December 17, 1970
Page 42132
UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION POLICIES ACT OF 1970
Mr. MUSKIE. Mr. President, I ask the Chair to lay before the Senate a message from the House of Representatives on S. 1.
The PRESIDING OFFICER (Mr. STEVENSON) laid before the Senate the amendment of the House of Representatives to the bill (S. 1) to provide for uniform and equitable treatment of persons displaced from their homes, businesses, or farms by Federal and federally assisted programs and to establish uniform and equitable land acquisition policies for Federal and federally assisted programs, which was to strike out all after the enacting clause, and insert:
"That this Act may be cited as the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970.
"TITLE I – GENERAL PROVISIONS
"SEC. 101. As used in this Act–
" (1) The term ‘Federal agency' means any department, agency, or instrumentality in the executive branch of the Government (except the National Capital Housing Authority), any wholly owned Government corporation (except the District of Columbia Redevelopment Land Agency), and the Architect of the Capitol, the Federal Reserve banks and branches thereof.
"(2) The term 'State' means any of the several States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, the Trust Territory of the Pacific Islands, and any political subdivision thereof.
"(3) The term 'State agency' means the National Capital Housing Authority, the District of Columbia Redevelopment Land Agency, and any department, agency, or instrumentality of a State or of a political subdivision of a State, or any department, agency, or instrumentality of two or more States or of two or more political subdivisions of a State or States.
"(4) The term 'Federal financial assistance' means a grant, loan, or contribution provided by the United States, except any Federal guarantee or insurance and any annual payment or capital loan to the District of Columbia.
"(5) The term 'person' means any individual, partnership, corporation, or association.
"(6) The term ‘displaced person' means any person who, on or after the effective date of this Act, moves from real property, or moves his personal property from real property, as a result of the acquisition of such real property, in whole or in part, or as the result of the written order of the acquiring agency to vacate real property, for a program or project undertaken by a Federal agency, or with Federal financial assistance; and solely for the purposes of sections 202(a) and (b) and 205 of this title, as a result of the acquisition of or as the result of the written order of the acquiring agency to vacate other real property, on which such person conducts a business or farm operation, for such program or project.
"(7) The term ‘business' means any lawful activity, excepting a farm operation, conducted primarily
"(A) for the purchase, sale, lease and rental of personal and real property, and for the manufacture, processing, or marketing of products, commodities, or any other personal property;
"(B) for the sale of services to the public;
"(C) by a nonprofit organization; or
"(D) solely for the purposes of section 202(a) of this title, for assisting in the purchase, sale, resale, manufacture, processing, or marketing of products, commodities, personal property, or services by the erection and maintenance of an outdoor advertising display or displays, whether or not such display or displays are located on the premises on which any of the above activities are conducted.
"(8) The term ‘farm operation' means any activity conducted solely or primarily for the production of one or more agricultural products or commodities, including timber, for sale or home use, and customarily producing such products or commodities in sufficient quantity to be capable of contributing materially to the operator's support.
"(9) The term ‘mortgage' means such classes of liens as are commonly given to secure advances on, or the unpaid purchase price of, real property, under the laws of the State in which the real property is located, together with the credit instruments, if any, secured thereby.
"FINALITY OF DETERMINATIONS
"SEC. 102. (a) Any determination by the head of a Federal agency administering a program or project as to payments under titles II and III of this Act shall be final and no provision of such titles shall be constructed to give any person a cause of action in any court, nor may any violation of either of such titles be raised as a defense by such person in any action.
"(b) The provisions of section 301 of title III of this Act create no rights or liabilities and shall not affect the validity of any property acquisitions by purchase or condemnation.
"(c) Nothing in this Act shall be construed as creating in any condemnation proceedings brought under the power of eminent domain, any element of value or of damage not in existence on the date of enactment of this Act.
"TITLE II – UNIFORM RELOCATION ASSISTANCE
"DECLARATION OF POLICY
"SEC. 201. The purpose of this title is to establish a uniform policy for the fair and equitable treatment of persons displaced as a result of Federal and federally assisted programs in order that such persons shall not suffer disproportionate injuries as a result of programs designed for the benefit of the public as a whole.
"MOVING AND RELATED EXPENSES
"SEC. 202. (a) Whenever the acquisition of real property for a program or project undertaken by a Federal agency in any State will result in the displacement of any person on or after the effective date of this Act, the head of such agency shall make a payment to any displaced person, upon proper application as approved by such agency head, for
"(1) actual reasonable expenses in moving himself, his family, business, farm operation, or other personal property;
"(2) actual direct losses of tangible personal property as a result of moving or discontinuing a business or farm operation, but not to exceed an amount equal to the reasonable expenses that would have been required to relocate such property, as determined by the head of the agency; and
"(3) actual reasonable expenses in searching for a replacement business or farm.
"(b) Any displaced person eligible for payments under subsection (a) of this section who is displaced from a dwelling and who elects to accept the payments authorized by this subsection in lieu of the payments authorized by subsection (a) of this section may receive a moving expense allowance, determined according to a schedule established by the head of the Federal agency, not to exceed $300, and a dislocation allowance of $200.
“(c) Any displaced person eligible for payments under subsection (a) of this section who is displaced from his place of business or from his farm operation and who elects to accept the payment authorized by this subsection in lieu of the payment authorized by subsection (a) of this section, may receive a fixed payment in an amount equal to the average annual net earnings of the business or farm operation, except that such payment shall be not less than $2,500 nor more than $10,000. In the case of a business no payment shall be made under this subsection unless the head of the Federal agency is satisfied that the business (1) cannot be relocated without a substantial loss of its existing patronage, and (2) is not a part of a commercial enterprise having at least one other establishment not being acquired by the United States, which is engaged in the same or similar business. For purposes of this subsection, the term "average annual net earnings" means one-half of any net earnings of the business or farm operation, before Federal, State, and local income taxes, during the two taxable years immediately preceding the taxable year in which such business or farm operation moves from the real property acquired for such project, or during such other period as the head of such agency determines to be more equitable for establishing such earnings, and includes any compensation paid by the business or farm operation to the owner, his spouse, or his dependents during such period.
"REPLACEMENT HOUSING FOR HOMEOWNER
"SEC. 203. (a) (1) In addition to payments otherwise authorized by this title, the head of the Federal agency shall make an additional payment not in excess of $15,000 to any displaced person who is displaced from a dwelling actually owned and occupied by such displaced person for not less than one hundred and eighty days prior to the initiation of negotiations for the acquisition of the property. Such additional payment shall include the following elements:
"(A) The amount, if any, which when added to the acquisition cost of the dwelling acquired by the Federal agency, equals the reasonable cost of a comparable replacement dwelling which is a decent, safe, and sanitary dwelling adequate to accommodate such displaced person, reasonably accessible to public services and places of employment and available on the private market. All determinations required to carry out this subparagraph shall be made in accordance with standards established by the head of the Federal agency making the additional payment.
"(B) The amount, if any, which will compensate such displaced person for any increased interest costs which such person is required to pay for financing the acquisition of any such comparable replacement dwelling. Such amount shall be paid only if the dwelling acquired by the Federal agency was encumbered by a bona fide mortgage which was a valid lien on such dwelling for not less than one hundred and eighty days prior to the initiation of negotiations for the acquisition of such dwelling. Such amount shall be equal to the excess in the aggregate interest and other debt service costs of that amount of the principal of the mortgage on the replacement dwelling which is equal to the unpaid balance of the mortgage on the acquired dwelling, over the remainder term of the mortgage on the acquired dwelling, reduced to discounted present value. The discount rate shall be the prevailing interest rate paid on savings deposits by commercial banks in the general area in which the replacement dwelling is located.
