236.8 Relocation Assistance Program: Difference between revisions

The Relocation Assistance and Payment Program is applicable to all Missouri Department of Transportation projects (both federal-aid and non federal-aid), which require the acquisition of real estate. (See EPG 236.8.1.3(c)(6), for exceptions relating to voluntary sales.)

(b) Local Public Agencies

These policies and procedures are fully applicable for all local public agency highway projects which involve federal financing in any part of the project, unless the local public agencies provide their own written guidelines for compliance with the Federal Highway Administration regulations for administering the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 as amended.

Policy and procedural guides prepared by local public agencies must be approved by the Right of Way Section office and the Federal Highway Administration prior to implementation.

(c) Applicable Law and Effective Date of Relocation Program

The "Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970," which was signed into law by the President of the United States on January 2, 1971, Uniform Relocation Act Amendments of 1987 as amended and 523.205 RSMo are the authority for this program.

236.8.1.2 Availability of the Relocation Program

(a) Definition of Availability

The Relocation Assistance and Payment Program is available to eligible individuals, families, businesses, farm operations and nonprofit organizations which are wholly or partially displaced by a Missouri Department of Transportation project. Relocation advisory services (not payments) are also available to any person occupying property immediately adjacent to property acquired for a highway project when the department determines that such person is caused substantial economic injury because of the acquisition.

(b) General Eligibility Requirements

To be eligible for relocation payments (except moving payments) relocatees must legally occupy property that is scheduled for acquisition by the department at the time negotiations are initiated for the subject parcel and also meet minimum ownership and/or occupancy time requirements and other specific requirements as discussed later in this chapter for each of the various relocation payments available. Relocatees who vacate their parcel prior to the initiation of negotiations shall also be eligible (if otherwise qualified) if they were in legal occupancy at the time the department notified them, in writing, with the Notice of Intent to Acquire-Relocation. (Such notices shall not be given as routine procedure or without prior concurrence from the Right of Way Section.)

NOTE: The preceding General Eligibility Requirements also apply for moving cost payments except that relocatees who move to and legally occupy properties being acquired by the department after the initiation of negotiations can qualify for moving cost payments, but normally for no other type of relocation payment, providing that they are still in occupancy of the subject property at the time it is acquired by the department.

236.8.1.3 Definitions

The following definitions are applicable to the Missouri Department of Transportation’s Relocation Program.

(a) Person

The term "person" includes any individual, family, partnership, company, corporation, organization or association.

(b) Family

The term "family" means two or more individuals living together in a single-family dwelling unit who are related by blood, adoption, marriage, or legal guardianship who live together as a family unit, plus all other individuals regardless of blood or legal ties who live with and are considered a part of the family unit, or individuals who live together without an identifiable head of household will be considered one family for the purpose of administering the relocation program.

(c) Displaced Person

A "displaced person" is any person who moves from legally occupied real property, or moves personal property from legally occupied real property, as a direct result of the acquisition of such real property in whole or in part by the department including any person who moved from the real property as a result of the initiation of negotiations for the property or is issued a Notice of Intent to Acquire-Relocation and meets the following applicable criteria:

(1) Initial Occupant

The term "initial occupant" applies to any person who (1) has been in legal occupancy of the subject real property for not less than 90 consecutive days prior to (a) the initiation of negotiations for the acquisition of such property, or (b) receipt of a written notice of the department's intent to acquire the property, and (2) moves from the subject property (or moves personal property therefrom) subsequent to the initiation of negotiations for such real property. Initial occupants are normally entitled to a RHP and moving costs.

(2) Less Than 90-Day Occupants

Persons who are in legal occupancy of a subject property at the initiation of negotiations for such property, or at the time they are provided a Notice of Intent to Acquire-Relocation, but who had not been in such occupancy for 90 consecutive days prior, thereto are referred to as "less than 90-Day occupants."

Such persons are normally entitled to reimbursement of moving costs but for no other type of relocation payment unless they cannot afford comparable replacement housing using their own funds. (Under the latter circumstance the relocatee can be paid a RHP, rent supplement or down payment, whichever is applicable, under the Last Resort Housing Program. Payment computation procedures are explained in appropriate sections of this article.)

Comparable replacement rental units available to tenants with less than 90-Day occupancy will be considered "affordable" if the monthly rent plus utilities does not exceed the higher of (1) the rent being paid for the displacement unit plus utilities, or (2) 30% of the displaced family's total monthly gross income if the amount is considered “low income” by the U.S. Department of Housing and Urban Development’s Annual Survey of Income Limits for the Public Housing and Section 8 Programs.

Comparable replacement dwellings available to displaced owners with less than 90 days occupancy will be considered "affordable" if they can be purchased by the relocatees (1) with a down payment that does not exceed their equity in the displacement dwelling, or (2) without increasing their existing monthly home loan payment, or (3) without creating a monthly home loan payment that exceeds 30% of the family's total monthly gross income if the amount is considered “low income” by the U.S. Department of Housing and Urban Development’s Annual Survey of Income Limits for the Public Housing and Section 8 Programs.

Other circumstances may indicate the affordability, or lack thereof, of an available replacement dwelling. Recommend potential exceptions to the above procedure on a case-by-case basis to the Right of Way Section.

(3) Subsequent Occupants

A "subsequent occupant" is a person who is in occupancy of a right of way parcel at the time it is acquired by the department but who was not in occupancy of such parcel at the initiation of negotiations. (A person who initially moves to and occupies a property after the initiation of negotiations and then vacates it prior to the time it is acquired by the department is not a subsequent occupant and is not eligible for relocation assistance or payments.)

Subsequent occupants are eligible for relocation advisory assistance and can normally qualify for moving cost payments (including, when applicable, fixed-payment non-residential moving payments) but for no other type of relocation payment unless they cannot afford comparable replacement housing. (Under the latter circumstance, the relocatee can be paid a RHP, rent supplement or down payment, whichever is applicable, under the Last Resort Housing Program.

The procedure for determining the "affordability" of comparable replacement housing discussed in the preceding subparagraph for occupants with less than 90 days occupancy is fully applicable for subsequent occupants.

(4) Displaced Tenants and Owners--Not Located Within Right of Way Taking

Tenants: Residential tenants who occupy a portion of a parcel that is affected by a partial acquisition, but who are not actually located within limits of the acquisition, will normally be eligible for the same relocation payments they would have been eligible to receive had they been located within the acquisition if (1) the right of way acquisition causes the remainder which they occupy to be uninhabitable due to the acquisition of a facility or service that is not replaced, or (2) if they are located in the remainder of a mobile home park that was so severely damaged and/or reduced in size by the right of way acquisition that the owner justifiability discontinues the entire mobile home park operation at the subject site within one year after the department takes physical possession of the portion of the property that was acquired as right of way.

Owners: An owner who occupies a remainder that is made uninhabitable due to the acquisition of a facility or service will not be eligible for relocation payments if (1) his/her right of way payment includes damages, in addition to the payment for property and rights acquired from him, which were specifically computed as being adequate to pay for a cure of the deficiencies which makes the remainder uninhabitable, and (2) he/she has the legal right and physical space to accomplish the cure. Owners who are in a position to control the necessity for their displacement, and who can reasonably avoid such necessity, cannot qualify for relocation payments by electing not to provide the cure that they have in reality been paid to accomplish. (Condemnation awards and legal settlements that are equal to or exceed the approved right of way offer will be considered to include payment for such cures if the approved right of way offer included such payment. If a condemnation award or legal settlement is less than the approved right of way offer, request a payment eligibility determination from the Right of Way Division office.

Occupants of remainders which become legally and/or physically landlocked due to a right of way acquisition are eligible for the same relocation assistance and payments as occupants of properties which are actually acquired by the department; therefore, routine policies and procedures provided throughout the manual are applicable under this circumstance rather than the special policies and procedures provided in this subparagraph.

(5) Tenant Displaced to Make Room For Rearrangement of Landowners Business Operation

A tenant who is forced by his/her landlord to vacate the remainder of a partial acquisition to make room for the landlord to rearrange a business operation that was affected by a partial acquisition will normally be considered a displaced person, and as such, will be eligible for the same relocation assistance and payments that he/she would have been entitled to receive if he/she had been located within the acquisition. If an owner-occupied residence is involved in this type situation, provide the facts to the Right of Way Section and request an eligibility determination.

(6) Voluntary Sales

Owner-occupants who voluntarily sell their property to the department, after being informed in writing that if a mutually satisfactory agreement cannot be reached the property will not be acquired, will normally not be eligible for relocation assistance or payments. Any tenants displaced as a direct result of such voluntary sale will be entitled to relocation benefits. Under certain circumstances, with prior division approval, it is possible an owner who sells voluntarily would be eligible for relocation benefits.

(7) Cancellation of Eligibility as Displaced Person

Eligibility as a "displaced person" can be cancelled and relocation payment offers withdrawn, normally due to a change in construction plans which eliminates the need for a previously designated right of way parcel, if the person is notified in writing that the individual will not be displaced as originally planned. The written notice must advise that the department will reimburse the person's reasonable expenses incurred to satisfy any binding good faith contractual relocation obligations entered into after they were originally notified of relocation eligibility. Relocation eligibility cannot be cancelled if the person has moved from the subject property.

(d) Relocatee-Displacee

The terms "relocatee" and "displacee" are synonymous and mean any person who meets the definition of a displaced person.

(e) Partial Displacement

The term "partial displacement" refers to situations when the acquisition does not require the displacement of the occupant, but does necessitate the removal of items of personal property that are located within the new right of way limits

(f) Total Displacement

A "total displacement" is one that causes the actual displacement of a person, family, business, farm operation or nonprofit organization.

(g) Initiation of Negotiations for the Parcel

The term "initiation of negotiations for a parcel" relates to the date on which the department presents the owner of the subject parcel, or their designated representative, a written offer for the property or rights to be acquired. When non-resident owners are involved who cannot be contacted in person, initiation of negotiations for the parcel shall be the date such owner or his/her designated representative received the first communication by mail or telephone from the department in which a monetary offer to purchase is made. (Certified mail with return receipt requested must be used when the above contact is made by mail to establish and document the date that the written offer is received by the relocatee or by their representative.)

When property owners donate right of way, they will not be presented a written offer. Under this circumstance, the date that they are invited to execute the "free deed" will be accepted as the initiation of negotiations for the parcel. (The unit file must be documented to show when this action was taken.)

When relocatees are provided a "Notice of Intent to Acquire-Relocation" their initiation of negotiations will be the date the property owners, or their representatives, are presented a written offer for their right of way parcel.

(h) Dwelling and Dwelling Site

The term "dwelling" means the place of permanent or customary residence. It includes a single-family house, a one-family unit in a multi-family building, a unit of a condominium or cooperative housing project, or any other residential unit, including a mobile home.

The term “Dwelling Site” means a land area that is typical in size for similar dwellings located in the same neighborhood or rural area.

(i) Comparable Replacement Dwelling

A "comparable replacement dwelling" is one that is:

(1) Decent, safe and sanitary as defined in the following subparagraph (J).

(2) Functionally equivalent to the displacement dwelling, provides the same utility and adequate in size to accommodate the occupants. While it need not possess every feature of the displacement dwelling, the principal features must be present.

(3) In an area that is not subject to unreasonable adverse environmental conditions, is not generally less desirable than the location of the displaced person's dwelling with respect to public utilities and commercial and public facilities, and is reasonably accessible to the person's place of employment.

(4) On a site that is typical in size for residential development with normal site improvements including customary landscaping. (The site need not include special improvements such as outbuildings, swimming pools and greenhouses.)

(5) Within the financial means of the displaced person.

The term "within the financial means of the displaced person" is defined as follows:

90-Day Owners: A replacement dwelling will be within the relocatees’ financial means if they are paid a properly computed ("nil" if applicable) replacement housing payment (RHP), a correct increased interest payment and all authorized incidental closing costs.

Tenants: A replacement rental dwelling will be within the relocatees' financial means if they are paid a properly computed ("nil" if applicable) rent supplement payment.

(6) Currently available to the displaced persons on the private market unless the relocatees involved are receiving assistance under a Governmental Housing Program before displacement, in which case, a comparable replacement dwelling may reflect similar governmental housing assistance. In any such cases any requirements of the government housing assistance program relating to the size of the replacement dwelling shall apply. (Public housing can be offered to those being displaced from nonpublic housing if they are advised in writing of their right to nonpublic housing and do not object.)

NOTE: If replacement dwellings meeting the above requirements are not available on the market, dwellings that exceed those requirements may be treated as comparable replacement housing.

(j) Decent, Safe and Sanitary Dwelling

The term "decent, safe and sanitary dwelling" means a dwelling which meets applicable housing and occupancy codes. However, if any of the following standards are not met by an applicable code, the following standards shall apply, unless waived for good cause by the Federal Highway Administration. The dwelling shall:

(1) Be structurally sound, weather tight and in good repair.

(2) Contain a safe electrical wiring system adequate for lighting and other electrical devices.

(3) Contain a heating system capable of sustaining a healthful temperature (of approximately 70 degrees) for a displaced person, except in those areas where local climatic conditions do not require such a system.

(4) Be adequate in size with respect to the number of rooms and area of living space needed to accommodate the displaced person. There shall be a separate, well-lighted and ventilated bathroom that provides privacy to the user and contains a sink, bathtub or shower stall, and a toilet, all in good working order and properly connected to appropriate sources of water and to a sewage drainage system. In the case of a housekeeping dwelling, there shall be a kitchen area that contains a fully usable sink, properly connected to potable hot and cold water and to a sewage drainage system, and adequate space and utility service connections for an oven and refrigerator.

(5) Contains unobstructed egress to safe, open space at ground level. If the replacement dwelling unit is on the second floor or above, with access directly from or through a common corridor, the common corridor must have at least two means of egress. (Flexibility in the new regulations will permit decent, safe and sanitary approval of upstairs apartments and sleeping rooms located on the second floor of normal two-story residential dwellings served by one stairway.)

(6) For a disabled displacee be free of any barriers which would preclude reasonable ingress, egress, or use of the dwelling.

(k) Business

The term "business" means any lawful activity, except farm operations, conducted primarily:

(1) for the purchase, sale, lease, and/or rental of personal and/or real property, and for the manufacture, processing and/or marketing of products, commodities, or any other personal property, or

(2) for the sale of services to the public, or

(3) outdoor advertising display purposes, when the display must be moved as a result of the project, or

(4) by a nonprofit organization that has established its nonprofit status under applicable federal or state law.

(l) Small Business

A business having not more than 500 employees, working at the site being acquired or displaced by a program or project, which site is the location of economic activity. Sites occupied solely by outdoor advertising signs, displays, or devices do not qualify as a business for purpose of reestablishment expense.

(m) Nonprofit Organization

The term "nonprofit organization" means an organization that is incorporated under the applicable laws of the state as a nonprofit organization and exempt from paying federal income taxes under Section 501 of the Internal Revenue Code.

(n) Farm Operations

The term "farm operation" means any activity conducted solely or primarily for the production of one or more agricultural products or commodities, including timber, for sale or home use and customarily producing such products or commodities in sufficient quantity to be capable of contributing materially to the operator's support.

(o) Contributes Materially

The term "contributes materially" means that during the two taxable years prior to the taxable year in which displacement occurs a business or farm operation:

(1) had average annual gross receipts of at least $5,000, or

(2) had average annual net earnings of at least $1,000, or

(3) contributed at least 33 1/3 percent of the owner's average annual gross income from all sources.

NOTE: It is permissible, with prior approval from the Right of Way Section, to use a different period if more equitable (in lieu of the above two taxable years).

See EPG 236.8.7.1(a)(1), if the business or farm has not been in operation under current ownership for the entire two taxable year period.

(p) Owner

The term "owner" means an individual (or individuals) who:

(1) owns, legally or equitably, the fee simple estate, a life estate, a 99-year lease (regardless of the length of the unexpired term) or other proprietary interest in the property. Holders of long-term leases, but less than 99-year leases, shall also be considered owners if the unexpired term (including options for extension) after the date of acquisition of the subject parcel totals 50 years or more,

(2) is the contract purchaser or any of the foregoing estates or interests,

(3) has succeeded to any of the foregoing interest by devise, bequest, inheritance or operation of law. In the event of acquisition of ownership by any of the foregoing methods in this subparagraph (3), the tenure of ownership (not occupancy) of the succeeding owner shall include the tenure of the preceding owner,

(4) owns an interest in a cooperative housing project which includes the right to occupy a dwelling, or

(5) any other interest (including leases with less than 50 years unexpired terms) which in the judgment of the department warrants consideration as ownership. (Ownership under this clause must be approved by the Right of Way Section.)

The owner, as defined, of a residential dwelling who has owned and occupied the dwelling for at least 90 consecutive days immediately prior to the initiation of negotiations for the subject dwelling is normally referred to as a "90-Day owner."

(q) Conventional Loan

Any loan not guaranteed or directly provided by a governmental agency, or not guaranteed through the private purchase of loan insurance (for example, mortgage guarantee insurance) is considered to be a "conventional loan."

(r) Replacement Housing Payment (RHP)

In Missouri the term "replacement housing payment" relates only to those payments available to qualified 90-Day owner-occupants to assist in the purchase of replacement housing, computed as the difference between the amount paid to them by the department for their residential property and (1) the amount necessary to purchase the most nearly comparable decent, safe and sanitary replacement housing available, or (2) the amount actually paid for a decent, safe and sanitary replacement, whichever is less.

(s) Subject Property, Subject Parcel and Subject Dwelling

When the word "subject" is used to identify a property, a parcel or a dwelling it always relates to the property, parcel or dwelling which is being acquired or affected by the department and is always the property, parcel or dwelling from which a relocatee is being either partially or totally displaced. (The property purchased or rented by the relocatee to replace the "subject property" is identified as the "replacement" property, parcel or dwelling.)

(t) (Displacement Property) Parcel, Dwelling, (Acquisition Property) Parcel, Dwelling

Are synonymous with "subject property, parcel or dwelling."

(u) Date of Acquisition

The term "date of acquisition" refers to the date that the subject property is acquired by the department.

(v) Tenant

A "tenant" is a person who has the temporary use and legal occupancy of real property owned by another.

(w) Last Resort Housing Program

The "Last Resort Housing Program" is actually a procedure under which the department can construct, purchase, rehabilitate or otherwise provide dwellings as replacement housing units for displacees when available replacement dwellings cannot be found, or when the computed payment exceeds the maximum amount that is normally paid under the Relocation Program.

(x) Rental Subsidy Payment

The term "Rental Subsidy Payment" is synonymous with the terms "Rental Differential Payment" and "Rent Supplement" and all relate to the payment available to displaced residential occupants to cover additional rental costs they will experience in renting comparable replacement housing during the 42-month period following their displacement.

(y) Utility Cost

Term "utility costs" means expenses for heat, lights, water, sewer, trash collection, electricity, gas, other heating and cooking fuels.

(z) Uniform Act

"Uniform Act" is an abbreviated title for the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 as amended.

(aa) Acquired

The word "acquired" as used in this manual means the time the property owner, his/her agent or representative receives payment from the department for the property and/or rights being acquired, or if condemnation is involved at the time the condemnation commissioners' award is paid into court.

(bb) Household income

The term household income means total gross income received for a 12 month period from all sources (earned and unearned) including, but not limited to wages, salary, child support, alimony, unemployment benefits, workers compensation, social security or the net income from a business. It does not include income received or earned by dependent children and full time students under 18 years of age. See appendix A, CFR subsection 24.2(a)(14) for examples of exclusions to income.)

(cc) Mobile home

The term mobile home includes manufactured homes and recreational vehicles used as residences. See appendix A, CFR subsection 24.2(a)(17) which provides guidance on the types of mobile homes and manufactured housing that are acceptable as comparable replacement dwellings for those displaced from mobile homes.

236.8.1.4 Interest Acquired

The type of interest acquired by the department does not affect the eligibility for relocation payments provided the interest acquired is sufficient to cause displacement.

236.8.1.5 Ownership Qualifications

(a) General Ownership Requirements

In some instances, occupants must have owned the subject property for specific time periods to be eligible for certain types of relocation payments. In some instances, payment eligibility requirements also specify that relocatees must purchase and occupy decent, safe and sanitary replacement housing within a specific time after they are required to move from the property acquired by the department.

To be considered an owner of the property being acquired or of a replacement property entitled to relocation benefits the relocatee must either own the fee simple title to the property, hold a life estate or possess certain leasehold rights as discussed in EPG 236.8.1.3 (p).

(b) Contract to Purchase - Subject Right of Way Parcel

Relocatees who are in the process of purchasing the property from which they are being displaced under a contract to purchase which legally binds both parties to an agreement that calls for the subsequent transfer of title to the relocatee, is considered qualified if the contract has been in effect for the required ownership time period.

(c) Contract to Purchase - Replacement Parcel

A relocatee who purchases a decent, safe and sanitary replacement property under a contract to purchase that legally binds both parties, as outlined in the preceding paragraph, within the required time limit, is considered to have met replacement housing ownership eligibility requirements.

It is not necessary for title to have actually passed to the subject relocatee under the procedure discussed in preceding subparagraphs (b) and (c) so long as a binding purchase contract is in effect. Contracts to purchase, which involve replacement properties, must be properly recorded in the office of the Recorder of Deeds before claims for relocation payments can be processed for payment if the purchase of a replacement property is an eligibility requirement for the type payment involved unless a written waiver of the recording requirement has been granted in writing by the Right of Way Section. (Requests for such waivers presented to the division office must explain why there is an objection to recording the contract and must be accompanied by a copy of the subject contract.) In every case, when doubt exists concerning the legality or terms of a particular purchase contract, submit a copy thereof to the Right of Way Section for final determination.

(d) Owner's Acquisition by Devise, Bequest, Inheritance or Operation of Law

Relocatees who acquire a property that is scheduled for right of way acquisition by devise, bequest, inheritance or operation of law are considered to have met the ownership time eligibility requirements (but not necessarily the occupancy requirements) if the time they have owned the property since acquiring it plus the time it was owned by the person or persons from whom they acquired it totals the required time period.

This policy applies even though the relocatees "inherited" the subject property after the initiation of negotiations for the property. It also applies if the inheritance occurred after the original owners signed their right of way deed conveying the subject property to the department or after the property was condemned if the right of way consideration, or if applicable the condemnation commissioners' award, had not been paid, and as a consequence, title had not passed to the department.

(e) Part Owners, Partnerships, Estate Members, Subject Right of Way Parcel

If a dwelling acquired by the department is partially owned by those who occupy it and partially owned by other parties who are not in occupancy, those in occupancy shall be eligible, if otherwise qualified, for relocation payments as an owner-occupant.

Estates are not eligible for RHP, incidental closing costs, increased interest payments, rental subsidy payments, or down payment assistance, but are entitled, when otherwise eligible, to moving cost payments, as well as "fixed-payment" moving cost payment (non-residential).

It is not necessary that the "other party" who owned an interest in the subject, but did not occupy it, also purchase an interest in the replacement. The name of the "other party" should not be included as payee on the RHP check. This is true even though a husband and wife owned the subject and one was in occupancy and the other resided elsewhere. (Be very sure that part owners "residing elsewhere," especially if a husband and wife are involved, do not have a legitimate claim that the subject was actually their permanent and legal residence, even though they had a secondary and/or temporary residence elsewhere.)

(f) Part Owners and Partnerships--Replacement Property

Those displaced by an acquisition can normally qualify for appropriate relocation payments if they purchase a decent, safe and sanitary replacement in partnership with other parties; however, the amount of such payments will normally be affected due to the fact that the subject relocatee does not purchase full ownership in the replacement.

Relocatees who qualify as owners due to having a life estate in the subject or by holding a long-term lease thereon can normally qualify for relocation payments, if they acquire at least the same interest in the replacement as they held in the subject.

NOTE: Other Parties Named In Deed Solely For Legal Purposes

In cases when parties other than the original owner-occupants are also named in the deed for the replacement property solely for legal purposes, for example, when the names of parents are included on a deed for loan purposes when their minor child purchases property, it may be possible, with prior approval from the Right of Way Section, to consider the original owner-occupants as sole owners of the replacement for the purpose of computing and paying applicable relocation payments. Requests for authority to apply this policy exception must be accompanied by a notarized affidavit, signed by all owners of record, stating that those involved who were not original owner-occupants invested no funds and claim no actual ownership in the replacement property and that such non-occupants waive any and all rights and/or claims for assistance and/or payments authorized under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended. (The possible policy exception discussed in this "NOTE" could also be applied in principle to preceding subparagraph (e) which deals with the subject property.)

(g) Properties Involved in Foreclosures

If a relocatee is being displaced from a property that is in the process of being, or which has been foreclosed, present all facts involved to the Right of Way Section in writing and request specific advice concerning relocation payment eligibility.

236.8.1.6 Availability of Comparable Replacement Dwelling Prior to Displacement

Residential relocatees shall not be required to vacate their dwellings unless at least one comparable replacement dwelling (preferably three) has been made available to them. A comparable replacement dwelling will be considered to have been made available if:

(1) The relocatee is informed of its location.

(2) The relocatee has sufficient time to negotiate and enter into a purchase agreement or lease for the replacement dwelling or for other comparable housing (relocatees must not be required to move from their displacement dwelling until at least 90 days after they are advised in writing of the amount of their RHP offer to ensure that they have sufficient time to negotiate for a comparable replacement dwelling).

(3) The relocatees are ensured of receiving the relocation assistance and acquisition compensation to which they are entitled in sufficient time to complete the purchase or lease of a replacement dwelling unit.

Residential relocatees cannot normally be evicted from an acquired dwelling unless a comparable replacement dwelling unit is currently available.

NOTE: If two or more families occupy the same single-family dwelling unit, the department should first attempt to locate a replacement unit that is comparable to the subject unit which will enable the families to relocate together; however, if such comparable is not available, the department's obligation to provide comparable replacement housing will be met if a separate decent, safe and sanitary replacement unit is made available to each family which provides functional comparability to the space and utility they enjoyed in the displacement dwelling.

236.8.1.7 Eviction for Cause

Eviction for cause must conform to applicable state and local law. Any person who occupies the real property and is in lawful occupancy on the date of the initiation of negotiations, is presumed to be entitled to relocation payments and other assistance set forth in this part unless the agency determines that:

(a) the person received an eviction notice prior to the initiation of negotiations and as a result of that notice is later evicted, or

(b) the person is evicted after the initiation of negotiations for serious or repeated violation of material terms of the lease or occupancy agreement, and

(c) in either case, the eviction was not undertaken for the purpose of evading the obligation to make available the payments and other assistance set forth in this part.

For purposes of determining eligibility for relocation payments, the date of displacement is the date the person moves, or if later, the date a comparable replacement dwelling is made available. This section applies only to persons who would otherwise have been displaced by the project.

236.8.1.8 Incompetent Owner or Occupant

If an owner and/or occupant is encountered who has been legally declared incompetent, the Relocation Program must be explained to his or her legal guardian. Guardians will normally have authority to sign relocation payment claims, accept possession notices and handle the details related to their ward's displacement. If any complications are encountered, provide all facts to the Right of Way Section and request specific instructions.

236.8.1.9 Relocatee Dies During Displacement Period

(a) Relocatee Dies Prior to Occupying Replacement Housing

The following instructions apply when relocatees who are eligible for RHP, rental subsidy payments, down payment assistance, increased interest payments or moving costs die before they actually occupy a replacement dwelling:

(1) If the deceased is the head of a household or the member of a displaced family, the relocation payment would not be affected.

(2) If the deceased was the only occupant of the unit acquired by the department, the payment would be forfeited as the individual would never actually occupy the replacement dwelling. (Any portion of a RHP necessary to satisfy the legal obligation of an estate in connection with the selection of a replacement dwelling by or on behalf of a deceased person shall be disbursed to the estate.)

(b) Claims Executed Prior to Relocatee's Death

The unpaid relocation claim of an eligible deceased relocatee that had been signed and notarized prior to his/her death should be processed for payment in the routine manner. The claim payment check should be forwarded to the administrator of the relocatee's estate together with an explanation of the relocation payment involved. If an estate has not been opened and/or an administrator has not been appointed, present the facts involved to the Right of Way Section and request specific instructions concerning delivery of the check.

(c) Claims Not Executed Prior to Relocatee's Death

If a head of household dies after qualifying for a relocation payment, but before executing his/her claim, it is permissible to accept, process and pay a claim executed by the administrator of his/her estate. The claim payment check will be delivered to the administrator.

If the head of household dies prior to filing a claim that qualifies for payment and an estate has not been opened, or an administrator has not been appointed, present the facts to the Right of Way Section and request instructions concerning execution of the claim and delivery of the payment check. (Under some circumstances the succeeding head of household can execute the claim form.)

236.8.1.10 Rest Home and Nursing Home Patrons

The term "rest home" as used herein also applies to nursing homes, convalescence homes and other similar establishments.

In applying the following policy, it will be necessary to determine whether a subject rest home patron is a temporary or permanent occupant of the rest home.

A temporary patron is one who is in the rest home on a temporary basis during an illness, convalescence, or illness recovery period, and is currently maintaining a permanent residence elsewhere, which the individual intends to reoccupy when able to do so.

A permanent patron is one who has made the rest home his/her permanent place of residence, is not maintaining a residence elsewhere, and has no plan to leave the rest home at a later date.

The Right of Way Section will, upon written request, assist in determining whether a subject relocatee is a temporary or permanent rest home patron.

(a) Moving Cost--Rest Home Displaced

When a displaced rest home operation is moved by its owner and reestablished in a new location, the individual patrons involved (both temporary and permanent) will not be entitled to relocation payments if the cost of moving them from the existing home to the replacement is borne by the rest home owner. (The rest home owner will be reimbursed for such moving costs as part of the routine business moving cost payment.)

If permanent patrons are forced to move to a new location at their own expense, and are not moved by the rest home owner as part of his/her business move, they shall be entitled to a routine residential moving cost payment based either on actual costs, or on the fixed-payment schedule, as the occupant of a furnished sleeping room.

If temporary patrons are forced to move to a new location at their own expense, they shall be entitled to a moving cost payment which also applies when the temporary patrons merely returns to their permanent residence.

(b) Rental Subsidy Payments--Rest Home Displaced

Rental subsidy payments are not available to temporary rest home patrons who maintain permanent and legal residences elsewhere. A permanent rest home patron, who is displaced due to the department's acquisition of the rest home, will not be entitled to a rental subsidy payment, if the subject rest home is relocated, remains in operation, and is available to him/her after it is relocated unless the existing rental fee is actually increased after the home is relocated.

If the displaced rest home does not relocate and does not continue in operation after displacement, and the permanent patron will be forced to relocate to a different rest home, the individual will normally be entitled to a rental subsidy payment computed as follows:

(1) Determine the portion of the total monthly rental fee being paid by the relocatee prior to displacement that is chargeable to basic "room rent," which normally includes utilities. It will be necessary to "carve out" and separate the basic room rent payment from nursing services, food, and other services paid for in the overall monthly payment. (Records maintained by the rest home may establish the basic room rental fee, if not, the determination must be made and documented by a department appraiser in the same manner that any other proration is made.)

(2) Locate the most nearly comparable replacement rest home available to the relocatee and determine the portion of the total monthly rental fee charged for the replacement that is chargeable to basic room rent in the same manner as discussed in paragraph (1) above.

(3) Compute the rental subsidy payment in the routine manner based on the difference between the "basic room" rental fees charged by the displaced rest home and the replacement rest home, or on the difference between the fee charged by the displaced rest home and the replacement fee actually paid by the relocatee, whichever is less. To determine if the 30% rule (as referenced in EPG 236.8.1.3(c)(2)) applies, each case will have to be discussed with the Right of Way Section individually.

NOTE: If the payment computation procedure discussed in this subparagraph creates an undue hardship on a relocatee, provide all facts to the Right of Way Section together with a recommendation for alleviating the hardship.

(c) Moving Costs--Rest Home Patrons' Property Acquired by the Department (Applicable to Both Tenants and Property Owners

If a residential, business or farm property is acquired by the department while its owner or tenant is the patron of a rest home (either temporary or permanent patron), such owner or tenant is entitled to the routine applicable moving cost payment.

(d) Residential Relocation Payments--Rest Home Patrons' Property Acquired by the Department (Applicable to Both Tenants and Property Owners

Temporary rest home patrons who maintain permanent residences elsewhere that are being acquired by the department, are entitled to any relocation payment they are otherwise eligible to receive and the fact that they are temporarily residing in a rest home has no effect on such payments. Permanent rest home patrons may own residential property occupied by others, or unoccupied. If they do, they are normally entitled to actual cost moving payments.

NOTE: If an owner-occupant or tenant who is displaced from a conventional dwelling unit, or from a mobile home, moves to and becomes a permanent occupant of a rest home, they can qualify for a rental subsidy payment, if otherwise eligible, provided that such rest home meets decent, safe and sanitary standards. In determining the amount actually paid by the relocatee for their "replacement unit" consider the "basic room rental fee." (If a relocatee moves to a rest home on a temporary basis after displacement, provide all facts involved to the Right of Way Section and request instructions before making any commitments to the relocatee.)

236.8.1.11 Displaced Students

(a) Moving Costs

Students who are displaced from "temporary" housing, normally furnished rooms they occupy during the school year (those who return to their permanent homes during summer vacations), are entitled to routine moving cost payments, either fixed payment or actual costs, if their displacement occurs during the school year and they, of necessity, move to other temporary housing.

If the displacement occurs at the end of the school year, or during summer vacation, students who merely return to their permanent homes shall, if otherwise eligible, be entitled to a moving cost payment.

Students who occupy housing on a "year-round" basis, shall be entitled to the same moving cost payments as any other displaced tenant.

(b) Rental Subsidy and Down Payment Assistance

Students occupying housing on a temporary basis during the school year, as discussed in preceding subparagraph (a), and have permanent homes elsewhere, are normally not entitled to either rental subsidy or down payment assistance. Students who occupy housing on a full-time "year-round" basis, and establish such housing as their permanent and legal residence, shall be entitled to the same relocation payments as any other displaced tenant. (The Right of Way Section will, upon written request, assist in determining whether or not such housing is the student's permanent and legal residence.)

236.8.1.12 Losses Due to Negligence

Losses due to negligence on the part of the relocated person, his/her agent or employees are not eligible for reimbursement under the Relocation Program.

236.8.1.13 Relocatee’s Refusal of Assistance

There is no provision for the department to authorize relocatees to waive their right to claim relocation payments that they are entitled to receive; therefore, no agreement will be made with any relocatees in which they waive their right to claim such payments, even though they desire to do so. (A relocatee could not be forced to sign and submit a relocation payment claim if the individual elects not to do so.)

236.8.1.14 Rental of Department-Owned Property

(a) Renters After Acquisition Not Eligible for Relocation Payments

Persons who rent property from the state after it has been acquired, vacated and possession obtained from the occupants who were entitled to the original relocation payments, are not eligible for relocation payments.

In all cases, when the department rents or leases improved property (except when a routine "Extension of Possession Agreement" is used) whether it be excess land or right of way, the lease must contain the following clause:

"Lessee agrees that upon surrender of possession he/she will not be entitled to any payment for moving costs or other relocation payments under any State or Federal Relocation Assistance Program."

(b) Only Decent, Safe and Sanitary Units Owned by Department Will Be Available for Rent Except When an Extension of Possession Agreement is Used

Improved parcels owned by the department that do not meet decent, safe and sanitary standards must not be rented for residential purposes.

(c) Computation of Rental Rates to be Charged by the Department

Rental rates are to be established as discussed in the Realty Asset Section.

(d) Occupant Rents Subject After Acquisition

If eligible relocatees of a property acquired by the department desire to rent it after the 90-Day possession period has expired, they can normally do so, if the letting schedule permits, without jeopardizing or changing their eligibility for relocation payments. This will normally be accomplished under an Extension of Possession Agreement (RW12).

(1) Effect on Residential Moving Cost Payments

When residential property is rented back to the occupant by the department, the residential moving cost payment will be made after the move is completed. The payment will be based on the amount of personal property actually moved, unless it is obvious that the quantity of personal property was substantially increased after the property was rented to the relocatee by the department. If a substantial increase is noted, an adjustment will be made in the moving cost payment to eliminate payment for the items added after the property was acquired by the department.

If the fixed-rate moving cost schedule is used, the payment amount will be based on the number of furnished rooms occupied by the relocatee at the time the property was acquired by the department.

(2) Effect on Business, Farm and Nonprofit Organization

The renting of business, farm or nonprofit property, could create serious problems in administering the Relocation Assistance and Payment Program. For this reason, the district must submit any proposal to rent department-owned property of this type to the Right of Way Section for approval before any commitments are made.

(3) Effect on RHPs

The RHP offer that is in effect at the end of the routine 90-Day possession period will be the maximum (but not the minimum) RHP that the relocatee can qualify to receive when the relocatee eventually moves and occupies a decent, safe and sanitary replacement dwelling. A replacement housing claim cannot be processed or paid until the relocatee has actually fulfilled all requirements necessary to qualify for this type payment.

The relocatee must be served notice to vacate (at the time the property is needed for construction) under the terms specified in the Extension of Possession Agreement, which will normally be 30-days written notice. (If a specific vacancy date is set out in the agreement, a termination date for the extension of possession, a written vacancy notice will not normally be required.)

(4) Effect on Rental Subsidy Payments

Tenants, who occupy a dwelling unit being acquired by the department, who are eligible for a rental subsidy payment, can rent the subject parcel after it has been acquired by the department without jeopardizing or changing his/her eligibility for the subsidy payment.

The rental subsidy payment offer that is in effect at the end of the routine 90-Day possession period will be the maximum (but not the minimum) rental subsidy payment the relocatees can be paid when they eventually move to a decent, safe and sanitary replacement rental unit.

The rental subsidy claim cannot be paid until the tenant actually vacates the subject property, moves to a decent, safe and sanitary replacement and otherwise qualifies for the payment.

The department will begin collecting rent from the tenant at the end of the 90-Day possession period that is granted to the property owner. (The previous owner, from whom the property was acquired by the department, is entitled to rental payments during this 90-Day possession period.

The tenant must be served with a 30-day written notice to vacate before the department takes possession of the property at the time it is needed for construction purposes under the terms specified in the Extension of Possession Agreement (RW12). (If a specific vacancy date is set out in the agreement, a termination date for the extension of possession, a written vacancy notice will not normally be required.)

The procedure outlined in this subparagraph is also applicable when owners are involved who elect to rent rather than purchase replacement housing.

(5) Effect on Down Payment Assistance

Eligibility for down payment assistance is not affected if the relocatee rents the subject property after it has been acquired by the department.

(6) Effect on Incidental Closing Cost Payments

Rentals of this type have no effect on incidental closing cost payments.

(7) Effect on Increased Interest Payments

Rental of the subject back to its former occupant has no effect on this type relocation payment. The payment will be made to qualified owners when they meet all eligibility requirements.

(e) Extension of Possession Clauses

The following clauses must be included in every Extension of Possession Agreement (RW12) that is used in the rental of a subject property back to those occupying it at the time it was acquired by the department:

(1) It is understood and agreed by both the commission and the lessees that the amounts of any relocation payments to which lessees are entitled shall not in any way be increased due to the continued occupancy authorized herein and it is further agreed that any RHP, rental subsidy payment or down payment assistance to which lessees are eligible, or become eligible to receive, shall not exceed amounts previously determined and offered in writing by the commission to lessees.

(2) Lessees hereby agree and acknowledge that comparable replacement housing is in place and has been made available to them and that said lessees elect by choice to continue occupancy of the subject in lieu of occupying such available replacement housing. Lessees further specifically assume all responsibility for locating and occupying suitable replacement housing at the time they are required to vacate the subject parcel and that they will hold the commission blameless if suitable replacement housing is not available at that time. Lessees further agree that they shall not refuse to surrender possession upon demand by the commission, under terms specified in this agreement, due to the unavailability of suitable replacement property.

NOTE: If comparable replacement housing was not available at the time the Extension of Possession Agreement (RW12) was executed, the preceding clause will obviously be omitted from the agreement. If a comparable replacement dwelling unit becomes available at a later date (after the Extension of Possession Agreement has been executed), it is normally permissible to advise the relocatees and serve notice that the agreement is being terminated. If the relocatees prefer to continue renting the subject in lieu of occupying the available replacement, and if the district is willing to continue renting it to them, they can do so provided that they acknowledge in writing that (1) adequate replacement housing is in place and has been made available to them and that they elect by choice to continue occupancy of the subject in lieu of occupying the available replacement, (2) that they specifically assume all responsibility for locating and occupying suitable replacement housing at the time they are required to vacate the subject property and that they will hold the commission blameless if suitable replacement housing is not available at that time, and (3) that they shall not refuse to surrender possession of the subject property upon demand by the commission, under terms specified in the Extension of Possession Agreement, due to the unavailability of suitable replacement property.

(3) Lessees specifically agree to accept 30-day written notice to vacate subject parcel, as specified in this agreement, in lieu of the 90-Day notice normally issued by the commission when occupancy is not being continued under an Extension of Possession Agreement.

If a specific vacancy date is set out in the agreement, this clause should specify that the lessees agree to vacate on that date and that they specifically agree and understand that an additional notice to vacate will not be required by them or provided by the department.

NOTE: Do not enter into extension of possession agreements with any party who does not actually occupy the subject property, for example, a non-occupant owner, without specific written authority to do so from the Right of Way Section. Under no circumstances should improved properties be rented, or possession extended, to landlords (owners) who could in turn authorize the occupants (relocatees) being displaced to continue occupancy beyond the routine 90-Day possession period.

236.8.1.15 Relocation Payments Not to be Considered as Income

No payment made under the Relocation Program outlined in this manual shall be considered as income for the purpose of the Internal Revenue Code of 1954 which has been redesignated as IRS Code of 1986 or for the purpose of determining the eligibility or the extent of eligibility of any person for assistance under the Social Security Act or any other federal law, except for any federal law providing low income housing assistance, consequentially all payments are not reportable to IRS on Form 1099S.

(a) Effect of Relocation Payments on Welfare Eligibility

The above statement also applies in general to state welfare laws; however, if question exists concerning the effect of such relocation payments on the state welfare payment eligibility of specific relocatees, definite answers must be obtained from local state welfare officials. (If a conflict of interpretation is involved, or if inconsistency is noted, provide all facts to the Right of Way Section where a final answer will be obtained from the central office of the welfare agency.)

NOTE: Relocatees must obtain answers to their questions concerning future welfare payment eligibility from state welfare officials.

(b) Internal Revenue Service Normally Exempts Relocation Payments From Levy

If the local Internal Revenue Service field personnel intend to take such levy action, advise the Right of way Section.

236.8.1.16 Delivery of Relocation Payment Checks

All checks issued under the Relocation Program (except as noted in the following paragraph) are to be mailed to the designated recipient by certified mail. A letter of transmittal setting out the check number, amount and type of payment (moving cost, replacement housing, etc.) should accompany the check. Attach the certified return receipt to the file copy of the transmittal letter and retain both in the unit file.

At the discretion of the district Right of Way Manager any full-time right of way employee may be designated to personally deliver payment checks. The unit file must be specifically documented to show who delivered the check.

(a) Delivery of Checks to Other Parties

It is permissible to deliver relocation checks to responsible parties other than the relocatees to whom such checks are made payable provided that the subject relocatee specifically and clearly requests such action in writing.

EPG 236.8.1.9, covers the delivery of a relocation payment check when the subject relocatee dies prior to receipt of his/her payment and obviously authorizes an exception (the only exception) to the requirement set out in the preceding paragraph. Relocation payment checks must be made payable to the subject relocatee(s), except as authorized in EPG 236.8.1.9 which relates to administrators of estates, and when moving cost payment checks can be made payable to moving firms under certain specific terms.

236.8.1.18 Rounding of Claim Amounts

Relocation claims based on actual costs must not be rounded.

Claims based on computed amounts (judgment, not actual costs) can be rounded to the nearest dollar. Only the "total amount due" can be so rounded, the component parts of a claim must be set out in their exact amounts.

236.8.1.19 Justification for Recomputing Payments and/or Reversing Eligibility Determinations

Relocation payments, once computed, must not be changed, revised or recomputed without good reason and necessity.

In every instance, when an original payment computation is changed, revised or recomputed, the unit file must be documented to explain why such action was necessary and justified. The reason for changing or reversing a payment eligibility determination must be well-explained and documented in the unit file.

236.8.1.20 Duplicate Payments

(a) Joint Acquisition by Two Governmental Agencies

Under no circumstances can a relocatee be paid duplicate relocation payments, covering the same displacement, by two different governmental acquisition agencies which are both subject to the "Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970" and its revisions or which have any other relocation payment program which accomplishes the same purpose.

(b) Relocatee is an Employee of a Private Company

If the employee of a private company who is being transferred by his/her employer is in occupancy of a parcel being acquired by the department at the initiation of negotiations for such parcel, or upon receipt of a Notice of Intent to Acquire-Relocation, the department will pay all relocation payments such relocatee is qualified to receive regardless of any transfer payments made to him by his/her employer and regardless as to when the transfer was initiated.

When this situation is encountered, the district should advise the employer by letter of the relocation payments being made to the employee (relocatee) by the department and thereby provide an opportunity for the employer to avoid duplication of payment, if it so desires.

236.8.1.21 Right of Way Acquired by Local Public Agencies

When lands are acquired by another agency prior to receipt of written advice from the department concerning the location of a proposed highway or a request for reservation or conveyance for highway purposes, the provisions of this section of the manual will not apply.

When lands to be used by the department as right of way are acquired by another agency after the department has provided written advice to that agency concerning the proposed highway location or a request for reservation or conveyance for highway purposes, relocation must be handled according to the instructions and policies outlined in this article.

The provisions of EPG 236 apply to Federal Aid projects that necessitate either partial or total displacements. (The district must monitor relocation assistance activities conducted by a local governmental agency when federal highway funds are used on a highway or street project to ensure that provisions of The Federal Regulations are being complied with.)

236.8.1.22 Discriminatory Practices

Under no circumstances shall any form of discriminatory practice be tolerated on the part of any agent or employee of the department or on the part of any persons, firms or corporations under contract with the Missouri Highways and Transportation Commission in carrying out any phase of the Relocation Assistance and Payment Program discussed in this manual.

Supervisors and all others responsible for carrying out the Relocation Program must be constantly aware of the necessity for identifying, reporting, eliminating and/or correcting any discriminatory practice that may occur. (Any clearly defined discriminatory practice discovered by district personnel, or any practice seriously suspected of being discriminatory, must be reported to the Right of Way Section.)

District personnel must be especially alert for violations of state and federal fair housing regulations which require that rental and sale of housing be made available to all persons without regard to race, color, religion, creed, national origin, sex, age, ancestry or disability.

Relocatees should be encouraged to report to the department (in writing) any violations of fair housing regulations, or violations of any other of their protected civil rights, that they may experience as a result of their displacement. (Copies of such violation reports received in the district must be immediately forwarded to the Right of Way Section.)

Relocation agents are also charged with the responsibility of assuring that minorities who may have language or other communication problems fully understand the Relocation Program as it relates to them.

236.8.1.23 Witholding of Relocation Payments

It is permissible to deduct any rent that a displacee owes the department from relocation payments, provided that such deduction will not prevent the displacee from obtaining comparable decent, safe and sanitary replacement housing.

Obtain prior approval from the Right of Way Section before making such deductions. Also provide facts and amount being withheld to the Financial Services Division with a journal voucher to account for the funds and record rent payment. A copy should also be sent to Right of Way Section.

236.8.1.24 Manner of Notices

The following notices must be in writing and personally served or sent by certified or registered first-class mail with return receipt requested. Unit files must be documented to show that the notices are provided in the prescribed manner. (Persons who are unable to read and understand the notice must be provided with appropriate translation and counseling.)

Notices required by Federal Regulation are:

(1) General Information Notice (see the Business Relocation Brochure or the Residential Relocation Brochure).

(2) Notices of Relocation Eligibility (Relocation Payment Offers).

(3) Vacancy Notices.

Additional notices developed under department procedures are discussed in various sections of this manual. Proper use of such notices must also be recorded in the unit file. (Certified mail and personal delivery are permissible when deemed appropriate by the district.)

236.8.1.25 Relocation Program on Projects Affected by a Major Disaster

Individuals and families whose homes have been damaged or destroyed by a major disaster and who have not been able to reoccupy their homes by the initiation of negotiations for the subject property can be considered to be in constructive occupancy provided (1) that the area has been designated as a major disaster area by the President, or (2) the Federal Highway Administration has determined that constructive occupancy is acceptable under the circumstances involved. (When a situation of this type is encountered, provide the facts involved to the Right of Way Section prior to making eligibility commitments to the relocatee.)

The following policy guidance is applicable when an eligible 90-Day owner-occupant is involved:

The RHP will be based on the difference between the amount the department pays for the subject property in its damaged condition and the confirmed price of the most nearly comparable replacement property available (comparable to the subject before the disaster) or the difference between the department's payment and the amount that the relocatee actually pays for a decent, safe and sanitary replacement, whichever is lesser, minus any proceeds received by the relocatee as payment for damages to his residence as a result of the disaster from insurance companies and/or from any other source.

NOTE: Obtain procedural instructions from the Right of Way Section when tenants, businesses, farm operations or nonprofit organizations are involved in a major disaster of this type. Also request instructions for computing relocation payments when a relocatee experiences a disaster that damages or destroys his home or business after the initiation of negotiations for the subject parcel.

236.8.1.26 Notice of Intent to Acquire - Relocation (See RA Form 236.8.1.27)

If for good reason a district desires to establish occupancy eligibility for a person prior to the initiation of negotiations for the parcel he/she occupies, they can do so by providing a written notice to the relocatee advising of the department's intention to acquire the property he/she occupies and provide a copy of the Relocation Brochure.

To avoid bad public relations with landlords such notices should not be given to tenants unless they initiate the action and make a request in writing to the department. (Department employees must not be placed in the position of being in any way responsible for a tenant's early move which will cause a landlord's loss of rental income.) Notices of this type will be presented to tenants in exceptional cases only and when used, must be worded to clearly advise that the department is in no way requesting, or suggesting that they move at an early date and that we will provide a 90-Day period to vacate after the department has acquired the parcel. (Prior to issuing a Notice of Intent to Acquire-Relocation to a tenant, it may be desirable to explain the procedure involved to his/her landlord. The district should use its best judgment, based on the facts involved, in determining whether or not the landlord should be contacted concerning the pending notice.)

The practice of issuing Notices of Intent to Acquire-Relocation must be held to a minimum and will not be considered standard practice. They shall be issued only when it is obviously in the department's best interest to do so or when a relocatee will suffer serious personal or financial hardship if such action is not taken.

Such notices cannot be issued prior to the time that an acquisition date is approved for the project on which the property is located or until the specific parcel is approved as a hardship case or for protective buying. It is also quite obvious that notices of this kind must not be issued if there is any doubt that the subject parcel will be needed for right of way purposes.

Form 236.8.1.26 is a sample "Notice of Intent to Acquire-Relocation" which should be followed when such notices are prepared in the district Offices. Copies of all such notices must be retained in the unit file with a signed notation thereon stating the date that such notice was mailed or hand carried to the addressee.

If the notice is mailed to the potential relocatee, it is recommended that certified mail be used and that the return receipt be attached to the file copy of the notice.

"Notices of Intent to Acquire-Relocation" are not normally available to the owners of businesses, farms and nonprofit organizations.

Review EPG 236.8.1.3(g), which relates to the initiation of negotiations date when "Notices of Intent to Acquire-Relocation" are issued.

236.8.2 Relocation Assistance Program - Advisory Service

236.8.2.1 General

The Relocation Program can be divided into two functions

(1) relocation payments, and

(2) advisory services and assistance to those being displaced.

The term "advisory service" therefore relates to advice and assistance only.

Each district will provide Relocation Assistance Advisory Services to provide meaningful assistance to those being displaced regardless of race, color, religion, creed, sex, age, ancestry, disability or national origin.

236.8.2.2 Eligibility for Advisory Service

Relocation assistance advisory service must be offered to:

(1) any "displaced person" as defined in EPG 236.8.1.3(c),

(2) any person occupying property immediately adjacent to the real property being acquired when the district Right of Way Manager recommends to the Right of Way Section for concurrence such person or persons are caused substantial economic injury because of the acquisition, and

(3) any person who moves from their residential unit, which is not located within the acquisition, due to reasonable necessity, because of the acquisition of their business or farm operation, and

(4) any person who moves personal property from real property not located within the acquisition, due to reasonable necessity, as a result of the acquisition of their business or farm operation.

236.8.2.3 Advisory Service Requirements

The Relocation Assistance Advisory Services shall include such services as may be necessary or appropriate to:

(1) discuss and explain the services available, relocation payments and the eligibility requirements therefor and assist in completing any applications or other forms required,

(2) determine the need, if any, of displaced persons, for relocation assistance,

(3) provide current and continuing information on the availability, prices and rentals of comparable decent, safe and sanitary housing, and of comparable commercial properties and locations for displaced businesses,

(4) a person displaced from their business or farm operation in obtaining and becoming established in a suitable replacement location,

(5) when appropriate supply information concerning federal and state housing programs, disaster loans programs, and other federal or state programs offering assistance to displaced persons,

(6) advise displaced persons that no payments received under the Uniform Act shall be considered as income for the purpose of the Internal Revenue Code of 1954 which has been redesignated as the Internal Revenue Code of 1986 or for the purposes of determining the eligibility or the extent of eligibility of any person for assistance under the Social Security Act or any other federal law, and

(7) provide other advisory services to displaced persons in order to minimize hardships to such persons in adjusting to a new location.

Advisory services shall be administered on a reasonable basis commensurate with the relocatees' needs. This could vary from (1) minimum assistance when relocatees are involved who are well informed, mentally, physically and financially able to manage their displacement (or overcome their economic injury as discussed in EPG 236.8.2.2(2), and who, as a consequence neither need or desire department assistance) to (2) almost unlimited advisory services and assistance for those who are elderly, infirmed, immobile or otherwise unable to cope with their displacement or economic injury problems. (All relocatees shall be offered transportation to inspect housing to which they are referred.)

Whenever possible, minority persons shall be given reasonable opportunities to relocate to decent, safe and sanitary replacement dwellings, not located in an area of minority concentration, that are within their financial means. This policy, however, does not require the department to provide such relocatees a larger payment than is necessary to enable them to relocate to a comparable replacement dwelling.

236.8.3 Relocation Assistance Program - Public Information

236.8.3.1 General Requirements

It is the responsibility of the department to assure that those being displaced by a highway project have adequate knowledge of the Relocation Program to enable them to take full advantage of the services and payments available.

236.8.3.2 Relocation Brochure

(a) Distribution

Relocation Brochures (a Business Relocation Brochure and a Residential Relocation Brochure) have been prepared. Copies are available for distribution, which describes the department's Relocation Program in detail. These brochures are to be distributed without cost at public hearings and to other individuals and organizations as appropriate.

A brochure shall be furnished to persons to be relocated. (See EPG 236.8.4, for specific instructions concerning brochure delivery to owner occupants and tenants.)

(b) Brochure Delivery

Relocatees must be given a general information notice in writing of eligibility requirements and optional payments. The department's Relocation Brochures adequately provides the required information; therefore, it need not be repeated in the eligibility statements discussed in the following subparagraphs. All relocatees must be given a brochure.

(c) Resupply Procedure

Requests for a brochure are to be submitted to the Right of Way Section.

236.8.3.3 Eligibility Notice at Initiation of Negotiations

Eligibility Notices have been designed to include, when appropriate, written relocation payment offers. Therefore, the terms "Eligibility Notice" and "Relocation Letter Offers" are synonymous.

All Eligibility Notices must include the name and telephone number of a department employee who can be contacted for answers to questions and for other relocation assistance needed by the relocatee.

An Eligibility Notice, including replacement housing and rental subsidy payment offers, must identify the selected comparable replacement dwelling on which the payment offer is based. It must be verified that the comparable selected is still available immediately prior to issuing the notice.

(a) Owner-Occupant of More than 90 Days

Displaced owners in this category must be provided a written Eligibility Notice, including a RHP offer when the written offer for their real property is made.

Form 236.8.3.3(a), is a sample notice that should be used in providing the RHP offer and required information to qualified owners. Any deviation from the wording in the exhibit, except as authorized in the following paragraphs, must be approved by the district Right of Way Manager.

In the first blank space of the first paragraph write the date negotiations were initiated for the parcel. In the second space show the entire amount offered for the right of way and damages.

In the first blank space of the second paragraph show the amount being offered for the residential portion including the value of any uneconomic remnant. In the second space insert the computed RHP offer.

The first space in the fifth paragraph is provided to identify the replacement dwelling on which the RHP offer was based. Use a street address when available. If the replacement dwelling is in a rural area, provide its location in relation to identifiable landmarks such as highway intersections, named streams, etc. (Should the offer be based on the cost of new house construction, so state in the referenced space.)

Insert the confirmed asking or listing price of the selected comparable, in the second space.

If the residential portion of the property being acquired is encumbered by a mortgage and has been for at least 90 days before the initiation of negotiations, the following paragraph should be inserted in the eligibility notice:

If there is now a mortgage on the residential portion of your property, which has been in effect for at least 90 days, you may be eligible for an increased interest cost payment. To obtain an estimate of the amount of this payment you must contact your Missouri Department of Transportation representative. This should be done immediately after you have found a replacement and signed a contract to purchase it, but before applying for loan on it. Once you have obtained a loan commitment and the closing date for the purchase of your replacement, you may contact your Missouri Department of Transportation representative and request that your actual interest cost payment be processed so that it will be available at the closing on your replacement. It is important to contact your Missouri Department of Transportation representative as soon as possible after a closing date has been established to allow time to process your payment.

The spaces in the last paragraph of the form will normally reflect the name of the relocation agent assigned to the parcel and his/her office telephone number.

In some cases, the total right of way offer, which will be set out on the first line of the notice Form 236.8.3.3(a) as discussed above, will include payment for land, property or rights, in addition to the subject residential improvements and supporting land area. If so, it will be necessary to prorate the offer to determine the portion thereof that is chargeable to the residential property. (The necessity for, and manner of accomplishing, such prorations are discussed later in this manual.)

The fact that a displacee elects not to sell the remainder of his/her residential building lot to the department (when a partial displacement is involved) will have an effect on the RHP. See EPG 236.8.8.3(a)(3).

To avoid a delay in initiating negotiations the relocation agent can be notified of the negotiating figure recommended by the district at the time the appraisals are being reviewed. A study can then be made to determine the amount of the RHP during the same period that the appraisal is being reviewed. An adjustment will have to be made in the RHP figure if the reviewer approves a different negotiating figure than previously recommended. If time permits, it is preferable that the RHP be computed immediately after an approved negotiating figure is received.

The original eligibility notice is to be delivered to the owner or their designated representative and a copy thereof placed in the unit file. The Relocation Agent must place a signed notation on the bottom of the file copy to show the date delivered and to whom.

Be very sure that the notice is not delivered until after the subject owner's pre-negotiation ownership eligibility requirements have been carefully checked and approved.

If either the right of way offer or the RHP offer is changed after the notice is delivered to the owner, a corrected notice, identified as such, must be provided to the owner. The corrected notice must advise that it supersedes and cancels the original notice dated. Retain copies of all corrected notices for the unit file with the same delivery notation as required on the copy of the original notice.

The Relocation Payment Eligibility must be presented to the owner-occupant relocatee during the initial negotiation contact.

(1) 90-Day Owner-Occupant--Mobile Home

Ownership of the mobile home rather than the site determines the eligibility of 90-Day owner-occupants for a RHP. If displaced owners of mobile homes occupy them on a site, rented or owned, for at least 90 days before initiation of negotiations, they may be eligible for a payment of up to $31,000.

Owners in this category must be provided eligibility notices which specify the maximum payments they are eligible to receive. Various possible combinations of ownership or rental of sites of both the displacement and replacement homes can occur. As a result it may be necessary to issue separate eligibility notices for the mobile home and the site. Sample notices which must be used to cover these various possibilities are provided in exhibits at the end of this section.

(b) Tenants With 90-Day Occupancy

(1) Ten-Day Contact (See RA Form 236.8.3.3(c)(1)

Within ten working days after the initiation of negotiations for the property they occupy, tenants (other than subsequent occupants) shall be contacted in person and furnished a written eligibility notice advising of the date of initiation of negotiations for the subject parcel and (when 90-Day occupants are involved) that a determination will be made in the near future, normally within 30 days, as to whether or not they will be entitled to a rental subsidy payment and, if so, the maximum amount they can become eligible to receive. If personal contact is not possible within 10 days, send notice by certified mail.

See Form 236.8.3.3(c)(1), which is a sample statement that should be used in providing the required information to tenants.

If the relocatees being contacted are the same persons that were in occupancy at the time the initial relocation contact was made, they will already have a copy of the Relocation Brochure and the Relocation Program will have been explained to them in detail. In addition, a Relocatee Needs Questionnaire will have been completed.

Under this circumstance the only actions necessary during the "ten-day contact" are:

1. Presentation of the RA 236.8.3.3(c)(1) notice, .

2. Answer any new or additional questions the relocatee may have concerning his displacement.

3. Review the previously completed Relocatee Needs Questionnaire and update it as necessary.

4. Be sure that the relocatees still have a copy of the Relocation Brochure in their presence. If not, provide them a copy at the time the contact is made.

If the present occupant of the subject dwelling unit was not in occupancy at the time the above-referenced initial relocation contact was made, take the following actions during the current contact:

1. Explain the Relocation Program to the relocatee.

2. Provide the relocatee a copy of the Relocation Brochure.

3. Complete a Relocatee Needs Questionnaire.

4. Present the relocatee an RA 236.8.3.3(c)(1) notice, .

5. Provide an explanation of the relocation services available to the relocatee.

Copies of all RA 236.8.3.3(c)(1) notices are to be retained in the unit file. The Relocation Agent must place a signed notation on the bottom of each copy to show the date delivered and to whom.

If the tenants who were in occupancy at the time of the previously mentioned initial relocation contact moved prior to the initiation of negotiations for the subject, so note in the files and take no further action as they will not be eligible for payment under the Relocation Program.

If eligible relocatees were in occupancy at the initiation of negotiations, but moved prior to the ten-day contact, it will be necessary to present them an RA 236.8.3.3(c)(1) notice at their new address, in person, if possible, if not, by certified mail.

If eligible relocatees move without advising the district of their new address, the following actions must be taken.

1. Contact the tenant's former landlord and attempt to obtain the new address. If successful, proceed in the routine manner.

