
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC4623]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
CHAPTER 61--UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION 
          POLICIES FOR FEDERAL AND FEDERALLY ASSISTED PROGRAMS
 
              SUBCHAPTER II--UNIFORM RELOCATION ASSISTANCE
 
Sec. 4623. Replacement housing for homeowner; mortgage insurance

    (a)(1) In addition to payments otherwise authorized by this 
subchapter, the head of the displacing agency shall make an additional 
payment not in excess of $22,500 to any displaced person who is 
displaced from a dwelling actually owned and occupied by such displaced 
person for not less than one hundred and eighty days prior to the 
initiation of negotiations for the acquisition of the property. Such 
additional payment shall include the following elements:
    (A) The amount, if any, which when added to the acquisition cost of 
the dwelling acquired by the displacing agency, equals the reasonable 
cost of a comparable replacement dwelling.
    (B) The amount, if any, which will compensate such displaced person 
for any increased interest costs and other debt service costs which such 
person is required to pay for financing the acquisition of any such 
comparable replacement dwelling. Such amount shall be paid only if the 
dwelling acquired by the displacing agency was encumbered by a bona fide 
mortgage which was a valid lien on such dwelling for not less than 180 
days immediately prior to the initiation of negotiations for the 
acquisition of such dwelling.
    (C) Reasonable expenses incurred by such displaced person for 
evidence of title, recording fees, and other closing costs incident to 
the purchase of the replacement dwelling, but not including prepaid 
expenses.
    (2) The additional payment authorized by this section shall be made 
only to a displaced person who purchases and occupies a decent, safe, 
and sanitary replacement dwelling within 1 year after the date on which 
such person receives final payment from the displacing agency for the 
acquired dwelling or the date on which the displacing agency's 
obligation under section 4625(c)(3) of this title is met, whichever is 
later, except that the displacing agency may extend such period for good 
cause. If such period is extended, the payment under this section shall 
be based on the costs of relocating the person to a comparable 
replacement dwelling within 1 year of such date.
    (b) The head of any Federal agency may, upon application by a 
mortgagee, insure any mortgage (including advances during construction) 
on a comparable replacement dwelling executed by a displaced person 
assisted under this section, which mortgage is eligible for insurance 
under any Federal law administered by such agency notwithstanding any 
requirements under such law relating to age, physical condition, or 
other personal characteristics of eligible mortgagors, and may make 
commitments for the insurance of such mortgage prior to the date of 
execution of the mortgage.

(Pub. L. 91-646, title II, Sec. 203, Jan. 2, 1971, 84 Stat. 1896; Pub. 
L. 100-17, title IV, Sec. 406, Apr. 2, 1987, 101 Stat. 251.)


                               Amendments

    1987--Subsec. (a)(1). Pub. L. 100-17, Sec. 406(1)-(3), substituted 
``displacing agency'' for ``Federal agency'' and ``$22,500'' for 
``$15,000'' in introductory provisions, and in subpar. (A) ``acquired by 
the displacing agency, equals the reasonable cost of a comparable 
replacement dwelling'' for ``acquired by the Federal agency, equals the 
reasonable cost of a comparable replacement dwelling which is a decent, 
safe, and sanitary dwelling adequate to accommodate such displaced 
person, reasonably accessible to public services and places of 
employment and available on the private market. All determinations 
required to carry out this subparagraph shall be made in accordance with 
standards established by the head of the Federal agency making the 
additional payment''.
    Subsec. (a)(1)(B). Pub. L. 100-17, Sec. 406(4), added subpar. (B) 
and struck out former subpar. (B) which read as follows: ``The amount, 
if any, which will compensate such displaced person for any increased 
interest costs which such person is required to pay for financing the 
acquisition of any such comparable replacement dwelling. Such amount 
shall be paid only if the dwelling acquired by the Federal agency was 
encumbered by a bona fide mortgage which was a valid lien on such 
dwelling for not less than one hundred and eighty days prior to the 
initiation of negotiations for the acquisition of such dwelling. Such 
amount shall be equal to the excess in the aggregate interest and other 
debt service costs of that amount of the principal of the mortgage on 
the replacement dwelling which is equal to the unpaid balance of the 
mortgage on the acquired dwelling, over the remainder term of the 
mortgage on the acquired dwelling, reduced to discounted present value. 
The discount rate shall be the prevailing interest rate paid on savings 
deposits by commercial banks in the general area in which the 
replacement dwelling is located.''
    Subsec. (a)(2). Pub. L. 100-17, Sec. 406(5), added par. (2) and 
struck out former par. (2) which read as follows: ``The additional 
payment authorized by this subsection shall be made only to such a 
displaced person who purchases and occupies a replacement dwelling which 
is decent, safe, and sanitary not later than the end of the one year 
period beginning on the date on which he receives from the Federal 
agency final payment of all costs of the acquired dwelling, or on the 
date on which he moves from the acquired dwelling, whichever is the 
later date.''


                    Effective Date of 1987 Amendment

    Amendment by Pub. L. 100-17 effective on effective date provided in 
regulations promulgated under section 4633 of this title (as amended by 
section 412 of Pub. L. 100-17), but not later than 2 years after Apr. 2, 
1987, see section 418 of Pub. L. 100-17, set out as a note under section 
4601 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 4603, 4624, 4626, 4630 of 
this title; title 16 sections 429b-2, 450e-1, 460l-8, 460bb-2, 698b, 
698h.
