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RED-75-318 1 (1975-01-07)

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             COMPTROLLER GENERAL OF THE UNITED STATES0f
                        WASHINGTON, D.C. 20548



B-148044                                                          A


The Honorable Robert Packwood
United States Senate

Dear Senator Packwood:

     In your June 14, 1974, letter you asked us to review a change
made by the Department of Housing and Urban Development (HUD) in
its regulations relative to relocation assistance payments made
pursuant to the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970 (42 U.S.C. 4601 et seq.).

     As agreed with your office on August 7, 1974, we are providing

     --a short legislative history and intent of the act relating
       to replacement housing payments, including our views as to
       the propriety of HUD's recent change in providing relocation
       assistance, and

     --data on the objectives and accomplishments of the inter-
       agency Relocation Assistance Implementation Committee (RAIC).

     We obtained information from HUD, the Department of Transportation
(DOT), the Corps of Engineers, and RAIC. We reviewed the act's
legislative history as it relates to replacement housing payments.

LEGISLATIVE HISTORY

     The act established a uniform policy for fairly and equitably
treating persons displaced (displacees) from their homes by Federal
and federally assisted programs. Section 203 of the act authorizes
the head of the Federal agency to make to a displacee replacement
housing payments of up to $15,000 to help him purchase replacement
housing. The amount of the payment is the difference between the
Federal agency's cost of the house acquired and the reasonable cost
of a comparable replacement house. Subsection (a)(2) allows that
payments be made only to displacees who purchase and occupy replace-
ment housing that is decent, safe, and sanitary.

     House Report 91-1656, dated December 2, 1970, indicates that
the basic principle to be followed in determining the replacement
housing payment should be that



                                                      RED-75-318

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