"(C) Reasonable expenses incurred by such displaced person for evidence of title, recording fees, and other closing costs incident to the purchase of the replacement dwelling, but not including prepaid expenses.
"(2) The additional payment authorized by this subsection shall be made only to such a displaced person who purchases and occupies a replacement dwelling which is decent, safe, and sanitary not later than the end of the one year period beginning on the date on which he receives from the Federal agency final payment of all costs of the acquired dwelling, or on the date on which he moves from the acquired dwelling, whichever is the later date.
"(b) The head of any Federal agency may, upon application by a mortgagee, insure any mortgage (including advances during construction) on a comparable replacement dwelling executed by a displaced person assisted under this section, which mortgage is eligible for insurance under any Federal law administered by such agency notwithstanding any requirements under such law relating to age, physical condition, or other personal characteristics of eligible mortgagors, and may make commitments for the insurance of such mortgage prior to the date of execution of the mortgage.
"REPLACEMENT HOUSING FOR TENANTS AND CERTAIN OTHERS
"Sec. 204. In addition to amounts otherwise authorized by this title, the head of the Federal agency shall make a payment to or for any displaced person displaced from any dwelling not eligible to receive a payment under section 203 which dwelling was actually and lawfully occupied by such displaced person for not less than ninety days prior to the initiation of negotiations for acquisition of such dwelling. Such payment shall be either
" (1) the amount necessary to enable such displaced person to lease or rent for a period not to exceed four years, a decent, safe and sanitary dwelling of standards adequate to accommodate such person in areas not generally less desirable in regard to public utilities and public and commercial facilities, and reasonably accessible to his place of employment, but not to exceed $4,000, or
"(2) the amount necessary to enable such person to make a down-payment (including incidental expenses described in section 203 (a) (1) (C) ) on the purchase of a decent, safe, and sanitary dwelling of standards adequate to accommodate such person in areas not generally less desirable in regard to public utilities and public and commercial facilities, but not to exceed $4,000, except that if such amount exceeds $2,000, such person must equally match any such amount in excess of $2,000, in making the down-payment.
"RELOCATION ASSISTANCE ADVISORY SERVICES
"SEC. 205 (a) Whenever the acquisition of real property for a program or project undertaken by a Federal agency in any State will result in the displacement of any person on or after the effective date of this section, the head of such agency shall provide a relocation assistance advisory program for displaced persons which shall offer the services described in subsection (c) of this section. If such agency head determines that any person occupying property immediately adjacent to the real property acquired is caused substantial economic injury because of the acquisition, he may offer such person relocation advisory services under such program.
"(b) Federal agencies administering programs which may be of assistance to displaced persons covered by this Act shall cooperate to the maximum extent feasible with the Federal or State agency causing the displacement to assure that such displaced persons receive the maximum assistance available to them.
"(c) Each relocation assistance advisory program required by subsection (a) of this section shall include such measures, facilities, or services as may be necessary or appropriate in order to
"(1) determine the need, if any, of displaced persons, for relocation assistance;
"(2) provide current and continuing information on the availability, prices, and rentals, of comparable decent, safe, and sanitary sales and rental housing, and of comparable commercial properties and locations for displaced businesses;
"(3) assure that, within a reasonable period of time, prior to displacement there will be available, to the extent that can reasonably be accomplished, in areas not generally less desirable in regard to public utilities and public and commercial facilities and at rents or prices within the financial means of the families and individuals displaced, decent, safe, and sanitary dwellings, as defined by such Federal agency head, equal in number to the number of and available to such displaced persons who require such dwellings and reasonably accessible to their places of employment;
"(4) assist a displaced person displaced from his business or farm operation in obtaining and becoming established in a suitable replacement location;
"(5) supply information concerning Federal and State housing programs, disaster loan programs, and other Federal or State programs offering assistance to displaced persons; and
"(6) provide other advisory services to displaced persons in order to minimize hardships to such persons in adjusting to relocation.
"(d) The heads of Federal agencies shall coordinate relocation activities with project work, and other planned or proposed governmental actions in the community or nearby areas which may affect the carrying out of relocation assistance programs.
"HOUSING REPLACEMENT BY FEDERAL AGENCY AS LAST RESORT
"SEC. 206. (a) If a Federal project cannot proceed to actual construction because comparable replacement sale or rental housing is not available, and the head of the Federal agency determines that such housing cannot otherwise be made available he may take such action as is necessary or appropriate to provide such housing by use of funds authorized for such project.
"(b) No person shall be required to move from his dwelling on or after the effective date of this title, on account of any Federal project, unless the Federal agency head is satisfied that replacement housing, in accordance with section 205(c) (3), is available to such person.
"STATE REQUIRED TO FURNISH REAL PROPERTY INCIDENT TO FEDERAL ASSISTANCE (LOCAL COOPERATION)
"SEC. 207. Whenever real property is acquired by a State agency and furnished as a required contribution incident to a Federal program or project, the Federal agency having authority over the program or project may not accept such property unless such State agency has made all payments and provided all assistance and assurances as are required of a State agency by sections 210 and 305 of this Act. Such State agency shall pay the cost of such requirements in the same manner and to the same extent as the real property acquired for such project, except that in the case of any real property acquisition or displacement occurring prior to July 1, 1972, such Federal agency shall pay 100 per centum of the first $25,000 of the cost of providing such payments and assistance.
"STATE ACTING AS AGENT FOR FEDERAL PROGRAM
"SEC. 208. Whenever real property is acquired by a State agency at the request of a Federal agency for a Federal program or project, such acquisition shall, for the purposes of this Act, be deemed an acquisition by the Federal agency having authority over such program or project.
"PUBLIC WORKS PROGRAMS AND PROJECTS OF THE GOVERNMENT OF THE DISTRICT OF COLUMBIA AND OF THE WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY
"SEC. 209. Whenever real property is acquired by the government of the District of Columbia or the Washington Metropolitan Area Transit Authority for a program or project which is not subject to sections 210 and 211 of this title, and such acquisition will result in the displacement of any person on or after the effective date of this Act, the Commissioner of the District of Columbia or the Washington Metropolitan Area Transit Authority, as the case may be, shall make all relocation payments and provide all assistance required of a Federal agency by this
Act. Whenever real property is acquired for such a program or project on or after such effective date, such Commissioner or Authority, as the case may be, shall make all payments and meet all requirements prescribed for a Federal agency by title in of this Act.
"REQUIREMENTS FOR RELOCATION PAYMENTS AND ASSISTANCE IN FEDERALLY ASSISTED PROGRAMS; ASSURANCES OF AVAILABILITY OF HOUSING
"SEC. 210. Notwithstanding any other law, the head of a Federal agency shall not approve any grant to or contract or agreement with, a State agency, under which Federal financial assistance will be available to pay all or past of the cost of any program or project which will result in the displacement of any person on or after the effective date of this title, unless he receives satisfactory assurances from Such State agency that–
"(1) fair and reasonable relocation payments and assistance shall be provided to or for displaced persons, as are required to be provided by a Federal agency under sections 202, 203, and 204 of this title;
"(2) relocation assistance programs offering the services described in section 205 shall be provided to such displaced persons;
"(3) within a reasonable period of time prior to displacement, decent, safe, and sanitary replacement dwellings will be available to displaced persons in accordance with section 205(c) (3).
