Chapter 5501:2-5 Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970

5501:2-5-01 General provisions.

(A) General: The purpose of rules 5501:2-5-01 to 5501:2-5-06 of the Administrative Code is to amplify sections 163.51 to 163.63 of the Revised Code and to implement the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended at the time of the effective date of this rule ( 42 U.S.C. 4601 et seq.), in accordance with the following objectives:

(1) To ensure that owners of real property to be acquired for projects are treated fairly and consistently, to encourage and expedite acquisition by agreements with such owners, to minimize litigation and relieve congestion in the courts, and to promote public confidence in land acquisition programs;

(2) To ensure that persons displaced as a direct result of federally assisted projects and state highway projects are treated fairly, consistently, and equitably and receive relocation assistance benefits so that such persons will not suffer disproportionate injuries as a result of projects designed for the benefit of the public as a whole; and

(3) To ensure that agencies implement rules 5501:2-5-01 to 5501:2-5-06 of the Administrative Code in a manner that is efficient and cost effective.

(B) Definitions

(1) "Agency" means the state, state agency, or person that acquires real property or displaces a person.

(a) "Acquiring agency" means a state agency, person, private agency or public agency which has the authority to acquire property by eminent domain under state law, and a state agency, private agency or public agency or person which does not have such authority.

(b) "Displacing agency" means any state agency, person, private agency or public agency or person carrying out a program or project with federal financial assistance, which causes a person to be a displaced person.

(c) "Federal agency" means any department, agency or instrumentality in the executive branch of the government, any wholly owned government corporation, the architect of the capitol, the federal reserve banks, and branches thereof, and any person who has the authority to acquire property by eminent domain under federal law.

(d) "State agency" means any department, agency or instrumentality of the state or of a political subdivision of the state, any department, agency, or instrumentality of two or more states or of two or more political subdivisions of a state or states, and any person who has the authority to acquire property by eminent domain under state law.

(e) "Public agency" means any governmental corporation, unit, organization, or officer authorized by law to appropriate property in the courts of this state. "Private agency" means any other corporation, firm, partnership, voluntary association, joint-stock association, or company authorized by law to appropriate property in the courts of this state. "Agency" includes any public agency or private agency.

(2) Alien not lawfully present in the United States.

The phrase "alien not lawfully present in the United States" means an alien who is not "lawfully present" in the United States as defined in 8 CFR 103.12 (2011) and includes:

(a) An alien present in the United States who has not been admitted or paroled into the United States pursuant to the Immigration and Nationality Act 8 U.S.C. 1101 et seq. (2013) and whose stay in the United States has not been authorized by the United States attorney general; and,

(b) An alien who is present in the United States after the expiration of the period of stay authorized by the United States Attorney General or who otherwise violates the terms and conditions of admission, parole or authorization to stay in the United States.

(3) "Appraisal" means a written statement independently and impartially prepared by a qualified appraiser setting forth an opinion of defined value of an adequately described property as of a specific date, supported by the presentation and analysis of relevant market information.

(4) "Business" means any lawful activity, except a farm operation, that is conducted:

(a) Primarily for the purchase, sale, lease and/or rental of personal and/or real property, and/or for the manufacture, processing, and/or marketing of products, commodities, and/or any other personal property; or

(b) Primarily for the sale of services to the public; or

(c) By a nonprofit organization that has established its nonprofit status under applicable federal or state law.

(5) Citizen.

The term citizen for purposes of this part includes both citizens of the United States and noncitizen nationals.

(6) "Comparable replacement dwelling" means a dwelling which is:

(a) Decent, safe and sanitary;

(b) Functionally equivalent to the acquired displacement dwelling. The term "functionally equivalent" means that it performs the same function and provides the same utility. While a comparable replacement dwelling need not possess every feature of the displacement dwelling, the principal features must be present. Generally, functional equivalency is an objective standard, reflecting the range of purposes for which the various physical features of a dwelling may be used. However, in determining whether a replacement dwelling is functionally equivalent to the displacement dwelling, the agency may consider reasonable trade-offs for specific features when the replacement unit is equal to or better than the displacement dwelling.

(c) Adequate in size to accommodate the occupants;

(d) In an area not subject to unreasonable adverse environmental conditions;

(e) In a location generally not less desirable than the location of the displaced person's dwelling with respect to public utilities and commercial and public facilities, and reasonably accessible to the person's place of employment;

(f) On a site that is typical in size for residential development with normal site improvements including customary landscaping. The site need not include special improvements such as outbuildings, swimming pools, or greenhouses;

(g) Currently available to the displaced person on the private market. However, a comparable replacement dwelling for a person receiving government housing assistance before displacement may reflect similar government housing assistance. In such cases any requirements of the government housing assistance program relating to the size of the replacement dwelling shall apply; and

(h) Within the financial means of the displaced person.

(i) A replacement dwelling, purchased by a homeowner in occupancy at the displacement dwelling for at least one hundred eighty days prior to initiation of negotiations, is considered to be within the homeowner's financial means if the homeowner will receive the full price differential as described in paragraph (A)(2) of rule 5501:2-5-04 of the Administrative Code, all increased interest costs as described in paragraph (A)(4) of rule 5501:2-5-04 of the Administrative Code, and all incidental expenses as described in paragraph (A)(5) of rule 5501:2-5-04 of the Administrative Code, plus any additional amount required to be paid under paragraph (D) of rule 5501:2-5-04 of the Administrative Code.

(ii) A replacement dwelling rented by a displacee is considered to be within his/her financial means if, after receiving the rental assistance payment as described in paragraph (B)(2)(a) of rule 5501:2-5-04 of the Administrative Code, the displacee's monthly rent and estimated average monthly utility costs for the replacement dwelling do not exceed the person's base monthly rental cost for the displacement dwelling as described in paragraph (B)(2)(b) of rule 5501:2-5-04 of the Administrative Code.

(iii) For a displaced person who is not eligible to receive a replacement housing payment because of the person's failure to meet length-of-occupancy requirements, comparable replacement rental housing is considered to be within the person's financial means if an agency pays that portion of the monthly housing costs of a replacement dwelling which exceeds the person's base monthly rent for the displacement dwelling. Such rental assistance must be paid as described in paragraph (D) of rule 5501:2-5-04 of the Administrative Code.

(i) For a person receiving government housing assistance before displacement, a dwelling that may reflect similar housing assistance. In such cases any requirements of the government housing assistance program relating to the size of the replacement dwelling shall apply.

(7) "Contribute materially" means that during the two taxable years prior to the taxable year in which displacement occurs, or during such other period as the agency determines to be more equitable, a business or farm operation:

(a) Had average annual gross receipts of at least five thousand dollars; or

(b) Had average annual net earnings of at least one thousand dollars; or

(c) Contributed at least one third of the owner's or operator's average annual gross income from all sources.

(d) If the application of the above criteria creates an inequity or hardship in any given case, the agency may approve the use of other criteria as determined appropriate.

(8) "Decent, safe, and sanitary dwelling" means a dwelling which meets applicable housing and occupancy codes. However, any of the following standards that are not met by an applicable code shall apply unless waived by the federal agency funding the project. The dwelling shall:

(a) Be structurally sound, weather-tight, and in good repair.

(b) Contain a safe electrical wiring system adequate for lighting and other devices.

(c) Contain a heating system capable of sustaining a healthful temperature (of approximately seventy degrees) for a displaced person.

(d) Be adequate in size with respect to the number of rooms and area of living space needed to accommodate the displaced person. There shall be a separate, well-lighted and ventilated bathroom that provides privacy to the user, and contains a sink, bathtub or shower stall and toilet, all in good working order, and properly connected to appropriate sources of water and to a sewage drainage system. In the case of a housekeeping dwelling, there shall be a kitchen area that contains a fully usable sink, properly connected to potable hot and cold water and to a sewage drainage system, and adequate space and utility service connections for a stove and refrigerator.

(e) Contains unobstructed egress to safe, open space at ground level. If the replacement dwelling unit is on the second story or above, with access directly from or through a common corridor, the common corridor must have at least two means of egress.

(f) For a displaced person who is handicapped, be free of any barriers which would preclude reasonable ingress, egress, or use of the dwelling by such displaced person.

(9) "Displaced person" means any person who moves from the real property or moves his or her personal property from the real property as a direct result of:

(a) A written notice of intent to acquire, the initiation of negotiations for, or the acquisition of such real property, in whole or in part, for a project; or

(b) Rehabilitation or demolition for a project; or

(c) A written notice of intent to acquire, or the acquisition, rehabilitation or demolition of, in whole or in part, other real property on which the person conducts a business or farm operation for a project. However, eligibility for such person under this paragraph applies only for purposes of obtaining relocation advisory services under paragraph (E)(3) of rule 5501:2-5-02 of the Administrative Code and moving expenses under paragraphs (A)(1) and (A)(2) and paragraph (B) of rule 5502:2-5-03 of the Administrative Code.

(10) "Person not displaced" means a person who does not qualify as a displaced person under rules 5501:2-5-01 to 5501:2-5-05 of the Administrative Code. The following is a non-exclusive listing of persons who do not qualify as displaced persons:

(a) A person who moves before the initiation of negotiations, unless the agency determines that the person was displaced as a direct result of the program or project; or

(b) A person who initially enters into occupancy of the property after the date of its acquisition for the project; or

(c) A person who has occupied the property for the purpose of obtaining assistance under the Uniform Act.

(d) A person who is not required to relocate permanently as a direct result of a project. Such determination shall be made by the agency in accordance with any guidelines established by the federal agency funding the project; or

(e) An owner-occupant who moves as a result of a voluntary transaction. (See paragraph (B)(34) of this rule for definition of a voluntary transaction)

(f) Acquisitions for programs or projects undertaken by an agency or person that receives federal financial assistance but does not have authority to acquire property by eminent domain, provided that such agency or person shall:

(i) Prior to making an offer for the property, clearly advise the owner that it is unable to acquire the property in the event negotiations fail to result in an amicable agreement; and

(ii) Inform the owner of what it believes to be fair market value of the property.

(g) A person whom the agency determines is not displaced as a direct result of a partial acquisition; or

(h) A person who, after receiving a notice of relocation eligibility, is notified in writing that he or she will not be displaced for a project. Such notice shall not be issued unless the person has not moved and the agency agrees to reimburse the person for any expenses incurred to satisfy any binding contractual relocation obligations entered into after the effective date of the notice of relocation eligibility; or

(i) An owner-occupant who voluntarily conveys his or her property, after being informed in writing that if a mutually satisfactory agreement on terms of the conveyance cannot be reached, the agency will not acquire the property. In such cases, however, any resulting displacement of a tenant is subject to rules 5501:2-5-01 to 5501:2-5-05 of the Administrative Code; or

(j) A person who retains the right of use and occupancy of the real property for life following its acquisition by the agency; or

(k) A person who is determined to be in unlawful occupancy prior to or after the initiation of negotiations, or a person who has been evicted for cause under applicable law as provided in paragraph (F) of rule 5501:2-5-02 of the Administrative Code. However, advisory assistance may be provided to unlawful occupants at the option of the agency in order to facilitate the project;

(l) A person who is not lawfully present in the United States and who has been determined to be ineligible for relocation assistance in accordance with paragraph (H) of rule 5501:2-5-02 of the Administrative Code; or

(11) "Dwelling" means the place of permanent or customary and usual residence of a person, according to local custom or law, including a single-family house; a single-family unit in a two family, multi-family, or multi-purpose property; a unit of a condominium or cooperative housing project; a non-housekeeping unit; a mobile home; or any other residential unit.

(12) "Dwelling site" means a land area that is typical in size for similar dwellings located in the same neighborhood or rural area.

(13) "Farm operation" means any activity conducted solely or primarily for the production of one or more agricultural products or commodities, including timber, for sale or home use, and customarily producing such products or commodities in sufficient quantity to be capable of contributing materially to the operator's support.

(14) "Federal financial assistance" means a grant, loan, or contribution provided by the United States, except any federal guarantee or insurance and any interest reduction payment to an individual in connection with the purchase and occupancy of a residence by that individual.

(15) "Financial information" means information concerning the assets and liabilities, of the displaced person. Financial information includes, but is not limited to, bank statements, mortgage statements, federal or state tax documents, check stubs and payroll records.

(16) "Household income" means total gross income received for a twelve month period from all sources (earned and unearned) including, but not limited to wages, salary, child support, alimony, unemployment benefits, workers compensation, social security, or the net income from a business. It does not include income received or earned by dependent children and full time students less than eighteen years of age.

(17) "Initiation of negotiations" means

(a) The delivery of the initial written offer of just compensation, by the agency, to the owner or owner's representative, to purchase the real property for the project whenever displacement results from the acquisition of the real property by a state agency. However, if the agency issues a notice of its intent to acquire the real property, and a person moves after that notice, but before delivery of the initial written purchase offer, the "initiation of negotiations" means the actual move of the person from the property.

