CONSERVING NEIGHBORHOODS AND HOUSING BY PROHIBITING DISPLACEMENT.

SEC. 509. CONSERVING NEIGHBORHOODS AND HOUSING BY PROHIBITING DISPLACEMENT. (a) In General.— Section 104 of the Housing and Community Development Act of 1974 is amended— (1) by redesignating subsections (d) through (j) as subsections (e) through (k), respectively; and (2) by inserting after subsection (c) the following new subsection: 101 STAT. 1928 “(d) (1) A grant under section 106 or 119 may be made only if the grantee certifies that it is following a residential antidisplacement and relocation assistance plan. A grantee receiving a grant under section 106(a) or section 119 shall so certify to the Secretary. A grantee receiving a grant under section 106(d) shall so certify to the State. “(2) The residential antidisplacement and relocation assistance plan shall in connection with a development project assisted under section 106 or 119— “(A) in the event of such displacement, provide that— “(i) governmental agencies or private developers shall provide within the same community comparable replacement dwellings for the same number of occupants as could have been housed in the occupied and vacant occupiable low and moderate income dwelling units demolished or converted to a use other than for housing for low and moderate income persons, and provide that such replacement housing may include existing housing assisted with project based assistance provided under section 8 of the United States Housing Act of 1937; “(ii) such comparable replacement dwellings shall be designed to remain affordable to persons of low and moderate income for 10 years from the time of initial occupancy; “(iii) relocation benefits shall be provided for all low or moderate income persons who occupied housing demolished or converted to a use other than for low or moderate income housing, including reimbursement for actual and reasonable moving expenses, security deposits, credit checks, and other moving-related expenses, including any interim living costs; and in the case of displaced persons of low and moderate income, provide either— “(I) compensation sufficient to ensure that, for a 5-year period, the displaced families shall not bear, after relocation, a ratio of shelter costs to income that exceeds 30 percent; or “(II) if elected by a family, a lump-sum payment equal to the capitalized value of the benefits available under subclause (I) to permit the household to secure participation in a housing cooperative or mutual housing association; “(iv) persons displaced shall be relocated into comparable replacement housing that is— “(I) decent, safe, and sanitary; “(II) adequate in size to accommodate the occupants; “(III) functionally equivalent; and “(IV) in an area not subject to unreasonably adverse environmental conditions; “(B) provide that persons displaced shall have the right to elect, as an alternative to the benefits under this subsection, to receive benefits under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4601 et seq.) if such persons determine that it is in their best interest to do so; and “(C) provide that where a claim for assistance under subparagraph (A)(iv) is denied by a grantee, the claimant may appeal to the Secretary in the case of a grant under section 106 or 119 or to the appropriate State official in the case of a grant under 101 STAT. 1929section 106(d), and that the decision of the Secretary or the State official shall be final unless a court determines the decision was arbitrary and capricious. “(3) Paragraphs (2)(A)(i) and (2)(A)(ii) shall not apply in any case in which the Secretary finds, on the basis of objective data, that there is available in the area an adequate supply of habitable affordable housing for low and moderate income persons. A determination under this paragraph is final and nonreviewable.”. (b) Effective Date.— The amendment made by subsection (a) shall take effect on October 1, 1988.