PART 777—RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION POLICIES Authority: 39 U.S.C. 401. Source: 51 FR 6983, Feb. 27, 1986, unless otherwise noted. Subpart A—General Policy, Purpose and Definitions § 777.11 General policy. It is the policy of the Postal Service to comply voluntarily with the provisions of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (Pub. L. 91-646; 84 Stat. 1894), hereinafter referred to as the Act. § 777.12 Purpose. The purpose of these regulations is to update policy and procedures for the Postal Service's voluntary compliance with the Act. § 777.13 Definitions. (a) The Act. (b) Business. (1) Conducted primarily for the purchase, sale, lease, and/or rental of personal and/or real property, and for the manufacturing, processing, and/or marketing of products, commodities, and/or any other personal property; or (2) Conducted primarily for the sale of services to the public; or (3) Solely for the purposes of reimbursing moving and related expenses, conducted primarily for outdoor advertising display purposes, when the display(s) must be moved as a result of the project; or (4) Conducted by a nonprofit organization that has established its nonprofit status under applicable Federal or State law. (c) Small business. (d) Comparable Replacement Dwelling. (1) Decent, safe, and sanitary. (2) Functionally similar to the displacement dwelling with particular attention to the number of rooms and living space. (3) In an area that is not subject to unreasonably adverse environmental conditions, is not generally less desirable than the location of the displacement dwelling with respect to public utilities and commercial and public facilities, and is reasonably accessible to the displaced person's place of employment. (4) 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, fences, swimming pools, and greenhouses. (5) Currently available to the displaced person. (6) Within the financial means of the displaced person. (e) Decent, Safe, and Sanitary Dwelling. (1) Be structurally sound, weathertight, and in good repair. (2) Contain a safe electrical wiring system adequate for lighting and other electrical devices. (3) Contain a heating system capable of sustaining a healthful temperature of approximately 70 degrees except in those areas where local climatic conditions do not require such a system. (4) Be adequate in size with respect to the number of rooms and areas of living space needed to accommodate the displaced persons. There shall be a separate, well-lighted and ventilated bathroom that provides privacy to the user and contains a bathtub or shower stall, sink, 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 unit—as opposed to, for example, a room in a boarding house—there shall be a kitchen area that contains a fully usable sink, properly connected to potable hot and cold water and to a sewage draining system, and adequate space and utility service connections for a stove and a refrigerator. (5) Contain unobstructed egress to safe, open space at ground level. (6) For displaced persons who are handicapped, be free of any barriers which would preclude their reasonable ingress, egress, or use of the dwelling. (f) Displaced Person. (i) A person who owns real property, and who is required to move or to move personal property from the real property following Postal Service action to obtain title to, or a leasehold interest in, such real property by the exercise or the threat of the exercise of eminent domain. (ii) A person who is a tenant and who is required to move or to move his or her personal property from real property: (A) Following Postal Service action to obtain the tenant's leasehold interest in such real property by the exercise or the threat of the exercise of eminent domain, or, (B) Where the Postal Service acquires a fee interest in the property (including long-term leases of 50 years or more), as a result of a Postal Service notice of displacement or notice to vacate such real property, provided the tenant was lawfully in possession on the date title to such property transfers to the Postal Service. (The requirement that the tenant occupy such real property on the date title in such real property transfers to the Postal Service may be waived for good cause by the Postal Service.) (C) Where such real property was used to construct a new building for the express purpose of leasing to the Postal Service under circumstances where such tenant would have been a “displaced person” hereunder had the Postal Service itself acquired the land and required the removal of the tenant to undertake construction of the building for Postal Service ownership. (iii) Where the Postal Service acquires either a fee interest or a leasehold interest in the property, a person who is a residential tenant and is or will be required to move or to move his or her property from the real property, in order for the Postal Service to accomplish the project for which the property was acquired, provided such tenant occupies such real property on the date title in such real property transfers to the Postal Service or the date the Postal Service leases or contracts to lease such property, and further provided such tenant was lawfully in possession at the time of the initiation of negotiations. (The requirement that the tenant occupy such real property on the date title in such real property transfers to the Postal Service may be waived for good cause