One-for-One Replacement Housing, Relocation and Real Property Acquisition

Types of Displacement

Displacement can be either residential or non-residential.

1. Residential displacement occurs when a residential household is displaced due to a rehabilitation program or development project. 

2. Non-residential displacement are applicable to businesses, farms, non-profit organizations, mixed-use buildings, etc. that are impacted by a rehabilitation program or development project.  

Procedures and Requirements

For both residential and non-residential displacements, Subrecipients and Successful Applicants are required to:

• Provide a minimum 90-days written notice to vacate prior to requiring possession; 

• Provide relocation advisory services to displaced tenants and owner-occupants; and 

• Reimburse displaced persons for moving expenses and any added cost for renting or purchasing comparable replacement housing.

Types of Voluntary Acquisition

Voluntary Acquisition (without eminent domain authority): If the Subrecipient or Successful Applicant does not have eminent domain authority, the transaction is considered voluntary if it meets the following conditions:

• Subrecipient or Successful Applicant notifies the owner in writing of the property’s market value
• Subrecipient or Successful Applicant notifies the owner prior to making an offer that it will not acquire property if an amicable settlement cannot be reached

has eminent domain authority, the transaction is considered voluntary if it meets all of the following conditions:

• No specific site is needed and any of several properties could be acquired for project purposes;
• The property is not part of an intended, planned, or designated project area where other properties will be acquired within specific time limits;
• Subrecipient informs the owner in writing of the property’s market value;
• Subrecipient also informs the owner in writing that the property will not be acquired, through condemnation, if negotiations do not reach an amicable agreement; and
• Tenants are displaced and provided relocation assistance.

Policies and Requirements

In cases of voluntary real property acquisition, Subrecipients and Successful Applicants must, before negotiations, complete the following steps:

1. Follow the guidelines outlined in Chapter 12: One-for-One Replacement of the CDBG-DR Manual.
2. Notify the property owner of the decision to appraise the property.
3. Request appraisal from the property owner.
4. After receiving approval for appraisal, invite the property owner to accompany the appraiser during the property evaluation and appraise the property.
5. Allow the property owner to review the offer, ask questions, accept or reject the offer, or make a counteroffer.
6. Based on the appraisal, Subrecipients and Successful Applicants provide the owner with a written offer of just compensation and a summary of what is being acquired and pay for the property before taking possession.
7. The property owner shall also be reimbursed all expenses resulting from the transfer of title such as recording fees, prepaid real estate taxes, or other expenses.

Involuntary Acquisition: If the transaction does not meet the conditions for voluntary acquisition, it is considered involuntary and a Subrecipient and Successful Applicants may acquire the property through the exercise of eminent domain powers.

Procedures and Requirements

For involuntary acquisitions, DED may acquire property through the exercise of eminent domain powers and must take the following steps:

1. Notify owner with a minimum of 90 days’ notice of the DED or a Subrecipient’s intentions to acquire the property and their protections under the URA.
2. Appraise the property and invite the owner to accompany the appraiser.
3. Review the appraisal.
4. Establish just compensation for the property.
5. Provide owner with written offer and summary statement for property to be acquired.
6. Negotiate with owner for the purchase of property.
7. If negotiations are successful, complete the sale and reimburse property owner for related incidental expenses.
8. If negotiations are unsuccessful, consider an administrative settlement to complete the sale.

Temporary Relocation: When a residential tenant is required to relocate from a dwelling for not more than 12 months for a CDBG-DR funded or assisted project involving rehabilitation or construction.

DED anticipates that CDBG-DR-funded projects may require persons to be displaced from their dwellings for only a short period of time, requiring Subrecipients and Successful Applicants to comply with temporary relocation requirements.

All conditions of temporary relocation must be reasonable. At a minimum, the tenant shall be provided the following:

• Reimbursement for all reasonable out-of-pocket expenses incurred in connection with the temporary relocation, including the cost of moving to and from the temporarily occupied housing and any increase in monthly rent or utility costs at such housing; 

• Appropriate advisory services, including reasonable advance written notice of the following:

• Date and approximate duration of the temporary relocation;

• Address of the suitable decent, safe, and sanitary (DSS) dwelling to be made available for the temporary period;

• Terms and conditions under which the tenant may lease and occupy a suitable DSS dwelling in the building/complex upon completion of the project; and

• Provisions of reimbursement for all reasonable out of pocket expenses incurred in connection with the temporary relocation as noted above.

*URA requires that comparable DSS housing within a person’s financial means be made available before that person may be displaced. When such housing cannot be provided by using replacement housing payments, the URA provides for “housing of last resort.”

Permanent Relocation: When a residential tenant is required to permanently move from a dwelling (or temporarily move for more than 12 months).

DED anticipates that CDBG-DR funded projects will not trigger permanent displacement. 

If a case of permanent displacement is encountered, then the Subrecipient or Successful Applicant staff responsible for the program or project should consult with DED to decide if they have the capacity to conduct the permanent displacement activity.

Non-residential Relocation: When a business owner, owner-occupant, or tenant operating a business in a rented space must move permanently as a direct result of a CDBG-DR-assisted project involving acquisition, rehabilitation, or demolition.

Non-residential relocation can be extremely complex and expensive. Subrecipients and Successful Applicants should be cautious when conducting nonresidential displacements under the URA.

Non-residential displaced persons are entitled to advisory services and may be eligible for other relocation benefits (including relocation payments for moving expenses and reestablishment) under the URA.

If a case of non-residential relocation is encountered, then the Subrecipient or Successful Applicant staff responsible for the program or project should consult with DED. More information on non-residential relocation requirements  can be found on HUD.gov. 

General Information Notice (GIN): Informs affected persons of the project and that they may be displaced by the project.

Notice of Relocation Eligibility: Informs persons that they will be displaced by the project and establishes their eligibility for relocation assistance and payments.

Ninety (90) Day Notice: Informs displaced persons of the earliest date by which they will be required to move. This notice may not be issued unless a comparable replacement dwelling is available, and the displaced person is informed of its location and has sufficient time to lease or purchase the property.

Notice of Non-Displacement: Informs persons that they are not permanently displaced and that they are eligible for temporary relocation benefits.

Disclosure to Occupants of Temporary Relocation Benefits: Documents that the Subrecipient and Successful Applicant is following its adopted temporary relocation plan for . 

For more information, review Chapter 12: One-for-One Replacement of the CDBG-DR Manual.

Due to the February 9, 2018 waiver of one-for-one replacement requirements for Winter Storm Ulmer (DR-4420) funds, Subrecipients and Successful Applicants are not required to provide one-for-one replacement of disaster damaged units meeting the definition of “not suitable for rehabilitation” found in DED’s Action Plan.  If a CDBG-DR program or project assists a property that does not meet the definition of “not suitable for rehabilitation,” any lost units must be replaced within three (3) years from the start of the activity, and any occupants of reduced units must be given permanent relocation benefits.

Before committing any CDBG-DR funds to an activity that will directly result in the demolition or conversion of Lower-Income Dwelling Units, the Subrecipient or Successful Applicant must make the activity public through a notice or publication in the newspaper, as well as submit certain information to DED in writing. For more information on replacement procedures, please refer to Chapter 12: One-for-One Replacement of the CDBG-DR Manual.