Section 104(d) Overview - YouTube

[Section 104(d) overview title slide]

[Exterior street view of Metro Community Planning Agency]

[Interior of Metro Community Planning Agency offices, woman approaches colleague’s cubicle]

Hi Bill, do you have a minute?

Sure, what’s up?

Remember that HUD funded rehabilitation project on First Street?

You know the one where the URA applied?

It turns out the building is in worse shape than they thought, so project plans have changed

from rehabilitation to demolition and new construction.

The developer has applied for HOME funds to help with the increased costs.

In addition to the URA, apparently another Federal law called Section 104(d) applies

to the project too.

I’m familiar with the URA, but have no idea what Section 104(d) is…do you?

Great timing Sally.

I participated in a Section 104(d) webinar just last week.

The webinar included a slide presentation.

Let me find those slides and it will help me explain what the law generally requires.

Here it is, Section 104(d) of the Housing and Community

Development Act of 1974, as amended The title is long, but most people just call

it the Section 104(d) or 104(d) for short.

Sally So what’s the purpose of 104(d)?

The URA already applies to the project.

Good question.

Although the URA was enacted in 1970, it seems that Congress wanted to establish additional

requirements which the URA didn’t address.

Apparently, they wanted to ensure certain HUD grant programs weren’t reducing the

supply of affordable housing by funding projects that demolish or convert affordable units.

They also wanted to offer special relocation assistance to lower income tenants displaced

by those projects.

Section 104(d) originally applied only to HUD’s Community Development Block Grant

program, known as CDBG, but was also applied to HUD’s Home Investment Partnerships program

in 1990.

So basically, Section 104(d) may apply when there’s a CDBG or HOME funded project involving

demolition or conversion.

But what do you mean by conversion?

Conversion generally means changing affordable housing into another use.

For example, the project might be keeping it as housing, but the end product will rent

above fair market rents and no longer be considered affordable.

Or, the project might be eliminating affordable housing in order to create something like

a commercial structure.

Another example would be taking affordable rental units and changing the building into

an emergency shelter.

The Section 104(d) regulations have a specific definition for Conversion and other important

104(d) terms, but this should give you a general idea.

Thanks.

I get it now and will definitely check out the regulations.

Where can I find them?

The Section 104(d) regulations are found at 24 CFR part 42.

So tell me more about 104(d).

Sure thing.

104(d) has 3 basic components: 1) A Residential Anti-displacement and Relocation

Assistance Plan (sometimes called a RARAP); 2) Required 1-for-1 replacement of affordable

housing units that are demolished or converted, and

3) Special relocation assistance for lower income residential tenants who are displaced

in connection with those activities.

Let’s talk about each component.

[Colleagues walk from cubicle to a meeting room with white board]

All CDBG or HOME grantees must certify that they have in effect and will follow a RARAP.

A RARAP describes how the grantee will do 3 things:

1) Minimize displacement 2) Provide Section 104(d) relocation assistance,

and 3) Achieve 1-for-1 replacement of affordable

housing that is demolished or converted

Do we have a RARAP?

Yes we do.

It’s actually a requirement in order to receive CDBG or HOME funding.

We created ours using the guide form from HUD Handbook 1378.

OK.

How about 1-for-1 replacement of affordable housing.

Do we have to replace all housing that is demolished or converted?

1-for-1 replacement is more difficult to explain.

Not all housing that is demolished or converted needs to be replaced.

Only recently occupied units or units that qualify as vacant occupiable housing need

to be replaced.

The regulations have specific definitions for these and other terms which help make

the determination.

When you’re required to replace units, there are planning and public notification requirements

involved.

It’s pretty detailed, so the regulations are a good resource to ensure compliance.

[Colleagues walk back to cubicle]

Lastly, there’s 104(d) relocation assistance.

Relocation assistance under Section 104(d) is similar to the URA.

However, it is calculated differently, and only displaced low-income residential tenants

are eligible.

The most important thing to note is that persons eligible for 104(d) relocation assistance

have the choice to receive it or URA relocation assistance.

104(d) relocation payments are often higher than URA relocation payments.

It’s the tenant’s choice, not ours, as to whether they choose URA or Section 104(d)

benefits.

Wow!

Section 104(d) sounds complicated.

I’ll make sure to check out the regulations so I can ensure our project is in compliance

with 104(d) requirements.

I’m also going to make sure there’s enough money budgeted in the project for those higher

104(d) relocation payments you mentioned.

There is going to be displacement now that the project changed from rehabilitation to

demolition.

That sounds like a good idea.

You might want to check in with our HUD Regional Relocation Specialist too.

She’s a great resource for 104(d) questions and guidance.

Thanks Bill.

I’ll do that.

Doesn’t HUD have a website too?

Yes they do.

www.hud.gov/relocation.

You might want to check out HUD Handbook 1378 too.

It’s on the website and provides lots of helpful information and guidance on the URA

and Section 104(d).

Thanks for the advice Bill.

I’ll do that too.