October 20, 1992, Transmittal 7

49 CFR 24D



  1. RESIDENTIAL MOVES/MOVING EXPENSE FINDING (49 CFR 24.301 AND 24.302). The residential moving expense schedule has been revised. Displaced persons may only elect to use the moving expense schedule or to be reimbursed for an actual cost move supported by receipted bills and other evidence of expenses incurred in accordance with 49 CFR 24.301 and 24.302. In using the moving expense schedule the actual room count may be supplemented by additional rooms representing the reasonable count of room equivalents of personal property found in attics, basements, hallways, and elsewhere.

  2. IMPACT FEES INELIGIBLE OTHER THAN AS REESTABLISHMENT EXPENSE (49 CFR 24.304 (a)(11)). Impact fees are ineligible other than as a reestablishment expense. Impact fees undoubtedly have an effect on fair market value considerations for both "developed" and "undeveloped" business properties. To the extent this effect can be ascertained by the displacing agency, it should be considered in any reestablishment expense claim predicated, in whole or in part, on any impact fee.

  3. AVERAGE ANNUAL NET EARNINGS (49 CFR 24.306(e)). The FHWA has taken the position that the intent of Congress, with respect to net income as evidenced by the language in the House Committee Report that accompanied the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, is to include "any compensation paid to the owner, his spouse, or his dependents". The legislation and the committee report are both silent on including compensation to the officers of a corporation as part of the net income. It is FHWA policy that when a corporation is displaced, only compensation paid to the principal owner, spouse or children of the principal owner of the corporation should be included as a part of the net income of the business.

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