URA Guidelines

Initiation of Negotiations (ION)

Date of Initiation of Negotiations (ION) for HUD Programs (with Regulatory Citations) HUD Handbook 1378

HUD’s Handbook 1378 contains detailed information regarding Uniform Relocation Act requirements including:

• Eligible nonresidential displaced persons (businesses, farms and nonprofit organizations) are entitled to relocation advisory services and payments under the Uniform Act (URA)
• The ION date is the trigger for issuance of the Notice of Eligibility for Relocation Assistance or Notice of Non-displacement. After ION, any applicant who seeks to rent in the project must be issued a Move-in Notice before executing a lease; otherwise, the project will incur liability for relocation costs if the applicants are found to be eligible as displaced persons.
• Whenever the displacement occurs as a direct result of rehabilitation, demolition or acquisition of the real property, the "ION" means the notice to the person explaining that he or she will be displaced, or, if there is no such notice, the actual move date of the person;
• If the agency issues a notice of its intent to acquire the real property and a person moves after that notice but before delivery of the initial written purchase offer, the "ION" means the actual move date of the person from the property.

Written Notice Requirements

General Information Notice

The General Information Notice must contain the following:

• Informs person/ business of possible displacement as a result of the project,
• generally describes the payments for which person/business may be eligible including eligibility requirements and procedures for obtaining services and payments,
• Assures person/business that advisory services will be given including referrals to replacement properties as well as other assistance,
• Informs person/business that at least one comparable replacement dwelling will be made available before they are required to move,
• Informs person/business that at least 90 days advance written notice will be given before they are required to move, and
• Explains the right to appeal if they do not agree with the agency's determination regarding eligibility and assistance provided.

Notice of Relocation Eligibility

Persons or businesses to be displaced must be notified promptly of their eligibility for benefits. Since their eligibility begins on the date negotiations are initiated for the property acquisition, this notification should be given on the same day or as soon as possible thereafter.

Caution: Eligibility for relocation assistance may also be triggered in the event a person moves after the Notice of Intent to Acquire has been issued, but before negotiations are initiated.

Notice of Nondisplacement

Persons not to be displaced must be provided a notice explaining the reasonable terms and conditions under which they may lease and occupy the property upon completion of the acquisition or rehabilitation. It is important that this notice be provided as soon as possible.

90-Day Notice

An occupant cannot be required to move unless they have received a written notice, at least 90 days in advance, of the date they may be required to move. A comparable replacement dwelling must be made available at least 90 days prior to the specified vacate date. In unusual circumstances, an occupant may be required to vacate the property with less than 90 days advance written notice if the agency determines that continued occupancy would constitute danger to the person's health or safety. If applicable, a copy of the agency's determination shall be included in the case file. Special attention should be provided to low-income and minority groups to ensure that they receive the protections required under the Civil Rights Act. In fact, the local relocation agency cannot require a low income or minority to vacate his/her present residence unless he/she has been given opportunities to relocate in comparable housing that is not located in an area of low-income and/or minority concentration, if such opportunities are available.

Comparable Replacement Dwelling

The agency is required to inform a displaced person in writing of the specific comparable replacement dwelling used in making the determination including location, the price or rent used for establishing the upper limit of replacement payment and the basis for the determination. If possible, at least 3 comparable units should be made available. Eligibility for payment of moving expenses can be included in this letter.

Relocation Payments

Persons relocated as a result of CDBG project activities are eligible for two types of relocation payments, i.e., moving expenses and perhaps a replacement housing payment.

The type of replacement housing payment depends on whether the housing unit was tenant or owner occupied.  Replacement housing payments are in the form of a rent differential or down payment assistance for relocatees who were tenant-occupants, or cost and interest differential if the displaced persons were owner-occupants.  Moving expenses can be based on actual expenses which may consist of:

• transportation of displaced person and personal property (within a 50 mile radius).
• packing, crating, uncrating and unpacking of personal property.
• storage of personal property not to exceed 12 months unless the agency determines it necessary.
• disconnecting, dismantling, removing, reassembling, and reinstalling relocated household appliances and other personal property.
• insurance for replacement value of property in connection with the move and necessary storage.
• replacement value of property lost, stolen, or damaged in the process of moving (not if through negligence on part of displaced person),other moving related expenses as agency determines reasonable except: interest on loan to cover moving expenses, personal injury, legal fee or cost for preparing claim for relocation payment, cost of moving any structure or other real property improvement in which the displaced person reserved ownership, costs for storage of personal property leased by displaced person before initiation of negotiations.

As an alternative to payment for "actual" moving and related expenses, a person displaced from a dwelling is entitled to receive a "fixed" expense and dislocation allowance. After being appropriately notified of both "actual" and "fixed" payment options, the person being displaced is to decide which option to take.

Multiple Occupants

When a property is occupied by two or more people, regardless of whether they are members of the same family, the relocation assistance must be divided among the parties on a pro-rated basis proportionate with each persons' share of the moving and relocation expenses if they are moving to separate locations.

Relocation Assistance is Not Taxable Income

Persons required to vacate property should be informed that the relocation assistance payments are not considered to be income for purposes of calculating liability under either the Internal Revenue Code or the Social Security Act.

Last Resort Replacement Housing

If an instance arises where the relocation specialist has been unable to identify comparable and affordable replacement housing, the agency may take the following extraordinary actions to provide replacement units for displaced persons:

• The agency can rehabilitate an existing structure with project funds to bring it up to conditions that would make it affordable and comparable.
• The agency can construct new housing with project funds to meet relocation requirements.
• The agency can exceed the maximum payments provided for in the URA.

In any of the above instances, efforts to identify comparable and affordable housing that is decent, safe, and sanitary must be documented as well as the process by which a determination was made to take one of the above listed actions.

Appeals

Displaced persons may appeal relocation action with the grantee if he/she feels:

• that determination of eligibility or amount of payment was erroneous;
• that the grantee did not provide sufficient relocation services including replacement housing referrals; or
• that the grantee failed to comply with any requirement (e.g., notices) of the URA.

The appeal must be filed within six months of the initial Notice of Eligibility and the grantee must make a determination within 30 days of receiving all materials submitted by the person making the appeal.

Waiver of Relocation Assistance Payment

In the unlikely case that an individual declines to accept relocation assistance payment offered by the local agency, evidence of the person's decision should be included in the case file. This refusal should be in writing.