Imagine the following public construction projects: A municipality is undertaking improvements in its downtown business corridor to expand the width of roadways and sidewalks, which will require several downtown businesses to relocate permanently. A housing authority plans to renovate existing low-income housing, which will require tenants to relocate for approximately eight months. A water and sewer authority is constructing a new wastewater treatment facility that will require temporary construction easements on residential property and the potential for acquisitions of vacant property.

Now imagine that these projects are supported by federal financial assistance. While these projects serve different goals, the inclusion of federal financial assistance means that they are all subject to the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970. This federal law, commonly referred to as the Uniform Relocation Act or URA, applies when federal funds are used in the connection with a construction project that involves acquisition, rehabilitation, or demolition.

The URA has two types of requirements: acquisition and relocation requirements. In short, the URA requires that an agency[1] follow certain acquisition procedures and, as applicable, provide displaced people and businesses[2] with notice, relocation assistance advisory services, and relocation payments. While this may sound simple, the procedural details of the URA are complex. This blog post provides an overview of the URA and its requirements for local governments.[3] This post is also the first in a series focusing on key topics in federal funding and contract compliance.

Overview of the Uniform Relocation Act

The URA is a federal law that provides protection and assistance for people affected by both federal and federally assisted construction projects. 42 U.S.C. 4601, et seq. The URA ensures that “displaced persons”—those people and businesses whose real property is acquired or who are displaced because of federal or federally assisted projects—receive just compensation[4] for and assistance in moving from the property they own or occupy. The overall goal of the URA is to treat people and businesses affected by federally assisted construction projects fairly and equitably. Additionally, the URA is designed to minimize displacement and avoid eminent domain.

With limited exceptions, the URA applies to any project that involves property acquisition, rehabilitation, or demolition if federal funds are used at any stage of the project. 49 C.F.R. 24.101(b). The funds do not have to pay directly for those activities; federal financial assistance being used anywhere in the project is enough to trigger URA requirements. The scope of the URA extends beyond fee simple acquisitions; it also applies to acquisitions of fee title subject to a life estate, leases of 50 years or more, and permanent and temporary easements necessary for the project. 49 C.F.R. 24.101(c). In any of these instances, the URA obligates local governments to follow specific steps to ensure the fair and equitable treatment of displaced people and businesses.

Jurisdictionally, the United States Department of Transportation (DOT) is the lead agency for the URA and has promulgated rules implementing the URA. These rules can be found at 49 C.F.R. Part 24. As of 1987, the DOT has delegated its rulemaking authority and other duties regarding the URA to the Federal Highway Administration (FHWA). 49 C.F.R. 1.85(d)(7). Additionally, given the substantial role of the United States Department of Housing and Urban Development (HUD) in funding housing programs, HUD has developed supplemental guides and forms to support implementation of the URA. For that reason, this blog post includes references and links to numerous HUD templates.

The federal regulations in 49 C.F.R. Part 24 are organized into seven Subparts. Relevant to this blog post are Subpart B, Real Property Acquisition, and Subpart C, General Relocation Requirements. It can be helpful to frame the URA as having two types of requirements: acquisition and relocation requirements. In a given context, one or both types of these requirements of the URA may apply. For example, if a local government is acquiring vacant property—meaning with no people or businesses on the site—for a federally assisted project, then only the acquisition requirements apply. More commonly, though, a local government is acquiring property occupied by a business or family that will need to permanently relocate due to the project, and therefore both the acquisition and relocation requirements apply.[5]

 The latter scenario described above involves a “displaced person,” which triggers the relocation requirements. The next section examines the definition a “displaced person.”

Definition of Displaced Person

Under the URA, a “displaced person” is any person or business that must move from real property or move their personal property from real property because of a federally assisted project. 49 C.F.R. 24.2. More specifically, a person becomes displaced—and therefore eligible for relocation assistance—when any of the following occur:  

• a written notice to acquire, rehabilitate, or demolish real property;
• the initiation of negotiations for real property;
• the acquisition of real property; or
• the rehabilitation or demolition for a project.