(b) Whenever the displacement is caused by rehabilitation, demolition or privately undertaken acquisition of the real property (and there is no related acquisition by a federal agency or a state agency), the "initiation of negotiations" means the notice to the person that he or she will be displaced by the project or, if there is no notice, the actual move of the person from the property.

(c) In the case of a permanent relocation to protect the public health and welfare, under the Comprehensive Environmental Response Compensation and Liability Act of 1980 (Pub.L. 96-510, or "Superfund") (CERCLA) the "initiation of negotiations" means the formal announcement of such relocation or the federal or federally coordinated health advisory where the federal government later decides to conduct a permanent relocation.

(d) In the case of permanent relocation of a tenant as a result of an acquisition of real property described in paragraph (B)(34) of this rule, the initiation of negotiations means the actions described in paragraphs (B)(17)(a) and (B)(17)(b) of this rule, except that such initiation of negotiations does not become effective, for purposes of establishing eligibility for relocation assistance for such tenants under this part, until there is a written agreement between the agency and the owner to purchase the real property.

(18) "Lead agency" means the Ohio department of transportation unless otherwise designated by the governor.

(19) "Mobile home" includes manufactured homes and recreational vehicles used as residences.

(20) "Mortgage" means such classes of liens as are commonly given to secure advances on, or the unpaid purchase price of, real property, under the laws of a state in which the real property is located, together with the credit instruments, if any, secured thereby.

(21) "Nonprofit organization" means an organization that is incorporated under the applicable laws of a state as a nonprofit organization, and exempt from paying federal income taxes under section 501 of the Internal Revenue Code 26 U.S.C. 501 (2010).

(22) "Owner of a dwelling" means that a person is considered to have met the requirement to own a dwelling if the person purchases or holds any of the following interests in real property;

(a) Fee title, a life estate, a land contract, ninety-nine-year lease, or a lease including any options for extension with at least fifty years to run from the date of acquisition; or

(b) An interest in a cooperative housing project which includes the right to occupy a dwelling; or

(c) A contract to purchase any of the interests or estates described in paragraph (B)(22)(a) or (B)(22)(b) of this rule; or

(d) Any other interest, including a partial interest, which in the judgment of the agency warrants consideration as ownership.

(23) "Person" means any individual, family, partnership, corporation, or association.

(24) "Program or project" means any activity or series of activities undertaken with federal or state financial assistance received or anticipated in any phase of an undertaking in accordance with the federal or state funding agency guidelines.

(25) "Salvage value" means the probable sale price of an item offered for sale to knowledgeable buyers with the requirement that it be removed from the property at a buyer's expense (i.e., not eligible for relocation assistance). This includes items for re-use as well as items with components that can be re-used or recycled when there is no reasonable prospect for sale except on this basis.

(26) "Small business" is a business having not more than five hundred employees working at the site being acquired or displaced by a program or project, which site is the location of economic activity.

(27) "Tenant" means a person who has the temporary use and occupancy of real property owned by another.

(28) "Uneconomic remnant" means a parcel of real property in which the owner is left with an interest after the partial acquisition of the owner's property and which the acquiring agency has determined has little or no value or utility to the owner.

(29) "Uniform act" means the Uniform Relocation Assistance and Real Property Acquisition Act of 1970 ( 42 U.S.C. 4601 et seq.), and amendments thereto.

(30) "Unlawful occupant" means a person is considered to be in unlawful occupancy if the person has been ordered to move by a court of competent jurisdiction prior to the initiation of negotiations or is determined by the agency to be a squatter who is occupying the real property without the permission of the owner and otherwise has no legal right to occupy the property under state law. A displacing agency may, at its discretion, consider such a squatter to be in lawful occupancy.

(31) "Utility costs" means expenses for electricity, gas, other heating and cooking fuels, water and sewer.

(32) "Utility facility" means any electric, gas, water, steam power, or materials transmission or distribution system; any transportation system; any communications system, including cable television; and any fixtures, equipment, or other property associated with the operation, maintenance, or repair of any such system. A utility facility may be publicly, privately, or cooperatively owned.

(33) "Utility relocation" means the adjustment of a utility facility required by the program or project undertaken by the displacing agency. It includes removing and reinstalling the facility, including necessary temporary facilities; acquiring necessary right-of-way on new location; moving, rearranging or changing the type of existing facilities; and taking any necessary safety and protective measures. It shall also mean constructing a replacement facility that has the functional equivalence of the existing facility and is necessary for the continued operation of the utility service, the project economy, or sequence of project construction.

(34) "Voluntary transactions" means a transaction that meets all of the following conditions:

(a) No specific site or property needs to be acquired, although the agency may limit its search for alternative sites to a general geographic area. Where an agency wishes to purchase more than one site within a geographic area on this basis, all owners are to be treated similarly.

(b) The property to be acquired is not part of an intended, planned, or designated project area where all or substantially all of the property within the area is to be acquired within specific time limits.

(c) The agency will not acquire the property in the event negotiations fail to result in an amicable agreement, and the owner is so informed in writing.

(d) The agency will inform the owner of what it believes to be the fair market value of the property.

(35) "Waiver valuation" means the valuation process used and the product produced when the agency determines that an appraisal is not required, pursuant to appraisal waiver provisions in paragraph (B)(3)(b) of rule 5501:2-5-06 of the Administrative Code.

(36) "Displacement Date" means the date of the move, or for large complex moves, the date the move commences.

(37) "Low Cost or Uncomplicated Moves" means a move with an estimated cost that is less than two thousand five hundred dollars.

(C) No duplication of payments: no person shall receive any payment under rules 5501:2-5-01 to 5501:2-5-06 of the Administrative Code if that person receives a payment under federal, state, or local law or insurance proceeds which is determined by the agency to have the same purpose and effect as such payment under rules 5501:2-5-01 to 5501:2-5-06 of the Administrative Code.

(D) Assurances

(1) Before a state agency may approve any grant to, or contract, or agreement with, a public agency or private agency under which federal financial assistance will be made available for a project which results in real property acquisition or displacement that is subject to the Uniform Act, the public agency or private agency must provide appropriate assurances that it will comply with the Uniform Act. These same assurances shall be given for any highway project. A displacing agency's assurances shall be in accordance with section 210 of the Uniform Act. An acquiring agency's assurances shall be in accordance with section 305 of the Uniform Act and must contain specific reference to any state law which the agency believes provides an exception to section 301 or section 302 of the Uniform Act. If, in the judgment of the state agency, Uniform Act compliance will be served, a public agency or private agency may provide these assurances at one time to cover all subsequent federally assisted programs or projects. An agency which both acquires real property and displaces persons may combine its section 210 and section 305 assurances in one document.

(E) Prevention of fraud, waste, and mismanagement: the agency shall take appropriate measures to carry out rules 5501:2-5-01 to 5501:2-5-06 of the Administrative Code in a manner that minimizes fraud, waste, and mismanagement.

(F) Manner of notices: each notice which the agency is required to provide to a property owner or occupant under rules 5501:2-5-01 to 5501:2-5-06 of the Administrative Code, except the notice described under paragraph (B)(2) of rule 5501:2-5-06 of the Administrative Code, shall be personally served or sent by certified or registered first-class mail, return receipt requested, and documented in agency files. Each notice shall be written in plain, understandable language. Persons who are unable to read and understand the notice must be provided with appropriate translation and counseling. Each notice shall indicate the name and telephone number of a person who may be contacted for answers to questions or other needed help.

(G) The agency funding the project may waive any requirements in rules 5501:2-5-01 to 5501:2-5-06 of the Administrative Code not required by law if it determines that the waiver does not reduce any assistance or protection provided to an owner or displaced person under these rules. Any request for a waiver shall be justified on a case-by-case basis.

(H) The implementation of rules 5501:2-5-01 to 5501:2-5-06 of the Administrative Code must be in compliance with other applicable federal and state laws and implementing regulations.

(I) Recordkeeping and reports:

(1) The agency shall maintain adequate records of its acquisition and displacement activities in sufficient detail to demonstrate compliance with rules 5501:2-5-01 to 5501:2-5-06 of the Administrative Code. These records shall be retained for at least three years after each owner of a property and each person displaced from the property receives the final payment to which he or she is entitled under rules 5501:2-5-01 to 5501:2-5-06 of the Administrative Code, or in accordance with the applicable regulations of the federal funding agency, whichever is later.

(2) Financial information submitted to the agency by the displacee(s) shall be considered confidential.

(J) Appeals

(1) Actions that may be appealed: Any aggrieved person may file a written appeal with the agency in any case in which the person believes that the agency has failed to properly consider the person's application for assistance under this rule. Such assistance may include, but is not limited to, the person's eligibility for, or the amount of, a payment required under paragraph (F) of rule 5501:2-5-06 of the Administrative Code, or a relocation payment required under rules 5501:2-5-02 to 5501:2-5-05 of the Administrative Code. The agency shall consider a written appeal regardless of form.

(2) Time limit for initiating appeal.

(a) Relocation assistance appeals under rules 5501:2-5-02 to 5501:2-5-05 of the Administrative Code: the appeal shall be filed within one hundred twenty days of the person receiving written notification of the agency's determination on the person's claim. All supporting documentation must accompany the notice of appeal.

(b) Acquisition expense appeals under paragraph (F) of rule 5501:2-5-06 of the Administrative Code: the appeal shall be filed within one hundred twenty days of the disbursement of funds to the property owner. All supporting documentation must accompany the notice of appeal.

(3) Right to representation: A person has a right to be represented by legal counsel or other representative in connection with his or her appeal, but solely at the person's own expense.

(4) Review of files by person making appeal: The agency shall permit a person to inspect and copy all materials pertinent to his or her appeal, except materials that are classified as confidential by the agency.

(5) Scope of review of appeal: In deciding an appeal, the agency shall consider all pertinent justification and other material submitted by the person, and all other available information that is needed to ensure a fair and full review of the appeal.

(6) Determination and notification after appeal: After receipt of the notice of appeal, the agency shall make a written determination. The written determination shall include an explanation of the basis on which the decision was made, and the appellant shall be furnished a copy.

(7) Agency official to review appeal: The agency official conducting the review of the appeal shall be either the head of the agency or his or her authorized designee. However, the official shall not have been directly involved in the action appealed.

Effective: 01/09/2014
R.C. 119.032 review dates: 10/25/2013 and 01/01/2019
Promulgated Under: 111.15
Statutory Authority: 163.58
Rule Amplifies: 163.51 , 163.52 , 163.53 , 163.54 , 163.55 , 163.56 , 163.57 , 163.58 , 163.59 , 163.60 , 163.61 , 163.62 , 163.63
Prior Effective Dates: 09/26/1977, 07/10/1992, 04/23/2000, 12/17/2001, 04/3/2004, 01/08/2007

5501:2-5-02 General relocation requirements.

(A) Purpose: this rule prescribes general requirements governing the provision of relocation payments and other relocation assistance.

(B) Applicability: these requirements apply to the relocation of any displaced person as defined in paragraph (B)(9) of rule 5501:2-5-01 of the Administrative Code. Any person who qualifies as a displaced person must be fully informed of his or her rights and entitlements to relocation assistance and payments provided by Chapter 163. of the Revised Code and this rule.

(C) Relocation notices

(1) General information notice: as soon as feasible, a person scheduled to be displaced shall be furnished with a general written description of the displacing agency's relocation program which does at least the following:

(a) Informs the person that he or she may be displaced for the project and generally describes the relocation payment(s) for which the person may be eligible, the basic conditions of eligibility, and the procedures for obtaining the payment(s).

(b) Informs the person that he or she will be given reasonable relocation advisory services, including referrals to replacement properties, help in filing payment claims, and other necessary assistance to help the person successfully relocate.

(c) Informs the displaced person that he or she will not be required to move without at least ninety days' advance written notice (see paragraph (C)(3) of this rule) and informs any person to be displaced from a dwelling that he or she cannot be required to move permanently unless at least one comparable replacement dwelling has been made available.

(d) Informs the displaced person that any person who is an alien not lawfully present in the United States is ineligible for relocation advisory services and relocation payments, unless such ineligibility would result in exceptional and extremely unusual hardship to a qualifying spouse, parent, or child, as defined in paragraph (H) of this rule; and

(e) Describes the person's right to appeal the agency's determination in accordance with paragraph (J) of rule 5501:2-5-01 of the Administrative Code.

(2) Notice of relocation eligibility: eligibility for relocation assistance shall begin on the date of a notice of intent to acquire (described in paragraph (C)(3)(e) of this rule), the initiation of negotiations (defined in paragraph (B)(17) of rule 5501:2-5-01 of the Administrative Code), or actual acquisition, whichever occurs first. When this occurs, the agency shall promptly notify all occupants in writing of their eligibility for applicable relocation assistance.

(3) Ninety day notice

(a) General: no lawful occupant shall be required to move unless he or she has received at least ninety days advance written notice of the earliest date by which he or she may be required to move.

(b) Timing of notice: the displacing agency may issue the notice ninety days or earlier before it expects the person to be displaced.