"FEDERAL SHARE OF COSTS
"SEC. 211. (a) The cost to a State agency of providing payments and assistance pursuant to sections 206, 210, 215, and 305, shall be, included as part of the cost of a program or project for which Federal financial assistance is available to such State agency and such State agency shall be eligible for Federal financial assistance with respect to such payments and assistance in the same manner and to the same extent as other program or project costs, except that, notwithstanding any other law in the case where the Federal financial assistance is by grant or contribution the Federal agency shall pay the full amount of the first $25,000 of the cost to a State agency of providing payments and assistance for a displaced person under sections 206, 210, 215, and 305, on account of any acquisition or displacement occurring prior to July 1, 1972, and in any case where such Federal financial assistance is by loan, the Federal agency shall loan such State agency the full amount of the first $25,000 of such cost.
"(b) No payment or assistance under section 210 or 305 shall be required or included as a program or project cost under this section, if the displaced person receives a payment required by the State law of eminent domain which is determined by such Federal agency head to have substantially the same purpose and effect as such payment under this section, and to be part of the cost of the program or project for which Federal financial assistance is available.
"(c) Any grant to, or contract or agreement with, a State agency executed before the effective date of this title, under which Federal financial assistance is available to pay all or part of the cost of any program or project which will result in the displacement of any person on or after the effective date of this Act, shall be amended to include the cost of providing payments and services under sections 210 and 305. If the head of a Federal agency determines that it is necessary for the expeditious completion of a program or project he may advance to the State agency the Federal share of the cost of any payments or assistance by such State agency pursuant to section 206, 210, 215, and 305.
"ADMINISTRATION – RELOCATION ASSISTANCE IN PROGRAMS RECEIVING FEDERAL FINANCING ASSISTANCE
"SEC. 212. In order to prevent unnecessary expenses and duplications of functions,
and to promote uniform and effective administration of relocation assistance programs for displaced persons under Sections 206, 210, and 215 of this title, a State agency may enter into contracts with any individual, firm, association, or corporation for services in connection with such programs, or may carry out its functions under this title through any Federal or State governmental agency or instrumentality having an established organization for conducting relocation assistance programs. Such State agency shall, in carrying out the relocation assistance activities described in section 206, whenever practicable, utilize the services of State or local housing agencies, or other agencies having experience in the administration or conduct of similar housing assistance activities.
"REGULATIONS AND PROCEDURES
"SEC, 213. (a) In order to promote uniform and effective administration of relocation assistance and land acquisition of State or local housing agencies, or other agencies having programs or projects by Federal agencies or programs or projects by State agencies receiving Federal financial assistance, the heads of Federal agencies shall consult together on the establishment of regulations and procedures for the implementation of such programs.
"(b) The head of each Federal agency is authorized to establish such regulations and procedures as he may determine to be necessary to assure–
"(1) that the payments and assistance authorized by this Act shall be administered in a manner which is fair and reasonable, and as uniform as practicable;
"(2) that a displaced person who makes proper application for a payment authorized for such person by this title shall be paid promptly after a move or, in hardship cases, be paid in advance; and
"(3) that any person aggrieved by a determination as to eligibility for a payment authorized by this Act, or the amount of a payment, may have his application reviewed by the head of the Federal agency having authority over the applicable program or project, or in the case of a program or project receiving Federal financial assistance, by the head of the State agency.
"(c) The head of each Federal agency may prescribe such other regulations and procedures, consistent with the provisions of this Act, as he deems necessary or appropriate to carry out this Act.
"ANNUAL REPORT
"SEC. 214. The head of each Federal agency shall prepare and submit an annual report to the President on the activities of such agency with respect to the programs and policies established or authorized by this Act, and the President shall submit such reports to the Congress not later than January 15 of each year, beginning January 15, 1972, and ending January 15, 1975, together with his comments or recommendations. Such reports shall give special attention to: (1) the effectiveness of the provisions of this Act assuring the availability of comparable replacement housing, which is decent, safe, and sanitary, for displaced homeowners and tenants; (2) actions taken by the agency to achieve the objectives of the policies of Congress, declared in this Act, to provide uniform and equal treatment, to the greatest extent practicable, for all persons displaced by, or having real property taken for, Federal or federally assisted programs; (3) the views of the Federal agency head on the progress made to achieve such objectives in the various programs conducted or administered by such agency, and among the Federal agencies; (4) any indicated effects of such programs and policies on the public; and (5) any recommendations he may have for further improvements in relocation assistance and land acquisition programs, policies, and implementing laws and regulations.
"PLANNING AND OTHER PRELIMINARY EXPENSES FOR ADDITIONAL HOUSING
"SEC. 215. In order to encourage and facilitate the construction or rehabilitation of housing to meet the needs of displaced persons who are displaced from dwellings because of any Federal or Federal financially assisted project, the head of the Federal agency administering such project is authorized to make loans as a part of the cost of any such project, or to approve loans as a part of the cost of any such project receiving Federal financial assistance, to nonprofit, limited dividend, or cooperative organizations or to public bodies, for necessary and reasonable expenses, prior to construction, for planning and obtaining federally insured mortgage financing for the rehabilitation or construction of housing for such displaced persons. Notwithstanding the preceding sentence, or any other law, such loans shall be available for not to exceed 80 per centum of the reasonable costs expected to be incurred in planning, and in obtaining financing for, such housing, prior to the availability of such financing, including, but not limited to, preliminary surveys and analyses of market needs, preliminary site engineering, preliminary architectural fees, site acquisition, application and mortgage commitment fees, and construction loan fees and discounts. Loans to an organization established for profit shall bear interest at a market rate established by the head of such Federal agency. All other loans shall be without interest. Such Federal agency head shall require repayment of loans made under this section, under such terms and conditions as he may require, upon completion of the project or sooner, and except in the case of a loan to an organization established for profit, may cancel any part or all of a loan if he determines that a permanent loan to finance the rehabilitation or the construction of such housing cannot be obtained in an amount adequate for repayment of such loan. Upon repayment of any such loan, the Federal share of the sum repaid shall be credited to the account from which such loan was made, unless the Secretary of the Treasury determines that such account is no longer in existence, in which case such sum shall be returned to the Treasury and credited to miscellaneous receipts.
"PAYMENTS NOT TO BE CONSIDERED AS INCOME
"SEC. 216. No payment received under this title shall be considered as income for the purposes of the Internal Revenue Code of 1954; or for the purposes of determining the eligibility or the extent of eligibility of any person for assistance under the Social Security Act or any other Federal law.
"DISPLACEMENT BY CODE ENFORCEMENT, REHABILITATION, AND DEMOLITION PROGRAMS RECEIVING FEDERAL ASSISTANCE
"SEC. 217. A person who moves or discontinues his business, or moves other personal property, or moves from his dwelling on or after the effective date of this Act, as a direct result of any project or program which receives Federal financial assistance under title I of the Housing Act of 1949, as amended, or as a result of carrying out a comprehensive city demonstration program under title I of the Demonstration Cities and Metropolitan Development Act of 1966 shall, for the purposes of this title, be deemed to have been displaced as the result of the acquisition of real property.
