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rebruary 10. 1969
Honorable Barund 8. Pinkie
Chairmen
Subcommittee on Intergovernaantel
Reletiona
Room 357
Old Senate Office luilding
Haebington, D. C.
Doe: Mr. Chairman:
Thia in in reaponee to your requaat of January 29 for the
vieva of the Advieory Comiaaion on Intergovernmental Relationa
with reapect to 8. l. the proposed Uniform Relocation Aaeiatance
and Land Acquiaition Policiea Act of 1969. The Cbunieeion atrongly
endoraee the propoeed legielation.
The Connieeion coneidara eatebliahnent of a uniform policy
for the fair and equitable relocation of pereona and bunineeeea
forced to move by lederel and federally aaaieted prograna ea one
of the top priority itana facing the 91at Congreaa. The Federal
Aid Highway Act of 1968 containa mandatory proviaione for relocation
aaaiatance to tboae diepleced by the Iederal aid highway eyetem and
the Bouaing and Urban Development Act of laat year broadened the
relocation eaeietence available under houeinx and urban prograna
nearly to reach the levele provided in S. 1. Yet ea all tboee who
are familiar with exietins rolocetion policiea annoy the quantion
of uniformity etill romaine and the pace of land ecquieition for
public purpoaea ia not alackening. The Coundaeion aleo eodnraea
aetabliahnant of a uniform land acquiaition policy (or Iaderel and
federally aaaiated programs.
. i i Q *
Turning tirat to the critical quaation of relocation. the
imperative need for developing a fair, uniforl, and conpreheneive
program in thia area baa been clearly documented in [our major
eurveye. Theee include the authoritative 8: tion and
A in P f lea ition i
I d re d to r l i ted by the Select Subcommittee
Honorable Edmund I. Muskie
Page 2
on Real Fruperty Acquiaition of the Comittee on Public Dorks
(Committee Print No. 31, 88th Gangrene. Second Besaion. 1964):
Relocetion: Unggggl Trglsglgt of People and Eggigggggg Diepleced
by Governments, by the Advisory Commieaion on Intergovernmental
Relationa (January 1965); ogging of Igloceted lggilig£~-Sgggggz of
the hureeu of the Egg!!! Survey 0; Iggilige 55535;}: Qigplacgd from
than Renewal Site.. by the then Housing and Home Finance Agency,
Office of the Ahiniatrator (mm 1965); and the W139,
Aggggtggc! Study, required by Section l2, P. L. 89-574, 89th Congrese.
Second Seaeion, prepared by Bureau of Public loads of the Department
of Transportation (July 1967). in addition, the Committeeeuof
Congreeo, especially your luhcorndttee, have held fairly extensive
hearings on this problem.
Analyeis of there etudiss reveals at leaat six basic findings
which document the ugly reelitiea of the relocation proceaa and indi-
catee the innediate necaaeity for a uniform national policy for
asaieting thoae forced to relocate because of the aoquiaition actions
of Federal end federally eeeieted public improvement efforts.
First. the earlier estimetea reletin; to the rate of future
acquieitiona were found to be much too conservative. Moreover. all
indications are that the rate of diaplacsment will continue to grow.
Thue, it ia noteworthy that while the House Select Subcommittee in
1966 estimated future annual diaplecanent of temiliea and individuale
by highway depertnente at 36,770 and bueineeaea and nonprofit
organisations at 3,876. the 1967 etudy by the Department of Trenc-
portation eetinated theee annual figures for the period July 1967
through June 1970 would be 48,983 and 3.559. reepectively.
Second, precticelly all of the etudiee underacore--directly
or indirectly--the inadequacy, incooaietency. and aerious inequities
of relocation easietance provided under existing legislation. There
inconaiatenciea are among different programs within the same level of
government--local, State, end lederal--and anon; levels of government.
They involve the amount end scope of relocation payments, advieory
aaaistnnce._end assurance with reepect to availability of standard
hauling. The recent highuey legislation .90. far towerda providing
greeter equity in a program that caueee significant displacement.
Yet we still face a aituation where in the case of a displaced
business that in forced to terminate. the urhen renewel program can
make relocation payments of up to $5,000. while Defense, Interior,
and NASA provide no comparable llsiatance.
