TN 59 (03-94)

SI 00830.655 Relocation Assistance

Citations:

42 U.S.C. 4636; Social Security Act - Section 1612(b)(18) ;

20 CFR 416.1124(b)

A. Kinds of Relocation Assistance

Relocation assistance is provided to persons displaced by projects which acquire real property. The following types of reimbursement, allowances, and help are provided:

  • moving expenses;

  • reimbursement for losses of tangible property;

  • expenses of looking for a business or farm;

  • displacement allowances;

  • amounts required to replace a dwelling which exceed the agency's acquisition cost for the prior dwelling;

  • compensation for increased interest costs and other debt service costs of replacement dwelling (if it is encumbered by a mortgage);

  • expenses for closing costs (but not prepaid expenses) on replacement dwelling (if it is encumbered by a mortgage);

  • rental expenses for displaced tenants;

  • amounts for downpayments on replacement housing for tenants who decide to buy;

  • mortgage insurance through Federal programs with waiver of requirements of age, physical condition, personal characteristics, etc., which borrowers must usually meet; and

  • direct provision of replacement housing (as a last resort).

B. Policy - Federal or Federally - Assisted Project

1. Exclusion

Relocation assistance provided under title II of the Uniform Relocation Assistance and Real Property Acquisitions Policies Act of 1970 (subchapter II, chapter 61, title 42 of the U.S. Code) is excluded from income.

2. Applicability

This exclusion applies to relocation assistance provided to persons displaced by any Federal or federally-assisted project. Any Federal assistance is sufficient to bring into play the Federal statutes controlling acquisition of real property, requiring that relocation assistance be available and excluded from income.

3. Exception: Revenue Sharing

If the only Federal assistance is revenue sharing, this exclusion does not apply, since such funds are considered to belong to the governmental unit which received them from the Federal Government. However, the exclusion in C. below may apply.

C. Policy - State, Local, or State - Assisted /Locally - Assisted Project

1. Exclusion

Relocation assistance provided by a State or local government or through a State-assisted or locally-assisted project, which is the same type of assistance described in A. above (i.e., comparable to relocation assistance provided under the statute shown in B.1. above) is excluded from income.

2. Applicability

This exclusion applies to relocation assistance provided by persons displaced by any State, local, or State-assisted/locally-assisted project.

D. Procedure

Verify that the project which displaces the individual has governmental involvement. This can be done by using documents in the individual's possession, contacting the provider or entity involved in the project, or using a precedent. Once verified, obtain the individual's statement either sign