Wis. Admin. Code Department of Administration Adm 92.68 - General
This section describes the general requirements for a replacement housing payment to a person displaced from a dwelling. A person is not required to relocate to the same owner or tenant occupancy status, but has other options as specified under this subchapter. An agency shall make one replacement payment for each dwelling unit, except in the case of joint occupancy of a single family dwelling as specified under sub. (7) (d).
(1) ELIGIBILITY REQUIREMENTS.
(a)
Persons who meet length of
occupancy requirements. An owner or tenant occupant displaced from a
dwelling shall be eligible for a replacement housing payment under this
subchapter, if the person occupied the dwelling 180 days before initiation of
negotiations if an owner, or 90 days if a tenant, except that a 90-day owner
may qualify for a tenant replacement payment.
(b)
Persons who do not meet length of
occupancy requirements. A person who occupies real property before its
acquisition, but does not meet the length of occupancy requirements in par.
(a), may receive a payment equal to the difference between 30% of the person's
average monthly income and the monthly housing costs of a replacement dwelling,
for a period of 48 months, if a replacement rental is not otherwise available
within 30% of the person's average monthly income.
(2) DELAYED OCCUPANCY FOR CONSTRUCTION AND
REHABILITATION. A person who contracts for the construction or rehabilitation
of a replacement dwelling, but cannot occupy it within the time period as
specified under s.
Adm 92.70(1)
(b), shall be considered to have purchased
and occupied the dwelling as of the date of the contract. A replacement payment
may be deferred until occupancy, provided the agency makes payment into an
interest-bearing escrow account for release to a person upon occupancy. An
agency may pay the person before occupancy provided the agency is assured that
occupancy will occur.
(3) PRIOR
OWNERSHIP OF REPLACEMENT DWELLING OR LAND. An agency shall make a replacement
payment to a person based on a dwelling or site owned by the person before
acquisition, if the person occupies the replacement within the time limit as
specified under s.
Adm 92.70(1)
(b), and the dwelling is decent, safe and
sanitary. The fair market value of the land and the dwelling at the time of
displacement shall be used as the actual cost in determining the
payment.
(4) HOUSING INSPECTION.
(a)
Person moves to decent, safe and
sanitary. An agency shall make a replacement payment to a person after
finding a replacement to be decent, safe and sanitary as specified under s.
Adm 92.04.
(b)
Person moves to non-decent, unsafe or unsanitary.
1. An agency shall assist in correcting
deficiencies and, when necessary, refer a displaced person to other decent,
safe and sanitary housing, before terminating assistance or denying a
replacement housing payment.
2. An
agency shall notify a displaced person in writing within 10 days of an
inspection regarding deficiencies to be corrected to receive payment, and shall
make the payment when deficiencies are corrected, or a person moves to another
decent, safe and sanitary dwelling.
(5) STATEMENT OF ELIGIBILITY TO A LENDER. An
agency, upon request of a person to be relocated, shall inform an interested
person or mortgage lender that the person shall be eligible for a replacement
payment upon the purchase or rent and occupancy of a decent, safe and sanitary
dwelling within the applicable time limit.
(6) ADVANCE PAYMENT IN A CONDEMNATION CASE.
An agency shall promptly pay a replacement housing payment. An advance payment
shall be made when an agency determines the acquisition payment will be delayed
because of condemnation proceedings. An agency's maximum offer shall be used as
the acquisition price for calculating the payment. The payment shall be
contingent on a person signing an affidavit of intent that:
(a) The agency shall re-compute a replacement
payment using the acquisition amount set by the court;
(b) The person shall refund to an agency the
excess amount from the judgment when the amount awarded as the acquisition
amount plus the advance payment exceeds the amount actually paid for a
replacement or an agency's determined cost of a comparable replacement. A
person is not required to refund more than the advance payment. A payment shall
be made after condemnation proceedings are completed when a person does not
sign an affidavit.
(7)
CARVE-OUT AND MODIFICATION OF REPLACEMENT PAYMENT COMPUTATION.
(a)
Complete acquisition.
1. Typical size lot. The maximum replacement
payment shall be the selling price of a comparable dwelling on a lot typical
for the area, less the price of the acquired dwelling and the site, when a
dwelling is located on a lot typical for the area.
2. Larger than typical size lot. The maximum
replacement payment shall be the price of a comparable dwelling on a lot
typical for the area, less the price of the acquired dwelling plus the price of
that portion of the acquired land which represents a lot typical for the area,
when the acquired dwelling is located on a lot size larger than typical for the
area.
(b)
Partial acquisition.
