Adm 92.90(1)(e)
(e) The entire business or farm operation shall be displaced to qualify for a replacement payment. However, a business or farm operation shall be considered eligible for a replacement payment when:
Adm 92.90(1)(e)1.
1. The property remaining after the acquisition is not an economic unit or would result in a significant reduction in net earnings for the same type of business or farm operation, as determined by an agency;
Adm 92.90(1)(e)2.
2. The acquisition substantially changed or interfered with the principal operation or the nature of the business or farm operation so as to constitute a displacement.
Adm 92.90(2)
(2) Delayed occupancy for construction and rehabilitation. A person who contracts for the construction or rehabilitation of a replacement building, is considered to have purchased the replacement as of the date of the contract. The replacement payment may be deferred until a final acquisition price is known and relocation is completed provided the agency makes payment into an interest-bearing escrow account for release upon reestablishment of the business or farm operation. An agency may pay a person before reestablishment when there is assurance of reestablishment.
Adm 92.90(3)
(3) Prior ownership of a replacement building or land. An agency shall pay a person who is an owner of a replacement building or land upon which a replacement building is constructed and within the time limit under sub.
(1), a replacement payment as specified under this subchapter. The fair market value of the land and the building at the time of displacement shall be used as the actual cost in determining the payment.
Adm 92.90(4)
(4) Inspection for compliance with federal, state or local code. An agency shall inspect a replacement business or farm operation to determine if it meets federal, state or local codes before making a replacement payment. An agency shall take the following steps before terminating assistance or denying eligibility for a replacement payment because a person moved to a facility which is not in compliance;
Adm 92.90(4)(a)
(a) Assist a person to correct a deficiency and when necessary, refer a person to another facility in compliance with applicable codes;
Adm 92.90(4)(b)
(b) Notify a person in writing within 10 days of the inspection regarding a deficiency to be corrected to receive payment, and that when the deficiency is corrected by the date as specified under sub.
(1), or when a person moves to another facility which is in compliance, the person shall receive payment.
Adm 92.90(5)
(5) Statement of eligibility to lender. An agency, upon request of a person to be relocated, shall inform an interested person or mortgage lender that the person shall be eligible for a replacement payment upon the purchase or rent and reestablishment of a replacement property within the applicable time limit.
Adm 92.90(6)
(6) Advance payment in condemnation case. An agency shall promptly pay a replacement business or farm payment. An advance payment shall be made when an agency determines the acquisition payment will be delayed because of condemnation proceedings. An agency's offer shall be used as the acquisition price for calculating the payment. The payment shall be contingent on a person signing an affidavit of intent that:
Adm 92.90(6)(a)
(a) The agency shall re-compute the replacement payment using the acquisition amount, set by the court;
Adm 92.90(6)(b)
(b) The person shall refund the excess amount from the judgment when the amount awarded as acquisition amount plus the advance payment exceeds the amount paid for a replacement or the agency's determined cost of a comparable replacement. A person is not required to refund more than the advance payment. The payment shall be made after the condemnation proceedings are completed when a person does not sign an affidavit.
Adm 92.90(7)
(7) Carve-out and modification of replacement payment computation. Adm 92.90(7)(a)1.1. `Typical size lot.' The maximum replacement payment shall be the selling price of a comparable replacement on land typical in size for the business less the price of the acquired building and the site when the acquired business is located on land typical in size for the type of business conducted.
Adm 92.90(7)(a)2.
2. `Larger than typical size lot.' The maximum replacement payment shall be the selling price of a comparable replacement on land typical in size for the business, less the price of the acquired building, plus the price of that portion of the acquired land typical in size for the business being conducted, when the acquired business is located on land larger in size than typical for the type of business conducted.
Adm 92.90(7)(b)1.1. `Typical size lot.' The maximum replacement payment shall be the selling price of a comparable replacement on land typical in size for the business, less the value of that portion of the acquired property which represents the typical size for the business, when the acquired business is located on land larger than typical for the business conducted.
Adm 92.90(7)(b)2.
2. `Larger than typical size lot.' The maximum replacement payment shall be the selling price of a comparable replacement on land typical in size for the business, less the value of that portion of the acquired property which represents the typical size for the business, when the acquired business is located on land larger in size than typical for the business conducted.
Adm 92.90(7)(b)3.
3. `Remainder property.' If a buildable residential lot or an uneconomic remnant remains after a partial taking and the owner of the remaining property refuses to sell the remainder to the agency, the market value of the remainder may be added to the acquisition cost for the purposes of computing the payment.
Adm 92.90 Note
Note: Under ss.
32.05 (3m) and
32.06 (3m), Stats., an agency is required to offer to purchase a remainder if it is an uneconomic remnant.