"TRANSFERS OF SURPLUS PROPERTY
"SEC. 218. The Administrator of General Services is authorized to transfer to a State agency for the purpose of providing replacement housing required by this title, any real property surplus to the needs of the United States within the meaning of the Federal Property and Administrative Services Act of 1949, as amended. Such transfer shall be subject to such terms and conditions as the Administrator determines necessary to protect the interests of the United States and may be made without monetary consideration, except that such State agency shall pay to the United States all amounts received by such agency from any sale, lease, or other disposition of such property for such housing.
"DISPLACEMENT BY A SPECIFIC PROGRAM
"SEC. 219. Notwithstanding any other provision of this title, a person
"(1) who moves or discontinues his business, moves other personal property, or moves from his dwelling on or after January 1, 1969, and before the 90th day after the date of enactment of this Act as the result of the contemplated demolition of structures or the construction of improvements on real property acquired, in whole or in part, by a Federal agency within the area in New York, New York, bounded by Lexington and Third Avenues and 31st and 32d Streets; and
"(2) who has lived on, or conducted a business on, such real property for at least one year prior to the date of enactment of this Act, may be considered a displaced person for purposes of sections 202 (a) and (b), 204, and 205 of this title, by the head of the agency acquiring the real property if
"(A) the head of the agency determines that such person has suffered undue hardship as the result of displacement from the real property; and
"(B) the Federal Government acquired and held such property for at least five years prior to the date of enactment of this Act.
"REPEALS
"SEC. 220. (a) The following laws and parts of laws are hereby repealed:
"(1) The Act entitled 'An Act to authorize the Secretary of the Interior to reimburse owners of lands required for development under his jurisdiction for their moving expenses, and for other purposes, approved May 29, 1958 (43 U.S.C. 1231-1234).
"(2) Paragraph 14 of section 203(b) of the National Aeronautics and Space Act of 1958 (42 U.S.C. 2473).
"(3) Section 2680 of title 10, United States Code.
"(4) Section 7(b) of the Urban Mass Transportation Act of 1965 (49 U.S.C. 1606 (b)).
"(5) Section 114 of the Housing Act of 1949 (42 U.S.C. 1465).
"(6) Paragraphs (7) (b) (iii) and (8) of section 15 of the United States Housing Act of 1937 (42 U.S.C. 14I5, 1415(8)), except the first sentence of paragraph (8).
"(7) Section 2 of the Act entitled 'An Act to authorize the Commissioners of the District of Columbia to pay relocation costs made necessary by actions of the District of Columbia government, and for other purposes', approved October 6, 1964 (78 Stat. 1004; Public Law 88-629; D.C. Code 5-729).
"(8) Section 404 of the Housing and Urban Development Act of 1965 (42 U.S.C. 3074). "(9) Sections 107 (b) and (c) of the Demonstration Cities and Metropolitan Development Act of 1966 (42 U.S.C. 3307).
"(10) Chapter 5 of title 23, United States Code.
"(11) Sections 32 and 33 of the Federal Aid Highway Act of 1968 (Public Law 90-495).
"(b) Any rights or liabilities now existing under prior Acts or portions thereof shall not be affected by the repeal of such prior Acts or portions thereof under subsection (a) of this section.
"EFFECTIVE DATE
"SEC. 221. (a) Except as provided in subsections (b) and (c) of this section, this Act and the amendments made by this Act shall take effect on the date of its enactment.
"(b) Until July 1, 1972, sections 210 and 305 shall be applicable to a State only to the extent that such State is able under its laws to comply with such sections. After July 1, 1972, such sections shall be completely applicable to all States.
"(c) The repeals made by paragraphs (4), (5), (6), (8), (9), (10), (11), and (12) of section 220(a) of this title and section 306 of title III shall not apply to any State so long as sections 210 and 305 are not applicable in Such State.
"TITLE III – UNIFORM REAL PROPERTY ACQUISITION POLICY
"UNIFORM POLICY ON REAL PROPERTY ACQUISITION PRACTICES
"SEC. 301. In order to encourage and expedite the acquisition of real property by agreements with owners, to avoid litigation and relieve congestion in the courts, to assure consistent treatment for owners in the many Federal programs, and to promote public confidence in Federal land acquisition practices, heads of Federal agencies shall, to the greatest extent practicable, be guided by the following policies:
"(1) The head of a Federal agency shall make every reasonable effort to acquire expeditiously real property by negotiation.
"(2) Real property shall be appraised before the initiation of negotiations, and the owner or his designated representative shall be given an opportunity to accompany the appraiser during his inspection of the property.
"(3) Before the initiation of negotiations for real property, the head of the Federal agency concerned shall establish an amount which he believes to be just compensation therefor and shall make a prompt offer to acquire the property for the full amount so established. In no event shall such amount be less than the agency's approved appraisal of the fair market value of such property. Any decrease or increase in the fair market value of real property prior to the date of valuation caused by the public improvement for which such property is acquired, or by the likelihood that the property would be acquired for such improvement, other than that due to physical deterioration within the reasonable control of the owner, will be disregarded in determining the compensation for the property. The head of the Federal agency concerned shall provide the owner of real property to be acquired with a written statement of, and summary of the basis for, the amount he established as just compensation. Where appropriate the just compensation for the real property acquired and for damages to remaining real property shall be separately stated.
"(4) No owner shall be required to surrender possession of real property before the head of the Federal agency concerned pays the agreed purchase price, or deposits with the court in accordance with section 1 of the Act of February 26, 1931 (46 Stat. 1421; 40 U.S.C. 258a), for the benefit of the owner, an amount not less than the agency's approved appraisal of the fair market value of such property, or the amount of the award of compensation in the condemnation proceeding for such property.
"(5) The construction or development of a public improvement shall be so scheduled that, to the greatest extent practicable, no person lawfully occupying real property shall be required to move from a dwelling (assuming a replacement dwelling as required by title II will be available), or to move his business or farm operation, without at least ninety days' written notice from the head of the Federal agency concerned, of the date by which such move is required.
"(6) If the head of a Federal agency permits an owner or tenant to occupy the real property acquired on a rental basis for a short term or for a period subject to termination by the Government on short notice, the amount of rent required shall not exceed the fair rental value of the property to a short term occupier.
"(7) In no event shall the head of a Federal agency either advance the time of condemnation, or defer negotiations or conditions and the deposit of funds in court for the use of the owner, or take any other action coercive in nature, in order to compel an agreement on the price to be paid for the property.
"(8) If any interest in real property is to be acquired by exercise of the power of eminent domain, the head of the Federal agency concerned shall institute formal condemnation proceedings. No Federal agency head shall intentionally make it necessary for an owner to institute legal proceedings to prove the fact of the taking of his real property.
"(9) If the acquisition of only part of a property would leave its owner with an uneconomic remnant, the head of the Federal agency concerned shall offer to acquire the entire property.
"BUILDINGS, STRUCTURES, AND IMPROVEMENTS
"SEC. 302. (a) Notwithstanding any other provision of law, if the head of a Federal agency acquires any interest in real property in any State, he shall acquire at least an equal interest in all buildings, structures, or other improvements located upon the real property so acquired and which he requires to be removed from such real property or which he determines will be adversely affected by the use to which such real property will be put.
