Multiple Occupancy

1. Multiple Occupancy Replacement Housing Payments Under the Uniform Act For Multiple Occupants of a Displacement Dwelling

2. What’s the Issue? • If two or more occupants of the displacement dwelling move to separate replacement dwellings, each occupant is entitled to a reasonable prorated share of the relocation payments that would have been made if they had relocated together. • HOWEVER, …………. • Multiple Occupants

3. The Issue is………… • If the agency determines that two or more occupants maintained separate households within the same dwelling, such occupants have separate entitlements to relocation payments.

4. Determining Separate Households • The agency is responsible for determining the number of households in a dwelling based on: • the use of the dwelling; • the relationship of the occupants; • cultural distinctions; • any other information that may be obtained. • The payment computation for each household should be based on the part of the dwelling that the household occupies and the space that is shared with others. • An attempt should be made to locate similar comparable DSS living facilities.

5. Living in The Real World • You’ve seen what the regulations say, but how do they work in “the real world”? • Consider the following scenarios:

6. Scenario 1: Divorce • Tom and Laura and their daughter are being displaced from their 3-bdr, 2-bath ranch-style home by a highway project. Tom and Linda are legally separated and have filed for divorce. They are still residing in the displacement dwelling for convenience, but will relocate into separate replacement dwellings. Custody of the daughter has not yet been determined. A comparable dwelling is available and the initially computed purchase differential is $20,000. • How would you handle this situation as the relocation agent?

7. Answer to Scenario 1 • Tom and Laura are legally separated, but the agent believes they constitute a single household based on their relationship. While they are occupying separate bedrooms, they share the common area and both parents take care of the daughter. The agent informs them the maximum purchase differential they can receive is $20,000, if they occupy DSS replacement housing. Once the agent inspects the replacement dwellings and confirms they spent enough to earn the purchase differential, they are given the option of having separate checks cut for their pro-rata share of the RHP, or one check made out to both parties. • How would you have handled this?

8. Scenario 2: Relative-ly Speaking • The displacement dwelling is a 4-bdr, 2-bth town home owned by a single individual. However, her aunt, adult daughter, and the adult daughter’s two sons occupy the dwelling with her. The aunt is an invalid being cared for by the owner. The daughter was divorced last year and moved in with her mother 9 months ago, along with her sons. The owner told the agent the aunt and daughter provide “some” money to help with household expenses. The daughter plans to relocate separately along with her sons. • How would you handle this?

9. Answer to Scenario 2 • The agent determined the daughter and her two sons constituted a separate household. Since the daughter has no ownership interest in the displacement dwelling, she will be treated as a tenant. The aunt will relocate with the owner. • In looking for comparable replacement housing, the relocation agent will provide a 2 bedroom comparable to the owner & aunt and a 2 bedroom rental comparable to the daughter and her sons. • How would you have handled this?

10. Scenario 3: Three’s Company • Don and Phil are brothers and are renting a two-bedroom townhome from their uncle. They have occupied the dwelling for a little over a year while they are finishing graduate school. Two months ago, they offered to sublet space in the apartment to their friend Roy to help defray expenses. Roy agreed to pay one-third of the total rent, and agreed to use the living room as his sleeping area. He has use of the kitchen and bath. The displacees are not yet certain if they will relocate together or separately.

11. Answer to Scenario 3 • You tell me! • Here are some issues to consider: • If the third displacee had not moved in, would Don and Phil be considered a single household? What if they chose to move separately—would that make a difference? • Since there is a third displacee who came in after Don and Phil, could you still consider this a single household? What if Don and Phil move together to a replacement dwelling, but Roy moves to a different replacement dwelling—how would that affect the RHP?

12. Key Points • The first, most important decision the Relocation agent must make is whether the displacees constitute a single or multiple households. Relevant factors include: • The use of the dwelling; • The relationship of the occupants (not limited to relationships by kinship or marriage; could be friendship or fiduciary); • The customs and culture of the displacees; • Intent (e.g., if the parties are related, such as in scenario 2, but one party is paying rent to the other and they relocate separately, that might help the agent determine separate households). • The second key point is distribution of the RHP, esp. in the case of a single household that is splitting after displacement, such as scenario 1.

13. Questions?? • Presenter: • Dave Leighow, Realty Specialist • Federal Highway Administration • www.fhwa.dot.gov/realestate