Adm 92.90(7)(c)
(c)
A business or farm operation on land with higher and better use. The maximum payment shall be the selling price of a comparable replacement business or farm operation on land typical in size for the existing business or farm use in the area, less the price for the acquired property and the price of that portion of the acquired land which represents land typical for the existing use, when the market value is based on a higher and better use than the existing use.
Adm 92.90(7)(d)
(d)
Mixed residential and nonresidential use property. An agency shall determine a replacement payment by using only that portion of the acquired or displacement property occupied by the displaced business or farm.
Adm 92.90(7)(e)1.
1. Each separately organized business or farm operation which occupies a parcel shall be eligible for a replacement payment. The acquisition price or rent used for a replacement payment computation shall be the amount each business or farm occupant receives from the total payment for the property acquired, or the rent each tenant-occupant pays toward the total rent.
Adm 92.90(7)(e)2.
2. There shall be only one business or farm operation replacement payment for a business or farm operation under one ownership but engaged in more than one operation.
Adm 92.90 Note
Note: An agency shall consider the factors under s.
Adm 92.66 in determining whether more than one business or farm is eligible for payment under this subchapter.
Adm 92.90(7)(f)
(f)
Decentralization of business or farm. The purchase price or the cost of a replacement, when a business or farm operation displaced from one site relocates to more than one site. The replacement payment shall be limited to a selected comparable at one site unless an agency determines the needs of a business or farm operation require location at more than one site.
Adm 92.90(7)(g)
(g)
Joint business and investment use. A person who owns and occupies a business and also rents out a residence or business facility on the same property, shall receive a replacement payment based only on that portion of the space and that portion of the acquisition price utilized by the business.
Adm 92.90(8)
(8) Nonprofit organization. A nonprofit organization is eligible for a replacement business payment as specified under this chapter, provided the organization has not claimed a replacement housing payment under subch.
V.
Adm 92.90(9)
(9) Outside professional assistance. The agency may use professional assistance to reestablish a displaced business or farm operation. Professional assistance for searching and other incidental expense incurred by a displaced person shall be compensable if the costs are necessary for reestablishment of the business or farm operation.
Adm 92.90 History
History: Cr.
Register, March, 1986, No. 363, eff. 4-1-86; am. (1) (a) and (b), (3) and (7) (d),
Register, November, 1989, No. 407, eff. 12-1-89.
Adm 92.92
Adm 92.92
Owner-occupant who purchases. An agency shall pay an owner-occupant of a business or farm operation a payment, not to exceed $50,000, for the difference necessary to purchase a replacement business or farm operation; for the loss of favorable financing on an existing mortgage or land contract in financing a replacement property, and expenses incidental to the purchase of a replacement business or farm operation. The payment shall be computed as specified under this section.
Adm 92.92(1)
(1) Differential amount payable. A differential amount payable is an amount, if any, when added to the acquisition payment for the acquired business or farm operation, equals an amount a person pays for a replacement property, or an amount determined by an agency as necessary to purchase a comparable replacement, whichever is less. A replacement payment shall include the difference between the price paid for a fixture or other real property improvement acquired and the cost to purchase and install the improvement in a replacement facility. A replacement payment shall also include the cost to modify a property to meet comparable standards and code requirements.
Adm 92.92(2)
(2) Selection and cost of comparable and actual replacements. The agency shall determine the cost of a comparable replacement business or farm operation by analyzing 3 or more comparable replacement business or farm operations and selecting the one that is the most comparable. Fewer may be analyzed if 3 are not available.
Adm 92.92(2)(a)
(a) An agency may adjust the asking price of the selected comparable if considered justified on the basis of local market conditions. The agency's relocation plan shall specify if adjustments will be made for the project, the basis for this determination and the method of adjustment to be used.
Adm 92.92(2)(b)
(b) The cost of physical changes or improvements necessary to meet comparable standards in the selected comparable or the actual replacement shall be included in the maximum replacement payment.
Adm 92.92(2)(c)
(c) An agency shall select a comparable business or farm operation from the area of a displaced person provided the area is not designated for governmental acquisition and displacement, or subject to adverse environmental conditions.
Adm 92.92(2)(d)
(d) The selected comparable shall be equal to or better than the acquired property and a payment shall be based on new construction when there is no comparable business or farm operation available.
Adm 92.92(3)
(3) Revision to selected comparable amount. An agency, upon request of a displaced person, shall offer a comparable replacement business or farm operation within the maximum differential payment determined. Another comparable study shall be made to determine a new replacement payment when there is no comparable available, except the new replacement payment may not be less than the original payment.