Businesses that operate on property but do not own it (i.e., tenants) become displaced upon occurrence of the following:

• a written notice of intent to acquire real property; or
• the acquisition, rehabilitation, or demolition of real property.

Additionally, people and businesses that relocate temporarily, meaning for less than twelve months, are within the scope of the definition of “displaced person,” although the available relocation assistance for temporary moves is more limited under 49 C.F.R. 24.202(a).

The regulations defining “displaced persons” also define “persons not displaced,” such as a person who occupied the property for the purpose of obtaining assistance under the URA. Notably, an “alien not lawfully present in the United States” is not eligible for relocation payments or other assistance under the URA. However, under 42 U.S.C. 4605, if a person’s ineligibility due to their unlawful alien status would cause an exceptional and extremely unusual hardship to their spouse, parent, or child who is a U.S. citizen or a lawful permanent resident, the agency must provide relocation payments and other assistance to the displaced person, provided they otherwise meet the URA eligibility requirements. Accordingly, every individual or entity seeking relocation payments or relocation advisory assistance must certify their citizenship or status as an alien who is lawfully present in the United States. Heads of households may provide this certification for all members of their family. The certification requirements for businesses vary depending on whether they are incorporated or unincorporated.

In summary, displacement can result from a variety of activities, including property acquisition, rehabilitation, or demolition. Displacement may be permanent or temporary and can involve either residential or nonresidential property. Individuals or businesses become eligible for relocation benefits once the Initiation of Negotiations (ION) occurs, which is defined differently depending on whether the situation involves involuntary acquisition, voluntary acquisition, or property rehabilitation or demolition. See 29 C.F.R. § 24.2(a).

Regardless of the situation, agencies are required to provide notice to all displaced people and businesses. These notices required by the URA are described in the following section.

Providing Notice under the URA

When a local government anticipates acquiring real property or displacing people or businesses and federal financial assistance is used for the project, the local government must provide certain notices to property owners in compliance with the URA. There are three potential notices required by the URA: the General Information Notice, Notice of Relocation Eligibility, and Ninety-Day Notice. The General Information Notice, described in more detail below, is always required to be sent to people and businesses affected by the project, including both property owners and occupants (i.e., tenants). However, depending on the occupancy of the property and the ultimate means of acquisition, the latter two notices may or may not be required under the URA.

The notices required by the URA must be sent to property owners or occupants of the property by personal service or certified or registered first-class mail, return receipt requested. 49 C.F.R. 24.5(a). Due to 2024 amendments to the regulations, electronic delivery is now permissible upon approval by the federal funding agency as long as certain criteria are met. 49 C.F.R. 24.5(b). Regardless of delivery method for notices, the agency must retain documentation of delivery of the notice. Notices must also include the name and telephone number of a person at the agency who can be contacted for answers to questions or other help.

The first notice that must be provided is the General Information Notice (GIN). The GIN informs affected people of the project that they may be displaced by the project. The regulations provide that, “as soon as feasible,” an agency must provide a property owner with written notice about the agency’s interest in acquiring the owner’s property and the protections provided by the URA. Additionally, as a best practice (and required by HUD), all occupants of property within a project area must be provided with a GIN. In many cases, the GIN is provided at the time an agency applies for federal financial assistance. Per 49 C.F.R. 24.203(a), the GIN must provide information about the potential for displacement, availability of relocation support, the 90 days’ notice for moving, the unavailability of assistance for aliens, and rights of appeal. For projects funded by HUD, most of these requirements can be met using informational brochures provided by HUD, which can be found here. These HUD brochures are drafted differently based upon whether the recipient is a tenant, owner-occupant, or business. In some situations where a GIN is required to be provided to an occupant, the agency may already know that the occupant will not be displaced, and the GIN should be modified to caution the occupant not to move on their own. As an example, while a GIN would be required for a partial property acquisition, the eventual acquisition may not displace an occupant of the property. In this situation, an occupant who moves would not be eligible for relocation benefits and any communication should be clear about expectations and consequences.

