42 U.S.C. § 4623 — Replacement housing for homeowner;

Page 6202 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 4623 1 So in original. Probably should be preceded by ‘‘section’’. local government has an easement or right-of- way. A utility facility may be publicly, pri- vately, or cooperatively owned. (Pub. L. 91–646, title II, § 202, Jan. 2, 1971, 84 Stat. 1895; Pub. L. 100–17, title IV, § 405, Apr. 2, 1987, 101 Stat. 249; Pub. L. 112–141, div. A, title I, § 1521(a), July 6, 2012, 126 Stat. 577.) Editorial Notes AMENDMENTS 2012—Subsec. (a)(4). Pub. L. 112–141, § 1521(a)(1), sub- stituted ‘‘$25,000, as adjusted by regulation, in accord- ance with section 4633(d) of this title’’ for ‘‘$10,000’’. Subsec. (c). Pub. L. 112–141, § 1521(a)(2), substituted ‘‘$40,000, as adjusted by regulation, in accordance with section 4633(d) of this title’’ for ‘‘$20,000’’ in second sen- tence. 1987—Subsec. (a). Pub. L. 100–17, § 405(a)(1), inserted introductory provisions and struck out former intro- ductory provisions which read as follows: ‘‘Whenever the acquisition of real property for a program or project undertaken by a Federal agency in any State will result in the displacement of any person on or after January 2, 1971, the head of such agency shall make a payment to any displaced person, upon proper application as approved by such agency head, for—’’. Subsec. (a)(4). Pub. L. 100–17, § 405(a)(2)–(4), added par. (4). Subsec. (b). Pub. L. 100–17, § 405(b), substituted ‘‘an ex- pense and dislocation allowance, which shall be deter- mined according to a schedule established by the head of the lead agency’’ for ‘‘a moving expense allowance, determined according to a schedule established by the head of the Federal agency, not to exceed $300; and a dislocation allowance of $200’’. Subsec. (c). Pub. L. 100–17, § 405(c), amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: ‘‘Any displaced person eligible for payments under subsection (a) of this section who is displaced from his place of business or from his farm operation and who elects to accept the payment authorized by this subsection in lieu of the payment authorized by subsection (a) of this section, may receive a fixed pay- ment in an amount equal to the average annual net earnings of the business or farm operation, except that such payment shall be not less than $2,500 nor more than $10,000. In the case of a business no payment shall be made under this subsection unless the head of the Federal agency is satisfied that the business (1) cannot be relocated without a substantial loss of its existing patronage, and (2) is not a part of a commercial enter- prise having at least one other establishment not being acquired by the United States, which is engaged in the same or similar business. For purposes of this sub- section, the term ‘average annual net earnings’ means one-half of any net earnings of the business or farm op- eration, before Federal, State, and local income taxes, during the two taxable years immediately preceding the taxable year in which such business or farm oper- ation moves from the real property acquired for such project, or during such other period as the head of such agency determines to be more equitable for estab- lishing such earnings, and includes any compensation paid by the business or farm operation to the owner, his spouse, or his dependents during such period.’’ Subsec. (d). Pub. L. 100–17, § 405(d), added subsec. (d). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2012 AMENDMENT Amendment by Pub. L. 112–141 effective 2 years after the date of enactment of Pub. L. 112–141, see section 1521(g) of Pub. L. 112–141, set out as a note under sec- tion 308 of Title 23, Highways. EFFECTIVE DATE OF 1987 AMENDMENT Amendment by Pub. L. 100–17 effective on effective date provided in regulations promulgated under section 4633 of this title (as amended by section 412 of Pub. L. 100–17), but not later than 2 years after Apr. 2, 1987, see section 418 of Pub. L. 100–17, set out as a note under sec- tion 4601 of this title. § 4623. Replacement housing for homeowner; mortgage insurance (a)(1) In addition to payments otherwise au- thorized by this subchapter, the head of the dis- placing agency shall make an additional pay- ment not in excess of $31,000, as adjusted by reg- ulation, in accordance with 4633(d) 1 of this title, to any displaced person who is displaced from a dwelling actually owned and occupied by such displaced person for not less than 90 days before the initiation of negotiations for the acquisition of the property. Such additional payment shall include