Adm 92.92(4)(a)
(a)
General. An agency shall pay a displaced person for the increased interest expense and other debt service costs incurred in financing the purchase of a replacement business or farm operation, provided:
Adm 92.92(4)(a)1.
1. The acquired business or farm operation property was encumbered by a bona fide mortgage or land contract;
Adm 92.92(4)(a)2.
2. The mortgage or land contract was executed in good faith not less than one year before initiation of negotiations to purchase the property;
Adm 92.92(4)(a)3.
3. All bona fide mortgages or land contracts that were valid liens on the displacement property for at least one year before initiation of negotiations on the acquired property shall be used to compute the increased interest payment.
Adm 92.92(4)(b)
(b)
Payment computation. The increased interest payment shall be computed as follows:
Adm 92.92(4)(b)1.
1. The interest payment difference shall be an amount which will reduce the mortgage balance on the replacement property to an amount which could be amortized with the same monthly payment for principal and interest as that for the mortgage or mortgages on the displacement property, except that the payment for a person obtaining a mortgage that is less than the mortgage balance computed in the buydown determination, shall be prorated and reduced accordingly.
Adm 92.92(4)(b)2.
2. The amount paid by a person as points, loan origination or assumption fees, but not seller's points, shall be based on the amount refinanced, not exceeding the amount which would have been paid had the original mortgage balance been refinanced, and shall be added to an amount as specified under subd.
1. The origination or assumption fee shall be limited to the fee normal for real estate transactions in the area.
Adm 92.92(4)(c)
(c)
Interest rate on replacement mortgage. The interest rate on the mortgage for a replacement business or farm operation used in the computation may not exceed the rate typically charged by mortgage lenders in the area.
Adm 92.92(4)(d)
(d)
Mortgage term. The payment shall be based on the remaining term of the mortgage(s) on the displacement dwelling regardless of the term on the new mortgage.
Adm 92.92(4)(e)1.1. Larger than typical size lot. The interest payment shall be reduced to the percentage ratio that the value of the typical and necessary part is to the value of the entire property before acquisition, when a property is located on a lot larger than typical and necessary for the type of business or farm operation being operated.
Adm 92.92(4)(e)2.
2. Multi-use property. The interest payment on multi-use property shall be reduced to the percentage ratio that the business or farm operation value of the multi-use property is to the value of the entire property before acquisition.
Adm 92.92(4)(e)3.
3. Business or farm on land with higher and better use. An agency shall compute an interest payment under par.
(b), when a business or farm operation is located on land where the fair market value is established on a higher and better use, and when the mortgage is based on business or farm operation value. The interest payment shall be reduced to the percentage ratio that the estimated business or farm operation value of the parcel is to the value of the entire property before acquisition, when the mortgage is based on the higher use.
Adm 92.92(4)(f)
(f)
Prompt payment. An agency shall advise a displaced person of the approximate amount of a refinancing payment as soon as the facts relative to a person's mortgages are known. If requested by the displaced person, the refinancing payment shall be made available at or near the time of closing on the replacement to permit reduction of the new mortgage amount.
Adm 92.92(5)
(5) Incidental expense payment. An agency shall pay a person for actual and reasonable expense incurred incidental to the purchase of a replacement business or farm operation. The payment shall include the following:
Adm 92.92(5)(a)
(a) Legal, closing and related cost including title research, preparing conveyance contracts, notary fees, surveys, preparing drawings or plats and recording fees;
Adm 92.92(5)(b)
(b) Lender, appraisal or application fees, and loan origination or assumption fees that do not represent prepaid interest;
Adm 92.92(5)(e)
(e) Owner or mortgagee title insurance policy or abstract of title;
Adm 92.92 Note
Note: The payment may not include a prepaid expense such as taxes, water, or fuel costs, or a fee, cost, charge or expense which is part of a debt service or finance charge.
Adm 92.92(6)
(6) Owner retention. An owner-occupant may purchase the property back from an agency and move it to another location following receipt of the payment for the acquired property, and when not inconsistent with project development. The replacement payment shall be determined as follows:
Adm 92.92(6)(a)
(a)
Amount payable. The payment shall be the amount, if any, between the acquisition price and the cost to relocate. The cost to relocate shall include the purchase-back price, the cost to acquire and develop a new site, or when moved to retained land, the market value of the site, installing utility service, constructing a foundation, moving the property, restoring it to comparable standards and other moving costs.
Adm 92.92(6)(b)
(b)
Limitation. The differential payment computed under this section may not exceed the amount necessary to purchase a comparable replacement under sub.
(2) plus any increased interest or incidental expense payment due under subs.
(4) and
(5).
