3.12.3 Projects with No Federal Assistance

A. Displacement of tenants from properties that do not receive federal financial assistance and have no HOME or CDBG funding also requires planning and preparation to assure:

1. Timely completion of construction;

2. Resident health and safety; and

3. Sustained project occupancy and income.

B. Displacement in existing and occupied properties occurs when construction activity prevents tenants from preparing two or more consecutive meals or sleeping in their units during their normal period of rest or otherwise prevents occupancy of their units for 8 consecutive hours. (Persons with special needs and/or frail elderly are considered displaced if they are obligated to vacate their units for any period of time.) Owners must offer displaced tenants temporary relocation assistance. In general, temporary relocation will be required when the scope of work will result in any of the following:

1. Requires packing, moving, or storing resident’s furniture or personal items in order to perform the work;

2. Prevents full use of the kitchen or the bathroom(s) by the resident (e.g. replacing the kitchen cabinets and countertops, tub surrounds and plumbing fixtures, flooring replacement);

3. Creates odors, dust, debris, noise, or other hazard that negatively impacts the sanitary condition of the unit or health and safety of the resident;

4. Involves shutting down the heating, ventilation, and air conditioning (HVAC) equipment that prevents maintaining the interior temperature of the unit between a range of 65 - 75 degrees Fahrenheit for more than a period of 2 hours;

5. Disrupts the electrical service to the unit for more than a short-term of 2 hours or less;

6. Prevents safe ingress and egress without proper alternative routes at any point during construction;

7. Provided however, that if any of these disruptions are confined to periods of time when tenants customarily are or plan to be (and actually are) voluntarily absent from their units (e.g. at work, out of town, etc.) then the disruption is not a cause displacement.

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Chapter 3 Programs 3.12 Tenant Relocation

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C. Temporary resident relocation is not required for projects undergoing simple repairs and minor renovations [i.e. 223(a)(7)s and 223(f) applications with classification of construction work limited to repairs as described in MAP Guide Chapter 5, Section 5.1 and Section 5.2].

D. When tenants are displaced and must find or prepare meals or lodging outside their units, the owner must provide reimbursement of costs.

1. For this purpose, owners must pay any displaced tenant the Federal travel per-diem (meals or lodging as applicable) for the period or periods of displacement. The meals per-diem shall be for each person in the tenant household.

• The lodging per-diem shall be for lodging room or rooms with sleeping capacity consistent with the number of persons, marital status, and the gender and age of persons in the household without requirement of adding additional beds or equipment not regularly provided in the room(s) by the lodging vendor.

  • The per-diem rates shall be those established for the locality in which the property is located and shall be paid to tenants without requiring receipts or evidence of actual cost and notwithstanding whether tenants obtained food service or lodging from a commercial vendor.

2. If tenants’ personal property must be packed and/or moved, owners must pay the actual costs of such services including insurance against loss of or damage to personal property.

3. Owners must identify displaced tenants who are elderly, disabled or special needs individuals and must provide additional services such as help locating or identifying alternative housing, transportation assistance, day care or similar services appropriate to their condition and apart from the per-diems for meals or lodging except to the extent that meals or lodging are included in day care or similar services.

4. Notwithstanding the forgoing, tenants are not required to accept owner-designated or recommended facilities. Without abridging any per-diem compensation due to them, tenants may select lodging and meals at their discretion provided that such discretion is exercised in writing and in advance of the scheduled displacement date(s) by such notices and at such intervals as shall be described in the approved relocation plan and provided further that any tenant having exercised such discretion may not disrupt the relocation schedule by failing to vacate on the agreed date and for the agreed period.

• E. Applications requiring permanent displacement of elderly or disabled residents from a non-assisted property will not be accepted, provided that HUD will accept such applications if the owner proposes to meet the relocation requirements applicable to projects receiving Federal financial assistance as described in Section 3.12.2.

F. Owners are not obligated to provide assistance (i.e. permanent relocation assistance) to tenants choosing to permanently relocate from a property in lieu of remaining as residents with temporary relocation benefits.