The second notice that may need to be provided is the Notice of Relocation Eligibility (NOE). The NOE informs people that they will be displaced by the project and establishes their eligibility for relocation assistance and payments. Specifically, 49 C.F.R. 24.203(b) identifies four triggers that make a person  or their business eligible for relocation assistance and these require issuance of the NOE: the date of a notice of intent to acquire, rehabilitate, or demolish; the initiation of negotiations (ION); the date that an agreement for voluntary acquisition becomes binding; or actual acquisition. When one of these events occurs, the agency must “promptly” notify all occupants in writing about eligibility for relocation assistance, the estimated amount of assistance based on the circumstances, and procedures for obtaining assistance. As advised by HUD, the NOE must be specific to the person and their situation so that they will have a clear understanding of the type and amount of payments or other assistance they may be entitled to claim.

The third notice that may need to be provided is the Ninety-Day Notice (NOND). The NOND informs displaced people of the earliest date by which they will be required to move. The URA provides that no lawful occupant is required to move unless they receive 90 days’ advance notice of a moving date. If a specific date is not provided in the notice, the agency must state in the NOND that the occupant will receive a further notice of the specific date for moving at least 30 days in advance. However, if the NOND is issued before a comparable dwelling is available, the NOND must clearly state that the occupant will not have to move earlier than 90 days after such a dwelling is made available.

In some cases, other notices may be necessary, and it is important to understand the federal funding agency’s requirements. For example, HUD’s  Tenant Assistance, Relocation and Real Property Acquisition Handbook 1378 requires persons who are not displaced be provided with a Notice of Nondisplacement (NON). If this does not happen, HUD’s policy will automatically qualify a person as displaced if they move, thereby entitling them to relocation benefits.

If an agency intends to acquire, rehabilitate, or demolish property, the agency needs to provide a written notice of the intended action. 49 C.F.R. 24.203(d). It is important to remember that a Notice of Intent to Acquire (NOI) establishes eligibility for relocation assistance, so local governments should be mindful of wording used in any notices and understand whether the notice qualifies as a “commitment.” Of course, a NOI can be issued when an agency wants to establish “early” eligibility for relocation assistance prior to the ION.

After giving appropriate notice, an agency may proceed with the process of property acquisition. Involuntary and voluntary acquisitions are detailed in the next two sections.

Involuntary Acquisition: Appraisal Required Before Negotiations and More Notifications

Local governments have the power of eminent domain under G.S. 40A‐3.[6] Where a local government’s project is subject to the URA and the local government desires to retain its right of condemnation, the URA characterizes this property acquisition as an “involuntary acquisition.” An involuntary acquisition has more rigorous procedural standards under Subpart B as opposed to a voluntary acquisition described in the next section.

Before an agency begins negotiations with an owner as part of an involuntary acquisition, the agency shall appraise the real property to be acquired. 49 C.F.R. 24.102(c). An appraisal is not required if the owner donates the property or the property qualifies for a “waiver valuation,” meaning the valuation problem is not complicated and the proposed acquisition is estimated at $15,000 or less.[7] Appraisers and the appraisal process are subject to specific conflict of interest standards found in 49 C.F.R. 24.102(n) and the criteria for appraisals found in 49 C.F.R. 24.103.[8]

After appraisal but still prior to negotiations, the agency must use the appraisal review process outlined in 49 C.F.R. 24.104 to establish an amount of “just compensation” for the real property. Upon establishing the just compensation, which cannot be less than the approved appraisal considering the value of allowable damages or benefits to the remaining property, the agency shall promptly notify the owner of the just compensation amount and provide a written purchase offer. This notification must also describe the basis for the offer and identify the property, the interest to be acquired, improvements covered by the offer, and any ownership interests not covered by the offer. The notification should also include information about reimbursement of incidental expenses, such as recording fees and transfer taxes. 49 C.F.R. 24.106.

After the purchase offer is sent, the agency must make reasonable efforts to discuss the offer with the property owner. The property owner can present, and the agency must consider, the property owner’s materials relevant to determining value of the property. The agency will update its appraisal, as needed, and will promptly update the just compensation and then offer that amount in writing to the property owner.

