12.12.4 Compliance with Any Applicable Relocation Plan

A. See Appendix 3, Section A.3.5. If existing tenants are displaced by rehabilitation or repairs and alterations, a relocation plan should be in place and the Borrower must be executing the plan. If the Lender, the HUD inspector or the HUD CA observe relocation of existing tenants where no relocation plan is in place or observe an unmet need to relocate tenants, the Regional Production Director must be immediately advised and the Borrower required to cease any construction activity that requires or should require the Borrower to relocate tenants. If the project is subject to the Uniform Relocation Act or Section 104(d) of the Housing and Community Development Act of 1974, the HUD CA should promptly seek the assistance of the HUD Regional Relocation Specialist. Otherwise the HUD CA should advise the Lender and the Borrower that the HUD approved relocation plan must be followed, or if no such plan is approved, then a relocation plan consistent with Appendix 3, Section A.3.5 must be prepared, approved by HUD and implemented before any further construction that requires relocation may proceed.