the following elements: (A) The amount, if any, which when added to the acquisition cost of the dwelling acquired by the displacing agency, equals the reasonable cost of a comparable replacement dwelling. (B) The amount, if any, which will compensate such displaced person for any increased interest costs and other debt service costs which such person is required to pay for financing the ac- quisition of any such comparable replacement dwelling. Such amount shall be paid only if the dwelling acquired by the displacing agency was encumbered by a bona fide mortgage which was a valid lien on such dwelling for not less than 180 days immediately prior to the initiation of negotiations for the acquisition of such dwell- ing. (C) Reasonable expenses incurred by such dis- placed person for evidence of title, recording fees, and other closing costs incident to the pur- chase of the replacement dwelling, but not in- cluding prepaid expenses. (2) The additional payment authorized by this section shall be made only to a displaced person who purchases and occupies a decent, safe, and sanitary replacement dwelling within 1 year after the date on which such person receives final payment from the displacing agency for the acquired dwelling or the date on which the displacing agency’s obligation under section 4625(c)(3) of this title is met, whichever is later, except that the displacing agency may extend such period for good cause. If such period is ex- tended, the payment under this section shall be based on the costs of relocating the person to a comparable replacement dwelling within 1 year of such date. (b) The head of any Federal agency may, upon application by a mortgagee, insure any mort- gage (including advances during construction) on a comparable replacement dwelling executed by a displaced person assisted under this sec- tion, which mortgage is eligible for insurance under any Federal law administered by such agency notwithstanding any requirements under such law relating to age, physical condition, or other personal characteristics of eligible mort- gagors, and may make commitments for the in- surance of such mortgage prior to the date of execution of the mortgage. (Pub. L. 91–646, title II, § 203, Jan. 2, 1971, 84 Stat. 1896; Pub. L. 100–17, title IV, § 406, Apr. 2, 1987, 101 Page 6203 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 4624 Stat. 251; Pub. L. 112–141, div. A, title I, § 1521(b), July 6, 2012, 126 Stat. 578.) Editorial Notes AMENDMENTS 2012—Subsec. (a)(1). Pub. L. 112–141, in first sentence, substituted ‘‘$31,000, as adjusted by regulation, in ac- cordance with 4633(d) of this title,’’ for ‘‘$22,500’’ and ‘‘90 days before’’ for ‘‘one hundred and eighty days prior to’’. 1987—Subsec. (a)(1). Pub. L. 100–17, § 406(1)–(3), sub- stituted ‘‘displacing agency’’ for ‘‘Federal agency’’ and ‘‘$22,500’’ for ‘‘$15,000’’ in introductory provisions, and in subpar. (A) ‘‘acquired by the displacing agency, equals the reasonable cost of a comparable replacement dwelling’’ for ‘‘acquired by the Federal agency, equals the reasonable cost of a comparable replacement dwell- ing which is a decent, safe, and sanitary dwelling ade- quate to accommodate such displaced person, reason- ably accessible to public services and places of employ- ment and available on the private market. All deter- minations required to carry out this subparagraph shall be made in accordance with standards established by the head of the Federal agency making the addi- tional payment’’. Subsec. (a)(1)(B). Pub. L. 100–17, § 406(4), added subpar. (B) and struck out former subpar. (B) which read as fol- lows: ‘‘The amount, if any, which will compensate such displaced person for any increased interest costs which such person is required to pay for financing the acquisi- tion of any such comparable replacement dwelling. Such amount shall be paid only if the dwelling acquired by the Federal agency was encumbered by a bona fide mortgage which was a valid lien on such dwelling for not less than one hundred and eighty days prior to the initiation of negotiations for the acquisition of such dwelling. Such amount shall be equal to the excess in the aggregate interest and other debt service costs of that amount of the principal of the mortgage on the re- placement dwelling which is equal to the unpaid bal- ance of the mortgage on the acquired dwelling, over the remainder term of the mortgage on the acquired dwell- ing, reduced to discounted present value. The discount rate shall be the prevailing interest rate paid on sav- ings deposits by commercial banks in the general area in which the replacement dwelling is located.’’ Subsec. (a)(2). Pub. L. 100–17, § 406(5), added par. (2) and struck out former par. (2) which read as follows: ‘‘The additional payment authorized by this subsection shall be made only to such a displaced person who pur- chases and occupies a replacement dwelling which is decent, safe, and sanitary not later than the end of the one year period beginning on the date on which he re- ceives from the Federal agency final payment of all costs of the acquired dwelling, or on the date on which he moves from the acquired dwelling, whichever is the later date.’’ Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2012 AMENDMENT Amendment by Pub. L. 112–141 effective 2 years after the date of enactment of Pub. L. 112–141, see section 1521(g) of Pub. L. 112–141, set out as a note under sec- tion 308 of Title 23, Highways. EFFECTIVE DATE OF 1987 AMENDMENT Amendment by Pub. L. 100–17 effective on effective date provided in regulations promulgated under section 4633 of this title (as amended by section 412 of Pub. L. 100–17), but not later than 2 years after Apr. 2, 1987, see section 418 of Pub. L. 100–17, set out as a note under sec- tion 4601 of this title. § 4624. Replacement housing for tenants and cer- tain others (a) In addition to amounts otherwise author- ized by this subchapter, the head of a displacing agency shall make a payment to or for any dis- placed person displaced from any dwelling not eligible to receive a payment under section 4623 of this title which dwelling was actually and lawfully occupied by such displaced person for not less than 90 days immediately prior to (1) the initiation of negotiations for acquisition of such dwelling, or (2) in any case in which dis- placement is not a direct result of acquisition, such other event as the head of the lead agency shall prescribe. Such payment shall consist of the amount necessary to enable such person to lease or rent for a period not to exceed 42 months, a comparable replacement dwelling, but not to exceed $7,200, as adjusted by regulation, in accordance with section 4633(d) of this title. At the discretion of the head of the displacing agency, a payment under this subsection may be made in periodic installments. Computation of a payment under this subsection to a low-income displaced person for a comparable replacement dwelling shall take into account such person’s income. (b) Any person eligible for a payment under subsection (a) of this section may elect to apply such payment to a down payment on, and other incidental expenses pursuant to, the purchase of a decent, safe, and sanitary replacement dwell- ing. Any such person may, at the discretion of the head of the displacing agency, be eligible under this subsection for the maximum payment allowed under subsection (a). (Pub. L. 91–646, title II, § 204, Jan. 2, 1971, 84 Stat. 1897; Pub. L. 100–17, title IV, § 407, Apr. 2, 1987, 101 Stat. 251; Pub. L. 112–141, div. A, title I, § 1521(c), July 6, 2012, 126 Stat. 578.) Editorial Notes AMENDMENTS 2012—Subsec. (a). Pub. L. 112–141, § 1521(c)(1), in second sentence, substituted ‘‘$7,200, as adjusted by regulation, in accordance with section 4633(d) of this title’’ for ‘‘$5,250’’. Subsec. (b). Pub. L. 112–141, § 1521(c)(2), substituted pe- riod at end of second sentence for ‘‘, except that, in the case of a displaced homeowner who has owned and oc- cupied the displacement dwelling for at least 90 days but not more than 180 days immediately prior to the initiation of negotiations for the acquisition of such dwelling, such payment shall not exceed the payment such person would otherwise have received under sec- tion 4623(a) of this title had the person owned and occu- pied the displacement dwelling 180 days immediately prior to the initiation of such negotiations.’’ 1987—Pub. L. 100–17 amended section generally, revis- ing and restating as subsecs. (a) and (b) provisions for- merly contained in introductory provisions and in pars. (1) and (2). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2012 AMENDMENT Amendment by Pub. L. 112–141 effective 2 years after the date of enactment of Pub. L. 112–141, see section 1521(g) of Pub. L. 112–141, set out as a note under sec- tion 308 of Title 23, Highways. EFFECTIVE DATE OF 1987 AMENDMENT Amendment by Pub. L. 100–17 effective on effective date provided in regulations promulgated under section 4633 of this title (as amended by section 412 of Pub. L. 100–17), but not later than 2 years after Apr. 2, 1987, see section 418 of Pub. L. 100–17, set out as a note under sec- tion 4601 of this title.