Topic:
CORPORATIONS; EMINENT DOMAIN; FEDERAL ASSISTANCE PROGRAMS; HOUSING (GENERAL); NON-PROFIT ORGANIZATIONS; RELOCATION BENEFITS; STATE AID; STATISTICAL INFORMATION; TRANSPORTATION DEPARTMENT;
Location:
EMINENT DOMAIN;

OLR Research Report


February 7, 2006

 

2006-R-0115

BENEFITS UNDER STATE AND FEDERAL UNIFORM RELOCATION ASSISTANCE ACTS

By: Kevin E. McCarthy, Principal Analyst

You asked for a comparison of benefits under the federal and state Uniform Relocation Assistance acts (42 U. S. C. § 4601 et seq. and CGS § 8-266 et seq. , respectively).

SUMMARY

Both laws require governments to provide advisory services and financial assistance to individuals, businesses, and nonprofit organizations displaced by municipal, state, or federal governmental programs and projects. If the municipal or state activity is federally-funded, the federal law applies. In addition, CGS § 8-273a allows the Department of Transportation (DOT) to provide benefits pursuant to the federal law, even when no federal funds are used on a specific project. According to DOT staff, the department uniformly does this and has done so for many years. The benefits provided under the federal and state laws are in addition to compensation that an agency must provide to a property owner when it takes his property.

The federal and state laws have similar requirements as to the types of financial assistance the displacing agency must provide. However, the maximum benefits are higher under the federal law. In addition, the federal law provides some benefits that the state law does not provide. Both the federal and state laws have appeals procedures if the person disputes the adequacy of the assistance. Neither the federal or state law covers certain displacement-related costs, such as loss of good will. Additional information about the federal relocation act is available at http: //www. hud. gov/offices/cpd/library/relocation/index. cfm.

Another federal law, the Housing and Community Development Act, has additional relocation benefit requirements. This law provides more benefits to low- and moderate-income people than under the other federal law if their housing is demolished or converted to other uses under certain federal housing programs, including those that redevelop public housing projects. Further information about this law is available at http: //www. hud. gov/offices/cpd/affordablehousing/training/relocation/section104d. cfm.

BENEFITS UNDER FEDERAL AND STATE UNIFORM RELOCATION ASSISTANCE ACTS

Advisory Services

Both the federal and state laws require the displacing agency to (1) determine the displaced person's needs and preference; (2) provide information on the availability, price, and rentals of comparable properties; (3) assist displaced businesses in becoming established in a suitable new location; (4) supply information on federal and state programs offering assistance; and (5) provide other services to minimize the hardship of relocation.

Financial Assistance

Both laws require the displacing agency to provide financial assistance for moving expenses. In the case of a displaced business or farm, the agency must also pay for its costs in searching for a new location and for actual direct loss of personal property that is used in connection with a business or farm that is incurred as a result of moving or discontinuing the business or farm.

With respect to a displaced homeowner, the agency must make a replacement housing payment if he occupied his home at least 180 days before the agency began negotiating with him to acquire it and he has to (1) pay more for comparable housing than he was paid as compensation for his old home, (2) pay higher interest costs on his new mortgage, or (3) pay incidental costs, such as closing costs and transfer taxes.

If the homeowner occupied his home for 90 to 179 days before the agency began negotiations, he is eligible for assistance to help make the down payment on a comparable dwelling and pay certain incidental costs. Alternatively, a homeowner who occupied his home at least 90 days the agency began negotiations may choose to receive assistance to help him rent a comparable dwelling. The down payment assistance and rental assistance payments are also provided to tenants who occupied their apartments for at least 90 days before the agency began negotiations.

Table 1 compares monetary benefits under the federal and state law.

Table 1: Relocation Benefits under Federal and State Law

Type of Benefit

Federal Benefit

State Benefit

Moving costs-

residential

movers

Actual and reasonable costs, including incidental costs such

as temporary storage OR a fixed payment based on the number of rooms moved ($ 575 for one, $ 750 for two, $ 925 for three, $ 1,100 for four, etc. )

Same, but fixed payment option is

$ 50 to $ 300 depending on the number of rooms, plus a dislocation payment of $ 200

Moving costs-

business

movers

Actual and reasonable costs OR payment of one year's net earnings, capped at $ 20,000

Same, but cap on net earnings option is $ 10,000

Search costs

Capped at $ 2,500

Capped at $ 500, narrower range of eligible costs

Replacement housing

supplement- 180 day owners

Capped at $ 22,500

Capped at $ 15,000

Down payment assistance (owner occupants of 90 to 179 days and tenants of 90 or more days)

Capped at $ 5,250

Capped at $ 4,000, if amount is over $ 2,000 displaced person must match the excess amount

Rental assistance (owner occupants and tenants of 90 or more days)

Capped at $ 5,250, provided for up to 3. 5 years

Capped at $ 4,000, provided for up to 4 years

The federal law provides some benefits that the state law does not provide. In the case of a displaced small business (one with up to 500 employees at the affected site), farm, or nonprofit organization, the displacing agency must pay up to $ 10,000 in actual and necessary relocation and reestablishment expenses. These include the costs of: (1) repairs at the new site needed to bring it up to applicable laws and codes; (2) modifications to the property to make it suitable for the business; (3) new exterior signage; (4) repainting and similar redecoration; (5) advertising the new location; and (6) increased operational costs for the first two years, including higher taxes and utility costs. In addition, the agency must pay the following expenses of a relocated business if it determines that they were actual, reasonable, and necessary: (1) utility connections, (2) professional services such as soil testing and feasibility and marketing studies, and (3) impact fees.

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