by the Postal Service.) (2) The term “displaced person” covers only persons meeting the requirements in paragraph (f)(1) of this section. The term “displaced person” does not cover the following non-exclusive list of examples. (i) An owner who voluntarily sells his or her real property to the Postal Service, or, (ii) A tenant who voluntarily transfers his or her leasehold interest to the Postal Service without the exercise or the threat of the exercise of eminent domain, or, (iii) A tenant who is not lawfully in possession at the times for which lawful possession is specified in paragraphs (f)(1)(ii)(B) and (f)(1)(iii) of this section. A tenant who was legally required by the lease or otherwise to have moved from the property at the times specified in such paragraphs shall not be considered to be lawfully in possession. (iv) A person who, at the determination of the Postal Service, is not required to relocate permanently, or, (v) A person who, after receiving a notice of displacement or notice to vacate by the Postal Service, is notified in writing that he or she will not be displaced. Such later notification shall not be issued if the person has already moved. If such latter notification is issued, the Postal Service shall reimburse the person for any reasonable expenses incurred to satisfy any binding contractual relocation obligations entered into after the effective date of the notice of displacement or the notice to vacate or, (vi) A person who is required to temporarily vacate the premises in order to permit fumigation, repair, painting, or other maintenance or code of enforcement work or, (vii) A tenant who is required to move from real property as a result of a notice from the Postal Service to vacate such real property where such notice to vacate is issued five years or more after the date of the acquisition of such real property. A tenant who is given a notice to vacate as a result of failure to comply with the terms of his/her lease with the Postal Service or failure to renew his/her lease under prevailing market conditions is not considered to be a displaced person. (viii) A mobile home occupant who owns the site on which the mobile home is located and who voluntarily sells the site to the Postal Service, regardless of whether such person owns or rents the mobile home. (ix) A person whose property is acquired through a “friendly condemnation action” where price is not an issue. (g) Displacement Dwelling. (h) Dwelling. i.e. (i) Family. (j) Farm Operation. (k) Financial Means. (l) Initiation of Negotiations. (m) Notice of Displacement. (n) Notice to Vacate. (o) Owner of Displacement Dwelling. (1) Fee title, a life estate, a 99-year lease, or a lease, including any options for extension, with at least 50 years to run from the date of acquisition; or (2) An interest other than leasehold interest in a cooperative housing project which includes the right to occupy a dwelling; or (3) A contract to purchase any of the interests or estates described in paragraph (o)(1) or (o)(2) of this section; or (4) Any other interest, including a partial interest, which in the judgment of the Postal Service, warrants consideration as ownership. (p) Person. (q) Personal Property. (r) Tenant. [51 FR 6983, Feb. 27, 1986, as amended at 54 FR 10666, Mar. 15, 1989] § 777.14 Certain indirect actions prohibited. Postal employees shall take no indirect, coercive, or deceptive actions to cause persons to move from real property in an effort to avoid the circumstances under which such persons would be eligible to receive relocation benefits as displaced persons under these regulations. If a claimant demonstrates that such prohibited action caused him or her to move, he or she will be treated as a displaced person hereunder, if he or she otherwise meets the definition of a displaced person. Subpart B—Uniform Relocation Assistance § 777.21 General procedures. (a) Planning Prior to Site Selection. (b) Planning Subsequent to Site Selection. (c) Contracting for Relocation Services. (d) Notice to Vacate, Ninety Day Requirement. (e) Shorter Notice Period, Unusual Circumstances. (f) Notice of Displacement. (g) Notice of Availability of Advisory Services. (h) Eviction for cause. (1) The person received an eviction notice prior to initiation of negotiations and, as a result of that notice, is later evicted; or (2) The person is evicted after initiation of negotiations for serious or repeated violation of material terms of the lease or occupancy agreement; and (3) In either case the eviction is not undertaken for the purpose of evading the obligation to make the relocation payments and other assistance available. [51 FR 6983, Feb. 27, 1986, as amended at 54 FR 10667, Mar. 15, 1989] § 777.22 Relocation assistance advisory services. (a) General. (b) Relocation Information. (c) Time of Initial Contact to Provide Relocation Information. (1) Where acquisition of the property is to occur as a result of the exercise or the threat of the exercise of eminent domain, at the time of initiation of negotiation or within 30 days thereafter. (2) In any other instance such contact must be made prior to acquisition and prior to the notice of displacement or the notice to vacate, but it should normally not be made prior to contracting for the acquisition. (d) Service to be Provided. (1) Provide current information on the availability, purchase prices, financing, and rental costs of replacement