Adm 92.84 HistoryHistory: 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) (a), (b), (c), (d), (2) (b), (3) (b), (4) (b), (c), (5) (b) made under s. 13.92 (4) (b) 7., Stats., Register December 2011 No. 672. Adm 92.86(1)(1) General. An agency shall pay a person who has owned and occupied a mobile home for at least 90 days but less than 180 days, for the following: Adm 92.86(2)(a)(a) An agency shall pay a person who purchases a replacement dwelling, a payment as specified under s. Adm 92.74. The amount shall be limited to that necessary to purchase a comparable mobile home and site. Adm 92.86(2)(b)(b) An agency shall pay a person who rents a replacement mobile home and site, a payment as specified under s. Adm 92.78. The economic rent for the mobile home and site shall be used for the computation. Adm 92.86(3)(a)(a) An agency shall pay a person who purchases a replacement site a downpayment assistance payment as specified under s. Adm 92.74 except the payment shall be limited to an amount necessary to purchase a comparable replacement site. Adm 92.86(3)(b)(b) An agency shall pay a person who rents a replacement site, a payment as specified under s. Adm 92.78 except the payment shall be limited to an amount necessary to rent a comparable replacement site. Adm 92.86(4)(4) Acquisition of mobile home only — owner rents site. Adm 92.86(4)(a)(a) An agency shall pay a person who owns and occupies the mobile home but rents the site, a downpayment assistance payment under s. Adm 92.74 except the payment shall be limited to the amount necessary to purchase a comparable mobile home, plus the difference, if any, between the monthly rent for the acquired site and the actual replacement rent, or the amount needed to rent a comparable site, whichever is less, for 48 months. Adm 92.86(4)(b)(b) An agency shall pay a person who rents a replacement mobile home, a payment as specified under s. Adm 92.78, except the base rent shall be the economic rent of the acquired mobile home. Adm 92.86 HistoryHistory: 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) (a), (b), (2) (a), (b), (3) (a), (b), (4) (a), (b) made under s. 13.92 (4) (b) 7., Stats., Register December 2011 No. 672. Adm 92.88Adm 92.88 90-day mobile home tenant. An agency shall pay a person who is a tenant of a mobile home for not less than 90 days, a replacement payment as follows: Adm 92.88 HistoryHistory: Cr. Register, March, 1968, No. 363, eff. 4-1-86; corrections made under s. 13.93 (2m) (b) 1. and 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 92.90Adm 92.90 General. This section describes the general requirements for a replacement payment to a displaced person who is a tenant-occupant or an owner-occupant of a business, farm operation, or nonprofit organization. A person is not required to relocate to the same owner or tenant occupancy status, but has other options as specified under this subchapter. An agency shall make one payment for each displacement, not to exceed $30,000 for a tenant-occupant or $50,000 for an owner-occupant. Adm 92.90(1)(1) Eligibility requirements. An agency shall make a replacement payment to a displaced business or farm operation provided: Adm 92.90(1)(a)(a) The property is subsequently acquired, a tenant is affected by displacement, or a notice to vacate is issued; Adm 92.90(1)(b)(b) The person owns and occupies a business or farm conducted on the real property acquired or affected by displacement, for not less than one year before initiation of negotiations. Adm 92.90(1)(c)(c) The person purchases or rents a replacement business or farm operation within 2 years of the date the person vacates or receives final payment for the acquired property, whichever is later. Adm 92.90(1)(d)(d) For the purpose of this section, a replacement business or farm property is purchased when a person: Adm 92.90(1)(d)1.1. Acquires an existing property as a replacement for the business or farm operation; Adm 92.90 NoteNote: The cost to achieve comparable standards and to correct code deficiencies shall be included in the actual cost of purchasing a replacement property when it is not comparable or in code compliance.
Adm 92.90(1)(d)3.3. Contracts to, or constructs a building or structure for a new business or farm operation on a site owned or acquired. Adm 92.90 NoteNote: The cost of construction shall be limited to that necessary to construct a comparable replacement. The cost shall include the value of the land at the time it was acquired. The cost of constructing a replacement structure shall include the value of labor furnished by a self-help builder.
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 NoteNote: 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 NoteNote: 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 HistoryHistory: 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 92.92Adm 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;
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