If a grantee uses NSP to acquire a property and allows a tenant to move into it temporarily (e.g., prior to reselling it to a developer or homebuyer or because the property is being land banked), would the tenant be entitled to relocation assistance when he or she is later required to move out?

Date Published: October 2012

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The tenant is not eligible for relocation assistance as long as two conditions are met:

  • The tenant must be a "subsequent tenant" in accordance with the URA, that is, the tenant must not have been an occupant of the house at the time of the Initiation of Negotiations (ION) for acquisition, demolition, rehabilitation, or conversion of the unit; and
  • Before agreeing to occupy the house, the grantee must provide the tenant with a Move-in Notice (per 24 CFR 570.606(b)(2)(ii)(B)) that advises the tenant that he could be displaced if a Federally financed project is implemented, and if he is displaced, he will not be eligible for relocation assistance as a displaced person under either the URA and/or Section 104(d).  

Note: Relocation and tenant protection can be a difficult subject for many grantees and mistakes can lead to costly findings. It is recommended that grantees contact their regional relocation specialist or HUD field office for guidance.

Tags: NSP Real Estate Acquisition and Relocation (URA and Other Requirements)