42 U.S.C. § 4622 — Moving and related expenses

Page 6201 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 4622 catchline and amended text generally. Prior to amend- ment, text read as follows: ‘‘The purpose of this sub- chapter is to establish a uniform policy for the fair and equitable treatment of persons displaced as a result of Federal and federally assisted programs in order that such persons shall not suffer disproportionate injuries as a result of programs designed for the benefit of the public as a whole.’’ Statutory Notes and Related Subsidiaries 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. SAVINGS PROVISION Pub. L. 91–646, title II, § 220(b), Jan. 2, 1971, 84 Stat. 1903, provided that: ‘‘Any rights or liabilities now exist- ing under prior Acts or portions thereof shall not be af- fected by the repeal of such prior Acts or portions thereof under subsection (a) of this section [repealing sections 1415(7)(b)(iii), (8) second sentence, 1465, 2473(b)(14), 3074, and 3307(b), (c) of this title, section 2680 of Title 10, Armed Forces, sections 501 to 512 of Title 23, Highways, sections 1231 to 1234 of Title 43, Public Lands, and section 1606(b) of former Title 49, Transpor- tation, and provisions set out as notes under sections 501 and 511 of Title 23].’’ § 4622. Moving and related expenses (a) General provision Whenever a program or project to be under- taken by a displacing agency will result in the displacement of any person, the head of the dis- placing agency shall provide for the payment to the displaced person of— (1) actual reasonable expenses in moving himself, his family, business, farm operation, or other personal property; (2) actual direct losses of tangible personal property as a result of moving or dis- continuing a business or farm operation, but not to exceed an amount equal to the reason- able expenses that would have been required to relocate such property, as determined by the head of the agency; (3) actual reasonable expenses in searching for a replacement business or farm; and (4) actual reasonable expenses necessary to reestablish a displaced farm, nonprofit organi- zation, or small business at its new site, but not to exceed $25,000, as adjusted by regula- tion, in accordance with section 4633(d) of this title. (b) Displacement from dwelling; election of pay- ments: expense and dislocation allowance Any displaced person eligible for payments under subsection (a) of this section who is dis- placed from a dwelling and who elects to accept the payments authorized by this subsection in lieu of the payments authorized by subsection (a) of this section may receive an expense and dislocation allowance, which shall be deter- mined according to a schedule established by the head of the lead agency. (c) Displacement from business or farm oper- ation; election of payments; minimum and maximum amounts; eligibility Any displaced person eligible for payments under subsection (a) of this section who is dis- placed from the person’s place of business or farm operation and who is eligible under criteria established by the head of the lead agency may elect to accept the payment authorized by this subsection in lieu of the payment authorized by subsection (a) of this section. Such payment shall consist of a fixed payment in an amount to be determined according to criteria established by the head of the lead agency, except that such payment shall not be less than $1,000 nor more than $40,000, as adjusted by regulation, in ac- cordance with section 4633(d) of this title. A per- son whose sole business at the displacement dwelling is the rental of such property to others shall not qualify for a payment under this sub- section. (d) Certain utility relocation expenses (1) Except as otherwise provided by Federal law— (A) if a program or project (i) which is un- dertaken by a displacing agency, and (ii) the purpose of which is not to relocate or recon- struct any utility facility, results in the relo- cation of a utility facility; (B) if the owner of the utility facility which is being relocated under such program or project has entered into, with the State or local government on whose property, ease- ment, or right-of-way such facility is located, a franchise or similar agreement with respect to the use of such property, easement, or right-of-way; and (C) if the relocation of such facility results in such owner incurring an extraordinary cost in connection with such relocation; the displacing agency may, in accordance with such regulations as the head of the lead agency may issue, provide to such owner a relocation payment which may not exceed the amount of such extraordinary cost (less any increase in the value of the new utility facility above the value of the old utility facility and less any salvage value derived from the old utility facility). (2) For purposes of this subsection, the term— (A) ‘‘extraordinary cost in connection with a relocation’’ means any cost incurred by the owner of a utility facility in connection with relocation of such facility which is determined by the head of the displacing agency, under such regulations as the head of the lead agen- cy shall issue— (i) to be a non-routine relocation expense; (ii) to be a cost such owner ordinarily does not include in its annual budget as an ex- pense of operation; and (iii) to meet such other requirements as the lead agency may prescribe in such regu- lations; and (B) ‘‘utility facility’’ means— (i) any electric, gas, water, steam power, or materials transmission or distribution system; (ii) any transportation system; (iii) any communications system (includ- ing cable television); and (iv) any fixtures, equipment, or other prop- erty associated with the operation, mainte- nance, or repair of any such system; located on property which is owned by a State or local government or over which a State or 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