2. If the new address cannot be obtained, the statement must be mailed to the tenant (certified mail, return receipt requested) at the address of the subject right of way parcel. A letter must be attached to the statement asking the relocatee to advise the district of their new address. If the new address is obtained, proceed in the routine manner. If, however, the statement and accompanying letter are not delivered and are returned to the district by the Postal Department, they must be placed in the unit file as proof that such action was taken.

The ten-day contact requirement applies, if the tenants were in occupancy at the initiation of negotiations, even though they had not been in occupancy for the required 90-day time period. In this case a simple letter, composed in the district, will be presented to them in lieu of the RA 236.8.3.3(c)(1) notice. The letter must advise the relocatees (1) of the date that negotiations were initiated for the property they occupy, (2) that they are eligible for a moving cost payment and (3) that the district will assist them in locating a decent, safe and sanitary replacement dwelling unit if they so desire. If the relocatees moved to the subject property after the "initial relocation contact" was made, comply with instructions which relate to this type of situation at "Initial Relocation Contact" in EPG 236.8.4.

The ten-day contact is not applicable to tenants who first occupy dwelling units after the initiation of negotiations for the subject property. (See the referenced subparagraph headed "Initial Relocation Contact" which provides instructions covering relocation contact requirements with tenants in this category.)

NOTE: Relocation Agents are not required to obtain permission from landlords prior to contacting tenants.

(2) Rental Subsidy Payment Eligibility Notice

Tenants who meet the 90-Day occupancy requirements must also be furnished a written notice advising them of the amount of the rental subsidy payment to which they are entitled.

Form 236.8.3.3(c)(2), at the end of this section is a sample statement that is to be used in providing this information to tenants.

The computed rental subsidy payment offer, taken from the Rental Subsidy Computation Sheet, which is discussed later in this manual, will be reflected in the first blank space on the subject form and the replacement rental fee used in computing the payment offer will be inserted in the second blank space.

Payment Eligibility Notices must be sent to tenants by certified mail (return receipts requested) or delivered in person within 30 days after the previously discussed ten-day contact is made unless there is a specific reason why this deadline cannot be complied with. (If the deadline cannot be complied with, which would be the case if a suitable replacement unit cannot be located within the 30-day period, document the file accordingly, so advise the relocatee, and provide the statement as soon as possible.) Relocatees must be provided the RA 236.8.4.3(c)(2) notice prior to the issuance of a 90-Day notice to vacate. In all cases the certified mail receipt is to be placed in the unit file together with a copy of the statement.

(c) Actions When "Nil" Relocation Payment Involved

If computations and studies show that an owner or tenant is not entitled to the type RHP discussed in preceding subparagraphs (a) and (c)(2), due to the fact that they can obtain comparable decent, safe and sanitary replacement housing without the need for an additive payment, the wording in the notice must be changed accordingly.

Appropriate wording could be:

"Studies of available dwellings (or, if applicable, rental units) which are for sale (or rent) at this time show that you will be able to acquire (or rent) a comparable decent, safe and sanitary dwelling (or dwelling unit) for a price (or fee) that does not exceed the amount offered by the department for your existing property, or if a rental subsidy payment is involved, that does not exceed the amount you are currently paying for the unit which you now occupy."

The relocatee must also be advised in the notice that the relocatee's ineligibility for a replacement housing or rental subsidy payment does not affect his/her eligibility for other relocation payments the individual is qualified to receive.

(d) Eligibility Notices, Businesses, Farms, Nonprofit Organizations and Partial Displacements

(1) Relocatees Own Acquisition Parcel

Owners of displaced businesses, farms and nonprofit organizations who own the parcel on which they are situated must be provided a written Eligibility Notice and Relocation Brochure at the same time they are offered the approved negotiating figure for the real property involved.

The notice can be presented to the owner by the negotiator or the Relocation Agent assigned to the parcel. (If presented by the negotiator, a follow-up call must be made by the Relocation Agent shortly after the initiation of negotiations, no more than ten working days thereafter.)

The file copy of the notice must show who delivered the original to the relocatee, the date of delivery and the recipient.

The notice can be worded as follows:

"This letter is to advise you that _____________________ has been established as the initiation of negotiations date for the property on which your (business, farm, nonprofit organization) is situated. Your basic eligibility for relocation benefits has therefore been established.
The specific benefits that you may become eligible to receive are outlined in the Relocation Brochure and will be explained in detail by your Relocation Agent.
Please feel free to contact __________________ at this office (telephone no.____________), if you have questions relating to your relocation benefits or a need for other relocation assistance."

If the relocatee is a non-resident, document the file accordingly and provide the Eligibility Notice by certified mail. (Do not include the statement advising that relocation benefits "will be explained in detail by your Relocation Agent".)

(2) Relocatees are Tenants

This information, including the suggested wording of the notice, generally applies when the owners of businesses, farms or nonprofit organizations rent the acquisition parcels on which their operations are situated.

In this case, a relocation agent will normally deliver the notice. The notice must be presented to the relocatee within 10 working days after the initiation of negotiations for the parcel.

236.8.4 Relocation Assistance Program - Pre-Acquisition Requirements

236.8.4.1 Relocation Pre-Acquisition

During the early stages of development of a project the district Right of Way department shall develop solutions to minimize the adverse impacts of displacement. Such planning, where appropriate, shall precede any action by the department which will cause displacement, and should be scoped to the complexity and nature of the anticipated displacing activity including an evaluation of program resources available to carry out timely and orderly relocations.

Planning may involve a relocation survey or study, which may include the following:

(1) An estimate of the number of households to be displaced including information such as owner/tenant status.

(2) Estimated value and rental rates of properties to be acquired

(3) Family characteristics and special consideration of the impacts on minorities, the elderly, large families, and persons with disabilities when applicable.

(4) An estimate of the number of comparable replacement dwellings in the area (including price ranges and rental rates) that are expected to be available to fulfill the needs of those households displaced. (When an adequate supply of comparable housing is not expected to be available, the department should consider housing of last resort actions.)

(5) An estimate of the number, type and size of the businesses, farms, and nonprofit organizations to be displaced and the approximate number of employees that may be affected.

(6) An estimate of the availability of replacement business sites. When an adequate supply of replacement business sites is not expected to be available, the impacts of displacing the businesses should be considered and addressed.

(7) Planning for displaced businesses that are reasonably expected to involve complex or lengthy moving processes or small businesses with limited financial resources and/or few alternative relocation sites should include an analysis of business moving problems.

(8) Consideration of any special relocation advisory services that may be necessary.

Initial Relocation Contact

(a) When to Make Initial Relocation Contact

As soon as plans are developed to the point that it is both possible and desirable to obtain right of way acquisition authority for a project, or portion of a project, the district must contact the occupants of every unit that is scheduled for acquisition under the proposed "A" date in person if reasonably possible. If the acquisition date currently being requested covers only a section of the right of way project involved, the initial relocation contact requirement relates to that section only and not to other sections which are to be acquired at a later date.

The following actions must be accomplished during the initial relocation contact.

(1) The Relocation Program must be explained.

(2) A copy of the Relocation Brochure must be delivered to the relocatee.

(3) A "Relocatee Needs Questionnaire," as discussed in Relocatee Needs Questionnaire, must be completed for each separate unit (residential, business, farm and nonprofit organization) for occupants being totally displaced.

The following points must be specifically explained at the time this contact is made:

(1) that the persons involved must normally be in occupancy of the subject parcel at the initiation of negotiations for that parcel to qualify for relocation payments,

(2) that highway plans for the project involved are not finalized and that the relocation contact is being made to determine the replacement housing needs of those who will be displaced IF the proposed highway project becomes a reality and IF final plans require the acquisition of the property they occupy and

(3) that they should not take any actions concerning a future move that would cause them embarrassment, hardship or financial loss if the property they now occupy is not acquired by the department. The preceding procedure and requirements are also applicable when persons move into and occupy properties scheduled for acquisition after the routine initial relocation contacts have been completed on the project. The initial relocation contact will be accomplished, under this circumstance, as soon as possible, after the existence of such occupants is discovered.

Persons who initially occupy a proposed right of way parcel after negotiations have been initiated for the parcel may become eligible for a moving cost payment. For this reason such relocatees should be contacted as soon as their occupancy is known by the District. A Relocatee Needs Questionnaire should be completed during the first contact and they should be advised that they may be eligible for moving cost payments if they are still in occupancy at the time the property is acquired by the department or at the time they received a notice to vacate from the department. They should be offered advisory assistance and those displaced from residential dwelling units should be advised that the department will assist them in locating a decent, safe and sanitary replacement dwelling, if they so desire. Present the relocatees a copy of the Relocation Brochure during the first contact but be very sure that they understand that they cannot normally qualify for any type of relocation payment other than moving costs. Such relocatees should be "added to" applicable relocation records immediately after their first relocation contact is made.

NOTE A: Displaced Tenants, Not Located Within Right of Way Acquisition

When tenants not located within the right of way acquisition will be displaced because their landlord does not replace a necessary facility or service that was included in the acquisition, the following actions are to be accomplished.

Make a record of the tenants located on the potentially uninhabitable remainder who were in occupancy at (1) the time negotiations were initiated for the subject parcel, and (2) at the time the right of way from the subject parcel was acquired. It is also desirable that the dates that tenants moved to and began their occupancy of the subject parcel be recorded at the time the occupancy listings are assembled. If the landowner advises that he/she plans to replace the facility, the list of occupants should be obtained without contacting the tenants involved. Hopefully the landowner will provide a listing of the tenants, if not, or if the completeness and/or accuracy of a list the landowner does provide is questionable, contact the Right of Way Section for further instructions. This record will be extremely beneficial if it is determined at a later date that the landowner does not replace the necessary facility or service as originally planned. If this occurs, it will be necessary to contact the relocatees involved and provide relocation assistance and payments.

If it is known at the time the tenant occupancy record is assembled that the landowner does not intend to replace a needed facility, the tenants will be displaced. Take all of the same actions (except the issuance of vacancy notices) that would be taken if tenants were located within the acquisition.

(b) When to Make Initial Relocation Contact--Hardship and Protective Buying

If a request for hardship acquisition or the protective buying of a parcel is involved prior to the time the above-referenced contact is accomplished, the initial relocation contact is to be made just prior to submitting a request to the Right of Way Section for authority to acquire the subject parcel.

The same actions as required in preceding subparagraph (a) must be taken except that the points to be explained at the time of the contact are to be changed as follows:

(1) That they must not move prior to receipt of a written "Notice of Intent to Acquire-Relocation" from the department or prior to the initiation of negotiations for the parcel, whichever occurs first.

(2) That they should not take any actions prior to receipt of a written "Notice of Intent to Acquire-Relocation," or prior to the initiation of negotiations for the parcel, that would cause them embarrassment, hardship or financial loss if the proposal to purchase the property is not approved.

(3) That to be safe, they should not vacate the subject parcel until after they have received a written "Notice to Vacate" from the department.

Relocatee Needs Questionnaire

Relocatee Needs Questionnaire (Form 236.8.4.2) must be completed, for each individual, family, business, farm and nonprofit organization being displaced, at the time the initial relocation contact is accomplished. It is not necessary to complete a questionnaire when partial displacements are involved; however, a brochure must be given to relocatee as it relates to partial displacees explained. Unit file must indicate date of contact and party involved and extent of displacement.

The Relocation Agent who completes a needs questionnaire relating to a residential dwelling unit should explain to the relocatees at the beginning of the interview that some of the questions to be asked are of a personal nature and that they can withhold the requested information, if they so desire.

If the relocate withholds information, the agent should insert the letters "IW" (Information Withheld) in the appropriate space on the questionnaire.

The completed questionnaire must be made a part of the unit file.

Relocation agents assigned to projects, and/or specific relocatee, must also be provided copies of completed questionnaires relating to the relocatees involved.

Instructions for Completing the Questionnaire

The points discussed in the following paragraphs require special interpretation and/or instructions.

Use the following "key" letter when completing the last space on the second line of the questionnaire that is headed "RACE." When displacement involves a business, farm or nonprofit organization, the blank entitled "Race" will apply to the business owner, farm operator or majority of the nonprofit organization's membership.

W - white

B - black

H - Hispanic

I - American Indian or Alaskan Native

A - Asian or Pacific Islander

O - Other

When a residence and business are located in the same building (occupied and operated by the same person), include applicable information for each on the same questionnaire. On the fifth line show that both a residence and business are involved and complete the applicable portions of the form. (The same holds true when a residence is located on a farm that is being completely displaced, displaced farm operation.) If separate unit files are maintained, place a copy of the questionnaire in each file.

The ninth line on the form provides spaces to show the name of the head of household's employer and whether such employment is temporary or permanent. The tenth line should reflect the address where the head of household works. This information relates to his or her principal place of employment and not to secondary or moonlighting jobs. (Secondary and moonlighting jobs of consequence should be discussed under comments on the back of the form.)

On the next line show the mode of travel used by the head of household in traveling to and from his/her principal place of employment, and the distance (one way) involved. Average travel time to and from the place of employment can also be shown in the "distance" space.

Future reference to the line on the questionnaire which reflects whether or not the subject dwelling unit is the relocatee's principal and legal permanent residence will help avoid the possible error of paying a relocation payment to an ineligible relocatee.

It is recommended that the space headed "Are Utilities Furnished" be completed by inserting "none," if appropriate, or if utilities are provided, the letter H--for heat, E--for electricity, W--for water, etc., to show those which are provided by the landlord. (If all utilities are provided, so state.) Income amounts should be obtained and re-verified before computing payments.

All entries on the line which begins "Total Rooms Needed" should reflect the same number of rooms as contained in the subject dwelling unit unless the subject was not adequate to accommodate the relocatee, in which case, show the number of rooms that will be needed in a replacement dwelling unit to enable it to accommodate the relocatee. (Normally any increase in the number of rooms needed, over those contained in the subject unit, will appear in the spaces reflecting "Total Rooms Needed" and "Bedrooms".) Additional information relating to the term "adequate to accommodate the relocatee" is provided in "Selection of Comparables" in EPG 236.8.8.3 Payment Computations and should be reviewed before completing a Relocatee Needs Questionnaire.

The first space on the last line on the front of the form should show the total number of automobiles owned by the head of the household and by all other family members who reside in the subject dwelling unit. The second space is provided to show all other vehicles owned by the family including trucks, vans, motorcycles, etc.

It is desirable to have a record on file in the district office to show that the occupants of each displaced unit were offered assistance in locating available replacement housing and whether or not the department's offer was accepted or declined. For this reason spaces have been included on the back of the questionnaire relating to these points. These spaces will be completed in every instance when residential units, businesses, farm operations and nonprofit organizations are being totally displaced. (A negative answer to the question "was a specific offer of assistance in locating available replacement property made to relocatee" is not acceptable.)

In the space labeled "Adults Present at Interview" list all adults that were present at the time of the contact, including the names of department employees, other than the agent who is conducting the interview and who will sign the questionnaire. If someone other than a family member was present, show his or her title, interest or relationship to the relocatee.

There is no circumstance that would eliminate the necessity for providing an explanation of the three points specifically discussed in When to Make Initial Relocation Contact. Therefore a negative answer to the question on the back of the questionnaire which relates to this required explanation is not acceptable.

In addition to the above information obtained from any displaced business, farm or nonprofit organization the following information should be obtained during completion of the Relocatee Needs Questionaire:

The information can be added into the comments section or on additional sheets and attached to the Relocatee Needs Questionaire.

At a minimum, interviews with displaced business owners and operators should include the following:

1. The business’s replacement site requirements, current lease terms and other contractual obligations and the financial capacity of the business to accomplish the move.

2. Determination of the need for outside specialists that will be required to assist in planning the move, assistance in the actual move, and in the reinstallation of machinery and/or other personal property.

3. An identification and resolution of personal/realty issues.

4. An estimate of the time required for the business to vacate the site.

5. An estimate of the anticipated difficulty in locating a replacement property.

6. An identification of any advance relocation payments required for the move.

c) Certification Concerning Legal Residency In The United States

Form 236.8.4.2(a) should be completed and signed by all relocates at the same time as the Relocatee Needs Questionnaire (Form 236.8.4.2).

The form is to be attached to and remain with the Relocatee Needs Questionaire.

Each person seeking relocation payments or relocation advisory assistance shall, as a condition of eligibility, certify:

1. In the case of an individual, that he or she is either a citizen or national of the United States, or an alien who is lawfully present in the United States.

2. In the case of a family, that each family member is either a citizen or national of the United States, or an alien who is lawfully present in the United States. The head of the household may make the certification on behalf of other family members.

3. In the case of an unincorporated business, farm, or nonprofit organization, that each owner is either a citizen or national of the United States, or an alien who is lawfully present in the United States. The certification may be made by the principal owner, manager, or operating officer on behalf of other persons with an ownership interest.

4. In the case of an incorporated business, farm or nonprofit organization, that the corporation is authorized to conduct business within the United States.

In computing relocation payments, if any member(s) of a household or owner(s) of an unincorporated business, farm or nonprofit organization is (are) determined to be ineligible because of a failure to be legally present in the United States, no relocation payments may be made to him or her. Any payment(s) for which such household, unincorporated business, farm, or nonprofit organization would otherwise be eligible shall be computed for the household, based on the number of eligible household members and for the unincorporated business, farm or nonprofit organization, based on the ratio of ownership between eligible and ineligible owners.

The district right of way office shall consider the certification provided to be valid, unless it is deemed invalid based on a review of the alien’s documentation or other information that the district considers reliable and appropriate.

Any review by the district right of way office of the certifications provided shall be conducted in a nondiscriminatory fashion. The same standard of review shall be applied to all such certifications. Except that such standard may be revised periodically.

If the district right of way office has reason to believe that the certification of a person who has certified that he or she is an alien lawfully present in the United States is invalid, the district shall obtain verification of the alien’s status from the local U.S. Citizenship and Immigration Service (USCIS) Office. A list of local USCIS offices is available. Any request for BCIS verification shall include the alien’s full name, date of birth and alien number, and a copy of the aliens documentation. (If the district is unable to contact the BCIS, it may contact the Right of Way Section for further guidance.)

If the district right of way office has reason to believe that the certification of a person who has certified that he or she is a citizen or national is invalid, the district shall request evidence of United States citizenship or nationality from such person, and if considered necessary verify the accuracy of such evidence with the issuer.

No relocation payments or relocation advisory assistance shall be provided to a person who has not provided the certification described in this section or who has been determined to be NOT lawfully present in the United States, unless such person can demonstrate to the district’s satisfaction that the denial of relocation assistance will result in an exceptional and extremely unusual hardship to such person’s spouse, parent or child who is a citizen of the United States, or is an alien lawfully admitted for permanent residence in the United States.

For clarification “exceptional and extremely unusual hardship” to such spouse, parent, or child of the person not lawfully present in the United States means that the denial of relocation payments and advisory assistance to such person will directly result in:

1. A significant and demonstrable adverse impact on the health or safety of such spouse, parent, or child.

2. A significant and demonstrable adverse impact on the continued existence of the family unit of which such spouse, parent, or child is a member, or

3. Any other impact that the district determines will have a significant and demonstrable adverse impact on such spouse, parent or child.

236.8.5 Relocation Assistance Program - Administrative Records and Reports

236.8.5.1 Type and General Purpose of Records and Reports Involved

The records and reports discussed in this section are general in nature and are those that do not apply directly to a payment category or to a specific subject that is covered in one of the other sections of the manual.

All relocation records and reports have been developed to ensure that the many requirements for administering the Relocation Program have been fulfilled for each right of way project.

Do not use any form, form letter or procedure that could be construed to make a commitment or assurance to relocatees that is not required or authorized in this Article without written approval from the Right of Way Section.

236.8.5.2 Relocation Agent’s Report (Form RA 236.8.5.4)

(a) Purpose of Report

The "Relocation Agent's Report" provides a record of every contact (including telephone contacts) between department relocation personnel and those who are displaced by a highway project and to provide documentary proof that certain required contacts were made. Unsuccessful attempts to contact relocatees also must be recorded on the paper.

It is imperative that the "Relocation Agent's Report" be filled out in detail as it is a very important document and will be used as proof that required actions have been accomplished. A brief, but complete, resume of each contact that is recorded on the report must be attached to and made a part of the Relocation Agent's Report.

(b) Hardship and Protective-Buying Parcels

A "Relocation Agent's Report" must be completed for each relocatee involved in either a total or partial displacement including those acquired in advance of routine project negotiations for protective buying and as hardship cases.

(c) Instructions for Use of Report

Although every relocation contact between the Relocation Agent assigned to a parcel and the relocatee who occupies it must be recorded and made a part of the Relocation Agent's Report, the RA Form 236.8.5.4 itself covers only one specific contact with the relocatee. (Contacts not specifically discussed on the face of the form must be recorded on a separate sheet, which is to be attached to and made a part of the Relocation Agent's Report.)

If a residential owner-occupant is involved the section of the Form 236.8.5.4 headed "Initiation of Negotiations Contact" will be completed. Therefore the first entries on the face of the Relocation Agent's Report will be made when the combined relocation and initiation of negotiations contact is made with the owner.

NOTE: It is not necessary to begin the Relocation Agent's Report at the time the "initial relocation contact" is made, as the Relocatee Needs Questionnaire will provide ample documentation relating to that contact.

The section of the form headed "Ten-Day Relocation Contact" will be completed when a residential unit is occupied by a tenant.

If a displaced business, farm operation or nonprofit organization is involved, record the first contact between the Relocation Agent and the relocatee (made after, and not counting, the above-referenced initial relocation contact) in the section of the form provided for this purpose.

The relocation contact to be recorded in the section of the form relating to partial displacements is the contact during which the Relocation Program is explained, and a Relocation Brochure is presented, to the owner of the personal property involved. This will normally be the first contact with such relocatee.

The following instructions are provided to ensure its proper use.

"Type Property" on the second line in the heading refers to "residence," "business," "farm operation" or "nonprofit organization."

The last space on the fourth line must reflect the date that the initial relocation contact was made and who made the contact. If the agent preparing the subject report did not make the initial relocation contact, the agent should obtain this information from the applicable Relocatee Needs Questionnaire.

The first line in the section headed "Initiation of Negotiations Contact" must reflect the date that negotiations were initiated for the subject property and whether or not, "yes" or "no," the Relocation Agent was present during this contact. (If "no" explain why under "Comments" or on the back of the form.)

The date that the written relocation offer was presented to the owner will normally be the same date reflected on the first line under this heading, as the initiation of negotiations date. (If it is not, the circumstances must be explained.)

If a "new" owner-occupant is encountered, who was not in occupancy at the time the initial relocation contacts were made on the project, complete the portion of this section that relates to this type situation.

If the unit was purchased and occupied after routine initial relocation contacts were made on the project, but prior to the initiation of negotiations, it will be necessary to complete both a Relocatee Needs Questionnaire and a Relocation Agent's Report.

If the relocatee is entitled to moving costs only, mark spaces which do not apply as "N/A" and provide an explanation under "Comments," or on the back of the form, to clarify the situation.

If the unit was purchased and occupied by the current occupant after the date of initiation of negotiations for the subject parcel, it will be necessary to complete both a Relocatee Needs Questionnaire and a Relocation Agent's Report covering the "new" occupants as they may become eligible for relocation assistance and moving cost payments.

The section of the form headed "Ten-Day Contact" relates to the specific contact discussed in EPG 236.8.3.3(b)(1). A review of this section will clarify most entries required in this section of the form.

An explanation will be required on the form if the date of the ten-day contact was made more than ten days after the initiation of negotiations date. If the RA Form 236.8.3.3(c)(1) notice was not presented to the relocatee at the ten-day contact, an explanation will be required.

If a "new" tenant is encountered, who was not in occupancy at the time the initial relocation contacts were made on the project, follow the same general principles discussed above, relating to "new" owner-occupants, when completing the applicable portion of this section. (This statement also applies in the section of the form covering totally displaced businesses, farm operations and nonprofit organization, which relates to relocatees who first occupied the subject after initial relocation contacts were completed on the project.)

The number of occupied rooms that are furnished by the relocatee as shown in the next section of this report shall be the basis for computing fixed-payment moving cost claims.

Include all rooms that are occupied and furnished by the relocatee including attics, basements, enclosed porches, separate sheds or other similar type storage areas if such areas contain furniture, appliances and/or other personal property reasonably equivalent to a routine furnished room. (Do not include bathrooms, hallways and closets.) If areas, other than routine rooms, are included in the room count, explain what other storage areas are involved. (If information relating to the number of rooms occupied in this record differs with data provided in the "Relocatee Needs Questionnaire," an explanation resolving the discrepancy must be attached to this report.)

The next section of the form, which is "Applicable to Totally Displaced Businesses, Farm Operations and Nonprofit Organizations," is, with the following explanation, considered to be self-explanatory.

The spaces referring to "relationship" of persons contacted, if other than the owner, relates primarily to nonprofit organizations and large corporations.

When nonprofit organizations are involved, the person contacted will normally be the organization's president, commander, pastor or other principal officer. When large firms and corporations are involved, local managers, business representatives, company attorneys and/or others in management positions may be contacted in lieu of "owners."

When locally owned and operated businesses and farm operations are involved, the owners must be contacted in person, if possible. If it is necessary to contact someone other than the owner, in such cases, explain the reason for doing so in the report.

The following instructions are applicable when any type of partial displacement is involved.

The "first relocation contact" to be recorded in the section of the form relating to partial displacements will be the original relocation contact with the owner of the personal property involved. This being true, it is necessary, during this original contact, to present such owner a Relocation Brochure and explain the program as it relates to partial acquisitions. (It is expected that the questions on the form concerning brochure delivery and explanation of the program will always be answered in the affirmative.)

In listing items of personal property, when a partial displacement is involved, it is permissible to "lump" small miscellaneous items together when so many minor items are involved that it is impossible or impractical to list them separately.

In the last section of the form, show whether the relocatee did, or did not, request assistance in locating replacement property.

If a relocatee requested assistance in locating a replacement at the time the questionnaire was completed, or at any later date, the affirmative space must be checked and the Relocation Agent's record must include entries to show that such assistance was provided.

Each "Relocation Agent's Report" must be signed and dated before it is turned in to the district office.

236.8.5.3 Initiation of Negotiations Statement (RA Form 236.8.5.5)

It is extremely important that the exact date that right of way negotiations began for every parcel affected by the Relocation Program be recorded as this date will be used in determining whether or not owners and tenants have occupied parcels being acquired as right of way for the minimum time necessary to qualify them for specific relocation payments.

RA Form 236.8.6.5 has been developed to establish and provide a record of the initiation of negotiations date for each individual parcel affected by the Relocation Program.

This form is to be completed by the negotiator, for every parcel that is involved with the Relocation Program, and submitted to the district Relocation Section immediately after the contact is made.

In case of nonresident owners, who are contacted by mail, the initiation of negotiations will be the date that the owner received the initial letter from the department in which an offer was made for his property. The letter must be sent by certified mail so that the return receipt will establish the date. Attach a copy of the letter and the return receipt to the RA Form 236.8.5.5.

236.8.5.4 Decent, Safe and Sanitary Inspection Reports

Before any replacement housing, rental subsidy or down payment assistance can be made, the district must determine that the relocatee involved has moved into a replacement dwelling unit that meets the decent, safe and sanitary standards defined in subparagraph 236.8.1.3(j). The unit file must be documented to show that the replacement dwelling was inspected and found to comply with the referenced decent, safe and sanitary standards.

RA Form 236.8.5.4(a) has been designed to serve as an inspector's check sheet, inspector's report and signed statement for use in documenting the unit file. Relocation Agents will normally serve as inspectors.

(a) Decent, Safe and Sanitary Inspection Report (Form 236.8.6.7(a))

The heading of the form is self-explanatory.

In the first section following the heading, provide the street number of the inspected dwelling unit if possible. If that is not possible, use a location designation that will enable the dwelling unit to be readily located at a future date.

In the next space, show the person who owned the property at the time of the inspection and that owner's address.

The description of the property required in this section can be brief, but at the same time, must be adequate to accomplish its purpose.

It will be necessary to contact the appropriate local city or county official to determine whether or not a local occupancy code exists which applies to the subject dwelling unit. If there is, have the city, or county, building inspector (or comparable local official) complete the third section of the form. Districts are authorized to payroll routine fees charged by local building inspectors in the same manner as any other incidental cost chargeable to relocation. (Local city and county inspectors can provide a separate written inspection report, letter, approved occupancy permit, city/county inspection report, etc., if they so desire in lieu of signing the department's Decent, Safe and Sanitary Inspection Report. If so, make reference to it in the third section of the department's Inspection Report covering the replacement unit and attach it thereto.)

Do not confuse building codes for new construction (which are not applicable) with housing and occupancy codes for existing structures that are referred to in the decent, safe and sanitary standards.

A simple "yes" or "no" in the appropriate spaces in the fourth section of the report is considered adequate; however, the inspector is encouraged to add any comments or statements the inspector feels would be desirable and beneficial on the back of the form.

The inspector must check the appropriate space in the certification to show that the inspector does or does not consider the property to meet the applicable decent, safe and sanitary standards.

If the inspector does not believe that the property meets minimum decent, safe and sanitary standards, the inspector should outline the reasons on the back of the form, or on an attached sheet.

Sometimes the owner of a property that does not pass the decent, safe and sanitary inspection will want to make the necessary improvements and corrections to enable it to qualify. If so, a second inspection is necessary after the corrections have been made, and a new RA Form 236.8.5.4(a) must be completed. (A second inspection by the local building inspector would not be required if the local building inspector signed the original form.) Always retain both the original and new inspection reports in the unit file.

(b) Inspection of Mobile Homes

In addition to meeting the decent, safe and sanitary standards defined in EPG 236.8.1.3(j), mobile homes used as replacement housing must also meet minimum tie-down standards as defined in mobile Missouri Revised Statutes Chapter 700.

(c) Rest and/or Nursing Homes

Relocatees who occupy state approved rest homes or nursing homes as replacement dwellings, will be considered as having occupied a decent, safe and sanitary replacement and a routine decent, safe and sanitary inspection will not be required. The unit file must be documented to show that such rest or nursing home has been, and is currently, state approved.

Rest and/or nursing homes, which have not been state approved, must meet the decent, safe and sanitary standards outlined herein and a Decent, Safe and Sanitary Inspection Report must be completed in the routine manner.

(d) Inspection Procedure; In State

It is necessary for districts to conduct decent, safe and sanitary inspections prior to the actual purchase or rental of a selected replacement dwelling unit, if a relocatee so desires, to ensure that the selected replacement meets required standards. Such pre-purchase and pre-rental inspections will be made only after a relocatee has selected a specific replacement that the relocatee intends to purchase or rent. Districts are in no way obligated to inspect random properties, or a series of properties, which a relocatee is merely considering. (Should such a request be made, the relocatee should be advised to make a selection and then, prior to making a commitment, request the inspection of that specific property.)

In some instances, a relocatee may not request a decent, safe and sanitary inspection until after the relocatee has purchased or rented a replacement. In such cases, the inspection should be made as soon as possible after the district is informed that replacement property has been obtained.

(e) Inspection Procedure; Out of State

The Right of Way Section will, upon request from the district office, contact other State Highway and Transportation Departments and ask them to conduct decent, safe and sanitary inspections when Missouri relocatees move into their state.

Requests for such action, from the district to the division, must be accompanied by a Decent, Safe and Sanitary Inspection Report Form (filled out to the extent possible) and the factual data necessary to enable the request to be honored, such as the name of the relocatee, address of the replacement property and any other information that would be beneficial to those making the inspection.

The division will immediately forward such requests to the state involved. The completed form will be returned to the district as soon as it is received from the state conducting the inspection.

If the replacement property is located in an adjoining state, and within reasonable distance from the Missouri State line, it will be permissible for department employees to conduct the inspection in lieu of requesting such action by another state. District engineers, whose district joins the state line, can normally authorize the necessary out-of-state travel to conduct such inspections.

Should a situation be encountered where it is not feasible to obtain an out-of-state decent, safe and sanitary inspection through a local public agency it will be permissible, with prior approval from the Right of Way Section, to accept a certification from the relocatee that he/she has occupied decent, safe and sanitary replacement housing as defined in the department's Residential Relocation Brochure.

(f) Written Notice of Decent, Safe and Sanitary Inspection Approval or Rejection

Relocatees are to be promptly advised in writing of the results of the decent, safe and sanitary inspection of their selected replacement dwelling unit. A simple letter will suffice.

If the unit meets decent, safe and sanitary standards, the letter should be worded as follows:

"The (dwelling/apartment/sleeping room, whichever is applicable) located at (street address or other specific location) which you have selected as a replacement for the unit from which you (are being/have been) displaced by the Missouri Department of Transportation meets the decent, safe and sanitary standards that are applicable to the department's Relocation Program. It is, therefore, an acceptable replacement dwelling unit so far as your relocation payment eligibility is concerned. The department's inspection of the unit was for the sole purpose of determining this particular phase of your eligibility for a relocation payment and this approval provides no assurance or guarantee that there are not unknown deficiencies in the unit or in its fixtures and equipment that may develop at a later date. The department will, therefore, assume no responsibility or liability should deficiencies be discovered in the future."

If the inspected unit does not meet decent, safe and sanitary standards, the letter should be worded in the following manner:

"The department cannot approve the (dwelling/apartment/sleeping room) located at (street address or other specific location) as meeting occupancy standards that are acceptable under the department's Relocation Program for the following reason(s):
(list decent, safe and sanitary deficiencies)
The unit therefore is not an acceptable replacement dwelling unit so far as your relocation payment eligibility is concerned.
If the above-mentioned Relocation Program occupancy deficiencies are later corrected and/or eliminated, we will reinspect the unit for you upon request."

If a rejected unit is later reinspected and found to meet decent, safe and sanitary standards, the relocatee involved should be provided a routine approval letter as previously discussed in this subparagraph.

It is permissible to provide owners of replacement dwelling units, and/or their agents, copies of decent, safe and sanitary approval (or rejection) letters.

NOTE: If a mobile home site is inspected prior to the time a relocatee reestablishes his/her other mobile home thereon, the preceding letter would not apply. In this case, the written decent, safe and sanitary letter should simply state that facilities at the proposed site are, or are not, adequate to enable the relocatee to reestablish a mobile home in a manner that will meet decent, safe and sanitary standards. The relocatee must also be advised in the letter that this inspection does not establish, or reject, his/her eligibility for a relocation payment and that it will be necessary for the department to inspect his/her mobile home after it has been reestablished at a replacement site to ensure that it is situated in a manner that meets the required standards. (A routine approval, or rejection, letter should be provided to the relocatee after the mobile home has been inspected at the replacement site. The previously discussed wording for conventional housing decent, safe and sanitary approval, or rejection, letters can be used with minor modifications as necessary to apply to a mobile home.)

236.8.6 Relocation Assistance Program - Moving Cost Payments

236.8.6.1 Payment Eligibility

(a) Initial Occupant

Any individual, family, business, farm operator or nonprofit organization which qualifies as a displaced person as defined in EPG 236.8.1.3(c), is entitled to reimbursement for the reasonable and necessary expenses of moving personal property when:

(1) the personal property is located on real property that is scheduled for acquisition by the department, either as an entire or partial acquisition,

(2) the personal property is located on remaining land which will be made inaccessible to the relocatee due to being legally and/or physically landlocked as a result of the right of way acquisition,

(3) the owner is in legal occupancy of the real property on which the personal property is located at (a) the time negotiations are initiated for the subject real property, (b) at the time the individual is served a "Notice of Intent to Acquire-Relocation," or (c) at the time the real property was actually acquired by the department,

(4) the owner moves the personal property from the area being acquired or landlocked after the initiation of negotiations for the subject real property, or after receiving a "Notice of Intent to Acquire-Relocation," whichever date is earliest, or

(5) the cost of moving the personal property does not substantially exceed the cost of replacing it at a new location.

If the department's acquisition of real property used for a business or farm operation causes persons to vacate their dwellings or other real property not included in the right of way acquisition, or to move personal property from other real property not acquired as right of way, they may be entitled to the cost of moving such personal property. Eligibility for payment is normally limited to situations in which (1) the business or farm operation is moved to a new location that is not reasonably accessible to the existing dwelling, or (2) it is reasonably necessary for the relocatee to reside on, or in proximity, to the property on which his/her business or farm operation is located.

When payment is made for moving personal property not located within the acquisition, as discussed in the preceding paragraphs, the unit file must be documented to show the necessity for moving such personal property. If doubt exists concerning the necessity for moving items not located within the right of way acquisition, contact the Right of Way Section.

(b) Relocatee Initially Occupies Subject After Initiation of Negotiations (Subsequent Occupants)

Preceding eligibility requirement number (3) makes it possible for persons who initially occupy a proposed right of way parcel after negotiations have been initiated for the parcel to become eligible for a moving cost payment.

Persons who move to a property after the initiation of negotiations and vacate it prior to the time it is acquired are not eligible for moving cost payments unless they are provided a written notice to vacate by the department prior to the time they move.

(c) Relocatee Displaced From Remainder of Partial Acquisition; Not Located Within Right of Way Acquisition Will Normally Be Eligible for Moving Cost Payments.

See EPG 236.8.1.3(c)(4), for an explanation of relocatee's eligibility.

236.8.6.2 General Moving Cost Policies

(a) Policy Concerning More Than One Move

Moving costs cannot be paid for more than one move of the same personal property without prior approval from the Right of Way Section. More than one move will not be approved unless it is clearly in the best public interest to do so. This policy does not apply when it is necessary to move personal property to and from storage.

EXCEPTION: Two moves can normally be justified when personal property is located within a temporary or permanent easement, one move from the easement area and another to return it after the easement (if temporary) reverts to the property owner. (If work is needed later on a permanent easement, no relocation assistance or payments will be provided.)

(b) Distance of Move

There is no limitation on the distance a relocatee moves personal property; however, moving cost payments must not include the expenses involved in moving the personal property more than 50 miles distance. However, when the relocation cannot be accomplished within 50 miles from the subject location the Right of Way Section may allow reimbursement of cost to the nearest adequate and available site.

Moving cost payments can be made to cover the cost of moving personal property on to remaining or other lands owned by the relocatee or his/her landlord.

(c) Owner Retention

When an owner retains any item that was classified as real property, the cost of moving it to a new location is never eligible for reimbursement.

If a retained dwelling is moved without removing the occupant's personal property, the relocatee can still be paid a moving cost payment based on the "Fixed-Payment Moving Cost Schedule." No additional moving cost payment will be made. If, however, furnishings are removed during the time the building is being relocated, relocatee could be paid the actual cost of removing, storing and replacing the subject furnishings, or the fixed-payment option in lieu of actual costs.

(d) Two or More Families Occupy Same Single-Family Dwelling Unit

In most instances, the term "families" is used in explaining the procedures in this subparagraph; however, the principles and instructions also apply when one family jointly occupies a single-family dwelling unit with other individuals who are not a part of the family.

Joint-occupancy families are entitled to separate moving cost payments if they are also eligible for separate replacement housing or rental subsidy payments.

(1) Separation After Displacement

In some instances, two or more families living together in the same single-family dwelling unit prior to displacement, will move into separate dwelling units after being displaced. When this occurs, each family can claim a separate moving cost payment, either the actual cost of moving their portion of the personal property involved or a payment based on the appropriate Fixed-Payment Moving Cost Schedule.

When the payment is based on the fixed-payment schedule, each family can be paid from schedule A, as discussed in EPG 236.8.6.8(c), for the number of rooms they furnished plus $100, see section B of the Fixed Payment Moving Cost Schedule, per room for other rooms that were furnished by the other families in which the claimant had free and unlimited sharing privileges.

If one family provided all of the furnishings in the dwelling unit, that family will be paid from schedule A for all of the furnished rooms and the other family will be paid from schedule B, which relates to dwellings furnished by other parties, for the number of rooms they privately and jointly occupy. (Families which share a room that is jointly furnished, neither family has enough personal property therein to qualify for a full room, can each be paid $100, see section B of the Fixed Payment Moving Cost Schedule, for the jointly furnished room.)

(2) All Families Relocate Together

Families who live together prior to displacement will not be entitled to separate moving cost payments if they move to the same single-family replacement dwelling unit and continue to live together after displacement, regardless of the circumstances involved.

(a) Separate Individuals Occupy Same Single-Family Dwelling Unit, Including Married Couples that are separated or Divorced After Initiation of Negotiations.

If two or more eligible individuals with no identifiable head of household occupy the same single-family dwelling unit, they are to be considered as one "family" so far as moving cost payments are concerned and only one payment will be made regardless as to whether or not such individuals occupy the same replacement property. In such instances, all parties involved must sign the moving cost claim and the payment check must list as payee all persons who signed the claim. (An exception to this policy can be made, with approval from the Right of Way Section, if it is not reasonably possible or practical to issue one check due to hostilities between the individuals involved. In this case, the one payment that would have been made jointly to the relocatees can be divided among the eligible individuals.)

(b) Personal Property Sold After Initiation of Negotiations and Prior to Displacement

Fixed-Payment Option

If the owners of personal property select the "fixed-payment" moving cost option sell or otherwise dispose of their personal property prior to its being removed from the subject parcel, they shall be entitled to the fixed payment under schedule B of the Fixed-Payment Moving Cost Schedule after such personal property has been removed from the right of way. The fact that the personal property was disposed of prior to its removal from the subject parcel has no effect on the eligibility of the relocatee to receive his/her fixed moving cost payment. (The person who purchased the personal property involved will not be eligible for reimbursement of the cost of moving it and such person is not covered by the policy discussed in EPG 236.8.6.1(b) even though the personal property had not been removed by the party who purchased it at the time the department acquired the subject real property.)

Actual Cost Option

If the owners of personal property select an "actual cost" moving cost payment, then sell or otherwise dispose of any of the personal property involved to another party prior to the time it is removed from the subject parcel, they will not be entitled to reimbursement for the cost of moving the items that were sold or otherwise disposed of. The party who acquired the subject personal property may be eligible for a moving cost payment under the policy discussed in EPG 236.8.6.1(b). (Contact the Right of Way Section if payment eligibility problems are encountered.) If a business, farm or nonprofit organization is involved, the original owner, who owned the items at the initiation of negotiations, may be eligible for a "Tangible Property Loss" payment relating to the items sold and/or disposed of (EPG 236.8.6.4).

Department policy specifically prohibits relocation moving cost payments for items that are sold to customers of a business, farm operation or nonprofit organization, as well as the cost of moving items that are sold to customers and delivered by the relocatee.

Moving cost payments to businesses, farm operations and nonprofit organizations are intended to reimburse qualified relocatees for the actual reasonable cost of moving items of personal property owned by them from the subject property to the relocatee's remaining or replacement property and is not intended to make payments covering the removal of merchandise, stock, or trade items sold by the relocatee in the conduct of business, farm or nonprofit operation and carried away by or delivered to the customer/buyer.

NOTE: District personnel shall be responsible for detecting major and/or obvious changes in the quantity of personal property involved, which will substantially affect the moving cost payment amount, and also for ensuring that the cost of moving items that were sold or otherwise disposed of are not included in the moving cost claim, if such costs are sufficient to substantially affect the amount of the moving cost payment. (EPG 236.8.6.9(b), and (c), which require an inventory of personal property involved if a business, farm or nonprofit organization is involved.)

(c) Subject Real Property Sold to Another Party

If a property owner sells his/her real property which is needed as right of way to another party after initiation of negotiations, and not directly to the department, and as a result, vacates such property prior to the time possession is required by the department, he/she will not be entitled to a moving cost payment as the displacement will be necessitated due to the sale of the property and not due to the acquisition. (A variety of circumstances can be encountered when a property owner sells to another party; therefore, if questions arise concerning moving cost payment eligibility, provide all facts to the Right of Way Section and request an eligibility decision.)

(d) Payment Assurance to Moving Firms

It is possible that relocatees, whose moving cost payments are to be based on "actual costs," may not be financially able to employ a moving firm and pay for their move prior to receiving a moving cost payment from the department. When this situation exists, it is possible that moving firms will be unwilling to conduct the move without assurance that they will receive payment. In such instances, one of the three following actions should be taken.

1. Provide the relocatees a letter confirming the moving cost payment offer (based on the lowest moving cost bid or estimate received) which they can present to the moving firm as proof that they will receive a payment from the department that will enable them to pay the mover.

2. The relocatees can request, in writing, that the district office forward the moving cost payment check to the moving firm in lieu of having it mailed directly to them. (The check would be made payable to the relocatees in the routine manner and no change would be made in any procedure, except that the check would be mailed to the mover.) This action will ensure the mover that he/she can be present when the check is cashed.

3. The moving firm can be paid directly by the department for conducting the relocatee's move if the relocate and moving firm agree in writing that this course of action is acceptable. Under this procedure the relocatee's name will not appear on the check and the check will be forwarded directly to the moving firm. If this course of action is considered necessary, the district must prepare an agreement which specifies that the department will pay the designated moving firm a specified sum for moving the personal property of the relocatee from one location to another (use address or locations) and that both the relocatee and moving firm are agreeable to this payment procedure. The relocatee, the moving firm and the district engineer must sign the agreement. The moving firm will be reflected as payee on the claim and on the payment check.

When this course of action is used, make the following notation on the back of the claim form: "A properly executed agreement is on file in the district office authorizing direct payment to the moving firm."

The relocatee may also claim incidental moving costs that were not included in the moving cost claim that was paid to the mover. The district must be sure that the claim covering incidental costs does not include any items that were included in the original moving cost claim. Insert the following notation on the back of the claim covering the incidental expenses: "Routine moving costs are being paid directly to the moving firm as per written agreement on file in the district office. The incidental costs listed in this claim are not included in the payment being made to the mover."

Actions numbered (2) and (3) are not to be used unless the move cannot be otherwise successfully completed, and the third action is not to be used unless and until the first two have been specifically rejected, and is not to be considered as desirable and/or routine procedure. (Actions numbered (1) and (2) can also be used when a payment based on the fixed-payment schedule is involved.

(e) Two Bids or Estimates Not Available

The procedures for accomplishing various types of moves, as discussed later in this section of the manual, normally require that the district obtain at least two moving cost bids or estimates.

When two bids or estimates are required and it is only possible to get one bid, advise the Right of Way Section of the facts involved and ask for authority to proceed on the basis of the one available bid or estimate. If this is not feasible, recommend an alternate solution. (EPG 236.8.6.9(c)(1), also contains specific instructions covering situations when only one estimate can be obtained when a business, farm or nonprofit organization is conducting a self-move.) If no bids or estimates can be obtained, recommend an alternate solution to the Right of Way Section.

EPG 236.8.6.9(b)(2), 236.8.6.9(c)(1), and (2), discuss procedures to be applied under different circumstances when moving cost bids and estimates are not available.

(f) Overtime Charges

Moving cost payments must be based on "straight time" rates and not on overtime rates except in cases where it is essential that the move be conducted during "off duty" hours. Prior approval from the Right of Way Section is required before a move involving overtime rates is approved.

Owners can move during hours requiring overtime rates, without approval by the department, and absorb the additional costs. If this is done, the moving cost payment would be based on the lower of two "straight time" bids.

(g) Advertising Signs and Signboards

Outdoor advertising signs/billboards are considered to be real property and are paid for in the routine right of way payment as real estate. Therefore only portable on-premise signs will be eligible for moving costs under the Relocation Program.

236.8.6.3 Incidental Moving Costs

(a) Incidental Costs Applicable to All Moves--Residential, Business, Farm and Nonprofit Organizations

(1) Storage

If the district determines that it is necessary for displaced persons to store their personal property, the actual cost of such storage, not to exceed twelve months can be included in their moving cost claim. The unit file must be documented to explain why such storage was necessary and to justify the amount of the storage charges. The cost of storing personal property on real property being acquired, or on other property owned or leased by the relocatee, is not eligible for payment under the Relocation Program. If the most practical solution is for the personal property involved to be temporarily stored in rented mobile storage units parked on the subject property, such as vans, trailers, etc., the reasonable cost of renting such units may, with concurrence from the Right of Way Section, be eligible for reimbursement.

Moving cost claims that include storage costs must be accompanied by a paid receipt showing the amount paid as storage costs, length of storage period, where the personal property was stored, and if applicable, a breakdown of the storage costs. Storage costs cannot be paid when residential moving cost payments are based on the "Fixed-Payment Moving Cost Schedule," or when a fixed non-residential payment is made in lieu of moving costs.

Should the owners of personal property sell the personal property involved while it is in storage, their eligible storage cost period will terminate at the end of the month in which it is sold and neither they or the buyer shall be entitled to any payment covering the cost of moving such personal property from the storage area.

NOTE: When storage is necessary, the department will normally pay the reasonable cost of moving the personal property to the storage site and at the end of the storage period to a place designated by the relocatee provided the combined distance of both moves, to and from storage, does not exceed 50 miles distance. If the move from storage occurs later than 60 days after the end of the referenced 12-month period, the department will not reimburse the relocatee for the cost of moving the personal property involved from the storage site. (Exceptions for good cause can be recommended to and approved by the Right of Way Section.)

A storage period in excess of 12 months can be approved, with concurrence from the Right of Way Section, if the district determines that a longer period is necessary.

(2) Insurance

The cost of insurance premiums covering loss and damage of personal property while in transit or storage can be included in a moving cost claim based on actual expenses but must not exceed the reasonable replacement value of the personal property involved.

Claims including insurance premiums must be supported by paid receipts showing the amount paid for the insurance and the amount of coverage involved.

(3) Losses in Moving

The reasonable replacement value of property lost, stolen or damaged (not caused by the fault or negligence of the displaced person, his agent or employee) in the process of moving is reimbursable, when insurance to cover such loss or damage was not reasonably available. (This payment is not authorized when residential moving cost payments are based on the fixed-payment schedule, or when the fixed-payment non-residential option is selected in lieu of moving costs.) The replacement value of damaged personal property will not be paid if the damaged item can be reasonably repaired.

Before any losses are paid by the department the district must make a thorough investigation, and document the files accordingly, to determine (1) that such losses were not caused by negligence, (2) that damaged items could not reasonably be repaired, and (3) that applicable insurance was not reasonably available to cover the move. Moving cost claims including losses as discussed herein must be accompanied by a narrative resume' from the relocatee advising what losses or damages were experienced and how they occurred, as well as supported statements concerning the values of the items involved.

(4) Packing and Crating

The reasonable costs of packing, crating, unpacking and uncrating personal property are reimbursable incidental moving costs.

(5) Other Moving Related Expenses

In addition to the specific incidental moving costs discussed in the preceding subparagraphs, eligible relocatees can be reimbursed for other moving related expenses (not listed as ineligible in EPG 236.8.6.7) that the district, with Right of Way Section concurrence, determines to be reasonable and necessary.

(6) Low Value/High Bulk

When the personal property to be moved is of low value and high bulk, and the cost of moving the property would be disproportionate to its value in the judgment of the department, the allowable moving cost payment shall not exceed the lesser of:

1. The amount which would be received if the property were sold at the site or

2. The replacement cost of a comparable quantity delivered to the new location.

(b) Incidental Costs Applicable Only to Residential Moves

(1) Removal and Reinstallation Expenses; Appliances and Other Residential Personal Property

The reasonable costs of disconnecting, dismantling, removing, reassembling and reinstalling relocated household appliances, and other personal property are reimbursable.

NOTE: When residential moves are involved, relocatees are expected to accomplish routine tasks necessary to reestablish their residences, such as hanging drapes, pictures, etc., without paid assistance or reimbursement. An exception can be made to this policy when elderly or disabled relocatees are involved who are not physically able to accomplish such tasks, in which case, reasonable payments made by the relocatees to other persons for such services can be reimbursed as an incidental moving cost payment. The cost of altering or modifying residential items of personal property, to adapt it to the replacement dwelling, cannot normally be included as a reimbursable incidental moving cost.)

(2) Cost of Transportation, Meals and Temporary Lodging

When a residential move is involved, except when the fixed-payment option is applied, the costs of transportation of individuals and families to the replacement location are eligible for reimbursement up to a distance of 50 miles. Such costs can be on a mileage basis, computed as one trip from the property acquired to the replacement property, or actual costs if commercial transportation is used.

Transportation costs must be reasonable. If an automobile is used, only one trip (via the most direct route), is eligible for mileage reimbursement. Exception to this one trip policy would be made if the size of the family involved necessitates an additional trip or the use of more than one automobile. The per mile reimbursement rate shall be the rate allowed by the Internal Revenue Service.

The allowable rate for a given year may be obtained from the district Financial Services Department.

NOTE: Make sure that the rate given is the actual IRS allowable rate rather than the allowable rate for reimbursement to MoDOT employees for use of their personal vehicles in conducting department business.

Transportation costs can include special services such as the cost of an ambulance to transport invalid relocatees up to a distance of 50 miles.

The actual reasonable costs of meals and lodging can be paid if it is necessary for the relocatees to "eat out" or spend a night in a motel or hotel because of the move. Meals "eaten out" and time spent in a motel or hotel merely for the convenience of the relocatee are not eligible for reimbursement. Meals "eaten out" during the time the relocatee's kitchen appliances and/or utilities are disconnected and overnight commercial lodging during the time the relocatee's bedroom furniture is not available at either location shall be considered reasonable. Lodging costs must not exceed routine rates charged in the area and meals must not exceed the per diem rates as identified at Office of Administration – State Meals Per Diem. Receipts will be required to prove that such expenditures were made and the actual costs involved.

When the actual move exceeds 50 miles, transportation costs as discussed herein shall be prorated and those applicable to a 50-mile move may be reimbursed. If an exception was made to the 50-mile payment limitation under the procedure authorized in EPG 236.8.6.2(b), it will also apply to the transportation costs discussed in this section.

The temporary lodging provisions are not to be used to house relocatees while other quarters are being acquired or constructed, as comparable replacement housing must be available for occupancy prior to the time the relocatee is required to move.

(3) Nonreturnable Mobile Home Park Entrance Fee

Nonreturnable mobile home park entrance fees at the replacement site are reimbursable as incidental moving costs. Reimbursement for such fees cannot exceed the entrance fee charged by the selected comparable replacement mobile home park on which the relocatee's RHP was based.

Also see EPG 236.8.6.8(e)(1), which explains a circumstance under which mobile home sales tax can be paid as an incidental moving cost.

(c) Incidental Costs Applicable Only to Business, Farm and Nonprofit Organization Moves

(1) Removal and Reinstallation Expenses--Machinery, Equipment and Other Personal Property

The reasonable costs of disconnecting, dismantling, removing, reassembling and reinstalling machinery, equipment and other personal property can normally be included in moving cost payments that are based on actual moving expenses.

The reasonable costs of making modifications in the personal property as necessary to adapt it to the replacement structure, replacement site, or to the utilities at the replacement site, are reimbursable incidental moving costs. The cost of modifications necessary to adapt the utilities at the replacement site to serve the personal property are also reimbursable.

Furthermore, the cost of extending utilities to the replacement site, for example, from the right of way to the replacement building or improvement, are reimbursable.

The costs of making modifications in, or physical changes to, the real property at the replacement location are also not reimbursable except as provided for in EPG 236.8.6.6(a)(2).

If removal and reinstallation costs, not included in routine moving cost bids or estimates, are expected to exceed $1,000, the district must obtain two bids or estimates covering the removal and reinstallation costs. Reimbursement for this expenditure cannot exceed the lesser of the bids or estimates.

When compensable removal and reinstallation expenses are not included in the commercial mover's bill, the relocatee must attach paid receipts to his/her moving cost claim showing the separate costs related to each item involved. If such costs are included in the mover's bill, they must be itemized on the receipt in a manner that they can be identified.

(2) Licenses and Permits

The cost of any license, permit or certification required of the displaced person at the replacement location is reimbursable; however, the payment will be limited to the prorated cost applicable to the unexpired term of any existing license, permit or certification in effect at the displacement property.

(3) Professional Services

The reasonable costs of professional services necessary for (a) planning the move of personal property, (b) moving the personal property, or (c) installing the relocated personal property at the replacement site, are reimbursable.

Reasonable "out-of-pocket" fees paid to consultants for preparing inventories of personal property as required in EPG 236.8.6.9, are normally reimbursable.

Relocatees should be encouraged to submit proposals for obtaining professional services, including the anticipated costs, to the district for prior approval.

(4) Re-lettering Signs, Replacement of Stationery and Notices of New Location

Actual reasonable cost of re-lettering signs and replacing stationery on hand at the time of displacement that is made obsolete as a result of the move are reimbursable.

The actual and reasonable costs of printing and mailing, or of publishing notices advising customers and others who need to know of the new location of a relocated business, farm operation or nonprofit organization are reimbursable. A pre-determined maximum expenditure should be agreed upon between the district and relocatee for this item of cost before a payment commitment is made.

(5) Search for Replacement Site

The owner of a displaced business, farm operation or nonprofit organization can be reimbursed for the actual reasonable and documented expenses incurred in searching for a suitable replacement property, not to exceed $2,500.

Applicable expenses can include:

1. transportation--based on actual fees charged for commercial transportation or allowable IRS mileage rate when a private auto is used,

2. meals away from home--not to exceed the per diem rates identified at Office of Administration – State Meals Per Diem,

3. lodging away from home--not to exceed standard rates charged by motels or hotels in the area,

4. the value of time actually spent in the search, based on the applicable and reasonable salary or earnings of the person(s) making the search. A statement of the time and hourly (or daily) wage rate must accompany the claim, and

5. fees paid to a real estate agent, broker or other consultant to locate a replacement property, exclusive of any fees or commissions related to the purchase of such site.

6. time spent in obtaining permits and attending zoning hearings

7. time spent negotiating the purchase of a replacement site based on a reasonable salary or earnings.

All expenses claimed (except value of time spent in the search) must be supported by receipt bills.

Otherwise, eligible search costs incurred prior to the initiation of negotiations are reimbursable if (1) they were incurred due to reasonable anticipation of the property being acquired for a highway project, and (2) the relocatee becomes eligible for a moving cost payment.

(6) Costs of Attempting to Sell Personal Property

The reasonable cost incurred in attempting to sell an item of personal property that is not to be relocated is reimbursable.

(7) Purchase of Substitute Personal Property

If an item of personal property, which is used as part of a business, nonprofit organization or farm operation, is not moved but is promptly replaced with a substitute item that performs a comparable function at the replacement site, the relocatee is entitled to payment of the lesser of:

(a) the cost of the substitute item, including installation costs at the replacement site, minus any proceeds from the sale or trade-in of the replaced item, or

(b) the estimated cost of moving and reinstalling the replaced item, based on the lowest acceptable bid or estimate for relocating the item including incidental costs, but excluding any allowance for storage. (One bid or estimate is acceptable in determining the estimated cost of relocating an item when a low cost and/or uncomplicated move is involved.)

This procedure should be recommended to relocatees when it will cost more to move an item than to replace it in kind or with a suitable substitute at the replacement site. (If the relocatee insists upon moving the item, request procedural advice from the Right of Way Section.)

If a situation is encountered where the cost of moving an item that cannot be replaced or suitably substituted is substantially more than its value, provide all facts to the Right of Way Section and request procedural instructions prior to making a commitment to the relocatee. Facts submitted must clarify the importance and/or necessity of the item in carrying out the relocatee's business, farm or nonprofit operation.

236.8.6.4 Tangible Property Losses

The owners of displaced businesses, farm operations or nonprofit organizations (either partial or complete displacement), who are eligible for a moving cost payment, can elect not to move some, or all, of their personal property and be reimbursed for the monetary loss they will experience by not moving such items provided:

1. that such loss does not exceed the estimated cost of moving the item(s) involved, and

2. the relocatee made a bona fide effort to sell the items involved unless the district determines that such effort is not necessary (items "traded-in" on replacements will be considered as having been sold).

Relocatees should not be excused from the requirement in 2 above unless it is rather obvious that the item(s) involved have no resale value. (When the district determines that an effort to sell is not necessary, the unit file must be documented to justify the decision.)

The fact that relocatees claim tangible property losses for some of the items involved has no effect on their moving cost claim covering other items that were relocated. The district must be very sure, however, that the cost of moving items included as a tangible loss are not also included in a moving cost claim. (Items for which tangible property losses are paid must not be included in moving cost inventories, bids and estimates or moving cost agreements.)

The tangible property loss payment will be the lesser of:

1. the depreciated in-place value of the item, less the proceeds from its sale, or

2. the estimated cost of moving the item including disassembling and reassembling, but with no allowance for storage, or

3. for reconnecting a piece of equipment, if the equipment is in storage or not being used at the acquired site.

The term "depreciated in-place value" is synonymous with "fair market value of the item for continued use at the displacement site."

Items "traded-in" on replacements will be considered as having been sold.

When payment for property loss is claimed for goods held for sale, the in-place value will be based on the cost of the goods to the relocatee, not on its potential selling price.

The following procedure is applicable when eligible displacees desire to claim tangible property losses:

Step One: Ask the relocatee to prepare a statement showing the depreciated in-place value of each item involved. (The statement must explain and support the assigned in-place values.) If the district disagrees with the depreciated values shown in the statement, it should obtain its own value estimates for use in determining the property loss payment.

In addition, the statement must show the proceeds from the sale of each item and the resulting net property loss assigned to each item. (The proceeds from the sale or, if applicable, the trade-in value allowance in the purchase of a substitute item, must be documented.)

Step Two: Prepare or obtain an estimate of the cost of moving the items involved to the replacement site, normally not to exceed 50 miles distance. (If the operation is discontinued, the moving cost estimate will be based on a moving distance of 50 miles.)

Step Three: Determine which is lesser, the net losses determined in step one or the moving cost estimate obtained in step two. The relocatee will be entitled to the lesser amount as a tangible property loss payment.

Copies of the relocatee's statement and moving cost estimate should be attached to the file copy of the moving cost claim.

Note that the relocatee's costs in selling the items involved can be included in the moving cost claim as an incidental moving cost; therefore, such costs are not considered in determining the tangible property loss payment.

A space is provided on the moving cost claim form for claiming tangible property losses.

236.8.6.5 Junkyards

Before paying for moving a junkyard, the district must determine that it is a legal operation. If it is not a legal operation, the owner will not be eligible for a moving payment. To obtain a determination concerning the legal status of each junkyard encountered, contact the Outdoor Advertising Manager, and provide answers to the following questions.

(a) Is the junkyard owner also the owner of the real estate on which it is located? If so, when did they purchase the real property? If rented, when did they occupy it?

(b) Was the junkyard established before or after the real property was purchased or, if applicable, rented?

(c) How far is the junkyard from the nearest highway and the type highway involved?

(d) Is it visible from the highway, and if not, why not?

