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 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.