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Offices must have listings of properties for sale, available rental properties, public housing projects, other available replacement housing, and information about services offered by other related agencies, such as social welfare agencies, urban renewal agencies, and public housing authorities. Expenditures incidental to relocation advisory service are eligible for Federal-aid participation if they are chargeable directly to a project, but general administrative expenses of relocation are not eligible.

State highway departments may pay moving expenses to displaced residential occupants on the basis of a fixed schedule rather than actual expenses. All payments are required to be documented, by receipted bills, in case of actual expenses or by citation to the schedule. Action By the States

Since passage of the Highway Act, all State highway departments have set up machinery for giving relocation advisory assistance.

Since the Federal law merely authorizes Federal sharing in payments of relocation expenses by the States, actual payment depends on State legal authorization. Eight States already had authorization for some kind of payment when the Federal relocation provision was passed : Connecticut, Maryland, Minnesota, Nebraska, New York, Rhode Island, Tennessee, and Wisconsin. Several of these laws were not as broad as the Federal highway provision. In Connecticut and Rhode Island, for instance, payments were required to residential tenants but not owners; and payments for business moving expenses varied from nothing in Connecticut and Rhode Island to actual cost in Nebraska.

As of December 1964, 22 States were paying moving costs. The laws of 12 of the 22 States are substantially in accordance with the reimbursement provisions of the Federal-Aid Highway Act of 1962: Kentucky, Massachusetts, Nevada, New Jersey, New York, Ohio, Oregon, Rhode Island, Utah, Vermont, Virginia, and West Virginia. Payments are authorized for reasonable and necessary moving expenses" (except for Nevada where actual costs are specified); maximum payments are not to exceed $200 for residential occupants (except for New York where $300 is allowed) and $3,000 for business concerns; and, with the exception of Oregon, payment of a fixed amount in lieu of payment for actual expenses is authorized for individuals and families, although several of these (Vermont, Virginia, and New Jersey) have not implemented such authorization. In all these States, payments are authorized for displaced occupants without reference to their interest in the real estate (i.e., both owners and tenants, with and without leases (are eligible for payments).

The 10 States with legislative authorization to pay moving costs that depart from the Federal formula to a substantial degree are Connecticut, Hawaii, North Dakota, Wisconsin, Minnesota, Maryland, Nebraska, Oklahoma, Tennessee, and Pennsylvania. South Dakota enacted a statute authorizing payment of moving costs in 1963, but the State highway department, in exercising its discretion also conferred by statutes, has chosen not to implement it.


1 U.S. Department of Commerce, Bureau of Public Roads, “Right-of-Way Procedures (Assistance for Displaced Families and Businesses)," policy and procedure memorandum 21-4.4, Nov. 9, 1962,

: U.S. House of Representatives, "Federal Highway Act of 1962," hearings before the Subcommittee on Roads, Committee on Public Works, 87th Cong., 2d sess., 1962, p. 53.

The new Pennsylvania law, approved in June 1964, authorizes payments of highway relocation moving costs as part of the State's first comprehensive eminent domain act applicable to all property takings by State and local agencies. It provides that just compensation" shall consist of the fair market value of the real property taken, plus such other damages as provided in the law. The latter include the following, and are payable to both owners and tenants of real property:

(1) Reasonable expenses of removal, transportation, and reinstallation of machinery, equipment or fixtures, not to exceed the lesser of its market value or $25,000.

(2) Business dislocation damages, where it is shown that the business cannot be relocated without substantial loss of patronage. Compensation for these damages is the monthly rental for the business premises, multiplied by the number of months remaining in the lease, not to exceed 24 months. Where the business owns the real property occupied, the owner apparently is entitled to an amount equal to the fair rental value of the premises for 24 months. Payments may be no more than $5,000 and no less than $250.

(3) Moving expenses for personal property other than machinery, equipment or fixtures, not to exceed $500 for residential and $25,000 for business moves, and the market value of the personal property. Table 4 presents pertinent data on the laws of the 10 States authorizing highway relocation payments substantially different from the Federal formula.