(e) Is the junkyard properly licensed?

(f) Is it located within a city limits? If so, which city?

It is also necessary, before a moving cost payment can be made for relocating a junkyard, that it be relocated on a legal site and in a legal manner. (If doubt exists concerning its legality after the move, the Outdoor Advertising Manager should again be contacted for a decision.)

If a junkyard was a legal operation prior to the highway acquisition, and if it is reestablished as a legal operation after the move, and if the owner is otherwise eligible, the department will pay a business moving cost claim in the same manner as any other business.

Eligible junkyard owners can also be reimbursed for the cost of moving the personal property (scrap) to a disposal site or recycling center where scrap is sold and physically destroyed. (Under no circumstances, however, can the owner become eligible for a moving cost payment if the personal property is sold and/or delivered to any person, company or firm who will retain or resell it as scrap.)

Even though a junkyard is illegal, and as a consequence a routine moving cost payment cannot be made, the owner can still normally be paid for moving tools and equipment, other than junked car bodies, such as welding apparatus, hoists, air compressors, lathes, etc. Under this condition, he/she can also normally be paid for moving automotive or machinery parts that have been removed from disabled vehicles or equipment and placed in stock for sale. The portion for which the department will not pay moving costs, when the operation is illegal, normally relates to junked car bodies and parts.

236.8.6.6 Reestablishment Expense

In addition to the moving payments previously described, a small business, as defined in EPG 236.8.1.3(1), farm, or nonprofit organization may be eligible to receive a reestablishment payment not to exceed $25,000. This payment is for expenses actually incurred in relocation and reestablishment at a replacement site and does not apply to part-time businesses in the home that do not contribute materially to the household income as defined in EPG 236.8.1.3(o). Utilize RA Form 236.8.6.6 (Relocation Business Reestablishment Cost Agreement) when advance payments are a necessity.

(a) Eligible Expenses

Reestablishment expenses must be reasonable and necessary, as determined by the department. They may include, but are not limited to the following:

(1) Repairs or improvements to the replacement real property as required by federal, state or local law, code or ordinance.

(2) Modifications to the replacement property to accommodate the operation or make the replacement structures suitable for conducting the operation.

(3) Construction and installation costs for exterior signing to advertise the operation. If the relocatees were paid for a sign at the displacement site, their eligibility will be limited to the difference between what they were paid for the sign and the amount necessary to replace it with a comparable sign. Relocation agents should obtain the amount paid for the sign from the Form 236.6.6.6. Salvage value should be included as part of the replacement cost.

(4) Provisions for utilities from the right of way to improvements on the replacement site.

(5) Redecoration or replacement of soiled or worn surfaces at the replacement site, such as paint, paneling or carpeting.

(6) Feasibility surveys, soil testing and marketing studies, excluding any fees or commissions directly related to the purchase or lease of such site.

(7) Estimated increased costs of operation during the first two years at the replacement site for such items as:

a. lease or rental charges,

b. personal or real property taxes,

c. insurance premiums, and

d. utility charges, excluding impact fees.

The relocation agent must verify that replacement sites were not available which would allow the operation to relocate without increased operating costs. The unit file must contain documentation of this verification.

(8) Impact fees or one-time assessments for anticipated heavy utility usage.

(9) Other items that the department considers essential to the reestablishment of the operation.

In no event can the total reestablishment cost exceed $25,000.

(b) Ineligible Expenses

The following is a nonexclusive listing of reestablishment expenses not considered to be reasonable, necessary or otherwise eligible.

(1) Purchase of capital assets, such as office furniture, filing cabinets, machinery or trade fixtures.

(2) Purchase of manufacturing materials, production supplies, product inventory, or other items used in the normal course of the operation.

(3) Interior or exterior refurbishment at the replacement site which are for aesthetic purposes, except as allowed in paragraph (a)(5) above.

(4) Interest on money borrowed to make the move or purchase the replacement property.

(5) Payment to a part-time business in the home which does not contribute materially to the household income.

236.8.6.7 Ineligible Moving Expenses

The following expenses are not eligible for reimbursement and/or payment under the Relocation Program and must not be included in moving cost claims:

1. The cost of moving structures, improvements or other real property in which the displaced person reserved ownership.

2. Interest on a loan to cover moving expenses.

3. Loss of goodwill.

4. Loss of profits.

5. Loss of trained employees.

6. Any additional operating expenses of a business, farm or nonprofit organization incurred because of operating in a new location except as provided for in EPG 236.8.6.6(a)(7).

7. Personal injury.

8. The cost of preparing the application for moving and related expenses.

9. Any legal fee for representing the relocatee in relocation matters, including appeals.

10. Expenses for searching for a replacement dwelling.

11. Physical changes to the real property at the replacement location of a business, farm or nonprofit organization except as provided for in EPG 236.8.6.6(a)(1)(2)(3)(4) and (5).

12. Costs for storage of personal property on real property owned or leased by the displaced person except as provided for in EPG 236.8.6.3(a)(l).

13 Costs incurred to comply with OSHA, federal, state or local requirements except as provided for under EPG 236.8.6.6(a)(1).

14. Refundable security and utility deposits.

236.8.6.8 Residential Moving Cost Payments

(a) Definition of Residential Moving Costs

Residential moving cost payments discussed in this paragraph relate to all personal property generally classified as household goods, furniture, appliances and any other items used in the establishment and maintenance of a home and is not used in the operation of a business, farm or nonprofit organization. Propane gas tanks owned by the gas company (not treated as structures owned by others in the appraisal) are normally moved under the procedure approved for partial displacement business moves as discussed later in this section.

(b) Residential Moving Cost Payments; General

Relocated individuals or families can be paid the actual, reasonable cost of a residential move accomplished either by a commercial mover of their choice or by themselves as a "self-move," or they can elect to receive a predetermined amount based on the department's "Fixed-Payment Moving Cost Schedule." Each of these three options will be discussed in the following paragraphs.

In order to obtain a moving cost payment, a displaced owner must file a written claim with the district office, on a claim form provided by the department, within eighteen months after the later of the following dates:

(1) the date of displacement, which is the date that the move is completed, or

(2) the date of final payment for the displacement dwelling, including condemnation awards.

Tenants must submit their claims within 18 months after the above-defined date of displacement.

Moving cost payments cannot be made to relocatees until after the move has actually been conducted unless due to severe hardship when an advance payment was authorized.

It is the district's responsibility to ascertain that amounts claimed as moving costs are reasonable and that receipts, statements and other documentation are both applicable and adequate. Required documentation must be retained in the district unit file. Claim forms submitted to the Right of Way Section for payrolling need not be accompanied by these supporting documents.

NOTE: The department will not normally reimburse relocatees for payments to separate movers (a) different mover than the firm which conducts their routine move) for moving works of art, paintings and other specialty items unless (1) the mover who conducts the routine move is unwilling to move such items, (2) the mover is not considered capable, or (3) the mover is not adequately insured to cover the items involved.

(c) Fixed-Payment Moving Cost Schedule

Individuals and families, who are displaced from their dwelling, or from a seasonal residence, can elect to receive a moving cost payment based on the department's "Fixed-Payment Moving Cost Schedule." When a partial residential move is involved and the relocatee (occupant or non-occupant) elects to conduct a self-move based on the fixed-rate schedule, a flat rate of $100 per room or equivalent will be used not to exceed $1,000. (See RA Form 236.8.6.8(d). Enter the total number of rooms in the first blank of no. 1. The second space will be the number of rooms times $100.)

Succeeding owners of a deceased relocatee's personal property who did not also occupy the subject dwelling, and who therefore were not themselves displaced by the acquisition, are not eligible for a "fixed-payment" moving cost payment based on $100 per room not to exceed $1,000.

The fixed-payment schedule is intended to be sufficient to cover a relocatee's entire moving expenses and when a moving cost payment is based on this option, no other incidental moving cost payments will be made.

The approved fixed-payment schedule is displayed as Form 236.8.6.8(c), at the end of this section. The following is an explanation of the schedule, which covers three types of occupants. (EPG 236.8.6.2(d), if two families occupy the same single-family dwelling unit.)

Schedule A: This covers situations in which a relocatee occupies and provides the furnishings for a dwelling unit. The following interpretations of the schedule are applicable.

(1) That an attic, basement, enclosed porch, separate shed or other similar-type storage areas can qualify as a compensable room, provided that such area contains furniture, appliances and/or other personal property reasonably equivalent to a routine furnished room. (Bathrooms, hallways and closets do not qualify and must not be counted as separate rooms.) NOTE: If the amount of personal property in a room or space actually contains more than the normal contents, the room count can be increased accordingly.

(2) That owner-occupants of mobile homes which are classified as real property shall be paid under this subschedule for moving their furnishings in the same manner as owner-occupants of conventional dwellings, based on the number of rooms in the subject mobile home.

NOTE: If an owner retains salvage rights to a mobile home and moves it to a new location, he/she would be entitled to a moving cost payment under the fixed-payment schedule for moving his/her furnishings even though the furnishings were not removed from the unit at the time it was relocated. (If the furnishings were necessarily removed from the unit and moved separately, the relocatee could elect to receive payment based on the actual cost of moving the furnishings. If the furnishings were not removed, the payment would, of necessity, be based on the fixed schedule.) Under no circumstances could the owner be paid for moving a mobile home that was acquired by the department as part of the real property. (Also see EPG 236.8.6.2(c), that provides compatible instructions relating to owners who retain and move their conventional dwellings.)

(3) If mobile home tenants own the furnishings within the unit, they shall be paid under this subschedule as any other tenants of conventional units who provides their own furnishings. Be very sure that each room in the mobile home contains enough detached (movable) furnishings to make it eligible to qualify as a compensable furnished room under the schedule. If some rooms are considered to be ineligible to qualify as a furnished room due to being sparsely furnished, it is proper to combine two or more of such rooms to qualify as one compensable furnished room.

(4) The number of "eligible rooms" on which the fixed-payment amount is based will be established by the relocation agent who is assigned to the unit at the initiation of negotiations and must be compatible with the number of rooms reflected in the Relocation Agent's Report, RA Form 236.8.5.4. If the number of rooms shown in the applicable Relocation Agent's Report differs from the number shown in the Relocatee Needs Questionnaire, the "difference" must be explained under "Comments" on the Relocation Agent's Report.

NOTE: If an eligible relocatee who selects the fixed-payment moving cost option is also conducting a business operation in the home, which does not qualify for a fixed-payment non-residential moving payment, it shall be considered to include the cost of moving all personal property located therein, both residential and business, and no other moving cost payment relating to the expenses of relocating such items will be authorized. (Should a fixed-payment non-residential moving payment be involved, or a separate business move, be very sure that the personal property related to the business is not considered when determining the number of eligible rooms that are to be included in the schedule payment.)

If a business operation, as discussed in the preceding paragraph, is being conducted on the residential property ("residential property" relates to the land on which the dwelling is located and normal in size for a residential building lot in the area), but is in a separate building than the residence, the relocatee shall be permitted to select the fixed-payment option for the residential move and a separate business move (actual costs) covering the personal property used in relation to the business. Be sure that there is no duplication of payment involved. (Also see EPG 236.8.6.8(g)).

Personal property that is merely stored in sheds and "outbuildings" located on the residential property (no business operation involved) shall be included in the fixed moving cost payments, if such option is selected by the owner, regardless of the type of items involved and no separate moving cost payment shall be authorized.

When a right of way acquisition includes an occupied residence located on a parcel larger in size than a normal building lot in the area, including those located on farms, the qualified owner shall be permitted to select the fixed-payment option for the residential move and also claim the actual cost of moving any items of personal property located on such "extra land."

Schedule B: This applies to occupants when the furnishings in a dwelling unit are owned by someone other than its occupant, normally by the landlord in "furnished units." ("Sleeping rooms" would normally fall within this category.)

The occupants of mobile homes who do not own the unit or its furnishings shall be paid by use of this subschedule as any other occupant of a conventional furnished dwelling unit based on the number of rooms in the subject mobile home. The owner of the furnishings cannot be paid a fixed-schedule payment, but could normally qualify for a moving payment based on actual costs.

Mobile home owners and tenants who occupy and leave their furnishings in a mobile home during the time it is being moved, and continue to occupy it after it is relocated, are not entitled to a fixed-payment. (The owner will be paid for moving the mobile home on an actual cost basis.)

(d) Claim Form; Fixed-Payment Moving Cost Payment (RA Form 236.8.6.8(c))

NOTE: Several of the instructions discussed in this subparagraph, as noted, apply to all claim forms used in carrying out the Relocation Program and will not be repeated when other claim forms are discussed later in this manual.

RA Claim Form 236.8.6.8(d), has been developed for the use by relocatees in claiming moving cost payments which are based on the "Fixed-Payment Moving Cost Schedule." This form must be used in making claims of this type.

The following general statements apply to all relocation claim forms.

(1) The claim form is to be completed by the relocatee (with the relocation agent's assistance if requested).

(2) The original claim form is to be signed. If a married couple is involved, both spouses must sign the claim. If the head of a household is single, or legally separated, his or her signature is adequate. If individuals are involved, no head of household, each person who is entitled to a share of the payment must sign the claim.

A minor who is entitled to a relocation payment can sign his/her claim form. If a guardian has been appointed for the minor, the guardian should also sign the claim. In cases where infants or young children are involved, a guardian should always sign the claim on the child's behalf and the minor would not, of course, be required to do so.

Guardians who execute claims should specifically sign as such by signing their name and writing immediately thereafter "guardian for minor(s) (minor'(s)' name(s))".

When cities or political subdivisions are involved, the claim is to be signed by the mayor or other applicable principal executive officer. Business and nonprofit organization claims are to be executed by the president or other principal officer of the firm or organization.

(3) When individuals are involved, the persons to whom the check is to be made payable should be the same as those who signed the claim (see EPG 236.8.12.4(b), concerning payee when down payment escrow agreement is used). In cases where both a minor and his/her guardian sign a claim list both as "payees," in the following manner: "(minor's name) and (guardian's name) guardian for minor (minor's name)." If only the guardian signs the claim, omit the minor's name and reflect the guardian's name in the same manner as set out above, to wit: "(guardian's name) guardian for minor (minor's name)." (If more than one minor is involved, list all of their names in the appropriate spaces.)

Claims from businesses and organizations are normally signed as "(name of business) by (individual), (title of individual)", for example, "Jones Construction Co. by John Jones, President." In this case, the check should be made payable to "Jones Construction Co." An exception would exist when the operation is being conducted under a fictitious name, in which case, the name of the individual must also be included on the check in the same manner as it appeared in the claim signature. Claims from operations being conducted under a fictitious name will normally be signed in the following manner "John Jones doing business as Jones Construction Company."

The amount to be shown on the first line on the back of the form must be the same as the amount claimed and set out in the relocatee's certification on the front of the claim and the amount reflected in the certification on the back of the form.

As noted, the next section on the back of the form is to be completed by the district and division accounting units. The balance of the reverse side of the form must be completed by the Relocation Section.

(4) Claims will not be processed for payment unless the check list "boxes" on the back of the form are checked, or an explanation is provided in "Comments" to justify a negative answer of "unchecked" box. Claims received in the Financial Services Division office that have not been completely filled out will be returned to the district for correction. (All spaces should be filled out or, if applicable, marked "N/A".)

(5) If the claim is approved as submitted by the claimant, the amount so approved should be inserted in the space provided on the first line of the section provided for the district's certification.

The district's certification, which covers three specific points, must be signed by the person assigned the responsibility of carrying out the Relocation Program in that district. In the absence of the individual authorized to sign such certificates (during vacation and sick leave), they may be executed by the district Right of Way Manager. (If someone else is designated to check the detailed items set out on the back of claim forms, such as "Mathematical Computations Checked and Found Correct," etc., it is recommended that his/her, initials also appear on the back of the form.)

(6) If the claim is not approved, the reasons for its rejection must be set out in the last section of the form or, if necessary, on an attached sheet. This section must be signed by the same person authorized to sign certificates as discussed above, and also by the district Right of Way Manager to show that he or she agrees that claim rejection is necessary under the circumstances involved.

Should the district Right of Way Manager desire to approve and submit for payment a claim which the person responsible for relocation, does not agree with, he/she must sign in the first signature space provided and the district engineer must co-sign in the space provided for concurrence.

Detailed instructions concerning this particular claim form are as follows:

The heading is considered self-explanatory.

The term "conventional" used in the first line of the first section should be interpreted to mean any dwelling unit other than a mobile home. The space provided to show if "two or more families" are involved relates to situations where two heads of household are occupying the same unit. (If so, see EPG 236.8.6.2(d)) The space provided to show "two or more individuals" should be used when two or more individuals, with no identifiable head of household, occupy the same dwelling unit. Normally only one payment will be made and the amount thereof will not be changed or affected if such individuals move to separate replacement units. (See Exception in EPG 236.8.6.2(d)(2)(a). In the second section show the addresses and dates as required. If a new house was constructed on the relocatee's remaining property, or other land he/she owned, check only the space entitled "New House Construction." If he/she purchased a site and built a new house thereon, check this space and also the space entitled "Purchased." The last line in this section refers to the subject replacement unit. (Did the department assist the relocatee in finding this particular replacement unit?)

The third section that shows the payment computation, as well as the balance of the front of the form, is considered to be self-explanatory.

Claims processed before the relocatee's new address and phone number are known, and before the occupancy date can be established, must be marked in the appropriate spaces on the form, "Move Not Completed To Date." The district must obtain this information after the move is completed and document the files accordingly.

(e) Residential Move by Commercial Mover; General

Moves in this category include all situations where eligible relocatees employ and pay someone (normally a moving company or trucking firm) to move their personal property from the unit acquired by the department to replacement unit and claim reimbursement from the department for their actual and reasonable expenses. Normally applicable incidental moving expenses paid by such relocatee, as previously discussed under EPG 236.8.6.3, are available for reimbursement under this moving payment option. (Partial displacements are discussed under a separate heading later in this section.)

Step One: The district must obtain at least two lump sum moving cost bids (in duplicate) from commercial movers who are qualified to conduct the relocatee's move. Each bid must reflect the total amount that will be charged for conducting the move.

The relocatee must be given a reasonable opportunity to help select the two moving firms who will be asked to bid on his/her move. This can be accomplished by assembling a list of all certified moving companies in the area which are acceptable to the department. In rural and out-of-state areas, which are not readily served by certified movers, it is permissible to include the names of other local trucking companies who are equipped and capable of conducting the move.

NOTE: The Department of Economic Development, P. O. Box 1216, Jefferson City, Missouri 65102, maintains an approved list of certified movers.

The reasonable preference of the relocatee should be honored; however, the district is not permitted to accept unreasonable requests which would not reflect good business practices, or which involve moving firms not acceptable to the department. If it is not reasonably possible to agree with the relocatee, the district has authority to carefully select qualified movers and to proceed without the relocatee's concurrence.

Bids should not normally be obtained until after the relocatee has selected his/her replacement property so that the actual mileage involved will be considered. (See EPG 236.8.1.14(d)(l), if the relocatee is permitted to continue in occupancy after the end of the normal 90-Day possession period under an extension of possession agreement.)

The department will not normally pay for bids in this situation as commercial movers will be bidding on an actual job, and if successful, will normally be employed by the relocatee to conduct the move; however, when unusual conditions warrant, reasonable payments can be made for the bids.

Both bids must be on the same basis; for example, both bidders should include or exclude utility disconnections and reconnections. When requesting bids, always specify the exact services that are to be performed by the bidder. If bids are received which are not based on the same services to be performed, they must be revised by the bidder until they are based on compatible services. (If the district has reason to believe that the lowest of the two bids are not reasonable, they should obtain an additional bid from another commercial mover.)

Copies of all bids must be retained in the unit file.

Arrangements for making the move are the responsibility of the relocatee. The department will not contact or employ the mover on behalf of the relocatee and will not supervise the move except under unusual circumstances and then only after specific approval is granted by the Right of Way Section. Approval will not be granted unless the relocatees are physically or mentally incapable of such actions and when they do not have anyone else who is willing and able to do it for them.

Step Two: Submit copies of the bids to the relocatee together with one copy of a blank Moving Cost Agreement, RA Form 236.8.6.11(a). Moving Cost Agreements prepared to provide a firm record of the pre-move agreement between the owner and the department are discussed in EPG 236.8.6.11. The relocatees must be advised to complete their portion of the agreement, reflecting the low bid therein, and return it to the district office for execution by the department. They should also be advised to wait until they receive an executed copy of the agreement from the district before authorizing the moving firm to conduct the move. The relocatees can employ any moving firm they desire to conduct their move; however, their moving cost payment will be for their actual cost not to exceed the low bid reflected in the Moving Cost Agreement.)

As will be noted in the agreement form, the department will pay the relocatee either the actual and reasonable cost of conducting the move (as documented by paid receipts or other proof of expenditure) or an amount equal to the lowest of the two bids, whichever is the lesser. The department will also reimburse the actual cost of eligible (and reasonable) incidental costs as previously discussed.

Step Three: When the Moving Cost Agreement is received by the district from the relocatee, it should be reviewed, and if found proper, completed and signed.

Step Four: After the approved "Moving Cost Agreement" is returned to the relocatee by the department, the relocatee should cause the move to be completed, pay all moving and incidental costs and obtain paid receipts for each separate expenditure.

Step Five: After the move is completed and all applicable costs paid, the relocatee should file a claim for reimbursement using RA Form 236.8.6.12(a). No other claim form will be acceptable under this payment option. The claim must be filed within the 18-month period discussed in EPG 236.8.6.8(b), (RA Form 236.8.6.12(a) is discussed in detail in EPG 236.8.6.12(a)).

(1) Mobile Homes

The owners of mobile homes that have been classified as personal property can claim the actual and reasonable cost of moving the unit to any location within 50 miles distance. The following policy is applicable for both mobile home owner-occupants and non-occupant owners.

The owners of displaced mobile homes must follow the same five steps outlined in the preceding subparagraph to obtain reimbursement for the move. Moving cost bids should be from qualified bidders who are equipped and capable of moving mobile homes. When requesting bids for moving mobile homes, which preferably should be done in writing, always specify whether or not the mover will be expected to replace skirting, steps, underpinning, tie downs, to make utility disconnections and reconnections, and/or to provide any other services necessary to move and reestablish the mobile home. If bids are received which are not based on the same services to be performed by the bidders, they must be revised until they are based on compatible services.

The department will reimburse the relocatee for incidental expenses related to the move, including disconnection and hookup of utilities and appliances. The cost of disconnecting water, sewer and gas service is also available for reimbursement, as is the cost of reconnection to public or private water, sewer and gas systems that are available at the replacement site. The cost of converting gas heating and/or cooling facilities from natural gas to LP gas, or visa versa, as necessary at the replacement site, can be included as a reimbursable incidental expense. The cost of extending water, sewer, electric or other utility lines to or on the replacement site, which is actually a capital improvement to the site, is not eligible for reimbursement as an incidental moving cost.

The reasonable cost of removing "skirting" that was in place around the mobile home at the displacement site and the reasonable cost of reinstalling it at the replacement site can be included as a compensable moving cost expenditure. Should the skirting that was removed at the displacement site not be reusable at the replacement site, for a justifiable reason not caused by carelessness or negligence on the part of the relocatee, the reasonable cost of new skirting, together with its installation cost, can be included in the moving cost payment provided that the relocatee was not otherwise reimbursed for the loss of such existing skirting.

If there was no skirting around the unit at the displacement site, the department will not participate in the cost of skirting at the replacement site unless skirting is specifically required to make the subject mobile home acceptable in the only comparable replacement mobile home site available to the relocatee.

The reasonable "tie-down" costs at the replacement site can be a compensable incidental moving cost if the unit was tied down at the displacement site or is necessary to meet decent, safe and sanitary requirements.

The reasonable cost of moving, or if more economical, the cost of replacing steps, porches, air conditioner platforms and other mobile home appurtenances of this nature (excluding hard surface "pads"), which are owned by the relocatee and which were not considered to be a part of the real property, can be considered as compensable incidental moving costs.

Professional mobile home movers normally provide temporary replacements for missing and unserviceable wheels and/or tires as necessary to conduct a specific mobile home move as a part of their routine moving cost charge. Therefore, the department will not reimburse a mobile home owner for the replacement cost of missing and unserviceable wheels and/or tires, unless the district specifically confirms that the replacement of such items was necessary to conduct the move and that a mover was not available who would provide these items, or that the cost of replacing missing wheels and/or tires was less expensive than employing a mover who would provide these items as a part of his/her moving costs.

The cost of providing a foundation for the mobile home on the replacement site is not a reimbursable moving expense except in instances where the mobile home was located, prior to the acquisition, on land owned by another party and the subject relocatees had provided their own unmovable foundation thereon, in which case, the actual and reasonable cost of providing a comparable foundation on the new site will be considered a reimbursable cost. (The value of such foundations, located on land owned by the same relocatee that owns the mobile home, will have been included in the routine right of way payment to the owner and a "second" payment under the Relocation Program would be considered duplication. The fact that such value was erroneously omitted from the right of way payment will not make the cost of a foundation reimbursable under this program.) The term "foundation," as used in this paragraph, does not relate to or include concrete or other hard surface "pads," even though such pads were built by the relocatee. Pads, due to their relationship to the property, will be considered a part of the real property and the replacement cost thereof cannot be included in moving cost payments.

Those who purchased mobile homes from previous owners (other than mobile home dealers) prior to December 19, 1983, were not required to pay sales tax on the purchase price so long as the unit remained on the site it occupied at the time of purchase. If and when the unit is moved to a different site, the owner must then license the unit and pay sales tax on the amount he/she originally paid for it. Therefore, when a mobile home in this category is displaced by the department, and if the owner is required to pay sales tax as a result of the displacement, it is proper to consider sales tax and license as compensable incidental moving costs.

After December 19, 1983, sales tax on pre-owned mobile homes is due and payable within 30 days after the date of purchase. Failure to comply by the buyer is a violation of law. Therefore, "delinquent" sales tax paid at the time of displacement, but which should have been paid at the time of the owner's purchase, will not be reimbursable under the Relocation Program.

(f) Residential Self-Move

Self moves based solely on the lower of two bids are not eligible for reimbursement.

Individuals and families may conduct a self-move if they so desire, to include both occupant and non-occupant owners of mobile homes which have been designated as personal property based on the ACTUAL AND REASONABLE COST INCURRED to accomplish the move. All costs claimed under this option must be documented using RA Form 236.8.6.8(f).

The relocatees and/or other individuals time required to accomplish the move such as packing, loading, transporting, unloading and unpacking of personal property may be considered as a cost incurred. The hourly rate charged for time shall not exceed the rate per hour paid to employees of local moving companies for the same unskilled tasks. The hourly rate shall be established periodically by district right of way personnel and relocatees advised of the approved rate at the time the moving option is explained.

The names of all individuals involved in the moving of personal property, activity performed, starting and ending time each day, plus total hours worked will be part of the documentation the relocatee is required to submit to the district office. The cost of renting equipment to accomplish the move may be claimed provided paid receipts are furnished.

Mileage reimbursement for personal vehicles used in moving may be claimed at the rate allowed by the Internal Revenue Service. The allowable rate for a given year may be obtained from the District Financial Services Department.

NOTE: Make sure that the rate given is the actual IRS allowable rate rather than the allowable rate for reimbursement to MoDOT employees for use of their personal vehicles in conducting department business. The odometer reading on personal vehicles must be recorded at the beginning and end of the move.

Reimbursement for all incidental costs discussed in this chapter is also available under this moving option. It should be specifically pointed out to relocatees, however, that losses in moving and damages incurred in moving will not be paid if insurance covering such losses was available (though not purchased) and also when such losses are due to the fault, negligence or inexperience on the part of the relocatee or because proper moving equipment was not available to them. All incidental expenses claimed by the relocatee must be documented by paid receipts or other proof of expenditures.

All costs submitted to the department for payment under this moving option shall be reviewed by the relocation agent assigned to the parcel to determine the reasonableness of such costs. If the cost exceeds $1,000, an estimate should be prepared by a right of way employee or commercial mover to determine the reasonableness of the cost. If the estimate is prepared by an employee, previously obtained bids from commercial movers (or previous estimates prepared by employees) to conduct a move on other properties would be a source of information to use in making the estimate. Form 236.8.6.8(f), should be provided to the relocatee to record cost to be submitted to the district.

The 50-mile radius distance rule from displacement property applies to this moving option just as it does to all others; however, the mileage for all necessary trips between the displacement and replacement site are eligible cost even when total miles traveled exceeds 50 miles.

A moving cost agreement is not necessary with the self-move option.

(g) Combined Residential and Business or Farm Moves

If a right of way acquisition from the same property necessitates the relocation of both residential personal property and personal property used in relation to a business or farm operation, and the relocatee selects the "actual cost" payment option (either by commercial mover or self-move), the district has authority to authorize them to include all items involved in one move (the same moving cost estimates, bids, moving cost agreement and claim), or to require the residential and business or farm move to be separated.

The decision as to whether one overall move, or two separate moves, is involved should be based on the amount and type of personal property involved and on its compatibility in relation to being moved by the same mover and with the same moving equipment. (If it is practical to do so, one "combined" move should be conducted. If this is not practical, however, there should be no hesitancy in authorizing two separate moves as the overall cost should not be substantially different.)

If the overall personal property relocation is processed as two separate moves, each should be handled as if the other did not exist so far as bids, estimates, moving agreements and claims are concerned.

If all items involved, residential and business or farm, are handled as one move, it should be considered as a residential move for statistical and reporting purposes.

Should the relocatee claim, and be paid, a fixed moving payment, the district must be very sure that the cost of moving personal property related to the business or farm operation is not included in the department's moving cost payment.

See the second unlettered "NOTE" in EPG 236.8.6.8(c), Schedule A(2), if a relocatee, under a "combined" situation of this type, selects the fixed-payment moving cost option for his/her residential move.

236.8.6.9 Business, Farm and Nonprofit Organization Moving Cost Payments

(a) Business, Farm and Nonprofit Organization Moving Cost Payments; General

Moving cost payments discussed in this paragraph include all moves except those classified "residential" as defined in EPG 236.8.6.8(a). (Moves involving partial displacements are discussed in EPG 236.8.6.10.

Owners of businesses, displaced farm operations and nonprofit organizations can either employ commercial movers to relocate their personal property, conduct a self-move, or have a combined commercial and self-move.

Moves which involve large and/or complicated moving cost payments must be monitored, at both the displacement and replacement sites, by district personnel to the extent necessary to ensure that the personal property involved was actually moved (at the relocatee's expense) to their remaining or replacement property and that the moving cost claim is reasonable and accurate. The unit file should be documented to show that such action was taken. (Also see EPG 236.8.6.2(f), Overtime Charges).

To ensure that the district will have an opportunity to monitor each move, the owners of displaced businesses; farm operations and nonprofit organizations must provide advance written notice of the date the move will begin. Failure to provide the written notice, or to permit district monitoring at both the displacement and replacement sites, can cause forfeiture of moving payment eligibility.

The district has authority to waive this requirement for non-complicated moves, which do not warrant on-premise monitoring. When the requirement is waived, a justification statement must be placed in the unit file.

Applicable Moving Cost Agreements discussed later in this section relate to a 5-day advance written notice of the moving date; however, this period is flexible and can be extended or reduced by the district as necessary to fit a particular situation.

(1) Multi-Family and Single-Family Furnished Rental Units

The owners of furnished multi-family dwellings or furnished single-family dwellings, which they do not occupy, can be reimbursed for the cost of moving such furnishings as a routine business move under the policies and procedures outlined herein.

(2) Entire Displacement; Partial Acquisitions

If the majority of a business property or farm operation is being acquired as right of way, and/or if the right of way acquisition is so severe that the business or farm operation cannot be continued, the owner can be paid for moving all personal property used in connection with the business or farm operation including items located outside of the right of way acquisition, provided that such items are moved within a reasonable time after acquisition normally by the end of the relocatee's authorized possession of the acquired area unless an extended time period is agreed upon in writing between the district and relocatee. The file must be documented to show why the entire business or farm operation must be relocated when a partial acquisition is involved.

(3) Two or More Owners of Personal Property Involved

In instances where several different persons or firms own personal property located on business or farm real property being acquired by the department, each owner is entitled to the cost of moving his/her items of personal property. The claim of each personal property owner would be handled separately.

(4) Buildings Moved With Personal Property Intact

If business buildings are retained by the owner and moved to a new location without the necessity of removing the personal property therefrom, the owner of such personal property would be entitled to a moving cost payment equal to the additional charge, if any, by the "house mover," due to the personal property being left in the building during the time it is being moved. Claims involving situations of this type must be supported by bids showing the cost of moving the building with and without the personal property remaining therein.

(b) Business, Farm and Nonprofit Organization; Commercial Mover

Moves in this category include all situations where the qualified owners of displaced businesses, farm operations and nonprofit organizations employ someone to move their personal property from real estate acquired to a replacement site and claim reimbursement for their actual and reasonable moving expenses. Normally applicable incidental moving expenses paid by the relocatee are available for reimbursement under this moving cost payment option.

If the relocatee moves more than 50 miles distance, the payment will normally be based on the prorated portion of the moving costs that would have been applicable for a 50-mile move. (See EPG 236.8.6.2(b), if the move exceeds 50-mile distance.)

It is permissible for a business, farm or nonprofit organization owner to employ two or more separate commercial movers when necessary, due to the need for specialized moving equipment and/or expertise.

It is also permissible for such owners to conduct a move by employing a commercial mover to move part of their personal property and move the balance as a self-move.

Instructions covering the situations discussed in the two preceding paragraphs are provided in the following paragraphs (EPG 236.8.6.11, Moving Cost Agreements, and 236.8.6.12, Claim Form).

EPG 236.8.6.3(c)(1), if removal and reinstallation costs are expected to exceed $1,000.

(1) Moving Cost Bids are Available

The following procedure is applicable when eligible owners of businesses, farm operations and nonprofit organizations elect this moving cost payment option and it is practical (reasonably possible) to obtain prior moving cost bids from qualified moving firms.

Step One: Obtain an inventory from the relocatee showing the items of personal property that are to be moved. (The relocation agent can assist the relocatee in the preparation of the inventory if it is in the department's best interest to do so.) It is permissible for small items to be grouped into "lots" or to be "lumped" together in some other type of identifiable unit such as a specific number of bins, boxes, barrels, etc. The relocation agent must make an on-site inspection of the items involved and ensure that the inventory is reasonably accurate. He/she must also ensure that none of the items of personal property listed in the inventory are included in the real estate appraisal as real property. (The "Relocation Agent's Report" must show that the on-site inspection was made and that he/she also determined that none of the items involved were included in the appraisal as real property.) Inventories should normally be prepared either (1) at or near the time of the actual move, or (2) at or near the time that the department acquires the subject parcel, whichever occurs first. This will ensure, if the move occurs prior to the date of acquisition, that the inventory will reflect all of the items, and only the items, that will actually be relocated and, if it occurs after that date, that only the items that were on hand at the time the property was actually acquired by the department will be included therein.

If for any reason the relocatee fails to provide the required inventory, so advise the Right of Way Section before proceeding to the next step.

Step Two: The district must obtain at least two moving cost bids, based on the cost of moving the items set out in the above-mentioned personal property inventory, from commercial movers who are qualified to conduct the move. It is highly desirable that the relocatee be given an opportunity to concur in the selection of moving firms who will prepare the bids. (The reasonable desires of the relocatee should be given serious consideration in making the selection.) Bids should not normally be obtained before the relocatee has selected a replacement site so that the bidders will be aware of the actual mileage involved. (See NOTE A at the end of this subsection if an extension of possession agreement is involved.) If the lowest bid appears unreasonable, the district must obtain an additional bid to ensure that the moving cost agreement will be based on an acceptable amount. It is expected that bids will be provided by the selected moving firms without cost as the movers will be bidding on an actual job; however, for good reason and with prior approval from the Right of Way Section, movers can be paid reasonable fees for preparing bids covering a specific move.

Be sure that the bids are prepared on the same basis, same services to be performed by the movers. If bids are received which are not based on the same services, cause the bids to be revised by the bidder(s) until they are compatible.

Copies of all bids must be retained for the unit file.

Step Three: Submit copies of the bids to the relocatee together with a copy of a blank moving cost agreement RA Form 236.8.6.11(b). The relocatee must be advised to complete his/her portion of the agreement (reflecting the low bid therein) and return both copies to the district office for execution by the department. The relocatee should also be advised to wait until he/she receives an executed copy of the agreement from the district before authorizing the moving firm to conduct the move. (The relocatees can employ any moving firm they desire to conduct their move; however, their moving cost payment will be for their actual cost not to exceed the low bid reflect in the moving cost agreement.)

Step Four: The Moving Cost Agreement, when received by the district from the relocatee, should be carefully reviewed, and if found proper, completed and signed. A copy is to be returned to the relocatee and the original retained for the unit file.

Step Five: After the approved Moving Cost Agreement is returned to the relocatee, he/she should provide the 5-day written moving date notice (unless waived by the district) and cause the move to be completed. The relocatee should be sure that he/she retains all receipts and cost documentation necessary to support the claim. (Normally a paid receipt from the mover plus paid receipts covering eligible incidental moving costs will suffice.)

Step Six: After the move is completed, the relocatee must provide the district an inventory of the items of personal property that were actually moved to his/her remaining or replacement property. If all of the items that were included in the original pre-move inventory were moved, the relocatee can use a copy of the same inventory by changing the certification to state that all of the items listed therein were actually moved to the remaining or replacement property. If the items actually moved differ from those listed in the pre-move inventory, he/she can either adjust a copy of the pre-move inventory by "lining off" items that were not moved or prepare a new post-move inventory. (The relocatee can also add eligible items which were omitted from the pre-move inventory, if such items were actually moved, to offset all or a portion of the items that were lined off or removed from the post-move inventory; however, items added cannot cause the payment to exceed the original low bid that was used in the Moving Cost Agreement without specific approval from the Right of Way Section.) In every instance the post-move inventory must contain a statement that all of the items listed therein were actually moved to the relocatee's remaining or replacement property.

Step Seven: The district must conduct an on-site review of the post-move inventory to ensure that it is reasonably accurate and that it does not contain any items of real property that were retained and moved by the relocatee. The "Relocation Agent's Report" must show that this action was taken and that both determinations were made. (If the relocatee moves to another state, making it impractical to conduct a post-move on-site inspection, so advise the Right of Way Section and request instructions.)

If the post-move inventory is substantially the same as the pre-move inventory, or if it reflects an increase in the number of items and/or quantities, the relocatee can be paid the actual moving costs, not to exceed the approved amount in his/her Moving Cost Agreement. He/she can also be paid eligible documented incidental expenses. (If due to extenuating circumstances the district feels that a moving cost payment should be approved which exceeds the low bid reflected in the Moving Cost Agreement, a well-explained and justified recommendation to this effect should be submitted to the Right of Way Section.)

If there is a significant reduction in the number of items and/or quantities listed in the post-move inventory, as compared to the pre-move inventory, take whichever of the two following actions that is applicable.

1. If the mover who submitted the approved low bid that was used in the Moving Cost Agreement actually conducted the move, determine that the charge to the relocatee was appropriately reduced in relation to the original bid that included the cost of moving all items and quantities that were listed in the pre-move inventory. (If it was not appropriately reduced, the district must adjust, or cause to be adjusted, the original low bid amount to eliminate the cost of moving items which were not actually moved. Such adjusted bid amount will be the maximum that the relocatee can be paid, exclusive of documented incidental moving costs.) OR

2. If the actual move was conducted by someone other than the mover who submitted the low bid that was used in the Moving Cost Agreement, it will be necessary for the original bidder to revise his/her bid to eliminate the cost of moving the items and/or quantities which were not actually moved. The revised bid will establish the maximum moving cost payment that the relocatee can receive, exclusive of properly documented incidental moving costs.

If it is impractical to obtain a revised bid from the original bidder, document the unit file and obtain a revised bid or estimate from some other source. (Under this circumstance, commercial movers can be paid reasonable fees for revising their original moving cost bids.)

Step Eight: The relocatee must file his/her claim for reimbursement within the 18-month period discussed in EPG 236.8.6.8(b).

RA Claim Form 236.8.6.12(a), must be used in claiming the payment. The claim should include the actual documented cost of the basic move, not to exceed the amount set out in the Moving Cost Agreement or, if applicable, an adjusted amount as discussed in preceding Step Seven, plus allowable and documented incidental expenditures.

Note that there is no provision for reimbursement for the cost of time spent by the relocatee or his/her employees in moving as the accepted bid from a qualified mover will normally cover the cost of conducting the move in its entirety with minimum assistance or supervision on the part of the relocatee. (An exception can be made, with prior approval from the Right of Way Section, when substantial additional supervision is required of the relocatee due to the unusual complexity of the move. When such exception is made, it will be necessary to modify the Moving Cost Agreement to cover reimbursement of the actual and reasonable cost of such supervision and to specify the documentation that will be required to support this item of cost on the claim, which will be the same documentation required in following EPG 236.8.6.9(c)(2), covering time spent by the relocatee in conducting a move when moving cost estimates are not available. When this cost item is authorized, it is highly desirable that a predetermined maximum supervisory payment amount be established and agreed upon.)

NOTE A: Extension of Possession Involved

If a business, farm or nonprofit organization is permitted to continue in occupancy of the subject property under an Extension of Possession Agreement, take the following actions:

One: Obtain a pre-move inventory of the personal property on hand at the time the department acquires the displacement property, which is normal procedure when the move has not been conducted prior to that time.

Two: Include clauses in the Extension of Possession Agreement to establish that the relocatee understands and agrees:

(1) that his/her moving cost payment will not be made until after he/she actually accomplishes the move and vacates the subject real property,

(2) that his/her payment will cover only the reasonable cost of moving the items of personal property that are included in the pre-move inventory that was prepared at the time the department acquired the real property involved and that the cost of moving items of personal property obtained after such inventory was completed will be borne solely by the relocatee. (It will be permissible to modify this clause to allow the reasonable cost of moving additional specifically named items that were on order, though not delivered, at the time the pre-move inventory was made or, with prior approval from the Right of Way Section, to modify it in some other manner as necessary to ensure that the relocatee will be treated fairly and equitably),

(3) that the amount of the payment (exclusive of approved incidental costs) will be based on the lowest of two bids obtained from qualified movers just prior to his/her future move, covering only the cost of moving the items of personal property included in the above referenced pre-move inventory, plus, if applicable, any other specific item as discussed in (2) above, and

(4) that the relocatee agrees to notify the district, in writing, of his/her intent to move from the subject real property at least five days in advance of the planned moving date, but after a replacement site has been selected, to enable moving cost bids to be obtained and a Moving Cost Agreement to be prepared and executed.

Three: Upon receiving notice that the relocatee plans to vacate the subject real property, obtain at least two moving cost bids under the procedure set out in "Step Two" in preceding subparagraph (b). For benefit of the relocatee, the moving cost bids can be based on the total amount of personal property to be moved, even though additional "noncompensable" personal property was placed on the subject real property after it was acquired by the department; however, such bids must show separately the cost of moving only the items that were included in the pre-move inventory, plus any other specifically approved items. (The approved low bid price for moving the items included in the pre-move inventory, plus the cost of moving any additional items as discussed in preceding subparagraph "two," will be reflected in the Moving Cost Agreement.)

Four: Complete the transaction by following the appropriate procedure set out in Steps Three through Eight in preceding subparagraph (b).

The probability that moving costs will increase during the extended possession period due to inflationary trends, should be considered when determining whether or not to permit a relocatee to continue in occupancy and, if permitted, in determining the amount of the monthly rental fee.

(2) Moving Cost Bids Are Not Available

If it is not practical to obtain advance moving cost bids due to the complexity of a move, the relocatee can be authorized by the district (with prior approval from the Right of Way Section) to conduct the move without them.

When the requirement for obtaining moving cost bids is waived due to the complexity of the move, follow the procedure set out in following EPG 236.8.6.9(c)(2). Due to the anticipated complexity of a move of this type, the relocatee will be authorized to claim reasonable reimbursement for time spent in supervising the move and for the actual time spent by his/her employees in conducting the move, as well as the reasonable operating cost of company-owned equipment used in conducting the move even though the move may be conducted primarily by a commercial mover. (Documentation requirements discussed in EPG 236.8.6.9(c)(2), are applicable.)

If the relocatee intends to employ a commercial mover to conduct the principal portion of the move, the district and relocatee should agree in advance upon a specific moving firm (or firms) to conduct the move. This can best be accomplished by permitting the relocatee to select a moving firm from a listing of certified moving companies that are acceptable to the department. (If the relocatee will not agree to employ a moving firm which is acceptable to the district, so document the file and inform the relocatee that it may be necessary to fully audit all records relating to the move, including the moving firm's records, before his/her moving cost claim will be paid by the department.)

(c) Business, Farm and Nonprofit Organization; Self-Moves

The qualified owners of any displaced businesses, farms or nonprofit organizations have the option of conducting a self-move. Under this option the relocatees will move the personal property and will not employ a commercial moving company to conduct the move.

(1) Moving Cost Estimates are Available

The following procedure is applicable if estimates can be obtained of the amount that would have been charged by a commercial mover for conducting the move. (If the accuracy of the only estimates available is questionable, request advice from the Right of Way Section before proceeding, as it may be desirable to work out an "actual cost" agreement.)

Step One: The relocatee must prepare an inventory of the items of personal property that must be moved as a result of the right of way acquisition. The inventory must identify the items and quantities involved. (Step One in preceding section (b) provides a more detailed discussion of pre-move inventories, which is generally applicable when a self-move is involved.)

Inventories should normally be prepared either (1) at or near the time of the actual move or, at or near the time that the department acquires the subject parcel, whichever occurs first. This will ensure, if the move occurs prior to the date of acquisition, that the inventory will reflect all of the items, and only the items, that will actually be relocated and if it occurs after that date, that only the items that were on hand at the time the property was actually acquired by the department will be included therein.

If for any reason the relocatee fails to provide the required inventory, advise the Right of Way Section before proceeding to the next step.

Step Two: The relocatee must advise the district, in writing, of his/her intent to conduct a self-move and request that the district obtain the necessary moving cost estimates. The inventory must be provided to the district by the relocatee at the time the estimate request is made.

Step Three: Upon receipt of the relocatee's request, a district representative must make an on-site inspection of the items that will be involved in the move and ensure that the inventory is reasonably accurate. He/she must also ensure that none of the items listed in the inventory are included in the real estate appraisal as real property. (The unit file must be documented to show that both actions were taken.)

Step Four: The district must obtain at least two moving cost estimates from commercial movers who are qualified to conduct the move if the moving cost is expected to exceed $2,500. Both moving firms must be presented a copy of the inventory and the estimates are to be based on the items listed therein. The district can pay movers reasonable amounts to prepare such estimates. (Payments for this service would be processed in the same manner as any other routine incidental expenditure chargeable to relocation.) See EPG 236.8.6.3(c)(1) if removal and reinstallation costs are expected to exceed $1,000. (If one estimate can be obtained, but not two, advise the Right of Way Section and ask for concurrence to proceed with the procedure discussed in this subparagraph on the basis of one estimate, or, for using the procedure discussed in following subparagraph (2) that is applicable when no estimates are available, whichever the district feels is most applicable under the circumstances involved.) Moving cost estimates can be obtained from qualified specialists instead of commercial moves when conditions warrant. If the cost of the move is expected to be $2,500 or less, one estimate covering the cost of moving the items listed in the inventory can be prepared by a qualified member of the Right of Way staff.

Estimates should not normally be obtained before the relocatee has selected a replacement site so that the actual mileage can be used. (Limit the estimate to the cost of a 50-mile move if the replacement property is more than 50 miles distance from the subject property.)

Be sure that the estimates are prepared on the same basis as services to be performed by the mover. If estimates are received which are not based on the same services, obtain revised estimates from the mover(s).

Copies of all estimates must be retained for the unit file.

Copies of each estimate are to be furnished to the relocatee with instructions that should he/she desire to proceed with a self-move, he/she should submit two signed copies of a "Moving Cost Agreement" (RA Form 236.8.6.11(c), to the district.)

If the relocatees object to the estimate being prepared by a department employee, or if they reject or seriously question a moving cost estimate prepared by a department employee, the unit file should be documented accordingly and estimates covering the move should be obtained from commercial movers. (The district is authorized to accept only one bid from a commercial mover under this circumstance, in lieu of two, if the file is documented to show that two bids were not justified due to the limited scope of the move.)

NOTE: If an estimate cannot be obtained which is considered reasonable, or if it is obvious that the relocatee can conduct a self-move for a lesser cost than would be charged by a commercial mover, the district should attempt to negotiate a predetermined self-move amount that is lesser than the low estimate. The negotiated amount should be fair to both the relocatee and to the department.

One possible procedure for arriving at an acceptable negotiated amount would be for the relocatee to make an estimate of the cost he/she will experience in conducting the self-move. (The relocatee's estimate must be prepared without knowledge of the amount of the estimates obtained from commercial movers.) Keep in mind that predetermined negotiated self-move moving cost amounts must be less than the lowest estimate obtained from commercial movers. (See NOTE at the end of EPG 236.8.6.11(c), which discusses moving cost agreement modifications when a negotiated predetermined self-moving cost payment of this type is involved.)

If it is not possible to negotiate an amount that is less than the lowest commercial movers estimate provide the facts involved to the Right of Way Section together with a recommended solution.

In either event the unit file must be documented to clearly show the actions that were taken.

Step Five: When the signed "Moving Cost Agreement" is forwarded to the district by the relocatee, it should be reviewed, and if found proper, completed, executed on behalf of the department and returned to the relocatee. A copy must be retained for the unit file.

Step Six: After the approved "Moving Cost Agreement" is returned to the relocatee, he/she should provide the 5-day written moving date notice (unless waived by the district) and complete the move.

Step Seven: After the move is completed the relocatee must present the district an inventory of the items of personal property actually moved to their remaining or replacement property. If they move all of the items that were included in their original pre-move inventory, they can use a copy of the same inventory by changing the certification to state that all of the items listed therein were actually moved to the remaining or replacement real property. If the items actually moved differ from those listed in the pre-move inventory, they can either adjust a copy of the pre-move inventory by "lining off" items that were not moved or prepare a new certified post-move inventory. (The relocatee can also add eligible items which were omitted from the pre-move inventory, if such items were actually moved, to offset all or a portion of the items that were lined off or removed from the post-move inventory; however, items added cannot cause the payment to exceed the original low bid that was used in the Moving Cost Agreement without specific approval from the Right of Way Section.) In every instance the post-move inventory must contain a statement that all of the items listed therein were actually moved to the relocatee's remaining or replacement property.

Step Eight: The district must conduct an on-site review of the post-move inventory to ensure that it is reasonably accurate and that it does not contain any items of real property that were retained and moved by the relocatee. The "Relocation Agent's Report" must show that this action was taken and that both determinations were made. (If the relocatee moved to another state, making it impractical to conduct a post-move on-site inspection, so advise the Right of Way office and request instructions.)

If the post-move inventory is substantially the same as the pre-move inventory on which the approved moving cost estimate was based, the relocatees can be paid the amount of the low moving cost estimate, as reflected in their Moving Cost Agreement, without presenting any additional documentation. They can also be paid eligible documented incidental expenses.

If there is a significant reduction in the number of items and/or quantities listed in the post-move inventory as compared to the pre-move inventory, it will be necessary to request the original estimator who prepared the moving cost estimate used in the Moving Cost Agreement, to revise his/her original estimate (or make a new estimate) to reflect only the cost of moving the items listed in the post-move inventory. (Commercial movers can be paid reasonable fees for revising their original moving cost estimates.) Under this circumstance the district and relocatees can negotiate the amount of the moving cost payment; however, the amount paid (exclusive of incidental costs) cannot exceed the revised moving cost estimate.

If it is impractical to obtain a revised estimate from the original estimator, document the unit file and present a recommendation to the Right of Way Section for obtaining the revised estimate.

Step Nine: The relocatees must file their claim for reimbursement, within the 18-month period discussed in EPG 236.8.6.8(b).

The claim must be submitted on previously mentioned RA Form 236.8.6.12(d).

There is no provision for reimbursement for time spent by the relocatees or their employees in moving as the accepted estimate from a commercial mover will normally cover the cost of conducting the move in its entirety with minimum assistance or supervision on the part of the relocatees. (An exception can be made, with prior approval from the Right of Way Section, when substantial additional supervision is required by the relocatee due to the unusual complexity of the move. When such exception is made it will be necessary to modify the Moving Cost Agreement to cover reimbursement of the actual and reasonable cost of the supervision and to specify the documentation that will be required to support this item of cost on the claim, which will be the same documentation required in following subparagraph (2) covering time spent by the relocatees in conducting a move when moving cost estimates are not available. When this cost item is authorized, it is desirable that a predetermined maximum supervisory payment amount be established and agreed upon.)

NOTE: If an Extension of Possession Agreement is involved, follow the principles discussed in NOTE A at the end of preceding subparagraph (b).

(2) Moving Cost Bids or Estimates Are Not Available

If due to the complexity of the move it is not practical to obtain moving cost bids or estimates the relocatee can be authorized by the district (with prior approval from the Right of Way Section) to conduct the move without them. Under this circumstance, the relocatee will be reimbursed for his/her actual, reasonable and documented moving cost expenditure, not to exceed the cost of a 50-mile move. When a move is conducted under this condition, an RA Form 236.8.6.11(d), "Moving Cost Agreement" will be used. (See EPG 236.8.6.11(d)).

The time the owner and employees of the firm being moved, which is actually spent in conducting the move, can be considered a compensable part of the moving cost claim. If the business owner uses his/her regular foreman and/or other supervisory personnel to provide supervisory services in conducting the move, the time spent by such personnel in actual supervision of the move may also be considered a compensable moving cost expenditure. Also appropriate time charges for the use of equipment owned or hired by relocatee can be included in the claim.

Time charged by the owner shall be based on his/her average earnings. (If a corporation is involved, base the owner's "average earnings" on the salary paid to him/her by the corporation. If the business has not been incorporated, average earnings will be based on his/her share of the business earnings.) The actual wages (based on currently effective salaries or wages paid by the business) paid to employees of the business who are supervisors can be included in the moving cost payment for the time spent in actual supervision of the move. All other charges for labor must be based on either (1) the wage rate being paid such employees by the relocatee, or (2) the hourly rate normally paid by commercial movers to their employees for the same or similar types of labor, whichever is the lesser. Equipment charges must be based on the equipment charge rate used by the relocatee in the conduct of his/her routine business, not to exceed the normal rate applicable for the use of such equipment. (The equipment rate will normally be on an hourly basis and should include a reasonable amount to cover gas, oil, insurance and depreciation.)

Employee wage rates, as referred to above, can include both basic salaries and the prorated cost of social security, workers' compensation insurance and other "fringe benefits" paid by the employer if such costs are properly supported. Administrative and/or overhead costs are not to be included as reimbursable moving cost expenses.

Both labor and equipment charges included in a moving cost claim, when a self-move of this type is involved, must be supported by a certified statement from the owner showing (1) his/her time (hours) spent in the actual conduct of the move: the hourly rate being claimed therefore and how such rate was established, (2) the firm's employees who assisted in conducting the move: by name and job title, the number of hours being claimed for each employee listed, the hourly rate being claimed for each employee and the salary, or hourly wage rate, currently being paid to each employee by the firm, and (3) the specifically named company-owned equipment that was used in conducting the move: the number of hours each item of equipment was used, the hourly charge being claimed for each item, and the routine hourly equipment charge applicable to each item as charged by the firm in its cost records and/or bookkeeping procedure. Care must be taken to ensure that (a) the hourly wage rate charged for employee's services in conducting the move does not exceed the wage rate normally paid by commercial movers to their employees for similar services, (b) that the hourly rate charged for company-owned equipment does not exceed the normal rate that is applicable in the area for the rental of such equipment, and (c) that equipment operator's time is not included in both the hourly rate charged for the equipment involved and also as a separate item of employee labor.

It is permissible for the relocatee to employ commercial movers and/or specialists to conduct portions of the move. If so, the actual, reasonable and documented payments to such movers and specialists can be included in the moving cost payment from the department.

If it is practical to do so, the relocatee must provide a pre-move inventory of the items of personal property to be moved. The inventory should be prepared and reviewed in the manner discussed in Step One in preceding subparagraph (b).

If it is impractical to obtain a pre-move inventory due to the complexity of the operation being displaced, possibly due to large fluctuations in stocks, material or other personal property, obtain concurrence from the Right of Way Section to waive the pre-move inventory requirement and proceed without it. The unit file must be documented to provide justification for waiving the pre-move inventory requirement.) Even though the pre-inventory requirement is waived, it is still important that the assigned relocation agent make an on-site inspection to become familiar with the overall operation and to obtain a general knowledge of the personal property involved.

After the move is completed, the relocatee must submit an inventory of the items of personal property actually moved. (The inventory must include a statement that all of the items listed thereon were actually moved to the relocatee's remaining or replacement property.) It is permissible for small items to be grouped together such as a specific number of bins, boxes, barrels, etc., containing the small items involved. The relocation agent must make an on-site inspection of the items involved and ensure that the inventory is reasonably accurate. He/she must also ensure that none of the items listed were a part of the real property that was retained and moved by the relocatee. (The "Relocation Agent's Report" must show that the latter two actions were taken.) Also see documentation requirements set out on Moving Cost Agreement Form 236.8.6.11(d).

The district must monitor the move, while it is being conducted, to the extent necessary to enable them to ensure that the moving cost payment will be reasonable. District surveillance practices must be commensurate with the anticipated monetary amount involved. In some cases it may be necessary to monitor the entire move, noting the number of company employees involved in the move, equipment used, hours worked, etc. (The 5-day written moving date notice should not be waived when the procedures in this subparagraph are used.)

NOTE A: Extension of Possession Involved

If a pre-move inventory is available, follow the principles and applicable instructions set out in NOTE A at the end of preceding section (b).

If the pre-move inventory requirement has been waived, it will be necessary to work out an agreement to cover the specific case involved. (Submit recommended clauses relating to the latter situation to the Right of Way Section for concurrence before inserting them in the Extension of Possession Agreement.)

236.8.6.10 Partial Displacements; Residential, Business, Farm and Nonprofit Organization

(a) Partial Displacement Moving Cost Payments--General

Moving costs discussed in this subparagraph relate to situations when the occupant of a subject parcel is not displaced, but items of personal property located within a partial acquisition must be moved.

Instructions herein also relate to situations when unoccupied parcels are acquired which contain miscellaneous items of personal property that must be moved.

Owners of such personal property can be reimbursed for their actual and reasonable expenses of moving such items, based either on the cost of a commercial mover or of a self-move.

The relocation of items used in the establishment and maintenance of a home and/or used in relation to a residential property should be considered as a residential partial displacement. All other items should be identified with their appropriate category, business, farm or nonprofit organization.

NOTE: Also see EPG 236.8.7.2(a), if a farm operation is displaced due to a partial acquisition.

(b) Partial Displacement Moving Cost Payments; Commercial Mover

If personal property classified as "residential" is involved in a partial displacement and the owner employs a commercial mover to move the items involved, the procedure outlined in EPG 236.8.6.8(e), is applicable.

If the personal property belongs to, or is used in connection with, a business, farm or nonprofit organization, the instructions in EPG 236.8.6.9(b), are applicable.

(c) Partial Displacement Moving Cost Payments; Self-Move

When personal property classified as "residential" is involved in a partial displacement and the owner, occupant or non-occupant, elects the self-move option, the procedure outlined in EPG 236.8.6.8(f), is applicable or the owner may elect to be paid on the basis of the fixed-payment moving cost schedule with the following conditions.

1. Relocation agent must determine the number of normal furnished rooms or fraction of room the personal property to be moved represents.

2. A rate of $100 per room or fraction of a room will be used to determine moving cost.

3. The total cost of moving the personal property cannot exceed $1,000. If cost is in excess of $1,000, the move must be conducted as outlined in EPG 236.8.7.8(f).

If businesses, farms or nonprofit organizations are involved, EPG 236.8.6.9(a) and (c) apply.

236.8.6.11 Moving Cost Agreements

(a) Moving Cost Agreement--Actual Cost Option; Move Conducted By Commercial Mover; Residential Bids Available (RA Form 8.6.11(a))

Moving Cost Agreement RA Form 236.8.6.11(a) is applicable when residential moves are involved, either total or partial displacements, and the relocatee elects to employ a commercial mover and claim reimbursement for the applicable costs involved.

The relocatee must fill out the first portion (front) of the agreement, preferably with instructions and/or assistance from a relocation agent, and submit it to the district office.

If two families occupy the same single-family dwelling unit who intend to move to separate replacement housing, each must submit a "Moving Cost Agreement."

In completing the form, EPG 236.8.1.3(e) and (f) should be reviewed if any problem is encountered in determining whether a partial or total displacement is involved.

A space has been provided in the heading of the agreement to show whether a conventional dwelling unit or a mobile home is involved. The space headed "Mobile Home" relates only to mobile homes that have been classified as personal property. Mobile homes that have been classified as real property are to be included as conventional dwelling units.

Agreements submitted to the district offices for approval and execution must be reviewed. If it is in proper order, and the relocatee is eligible for moving cost payments under the option chosen, the back of the form will be completed and executed on behalf of the department. The original must be retained by the district (for the unit file) and a copy is to be returned to the relocatee.

Should relocatees claim a moving cost payment that, due to circumstances beyond their control, exceeds the amount reflected in their moving cost agreement, present a written recommendation concerning payment of the claim, together with a resume' of the facts involved, to the Right of Way Section for approval or rejection.

NOTE: The option to use two or more movers, or a combined use of a commercial mover and a self-move, is not available for residential moves except in unusual circumstance, which will require prior approval from the Right of Way Section.

See EPG 236.8.6.1(c), if the relocatee is being displaced from the remainder of a partial acquisition not located within a right of way acquisition.

This agreement is applicable for use between the department and the owners of displaced mobile homes that have been classified as personal property, both owner-occupants and non-occupant owners, if the unit is being moved by a commercial mover. (Change "personal property" to "mobile home" in the second line in the body of the agreement.)

The agreement is also applicable for use between the department and displaced tenant-occupants of a mobile home, relocatee occupies but does not own the mobile home, if the tenant's personal property is to be moved by a commercial mover. (Separate agreements must be executed by the mobile home tenant and the mobile home owner.)