dwellings. (2) For displaced persons eligible for replacement housing payments, explain that the displaced person cannot be required to move unless at least one comparable replacement dwelling is made available. (i) At the request of the displaced person, the Postal Service must inform that person, in writing, of the specific comparable replacement dwelling used as the basis for the replacement housing payment offer, the price or rent used to establish the upper limit of that offer, the basis for the determination, and the amount of the replacement housing payment to which he or she may be entitled. (ii) Where feasible, housing must be inspected by the Postal Service representative prior to its being made available to assure that it is a comparable replacement dwelling and meets the decent, safe, and sanitary standard. The displaced person must be notified that a replacement housing payment will not be made unless the replacement dwelling is inspected and determined to be decent, safe, and sanitary. (iii) Whenever possible, minority displaced persons must be given reasonable opportunities to relocate to comparable dwellings, not located in an area of minority concentration, that are within their financial means. This policy, however, does not require the Postal Service to provide a person a larger payment than is necessary to enable that person to relocate to a comparable replacement dwelling. (iv) All displaced persons, especially the elderly and handicapped, must be offered transportation to inspect housing to which they are referred. (3) Provide current and continuing information on the availability, purchase prices, and rental costs of comparable and suitable commercial and farm properties and locations, and assist any person displaced from a business or farm operation to obtain and become established in a suitable replacement location. (4) Minimize hardships to displaced persons in adjusting to relocation by providing counseling, advice about other sources of assistance that may be available, and such other help as may be appropriate. (5) Supply displaced persons with appropriate information concerning Federal, State, and local housing programs, disaster loan and other programs administered by the Small Business Administration, and other Federal, State, and local programs offering assistance to displaced persons. (6) Upon selection of a replacement property by a displaced person, the Postal Service may arrange for a representative to assist the displaced person with necessary arrangements for the move. § 777.23 Moving expenses. (a) Eligibility. (2) Business and farm displaced persons are entitled to benefits under paragraphs (d) through (k) of this section. (3) Those business or farm displaced persons who reside on the property where the business or farm operation is conducted are eligible for applicable benefits both as residents and as business or farm displaced persons, but no duplicate payments are allowed. (4) Persons who are required to move or to move personal property from real property, an interest in which is not acquired by the Postal Service, when it is determined by the Postal Service that such move is necessary or reasonable because of the Postal Service's having acquired an interest in other real property owned or leased by such persons and on which such persons conduct a business or farm operation, under circumstances where such persons are displaced persons with regard to such other real property or would have been displaced persons with regard to such other real property had they been required to move or to move personal property from such other real property, are entitled to benefits as residential, business or farm displaced persons under paragraphs (a)(1) or (a)(2) of this section. (5) Eligibility for moving expenses does not depend upon the owner's or tenant's actual occupancy of the displacement real property. (b) Allowable Expenses, Residential Moves. (1) Transportation of the displaced person and his or her personal property. Transportation costs are limited to the costs of a move up to a distance of 50 miles unless the Postal Service determines that relocation beyond 50 miles is justified. (2) Packing, crating, unpacking, and uncrating of the personal property. (3) Disconnecting, dismantling, removing, reassembling, and reinstalling relocated household appliances and other personal property. (4) Storage of the personal property not to exceed 12 months unless the Postal Service determines that a longer period is necessary. (5) Reasonable costs for insurance for the replacement value of the personal property being moved or stored. (6) When determined to be fair and reasonable by the Postal Service 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), but only where insurance covering such loss, theft, or damage is not reasonably available. (7) Other moving related expenses that are not listed as non-allowable under paragraph (l)(3) of this section and which the Postal Service determines to be reasonable and necessary. (c) Fixed payment for moving expenses. residential moves. (d) Allowable Expenses, Business and Farm Operations. (1) The expenses allowed under paragraphs (b) (2), (4), (5) and (6) of this section; (2) Transportation of personal property. Transportation costs are limited to a distance up to 50 miles unless the Postal Service makes a finding that relocation beyond 50 miles is justified. (3) Disconnecting, dismantling, removing, reassembling, and