Honorable ld-und I. nakie
Page 3
Third. all of the studies document the fact that the adveree
atfeota of relocation hit uoet aoveroly those (nailiea end indivi-
duals least able to vithatand them: the elderly. nonnhite. end the
poor. As the Department of Transportation study points out: 'The
preponderance o! the individuala and leniliea displaced...(nndar the
Highway Progran during the period April 1, l965. to October 1, 1966)...
were below the mid-range of the rental or residence value scale."
Fourth. a majority of thaaa atndiae shoe that email bueineseaa-
particularly thoae owned and run by the elderly--are the major buaineaa
victina of the relocation process. The Uouaa select Subcoemittee at
the outset tonnd that more of then are forced to discontinue than is
the case with businaaaea not touched by relocation.
Fifth, coat of the surveys indicate that advisory aasietance
is of growing importance in the relocation process. especially for
the nonuhitee, large families, and the elderly.
Birth, all of then indicate that the relocation process often
diecloaea the social and economic needs of displaced persons and that
it thereby offers an unusual Opportunity for helping these lose pri-
vileged groups.
i t t t i
As a general principle, the Advieory Collisaion believes that
governments have a reaponeibiiity (or helping diaplacees to relocate
and that this renponeibility atoms from too beaic eources: (l) govern-
ments exercise of eminent dooein in acquiring reel property; and
(2) ita concern for the eoononic and eocial ueltare of its citieens.
Under the constitutional doctrine of eminent domein in the United
States. government can fogg. people to sell their property. The
property owner thua cannot refuse to sell it he believes the price
offered is inanfiicient to compensate for all coata of reastabliahin;
himself. since the courts generally have limited compensation to the
fair narkat value of the real property acquired. property owners and
tenants must look to the legislature to be canpeneetad tor incidental
coata not covered by the value of the real property taken.
Unlike property owners displaced by public acqniaition. owners
dieplacad by private acquieition can hold out for e eelea price which
will assure than compensation for the coat of rasettlins. as well aa
Honorable ldnund I. Huakie
Page A
the Value of their real property. Tenante in either caee--public or
PriVOtI"hIVO littli Protection. Lover incooa groupe are uaually
rentare and find it moat difficult to rahouae and readjuat.
Government for many yearn haa had a policy of concern for
the economic and aociel opportunitiee oi ite citieena. Ihia concern
logically ehould include the eocial and acooonic affecta of forcible
dieplacaoent, particularly at thia juncture in tine.
The Connieeion ie convinced than that paraona and bueineaaea
dieplaced by local. State. or federal public aorta and other program-
are entitled to aaeietance in relocating. and thia entitlement extanda
to leaaeee and tenanta aa well ae to ounara of honea and buaineea
eatebliahmente.
On the heeia of ite findinga. the Adviaory Oomniaaion on
Intergovernmental Relationa hae made 1 recommendatione for local.
State. and rederal action to meet the problene of pereona dieplacad
by governmental prograne. lheaa recounandationa fall under eix
major headinga: (a) uniformity of relocation adviaory aeaiatance
and paymente; (h) aeeisnment of raaponaihility for determining relo-
¢lt$h PYn'ut'i (c) aeaurence of the availability of etanderd houein;
for diaplaced people; (d) financing of relocation coate; (a) modifi-
cationa of related Federal progrena to eaee the relocation procaee;
and (f) local organization. technical aaeietance. and planning for
relocation. lor Federal action, it reconnenda:
1. that the Gangrene eetabliah a uniform policy of
relocation paymente and adviaory aaaiatence for pareooe
and buaineeaea diaplaced by direct Federal progreoe and
by federal grant-in-aid prograna. and that the Preaident
direct that the neceaaary atepe be taken to formulate
uniform regulatione for carrying out auch a policy.
