N.Y. Comp. Codes R. & Regs. tit. 9 § 277.4

Current through Register Vol. 46, No. 43, October 23, 2024

Section 277.4 - Payments for moving and related expenses

(a)Actual moving expenses-residential moves.

Any displaced owner-occupant or tenant of a dwelling who qualifies as a displaced person is entitled to payment of his or her actual moving and related expenses, as the agency determines to be reasonable and necessary, including expenses for:

(1) Transportation of the displaced person and personal property. Transportation costs for a distance beyond 50 miles are not eligible, unless the agency determines that relocation beyond 50 miles is justified.

(2) Packing, crating, unpacking and uncrating of the personal property.

(3) Disconnecting, dismantling, removing, reassembling, and reinstalling relocated household appliances and other personal property.

(4) Storage of the personal property for a period not to exceed 12 months, unless the agency determines that a longer period is necessary.

(5) Insurance for the replacement value of the property in connection with the move and necessary storage.

(6) The replacement value of property lost, stolen, or damaged in the process of moving (not through the fault or negligence of the displaced person, the displaced person's agent or employee) where insurance covering such loss, theft, or damage is not reasonably available.

(7) Other moving-related expenses that are not listed as ineligible under section 277.4(e), as the agency determines to be reasonable and necessary.

(b)Scheduled payment for moving expenses-residential moves.

Any person displaced from a dwelling or seasonal residence shall be entitled to a fixed amount in accordance with the room-count schedule below as an alternate to the payment provided for in (a) above. If the eligible person to be displaced elects to receive a scheduled payment, the following schedules shall apply:

ROOM-COUNT SCHEDULE

Unfurnished Units:	Each
1 Room	2	3	Additional Room
$250	$400	$550	$100
Unfurnished units, sleeping rooms:
1 Room	Additional Room
$225	$35

Payment on the scheduled basis to a person occupying a furnished one-room unit shared by more than one other person is limited to $50 if the move is performed by the agency at no cost to the person.

(c)Actual moving expenses-nonresidential moves.

(1) Eligible costs.

Any business or farm operation which qualifies as a displaced person is entitled to payment for such actual moving and related expenses as the agency determines to be reasonable and necessary, including expenses for:

(i) Transportation of personal property. Transportation costs for a distance beyond 50 miles are not eligible, unless the agency determines that relocation beyond 50 miles is justified.

(ii) Packing, crating, unpacking and uncrating of the personal property.

(iii) Disconnecting, dismantling, removing, reassembling and reinstalling relocated machinery, equipment and other personal property, described at subparagraph (xii) of this paragraph. This includes connection to utilities available nearby. It also includes modifications to the personal property necessary to adapt it to the replacement site, and modifications necessary to adapt the utilities at the replacement site to the personal property. (Expenses for providing utilities from the right-of-way to the building or improvement are excluded).

(iv) Storage of the personal property for a period not to exceed 12 months, unless the agency determines that a longer period is necessary.

(v) Insurance for the replacement value of the personal property in connection with the move and necessary storage.

(vi) Any license, permit or certification required of the displaced person at the replacement location. However, the payment may be based on the remaining useful life of the existing license, permit or certification.

(vii) The replacement value of property lost, stolen, or damaged in the process of moving (not through the fault or negligence of the displaced person, the displaced person's agent or employee) where insurance covering such loss, theft, or damage is not reasonably available.

(viii) Professional services necessary for:

(a) planning the move of the personal property;

(b) moving the personal property; and

(c) installing the relocated personal property at the replacement location.

(ix) Relettering signs and replacing stationery on hand at the time of displacement that are made obsolete as a result of the move.

(x) Actual direct loss of tangible personal property incurred as a result of moving or discontinuing the business or farm operation. The payment shall consist of the lesser of:

(a) the fair market value of the item for continued use at the displacement site, less the proceeds from its sale. (To be eligible for payment, the claimant must make a good faith effort to sell the personal property, unless the agency determines that such effort is not necessary. When payment for property loss is claimed for goods held for sale, the fair market value shall be based on the cost of the goods to the business, not the potential selling price); or

(b) the estimated cost of moving the item, but with no allowance for storage. (If the business or farm operation is discontinued, the estimated cost shall be based on a moving distance of 50 miles.)

(xi) The reasonable cost incurred in attempting to sell an item that is not to be relocated.

(xii) Purchase of substitute personal property. If any item of personal property which is used as part of a business or farm operation is not moved but is promptly replaced with a substitute item that performs a comparable function at the replacement site, the displaced person is entitled to payment of the lesser of:

(a) the cost of the substitute item, including installation costs at the replacement site, minus any proceeds from the sale or trade-in of the replaced item; or

(b) the estimated cost of moving and reinstalling the replaced item but with no allowance for storage. At the agency's discretion, the estimated cost for a low cost or uncomplicated move may be based on a single bid or estimate.

