CDBG Entitlement FAQ

What other requirements in addition to the CDBG regulations apply when real property is acquired under the CDBG program?

Date Published: October 2018

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Pursuant to 24 CFR 570.606, CDBG grantees must follow the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA), as amended. The URA, passed by Congress in 1970, establishes minimum standards for federally funded programs and projects that require the acquisition of real property (real estate) or displace persons from their homes, businesses, or farms. The URA's protections and assistance apply to the acquisition, rehabilitation, or demolition of real property for federal or federally funded projects. The government-wide regulation that implements the URA can be found at 49 CFR Part 24.

Relocation advisory services are the single most important part of a successful relocation program. Relocation advisory services are required to be provided to all eligible displaced persons including nonresidential displaced persons. These include determining the needs of displaced persons, explaining benefits that the displaced person might be entitled to, and providing listings of comparable dwellings for residential displacements and replacement sites for businesses, among others.

The CDBG program must also comply with the anti-displacement requirements of Section 104(d) of the URA. The URA is quite complex. Grantees are strongly encouraged to contact their HUD Regional Relocation Specialist for assistance.

Please note that acquiring real property with CDBG funds through eminent domain (condemnation) for economic development projects benefiting private, for-profit businesses is prohibited. This is a statutory prohibition contained annually in the HUD appropriations bill since 2006. New housing construction (by itself, not mixed-use) is not economic development in 24 CFR 570.203.

Tags: CDBG Entitlement Program Acquisition-Disposition-Demolition

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