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TABLE 2.—Some variations in items of relocation expense payable in Federal

and federally assisted programs

Item

Urban Federal- U.S. renewal- aid high- Army 1 public ways Engineers housing

Navy

Department

of the Interior (except

National Park Service)

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Costs during search for replacement property:

Transportation.
Costs during search for replacement property:

Lodging.
Expenses in obtaining replacement property:

Appraisal..
Expenses in obtaining replacement property:

Title examination.
Expenses in obtaining replacement property:

Credit reports, origination fees, points and

discounts for financing..
Expenses in obtaining replacement property:

Olosing costs.
Moving costs: Disconnecting, dismantling and

reconnecting trade fixtures, machinery, equip-
ment, etc., if not paid for as realty-

X Moving costs: Loading and unloading personal X

property. Moving costs: Cost of transporting displaced

party and family to new dwelling. Moving costs: Reassembling and reinstalling X

fixtures, machinery, equipment, etc. (if not paid for as part of realty). Moving costs: Inspection fees for reinstalled

property. Labor performed by displaced person in accom

plishing, move. Loss on disposition of personal property, except X

Inventory, of displacement: trade fixtures, machinery, equipment, etc. (not paid for

as part of realty). Closing and related costs to convey property to

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Government.
Increased cost for purchase or rental of replace- | X:

ment property.

1 Includes Army (military and civil works), Department of the Air Force and NASA programs. : The Bureau of Public Roads will participate but it is entirely up to the State whether to pay at all or whether to pay for a specific item.

Relocation adjustment payment (rental supplement) to $500, for low or moderate income familles or elderly individuals.

NOTE.-Authorization of relocation payments by the Government of the District of Columbia, and in the Mass Transportation program are new and not reflected herein.

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TABLE 3.—Statutory requirements for relocation assistance and assurance of standard housing in Federal and federally assisted programs

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-, TABLE 4.-10 States with laws authorizing relocation payments for Federal-aid highway displacees that differ substantially from provisions of

the Federal-Aid

Maximum payment

State

Residential

Business

Connecticut

Hawaii.
Maryland.
Minnesota

$250.
$100.

$300.
No dollar limit, but cost of move may not exceed fair market value of personal property moved..
$200.-

$3,000.-
$20 per room.

No limit.
No dollar limit, but payments may not exceed value of personal property moved.
No dollar limit.
$500

$25,000 plus business dislocation damages from

$250 to $5,000, the amount depending on

rental value. No dollar limit. $150----

$2,000.

Nebraska.

Owner.

North Dakota.
Oklahoma
Pennsylvania

Tennessee
Wisconsin.

X. SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS In this study we have examined (1) the magnitude of the land acquisition requirements for Federal and federally assisted programs; (2) the extent of displacement of families or individuals, business concerns, and farm operations, and the effects of displacement; (3) the land acquisition practices and procedures of Federal, State, and local government agencies; (4) the judicial rules defining the scope and limitations of the just compensation required by the Fifth Amendment; (5) laws enacted by the Congress and State legislatures authorizing the payment of moving expenses or other incidental losses, or authorizing relocation assistance for displaced persons; (6) the policies and practices of Federal, State, and local governments making relocation payments and providing relocation assistance; (?) other programs providing, or capable of providing assistance for displaced persons in such matters as housing, business counseling, financing, retraining, and employment; and (8) provisions of the Internal Revenue Code relating to takings of property for public use.

A. SUMMARY AND CONCLUSIONS

The amount of disruption caused by Federal and federally assisted programs is astoundingly large. The accelerated pace of Government activity, supported by broadened concepts of “public use", make any lessening of current activity in the foreseeable future highly unlikely.

In each of the next 8 years, Federal and federally assisted programs are expected to require the acquisition of real property from 183,000 separate ownerships, and the displacement of approximately 111,080 households, 17,860 businesses, 2,310 farm operations, and some disruption of an additional 1,350 farms.

The market value standard of just compensation under the Fifth Amendment requires payment for the property taken, but does not provide for other losses or expenses, however severe, that may be incurred by property owners or tenants because of the taking of property. Typical losses of this kind are:

Costs of moving personal property and of the disconnecting, dismantling, reassembly, and reinstalling of structures, machinery, equipment, etc.

Transportation and other expenses to move a displaced family to replacement housing.

Transportation and other expenses in search of a replacement farm or other property:

Expenses in obtaining substitute real property, such as costs of appraisal, survey, necessary charges to obtain financing, title examination, and closing costs.

Losses on forced sale or disposition of personal property not usable after displacement.

Expenses incident to the transfer of title to real property required for public use, such as recording fees, transfer taxes, clerk fees, etc.; penalty costs for prepayment of mortgage incident to the real property and, real property taxes paid to a taxing entity which are allocable to a period subsequent to the transfer.

Increased cost of rent for substitute dwelling or other property.
Increased cost to acquire a substitute home, farm, or business.

Loss of homeownership because of inability to obtain financing within the financial means of the displacee.

Loss of rental or other income between the time of announcement of a public improvement and the time of taking.

Business interruption.

Loss of going concern value, goodwill, or livelihood, where a business cannot relocate without a substantial loss of its patronage.

Loss of ability to continue in business, by proprietor of small retail or service establishment with inadequate capital or credit resources to finance new operation; or by elderly proprietor or others with inadequate training or health to withstand the pressures of relocation; i.e., increased costs, more competitive situation, greater risks, etc.

Loss of employment due to the discontinuance or relocation of a displaced business. Under the judicial standard of compensation, residential tenants ordinarily receive no compensation, and relatively few small business tenants are compensated when the property they occupy is taken.

Some 77,860, or 59 percent of the expected annual displacement by Federal and federally assisted programs, will be tenants. These will include 67,750 residential tenants, 9,340 businesses, and 770 farm operators (including 300 farm operators, not actually displaced, but caused to incur expenses moving or realigning personal property).

Most displacements affect low- or moderate-income families or individuals, for whom a forced move generally is a very difficult experience. The problem is aggravated for the elderly, the large family, and the nonwhite displacee. The lack of standard housing at prices or rents that low- or moderate-income families can afford is the most serious relocation problem. Moving costs, where not reimbursed, and related expenses and losses are substantial burdens.

Some displaced persons are ineligible for admission to public housing because their incomes are too low. After displacement, many must pay higher rents and a disproportionate amount of their limited incomes for housing. Low-income homeowners, and elderly homeowners in particular, frequently have to discontinue homeownership because they cannot obtain financing at terms within their means.

Moving expenses, where not reimbursed, are an added burden. For those who try to buy a home, the costs of appraisal, title examination, survey, origination fees, points and discounts, and closing and related costs are equally burdensome.

In the case of the low-income groups, other out-of-pocket costs are substantial considerations. These include utility deposits, appliance installations, redecorating, the payment of a full month's rent in advance, and loss of property such as floor coverings, blinds, curtains, and similar items that are not usable at the new location, but have to be replaced.

Some 67,750, or 61 percent of the expected annual displacement of families or individuals by Federal and federally assisted programs, will be tenants, and 43,330, or 39 percent will be homeowners.

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