"(b) (1) For the purpose of determining the just compensation to be paid for any building, structure, or other improvement required to be acquired by subsection (a) of this section, such building, structure, or other improvement shall be deemed to be a part of the real property to be acquired notwithstanding the right or obligation of a tenant, as against the owner of any other interest in the real property, to remove such building, structure, or improvement at the expiration of his term, and the fair market value which such building, structure, or improvement contributes to the fair market value of the real property to be acquired, or the fair market value of such building, structure, or improvement for removal from the real property, whichever is the greater, shall be paid to the tenant therefor.
"(2) Payment under this subsection shall not result in duplication of any payments otherwise authorized by law. No such payment shall be made unless the owner of the land involved disclaims all interest in the improvements of the tenant. In consideration for any such payment, the tenant shall assign, transfer, and release to the United States all his right, title, and interest in and to such improvements. Nothing in this subsection shall be construed to deprive the tenant of any rights to reject payment under this subsection and to obtain payment for such property interests in accordance with applicable law, other than this subsection.
"EXPENSES INCIDENTAL TO TRANSFER OF TITLE TO UNITED STATES
"SEC. 303. The head of a Federal agency as soon as practicable after the date of payment of the purchase price or the date of deposit in court of funds to satisfy the award of compensation in a condemnation proceeding to acquire real property, whichever is the earlier, shall reimburse the owner, to the extent the head of such agency deems fair and reasonable, for expenses he necessarily incurred for
"(1) recording fees, transfer taxes, and similar expenses incidental to conveying such real property to the United States;
"(2) penalty costs for prepayment of any preexisting recorded mortgage entered into in good faith encumbering such real property; and
"(3) the pro rata portion of real property taxes paid which are allocable to a period subsequent to the date of vesting title in the United States, or the effective date of possession of such real property by the United States; whichever is the earlier.
"LITIGATION EXPENSES
"SEC. 304. (a) The Federal court having jurisdiction of a proceeding instituted by a Federal agency to acquire real property by condemnation shall award the owner of any right, or title to, or interest in, such real property such sum as will in the opinion of the court reimburse such owner for his reasonable costs, disbursements, and expenses, including reasonable attorney, appraisal, and engineering fees, actually incurred because of the condemnation proceedings, if–
" (1) the final judgment is that the Federal agency cannot acquire the real property by condemnation; or
"(2) the proceeding is abandoned by the United States.
"(b) Any award made pursuant to subsection (a) of this section shall be paid by the head of the Federal agency for whose benefit the condemnation proceedings was instituted.
"(c) The court rendering a judgment for the plaintiff in a proceeding brought under section 1346(a) (2) or 1491 of title 28, United States Code, awarding compensation for the taking of property by a Federal agency, or the Attorney General effecting a settlement of any such proceeding, shall determine and award or allow to such plaintiff, as a part of such judgment or settlement, such sum as will in the opinion of the court or the Attorney General reimburse such plaintiff for his reasonable costs, disbursements, and expenses; including reasonable attorney, appraisal, and engineering fees, actually incurred because of such proceeding.
"REQUIREMENTS FOR UNIFORM LAND ACQUISITION POLICIES; PAYMENTS OF EXPENSES INCIDENTAL TO TRANSFER OF REAL PROPERTY TO STATE; PAYMENT OF LITIGATION EXPENSES IN CERTAIN CASES
"SEC. 305. Notwithstanding any other law, the head of a Federal agency shall not approve any program or project or any grant to, or contract or agreement with, a State agency under which Federal financial assistance will be available to pay all or part of the cost of any program or project which will result in the acquisition of real property on and after the effective date of this title, unless he receives satisfactory assurances from such State agency that–
"(1) in acquiring real property it will be guided, to the greatest extent practicable under State law, by the land acquisition policies in section 301 and the provisions of section 302, and
"(2) property owners will be paid or reimbursed for necessary expenses as specified in sections 303 and 304.
"REPEALS
"SEC, 306. Sections 401, 402, and 403 of the Housing and Urban Development Act of 1965 (42 U.S.C. 3071-3073), section 35(a) of the Federal-Aid Highway Aot of 1968 (23 U.S.C. 141) and section 301 of the Land Acquisition Policy Act of 1960 (33 U.S.C. 596) are hereby repealed. Any rights or liabilities now existing under prior Acts or portions thereof shall not be affected by the repeal of such prior Act or portions thereof under this section."
Mr. MUSKIE. Mr. President, S. 1, the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 climaxes a long, hard fight to establish a uniform policy for the fair and equitable treatment of people who are displaced by Federal and federally assisted programs. The need for this legislation is clear. It has been documented through studies conducted by the Congress, and hearings held before the Subcommittee on Intergovernmental Relations and before the House. The House legislation before us has refined and strengthened the basic principles and programs in S. 1, as passed by the Senate on October 21, 1969, and in my opinion, is as high priority a measure as stands before the Senate.
There are more than 50 Federal programs which result in condemnation of land and which, quite literally, bulldoze hundreds of thousands of people from their homes and businesses each year.
Many are low-income families. They are the elderly. They are small farmers and small businessmen. In almost every case, they are forced to leave an area in which they have spent their entire lives, and in which they have made their economic well-being. Little has been done to assist their movement on help replace their losses. The supreme irony of this is that their problems were caused by Federal programs backed by the dollars of Federal taxpayers.
In less complex times, these programs involved no major displacements of people. The taking of a residential property, a commercial enterprise, a farm, or a small business proved the exception, and normally caused little or no distress to the individual owner.
The accelerating demand for public services of all kinds, and the growth of our population, particularly in our urban areas, brought with it the shattering effects of displacement.
This bill is needed in order to minimize these effects, and to eliminate the vast inconsistencies that exist among Federal and federally assisted programs with respect to relocation assistance and land acquisition.
S. 1 recognized that relocation is a serious problem. It acknowledges that advisory assistance is of special importance in the relocation process, and especially for the poor, and the nonwhite, the elderly and the small businessman. It seeks to establish fairer land acquisition policies in relation to the acquiring of property for these programs. It establishes the fact that the Federal Government has a prime responsibility to come up with uniform and equitable treatment of those who must relocate.
S. 1 provides for relocation payments. It provides for advisory assistance and for assurance that comparable, decent, safe and sanitary housing will be available before displacement can occur. It provides for the economic costs of adjustment of persons and businesses displaced by such programs. It establishes a uniform policy with regard to real property acquisitions for all Federal and federally assisted programs.
The heart of the dislocation problem is what is being done to displaced low and moderate income families as a result of displacement. S. 1 gets to the heart of that problem.
As the Senate prepares to pass S. 1, it seems appropriate that we should take notice of the fact that the bill brings to fruition a proposal made more than 10 years ago by one of its sponsors, the senior Senator from Alabama (Senator SPARKMAN). His concern on behalf of this problem has been thoroughly established through his work as chairman of the Senate Select Committee on Small Business, and as a result of his efforts on the Small Business and Housing Subcommittees of the Banking and Currency Committee.
Mr. President, S. 1 provides for relief of dislocation. It provides the necessary tools for the job to be done. Their use will depend upon the imagination and the desire of its administrators to do the job that is intended to be done. The uprooting of an individual, his family, his business or farm, and the taking of his land is a very personal matter. We cannot make the process painless, but we can insure fair and evenhanded administration of that process, consistent with the protection of individual rights and community needs, no matter what agency is involved. Confidence in and support for Government programs demands no less.