(b) Moving Cost Agreement; Actual Cost Option; Move Conducted By Commercial Mover; Business, Farm and Nonprofit Organization; Bids Available (RA Form 236.8.6.11(b))

Moving Cost Agreement RA Form 236.8.6.11(b), is applicable when business, farm and nonprofit organization moves are involved, either total or partial displacements, and the relocatee elects to employ a commercial mover (moving cost bids are available) to conduct the move. EPG 236.8.6.9(b)(2) is applicable if moving cost bids could not be obtained due to the complexity of the move involved.)

Instructions for completing agreement Form 236.8.6.11(a), as provided in preceding EPG 236.8.6.11(a), also apply to this Moving Cost Agreement.

It is quite possible that the owner of a business, farm operation or nonprofit organization may employ two or more commercial moving firms to conduct their move, due to the need for different types of moving specialists. When this occurs two or more bids must be obtained for each "type" of move involved, and separate moving cost agreements must be submitted for each portion of the move that will be conducted by different moving firms.

If a portion of the move is to be conducted by a commercial mover and a portion as a self-move, it will normally be proper to submit Form 236.8.6.11(b), agreement covering the commercial move and Form 236.8.6.11(c), agreement covering the self-move.

If more than one moving firm is involved, list the items each firm will move either on the back of their specific agreement or a separate sheet attached thereto. If one firm is to conduct the major move and another only a few specialized items, the entry on the back of the first could be "all personal property except (list items excepted)." The other agreement would list those items excepted from the first. The listing must be adequate to enable others inspecting the file to determine a duplication is not involved.

It is also possible that the owners may elect the self-move option to move their routine personal property and employ a commercial mover to relocate items which their own forces are not capable of moving. When this occurs, two separate agreements must be provided, one covering the self-move (normally RA Form 236.8.6.11(c), and the other the commercial move (normally RA Form 236.8.6.11(b)). The items covered by each agreement must be listed either on the back of the agreement or on a separate sheet attached thereto.

(c) Moving Cost Agreement--Actual Cost Option; Self-Move; Business, Farm and Nonprofit Organizations; Moving Cost Estimates Are Available (RA Form 236.8.6.11(c))

This agreement is to be used when the eligible owner of a business, farm or nonprofit organization elects to conduct a self-move and the district is able to obtain moving cost estimates.

Instructions for completing agreement Form 236.8.6.11(a), as provided in EPG 236.8.6.11(a), also apply to this Moving Cost Agreement.

The owner of a business, farm operation or nonprofit organization may elect the self-move option to move their "routine" personal property and employ a commercial mover to relocate items which his/her own forces are not capable of moving. When this occurs, two separate agreements must be provided, one covering the self-move (normally RA Form 236.8.6.11(c)), and the other the commercial move (RA Form 236.8.6.11(b)). The items covered by each agreement must be listed either on the back of the agreement or on a separate sheet attached thereto.

If the entire move is to be conducted as a self-move, only one Moving Cost Agreement (RA Form 236.8.6.11(c)), will be used even though it is necessary to obtain separate estimates for moving different portions of the personal property involved. Reflect the combined total of the separate estimates in the agreement.

See EPG 236.8.6.4, if "Tangible Property Losses" are involved.

NOTE: When a negotiated self-move moving payment is involved, as discussed under "Step Four" in EPG 236.8.6.9(c)(1), it will be necessary to modify Moving Cost Agreement RA Form 236.8.6.11(c), in the following manner:

1. Change the first paragraph of the first section of the agreement to read as follows: "We are willing to move our personal property, as necessitated by the acquisition of right of way by your department for the above highway project, from (present location) to (new address) for $ ."

2. Omit the first sentence in the third paragraph that relates to the lowest estimate amount. (This paragraph will then begin with the sentence that reads "Please advise us etc.")

3. The fourth paragraph should be changed to read as follows: "If there is a significant reduction in the personal property listed in our post-move inventory, as compared to our pre-move inventory, we understand that this agreement will be voided and that our payment will be for a lesser amount that is based on the cost of conducting our actual move."

4. The second paragraph of the second section of the agreement should be modified to read, "We also agree that in the event there is a significant reduction in the personal property listed in your post-move inventory, as compared to your pre-move inventory, this agreement will be null and void and that your payment will be for a lesser amount that is based on the cost of conducting your actual move."

All other portions of the agreement form can be used without modification.

(d) Moving Cost Agreement; Actual Cost Option; Commercial or Self-Move; Business, Farm and Nonprofit Organization; Moving Cost Bids and/or Estimates Are Not Available (RA Form 236.8.6.11(d))

Moving Cost Agreement Form 236.8.6.11(d), is applicable when moving cost bids or estimates (whichever is required for the type of move involved) are not available due to the complexity of the move, either a partial or total displacement.

Instructions for completing agreement Form 236.8.6.11(a), as provided in EPG 236.8.6.11(a), also apply to this moving cost agreement.

If required bids or estimates can be obtained for moving a portion of the items of personal property involved, but not for all of the items to be moved, use two separate agreements (Agreement RA Form 236.8.6.11(b), or Form 236.8.6.11(c), whichever is applicable, covering items included in moving cost bids or estimates and RA Form 236.8.6.11(d), covering items not included in the bids or estimates.) A combination commercial and self-move, with or without cost bids or estimates, can also be approved by using separate appropriate agreement forms covering the different types of moves and/or situations involved.

When this agreement form is used (RA Form 236.8.6.11(d)), relocation agents must ensure that relocatees fully understand the necessity for maintaining cost records and documentation as set out in the Moving Cost Agreement.

NOTE: If tangible property losses are involved, as discussed in EPG 236.8.6.4, provide the facts involved to the Right of Way Section and ask for assistance in writing a Moving Cost Agreement to cover the specific situation.

If the pre-move inventory requirement has been waived, as could occur under the conditions discussed in EPG 236.8.6.9(c)(1), omit Item No. 1 under required documentation in the agreement.

236.8.6.12 Claim Forms - Actual Cost Moving Cost Payments

(a) Claim Form; Actual Cost; Commercial Mover (RA Form 236.8.6.12(a))

RA Claim Form 236.8.6.12(a) is applicable for use by all relocatees who employ a moving firm to move their personal property and claim reimbursement for the actual costs involved. The form is applicable for residential, business, farm and nonprofit organization moves.

The cost of moving two or more types of personal property (for example - residential and business) can be included in the same claim provided that all such personal property was included in the same moving cost bids and in the same moving cost agreement. Such residential and business moving costs could not be combined in the same claim if separate bids were obtained for each type move and/or if separate moving cost agreements were used.

General information concerning claim forms previously discussed in EPG 236.8.6.8(d), also applies to this form.

The following detailed information concerning RA Claim Form 236.8.6.12(a) covers only those points that are most likely to be misunderstood. If any unforeseen problem arises in completing those portions not discussed herein, the Right of Way Section should be contacted for guidance.

In the first section following the heading, include mobile homes that are classified as real property in the space provided for "Residential" and mobile homes classified as personal in the space labeled "Mobile Home."

The second line in this section of the form concerning department assistance in locating replacement property relates to the actual replacement property that the subject relocatee occupied after being displaced.

If a new building was constructed, show whether it was a residential or commercial building in the spaces provided. (This relates only to the major building(s) involved, which actually housed the relocatee and does not include sheds, storage buildings, etc.)

If two or more moving firms are involved and their names and addresses will not fit in the space provided, insert the words "see attached sheet" in the appropriate space.

In the second section of the form show the correct amounts in the proper spaces as required to complete the form.

When only one "Moving Cost Agreement" is involved, the amount on the first line must be the same figure approved in the "Moving Cost Agreement." If two or more agreements are involved, show the combined total of all agreements in this space. (If it is necessary to adjust the original low bid due to a reduction in the post-move inventory as compared to the pre-move inventory, as discussed in Step 7, EPG 236.8.6.9(b)(1), the revised amount should be shown on line one instead of the bid that was included in the moving cost agreement which will have been voided under the circumstances.)

The second line relates to the actual moving cost paid to the moving firm(s), unless the move was over 50 miles distance, in which case, the prorated amount would be shown. If more than one moving firm was involved, show the combined total cost of the basic move. (The "basic move" relates to the cost of services performed by the moving firm and does not include any separate incidental moving cost expenses.)

On the third line show either the amount set out on line 1 or line 2, whichever is the lesser. The amount on line 3 must match the amount shown on either line 1 or line 2.

Storage costs, when claimed on line 4, must be supported as discussed in EPG 236.8.6.3(a)(1). If storage costs were not involved, mark this line "N/A." (The same applies to any other line that is not applicable to a subject claim.)

If a relocatee's personal property is moved into storage, he/she can submit a claim for the cost of moving it from the property acquired as right of way to the storage area as soon as the move is completed, and later submit a separate claim for the storage bill and, if applicable, the cost of moving from storage to the replacement property. (The storage cost and the cost of moving the personal property from storage to the replacement property must be included in the same claim.) Review the NOTE at the end of EPG 236.8.6.3(a)(1), if the cost of moving personal property from storage to a replacement property is involved.

When a separate claim is submitted at a later date for storage and/or a second move, it is not necessary to repeat the factual data included on the original claim; however, the heading of the second claim must be completely filled out. Under "Comments" make a statement as follows: "This is a second moving cost claim covering storage (and, if applicable, movement from storage). Factual data not included on this claim was provided on the original."

When two claims are to be filed under the above circumstances, use the "Exception" space in the relocatee's certificate, on the original (first) claim, to show that the subject claim does not include storage and/or movement from storage. This is the only situation when it is permissible to submit a moving cost claim that does not include full, final and complete payment of moving costs.

The total cost of insurance premiums, if any, as discussed in EPG 236.8.6.3(a)(2), is to be shown on line 5.

EPG 236.8.6.3(a)(3), should be carefully reviewed if losses in moving and/or damages are claimed.

It is possible that different companies are paid removal and installation costs. If so, include the accumulated total of all such billing in the space provided in the claim (Line No. 7) and support the figure with receipts from the companies involved. The various receipts would have to add up to the exact amount being claimed.

If the costs which were incurred in advertising for packing and crating are applicable for reimbursement, as discussed in EPG 236.8.6.3(a)(4), the costs, and any other compensable incidental costs which do not fit into one of the other categories, can be shown on the line designated "Other Incidental Expenses Identified As." These costs must be identified on the same line in the space provided.

As noted, the costs of transportation, meals and temporary lodging are applicable only when residential moves are involved. EPG 236.8.6.3(b)(2), should be reviewed when this type claim is involved to be sure that all required receipts are provided and that the amounts claimed are compatible with the department's policy concerning such payments.

Expenses related to the search for replacement property, to be shown on line 10, are applicable only when businesses, farm operations or nonprofit organizations are being relocated. Review EPG 236.8.6.3(c)(5), when this type claim is involved and remember that the relocatee must provide a certified statement of the time spent in search and of the hourly wage rate that is applicable.

Line 11 has been provided for owners of businesses, farm operations and nonprofit organizations to claim tangible property losses as discussed in EPG 236.8.6.4. Be sure, before approving a claim that includes this type payment, that the eligibility requirements outlined in the referenced subparagraph are complied with and that the required documentation is in the unit file.

Line 12 is for business, farm operations and nonprofit organizations to claim eligible reestablishment cost. Required documentation must be in the unit file to support the payments.

The totals of the amounts shown on lines 3 through 12 must be shown in the space labeled "Total Amount Claimed."

When claims cover partial displacements, so note in the heading and use the form in the same manner as when any other moving costs are being claimed. Spaces that are not applicable for partial displacement should be marked "N/A."

If the claim includes full, complete and final moving cost expenses, make an entry of "no exception" in the appropriate space at the end of the first paragraph in the relocatee's certificate.

The form is to be executed in the same manner as a Fixed-Schedule Moving Cost Claim, which is discussed in EPG 236.8.6.8(d).

The back of the form, considering previous explanations in EPG 236.8.7.8(d), is self-explanatory.

NOTE: In situations when business, farm or nonprofit organization moving cost bids could not be obtained, as discussed in EPG 236.8.6.9(b)(2), mark both lines 1 and 2 on the claim form "N/A" and show the relocatees actual and documented basic moving costs on line 3. Strike the existing wording in line 3 and insert in lieu thereof "actual costs." Explain why this action was taken under "Comments" on the back of the form.

If the claim involves both the cost of moving some items which were included in moving cost bids and the actual cost of moving other items for which moving cost bids could not be obtained, mark lines 1 and 2 "N/A" and change the wording on line 3 to read "basic moving cost payment due." Obviously line 3 should then reflect the amount due for conducting the basic move, exclusive of incidentals. (The amount on line 3 would include the actual, reasonable and documented cost of moving the items not included in a moving cost bid plus the low approved bid(s) covering the balance of the items moved.) Explain what was done and why under "Comments" or, if additional space is required, on an attached sheet.

(b) Claim Computations When Some Items of Substitute Personal Property Involved (RA Claim Form 236.8.6.12(a)).

The cost of substitute items, as discussed in EPG 236.8.6.3(c)(7), must be added to the actual fee paid to the moving firm for moving the balance of the personal property involved and the total thereof is to be reflected on line 2 in the computation section of the claim form. (If the move exceeded 50-mile distance, the actual fees paid for moving the balance of the personal property would be limited to the cost of a 50-mile move, unless the distance limitation had been waived by the Right of Way Section.)

Do not include any incidental costs on lines 4 through 8 that relate directly to substitute items.

(c) Claim Computations When Entire Claim Based on Cost of Substitute Items (RA Claim Form 236.8.6.12(a)).

Normally only lines 2 and 3 need be completed in the computations section of the claim form when the moving cost payment for all of the items involved in the subject claim was limited to the cost of substitute items. Reflect the total of such replacement costs on line 2 and the same amount on line 3. This amount will normally be the "total amount claimed" by the relocatee as his/her moving cost payment. (No incidental costs will be included in the payment under this circumstance; however, it is possible that a "search cost" as discussed in EPG 236.8.6.3(c)(5), could be applicable.)

Make an entry under "Comments" on the back of the claim form to explain that the payment was based on the cost of substitute items as discussed in EPG 236.8.6.3(c)(7).

All other portions of the claim form should be completed in the routine manner or marked "N/A" if applicable under the circumstance.

(d) Claim Form; Actual Cost; Self-Move (RA Form 236.8.6.12(d))

RA Claim Form 236.8.6.12(d) is to be used in all cases when a residential, business, farm operation or nonprofit organization self-move is involved.

The cost of moving two or more types of personal property, for example, residential and business, can be included in the same claim provided that all such personal property was included in the same moving cost estimates and in the same moving cost agreement.

General information concerning claim forms previously discussed in EPG 236.8.6.8(d), also apply to this form.

The following detailed information concerning RA Claim Form 236.8.7.12(d) covers only those points that are most likely to be misunderstood. If any unforeseen problem arises in completing those portions not discussed herein, the Right of Way Section should be contacted for guidance.

In the first section following the heading include mobile homes that are classified as real property in the space provided for "Residential" and mobile homes classified as personal in the space labeled "Mobile Home."

The second line in this section of the form, concerning department assistance in locating replacement property, relates to the actual replacement property that the subject relocatee occupied after being displaced.

If a new building was constructed, show whether it was a residential or commercial building in the spaces provided. (This relates only to the major building(s) involved, which actually housed the relocatee and does not include sheds, storage buildings, etc.)

In the second section of the form show the correct amounts in the proper spaces as required to complete the form.

If moving cost estimates were obtained, and only one "Moving Cost Agreement" is involved, the amount on the first line must be the same figure approved in the "Moving Cost Agreement." If two or more agreements are involved, show the combined total of all agreement in this space.

If the original Moving Cost Agreement was voided, due to the fact that the relocatee did not move all of the personal property included in the cost estimates, show the estimated charge that would have been made by a commercial mover for conducting the actual move on line 1 in lieu of the original approved low bid(s). Show the "negotiated" (agreed) moving cost payment on line 2. (Normally lines 1 and 2 will reflect the same amount.) Complete line 3 in the normal manner.

In situations when moving cost estimates could not be obtained for a business, farm or nonprofit organization move, in which case Moving Cost Agreement Form 236.8.6.11(d), would have been used, mark both lines 1 and 2 "N/A" and show the relocatees actual and documented basic moving cost on line 3. Under this circumstance, "strike out" the existing wording on line 3 and insert in lieu thereof "actual costs." Explain why this action was taken under "Comments" on the back of the claim form.

If the claim involves both the cost of moving some items which were included in moving cost estimates and the actual cost of moving other items for which moving cost estimates could not be obtained, mark lines 1 and 2 "N/A" and change the wording on line 3 to read "basic moving cost payment due." Obviously line 3 should then reflect the amount due for conducting the basic move, exclusive of incidentals. (The amount on line 3 would include the actual, reasonable and documented cost of moving the items not included in a moving cost estimate plus the low approved estimate(s) covering the balance of the items moved.) Explain what was done and why under "Comments" or, if additional space is required, on an attached sheet.

Instructions in preceding EPG 236.8.6.12(a), relating to lines 4 through 12 on RA Claim Form 236.8.6.12(a), also apply to the subject claim.

When claims cover partial displacements, so note in the heading and use the form in the same manner as when any other moving costs are being claimed. Spaces that are not applicable for partial displacement should be marked "N/A."

If the claim includes full, complete and final moving cost expenses, make an entry of "no exception" in the appropriate space at the end of the first paragraph in the relocatee's certificate.

The form is to be executed in the same manner as a fixed-schedule moving cost claim, which is discussed in EPG 236.8.6.8(d).

The back of the form, considering previous explanations in EPG 236.8.6.8(d) is self-explanatory.

(e) Claim Computations When Substitute Personal Property Involved Claim (Form 236.8.6.12(d)).

The cost of substitute items, as discussed in EPG 236.8.6.3(c)(7), must be included in the amount shown on lines 1 and 2 (if line 2 is used) in the computations section of the claim form. Be very sure that there is no duplication of payments, which would exist if the cost of moving such items were also erroneously included in the low estimate and/or in the negotiated moving cost payment. Add the words "plus the cost of substitute items" to the heading on line 1. Do not include any incidental costs on lines 4 through 8 that relate directly to substitute items.

When the moving cost payment for all of the personal property involved is based on the cost of substitute items, show the total amount on line 3. (Mark lines 1 and 2 "N/A".) This will normally be the "total amount claimed" by the relocatee as his/her moving cost payment. (No incidental costs can be included under this circumstance; however, it is possible that a "search cost" as discussed in EPG 236.8.6.3(c)(5), could be applicable.)

In either case, make an entry under "comments" on the back of the claim form to explain that either a portion of the payment, or, if applicable, the entire payment, is based on the cost of substitute items as discussed in EPG 236.8.6.3(c)(7).

All other portions of the claim form should be completed in the routine manner or marked "N/A" if applicable under the circumstance involved.

(f) Moving Cost Claim; Combined Moves Including Both Commercial Moves and Self-Moves

When relocatees employ a commercial mover to conduct part of their move and conducts the balance as a self-move, they should use RA Claim Form 236.8.6.12(d), in claiming their moving cost payment. The following additions and changes should be made in the claim form under this circumstance.

1. Add the words "Combined Commercial Self-Move" at the top of the form.

2. Insert the words "see attached sheet" in the blank spaces on lines 1 and 2 in the computations section of the form.

3. Change line 3 to read "Basic Moving Cost Payment Due." (Show the amount in the blank space on this line that the relocatee is entitled to receive as his/her basic moving cost payment, exclusive of incidentals, including both the commercial move and the self-move.)

4. Attach a sheet explaining how the amount on line 3 was computed. Follow normal procedures in making the determination using applicable policy that applies to each type of move. The amount will normally be a total of the actual cost (or low approved bid) of the commercial move plus the approved moving cost estimate relating to the self-move.

Complete the balance of the claim form in the routine manner.

NOTE:Tenant-Owned LP (Liquified Petroleum) Tanks

The Relocation Agent should estimate the reasonable and customary charge to move the LP tank and use that figure, if acceptable, on the actual cost - self-move claim form. No moving cost agreement is necessary. Liquified petroleum suppliers should be contacted to establish what is reasonable and customary for moving their tanks. Costs could vary depending upon distances traveled, size and accessibility for tank removal.

236.8.7 Relocation Assistance Program - Fixed Payment Moving Payments - Businesses, Farm Operations and Nonprofit Organizations

236.8.7.1 Fixed Payments - Businesses

(a) Payment Eligibility Requirements

The owner of any business that qualifies for a moving cost payment can elect to claim a fixed payment for moving instead of a moving cost payment based on actual cost plus related expenses, provided that the additional eligibility requirements outlined in the following four subparagraphs are satisfied.

NOTE: The terms "fixed payment," "in-lieu payment" "displaced business," "displaced farm operation" "and displaced nonprofit organization payment," and "fixed payment for moving expenses, non-residential moves" are synonymous.

(1) Business must Contribute Materially to its Owner's Income

Only displaced lawful businesses that contribute materially to their (owner's) income can qualify for a fixed moving payment.

The following procedure is a three-point test to determine material contribution. The business must meet one of these tests:

Test 1: Combine the business' average annual gross receipts for the two taxable years prior to the year in which it is displaced and divide the total by two. If the conclusion is $5,000 or more, the business will be considered to contribute materially to its owner's income.

Test 2: Combine the business' average annual net earnings for the same two taxable years discussed in test (1) and divide the total by two. If the conclusion is $1,000 or more, the business will be considered to contribute materially to its owner's income.

Test 3: Step (a): Combine the owner's annual gross income from all sources for the same two taxable years period discussed in test (1) and divide the total by two.

Step (b): Combine the annual gross income produced by the business during the same two taxable years and divide the total by two.

Step (c): Divide the annual gross income produced by the business by the owner’s annual gross income. If the result equals or exceeds 33 1/3% of the owner's annual gross income, the business will be considered to contribute materially to its owner's income.

If the business has not been in operation, or has not been operated by the current owner (relocatee), for the entire two taxable years period, base the above "tests" on the actual period of the owner's operation projected to an annual rate. (Determine the total gross receipts, net earnings or gross income, whichever is applicable for the "test" involved, during the actual period of the current owner's operation. Divide the conclusion by the number of months of operation by the current owner. Multiply that conclusion by 12 to determine the annual average.)

It is permissible, with concurrence from the Right of Way Section, to use a different period, if more equitable and/or different criteria, if the above criteria create an inequity or hardship.

The term "lawful business" relates to any business not prohibited by law. (Businesses operating in violation of zoning ordinances and/or laws, except those legally operating under a "grandfather clause," will be considered unlawful.) It is possible for a lawful business to be operating illegally due to the improper licensing. Lawful businesses operating with license deficiencies will, if otherwise qualified, normally be eligible for fixed moving payments. Relocation personnel are responsible for determining whether or not a business is lawful, but are not required to determine that all licensing requirements have been complied with.

Relocatees who claim fixed payments must provide copies of their federal income tax returns for the two applicable tax years to prove (1) that the business operation meets the "material contribution" test, and (2) for use in computing the amount of their fixed payment. (Only the portion of the tax returns necessary to prove material contribution and average annual net earnings is required.)

Income information provided by the relocatees may be verified with the U. S. Internal Revenue Service if for any reason the amount of net income appears questionable. The owner or officer of any displaced business who claims a fixed moving payment must sign on IRS Form 4506 designating the Missouri Department of Transportation to receive copies of the tax forms necessary to verify income. The district may if there is reason to question income, send this form to the IRS when the relocate submits a signed claim for the fixed payment. The claim may be sent to the division for payrolling; however, the check for the fixed payment should not be delivered to the relocatee until income information provided by them is verified with the copies received from the IRS. The district should obtain copies of the 4506 form from the IRS.

In every instance, copies of federal income tax returns used to support and/or document relocation claims must contain, or have attached, the following signed statement:

"This copy of my 20XX income tax return contains exact and identical information to that contained in my original return submitted to the Federal Internal Revenue Service."

"I/we am/are currently receiving the following nontaxable income.."

The portion of the certification relating to nontaxable income is required only in cases when the "material contribution" eligibility requirement is based on Test (3) discussed on page 1. It is not required when the determination is based on either Test (1) or (2). (As explained in EPG 236.8.8.1(f), nontaxable income is of no consequence in determining "average annual net earnings" for use in payment computations.)

(The relocatee must itemize any tax exempt income currently being received, such as social security payments, welfare payments, etc., that are not included in federal income tax returns.)

Date ____________________________ Signed ____________________________

Should a relocatee's income be so small that he/she is not required to file a federal income tax return, a signed and notarized statement of his/her total annual income and expenses can be accepted in lieu of a tax return.

(2) Requirement Concerning Inability to Relocate Businesses Without Substantial Loss of Existing Patronage

To qualify for a fixed payment, it must be determined that the business cannot be relocated, or in case of a partial acquisition, that it can neither continue to operate on the remaining property or be relocated, without a substantial loss of its "existing patronage."

The word "patronage" as used in the term "substantial loss of existing patronage" relates to either "clientele" or "net earnings." A business that cannot be relocated or continued in its present location without suffering a substantial loss of either its clientele or net earnings meets this eligibility requirement. (When nonprofit organizations are involved, "patronage" relates to membership or clientele.)

When making a determination concerning the ability to satisfactorily relocate the business, keep in mind that a business is assumed to suffer a substantial loss of its existing patronage unless the department proves otherwise. (The business owner should be given the benefit of reasonable doubt concerning his/her ability to relocate.)

When the owner of a business that is being displaced takes the position that the business cannot be relocated (or continue to operate on the remainder property) without a substantial loss of its existing patronage, the district must agree, or

(A) if the business owner is a tenant, locate an available replacement property (which will enable the business to retain its existing patronage) within the same general area that can be rented for an amount that is considered reasonable for the business involved, or, show the business owner how he/she can obtain financing to purchase an available and suitable replacement business property which requires monthly or annual payments that do not substantially exceed the rental fee being paid for the building acquired as right of way by the department,

(B) if the business owner also owns the business property on which it is located, the district must (1) locate an available replacement business property, (which will enable the business to retain its existing patronage) within the general area, that can be purchased for an amount not substantially higher than the amount offered and/or paid for the acquired business property by the department, (2) show the owner a suitable replacement, within the general area, which can be rented or leased for an amount reasonably applicable to the type business involved, or (3) reasonably prove that the owner can build a replacement within the general area for an amount that does not substantially exceed the amount offered and/or paid to him/her by the department for the acquired property. (If the right of way acquisition includes property other than the subject business property, it will be necessary to prorate the department's right of way offer and/or payment to determine the amount applicable to the business property when making the above determination.)

A replacement business location that is available for rent, which meets the needs of the business involved, can be considered a suitable replacement business property if the rental fee for such replacement does not substantially exceed an amount equal to the "cost of owning the subject property." (The "cost of owning the subject property" can be determined by considering the subject's taxes, insurance, upkeep, etc., as well as a reasonable return on the money invested in such property.) The "cost of owning" and "cost of renting" can be computed either on a prorated monthly cost basis or on an annual cost basis.

Displaced business owners who intend to reestablish their businesses after displacement can, if otherwise eligible, qualify for and be paid a fixed payment if they contend that the business will lose a substantial portion of its existing patronage after being reestablished, unless the district disagrees and documents the unit file to provide sound reasons in support of a decision that such loss will not occur.

Additional noncompensable expenses which the owner would experience in moving to and operating at a potential replacement site should be considered when determining whether or not he/she will lose a substantial portion of the existing patronage, for example, the need to borrow additional capital, inability to secure additional financing and other related problems of this nature.

The fact that the owners of a displaced business intend to purchase or establish a different type of business after displacement has no effect on their eligibility for a fixed payment.

The fact that the owners of a displaced business intend to discontinue their business after displacement is not a factor in determining eligibility for a fixed payment. The owners will be eligible for the payment if they meet all eligibility requirements. They will not be eligible for such payment if a replacement business site is available which would enable them to continue their operation without a substantial loss of existing patronage. (This point must be explained to relocatees who advise that they plan to discontinue their operation after displacement and the Relocation Agent's Report must be documented to show that the explanation was so provided.)

NOTE: There is no circumstance that will permit a business owner to be paid a fixed payment and also receive reimbursement for the cost of moving the subject business.

(3) Requirement Eliminating Chain - Store and Multi - Location Businesses (this requirement does not apply to farms and nonprofit organizations).

To qualify for this type payment the business must not be part of a commercial enterprise having more than three other entities which are not being acquired by the department and which are engaged in the same or similar business. (A business which does not contribute materially to the owner's income, using the three-point test discussed in the preceding subparagraph, is not considered "another entity" and does not normally disqualify the owner for receiving a fixed payment.)

To be declared ineligible for a fixed payment under this requirement both the business being displaced and the similar businesses not being acquired must have a common ownership. Businesses and corporations are both considered to have common ownership, even though they are known by different business or corporation names, if their owners are the same individuals.

If family-owned businesses are involved which do not reflect identical ownerships, provide the pertinent facts to the Right of Way Section and request a determination concerning payment eligibility.

Displaced business owners who own other similar businesses not being acquired at the initiation of negotiations for the subject parcel may become eligible for a fixed payment if they dispose of such other businesses prior to actual displacement of the subject business, (provide all facts to the Right of Way Section and request a payment eligibility determination). Relocatees who acquire another similar business after the initiation of negotiations (which is not a replacement for the displaced business) may lose their eligibility for an fixed payment; again provide the facts to the Right of Way Section and request an eligibility determination.

The private owners of a displaced business who are merely operating under a chain store name are qualified for a fixed payment, provided that they meet the other eligibility requirements.

The owner of a displaced business who also owns a corporation which holds title to the property on which the business is located, and, the owner of a displaced business which has been incorporated who also owns the property on which the business is located cannot be paid separate payments for the business and for the corporation. The incomes from both the business and the corporation, which would normally be the average annual net earnings of the business and the average annual rentals paid by such business for the site on which it is located, can be combined, however, in computing the owner's total average annual net earnings on which the one fixed payment will be based. (If some of the business owners and corporation owners, but not all of such owners, are the same persons, contact the Right of Way Section for a determination concerning eligibility for two separate fixed payments.)

If a situation is encountered where the degree of similarity between a displaced business and another business owned by the same person or firm is marginal, the district can, if it so desires, submit its recommended decision to the Right of Way Section for concurrence. (The same is true if the degree of ownership in the "similar business" is so small that the question of payment eligibility cannot be firmly established.)

(4) Requirement Concerning Time and Location

To qualify under this requirement the subject business must be operated by the current owner on the property being acquired at the initiation of negotiations for the subject property OR at the time such property was actually acquired by the department.

"Notices of Intent to Acquire-Relocation" are not normally provided to owners of businesses, farm operations and nonprofit organizations; however, should a notice of this type be provided, the date of the notice will be used, in lieu of the initiation of negotiations date in determining whether or not applicable eligibility requirements have been met.

(5) Businesses Owned by Estates

An estate is eligible for a fixed payment, if otherwise qualified, when the business is owned by the estate is displaced.

(6) Business Sells After Initiation of Negotiations

If the owner of a business scheduled for acquisition sells the business to another party after right of way negotiations are initiated for the subject property, or after receipt of a "Notice of Intent to Acquire-Relocation," they will not normally be eligible for a fixed payment. The new owner of the business, if otherwise eligible, could normally qualify for the payment if they continue the business operation on the subject property until it is acquired.

(7) Displacement Must be the Direct Result of Acquisition

Business owners cannot qualify for a fixed payment unless they are displaced as a direct result of the acquisition of real property; therefore, owners who relocate or discontinue their operation because of a change in the highway such as being placed on an outer roadway, because of changes in the flow or direction of traffic, or because of the removal of crossover connections, or other changes which can be accomplished through police powers and without compensation to the property owners, are not eligible for this type payment. This is true even though the owners may lose a substantial portion of their existing patronage due to the noncompensable changes in the highway.

This policy also applies when a portion of the real property or a compensable right was acquired by the department that did not in itself justify the displacement, even though a noncompensable change in the highway did cause the operation to lose a substantial portion of its existing patronage.

(b) Two or More Business Operations, Same Site and Same Owner

It is often difficult to determine whether different types of business activities conducted on the same property by the same individual or firm actually constitute more than one business operation. If so, the owner of the businesses would be entitled to separate fixed payments for each business that qualified for this type payment. If it is determined that the business activities complement each other and are so closely related that only one actual business is involved, only one fixed payment can be made.

The following are broad guidelines that can be used in making a determination as to the number of actual businesses involved.

(1) When several business activities, located on the same property and operated by the same party, which are closely related and complement each other, are all located within acquisition, they will normally be considered as one business. This is especially true if it is necessary to combine the income from all of the activities to produce a reasonable business profit.

This type situation would probably exist; for example, when one party operates a small "Mom and Pop" store, filling station and small motel all on the same parcel. If, in this type situation, a partial acquisition removes one or more of the separate activities (and leaves at least one), contact the Right of Way Section for instructions as each case of this kind must be judged on its own merit.

(2) If the different activities are not related and if they do not compliment each other, they will normally be considered as separate businesses and the owner will be entitled to separate fixed payments, provided that each business qualifies on its own merits. (It is not necessary that the different business activities be relocated to the same site.)

It is possible that one business, in this type situation, could be relocated without a substantial loss of either its average annual net earnings or clientele and another could not. In this case, the owner could be paid a moving cost claim covering the cost of relocating the one business and a fixed payment on the other.

Other factors to be considered in making a multi-business determination is the extent to which:

(1) the same premises and equipment are shared,

(2) substantially identical or interrelated business functions are carried out and business and financial affairs are commingled,

(3) the entities are held out to the public, and to those customarily dealing with them, as one business,

(4) the same person, or closely related persons own, control or manage the affairs of the entities.

If any doubt exists concerning the number of separate businesses that exist on a parcel, submit all facts to the Right of Way Section for final determination. (Always advise whether the relocatee files separate income tax schedules on the different activities involved or combines and reports the overall income as having been produced by one business operation.)

(c) Businesses Affected by Partial Acquisitions

The owner of businesses located on parcels which are partially acquired for right of way purposes (including partial access acquisition) are not eligible for a fixed payment if they do not qualify as being displaced and are physically and legally able to continue their operation on their remaining property, or if they are able to relocate the business, without a substantial loss of existing patronage.

Business owners who also own the property on which the business is located cannot normally qualify for a fixed payment when the right of way payment is adequate to pay for rearranging their remaining facilities to enable them to continue the operation.

Business tenants of properties owned by persons who receive a right of way settlement adequate to reasonably "cure" the inadequacies caused by the acquisition, or who receive a part of the right of way consideration themselves, which is adequate to provide the "cure," will not normally become eligible for this type of payment. If, however, the real estate owner did not receive a right of way payment that is sufficient to "cure" the deficiencies that prohibit continuation of the tenant's business operation and as a consequence does not intend to correct the deficiencies, the tenant (subject relocatee) will normally be eligible for the payment.

Should a landlord who receives an adequate right of way settlement to enable him/her to "cure" the inadequacies caused by the acquisition elect not to correct such inadequacies, so advise the Right of Way Division office and request specific instructions covering the business tenant's eligibility for a fixed payment.

The future effect of a partial acquisition on an existing business could be highly controversial and decisions made by the district concerning eligibility for fixed payments would have to be well thought out, documented and explained in the unit file. The Right of Way Section will assist in making these decisions when requested to do so. Statements provided in the appraisals concerning costs to cure and the effect of the subject acquisition on future business operations can be very beneficial in making eligibility decisions and can also provide good documentation for the relocation file to support final conclusions.

NOTE: The owner of a business cannot qualify for a fixed payment if he/she elects to continue operating on the property remaining after the acquisition, even though it is mutually agreed that the business will suffer a substantial loss of its average annual net earnings if continued on such remainder, if a suitable replacement business site is available which would enable him/her to relocate and continue the business without a "substantial loss."

(d) Rental Property

If the business is operated at the displaced site solely for the purpose of renting to others, it is not qualified for this payment. This includes building or land rentals.

(e) Junkyards

Owners of legally located and legally operated junkyards can be paid fixed payments if their business operations meet all eligibility requirements.

Legal junkyards displaced under the Highway Beautification Act, which meet routine eligibility requirements, are eligible for assistance and payments under the Relocation Program. Application of the Relocation Program under this circumstance will normally involve unusual and complicated conditions. As a result, the districts should in every case submit proposed relocation payment offers to the Right of Way Section for concurrence prior to making commitments to the relocatees involved.

Fixed payments cannot be made to the owners of illegal junkyards. When an illegal junkyard is displaced, contact the Right of Way Section for special instructions.

(f) Payment Determinations

The owners of a displaced business who qualify for a fixed payment are entitled to an amount equal to the average annual net earnings of their business, not to exceed a maximum payment of $40,000 or less than $1,000.

The term "average annual net earnings" means one-half of any net earnings of the business, before federal, state, or local income taxes have been deducted, during the two taxable years immediately preceding the taxable year in which the business is displaced. (The business will be considered "displaced" on the date that it completely ceased its operation at the subject location.) Any compensation paid to the owners, their spouses and/or dependents shall be included in the computations of the "average annual net earnings." All earnings and compensation should be established by federal income tax returns covering the two-year period. (See information relating to income tax returns in EPG 236.8.7.1(a)(1)).

If the two taxable years immediately preceding displacement are not representative, the district can, with prior approval from the Right of Way Section, base the "average annual net earnings" on a more representative period.

Interest payments made by a business to the owners of the business (interest on money loaned to the business by its owner) cannot be included as a part of the average annual net earnings of the business.

NOTE: When a partial acquisition is involved, the owner of a business who is eligible for a fixed payment, due to being unable to either continue the operation on the remainder of the subject property or to relocate to a replacement site, may elect to continue operating on the remainder regardless of substantial loss of patronage. If so, the business will not actually cease to operate. Under this condition, the business will be "displaced," as the term is used in this section, at the time the use of the area included within the right of way acquisition (or the use of other rights acquired by the department) are denied to the business owner.

(g) Payment Computations

(1) Business Operated Two Full Taxable Years or More

If an eligible business was in operation under the same ownership for two full taxable years immediately preceding the taxable year in which it was displaced, add the net earning from each of the two preceding taxable years together and divide the total by two. The resulting figure represents the average annual net earnings. This amount will be paid to the owner if it exceeds $1,000, and does not exceed $40,000. (As previously stated, if the computed figure is less than $1,000, the minimum $1,000 payment will apply and if it exceeds $40,000, the payment will be limited to the $40,000 maximum.)

Should a loss occur in one year and a gain in the other, the year in which the loss was incurred should be considered as zero income when determining the average net income for the two-year period.

(2) Business Operated Less Than Two Full Taxable Years

If the current relocatee did not own the displaced business during the full two taxable year period, or if it was not located at the displacement site for the full period, the fixed payment will be computed by projecting its net earnings to an annual rate. Procedures for computing payments based on projected earnings are as follows. (Should any of the following procedures produce a fixed payment that is not representative of the business' average annual net earnings, so advise the Right of Way Section and request an alternate computation procedure.)

A - Business Produced Net Earnings During the Two Taxable Years Prior to Displacement.

Divide the total accumulated net earnings for all of the months the business operated prior to the taxable year of displacement by the number of months it operated during the same period and multiply the resulting figure by 12; for example, a business that had been originally established by its owner on August 1, 1984, was located on a parcel acquired by the department in November 1985. The business was required to vacate the parcel in February 1986, (income tax filed on calendar year basis).

Net earnings 1984 = $3,000 (5 months)

Net earnings 1985 = $7,000 (12 months)

$3,000 + $7,000 = $10,000 divided by 17 months = $588.24

$588.24 x 12 months = $7,058.88

Computed fixed payment = $7,058.88

B - Business Produced No Net Income Prior to Taxable Year of Displacement.

If the current owner's business did not produce net income at the subject site prior to the year of displacement, compute the payment in the same manner discussed in "A" above using the total net earnings and total months of operation during the year of displacement. (It is quite possible that the computed payment will not be representative when a brief period of operation is involved. If so, do not hesitate to request an alternate computation procedure.)

When the net earnings produced by the business during the displacement year is used in the payment computations, it will normally be necessary to accept a certified financial statement from the relocatee, instead of a tax return, to document the claim.

C - Seasonal Businesses.

When a seasonal business is involved, one that is "open for business" for a limited period during a normal taxable year, divide the total accumulated net earnings produced during the entire period that the business was in existence (on the subject site and owned by the relocatee) by the total number of months the business operated during its open season, then multiply the resulting figure times the total months of annual open season; for example, a seasonal business was established on July 1, 1984. It has a 3 month open season per year (open to the public June, July and August). The department purchased the parcel in November 1985. Possession passed to department, February 1986.

Net earnings 1984 (operated July & August = 2 months) = $2,000

Net earnings 1985 (operated all 3 months of season) = $3,000

$2,000 + $3,000 = $5,000 divided by 5 (business operated during 5 months of open season) = $1,000 average per month of open season x 3-month normal annual open season = $3,000 average annual net earnings. (Computed fixed payment is $3,000)

NOTE: An alternate procedure should be developed when a seasonal business was purchased by the current relocatee and displaced by the department prior to its "open season." (In this case, there would be no income to project, which would create a nonrepresentative annual net earnings.)

Special computation procedures will also be required when a substantial portion of a displaced business' annual net earnings are produced during a season and a small portion during the balance of the year. Regardless as to when the business is displaced, an unrealistic annual net earning would be developed by merely "projecting" the earnings during the limited period of operation. (A projection of the high earnings during the "busy" season would result in an unrealistic high annual earnings and a projection of the "off-season" earnings would be unfair to the relocatee.)

When these, or other, unusual conditions are experienced, request alternate computation procedures from the Right of Way Section.

D - Other Situations Which May Require Special Consideration in Determining Representative Annual Net Earnings.

When unusual circumstances prevail which indicate that a different period of time (other than the two taxable years prior to displacement) should be used in determining a business' annual net earnings, so advise the Right of Way Section. Conditions which may justify an alternate period could exist when:

1. The relocatee owned the same business while located at a different location during the two taxable years period.

2. The relocatee purchased an existing established business during the two taxable years period.

NOTE: Changes in economic conditions not directly related to or caused by the acquisition will not normally be justification for using an alternate two-year period.

236.8.7.2 Fixed Payments - Farm Operations

(a) Payment Eligibility Requirements

For the owner of a displaced farm operation to be entitled to a fixed payment the department must determine:

(1) That the farm operation contributes materially to its owner's income.

Review EPG 236.8.7.1(a)(1), which is fully applicable when a farm operation is involved.

(2) That the farm operation was owned by the relocatee and existed on the property being acquired by the department at the initiation of negotiations for the subject property, or at the time such property was actually acquired by the department.

(3) That the farm operator has completely discontinued his/her existing farm operation at the present location.

In the case of a partial acquisition, the farm operation will be considered to have been displaced if the property remaining after the right of way acquisition is no longer an economic unit for the same type of farm operation that was being conducted prior to the acquisition. (As a consequence, the farm operation will be considered as being displaced if the acquisition necessitates a substantial change in the principal operation or in the nature of the existing farm operation.) This determination will normally be made during the appraisal process. If the appraisals are not clear concerning this point, the appraisers should be requested to provide addenda expressing and justifying their positions. If there is a difference of opinion, the district Right of Way Manager will make the determination. The unit file must be documented accordingly. (Should the owners of a farm operation who are eligible for a fixed payment due to a partial acquisition move the operation to another location, they could claim a moving cost payment instead of the fixed payment if they so desire.)

NOTE: Before approving a farm fixed payment when a partial acquisition is involved, the district must determine, and comment in the unit file, that (1) all farming operations have completely ceased on the remaining property, (2) that any farm operation being conducted on such remainder is substantially different in nature from the operation that existed prior to the acquisition, or (3) if the same, or not substantially different, type of farm operation is being conducted on the remainder as existed prior to the acquisition, that such operation has of necessity been so substantially reduced in size as compared to the prior operation that the change is equal to a displacement. (Concurrence must be obtained from the Right of Way Section before a payment can be approved when the last situation exists.

If the acquisition causes a farming operation to be displaced, the owner is entitled to this payment, if otherwise eligible, even though other replacement farms are available for purchase or rent in the area. The relocatee can relocate and continue the farm operation at a new location without affecting his/her eligibility for this type payment.

If farm operators are using two separate farms in their overall farming operation, they are not normally entitled to a fixed payment even though one of the units is reduced to an uneconomic unit by a right of way acquisition if they can continue to operate on the remaining unit without a substantial reduction or change in the overall operation. If the operators have two distinctly different farm operations at two different and disconnected locations (neither operation related to or dependent on the other), they can be paid a fixed payment, if otherwise eligible, if one of the operations is displaced by a right of way acquisition. The fact that farm operators have other farming operations that are not affected by the highway improvement does not affect their eligibility for this type payment.

(b) Actual Owner of Farm Operation Receives Payment

If a sharecropper or tenant is actually conducting the farming operation that is being displaced (and is not merely an employee of the landlord) he/she is entitled to a fixed payment, if otherwise eligible, even though the landowner may share in the profits. (The landowners might be able to justify a claim that their farm rental constitutes a business; however, it is highly unlikely that they could meet the requirements to receive a fixed payment.)

(c) Mineral Production and Quarry Operations

When minerals are being produced on a farm on a commercial basis and/or when quarrying operations are so conducted, they are to be considered as separate businesses and not taken into consideration as a part of the farm operation. (The farm operation relates to agricultural activities only.)

(d) Farm Operations Owned by Estates

The information provided in EPG 236.8.7.1(a)(5), relating to businesses owned by estates, also applies to farm operations owned by estates.

(e) Farm Operation Sold After Initiation of Negotiations

The information provided in EPG 236.8.7.1(a)(6), relating to businesses which sell after initiation of negotiations, also applies to farm operation which are sold after initiation of negotiations.

(f) Payment Determinations

The owners of a displaced farm operation who qualify for a fixed moving payment are entitled to receive an amount equal to the average annual net earnings of the subject farm operation not to exceed a maximum payment of $40,000 or be less than a minimum payment of $1,000.

The term "average annual net earnings" means one-half of any net earnings of the farm operation, before federal, state, or local income taxes have been deducted, during the two taxable years immediately preceding the taxable year in which the farm operation is displaced. Such "average annual net earnings" include any compensation paid by the farm operation to the owner, his/her spouse, or his/her dependents during the two-year period.

All earnings and compensation should be established by federal income tax returns filed by the farm operation and its owner, his/her spouse, and his/her dependents during the two-year period. (Review the instructions in EPG 236.8.7.1(a)(1), concerning income tax returns that are fully applicable when farm fixed payments are involved.)

If the two taxable years immediately preceding displacement are not representative, the district can, with prior approval from the Right of Way Section, base the "average annual net earnings" on a more representative two-year period. (This exception will not be granted as routine procedure or without substantial justification. A change in economic conditions not directly related to the acquisition will not normally be an acceptable reason for using a different two-year period.) The three-point "material contribution" test discussed in section 236.8.8.1(a), is applicable.

Interest payments made to the owner of the displaced farm operation by the "operation" (interest on money loaned to the operation by such owner) cannot be included as a part of the average annual net earnings of the subject operation.

NOTE: If a total acquisition is involved, the farm operation will be considered "displaced" when it completely ceases to operate at the subject location. If the displacement is caused by a partial acquisition, the existing farm operation will be "displaced" at the time it completely ceases to operate at the subject location or at the time the use of the property and/or rights acquired by the department are denied to the farm operator, whichever occurs first.

(g) Payment Computations

(1) Farm Operation Existed Two Full Taxable Years or More

If a qualified farm operation was in existence for two full taxable years immediately preceding the taxable year in which it was displaced, add the net earning from each of the two preceding taxable years together and divide the total by two. The resulting figure represents the average annual net earnings. This amount will be paid to the owner if it exceeds $1,000, and does not exceed $40,000. (As previously stated, if the computed figure is less than $1,000, the minimum $1,000 payment will apply and if it exceeds $40,000, the payment will be limited to the $40,000 maximum.)

Should a loss occur in one year and a gain in the other, the year in which the loss was incurred should be considered as zero income when determining the average net income for the two-year period.

(2) Farm Operation Existed Less Than Two Full Taxable Years

If the current relocatee did not own the displaced farm operation during the full two taxable year period, or it was not located at the displacement site for the full period, the fixed payment will be computed by projecting its net earnings to an annual rate.

The projection of a farm operation's partial net earnings to an annual rate is not a simple mechanical procedure and the procedure used in projecting a business' partial earnings to an annual rate will not normally be applicable.

For example, a farm's net earnings for one or two months during harvest season may be its annual net earnings. If a wheat farm is involved and the crop is harvested in June, the net income for June would be nearly equal to the net earnings for the entire year. A simple projection of this one-month income to an annual rate, by multiplying times 12, would produce an unrealistic high annual net earnings. If the displacement occurred prior to harvest, there would be no net income to project, this time reflecting an inappropriately low net income.

If the need to project a farm operation's partial net earnings to an annual rate is encountered, the Right of Way Section will assist in developing a procedure which specifically considers the type operation involved and the various factors which must be considered in projecting a representative annual net earnings.

236.8.7.3 Claim Form - Business or Farm Operation Fixed Payment (See RA Form 236.8.7.3)

RA Claim Form 236.8.7.3 must be used when business or farm operations claim a fixed moving payment. Claims must be submitted to the department within the 18-month period discussed in EPG 236.8.6.8(b).

General information concerning claim forms previously discussed in EPG 236.8.6.8(d), also applies to this form.

The following detailed information concerning the subject claim form covers only those points that are most likely to be misunderstood. The portions not specifically mentioned are considered to be self-explanatory.

In the first section following the heading, on the second line, give a street address when possible. If rural property is involved, describe its location in relation to known landmarks; for example, "on Route E, two miles south of Route J Intersection."

The next section of the form must be used to determine the "average annual net earnings" when the subject operation has been in existence for two full taxable years prior to the year it was displaced.

The third section of the form is to be used if the relocatee's operation was in existence less than the two full taxable years referred to above. (None of the spaces within this section of the claim form are to include either the number of months, or the earnings from months, within the taxable year in which the displacement occurred.)

In either case, the amount claimed should be equal to the average annual net income unless it exceeds the maximum authorized payment, in which case $40,000 will be claimed, or is less than the minimum authorized payment, in which case $1,000 will be claimed.

In every case (with the exceptions noted in EPG 236.8.7.1(a)(1), copies of the owner's federal income tax reports covering the applicable periods must be attached to the claim form when submitted to the district office by the relocatee. (Copies of income tax returns should not be attached to copies of the claim form submitted to the Right of Way Section for payrolling purposes.) Review the portion of EPG 236.8.7.1(a)(1) that relates to the verification of copies of federal income tax returns used to support relocation claims. (If copies of the owner's federal income tax reports are not obtained, under the "exceptions" noted in section 236.8.7.1(a)(1), the required substitute documentation must be provided by the owner.)

The balance of the form, both front and back, is considered self-explanatory with the two following notations: (1) In spaces provided in both "Computation Sections" to show whether a calendar year or fiscal year was involved, reflect the actual year in the applicable space, for example, "Calendar Year 1972" (do not complete these spaces by placing an "X" in one of the blanks), and (2) the unit file must contain an explanation as to why the business cannot be relocated without a substantial loss in its average annual net earnings. (These statements and explanations should not be taken lightly and must be adequate to justify the position taken and/or approved by the department.)

236.8.7.4 Displaced Nonprofit Organization

(a) Payment Eligibility Requirements

A displaced nonprofit organization may choose a fixed payment of $1,000 to $40,000 in lieu of the payments for actual moving and related expenses and actual reasonable reestablishment expenses, if the department determines that it cannot be relocated without a substantial loss of existing patronage (membership or clientele). A nonprofit organization is assumed to meet this test unless the department demonstrates otherwise. Any payment in excess of $1,000 must be supported with financial statements for the two 12 month periods prior to the acquisition. The amount to be used for the payment is the average of two years annual gross revenues less administrative expenses. Gross revenues may include membership fees, class fees, cash donations, tithes, receipts from sales or other forms of fund collection that enables the nonprofit organization to operate. Administrative expenses are those for administrative support such as rent, utilities, salaries, advertising and other like items as well as fund raising expenses. Operating expenses for carrying out the purposes of the nonprofit organization are not included in administrative expenses. The monetary receipts and expense amounts may be verified with certified financial statements or financial documents required by public agencies.

(b) Claim Form - "Fixed Payment" Claim for Nonprofit Organizations (See RA Form 236.8.7.4)

RA Claim Form 236.8.7.4 must be used when a nonprofit organization claims a fixed payment. Claims must be submitted to the department for payment within the 18-month period discussed in EPG 236.8.6.8(b).

General information relating to claim forms previously discussed in EPG 236.8.6.8(d) also applies to this form.

The form is considered to be self-explanatory.

NOTE: The blank spaces that relate to a nonprofit organization which continues to function after displacement will seldom be used as it is very improbable that an organization that continues to function can qualify for this type payment.

236.8.7.5 Time for Filing “Fixed Payment” Claims

(a) Operation Displaced From Acquisition Site

The eligible owners of a displaced business, farm operation or nonprofit organization which is displaced from the acquisition site can claim their fixed payment anytime after (1) negotiations are initiated for the real property involved (or a Notice of Intent to Acquire-Relocation is issued), and (2) the operation has been completely discontinued on the displacement property, but no later than the end of the 18-month period discussed in EPG 236.8.6.8(b).

(b) Business Operation Continued on Remainder of Acquisition Site. (Review NOTE at end of EPG 236.8.7.1(f).)

Business owners eligible for fixed payments who elect to continue operating on the remainder of the acquisition site regardless of their substantial loss of patronage can claim their payment anytime after (1) negotiations are initiated for the real property involved (or a Notice of Intent to Acquire-Relocation is issued), and (2) the area included within the right of way acquisition (or the use of other acquired rights necessary to the operation) is denied to the business owner, but no later than the end of the 18-month period discussed in EPG 236.8.6.7(b).

(c) Nonprofit Operation Continued on Remainder of Acquisition Site

It is not anticipated that nonprofit organizations which continue to operate on remainder parcels will qualify for fixed payments; however, should such a situation occur, the instructions in preceding subparagraph (b) will apply.

(d) Substantially Reduced or Different Type Farm Operation Continued on Remainder of Acquisition Site. (Review EPG 236.8.7.2(a)(3), and NOTE at end of EPG 236.8.7.2(f)).

Farm operators eligible for fixed payments who elect to continue a substantially reduced farm operation, or a different type farm operation, on the remainder of the acquisition parcel can claim their fixed payment anytime after (1) negotiations are initiated for the real property involved (or a Notice of Intent to Acquire-Relocation is issued), and (2) the area included within the right of way acquisition (or the use of other acquired rights necessary to the operation) is denied to the farm operator.

(e) Owner of Displaced Operation is "Subsequent Occupant"

Applicable instructions in preceding subparagraphs (a) thru (d) apply when subsequent occupants are eligible for fixed payments; however, claims from subsequent occupants cannot be paid until after the real property involved has been acquired by the department. (Keep in mind that operations owned by subsequent occupants must be in operation on the site at the time it is acquired by the department. If not, the owner is not an eligible relocatee.)

236.8.8 Relocation Assistance Program - Replacement Housing Payments (RHP)

236.8.8.1 General Policy

Individuals and families displaced from dwellings including condominium and cooperative apartments they owned and occupied for at least 90 consecutive days prior to the initiation of negotiations for the property are entitled to a RHP to enable them to purchase replacement housing. They must meet the payment eligibility requirements outlined in EPG 236.8.8.2. The payment, including reimbursement for incidental expenses incurred in the purchase of replacement housing as discussed in EPG 236.8.9 and compensation for loss of favorable financing as discussed in EPG 236.8.10, cannot normally exceed $31,000.

NOTE A: Exceptions to $31,000 Maximum Payment Limitation

In some instances the addition of incidental closing or increased interest costs to the basic RHP will cause the total to exceed $31,000. Situations will also be encountered in which the department will not be able to make the required comparable DS&S replacement housing available to a relocatee within the maximum payment limitations.

The total RHP including incidentals and increased interest will be charged to the applicable Relocation Payment-Last Resort Housing Plan activity, object and sub-object codes.

NOTE B: 90-Day Owner-Occupants Rent Replacement Dwelling Unit

Eligible 90-Day owner-occupants who rent instead of purchasing DS&S replacement housing are entitled to a rent supplement payment computed in the manner discussed in EPG 236.8.11.2(c). The rent supplement payment cannot exceed the calculated RHP.

(a) Advance RHPs

If eligible relocatees request it, they may receive their RHP at the closing on the replacement home, provided that:

1. The relocatees' request in writing that their payment be handled in this manner.

2. The relocatees have entered into a sales contract, or some other written agreement to purchase, for a specific and available DS&S replacement dwelling.

3. The relocatees have a loan commitment from a qualified lender that will enable them to purchase the replacement.

4. If owner-occupied and the department has acquired the existing dwelling.

Advance RHPs will not be processed in district offices unless and until all four of the preceding requirements have been satisfied and the unit file documented accordingly.

Advance payments must be made under the Escrow Payment Procedure discussed in section (b), or under the advanced occupancy (Relocation Housing Possession Agreement) procedure explained in section (c), whichever is most desirable under the circumstances involved.

NOTE: The advance payment procedures discussed in this subparagraph, and the two that follow, are normally applicable for both RHPs and down payments as discussed in EPG 236.8.12.4.

(b) Replacement Housing Escrow Agreements (RA Form 236.8.8.1(b))

The escrow payment procedure is normally desirable in making an advance payment if the seller of the replacement dwelling is agreeable to closing the transaction and permitting the relocatees to occupy the dwelling prior to receipt of the entire purchase price, with the provision that the relocation payment will be placed in escrow for immediate delivery after the relocatees' purchase and occupancy eligibility requirements are fulfilled.

The following actions should be taken when the escrow payment procedure is used:

Step 1: Obtain a written request from the relocatees that their RHP be placed in escrow for delivery under the terms and conditions set out in Escrow Agreement RA Form 236.8.8.1(b).

Step 2: The Relocation Agent and relocatees should mutually agree on a qualified Escrow Agent, other than the real estate firm that is handling the sale of the replacement property to the relocatees. (Reasonable escrow fees, which should always be predetermined, can be paid by the department as routine relocation incidental expenses.)

Step 3: District relocation personnel should fill out three copies of a "Relocation Housing Escrow Agreement" (RA Form 236.8.8.1(b)) in the following manner:

List the names of all relocatees who are eligible to receive the advance RHP in the first blank space as "Relocatees." Insert the name of the Escrow Agent in the second space.

The amount to be shown in the third paragraph of the agreement is the RHP that the relocatees will be entitled to receive if they conclude the purchase of their chosen replacement dwelling, the specific replacement dwelling discussed in Requirement No. 2 in preceding subparagraph (9), (The procedure for computing replacement housing offers is discussed in EPG 236.8.8.3. Also show this same amount in the space provided in the first numbered paragraph of the agreement. If a down payment is involved, cross through "Replacement Housing" and indicate the amount of the computed rental subsidy amount.

The amount to be inserted in the third numbered paragraph is the total arrived at by adding (1) the amount paid to the relocatees by the department for their subject dwelling and supporting land area to (2) the above-referenced RHP. (This total must, in every case, be the same amount as the consideration being paid by the relocatees for the above-referenced replacement dwelling that they are purchasing.) If a down payment is involved, insert the computed rental subsidy amount.

Step 4: Have all three copies of the agreement signed by all persons whose names appear in the first paragraph of the agreement as "Relocatees," the escrow agent and the district engineer.

The Escrow Agent will check with the district prior to releasing the payment so that a final determination can be made to ensure that all payment eligibility requirements have been fulfilled. This point should be explained and clarified at the time the escrow agent executes the agreement.

Step 5: Give one copy of the agreement to the relocatees, one copy to the escrow agent, and retain one copy for the unit file.

Step 6: Assist the relocatees in completing and filing their advance RHP claim according to instructions provided in EPG 236.8.8.4(b) NOTE B.

NOTE: Should a relocatee purchase a replacement under a binding purchase agreement, or under any other arrangement which would cause the wording in the second numbered paragraph to be inaccurate, advise the Right of Way Section in writing and wait for further instructions.

Should a relocatee who intends to build a replacement dwelling (or otherwise obtain a replacement, other than through outright purchase of a DS&S replacement dwelling) request an "advance" down payment, again advise the Right of Way Section in writing and wait for further instructions.

NOTE: Escrow fees should not be paid until the escrow agent has provided a signed receipt as required in the third numbered paragraph of the Escrow Agreement.

(c) Advance Payment Using "Relocation Housing Possession Agreement" (RA Form 236.8.8.1(c))

When the seller of the replacement dwelling will not convey title and permit the relocatees to occupy the replacement dwelling until he/she receives a substantial portion of the purchase price, the procedure in this subparagraph will normally be used in providing an advance RHP.

Under this procedure relocatees can sign a RA Form 236.8.9.1(c), Relocation Housing Possession Agreement and receive their RHP prior to occupying the replacement dwelling.

When this procedure is used the following actions are applicable:

Step 1: The relocatees must request an advance RHP in writing. (The request to be made after the four "pre-advance payment requirements" in preceding section (a), have been satisfied.)

Step 2: The relocatees must complete and file an appropriate claim, which should be processed for payment in the normal manner.

Step 3: Advise the relocatees when the relocation payment check is received in the district office so they can arrange for the closing. The check is to be held in the district office until the following actions are accomplished.

Step 4: The relocatees must sign two copies of the Relocation Housing Possession Agreement, one copy for the department and one for them. This can be accomplished at any time prior to delivery of the check; however, it is preferable that the agreement be completed and executed at or near the date of closing so that a firm possession deadline date can be established.

Step 5: Department representative should hand carry the check to the scheduled closing. Immediately after title to the replacement dwelling is conveyed to the relocatee, the RHP check can be handed to them or their written designee, provided the department representative confirms that the actual consideration paid for the replacement dwelling is not less than the replacement housing cost used in computing the relocation payment. (If a down payment is involved, it must also be determined that the relocatees are actually making a down payment in the purchase of the replacement that is not less than the computed rental subsidy payment.) If either determination is negative, the relocation check must not be released; contact the Right of Way Section for additional instructions. The department representative should obtain a copy of the deed to the replacement dwelling (or other applicable conveyance instrument) and a copy of the closing statement at the time the RHP check is delivered.

Step 6: A physical inspection must be made to determine whether or not the relocatees occupied the designated replacement dwelling by the date specified in the Possession Agreement. If so, the file must be documented accordingly. If not, the Right of Way Section must be notified at once.

NOTE: The advance payment procedure will not normally be permitted if the replacement dwelling is located in another state.