reinstalling relocated machinery, equipment, and other personal property, and substitute personal property as described in paragraph (d)(8) of this section. This includes connection to utilities available at the replacement site or building and minor modifications to personal property to adapt it to the replacement site or building. Excluded are expenses for providing utilities to or installing utilities at the replacement site or building and expenses for repair, alteration, improvement or modification of the replacement site or building. This exclusion includes, but is not limited to, any repairs, alterations, improvements, or modifications required by local code to bring the building up to standard. (4) Any license, permit, or certification fee required of the displaced person by a governmental authority at the replacement location. However, this payment is limited to the pro rata value for the remaining useful life of any existing license, permit, or certification. (5) Reasonable professional services necessary for planning the move of the personal property. Such professional services must be approved in advance by the Postal Service and shall not exceed the lowest of three acceptable bids. (6) Relettering signs and replacing stationary on hand at the time of displacement that are made obsolete as a result of the move. (7) Actual direct loss of tangible personal property incurred as a result of moving or discontinuing the business or farm operation. The payment will consist of the reasonable costs incurred in attempting to sell the item plus the lesser of: (i) The fair market value of the item for continued use at the displacement site, less the proceeds from its sale. (To be eligible for this payment the claimant must make a good faith effort to sell the personal property, unless the Postal Service determines that such effort is not necessary. When payment for property loss is claimed for goods held for sale, the fair market value must be based on the cost of the goods to the business, not the potential selling price.); or (ii) The estimated cost of moving the item no more than 50 miles, but with no allowance for storage. (8) If an item of personal property which is used as part of a business or farm operation is not moved, 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 at the replacement site, less any proceeds from the sale. (To be eligible for payments under paragraph (d)(8) of this section, the claimant must make a good faith effort to sell the personal property, unless the Postal Service determines that such effort is not necessary.) (ii) The estimated cost of moving and reinstalling the replaced item, based on the lowest acceptable bid or estimate obtained by the Postal Service for eligible moving and related expenses, but with no allowance for storage. (9) A displaced business or farm operation is entitled to reimbursement for actual expenses, not to exceed $1,000, which the Postal Service determines to be reasonable and which are incurred in searching for a replacement location. These expenses include transportation, meals and lodging away from home, time spent searching (based on reasonable salary or earnings) and 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 site. (10) Other moving-related expenses, not listed as non-allowable under paragraph (l)(3) of this section, which the Postal Service determines to be reasonable and necessary. (e) Fixed Payment in Lieu of Moving Expenses, Business Moves. (1) 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; and (2) 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 Postal Service determines that it will not suffer a substantial loss of its existing patronage; and (3) The business is not part of a commercial enterprise having more than three other entities which are not being acquired by the Postal Service, and which are under the same ownership and engaged in the same or similar business activities. (4) The business contributed materially to the income of the displaced person during the 2 taxable years prior to displacement (see paragraph (h) of this section). However, the Postal Service may waive this test for good cause. (5) The business is not operated at a displacement dwelling solely for the purpose of renting such dwelling to others. (f) Determining the Number of Businesses. (1) The same premises and equipment are shared; (2) Substantially identical or interrelated business functions are carried out and business and financial affairs are commingled; (3) The entities are held out to the public, and to those customarily dealing with them, as one business; and (4) The same person or closely related persons own, control, or manage the affairs of the entities. (g) Fixed Payment in Lieu of Moving Expenses, Farm Operation. (1) The acquisition of part of the land caused the operator to be displaced from the operation on the remaining land; or (2) The partial acquisition caused a substantial change in the nature of the farm operation. (h) Contributes materially. (1) Had average annual gross receipts of at least $5,000; or (2) Had average annual net earnings of at least $1,000; or (3) Contributed at least 33 1/3 (4) If the application of the above criteria creates an inequity or hardship in any given case, the Postal Service may approve the use of other criteria as determined appropriate. (i) Average Annual Net Earnings of a Business or Farm