Mr. President, I move that the Senate agree to the engrossed amendment of the House to S. 1 with amendments which I have sent to the desk.
The PRESIDING OFFICER. The amendments will be stated.
The assistant legislative clerk proceeded to state the amendments.
Mr. MUSKIE. Mr. President, I ask unanimous consent that further reading of the amendments be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered; the amendments will be printed in the RECORD.
The amendments ordered to be printed in the RECORD are as follows:
S. 1
On page 4, strike out lines 10 through 17 and insert in lieu thereof the following:
"EFFECT UPON PROPERTY ACQUISITION" On page 4. line 18, strike out "(b)" and insert in lieu thereof "Sec. 102 (a) ".
On page 4, line 21, strike out "(c)" and insert in lieu thereof "(b) ".
On page 4, line 24, strike out "on" and insert in lieu thereof "immediately prior to”.
On page 12, lines 1 and 2, strike out ", to the extent that can reasonably be accomplished,".
On page 12, line 10, before the semicolon, insert a comma and the following: "except that the head of that Federal agency may prescribe by regulation situations when such assurances may be waived".
Mr. MUSKIE. Mr. President, I think it is appropriate in the closing days of the Congress to finally take up action on the first bill introduced in this Congress, S. 1. It is legislation dealing with the establishment of a uniform policy for the fair and equitable treatment of people who are displaced by Federal and federally supported programs.
The Senate has enacted this legislation twice, once last Congress and once early in this Congress.
The House has now acted on it with some amendments in disagreement which we have discussed with the House. The House is unwilling to go to conference. So we have undertaken to work out amendments to which the House will agree so that we can avoid the conference.
That is the substance of the amendments which I have offered on the floor this afternoon.
The principal amendment has to do with the question of judicial review. The Senate bill, as enacted, provided for judicial review. The House struck out that provision.
We are now offering an amendment that will leave the question of review in the existing law.
The distinguished Senator from North Carolina (Mr. ERVIN) and the distinguished . Senator from Massachusetts (Mr. KENNEDY) have both been concerned with this issue. The amendment I am offering has met with their agreement and approval.
I think we are ready to move at this point this afternoon.
Mr. ERVIN. Mr. President, will the Senator yield without losing his right to the floor?
Mr. MUSKIE. Mr. President, I yield to the Senator from North Carolina.
Mr. ERVIN. Mr. President, the distinguished Senator from Maine has worked very hard on this bill for several years. As he stated, it has passed the House twice.
The Senator from Maine stated very eloquently when the bill was introduced during the present Congress that the uprooting of an individual, his family, his business or farm, and the taking of his land is a very personal matter. We cannot make the process painless, but we can assure fair and evenhanded
Mr. BYRD of West Virginia. Mr. President, may we have order in the Chamber? There are too many colloquies taking place. Senators in the rear cannot hear what the Senator from North Carolina is saying. Will the Chair ask Senators to take their seats?
The PRESIDING OFFICER. The Chair requests Senators to take their seats.
Mr. ERVIN. Mr. President, I am quoting the statement made by the distinguished Senator from Maine when he introduced the bill early in this Congress. He said:
The uprooting of an individual, his family, his business, or farm, and the taking of his land is a very personal matter. We cannot make the process painless, but we can assure fair and even-handed administration of that process, consistent with the protection of individual rights and community needs, no matter what agency is involved.
Pursuant to the thought thus expressed by the distinguished Senator from Maine on the predecessor of this bill and on the present bill containing the provision, title 4, secured to every person adversely affected and every public agency of a State adversely affected by one of these Federal projects which necessitates the relocation of an individual's home or business, the right to have a judicial review of any rights that might be placed in jeopardy by such action.
The members of the Senate committee which handled this bill have been strongly in favor of expressly securing the right of judicial review to those who are adversely affected by such Federal action having to do with relocation.
I concur in the present position of the Senator from Maine. I believe it is rather essential to have judicial protection of the rights of persons, State agencies, and State subdivisions which are dislocated by Federal projects. However, this bill has some very fine provisions to insure their being dealt with justly.
I feel that these provisions have been too long delayed by the failure of the House to follow the action of the Senate in this area.
For this reason I concur, with reluctance, in the motion made by the Senator from Maine.
I point out that it will take some time to implement the provisions of this bill. I believe that there would be ample opportunity for those of us who are interested in this problem to introduce in the next session of the Congress with at least a reasonable hope of being able to have the House follow our lead on the matter, provisions which will secure the night of judicial review in this connection.
For this reason, I am sure that the Senator from Maine feels as I do about this matter and that he and the Senator from Massachusetts will join me in an amendment to try to supply this omission in the legislation.
Mr. MUSKIE. The Senator is correct. I have asked the staff to prepare the legislation for introduction early in the new Congress. I will promise to hold early hearings so that we can get at this question at an early stage in the next Congress.
I think there is sufficient support on this side so that there will be no difficulty in processing the legislation very quickly.
Mr. ERVIN. Mr. President, with that assurance, I join with the Senator in asking that the Senate take the action he has suggested.
Mr. PERCY. Mr. President, will the Senator yield?
Mr. MUSKIE. Mr. President, I yield to the Senator from Illinois.
Mr. PERCY. Mr. President, the Senator from Illinois worked with the distinguished Senator from Maine on this subject. It is certainly legislation that is desired by mayors and Governors throughout the country.
The Senate's will has been frustrated on a number of occasions in the past because the matter has not passed the House.
There are some significant differences between the House-passed version and the Senate-passed version.
I ask unanimous consent that a memorandum prepared analyzing the differences between the House and Senate versions be printed in the RECORD.
There being no objection, the memorandum was ordered to be printed in the RECORD, as follows:
S. 1. THE UNIFORM RELOCATION ASSISTANCE AND LAND ACQUISITION POLICIES ACT
The House passed their version of S. 1, Monday, December 7. The essential differences between House-Senate versions of the bill are:
MAJOR CHANGES
1. Judicial Review – House version strikes Title IV provisions of S. 1. All determinations made by heads of federal agencies regarding relocation/acquisition are final. Nothing in the bill is to be construed as creating any element of value or damage under condemnation proceedings.
2. Rules and Regulations for implementation – The Senate version placed responsibility for preparation and execution with the President. The House version authorizes head of each agency involved with relocation/acquisition to establish regulations and procedures. These, in turn, to be uniform to the maximum extent possible through consultation with heads of other agencies.
The House version requires preparation of an annual report beginning January 15, 1972, and for each year until January 15, 1975, which will detail for the President, and also for the Congress. the effectiveness of the bill, actions taken to achieve Congressional objectives, views on progress made toward such objectives, effects on the public, and recommended changes, improvements, etc. These reports would be the nucleus for additional Congressional action should implementation of the law prove difficult in terms of achieving uniformity and equity.
Comment: (i) The judicial review feature included in the Senate version was knocked out because neither Justice nor DOD felt it served any immediately useful purpose. (Excessive litigation and crowded dockets being the reasons.) The House provisions require considerable discretion on the part of the administrator, inasmuch as judicial review could effectively hamstring implementation of any project while the parties sought resolution through the courts, its omission undoubtedly will free the hand of the administrator in his approach to individual cases. (House staff have indicated that if the Senate insists on it being included, the bill will be lost.)
