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Uniform Act Applicability

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Presentation on theme: "Uniform Act Applicability"— Presentation transcript:

1 Uniform Act Applicability
and Regulatory Changes

2 Uniform Act Overview 49 CFR 24
Establishes minimum standards to protect and assist persons who have real property acquired, or are displaced, as a direct result of federally funded programs and projects involving: acquisition, rehabilitation, or demolition.

3 Uniform Act Requirements
Apply to all projects involving acquisition, rehabilitation or demolition with any phase planned or intended to be funded in whole or in part with Federally funds. Uniform standards for real estate acquisition and administering relocation assistance across classes of persons. Written notice & advisory service requirements based on key project milestones.

4 CDBG Examples “In whole or in part…in any phase of a program or project” – federal funds do not have to pay for acq/rehab/demo itself to cause applicability: Infrastructure projects where improvements cannot be completed in existing right-of-way bounds (temporary/permanent easements). Economic development. Housing new construction. Homebuyer assistance. Rehabilitation of occupied dwellings (tenants). Clearance of occupied dwellings.

5 What is not a URA action? Acquisition or displacement not directly caused by a federally-assisted acquisition, rehab or demo project. Act of nature such as flooding or tornados. Damage caused by fires, prolonged deferred maintenance of dwellings/systems, etc. (where no federally-funded rehab is taking place). Displacement caused by foreclosure or code compliance (where no federally-funded acq or demo is taking place). Displacement by private developer (mobile home parks, apartments, etc. redevelopment).

6 URA Applicability “Triggers”
“As soon as feasible” a person scheduled to be displaced...with assistance anticipated in any phase of an undertaking = General Info Notice Documented intent of project, specific site & federal funding – NOFA applications, Con Plan, City Council resolutions, etc. Specific Notice of Relocation Eligibility when… The “Initiation of Negotiations” for the project occurs (based on several possible dates per regulations) CDBG/HOME ION is the date the grant agreement is executed, typically.

7 What is an Acquisition? Conveyance of fee simple rights in real estate from one legal entity to another. Donations are a type of acquisition whereby the seller simply forgoes compensation – this is still an acquisition! Permanent easements & other less-than-full fee interests are subject to acquisition requirements. Under CDBG regs, long-term leases of 15 years or greater are considered acquisitions for URA purposes. May occur between two affiliated entities. i.e. purchase & sale agreements with multi-family rehab/tax credit deals.

8 2 Paths to Acquisition Acquiring agency must determine which approach applies to the project BEFORE starting any acquisition activity. Once an agency starts down the “voluntary” acquisition path – the use of eminent domain is off the table as a potential tool. If an agency conducts its acquisition using the “involuntary” approach it is NOT committed to using eminent domain but may retain that option as last resort. Acquisitions by one govt. agency from another probably exempt if acquiring agency cannot condemn from the other. Who is purchasing the property matters!

9 “Voluntary” Acquisitions
For acquiring agencies with eminent domain authority, ALL of the following: No specific site is needed and any of several properties could be acquired for project purposes; and The property is not part of an intended, planned or designated project area where other properties will be acquired within specific time limits; and The agency informs the owner in writing of the property's market value prior to making an offer; and The agency also informs the owner in writing that the property will not be acquired, through condemnation, if negotiations do not reach an amicable agreement. Has nothing to do with if the seller is or is not agreeable to the sale in determining what the acquiring agency has to do for compliance.

10 “Voluntary” Acquisitions
For agencies without eminent domain authority, ALL of the following: The agency notifies the owner in writing of the property's market value; and The agency notifies the owner prior to making an offer, that it will not acquire property if an amicable settlement cannot be reached. If tenants will be displaced, the tenants are ALWAYS provided relocation assistance. Under “voluntary” acquisitions, an owner is NOT eligible for relocation payments whereas they ARE REQUIRED for “involuntary” acquisitions.

