3.12.1 Relocation-General

A. Substantial rehabilitation of occupied properties pursuant to Section 220, 221(d)(4), and 231 and acquisition or refinancing of a property pursuant to Section 223(f) with repairs and alterations may result in permanent displacement or temporary relocation of tenants. When tenants of housing are permanently displaced or temporarily relocated, owners and Lenders must address relocation with a relocation plan.

B. Statutes, regulations, and guidebooks provide specific requirements and instructions for managing the permanent displacement and temporary relocation of tenants in projects receiving federal financial assistance as referenced in Section 3.12.2 below. HUD mortgage insurance as well as LIHTC are not forms of federal financial assistance for purposes of the Uniform Relocation Assistance and Real Property Acquisition Act of 1970, as amended (42 U.S.C. 5601 et. seq.) (URA) and use of either or both of these two federal programs does not trigger the URA.

C. Section 104(d) of the Housing and Community Development Act of 1974 applies only to properties with HOME Investment Partnership Program (HOME) or Community Development Block Grant (CDBG) funding and prescribes requirements when relocation is necessary at a property receiving assistance from these sources.

D. However, even when neither of the statutes described in paragraphs B and C above apply, mortgage insurance programs financing rehabilitation or renovation activities that displace residents require the preparation and implementation of a plan for temporary relocation consistent with Section 3.12.3 below.

E. When construction is proposed at an occupied property, Lenders must assure that relocation needs are identified, and appropriate plans described and implemented consistent with either 3.12.B. or 3.12.C, as applicable and with Appendix 3, Section A.3.5. Notwithstanding whether an application concerns housing with federal financial assistance or using HOME or CDBG funds, relocation plans must address certain common concerns. These include the following:

1. Special expertise is required. A relocation consultant should be retained to assist in preparing a relocation plan, including preparation of appropriate notices or letters to tenants, identifying units and tenants who will be displaced, and assessing specific needs of displaced tenants whose health, age, or physical condition does not permit exposure to anticipated construction activity or temporary hazards arising from such activity (e.g. dust, chemicals, noise, obstructed access, etc.) even if the activity does not occur in the dwelling unit occupied by the tenant or tenants for whom special assistance may be necessary to manage activities of daily living outside their unit.

MAP Guide, March 2021 Go to beginning of Chapter 3

Bookmarked Version Go to Acronym and Abbreviation List, Glossary, Index

Chapter 3 Page 3-41

To return to this page after clicking a link, press ALT + Back Arrow

Chapter 3 Programs 3.12 Tenant Relocation

Go to Table of Contents

2. The relocation plan must detail the schedule of proposed repairs to specifically identify the buildings and units where construction activities will cause displacement, including the names of occupants by unit number as well as the expected date displacement will occur and its likely duration.

3. Based on these expectations, the relocation consultant should describe how tenant relocation will be implemented including addressing unique or special needs of tenants, estimating the costs of relocation associated with each household displaced, and aggregating such costs by month consistent with a monthly draw schedule for relocation costs during construction.

4. The relocation plan should describe the tenant relocation expenses that will be paid and/or the services or facilities that the owner will provide and the means, method, and timeline for such payments or provision of services or facilities.

5. The relocation plan should provide the text and timing of notices or letters that will be provided to tenants and the frequency and method for visiting with and/or informing tenants of the expected cause and timing of displacement, the expenses that will be paid and the services that will be provided, the methods for affected tenants to respond, and who tenants may contact to address questions or problems.

6. The relocation plan must identify whether there is any federal financial assistance involved in the project. If yes, then Section 3.12.2 applies and either or both the URA or Section 104(d) of the Housing and Community Development Act of 1974 (42 U.S.C Section 5304(d)) (Section 104(d)) also apply. The relocation plan must adhere to these specific statutory and regulatory requirements and clearly show how these requirements are met.