Relocation Housing Possession Agreement RA Form 236.8.8.1(c) is applicable for advance RHPs. Advance down payments should utilize RA Form 236.8.8.1(c)(1). When a RHP is involved, complete the agreement in the following manner:

Space 1: List the names of all relocatees who are entitled to receive the advance RHP.

Space 2: Show the amount of the RHP that the relocatees will be entitled to receive if they conclude the purchase of their chosen replacement dwelling.

If the payment is to be made to the relocatees, insert the word "them." (If only one relocatee is involved, insert "him" or "her" as appropriate.) If they request in writing that their payment be made to another party, normally the grantors of the replacement dwelling, set out the names of the designees.

Space 3: Insert the address of the replacement dwelling. (If it is located in a rural area, describe its location in reference to known landmarks so that it can be readily identified.)

Space 4: Reflect the shortest time period (number of days) in which the relocatees can reasonably expect to occupy the replacement dwelling after they receive their RHP. Occupancy should normally be accomplished within 30 days after closing. (Right of Way Section concurrence must be obtained if a longer occupancy period is shown in this space.)

Space 5: When a RHP is involved, the amount to be shown in this space is the total arrived at by adding (a) the amount paid to the relocatees for their existing dwelling and supporting land area to (b) the advance RHP shown in space (2) of this agreement.

If a down payment is involved, space 5 must reflect the computed rental subsidy amount.

The agreements are to be executed by each relocatee whose name appears in space (1).

If the replacement is a mobile home site, change all references from replacement dwelling to replacement mobile home site. Also change the wording in the second paragraph of the agreement following "actually occupy" to read "a replacement mobile home site in a decent, safe and sanitary manner as defined in the commission's Relocation Brochure prior to receipt of their RHP."

It is not likely that an advance RHP will be made when the replacement is a mobile home. If such request is made by an eligible relocatee, the Right of Way Section will provide additional instructions.

236.8.8.2 Payment Eligibility Requirements

(a) Ownership and Occupancy Requirements - Subject Property

The individual or family being displaced must have owned and occupied their dwelling unit for at least 90 consecutive days immediately prior to the initiation of negotiations for the subject property or, if they are provided a "Notice of Intent to Acquire-Relocation" by the department, they must have owned and occupied it for at least 90 consecutive days prior to the date they actually vacated the property if it was vacated prior to the actual initiation of negotiations. When a "Notice of Intent to Acquire-Relocation" is used, the 90-day period is measured from the date that negotiations are initiated for the subject, or from the date that it is vacated by the owner-occupant, whichever is earlier.

(b) Ownership and Occupancy Requirements at Initiation of Negotiations

To qualify for this type payment, the relocatees must have owned and occupied the property from which they are being displaced at the initiation of negotiations for that particular parcel or, if they are provided a "Notice of Intent to Acquire-Relocation," at the time they receive the notice.

See EPG 236.8.1.25, and EPG 236.8.8.3(a)(15), if individuals and families whose homes were damaged or destroyed by a major disaster were not able to reoccupy their dwellings by the time negotiations were initiated for the property.

(c) Property Must Be Acquired By Department From Qualified Owners

Displaced owner-occupants will not be eligible for a RHP if they sell the subject dwelling to any party other than the department after the initiation of negotiations for the parcel. The "other party" who purchases the dwelling will not be eligible for the payment.

(d) Displacement Must Be Necessitated By Right of Way Acquisition

The displacement must be necessary due to the actual acquisition of the subject dwelling by the department, or, due to its being rendered legally or physically landlocked and uninhabitable by the right of way acquisition.

(e) Subject Must Be Owner's Principal Residence

A RHP cannot be made unless the dwelling acquired as right of way by the department (or landlocked) is the owner's principal or legal place of residence. If doubt exists concerning this point, and the district is unable to make a determination, provide pertinent facts in writing to the Right of Way Section for final decision.

Problems concerning this point are sometimes created when a member of the armed forces is on duty at another location. The following general rules apply in cases of this kind.

(1) If the owners have actually moved out of the dwelling, vacated it and taken up residence at another location, they are not eligible for a RHP.

(2) If the owners have not moved their furniture out of the house and have not actually surrendered possession to others, they would normally meet the "principal residence" requirement.

NOTE: Section 472.010(10) RSMo defines "domicile," which the dictionary interprets as "the place of residence of an individual or a family," as "the place in which a person has voluntarily fixed his/her abode, not for a mere special or temporary purpose, but with a present intention of remaining there permanently or for an indefinite time."

Section 1.020(9) RSMo states that "place of residence means the place where the family of any person permanently resides in this State, and the place where any person having no family generally lodges."

(f) Decent, Safe and Sanitary Replacement Must Be Purchased and Occupied Within One Year

The relocatees must purchase and occupy a replacement dwelling that meets DS&S standards within a one-year period beginning on the later of:

(1) the date the relocatees or their Escrow Agent receives payment from the department for the acquired dwelling; or, in case of condemnation, the date the final judgment (commissioner's award, stipulated settlement, or jury award) is paid into court; or

(2) the date the relocatees move from the displacement dwelling.

Related information covering the purchase of replacement housing is provided in following subparagraphs (g), (h) and (i) and in EPG 236.8.8.3(a) 10,14 and 15.

NOTE A: Clarification of Purchase Requirement

Eligible relocatees who entered into a legally binding contract to purchase a DS&S replacement dwelling, or for the construction of a new replacement dwelling (or for the rehabilitation of a replacement dwelling which they purchased within the applicable one-year time period) will not normally lose their payment eligibility if they are unable to occupy such replacement dwelling within the specified time period for reasons that are beyond their reasonable control. (The unit file must be documented to explain the circumstances involved.)

If eligible relocatees who purchase and occupy a DS&S replacement dwelling within the one-year time period cannot get title thereto for reasons that are beyond their reasonable control until after such time period has expired, they will not normally lose their eligibility for payment and can file a claim after they do obtain title. (Again document the unit file to explain the circumstances involved.)

When situations are encountered which reveal other reasons beyond the control of the relocatee, present the facts involved to the Right of Way Section and request an eligibility determination.

Relocatees who qualify as owners due to having a life estate in the subject, or by holding a long-term lease thereon, can meet this eligibility requirement if they acquire at least the same interest in the replacement as they held in the subject property. (For computations in this situation see EPG 236.8.8.3(a)(11).)

The purchase of a life estate in a retirement home normally enables a relocatee to qualify under this particular requirement. When determining the amount spent by the relocatee in purchasing his/her replacement, include the entrance fee plus any other monetary commitments to the home except periodic service charges.

NOTE B: Replacement is Mobile Home

A mobile home that meets DS&S standards can be considered a qualifying replacement dwelling even though the relocatees were displaced from a conventional dwelling unit. The mobile home does not need to be located on the relocatees' land or made a part of the real estates to qualify as a replacement dwelling. The cost of the mobile home and site, if applicable, must be at least equal to the right of way payment made for the relocatees' residential property acquired by the department plus the computed RHP.

(g) Displaced Owner Occupies Previously Owned Dwelling Unit as Replacement

Displaced owner-occupants of a residential dwelling unit who move to and occupy a DS&S replacement dwelling that they had previously owned may be entitled to a RHP. See NOTE B in EPG 236.8.8.3, for computation.)

If relocatee previously owned a part interest in another residential property that is used as their DS&S replacement, they would be eligible for a RHP provided that the current value of their interest in the replacement dwelling unit is equal to the entire amount paid for the subject property by the department plus their computed RHP offer.

Determine the current value of the relocatees' prior interest in the replacement dwelling in the following manner:

Step 1: Request that the replacement residential property be appraised. (The appraisal can be reviewed and approved in the district.

Step 2: Determine the relocatees' degree of prior ownership in the replacement residential property by percentage.

Step 3: Apply the percentage from Step 2 to the appraised value of the replacement residential property. The resulting figure will be the current value of the relocatees' prior interest in the property.

(h) Relocatee Purchased Replacement in Partnership With Other Parties

If qualified relocatees purchase their replacement dwelling in partnership with other parties who did not also own an interest in and occupy the subject dwelling, they must invest an amount equal to the entire amount paid for the subject property by the department plus the computed RHP in the purchase of their interest in the replacement.

When this situation is encountered the relocatees' replacement housing claim form must be completed in the manner explained in EPG 236.8.8.3(a)(14), which will ensure that the above requirement is complied with. (Also see EPG 236.8.1.5(f).)

If the relocatee also owned the subject dwelling in partnership with non-occupants, apply the instructions provided in EPG 236.8.8.3(a)(13).

(i) Deadline For Filing Claims

Replacement housing claims must be filed with the department within six months after the expiration of the one-year period discussed in EPG 236.8.8.2(f), (the time period can be extended, for good cause, with concurrence from the Right of Way Section.)

236.8.8.3 Payment Computations

A RHP must be for the lesser of an amount equal to the difference between the final amount received by eligible relocatees in payment for their dwelling (prior to any deductions covering the value of salvage retained by the owners) and either the actual amount paid for a DS&S replacement dwelling by the relocatees (not including incidental closing costs and increased interest payments), or the amount determined by the department as necessary to purchase the most nearly comparable DS&S replacement dwelling available. The payment, together with authorized incidental closing costs related to the purchase of the replacement and increased interest costs normally must not exceed $31,000.

If the "replacement" is a mobile home, do not include the cost of the furniture and appliances therein as part of the "consideration paid," even though they were purchased with the mobile home as part of a "package deal," unless such furniture and/or appliances are built-in and are considered to be a part of the mobile home. Tie-down expenses, underpinning, transportation and/or delivery costs, installation costs (including "blocking" and/or foundation), the cost of steps, air conditioning and "built-in" furniture can all be included as part of the replacement housing cost.

NOTE A: Correction of Decent, Safe and Sanitary and/or Functional Similarity Deficiencies

If a relocatee whose RHP offer was based on a comparable DS&S dwelling purchases a different replacement dwelling that has DS&S deficiencies and after purchase corrects those deficiencies, the documented actual expenses, as discussed in EPG 236.8.8.3(a)(l0), can be considered as having been spent in the purchase of the property. The actual cost of correcting the DS&S deficiencies can be added to the purchase price of the replacement.

Relocatees who acquire a replacement dwelling that is not functionally equivalent to their displacement dwelling can include, as a part of the replacement purchase price, any documented expenditure they make in improving the replacement to a level of functional similarity. (IN NO CASE can such improvement be the replacement of an exterior attribute the value of which was subtracted from the acquisition cost of the displacement dwelling for purposes of computing their RHP.)

The cost of improvements to the replacement dwelling other than those required to eliminate DS&S deficiencies or to gain functional similarity with the displacement dwelling cannot be included as a part of the purchase price of the replacement dwelling.

NOTE B: Relocatee Moves to and Occupies Previously Owned Residence

Eligible displaced residential owner-occupants who move to and occupy a previously owned DS&S dwelling as their replacement dwelling will be entitled to a RHP. The payment will be based on the lesser of the difference between their right of way payment for the subject residential property and (1) the price of the selected comparable that was used in computing their RHP offer, or (2) the current value of the previously owned replacement dwelling.

Apply the following procedure in determining the current value of the pre-owned replacement dwelling.

Request that the pre-owned replacement to be inspected by a qualified member of the right of way staff (normally an appraiser) to determine whether or not the value of the actual pre-owned replacement is equal to or exceeds the price of the selected comparable. If so, the inspector must prepare a written statement to this effect for the unit file. In this case, the RHP will be equal to the difference between the relocatees' right of way payment for the subject residential property and the price of the selected comparable.

If, however, the inspector determines that the value of the actual pre-owned replacement is less than the price of the selected comparable, it will be necessary to obtain an appraisal of the actual pre-owned residential property. (The appraisal can be reviewed and approved in the district.) The relocatees' RHP will be equal to the difference between the right of way payment for the subject residential property and the appraised value of the pre-owned replacement.

The "current value" of the pre-owned replacement residential property will be established at or near the time it is occupied by the relocatees. Value added by improvements made after occupancy will be ignored in determining the "current value" for use in RHP computations UNLESS they are necessary to make the dwelling DS&S and/or to make it functionally equivalent to the displacement dwelling.

When DS&S corrections are necessary, consider the "current value" after the corrections are made when computing the RHP. (If the replacement dwelling is not made DS&S within the one-year period discussed in EPG 236.8.8.2(f), the relocatee will not normally be entitled to a RHP.)

If the pre-owned replacement dwelling is not functionally equivalent to the displacement dwelling, the relocatees have the options of either (1) requesting that its "current value" at the time of occupancy (Prior to improvement) be used in the RHP computations to expedite the payment (this will normally be done when the pre-improvement value is expected to equal or exceed the price of the selected comparable on which the RHP offer was based, or (2) of waiting until improvements needed to make it functionally equivalent to the displacement unit are completed so that the "current value" after improvement will be used in the RHP computations. (The improvements must normally be made prior to the end of the one-year period discussed in EPG 236.8.8.2(f).)

(a) Comparable Methods of Computing RHPs

When an owner-occupied dwelling is acquired, the maximum amount that will be due the owners as a RHP must be determined if they meet all of the payment eligibility requirements for this type of payment.

Under normal circumstances this determination will be made by analyzing at least three available replacement comparable properties.

(1) Entire Acquisition of Single-Family Dwelling

In this situation the entire offer made by the department to the owner-occupants for their residential property is deducted from the price of the most nearly comparable replacement available to determine the maximum additional amount necessary to enable owners to purchase a replacement property. This amount is the maximum RHP that the owners may be eligible to receive.

(2) Acquisition Includes All Residential Improvements and Supporting Land Plus Other Lands

This situation would exist when; for example,

(a) all residential improvements and supporting land area are included in a strip acquisition that also includes farm land, fences, and farm buildings not actually related to the residence. Residential improvements, as referred to above, mean the house, garage, residential storage sheds, well, and all other improvements located on the "supporting land area" and used in maintaining a home. The term "supporting land area" relates to an area comparable in size to typical residential building lots in the area.

(b) when an "extra" building lot is acquired with the subject residence and its supporting land area, and

(c) when the subject residence is situated on a small acreage plot, all or a portion of which is also acquired.

In these situations an appraiser must "carve out" from the approved negotiating offer the portion that is chargeable to the residential improvements and supporting land area. Only this portion of the department's offer will be used in determining the RHP.

NOTE: Determining Necessity for Prorating Negotiating Offer

Although small acreage home sites (and occasionally farms) may be consistent in size within an area, they are not normally considered typical residential building lots. These units usually contain the equivalent to a typical residential building lot plus other lands which are not a part of the residential "supporting land area."

If "other lands" are involved, apply the following procedure in determining the area to be included in the residential "supporting land area."

Designate a hypothetical residential site that is equal to the area that encompasses the dwelling, garage, other residential improvements, and a reasonably sized lawn. The site should normally be one acre or less and similar in size to typical urban area residential lots. The designated lot should not normally be smaller than the lot on which the selected comparable dwelling is situated. (Family sized garden plots would normally be included within the designated site.)

If the parcel has been subdivided into typically sized urban area building lots, it would normally be proper to consider the lot on which the dwelling is located as the supporting residential land and the additional lots as other lands.

These principles are also applicable when computing rental subsidy payments.

(3) Partial Acquisition of Residential Properties - Dwelling Located On Normal Size Residential Building Lot - No Other Land Involved

The department must offer to acquire remainders that are, during the appraisal review, determined to be uneconomic remnants.

The value offered for the uneconomic remnant will be added to the approved negotiating figure and included in the computations of a RHP.

If the owner does not elect to sell the remnant, the RHP will be recomputed excluding the value of the remnant.

NOTE: When there is an offer to purchase an uneconomic remnant, the department is not obligated to condemn and will not acquire it through condemnation proceedings.

(4) Partial Acquisition of Residential Property Plus Other Lands (Owner-Occupant is Totally Displaced)

When this situation is experienced, acquisition includes only a part of the residential improvements and/or supporting land area plus other lands, it is necessary to have an appraiser break down the approved negotiating figure to show the portion thereof that is chargeable to the residential improvements and supporting land area. (Damages to any remaining residential improvements and/or to the remainder of the residential land area, including temporary easements, are to be included in the portion of the offer that is chargeable to the residential improvements and supporting land area.)

To arrive at the maximum RHP, deduct the portion of the approved right of way offer that is chargeable to the residential improvements and supporting land area from the price of the most nearly comparable DS&S replacement property available. (The term "supporting land area" is defined in preceding paragraph (2) NOTE.)

If an uneconomic remnant or excess land is purchased by the department which contains portions of both the residential land area and other remaining lands, it will be necessary to determine the portion of the payment for such remnants or excess that is chargeable to the remainder of the residential land area and reduce the relocatees' RHP accordingly.

(5) Dwelling on Land With Higher and Better Use

The fact that a dwelling is located on land with a higher and better use, and that the right of way offer is based on higher than residential land value, has no effect on the RHP computation procedure. Use the same procedure that would be applicable if the dwelling was located on land with a normal residential value.

RHP computations are not affected if the residential improvements do not contribute any value to the "higher and better use" property. Use the approved right of way negotiating offer for the property, or, if applicable, for the portion with a hypothetical residential land area, in the computations regardless as to whether or not it includes an improvement value.

NOTE: If application of this policy creates an excessive RHP which could occur if a limited strip acquisition removes an occupied dwelling which contributes no value to the property, request additional computation instructions from the Right of Way Section.

(6) Joint Residential and Business Use

When an owner-occupied commercial property is acquired which contains both a residential unit and a business area, it will be necessary for an appraiser to prorate the department's right of way offer to show the portion chargeable to the residential unit and if applicable to its supporting land area. (The appraiser must use his/her best judgment in determining whether or not any part of the land area should be charged to the residential portion of the property.)

The portion of the offer chargeable to the residential unit and supporting land will be deducted from the price of a DS&S replacement dwelling unit functionally equivalent to the portion of the subject property that was used for residential purposes.

When a part-time or hobby-type business, which does not contribute substantially to the relocatees' total income, is located on the displacement residential property or in the residential dwelling unit, it is not necessary to prorate the department's offer.

Should a business that is located on the relocatees' residential property or within their dwelling unit contribute materially to their total income and meet the basic eligibility requirements for a fixed moving payment, proration is necessary. (In this case, the major portion of the land area should normally be charged to the residential property.)

NOTE A: Principles for Determining Portion of Land Value Chargeable to Residential Area

The following principles can be applied in determining what part of the land value is chargeable to the residential portion of the property.

The conclusion should be influenced to a large extent by the primary design and use of the property. For example, if the structure was designed and is primarily used as a residential dwelling with a small area set aside for business purposes, and if the entire land area is maintained as a lawn, it would be reasonable to charge all of the land value to the residential property.

Conversely, if the main structure is primarily a business building with the residential living quarters being a minor area of space and design and the land area entirely paved for customer parking, it should be acceptable to charge all of the land value to the business.

Should the acquisition include "other lands" not directly related to or used in support of the joint use structure, it will first be necessary to designate a hypothetical area which supports the structure and then prorate the value of that specifically designated land area as discussed in this NOTE.

(7) Multiple Occupancy of Same Single-Family Dwelling Unit

The principles discussed herein are applicable in computing payment offers for the eligible occupants even though some of the families or separate individuals involved do not meet occupancy time requirements or for some other reason are not eligible for a RHP.

If two or more eligible individuals and/or families that occupy the same single-family dwelling maintain separate households, they will be entitled to separate RHPs. (The term "individuals" as used herein relates to single occupants who are not members of one of the subject displaced families.)

If the individuals and/or families do not maintain separate households, they will be entitled to only one joint RHP if a comparable (or better) DS&S replacement dwelling is available to them. (The one payment can be prorated between eligible individuals and/or families which relocate by choice into separate DS&S replacement dwellings.) If a comparable DS&S dwelling is not available which will enable the individuals and/or families to relocate together and as a consequence they are forced to occupy separate replacement dwellings, they will be entitled to separate RHPs. (Should joint-occupancy individuals and/or families which are eligible for separate payments, due to forced separation, actually purchase and occupy the same DS&S replacement dwelling, they will be entitled to one joint RHP which cannot exceed the combined total of their separate RHP offers, nor can it normally exceed the $31,000 maximum payment limitation for this type payment.)

Individuals and/or families will not normally maintain separate households if they commingle and share space and rooms throughout the dwelling, with the exception of private bedrooms. (The Right of Way Section will assist in determining whether or not separate households are being maintained by the relocatees.)

All owner-occupants who do not maintain separate households within the single-family dwelling will be entitled to one joint RHP if a comparable or better DS&S replacement dwelling is available to them.

When early relocation contacts indicate that "multiple occupancy" may be involved, it is necessary to make the following two determinations before computing relocation payments or making commitments to the relocatees.

First: Determine the occupancy status of the occupants. Are they all owners, all tenants, or are both owners and tenants occupying the single-family dwelling unit?

When "families" are involved, for example, father, mother, and adult children or other relatives occupy a dwelling owned by the parents and no separate households maintained, it may be difficult to determine whether or not some of the parties, normally adult children, are bona fide tenants. A mere statement that some are paying rent to others will not suffice.

Even though "rental receipts" can be produced, it is normally impossible to determine whether the payments were actually made and, if so, whether they were for basic rent (room exclusive of board, or merely a contribution toward the cost of food, utilities, and other household costs).

Before any occupants in questionable situations can be considered bona fide tenants, owners must produce a copy of their most recent federal income tax return showing the rental payments as taxable income. If they do not provide these tax returns, it will normally be determined that no eligible tenants are involved. If the relocatees claim that the owner-tenant relationship has been established since the last Federal income tax return was filed, request guidance from the Right of Way Section.

If it is determined that no bona fide tenants are involved, it will be assumed that only one "family" is being displaced, in which case, policies and procedures relating to "Multiple Occupancy of Same Single-Family Dwelling Unit" will not apply. The owners will be paid a RHP to enable them to purchase a comparable DS&S replacement dwelling that will house the "family."

If it is determined that both eligible owners and tenants are involved, follow the procedure in EPG 236.8.8.3(a)(7)C.

Second: Determine whether those in each occupancy status, owners and/or tenants, maintain separate households. All owners who do not maintain separate households will receive one RHP. Those who maintain separate households will be entitled to separate RHPs based on their owner or tenant occupancy status.

After both of the preceding "determinations" have been made, the applicable instructions in this subparagraph (EPG 236.8.8.3(a)(7)A thru D) can be applied in computing and disbursing RHPs.

A - Eligible Individuals and/or Families Maintain Separate Households

Each eligible individual and/or family (90-Day owner-occupants) that maintains a separate household within the acquisition dwelling is entitled to a separate RHP offer.

Individuals and/or families will be referred to as "parties" in the following discussion, each separate individual and/or family is a separate "party."

The procedure for computing the separate RHP offers is as follows:

1. The portion of the department's right of way offer to be used in computing the RHP for each separate eligible party is determined by dividing the total right of way offer for the subject residential property by the number of parties involved, in the same percentage ration that the property is owned by each party.

2. Determine the size and utility of the replacement dwelling to which each separate party is entitled by considering the space and utility each party used in the subject dwelling. This can be accomplished by determining (1) the space each family privately occupied in the subject, and (2) other areas (rooms) to which each had free and unlimited sharing privileges. (The same shared space in the subject can be "credited" to each party who had unlimited access to it.)

3. Determine the price of a DS&S dwelling unit for each family that is as functionally equivalent to the prorated space "assigned" to that family in the subject dwelling.

4. Subtract the appropriate prorated right of way offer from the price of a suitable replacement for each separate party to determine the maximum RHP that particular party is entitled to receive. An example of the computations involved is as follows.

The department acquires a single-family dwelling unit owned and occupied by two separate families for $60,000. One family owned 80% interest in the subject and the other 20% interest.

The house contains 2,000 square feet and 10 rooms.

Divide the right of way offer, in the manner discussed in Step 1 above, and determine that the majority owner's portion is $48,000 and the minority owner's portion is $12,000 (80% of $60,000 = $48,000 and 20% of $60,000 = $12,000).

The majority owner privately occupied three bedrooms, a living and dining room, and had free and unlimited sharing privileges in a kitchen and a room used as an office, a total of 1,700 square feet. The minority owner had private use of two bedrooms and a family room and also had free and unlimited sharing privileges in the kitchen and office room, a total of 1,550 square feet. These facts reflect that the majority owner is entitled to a replacement comparable to a 7-room unit containing approximately 1,700 square feet. The minority owner would be entitled to a replacement comparable to a 5-room unit containing approximately 1,550 square feet.

The majority owner's RHP offer would be computed in the following manner.

Determine the price of an available DS&S 7-room unit containing approximately 1,700 square feet, that is functionally equivalent. (In this example use $52,000 as the price of the available comparable.) Deduct $48,000 (the prorated offer) from $52,000 and find that this owner is entitled to a $4,000 RHP offer.

Compute the minority owner's payment in the same manner.

Each family will also be eligible for reimbursement of their actual incidental closing costs and increased interest payments.

All computations and prorations must be documented in the unit file.

If one of the families elects to purchase a replacement dwelling and other elects to rent in lieu of purchasing, each can qualify for their applicable payment if otherwise eligible - one for a RHP computed in the manner discussed in this subparagraph and the other for a rental subsidy payment computed in the manner discussed in EPG 236.8.11.4(a)(1). (The economic rental fee for the subject, which will be used in computing the rental subsidy payment, must be the economic fee that would be charged for a unit that is comparable in space and utility to the prorated space, as determined in preceding Step No. 2. The family which purchased its replacement dwelling will be entitled to reimbursement of its eligible incidental closing costs and, if otherwise eligible, an increased interest payment.

Each party's payment cannot normally exceed $31,000 for owner-occupants or $7,200 if the replacement is a rental unit.

Should some or all of the parties involved purchase and occupy the same DS&S replacement dwelling, regardless as to whether or not they reestablish separate households, they will still be entitled to their separate RHPs based on the difference between their (each party's) pro rata share of the actual right of way payment and either (1) the price of the selected comparable used in computing their RHP offer, or (2) the portion of the purchase price of the actual replacement paid by that specific party, whichever is the lesser. In this case, however, the combined RHPs cannot exceed the difference between the total right of way payment for the acquired dwelling and the total purchase price of the DS&S replacement dwelling actually purchased and occupied or the $31,000 maximum payment limitation, unless paid under the Last Resort Housing Program.

If a reduction is necessary in the amount of each payment, it is desirable that they be combined into one payment naming all parties involved. This will eliminate potential problems with the various parties in determining the extent that each separate payment must be reduced. A combined claim will also simplify the payment of incidental and increased interest payments. (If for any reason a combined payment is not workable, request instructions for determining the amount of each separate payment from the Right of Way Section.)

B - Eligible Individuals and/or Families Do Not Maintain Separate Households

(1) Comparable DS&S Replacement Dwelling is Available

If a comparable or better DS&S replacement dwelling is available within the maximum $31,000 RHP limitation when two or more eligible individuals and/or families are displaced from the same single-family dwellingthat they jointly own and occupy, only one RHP will be made. The payment will be computed as if only one family was involved.

If all of the parties involved purchase and occupy the same DS&S replacement dwelling, and meet all payment eligibility requirements, they will be entitled to the full amount of the applicable RHP. The RHP claim must be signed by all of the eligible parties involved and the payment check must include the names of all who signed the claim.)

Should the parties purchase and occupy different replacement dwellings even though a comparable replacement is available which would have enabled them to stay together, the one RHP will be prorated and each eligible party will be paid its pro rata share thereof provided they spend an amount equal to their prorated share of the consideration paid for the subject dwelling plus their prorated share of the RHP offer in the purchase of their replacement dwelling.

When determining each party's pro rata share of the total computed RHP offer, and their applicable share of the right of way consideration paid by the department for the subject, consider each party's separate ownership interest in the subject. If all of the parties involved owned an equal interest in the subject, merely divide the total computed RHP offer by the total number of individuals who owned and occupied the subject.

If some owned greater interests than others, the specific degree of ownership applicable to each will be shown in the instrument by which they acquired the subject. Under this circumstance, the proration will be accomplished by dividing the total computed RHP offer in the same percentage ratio that the property is owned by the separate parties. The RHP offer would be prorated in the same manner when applying the above instructions, one-half to the first party and one-fourth to each of the other two. (The same procedure is applicable when computing each party's pro rata share of the right of way consideration which is necessary to determine how much in addition to its pro rata share of the RHP offer, it must spend, or obligate to spend, in the purchase of its replacement.)

If some of the parties involved purchased and occupied DS&S replacement housing and others failed to do so, those who did purchase and occupy DS&S replacements shall be paid their pro rata share thereof, provided that they spent an amount equal to their prorated share of the consideration paid for the subject dwelling plus their prorated share of the RHP offer in the purchase of such replacement. If two or more of the parties involved jointly purchase a DS&S replacement dwelling, they must, to be eligible for payment, jointly spend an amount equal to their combined prorated shares of the right of way payment for the subject plus their combined prorated share of the RHP offer in the purchase of the replacement.

If all of the parties involved rent separate replacement dwellings in lieu of purchasing, they will be entitled to their share of the one computed rental subsidy payment as discussed in detail in EPG 236.8.11.4(a)(4). Should they all rent the same replacement unit, they will be eligible for one rental subsidy payment.

It is also permissible for some of the parties involved to purchase DS&S replacement housing and be paid their pro rata share of a computed RHP and others to rent replacements, in lieu of purchasing, and be paid a pro rata share of a computed rental subsidy payment. In this situation, it is necessary to compute both a routine RHP and a routine rental subsidy payment. Compute both payments as if a conventional family were involved and as if the other payment computation did not exist, comparing the "entire" subject dwelling unit to the comparable DS&S replacement dwelling unit.

The parties that purchase their replacements are entitled to a pro rata share of the computed RHP offer. The various pro rata shares will be determined as if all of the parties involved (all those who owned and occupied the subject) were receiving a portion of the RHP. The same principle applies if some of the parties owned greater interests in the subject than others. To be eligible for the payment each party which purchases a replacement must spend, or obligate to spend, an amount equal to its pro rata share of the RHP offer plus its pro rata share of the right of way consideration.

Those who rent DS&S replacement units will be entitled to their pro rata share of the computed rental subsidy payment offer. When prorating the computed rental subsidy payment offer, use the total number of parties which owned and occupied the subject when "dividing" the payment.

Should the parties which purchase replacement housing spend an amount that exceeds their prorated portion of the right of way consideration paid for the subject but less than the combined total arrived at by adding their prorated right of way payment to their prorated portion of the computed RHP offer, their RHP must be reduced to an amount equal to the difference between their prorated right of way payment and the amount they actually spent in the purchase of their replacement.

NOTE: The department is not obligated to locate or provide separate DS&S replacement housing that can be purchased or rented. The department's obligation is to provide a comparable DS&S replacement dwelling that would house all of the relocatees involved.

When completing a Replacement Housing Claim Form for a prorated RHP, make a specific reference to this fact under "Comments" and explain the circumstance that justifies this type payment.

The claim form will be completed in the routine manner except for the changes outlined in the following paragraphs.

Complete the first four lines in the "Computations" section of the claim form in the following manner.

The first space on both the first and second lines should be marked "N/A."

In the second space on the first line show the actual amount paid for the replacement dwelling, as is the normal practice.

In the second space on the second line show the pro rata portion of the right of way consideration that the subject individual(s) was/were entitled to receive.

In the first space on the third line (the line entitled "Difference") insert the subject individual(s) pro rata share(s) of the computed RHP offer.

In the second space on the third line reflect the difference between the entries in the second spaces on the first two lines.

Complete the fourth line in the routine manner.

(2) Comparable Decent, Safe and Sanitary Replacement Dwelling is NOT Available

If a comparable or better DS&S replacement dwelling is not made available when two or more eligible individuals and/or families are displaced from the same single-family dwelling which they jointly own and occupy, and as a consequence the individuals and/or families are forced to occupy separate dwellings after displacement, each party (individual and/or family) involved will be entitled to a separate RHP if they actually purchase and occupy separate replacement dwellings. If all of the parties involved purchase and occupy the same replacement dwelling, only one RHP will be made. The one payment will be based on the difference between the amount paid for the subject property and the price of the replacement they purchased and occupied, not to exceed the combined total of their separate RHP offers nor the maximum $31,000 payment limitation for this type of payment.

NOTE: Should the only existing comparable or better DS&S replacement dwellings available to the joint occupancy families require a RHP in excess of $31,000, or if no existing comparable or better replacement is available, determine whether it is more practical to provide separate replacement dwellings as discussed in preceding subparagraph 2 or to make an existing higher priced replacement available, or possibly to build a comparable replacement dwelling, under the Last Resort Housing Program. Submit your findings and recommendations to the Right of Way Section for concurrence prior to making a commitment to the relocatees.

When the individuals and/or families involved are entitled to separate RHPs, apply the computation procedures discussed in preceding subparagraph A, that are applicable when individuals and/or families maintain separate households within the displacement dwelling.

The department's obligation to provide adequate replacement housing will be met if a separate DS&S dwelling is made available to each party which provides comparable space and utility to that which they enjoyed in the subject dwelling. When comparing space between the subject and comparables, consider the space that the separate party privately occupied in the subject dwelling plus community rooms which it shared with the other parties.

C - Two or More lndividuals and/or Families Occupy Same Single-Family Dwelling - One Party Owns Dwelling, Others are Tenants

In this case, the owner-occupants will be entitled to a RHP. When the space privately occupied by the tenants is not a substantial portion of the dwelling, it is proper to select a replacement dwelling that is comparable to the acquired dwelling and base the RHP offer on the difference between the entire right of way offer for the subject residential property and the price of the comparable.

If, however, the space privately occupied by the tenants is a substantial portion of the dwelling, or if a replacement is not available that is comparable to the subject dwelling in its entirety, it is permissible to base the RHP offer on a replacement that is comparable to only that space and utility the owner-occupant enjoyed in the subject unit. Under this procedure, when computing the RHP offer, it will be necessary to carve out the portion of the right of way offer that is chargeable to the space occupied by the owner. Deduct the carved out portion of the right of way offer from the price of the smaller comparable.

The parties which are tenants, and who do not maintain separate households, will be entitled to one rental subsidy payment. In selecting a comparable replacement dwelling unit, consider the total space and utility enjoyed by the separate tenants. Should two or more tenants occupy separate households, each will be entitled to a separate rental subsidy payment.

Should some or all of the tenant families elect to purchase in lieu of renting replacement dwellings, apply the principles discussed.

If all of the parties move to the same single-family replacement dwelling and continue living together under the same occupancy status, the tenants would not be entitled to a rental subsidy payment unless they can prove that their rent has been increased for justifiable reason.

D - Married Couples Separated and/or Divorced Prior to Filing Claim

If both spouses jointly owned and occupied a dwelling unit that was acquired by the department are divorced after acquisition but prior to obtaining replacement housing and as a consequence do not purchase and/or occupy the same replacement dwelling unit, it will be necessary to determine whether or not the court approved property settlement between the two relocatees, specified which party is entitled to receive the relocation payments involved. If so, the payments will be made accordingly. If the court-approved property settlement does not specify which party is to receive the relocation payments, the two relocatees involved will be placed in the same category as individuals which do not maintain separate households and the policy discussed in preceding EPG 236.8.8.3(7)(B)1, will apply.

Couples that are separated at or after the initiation of negotiations for the subject, but not legally divorced, will be considered as a "family" and only one type of payment will be made unless both spouses request in writing that the "one payment" be a rental subsidy payment in lieu of a RHP. If a replacement dwelling is purchased in the names of both parties, both must sign the claim and both will be named on the RHP check, regardless as to whether or not they continue to live separately. If only one of the parties purchase the replacement dwelling, or if they purchase and occupy different replacement dwellings, see the following paragraph. (Contact the Right of Way Section if the party which does not purchase a replacement dwelling desires to assign his/her share of the RHP to the party which does.)

Should one of the parties qualify for the payment and the other fail to do so, the eligible relocatee can claim and be paid his or her pro rata share of the applicable payment. To qualify for a pro rata share of a RHP, under this circumstance, the eligible party would have to purchase and occupy a DS&S replacement dwelling and spend an amount equal to that party's share of the right of way consideration paid for the subject plus that party's pro rata share of the computed RHP offer. If the subject relocatee spent less than the required amount, his/her prorated RHP must be reduced accordingly. Apply the same principle if the two parties purchased different DS&S replacement dwellings. Each could be paid their pro rata share of the one RHP offer if they spend the required amount in purchasing their replacements. The same principles would apply if the two parties rent and occupy different replacement rental units.

It is possible that the terms of a legal separation could create a situation where one of the relocatees involved would be eligible for a rental subsidy payment and the other for a RHP. If a couple becomes legally separated prior to obtaining replacement housing, provide all facts to the Right of Way Section and wait for further instructions.

NOTE: If both spouses jointly owned and occupied a dwelling unit at the initiation of negotiations for the subject dwelling are divorced prior to the time the dwelling is acquired by the department, present all facts involved, specifically information relating to the property settlement agreement, to the Right of Way Section.

(8) Multi-Unit Dwelling Complexes

If the owner of a multi-unit dwelling occupies one of the units therein being acquired, their maximum RHP will be computed in the following manner.

Step 1: An appraiser must prorate the department's total offer for the property to determine the portion that is chargeable to the specific unit occupied by the owners.

Step 2: Locate the most nearly comparable replacement dwelling of the same type that is available on the market.

If the same type complex is not available, locate the most nearly comparable complex of the next lowest density that is available.

Step 3: This step is applicable only if the selected comparable is, of necessity, a single-family residential dwelling.

Deduct the prorated portion of the offer that is chargeable to the unit occupied by the owner-occupant as determined in preceding Step l, from the price of the selected comparable. The resulting figure will be the maximum RHP available.

Step 4: Steps 4 and 5 are applicable if the selected comparable is a multi-family complex.

Prorate the price of the comparable multi-family complex to determine the portion that is chargeable to the specific unit that is most comparable to the unit occupied by the subject relocatees in the acquisition dwelling complex.

Step 5: Deduct the prorated portion of the department's right of way offer that is chargeable to the unit occupied by the relocatees in the acquisition complex, as determined in preceding Step 1, from the prorated portion of the price of the comparable, as determined in preceding Step 4, to determine the maximum RHP available to the relocatee.

To qualify for the computed RHP, the relocatees must spend an amount equal to the prorated value assigned to the unit they occupy in the subject plus the total RHP offer.

If a comparable of lower density is used in computing a RHP, it is recommended that a memo be placed in the unit file clarifying the fact that no comparable of the same density was available.

Should the owner-occupants own the complex in partnership with others, their maximum RHP offer will be computed in the same manner as discussed in the preceding steps; however, the amount they must spend in the purchase of a replacement under this circumstance is determined in the following manner.

Step A: Determine the portion of the total right of way offer for the subject property that the owners will be entitled to receive.

Step B: Apply this same percentage figure to the prorated portion of the right of way offer that is chargeable to the individual unit that the relocatees occupy in the subject complex to determine the portion of the prorated figure they will be entitled to receive.

Step C: The relocatees are entitled to the total computed RHP if they spend an amount equal to the total RHP offer plus their share of the prorated portion of the right of way offer that is chargeable to the unit they occupy in the subject.

(9) Replacement Property Includes Lands in Addition to Residential Improvements and Supporting Land Area

If the replacement property acquired and occupied by qualified relocatees include lands and/or property in addition to the residential improvements and supporting land area, a carve out is not required. The total amount paid for the entire property and a decent, safe and sanitary determination on the dwelling are all that is required.

Should a replacement property be located in another state, advise the Right of Way Section.

(10) Owner Retains and Moves the Acquisition Dwelling

The maximum RHP offer would be computed in the normal manner.

To qualify for payment, owners who retain, move and reoccupy their house after it has been reestablished as a DS&S dwelling unit must spend the entire amount paid to them for their dwelling and supporting land area plus an amount equal to their total RHP offer in the moving and reestablishment of the subject dwelling. The costs that could be included in determining if the relocatees actually spent this amount would be (1) the amount "paid" for the house by the relocatees, (2) the cost of a replacement building lot, (3) the cost of moving the house and reestablishing it in a comparable condition as existed prior to the move, and (4) any expenditures necessary to upgrade the dwelling to DS&S standards.

If the owners relocated their dwelling on the remainder of their residential building lot or on other land they owned prior to the current displacement, they can include the current value of such land as having been spent in the moving and reestablishment of their dwelling. (Review the principles in NOTE B in EPG 236.8.8.3.)

If the owners relocated their dwelling on the remainder of their residential building lot, use the "after value" of the lot, as shown in the right of way appraisal, in lieu of "the cost of a replacement building lot." If they relocate the dwelling on other land they owned prior to the current displacement, they can include the current value of an area equal in size to a standard residential building lot in the area. It will normally be necessary to staff appraise the pre-owned replacement site to establish its current value. These appraisals can be reviewed and approved in the district office.

If the relocatees acquired replacement land on which they reestablished their dwelling that was larger in size than a typical residential building lot in the area, the instructions provided in preceding subparagraph (9), will apply.

Expenses and costs will be considered in determining the relocatees' overall expenditure in moving and reestablishing their dwelling unit. The value of other labor that was "contributed" can only be included in determining the total expenditure if written approval is obtained from the Right of Way Section.

To compute a RHP under this circumstance deduct the amount of the relocatees' right of way payment for their dwelling and supporting land from the total "applicable" costs they experienced in moving and reestablishing the dwelling. The relocatee will be entitled to the resulting figure or the amount of the computed rental subsidy, not to exceed $7,200, or the amount they would be entitled to if they were 90-Day owners, whichever is the lesser.

(11) Computations Involving Life Estates and Lessees Qualified as Owners

RHPs for the holders of life estates and long-term lessees who qualify as owners under the Relocation Program (see EPG 236.8.1.3(p)), will be for the lesser of the two following amounts:

A. the difference between the total amount paid by the department for the subject residential property and the confirmed price of the most nearly comparable DS&S replacement dwelling that is for sale in the area, or

B. the difference between the portion of the department's payment for the subject property that the relocatee receives and the actual amount paid by such relocatees for a DS&S replacement dwelling. If the relocatees purchase a life estate in the replacement dwelling or a lease with not less than 50 years duration, consider the amount paid for such interest as the purchase price of the replacement dwelling.)

When completing the RHP Claim Form show preceding Computations A in the first spaces on the first and second lines under the Computations Section and Computation B in the second spaces on the same two lines.

Relocatees in this category who rent rather than purchase DS&S replacement dwellings are entitled to rental subsidy payments.

(12) Mobile Homes

If the displaced owner of a mobile home qualifies for a RHP covering both the mobile home and supporting land area, compute the maximum payment in the normal manner. If a comparable DS&S mobile home and/or site is not available, it will be necessary to calculate the payment on the basis of the next highest type of dwelling that is available and meets applicable DS&S standards. The unit file must be documented to explain the situation.

A replacement may not be available for purchase as a unit and it may be necessary to compute the RHP in two parts (1) mobile home, and (2) site, and combine them into one payment, which normally cannot exceed $31,000. When this action becomes necessary, prepare separate Comparison Records for each computation using the appropriate prorated portion of the department's right of way offer in the applicable computation.

When the mobile home and site are considered separately, the cost of the comparable replacement mobile home may include "tie-down" expense, underpinning, transportation and/or delivery costs, installation costs a comparable hard surface pad if the subject mobile home was sitting on a hard surface pad, utility connections, steps, air conditioning, if the subject mobile home also had an air conditioning unit that was considered to be a part of the real estate and any other "built-in" furniture and/or appliances which were also considered in the subject unit as a part of the real property. Do not include the cost of insurance or sales tax. Sales tax is considered to be a reimbursable incidental closing cost and therefore cannot be considered in determining the cost of the replacement mobile home.

It is desirable that a replacement site be selected that has utilities available to enable the relocatees to establish their mobile home in a DS&S manner. If sites with utilities are not available, however, it is permissible to select suitable "unimproved" sites and add the cost of providing whichever of the necessary and/or reasonable site preparation costs to the price of the unimproved lot.

If the RHP covers land only, base the payment offer on the difference between that portion of the department's right of way offer that is chargeable to the mobile home site and the confirmed price of the most nearly comparable replacement site available.

It is permissible to include money spent in providing necessary utilities to the replacement site as necessary to enable the relocatees to reestablish their mobile home in a DS&S manner, as well as necessary and/or reasonable site preparation costs, when determining the total amount spent by the relocatee in obtaining their replacement mobile home site.

If a partial acquisition is involved and the most nearly comparable replacement site available is the remainder of the subject parcel or other land in the area owned by relocatee, it is permissible to base the payment offer on the difference between that portion of the department's right of way offer that is chargeable to the subject mobile home site and the current value of the remainder or, if applicable, a portion of the remainder that is comparable in size to the subject site plus reasonable site preparation and other costs necessary to enable the mobile home to be reestablished in a DS&S manner.

(1) Payment Covers Both Mobile Home and Land

The displaced owner-occupant of a mobile home can be paid a RHP, not to exceed $31,000, covering both the mobile home and the land upon which it is located when:

(a) the mobile home has been properly classified as real property and is acquired as such by the department, together with the land upon which it is located,

(b) both the mobile home and land upon which it is located have been owned and occupied by the subject relocatee for at least 90 consecutive days prior to the initiation of negotiations for such property, and

(c) all other eligibility requirements as outlined in EPG 236.8.8.2, have been met. The RHP will be computed in the same manner as if a conventional dwelling was involved.

(2) Payment Covers Mobile Home Only

The displaced owner-occupant of a mobile home which is located on land belonging to another party can be paid a RHP covering the mobile home, but not the land upon which it is located when:

(a) the mobile home has been determined to be real property and is acquired by the department as such,

(b) the owner has owned and occupied the mobile home while located on the site from which it is being displaced for the required 90-Day period, and

(c) all other eligibility requirements as outlined in EPG 236.8.8.2, have been met.

NOTE: The owner of the mobile home could also be paid the equivalent to a rental subsidy payment covering the site as discussed in EPG 236.8.11.2(g)(1), if they meet the eligibility requirements for the separate payments involved. (The total RHP, including the portions relating to both the mobile home and site, cannot normally exceed $31,000.)

(3) Payment Covers Land Only (Mobile Home Site)

The displaced owner-occupant of a mobile home can be paid a RHP covering the land upon which the mobile home is located when:

(a) the mobile home was not considered to be a part of the real property and was not acquired as such by the department,

(b) the mobile home was occupied by the relocatee on land he/she also owned (subject site) for at least 90 consecutive days prior to the initiation of negotiations for such land, and

(c) all other eligibility requirements as outlined in EPG 236.8.8.2, have been met.

(4) Mobile Home is Personal Property and Does Not Meet Decent, Safe and Sanitary Standards

The procedures discussed in this subparagraph are applicable when, and only when, the subject mobile home is (1) owner-occupied, and (2) does not meet decent, safe and sanitary standards under the conditions discussed in the following paragraph.

The subject mobile home will be non-decent, safe and sanitary if it does not meet the standards set out in EPG 236.8.1.3(j), that relate to mobile homes and could not reasonably be expected to do so after being moved to a suitable replacement site. The policies discussed herein do not apply when a mobile home fails to meet decent, safe and sanitary standards for the sole reason that it is not properly tied down.

All relocation payments discussed in this subparagraph are subject to the maximum amounts authorized for the type of payment involved. If a decent, safe and sanitary replacement dwelling cannot be made available to the displaced owner-occupant under the procedures provided herein, it will be necessary to work out a solution under the Last Resort Housing Program.

The policies discussed herein are applicable when the non-decent, safe and sanitary unit is a travel trailer or a motorized unit. If the owner-occupant is entitled to a payment based on the cost of a replacement unit, the replacement unit used in computing the applicable RHP should normally be a mobile home, not a replacement travel trailer or motorized unit, which provides comparable or better living space as that contained in the subject unit. The trade-in value used in computing the payment will be the total trade-in value of the subject unit.

The phrase "90-Day occupants" as used in this subparagraph (and in following subparagraphs 5 and 6) relates to relocatees who own non-decent, safe and sanitary mobile homes, as personal property which they occupied on the site from which they are being displaced for at least 90 consecutive days prior to the initiation of negotiations for the subject site.

The procedure to use in computing RHPs relating to non-decent, safe and sanitary mobile homes depends on whether or not it is reasonable and practical to rehabilitate the mobile home by correcting the decent, safe and sanitary deficiencies involved.

Relocatees who receive RHPs relating to non-decent, safe and sanitary mobile homes are also entitled to the routine replacement housing or a rental subsidy payment due to being displaced from the site upon which the subject mobile home is located. The combined payments cannot exceed either (1) the maximum relocation payment available for the type occupancy involved (long-term owner $31,000 or short-term owner $7,200).

In cases where the RHP is based on rehabilitation costs, the relocatee is entitled to a moving cost payment.

The Eligibility Notices discussed in EPG 236.8.3.3, will not normally be applicable under the procedure discussed in this subparagraph. It will be necessary to compose a carefully written eligibility notice to fit the circumstance involved.

The following paragraphs provide procedures for computing payments under the various combinations of circumstances that will be encountered.

A. 90-Day Owner-Occupants - Also Own Subject Site

Procedure 1: Rehabilitation of Mobile Home is Practical

If it is less expensive to rehabilitate the subject mobile home, apply the following procedure when computing the relocatees' RHP offer and in computing the actual amount they are entitled to be paid.

Step One: Obtain two bids from qualified bidders for correcting the DS&S deficiencies that exist in the subject mobile home.

Step Two: Compute a RHP offer as if the mobile home was not involved.

Step Three: Determine the relocatees' total RHP offer by adding the lowest bid from Step One to the amount arrived at in Step Two. The resulting total, which will not normally exceed $31,000, will be the relocatees' RHP offer and is the maximum amount they can be paid under this procedure.

When determining the actual RHP that the relocatee is entitled to receive, take the following additional steps:

Step Four: Establish the difference between the department's actual payment to the relocatees for the subject site and the actual amount the relocatee paid for a replacement site.

Step Five: Determine the actual (documented) amount that the relocatee spent in correcting the DS&S deficiencies that existed in the subject mobile home.

Step Six: Add the lesser of the amounts established in Steps Two and Four to either (1) the amount established in Step Five, or (2) to the lowest bid price obtained in Step One, whichever is the lesser. The resulting total (not to exceed $31,000) is the actual amount that the relocatee can be paid as a RHP.

The relocatees would also be entitled to reimbursement for their incidental closing and increased interest costs relating to the purchase of the replacement site. (Should the addition of these costs to the payment determination in Step Six cause the total to exceed $31,000, proceed under the provisions for last resort housing payments.)

If the relocatees rent a DS&S replacement mobile home and site or a conventional dwelling instead of correcting the deficiencies in the subject mobile home, they can be paid a rental subsidy payment equal to the lesser of the following amounts:

1. $7,200 maximum rental subsidy payment, or

2. 42 times the difference between the monthly economic rental fee that is applicable to the subject mobile home and site and the monthly fee charged for the most nearly comparable replacement that is available for rent, or

3. 42 times the difference between the monthly economic rental fee that is applicable to the subject mobile home and site and the actual monthly rental fee they pay for their replacement mobile home and site, or conventional dwelling unit, or

4. 42 times the difference between the monthly economic rental fee applicable to the subject site only and the monthly rental fee charged for the most nearly comparable replacement site available plus an amount equal to the lowest bid received for correcting the decent, safe and sanitary deficiencies in the subject mobile home, or

5. 42 times the monthly economic rental fee that is applicable to the subject site and the actual rental fee being paid for the replacement mobile home site actually occupied by the relocatees plus an amount equal to the lowest bid received for correcting the decent, safe and sanitary deficiencies in the subject mobile home.

In each of the preceding situations the subject mobile home remains the property of the relocatees and they can keep or dispose of it as they see fit. They will be entitled to an actual moving cost payment for moving their mobile home up to 50 miles.

Procedure 2: Rehabilitation of Mobile Home Not Practical

When it is more costly to rehabilitate the mobile home by correcting its decent, safe and sanitary deficiencies than to apply the following payment procedure, compute the relocatees' RHP offer by deducting the trade-in value of the mobile home and the right of way offer for the site from the amount necessary to purchase the most nearly comparable DS&S mobile home and site available, or, in the absence of an available mobile home and site, from the amount necessary to purchase a DS&S conventional replacement dwelling. When searching for an available DS&S mobile home and site, it is not necessary that the replacement mobile home be situated on the replacement site at the time they are selected for use in computing the payment offer, as long as it is practical for the relocatees to locate the selected mobile home on the selected site in a DS&S manner.

To be eligible for the entire computed offer, the relocatees must purchase both a DS&S dwelling unit and site within the applicable one-year period, at a cost equal to or exceeding the price of the selected comparable. Should the combined costs of their replacement dwelling and site be less than the required amount, their RHP must be reduced accordingly.

If the relocatees locate their DS&S mobile home on other land they owned prior to the current displacement, consider the current fair market value of such land, not to exceed an area equal in size to a standard residential building lot in the area, as having been spent in obtaining a replacement site. EPG 236.8.8.3(a)(l0) provides additional information relating to the procedure for valuing the portion of the relocatees' previously owned land that is used as a replacement site.

The "trade-in value" to be used in the computations is the documented amount determined by the District as the in-place trade-in value of the subject mobile home in the purchase of a comparable DS&S replacement mobile home delivered to and "set up" on a replacement site in the area.

The relocatees would not be required to actually trade-in the subject mobile home if they prefer to keep it; however, their decision to retain it does not change the requirement that they must spend an amount equal to or exceeding the confirmed price of the selected comparable on the purchase of the DS&S replacement dwelling that they occupy after displacement.

If the relocatees desire to purchase a DS&S replacement mobile home and rent a replacement site, compute a RHP offer based on the mobile home only and a rental subsidy payment offer covering the site. The combined totals of the two payments cannot exceed $31,000. The RHP offer would be the difference between the cost of a comparable DS&S replacement mobile home and the trade-in value of the subject mobile home. In this case the right of way offer for the subject site would not be a factor in computing the RHP offer. To be eligible for the entire computed RHP offer (not to exceed $31,000), the relocatees must spend an amount, in the purchase of their replacement mobile home, that is equal to or exceeds the confirmed price of the selected comparable mobile home. To be eligible for the entire rental subsidy payment offer they must pay a monthly rental fee for the replacement site that is equal to or exceeds the amount necessary to rent a comparable site.

The relocatees will be entitled to a routine incidental closing cost and/or increased interest payment relating to the replacement mobile home. In addition, they could receive a moving cost payment covering the reasonable cost of relocating any personal property other than the cost of relocating the subject mobile home. If they select the fixed-payment option, their payment will be based on Subschedule A that is discussed in EPG 236.8.6.8(c).

The mobile home remains the property of the relocatee; however, reoccupying by them at a new location after displacement will normally eliminate payment eligibility under the policy outlined in this subparagraph.

Should the relocatees elect to rent a replacement in lieu of purchasing, compute a rental subsidy payment based on a comparable DS&S dwelling unit. In this case the relocatees would be entitled to a moving cost payment for the actual cost of moving their mobile home.

B. 90-Day Owner-Occupant of Mobile Home Located on Rented Site

The general principles discussed in the preceding paragraphs also apply when the subject mobile home is located on a rented site.

Procedure 1: Rehabilitation of Mobile Home is Practical

Under this circumstance the relocatees are entitled to a RHP based on either (1) the lowest of at least two bids from qualified bidders for correcting the decent, safe and sanitary deficiencies in the subject mobile home, or (2) the actual amount spent by the relocatees in correcting such deficiencies, whichever is the lesser. They are also entitled to a routine rental subsidy payment covering the rented site. The combined total of the two payments cannot exceed $31,000.

Should the relocatees purchase and occupy a DS&S replacement mobile home in lieu of correcting the deficiencies in the subject mobile home, they can be paid a RHP based on (1) the difference between the trade-in value of the subject mobile home and the confirmed price of a comparable DS&S replacement mobile home, or (2) the difference between the trade-in value and the amount they paid for the replacement unit actually purchased, whichever is the lesser; however, such payment cannot exceed the lowest bid for correcting the DS&S deficiencies in the subject unit. They would also be entitled to their rental subsidy payment covering a replacement site.

If they purchase a replacement mobile home and site or conventional dwelling in lieu of correcting the DS&S deficiencies in the subject unit, they would be eligible for a RHP not to exceed $31,000. They could be paid an amount equal to the lesser of the following two amounts: (1) the computed rental subsidy plus incidental cost plus the computed RHP, or (2) the amount they actually pay including incidentals on their replacement dwelling.

If the relocatees rent a dwelling (in lieu of correcting the deficiencies in the subject unit), they can be paid a rental subsidy payment, based on both the mobile home and site, not to exceed $7,200.

Procedure 2: Rehabilitation of Mobile Home Not Practical

Compute a RHP offer by deducting the trade-in value of the mobile home from the amount necessary to purchase a comparable DS&S mobile home and a rental subsidy or payment covering the site. The combined total of the two payments cannot exceed $31,000.

Should the relocatees purchase both a replacement mobile home and site, they can claim a RHP relating to the mobile home and the site. Under this circumstance they must spend an amount equal to or exceeding the computed amount necessary to purchase a comparable DS&S replacement mobile home and make a down payment on the site equal to the computed rental subsidy. Should they purchase a conventional dwelling as a replacement, instead of a replacement mobile home, they must spend an amount equal to or exceeding the amount determined necessary to purchase a comparable DS&S replacement mobile home and make a down payment on it equal to or exceeding the computed rental subsidy amount.

The relocatees would be entitled to a routine incidental closing cost payment covering the purchase of their replacement dwelling. They would also be eligible for an increased interest payment if the subject mobile home was encumbered with an eligible mortgage. NOTE: The combined RHP in the latter two situations cannot exceed the lesser of (1) $31,000, or (2) the difference between the trade-in price for the displacement mobile home and the total purchase prices of the replacement mobile home and site, or the purchase price of the conventional replacement dwelling.

If the relocatees rent a DS&S replacement dwelling unit in lieu of purchasing, they are entitled to one rental subsidy payment (not to exceed $7,200) based on a DS&S replacement mobile home and site, or if more nearly comparable, on a conventional dwelling unit.

If the relocatees purchase a replacement mobile home or conventional dwelling, they can be paid a moving cost payment covering the reasonable cost of relocating any personal property involved other than the cost of relocating the subject mobile home. If they elect the fixed-payment option, their payment will normally be based on Subsection A that is discussed in EPG 236.8.6.8(c). (If the relocatees rent a replacement in lieu of purchasing, they will be entitled to an actual moving cost payment for moving their mobile home.

In each case the mobile home remains the property of the relocatee.

Procedure 3: Rehabilitation of Mobile Home is Practical

Compute a rental subsidy payment offer covering the site. (The mobile home itself is not involved in the computations relating to the site.) (If they purchase their replacement site, their eligible incidental closing costs will be in addition to the computed amount applied as a down payment.)

In addition to the payment discussed in the preceding paragraph, the relocatees are also entitled to a payment based on the cost of rehabilitating the subject mobile home, either (1) the lowest of at least two bids received from qualified bidders for correcting the decent, safe and sanitary deficiencies in the mobile home, or (2) the documented amount that they actually spend in correcting the deficiencies, whichever is the lesser. The combined payment rental subsidy plus rehabilitation costs, cannot exceed $7,200.

Should the relocatees purchase a replacement mobile home instead of rehabilitating the subject unit, they would be eligible for their rental subsidy payment covering the site plus an amount equal to the lesser of: (1) the lowest bid received from at least two qualified bidders for correcting the DS&S deficiencies in the subject unit, or (2) a rental payment. The total combined RHP cannot exceed $7,200.

If the relocatees purchase a conventional dwelling in lieu of rehabilitating the subject unit, they will be entitled to a payment not to exceed the rental subsidy, not to exceed $7,200. They would also be entitled to a moving cost payment for moving the subject mobile home.

If the relocatees rent a DS&S replacement mobile home and site or a conventional dwelling instead of correcting the deficiencies in the subject mobile home, they can be paid a rental subsidy payment computed in the same manner discussed in Procedure 1 under the previous heading "90-Day Owner-Occupants, Also Owns Subject Site" that applies when 90-Day occupants rent their replacement in lieu of rehabilitating their subject mobile home.

Procedure 4: Rehabilitation of Mobile Home Not Practical

Relocatees are entitled to (1) a down payment not to exceed the computed rental subsidy based on the purchase of a DS&S replacement mobile home and site (or conventional dwelling), or (2) if they prefer, a routine rental subsidy payment based on the monthly rental fee of a DS&S replacement mobile home and site, or (3) a rental subsidy payment based on the mobile home and a rental subsidy payment based on the site; HOWEVER, no payment or combination of payments can exceed $7,200.

C. Occupants With Less Than 90-Day Occupancy

Mobile home owners who occupied the subject site for less than 90 consecutive days prior to the initiation of negotiations are not normally eligible for RHP; however, if they are in occupancy at the initiation of negotiations for the site or at the time the department acquires the subject site, they will be eligible for moving costs and it is necessary that comparable DS&S replacement housing be made available to them that is within their financial means before they can be forced to move from the subject property. Any RHP necessary to enable relocatees in this category to occupy comparable DS&S replacement housing must be paid under the last resort housing provisions.

Decent, safe and sanitary replacement housing will be considered as being available to such relocatees if:

(1) a DS&S mobile home is available which they can trade for (or buy outright) without placing them in financial difficulty considering the trade-in value of the subject mobile home, value of the subject site - if they own the site and the cost of a DS&S replacement mobile home.

(2) a DS&S rental unit, either a mobile home and site or a conventional dwelling unit, is available for a monthly rental fee that does not exceed 30% of the combined gross monthly income of the relocatees' family, or

(3) a DS&S conventional dwelling is available for purchase with a down payment (conventional or otherwise) that does not exceed their equity in their existing mobile home and site.

If it is determined that DS&S replacement housing is available, so advise the relocatees and document the unit file accordingly. (If it is not available, it will be necessary to work out a solution under the Last Resort Housing Program.)

(5) Mobile Home is Personal Property - Cannot be Moved Without Substantial Damage

The general principles and specific policies outlined in preceding Section 236.8.8.3(a)(12)(4), which relate to situations in which it is not practical to rehabilitate the subject mobile home also apply when a mobile home is declared personal property and cannot be relocated without substantial damage or unreasonable cost except, when a RHP is involved, the "salvage value" of the subject mobile home will be used in computing the payment instead of "trade-in value." (The "salvage value" of the subject mobile home is the highest bid or purchase commitment that can be obtained for it if sold in place with full knowledge that it must be removed from the site at the buyer's cost.)