Of the 22 States providing for payment of moving expenses for Federal-aid highway displacees, in 15 the law applies exclusively to highway displacements. Only seven provide for any kind of relocation payments or services for displacements caused by other types of State activities, including non-Federal-aid highways: Maryland, Massachusetts, Minnesota, New York, Pennsylvania, Tennessee, and Wisconsin. In these States, the provisions extend to all types of State activities. Of these seven, the requirement, except in New York, extends to the local governments as well.


TVA was the first Federal agency granted general authority to provide relocation assistance. The 1933 act provided that TVA "shall have power to advise and cooperate in the readjustment of the population displaced by the construction of dams, the acquisition of reservoir areas, the protection of watersheds, the acquisition of rights-ofway, and other necessary acquisitions of land *** and may cooperate with Federal, State, and local agencies to that end." The methods of cooperation were left to administrative determination.

TVA has provided a comprehensive relocation and readjustment service in cooperation with the agricultural extension services of the land-grant colleges in the seven valley States. Types of assistance have included

1. County agent visited families, inventoried their belongings, determined size and type of new farm desired, location desired, and ability to pay for a new farm.

2. The county agent developed and kept a list of available farms. He had advice from the Extension Service on the reasonableness of the asking price. Tours and visits to see these farms were arranged.

3. Landowners needing tenants and farmers interested in new rental opportunities were put in touch with each other.

4. The county agent encouraged groups of families to meet and work together in salvaging their farm buildings.

5. Families wanting to move their houses to a new location were provided information about house-moving contractors.

6. The county agent gave advice and assistance as requested on farm management for new farms acquired by the removed families.

7. Many farm families had members who were able to obtain employment on TVA projects. The county agent encouraged families to save and wisely invest this income.

8. The county agent collaborated with local health and welfare offices in relocating families requiring help and not relocating on

farms. 2 In the 30 years of its operations through the fall of 1963, TVA gave assistance to 14,758 families. The heads of many of the families were tenants or farmhands. The average cost of these services to TVA was $110 per family.

TVA does not make direct relocation payments, but it gives some consideration to relocation and moving expenses in determining what it regards as a fair offer for property. Short-term occupants, however, usually must bear their own relocation costs.



In 1951 Congress authorized the military departments to reimburse landowners and tenants for moving and related expenses (generally referred to as “resettlement payments”) in connection with lands acquired for specific military projects. In 1952 this authorization was broadened to apply to all public works projects of the military departments.

In 1958 Congress granted the Secretary of the Interior authority similar to that of the military departments in connection with lands acquired for construction, operation, or maintenance of developments under his jurisdiction (except for the National Park Service). Such developments include acquisition of lands for water conservation and for other public works projects of the Bureau of Reclamation.

In 1962 Congress authorized the National Aeronautics and Space Administration to make the same kinds of relocation payments to owners and tenants as previously authorized for the military departments and the Interior agencies.

None of these agencies provide relocation services for displacees. The agencies reimburse displaced property owners and all lawful occupants for their reasonable and actual "expenses and other losses

. See statement of William R. Holden, assistant to Director of Reservoir Properties, TVA, hearing before the Select Subcommittee on Real Property Acquisition of the House Public Works Committee, Knoxville, Tenn., July 29, 1963, p. 122.

and damages incurred * * * as a direct result of moving," subject to the statutory limitation that the total of all payments for claims pertaining to a property taken for a project may not exceed 25 percent of the value of the taking, as determined by the head of the agency concerned.

In general, administrative regulations permit reimbursement for transportation and related costs in searching for replacement property; costs of moving personal property to the new location; transportation and related expenses in moving the displaced family to the new location; incidental expenses in obtaining replacement property (other than the increased cost of replacement property), such as costs of appraisal, survey, financing charges, closing costs, etc.

No payments are made for actual direct losses of personal property, and displaced businesses and nonresident farm operators that discontinue their activities ordinarily receive no payment.