(ii). The Rules and Regulations procedures imply substantial good will on the part of the administrators. Where the Senate bill attempts to fix responsibility in the Presidential office, it is left to agency heads to iron out their differences. The Senate version was conceived without consideration of the coordinative role of the newly created Office of Management and Budgeting, which promulgate the necessary procedures under which agency heads consult and work toward common solutions. The annual report should provide sufficient opportunity for Congressional review and reactions.
OTHER CHANGES
The House bill increases basic moving and dislocation allowances from $200 and $100 to $300 and $200 respectively. In lieu of fixed allowances, the bill provides for payment of "actual" reasonable costs, etc., not less than $2,500 nor more than $10,000 (up from $5000 in S. 1). This is based on average annual net earnings. (The House allows computation over either the two previous years, or such other 2-year period as would be determined more equitable, i.e. in cases where the previous two year period was affected by bad business conditions, etc.)
The House bill provides for expanded replacement housing costs through supplemental payment of up to $15,000 to bridge the gap between acquisition payment and actual reasonable cost to reenter the housing market. Replacement housing must be available before displacement. House bill also provides coverage of such items as interest rate differential on mortgages, unpaid debt at time of acquisition, etc., through the $15,000 supplemental payment.
The House bill provides for tenant displacement through a replacement allowance of up to $4,000 necessary to enable lease or rent for a period not to exceed 4 years. Tenant can enter housing market by use of up to $4,000 (matched by his own sum) for making a down payment.
The House bill provides for expanded relocation assistance services, including determination of needs for assistance, information, assurance in advance of availability, loan programs information. etc.
The House bill provides for housing replacement by the displacing Federal agency as a last resort, including direct construction of new housing, acquisition and rehabilitation of existing housing, relocation of existing housing, and jointly financed projects which could aggregate rental housing requirements into feasible units. Examples include HUD, Agriculture work out programs for construction for low or moderate income families/individuals.
The House version provides for full Federal funding of the first $25,000 (same as in S. 1 except for Hawaii and Alaska), for any acquisition or displacement prior to July 1, 1972. In the case of federally-assisted projects, State can establish a trust fund, using an advance from the Feds (the costs being 100% Federally reimbursable up to $25,000). This would permit States to overcome any legal incapacities with respect to the expending of State funds until such period of full Federal funding expires.
The effective date of the bill is enactment, except where a State is unable to comply fully, in which case it becomes effective as soon as the State can comply, and in every case, after July 1, 1972.
The special case of the Murray Hill Post Office Station is taken care of by the bill, and the mandates for a uniform land acquisition policy are included with minor exceptions and changes. The expenses provided for by S. 1 are retained in the House bill, i.e. recording fees, transfer taxes, etc., but, in addition, the House bill will reimburse the owner for litigation expenses within reason.
Mr. PERCY. Mr. President, there are some points of concern that the administration has with respect to this bill. I ask unanimous consent that these differences of opinion that the administration has had with respect to this bill be printed in the RECORD at this point.
There being no objection, the memorandum was ordered to be printed in the RECORD, as follows:
POINTS OF SIGNIFICANT CONCERN WITH HOUSE PASSED S. 1, THE PROPOSED RELOCATION AND LAND ACQUISITION POLICIES ACT
I. The following are items in the House bill of particular concern.
a. Implementing regulations. The House bill provides in section 213 for the establishment of regulations and procedures by the heads of the various displacing agencies. It thus does not provide, as does the Senate bill, for the assured uniformity that would be provided through Presidential regulations. It also omits provisions requiring centralized determinations with respect to housing availability and standards so as to assure uniformity in handling these matters among different agencies and programs.
b. Availability of replacement dwellings. The House bill in section 205(c) (3) weakens the requirement of availability of replacement housing by requiring assurance that suitable replacement dwellings will be available prior to displacement only "to the extent that can reasonably be accomplished." The Committee report states that this limiting phrase is used only "to provide for emergency or other extraordinary situations where immediate possession of real property is of crucial importance." Nevertheless, this phrase is still subject to interpretation by the heads of various displacing agencies. The Senate version is preferable in that it establishes an absolute requirement that replacement housing be available subject only to Presidential waiver.
c. Replacement housing for homeowners. Although the concept of providing additive payments to assist owner-occupants in obtaining decent, safe and sanitary replacement dwellings is essential, the $15,000 maximum payment proposed in section 203 of the House bill is exorbitant and would create pressure for unnecessarily high costs for public improvements. The limit of $5,000 established in the Senate version is adequate, based upon operating experience, to meet the legitimate cost of assuring suitable replacement housing.
d. Compensation for increased interest costs. Section 203(a) (1) (B) would provide a payment to homeowners whose property is mortgaged to compensate them for the increased cost, if any, of obtaining a new mortgage at higher interest rates. This provision would present serious administrative difficulties and could result in substantial windfall payments to homeowners where the new mortgage is not held for the full period for which the homeowner has been compensated. It would also remove the incentive to seek the lowest interest rate mortgage available, and hence would contribute to inflationary pressure.
e. Mortgage insurance for displacees. This provision in section 203(b) of the House bill would allow Federal agencies administering mortgage insurance programs to insure mortgages of displacees eligible for assistance under this section without regard to their age, physical condition or other characteristics. This provision would create a new insurance program characterized by limited applicability and high risks. No new insurance fund has been provided to cover this new class of high risk policies. In view of the numerous technical problems which such a program would entail, any decision concerning it should be deferred to consideration in connection with new housing legislation.
f. Effective date. Section 221 of the House bill provides that the bill is effective immediately. The Senate bill is preferable in that it provides necessary time for the assignment of responsibility and for the drafting of regulations for direct Federal programs. Time will also be required in order to make adjustments between existing relocation systems and the new system authorized by the legislation.
g. Interest free loans for housing studies. Section 215 would authorize the administering Federal agency to make or approve loans to a variety of organizations for the purpose of meeting preliminary expenses of providing replacement housing. Fragmented management and inefficient organization would result from having every agency separately undertaking this type of activity.
h. Transfer of surplus property. Section 218 would authorize the Administrator of General Services to transfer surplus property without monetary consideration to State agencies for the purpose of providing replacement housing. While the Congress has authorized special write-downs for land to be used for low cost housing, the 100 percent donation authorized here is excessive and unnecessary because the bill provides adequate reimbursement of expenses.
i. Displacement by a specific program. Section 219 contains a special provision for the relief of individuals who have been (or may be) displaced from certain property acquired and held by the Post Office Department in the City of New York. This is special legislation and has no place in general legislation, the major purpose of which is uniformity. This provision should be deleted from the bill, and the subject should be considered separately.
j. Mortgage penalty costs. Both the House and Senate versions of S. 1 provide that the head of the acquiring Federal agency shall reimburse the owner for penalty costs for prepayment of preexisting mortgages. The House bill, however, fails to provide that such reimbursement may be made only if such mortgage is on record on the date of the official announcement of the project. Experience has shown this safeguard which is in the Senate bill is workable and necessary.
k. Instituting formal condemnation proceedings. Section 301(8) of the House bill provides that if any interest in real property is to be acquired by the exercise of the power of eminent domain, the head of the Federal agency shall institute formal condemnation proceedings. The heads of Federal agencies do not institute such proceedings, except in the case of the Tennessee Valley Authority, where they request the Attorney General to institute such proceedings. This subject is better dealt with in Section 301 (a) (10) of the Senate bill.
l. Litigation expenses. Section 304(c) would provide that in any action brought against the United States for the recovery of just compensation for the taking of any interest in real property where it is determined that such taking occurred without a tender of compensation to the plaintiff or that the just compensation exceeds the amount tendered before the institution of the action, the United States shall be liable for all the expenses of court costs, including attorneys' fees, appraisal and engineering fees actually incurred. This provision is highly objectionable as it would result in all cases of this type going to court. The usual situation of this type takes place when a Government action inadvertently floods or in some other way takes property which was not expected to be taken in the project. At the time the Government becomes aware of the fact that it has taken the property, the agency usually makes an offer or seeks funds so that it can buy. If court costs would be reimbursed in every such case, the owner would always sue for a higher amount and no cases would be settled out of court.