When the policy in this subparagraph is applied, the unit file must be documented that the subject mobile home could not be moved without substantial damage.

(6) Mobile Home is Personal Property - Does Not Meet Replacement Mobile Home Park Entrance Requirements

The procedures discussed in this subparagraph are applicable when (1) a DS&S displaced mobile home that has been classified as personal property is owner-occupied, and (2) the only comparable replacement mobile home sites available are in mobile home parks that will not accept the subject mobile home because it does not meet those parks entrance requirements.

Should the relocatees move their mobile home to a replacement site of their choosing without the necessity for rehabilitating it, they will not be eligible for the mobile home RHP discussed in this subparagraph.

NOTE: Review preceding EPG 236.8.8.3(a)(12)(4) in its entirety as the general principles and definitions provided therein are applicable under the conditions discussed in this subparagraph.

Relocatees who are entitled to a RHP based on the cost of a replacement mobile home (not on rehabilitation costs) are also normally entitled to reimbursement of their eligible incidental closing costs if they purchase a DS&S replacement unit and, if they are an otherwise eligible 90-Day occupant, they can be paid an increased interest payment based on the mobile home mortgages.

A. 90-Day Owner - Occupant of Mobile Home Located on Rented Site

An eligible 90-Day mobile home owner-occupant in this category can be paid a RHP consisting of a RHP based on the mobile home and a rental subsidy covering the site on which the unit is located, the combined totals of which cannot exceed $31,000.

If it is less expensive to rehabilitate the subject mobile home to make it admissible in a comparable replacement mobile home park, the relocatees' RHP will be equal to either (1) the lesser of two bids received from qualified bidders to accomplish the rehabilitation, or (2) the documented amount the relocatee actually spends in accomplishing the rehabilitation, whichever is the lesser.

If rehabilitation is not practical, compute the relocatees' RHP offer by deducting the trade-in value of the subject mobile home from the amount necessary to purchase a comparable DS&S mobile home that is acceptable in the replacement mobile home park. The relocatees' actual payment relating to the mobile home will be for the amount of the offer, or for an amount equal to the difference between the trade-in value and the amount actually spent by the relocatee in purchasing a DS&S replacement mobile home that is acceptable in the available park or a conventional dwelling, whichever amount is the lesser.

If relocatees who are eligible for a payment based on rehabilitation costs purchase a DS&S replacement in lieu of rehabilitating the subject unit, their RHP will be for either (1) the lowest rehabilitation cost bid, or (2) the difference between the trade-in value of their existing unit and the actual price they pay for the replacement, whichever amount is the lesser. (In this case they would not be entitled to closing costs or an increased interest payment covering the replacement mobile home purchase.) If the relocatees purchase both a replacement mobile home and site, their total RHP cannot exceed the lesser of (1) $31,000, or (2) the difference between the acquisition price paid by the department for the Displacement mobile home and the total (combined) purchase prices of the replacement mobile home and site, or if applicable, the purchase price of a conventional replacement dwelling.

If relocatees, whose RHP relating to their mobile home was based on rehabilitation costs, elect to rent a replacement rather than rehabilitate their existing unit, they can do so and be paid a rental subsidy payment based on the rental fee of a DS&S replacement mobile home, that would meet the mobile home park entrance requirements and a site comparable to the subject site, or if necessary, on the rental fee of a conventional replacement dwelling.

Their total rental subsidy payment would be the lesser of the following amounts:

(1) 42 times the difference between the monthly economic rental fee that is applicable to the subject mobile home and site and the monthly rental fee charged for the most nearly comparable replacement mobile home and site, or conventional dwelling, that is available for rent,

(2) 42 times the difference between the monthly economic rental fee that is applicable to the subject mobile home and site and the monthly rental fee of the replacement that they actually rent,

(3) 42 times the difference between the monthly rental fee being paid for the subject site and the monthly rental fee of the most nearly comparable replacement site that is available for rent plus the lowest of the rehabilitation cost bids, or

(4) $7,200.

If the relocatees' RHP relating to the mobile home was based on the cost of a replacement mobile home, they can be paid a rental subsidy payment covering both the mobile home and site. The one rental subsidy payment not to exceed $7,200 would be computed in the routine manner using the monthly economical rental fee that is applicable to the subject mobile home and site. (In determining the economic rent applicable to the subject mobile home and site it is normally desirable to combine the actual existing site rental and the economic fee applicable to the mobile home.)

Relocatees who rent rather than rehabilitate or purchase a replacement are entitled to a routine moving cost payment.

NOTE: Should the relocatees elect to use their rental subsidy as a down payment to replace the subject rented site, they will not normally be eligible for a RHP under the provisions of this subparagraph as they would not normally be required to meet any entrance requirements to relocate their mobile home on a replacement site that they own. (An exception could exist if (1) no replacement sites are available for rent, (2) the only replacement site available for purchase is in a mobile home park that sells sites, and (3) the subject mobile home does not meet the entrance requirements of the park that sells sites.)

B. 90-Day Owner-Occupant - Also Owns Subject Site

If the relocatees in this category own both the mobile home (personal property) and the site upon which it is located, they would not normally be eligible for the RHP discussed in this subparagraph.

Two exceptions under which the relocatees could qualify for the type of mobile home RHP discussed in this subparagraph are:

Exception One: The only comparable DS&S replacement mobile home sites available for purchase are located in mobile home parks that sell sites and the subject mobile home does not meet those park's entrance requirements.

Exception Two: All three of the following conditions exist: (a) a comparable replacement site is not available for purchase, (b) the relocatees are agreeable to renting a replacement site, and (c) the only comparable replacement rental site available is in a mobile home park that will not accept the relocatees' mobile home because it does not meet the park's entrance requirements. Under the first exception the relocatees could be paid two separate RHPs: one payment covering the site and the other covering the mobile home, under the specific policies, procedures and limitations set out in this subparagraph. (The combined total of the two payments cannot exceed $31,000.) Under the second exception the relocatees could be paid a routine rental subsidy payment covering the site and a RHP under the provisions of this subparagraph not to exceed a combined total of $31,000.

C. Owner-Occupants With Less Than 90-Day Occupancy

Mobile home owners who occupied the subject site for less than 90 consecutive days prior to the initiation of negotiations for such site are not eligible for payment under the policies discussed in this subparagraph; however, if they are in occupancy at the initiation of negotiations for the site or at the time the department acquires the subject site, they will be eligible for moving costs and it is necessary that comparable DS&S replacement housing be made available to them that is within their financial means before they can be forced to move from the subject property. (Any RHP necessary to enable relocatees in this category to occupy comparable DS&S replacement housing must be paid under the last resort housing provision).

Decent, safe and sanitary replacement housing will be considered as being available to the relocatees if (1) a replacement mobile home site is available that will enable the relocatees to reestablish their mobile home in a comparable decent, safe and sanitary manner provided that such site can be rented for a monthly rental fee that does not exceed 30% of the combined gross monthly income (if they are considered “low income”) of the relocatees' family, (2) an adequate replacement mobile home site is available for purchase that is within the relocatees' financial means, (3) a conventional DS&S rental dwelling unit, or an established mobile home, is available for a monthly fee that does not exceed 30% of the relocatees' gross monthly income (if they are considered “low income”), (4) the relocatees are financially able to trade for (or buy outright) a mobile home that is acceptable in the replacement mobile home park which will not accept the subject unit, and (5) a DS&S conventional dwelling is available for purchase that is within the relocatees' financial means and which they can buy with a down payment that does not exceed their equity in the existing mobile home. (If it is determined that DS&S replacement housing is available to the relocatees, a memo must be placed in the unit file to explain the decision.)

If it is determined that DS&S replacement housing is available, advise the relocatee and document the unit file accordingly. If it is not available, it will be necessary to work out a solution under the Last Resort Housing Program.

(13) Subject Dwelling Owned in Partnership Between Occupants and Non-occupants

Eligible occupants who own the subject dwelling in partnership with other parties who are not occupants will be entitled to a RHP equal to the lesser of the following amounts:

Computation A: The difference between the total amount paid for the subject residential property and the price of the most nearly comparable DS&S replacement dwelling.

Computation B: The difference between the portion of the payment for the subject residential property that the relocatees receive and the actual amount paid by such relocatees for a DS&S replacement dwelling. If the relocatees purchase the replacement in partnership with other parties who were not in occupancy of the subject do not consider any portion of the replacement purchase price that was paid by the other parties.

When completing the RHP Claim Form show preceding Computations A in the first spaces on the first and second lines under the Computations Section of the form and Computations B in the second spaces on the same two lines.

Should two or more eligible individuals and/or families occupy the subject single-family dwelling, combine the applicable instructions in this subparagraph with those provided in EPG 236.8.8.3(a)(7).

NOTE: Partial owner-occupants who cannot secure financing or who cannot afford to purchase comparable replacement housing can be treated as tenants and receive a rental subsidy payment instead of a RHP.

(14) Relocatee Purchases Replacement in Partnership With Other Parties

When eligible displaced owner-occupants purchase their replacement dwelling in partnership with other parties, as discussed in EPG 236.8.8.2(h), compute their payment by using a Replacement Housing Claim Form in the following manner:

Step 1: Complete the form as discussed in EPG 236.8.8.4, down to the "Computations" section.

Step 2: Ascertain the percent of ownership that the relocatees acquired in the replacement property.

Step 3: Apply the percentage figure arrived at in Step 2 above to the total amount paid for the replacement property to determine the portion of such payment that was the relocatees' obligation to pay.

Step 4: Insert the amount arrived at in Step 3 in the second space on the first line under the "Computations" section on the form. (This action will reflect the subject relocatees' "actual cost" as being the amount arrived at in Step 3.)

Step 5: Complete the balance of the form in the routine manner unless an increased interest payment or incidental closing costs are involved. If incidental closing costs are involved, adjust the total incidental cost figure (tenth line under "Computations") to include only the portion of such costs, which would have been the subject relocatees' obligation to pay. (Apply the same percentage figure arrived at in Step 2 above to the total incidental closing cost figure to determine the relocatees' portion of such closing costs.) If the relocatee is also entitled to an increased interest payment, see EPG 236.8.10.3(e)(15), for instructions concerning the amount to include in the claim form as the applicable increased interest payment amount.

Make any notations on the back of the claim form that are necessary to clarify the amounts included therein.

The unit file must be documented to reflect and support the above computations. (Also see EPG 236.8.1.5(f).)

(15) Insurance Proceeds From Catastrophic Occurrence

The amount of any insurance proceeds received by a relocatee in connection with a loss to the displacement dwelling such as a fire, flood or wind storm shall be added to the department's right of way offer and to the right of way payment for the dwelling when computing the RHP offer and payment. Insurance proceeds from the loss of contents within the dwelling are not to be included in the RHP computations.

(a) Replacement Housing Comparison Record (RA Form 236.8.8.3(b).)

(1) When Prepared

The district must make eligible owner-occupants a written RHP offer at the initiation of negotiations. A Replacement Housing Comparison Record (RA Form 236.8.8.3(b) will be used in establishing this offer).

The Replacement Housing Comparison Record should be completed during the period that the appraisals of a parcel are being reviewed so that negotiations can be initiated immediately after an approved negotiating figure is received. The normal procedure is to complete all of the Replacement Housing Comparison Record for a property during the appraisal review period except the line designated "Department's Offer Before Value For Subject Residential Property" which can be quickly completed upon receipt of the approved negotiating figure.

If the Comparison Record is completed prior to the time an approved negotiating figure is received, as discussed in the preceding paragraph, it will be necessary to use the negotiating figure recommended by the district in computing the RHP offer. When this procedure is used, it is essential that the recommended negotiating figure used in the computations be compared with the approved negotiating figure. If they differ, the Replacement Housing Comparison Record must be revised using the approved negotiating figure.

(2) Selection of "Comparables"

In every case, the comparables used in the Replacement Housing Comparison Record must:

A. Be currently available for purchase on the market.

B. Meet decent, safe and sanitary requirements.

C. Meet the definition of "Comparable Replacement Dwelling" as set out in EPG 236.8.1.3(i).

D. Be the three dwellings that are most nearly "comparable" to the subject than any other available properties that meet the above requirements. The relocatees' choice of replacement housing and/or areas in which they desire to relocate are not factors in selecting the comparables to be used in the Replacement Housing Comparison Record.

Comparables must be "functionally equivalent" to the displacement dwelling with particular attention to the number of rooms and gross living space. The comparable selected for use in computing the relocatees' RHP offer should be the available DS&S dwelling that is most comparable in all ways to the displacement dwelling. Gross living space is based on outside measurements excluding garages and unfinished areas.

To be functionally equivalent, the comparable must perform the same primary functions as the displacement dwelling and enable the relocatees to maintain the same lifestyle as before displacement. For example, if the relocatees had sleeping accommodations for themselves and two separate house guests in the displacement dwelling, they must have the same capabilities in the comparable replacement dwelling.

It is desirable that the comparable replacement be physically similar to the subject in regard to age, type construction, room arrangement, specialized furnishings or minor attributes, so long as it is functionally equivalent. For example, if a displacement dwelling contains a garage which is used as a laundry room, a comparable replacement dwelling with sufficient space to perform the same function meets the comparability requirement.

A reduction in the number of rooms or living area in a selected comparable as compared to the displacement dwelling is not normally authorized. An exception may exist, with concurrence from the Right of Way Section, if a relocatee specifically requests a smaller unit. Only in unusual circumstances may a comparable replacement dwelling contain fewer rooms or living area than the displacement dwelling. Such may be authorized when a DS&S comparable replacement dwelling, which is adequate to meet the needs of the relocatees, is found to be "functionally equivalent" to a larger but very run-down substandard displacement dwelling.

When mobile homes are involved use outside dimensions when computing square footages, both in the subject and comparables.

To the extent feasible, comparable replacement dwellings must be selected from the neighborhood in which the displacement dwelling was located or, if that is not possible, in nearby or similar neighborhoods where housing costs are generally the same or higher.

A comparable replacement site should include normal site improvements, including customary landscaping but need not include major exterior attributes such as outbuildings, swimming pools and greenhouses. Should a selected comparable lack customary landscaping, it is permissible to add the reasonable cost of providing it to the price of the comparable. Landscaping costs should be based on the price of normal-sized balled nursery stock, not on the price of large and/or mature-sized plantings. The cost of providing grassed lawns should be based on seeding the area.

The most nearly comparable DS&S replacement available will be used in computing the RHP unless it is not adequate to accommodate the relocatees, in which case, the most nearly comparable DS&S replacement available that is adequate to meet their needs will be selected and used in computing the payment.

The most common reasons for disqualifying a comparable replacement due to its inability to accommodate the relocatees will be (1) an inadequate number of bedrooms to enable family members (other than infants and small children) to be separated according to sex, (2) an inadequate number of bedrooms to avoid "overcrowding" and (3) an inability to meet the specific needs of aged and/or permanently disabled relocatees.

Any qualified member of the right of way staff can select comparable replacement housing. There is a space on the Replacement Housing Comparison Record for the district Right of Way Manager to concur in the selection of the comparable replacement dwelling. At least two people must agree on the selection. Should the district Right of Way Manager complete and execute the Comparison Record, the district engineer will sign the concurrence space.

The staff member who selects the "comparables" and completes the Replacement Housing Comparison Record must have access to listings of available replacement housing in the area and must not be influenced in the selection of such comparables. The district Right of Way Manager can reject the individual's selection of comparables and select others, with justification in writing, but cannot direct the staff member to select comparables of the district Right of Way Manager’s choosing.

The individual who selects the "comparables" must also be provided a copy of the relocatees' "Relocatee Needs Questionnaire," so he/she will be aware of the relocatees' needs and therefore be in position to select comparables that are "adequate to accommodate the relocatee."

It is also necessary that the individual who selects the comparables always conduct an outside inspection of the dwelling that is being acquired by the department. An interior inspection will not be required if the right of way appraisal includes both a plat and a description of the interior of the dwelling. The exterior of comparable replacement housing used in computing RHPs and the neighborhood in which they are located, must always be visually inspected by the individual who selects the comparables. An interior inspection is not required when reliable information is available regarding the interior.

Although the price of potential replacement housing is not a factor in selecting comparables, overpriced dwellings should be ignored.

Housing that is scheduled for future demolition should never be used as comparables on a Replacement Housing Comparison Record.

A Replacement Housing Comparison Record, once completed for a subject property, should not be revised or replaced unless:

A. An actual error was made in completing the original comparison record.

B. The situation discussed in EPG 236.8.8.3(c)(4), exists.

C. A new study is necessary as the result of an administrative review as discussed in EPG 236.8.15.1.

D. A condemnation agreement is being used and the conditions in EPG 236.8.8.3(d), requiring a "new" comparable replacement selection are in existence.

E. It is necessary to recompute a RHP offer which was based on the confirmed price of a replacement dwelling that exceeds the comparability requirement when the replacement was selected on the basis of "adequacy to meet the relocatees' needs" if the department learns that the need for the additional space, room or special requirement has been eliminated before the displacement occurs and that the relocatees have not already committed themselves in the purchase of a replacement dwelling to the extent that they would suffer financial loss if they do not complete the transaction.

See EPG 236.8.8.3(c)(8), REGARDING REDUCTIONS IN RHP OFFERS.

If an original comparison record is changed or if a new one is prepared to supersede the original, the unit file must be documented to clearly reflect the necessity for such action.

NOTE A: Capital Improvements Involved

If the most comparable DS&S replacement dwelling available is acceptable except for a specific feature which can reasonably be "cured," for example, by adding a carport, garage or other rather easily accomplished capital improvements, it is permissible, with prior concurrence from the Right of Way Section to add the estimated cost of the "cure" to the price of the comparable and use the total figure as the amount necessary to purchase the comparable DS&S dwelling available. It is not intended that this procedure be applied as routine practice.

If authorized "costs-to-cure" are involved and the comparable is purchased by the relocatee, the work must be accomplished within the one-year period allowed for purchasing and occupying a replacement property; however, the replacement housing claim must not be filed until after the "cures" are completed so receipted bills can be provided with the claim to prove the amount of the expenditures involved.

NOTE B: Comparable Replacement Housing for Disabled Persons

To meet DS&S requirements when a disabled person is displaced, a comparable replacement dwelling must be free of any barriers that would preclude reasonable ingress, egress or use of the unit by the relocatee.

If a comparable replacement dwelling cannot be located which meets this specific requirement, the estimated cost of modifying an otherwise comparable replacement dwelling to cure the DS&S deficiencies should be added to the price of the comparable. The instructions in preceding NOTE A are generally applicable.

NOTE C: Comparable Replacement Dwelling Located in Floodplain

A comparable replacement dwelling cannot be located in a floodplain unless (1) the displacement dwelling is located in a floodplain and (2) similar or better flood insurance available at the displacement site is also available at the comparable replacement site without a substantial increase in cost.

Relocatees who select, purchase and occupy DS&S replacement housing in floodplains will be eligible for any RHP they are otherwise eligible to receive.

NOTE D: Major Exterior Improvements

A comparable replacement site should include normal site improvements, including customary landscaping, but need not include special improvements such as outbuildings, swimming pools and greenhouses.

If the comparable replacement site does include the special improvements, the full approved right of way acquisition offer and payment for the displacement residential property (including the value of such special improvements) should be used in computing the replacement housing offer and payment. If the replacement site does not include such improvements, their value must be subtracted from the right of way acquisition offer and payment when computing the RHP offer and payment. (The procedures in EPG 236.8.8.3(a)(2), are applicable when "carving out" the portion of the acquisition offer that is chargeable to the special improvements.)

Occasionally the replacement property actually purchased and occupied by a relocatee will lack a major exterior improvement that was present in both the subject property and the selected comparable used in computing the RHP offer. In this case, the entire approved right of way acquisition offer for the subject residential property, including the value of the referenced exterior improvement, will have been used in the offer computations.

If the relocatee adds this specific improvement to the replacement property, include its actual, reasonable and documented cost to the purchase price of the replacement when determining the "actual cost" of the replacement residential property for use in computing the RHP.

(3) Instructions for Preparation of Replacement Housing Comparison Record

For "Type Property Involved" use descriptive terms such as "single-family, 6-room, brick ranch-type dwelling with 3 bedrooms.

The next space on the form is provided to show the total square feet of gross living area in the subject dwelling unit.

Check whichever blank space is applicable on the next line to reflect a total or partial right of way acquisition.

The next space is provided to show the approved right of way offer for the subject residential property including any offer for an uneconomic remainder of the residential parcel. If the acquisition involves a single-family residential property located on a normal residential building lot, the total approved negotiating figure will be shown in the blank space. If the acquisition includes the residential property plus other lands, show only the prorated portion of the approved negotiating figure that is chargeable to the residential improvements and supporting land area.

Show by check mark whether the amount to be used in computing the RHP offer is the total right of way offer or a prorated portion of the right of way offer or before value.

The three sections provided to describe the available replacement properties, on which the computations are based, are to be completed as follows.

On the first line use a street address if possible, if not, refer to distances and directions from known landmarks in describing the location, such as by intersections, named stream crossings.

The name of the owner of the replacement must be provided on the second line, as well as the name of the Realtor or real estate firm handling the sale. The Realtor's address is to be shown on the third line. If the owner is handling the sale, without the assistance of a Realtor, insert the word "none" in the space provided to show the Realtor's name and provide the owner's address in the next space in lieu of a Realtor's address.

The individual preparing the Replacement Housing Comparison Record must personally contact the Realtor, or if no Realtor is involved, the owner of the property, and confirm the asking price of the property. Insert this amount as the "asking price" in the first space on the fourth line and the name of the person who confirmed that price in the second space.

Dwellings that are obviously overpriced must not be used as comparables on the comparison record.

A space has been provided on the back of the form for a narrative comparison of each comparable to the subject. The narrative must provide a word picture of the important similarities and differences between the two properties with particular emphasis on functional similarities and differences. Specific spaces have been provided at the beginning of each narrative to show the square feet of gross living space contained in the comparable, how the square footage determination was made, total number of rooms and number of bedrooms.

NOTE A: Less Than Three Replacements Available

If three replacement properties cannot be located, document the file. The documentation should discuss the effort that was made to locate three replacements. If no replacements are available, the form cannot be used. The procedure to follow when no acceptable replacements are available is discussed later in this section of the Manual.

The section of the form headed "Final Determination" must be completed as follows.

On each of the first three lines in this section simply insert the confirmed asking/listing price of the correspondingly numbered replacement property.

Next choose the replacement that is most nearly comparable to the subject and insert its number in the space provided on the fourth line. The price of that replacement will be shown on the next line.

Complete the "Final Determination" section by subtracting the department's right of way offer or pro rated offer for the subject residential improvements and supporting land, or, if applicable, the before value of the right of way parcel, from the price of the selected comparable and arrive at the RHP offer.

The Comparison Record is to be completed and signed by the person who selected the comparables. The form is also to be signed by the Right of Way Manager.

When no suitable replacement properties are available for purchase or when a new house that meets comparability requirements can be built for less than the most nearly comparable replacement available, the maximum RHP will be computed on the basis of new house construction. The computed payment will be the difference between the amount paid to the relocatees for their residential improvements and supporting land area and the estimated cost of acquiring a building lot and constructing a comparable DS&S replacement dwelling thereon.

When considering comparability, rely on functional similarity. If the subject is, for example, a large two-story house of old style design that includes large hallways and other "extra space," do not duplicate it. Instead, consider a replacement of modern design which would provide the same utility. Normally, the replacement cost should be based on a house of similar construction - brick to brick, frame to frame, etc., and overall no less desirable than the subject.

The estimated cost of the new house and building lot must be prepared in writing, supported and signed by a qualified member of the right of way staff, normally an appraiser. A district certified appraiser or district Right of Way Manager must also sign it. If the reviewer cannot agree with the cost estimate, he/she must make the necessary revisions and support them in writing. In such instances, the revised figure provided by the reviewer will be used in computing the payment.

The house plan used in computing the estimated cost can be the actual plan the relocatees intend to use if reasonably comparable to the subject. If it is not reasonably comparable, the estimator would select a plan for a dwelling that he/she feels is more nearly comparable.

The actual RHP will be the difference between the amount paid to the relocatees for their residential improvements and supporting land area and the amount they actually spend in purchasing a replacement building lot and constructing the new house not to exceed the computed RHP offer. If they rebuild on previously owned land, the current fair market value of land, equal in size to a residential building lot, can be added to their actual construction costs to determine their overall expenditure. The relocatees must be advised to retain receipts to prove their expenditures and costs. The instructions in EPG 236.8.8.3(a)(l0), relating to the value of any labor performed by the relocatees and to the cost of previously owned land used as a building lot are also applicable in determining their overall expenditure when new house construction is involved.

A summary sheet should be prepared for the unit file showing how the maximum RHP offer was computed. The summary should show the portion of the right of way offer that was chargeable to the subject residential improvements and supporting land area and the estimated construction cost figures as discussed above.

A second summary should be prepared after the final right of way payment is made to show the amount actually paid for the subject residential property by the department and the relocatees' actual construction costs to prove the accuracy of the replacement housing payment being made to the relocatees.

NOTE B: When Applicable to Replacement Farm Homes

When an owner-occupied dwelling is acquired by the department, which is located on a farm unit of adequate size to support a self-sustaining farm operation after the acquisition and when the owners are actually conducting farming operation thereon which contributes at least one-third of their total net income, assume that a replacement dwelling at some other location would not be "reasonably accessible to the relocatees' place of farm employment." It would be proper to compute the owners' RHP on the basis of constructing a replacement DS&S dwelling on their remaining land.

If the relocatees have two distinctly different farm operations at two different and disconnected locations, neither operation related to or dependent on the other, they will not normally qualify for a RHP based on new house construction if the subject dwelling that was acquired by the department was located on one farm and the replacement was constructed on the other unless no other existing DS&S replacement housing was available.

If the owners acquire or build a replacement house at any other location, their payment will be computed in the routine manner.

When the payment is based on new house construction, due to the subject dwelling being located on a farm that is adequate in size after the acquisition to contain a self-sustaining farm operation, the file must be documented to show that the remaining farm is in fact adequate to contain this type operation.

If the relocatees have income not directly related to the farming operation, it will be necessary for them to provide a copy of their most recent federal income tax return to prove that the farm operation produces at least one-third of their total net income. If there are extenuating circumstances involved which cause the District to feel that relocatees are entitled to remain on their farm unit, even though their farm operation does not produce one-third of their total income, submit all facts to the Right of Way Section for final determination.

(b) Payment Computation Adjustments

(1) Changes in Right of Way Offers Due to Value Adjustments

If the right of way offer for an owner-occupied residential dwelling which is being acquired in its entirety is changed due to a value adjustment, the maximum RHP offer can be recomputed by inserting the revised right of way offer in the applicable spaces on the Replacement Housing Comparison Record Form and deducting it from the price of the previously determined most nearly comparable replacement property available.

If right of way offers are changed which include payment for "other lands," or which involve any other situation where prorations are required as discussed in this section, it will be necessary to revise those prorations prior to recomputing the payment. The same appraiser who prepared the original proration should also prepare the revision. A district certified appraiser or right of way manager must approve the revised proration.

After the revised prorated value of the residential improvements and supporting land area is determined, the RHP can be recomputed.

An explanation will be required for the unit file to support a determination that it was not necessary to change the prorated amount assigned to the residential improvements and supporting land area when the total right of way offer was later increased or decreased.

If the right of way offer for the partial acquisition of a normal-sized residential property is adjusted, the adjusted before value of the property will be used in computing the RHP offer.

(2) Changes in Right of Way Offers Due to Administrative Settlement

In these cases the portion of the original offer that was chargeable to the residential improvements and supporting land area must be increased in the same percentage ratio that the overall offer was increased.

(3) Changes Necessary Due to Updating of Appraisals

When right of way negotiations are delayed for a substantial period of time after the appraisals for a parcel are completed, the appraisals will normally be updated to reflect value changes that have occurred since the appraisals were completed. If the approved negotiating figure for an owner-occupied dwelling is changed, it will be necessary to revise the RHP offer. When this occurs the following procedure is applicable:

Determine if the selected comparable that was used in computing the relocatees' RHP offer is still available, or, if not, whether a different DS&S comparable is currently available for a price that does not exceed the price of the original comparable. If so, the revised RHP offer will be based on the difference between the price of the original comparable and the new approved negotiating figure for the residential property. If not, the revised RHP offer will be based on the difference between the price of a newly selected comparable that is currently available to the relocatee and the portion of the new approved negotiating figure that is chargeable to the residential improvements and supporting land area.

In instances when the right of way acquisition includes lands or property in addition to the residential property, a proration (carve out) will have been accomplished to determine the portion of the original approved negotiating figure that was chargeable to the residential improvements and supporting land area. If the new approved negotiating figure for the parcel is based on actual documented value adjustments that are specifically applicable to the subject property involved, it will be necessary to revise the original proration in the manner discussed in preceding subparagraph (2), before recomputing the new RHP offer. If, however, the overall appraised value of the parcel is simply being updated due to a general increase in property values during the period of time since the appraisals were made normally shown as a percentage of increase experienced by similar properties in the area, the instructions in preceding subparagraph (3), are applicable.

(4) Changes Necessary When Selected Comparable Replacement Dwellings Are No Longer Available

If the relocatees request assistance in finding replacement housing, they must be shown housing which is available for purchase for an amount which does not exceed the combined total of the department's right of way offer for their residential improvements and supporting land area and their computed RHP offer.

This can be accomplished easily if the replacement dwelling that was selected as being most nearly comparable to subject on the Replacement Housing Comparison Record is still available for purchase. Merely re-advise them of the availability of the comparable replacement dwelling that was used in computing their maximum replacement housing offer.

If the selected replacement dwelling listed on the comparison record is no longer available or later found to be not comparable or DS&S, it will be necessary to determine if a different DS&S comparable is currently available for a price that does not exceed the price of the original comparable. If so, advise the relocatees of the newly located comparable.

If a "different" comparable cannot be located, it will be necessary to compute a new offer based on the most nearly comparable DS&S replacement dwelling that is currently available to the relocatees. This will be accomplished by completing a new Replacement Housing Comparison Record.

Always retain all comparison records in the unit file including those that have been voided and/or superseded.

If no new comparables can be located, it will probably be necessary to recompute the offer on the basis of new house construction. Should the payment based on new house construction exceed $31,000, the feasibility of providing a suitable DS&S replacement dwelling unit under the Last Resort Housing Program must be determined.

It will normally be necessary to recompute a RHP offer if (1) the relocatee requests that the department point out a specific DS&S replacement that can be purchased for an amount that does not exceed their combined right of way and replacement housing offer and the department cannot do so, (2) the relocatee did not have sufficient time to enter into a purchase agreement for the selected comparable, or (3) it is not possible to locate a currently available DS&S comparable that can be purchased for a price that does not exceed the price of the comparable that was used in computing the relocatees' original RHP offer.

Recomputed RHP offers that are less than the original offer can be presented to the relocatees only when the reduced offer would not cause them to suffer financial loss, embarrassment or other problems of consequence due to their inability to fulfill previous good faith commitments made in anticipation of receiving the original offer.

The reduction of RHP offers is not to be considered routine procedure. The action must be carefully considered on a case-by-case basis.

When a reduced RHP offer is involved, the unit file must be documented to show that none of the above prohibitions existed.

(5) Changes Necessitated by Condemnation Awards and/or Final Legal Settlements

See following sections (d) and (f).

(6) Changes When Owners Retain Salvage Rights For a Reduced (or Nil) Charge

When property owners are permitted to retain salvage rights in their right of way settlement without cost or for a reduced salvage value and with little or no deduction from their right of way payment, the full value of the salvage items involved, as reflected on the approved right of way Form 6.3.3, must be added to the "cash" consideration paid by the department for their residential property when computing the amount of their actual RHP. Include the salvage values as a part of the owners' "Right of Way Payment" when completing the second line under "Computations" on their Replacement Housing Claim Form, RA Form 236.8.8.4(b). This instruction is not applicable if the value of the salvageable items was reduced for the reason that they had been "overpriced" as salvage in the original appraisal process. In this case, the adjusted salvage values, instead of the original salvage values, would be added to the "cash" consideration paid for the residential property when computing the RHP.

(7) Other Changes in RHP Offers

Approval for the recomputation of RHP offers may also be obtained from the Right of Way Section on a case-by-case basis when the original offer was of necessity based on a substantially better than comparable replacement dwelling when:

(1) a more nearly comparable replacement dwelling becomes available which would produce a more realistic RHP offer, and

(2) a reduction in the RHP offer would not cause the relocatee to suffer financial loss, embarrassment or other problems of consequence due to his/her inability to fulfill previous good faith commitments made in anticipation of receiving the original offer.

A corrected "Eligibility Notice" must be provided to relocatees who’s RHP offers are revised.

(c) Advanced RHPs in Condemnation Cases

The same procedure is applicable in carrying out the various phases of the Relocation Program when condemnation is involved except when the owner of a residential property being acquired through condemnation is entitled to a RHP.

Relocatees who are entitled to RHPs and whose properties are being acquired through condemnation can elect either of the two following options in claiming such payment.

(1) The qualified owner-occupants can enter into a Condemnation Agreement, RA Form 236.8.8.3(e)(1)), or Form 236.8.8.3(e)(2), whichever is applicable, as discussed in the following paragraphs and receive their RHP prior to final settlement of their condemnation case, OR

(2) They can wait until final settlement of their condemnation case and then file a replacement housing claim.

Condemnation agreements are not applicable when a 90-Day owner elects to rent rather than purchase replacement housing.

If the first option is chosen, the following procedure is applicable.

If the acquisition involves a residential property only, with no other lands, property or rights involved, the RA Form 236.8.8.3(e)(1) is applicable. If, however, the acquisition includes land, property, or rights in addition to the residential improvements and supporting land area, the RA Form 236.8.8.3(e)(2) must be used. The latter agreement is applicable when residential quarters and a business operation are both located in the same building.

The agreement can be signed:

1. after the condemnation commissioners' award is paid into court,

2. after the relocatees have purchased and occupied a DS&S replacement dwelling and are otherwise eligible for the payment, and

3. prior to final settlement of their condemnation case.

When a condemnation agreement is used, the RHP must be recomputed after the condemnation commissioners' award has been filed and prior to execution of the agreement, and shall be the difference between the portion of the condemnation commissioners' award that is chargeable to the subject residential property and the actual amount paid for a DS&S replacement dwelling by the relocatees or the difference between such condemnation commissioners' award and the price of the most nearly comparable DS&S replacement dwelling available, whichever is the lesser. Instructions in following subsection (2) explain how to determine the portion of the condemnation commissioners' award that is chargeable to the subject residential property.

The price of the selected comparable replacement dwelling reflected in the original Replacement Housing Comparison Record will be used in the above recomputations unless all of the following conditions exist:

1. The relocatees contend that there was no comparable DS&S replacement dwelling available between the time they received their first vacancy notice and the required vacancy date quoted in their final "Notice to Vacate" that could have been purchased for the price of the comparable replacement used in computing their original RHP offer. The date that the relocatees actually moved is not a factor in the recomputations.

2. The confirmed price of the most nearly comparable replacement dwelling unit that was available between the time the relocatees received their first vacancy notice and the required vacancy date quoted in their final "Notice to Vacate" was higher than the price of the comparable that was used in computing their original RHP offer. To make this determination, the newly selected comparable does not have to be currently available but must have been available for a reasonable period between the issuance of the relocatees' first and final vacancy notices. A new Replacement Housing Comparison Record, RA Form 236.8.9.3(b), must be used in the selection of the new comparable replacement dwelling and the unit file must be fully documented to reflect and support the District's decisions and actions. The new comparable should not normally be selected prior to the expiration date set out in the relocatees' final "Notice to Vacate."

IF THE RECOMPUTED BASIC RHP EXCEEDS $31,000, DO NOT USE CONDEMNATION AGREEMENTS Form 236.8.8.3(e)(1) OR Form 236.8.8.3(e)(2). When this situation is experienced, provide all facts involved to the Right of Way Section and request that a separate condemnation agreement be prepared that is workable under the specific circumstances involved. The Last Resort Housing Program would normally be involved under this circumstance.

NOTE A: Incidental Closing Cost and/or Increased Interest Payment.

Owner-occupants whose residence is acquired by condemnation can be reimbursed for their eligible incidental closing costs and paid any increased interest payment without the need for a condemnation agreement.

If an incidental closing cost and/or increased interest payment is paid in advance of final settlement of a condemnation case, the unit file must be "flagged" to ensure that these payments will not be duplicated should the relocatee become eligible for a RHP at the time the case is finally settled. (See NOTE B at the end of EPG 236.8.8.4(b), for instructions for completing Claim RA Form 236.8.8.4(b), when incidental closing costs and/or increased interest payments are made under the conditions discussed in this NOTE.)

(1) Condemnation Agreement, Residential Property Only, No Other Property Included in Acquisition (RA Form 236.8.8.3(e)(1))

This form is applicable regardless as to whether a partial or total acquisition of residential property is involved.

Instructions for completing RA Form 236.8.8.3(e)(1) are as follows:

In the first paragraph include the names of the owners of the residential property to whom the RHP will be made.

The second paragraph of the agreement refers to "property as described in Exhibit No. 1. A copy of the legal description, describing the right of way taking, must be attached to each copy of the agreement.

In subsection number 1, under "Owners Agree," show the condemnation commissioners' award for the subject property.

The amount to be shown in the second-numbered paragraph (No. 2) is the previously discussed recomputed RHP. This same amount will also be shown in the blank space on the third line of subparagraph (1) under "Commission Agrees."

The agreement is to be executed, on behalf of the commission.

All owners whose names are included in the first paragraph of the agreement must sign in the spaces provided at the end of the agreement.

A minor who is an owner-occupant can sign a condemnation agreement. If a guardian has been appointed for the minor, the guardian should also sign the agreement. In cases where infants and young children are involved, the child's guardian would sign the agreement and the minor would not be required to.

(2) Condemnation Agreement, Land Other Than Residential Property Involved(RA Form 236.8.8.3(e)(2))

Instructions for completing RA Form 236.8.8.3(e)(2) are as follows.

The instructions outlined for RA Form 236.8.8.3(e)(2) above, covering the first two paragraphs of that form, are also applicable to this form. The legal description to be attached to this agreement should cover the entire acquisition and not just the portion on which the residential improvements are located.

The amount to be shown in paragraph (1) under "owners" is the highest negotiating offer that has been made by the department to the owner for the entire right of way acquisition involved.

The amount to be inserted in paragraph no. 2 is the total condemnation commissioners' award covering the entire right of way taking, including both residential property and other lands.

The amount to be shown in the first blank space in paragraph no. (4) is the prorated portion of the department's total right of way negotiating offer that is chargeable to the residential improvements and supporting land area.

In the second blank space in paragraph no. (4) show the percent of the total offer chargeable to the residential area.

The amount to be shown on the first line in paragraph no. (5) is the actual recomputed RHP.

The amount to be shown in the second space in paragraph no. (5) is the portion of the condemnation commissioners' award that is applicable to the residential property only. Determine this amount by applying the same percentage figure arrived at in paragraph no. (4) to the total condemnation commissioners' award. These computations will be reflected in the three spaces contained in the parenthesis at the end of subsection (5) by showing the percentage figure in the first space, the total commissioners' award in the second and the resulting computed amount in the third.

The blank space in paragraph no. (6) shall reflect the same amount shown in the second space in paragraph no. (5).

Instructions provided in the preceding subparagraph for execution of the RA Form 236.8.8.3(e)(1), agreement also apply to this agreement.

(3) Instructions Applicable to Both Agreements

If the landowners desire to enter into a condemnation agreement after their condemnation award has been paid into court and they have purchased and occupied a DS&S replacement, three copies of the applicable agreement form are to be delivered to the owners or their attorney. The blanks on the form will be filled out prior to delivery by the district. The agreement need not be executed on behalf of the department at that time.

The owners must then sign and return all copies to the district office. Regional counsel will keep one copy of the fully executed agreement, one copy will be forwarded to the owner or, if applicable, their attorney and the original will be retained by the district.

Increases in offers made after condemnation agreements have been executed, in attempting to settle condemnation cases, have no effect on such agreements and are not factors in computing or paying RHPs unless they are accepted by the owner and become final judgments.

It will be the duty of the department's regional counsel to take whatever action is necessary to collect any refund due to the State under the terms of a condemnation agreement. District personnel should work closely with the regional counsel in providing any information needed by him/her to ensure that the department receives refunds it is due under condemnation agreements, and periodic checks made to determine if the subject condemnation case has been settled and, if so, if a refund is due.

NOTE A: Final Legal Settlement Less Than Condemnation Commissioners' Award

If the final legal settlement is less than the condemnation commissioners' award on which the relocation payment was based, the owner would be entitled to an additional RHP in most cases.

(d) Condemnation - No Condemnation Agreement Signed

If the owners chose to wait until final settlement of their condemnation case before filing a claim for their RHP, compute their payment by applying the following procedure.

Deduct the portion of the final legal settlement that is chargeable to the residential property from the price of the most nearly comparable DS&S replacement available as determined on the original "Replacement Housing Comparison Record," and, in a separate computation, deduct the same portion of the final legal settlement from the amount actually paid for the DS&S replacement property purchased and occupied by the subject owners. The relocatees are entitled to a RHP equal to the lesser of these two computed figures.

If the acquisition did not involve lands or property in addition to the residential improvements and supporting land area, the total final legal settlement used in the computations as the entire amount would be chargeable to the residential property. If other lands were involved in the acquisition, determine the portion of the final legal settlement that is to be charged to the residential property by increasing or decreasing the prorated portion of the right of way offer that was charged thereto when the original RHP offer was computed in the same percentage ratio that the overall final legal settlement was increased or decreased in relation to the total right of way offer.

If the relocatees paid more for their replacement dwelling than the amount determined by the department as being the price of the most nearly comparable DS&S replacement dwelling available and contends that there was no comparable DS&S replacement housing available between the time they received their first vacancy notice from the department and the required vacancy date quoted in his/her final "Notice to Vacate" that could have been purchased for the above-mentioned price, it will be necessary to prove their contention correct or erroneous if no more than 12 months have expired between the date that they were required to vacate the subject dwelling and the date of their final right of way condemnation settlement. If more than 12 months have expired, the department will not attempt to reconstruct the availability of specific housing during the subject period and will take the firm position that the price of the original comparable replacement was correct, fair and adequate.

The following instructions apply when (1) the final condemnation settlement occurs within 12 months from the date that the relocatees were required to vacate the subject property, and (2) the relocatees' actual replacement housing cost exceeded the confirmed price of the replacement dwelling used in computing their original RHP offer.

Locate the most nearly comparable DS&S replacement that was available during the designated period and use its actual, or selling price, whichever is applicable, to determine the maximum RHP that could be made to the relocatees. A new Replacement Housing Comparison Record, RA Form 236.8.8.3(b), must be completed using the "new" comparable replacement dwelling.

If one of the other methods of computing RHPs, as discussed in EPG 236.8.8.3(c), is applicable, compute the final payment accordingly (applying the same general principle outlined in the preceding paragraphs).

236.8.8.4 RHP Claims

(a) Time for Filing Claims

RHP claims must be filed within the time period discussed in EPG 236.8.8.2(i), but not before the relocatees have actually purchased and occupied a DS&S replacement dwelling, unless an advance RHP is being made under the specific terms and instructions outlined in EPG 236.8.8.2(f) and (g), and not before the department has acquired the subject right of way parcel through negotiated settlement or condemnation. It is desirable that the claim be filed as soon as practical after the subject property has been acquired and the relocatees have met all payment eligibility requirements.

(b) Claim RA Form--RHP (RA Form 236.8.8.4(b))

RA Claim Form 236.8.8.4(b) must be used in filing a replacement housing claim.

General information concerning claim forms previously discussed in EPG 236.8.6.8(d), also apply to this form.

Documentation to support the claim, such as closing statements and paid receipts are to be attached to the claim submitted to the district by the relocatee. The documentation must be retained in the subject's unit file in the district office and should not be attached to claim forms submitted to the Right of Way Section for payrolling.

If the closing statement does not clearly show the purchase price of the replacement property or if a closing statement was not prepared, the relocatees must provide a notarized statement signed by both the buyer and seller certifying the purchase price paid for the replacement. Under this circumstance, the district should be sure prior to making the RHP that the instrument by which the relocatees acquired the replacement property is recorded in the office of the County Recorder of Deeds.

The claim form must be completed in the following manner.

Section Headed "Subject Property"

In the spaces provided to show "Date Purchased" and "Date Occupied" by relocatee - show day, month and year.

Section Headed "Replacement Property"

Show actual date (day, month and year) that replacement was purchased and date occupied. If a new house was constructed on the owner's remainder, the date purchased would relate to the land and would be the same date shown for the subject parcel. If a new house was constructed on a replacement site, show the date that the site was acquired. The last two sentences would apply in principle if the owners retained and moved their subject dwelling. In every instance, show the actual date that the replacement was occupied regardless of whether it was purchased built or moved.

On the last line in this section, write the new telephone number of the relocatees, provide the name of the person from whom the relocatee acquired the replacement and the name of the real estate firm or broker, if any, who handled the sale.

In the first space in the section headed "Computations on Line No. 1" show the asking/listing price of the most nearly comparable replacement property available as computed on the Replacement Housing Comparison Record, RA Form 236.8.8.3(b), or, when applicable, as based on the estimated cost of building a new house. This space will always contain the replacement housing cost on which the department's RHP offer was based.

In the second space of line no. 1 show the relocatees' actual cost in obtaining their replacement property.

If the total acquisition of a normal-sized residential property is involved or if only a portion of a carved out residential land area was acquired as right of way, both spaces of line no. 2 must reflect the right of way payment for the relocatees' residential property. If the claim involves an unsettled condemnation case, show the portion of the condemnation commissioners' award that is chargeable to the residential property as discussed in EPG 236.8.8.3(d), Consider the following points when determining the amount to be shown in the subject two spaces:

(1) Do not include any portion of the right of way payment that is chargeable to other lands or improvements included in the acquisition, include only the portion of the payment that is chargeable to the residential property.

(2) If the relocatee retains salvage rights to any item that was considered to be a part of the residential real property, add the approved salvage value of such items as determined in the appraisal review process to the cash consideration shown in the right of way deed and show the resulting total in the subject spaces as the "right of way payment made by the department for the residential improvements and supporting land."

If the partial acquisition of a normal-sized residential property is involved, the amount paid for the parcel including damages and remnants will be shown in both spaces on the second line.

Subtract the amounts shown on the second line from the amounts shown on the first and enter the results (differences) in the appropriate spaces on the third line.

Lines 3 thru 13, with the following explanation, are considered to be self-explanatory.

After receiving a rental subsidy payment, owners can purchase and occupy a DS&S replacement within the one-year period authorized for such action and claim a RHP. When this happens, the rental subsidy payment must be deducted from the RHP. The space entitled "Less Previous Rental Subsidy Payment" is provided for this deduction.

Be sure that all required documents are attached to the original claim. These documents must be checked to see that they adequately support the claim.

Each box in the "checklist" on the back of the form must be checked, indicating an affirmative answer, or, when applicable, marked "N/A." The item entitled "Farm Home Replacement Built On Subject Farm As Required" relates to those cases where a RHP is being based on new house construction to enable the owners to continue living on their farm unit.

NOTE A: Advance RHP Claims

Complete the claim form in the routine manner, as if the replacement dwelling had been purchased and occupied, with the following exceptions.

1. Under the section of the claim headed "Replacement Property," insert the words "See Comments" in the spaces provided to show "Date Purchased" and "Date Occupied."

2. In the second space of line no. 1 under the "Computations" section, show the agreed purchase price that is being paid for the replacement dwelling.

3. On the lines relating to increased interest payments and incidental closing costs, insert either the words "to be claimed later," "N/A," or the actual amount being claimed.

4. Check all applicable "boxes" on the back of the claim form. The "check points" which have not been complied with to date must be marked "See Comments."

5. Under "Comments" explain "This claim covers an advance RHP. All additional required documentation will be obtained and all remaining payment eligibility requirements will be complied with before the payment is released by the Escrow Agent." The district must be very sure that these commitments are fulfilled before the Escrow Agent is authorized to release the payment to the relocatee.

When an Escrow Agreement is used, list the payee on the back of the claim form in the following manner:

"(Escrow Agent's name) Escrow Agent for (list all relocatees who signed claim)". The claim payment check should reflect the payees in the same manner.

After the replacement property has been purchased and occupied by the relocatees and the RHP delivered to them by the Escrow Agent, a signed receipt will be available for the file as required in the Escrow Agreement.

Advance claims submitted under the escrow provision must be accompanied by a copy of the executed "Replacement Housing Escrow Agreement" when forwarded to the Right of Way Section for payment.

NOTE B: Advance Incidental Closing and/or Increased Interest Payment Claims--Nil RHP

Replacement Housing RA Claim Form 236.8.8.4(b), must be used in the following manner when claiming incidental closing costs and/or increased interest payments made in advance of final settlement of condemnation. Both payments must be included on the same claim form.

1. Under the section headed "Computations" complete only spaces relating to the type of payments involved and to total amounts due. Mark the other spaces in this section "N/A."

2. Under "Comments" explain that "RHP" based on condemnation commissioners' award is "zero," this claim therefore covers only incidental closing costs increased interest payments or both.

NOTE C: Direct Payment to Grantor (Seller) of Replacement Dwelling

The basic RHP, which excludes incidental closing costs and increased interest payments, will be made directly to the seller of the replacement dwelling if the relocatee (buyer) specifically requests such action in writing.

The relocatees' written request for direct payment to the seller must (1) clearly state their desire, (2) name the specific persons to whom they want the check made payable, (3) include a statement that the parties named are the sellers of the dwelling they are acquiring to replace the dwelling from which they are being displaced by the department, (4) that the payment is being applied to the purchase price of their replacement dwelling, and (5) that they take full responsibility for the completeness and accuracy of the seller's names and that they fully understand and agree that the department will not be responsible for the omission of any person from the payment who has an interest in the replacement property.

When direct payment to the seller is involved, the relocatees must file two RA Claim Form 236.8.8.4(b) - one for the basic RHP and the other for incidental closing costs and their increased interest payment.

The front of the replacement housing claim in which the basic RHP is being claimed should be completed and executed by the relocatees in the routine manner except it will not include incidental closing or increased interest payments. Insert "See Comments" in the spaces relating to incidental and increased interest payments. The district must show the persons to whom the check is to be made payable in the appropriate space at the top of the back side of the form. Under comments, explain that the payment is being made to the seller of the replacement dwelling as requested by the relocatees and that any applicable incidental closing costs and increased interest payment will be claimed on a separate claim form. Attach a copy of the relocatees' written request for direct payment to each copy of the claim form - those submitted with the payroll and the copy retained in the unit file.

The relocatees must execute the claim for incidental closing costs and the increased interest payment in the routine manner. It will not be necessary to complete the portions of the form which provide information relating to the subject and replacement properties as this information will be provided on the claim for the RHP. Only the spaces relating to Incidental Closing Costs, Increased Interest Payment and Total Payment Due should be completed in the Computations Section. Insert "See Comments" in the second space on the first line under this section; all other nonapplicable spaces can be marked N/A. Under comments on the back of the form explain (1) that the RHP was made directly to the grantor of the replacement dwelling in response to a separate claim, as requested by the relocatees, and (2) that the required information relating to the subject and replacement dwellings was provided on the claim for the RHP.

236.8.9 Relocation Assistance Program - Incidental Closing Costs

The incidental closing cost payment is the amount necessary to reimburse qualified relocatees for the actual and reasonable costs incurred by them incident to the purchase of their replacement dwelling.

(a) Reimbursable incidental closing costs may include the following items if the amounts involved are reasonable and if such costs are normally paid by the buyer.

1. legal, closing and related costs including title search, preparing conveyance contracts, notary fees, surveys, preparing drawings or plats, and charges incident to recordation,

2. lender, FHA or VA appraisal fees,

3. lender, FHA or VA application fees,

4. certificate of structural soundness and termite inspection when required (the cost of termite extermination and/or treatment is not reimbursable).

5. credit report,

6. title insurance or abstract of title, not to exceed the costs that would have been involved in the purchase of the selected comparable on which the RHP offer was based,

7. Escrow Agent's fee,

8. sales or transfer tax (not to exceed the costs for a comparable replacement dwelling),

9. loan origination or assumption fees that do not represent prepaid interest. (Limited to subject property mortgage(s) balance(s)) other costs that the district and Right of Way Section agree are incidental to the purchase including a Professional Home Inspection.

(b) Incidental closing costs must not include any prepaid expenses; for example, prepaid taxes, prepaid insurance, or prepaid interest.

When 90-Day owner-occupants are displaced, the costs incurred in securing mortgage financing in cases where there is no mortgage on the property acquired and any additional costs in securing a larger mortgage on the replacement dwelling than existed on the acquired property are not reimbursable. Appraisal fees and survey fees may, however, be reimbursable. In determining which closing costs are reimbursable to a relocatee, under the above instructions, make the following assumptions:

1. That the reasonable cost of transferring a mortgage when an existing mortgage on a replacement property is assumed by a relocatee in the purchase of such property is eligible for reimbursement as incidental closing costs.

2. Reasonable refinancing expenses paid by relocatees who retain and move their existing dwellings to their remaining land, or who build replacement dwellings on their remaining properties, which would otherwise qualify as reimbursable incidental closing costs, can be included in the relocatees' claim.

3. That relocatees who move to and occupy a DS&S replacement dwelling they owned prior to the initiation of negotiations on the project can claim reimbursement for routine eligible closing costs they experienced at the time they purchased the replacement.

4. That any closing cost which is made a part of the indebtedness and therefore not paid at the time of closing cannot be included as an eligible incidental closing cost.

5. One-time lump-sum mortgage default insurance premiums paid by the relocatee are reimbursable closing costs. For 90-Day owners reimbursement must be limited to the actual amount of the insurance payment or to the insurance payment that would have been required to cover a loan equal to the remaining balance of the relocatees' existing mortgage, whichever is the lesser. Mortgage insurance designed to pay off the outstanding balance of a mortgage upon death of the borrower is not reimbursable.

If the closing statement provided by a real estate firm handling a transaction in which a relocatee acquires a replacement dwelling reflects a lump sum charge made by the lending agency; or if the Truth in Lending Statement includes closing costs as a lump sum, it will be necessary to also obtain a "loan closing statement," or in some other manner, identify and itemize the separate charges involved.

NOTE A: Loan Service Fees and Points

Finance charges such as loan origination fees, loan service fees and points can be included in increased interest and down payment assistance. Procedures for paying such fees and costs are discussed in EPG 236.8.10.3(e)(1), and 236.8.12.3, that relate to increased interest and down payment assistance.

If relocatees are eligible for a RHP based on "new house construction," they can claim reimbursement for expenditures they experience in obtaining a temporary construction loan as a part of their closing costs. The interest and/or incidental closing cost paid on temporary construction loans is not reimbursable when a DS&S comparable replacement was available to relocatees who built their replacement by choice.

The costs of obtaining a short-term loan obtained to cover the period while a relocation payment is being processed is not reimbursable.

236.8.9.1 Payment Eligibility Requirements

Any relocatee who meets the eligibility requirements for either a RHP as discussed in EPG 236.8.8.2, or down payment assistance as discussed in EPG 236.8.12.2, is also entitled to an incidental closing cost payment.

236.8.9.2 Claim Forms

If the relocatees' eligibility for an incidental closing cost payment is based on their eligibility for a RHP, incidental closing costs must be included in their Replacement Housing Claim. If their eligibility for the closing cost payment is based on their eligibility for down payment assistance, the incidental closing costs must be included in their Down Payment Assistance Claim.

(a) Instructions When Incidental Closing Costs Included With Replacement Housing Claim

Space is included under the "Computations" section of Replacement Housing Claim Form 236.8.8.4(b), on the sixth through tenth lines to include incidental closing costs.

The ninth line is provided to include any other reimbursable incidental costs that do not fit into a category named on one of the preceding lines. Identify the incidental expenditures included on this line and show the total cost thereof in the blank space.

The tenth line should include the totals of the previous four lines which is the total amount being claimed as incidental closing costs.

All incidental closing costs claimed must be documented, either specifically set out on a closing statement attached to the original claim or by attached paid receipts.

(1) "Nil" RHP Due

If a "nil" RHP is involved, complete the heading of the claim form and the first two sections in the routine manner. Also complete the first two lines in the "Computations" section of the claim form in the routine manner and write "nil" in the two spaces on the third line and in the space on the fourth line. If an increased interest payment is applicable, show it in the space on the fifth line and complete the form accordingly. If an increased interest payment is not involved, write "nil" in this space and complete the form. Previously paid rental subsidy payments are always deducted from any payment computed on a Replacement Housing Claim Form. Incidental closing costs will not normally be paid separately from RHPs; both should be included on the same claim form. See NOTE A at the end of EPG 236.8.8.3(d), if the subject was acquired by condemnation.

(2) Multiple Occupancy of Same Single - Family Dwelling Unit

Review EPG 236.8.8.3(a)(7) If a pro rata RHP is involved. Review EPG 236.8.12.3(1) if a pro rata down payment assistance is involved.

When two or more individuals and/or families occupy the same single-family dwelling unit are forced to separate after displacement because a replacement unit is not available which will house all parties involved, each eligible individual and/or family that purchases a DS&S replacement dwelling will be entitled to a separate incidental closing cost payment based on the actual and reasonable closing costs the separate party experiences in purchasing its replacement dwelling.

Individuals and/or families who purchase and occupy separate replacement dwellings by choice are entitled to a pro rata incidental closing cost payment. Apply the following steps when determining the pro rata amount each separate party is entitled to receive as an incidental closing cost payment:

Step 1: Determine the total applicable and reasonable incidental closing cost expenditure made on the purchase of a DS&S replacement dwelling by the particular family (or individual) whose payment is being computed.

Step 2: Determine the subject family's or individual's interest in the dwelling being acquired by the department in relation to the interests of the other families or individuals who jointly occupied the subject unit.

Step 3: If the interests of all families or individuals involved are equal, determine the pro rata payment amount by dividing the total incidental closing cost expenditure of the individual and/or family whose payment is being computed by the total number of families or individuals who occupied the subject unit. If the various individuals and/or families had different degrees of interest in the subject dwelling, arrive at the pro rata payment by dividing the applicable incidental closing cost expenditure of the individual and/or family whose payment is being computed by the fractional interest that particular individual and/or family had in the subject property.

(3) Advance RHP Involved

Incidental closing costs cannot normally be included on advance replacement housing claims. Incidental costs must be submitted on a separate Replacement Housing Claim Form after the closing has occurred and after all applicable expenditures have been made.

The "second" replacement housing claim submitted for the purpose of claiming available incidental closing costs must be completed as if it was an original claim that includes the RHP, incidental closing costs and increased interest payment, from the beginning of the form to, but not including, the line under the "Computations" section headed "TOTAL PAYMENT DUE." The fact that an advance RHP has been made will not affect either the computations or the manner in which the form is filled out to this point.

Change "less previous rental subsidy payment" to read "less advance payments" immediately preceding the above-mentioned line headed "TOTAL PAYMENT DUE." Show the balance due on the existing line headed "TOTAL PAYMENT DUE."

If the total balance due on the second claim, when added to the previously paid advance RHP, exceeds $31,000, see NOTE A in EPG 236.8.8.1.

The "second claim" must include the total incidental closing costs the relocatee is qualified to receive. Additional claims will not be submitted for incidental closing costs.

(b) Instructions When Incidental Closing Costs Included With Down Payment Claim

Space is also included in Down Payment RA Claim Form 236.8.12.5, under the "Computations" section, to enable a relocatee to include applicable incidental closing costs thereon.

The information contained in the second, third, fourth and fifth paragraphs of preceding subparagraph (a) also apply when completing this form.

There will be instances when down payments are processed and paid into escrow prior to the actual purchase of the replacement and prior to the time all applicable incidental expenditures have been made. When this occurs, do not include any incidental costs in the "advance" down payment claim. Submit a separate claim for incidentals on a down payment claim form after the closing has occurred and all expenditures completed. Place a note on the back of the claim form under "Comments" advising that the down payment had been previously claimed in advance of the closing.

Be sure that the total of the "advance" down payment plus the incidental closing costs being claimed in the subject claim does not exceed the maximum payment that the relocatee is entitled to receive. If the total of the two payments does exceed the amount the relocatee is entitled to receive, adjust the incidental closing cost payment downward as necessary.

If the incidental closing cost claim amount is adjusted, provide an explanation on the back of the claim form giving both the reason why and how the adjusted amount was established.

In every instance when incidental closing costs are being claimed, after an "advance" down payment has been made, complete the claim form from its beginning through the line headed "less previous rental subsidy payment" as if an original claim including both a down payment and incidental closing costs were being prepared. Strike the existing wording on the above-referenced line relating to a previous rental subsidy payment and insert "Less Previously Paid Advance Down Payment." If a previously paid rental subsidy payment is also involved, it will be necessary to add a line on the claim form for the purpose of deducting the previous down payment in lieu of changing the referenced line. The revised line will reflect the previously paid advance down payment and the next line will reflect the additional payment due on the subject claim, which will be the difference between the amounts on the previous two lines.

(c) Relocatee Purchases Replacement in Partnership With Other Parties

If qualified relocatees purchase their replacement dwelling in partnership with other parties who did not also own an interest in, and/or occupy the subject, their incidental closing cost payment will be limited to the portion of such costs which were their normal obligation to pay; in all probability the loan origination fee will be the only cost that will need to be prorated.

(d) RHP Direct to Seller of Replacement Dwelling

If the basic RHP was made directly to the seller of the replacement dwelling, see NOTE C, at the end of EPG 236.8.8.4(b). If down payments made directly to sellers include incidental closing costs, no separate claim is necessary.

236.8.10 Relocation Assistance Program - Increased Interest Payments

236.8.10.1 General

Increased interest payments are available to eligible displaced 90-Day owner-occupants of residential property. These payments are intended to compensate owners for the additional expense that may be encountered due to a higher interest rate for a new mortgage on a replacement residential property.

The payment will be the amount that will reduce the balance on a new mortgage to an amount that could be amortized with the same monthly payment for principal and interest as that for the mortgage(s) on the displacement dwelling.

236.8.10.2 Payment Eligibility Requirements

To be eligible all of the following conditions must exist.

(1) The relocatee must have been an owner-occupant for more than 90 days prior to the date of the initiation of negotiation or the date of the Notice of Intent to Acquire-Relocation.

(2) The relocatee must have purchased and occupied a suitable replacement dwelling within the prescribed time limits.

