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Moving and Related Expenses

Pursuant to 42 USCS § 4622, whenever a program or project to be undertaken by a displacing agency shall result in the displacement of any person, the head of the displacing agency shall provide for the payment to the displaced person of:

  • actual reasonable expenses in moving himself, his family, business, farm operation, or other personal property;
  • actual direct losses of tangible personal property as a result of moving or discontinuing a business or farm operation, but not to exceed an amount equal to the reasonable expenses that would have been required to relocate such property, as determined by the head of the agency;
  • actual reasonable expenses in searching for a replacement business or farm; and
  • actual reasonable expenses necessary to reestablish a displaced farm, nonprofit organization, or small business at its new site, but not to exceed $ 10,000.

Any person who is eligible for payments due to his displacement from a dwelling and who elects to accept the payments so authorized may receive an expense and dislocation allowance, which shall be determined according to a schedule established by the head of the lead agency.

Similarly, any person eligible for payments and who is displaced from his/her place of business or farm operation and who is eligible under the criteria established by the head of the lead agency may elect to accept the payment so authorized.  Such payment shall be a fixed payment in an amount to be determined according to the head of the lead agency and such amount shall not be less than $1,000 and not more than $20,000.  However, a person, whose sole business at the displacement dwelling is the rental of such property to others, does not qualify under this category.

The displacing agency shall in accordance with such regulations as the head of the lead agency may issue, provide a relocation payment that shall not exceed the amount of such extraordinary costs in the following cases:

  • If a program or project that is undertaken by a displacing agency, the purpose of which is not to relocate or reconstruct any utility facility, results in relocation of a utility facility;
  • If the owner of the utility facility that is relocated under such program  has entered into, with the State or local government on whose property, easement, or right-of –way such facility is located, a franchise or similar agreement with respect to the use of such property, easement, or right-of-way; and
  • If the relocation of such facility results in such owner incurring an extraordinary cost in relation to such relocation.

Notwithstanding any other law, the head of a federal agency may not approve any grant to, contract or agreement with, any agency other than a federal agency under which a financial assistance is available to pay all or part of the cost of any program or project that shall result in the displacement of any person, unless the agency head receives satisfactory assurances from the displacing agency that:

  • fair and reasonable relocation payments and assistance shall be provided for the displaced persons;
  • relocation assistance advisory programs will be provided to such displaced persons; and
  • within a reasonable period of time prior to displacement, comparable replacement dwellings will be available to displaced persons.

Inside Moving and Related Expenses