Operation. (j) Nonprofit Organizations. (1) Cannot be relocated without a substantial loss of existing patronage (membership or clientele). A nonprofit organization is assumed to meet this test, unless the Postal Service demonstrates otherwise; and (2) Is not part of an enterprise having at least one other establishment engaged in the same or similar activity which is not being acquired by the Postal Service. (k) Relocation of Outdoor Advertising Signs. (1) The depreciated replacement cost of the sign, as determined by the Postal Service, less the proceeds from its sale; (To be eligible for payments under this paragraph (k)(1), the claimant must make a good faith effort to sell the sign, unless the Postal Service determines that such effort is not necessary.) or (2) The estimated cost of moving the sign, no more than 50 miles, but with no allowance for storage. (l) Payment for actual reasonable reestablishment expenses, nonresidential moves. (1) Allowable expenses. (i) Repairs or improvements to the replacement real property as required by federal, state, local law, code or ordinance. (ii) Modifications to the replacement property to accommodate the business operation or make replacement structures suitable for occupancy. (iii) Construction and installation costs not to exceed $1,500 for exterior signing to advertise the business. (iv) Installation of security or fire protection devices. (v) Provision of utilities from right-of-way to improvements on the replacement site. (vi) Redecoration or replacement of soiled or worn surfaces at the replacement site, such as paint, panelling or carpeting. (vii) Licenses, fees and permits when not paid as part of the moving expenses. (viii) Feasibility surveys, soil testing and marketing studies. (ix) Advertisement of replacement location, not to exceed $1,500 (x) Professional services in connection with the purchase or lease of a replacement site. (xi) Increased costs of operation during the first two years at the replacement site, not to exceed $5,000, for such items as lease or rental charges, personal or real property taxes, insurance premiums, utility charges including impact fees or one time assessments for anticipated heavy utility usage. (xii) Other items that the Postal Service considers essential to the reestablishment of the business. (2) Non-allowable expenses. (i) Purchase of capital assets such as office furniture, filing cabinets, machinery, or trade fixtures. (ii) Purchase of manufacturing materials, production supplies, product inventory, or other items used in the normal course of the business operation. (iii) Interior or exterior refurbishment at the replacement site which are for cosmetic purposes only. (iv) Interest on money borrowed to make the move or purchase the replacement property. (v) Payment to a part-time business in the home which does not contribute materially to the household income. (vi) Payment to a person whose sole business at a replacement dwelling is the rental of such dwelling to others. (m) General Provisions Self moves. (2) Transfer of Ownership. (3) Non-Allowable Expenses. (i) The cost of moving any structure or other real property improvement. (ii) Loss of goodwill. (iii) Loss of profits. (iv) Loss of trained employees. (v) Any additional operating expenses of a business or farm operation caused by operating in a new location. (vi) Personal injury. (vii) Any legal fee or other cost for preparing a claim for a relocation payment or for representing the displaced person before the Postal Service. (viii) Expenses for searching for a replacement dwelling. (ix) Costs for storage of personal property on real property owned or leased by the displaced person. [51 FR 6983, Feb. 27, 1986, as amended at 52 FR 48029, Dec. 17, 1987; 54 FR 10667, Mar. 15, 1989] § 777.24 Replacement housing payments. (a) Residential displaced persons are eligible for replacement housing payments as follows: (1) Residential displaced persons who lawfully and continuously owned and occupied a displacement dwelling for not less than 180 days prior to the initiation of negotiations are entitled to the benefits set out in paragraph (b) of this section. Such displaced persons may alternately choose the benefits under paragraph (f) of this section. (2) Residential displaced persons who lawfully and continuously owned and occupied, and residential displaced persons who were tenants and lawfully and continuously occupied, a displacement dwelling for not less than 90 days prior to the initiation of negotiations are entitled to the benefits set out in paragraph (e) of this section. (3) Where the replacement housing payment provided hereunder does not provide for housing within the financial means (see § 777.13(j)) of the displaced person, see § 777.27, Last Resort Housing. (b) Benefits for 180 Day Owner Occupants. (1) An amount which is the sum of: (i) The amount which must be added to the acquisition cost of the displacement dwelling to provide a total amount equal to the lesser of: (A) The reasonable cost of a comparable replacement dwelling as determined by paragraph (c) of this section; or (B) The purchase price of a decent, safe and sanitary replacement dwelling actually purchased and occupied by the displaced person; plus (ii) Interest Cost (see paragraph (d) of this section); plus (iii) Incidental Expenses (see paragraph (h) of this section). (2) The benefits in paragraph (b)(1) of this section, are limited to a