(3) The mortgage or contract of sale must be bona fide and have been a valid lien for not less than 90 days prior to the date of negotiations or the date of the Notice of Intent to Acquire-Relocation. All mortgages shall be used to compute the payment.

(4) There must be a mortgage or contract of sale on the replacement dwelling.

(5) Mortgages or similar notes used to purchase mobile homes are mortgages for the purpose of this procedure.

(6) Temporary construction loans and short-term notes covering the period relocation payments are being processed will not be considered on any increased interest computation.

When a 90-Day owner-occupied residential dwelling is included in a partial acquisition from a larger property and the mortgage holder requires the owners to pay off any part of their existing mortgage they may be eligible for an increased interest payment. Instructions concerning this situation are included later in this section.

NOTE: If the mortgages on the subject property and/or replacement property are not in the relocatees' name, present all facts to the Right of Way Section in writing and request a decision concerning their eligibility for an increased interest payment. In every case the relocatees must be legally obligated to pay both mortgages involved to be eligible for this type payment.

236.8.10.3 Payment Computations

(a) When to Compute Payments

Displaced owners must be advised of the estimated amount of this payment and the conditions that must be met to receive it. This must be done as soon as owners provide the necessary information on their existing mortgage to their relocation agent. Displaced owners will receive an eligibility notice which advises them to contact the department immediately after they have signed a contract to purchase their replacement residence to obtain an estimate. The actual payment may be provided at the closing on the replacement residence if requested by the owners. The RA Form 236.8.10.3(e)(1), input sheet and the "New Mortgage Tool Box" computer program should be used to calculate this estimate and the actual payment. In order for the "New Mortgage Tool Box" to function, the user must perform the following steps to enable the macros to run:

1) Go to the "Options" box of the files Main Menu page;

2) a Security Alert box will open. Click "Enable this content"

3) Then hit "OK" at the bottom of the Security Alert box.

(b) Payments Computed By Whom

Any qualified member of the district right of way staff is authorized to compute increased interest payments. The payment should be computed by one staff member and checked for accuracy by another.

(c) General Explanation of Payment Amounts

Relocatees are entitled to an increased interest payment if the interest rate applicable to the mortgage on their replacement property has been increased above the rate charged on the mortgage on their existing residential property. Increased interest payment computations are based on the remaining term of the existing mortgage or on the actual term of the new mortgage, whichever is the lesser, and on the unpaid balance of the existing mortgage or on the actual amount of the new mortgage, whichever is the lesser.

The relocatees are also entitled to reimbursement for the actual amount they paid as "points" on the amount refinanced and for any amount paid by them as an origination or service fee; however, reimbursement for points and origination or service fees cannot exceed the amount normally charged as points and fees in the area where the replacement dwelling is located based on the original mortgage balance on the subject residential property.

NOTE: Increased interest payments exclusive of points and fees cannot exceed the amount of the new mortgage on the replacement dwelling or the unpaid balance of the existing mortgage on the dwelling acquired as right of way.

(d) Conditions Concerning "New Mortgage"

(1) The interest rate applicable to the replacement dwelling, to be used in the increased interest payment computations, shall be the actual rate of the new mortgage or the prevailing interest rate currently being charged by mortgage lending institutions in the area where the replacement is located, whichever is the lesser. In no case, unless both the subject dwelling and replacement dwelling are mobile homes, can the "new mortgage" interest rate used in the payment computations exceed the maximum interest rate allowed by law for real estate loans in the state where the replacement unit is located. If both the subject and replacement dwellings are mobile homes, and the "new mortgage" interest rate exceeds the maximum rate permitted by state law for real estate loans, provide all pertinent facts to the Right of Way Section.

The rate in effect on the existing mortgage when the subject property was acquired will be used in increased interest computations.

(2) The prevailing interest rates currently being charged by mortgage institutions in the project area must be established. The unit file must be documented to show how the prevailing rates were determined.

(e) Payment Computation Procedures (RA Form 236.8.10.3(e)(1))

Increased interest payment computations are based on the remaining term of the existing mortgage on the subject dwelling or on the actual term of the new mortgage on the replacement dwelling, whichever is the lesser, and on the unpaid balance of the existing mortgage or on the actual amount of the new mortgage, whichever is the lesser.

(1) New Mortgage Tool Box Input Sheet (RA Form 236.8.10.3(e)(1)).

This form has been designed for use in computing all increased interest estimates and payments. By completing the blanks on the input sheet and following the instructions on the computer screen amounts can be accurately computed.

Relocatees must provide district personnel with the following documents:

(I) for estimates or payments, a copy of all Notes and Deeds of Trust and current payoff amounts on existing mortgages on subject property,

(II) for payments, a copy of the loan application and commitment,

(III) for payments, a copy of all Notes and Deeds of Trust on new mortgages, replacement property,

(IV) for payments, a copy of estimated closing costs,

(V) for payments, a copy of the closing statement covering the replacement property purchase which clearly reflects any origination or loan service fees and/or any "points" paid by the relocatee.

Use Section A of the input form for estimates and Section B for actual payment computations.

As soon as the computations are completed, the relocatee should be provided two copies of all "Increased Interest Computations," one for their file and the other for attachment to their replacement housing claim.

(2) Acquisition Includes Residential Property Plus Other Lands

When the subject dwelling is located on a parcel that is larger in size than a normal residential building lot in the area, the unpaid balance of the existing mortgage to be used must be reduced to the percentage ratio that the value of the residential property bears to the total value of the entire parcel. Instructions in the following subparagraphs explain how such percentage ratio is determined.

It is assumed that the existing mortgage encumbers the entire parcel including both the designated residential property and the other lands. Should the existing mortgage cover only the residential property, ignore the other lands and compute the payments in the normal manner.

Step 1: Determine the total value of the entire property as established by the appraisal process. The conclusion should be based on the appraisal upon which the final approved negotiating offer was based.

Step 2: Determine what amount of the total property value established in Step 1 is chargeable to the residential property. Apply the principles discussed in EPG 236.8.8.3(a)(2), in making this determination.

Use the designated value of the residential property as previously established when the relocatees' RHP offer was computed.

Step 3: Determine the percentage ratio of the assigned value of the residential property to the total value of the entire property. Divide the assigned value of the residential property as determined in Step 2 by the total value of the entire parcel as established in Step 1. Round to the second decimal point.

Step 4: Apply the percentage ratio from Step 3 to the total remaining unpaid balance and principle and interest payment of the existing mortgage on the subject parcel.

NOTE: If the portion of the unpaid mortgage balance that is chargeable to the residential property exceeds the portion of the total property value that is chargeable to such residential property, the increased interest payment must be computed according to instructions in Situation C in following subparagraph (5).

Step 5: Use the figures arrived at in above Step 4 on Input Sheet and compute the relocatees' increased interest payment by completing the computation sheet in the routine manner.

(3) Partial Acquisition of Residential Property Plus Other Lands

If the relocatees are required to pay off their entire existing mortgage balance due to the right of way acquisition, compute the increased interest payment by applying the procedure discussed in preceding subparagraph (2).

Should the lender require that only a portion, or none, of the existing mortgage balance be paid off as a result of the acquisition or if the relocatees paid off the entire existing balance by choice, the increased interest payment will be computed in the following manner:

Step 1: Determine the before value of the entire property as established in the appraisal process. This conclusion should be based on the appraisal upon which the final approved negotiating figure was based. Follow the principles discussed in EPG 236.8.8.3(a)(2), for prorating right of way offers in making this determination as well as the determination required in following Step 2.

Step 2: Request the appraiser to determine the portion of the total right of way offer exclusive of administrative adjustments that is chargeable to the residential property including damages to the remainder of the residential property.

Step 3: Divide the amount from Step 2 by the total value established in Step l.

Step 4: Apply the percentage ratio from Step 3 to the total unpaid balance and the principle and interest payment of the existing mortgage.

Step 5: Use the amounts arrived at in Step 4 in the Input Sheet and compute the relocatees' increased interest payment in the routine manner.

(4) Dwelling on Land with Higher and Better Use

If the subject dwelling is located on a parcel where the fair market value is established on a higher and better than residential use, and if the existing mortgage is based on residential value, the increased interest payment will be computed in the routine manner.

If the existing mortgage is based on the higher and better use value, and if the remaining unpaid balance of the existing mortgage exceeds an amount that would be a reasonable loan on the property for residential purposes, request assistance from the Right of Way Section.

(5) Multi-Use Properties (Joint Use - Residential and Business)

When a property which includes both an owner-occupied residential dwelling and a business is affected by a right of way acquisition, and the entire parcel is encumbered by a mortgage, the relocatees' increased interest payment will be computed by following whichever of the following procedures is applicable.

The definition of "residential property" as used in the preceding subparagraphs may not be fully applicable when this type of multi- use property is involved. For example, it is possible that none of the land area should be included in the residential property. This would be the case when a living quarter is located on the second floor of a building which, together with the entire land area in the parcel, is being used in conducting a business operation. It is therefore proper to use the same living quarters in computing the increased interest payment that was used in computing the relocatees' RHP offer. (Review EPG 236.8.8.3(a)(6).)

Situation A: Total Acquisition of Entire Property.

Follow the same procedure explained in preceding subparagraph 2.

Situation B: Entire Acquisition of Residential Property Plus Partial Acquisition of Business Property.

Follow the same procedure explained in preceding subparagraph 2.

Situation C: Partial Acquisition of Residential Property Plus Either Partial or Total Acquisition of Business Property.

Follow the same procedure explained in preceding subparagraph 3.

(6) Multi-Occupancy of Same Single-Family Dwelling

The procedures in this subparagraph relate to situations in which two or more relocatees that do not maintain separate households are displaced from the same single-family dwelling that they jointly owned and occupied.

Several different sets of circumstances can be encountered when a multi-occupancy of this type is involved. Compute the relocatees' increased interest payment by applying the following procedures.

The following procedures are written under the assumption that all relocatees involved are named in the existing mortgage:

If a comparable replacement dwelling is available and if they purchase and occupy a single-family replacement dwelling and encumber it with a bona fide mortgage, they will be entitled to one joint increased interest payment computed in the routine manner.

Should the relocatees purchase and occupy different replacement dwellings, the joint payment will be prorated based on their percentage of ownership.

(7) Replacement Property Includes "Residential Property" Plus Other Lands.

Under this circumstance, only the portion of the new mortgage on the replacement property that is chargeable to the "residential property" is to be used in the payment computations. Compute the payment in the routine manner discussed in preceding subparagraph (2) with the following exception:

A determination will already have been made on the portion of the entire purchase price paid for the replacement property that is chargeable to the residential property. Divide the portion of the purchase price charged to the residential property, as discussed in EPG 236.8.8.3(a)(9), by the total purchase price to determine the percentage ratio that is to be used in this increased interest payment computation. Apply the resulting percentage ratio to the total amount of the new mortgage and principal and interest payment on the replacement property to determine the portion thereof that is chargeable to the residential property and enter the resulting figures on the input sheet.

(8) Replacement is a Multi-Use Property (Joint Use--Residential and Business)

The instructions in subparagraph (5) or (7) are also fully applicable when the replacement is used jointly as a residence and business property.

(9) Owner Retains and Moves Subject Dwelling

If 90-Day owner-occupants retain and move their dwelling and encumber it with a new mortgage, they will be eligible for a payment computed in the same manner as if they had purchased a replacement dwelling.

(10) Owner Builds New Replacement Dwelling

The same principles apply for computing an increased interest payment under this situation as was discussed in preceding subparagraph (9).

(11) Life Estates and Lessees Qualified as Owners

Should a situation be encountered where either the owner of a life estate or lessee may be entitled to a payment of this type, submit all facts in writing to the Right of Way Section and request specific instructions.

(12) Mobile Homes

Various combinations of financing may be encountered on mobile homes. If a site and mobile home are financed separately, it will be necessary to compute separate increased interest payments for each. Normally the financing terms existing on the displacement dwelling will set the upper limit on the terms to be used in computations. If questions develop concerning how to compute payments, request assistance from the Right of Way Section.

(13) Remainder of Subject Parcel Refinanced After Right of Way Acquisition - Partial Acquisition Involved

If relocatees move their existing dwelling to the remainder of their parcel, consider the mortgage that was in effect at the time of the acquisition as the "existing mortgage on the subject dwelling" and the new mortgage, or second mortgage, as the "new mortgage on the replacement dwelling" when computing the payment.

(14) Relocatees Assume Existing Mortgage on Replacement Property

If eligible relocatees assume a mortgage that already existed on the property they purchased as a replacement, consider it as the "new mortgage on the replacement dwelling." The remaining unpaid balance at the time the mortgage is assumed by the relocatee and its remaining term will be used in computing the payment.

(15) Relocatees Purchase Replacement in Partnership With Other Parties

If eligible relocatees purchase their replacement dwelling in partnership with other parties who did not also own an interest in, and occupy the subject, their increased interest payment will not be affected if the new mortgage does not include such other parties as mortgagors.

If the "other parties" are included as mortgagors in the new mortgage and thereby assume a part of the mortgage payment obligation, the subject relocatees' payment will be limited to the portion of the increased interest costs that will be their obligation to pay.

When the latter situation exists, compute the amount that the subject relocatees are entitled to receive as an increased interest payment in the following manner.

Step 1: Compute the routine increased interest payment that would have been due had such other parties not been involved in the normal manner.

Step 2: Determine the percent of ownership that the relocatees acquired in the replacement property.

Step 3: Apply the percentage figure arrived at in Step 2 to the computed increased interest payment arrived at in Step 1 to determine the portion of such payment that the subject relocatees are entitled to be paid.

Step 4: Include the amount arrived at in Step 3 on line 5 of the "Computations" section of the relocatees' RHP claim.

The unit file must be documented to reflect and support the above computations.

(16) Subsidized Interest Rates Involved

In some instances, for example, when an "FHA 235" loan is involved, a part of the relocatees' mortgage interest payment will be subsidized by a governmental agency. If so, request increased interest computations from the Right of Way Section.

(17) Mortgages Due "On Demand" - No Payment Schedule or Loan Term Shown

If one of the mortgages involved is due on demand, no payment schedule or loan term will normally be provided. As a consequence, it will not be possible to determine the remaining term of that mortgage.

When this situation is encountered, the relocatees' increased interest payment will, WITH THE FOLLOWING EXCEPTIONS, be computed in the routine manner.

Exception 1: If the existing mortgage on the subject property is due on demand, the payment will be computed on the term of the new mortgage on the replacement.

Exception 2: If the new mortgage on the replacement property is due on demand, the payment will be computed on the basis of the remaining term of the existing mortgage.

If both the existing mortgage on the subject property and the new mortgage on the replacement are due on demand with no loan term shown, it will not be possible to compute an increased interest payment and it will not be possible for the department to make an increased interest payment to the relocatees involved. The relocatees could be reimbursed for the points and origination or service fees they paid in obtaining their new mortgage, subject to the maximum payment limitation discussed in EPG 236.8.10.3(c), for points and fees.

(18) Mortgagee (Lender) Has Right to Adjust Mortgage Interest Rate

Mortgages sometimes give the lender the right to adjust the interest rate at a later date. If the existing mortgage on the subject property contains this provision, use the interest rate and balance that was in effect at the time the property was acquired by the department when computing the increased interest payment. Advise the Right of Way Section, prior to making any commitment to the relocatees, of any interest rate adjustment that is made after the initiation of negotiations for the subject parcel if the adjustment increases the amount of the relocatees' increased interest payment.

If the new mortgage on the replacement property contains this provision, use the original interest rate that was in effect at the time the mortgage was made. Do not consider adjustments made between the time the new mortgage was made and the time the increased interest payment is claimed without specific concurrence from the Right of Way Section.

(19) Displaced Owner Occupies Previously Owned Dwelling Unit as Replacement

Otherwise eligible relocatees will not be entitled to an increased interest payment if they move to a dwelling they previously owned, as discussed in EPG 236.8.8.2(g), even though they place a new loan, or refinance an existing loan, on the replacement unless the funds from such loan or refinancing are used to make necessary decent, safe and sanitary improvements to the property. Only the portion of the new or refinanced loan that is used to make the necessary DS&S improvements will be used in the Interest Computation. Reimbursement for points and origination or service fees will be limited accordingly.

(20) Mortgage Payment Made on Other Than Monthly Basis

Contact the Right of Way Section for guidance.

(21) Two or More Mortgages on Same Property

Same as preceding subparagraph (20).

(22) Graduated Mortgage Payments

Same as preceding subparagraph (20).

236.8.10.4 Advanced Increased Interest Payments

Do not attempt to compute the increased interest payment until the unpaid balance and remaining term of the existing mortgage on the displacement dwelling can be firmly established.

(a) The relocatees must select a replacement dwelling, sign a contract to purchase it, obtain a loan commitment from agency which will finance the purchase, then notify the relocation agent that these actions have been accomplished.

Information provided by the relocatees must be confirmed by the lending agency.

The relocation agent should then compute the increased interest payment.

(b) Advance increased interest payments are to be claimed on the RA Claim Form 236.8.8.4(b). Complete the claim form in the normal manner, as if the replacement dwelling had been purchased, occupied and encumbered with a bona fide mortgage with the following exceptions:

(1) Under the section of the claim headed "Replacement Property," insert the words "see comments" in the spaces provided to show "Date Purchased" and "Date Occupied."

(2) In the second space on the first line under the "Computations" section, show the agreed purchase price that is being paid for the replacement dwelling.

(3) On the lines relating to incidental closing costs, insert the words "to be claimed later."

(4) Check all applicable boxes on the back of the claim form. Those which cannot be checked, due to the claim being for an advance payment, should be marked "see comments."

(5) Under Comments explain that (1) this is an advance claim, (2) the missing documentation will be obtained and made a part of the unit file, and (3) the omitted information will be included in the claim for incidental closing costs which will be filed at a later date. The district must ensure that such information is obtained and made a part of the unit file.

(c) Advise the relocatees when the relocation payment check is received in the district office so they can arrange for the closing if it has not already been scheduled.

(d) The relocatees must sign two copies of the advance payment agreement. This can be accomplished at any time prior to delivery of the check; however, it is preferable that the agreement be completed at or near the date of closing so that firm deadline dates can be established. Use whichever of the following agreements that is applicable.

(1) If the advance payment includes both a replacement housing and increased interest payment, use the agreement, Advance Replacement Housing and Increased Interest Payment Agreement (Form 236.8.10.4(d)(1)), headed "Advance Replacement Housing and Increased Interest Payment Agreement." Instructions for completing the agreement are provided on the back of Form 236.8.10.4(d)(1).

(2) If relocatees who are not entitled to a RHP (nil computation), but are entitled to an increased interest payment and request an advance payment, use the agreement identified as Advance Increased Interest Payment Agreement (Form 236.8.10.4(d)(2)). The instructions for completing Form 236.8.10.4(d)(1) provide adequate guidance for completing this agreement.

When only an advance RHP is involved, no advance increased interest payment, continue using the Replacement Housing Possession Agreement, and instructions for its use, as provided in EPG 236.8.8.1(c).

(e) An informed department representative should hand-carry the check to the closing. The check can be released as soon as title passes to the relocatees, provided the department representative confirms that the information used in computing the payments and that contained in the advance payment agreements are accurate in relation to the actual transaction.

(f) District personnel must follow through to ensure that terms of the agreement are fully complied with. Should the relocatees default, request instructions from the Right of Way Section for recovering the advance payment.

236.8.10.5 Claim Form

(a) Included on Replacement Housing Claim Form

The increased interest payment is to be inserted on line 5 under the "Computations" section of the subject relocatees' "Replacement Housing Claim Form" and added to and made a part of the RHP.

Copies of all applicable "Increased Interest Computation Sheets" must be attached to the claim form submitted by the relocatee to the district office together with the supporting documentation.

Eligible relocatees can be reimbursed for their loan origination or loan service fees and points even though they are not entitled to an increased interest payment based on higher interest rates. Under this circumstance, the "fees and points" payment would be shown on line 5 under the "Computations" section of the relocatees' replacement housing claim. A statement should be included under "Comments" on the claim form advising that the amount included in the claim as an increased interest payment covers only reimbursement for loan fees and/or points.

(b) Condemnation Involved

The fact that the subject property was acquired through condemnation has no effect on the increased interest payment. The payment will be claimed on the "Replacement Housing Claim," regardless of whether the claim is filed before or after the case is finally settled. The increased interest payment amount will not be changed or affected even though the final RHP amount may be adjusted due to the amount of the final right of way settlement.

(c) "Nil" RHP Due

If a "nil" RHP is involved, complete the heading of the claim form and the first two sections in the routine manner. Also complete the first two lines in the "Computations" section of the claim in the routine manner and write "nil" in the two spaces on the third line. Also insert "nil" on line 4.

Insert the increased interest payment due the relocatees on line 5.

If incidental closing costs are involved, complete the portion of the claim applicable thereto.

Add the increased interest payment and the incidental closing costs and reflect the total on the line headed "Total of Above Three Payments." This amount would be the "Total Amount Due" unless a previous rental subsidy payment had been made, in which case, that payment would be deducted from the subject payment on line 12. If the balance is "zero" after making the deduction, no additional payment will be made to the relocatee in response to the subject claim.

236.8.11 Relocation Assistance Program-Rental Subsidy Payments

236.8.11.1 General Policy

Individuals and families displaced from dwelling units they have rented and occupied for not less than 90 consecutive days prior to the initiation of negotiations for the parcel, and displaced 90-Day owners who rent rather than purchase replacement housing, are entitled to a rental subsidy payment if they meet the payment eligibility requirements outlined in the following paragraphs.

When displaced tenants are involved, payments of this type are based either on the increased monthly rental costs above the rental they were paying for the unit acquired that they would have to pay over 42 months for an available comparable DS&S replacement dwelling unit, or the increased rental for 42 months that the tenants actually pay for their replacement dwelling unit, whichever is the lesser.

For owners who rent rather than purchase replacement dwelling units, the same principle is applied. The payment will be based on either the difference between the economic rental fee of the subject dwelling and the actual rental fee charged for the most nearly comparable DS&S replacement dwelling available, or the difference between the economic rental fee and the actual rental fee paid for the replacement unit, whichever is the lesser.

Rental subsidy payments cannot normally exceed a maximum of $7,200. The total amount due will be paid in one lump sum unless the department determines that it should be made in installments.

236.8.11.2 Payment Eligibility Requirements

(a) Tenants

(1) Prior Occupancy Requirements

The individual or family being displaced must have rented and legally occupied the subject dwelling unit for at least 90 consecutive days immediately prior to the initiation of negotiations for the property, or if they are provided a "Notice of Intent to Acquire-Relocation" by the department, they must have rented and occupied it for at least 90 consecutive days prior to the date they actually vacated the property if it was vacated prior to the actual initiation of negotiations.

If any doubt exists concerning the actual length of time tenants occupied a subject dwelling, their landlord should confirm the date of occupancy and the file documented accordingly.

When an owner-occupied mobile home that is personal property must be removed from a rented site, the site occupancy period is the controlling factor. The relocatees must have occupied a mobile home on the subject site for the required 90-day period. The relocatees' rental subsidy payment will be based solely on the site rental. If the mobile home is being displaced from a site in a mobile home park, the relocatees' consecutive occupancy of other sites, also within the acquisition during the required 90-day period, can be added to the occupancy period of the subject site when determining if the 90-day occupancy requirement has been met.

If both the mobile home and site are rented, the relocatees' rental subsidy payment will be based on the rental fee of a replacement mobile home and site if they occupied a mobile home on the subject site for the required 90-day period. Consecutive occupancy of other sites that are also being acquired by the department can be considered when determining the relocatees' applicable occupancy period.

In determining the applicable occupancy period of a relocatee who is being displaced from a unit in a multi-unit residential complex, it is permissible to consider consecutive occupancy of other units that are also being acquired or demolished by the project.

(2) Occupancy Required at Initiation of Negotiations

The tenants must have been in legal occupancy of the subject dwelling unit at the initiation of negotiations for that particular parcel, or if they are provided a "Notice of Intent to Acquire-Relocation," at the time they receive the notice.

Confirmation that tenants actually occupied a subject dwelling unit at the initiation of negotiations should be obtained from their landlord and the file noted unless the relocation agent has firsthand knowledge of this fact through contacts with the tenants.

(3) Decent, Safe and Sanitary Replacement Must Be Rented and Occupied Within One Year

The relocatees must rent and occupy a DS&S replacement dwelling within one year after they move from the subject dwelling. Owner-occupants must rent and occupy a DS&S replacement within one year after the later of (1) the date they receive final payment for the displacement dwelling, or (2) the date they move from the displacement dwelling.

The preceding one-year time period may, with prior approval from the Right of Way Section, be extended for good cause.

(4) Replacement Must Meet Decent, Safe and Sanitary Standards

A relocatee must rent and occupy a replacement dwelling that meets decent, safe and sanitary standards, as defined in EPG 236.8.1.3(j), to be eligible for a rental subsidy payment.

(b) Long-Term Owners

"Long-term" owner-occupants who are eligible for a RHP can elect to rent in lieu of purchasing a replacement dwelling unit and qualify for a rental subsidy payment provided that they rent and occupy a DS&S replacement within the required one-year period.

They are entitled to the full amount of their rental subsidy payment, normally not to exceed the $7,200 maximum allowed for this type payment, except under the provisions of the Last Resort Housing program. Under no circumstances can a rental subsidy payment exceed the amount the relocatees would have received as a RHP.

If the relocatees later decide to purchase a replacement within the original one-year period, they can do so and claim a RHP. The amount of any rental subsidy payment previously paid must be deducted from the RHP, incidental closing cost and increased interest payments.

(c) Sleeping Room

Displaced tenants of sleeping rooms who meet the payment eligibility requirements outlined in preceding EPG 236.8.11.2(a), are entitled to a rental subsidy payment.

(d) Deadline For Filing Claims

Rental subsidy payment claims must be filed with the department no later than six months after the expiration of the previously discussed one-year period. This time period can be waived for good cause with concurrence from the Right of Way Section.

(e) Church Parsonages and "Company-Owned" Residential Properties

Relocatees displaced from church-owned parsonages, or from other dwelling units owned by their employers and provided to them without cost, are not entitled to a rental subsidy payment if they are also provided a replacement dwelling unit by their employer, without cost, after the acquisition.

(f) Mobile Homes

(1) Relocatee Owns Subject Mobile Home - Rents Site

The owner-occupants of a mobile home classified as personal property who rent the site upon which it is located can qualify for a rental subsidy payment covering the site only.

The owner-occupants of a mobile home classified as real estate located on a rented site can be paid a rental subsidy payment based on a replacement rental site if their mobile home was acquired.

NOTE: A mobile home park entrance fee that is not refundable to the relocatees can be added to their rental subsidy payment. Reimbursement for these fees cannot exceed the fee charged by the selected comparable replacement mobile home park that was used in computing the rental subsidy payment offer.

Should the owner-occupants sell, rent out or otherwise dispose of the mobile home after the initiation of negotiations or after receipt of a "Notice of Intent to Acquire-Relocation," they will still be eligible for their computed rental subsidy payment offer.

(2) Relocatee Rents Subject Mobile Home and Site

If eligible relocatees rent both the subject mobile home and the site upon which it is located, their rental subsidy payment offer will be based on the rental fee of the most nearly comparable DS&S replacement mobile home and site available, or if more practical, on the rental fee of a conventional DS&S dwelling unit.

236.8.11.3 Computations - Rental Subsidy Payment Offers

(a) Information Necessary to Compute Rental Subsidy Payment Offers

The following facts must be established prior to the computation of a rental subsidy payment offer.

(1) Existing Rental Rate

When a tenant is involved it is necessary to determine the average monthly rental rate that was being paid by the relocatee during the three months immediately prior to the month in which the department initiated negotiations for the subject property or, if a tenant received a Notice of Intent to Acquire-Relocation and vacated the subject unit prior to the initiation of negotiations the average monthly rental rate for the three months immediately prior to the month in which the tenant vacated the subject property, whichever occurred first.

The existing rental rate shall include any rent supplements supplied by others (except government subsidies (see EPG 236.8.11.3(9)(b)) when, by law, such supplement is to be discontinued upon vacation of the subject property. If the rental fee was changed during the referenced three-month period, add the rental rates applicable for each month together and divide the total by three to arrive at the average rate. If it appears that the rate was changed without good cause and possibly for the purpose of influencing the amount of the potential rental subsidy payment, advise the Right of Way Section.

The relocatees should furnish the department a copy of their lease if available. If not, they should provide copies of current rent receipts to document the amount of the existing rental rate. If neither are available, or if the amount of the existing rental rate is not clearly defined in available documentation, the existing rate should be confirmed by both the tenant and the landlord and the file documented to show that such action was taken. Under the latter circumstance, a signed statement by the department employee who made the determination showing who was contacted, dates of contacts, how made, stated rental fees and other pertinent facts is acceptable.

If there are discrepancies in available documentation, use the economic rental fee that is applicable to the subject unit and document the file accordingly.

NOTE: If the average rental rate in effect during the three-month period discussed in this subparagraph is not truly representative of the actual rental being paid by a relocatee for a subject unit, it will be permissible, with prior written approval from the Right of Way Section, to use another more appropriate time period in determining the proper existing rental rate. If a truly representative existing rental rate cannot be established by using a different time period, obtain authority from the Right of Way Section to use the documented economic rental rate that is applicable to the subject unit.

(2) Economic Rental Rate

The term "economic rental" as used herein is the normal monthly rental fee being paid on the open market for similar dwelling units within the area.

Determine if the relocatees' existing average monthly rental fee is substantially less than the economic rent applicable to the displacement unit. If so and the displaced tenant pays substantially less than the economic rent applicable to the displacement unit, the economic rent applicable to the unit will be used in the rental supplement payment computations in lieu of the "average monthly rental rate."

Should this policy place an unfair hardship on the relocatee, recommend a different procedure to the Right of Way Section that will produce a more equitable payment. Normally the only exceptions will be (1) when the tenant is enjoying a "favored-tenant" status earned by being an exceptionally good tenant and so recognized by the landlord, and (2) when the existing rent is being subsidized by others who by law cannot continue the subsidy after relocation.

(3) Rental Fee Charged For Most Nearly Comparable Replacement Available

The rental fee for the most nearly comparable DS&S replacement dwelling unit that is available for rent must be established by analyzing comparables in much the same manner as discussed in EPG 236.8.8.3(a), for RHP determinations.

The "Rental Subsidy Computation Sheet" (RA Form 236.8.11.3(b)), discussed in the next subparagraph, has been designed for use in making this determination.

See EPG 236.8.8.3(b)(2), concerning "Selection of Comparables," which is applicable.

Relocatees should be offered the same type of replacement unit as that from which they are displaced; however, this is not mandatory if it is not practical to do so if the selected replacement is functionally equivalent to the displacement unit.

(4) Utility Services Adjustments

Unless all utilities are provided by the landlord in both the displacement dwelling and in the selected comparable, the estimated average monthly costs of those utilities must be added to the basic monthly cost of the comparable when computing the rental subsidy payment offer. If possible, comparables should be selected which provide the same utilities as the subject dwelling unit.

If some or all utilities are furnished in the selected comparable, but were not furnished in the displacement dwelling, the average monthly costs of the utilities must be added to the basic monthly rent of the displacement dwelling when computing the subsidy offer.

If the landlord does not provided utilities in either dwelling unit, the rental subsidy offer will be based on monthly rent plus the estimated utility cost on each unit. If the same utilities are provided in both units, use their actual monthly rentals, without utility adjustments, in computing the offer.

Utility cost estimates can be determined in one of three ways. Use the procedure that is practical and will produce the most accurate estimate.

(a) Base the estimate on the actual costs of the utilities of the dwelling units over the past 12-month period. This may be accomplished by reviewing the actual utility bills paid. These costs must be documented in the unit file, preferably by copies of the paid bills. If this is not practical, a written statement by the relocation agent who made the determination, explaining how he/she determined and verified the utility costs can be used.

(b) In some instances it will not be practical to base the utility estimate on actual costs. In this case, it may be possible to obtain average utility costs from the utility company involved based on unit square footage and number of family members. Some companies make such estimates based on a four-member family occupying a unit with a specified square footage, and then adjust from this "norm" by applying cost factors. This type information is normally provided by the company's customers' sales representatives and/or marketing department.

Utility cost estimates of this type may apply to an entire city or area, and can be used in computing rental subsidy payments therein. These estimates should be reviewed annually, or after rate adjustments, and revised as necessary. A file must be maintained by the district explaining the manner in which the estimate was obtained. Reference can be made to the file when the estimate is used in computing a rental subsidy payment offer.

(c) If the annual utility costs are known for a unit, it may be practical to estimate the cost of the utility at the other unit by comparing the two units and adjusting the known costs for differences in unit sizes, physical features, appliances, etc.

(5) Furnishings Provided by Landlord

The general principles and procedures in preceding subparagraph (4) relating to utilities also apply when furnishings are provided by the landlord in the displacement dwelling, but not in the selected comparable. If reasonably possible, comparables should be selected which provide the same furnishings as the subject dwelling unit. This subparagraph relates to instances when such comparables cannot be located.

Furnishings can be provided to the relocatees at the replacement site in whichever of the following two methods that is less costly.

(a) Rent furnishings comparable in number and quality to those provided by the landlord in the displacement unit from a furniture rental business. Add the monthly rental of the furnishings to the monthly rental of the replacement dwelling unit when computing the rental supplement offer. Refundable deposits on such furniture rentals are not compensable under the Relocation Program.

(b) If rental furnishings are not available, or if the rental procedure is more expensive over a 42-month period, add the cost of purchasing used furnishings of the type and quality provided in the displacement unit to the rental subsidy offer that will have been computed in the normal manner. Base the cost of furnishings on the actual price quoted by the seller. Document the unit file accordingly. When furnishings are provided in this manner, the entire rental subsidy payment will be charged to appropriate activity, object and subobject codes under the Last Resort Housing program.

(b) Rental Subsidy Computation Sheet (RA Form 236.8.11.3(b))

A Rental Subsidy Computation Sheet, RA Form 236.8.12.3(b), must be used in computing all rental subsidy payment offers.

(1) When Prepared

The computation sheet should be completed during the time appraisals of the subject property are being reviewed or very soon after negotiations are initiated for the property. A written rental subsidy payment offer must be made to eligible relocatees within approximately 40 days after such negotiations are initiated.

Once the computation sheet has been completed, and the rental subsidy payment offer established, it is not normally necessary to prepare a second computation sheet, or recompute the original rental subsidy payment offer, unless the relocatee advises, and the district agrees, that no DS&S replacement rental dwelling unit is available for the replacement rental fee that was used in establishing the original offer. This could occur if the unit on which the original offer was based has been rented to someone else and there is no other unit available for the rental fee that was used in computing the original offer.

Recomputed rent supplement offers that are less than the original offer can be presented to the relocatees in lieu of the original offer provided that the relocatees would not suffer financial loss, embarrassment or other problems of consequence due to their inability to fulfill previous good faith commitments made in anticipation of receiving the original offer.

It is also proper to recompute the rental subsidy payment offer when the most nearly comparable DS&S replacement is more expensive than the subject and later a more nearly comparable DS&S replacement unit has become available, which is less expensive and more comparable to the subject.

In every instance, when rental subsidy payment offers are recomputed, the unit file must be documented to explain why such action was taken. Revised offers must be presented to relocatees in writing. Specifically mention that the revised offer cancels the original.

(2) Preparation--Routine Situations

The rental subsidy payment offer, not to exceed $7,200, is computed by subtracting the amount arrived at in either (a) or (b) below, from the total amount necessary to rent the most nearly comparable DS&S replacement dwelling unit available for the next 42 months.

(a) 42 times the average monthly rental paid by the relocatee during the last three months, or

(b) 42 times the economic monthly rental rate. If the average monthly rental being paid is substantially less than the economic rate, or, if an owner is involved who elects to rent rather than purchase a replacement.

The computation sheet, under the routine situation, is to be used as follows.

On line 3 of Section 1 check whichever of the three spaces that is applicable.

Also, in line 3 show the existing average monthly rental fee for the subject unit.

Check the appropriate space(s) on line 4 of Section 1. If partial utilities are provided, check specific utilities.

Line 5 of Section 1 is provided to show whether or not the landlord provides the furnishings. If it is partially furnished by the landlord, describe the items that are provided in the third space, for example, "refrigerator," "oven," etc.

Mark line 5 "N/A" unless the economic monthly rental fee for the subject is substantially less than the actual fee shown on line 2; or, an owner-occupant is involved who elected to rent rather than purchase a replacement. If either of these situations exists, show the economic rental rate for the subject unit. See EPG 236.8.11.3(a)(2), for possible exceptions relating to use of the economic rental fee.

Lines 6 and 7 of Section 1 relate to the unit occupied by the relocatee prior to displacement. Use the terms "Single-Family Dwelling," "Duplex," "Furnished Apartment," etc. in completing the first space.

The three sections provided to describe the most nearly comparable replacement dwelling units available are to be completed as follows.

On the first line in each section use a street address if possible; if not, refer to known landmarks in describing the location, such as distances and directions from highway intersections, named stream crossings, etc. The "distance from subject" can be shown in miles and tenths of miles and can be estimated.

The name of the property owner must be shown on the first space of the second line as well as the name of the realtor or real estate firm handling the rental of the replacement, if any, on the second space of the second line.

Show the realtor's address in the first space on third line. If a realtor is not involved, show the owner's address. Show the monthly rental fee of the replacement dwelling unit in the second space of the third line.

A space has been provided on the back of the form for a narrative comparison of each replacement unit to the subject unit. The narrative must provide a word picture of the important similarities and differences between the two dwelling units.

The exterior of replacement rental units used in computing rental subsidy payments and the neighborhood in which they are located must always be visually inspected by the person who computes the payment. An interior inspection is not required when reliable information is available regarding the interior.

Comparable replacement dwellings included on the form must be currently available to the relocatee for rent at the time the form is completed. They must also be adequate to meet the needs of the relocatee, DS&S and functionally equivalent or better to the subject unit. A copy of the "Relocatee Needs Questionnaire" must be furnished to the person who will select the comparable replacement dwellings so he/she will be in position to understand the needs of the relocatees and be able to select comparables that are adequate to accommodate them. EPG 236.8.8.3(b)(2), provides information that is helpful in determining whether or not a comparable is adequate to accommodate the relocatees.

If less than three comparable replacement units are available, document the file and use the number available. If none are available within the area, follow the procedure discussed in following Note A.

Before proceeding, it is necessary to select one of the three replacements included on the form as being the most nearly comparable to the subject. Show the number of the selected replacement (1, 2 or 3) in the first space on line 1of the computation section and its monthly rental fee in the second space.

Under Computations: Enter the utility services adjustment, as discussed in EPG 236.8.11.3(a)(4), on line 2. This entry must be the total of the estimated average monthly cost of all utilities for the selected comparable.

Line 3 is self-explanatory.

Check either the first or second space on line 4 to show whether the subjects existing (average) monthly rental from the third space of line 3 of Section 1 or its economic rental from the second space of line 5, same section, is reflected in the second space.

On line 5 enter the total of the estimated average monthly cost of all utilities for the subject dwelling unit.

Line 6 is self-explanatory.

On line 7 enter the average monthly gross family income from all sources excluding food stamps in the first space. In the second space enter 30% of the monthly amount if the amount is classified as “low income” by the U.S. Department of Housing and Urban Development’s Annual Survey of Income Limits for the Public Housing and Section 8 Programs that are updated annually and are available on FHWA’s Web site at https://www.fhwa.dot.gov/real_estate/policy_guidance/low_income_calculations/ualicex.cfm. This income information must be obtained from the needs questionnaire and will normally be based on the previous 12 months. This information must be verified during the ten-day contact with the tenant or at initiation of negotiations for displaced owners. If the displacee is receiving welfare payments designated for shelter and utilities and this amount is less than 30% of gross average monthly household income but pays all of the rent and utilities, the lesser amount should be entered in the second space.

If the relocation agent suspects that the income information provided is incorrect, additional information such as tax returns should be requested to verify the income.

If the displacee refuses to provide income information after the relocation agent has explained the necessity for it, the agent should inform the displacee that the lack of this information may reduce his or her payment and document the file. Enter N/A in both spaces on line 7.

Lines 8 and 9 are self-explanatory.

If furnishings as discussed in EPG 236.8.11.3(a)(5), are not involved, line 10 will be marked "N/A" and the amount on line 9 will be repeated on line 11. The amount on line 11 is the computed rental subsidy payment offer.

If the landlord provides major items of furnishings in the subject dwelling unit, but not in the selected comparable, proceed as follows. Review EPG 236.8.11.3(a)(5).

If the entry on line 9 reflects any amount other than "zero," enter the total rental costs or the total cost of purchasing the items, whichever is the lesser on line 10.

If line 9 reflects a "zero" amount, compute the entry for line 10 on Supplemental Rental Subsidy Computation Sheet, RA Form 236.8.11.3(b)(s). (The supplemental computation sheet is considered self-explanatory.) The amount from line 8 on the supplemental computation sheet will be entered on line 10 of the original computation sheet.

Add lines 9 and 10 and enter the total on line 11. Line 11 is the rental subsidy payment offer.

Should the entry on line 11, computed rental subsidy payment offer, exceed $7,200, see following NOTE A.

The form, when properly executed and dated, is then complete.

NOTE A: Computed Payment Exceeds $7,200

If the only comparable DS&S replacement rental unit available requires a rental subsidy payment in excess of $7,200, or if there are no acceptable comparables available in the area, the entire payment must be made under the Last Resort Housing Program. This program will not be applied for 90-Day owner-occupants who desire to rent rather than purchase replacement dwellings if comparable DS&S replacement dwellings are available to them for purchase through routine RHP.

If 90-Day owners elect to rent rather than purchase replacement housing and a comparable DS&S replacement rental unit is not available within the maximum $7,200 payment range, compute a routine RHP offer to prove that they could be relocated in the same ownership status they enjoyed prior to being displaced. The relocatees must be advised of the availability of such computed payment. If they still elect to rent, they can of course do so. Their rental subsidy payment shall be no more than their calculated RHP. The unit file must be documented to show that these actions were taken. If a comparable DS&S replacement dwelling is not available for either purchase or rent within the maximum payment allowance, a solution must be provided under the Last Resort Housing Program.

NOTE B: Relocatee Owns Pets

If a relocatee owns pets, it is preferable that selected comparable replacement rental units also permit pets; however, it is not mandatory that they do so if the most nearly comparable replacement units available meet all other comparability requirements and otherwise meet the needs of the relocatee involved.

Select comparable replacement rental units that permit pets, if this can be accomplished without increasing the amount of their rental subsidy payments and/or without the necessity of rejecting otherwise acceptable comparables.

Seeing Eye dogs owned by blind relocatees are not considered to be pets under this policy. When they are involved, comparables must be selected which will accept the relocatees' Seeing Eye dog. If other special cases involving pets and/or other animals are encountered which deserve special consideration, submit all facts to the Right of Way Section together with a recommended solution.

NOTE C: Relocatee is Disabled

To meet DS&S requirements the selected replacement dwelling unit for a disabled person must be free of any barriers which would preclude reasonable ingress, egress or use of the unit by the relocatee.

If a suitable replacement cannot be located which will accommodate the relocatee, it is permissible to increase the monthly rental of an otherwise comparable replacement unit to compensate the owner for the cost of rearranging it as necessary to meet the DS&S standards.

The department must not be placed in the position of guaranteeing or assuring the owner of a potential replacement dwelling that the relocatee will rent the unit if the landlord makes the necessary changes to enable it to accommodate the disabled person.

The relocation agent should (1) locate the otherwise comparable replacement unit, (2) determine the physical changes that are necessary to enable it to accommodate the relocatee, (3) determine that the landlord is willing to make the changes, (4) agree on an acceptable monthly rental fee to be charged if the changes are made, and (5) compute a rental subsidy payment offer based on the agreed monthly rental fee.

The relocatee and landlord must agree between themselves whether or not to proceed with the proposed physical changes in the potential replacement unit.

The computed offer will be available to the relocatee if he/she rents and occupies the selected comparable for the agreed rental fee that was based on remodeling to meet DS&S standards for the disabled if the remodeling was accomplished, or, if he/she rents any other replacement unit that meets DS&S disabled standards for an amount equal to or exceeding the agreed rental for the selected comparable. If the rental fee paid for the replacement unit that the relocatee actually rents and occupies is less than such agreed rental fee, the rental subsidy payment must be reduced accordingly.

(4) Preparation When 90-Day Owners Involved

When qualified 90-Day owners elect to rent rather than purchase a replacement, their payment offer will be computed in the same manner as discussed in preceding subparagraph (3) except that line 2 will be marked "N/A." The economic monthly rental fee applicable to the owner's subject dwelling will be used in computing their rental subsidy payment offer.

The "economic monthly rental fee" referred to above must be based on market data and the unit file must be documented.

(5) Preparation When Other Lands and/or Property Involved - Subject Property

If the rental fee being paid by a relocatee prior to being displaced includes other lands, or when a building is involved that houses both the relocatees' dwelling unit and business, a qualified staff person must prorate the total existing monthly rental fee being paid for the entire property to determine the portion that is applicable to the dwelling and supporting residential land area.

This determination must be in writing, signed by the prorator and approved by a district certified appraiser or district Right of Way Manager.

It will also be necessary to determine if that portion of the existing rental fee is compatible with the proper economic rental rate that is applicable to the dwelling unit. Follow the instructions in EPG 236.8.11.3(a)(2), when making these determinations. After the economic rent determination has been made, the payment offer will be computed in the manner discussed in preceding subparagraph (3).

(6) "Nil" or Substantially Reduced Rental Fees Involved

Review EPG 236.8.11.3(a)(2).

(7) Relocatee is "Working Out" Rental Cost

Should a relocatee be "working out," all or a portion of his/her existing rental fee by performing managerial services, custodian duties, etc., the economic value of the portion of the rental fee being "worked out" must be considered in determining his/her existing rental fee (added to the cash rental payment, if any). Enter the adjusted existing rental fee on line 2 of the computation sheet and compute the rental subsidy offer in the routine manner as discussed in EPG 236.8.11.3(b)(3).

(8) Other Public Agency Rental Subsidies Involved

(a) Other Public Agency Rental Assistance Involved - Prior to Displacement

If a portion of any public assistance payment received by a relocatee, such as a welfare payment, is specifically designated for housing costs, it is necessary to add the supplement to the amount being paid by the relocatee to establish the "average monthly rental being paid for the subject unit" unless (1) by law such rent supplement will be discontinued upon vacation of the subject, and not renewed after the relocatee has relocated, in which case, the supplement will not be included when establishing the relocatees' existing monthly rental, or (2) the relocatee is being displaced from public housing. If the relocatee is being displaced from public housing, see following subparagraph (b).

If the other agency's rent supplement payment is to be continued, the agency should be advised of the department's rental subsidy payment so they will not duplicate the payment by also increasing their payments to compensate for increased rental costs of the relocatees' replacement dwelling unit. If the other agency's supplement payment is continued, you only consider the out-of-pocket increases that the relocatee experiences, and you disregard the 30% income rule.

After the subject's "average monthly rental" has been properly determined, the rental subsidy payment offer will be computed in the normal manner.

The unit file must be documented when rent supplements from other agencies are involved to show what action was taken and why. If a rent supplement payment from another agency is involved, it will be necessary for the district to contact the agency to determine if such payments will be discontinued by law after the relocatee has moved to a replacement dwelling.

(b) Relocatee Displaced From Public Housing

Review EPG 236.8.1.3(i)(6).

Compute the rental subsidy payment offer in the manner discussed in EPG 236.8.11.3(b)(3).

When a relocatee is being displaced from public housing, always use replacement public housing, if available, as "comparables" on the computation sheet.

If the relocation rental subsidy payment offer is to be based on the cost of a replacement public housing unit, the relocatees' existing average monthly rental fee, to be used on line 2 of the computation sheet, will be his/her actual rental expenditure which does not include any portion of his/her housing costs that are paid by the Public Housing Agency. The monthly rental fee of the selected comparable, to be used on line 19 of the computation sheet, will be the actual rental payment that will be made by the relocatee, again excluding any portion of the replacement rental fee that will be paid by the housing agency.

If relocatees who are displaced from public housing are forced to rent private rental housing as a replacement, it is likely that they will be eligible for some type of public welfare housing supplement. The same instructions provided in the preceding paragraph are also applicable in this case. It will be necessary to determine if the relocatees will be eligible for public assistance housing payments. If so, deduct the amount of the payment from the rental fee of the replacement unit to determine the relocatees' replacement rental cost. The policy discussed herein will also produce the correct rental subsidy payment offer if the relocatee does not receive public housing assistance after displacement.

NOTE: Only in unusual circumstances may a comparable replacement dwelling contain fewer rooms or, consequentially, less living space than the displacement dwelling. An example is when a displaced person accepts an offer of government housing assistance and the applicable requirements of such housing assistance program require that the displaced person occupy a dwelling that has fewer rooms or less living space than the displacement dwelling

(9) Multiple Occupancy of Same Dwelling Unit

Review EPG 236.8.8.3(a)(7). The principles in the referenced subparagraph also apply to multiple occupancy of single-family rental units.

a. Comparable Decent, Safe and Sanitary Replacement Dwelling Unit IS Available

If a comparable or better DS&S replacement dwelling unit is available for rent within the maximum $7,200 rental subsidy payment limitation when two or more eligible individuals and/or families who do not maintain separate households are displaced from the same single-family rental dwelling unit, only one rental subsidy payment will be made. The payment offer will be computed in the routine manner as if only one family was involved.

b. Comparable Decent, Safe and Sanitary Replacement Dwelling Unit IS NOT Available

If a comparable or better DS&S replacement dwelling unit is not available for rent when two or more eligible individuals and/or families who do not maintain separate households are displaced from the same single-family rental unit and the families are forced to occupy separate rental units after displacement, each eligible individual and/or family involved will be entitled to a separate rental subsidy payment offer. A separate Rental Subsidy Computation Sheet (Form 236.8.11.3(b)) must be completed for each individual and/or family in the following manner.

Fill out the heading and line 1 in the usual manner.

Divide the existing average monthly rental fee being paid for the subject unit by the number of separate individuals and/or families that occupy it if the rental fee is being equally divided; if not, divide it accordingly to the percentage ratio being paid by each separate individual and/or family. Obtain a written statement, signed by each head of household, advising how the existing fee is being "split" if it is not being evenly divided. If a statement cannot be obtained, consider the fee as being equally divided. Enter the prorated portion of the existing fee applicable to the subject individual or family whose payment is being computed on line 2.

If one individual or family is principal renter and others are subrenters, the principal renter's pro rata portion of the existing rental fee will be the difference between the total rental fee the principal renter pays for the dwelling unit and the total of the payments he/she collects from the subrenters. The subrenter's pro rata portion will be the amount they pay to the principal renter.

If the subject's economic rental rate is a factor, determine it and prorate in the same manner applied to the actual existing fee. Show the prorated conclusion on line 5.

Prior to completing lines 7 through 18, it is necessary to determine the size and utility of the replacement rental dwelling unit to which each separate individual and/or family is entitled by considering the space and utility each used in the subject dwelling. This can be accomplished by determining the space each individual and/or family privately occupied in the subject. Shared space in the subject can be "credited" to all individuals and/or families involved who had unlimited access to it.

Use available DS&S replacements, lines 7 through 18, that are as nearly comparable as possible to the prorated space applicable to the subject individual or family.

After the above steps are taken, the balance of the computation sheet can be completed in the routine manner. The entries on lines 2 and 5 and on line 10, under the computation section, will not be a prorated amount; enter the total adjustment amount as if no other relocatees jointly occupied the subject unit. The cost of providing furnishings in the selected comparable relates only to those furnishings provided in the area privately and jointly occupied by the subject relocatee that are not also furnished in the selected comparable. All prorations and computations not included on the computation sheet should be documented in the unit file.

Should one of the individuals and/or families elect to rent a replacement dwelling unit and others elect to purchase in lieu of renting, each can qualify for their applicable payment if otherwise eligible.

Should the only existing comparable or better DS&S replacement dwelling units available require a rental subsidy payment in excess of $7,200, or if no existing comparable or better replacement is available, determine whether it is more practical to provide separate replacement dwelling units as discussed in preceding subparagraph B or to make an existing higher priced replacement available under the Last Resort Housing Payment Program. Submit your findings and recommendations to the Right of Way Section for concurrence prior to making a commitment to the relocatee.

If some of the occupants are owners and others are tenants, see EPG 236.8.8.3(a)(7)C.

(10) Utilities Furnished By Landlord

Review EPG 236.8.11.3(a)(4).

(11) Tenants With Less Than 90-Day Occupancy and Subsequent Occupants

Review EPG 236.8.1.3(c)(2) and (3), that discuss the department's replacement housing obligation to tenants with less than 90 days occupancy and subsequent tenant occupants.

Any comparable DS&S replacement dwelling available to such relocatees that requires a monthly rental fee that does not exceed the higher of (1) the rent being paid for the displacement unit, or (2) 30% of the relocatees' total monthly gross income (if determined to be “low income”as defined at 236.8.12.3(b)(3)) is affordable to them. If such a replacement is available, the relocatees will not be eligible for a rental subsidy payment or any other RHP. (An exception could exist: relocatees could possibly qualify for payment if the furnishings in the subject unit are provided by the landlord but are not provided in the "affordable" comparable replacement unit. Proper use of a rental subsidy computation sheet will determine whether or not payment is due and, if so, the amount.)

If an affordable replacement is not available, it will be necessary to present the relocatees a rental subsidy payment offer equal to 42 times the difference between (1) the relocatees' existing average monthly rental or 30% of their gross monthly income (if determined to be “low income”), whichever is the larger, and (2) the monthly rental fee of an available higher priced DS&S comparable. This computation procedure ensures that an affordable DS&S replacement is available to the relocatees.

Compute the payment on a Rental Subsidy Computation Sheet. The entry on lines 2 of the form and will be the greater of (1) the subject's existing average monthly rental, or (2) 30% of the relocatees' gross monthly income (if determined to be “low income”).

The relocatees' actual rental subsidy payment will be the lesser of (1) their rental subsidy payment offer, or (2) 42 times the difference between (a) the higher of the relocatees' existing monthly rental or 30% of their gross monthly family income (if determined to be “low income”), and (b) the monthly rental fee of the replacement dwelling they actually rent and occupy.

Relocatees in these two categories who are entitled to a rental subsidy payment can elect the down payment assistance option; however, the down payment assistance cannot exceed the amount of their rental subsidy payment offer plus incidental costs.

(12) Reductions in Rental Subsidy Payment Offers

Review EPG 236.8.8.3(c)(8), relating to reductions in RHP offers. The general principles therein are applicable when rental subsidy payment offers are involved.

Recomputed rental subsidy offers that are less than the original offer can be presented to the relocatee provided that the relocatee would not suffer financial loss, embarrassment or other problems due to his/her inability to fulfill previous good faith commitments made in anticipation of receiving the original offer.

When a reduced offer is involved, the unit file must be documented.

Revised offers should be presented to relocatees in writing. Specifically mention that the revised offer supersedes the original.

(13) Withdrawal of Rental Subsidy Payment Offers

See EPG 236.8.1.3(c)(7).

236.8.11.4 Computations - Actual Rental Subsidy Payment Due Relocatee

The only additional information needed to make an actual payment determination, which will not have been previously obtained for use in computing the rental subsidy payment offer, is the specific monthly rental fee being paid by the relocatees for their DS&S replacement dwelling unit. A final determination of the actual payment amount due a relocatee cannot be made until after he/she has rented a DS&S replacement dwelling unit.

The relocatees should furnish the department a copy of their lease or copies of applicable rental receipts to document the amount of the replacement rental rate. If neither is available, or if the amount of the replacement rental rate is not clearly defined in available documentation, the rate should be confirmed by both the tenant and the landlord and the file documented to show this action was taken. Under the latter circumstance, a signed statement by the department employee who made the determination, showing who was contacted, dates of contacts, how made, stated rental fees and other pertinent facts, is adequate.

If there are discrepancies in available documentation or if the relocatees and their landlord report different monthly rental fees for the replacement, the discrepancy must be reconciled before the actual rental subsidy payment amount can be properly determined.

(a) Payment Determination

(1) Routine Situations

In a routine situation, the actual rental subsidy payment amount will be either (1) the applicable rental subsidy payment offer as discussed in EPG 236.8.11.3(b)(3), or (2) an amount determined by multiplying the difference between the average monthly rental cost displacees were paying for the unit from which they were displaced and the monthly rental cost they are paying for the actual DS&S replacement unit times 42, whichever is the lesser, not to exceed $7,200. Use RA Claim Form 236.8.11.5(a), when computing this payment.

Line 1 under the computation section: Insert the actual monthly rental fee that the relocatees are paying for their replacement dwelling unit.

Should the relocatees move from an unfurnished unit to a furnished replacement, the portion of the replacement rental fee that is chargeable to the furnishings must be deducted from the total fee prior to computing the rental subsidy payment. Deduct the portion chargeable to furnishings from the total rental fee and reflect the resulting figure on line 13 of the claim form. Explain this action under comments on the back of the claim form that is used as a computation work sheet, or on a separate sheet attached to the file copy of the claim.

Line 2 thru 6: Self-explanatory.

Exception for line 2.

When the landlord provides the utilities in the actual DS&S replacement dwelling that is rented and occupied by the relocatee, insert "N/A" in line 2.

When utilities are provided by the landlord in both the subject dwelling and the selected comparable on which the rental subsidy offer was based but are not provided in the actual DS&S replacement dwelling rented and occupied by the relocatee, insert in line 2 the estimated monthly utilities for the replacement dwelling.

Line 7: The relocatees' average monthly household income should be reverified when the claim is filed. If the income has changed, the rental subsidy should be recomputed based on the average monthly income for the 12 months preceding the date the relocatee moved from the displacement dwelling. If this recomputation results in a lower payment and the relocatee has already spent or is obligated to spend the original computed rental subsidy as a down payment, the original average income should be used and a recomputation should not be done. If the relocatee is no longer employed, provide the facts to the Right of Way Section and request assistance.

Lines 8 thru 15: Self-explanatory.

(2) Other Lands and/or Property Involved - Replacement Property

If the replacement rental property includes other lands and/or property, in addition to the single-family residential dwelling unit occupied by the relocatee, it will be necessary for an appraiser to determine, as accurately as possible, the portion of the total rental fee that is chargeable to the dwelling and supporting residential land area.

The determination must be supported in writing, signed by the appraiser and approved by the district certified appraiser or district Right of Way Manager.

The appraiser should consider the economic rental fee for the replacement dwelling unit and a proration of the total fee being paid for the entire replacement property to arrive at a pro rata amount. Hopefully both approaches will indicate the same conclusion; however, if not, the portion of the total fee charged to the replacement dwelling unit will, of necessity, be based on the proration of the actual rental fee being paid for the entire replacement property.

The prorated portion of the total rental fee that is assigned to the replacement dwelling unit will be used on line 1under computations of RA Claim Form 236.8.11.5(a).

Should a replacement rental property that includes other lands and/or property be located in another state, advise the Right of Way Section and request assistance in obtaining the necessary proration of the rental fee.

(3) Other Public Agency Rental Subsidies Involved

(a) Relocatee Moves to Public Housing

If relocatees move into public subsidized rental housing, the actual rental fee being paid by the subject relocatees for their subsidized housing must be used in determining the amount of the rental subsidy payment they are entitled to receive from the department. This fee should be obtained from the public agency in charge of such rental housing.

If relocatees who elected to be paid in installments originally move into decent, safe and sanitary replacement rental housing that is not subsidized and later, during the four-year installment payment period, move into public subsidized rental housing that requires a lower rental fee than their original replacement, the public housing agency involved must be notified in writing that the relocatees are receiving rental subsidy payments from the department that are based on higher rental fees than they are currently paying for such public housing. The department's rental subsidy payment will not be recomputed or changed and future installment payments will be made as originally scheduled so long as the relocatees occupy DS&S housing.

(b) Other Public Agency Rental Assistance Involved - After Displacement

If relocatees who did not receive direct rental assistance payments from other agencies prior to being displaced do receive such payments after displacement, use only the actual replacement rental payment they are making, excluding subsidies being paid by other agencies, when computing the actual rental subsidy payment they are entitled to receive from the department.

Should the initiation of rental assistance payments by other agencies not begin until after the first rental subsidy payment is made by the department, but during the installment payment period, notify the public agency making such payments in writing that the department is also making rental subsidy payments to the relocatee. The department's rental subsidy payment will not be recomputed or changed and future installment payments will be made as originally scheduled so long as the relocatees occupy DS&S housing.

It is not the district's responsibility to uncover rental assistance payments from other agencies unless this information is provided on the claim form. If district personnel learn that a claim form is erroneous, and that such payments are being received by a relocatee, the other agency involved must be notified.

(c) Other Public Agency Rental Assistance Involved - Before and After Displacement

Review EPG 236.8.1.3(i)(6).

If the same portion of a public housing assistance payment received by a relocatee both before and after displacement is specifically designated for housing costs, normally as a rent supplement, his/her rental subsidy payment will be computed based upon out-of-pocket expense increases without regard to income. When computing the relocation rental subsidy payment, consider total rental fees paid for both the subject and replacement dwelling units, the rent supplement payment paid by the public agency plus the amount paid solely by the relocatee.

If the public assistance payment does not designate a specific amount for housing costs, the relocation rental subsidy payment will be computed in the manner discussed in EPG 236.8.11.4(a)(1). Consider total rental fees in the actual payment computations.

All of the preceding instructions in this subparagraph also apply, including the applicability of the payment computation procedure discussed in EPG 236.8.11.4(a)(1), if the portion of the public assistance payment designated for housing costs change after displacement except that only the portion of the rental fees, both subject and replacement paid solely by the relocatee, excluding the public agency rent supplement, will be used when computing the relocation rental subsidy payment. Under this circumstance, the computed payment will not normally exceed the previously computed rental subsidy payment offer. Should it do so, it will be necessary to recompute the payment offer for the purpose of establishing the maximum payment available using the portion of the rental fee paid solely by the relocatee. Determine the portion of the selected comparable's rental fee that would be paid solely by the relocatee by subtracting the revised rent supplement paid by the other agency from the rental fee of the selected comparable.

It will be necessary to obtain information from the public agency involved if it is not known whether or not a portion of such agency's assistance payment to the relocatee, both before and after displacement, is specifically designated for housing costs.

The unit file must be documented when rent supplements from other agencies are involved to show what action was taken and why.

