income dwelling unit, and a 
    suitable lower-income dwelling unit is scheduled to become available in 
    accordance with Sec. 42.375.
        (e) Replacement housing assistance. Persons are eligible to receive 
    one of the following two forms of replacement housing assistance:
        (1) Each person must be offered rental assistance equal to 60 times 
    the amount necessary to reduce the monthly rent and estimated average 
    monthly cost of utilities for a replacement dwelling
    
    [[Page 51759]]
    
    (comparable replacement dwelling or decent, safe, and sanitary 
    replacement dwelling to which the person relocates, whichever costs 
    less) to the ``Total Tenant Payment,'' as determined under part 813 of 
    this title. All or a portion of this assistance may be offered through 
    a certificate or voucher for rental assistance (if available) provided 
    under Section 8. If a Section 8 certificate or voucher is provided to a 
    person, the recipient must provide referrals to comparable replacement 
    dwelling units where the owner is willing to participate in the Section 
    8 Tenant-Based Assistance Existing Housing Program (see part 982 of 
    this title). When provided, cash assistance will generally be in 
    installments, in accordance with 42 U.S.C. 3537c; or
        (2) If the person purchases an interest in a housing cooperative or 
    mutual housing association and occupies a decent, safe, and sanitary 
    dwelling in the cooperative or association, the person may elect to 
    receive a payment equal to the capitalized value of 60 times the amount 
    that is obtained by subtracting the ``Total Tenant Payment,'' as 
    determined under part 813 of this title, from the monthly rent and 
    estimated average monthly cost of utilities at a comparable replacement 
    dwelling unit. To compute the capitalized value, the installments shall 
    be discounted at the rate of interest paid on passbook savings deposits 
    by a federally insured financial institution conducting business within 
    the recipient's jurisdiction. To the extent necessary to minimize 
    hardship to the household, the recipient shall, subject to appropriate 
    safeguards, issue a payment in advance of the purchase of the interest 
    in the housing cooperative or mutual housing association.
    
    
    Sec. 42.375  One-for-one replacement of lower-income dwelling units.
    
        (a) Units that must be replaced. All occupied and vacant occupiable 
    lower-income dwelling units that are demolished or converted to a use 
    other than as lower-income dwelling units in connection with an 
    assisted activity must be replaced with comparable lower-income 
    dwelling units.
        (b) Acceptable replacement units. Replacement lower-income dwelling 
    units may be provided by any government agency or private developer and 
    must meet the following requirements:
        (1) The units must be located within the recipient's jurisdiction. 
    To the extent feasible and consistent with other statutory priorities, 
    the units shall be located within the same neighborhood as the units 
    replaced.
        (2) The units must be sufficient in number and size to house no 
    fewer than the number of occupants who could have been housed in the 
    units that are demolished or converted. The number of occupants who 
    could have been housed in units shall be determined in accordance with 
    applicable local housing occupancy codes. The recipient may not replace 
    those units with smaller units (e.g., a 2-bedroom unit with two 1-
    bedroom units), unless the recipient has provided the information 
    required under paragraph (c)(7) of this section.
        (3) The units must be provided in standard condition. Replacement 
    lower-income dwelling units may include units that have been raised to 
    standard from substandard condition if:
        (i) No person was displaced from the unit (see definition of 
    ``displaced person'' in Sec. 42.305); and
        (ii) The unit was vacant for at least 3 months before execution of 
    the agreement between the recipient and the property owner.
        (4) The units must initially be made available for occupancy at any 
    time during the period beginning 1 year before the recipient makes 
    public the information required under paragraph (d) of this section and 
    ending 3 years after the commencement of the demolition or 
    rehabilitation related to the conversion.
        (5) The units must be designed to remain lower-income dwelling 
    units for at least 10 years from the date of initial occupancy. 
    Replacement lower-income dwelling units may include, but are not 
    limited to, public housing or existing housing receiving Section 8 
    project-based assistance.
        (c) Preliminary information to be made public. Before the recipient 
    enters into a contract committing it to provide funds under programs 
    covered by this subpart for any activity that will directly result in 
    the demolition of lower-income dwelling units or the conversion of 
    lower-income dwelling units to another use, the recipient must make 
    public, and submit in writing to the HUD field office (or State, in the 
    case of a unit of general local government funded by the State), the 
    following information:
        (1) A description of the proposed assisted activity;
        (2) The location on a map and number of dwelling units by size 
    (number of bedrooms) that will be demolished or converted to a use 
    other than for lower-income dwelling units as a direct result of the 
    assisted activity;
        (3) A time schedule for the commencement and completion of the 
    demolition or conversion;
        (4) The location on a map and the number of dwelling units by size 
    (number of bedrooms) that will be provided as replacement dwelling 
    units. If such data are not available at the time of the general 
    submission, the submission shall identify the general location on an 
    area map and the approximate number of dwelling units by size, and 
    information identifying the specific location and number of dwelling 
    units by size shall be submitted and disclosed to the public as soon as 
    it is available;
        (5) The source of funding and a time schedule for the provision of 
    replacement dwelling units;
        (6) The basis for concluding that each replacement dwelling unit 
    will remain a lower-income dwelling unit for at least 10 years from the 
    date of initial occupancy; and
        (7) Information demonstrating that any proposed replacement of 
    dwelling units with smaller dwelling units (e.g., a 2-bedroom unit with 
    two 1-bedroom units) is consistent with the needs assessment contained 
    in its HUD-approved consolidated plan. A unit of general local 
    government funded by the State that is not required to submit a 
    consolidated plan to HUD must make public information demonstrating 
    that the proposed replacement is consistent with the housing needs of 
    lower-income households in the jurisdiction.
        (d) Replacement not required. (1) In accordance with 42 U.S.C. 
    5304(d)(3), the one-for-one replacement requirement of this section 
    does not apply to the extent the HUD field office determines, based 
    upon objective data, that there is an adequate supply of vacant lower-
    income dwelling units in standard condition available on a 
    nondiscriminatory basis within the area.
        (2) The recipient must submit directly to the HUD field office the 
    request for determination that the one-for-one replacement requirement 
    does not apply. Simultaneously with the submission of the request, the 
    recipient must make the submission public and inform interested persons 
    that they have 30 days from the date of submission to provide to HUD 
    additional information supporting or opposing the request.
        (3) A unit of general local government funded by the State must 
    submit the request for determination under this paragraph to the State. 
    Simultaneously with the submission of the request, the unit of general 
    local government must make the submission public and inform interested 
    persons that they have 30 days from the date of submission to provide 
    to the State additional information supporting or opposing the request. 
    If the State, after considering
    