maximum payment of $22,500. (3) The benefits in paragraph (b)(1) of this section, are available only if a decent, safe and sanitary replacement dwelling is purchased within 12 months after the latter of: (i) The date of acquisition or, in the case of condemnation, the date the required amount is deposited in a court for the displaced person's benefit, or (ii) The date the person moves from the displacement dwelling. (c) Determining the Cost of a Comparable Replacement Dwelling. (1) If available, at least three representative comparable replacement dwellings must be examined and the payment offer computed on the cost of the fair market value of the dwelling most closely comparable to the displacement dwelling. (2) To the extent, feasible, comparable replacement dwellings will be selected from the neighborhood in which the displacement dwelling was located. If this is not possible, comparable replacement dwellings will be selected from nearby or similar neighborhoods where housing costs are similar. (d) Increased Mortgage Interest Costs. (1) The payment must be based only on bona fide mortgages that were a valid lien on the displacement dwelling for at least 180 days prior to the initiation of negotiations. All such mortgages on the displacement dwelling must be used to compute the payment. (2) The payment must be based on the unpaid mortgage balance on the displacement dwelling or the new mortgage amount, whichever is less. (3) The payment must be based on the remaining term of the mortgage on the displacement dwelling or the actual term of the new mortgage, whichever is shorter. (4) The new mortgage must be a bona fide mortgage and its interest rate must not exceed the prevailing interest rate currently charged by mortgage lending institutions in the area in which the replacement dwelling is located. (5) The discount rate used to compute the present value of the increased interest cost must be the prevailing interest rate paid on demand savings deposits by commercial banks in the area in which the replacement dwelling is located. (6) Purchaser's points and loan origination fees, but not seller's points, are reimbursable to the extent they are not paid as incidental expenses, they do not exceed rates normal to similar real estate transactions in the area, and the Postal Service determines them to be necessary. The computation of such points and fees shall be based on the unpaid mortgage balance on the displacement dwelling, or the new mortgage amount, whichever is less. (e) Benefits for 90 Day Owner Occupant and Tenants. (1) Rental assistance benefits, as set out in paragraph (f) of this section or downpayment assistance benefits, as set out in paragraph (g) of this section. (2) The benefits in paragraph (e)(1) of this section, are limited to $5,250. (3) The benefits in (e)(1) above are available only if a decent, safe and sanitary replacement dwelling is purchased or rented within 12 months after the latter of: (i) The date of acquisition or, in the case of condemnation, the date the required amount is deposited in the court for the displaced person's benefit, or (ii) The date the person moves from the displacement dwelling. (f) Rental Assistance. (1) The amount which must be added to 42 times the average monthly rental paid at the displacement dwelling (or, if the displaced person is an owner occupant, the fair market rental value had the displacement dwelling been rented) for the three-month period prior to displacement to provide a total amount equal to the lesser of: (i) 42 times the reasonable monthly rental of a comparable replacement dwelling; or (ii) 42 times the actual monthly rental cost of the decent, safe, and sanitary dwelling actually rented and occupied by the displaced person. (2) If utilities are included in either the replacement dwelling or the displacement dwelling rent, appropriate utilities must be factored into both rentals. If utilities are not included in either monthly rental then the payment will be computed using the base rental rates. (3) If, in the opinion of the Postal Service, the monthly rental at the displacement dwelling is significantly below the fair market rent of the displacement dwelling, such fair market rent must be used in computing the rental assistance payment. (4) The payment under this section must be disbursed in a lump-sum amount unless the Postal Service determines on a case-by-case basis, for good cause, that the payment should be made in installments. Where the rental assistance payment exceeds $5,250 under the provisions of Last Resort Housing, (§ 777.27), installment payments or payments through escrow accounts may be considered. (g) Downpayment assistance. (h) Incidental Expenses. (1) Legal, closing, and related costs, including those for title search and insurance, preparing conveyance instruments, notary fees, preparing surveys and plats, and recording fees. (2) Lender, FHA, or VA appraisal fees. (3) FHA or VA application fee. (4) Certification of structural soundness when required by the lender. (5) Credit report. (6) Owner's and mortgagee's evidence or assurance of title. (7) Escrow agent's fee. (8) State revenue or documentary stamps, sales or transfer taxes. (9) Such other costs as the Postal Service determines to be incidental to the purchase. [51 FR 6983, Feb. 27, 1986, as amended at 52 FR 48029, Dec. 17, 1987] § 777.25 Additional rules for replacement housing payments. (a) Multiple Owners. (1) The