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Office of Planning, Environment, & Realty (HEP)

Presentations of Uniform Act Final Rule Implementation

Let's See How it Works

Please refer to example entitled:

180-day Owners Who Rent



SUBPART E Reference § 24.401(f)

180-day Owners Who Rent

Example 1

The Dells are 180-day owner occupants when they are displaced in a federally-assisted project. The agency calculates a replacement housing price differential as follows:

List price of comparable dwelling $180,000
Acquisition price $170,000
Maximum Price Differential $10,000

The Dells elect to rent a replacement rather than purchase and the agency located a similar replacement dwelling available for rent. The determined fair market rental of the subject (Dell's home) is $1,600; and the replacement has an asking rental of $1,800.

Old Rule: The Dells could receive $5,250; the maximum rental assistance for a long-term owner who can be re-housed under § 24.401.

New Rule: The Dells could receive $8,400; the difference between their dwelling's market rent and the cost of the replacement for a 42-month period.


  1. The Dells must be informed of the price differential even if they announce their intention to rent a replacement prior to the calculation of the differential.

  2. Within one year, the Dells may change their election and purchase a replacement home costing at least $180,000 and claim their remaining eligibility ($1,600)

Example 2

Assume the "List Price of comparable dwelling" in the above case was $176,000. The maximum price differential would then be $6,000. Under the new rule, the Dells would receive only $6,000 for rental subsidy since that is their maximum eligibility.

Updated: 9/5/2014
HEP Home Planning Environment Real Estate
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