Adm 92.92(7)
(7) Replacement payment conversion. An agency shall pay a person as specified under this section. A replacement payment for a prior move to a rental property shall be deducted from the amount payable under this section. The combined payment may not exceed $50,000.
Adm 92.92 History
History: Cr.
Register, March, 1986, No. 363, eff. 4-1-86; am. (4) (a) (intro.) and 3., (b) and (5) (b), r. and recr. (4) (d), cr. (4) (f),
Register, November, 1989, No. 407, eff. 12-1-89.
Adm 92.94
Adm 92.94
Owner-occupant who rents. Adm 92.94(1)(1)
General. An agency shall pay an owner-occupant who rents a replacement business or farm operation, a rental assistance payment not to exceed $30,000 for 4 years, or the amount the person is eligible for as an owner under s.
Adm 92.92, whichever is less.
Adm 92.94(2)
(2) Computation of payment. The payment shall be computed as specified under s.
Adm 92.96, except that the economic rent of the acquired property shall be used to compute the payment.
Adm 92.94 History
History: Cr.
Register, March, 1986, No. 363, eff. 4-1-86; corrections made under s. 13.93 (2m) (b) 7., Stats.,
Register, April, 1996, No. 484; correction in (1), (2) made under s. 13.92 (4) (b) 7., Stats.,
Register December 2011 No. 672.
Adm 92.96
Adm 92.96
Tenant-occupant who rents. An agency shall pay a tenant-occupant of a business or farm operation, a rental assistance payment, not to exceed $30,000, for the increased cost to rent or lease a replacement business or farm operation. The payment shall be computed as specified under this section.
Adm 92.96(1)
(1) Rent differential payment. An agency shall pay a person who rents a replacement business or farm operation, a payment equal to the difference for 48 months, if any, between the monthly rent for the displacement unit and the lesser of the monthly rent for a comparable business or farm operation, or the actual replacement.
Adm 92.96(2)
(2) Preferred replacement tenure. An agency shall assist a person to relocate to original tenancy status or, at a person's option, purchase a replacement using the downpayment assistance provisions under s.
Adm 92.98.
Adm 92.96(3)
(3) Payment computation. To compute a payment, an agency shall determine the base monthly rent, the rent of a comparable replacement, and the rent paid for the replacement property as follows:
Adm 92.96(3)(a)
(a)
Base monthly rent. The base monthly rent shall be either:
Adm 92.96(3)(a)1.
1. The average monthly rent and utilities paid by the tenant-occupant for the 12-month period before initiation of negotiations, or a more representative period; or
Adm 92.96(3)(a)2.
2. The economic rent when the actual rent is insignificant in relation to market rents for similar property in the area.
Adm 92.96(3)(b)
(b)
Determine rent of a comparable replacement. The agency shall determine the rent of a comparable replacement business or farm operation using the selection procedures under s.
Adm 92.92 (2) and
(3) except:
Adm 92.96(3)(b)1.
1. An agency shall increase the rent by the additional amount the owner would charge if required to make modifications necessary to bring a property up to comparable standards, or
Adm 92.96(3)(b)2.
2. An agency shall pay a person who rents a replacement business or farm operation requiring modifications to meet comparable standards, the actual cost of these modifications if incurred by the person. The amount shall be included in the rent differential payment.
Adm 92.96(4)
(4) Comparability of rent factors. Rent factors such as utilities, furnishings, parking and others, shall be the same for the displacement property and the comparable or replacement property. However, rent factors in the comparable property which must be paid by the displaced person shall be included in the payment regardless of whether they existed in the displacement property.
Adm 92.96(5)
(5) Change of occupancy. A person, after moving to a replacement business or farm operation, moves to a higher rent property within a 2 year period, may be eligible for an amount in excess of the original claim but not to exceed the amount necessary to rent a comparable replacement.
Adm 92.96 History
History: Cr.
Register, March, 1986, No. 363, eff. 4-1-86; am. (1), (3) and (4),
Register, November, 1989, No. 407, eff. 12-1-89; correction in (2) and (3) (b) made under s. 13.93 (2m) (b) 7., Stats.,
Register, April, 1996, No. 484; correction in (2), (3) (b) (intro.) made under s. 13.92 (4) (b) 7., Stats.,
Register December 2011 No. 672.
Adm 92.98
Adm 92.98
Tenant-occupant who purchases. Adm 92.98(1)(1)
General. An agency shall pay a person otherwise eligible under s.
Adm 92.96, an amount up to $30,000 for a downpayment on the purchase of a replacement, and reimbursement for actual expenses incidental to the purchase. The payment may not exceed the amount necessary to rent a comparable replacement as specified under s.
Adm 92.96.
Adm 92.98(2)
(2) Computation of downpayment and incidental cost.