    [[Page 51760]]
    
    the submission and the additional data, agrees with the request, the 
    State must provide its recommendation with supporting information to 
    the field office.
    
    
    Sec. 42.390  Appeals.
    
        A person who disagrees with the recipient's determination 
    concerning whether the person qualifies as a ``displaced person,'' or 
    with the amount of relocation assistance for which the person is 
    eligible, may file a written appeal of that determination with the 
    recipient. A person who is dissatisfied with the recipient's 
    determination on his or her appeal may submit a written request for 
    review of that determination to the HUD field office (or to the State 
    in the case of a unit of general local government funded by the State). 
    If the full relief is not granted, the recipient shall advise the 
    person of his or her right to seek judicial review.
    
    PART 91--CONSOLIDATED SUBMISSIONS FOR COMMUNITY PLANNING AND 
    DEVELOPMENT PROGRAMS
    
        2. The authority citation for part 91 continues to read as follows:
    
        Authority: 42 U.S.C. 3535(d), 3601-3619, 5301-5315, 11331-11388, 
    12701-12711, 12741-12756, and 12901-12912.
    
        3. Section 91.205 is amended to add a new sentence at the end of 
    paragraph (b)(1):
    
    
    Sec. 91.205  Housing and homeless needs assessment.
    
    * * * * *
        (b) * * *
        (1) * * * (The jurisdiction must define in its consolidated plan 
    the terms ``standard condition'' and ``substandard condition but 
    suitable for rehabilitation.'')
    * * * * *
        4. Section 91.305 is amended to add a new sentence at the end of 
    paragraph (b)(1):
    
    
    Sec. 91.305  Housing and homeless needs assessment.
    
    * * * * *
        (b) * * *
        (1) * * * (The State must define in its consolidated plan the terms 
    ``standard condition'' and ``substandard condition but suitable for 
    rehabilitation.'')
    * * * * *
    
    PART 92--HOME INVESTMENT PARTNERSHIPS PROGRAM
    
        5. The authority citation for part 92 continues to read as follows:
    
        Authority: 42 U.S.C. 3535(d), 12701-12839.
    
        6. Section 92.353(e) is revised to read as follows:
    
    
    Sec. 92.353  Displacement, relocation, and acquisition.
    
    * * * * *
        (e) Residential antidisplacement and relocation assistance plan. 
    The participating jurisdiction shall comply with the requirements of 24 
    CFR part 42, subpart B.
    * * * * *
    
    PART 570--COMMUNITY DEVELOPMENT BLOCK GRANTS
    
        7. The authority citation for part 570 continues to read as 
    follows:
    
        Authority: 42 U.S.C. 3535(d) and 5300-5320.
    
        8. Section 570.606(c) is revised to read as follows:
    
    
    Sec. 570.606  Displacement, relocation, acquisition, and replacement of 
    housing.
    
    * * * * *
        (c) Residential antidisplacement and relocation assistance plan. 
    The grantee shall comply with the requirements of 24 CFR part 42, 
    subpart B.
    
        Dated: September 23, 1996.
    Henry G. Cisneros,
    Secretary.
    [FR Doc. 96-25401 Filed 10-2-96; 8:45 am]
    BILLING CODE 4210-32-P
    
    
    

Document Information

Effective Date:
11/4/1996
Published:
10/03/1996
Department:
Housing and Urban Development Department
Entry Type:
Rule
Action:
Final rule.
Document Number:
96-25401
Dates:
November 4, 1996.
Pages:
51756-51760 (5 pages)
Docket Numbers:
Docket No. FR-3982-F-01
RINs:
2501-AC11: Streamlining of Relocation & Displacement Requirements (FR-3982)
RIN Links:
https://www.federalregister.gov/regulations/2501-AC11/streamlining-of-relocation-and-displacement-requirements-fr-3982-
PDF File:
96-25401.pdf
CFR: (17)
24 CFR 42.1
24 CFR 42.301
24 CFR 42.305
24 CFR 42.325
24 CFR 42.350
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