If negotiations are successful, the agency and property owner will complete the sale. If negotiations are not successful, the agency may proceed with an administrative settlement. 49 C.F.R. 24.102(i). The administrative settlement is an alternative to seeking a court’s resolution of a difference of opinion on the value of a property. Under an administrative settlement, the purchase price can exceed the amount offered as just compensation, but the agency must document and approve that the administrative settlement is reasonable, prudent, and in the public interest. If negotiations are still unsuccessful, the agency can acquire the property through use of condemnation in compliance with applicable state and federal law.

This HUD resource summarizes the general involuntary acquisition process.

Voluntary Acquisition: A Local Government Cannot Exercise Eminent Domain and More Notifications

If a local government does not want to subject itself to the rigor required for involuntary acquisition, it may pursue “voluntary acquisition.” In a voluntary acquisition, the agency will not use its power of eminent domain. Additionally, voluntary acquisition is only available where property to be acquired is not part of an intended, planned, or designated project area where all or substantially all of the property within the area must be acquired within a specific time limit. To follow voluntary acquisition procedures, the agency must notify a property owner in writing that it will not acquire the property if negotiations fail and it must provide an estimate of the fair market value of the property.

It is important to note that property owners who sell their property in voluntary acquisitions are not considered “displaced,” and are therefore not eligible for relocation assistance. However, tenants who are displaced as a result of the acquisition may be eligible for all applicable relocation benefits under the URA. Relocation benefits, which are described briefly in the next two sections, include relocation assistance advisory services and relocation payments.

Relocation Requirements: Relocation Assistance Advisory Services

The agency must offer relocation assistance advisory services to people and businesses that will be permanently or temporarily displaced. 49 C.F.R. 24.205. The goal of these advisory services is to understand the needs of occupants for relocation and, for tenants, assist with finding comparable replacement housing. Appropriate relocation assistance requires planning in advance of any displacement actions. In order to understand the impact of its actions, an agency may (but is not required to) complete a relocation survey or study that estimates the number and makeup of families that will be displaced, comparable dwellings available, and businesses that will be impacted by the project.

At a minimum, the advisory process requires the agency to conduct personal interviews with businesses and residents who will be permanently displaced; the agency has discretion about conducting personal interviews with residents and businesses that will be temporarily displaced. As part of these interviews, the agency must explain applicable assistance, including relocation payments, and determine the needs and preferences of residents and businesses. Beyond that, the content required for the interviews depends on whether the interviewee is a business or resident. For businesses, interviews must cover topics in 49 C.F.R. 24.205(c)(2)(i), such as the businesses’ current lease terms, estimated time required to vacate the site, and the need for outside specialists to assist with moving logistics. For residents, the topics covered in 49 C.F.R. 24.205(c)(2)(ii) must be included in the interview, such as providing information about comparable dwellings.

Relocation Requirements: Relocating and Reimbursing Occupants

Generally speaking, occupants who are displaced from property are eligible for payment of actual and reasonable moving expenses and reestablishment expenses or, in the alternative, a fixed payment in lieu of moving and reestablishment expenses. The costs that are eligible for relocation payments are provided in detail in Subpart D of 49 C.F.R. Part 24. Replacement housing payments are covered in Subpart E. However, both Subparts D and E are outside the scope of this blog post. Still, agencies should be aware that the eligibility and calculations of payments is complicated. More information is available on these topics through the FHWA here.

Displaced people and businesses can be reimbursed after providing appropriate documentation of expenses. As a matter of timing, tenants must file claims for relocation payments within 18 months of their displacement or temporary move. Owners must file within 18 months of displacement or final payment for the acquisition of the real property, whichever is later. If a person demonstrates the need for an advance payment due to hardship, the agency is permitted to provide an advance payment.

While understanding the timing and eligibility for relocation payments is essential, it is equally important for local governments to maintain thorough documentation of these processes to ensure compliance with federal requirements. Documentation is covered in the next section.

Document, Document, Document

As with all federally funded activities, local governments must document, document, document their processes. The following is a list of suggestions for documentation, but it is not exhaustive. For additional suggestions, the Department of Commerce for the State of Montana has developed a CDBG-specific Uniform Relocation Act Governed Acquisition File Checklist.  Local governments should always consult with the applicable federal agency for further guidance.