2. The Congreee ahould require that State and local
govarnmente adminietering Federal grant progreme aaaure
the availability of etandard houaing before proceeding
with any property acquisition that dieplaoea people. Thia
requirement ehould be at leaet conperehle to that in federal
urban renewal legielation. ensuring that (a) there in a
feaeible method for temporary relocation of dieplaced
Ianiliae and individuala. and that (b) there are or are
being provided atanderd houeing unite within their finan-
cial moose and in areaa reaaonably accaaaibla to their
placea of e-ployment.
honorable Edmund I. linskia
Page 5
3. Vith respect to financing relocation payments under
federally assisted prograee, the full costs of payments to
any person for relocating a lasily. and the costs of pay-
nents up to 025.000 to any person relocating a business,
should be coepletaly reiebursad by the raderal Governnent;
and the costs of business relocation peynenta in excess of
that amount should be shared on the basis of the cost-
sharing fomla governing the particular progran.
h. Ihe Snell Business Administration not should be
broadened to authorise disaster loans to small business
concerns (a) that setter substantial economic injury as
s result of a construction program conducted by State
and local government; or (b) that are adversely affected
but not actually displaced by govern-eat property takings.
5. The executive branch should: (a) authorise and
encourage all Federal agencies causing displacements in
urban areas to centraliss in a single local agency in
each major urban jurisdiction. through ioreal or informal
agreement. responsibility for administering relocation
planning. pay-cots, and services; and (b) require all
displacing agencies to give advance notice at the earliest
practicable tins to local units of general government of any
construction progress uhich will cause displacement.
8. 1 would carry out most at these raconnendations. basically,
this legislation would establish a uniforn policy of relocation pay-
ments and advisory assistance (or persons and businesses displaced by
Federal direct and grant-in-aid programs. Thus, under Section 211
heads of Federal agencies are required to make relocation payments
in direct federal programs causing displacement. such as those of
the GSA, Post Office Department, or the Defense Department, in
accordance uith regulations established by the President. Section
212 requires the same agencies to provide relocation assistance
programs and specifies that these include (a) determining needs for
assistance. (b) assuring the availability oi standard housing within
a reasonable period of time prior to displace-ant, (c) assisting
businesses and farm operators in relocating, (d) supplying infor-
mation regarding FHA. see. and other assistance progress. (a) helping
in mininieing readjustment problems. and (i) coordinating relocation
uith other project activities and governmental activities in the
comuunity or nearby areas.
Honorable Edmund s. Huakie
Page 6
Section Ill 0! I. l extenda IDat of the require-ants of
Sectione 211 and 212 with reepect to paymente and adviaory aeeiatence
to federally aeaiated programa conducted by State and local governmente.
Section 231(c) ia partially in accord with the Comiaoion
recommendation that the Federal Government fully reieburea State and
local governmenta for relocation paymente up to $25,000 in federally
aided progrema and on e orIuIa coat-eharin; baeie for any portion
above 025.000 per dieplacanent in that it authoriaae ouch paymenta
until July l972. The Federal reieburaement would be contingent on
the State or local agencya agreeing to provide relocation pay-ente
and adviaory aeeietence ae preacribed by Federal law and ragnlatione.
Finally. Section 24l(c) tollowe the Comiaaion recomenda-
tion that the executive branch encourage Federal agencies caueing
diaplacanenta in urban araaa to centraliae in each major urban
juriadiction reeponaibility for relocation adminietration. It
providea that the Freeidant may require any Federal agency to carry
out its relocation functione by entering into contracte or agree-
mente with any State or Local agency for uae oi ita relocation
facilities. pereonnel. and aervicea.
To one up, the Conniaeion'e recommendatione are in accord
with thoee in 8. l with reapeet to (a) uniformity among Federal
and federally aaeieted progreme concerning relocation paymente and
advieory aaeiatance. (b) aeaurance ol provieion of a supply of
atandard houeing tor thoee diaplaced. and (c) Federal encouragement
of coordination of relocation ahiniatration in major urban areas.
The commieeion alao eupporte Section le(e) which originally
wae advanced by the Bureau of the Budget during the courae of Senate
hearinge on the uniform relocation title of 8. 698 (The Intergovern-
mental Cooperation Act of 1968).. Under it, in addition to all other
amounte authorized. the head of the Federal agency would pay to the
owner of real property acquired (where the property ie a aingle--or
two-family dwelling occupied by the owner for a period not leee than
a year prior to negotiationa for taking) an aeount, up to $5.000
which when added to the ecquiaition payment, aquale the average price
required for a decent, ate, and unitary dwelling of modeet atandarda.
adequate in nice and reaeonably acceaaible to public eervicee and
placea of employment and available on the private market. Such a
payment would be made only to a dieplaced owner who purchaeea and
occupiee a dwelling within one year euhaequant to the date on which
he la required to move. Thia provieion daala apecifically with the
Honorehle Edmund I. Huekie
Pege 7
problem of the owner-occupent whoee reel property ie ecquired, but
et e market velue not eufficient to eneble him to ohtein adequate
euhetitute houein; with the proceede he receivee. Thie benefit to
the owner-occupent repreeente a oo-Iendable etep in reducing the
herdehipa which continually occur through narrow interpretetione
of the "felt nerket velue concept" in governmentel ecquieitiona
of reel property.