(xiii) Searching for a replacement location. A displaced business or farm operation is entitled to reimbursement for actual expenses, not to exceed $1,000, as the agency determines to be reasonable, which are incurred in searching for a replacement location, including:

(a) transportation;

(b) meals and lodging away from home;

(c) time spent searching, based on reasonable salary or earnings; and

(d) fees paid to a real estate agent or broker to locate a replacement site, exclusive of any fees or commissions related to the purchase of such site.

(xiv) Other moving-related expenses that are not listed as ineligible under section 277.4(e), as the agency determines to be reasonable and necessary.

(2) Notification and inspection.

The following requirements apply to payments under this section:

(i) The agency shall inform the displaced person in writing of the requirements of subparagraphs (ii) and (iii) of this paragraph as soon as possible after the initiation of negotiations.

(ii) The displaced person must provide the agency reasonable advance written notice of the approximate date of the start of the move or disposition of the personal property and a list of the items to be moved.

(iii) The displaced person must permit the agency to make reasonable and timely inspections of the personal property at both the displacement and replacement sites and to monitor the above.

(3) Self-moves.

If the displaced person elects to take full responsibility for the move of the business or farm operation, the agency may make a payment for the person's moving expenses in an amount not to exceed the lower of the two acceptable bids or estimates obtained by the agency or prepared by qualified staff. At the agency's discretion, a payment for a low cost or uncomplicated move may be based on a single bid or estimate.

(4) Transfer of ownership.

Upon request and in accordance with applicable law, the claimant shall transfer to the State ownership of any personal property that has not been moved, sold, or traded in.

(5) Advertising signs.

The amount of a payment for direct loss of an advertising sign which is personal property shall be the lesser of:

(i) the depreciated reproduction cost of the sign, as determined by the agency, less the proceeds from its sale; or

(ii) the estimated cost of moving the sign, but with no allowance for storage.

(d)Fixed payment for moving expenses-nonresidential moves.

(1) Business.

A displaced business may be eligible to choose a fixed payment in lieu of the payments for actual moving and related expenses, and actual reasonable reestablishment expenses provided by section 277.4(c) and 277.4(f) respectively. Such fixed payment, except for payment to a not-for-profit organization, shall equal the average annual net earnings of the business, as computed in accordance with paragraph (5) of this subdivision, but not less than $1,000 nor more than $20,000. The displaced business is eligible for the payment if the agency determines that:

(i) The business owns or rents personal property which must be moved in connection with such displacement and for which an expense would be incurred in such move; and, the business vacates or relocates from its displacement site.

(ii) The business cannot be relocated without a substantial loss of its existing patronage (clientele or net earnings). A business is assumed to meet this test unless the agency determines that it will not suffer a substantial loss of its existing patronage.

(iii) The business is not part of a commercial enterprise having more than three other entities which are not being acquired and which are under the same ownership and engaged in the same or similar business activities.

(iv) The business is not operated at a displacement dwelling solely for the purpose of renting such dwelling to others.

(v) The business contributed materially to the income of the displaced person during the two taxable years prior to displacement.

(2) Determining the number of businesses.

In determining whether two or more displaced legal entities constitute a single business which is entitled to only one fixed payment, all pertinent factors shall be considered, including the extent to which:

(i) the same premises and equipment are shared;

(ii) substantially identical or interrelated business functions are carried out and business and financial affairs are commingled;

(iii) the entities are held out to the public, and to those customarily dealing with them, as one business; and

(iv) the same person or closely related persons own, control or manage the affairs of the entities.

(3) Farm operation.

A displaced farm operation may choose a fixed payment, in lieu of the payments for actual moving and related expenses and actual reasonable reestablishment expenses, in an amount equal to its average annual net earnings as computed in accordance with paragraph (5) of this subdivision, but not less than $1,000 nor more than $20,000. In the case of a partial acquisition of land which was a farm operation before the acquisition, the fixed payment shall be made only if the agency determines that:

(i) the acquisition of part of the land caused the operator to be displaced from the farm operation on the remaining land; or

(ii) the partial acquisition caused a substantial change in the nature of the farm operation.

(4) Not-for-profit organization.