(c) Content of notice: the ninety-day notice shall either state a specific date as the earliest date by which the occupant may be required to move, or state that the occupant will receive a further notice indicating, at least thirty days in advance, the specific date by which he or she must move. If the ninety-day notice is issued before a comparable replacement dwelling is made available, the notice must state clearly that the occupant will not have to move earlier than ninety days after such a dwelling is made available.

(d) Urgent need: in unusual circumstances, an occupant may be required to vacate the property on less than ninety days advance written notice if the displacing agency determines that a ninety-day notice is impracticable, such as when the person's continued occupancy of the property would constitute a substantial danger to health or safety. A copy of the agency's determination shall be included in the applicable case file.

(e) Notice of intent to acquire: a notice of intent to acquire is a displacing agency's written communication that is provided to a person to be displaced, which clearly sets forth that the agency intends to acquire the property. A notice of intent to acquire establishes eligibility for relocation assistance prior to the initiation of negotiations.

(D) Availability of comparable replacement dwelling before displacement

(1) General: no person to be displaced shall be required to move from his or her dwelling unless at least one comparable replacement dwelling has been made available to the person. Where possible, three or more comparable replacement dwellings shall be made available. A comparable replacement dwelling will be considered to have been made available to a person if:

(a) The person is informed of its location; and

(b) The person has sufficient time to negotiate and enter into a purchase agreement or lease for the property; and

(c) Subject to reasonable safeguards, the person is assured of receiving the relocation assistance and acquisition payment to which the person is entitled in sufficient time to complete the purchase or lease of the property.

(2) Circumstances permitting waiver: the federal agency funding the project may grant a waiver of the policy in paragraph (D)(1) of this rule in any case where it is demonstrated that a person must move because of:

(a) A major disaster as defined in section 102 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, as amended at the time of the effective date of this rule,42 U.S.C. 5122 (2013); or

(b) A presidentially declared national emergency; or

(c) The governor declares an emergency; or

(d) Another emergency that requires immediate vacation of the real property, such as when continued occupancy of the displacement dwelling constitutes a substantial danger to the health or safety of the occupants or the public.

(3) Basic conditions of emergency move: whenever a person is required to relocate for a temporary period because of an emergency as described in paragraph (D)(2) of this rule, the agency shall:

(a) Take whatever steps are necessary to assure that the person is temporarily relocated to a decent, safe, and sanitary dwelling; and

(b) Pay the actual reasonable out-of-pocket moving expenses and any reasonable increase in rent and utility costs incurred in connection with the temporary relocation; and

(c) Make available to the displaced person as soon as feasible, at least one comparable replacement dwelling. (For purposes of filing a claim and meeting the eligibility requirements for a relocation payment, the date of displacement is the date the person moves from the temporarily occupied dwelling.)

(E) Relocation planning, advisory services, and coordination

(1) Relocation planning: during the early stages of development, projects shall be planned in such a manner that the problems associated with the displacement of individuals, families, businesses, farms, and nonprofit organizations are recognized and solutions are developed to minimize the adverse impacts of displacement. Such planning, where appropriate, shall precede any action by an agency which will cause displacement, and should be scoped to the complexity and nature of the anticipated displacing activity including an evaluation of program resources available to carry out timely and orderly relocations. Planning may involve a relocation survey or study which may include the following:

(a) An estimate of the number of households to be displaced including information such as owner/tenant status, estimated value and rental rates of properties to be acquired, family characteristics, and special consideration of the impacts on minorities, the elderly, large families, and persons with disabilities when applicable.

(b) An estimate of the number of comparable replacement dwellings in the area (including price ranges and rental rates) that are expected to be available to fulfill the needs of those households displaced. When an adequate supply of comparable housing is not expected to be available, consideration of housing of last resort actions should be instituted.

(c) An estimate of the number, type and size of the businesses, farms and nonprofit organizations to be displaced and the approximate number of employees that may be affected.

(d) An estimate of the availability of replacement business sites. When an adequate supply of replacement business sites is not expected to be available, the impacts of displacing the businesses should be considered and addressed. Planning for displaced businesses which are reasonably expected to involve complex or lengthy moving processes or small businesses with limited financial resources and/or few alternative relocation sites should include an analysis of business moving problems.

(e) Consideration of any special relocation advisory services that may be necessary from the displacing agency and other cooperating agencies.

(2) Loans for planning and preliminary expenses: in the event that an agency elects to consider using the duplicative provision in section 215 of the Uniform Act which permits the use of project funds for loans to cover planning and other preliminary expenses for the development of additional housing, the agency will establish criteria and procedures for such use upon the request of the federal agency funding the program or project.

(3) Relocation assistance advisory services

(a) General: the agency shall carry out a relocation assistance advisory program which satisfies the requirements of Title VI of the Civil Rights Act of 1964, ( 42 U.S.C. 2000D et seq.), Title VIII of the Civil Rights Act of 1968 ( 42 U.S.C. 3601 et seq.), and Executive Order 11063 (27 FR 11527, November 24, 1962), and offers the services described in paragraph (E)(3)(b) of this rule. If the agency determines that a person occupying property adjacent to the real property acquired for the project is caused substantial economic injury because of such acquisition, it may offer advisory services to such person.

(b) Services to be provided: the advisory program shall include such measures, facilities, and services as may be necessary or appropriate in order to:

(i) Determine, for nonresidential (businesses, farm and nonprofit organizations) displacements, the relocation needs and preferences of each business (farm and nonprofit organization) to be displaced and explain the relocation payments and other assistance for which the business may be eligible, the related eligibility requirements, and the procedures for obtaining such assistance. This shall include a personal interview with each business. At a minimum, interviews with displaced business owners and operators should include the following items:

(a) The business's replacement site requirements, current lease terms and other contractual obligations and the financial capacity of the business to accomplish the move.

(b) Determination of the need for outside specialists in accordance with paragraph (A)(7)(l) of rule 5501:2-5-03 of the Administrative Code that will be required to assist in planning the move, assistance in the actual move, and in the reinstallation of machinery and/or other personal property.

(c) For businesses, an identification and resolution of personalty/realty issues. Every effort must be made to identify and resolve realty/personalty issues prior to, or at the time of, the appraisal of the property.

(d) An estimate of the time required for the business to vacate the site.

(e) An estimate of the anticipated difficulty in locating a replacement property.

(f) An identification of any advance relocation payments required for the move, and the agency's legal capacity to provide them.

(ii) Determine, for residential displacements, the relocation needs and preferences of each person to be displaced and explain the relocation payments and other assistance for which the person may be eligible, the related eligibility requirements, and the procedures for obtaining such assistance. This shall include a personal interview with each residential displaced person.

(a) Provide current and continuing information on the availability, purchase prices, and rental costs of comparable replacement dwellings, and explain that the person cannot be required to move unless at least one comparable replacement dwelling is made available as set forth in paragraph (D) of this rule.

(b) As soon as feasible, the agency shall inform the person in writing of the specific comparable replacement dwelling and the price or rent used for establishing the upper limit of the replacement housing payment (see paragraph (C)(1) of rule 5501:2-5-04 of the Administrative Code) and the basis for the determination, so that the person is aware of the maximum replacement housing payment for which he or she may qualify.

(c) Where feasible, housing shall be inspected prior to being made available to assure that it meets applicable standards. (see paragraph (B)(8) of rule 5501:2-5-01 of the Administrative Code) If such an inspection is not made, the agency shall notify the person to be displaced that a replacement housing payment may not be made unless the replacement dwelling is subsequently inspected and determined to be decent, safe, and sanitary.

(d) Whenever possible, minority persons shall be given reasonable opportunities to relocate to decent, safe, and sanitary replacement dwellings, not located in an area of minority concentration, that are within their financial means. This policy, however, does not require an Agency to provide a person a larger payment than is necessary to enable a person to relocate to a comparable replacement dwelling.

(e) The agency shall offer all persons transportation to inspect housing to which they are referred.

(f) Any displaced person that may be eligible for government housing assistance at the replacement dwelling shall be advised of any requirements of such government housing assistance program that would limit the size of the replacement dwelling (see paragraph (B)(6)(i) of rule 5501:2-5-01 of the Administrative Code), as well as of the long term nature of such rent subsidy, and the limited (forty-two month) duration of the relocation rental assistance payment.

(iii) Provide, for nonresidential moves, current and continuing information on the availability, purchase prices, and rental costs of suitable commercial and farm properties and locations. Assist any person displaced from a business or farm operation to obtain and become established in a suitable replacement location.

(iv) Minimize hardships to persons in adjusting to relocation by providing counseling, advice as to other sources of assistance that may be available, and such other help as may be appropriate.

(v) Supply persons to be displaced with appropriate information concerning federal and state housing programs, disaster loan and other programs administered by the small business administration, and other federal and state programs offering assistance to displaced persons, and technical help to persons applying for such assistance.

(4) Coordination of relocation activities: relocation activities shall be coordinated with project work and other displacement-causing activities to ensure that, to the extent feasible, persons displaced receive consistent treatment and the duplication of functions is minimized.

(5) Any person who occupies property acquired by an agency, when such occupancy began, subsequent to the acquisition of the property, and the occupancy is permitted by a short-term rental agreement or an agreement subject to termination when the property is needed for a program or project, shall be eligible for advisory services, as determined by the agency.

(F) Eviction for cause

(1) Eviction for cause must conform to applicable state and local law. Any person who occupies the real property and is not in unlawful occupancy on the date of the initiation of negotiations, is presumed to be entitled to relocation payments and other assistance set forth in this part unless the agency determines that:

(a) The person received an eviction notice prior to the initiation of negotiations and, as a result of that notice is later evicted; or

(b) The person is evicted after the initiation of negotiations for serious or repeated violation of material terms of the lease or occupancy agreement; and

(c) In either case the eviction was not undertaken for evading the obligation to make available the payments and other assistance set forth in this rule.

(2) Determination of eligibility: for purposes of determining eligibility for relocation payments, the date of displacement is the date the person moves, or if later, the date a comparable replacement dwelling is made available. This section applies only to persons who would otherwise have been displaced by the project.

(G) General requirements: claims for relocation payments

(1) Documentation: any claim for a relocation payment shall be supported by such documentation as may be reasonably required to support expenses incurred, such as bills, certified prices, appraisals, or other evidence of such expenses. A displaced person must be provided reasonable assistance necessary to complete and file any required claim for payment.

(2) Expeditious payments: the agency shall review claims in an expeditious manner. The claimant shall be promptly notified as to any additional documentation that is required to support the claim. Payment for a claim shall be made as soon as feasible following receipt of sufficient documentation to support the claim.

(3) Advance payments: if a person demonstrates the need for an advance relocation payment in order to avoid or reduce a hardship, the agency shall issue the payment, subject to such safeguards as are appropriate to ensure that the objective of the payment is accomplished.

(4) Time for filing

(a) All claims for a relocation payment shall be filed with the agency no later than eighteen months after:

(i) For tenants, the date of displacement;

(ii) For owners, the date of displacement or the date of the final payment for the acquisition of the real property, whichever is later.

(b) This time period shall be waived by the agency for good cause.

(5) Notice of denial of claim: if the agency disapproves all or part of a payment claimed or refuses to consider the claim on its merits because of untimely filing or other grounds, it shall promptly notify the claimant in writing of its determination and the procedures for appealing that determination.

(6) No waiver of relocation assistance: a displacing agency shall not propose or request that a displaced person waive his or her rights or entitlements to relocation assistance and benefits provided by section 163 of the Revised Code and this rule.

(7) Expenditure of payments: payments, provided pursuant to this part, shall not be considered to constitute federal financial assistance. Accordingly, this part does not apply to the expenditure of such payments by, or for, a displaced person.

(8) Multiple occupants of one displacement dwelling: if two or more occupants of the displacement dwelling move to separate replacement dwellings, each occupant is entitled to a reasonable prorated share, as determined by the agency, of any relocation payments that would have been made if the occupants moved together to a comparable replacement dwelling. However, if the agency determines that two or more occupants maintained separate households within the same dwelling, such occupants have separate entitlements to relocation payments.

(9) Deductions from relocation payments: an agency shall deduct the amount of any advance relocation payment from the relocation payment(s) to which a displaced person is otherwise entitled. The agency shall not withhold any part of a relocation payment to a displaced person to satisfy an obligation to any creditor.

(H) Aliens not lawfully present in the United States.

(1) Each person seeking relocation payments or relocation advisory assistance shall, as a condition of eligibility, certify:

(a) In the case of an individual, that he or she is either a citizen or national of the United States, or an alien who is lawfully present in the United States.

(b) In the case of a family, that each family member is either a citizen or national of the United States, or an alien who is lawfully present in the United States. The certification may be made by the head of the household on behalf of other family members.

(c) In the case of an unincorporated business, farm, or nonprofit organization, that each owner is either a citizen or national of the United States, or an alien who is lawfully present in the United States. The certification may be made by the principal owner, manager, or operating officer on behalf of other persons with an ownership interest.