• Contact: Local governments should be prepared to track all contact with people and businesses affected by the project. This includes copies of all notices, dates, and descriptions of in-person contact, and records of advisory assistance.

• Occupancy: Agencies will need to monitor and document property occupancy throughout the project. HUD recommends that agencies prepare a separate case file for each business that will be displaced, including copies of notices, a timeline of events, advisory services, claims, and appeals. As examples, ​​​ Appendices 8 and 9 of HUD Handbook 1378 are optional occupancy tracking forms for residential and nonresidential occupancy.

• Nonresidential Inventory: Under 49 C.F.R. 24.301(i), a displaced business must provide an inventory of personal property to be moved for all nonresidential relocations unless this requirement is waived by the agency.  Agencies are expected to document inspections of personal property at both the displacement and replacement sites. 

• Expense Claims: Files should contain moving cost estimates, bills, and receipts to support each claimed expense.  HUD has template claim forms available for HUD-funded projects.

Conclusion

The URA establishes mandatory standards for acquisition and relocation in federally assisted construction projects. By requiring agencies to follow specific acquisition steps, provide timely notices, and offer relocation assistance, the URA balances the government’s need to complete critical infrastructure projects with the rights of affected property owners, tenants, and businesses.

Local governments must ensure that all notices, acquisitions, advisory services, and relocation payments are carried out in accordance with 49 C.F.R. Part 24. Due to the complexity of the URA, local governments may consider hiring a consultant with specialized knowledge in federal grants management to handle URA compliance. Ultimately, local governments that plan proactively, maintain complete case files, and communicate clearly with affected parties will be best positioned to demonstrate compliance and fulfill the URA’s goal of fair and equitable treatment of displaced people and businesses.

[1] In this blog post, “agency” refers to the local government that is acquiring real property or displacing a person or business. Prior to 2024 revisions to 49 C.F.R. Part 24, the regulations used “acquiring agency” or “displacing agency,” but the recent revisions simplified the terminology to “agency.”

[2] Throughout this blog post, the phrases “business(es)” or “nonresidential” are used to describe farm operations and non-profits in addition to businesses.

[3] The federal requirement for relocation assistance does not, on its own, authorize a local government to provide relocation assistance. Rather, as my colleague Kara Millonzi has written about, local governments need to look to a general or local act for authority under G.S. 160A-17.1. North Carolina has a statutory equivalent to the URA that has similar requirements to the URA for State agencies and political subdivisions of the State for public works project. This statute provides authority for local governments to undertake a relocation assistance program. See the Uniform Relocation Assistance and Real Property Acquisition Policies Act, G.S. 133-5, et seq.

[4] Readers may be familiar with the concept of “just compensation” in takings jurisprudence. While there are procedural differences in the URA and condemnation proceedings, “just compensation” in both contexts refers fundamentally to the fair market value of the property acquired for a federally assisted project.

[5] According to the United States Department of Transportation Federal Highway Administration’s Uniform Act Statistics from 2024, North Carolina had the highest number of URA residential and nonresidential displacements in the country, at 721, and the second highest amount of compensation under the URA, totaling over $247 million.

[6] Through their charters, some local governments can use condemnation authority under Article 9 of Chapter 136 of the General Statutes of North Carolina.

[7] A federal funding agency can increase this threshold up to $50,000 under certain conditions. See 49 C.F.R. 24.102(c)(2)(C) and (D).

[8] The conflict of interest provisions prohibit an appraiser from having any interest in real property being valued for the agency and generally prohibit someone involved in developing or reviewing appraisals or appraisal waivers for real property from acting as a negotiator for that property. There are some exceptions to the latter prohibition depending on the valuation amount. See 49 C.F.R. 24.102(n)(3) for additional details.

Any appraisals performed for URA compliance must be relevant to the agency’s program needs and reflect established and commonly accepted appraisal practices. The agency must establish minimum qualifications for and competency of review appraisers that are specific to the complexity of the scope of work. Contracted appraisers must meet State licensure or federal certification requirements. More information about the criteria for the appraiser process can be found in 49 C.F.R. 24.103.