(d) Other Public Agency Rental Assistance Discontinued After Displacement

If a relocatees' public assistance payment is discontinued by law after displacement, follow the same instructions included in the preceding subparagraph which are applicable when the portion of the public assistance payment designated for housing costs changes after displacement.

If the public assistance payment is discontinued for any reason other than as required by law, request specific computation instructions from the Right of Way Section.

NOTE: Relocatees will not be eligible for a rental subsidy payment if their entire rental fee is being subsidized by a public agency both before and after displacement.

(4) Multiple Occupancy of Same Dwelling Unit (Relocatees Do Not Maintain Separate Households)

Review EPG 236.8.8.3(a)(7)B. The principles therein are also applicable when rental dwellings are involved.

(a) Comparable Decent, Safe and Sanitary Replacement Dwelling Unit IS Available

If a comparable or better DS&S replacement dwelling unit is available for rent within the maximum $7,200 when two or more eligible individuals and/or families are displaced from the same single-family rental dwelling unit, only one rental subsidy payment will be made. The payment will be computed in the routine manner.

Should the individuals and/or families rent and occupy different replacement dwelling units by choice, or should some rent DS&S replacements but others fail to do so, each eligible individual and/or family can be paid the lesser of (1) their pro rata share of the one rental subsidy payment offer, or (2) an amount computed in the manner explained in paragraph II, headed "Actual Payment Computations."

Should some of the individuals and/or families rent and others purchase replacement dwellings, those which rent can be paid a rental subsidy payment determined in the preceding manner and those which purchase can be paid a pro rata share of the one rental subsidy payment as a down payment plus incidentals.

NOTE: The following procedure is fully applicable even though one of the relocatees is the principal renter and the others are subrenters. The total rental fee paid by the principal renter will be used in computing the one payment. When determining the principal renter's actual contribution toward payment of the total rental fee, deduct the amount he/she collects from the subrenters from the total rental fee paid for the subject unit.

I. Proration of Offer

The first step in prorating the rental subsidy payment offer is to obtain a written statement from the parties involved advising of the amount each contributed toward payment of the total rental fee charged for the unit from which they were displaced. The statement must be signed by all of the separate parties which occupied the subject regardless as to whether or not they paid any portion of the rental fee. If for any reason they fail to present the statement, consider them as having shared the rental fee equally. Relocatees who did not pay any portion of the subject unit's rental fee will not be entitled to a separate pro rata rental subsidy payment from the department.

Prorate the one computed payment offer to determine each individual and/or families share by dividing the offer in the same percentage ratio that each contributed in the payment of the subject's rental fee. The pro rata share of the rental subsidy offer thus established will be the maximum rental subsidy payment that any of the separate parties can be paid and will be the amount shown on line 20 of the claim form.

If two or more of the individuals and/or families rent and occupy the same DS&S replacement unit, add their pro rata shares together to determine the maximum payment they are jointly entitled to receive. No problem will be encountered if those who relocate together request installment payments as discussed in EPG 236.8.11.5(b), unless they "split" after receiving their initial payment and some do not reoccupy DS&S housing. Should this occur, divide the amount of the current installment payment by the total number of relocatees who were originally eligible to receive it and pay those who are currently qualified their share of the installment payment.

II. Actual Payment Computations

The actual payment due each separate party involved, not to exceed their pro rata share of the joint offer as determined in paragraph I above based on the rental fee they actually pay for their replacement dwelling can be determined by completing the "Payment Computations" section of RA Claim Form 236.8.11.5(a), using the pro rata share of rent and utilities they paid on the displacement dwelling.

Contact the Right of Way Section if unusual circumstances are involved which indicate that the procedures in this subparagraph are inappropriate.

(b) Comparable Decent, Safe and Sanitary Replacement Dwelling Unit IS NOT Available.

If a comparable or better DS&S replacement rental dwelling unit is not available for rent when two or more individuals and/or families are displaced from the same single-family rental unit, each will be entitled to a separate rental subsidy payment if they actually rent and occupy separate replacement dwelling units and otherwise qualify for the payment. Should the individuals and/or families involved actually rent and occupy the same single-family replacement dwelling unit, they will be entitled to only one rental subsidy payment. The amount of the one payment will be arrived at by multiplying the difference between the total monthly rental fee they, all relocatees jointly, paid for the subject and the total monthly rental fee being paid for the replacement, times 42, not to exceed the combined total of their separate rental subsidy payment offers.

When the relocatees involved are entitled to separate payments, each individual and/or family must submit a separate claim. The computations section of the claim form will be completed in the routine manner. Amounts will not be prorated. Use the total adjustment figure as if no other relocatees jointly occupied the subject unit.

(c) Married Couples Separated and/or Divorced After Initiation of Negotiations But Prior to Filing Claim

Consider that the former spouses were paying equal portions of the rental fee for the unit from which they were displaced unless they specifically claim otherwise and agree in writing to a different proration.

(5) Tenant Makes Subsequent Moves Within First Year After Original Displacement

Should relocatees who qualified for and received their maximum rental subsidy payment offer, or who have received at least one installment on such payment, moves from their initial replacement dwelling unit to a different DS&S unit, their payment amount will not be recomputed or changed even though they pay a different monthly rental fee, either higher or lower, for the subsequent replacement unit. This policy applies regardless as to whether the subsequent move occurs within, or after, the one-year period.

If relocatees who have been paid a lump sum rental subsidy payment which was less than their maximum rental subsidy payment offer moves to a subsequent DS&S replacement dwelling unit, within the one-year period which requires a higher rental fee than their original replacement, they can be paid the difference between their original payment and the amount that would be due as a rental subsidy payment based on the subsequent replacement unit. Claims for "second" payments must be clearly identified and the file must be documented to show why the payment is being made. If the subsequent move occurs after the above-referenced one-year period, no additional payment will be made under any circumstances.

(6) Rental Fee For Replacement Rental Unit Increased By Landlord

If the monthly rental fee for an occupied replacement rental unit is increased after the relocatees receive their rental subsidy payment, no additional payment will be made by the department to cover the increased monthly rental expenditure.

If the relocatees received their payment in installments, the amount of installment payments will not be recomputed, changed or increased if the monthly rental fee of their replacement rental unit is increased after they receive their initial installment payment.

This policy applies regardless as to whether the rental fee was increased within the first year after the original displacement or in subsequent years.

(7) Relocatee Displaced From Conventional Dwelling or Mobile Home Becomes Occupant of Rest Home

The rental subsidy payment for a relocatee who moves to and becomes a permanent rest home occupant after being displaced from a conventional dwelling unit, or from a mobile home, is computed in the routine manner using the portion of the monthly rest home fee that is chargeable to basic "room rent" and utilities as the replacement rental fee.

If the relocatee becomes a temporary rest home patron after displacement, provide the facts involved to the Right of Way Section and request instructions before making a commitment to the relocatee.

(8) Conversion of Payment

Displaced tenants who rent their original replacement dwellings can within the one-year time period purchase and occupy a replacement dwelling and claim a down payment assistance; however, the amount of any previously paid rental subsidy must be deducted from the down payment assistance.

90-Day owners, who originally rent their replacement dwelling can, within the one-year period, purchase and occupy a replacement dwelling and claim a RHP. Any previously paid rental subsidy payment will be deducted from the RHP.

In either case, the second payment will be computed as if the current replacement dwelling had been originally purchased and as if the interim rental status had not occurred. If it is not possible to determine which replacement housing was available for purchase by a 90-Day owner at the time original displacement, the maximum RHP would be based on the most nearly comparable DS&S replacement dwelling available at the time the relocatee purchased the second replacement.

Neither down payment assistance or RHPs will be available to relocatees who change their ownership-occupancy status after the above-referenced one-year period.

236.8.11.5 Rental Subsidy Claim Forms

Relocatees must use RA Claim Form 236.8.11.5(a), and no other, in claiming their payment in one lump sum.

General information concerning claim forms previously discussed in EPG 236.8.6.8(d), also apply to the rental subsidy claim form.

(a) Rental Subsidy Claim Form--Lump Sum Payments (RA Form 236.8.11.5(a))

(1) Time For Filing Claims

The claim must be filed within 18 months after the date the relocatees move from the subject dwelling unit but not before they have rented and occupied a DS&S replacement dwelling unit. Rental subsidy claims can be paid as soon as the relocatees meet all eligibility requirements. It is not necessary to wait until the dwelling from which they were displaced has been acquired by the department.

NOTE A: Direct Payment to Lessor

Upon specific written request from eligible relocatees, their rental subsidy payment can be made directly to a lessor as rental for a DS&S replacement dwelling unit. The relocatees' request for a direct payment must (1) state their desires, (2) name the persons to whom they want the check made payable, (3) advise that those named are lessors of the dwelling unit they are renting to replace the unit from which they are being displaced by the department, (4) that the payment is being applied to the rental charge for the replacement dwelling unit, and (5) that they take full responsibility for the completeness and accuracy of the lessors' names and that they fully understand that the department will not be responsible for the omission of any person from the payment who has an interest in the replacement property. The rental subsidy payment will not be divided, the entire amount due must be paid in one check to the same party or parties.

The front of the claim form should be completed and executed in the routine manner. The district must show the persons to whom the check is to be made payable in the appropriate space at the top of the backside of the form. Under comments, explain that the payment is being made to the lessor of the replacement dwelling unit as requested by the relocatee. Attach a copy of the relocatees' written request for direct payment to each copy of the claim, those submitted with the payroll and the copy retained for the unit file.

(b) Manner of Disbursing Rental Subsidy Payment

Rental subsidy payments will be disbursed in a lump sum, unless the district, with concurrence from the Right of Way Section, determines that the payment should be made in installments.

236.8.12 Relocation Assistance Program - Down Payment Assistance

236.8.12.1 General Policy

Displaced tenants who elect to purchase in lieu of renting a DS&S replacement dwelling, and who actually do so, are entitled to a down payment assistance if they meet the eligibility requirements discussed in following EPG 236.8.12.2.

The payment amount is equal to their computed rental subsidy payment plus reimbursable incidental closing costs, the combined total of which normally cannot exceed $7,200.

(a) Displaced Tenants - Computed Down Payment Assistance is $7,200 or Less

The payment will be based on the lesser of (1) the amount of the computed rental subsidy plus incidental closing costs, or (2) the amount the relocatees actually paid down in the purchase of their replacement dwelling plus eligible incidental closing costs.

(b) Down Payment Assistance in Excess of $7,200

The right of way manager must specifically authorize any down payment assistance in excess of $7,200 as a last resort housing payment.

(1) Last Resort Down Payment Assistance

a. Tenants

Last resort down payment assistance is available to displaced tenants only when either of the following conditions exist:

(1) there are no comparable DS&S replacement rental dwelling units available on the market,

(2) the only comparable DS&S replacement rental dwelling units available would require a rental subsidy payment that exceeds $7,200.

Last resort down payment assistance available to tenants cannot exceed the amount the relocatee would be entitled to as a rental subsidy payment based on the monthly rental of the most nearly comparable DS&S replacement dwelling unit available on the market including incidental closing costs.

Should the original last resort rental subsidy offer be reduced to $7,200, it must be withdrawn and an offer of $7,200 or less made.

236.8.12.2 Payment Eligibility Requirements

Eligibility requirements include all those requirements previously stated for rental subsidy payments.

(a) Down Payment Assistance Must Be Applied to Purchase Price of Replacement

The relocatees must make a payment on their replacement residential property equal to or exceeding the amount paid to them as a down payment assistance.

It is not required that the relocatees obtain a loan for the purchase of their replacement. They can pay any part of the purchase price from their own resources without the necessity of borrowing money on the property without affecting their payment eligibility.

NOTE: Money spent by a relocatee in correcting DS&S deficiencies in a newly purchased replacement dwelling will, when properly documented to prove the expenditure, be considered as having been included in the actual down payment made by the relocatee. The value of labor contributed in correcting these deficiencies can be included with prior Right of Way Section concurrence.

(b) Replacement Dwelling Must Be Acquired and Occupied Within One Year

Eligible relocatees must acquire and occupy DS&S replacement dwellings within a one-year period determined in the following manner.

Tenant: The same one-year period as discussed in EPG 236.8.11.2(a)(3), which is applicable when rental subsidy payments are involved.

236.8.12.3 Payment Computations

Compute a rental subsidy payment offer, using a Rental Subsidy Offer Computation Sheet (Form 236.8.11.3(b)), to determine the maximum rental subsidy payment the relocatees could be paid. If the computed "offer" is $7,200 or less, their down payment assistance will be limited to $7,200 including incidental expenses. The down payment and closing costs combined cannot exceed $7,200. No additional steps are necessary.

If the rental subsidy offer exceeds $7,200, payment will be made under the provisions of last resort and will be limited to the computed rental subsidy amount including incidentals.

In some cases, relocatees will need to know in advance the maximum payment they could receive before committing to the purchase of a replacement dwelling. If so, the information should be made available to them.

The "Computation Section" of a Down Payment Claim Form can be used as a work sheet when computing down payment assistance. (Future reference to the "Computation Work Sheet" relates to the use of a Down Payment Claim Form in this manner.)

Line 1: Insert the computed rental subsidy amount that was offered to the relocatee.

Line 2: This line must reflect the documented amount that the relocatees actually paid down in the purchase of their replacement residential property. The closing statement, a copy of which is to be placed in the unit file, will normally show the amount of the down payment. If a closing statement was not prepared, obtain certified statements from both the relocatee and the lending agency verifying the amount of the down payment.

If the down payment assistance is being paid into escrow, the amount to be shown on this line is the down payment that the relocatees have committed to make in the purchase of their replacement residential property.

Documented construction and/or DS&S improvement costs can be considered as having been "paid down" in the purchase of the replacement property.

Lines 3 thru 9: Self-explanatory. (It is advisable to review EPG 236.8.9(a) and (b), which relate to incidental closing costs before completing lines 5 thru 9.)

Lines 10 and 11: Line 10 is provided to include the points paid by the relocatees in financing their replacement dwelling. Line 11 should reflect any loan origination and/or service fees paid by them.

Line 12: Self-explanatory.

Line 13: This line has been included on the form to ensure that any previously paid rental subsidy payment will be deducted from the relocatees' down payment assistance. A deduction of this type will be necessary if a relocatee who originally rents a replacement dwelling unit and claims a rental supplement payment later, but within the first year after displacement, purchases a DS&S replacement and claims down payment assistance.

"Total Amount Claimed" is self-explanatory.

(1) Use of Claim Form Computation Work Sheet in Multi - Occupancy of Same Single - Family Dwelling.

Should eligible individuals and/or families who are displaced from the same single-family dwelling purchase and occupy different DS&S replacement dwellings, each will be entitled to a separate payment.

Each eligible party's payment can be computed by using the computations section of the RA Claim Form 236.8.12.5 in the following manner. The procedure must be completed for each eligible party.

Review EPG 236.8.12.3, which provides instructions for use of the claim form as a payment computation work sheet.

Lines 1 thru 11: Complete in the normal manner. Use the total unprorated rental subsidy on line 1.

Line 12: Divide the total of lines 9, 10 and 11 by the total number of separate parties that occupied the subject unit and insert the resulting figure on line 12.

Line 13: Self-explanatory.

(2) Use of Claim Form Computation Work Sheet When Computing Last Resort Payment For Tenants

Review EPG 236.8.12.1(b)(1)a, before proceeding.

Type "LAST RESORT PAYMENT" in capital letters across the top of the claim form.

Lines 1 thru 13: Instructions for completing these lines as provided in EPG 236.8.12.3, are fully applicable.

236.8.12.4 Advance Down Payment Assistance

When relocatees do not desire to use their existing resources, to make a down payment on a replacement dwelling prior to receiving the payment, it is permissible to process their claim for advance payment.

Review EPG 236.8.8.1(a), which is generally applicable for down payment assistance and provides the conditions under which advance payments will be made. This Section, is fully applicable to down payment assistance; however, Escrow Agreement Form 236.8.8.1(b), is not applicable. Use the Down Payment Escrow Agreement discussed in following subparagraph (a) when down payment assistance is involved.

(a) Down Payment Escrow Agreement (See RA Form 236.8.12.4(a))

The escrow payment procedure is normally desirable in making an advance payment if the seller of the replacement dwelling is agreeable to closing the transaction and permitting the relocatees to occupy the dwelling prior to receipt of the entire purchase price with the condition that the relocation payment will be placed in escrow for immediate delivery after the relocatees purchase and occupancy eligibility requirements are fulfilled.

The following actions should be taken when the escrow payment procedure is used:

Step 1: The Relocation Agent and relocatees should mutually agree on a qualified Escrow Agent other than the real estate firm that is handling the sale of the replacement property to the relocatees. Reasonable escrow fees, which should always be predetermined, can be paid by the department as routine relocation incidental expenses.

Step 2: District personnel should fill out a "Down Payment Escrow Agreement," RA Form 236.8.12.4(a), in the following manner.

List the names of all relocatees who are eligible to receive the payment in the first blank space as "Purchasers." Insert the name of the Escrow Agent in the second space.

Compute the amount to be shown in the third paragraph of the agreement by using a Down Payment Claim Form (Form 236.8.12.5) as a work sheet.

(1) Complete lines 1, 2 and 3 in the routine manner. Line 2 will reflect the down payment amount that the relocatees agreed to pay when they obtained their loan commitment from the lending agency which is financing the purchase of their replacement dwelling.

(2) Mark line 9 "N/A."

(3) Insert the amount shown on line "Total Amount Claimed" of the computation sheet (Claim Form) in the third paragraph of the Escrow Agreement.

NOTE: The computed amount to be shown in the third paragraph of the agreement does not include any incidental closing costs, fees or points.

The amount to be shown in the first numbered paragraph of the agreement, which relates to the amount to be deposited with the Escrow Agent, is the same amount that was shown in the preceding paragraph of the agreement.

The amount to be shown in the fifth numbered paragraph of the agreement is the same amount that was shown on line "Total Amount Claimed" of the above-referenced computation sheet, the computation sheet that was used in computing the amount inserted in the third paragraph of the agreement.

Step 3: The agreement must be signed by all relocatees whose names appear in the first paragraph of the agreement as "Purchasers" who executed the agreement, the escrow agent and the department.

The wording in the fourth numbered paragraph of the agreement should be interpreted to mean that the escrow agent will check with the district prior to releasing the payment so that the district can ensure that all payment eligibility requirements have been fulfilled. This requirement should be explained at the time the escrow agent's copy of the agreement is signed.

Step 4: Give one copy of the agreement to the relocatees, one copy to the escrow agent and retain original for the unit file.

Step 5: Assist the relocatees in completing and filing their down payment assistance claim.

Should the relocatees purchase a replacement under a binding purchase agreement or under any other arrangement that would cause the wording in the second numbered paragraph to be inaccurate, advise the Right of Way Section.

If relocatees, who intend to obtain a replacement other than through outright purchase of a DS&S replacement dwelling, request an "advance" down payment, advise the Right of Way Section.

Escrow fees should not be paid until the escrow agent has provided a signed receipt as required in the fourth numbered paragraph of the Escrow Agreement.

NOTE: As previously explained, escrow deposits do not include incidental closing costs as the amount of these costs will not be known at the time the escrow deposit is made. Paragraph 5 of the Escrow Agreement states that the relocatees must make an actual down payment in the purchase of their replacement that is not less than the specified amount in order for the escrow deposit to be released. In nearly every case, the relocatees will have progressed far enough with the purchase of their replacement by the time the Escrow Agreement is signed to ensure that they will make the specified down payment. It is possible, with district Right of Way Manager’s approval, to authorize the escrow agent to release a lesser amount than the total escrow deposit to the relocatees and refund the balance to the department if the relocatees' actual down payment is less than the amount paid into escrow. The relocatees can claim the applicable portion of their incidental closing costs in a later claim.

(b) Include Escrow Agent as Payee on Check

When a Down Payment Escrow Agreement is used, list the payees on the back of the claim form in the following manner:

"(Escrow Agent's name), Escrow Agent for (list all relocatees who signed claim)."

The claim payment check should reflect the payees in the same manner.

236.8.12.5 Down Payment Claims

(a) When Filed

Down payment claims will not be filed until an eligible relocatee has purchased and occupied a DS&S replacement dwelling unless the advance payment procedures discussed in the preceding paragraphs are used.

Down payment assistance claims from tenants must be filed with the department no later than 6 months after the expiration of the one-year period discussed in EPG 236.8.11.2(a)(3).

(b) Down Payment Claim Form (See RA Form 236.8.12.5)

Down Payment RA Claim Form 236.8.12.5 must be used in claiming down payment assistance.

Any member of the district right of way staff is authorized to assist the relocatee in computing the payment and in completing the claim form. The claim and accompanying documentation must be carefully checked after it is received in the district and prior to submission to the Right of Way Section for payment.

The claim form is designed to enable eligible relocatees to include incidental closing costs. Instructions applicable to incidental closing costs and the manner in which they should be included on this type claim form are provided in EPG 236.8.9.2(b).

The "Computations" section of the claim should be completed as discussed in EPG 236.8.12.3.

(c) Required Documentation

(1) Routine Claims Submitted After Replacement Purchased

Copies of the "closing statement" showing the amount of the actual down payment made must be attached to the original copy of the claim form when submitted by the relocatee. Also attach a copy of any "sales agreement" that was used in the transaction.

If the closing statement does not clearly show the amount of the actual down payment made by the relocatee or if a closing statement was not prepared, the relocatee must provide a notarized statement signed by both the buyer and seller certifying the amount paid down. Under this circumstance, the district should be sure prior to making the payment that the deed or sales contract by which the relocatee acquires the replacement dwelling is recorded in the office of the County Recorder of Deeds. See EPG 236.8.1.5(c) if a sales contract is involved.

In addition, copies of paid receipts must be included to prove all incidental costs claimed if they were not included in a closing statement and any other documentation necessary to support all of the costs and payments included in the claim for reimbursement.

If construction costs are considered as having been paid down in the purchase of the replacement property, these costs must be documented by paid receipts or other proof.

All documentation is to be retained in the district unit file and is not to accompany claims submitted to the Right of Way Section for payrolling.

(2) Advance Claims Submitted Under Escrow or Relocation Housing Possession Agreement Provisions

Advance claims covered by a signed Escrow or Relocation Housing Possession Agreement do not require additional attached documentation. Documentation as required in preceding paragraph (1) must be obtained for the unit file before or at the time the escrow payment is released.

The down payment amount set out in an "Escrow Agreement" must be the same amount as reflected in the advance claim unless approval for a different payment amount was approved by the Right of Way Section under the procedure discussed in the NOTE at the end of EPG 236.8.12.4(a).

After the closing has occurred and payment has been delivered to the relocatee by the Escrow Agent, a signed receipt will be available for the file as required in the Escrow Agreement.

Advance claims submitted under the escrow provision must be accompanied by a copy of the executed "Down Payment Escrow Agreement" when forwarded to the Right of Way Section for payment.

(3) Incidental Costs Must Be Documented

All incidental costs claimed must be shown in the closing statement. If a closing statement was not prepared, expenditures must be supported by paid receipts.

(d) Direct Payment to Seller of Replacement Dwelling

The relocatees' payment will be made directly to the seller of the replacement dwelling if the relocatees specifically request it in writing.

The relocatees' written request must (1) clearly state their desires, (2) name the specific persons to whom they want the check made payable, (3) include a statement that the parties named are the grantors of the dwelling they are acquiring to replace the dwelling unit from which they are being displaced by the department, (4) that the payment is being applied to the purchase price of their replacement dwelling, and (5) that they take full responsibility for the completeness and accuracy of the grantors' names and that they fully understand that the department will not be responsible for the omission of any person from the payment who has an interest in the replacement property. The payment will not be divided. The entire amount due must be paid in one check to the same party or parties.

The front of the down payment claim form should be completed and executed by the relocatees in the routine manner. The district must show the person or persons to whom the check is to be made payable in the appropriate space at the top of the back side of the form. Under "Comments" explain that the payment is being made to the grantor of the replacement dwelling as requested by the relocatees. Attach a copy of the relocatees' written request for direct payment to each copy of the claim form.

236.8.13 Relocation Assistance Program - Last Resort Housing

236.8.13.1 General Explanation

As noted in preceding sections, the Uniform Relocation Regulations establish maximum payment limitations for the various types of RHPs. The regulations also prohibit acquiring agencies from causing residential occupants to move from their dwellings unless comparable DS&S replacement housing has been made available to them.

Without relief from these limitations and prohibitions, it would not be possible to proceed with a project when the only replacement dwellings available require RHPs in excess of the maximum payment limitations or when there is no existing replacement housing available. Relief is provided in the Uniform Regulations which authorize Last Resort Housing Payments.

These payments can be made available under the Last Resort Housing Program when there is reasonable likelihood that the project will not be able to proceed in a timely manner because comparable DS&S replacement housing cannot otherwise be made available to the residential relocatees.

The department is given broad latitude in providing replacement housing under this program, providing that the costs are reasonable and the measures taken to provide last resort housing are cost effective.

(a) Methods of Providing Last Resort Replacement Housing

Practically any reasonable and cost effective procedure can be used in providing last resort replacement housing. The methods of providing last resort housing include, but are not limited to:

1. Rehabilitation of and/or additions to an existing replacement dwelling.

2. The construction of a new replacement dwelling.

3. The relocation of an existing dwelling and, if necessary, its rehabilitation.

4. The purchase of land and/or a replacement dwelling by the department and sale or lease to the relocatee.

5. Changes as necessary in a replacement dwelling to enable it to accommodate a disabled relocatee.

6. The provision of a direct loan that requires a regular amortization or deferred payment. The loan may be unsecured or secured by the real property. It may bear interest or be interest free. This procedure cannot be applied in lieu of a RHP but used only when a relocatee cannot otherwise secure financing.

7. A replacement housing, down payment or rental subsidy payment that exceeds the maximum payment limitations for the type payment involved.

Procedure 7 will normally be the most cost effective way to provide suitable last resort replacement housing. In this case, a comparable DS&S replacement will be available but the computed RHP based on such replacement will exceed the maximum payment limitation. When justified, approval will be granted to pay the computed amount as a last resort payment.

Under limited conditions, in areas where replacement housing is in short supply, it may be permissible for the department to rent an available replacement unit and hold it open for tenants that will be displaced by a project. It may also be permissible for the department to rent a dwelling that is being acquired as right of way for a project if it becomes vacant prior to acquisition or prior to the date possession is obtained by the department to ensure that it will not be rented to subsequent occupants. Neither procedure will be considered routine and will be used only in those cases where it is clearly in the department's best interest to do so.

(b) Last Resort Housing Plan

All last resort RHPs must be approved in advance by the district Right of Way Manager.

(c) Additional Information Relating to Last Resort Payments

1. All types of last resort housing payments will be properly coded on relocation payrolls to the appropriate activity, object and sub-object codes.

2. If any part of a RHP is last resort, the entire payment will be last resort. There is no instance when only the portion of a payment that exceeds the maximum dollar limitation is "charged" to last resort.

3. Once approved for last resort, the payment will be properly coded for “last resort” payment even though the actual payment does not exceed the maximum payment limitation as originally anticipated.

4. Any RHP to a relocatee with less than 90 days occupancy will be considered a last resort payment.

5. Relocatees cannot be forced to accept the replacement made available under last resort, without their written consent, in lieu of any acquisition or relocation payment for which they are otherwise eligible.

6. The department's obligation to ensure that a comparable DS&S replacement dwelling is available shall be met when a dwelling, or assistance necessary to provide a dwelling, is offered under the Last Resort Program.

Do not hesitate to request advice and/or assistance from the Right of Way Section when the necessity for a last resort housing payment is experienced.

236.8.14 Relocation Assistance Program - Possession Policies and Vacancy Notices

236.8.14.1 General Information

(a) Owner-Occupants

(1) Acquired Through Negotiated Settlement

Owner-occupants can retain possession of improved properties acquired from them through negotiated settlement for a 90-day period after the right of way payment is made to them or their Escrow Agent. If the parcel is vacated prior to the end of the 90-day possession period, possession will be taken by the department immediately after vacancy. This policy applies to residential units, businesses and/or farm buildings and those owned by nonprofit organizations.

When unimproved and/or vacant property is acquired by negotiated settlement, both title and possession pass to the department at the time the owners or their Escrow Agent is paid for the right of way involved.

(2) Acquired by Condemnation

Owner-occupants of improved property acquired by condemnation shall be granted 30 days' possession after they are provided a "Notice to Vacate" by the department. The "Notice to Vacate" will be mailed immediately after the owners' condemnation commissioners' award is paid into court. However, any displaced owner-occupant of a principal place of residence shall have one hundred days from the date the commissioners’ report is filed with the court.

If unimproved and/or vacant property is acquired through condemnation, the department is entitled to possession ten days after the condemnation commissioners' award is paid into court unless the court grants the property owners additional time to deliver possession.

(b) Owner-Non-occupants

The possession periods and the possession policies established in the preceding paragraphs also apply for owners of occupied properties who do not themselves occupy the subject parcel.

If tenants occupy the subject property, the owners are entitled to any rental fees during the possession period. Rentals are to be paid directly to owners by the tenants and such owners are responsible for any building or utility repairs and/or maintenance that becomes necessary during that period.

The department will take immediate possession of tenant-occupied property that is vacated prior to the end of the authorized vacancy period unless there are items of personal property or unharvested garden products remaining on the subject parcel after the tenants have moved. If these items remain on the property, it will be necessary, prior to the district taking possession, for both the property owners and the former tenants to agree in writing that the property has been vacated and that they claim no further interest or occupancy rights in it. The district can prepare a letter, addressed to the department, for the owners and tenants to sign which clarifies this point. (If the owners were granted a salvage removal period, possession cannot be taken by the department until the possession period has expired or until the salvage has been removed, whichever occurs first).

Owners can, if they so desire, elect to surrender immediate possession of the subject property, in which case, they shall not be entitled to rental fees paid after the possession date and will not be responsible for building maintenance and repairs after that date.

(c) Tenants

Tenants will be responsible to the owners for rental fees due and payable during the owners' authorized possession period and to the department if they continue to occupy the property after the end of the owners' authorized possession period.

No tenant, or owner-occupant, may be forced by the department to vacate an improved property without being provided at least 90-days written notice of the required vacancy date. However, any displaced owner-occupant of a principal place of residence acquired by condemnation shall have one hundred (100) days possession from the date the commissioners’ report is filed with the court. If the property owners elect not to retain possession of the property for the 90-day possession period as discussed, the tenants will be advised in writing to submit their rental payments to the district office. Under this circumstance, an Extension of Possession Agreement will not be required to cover the period between the time the owners' possession terminates and the vacancy date set out in the tenants' 90-day vacancy notice but will be required if the tenants retain possession after the vacancy date specified in their 90-day vacancy notice. Transmit rental payments collected under this condition to the Right of Way Section and explain the circumstances involved.

Landlords normally have the right to require tenants to vacate right of way parcels during their authorized possession period. This action is strictly between the owners and tenants and department personnel must not become involved. Department personnel will not in any way be held responsible for actions taken by the landlord.

(d) Decent, Safe and Sanitary Residential Replacement Property Must Be Available

(1) Owner-Occupants and Tenants With 90 Days Prior Occupancy

Residential owner-occupants and residential tenants who were in occupancy of the dwelling unit from which they are being displaced for at least 90 consecutive days prior to the initiation of negotiations for the subject parcel must not be forced by the department to vacate until a comparable or better DS&S replacement unit is made available to them.

Every effort must be made to enable relocatees to select the option they desire in obtaining their replacement, however, relocatees cannot refuse to vacate the subject parcel if replacement housing that meets the previously discussed criterion is available to them even though they preferred to change their status from owners to tenants or vice versa.

(2) Owner-Occupants and Tenants With Less Than 90 Days Prior Occupancy and Subsequent Occupants

EPG 236.8.1.3(c)(2) and (3), and EPG 236.8.6.1(b), explain the department's obligation to provide replacement housing for residential subsequent occupants who were not in occupancy at the initiation of negotiations but who were in occupancy at the time the subject dwelling was acquired by the department.

These occupants cannot be forced to vacate by the department until the required replacement housing has been made available to them.

(3) Residential Occupants Who Are Not in Legal Occupancy of Subject

The department normally has no obligation to provide replacement housing for non-legal occupants of residential housing.

Advise the Right of Way Section when non-legal occupants are encountered.

(e) Evictions and Forced Vacancies

The Chief Counsels Office shall handle all evictions and actions required to force delivery of possession. When this need arises, contact the regional counsel, or if none is available, Chief Counsels Office.

(f) Partial Displacements

Possession policies discussed in the preceding paragraphs (a), (b), (c) and (e), also apply when partial displacements are involved. See the definition of "partial displacement" in EPG 236.8.1.3(e).

(g) Displacements Created by Landlocking Parcels

Owners and tenants who are displaced due to their improvements and/or personal property being located on land that is being landlocked due to an acquisition must be notified at least 90 days before their access is removed.

The applicable vacancy notices discussed in following EPG 236.8.14.2, can be used in providing the notice except that some of the wording must be changed to fit the situation.

236.8.14.2 Notice to Vacate

(a) General Information

All vacancy notices provided to relocatees by the department, with the exception of the advanced vacancy notice discussed in EPG 236.8.14.2(d)1(a), must give a specific vacancy date.

If vacancy dates are extended, the relocatees must be advised in writing. The relocatees' "Extension Notice" must provide a new vacancy date.

Vacancy notices are not required if occupants move of their own volition prior to the time the department issues 90-Day notices.

Only the vacancy notices provided herein are to be used and they must not be changed or altered except as specifically authorized in this section of the manual without prior approval by the Right of Way Section. All vacancy notices should be sent by certified mail or hand delivered.

The notices discussed in the following subparagraphs apply regardless of whether the displacement involves an individual, family, business, farm operation or nonprofit organization.

(b) Owners - Negotiated Settlements

Right of Way Escrow Agreements will be used in all cases when improved properties are acquired from owners through negotiated settlement. The displaced owners will execute the approved Escrow Agreement discussed in EPG 236.7.4.2 Escrow Agreements. It specifies that owners agree to vacate the subject property and deliver peaceable possession thereof to the department within a specified period.

When a right of way Escrow Agreement is used, the property owners must be advised by certified mail when their right of way payment is delivered to the escrow agent and the date that vacancy or possession is required.

When partial displacements are involved, and an escrow agent is not used, provide the owners with an RA Form 236.8.14.2(b) as soon as they receive the right of way payment.

NOTE: A review of the Negotiator's Report or, if used, the optional Acquisition Statement RA Form 236.8.5.8(b), will reveal whether or not an Escrow Agreement was used in the acquisition of the subject parcel.

(c) Tenants - Negotiated Settlements

(1) Total Displacements (RA Form 236.8.14.2(c)1)

RA Form 236.8.14.2(c)1 is to be used in providing vacancy notices to tenants who are totally displaced by an acquisition.

In the second paragraph show the mailing address of the subject right of way parcel regardless of whether it is urban or rural property.

The vacancy date will be the last day of the 90-day period discussed in EPG 236.8.14.1(a)1.

The vacancy notice must be mailed (certified) to the tenant immediately after the right of way consideration is paid to the property owners or to their Escrow Agent.

Retain a dated copy of the notice for the unit file.

(2) Partial Displacements

RA Form 236.8.14.2(b), which has been previously discussed in EPG 236.8.14.2(b), is also applicable for use when a tenant is involved in a partial displacement negotiated settlement.

In this case, the name of the property owners from whom the right of way was acquired must be inserted in the first space in the second paragraph of the form.

The form will be mailed (certified) to the tenant immediately after the owners or their Escrow Agent is paid the negotiated right of way consideration.

(d) Owner-Occupants and/or Tenants - Condemnation

(1) Total Displacements

(a) First Vacancy Notice – Owner-Occupants (not displaced from their principal place of residence)/Tenants (RA Form 236.8.14.2(d)1(a)))

Displaced owner-occupants (not displaced from their primary place of residence) and tenants who are totally displaced must be provided two separate vacancy notices when the property they occupy is being acquired through condemnation.

The first notice must be mailed (certified) to the Owner-Occupants (not displaced from their principal place of residence) tenants as soon as a condemnation petition covering the subject property has been filed in court.

RA Form 236.8.14.2(d)1(a) must be used in providing this first vacancy notice.

Address two copies of RA Form 236.8.14.2(d)1(a) to the property owners or tenants and mail the originals to the tenants.

(b) Final Vacancy Notice Owner-Occupants (not displaced from their principal place of residence)/Tenants (RA Form 236.8.14.2(d)1(b))

The final notice must be mailed (certified) to the Owner-Occupants (not displaced from their principal place of residence) and tenants as soon as the condemnation commissioners' award covering the subject property is paid into court.

The vacancy date to be quoted in this notice should normally be the 30th day after the anticipated date that the relocatees will receive the notice. The vacancy date in the "Final Vacancy Notice" should never be sooner than 90 days after the date that the "First Vacancy Notice" was provided to the relocatees. Follow the same steps discussed in preceding subparagraph (a) in providing this notice to the relocatees.

Should the property owners change their minds after the first notice was mailed and settle without the necessity of condemnation, the instructions and information previously provided relating to negotiated settlements will generally apply. However, since the owner has been provided a vacancy notice giving at least 90 days, the normal procedure of giving 90 days from the date of payment is not applicable. The Escrow Agreement should be modified to recite that the previous 90 days' notice is still in effect. A 30-day notice should be given when the right of way payment is delivered to the Escrow Agent. Should the settlement with the owner specify a full 90-day possession period, follow procedures outlined in normal negotiated settlements. This full 90-day period after payment would be considered an administrative settlement and normally require division approval. Prior to making this type of settlement, full consideration must be given to the letting date for the project.

If tenants are involved, they should be sent a vacancy notice (RA Form 236.8.14.2(c)(1)).

(c) Final (ONLY) Vacancy Notice – Condemnation-Owner Occupants - Displaced from primary place of residence (RA Form 236.8.14.2(d)1(c))

The final and only vacancy notice (Form 236.8.14.2(d)1(c)) must be mailed (certified) to the owner occupants as soon as the condemnation commissioners' report is filed with the court. This is the only vacancy notice that will need to be sent to an owner occupant displaced from their primary place of residence. This vacancy notice will allow the displacee 100 days of possession from the date the commissioner’s report is filed with the court.

(2) Partial Displacements

(a) First Vacancy Notice (RA Form 236.8.14.2(d)2(a))

Displaced owner-occupants, owners who are non-occupants and tenants who are involved in a partial displacement subject condemned must be provided two vacancy notices in the same manner as when a total displacement is involved as discussed in the two preceding subparagraphs. The instructions provided in those paragraphs therefore apply in this situation.

The first notice must be provided on RA Form 236.8.14.2(d)2(a).

(b) Final Vacancy Notice (RA Form 236.8.14.2(d)2(b))

This procedure and instructions provided in EPG 236.8.14.2(d)(1)(b) also apply in this situation except that RA Form 236.8.14.2(d)2(b) will be used in providing the final notice to the relocatees.

(c) Multi-Unit Buildings or Property

When multi-unit buildings or properties are involved, each separate individual and/or family must be provided separate vacancy notices.

(d) Multi-Occupancy - Same Single-Family Dwelling Unit

Send a separate vacancy notice to each separate individual and/or family involved.

(e) Non-Occupant Owners - Partial Displacements

It is possible for owners who do not actually reside on the subject to become involved in a partial displacement by owning personal property located thereon.

If a negotiated settlement is involved, follow the instructions provided in preceding EPG 236.8.14.2(b), and use the vacancy notice bearing the same number.

If condemnation is required to obtain the right of way parcel, follow the instructions provided in EPG 236.8.14.2(d)(2)(a), and (b).

(h) Displacement Necessitated Because Mobile Home Park Discontinued Due to Severity of Right of Way Acquisition (RA Form 236.8.15.4(h))

If the department agrees that the owners of a mobile home park are justified in discontinuing their entire mobile home park operation due to the severity of a right of way acquisition and if the owners have announced their intentions to discontinue the operation, their tenants who are located on the remainder should be provided a copy of RA Form 236.8.14.2(h) at the time routine vacancy notices are provided to the mobile home tenants who are located within the right of way acquisition. If any of the tenants involved have not been previously contacted concerning the Relocation Program, the notices should be delivered in person by the assigned Relocation Agent. The agent must explain the Relocation Program to the tenants involved and advise them (1) that they will not be eligible for relocation assistance and payments if the mobile home park is still in operation one year after the department takes possession of the portion of the park that was acquired as right of way, (2) that they should not move from the property prematurely, and (3) that no relocation payments will be made unless and until the mobile home park operation has been completely discontinued at the subject site and they have moved from the property.

236.8.15 Relocation Assistance Program - Appeals

236.8.15.1 Appeals of Offers and/or Ineligibility Decisions

The following actions are to be taken when relocatees are dissatisfied with the amount of any type of relocation offer or dissatisfied with a department decision that they are not eligible for a relocation payment.

Step 1: The relocation agent who made the offer, or who advised the relocatees of their ineligibility for payment, shall make a sincere effort to explain how the offer was computed and the facts on which it was based or why the relocatees are not eligible for a requested payment.

If the payment has been properly computed and supported, as discussed in the preceding sections, or if the original ineligibility decision was correct, based on specific requirements outlined in this manual, the relocation agent should be able to convince the relocatees that department offers and decisions are fair, reasonable and in compliance with approved state and federal relocation policies.

Step 2: If the relocatees do not accept the relocation agent's explanation and still express dissatisfaction, they should be reminded of their right to appeal the offer or ineligibility decision to the district Right of Way Manager for administrative review.

If they elect to do so, they must request the review in writing to the district office. No particular form is required in making this request, a simple letter will suffice. This request for review must be received within six months from the date the relocatee was notified in writing of ineligibility. After that date, no further appeal or administrative review action is available to the relocatee.

Step 3: Upon receipt of a request for administrative review the district Right of Way Manager shall review the records and documentation in the subject's unit file, discuss the original offer or ineligibility decision with the members of his/her staff who had a part in formulating it, inspect available replacement properties, when applicable, and take whatever additional action necessary to enable him or her to arrive at a decision concerning the accuracy of the subject offer or ineligibility decision.

If the district Right of Way Manager concludes that the original offer is fair, reasonable and adequately supported or, if applicable, that the ineligibility decision is well founded and correct, he or she shall notify the relocatees and explain his/her decision and the basis for it. If the amount of the relocation offer is in dispute, the district Right of Way Manager must explain to the relocatees that they still have the right to file a claim for the amount they feel is accurate after they qualify for the type payment involved; and that, if the claim is rejected, they shall have the right to file a formal appeal as discussed in the Relocation Brochure. If an ineligibility decision is involved, the relocatees can still file a claim and formally appeal its rejection. The district Right of Way Manager must prepare and sign a memo for the file explaining the actions taken in conducting the review, his or her decision and the reason upon which it was based.

If, however, the district Right of Way Manager concludes that the offer is not adequate, or that the ineligibility decision was in error, a memo shall be prepared for the file that explains the actions taken in conducting the review, the decision and the basis for it. If an offer is involved, which he or she finds was inadequate, it must be recomputed. The new offer computations must be attached to and made a part of the (district Right of Way Managers) memo, together with whatever other documentation is necessary to justify the revised offer and the necessity for it.

The original relocation agent should re-contact the relocatees unless a conflict of personalities is involved between the agent and relocatees. If so, another relocation agent can be assigned or the district Right of Way Manager can make the contact and make the new offer or advise them of the change in their eligibility status. Revised offers must be in writing.

Should the relocatees still not be satisfied with the revised offer, they should be reminded of their right to claim the amount they feel is correct and formally appeal if the claim is rejected.

NOTE: Relocatees who are reminded of their right to file a formal appeal, as required in the preceding paragraphs, should be advised that the Appeal Board is not bound by previous relocation offers and that the Board's findings, after considering all evidence presented by both the relocatees and the Missouri Department of Transportation, could result in reduced relocation payments.

236.8.15.2 Notice of Claim Rejection (RA Form 236.8.15.2)

Claims which are not in dispute, but which cannot be currently approved because they have been submitted prior to the time the relocatee has met the necessary payment eligibility requirements, can be held in abeyance in the district office until the requirements have been complied with and then processed for payment. Claims of this type should not be rejected and the instructions in this section do not apply. The claimant, in this type situation, should be advised by letter that the claim is being held in abeyance and why.

Claims for disputed and/or unacceptable RHP which are submitted before the department has acquired the subject property must also be held in abeyance and neither approved or rejected until such property has been acquired. The claimants in this situation should be advised by letter that their claim is being held in abeyance and why, because the claim cannot be approved for payment until the subject property has been acquired.

In every instance when a claim containing an amount that is unacceptable or one received from an ineligible relocatee is rejected, a Form RA 236.8.15.2 (Notice of Claim Rejection) must be prepared and delivered to the relocatees. This action should be taken within ten days after receipt of the claim, or when a premature disputed claim is involved, as discussed above, within ten days after the subject has been acquired by the department.

If an administrative review has been previously conducted regarding the subject claim, the RA Form 236.8.15.2 can be mailed to the relocatees using certified mail with return receipt requested.

If an administrative review has not been conducted, the assigned relocation agent shall deliver RA Form 236.8.15.2 in person, if possible, to explain the reason for the claim rejection. If not possible, it can be forwarded by certified mail.

The date that the "Notice of Claim Rejection" (RA Form 236.8.15.2) is presented to the claimant is critical as the 60-day period for filing a request for a formal appeal hearing begins at the time the notice is delivered. To establish an exact record of this action, the Relocation Agent who delivers the notice to the claimant, if it is hand delivered, must note on the bottom of the file copy the date, hour, place and to whom it was delivered. If the notice was mailed to the claimant, attach a copy of the delivery receipt to the file copy of the form.

If mathematical errors, omissions or other simple mistakes are noted in the claim, merely return it to the claimant for correction without the use of an RA Form 236.8.15.2.

If a claim is rejected because the relocatees moved to non DS&S replacement housing, the Notice of Claim Rejection should advise that they can resubmit a claim if they move to and occupy a dwelling unit that meets DS&S standards or, if they correct the DS&S deficiencies in their existing replacement dwelling within the one-year time period allowed for purchasing/renting DS&S replacement housing.

236.8.15.3 Appeals of Claims

(a) Preparation and Submission of Disputed Claims

In all cases a written claim must be filed by the relocatee and rejected by the department before a formal appeal is in order.

When relocatees desire to file claims for amounts that cannot be justified by the district, they must be permitted to do so and encouraged to use the applicable department claim form even though it is obvious that the claim will be rejected.

If the dispute concerns the relocatees' eligibility for payment, the payment amount may or may not have been computed by the department depending on the circumstances. If the amount that would have been due, had the relocatees been eligible for payment, has been computed, a department claim form can be completed and filed by the relocatees in the routine manner. If the amount has not been computed by the department because the relocatees were ineligible, all portions of the claim form must be completed in the routine manner except the portion related to payment computations. This portion of the form "should" be marked "void" and the following notation made therein: "See attached sheet showing relocatees' payment computations." The relocatees "should" attach a sheet to the claim which explains how they arrived at the amount they are claiming. Relocatees cannot be forced to attach a computation sheet and/or explanation if they elect not to do so.

If relocatees refuse to use a department claim form, they can submit a written claim in any manner they desire and the rejection thereof by the department will place them in position to file a formal appeal. Claims cannot be approved for payment unless they are submitted on the department's standard relocation claim forms.

(b) Request for Appeal Hearing (RA Form 236.8.15.3)

Any person dissatisfied by the rejection of a relocation payment claim has the right to file a written request for an appeal hearing with the district office in which the rejection occurred within 60 days after having been advised of the claim rejection. Submission of a relocation claim by a relocatee and payment thereof by the department prohibits either party from later disputing the amount of such payment and from appealing any decision related to the payment involved.

Request for appeal hearings should be on a form furnished by the department for the purpose of the appeal (RA Form 236.8.15.3, Request for Appeal Hearing), but any notice in writing received by said district office indicating the nature of the complaint and desire for appeal shall be considered a valid notice.

RA Form 236.8.15.3 is to be provided by the department for use by dissatisfied claimants in filing requests for appeal hearings. The form is considered to be self-explanatory. Be sure that an address to which notice of hearing is to be sent is provided by the claimant.

Copies of all completed and executed "Requests for Appeal Hearings," received in the district office are to be forwarded immediately to the Right of Way Section. The Right of Way Section will provide the Chief Counsel a copy of the relocatees' rejected claim, a copy of the appropriate Notice of Claim Rejection and a copy of the postal return receipt showing when the Notice of Claim Rejection was received by the relocatee.

Should a request be received in the district office more than 60 days after the claimant had been notified that his/her claim was rejected, forward copies to the Right of Way Section with a letter of transmittal specifically pointing out the fact that it was received after the 60 day deadline.

(c) Hearing

Upon receipt of a copy of a "Request for Appeal Hearing" the Chief Counsel will designate an assistant counsel to hear the cause. Designated assistants shall notify the appellant by appropriate notice through registered or certified mail of the time and place fixed for the hearing which shall be reasonably convenient to claimant. The hearing examiner shall also notify the appropriate personnel in the Missouri Department of Transportation of the hearing. At the appointed time, the hearing will be called and conducted, in general, in accordance with Section 536.070, RSMo 1959. In the event the claimant or appellant does not appear after a delay of 30 minutes from the appointed time, the department will proceed with its evidence concerning the issues involved.

If the claimants or their attorney request a continuance, the hearing examiner shall grant the same upon reasonable grounds to a day certain at which all parties will appear without further notice.

A record must be made of all proceedings either by a recording device or by a qualified reporter. The hearing examiner shall use facilities or qualified personnel of the Missouri Department of Transportation for the transcription of proceedings, if available, but otherwise may employ qualified reporters.

The hearing shall continue from day to day or as continued by the hearing examiner until all evidence is introduced.

(d) Preparation of Evidence

It is the district's responsibility to assemble adequate evidence to prove during the appeal hearing that the department's decision is correct.

NOTE: Relocatees who are not satisfied with the Appeal Board's decision can further appeal to the courts for final determination. Should this occur the courts will base their decisions solely on the "Transcript of Evidence" which is the written record of the testimony and evidence presented by both sides at the appeal hearing. It is therefore imperative that department personnel present a thorough and complete case during the appeal hearing and thereby perfect a conclusive record to prove that the department's determination was correct and well-founded. Photographs of the subject property and potential replacement properties should be made a part of the transcript when applicable.

NOTE: The department must permit a relocatee to inspect and copy all materials pertinent to his/her appeal except materials that are classified as confidential. The department can, however, impose reasonable conditions on the relocatees right to inspect and copy district records. Seek advice from the Right of Way Section when relocatees request permission to inspect and/or copy relocation records.

(e) Transcript of Evidence

If employees of the department are available and are used to transcribe testimony, the department will furnish to the appellant one copy of the transcript of proceedings without charge. If a reporter is employed, the claimant or appellant must make his/her own arrangements for a copy of the transcript including the expense thereof. All exhibits will be reproduced, if possible, through the use of facilities of the department by direction of the hearing examiner, in the interest of economy. The hearing examiner will cause to be reproduced four copies of the transcript - one shall be retained by him/her and three copies shall be forwarded to the central office at Jefferson City for use of the Appeal Board. The Appeal Board shall forward at least one copy to the Secretary to the Commission for a permanent record after the final order of the Appeal Board together with such order.

(f) Subpoenas

The hearing examiner shall, upon request of the claimant or his/her counsel or counsel for the Missouri Highways and Transportation Commission, issue subpoenas as authorized by Section 536.077, RSMo. 1959. A witness shall be entitled to tender of fees for travel and time as in civil cases, and enforcement of subpoenas shall be through application to a judge of the circuit court in the county in which the hearing is to be conducted or the circuit judge of the county in which the witness may be found. All requests for subpoenas shall be forwarded to the hearing examiner so that they may be issued by him/her and returned to the party involved for service at least 48 hours prior to the time fixed for the hearing. The responsibility for service of the subpoenas shall be that of the party requesting the issuance.

(g) Proposed Order of Hearing Examiner

The hearing examiner shall promptly after receiving the transcript and in any event within 30 days transmit his/her recommendations for proper order in the cause, together with supporting excerpts from the transcript and citations as to any applicable law, to the Appeal Board that shall promptly be convened to determine the cause.

(h) Appeal Board

Final authority, within the department, to hear and determine the cause involved shall be vested in an Appeal Board which shall consist of the Chief Engineer or a designated assistant, the Chief Counsel or a designated assistant, and the Asst. to the State Design Engineer - Right of Way or a designated assistant. The Chief Engineer or their representative shall serve as Chairperson of the Appeal Board. Each member shall have one vote. In the event the board shall, for cause, determine that additional evidence is necessary, it shall advise the parties and set a time for hearing same in the Missouri Highways and Transportation Commission Building at Jefferson City, Missouri, after at least five-day notice to the parties. Each member of the Board shall read the transcript or the recommended order of the hearing examiner and excerpts from the record and briefs or arguments submitted by the parties. The Appeal Board may thereupon adopt the recommendation of the hearing examiner as the final order or may, by majority vote, enter its own order. The Chairperson of the Appeal Board shall immediately thereafter forward to the parties involved to the claimant at his/her address as reflected by the transcript and to his/her counsel at his address as reflected by the transcript, a copy of the order entered by said Appeal Board, the original order being filed with the Secretary to the Commission.

(i) Payment Procedure

The Financial Services Division is directed to pay the amounts fixed by order of the Appeal Board or court when applicable in the same manner as judgments of courts of record are paid in right of way acquisition. Payments for transcripts or for reproduction of exhibits shall be charged as incidental costs.

236.8.16 Relocation Assistance Program - Functional Replacement

236.8.16.1 Functional Replacement

MoDOT can incur costs for the functional replacement of real property in public ownership. The Functional Replacement program really amounts to an administrative settlement where recognition is given to the situation where cash compensation may be insufficient to restore the status quo as the result of acquiring a public facility such as a school, police or fire station, or local park. In a sense it is similar to a Last Resort Housing concept but is applied to publicly owned properties.

Functional Replacement is defined as the replacement of real property, either lands or facilities, or both, acquired as a result of a highway or highway related project with lands or facilities, or both, which will provide equivalent utility.

Functional Replacement is eligible for federal participation. The following procedure guidance will address the process for completing functional replacement actions with and without federal participation in the cost of the functional replacement.

For application of this policy it is necessary that:

1. The property to be functionally replaced is in public ownership.

2. The Asst. to the State Design Engineer - Right of Way has concurred that functional replacement is in the best public interest, and has granted authorization to proceed on such basis prior to incurrence of costs.

3. The functional replacement actually takes place and the costs of replacement are actually incurred.

4. Replacement sites and construction are in compliance with existing codes, laws and zoning regulations for the area in which the facility is located.

5. The replacement facility will be in public ownership and will continue the public use function of the acquired facility.

6. The FHWA concurs in the MoDOT determination that functional replacement is in the public interest.

7. The real property is not owned by a utility or railroad.

8. MoDOT has informed the agency owning the property of its right to an estimate of just compensation based on an appraisal of fair market value and of the option to choose either just compensation or functional replacement.

State and Federal funds have limits upon participation in functional replacement costs on the following basis:

1. The actual functional replacement cost of the facilities required to be replaced, and

2. The appraised current fair market value of the land to be acquired when the owning agency has land on which to relocate the facilities, or the reasonable costs of acquiring a functionally equivalent substitute site where lands in the same public ownership are not available or suitable.

Costs of increases in capacity and other betterments are not eligible for payment under this procedure, except those necessary to replace utility; those required by existing codes, laws, and zoning regulations; and those related to reasonable prevailing standards for the type of facility being replaced.

Procedures

During the early stages of project development MoDOT officials should meet with the owning agency to discuss the effect of a possible acquisition and potential application of functional replacement procedures. The results of discussions and decisions concerning functional replacement should be included in negative declarations and environmental impact and section 4(f) statements if required on a project. The importance of early coordination with the owning agency cannot be overstressed.

Stage #1: MoDOT/FHWA Preliminary Approval of District Functional Replacement Request

If the owning agency desires functional replacement, it should initiate a formal request to MoDOT (the district Right of Way Manager). The owning agency’s request should include an explanation of the basis for its request and cost estimate data relative to contemplated solutions. The district Right of Way Manager should forward the request to the Asst. to the State Design Engineer - Right of Way along with a recommendation.

If the Asst. to the State Design Engineer - Right of Way agrees that functional replacement is necessary and in the public interest, and State only funds are being utilized, the district will be authorized to proceed with the acquisition of a replacement site if replacement site land in the same public ownership is not available. The district should at this time also authorize the owning agency to proceed with the development of detailed plans, specifications, and estimates and together with the owning agency formulate a final draft functional replacement agreement to be executed by the project sponsor and owning agency. The agreement must include the following:

1. Language that sets forth the rights, obligations and duties of each party with regard to the facility being acquired, the acquisition of the replacement site, and the construction of the replacement facility.

2. Language that specifies that if replacement site land in the same public ownership is not available, the project sponsor agency (MoDOT/LPA) will acquire a replacement site in accordance with the Uniform Act.

3. Language that sets forth how the costs of the new facility are to be shared between the parties.

4. Provisions for the project sponsor’s inspection during construction of the replacement facility.

5. Language that authorizes payment of funds for construction of improvements into an escrow account and specify that progress payments will be made during the course of construction upon presentation of invoices, and a statement signed by an appropriate official for the owning agency that certifies the costs have actually been incurred.

6. Where major improvements are involved, language that specifies the procedures to be used for advertising for bids and letting of contract to construct the replacement facility. The owning agency may follow the general procedures utilized by the owning agency, if accepted by MoDOT.

In all funding cases, the final draft of the functional replacement agreement will need to be reviewed and approved by Chief Counsels Office prior to its execution.

In the case of federal participation in the actual cost of the functional replacement, the Asst. to the State Design Engineer - Right of Way must submit a request for FHWA concurrence. This request should include:

1. an explanation of the basis for request

2. cost estimate data relative to contemplated solutions

3. documentation of preliminary agreements reached at meetings between the project sponsor and the owning agency

4. statement that replacement property will be acquired in accordance with provisions of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended.

The Asst. to the State Design Engineer - Right of Way will not authorize the district to proceed with the functional replacement until the Right of Way Section has received FHWA’s concurrence in the functional replacement.

Following the District’s receipt of the Right of Way Section’s authorization to proceed, the project sponsor must complete a detailed analysis (separate from appraisal) of the existing public facility for the information’s later use in effectively completing a comparison of the proposed functional replacement structure with the existing facility.

Stage #2: MoDOT /FHWA Authorization to Construct Replacement Facility

The district must submit the owning agency’s final plans, specifications, and estimates (PS&E) to the Right of Way Section for review and approval prior to the district authorizing the owning agency advertising for contractor bid proposals to construct the replacement facility. Betterments should be identified and accounted for separately. MoDOT will review the plans and validate the division between functional replacement and betterments. The owning agency is responsible for providing support documentation when proposing MoDOT or Federal funds to participate in cost of qualifying betterments. The PS&E submittal must also include an executable (State funds only) or executed (Federal participation) functional replacement agreement between the project sponsor and the owning agency.

In cases when there is no federal participation in the functional replacement, following the Right of Way Section’s review and approval of the PS&E and functional replacement agreement, the district shall authorize the public entity to advertise and let the project to construct the replacement facility.

In cases when there is federal participation in the actual cost of the functional replacement, the Right of Way Section must submit a request for construction authorization to Federal Highway Administration for their review and approval. This request must include a MoDOT approved:

1. Executed written agreement between the project sponsor and the owning agency.

2. Copy of plans, specifications, and estimates (PS&E).

3. Statement identifying the procedures that owning agency will use to advertise for bids and let the contract.

4. In most cases the Right of Way Section will be submitting a request to modify the originally approved right of way authorization for the purpose of including the functional replacement action.

A representative of the project sponsor agency (MoDOT/LPA) will be responsible for doing an on-site inspection and approving each invoice for payment by the escrow company.

Stage #3: Closeout of Functional Replacement Acquisition:

A certification statement that includes the following assurances will need to be signed by the project sponsor and the owning agency at the time of the owning agency’s request for final payment:

1. That the cost of replacement facility has actually been incurred in accordance with the provisions of the executed functional replacement agreement.

2. That the project sponsor and owning agency made a final inspection of the facility and that the project sponsor is released from any further responsibility.

@@ Line 2,213: / Line 2,213: @@
 Moving Cost Agreement Form 236.8.6.11(d), is applicable when moving cost bids or estimates (whichever is required for the type of move involved) are not available due to the complexity of the move, either a partial or total displacement.
-Instructions for completing agreement [https://epg.modot.org/forms/RW/Chapter%208_Relocation/Moving%20Cost%20Agreement%20Commercial%20Actual%20Cost%20Residential%20Form%20236.8.6.11.A.docx Form 236.8.6.11(a)], as provided in [[236.8 Relocation Assistance Program#236.8.6.11 Moving Cost Agreements|EPG 236.8.6.11(a)]], also apply to this moving cost agreement.
+Instructions for completing agreement [https://epg.modot.org/forms/RW/Chapter%208_Relocation/Moving%20Cost%20Agreement%20Commercial%20Actual%20Cost%20Residential%20Form%20236.8.6.11.A.pdf Form 236.8.6.11(a)], as provided in [[236.8 Relocation Assistance Program#236.8.6.11 Moving Cost Agreements|EPG 236.8.6.11(a)]], also apply to this moving cost agreement.
 If required bids or estimates can be obtained for moving a portion of the items of personal property involved, but not for all of the items to be moved, use two separate agreements (Agreement [https://epg.modot.org/forms/RW/Chapter%208_Relocation/Moving%20Cost%20Agreement%20Actual%20Cost%20Commercial%20Mover%20Bids%20Form%20236.8.6.11.B.pdf RA Form 236.8.6.11(b)], or [https://epg.modot.org/forms/RW/Chapter%208_Relocation/Moving%20Cost%20Agreement%20Actual%20Cost%20Self%20Move%20Form%20236.8.6.11.C.docx Form 236.8.6.11(c)], whichever is applicable, covering items included in moving cost bids or estimates and [https://epg.modot.org/forms/RW/Chapter%208_Relocation/Moving%20Cost%20Agreement%20Actual%20Bids%20Not%20Avail%20From%20236.8.6.11.D.pdf RA Form 236.8.6.11(d)], covering items not included in the bids or estimates.)  A combination commercial and self-move, with or without cost bids or estimates, can also be approved by using separate appropriate agreement forms covering the different types of moves and/or situations involved.