(d) In the case of an incorporated business, farm, or nonprofit organization, that the corporation is authorized to conduct business within the United States.

(2) The certification provided pursuant to paragraphs (H)(1)(a), (H)(1)(b), and (H)(1)(c) of this rule shall indicate whether such person is either a citizen or national of the United States, or an alien who is lawfully present in the United States. Requirements concerning the certification in addition to those contained in this rule shall be within the discretion of the federal funding agency and, within those parameters, that of the displacing agency.

(3) In computing relocation payments under Chapter 163. of the Revised Code, if any member of a household or owner of an unincorporated business, farm, or nonprofit organization is determined to be ineligible because of a failure to be legally present in the United States, no relocation payments may be made to him or her. Any payment for which such household, unincorporated business, farm, or nonprofit organization would otherwise be eligible shall be computed for the household, based on the number of eligible household members and for the unincorporated business, farm, or nonprofit organization, based on the ratio of ownership between eligible and ineligible owners.

(4) The displacing agency shall consider the certification provided pursuant to paragraph (H)(1) of this rule to be valid, unless the displacing agency determines in accordance with paragraph (H)(6) of this rule that it is invalid based on a review of an alien's documentation or other information that the agency considers reliable and appropriate.

(5) Any review by the displacing agency of the certifications provided pursuant to paragraph (H)(1) of this rule shall be conducted in a nondiscriminatory fashion. Each displacing agency will apply the same standard of review to all such certifications it receives, except that such standard may be revised periodically.

(6) If, based on a review of an alien's documentation or other credible evidence, a displacing agency has reason to believe that a person's certification is invalid (for example a document reviewed does not on its face reasonably appear to be genuine), and that, as a result, such person may be an alien not lawfully present in the United States, it shall obtain the following information before making a final determination:

(a) If the agency has reason to believe that the certification of a person who has certified that he or she is an alien lawfully present in the United States is invalid, the displacing agency shall obtain verification of the alien's status from the local bureau of citizenship and immigration service (BCIS) office. Any request for BCIS verification shall include the alien's full name, date of birth and alien number, and a copy of the alien's documentation. (If an agency is unable to contact the BCIS, it may contact the FHWA in Washington, DC, office of real estate services or office of chief counsel for a referral to the BCIS.)

(b) If the agency has reason to believe that the certification of a person who has certified that he or she is a citizen or national is invalid, the displacing agency shall request evidence of United States citizenship or nationality from such person and, if considered necessary, verify the accuracy of such evidence with the issuer.

(7) No relocation payments or relocation advisory assistance shall be provided to a person who has not provided the certification described in this paragraph or who has been determined to be not lawfully present in the United States, unless such person can demonstrate to the displacing agency's satisfaction that the denial of relocation assistance will result in an exceptional and extremely unusual hardship to such person's spouse, parent, or child who is a citizen of the United States, or is an alien lawfully admitted for permanent residence in the United States.

(8) For purposes of paragraph (H)(7) of this rule, "exceptional and extremely unusual hardship" to such spouse, parent, or child of the person not lawfully present in the United States means that the denial of relocation payments and advisory assistance to such person will directly result in:

(a) A significant and demonstrable adverse impact on the health or safety of such spouse, parent, or child;

(b) A significant and demonstrable adverse impact on the continued existence of the family unit of which such spouse, parent, or child is a member; or

(c) Any other impact that the displacing agency determines will have a significant and demonstrable adverse impact on such spouse, parent, or child.

(9) The certification referred to in paragraph (H)(1) of this rule may be included as part of the claim for relocation payments described in paragraph (G) of this rule.

(I) Relocation payments not considered as income: no relocation payments received by a displaced person under rules 5501:2-5-01 to 5501:2-5-05 of the Administrative Code shall be considered as income for the purpose of the Internal Revenue Code or for the purpose of determining the eligibility or the extent of eligibility of any person for assistance under the Social Security Act or any other federal law, except for any federal law providing low-income housing assistance.

Effective: 01/09/2014
R.C. 119.032 review dates: 10/25/2013 and 01/01/2019
Promulgated Under: 111.15
Statutory Authority: 163.58
Rule Amplifies: 163.56 , 163.57
Prior Effective Dates: 09/26/1977, 07/10/1992, 04/23/2000, 01/08/2007

5501:2-5-03 Payments for moving and related expenses.

(A) Payment for actual reasonable moving and related expenses.

(1) General

(a) Any owner-occupant or tenant who qualifies as a displaced person (defined in paragraph (B)(9) of rule 5501:2-5-01 of the Administrative Code) and who moves from a dwelling (including a mobile home) or who moves from a business, farm or nonprofit organization is entitled to payment of his or her actual moving and related expenses, as the agency determines to be reasonable and necessary.

(b) A non-occupant owner of a rented mobile home is eligible for actual cost reimbursement under paragraph (A) of this rule to relocate the mobile home. If the mobile home is not acquired as real estate, but the homeowner-occupant obtains a replacement housing payment under one of the circumstances described in paragraph (C)(1)(c) of rule 5501:2-5-05 of the Administrative Code, the home-owner occupant is not eligible for payment for moving the mobile home, but may be eligible for a payment for moving personal property from the mobile home.

(2) Moves from a dwelling, including mobile homes. A displaced person's actual, reasonable and necessary moving expenses for moving personal property from a dwelling may be determined based on the cost of one, or a combination of the following methods: Eligible expenses for moves from a dwelling include the expenses described in paragraphs (A)(5)(a) to (A)(5)(g) of this rule. In addition to the items in paragraph (A)(2)(a) of this rule, the owner-occupant of a mobile home that is moved as personal property and used as the person's replacement dwelling, is also eligible for the moving expenses described in paragraphs (A)(5)(h) to (A)(5)(j) of this rule. Self-moves based on the lower of two bids or estimates are not eligible for reimbursement under this rule.

(a) Commercial move - moves performed by a professional mover.

(b) Self-move - moves that may be performed by the displaced person in one or a combination of the following methods:

(i) Fixed residential moving cost schedule. (described in paragraph (B) of this rule)

(ii) Actual cost move. Supported by receipted bills for labor and equipment. Hourly labor rates should not exceed the cost paid by a commercial mover. Equipment rental fees should be based on the actual cost of renting the equipment but not exceed the cost paid by a commercial mover.

(3) Moves from a business, farm or nonprofit organization.

Personal property as determined by an inventory from a business, farm or nonprofit organization may be moved by one or a combination of the following methods: Eligible expenses for moves from a business, farm or nonprofit organization include those expenses described in paragraphs (A)(5)(a) to (A)(5)(g) of this rule, paragraphs (A)(5)(k) to (A)(5)(r) of this rule, and paragraph (C) of this rule.

(a) Commercial move. Based on the lower of two bids or estimates prepared by a commercial mover. At the agency's discretion, payment for a low cost or uncomplicated move may be based on a single bid or estimate.

(b) Self-move. A self-move payment may be based on one or a combination of the following:

(i) The lower of two bids or estimates prepared by a commercial mover or qualified agency staff person. At the agency's discretion, payment for a low cost or uncomplicated move may be based on a single bid or estimate; or

(ii) Supported by receipted bills for labor and equipment. Hourly labor rates should not exceed the rates paid by a commercial mover to employees performing the same activity and, equipment rental fees should be based on the actual rental cost of the equipment but not to exceed the cost paid by a commercial mover.

(4) Personal property only. Eligible expenses for a person who is required to move personal property from real property but is not required to move from a dwelling (including a mobile home), business, farm or nonprofit organization include those expenses described in paragraphs (A)(5)

(a) to (A)(5)(g) of this rule and paragraph (A)(5)(r) of this rule.

(5) Eligible actual moving expenses.

(a) Transportation of the displaced person and personal property.

Transportation costs for a distance beyond fifty miles are not eligible, unless the agency determines that relocation beyond fifty miles is justified.

(b) Packing, crating, unpacking, and uncrating of the personal property.

(c) Disconnecting, dismantling, removing, reassembling, and reinstalling relocated household appliances and other personal property. For businesses, farms or nonprofit organizations this includes machinery, equipment, substitute personal property, and connections to utilities available within the building; it also includes modifications to the personal property, including those mandated by federal, state or local law, code or ordinance, necessary to adapt it to the replacement structure, the replacement site, or the utilities at the replacement site, and modifications necessary to adapt the utilities at the replacement site to the personal property.

(d) Storage of the personal property for a period not to exceed twelve months, unless the agency determines that a longer period is necessary.

(e) Insurance for the replacement value of the property in connection with the move and necessary storage.

(f) The replacement value of property lost, stolen, or damaged in the process of moving (not through the fault or negligence of the displaced person, his or her agent, or employee) where insurance covering such loss, theft, or damage is not reasonably available.

(g) Other moving-related expenses that are not listed as ineligible under paragraph (A)(6) of this rule, as the agency determines to be reasonable and necessary.

(h) The reasonable cost of disassembling, moving, and reassembling any appurtenances attached to a mobile home, such as porches, decks, skirting, and awnings, which were not acquired, anchoring of the unit, and utility "hookup" charges.

(i) The reasonable cost of repairs and/or modifications so that a mobile home can be moved and/or made decent, safe, and sanitary.

(j) The cost of a nonrefundable mobile home park entrance fee, to the extent it does not exceed the fee at a comparable mobile home park, if the person is displaced from a mobile home park or the agency determines that payment of the fee is necessary to effect relocation.

(k) Any license, permit, fees or certification required of the displaced person at the replacement location. However, the payment may be based on the remaining useful life of the existing license, permit, fees or certification.

(l) Professional services as the agency determines to be actual, reasonable and necessary for:

(i) Planning the move of the personal property;

(ii) Moving the personal property; and

(iii) Installing the relocated personal property at the replacement location.

(m) Re-lettering signs and replacing stationery on hand at the time of displacement that are made obsolete as a result of the move.

(n) Actual direct loss of tangible personal property incurred as a result of moving or discontinuing the business or farm operation. The payment shall consist of the lesser of:

(i) The fair market value in place of the item, as is for continued use, less the proceeds from its sale. (To be eligible for payment, the claimant must make a good faith effort to sell the personal property, unless the agency determines that such effort is not necessary. When payment for property loss is claimed for goods held for sale, the market value shall be based on the cost of the goods to the business, not the potential selling prices.); or

(ii) The estimated cost of moving the item as is, but not including any allowance for storage; or for reconnecting a piece of equipment if the equipment is in storage or not being used at the acquired site. If the business or farm operation is discontinued, the estimated cost of moving the item shall be based on a moving distance of fifty miles.

(o) The reasonable cost incurred in attempting to sell an item that is not to be relocated.

(p) Purchase of substitute personal property.

If an item of personal property, which is used as part of a business or farm operation is not moved but is promptly replaced with a substitute item that performs a comparable function at the replacement site, the displaced person is entitled to payment of the lesser of:

(i) The cost of the substitute item, including installation costs of the replacement site, minus any proceeds from the sale or trade-in of the replaced item; or

(ii) The estimated cost of moving and reinstalling the replaced item but with no allowance for storage. At the agency's discretion, the estimated cost for a low cost or uncomplicated move may be based on a single bid or estimate.

(q) Searching for a replacement location. A business or farm operation is entitled to reimbursement for actual expenses, not to exceed twenty-five hundred dollars, as the agency determines to be reasonable, which are incurred in searching for a replacement location, including:

(i) Transportation;

(ii) Meals and lodging away from home;

(iii) Time spent searching, based on reasonable salary or earnings;

(iv) Fees paid to a real estate agent or broker to locate a replacement site, exclusive of any fees or commissions related to the purchase of such sites;

(v) Time spent in obtaining permits and attending zoning hearings; and

(vi) Time spent negotiating the purchase of a replacement site based on a reasonable salary or earnings.

(r) Low value/high bulk. When the personal property to be moved is of low value and high bulk, and the cost of moving the property would be disproportionate to its value in the judgment of the displacing agency, the allowable moving cost payment shall not exceed the lesser of: The amount which would be received if the property were sold at the site or the replacement cost of a comparable quantity delivered to the new business location. Examples of personal property covered by this provision include, but are not limited to, stockpiled sand, gravel, minerals, metals and other similar items of personal property as determined by the agency.

(6) Ineligible moving and related expenses. A displaced person is not entitled to payment for:

(a) The cost of moving any structure or other real property improvement in which the displaced person reserved ownership. (However, this part does not preclude the computation under paragraph (A)(3)(b) of rule 5501:2-5-04 of the Administrative Code);

(b) Interest on a loan to cover moving expenses;

(c) Loss of goodwill, except for payments authorized under section 163.14 of the Revised Code;

(d) Loss of profits, except for payments for economic loss authorized under section 163.15 of the Revised Code;

(e) Loss of trained employees;

(f) Any additional operating expenses of a business or farm operation incurred because of operating in a new location except as provided in paragraph (D)(1) of this rule;

(g) Personal injury;

(h) Any legal fee or other cost for preparing a claim for a relocation payment or for representing the claimant before the agency;

(i) Expenses for searching for a replacement dwelling;

(j) Physical changes to the real property at the replacement location of a business or farm operation except as provided in paragraphs (A)(5)(c) and (D)(1) of this rule;

(k) Costs for storage of personal property on real property already owned or leased by the displaced person, and

(l) Refundable security and utility deposits.