1.
Typical size lot. The maximum replacement payment shall be the selling price of
a comparable dwelling on a lot typical for the area, less the value of the
entire property, when an acquired dwelling is located on a lot typical for the
area. An agency may purchase the remainder of the lot when requested by an
owner.
2. Larger than typical size
lot. The maximum replacement payment shall be the selling price of a comparable
dwelling on a lot typical for the area, less the value of that portion which
represents the homesite lot typical for the area, when the dwelling is located
on a lot larger than typical for the area. An agency may purchase the remainder
of the lot when requested by an owner.
3. Remainder property. If a buildable
residential lot or an uneconomic remnant remains after a partial taking and the
owner of the remaining property refuses to sell the remainder to the agency,
the market value of the remainder may be added to the acquisition cost for the
purposes of computing the payment.
Note: Under ss. 32.05(3m) and 32.06(3m), Stats., an agency is required to offer to purchase a remainder if it is an uneconomic remnant.
(c)
Dwelling on land with higher and
better use. The maximum replacement payment shall be the selling price
of a comparable dwelling on a lot typical in the area, less the price of the
acquired dwelling, and the price of that portion which represents a lot typical
for residential use in the area, when the market value is based on a higher and
better use then residential.
(d)
Multiple occupancy of a dwelling.
1. An agency shall make one replacement
payment when there are 2 or more families occupying a dwelling, except when
there is no comparable dwelling available. A replacement payment shall be paid
to each family when a comparable is not available. The payments shall be based
on housing comparable to that occupied by each family plus space shared by
other persons. The acquisition price or rent used for payment computations
shall be the amount each person receives from the total property acquisition
payment, or when tenants, the amount each pays toward the total rent.
2. Two or more individuals who occupy a
dwelling unit, shall be considered as one person for a replacement payment. An
agency shall pay individuals a pro rata share of one payment, based on a
comparable dwelling, regardless of whether the individuals relocate together or
separately, except that payment shall be made to persons moving to decent, safe
and sanitary housing.
(e)
Joint residential and business
use.
1. An agency shall make a
replacement housing payment to a person displaced from a dwelling separately
from a payment required for a business or farm on the same property.
2. An agency shall compute a replacement
housing payment for a person who occupied one unit of a multi-family or a
mixed-use property provided:
a. The comparable
property shall be the same as a property acquired. For example, a comparable
shall be a triplex when the acquired property is a triplex. Dwellings of the
next lower density shall be used when there is no comparable. A single-family
dwelling shall be used as the comparable for a person's dwelling when there are
no comparable multi-family or mixed-use dwellings;
b. The carve-out value of the dwelling shall
be used for a replacement housing determination, not the market value of an
entire property. A replacement housing payment is the difference, if any,
between the value of the acquired dwelling unit and the value of a comparable
dwelling unit in the most comparable property.
(8) NONPROFIT ORGANIZATION. A
nonprofit organization or a religious society which meets the eligibility
requirements applicable for a residential tenant or owner shall be eligible for
a replacement housing payment under this subchapter. A nonprofit organization
or religious society eligible for and claiming a replacement business payment
under this subchapter may not receive a payment under subch. VI.
(9) PAYMENT AMOUNT. A differential payment,
an increased interest payment and an incidental expense payment may not exceed
$25,000 for a 180-day owner-occupant, and a rent differential or downpayment
may not exceed $8,000 for a 90-day occupant, except for the following:
(a) An agency may exceed the amounts in sub.
(9) if necessary to obtain a comparable replacement dwelling;
(b) An agency may provide assistance in
addition to that required in sub. (9) if a comparable dwelling is unavailable
within a person's financial means. The additional assistance may include one or
more of the following methods:
1. A
replacement payment in excess of the amounts in sub. (9);
2. An offer of government assisted housing
which is available and adequate for the needs of the displaced
person;
3. Rehabilitation of or
addition to an existing dwelling;
4. Provision of a direct loan requiring
regular amortization or a deferred repayment;
5. Relocation and rehabilitation of a
dwelling;
6. Purchase of land or a
replacement dwelling by the displacing agency with subsequent sale or lease
back to, or exchange with, a displaced person;
7. Construction of a new dwelling.
8. Change in occupancy status of the
displaced person from tenant to homeowner when it is more cost effective to do
so.
(c) An agency may
limit payment to the amount necessary to relocate to a comparable replacement
within one year from the date the person is paid for the displacement dwelling,
or one year from the date the person is initially offered a comparable
replacement dwelling and advised of replacement payment entitlements, whichever
is later.
Notes
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