In light of the Coneieeion'e reconneodatione. we urge amend-
ment of 8. l et four pointe:
Piret. in order to extend the henefite of the recently
eepended can relocetion loen progren to enell buaineeeee
forced to eove ee e oonaequence of wholly ltete or locally
finenced ecquieition activitiee. we recon-end ineerting the
phreee "by the ltetee. or by their political eubdivieiona"
efter the word "vernnent"cn u- 13 of peregreph (3) of
Section 7(h), ee amended, of the Ilell lueineee Act
(15 0.8.6. 626(b)(3)).
Second, in order to help elleviete the fiecel plight
of atetee end locel governmente end to eeeure effective
continuetion of federelly eeeieted progrena requiring
relocation eeeietence under thie leeieletion, we recommend
deletion of the leet three eentencee of Section 23l(c)
(beginning on line 21. peee 17 end extending through line
7, peee l8) end ineertinx the following in lieu thereof:
"zlggigg_, Thet, notwithatending eny other low.
the Federel agency providing ouch eeeietence ehall
contribute the first QISJDO of the coat of providing
ouch peynente to any diepleced pereon: 521 provided
further, the: no ltete egency need agree to make eny
relocetion peynent in eeceee of 825,000 to any die-
pieced pereon in order to receive the eeeietence
euthorieed by the eubeection."
Ihird, in order to correct what we eeeune are typographi-
cel errore. we recommend deletion of the phreee "and (d)(2)"
on line 3. page lb end ineertion of "(d) and (f)" in lieu
thereof and deletion of "(d)" on line 20. pege l6 and line
1. page l7 end ineertion of "(e)" in lieu thereof.
ilonoreble M I. tau-hie
Page 8
Fourth. to achieve mitorn application of Section 1(3)
to federally auiated ea veil as direct Iederel pron-a.
ee urge insertion of tho phreae "or wider Section 231 o!
thie title after the word section on line 15. page ll.
title Ill of 8. l focueea on nary of the conpleinta that
have emerged in recent yeara concerning the equity of governmental
land acquisition precticee and the edeqnecy of traditional atendarda
of coweneation. Hoet of ita heal: prwiaiona gre- out o! the
lengthy atudy conducted by the Select luhco-nittee on Iaal Property
Acquieition of the Bone m-ittee on Public Uorta and in ite pn-
aent tom eeete noat of the objection prwiouely edvenced by the
Bureau of the Budget and affected lederel agenciea.
To stun the full Minute of thia title. it should be
recognised that property acquieitiona in tederel md federally
eaeiated progrena non avereae approxi-etely 1.8009000 acree a you
and involve approxi-etely 185.000 mere. Greater uniformity and
greater equity clearly are required it pron-a requiring theae
ecquiaitione are to proceed anothly and eithout rencor. Many of
the precticea eetabliehed by thia title ere already utilised by
certain Federal awcica end other novel-total juriedictione.
Thia euueeta that they ere leaeible .1! fully susceptible to i-ple-
nentetion provided prop-e ahiniatretore recognise the loo. tern
value of adhering to lend acquieition precticea that proaote public
confidence. Moreover. Section 323 eakaa adequate pmiaion tor the
time that certain Itetee night require to permit th- to comply with
Section 321(b) of thia title. The Adviaory Coieeion endoreed the
goela and haeic provleiona of the predeceaeor (Title I! of 8. 698)
title at ita April M. 1967 nesting.
. l I O t
To conclude. the Winery Con-alanion on Intergovernmental
Relatione etrongly urges early enath by the Congreae of thie
legia letlon .
Sincerely.
tarrie lryent
Quit-an
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