A displaced not-for-profit organization may choose a fixed payment of $1,000 to $20,000, in lieu of the payments for actual moving and related expenses and actual reasonable reestablishment expenses, if the agency determines that it cannot be relocated without a substantial loss of existing patronage (membership or clientele). A not-for-profit organization is assumed to meet this test, unless the agency demonstrates otherwise. Any payment in excess of $1,000 must be supported with financial statements for the two 12-month periods prior to the acquisition. The amount to be used for the payment is the average of 2 years annual gross revenues less administrative expenses. Gross revenues may include membership fees, class fees, cash donations, tithes, receipts from sales or other forms of fund collection that enables the not-for-profit organization to operate. Administrative expenses are those for administrative support such as rent, utilities, salaries, advertising and other like items as well as fund-raising expenses. Operating expenses for carrying out the purposes of the not-for-profit organization are not included in administrative expenses. The monetary receipts and expense amounts may be verified with certified financial statements or other documents required by the agency.

(5) Average annual net earnings of a business or farm operation.

The average annual net earnings of a business or farm operation are one-half of its net earnings before Federal, State, and local income taxes during the two taxable years immediately prior to the taxable year in which it was displaced. If the business or farm was not in operation for the full two taxable years prior to displacement, net earnings shall be based on the actual period of operation at the displacement site during the two taxable years prior to displacement, projected to an annual rate. Average annual net earnings may be based upon a different period of time when the agency determines it to be more equitable. Net earnings include any compensation obtained from the business or farm operation by its owner, the owner's spouse and dependents. The displaced person shall furnish the agency proof of net earnings through income tax returns, certified financial statements, or other reasonable evidence which the agency determines is satisfactory.

(e)Ineligible moving and related expenses.

A displaced person is not entitled to payment for:

(1) the cost of moving any structure or other real property improvement in which the displaced person reserved ownership. However, this Part does not preclude the computation under section 277.5(a)(3)(iv); or

(2) interest on a loan to cover moving expenses; or

(3) loss of goodwill; or

(4) loss of profits; or

(5) loss of trained employees; or

(6) any additional operating expenses of a business or farm operation incurred because of operating in a new location except as provided in section 277.4(f)(1)(x); or

(7) personal injury; or

(8) any legal fee or other cost for preparing a claim for a relocation payment or for representing the claimant before the agency; or

(9) expenses for searching for a replacement dwelling; or

(10) physical changes to the real property at the replacement location of a business or farm operation except as provided in section 277.4(c)(1)(iii) and section 277.4(f)(1); or

(11) costs for storage of personal property on real property already owned or leased by the displaced person.

(f)Reestablishment expenses-nonresidential moves.

In addition to the payments available under section 277.4(c) of this section, a small business, farm or not-for-profit organization may be eligible to receive a payment, not to exceed $10,000, for expenses actually incurred in relocating and reestablishing such small business, farm, or not-for-profit organization at a replacement site.

(1) Eligible expenses.

Reestablishment expenses must be reasonable and necessary as determined by the agency. They may include, but are not limited to the following:

(i) Repairs or improvements to the replacement real property as required by Federal, State or local law, code or ordinance.

(ii) Modifications to the replacement property to accommodate the business operation or make replacement structures suitable for conducting the business.

(iii) Construction and installation costs, not to exceed $1,500 for exterior signing to advertise the business.

(iv) Provision of utilities from right-of-way to improvements on the replacement site.

(v) Redecoration or replacement of soiled or worn surfaces at the replacement site, such as paint, paneling or carpeting.

(vi) Licenses, fees and permits when not paid as part of moving expenses.

(vii) Feasibility surveys, soil testing and marketing studies.

(viii) Advertisement of replacement location, not to exceed $1,500.

(ix) Professional services in connection with the purchase or lease of a replacement site.

(x) Increased costs of operation during the first two years at the replacement site, not to exceed $5,000, for such items as:

(a) lease or rental charges;

(b) personal or real property taxes;

(c) insurance premiums; and

(d) utility charges, excluding impact fees.

(xi) Impact fees or one-time assessments for anticipated heavy utility usage.

(xii) Other items that the agency considers essential to the reestablishment of the business.

(xiii) Expenses in excess of the maximums set forth in subparagraphs (iii), (viii) and (x) of this paragraph may be considered eligible if large and legitimate disparities exist between costs of operation at the displacement site and costs of operation at an otherwise similar replacement site. In such cases the limitation for reimbursement of such costs may be waived by the agency but in no event shall total costs payable under this subparagraph exceed the $10,000 maximum.

(2) Ineligible expenses.

The following is a nonexclusive listing of reestablishment expenditures not considered to be reasonable, necessary, or otherwise eligible:

(i) Purchase of capital assets, such as office furniture, filing cabinets, machinery or trade fixtures.

(ii) Purchase of manufacturing materials, production supplies, product inventory or other items used in the normal course of the business operation.

(iii) Interior or exterior refurbishments at the replacement site which are for aesthetic purposes, except as provided in subparagraph (1)(v) of this subdivision.

(iv) Interest on money borrowed to make the move or purchase the replacement property.

(v) Payment to a part-time business in the home which does not contribute materially to the household income.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 277.4