difference between (i) the reasonable cost of a comparable replacement dwelling, as determined under § 777.24(c) and (ii) the acquisition cost of the displacement dwelling; or (2) The difference between (i) the occupant's share of the acquisition cost of the displacement dwelling and (ii) the purchase price of a decent, safe, and sanitary replacement dwelling actually purchased and occupied by the displaced person. (b) Multiple Occupants of One Displacement Dwelling. (c) Mixed Use and Multi-Family Properties Acquired. (d) Disaster-Related Insurance Proceeds. (e) Inspection of Replacement Dwelling. (f) Purchase of Replacement Dwelling. (g) Conversion of Payment. (h) Payment After Death. (1) The amount attributable to the displaced person's period of actual occupancy of the replacement housing will be paid. (2) The full payment must be disbursed in any case in which a member of a displaced family dies and other family members continue to occupy the replacement dwelling selected in accordance with these regulations. (3) 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 must be disbursed to the estate. (i) 180 Day Owner Retention of Displacement Dwelling. (1) The expenses of moving and restoring the retained dwelling to a condition comparable to that prior to the move; and (2) The salvage or other value deducted from the acquisition cost for the retained ownership; and (3) Additional costs, if necessary, incurred to make the unit a decent, safe, and sanitary replacement dwelling; and (4) The cost of the replacement site, not to exceed the cost of a comparable available and suitable replacement site. (j) 90 Day Owner/Retention of Displacement Dwelling. [51 FR 6983, Feb. 27, 1986, as amended at 54 FR 10668, Mar. 15, 1989] § 777.26 Mobile homes. (a) Moving Expenses. (1) If the person owns the mobile home, moving expenses may, at the owner's option, include any reasonable costs incurred to move the mobile home to a replacement site, plus the reasonable cost of disassembling, moving, and reassembling any attached appurtenances (such as porches, decks, skirting, and awnings) which were not acquired, anchoring of the unit, and utility “hook-up charges.” (2) If the person rents the mobile home, the Postal Service may allow the person moving expense benefits for moving the mobile home as if the person were an owner of the mobile home under paragraph (a)(1) of this section. (3) If costs of moving a mobile home are paid as moving expenses under paragraph (a)(1) or (2) of this section, the person may not receive housing assistance benefits hereunder, other than any benefits to which they are entitled that are limited to the site of the mobile home. (4) Displaced occupants of mobile homes are eligible for moving expenses for personal property other than the mobile home and its appurtenances, but only to the extent the Postal Service does not pay the costs of moving the mobile home (either as moving expenses or replacement housing payments or, if it does pay such costs, the personal property is of a type that is customarily moved separately from the mobile home.) (b) Replacement Housing Payments. (1) If the displaced person owns the mobile home and owns the site, the person is eligible for benefits under either § 777.24 (b) or (e). (2) If the displaced person rents the mobile home and rents the site the person is eligible for benefits under § 777.24(e). (3) If the displaced person rents the mobile home and owns the site the person is eligible for benefits under § 777.24(e), with regard to the mobile home and to benefits under § 777.24(b) with regard to the site, subject to a limitation on the home and site benefits combined of $22,500. (Persons who voluntarily sell mobile home sites are not displaced persons and are not entitled to benefits under Subpart B. See § 777.13(e)(2)(viii)). (4) If the displaced person owns the mobile home and rents the site the person is eligible for benefits under either § 777.24 (b) or (e) with regard to the mobile home and to benefits as a tenant under § 777.24(e) with regard to the site, subject to a limitation on home and site benefits combined of $5,250. (c) Special Rules for Mobile Homes. (2) The acquisition of a portion of a mobile home park may leave a remainder that is not adequate to continue the operation of the park. When the Postal Service determines that its acquisition of the real property has had this effect and that for this reason a mobile home occupant located on the remaining part of the property is required to move, such occupant shall be considered a displaced person under these regulations and shall be entitled to such benefits hereunder as the person would otherwise qualify. [51 FR 6983, Feb. 27, 1986, as amended at 52 FR 48029, Dec. 17, 1987] § 777.27 Last resort housing. (a) Basic Determination to Provide Last Resort Housing. (b) Basic Rights of Persons to be Displaced. (c) Methods of Providing Replacement Housing. (1) Rehabilitation of and/or additions to an existing replacement dwelling. (2) The construction of a new replacement dwelling. (3) The provision of a direct loan which requires regular amortization or deferred repayment. Terms of such loan will be at the discretion of the Postal Service. (4) A replacement housing payment in excess of the $5,250 and $22,500 limitations contained in § 777.24. A rental subsidy under this section may be provided in installments. (5) The relocation and any needed