(7) Notification and inspection (nonresidential). The agency shall inform the displaced person, in writing, of the requirements of this section as soon as possible after the initiation of negotiations. This information may be included in the relocation information provided the displaced person as set forth in paragraph (C) of rule 5501:2-5-02 of the Administrative Code. To be eligible for payments under this section the displaced person must:

(a) Provide the agency reasonable advance notice of the approximate date of the start of the move or disposition of the personal property and an inventory of the items to be moved. However, the agency may waive this notice requirement after documenting its file accordingly.

(b) Permit the agency to make reasonable and timely inspections of the personal property at both the displacement and replacement sites and to monitor the move.

(8) Transfer of ownership (nonresidential). Upon request and in accordance with applicable law, the claimant shall transfer to the agency ownership of any personal property that has not been moved, sold, or traded in.

(B) Fixed payment for moving expenses-residential moves. Any person displaced from a dwelling or a seasonal residence or a dormitory style room is entitled to receive a fixed moving cost payment as an alternative to a payment for actual moving and related expenses under paragraph (A) of this rule. This payment shall be determined according to the fixed residential moving cost schedule approved by the federal highway administration and published in the federal register on a periodic basis. The payment to a person with minimal personal possessions who is in occupancy of a dormitory style room or a person whose residential move is performed by an agency at no cost to the person shall be limited to the amount stated in the most recent edition of the fixed residential moving cost schedule.

(C) Related nonresidential eligible expenses. The following expenses, in addition to those provided by paragraph (A) of this rule for moving personal property, shall be provided if the agency determines that they are actual, reasonable and necessary:

(1) Connection to available nearby utilities from the right-of-way to improvements at the replacement site.

(2) Professional services performed prior to the purchase or lease of a replacement site to determine its suitability for the displaced person's business operation including but not limited to, soil testing, feasibility and marketing studies (excluding any fees or commissions directly related to the purchase or lease of such site). At the discretion of the agency a reasonable pre-approved hourly rate may be established.

(3) Impact fees or one-time assessments for anticipated heavy utility usage, as determined necessary by the agency.

(D) Reestablishment expenses-nonresidential moves. In addition to the payments available under paragraphs (A) and (C) of this rule, a small business, as defined in paragraph (B)(26) of rule 5501:2-5-01 of the Administrative Code, farm or nonprofit organization is entitled to receive a payment, not to exceed ten thousand dollars, for expenses actually incurred in relocating and reestablishing such small business, farm or nonprofit organization at a replacement site.

(1) Eligible expenses. Re-establishment expenses must be reasonable and necessary, as determined by the agency. They include, but are not limited to, the following:

(a) Repairs or improvements to the replacement real property as required by federal, state or local law, code or ordinance.

(b) Modifications to the replacement property to accommodate the business operation or make replacement structures suitable for conducting the business.

(c) Construction and installation costs for exterior signing to advertise the business.

(d) Redecoration or replacement of soiled or worn surfaces at the replacement site, such as paint, paneling, or carpeting.

(e) Advertisement of replacement location.

(f) Estimated increased costs of operation during the first two years at the replacement site for such items as:

(i) Lease or rental charges;

(ii) Personal or real property taxes;

(iii) Insurance premiums; and

(iv) Utility charges, excluding impact fees.

(g) Other items that the agency considers essential to the reestablishment of the business.

(2) Ineligible expenses. The following is a nonexclusive listing of reestablishment expenditures not considered to be reasonable, necessary, or otherwise eligible:

(a) Purchase of capital assets, such as, office furniture, filing cabinets, machinery, or trade fixtures.

(b) Purchase of manufacturing materials, production supplies, product inventory, or other items used in the normal course of the business operation.

(c) Interest on money borrowed to make the move or purchase the replacement property.

(d) Payment to a part-time business in the home which does not contribute materially (defined in paragraph (B)(7) of rule 5501:2-5-01 of the Administrative Code) to the household income.

(E) Fixed payment for moving expenses - nonresidential moves.

(1) Business. A displaced business may be eligible to choose a fixed payment in lieu of the payments for actual moving and related expenses, and actual reasonable re-establishment expenses provided by paragraphs (A), (C) and (D) of this rule. Such fixed payment, except for payment to a nonprofit organization, shall equal the average annual net earnings of the business, as computed in accordance with paragraph (E)(5) of this rule, but not less than one thousand dollars nor more than twenty thousand dollars. The displaced business is eligible for the payment if the agency determines that:

(a) The business owns or rents personal property which must be moved in connection with such displacement and for which an expense would be incurred in such move and, the business vacates or relocates from its displacement site;

(b) The business cannot be relocated without a substantial loss of its existing patronage (clientele or net earnings). A business is assumed to meet this test unless the agency determines that it will not suffer a substantial loss of its existing patronage;

(c) The business is not part of a commercial enterprise having more than three other entities which are not being acquired by the agency, and which are under the same ownership and engaged in the same or similar business activities.

(d) The business is not operated at a displacement dwelling solely for the purpose of renting such dwelling to others;

(e) The business is not operated at the displacement site solely for the purpose of renting the site to others; and

(f) The business contributed materially to the income of the displaced person during the two taxable years prior to displacement. (see paragraph (B)(7) of rule 5501:2-5-01 of the Administrative Code)

(2) Determining the number of businesses. In determining whether two or more displaced legal entities constitute a single business, which is entitled to only one fixed payment, all pertinent factors shall be considered, including the extent to which:

(a) The same premises and equipment are shared;

(b) Substantially identical or interrelated business functions are carried out and business and financial affairs are commingled;

(c) The entities are held out to the public, and to those customarily dealing with them, as one business; and

(d) The same person or closely related persons own, control, or manage the affairs of the entities.

(3) Farm operation. A displaced farm operation (defined in paragraph (B)(13) of rule 5501:2-5-01 of the Administrative Code) may choose a fixed payment, in lieu of the payments for actual moving and related expenses and actual reasonable re-establishment expenses, in an amount equal to its average annual net earnings as computed in accordance with paragraph (E)(5) of this rule, but not less than one thousand dollars nor more than twenty thousand dollars. In the case of a partial acquisition of land, which was a farm operation before the acquisition, the fixed payment shall be made only if the agency determines that:

(a) The acquisition of part of the land caused the operator to be displaced from the farm operation on the remaining land; or

(b) The partial acquisition caused a substantial change in the nature of the farm operation.

(4) Nonprofit organization. A displaced nonprofit organization may choose a fixed payment of one thousand dollars to twenty thousand dollars, in lieu of the payments for actual moving and related expenses and actual reasonable re-establishment expenses, if the agency determines that it cannot be relocated without a substantial loss of existing patronage (membership or clientele). A nonprofit organization is assumed to meet this test, unless the agency demonstrates otherwise. Any payment in excess of one thousand dollars must be supported with financial statements for the two twelve month periods prior to the acquisition. The amount to be used for the payment is the average of two years annual gross revenues less administrative expenses.

(5) Average annual net earnings of a business or farm operation. The average annual net earnings of a business or farm operation are one-half of its net earnings before federal, state, and local income taxes during the two taxable years immediately prior to the taxable year in which it was displaced. If the business or farm was not in operation for the full two taxable years prior to displacement, net earnings shall be based on the actual period of operation at the displacement site during the two taxable years prior to displacement, projected to an annual rate. Average annual net earnings may be based upon a different period of time when the agency determines it to be more equitable. Net earnings include any compensation obtained from the business or farm operation by its owner, the owner's spouse, and dependents. The displaced person shall furnish the agency proof of net earnings through income tax returns, certified financial statements, or other reasonable evidence, which the agency determines is satisfactory.

(F) Discretionary utility relocation payments.

(1) Whenever a program or project undertaken by a displacing Agency causes the relocation of a utility facility (see paragraph (B)(32) of rule 5501:2-5-01 of the Administrative Code) and the relocation of the facility creates extraordinary expenses for its owner, the displacing agency may, at its option, make a relocation payment to the owner for all or part of such expenses, if the following criteria are met:

(a) The utility facility legally occupies state or local government property, or property over which the state or local government has an easement or right-of-way;

(b) The utility facility's right of occupancy thereon is pursuant to State law or local ordinance specifically authorizing such use, or where such use and occupancy has been granted through a franchise, use and occupancy permit, or other similar agreement;

(c) Relocation of the utility facility is required by and is incidental to the primary purpose of the project or program undertaken by the displacing agency;

(2) For the purposes of this paragraph, the term extraordinary expenses means those expenses which, in the opinion of the displacing agency, are not routine or predictable expenses relating to the utility's occupancy of rights-of-way, and are not ordinarily budgeted as operating expenses, unless the owner of the utility facility has explicitly and knowingly agreed to bear such expenses as a condition for use of the property, or has voluntarily agreed to be responsible for such expenses.

(3) A relocation payment to a utility facility owner for moving costs under this section may not exceed the cost to functionally restore the service disrupted by the federally-assisted program or project, less any increase in value of the new facility and salvage value of the old facility. The displacing agency and the utility facility owner shall reach prior agreement on the nature of the utility relocation work to be accomplished, the eligibility of the work for reimbursement, the responsibilities for financing and accomplishing the work, and the method of accumulating costs and making payment.

(4) The Ohio department of transportation shall reimburse a utility facility owner for relocation costs necessitated by the construction of a highway project only in the event that the utility can present evidence satisfactory to the state that the utility has a fee interest, easement interest, or other real property estate in the real property it occupies, which vested in the utility prior to the state acquiring its interest therein. The utility shall present evidence satisfactory to the state substantiating the cost of relocation. The director may audit all financial records which the director determines necessary to verify such actual costs.

(a) As used in this section:

(i) "Utility" includes publicly, privately, and cooperatively owned utilities that are subject to authority of the public utilities commission of Ohio.

(ii) "Cost of relocation" includes the actual cost paid by a utility directly attributable to relocation after deducting any increase in the value of the new facility and any salvage value derived from the old facility.

Effective: 01/09/2014
R.C. 119.032 review dates: 10/25/2013 and 01/01/2019
Promulgated Under: 111.15
Statutory Authority: 163.58
Rule Amplifies: 163.53
Prior Effective Dates: 09/26/1977, 07/10/1992, 04/23/2000, 04/3/2004, 01/08/2007

5501:2-5-04 Replacement housing payments.

(A) Replacement housing payment for one hundred eighty-day homeowner-occupants.

(1) Eligibility: a displaced person is eligible for the replacement housing payment for a one hundred eighty-day homeowner occupant if the person:

(a) Has actually owned and occupied the displacement dwelling for not less than one hundred eighty days immediately prior to the initiation of negotiations; and

(b) Purchases and occupies a decent, safe, and sanitary replacement dwelling within one year after the later of the following dates (except that the agency may extend such one year period for good cause):

(i) The date the person receives final payment for the displacement dwelling or in the case of condemnation, the date the full amount of the estimate of just compensation is deposited in the court; or

(ii) The date the displacing agency's obligation to have at least one comparable dwelling available to the displaced person is met.

(2) Amount of payment: the replacement housing payment for an eligible one hundred eighty-day homeowner-occupant may not exceed twenty-two thousand five hundred dollars. (see also paragraph (D) of this rule.) The payment under this rule is limited to the amount necessary to relocate to a comparable replacement dwelling within one year from the date the displaced homeowner occupant is paid for the displacement dwelling, or the date a comparable replacement dwelling is made available to such person, whichever is later. The payment shall be the sum of:

(a) The amount by which the cost of a replacement dwelling exceeds the acquisition cost of a displacement dwelling, as determined in accordance with paragraph (A)(3) of this rule; and

(b) The increased interest costs and other debt service costs which are incurred in connection with the mortgage(s) on the replacement dwelling, as determined in accordance with paragraph (A)(4) of this rule; and

(c) The reasonable expenses incidental to the purchase of the replacement dwelling as determined in accordance with paragraph (A)(5) of this rule.

(3) Price differential

(a) Basic computation: the price differential to be paid under paragraph (A)(2)(a) of this rule, is the amount which must be added to the acquisition cost of the displacement dwelling and site. See paragraphs (B)(11) and (B)(12) of rule 5501:2-5-01 of the Administrative Code to provide a total amount equal to the lesser of:

(i) The reasonable cost of a comparable replacement dwelling as determined in accordance with paragraph (C)(1) of this rule; or

(ii) The purchase price of the decent, safe, and sanitary replacement dwelling actually purchased and occupied by the displaced person.