11 “Involuntary” Acquisitions
For agencies with eminent domain authority, acquisitions that cannot meet all 4 criteria to be exempt from Subpart B: Notice to Owner Offer to attend appraisal inspection Appraisal (or wavier valuation) and establish just compensation Written offer of just compensation Negotiations and documented terms of settlement Payment of incidental costs Administrative Settlement, do not acquire or condemnation

12 What Is MAP-21? FHWA is “lead agency” for URA regulations.
P.L – President Obama – July 2012 “Moving Ahead for Progress in the 21st Century Act (MAP-21)” FHWA is “lead agency” for URA regulations. Long-term surface transportation funding authorization. Reduce regulatory burdens & accelerate project delivery. Changes to FHWA programs & cross-cutting requirements.

13 MAP-21 Effective Dates Uniform Act Changes –
October 1, 2013 – Federal Agency Reporting & Capacity October 1, 2014 – Statutory Payment Limit Changes Other modifications to FHWA programs (not discussed herein) If you are a grantee that implements URA projects funded by FHWA/TXDOT, those projects may be subject to additional changes specific to FHWA programs. Some Public Works/Transportation Departments may have flexibility with acquisitions in advance of environmental and/or streamlined relocation payments that will not be allowed under other non-FHWA federal programs. HUD is not suggesting a grantee modify their program policies or procedures until applicable changes are actually in effect. This info is being provided as warning regarding changes under development.

14 Agency Capacity Changes
Effective October 1, 2013 each Federal agency with programs subject to the URA must provide FHWA an annual report on real estate acquisition & relocation assistance activities. HUD collects very limited data on these areas. Cumulative data on #’s & costs for Uniform Act compliance. FHWA is drafting a standard MOU for execution with all Federal agency partners in As these discussions progress, HUD will obtain more info as to what is intended to be collected & reported. This may or may not require enhancements to existing data being reported by HUD grantees.

15 Agency Capacity Changes
NEED STATE INFO FHWA Annual Report This is an example of the current report compiled by FHWA and does not mean HUD will follow the exact reporting format. However, it is a precedent for existing federal agency reporting on URA activities.

16 Uniform Act Amendments
Effective October 1, 2014 Updates some URA requirements & benefit levels in place for over 20 years. Streamline requirements to meet modern needs. Improve services to displaced individuals & businesses. Reduce administrative burdens. Applies to all Federal agency programs. Last changes to the URA in 2005 were the greatest allowable by modifying regulations. MAP-21 authorized changes to the URA statutes that will be rolled out for implementation in Grantees may wish to participate in comments as part of a Notice of Proposed Rulemaking process later in 2013.

17 Uniform Act Amendments
90-day Tenant Replacement Housing Payments – Housing of Last Resort to $7,200 from $5,250 Owner-occupant Replacement Housing Payments – Housing of Last Resort to $31,000 from $22,500 – Occupancy pre-ION from 180 days to 90 days (same as a residential tenant) Business Reestablishment Payments – Max increased to $25,000 from $10,000 Business Fixed Payment In Lieu of Reestablishment – Max increased to $40,000 from $20,000 Payments for residential occupants (owners & tenants) are not effectively capped at current levels, nor do these adjustments create new “caps”. Rather, these are simply increases to the threshold amounts that define a residential displacement as “Housing of Last Resort”. Housing of Last Resort requires consideration of other housing alternatives in addition to a cash replacement housing payment. Increases to nonresidential thresholds do represent potentially higher project costs than would otherwise be incurred under existing payment limits.

18 Adjustment of Payments
MAP-21 provided authority to adjust statutory benefit levels for Replacement Housing Payments, In Lieu of Payments & Reestablishment Payments. No longer requires Congressional action to increase threshold amounts. FHWA as Lead Agency may adjust these amounts periodically or on an index due to cost of living, inflation or other factors. As this is a new feature, it is unclear what the basis or schedule for future payment adjustments may be beyond implementation in late Many states have state statutes pertaining to acquisition & displacement that are based on the URA. Part of the upcoming rulemaking process is intended to allow time for states to modify their laws.

19 What’s Next? Notice of Proposed Rulemaking anticipated.
Subscribe to Acquisition and Relocation updates on the OneCPD Mailing List. For more information about MAP-21… More info to follow on

20 HUD Regional Relocation Specialist
Q & A HUD Regional Relocation Specialist More info to follow on


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