rehabilitation of a replacement dwelling. (6) The purchase or lease of land and/or a replacement dwelling by the Postal Service and subsequent sale or lease to, or exchange with, a displaced person. (7) The removal of barriers to the handicapped. (8) Any other method determined by the Postal Service to be reasonable. (d) Proof of Financial Need. [51 FR 6983, Feb. 27, 1986, as amended at 52 FR 48029, Dec. 17, 1987] § 777.28 Claims and appeals. (a) Preparation of Claim. (b) Documentation. (c) Time for Filing. (d) Review, Approval and Payment. (e) Relocation Payments Not Considered as Income. (f) Certification. (g) Advance of Funds. (h) Money Owed to the Postal Service. (i) Notice of Denial of Claim. (j) Appeal Procedure. (1) The appeal must be in writing. (2) The appeal must be directed to the General Manager, Real Estate Division, and must set forth the displaced person's reasons for the appeal. (The General Manager shall not have taken part in the decision which led to the appeal. Appeals misdirected to others must be forwarded immediately to the General Manager with notification of the forwarding to the appellant.) (3) The appeal must be submitted within 60 days after the displaced person receives written notification of the Postal Service's original determination concerning the displacee's claim. The Postal Service may extend this time limit for good cause. (k) Right of Representation. (l) Review of Files by Appellant. (m) Scope of Review. (n) Determination and Notification After Appeal. [51 FR 6983, Feb. 27, 1986, as amended at 54 FR 10668, Mar. 15, 1989] Subpart C—Acquisition § 777.31 Acquisition procedures. (a) Policy; Application of Section. (1) Notice to Owner. (2) Expeditious Negotiations. (3) Appraisal and Invitation to Owner. (4) Establishment of Offer of Just Compensation. (5) Summary Statement. (i) 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, must be separately stated. (ii) The location and description of the real property and the interest(s) to be acquired. (iii) An identification of the buildings, structures, and other improvements (including removable building equipment and trade fixtures) which are considered part of the real property for which the offer of just compensation is made. Where appropriate, the statement shall identify and separately held ownership interest in the improvement(s), for example, a tenant-owned improvement. (6) Basic Negotiation Procedures. (i) Discuss the Postal Service's offer to purchase the property including the basis for the offer of just compensation, and; (ii) Explain Postal Service acquisition policies and procedures including the provisions for the payment of incidental expenses as described under § 777.33. (7) Opportunity to Consider Offer. (8) Updating Offer of Just Compensation. (9) Contracts and Options. (10) Title II Benefits Not To Be Considered. (11) Coercive Action. (12) Inverse Condemnation. (13) Payment Before Taking Possession. (i) Pay the agreed purchase price to the owner; or (ii) In the case of a condemnation proceeding, deposit with the court for the benefit of the owner an amount not less than the amount of the approved appraised value of the property or the amount of the award of compensation in the condemnation proceeding for the property. (14) Right-of-Entry. § 777.32 Acquisition of tenant-owned improvements. (a) Acquisition of Improvements. (b) Special Conditions. (1) In consideration for the payment the tenant-owner assigns, transfers, and releases to the Postal Service all of the tenant-owner's rights, title, and interests in the improvement; (2) The owner of the real property on which the improvement is located disclaims all interest in the improvement; and (3) The payment does not result in the duplication of any compensation otherwise authorized by law. (c) Preservation of Tenant's Rights. § 777.33 Expenses incidental to transfer of title to the Postal Service. (a) Reimbursement. (1) Recording fees, transfer taxes, documentary stamps, evidence of title, boundary surveys, legal descriptions of the real property, and similar incidental expenses. However, the Postal Service will not pay costs solely required to perfect the owner's title to the real property. (2) Penalty costs and other charges for prepayment of any preexisting recorded mortgage, entered into in good faith, encumbering the real property. (3) The pro rata portion of any prepaid real property taxes which are allocable to the period after the Postal Service obtains title to the property or effective possession of it, whichever is earlier. (b) Direct Payment. (c) Certain Litigation Expenses. (1) The final judgment of the court is that the Postal Service cannot acquire the real property by condemnation; or (2) The condemnation proceeding is abandoned by the Postal Service 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 Postal Service effects a settlement of such a proceeding. Subpart D—Voluntary Acquisitions § 777.41 Acquisition procedures. (a) Voluntary Acquisitions. (b) Tenant-Owned Improvements. Subpart E—Donations § 777.51 Acceptance of donations. Nothing in these regulations shall prevent a person from making a gift or donation of real property or any part thereof, or any interest therein, or of any compensation paid therefor, to the Postal Service. The Postal Service may obtain an appraisal of the real property for income tax or other purposes if the owner thereof requests the Postal Service to do so.