On the other hand, if a displacee disposes of personal property at the old site, and replaces it at the new location at a higher cost, he may be reimbursed an amount equal to the estimated cost that would have been required to move the property to the new location. The Federal agencies regard this as a moving expense payment and not a payment for loss of property.

Comparative provisions demonstrating the many inconsistencies in provisions for relocation payments and assistance in Federal and federally assisted programs are shown in tables 1, 2, and 3.


The Housing Act of 1961 authorized Small Business Administration loans on special terms for displaced business firms. Criteria used by SBA in making the loans are: (1) The borrower is not required to put up collateral; (2) loans can be made for 20 years, which is 10 years beyond the regular SBA loan program; (3) interest rate can be no higher than the average annual rate on all U.S. interest-bearing obligations at the end of the last fiscal year, plus one-fourth of 1 percent" (this was 35/8 in early 1964); and (4) an amount for working capital can be included in the loan. Major concern of SBA in making the loan is whether it can be repaid."

Unfortunately this program has not reached its full potential. From its inception in June 1961 through June 30, 1964, only 278 loans were granted. These included 221 for urban renewal projects, 53 for highways, and 4 for flood control.

Åt the Boston hearings of the Select Subcommittee on Real Property Acquisition, the SBA regional director for region 1 was asked why there had been so few displaced business disaster loans—an average of about 23 per quarter nationwide. His reply indicated that the program was suffering from a lack of knowledge about it.

Under the 1964 Housing Act, the SBA is directed to provide relocation assistance and information for small business concerns to be dispaced from urban areas.

1 See testimony of Thomas Noonan, hearings before the Select Subcommittee on Real Property Acquisition of the House Public Works Committee, Boston, Mas., Feb. 27, 1964.



TABLE 1.–Statutory maximum relocation payments authorized for Federal and federally assisted programs

Urban renewal

Moving expenses and losses on disposition of per- $3,000 (almost exclusively for losses on disposi- Loss of property only to $3,000: or moving ex

sonal property to $200 plus relocation adjustment tion of personal property) plus an additional penses and loss of property combined to $3,000;
payment up to $500 for low- and moderate-in- $1,500 for firms with average annual net earn- or total certified moving expenses only (admin-
come families and elderly individuals, unable to ings of less than $10,000 per year which are istrative ceiling established at $25,000); plus
obtain low-rent public housing, the exact not part of an enterprise having establish- additional $1,500 allowance as for firms
amount depending on family's or person's in- ments outside the urban renewal area.

come and the frental level of available housing.
Public housing-
Same as urban renewal..

Same as urban renewal..

Same as urban renewal. Mass transportation $200 (moving expenses and losses on disposition of $3,000 (almost exclusively for losses on disposi- Loss of property only to $3,000; or moving expersonal property).

tion of personal property).

penses and loss of property combined to $3,000; or total certified moving expenses only (admin

istrative ceiling established at $25,000). Government of the Dis- Same as mass transportation.

Same as mass transportation..

Same as mass transportation except that statute trict of Columbia.

prescribes the $25,000 ceiling. Federal Aid Highways !. $200 (moving expenses only).

No payment ?

$3,000 (moving expenses only).
Defense Department: Reasonable costs (moving expenses, costs in search do.

Reasonable costs (moving expenses, cost in search
Interior (except NPS); for replacement property, costs to obtain financ-

for replacement property costs to obtain financ-
ing and closing costs for replacement property,

ing and closing costs for replacement property, etc.).3

1 This is the only program among those listed in which relocation expenses are not
paid entirely with Federal funds. Payments are authorized on a cost sharing basis,
where States make payments pursuant to State law.

• Applies also to farm operations.

8 Statuto limits total payment for all relocation claims pertaining to a parcel of real
property to 25 percent of its fair market value. No cases have been found in which it
has been necessary to reduce a payment because of the statutory limitation; however,
current programs of these agencies generally cause displacements only in rural areas, or
occasionally in very small urban areas.

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