(b) Owner retention of displacement dwelling: if the owner retains ownership of his or her dwelling, moves it from the displacement site, and reoccupies it on a replacement site, the purchase price of the replacement dwelling shall be the total of:

(i) The cost of moving and restoring the dwelling to a condition comparable to that prior to the move; and

(ii) The cost of making the unit a decent, safe, and sanitary replacement dwelling; and

(iii) The current fair market value for residential use of the replacement dwelling site, unless the claimant rented the displacement site and there is a reasonable opportunity for the claimant to rent a suitable replacement site; and

(iv) The retention value of the dwelling, if such retention value is reflected in the "acquisition cost" used when computing the replacement housing payment.

(4) Increased mortgage interest costs: the displacing agency shall determine the factors to be used in computing the amount to be paid to a displaced person for increased interest costs (as defined in paragraph (A)(2)(b) of this rule). The payment for increased mortgage interest cost shall be the amount that will reduce the mortgage balance on a new mortgage to an amount that could be amortized with the same monthly payment for principal and interest as that for the mortgage(s) on the displacement dwelling. In addition, payments shall include other debt service costs, if not paid as incidental costs, and shall be based only on bonafide mortgages that were valid liens on the displacement dwelling for at least one hundred eighty days prior to the initiation of negotiations. Paragraphs (A)(4)(a) to (A)(4)(e) of this rule shall apply to the computation of the increased mortgage interest costs payment, which payment shall be contingent upon a mortgage being placed on the replacement dwelling.

(a) The payment shall be based on the unpaid mortgage balance(s) on the displacement dwelling; however, in the event the person obtains a smaller mortgage than the mortgage balance(s) computed in the buydown determination, the payment will be prorated and reduced accordingly. In the case of a home equity loan, the unpaid balance shall be that balance which existed one hundred eighty days prior to the initiation of negotiations or the balance on the date of acquisition, whichever is less.

(b) The payment shall be based on the remaining term of the mortgage(s) on the displacement dwelling or the term of the new mortgage, whichever is shorter.

(c) The interest rate on the new mortgage used in determining the amount of the payment shall not exceed the prevailing fixed interest rate for conventional mortgages currently charged by mortgage lending institutions in the area in which the replacement dwelling is located.

(d) Purchaser's points and loan origination or assumption fees, but not seller's points, shall be paid to the extent:

(i) They are not paid as incidental expenses;

(ii) They do not exceed rates normal to similar real estate transactions in the area;

(iii) The agency determines them to be necessary; and

(iv) The computation of such points and fees shall be based on the unpaid mortgage balance on the displacement dwelling less the amount determined for the reduction of such mortgage balance under this rule.

(e) The displaced person shall be advised of the approximate amount of this payment and the conditions that must be met to receive the payment as soon as the facts relative to the person's current mortgage(s) are known and the payment shall be made available at or near the time of closing on the replacement dwelling in order to reduce the new mortgage as intended.

(5) Incidental expenses: the incidental expenses to be paid under this rule are those necessary and reasonable costs actually incurred by the displaced person incident to the purchase of a replacement dwelling, and customarily paid by the buyer, including:

(a) Legal, closing and related costs including those for title search, preparing conveyance instruments, notary fees, preparing surveys and plats, and recording fees.

(b) Lender, FHA or VA application and appraisal fees.

(c) Loan origination or assumption fees that do not represent prepaid interest.

(d) Professional home inspection certification of structural soundness and termite inspection.

(e) Credit report.

(f) Owner's and mortgagee's evidence of title; e.g., title insurance, not to exceed the costs for a comparable replacement dwelling.

(g) Escrow agent's fee.

(h) State revenue or documentary stamps, sales or transfer taxes (not to exceed the costs for a comparable replacement dwelling).

(i) Such other costs as the agency determines to be incidental to the purchase.

(6) Rental assistance payment for one hundred eighty-day homeowner: a one hundred eighty-day homeowner occupant who could be eligible for a replacement housing payment under this rule, but elects to rent a replacement dwelling, is eligible for a rental assistance payment. The amount of the rental assistance payment is based on a determination of market rent for the acquired dwelling compared to a comparable rental dwelling available on the market. The difference, if any, is computed in accordance with paragraph (B)(2) of this rule, except that the limit of five thousand two hundred-fifty dollars does not apply, and disbursed in accordance with paragraph (B)(2)(c) of this rule. Under no circumstances would the rental assistance payment exceed the amount that could have been received under paragraph (A)(2) of this rule had the one hundred eighty day homeowner elected to purchase and occupy a comparable replacement dwelling.

(B) Replacement housing payment for ninety-day occupants

(1) Eligibility: a tenant or owner-occupant displaced from a dwelling is entitled to a payment not to exceed five thousand two hundred fifty dollars for rental assistance, as computed in accordance with paragraph (B)(2) of this rule, or downpayment assistance, as computed in accordance with paragraph (B)(3) of this rule, if such displaced person:

(a) Has actually and lawfully occupied the displacement dwelling for at least ninety days immediately prior to the initiation of negotiations; and

(b) Has rented, or purchased, and occupied a decent, safe, and sanitary replacement dwelling within one year (unless the agency extends this period for good cause) after:

(i) For a tenant, the date he or she moves from the displacement dwelling, or

(ii) For an owner-occupant, the later of:

(a) The date he or she receives final payment for the displacement dwelling, or in the case of condemnation, the date the full amount of the estimate of just compensation is deposited with the court; or

(b) The date he or she moves from the displacement dwelling.

(2) Rental assistance payment

(a) Amount of payment: an eligible displaced person who rents a replacement dwelling is entitled to a payment not to exceed five thousand two hundred fifty for rental assistance. (see also paragraph (D) of this rule.) Such payment shall be forty-two times the amount obtained by subtracting the base monthly rental for the displacement dwelling from the lesser of:

(i) The monthly rent and estimated average monthly cost of utilities for a comparable replacement dwelling; or

(ii) The monthly rent and estimated average monthly cost of utilities for the decent, safe, and sanitary replacement dwelling actually occupied by the displaced person.

(b) Base monthly rental for displacement dwelling: the base monthly rental for the displacement dwelling is the lesser of:

(i) The average monthly cost for rent and utilities at the displacement dwelling for a reasonable period prior to displacement, as determined by the agency. (For a homeowner-occupant, use the fair market rent for the displacement dwelling. For a tenant who paid little or no rent for the displacement dwelling, use the fair market rent, unless its use would result in a hardship because of the person's income or other circumstances); or

(ii) Thirty per cent of the displaced person's average monthly gross household income if the amount is classified as "low income" by the U.S. department of housing and urban development's annual survey of income limits for the public housing. The base monthly rental shall be established solely on the criteria in paragraph (B)(2)(b)(i) of this rule for persons with income exceeding the survey's "low income" limits, for homeowner-occupants, for persons refusing to provide appropriate evidence of income, and for persons who are dependents. A full time student or resident of an institution may be assumed to be a dependent, unless the person demonstrates otherwise; or,

(iii) The total of the amounts designated for shelter and utilities if the displaced person is receiving a welfare assistance payment from a program that designates the amounts for shelter and utilities.

(c) Manner of disbursement: a rental assistance payment may, at the agency's discretion, be disbursed in either a lump sum or in installments. However, except as limited by provisions for payment after death, the full amount vests immediately; whether or not there is any later change in the person's income or rent, or in the condition or location of the person's housing.

(3) Down payment assistance payment

(a) Amount of payment: an eligible displaced person who purchases a replacement dwelling is entitled to a downpayment assistance payment in the amount the person would receive under paragraph (B)(2) of this rule if the person rented a comparable replacement dwelling. The minimum payment under this rule shall be five thousand two hundred fifty dollars. However, the payment to a displaced homeowner shall not exceed the amount the owner would receive under paragraph (A)(2) of this rule, if he or she met the one hundred eighty-day occupancy requirement. A displaced person eligible to receive a payment as a one hundred eighty-day owner-occupant is not eligible for this payment.

(b) Application of payment: the full amount of the replacement housing payment for downpayment assistance must be applied to the purchase price of the replacement dwelling and related incidental expenses.

(C) Additional rules governing replacement housing payments

(1) Determining cost of comparable replacement dwelling: the upper limit of a replacement housing payment shall be based on the cost of a comparable replacement dwelling.

(a) If available, at least three comparable replacement dwellings shall be examined and the payment computed on the basis of the dwelling most nearly representative of, and equal to, or better than, the displacement dwelling.

(b) If the site of the comparable replacement dwelling lacks a major exterior attribute of the displacement dwelling site (e.g., the site is significantly smaller or does not contain a swimming pool), the value of such attribute shall be subtracted from the acquisition cost of the displacement dwelling for purposes of computing the payment.

(c) If the acquisition of a portion of a typical residential property causes the displacement of the owner from the dwelling and the remainder is a buildable residential lot, the agency may offer to purchase the entire property. If the owner refuses to sell the remainder to the agency, the fair market value of the remainder may be added to the acquisition cost of the displacement dwelling for purposes of computing the replacement housing payment.

(d) To the extent feasible, comparable replacement dwellings shall be selected from the neighborhood in which the displacement dwelling was located or, if that is not possible, in nearby or similar neighborhoods where housing costs are generally the same or higher.

(e) Multiple occupants of one displacement dwelling. If two or more occupants of the displacement dwelling move to separate replacement dwellings, each occupant is entitled to a reasonable prorated share, as determined by the agency, of any relocation payments that would have been made if the occupants moved together to a comparable replacement dwelling. However, if the agency determines that two or more occupants maintained separate households within the same dwelling, such occupants have separate entitlements to relocation payments.

(f) Deductions from relocation payments. An agency shall deduct the amount of any advance relocation payment from the relocation payment(s) to which a displaced person is otherwise entitled. The agency shall not withhold any part of a relocation payment to a displaced person to satisfy an obligation to any creditor.

(g) Mixed-use and multifamily properties. If the displacement dwelling was part of a property that contained another dwelling unit and/or space used for nonresidential purposes, and/or is located on a lot larger than typical for residential purposes, only that portion of the acquisition payment which is actually attributable to the displacement dwelling shall be considered the acquisition cost when computing the replacement housing payment.

(2) Inspection of replacement dwelling: before making a replacement housing payment or releasing a payment from escrow, the agency or its designated representative shall inspect the replacement dwelling and determine whether it is a decent, safe, and sanitary dwelling.

(3) Purchase of replacement dwelling: a displaced person is considered to have met the requirement to purchase a replacement dwelling, if the person:

(a) Purchases a dwelling; or

(b) Purchases and rehabilitates a substandard dwelling; or

(c) Relocates a dwelling which he or she owns or purchases; or

(d) Constructs a dwelling on a site he or she owns or purchases; or

(e) Contracts for the purchase or construction of a dwelling on a site provided by a builder or on a site the person owns or purchases; or

(f) Currently owns a previously purchased dwelling and site, valuation of which shall be on the basis of current fair market value as determined by the agency.

(4) Occupancy requirements for displacement or replacement dwelling: no person shall be denied eligibility for a replacement housing payment solely because the person is unable to meet the occupancy requirements set forth in these regulations for a reason beyond his or her control, including:

(a) A disaster, an emergency, or an imminent threat to the public health or welfare, as determined by the president, the federal agency funding the project, or the displacing agency; or

(b) Another reason, such as a delay in the construction of the replacement dwelling, military duty, or hospital stay, as determined by the agency.

(5) Conversion of payment: a displaced person who initially rents a replacement dwelling and receives a rental assistance payment is eligible to receive a payment under paragraph (A) or (B)(3) of this rule, if he or she meets the eligibility criteria for such payments, including purchase and occupancy within the prescribed one year period. Any portion of the rental assistance payment that has been disbursed shall be deducted from the payment computed under paragraph (A) or (B)(3) of this rule.

(6) Payment after death: a replacement housing payment is personal to the displaced person and upon his or her death the undisbursed portion of any such payment shall not be paid to the heirs or assigns, except that:

(a) The amount attributable to the displaced person's period of actual occupancy of the replacement housing shall be paid.

(b) Any remaining payment shall be disbursed to the remaining family members of the displaced household in any case in which a member of a displaced family dies.

(c) Any portion of a replacement housing payment necessary to satisfy the legal obligation of an estate in connection with the selection of a replacement dwelling by or on behalf of a deceased person shall be disbursed to the estate.

(d) Insurance proceeds; to the extent necessary to avoid duplicate compensation, the amount of any insurance proceeds received by a person in connection with a loss to the displacement dwelling due to a catastrophic occurrence (fire, flood, etc.) shall be included in the acquisition cost of the displacement dwelling when computing the price differential. (see paragraph (C) of rule 5501:2-5-01 of the Administrative Code)

(D) Replacement housing of last resort

(1) Determination to provide replacement housing of last resort: whenever a program or project cannot proceed on a timely basis because comparable replacement dwellings are not available within the monetary statutory limits for owners or tenants, the agency shall provide additional or alternative assistance under the provisions of this rule. Any decision to provide last resort housing assistance must be adequately justified either:

(a) On a case-by-case basis, for good cause, which means that appropriate consideration has been given to:

(i) The availability of comparable replacement housing in the program or project area; and

(ii) The resources available to provide comparable replacement housing; and

(iii) The individual circumstances of the displaced person; or

(b) By a determination that:

(i) There is little, if any, comparable replacement housing available to displaced persons within an entire program or project area; and, therefore, last resort housing assistance is necessary for the area as a whole; and

(ii) A program or project cannot be advanced to completion in a timely manner without last resort housing assistance; and

(iii) The method selected for providing last resort housing assistance is cost effective, considering all elements which contribute to total program or project costs.

