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49 CFR 24 - Non-Regulatory Supplements

Subpart C - General Relocation Requirments

Federal-Aid Policy Guide
February 16, 2006, Transmittal 35
NS 49 CFR 24C

Non-Regulatory Supplement

  1. DISPLACED PERSONS MUST BE FURNISHED A GENERAL WRITTEN DESCRIPTION OF THE DISPLACING AGENCY'S RELOCATION PROGRAM (49 CFR 24.203(a)). Although a relocation brochure is not required, each displaced person must be furnished a general written description of the agency's relocation program. A brochure is the most efficient and effective way to provide general relocation information. It is recommended that each displacing agency have a brochure and that a copy be furnished to each displaced person at the initial contact.

  2. NINETY-DAY NOTICE AND COMPARABLE AVAILABILITY (49 CFR 24.203 (c)) A displacing agency is not required to start another 90-day period if the original comparable replacement dwelling is no longer available. The 90-day period should continue to run without interruption. However, if the original comparable replacement dwelling is no longer available, the displacing agency must assure itself that equally comparable replacement dwellings are available in the same price range. If the displacing agency finds it necessary to take action to evict the occupants, the comparable replacement dwelling or one equally comparable should be available for occupancy at the time eviction proceedings are initiated.

  3. NINETY-DAY NOTICE TO ABSENTEE OWNERS (49 CFR 24.203(c)). Absentee owners of personal property are considered to be occupants of real property to be acquired and they are entitled to a 90-day notice. Any person who has possessory rights (exercises physical control over the land including the right to store personal property on the land) is a lawful occupant and is entitled to the full 90-day notice. The only exceptions are provided in 49 CFR 24.203(c)(4). The fact that the occupancy is solely for storage of personal property does not limit standing as a lawful occupant.

  4. RECOMPUTATION OF REPLACEMENT HOUSING PAYMENT OFFER BASED ON NEW COMPARABLE AFTER THE EXPIRATION OF THE 90-DAY NOTICE (49 CFR 24.204(a)). The replacement housing payment offer can be recomputed whenever the comparable dwelling used to compute that replacement housing payment offer is no longer available. The agency should not recompute a replacement housing payment offer solely because the 90-day notice has expired if the displaced person has, in good faith, made a commitment or has expended significant time and effort to find replacement housing based on the original offer.

    However, if the displaced person has not made a good faith effort to find replacement housing, a recomputation of the replacement housing payment offer (if warranted by current market conditions) would be appropriate after a reasonable period of time. If the recomputation results in a lower payment offer, the agency must document its support and justification for the revised offer to avoid appearing coercive.

  5. RELOCATION PAYMENTS ARE NOT SUBJECT TO IRS REPORTING REQUIREMENTS (49 CFR 24.209). Relocation payments are not subject to the reporting requirements of 26 U.S.C. 6045(e) and should not be included when preparing real estate transaction information for completing IRS Form 1099-S, Proceeds From Real Estate Transactions.

Updated: 04/02/2013
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