D.C. Mun. Regs. tit. 10, r. 10-B2223

Current through Register Vol. 71, No. 36, September 6, 2024

Rule 10-B2223 - PURCHASE OF REPLACEMENT HOUSING: LONG-TERM OWNERS

2223.1

A displaced person who is the owner and occupant of a dwelling for one hundred eighty (180) days before initiation of negotiations shall be eligible to receive an additional payment, not to exceed a total of fifteen thousand dollars ($15,000), to cover the following:

(a) The cost necessary to purchase replacement housing;

(b) Compensation for the loss of favorable financing on his or her existing mortgage in the financing of replacement housing; and

(c) Reimbursement of expenses incidental to the purchase of replacement housing when those costs are incurred as specified in this section.

2223.2

The owner-occupant shall be eligible for the payments if the following conditions are met:

(a) He or she is in occupancy at the initiation of negotiations for the acquisition of the real property, in whole or in part, or at the time he or she is furnished a written notice by the District that it intends to acquire the property by a specified date, and the occupancy has been for at least one hundred eighty (180) consecutive days immediately prior to the date of initiation of negotiations;

(b) The property was acquired from him or her by the District, and he or she relocates and occupies a decent, safe, and sanitary dwelling within one (1) year beginning on one (1) of the following dates, whichever is the latest:

(1) The date the owner receives from the District final payment for all costs of the acquired dwelling in any negotiated settlement, or, in the case of condemnation, the date the District deposits the required amount in court in a condemnation proceeding;

(2) The date the owner is required to move in accordance with a written notice to vacate issued by the District; or

(3) The date the owner moves, if earlier than the date stated in the notice to vacate on which he or she is required to move.

2223.3

A displaced owner-occupant who enters into a contract for the construction or rehabilitation of a replacement dwelling, and, for reasons beyond his or her control, is unable to occupy the replacement dwelling within the time period described in this section shall be deemed to have purchased and occupied the dwelling as of the date of the contract.

2223.4

The replacement housing payment shall be the amount, if any, which, when added to the amount paid for the property by the District at acquisition, equals the actual cost which the owner pays for a decent, safe, and sanitary dwelling, or the amount which the Relocation Office determines on the basis of approved schedules, comparables, or other approved method, to be necessary to purchase a comparable dwelling, whichever amount is less.

2223.5

Increased interest payments shall be provided to compensate a displaced person for the increased interest cost he or she is required to pay for financing a replacement dwelling if the deed of trust was a valid lien on the acquired dwelling for at least one hundred eighty (180) days prior to initiation of negotiations.

2223.6

Increased interest payments under § 2223.5 shall be equal to the difference between the following:

(a) The aggregate interest and other debt service costs of the amount of the principal of the deed of trust on the replacement dwelling, limited to the unpaid balance of the deed of trust on the acquired dwelling over its remaining term at the time of acquisition, and reduced to discounted present values, and

(b) The aggregate interest and other debt service costs paid on the deed of trust on the acquired dwelling.

2223.7

In making the computation required by § 2223.6, the aggregate interest and other debt service costs with respect to the replacement dwelling shall not exceed the prevailing interest rate currently charged by mortgage lending institutions in the District, or, if the replacement dwelling is located outside of the District, in the area in which the dwelling is located.

2223.8

The discount rate for computing the present worth of future payments of increased interest shall be computed at the prevailing interest rate paid on savings deposits by commercial banks in the District or in the area where the replacement dwelling is located.

2223.9

A payment for incidental expenses shall be provided to compensate a displaced person for costs incident to the purchase of a replacement dwelling and shall be the amount necessary to reimburse that person for actual incidental costs. These costs may include the following:

(a) Legal, closing, and related costs, including title search, preparing conveyance contracts, notary fees, surveys, preparing drawings or plats, and charges paid incident to recordation;

(b) Lenders, Federal Housing Administration, or Veterans Administration appraisals;

(c) Federal Housing Administration or Veterans Administration application fees;

(d) Certifications of structural soundness;

(e) Credit Reports;

(f) Owner's and mortgagee's evidency or assurance of title;

(g) Escrow agent's fees; and

(h) Sales or transfer taxes.

2223.10

No reimbursement shall be made for any fee, cost, charge, or expense which is determined to be part of the debt service of finance charge under Title I of the Truth in Lending Act ( Public Law 90-321), and Regulation "Z" ( 12 CFR Part 226) issued pursuant to that Act by the Board of Governors of the Federal Reserve System.

D.C. Mun. Regs. tit. 10, r. 10-B2223

§ 503(b) of the Relocation Regulations, Regulation No. 73-4, 19 DCR 599, 618 (February 21, 1973)