REPLACEMENT HOUSING FOR HOMEOWNER.

SEC. 406. REPLACEMENT HOUSING FOR HOMEOWNER. Section 203(a) of the Uniform Act (42 U.S.C. 4623(a)) is amended— (1) by striking out “Federal” in the portion of paragraph (1) preceding subparagraph (A) and inserting in lieu thereof “displacing”; (2) by striking out “$15,000” and inserting in lieu thereof “$22,500”; (3) by striking out “acquired by” and all that follows through “the additional payment.” in paragraph (1)(A) and inserting in lieu thereof “acquired by the displacing agency, equals the reasonable cost of a comparable replacement dwelling.”; (4) by striking out paragraph (1)(B) and inserting in lieu thereof the following: “(B) The amount, if any, which will compensate such displaced person for any increased interest costs and other debt service costs which such person is required to pay for financing the acquisition of any such comparable replacement dwelling. Such amount shall be paid only if the dwelling acquired by the displacing agency was encumbered by a bona fide mortgage which was a valid lien on such dwelling for not less than 180 days immediately prior to the initiation of negotiations for the acquisition of such dwelling.”; and (5) by striking out paragraph (2) and inserting in lieu thereof the following: “(2) The additional payment authorized by this section shall be made only to a displaced person who purchases and occupies a decent, safe, and sanitary replacement dwelling within 1 year after the date on which such person receives final payment from the displacing agency for the acquired dwelling or the date on which the displacing agency’s obligation under section 205(c)(3) of this Act is met, whichever is later, except that the displacing agency may extend such period for good cause. If such period is extended, the payment under this section shall be based on the costs of relocating the person to a comparable replacement dwelling within 1 year of such date.”.