Displacement refers to the dislocation of people, businesses, institutions, or community facilities as a result of a project.

Displacement may be either direct or indirect:

  • Direct displacement involves involuntary displacement of a person who occupies property that is acquired, rehabilitated, or demolished for a HUD-funded activity; whose property is vacated to comply with HUD-assisted code enforcement; or whose property is specifically identified in a grant application as the site of a leveraged activity.
  • Indirect displacement results from an activity or event that is not HUD-assisted but which is supported by concentrated HUD activities. For example, this includes displacement caused by rapidly increasing rents made possible by the revitalization of an area in which HUD-funded rehabilitation or street improvements are taking place.

Important Considerations

  1. Will the project directly displace individuals or families? How many people?
  2. Will the project destroy or relocate existing jobs, community facilities, or any business establishments?
  3. Will the project affect identifiable groups, such as older persons, females, single-parent households, racial/ethnic groups, income groups, or minority group members?
  4. Are replacement facilities or housing units available within the community or in nearby neighborhoods? What will be the effect of relocation on these neighborhoods?
  5. Will the project result in probable indirect displacement? If so, what measures have been planned to alleviate the hardship on those affected whose displacement is not covered under the Uniform Relocation Act?

Analysis Techniques

Plot the location of the project on a land ownership map available at the local jurisdiction’s planning or assessor’s office to determine if the project sponsor will need to purchase any property and if residents, businesses, or institutions presently occupy the site. If the project requires relocation, then prepare an inventory of potential displaced entities by using a city directory, city census, or another listing of current building occupants. In larger cities, a Relocation Specialist is usually responsible for this activity.

It is more difficult to assess and forecast any resulting indirect displacement. An analysis of trends in the local real estate market, vacancy rates, recent sales and rental prices along with income statistics of the area can help indicate an area that might likely experience indirect displacement.

Additional Considerations

Federal law prohibits discrimination in housing and community development programs because of race, color, religion, sex, national origin, familial status, and disability. Recipients of HUD funding must also take steps to affirmatively further fair housing

The Uniform Relocation Act provides important protections and assistance for people affected by the acquisition, rehabilitation, or demolition of real property for federal or federally funded projects. Specific information concerning these requirements can be found in the following sources:

Mitigation Measures

Those directly displaced by a public acquisition are entitled to the assistance stipulated in HUD Handbook 1378: Tenant Assistance, Relocation and Real Property Acquisition.

Resources to Reference/Experts to Contact

  • Relocation Specialist at local community development agency
  • Relocation Specialist at HUD Field Office