If the former owner is still living in a lender-foreclosed property, would an NSP grantee be required to pay relocation to the former owner if he will be displaced for an NSP-funded activity?

Date Published: October 2012

Print ShareThis


If the former owner is a lawful occupant and is displaced by the NSP-funded activity, he is eligible for relocation assistance and payments under URA. An unlawful occupant (per 49 CFR 24.2(a)(29)) displaced for an NSP-funded acquisition is not entitled to relocation assistance and payments. The grantee needs to make a careful determination about whether or not the former owner is a lawful occupant. A lawful occupant could be the former owner who was permitted to "hold over" under a lease with the lender-foreclosing entity as opposed to a former owner who simply refused to vacate in spite of a legal order or court action.  

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)