(2) Basic rights of persons to be displaced: notwithstanding any provision of this section, no person shall be required to move from a displacement dwelling unless comparable replacement housing is available to such person. No person may be deprived of any rights the person may have under the Uniform Act, R.C. 163 or this rule. The agency shall not require any displaced person to accept a dwelling provided by the agency under these procedures (unless the agency and the displaced person have entered into a contract to do so) in lieu of any acquisition payment or any relocation payment for which the person may otherwise be eligible.

(3) Methods of providing comparable replacement housing: agencies shall have broad latitude in implementing this section, but implementation shall be for reasonable cost, on a case-by-case basis, unless an exception to case-by-case analysis is justified for an entire project.

(a) The methods of providing replacement housing of last resort include, but are not limited to:

(i) A replacement housing payment in excess of the statutory limits. A rental assistance subsidy under this section may be provided in installments or in a lump sum at the agency's discretion.

(ii) Rehabilitation of and/or additions to an existing replacement dwelling.

(iii) The construction of a new replacement dwelling.

(iv) The provision of a direct loan, which requires regular amortization or deferred repayment. The loan may be unsecured or secured by the real property. The loan may bear interest or be interest free.

(v) The relocation and, if necessary, rehabilitation of a dwelling.

(vi) The purchase of land and/or a replacement dwelling by the agency and subsequent sale or lease to, or exchange with a displaced person.

(vii) The removal of barriers for persons with disabilities.

(b) Under special circumstances, consistent with the definition of a comparable replacement dwelling, modified methods of providing replacement housing of last resort permit consideration of replacement housing based on space and physical characteristics different from those in the displacement dwelling including upgraded, but smaller replacement housing that is decent, safe, and sanitary and adequate to accommodate the individuals or families displaced from marginal or substandard housing with probable functional obsolescence. In no event, however, shall a displaced person be required to move into a dwelling that is not functionally equivalent.

(c) The agency shall provide assistance under this section to a displaced person who is not eligible to receive a replacement housing payment under paragraphs (A) and (B) of this rule because of failure to meet the length of occupancy requirement when comparable replacement rental housing is not available at rental rates within the displaced person's financial means (see paragraph (B)(2)(b)(ii) of this rule). Such assistance shall cover a period of forty-two months.

Effective: 01/09/2014
R.C. 119.032 review dates: 10/25/2013 and 01/01/2019
Promulgated Under: 111.15
Statutory Authority: 163.58
Rule Amplifies: 163.54 , 163.55 , 163.57
Prior Effective Dates: 09/26/1977, 08/12/1980, 07/10/1992, 4/23/2000, 01/08/2007

5501:2-5-05 Mobile homes.

(A) General: this rule describes the requirements governing the provision of replacement housing payments to a person displaced from a mobile home and/or mobile home site who meets the basic eligibility requirements of this rule. Except as modified by this rule, such a displaced person is entitled to a moving expense payment and a replacement housing payment to the same extent and subject to the same requirements as persons displaced from conventional dwellings. Moving cost payments to persons occupying mobile homes are covered in paragraphs (A)(5)(a) to (A)(5)(j) of rule 5501:2-5-03 of the Administrative Code.

(B) Partial acquisition of mobile home park: The acquisition of a portion of a mobile home park property may leave a remaining part of the property that is not adequate to continue the operation of the park. If the agency determines that a mobile home located in the remaining part of the property must be moved as a direct result of the project, the occupant of the mobile home shall be considered to be a displaced person who is entitled to relocation payments and other assistance under this part.

(C) Replacement housing payment for one hundred eighty day mobile homeowner displaced from a mobile home, and/or from the acquired mobile home site.

(1) Eligibility.

An owner-occupant displaced from a mobile home or site is entitled to a replacement housing payment, not to exceed twenty-two thousand five hundred dollars, under paragraph (A) of rule 5501:2-5-04 of the Administrative Code if:

(a) The person occupied the mobile home on the displacement site for at least one hundred eighty days immediately before:

(i) The initiation of negotiations to acquire the mobile home, if the person owned the mobile home and the mobile home is real property;

(ii) The initiation of negotiations to acquire the mobile home site if the mobile home is personal property, but the person owns the mobile home site; or

(iii) The date of the agency's written notification to the owner-occupant that the owner is determined to be displaced from the mobile home as described in paragraphs (C)(1)(i) to (C)(1)(iv) of this rule.

(b) The person meets the other basic eligibility requirements of paragraph (A)(1)(b) of rule 5501:2-5-04 of the Administrative Code; and

(c) The agency acquires the mobile home as real estate, or acquires the mobile home site from the displaced owner, or the mobile home is personal property but the owner is displaced from the mobile home because the agency determines that the mobile home:

(i) Is not, and cannot economically be made decent, safe, and sanitary;

(ii) Cannot be relocated without substantial damage or unreasonable cost;

(iii) Cannot be relocated because there is no available comparable replacement site; or

(iv) Cannot be relocated because it does not meet mobile home park entrance requirements.

(2) Replacement housing payment computation for an one hundred eighty day owner that is displaced from a mobile home. The replacement housing payment for an eligible displaced one hundred eighty day owner is computed as described at paragraph (A)(2) of rule 5501:2-5-04 of the Administrative Code incorporating the following, as applicable:

(a) If the agency acquires the mobile home as real estate and/or acquires the owned site, the acquisition cost used to compute the price differential payment is the actual amount paid to the owner as just compensation for the acquisition of the mobile home, and/or site, if owned by the displaced mobile homeowner.

(b) If the agency does not purchase the mobile home as real estate but the owner is determined to be displaced from the mobile home and eligible for a replacement housing payment based on paragraph (C)(1)(c)(iii) of this rule, the eligible price differential payment for the purchase of a comparable replacement mobile home, is the lesser of the displaced mobile homeowner's net cost to purchase a replacement mobile home (i.e., purchase price of the replacement mobile home less trade-in or sale proceeds of the displacement mobile home); or, the cost of the agency's selected comparable mobile home less the agency's estimate of the salvage or trade-in value for the mobile home from which the person is displaced.

(c) If a comparable replacement mobile home site is not available, the price differential payment shall be computed on the basis of the reasonable cost of a conventional comparable replacement dwelling.

(3) Rental assistance payment for an one hundred eighty day owner-occupant that is displaced from a leased or rented mobile home site. If the displacement mobile home site is leased or rented, a displaced one hundred eighty day owner-occupant is entitled to a rental assistance payment computed as described in paragraph (A)(6) of rule 5501:2-5-04 of the Administrative Code. This rental assistance payment may be used to lease a replacement site; may be applied to the purchase price of a replacement site; or may be applied, with any replacement housing payment attributable to the mobile home, to the purchase of a replacement mobile home or conventional decent, safe and sanitary dwelling.

(4) Owner-occupant not displaced from the mobile home. If the agency determines that a mobile home is personal property and may be relocated to a comparable replacement site, but the owner-occupant elects not to do so, the owner is not entitled to a replacement housing payment for the purchase of a replacement mobile home. However, the owner is eligible for moving costs described at rule 5501:2-5-03 of the Administrative Code and any replacement housing payment for the purchase or rental of a comparable site as described in this paragraph or paragraph (D) of this rule as applicable.

(D) Replacement housing payment for ninety day mobile home occupants: housing payment for ninety day mobile home occupants A displaced tenant or owner-occupant of a mobile home and/or site is eligible for a replacement housing payment, not to exceed five thousand two hundred-fifty dollars, under paragraph (B) of this rule if:

(1) The person actually occupied the displacement mobile home on the displacement site for at least ninety days immediately prior to the initiation of negotiations;

(2) The person meets the other basic eligibility requirements at paragraph (B)(1) of rule 5501:2-5-04 of the Administrative Code; and

(3) The agency acquires the mobile home and/or mobile home site, or the mobile home is not acquired by the agency but the agency determines that the occupant is displaced from the mobile home because of one of the circumstances described at paragraph (C)(1)(c) of this rule.

Effective: 01/09/2014
R.C. 119.032 review dates: 10/25/2013 and 01/01/2019
Promulgated Under: 111.15
Statutory Authority: 163.58
Rule Amplifies: 163.54 , 163.55 , 163.57
Prior Effective Dates: 09/26/1977, 07/10/1992, 04/23/2000, 01/08/2007

5501:2-5-06 Real property acquisition.

(A) Applicability of acquisition requirements:

(1) Programs and projects receiving federal financial assistance. The requirements of this rule apply to any acquisition of real property for programs and projects where there is federal or state financial assistance in any part of project costs or any acquisition of real property under Chapter 163. of the Revised Code except for the acquisitions described in paragraphs (A)(1)(a) to (A)(1)(d) of this rule. The relocation assistance provisions in this rule are applicable to any tenants that must move as a result of an acquisition described in paragraphs (A)(1)(a) to (A)(1)(d) of this rule. Such tenants are considered displaced persons. (see paragraph (B)(9) of rule 5501:2-5-01 of the Administrative Code)

(a) The requirements of this rule do not apply to acquisitions that meet all of the following conditions in paragraphs (A)(1)(a)(i) to (A)(1)(a)(iv) of this rule:

(i) No specific site or property needs to be acquired, although the agency may limit its search for alternative sites to a general geographic area. Where an agency wishes to purchase more than one site within a general geographic area on this basis, all owners are to be treated similarly.

(ii) The property to be acquired is not part of an intended, planned, or designated project area where all or substantially all of the property within the area is to be acquired within specific time limits.

(iii) The agency will not acquire the property if negotiations fail to result in an amicable agreement, and the owner is so informed in writing.

(iv) The agency will inform the owner in writing of what it believes to be the market value of the property.

(b) Acquisitions for programs or projects undertaken by an agency or person that receives federal financial assistance but does not have authority to acquire property by eminent domain, provided that such agency or person shall:

(i) Prior to making an offer for the property, clearly advise the owner that it is unable to acquire the property if negotiations fail to result in an agreement; and

(ii) Inform the owner in writing of what it believes to be the market value of the property.

(c) The acquisition of real property from a federal agency, state, or state agency, if the agency desiring to make the purchase does not have authority to acquire the property through condemnation.

(d) The acquisition of real property by a cooperative from a person who, as a condition of membership in the cooperative, has agreed to provide without charge any real property that is needed by the cooperative.

(2) Less-than-full-fee interest in real property.

(a) The provisions of this subpart apply when acquiring fee title subject to retention of a life estate or a life use; to acquisition by leasing where the lease term, including option(s) for extension, is fifty years or more; and to the acquisition of permanent and/or temporary easements necessary for the project. However, the agency may apply these regulations to any less-than-full-fee acquisition that, in its judgment, should be covered.

(b) The provisions of this subpart do not apply to temporary easements or permits needed solely to perform work intended exclusively for the benefit of the property owner, which work may not be done if agreement cannot be reached.

(3) Federally-assisted and state-assisted projects.

For projects receiving federal or state financial assistance, the provisions of paragraphs (B), (C), (D) and (E) of this rule apply.

(B) Basic acquisition policies

(1) Expeditious acquisition: The agency shall make every reasonable effort to acquire the real property expeditiously by negotiation.

(2) Notice to owner: As soon as feasible, the agency shall notify the owner in writing of the agency's interest in acquiring the real property and the basic protections provided to the owner by law and this rule. (see paragraph (C) of rule 5501:2-5-02 of the Administrative Code)

(3) Appraisal, waiver thereof, and invitation to owner:

(a) Before the initiation of negotiations the real property to be acquired shall be appraised, except as provided in paragraph (B)(3)(b) of this rule, and the owner, or the owner's designated representative, shall be given an opportunity to accompany the appraiser during the appraiser's inspection of the property.

(b) An appraisal is not required if:

(i) The owner is donating the property and releases the agency from its obligation to appraise the property; or

(ii) The agency determines that an appraisal is unnecessary because the valuation problem is uncomplicated and the anticipated value of the proposed acquisition is estimated at ten thousand dollars or less, based on a review of available data.

(a) When an appraisal is determined to be unnecessary, the agency shall prepare a waiver valuation. Persons preparing or reviewing a waiver valuation are precluded from complying with standard rules 1, 2 and 3 of the "Uniform Standards of Professional Appraisal Practice" (USPAP), as amended at the time of the effective date of this rule, as promulgated by the "Appraisal Standards Board" of the Appraisal Foundation, which can be found at http://www.uspap.org

(b) The person performing the waiver valuation must have sufficient understanding of the local real estate market to be qualified to make the waiver valuation.

