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089431 1 (1971-07-09)

handle is hein.gao/gaobacvkn0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D C 20548 CIVIL DIVISION JUL 9 1971 Dear Mr. Jackson: The General Accounting Office has made a survey of federally-assisted relocation activities, including those activities under programs administered by the Department of Housing and Urban Development (HUD). Oar field work relating to HUD-assisted programs was carried out at local public agencies (LPAs) in Oakland and San Jose, California, HUD Region IX offices in San Francisco, and HUD Headquarters in Washington, D. C. During the survey we noted a problem related to relocation payments made to certain displaced families and individuals who rent or lease replace- ment housing. We found that the method used by the LPAs in computing these payments often resulted in relocatees receiving monthly payments which were in excess of the amount required to assure residency in decent, safe, and sanitary dwellings. BACKGROUND Prior to January 2, 1971, authority for relocation payments was contained in Section 114 of the Housing Act of 1949, as amended. Section 114 provided for relocation payments to certain displaced tenants, and owner- occupants of single or two-family dwellings, to obtain decent, safe, and sanitary housing. Section 114 also provided that these payments should be based on the average rental or average price of a replacement dwelling of modest standards, adequate in size to accommodate the displaced individual or family. For displaced families and elderly or handicapped individuals who rented or leased replacement housing, HUD regulations provided for payments to be based on the difference between 20 percent of a relocatee's income, and the average rental required for a replacement dwelling as computed by the LPA. Payments were made monthly for up to 24 months and could not exceed $500 per year. Payments to displaced owner-occupants who repurchased within 1 year were based on the difference, up to $5,000, between the amount received for the acquired dwelling and the average price required for a replacement dwel- ling. 50TH ANNIVERSARY 1921- 1971

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