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B-148044 1 (1979-10-19)

handle is hein.gao/gaobabjpc0001 and id is 1 raw text is: 1173o COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON, D.C. 2b548 B-148044 GG9-279 The Honorable Jaies R. Sasser Chairman, Subconaittee on Intergovernmenta 1 Relations Co-a-ittee on Governmntal Affairs United States Senate Ot'ober 19, 1979 Dear 1ir. Chairman: This is in response to your letter of Septerrber 7, requesting infoimation on subjects not covered during n-y testainony on thep7oposed a-ndments to the Uniform Relocation Assistance Act contained inS. 1191 You noted that in our statement, we reco-mended that inflation adjustments in an amended Uniform Relocation Act be tied to the rent component of the consumer price index rather than the overall CPI. You asked wfat percentage of the average displaced person's relocation costs involve additional costs for rent. We do not have the information needed to respond to this question. Our thought in making this reco-nrendation was that the rent co-mponent of the CPI is a more specific indicator of Changing costs of rental housing than the overall CPI and therefore the rent component should be used to adjust the $4,000 limit for replacement housing payments to tenants. S. 1108 calls for doubling the present payment schedules, and then using the CPI to annually update the schedules. The overall CPI between January 1971 and July 1979 increased by about 84 percent while the rent component of the CPI increased by only about 56 percent. Oar suggestion is that rather than doublin- the S4,000 limit on replacenent housing pay- mnts to tenants that the li.mit be adjusted to current levels based- on the rent component of the CPI, i.e., to bring the limit to a July 1979 level, it would be adjusted to $6,24-0 ($4,000 nultiplied by 156 percent). Similarly, we suggest that future annual updates of this payment limit be based on the rent component of the CPi. You also asked us to elaborate on the effect of remving the current $15,000 liit of Section 203. This payi-en't assists displaced hon.eowners to purchase replacement housinig which is (l) decent, safe, and sanitary, and (2) coparable to the house previously o med by the displaced person. Support for not having a limit to this payment rests primarily on the (0 7/ 35-

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