(4) Establishment and offer of just compensation: Before the initiation of negotiations, the agency shall establish an amount which it believes is just compensation for the real property. The amount shall not be less than the approved appraisal of the market value of the property, taking into account the value of allowable damages or benefits to any remaining property. An agency official must establish the amount believed to be just compensation (see paragraph (D) of this rule). Promptly thereafter, the agency shall make a written offer to the owner to acquire the property for the full amount believed to be just compensation.

(5) Summary statement: Along with the initial written purchase offer, the owner shall be given a written statement of the basis for the offer of just compensation, which shall include:

(a) A statement of the amount offered as just compensation. In the case of a partial acquisition, the compensation for the real property to be acquired and the compensation for damages, if any, to the remaining real property shall be separately stated.

(b) A description and location identification of the real property and the interest in the real property to be acquired.

(c) An identification of the buildings, structures, and other improvements (including removable building equipment and trade fixtures) which are included as part of the offer of just compensation. Where appropriate, the statement shall identify any other separately held ownership interest in the property, e.g., a tenant-owned improvement, and indicate that such interest is not covered by this offer.

(6) Basic negotiation procedures: The agency shall make all reasonable efforts to contact the owner or the owner's representative and discuss its offer to purchase the property, including the basis for the offer of just compensation and explain its acquisition policies and procedures, including its payment of incidental expenses in accordance with paragraph (F) of this rule. The owner shall be given reasonable opportunity to consider the offer and present material which the owner believes is relevant to determining the value of the property and to suggest modification in the proposed terms and conditions of the purchase. The agency shall consider the owner's presentation.

(7) Updating offer of just compensation: If the information presented by the owner, or a material change in the character or condition of the property, indicates the need for new appraisal information, or if a significant delay has occurred since the time of the appraisal(s) of the property, the agency shall have the appraisal(s) updated or obtain a new appraisal(s). If the latest appraisal information indicates that a change in the purchase offer is warranted, the agency shall promptly reestablish just compensation and offer that amount to the owner in writing.

(8) Coercive action: The agency shall not advance the time of condemnation, or defer negotiations or condemnation or the deposit of funds with the court, or take any other coercive action in order to induce an agreement on the price to be paid for the property.

(9) Administrative settlement: The purchase price for the property may exceed the amount offered as just compensation when reasonable efforts to negotiate an agreement at that amount have failed and an authorized agency official approves such administrative settlement as being reasonable, prudent, and in the public interest. A written justification shall be prepared, which states what available information, including trial risks, supports such a settlement. Relocation payments are not an acquisition cost and cannot be used to support an administrative settlement in whole or in part.

(10) Payment before taking possession: Before requiring the owner to surrender possession of the real property, the agency shall pay the agreed purchase price to the owner, or in the case of a condemnation, deposit with the court, for the benefit of the owner, an amount not less than the agency's approved appraisal of the market value of such property, or the court award of compensation in the condemnation proceeding for the property. In exceptional circumstances, with the prior approval of the owner, the agency may obtain a right-of-entry for construction purposes before making payment available to an owner.

(11) Uneconomic remnant: If the acquisition of only a portion of a property would leave the owner with an uneconomic remnant, the agency shall offer to acquire the uneconomic remnant along with the portion of the property needed for the project (see paragraph (B)(28) of rule 5501:2-5-01 of the Administrative Code).

(12) Inverse condemnation: If the agency intends to acquire any interest in real property by exercise of the power of eminent domain, it shall institute formal condemnation proceedings and not intentionally make it necessary for the owner to institute legal proceedings to prove the fact of the taking of the real property.

(13) Fair rental: If the agency permits a former owner or tenant to occupy the real property after acquisition for a short term, or a period subject to termination by the agency on short notice, the rent shall not exceed the fair market rent for such occupancy.

(14) Conflict of interest

(a) The appraiser, review appraiser or person performing the waiver valuation shall not have any interest, direct or indirect, in the real property being valued for the agency. Compensation for making an appraisal or waiver valuation shall not be based on the amount of the valuation estimate.

(b) No person shall attempt to unduly influence or coerce an appraiser, review appraiser, or waiver valuation preparer regarding any valuation or other aspect of an appraisal, review or waiver valuation. Persons functioning as negotiators may not supervise or formally evaluate the performance of any appraiser or review appraiser performing appraisal or appraisal review work.

(c) An appraiser, review appraiser, or waiver valuation preparer making an appraisal, appraisal review or waiver valuation may be authorized by the agency to act as a negotiator for real property for which that person has made an appraisal, appraisal review or waiver valuation only if the offer to acquire the property is ten thousand dollars, or less.

(C) Criteria for appraisals

(1) Appraisal requirements: This rule sets forth the requirements for real property acquisition appraisals. Appraisals are to be prepared according to these requirements, which are intended to be consistent with the uniform standards of professional appraisal practice (USPAP). The agency may have appraisal requirements that supplement these requirements, including, to the extent appropriate, the uniform appraisal standards for federal land acquisition (UASFLA).

(a) The agency acquiring real property has a legitimate role in contributing to the appraisal process, especially in developing the scope of work and defining the appraisal problem. The scope of work and development of an appraisal under these requirements depends on the complexity of the appraisal problem.

(b) The agency has the responsibility to assure that the appraisals it obtains are relevant to its program needs. The agency shall develop minimum standards for appraisals consistent with established and commonly accepted appraisal practice for those acquisitions which, by virtue of their low value or simplicity, do not require the in-depth analysis and presentation necessary in a detailed appraisal. A detailed appraisal shall be prepared for all other acquisitions. A detailed appraisal shall reflect uspap and to the extent appropriate, the uasfla. All appraisals shall reflect established and commonly accepted appraisal practice, and as a minimum, complies with the definition of appraisal in paragraph (B)(3) of rule 5501:2-5-01 of the Administrative Code and the five following requirements:

(i) An adequate description of the physical characteristics of the property being appraised (and, in the case of a partial acquisition, an adequate description of the remaining property), including items identified as personal property, a statement of the known and observed encumbrances, if any, title information, location, zoning, present use, an analysis of highest and best use, and at least a five year sales history of the property.

(ii) All relevant and reliable approaches to value consistent with established appraisal practices including published appraisal practices of the lead agency. If the appraiser uses more than one approach, there shall be an analysis and reconciliation of approaches to value used that is sufficient to support the appraiser's opinion of value.

(iii) A description of comparable sales, including a description of all relevant physical, legal, and economic factors such as parties to the transaction, source and method of financing, and verification by a party involved in the transaction.

(iv) A statement of the value of the real property to be acquired and, for a partial acquisition, a statement of the value of the damages and benefits, if any, to the remaining real property, where appropriate.

(v) The effective date of valuation, date of appraisal, signature, and certification of the appraiser.

(2) Influence of the project on just compensation: The appraiser shall disregard any decrease or increase in the market value of the real property caused by the project for which the property is to be acquired, or by the likelihood that the property would be acquired for the project, other than that due to physical deterioration within the reasonable control of the owner.

(3) Owner retention of improvements.: If the owner of a real property improvement is permitted to retain it for removal from the project site, the amount to be offered for the interest in the real property to be acquired shall be not less than the difference between the amount determined to be just compensation for the owner's entire interest in the real property and the salvage value (defined in paragraph (B)(25) of rule 5501:2-5-01 of the Administrative Code) of the retained improvement.

(4) Qualifications of appraisers and review appraisers:

(a) The agency shall establish criteria for determining the minimum qualifications and competency of appraisers and review appraisers. Qualifications shall be consistent with the scope of work for the assignment. The agency shall review the experience, education, training, certification/licensing, designation(s) and other qualifications of appraisers, and review appraisers, and use only those determined by the agency to be qualified.

(b) If the agency uses a contract (fee) appraiser to perform the appraisal, such appraiser shall be state licensed or certified in accordance with title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) ( 12 U.S.C. 3331 - 3355 ). Contract appraisers and review appraisers must also be pre-approved by the Ohio department of transportation before the acquiring agency may enter into a contract for services.

(D) Review of appraisals: the agency shall have an appraisal review process and, at a minimum:

(1) A qualified review appraiser (see paragraphs (C)(4)(a) and (C)(4)(b) of this rule shall examine the presentation and analysis of market information in all appraisals to assure that they meet the definition of appraisal found in paragraph (B)(3) of rule 5501:2-5-01 of the Administrative Code, appraisal requirements found in paragraph (C) of this rule and other applicable requirements, including, to the extent appropriate, the uasfla, and support the appraiser's opinion of value. The level of review analysis depends on the complexity of the appraisal problem. As needed, the review appraiser shall, prior to acceptance, seek necessary corrections or revisions. The review appraiser shall identify each appraisal report as recommended (as the basis for the establishment of the amount believed to be just compensation), accepted (meets all requirements, but not selected as recommended or approved), or not accepted.

(2) If the review appraiser is unable to recommend (or approve) an appraisal as an adequate basis for the establishment of the offer of just compensation, and it is determined by the acquiring agency that it is not practical to obtain an additional appraisal, the review appraiser may, as part of the review, present and analyze market information in conformance with paragraph (C) of this rule to support a recommended (or approved) value.

(3) The review appraiser shall prepare a written report that identifies the appraisal reports reviewed and documents the findings and conclusions arrived at during the review of the appraisal(s). Any damages or benefits to any remaining property shall be identified in the review appraiser's report. The review appraiser shall also prepare a signed certification that states the parameters of the review. The certification shall state the approved value, and, if the review appraiser is authorized to do so, the amount believed to be just compensation for the acquisition.

(E) Acquisition of tenant-owned improvements

(1) Acquisition of improvements: when acquiring any interest in real property, the agency shall offer to acquire at least an equal interest in all buildings, structures, or other improvements located upon the real property to be acquired, which it requires to be removed or which it determines will be adversely affected by the use to which such real property will be put. This shall include any improvement of a tenant-owner who has the right or obligation to remove the improvement at the expiration of the lease term.

(2) Improvements considered to be real property: any building, structure, or other improvement, which would be considered to be real property if owned by the owner of the real property on which it is located, shall be considered to be real property for purposes of this paragraph.

(3) Appraisal and establishment of just compensation for tenant-owned improvements: just compensation for a tenant-owned improvement is the amount which the improvement contributes to the fair market value of the whole property or its salvage value, whichever is greater. (Salvage value is defined in paragraph (B)(25) of rule 5501:2-5-01 of the Administrative Code.)

(4) Special conditions for tenant owned improvements: no payment shall be made to a tenant-owner for any real property improvements unless:

(a) The tenant-owner, in consideration for the payment, assigns, transfers, and releases to the agency all of the tenant-owner's right, title, and interest in the improvement; and

(b) The owner of the real property on which the improvement is located disclaims all interest in the improvement; and

(c) The payment does not result in the duplication of any compensation otherwise authorized by law.

(5) Alternative compensation: nothing in this paragraph shall be construed to deprive the tenant-owner of any right to reject payment under this rule and to obtain payment for such property interests in accordance with other applicable law.

(F) Expenses incidental to transfer of title to the agency

(1) The owner of the real property shall be reimbursed for all reasonable expenses the owner necessarily incurred for:

(a) Recording fees, transfer taxes, documentary stamps, evidence of title, boundary surveys, legal descriptions of the real property, and similar expenses incidental to conveying the real property to the agency. However, the agency is not required to pay costs solely required to perfect the owner's title to the real property; and

(b) Penalty costs and other charges for prepayment of any preexisting recorded mortgage entered into in good faith encumbering the real property; and

(c) The pro rata portion of any prepaid real property taxes which are allocable to the period after the agency obtains title to the property or effective possession of it, whichever is earlier.

(2) Whenever feasible, the agency shall pay these costs directly so that the owner will not have to pay such costs and then seek reimbursement from the agency.

(G) Certain litigation expenses: the owner of the real property shall be reimbursed for any reasonable expenses, including reasonable attorney, appraisal, and engineering fees, which the owner actually incurred because of a condemnation proceeding, if:

(1) The final judgment of the court is that the agency cannot acquire the real property by condemnation; or

(2) The condemnation proceeding is abandoned by the agency other than under an agreed-upon settlement; or

(3) The court having jurisdiction renders a judgment in favor of the owner in an inverse condemnation proceeding or the agency effects a settlement of such proceeding.

(H) Donations: an owner whose real property is being acquired may, after being fully informed by the agency of the right to receive just compensation for such property, donate such property or any part thereof, any interest therein, or any compensation paid therefore, to the agency as such owner shall determine. The agency is responsible for assuring that an appraisal of the real property is obtained unless the owner releases the agency from such obligation, except as provided in paragraph (B)(3)(b) of this rule.

Effective: 01/09/2014
R.C. 119.032 review dates: 10/25/2013 and 01/01/2019
Promulgated Under: 111.15
Statutory Authority: 163.58
Rule Amplifies: 163.52 , 163.59 , 163.60 , 163.61 , 163.62
Prior Effective Dates: 7/10/92, 4/23/00, 12/17/01, 01/08/07, 09/27/10, 01/03/12 (Emer.), 04/16/12