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Presentations of Uniform Act Final Rule Implementation

Last Resort

Notes:

FHWA uses "protective rents" to protect re-occupying; HUD uses "move-in notice" to avoid this type of tenancy. Effective use of these strategies will reduce if not eliminate situations where less than 90-day occupants are encountered.

Q: How does the change in § 24.2(a)(6)(vii)(C) [part of the definition of comparable replacement dwelling] change the treatment of "less than 90-day occupants" or "subsequent occupants"?

A: Displaced persons failing to meet the length of occupancy requirements continue to be eligible for relocation benefits under last resort housing. What has changed is how the benefit is calculated. Benefits for low-income tenants still will be calculated using the 30% of income rule contained in § 24.402(b)(2). For others, the calculation will be rent-to-rent. The reason for the change, as noted in the Preamble to the final rule, is to ensure consistent treatment of displacees. Across an agency's programs, the net effect of the change in the 30% rule is expected to be a reduction in financial liability. However, with respect to some individual displacees who do not meet the length of occupancy requirements, the calculation of benefits may result in a higher payment under the final rule than under the former rule. agencies may wish to consider using loss-of-rent agreements to limit and manage financial liability when they believe that there is substantial risk that a subsequent occupant situation will occur.

Updated: 09/05/2014
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