II. In addition to the above, there are a number of other items which are major differences of a kind which should warrant a conference.
a. Judicial review and finality of determinations. The Senate version of S. 1 would apply the administrative procedure and judicial review provisions of the APA to all determinations under this bill. The House bill omits this and, in addition contains in section 102, a finality of determination provision which would preclude judicial review of any determinations under titles II and III, including a preclusion against raising any violation of the proposed Act as a defense in any court.
b. Definition of displaced person. The House bill would limit the status of displaced person to those who move as the result of the acquisition of, or written notice to vacate, real property. The Senate version would provide a broader definition which includes those who move as the result of acquisition or reasonable expectation of acquisition.
c. Construction of replacement housing. The House version of S. 1 would provide for construction of replacement housing by any displacing Federal agency, if suitable replacement housing cannot otherwise be made available. The Senate bill does not contain a similar authorization.
Mr. PERCY. As I understand it, it would have been far more desirable for us to have perfected this legislation by having a conference. However, the time involved is simply inadequate and the House refused a conference on this particular legislation. The desire of the mayors, Governors, and many branches of the Federal Government is so great that I think the legislation should be enacted at this time, and the two points the House agreed to accept, I think, are good modifications.
I recommend that we now pass this legislation. We must take into account that in the final analysis the decision ultimately has to be made by the White House when legislation comes before the President for signature. There is a possibility the President might veto the legislation, but because of the lateness of the hour I believe this is the best we could do and I recommend that the legislation pass with these amendments.
Mr. MUSKIE. I thank the Senator from Illinois, who has been concerned with this matter from the beginning. There are differences between the view of the Senate and the view of the House, involving modest increases in moving and dislocation expenses, but I think these increases reflect increases in the cost of living that have taken place since the bill was first taken up. I hope the administration will undertake to accept the bill. It has taken us two Congresses to move the legislation to this point. This is important legislation and we should accept it as such and move on from this base which has been so long in establishment.
Mr. COOPER. Mr. President, as a member of the Public Works Committee, I have studied and interested myself over a long period of time with the problems relating to the diverse land acquisition policies of the Federal Government and the need for uniformity.
During this period I was constantly made aware of the efforts of the senior Senator of Alabama to remedy this situation.
Senator SPARKMAN's interest in this matter arose particularly out of his concern for the problems of small businesses and individuals displaced by urban renewal and other Federal and federally assisted projects. These problems had come to his attention as chairman of the Senate Select Committee on Small Business and through his work on the Small Business and Housing Subcommittees of the Banking and Currency Committee.
I believe it would be appropriate to recall the constructive approach of Senator SPARKMAN in his early proposals and his recognition of the problems with which S. 1 deals. To that end, I ask unanimous consent that the statements he made on January 30, 1961, when he introduced S. 671 be included in the RECORD at this point.
There being no objection, the statement was ordered to be printed in the RECORD, as follows:
COMMISSION TO STUDY COMPENSATION FOR LAND CONDEMNED UNDER FEDERAL PROGRAMS
Mr. SPARKMAN. Mr. President, in recent years the Federal Government has instituted programs under which millions of acres of land have been acquired from private owners. While much of the land has been acquired by purchase, a great deal has been acquired through condemnation proceedings; and in the cases in which voluntary sales were effected, the threat of condemnation proceedings was in the background.
These Federal programs include some in which Federal agencies use the land directly – for example, in the military programs; in other cases, the land is owned by State or local agencies – for example, in most road programs; and, in other cases. the land may be resold for private use – for example, in the urban renewal program. But regardless of these differences in the purpose of the taking or the use to which the land is put, the individual or business dispossessed or otherwise affected by the acquisition suffers the same loss.
Probably the biggest acquisition program has been that of the military. I am advised that in 1940, the War and Navy Departments used about 2½ million acres of land. By the close of the war, these two Departments had the use of 52 million acres – about equal in size to Kansas or Utah.
By June 30, 1955, the land used for military purposes by the Army, the Navy, the Air Force, and the AEC amounted to more than 23 million acres – about the size of Indiana, Virginia, Kentucky, or Tennessee. Other Federal programs have acquired or are acquiring substantial amounts of land.
In the urban renewal program under title I of the Housing Act of 1949, the first 400 projects have called for the clearance of about 15,000 acres, not including streets and alleys. Unlike much of the land used for military programs, these 15,000 net acres are located in urban areas. and consist mostly of developed land. The Federal highway programs also call for the acquisition of large areas; including both expensive developed land in cities, and farmland and wasteland outside cities.
For the Interstate Highway System. $621 million – of which the Federal share will be $418 million – is authorized for the acquisition of rights-of-way during the fiscal year 1959. Under the regular Federal highway programs, $126 million – of which the Federal share will be $65 million – is authorized for acquisition of rights-of-way during the fiscal year 1959. Other Federal programs, such as the public works programs, involve the acquisition of large areas.
The acquisition of land in this volume is very different from the Federal acquisition of land during the 19th century, or even during the 20th century, up to World War II. The problems created when, under Federal programs, thousands of acres of land is acquired in rural areas, or scores of acres are acquired in developed urban areas, are different, both in kind and in degree, from the problems created in earlier days, when Federal acquisitions of land amounted merely to taking enough land for the construction of a post office, an arsenal, or even an army post. And the problem becomes particularly acute when an urban-renewal project cleans out an entire section of town – the houses, stores, office buildings, movie theaters, banks, churches, and all other structures.
The Banking and Currency Committee has heard testimony which has set forth in dramatic detail the problems facing businesses, both large and small. which have been wiped out by urban- renewal projects or by Federal highway projects. Three bills on this subject have been introduced: S. 1340, by Senator HUMPHREY; S. 1351, by Senator BEALL; and S. 1777, by Senator CLARK and Senator JAVITS, which would provide for loans to small business concerns affected by the highway and urban-renewal programs.
The problem, of course, is not limited to small businesses or to these two Federal programs. The problem affects all sizes of business, and it affects all Federal programs under which land is acquired – particularly, of course, when the land acquisitions are very extensive. It was, I think, for this reason that the Banking and Currency Committee did not take action on any of these three bills in connection with either the small business legislation or the housing legislation.
It seems to me the question is a matter of much broader concern, and one which basically goes back to the requirement of the fifth amendment to the Constitution that private property shall not be taken for public use without just compensation.
Over many years, this constitutional requirement has been spelled out in judicial decisions and in statutes within the framework of the constitutional requirement. For the most part, this occurred before acquisitions of land by the Federal Government were substantial or had drastic effects upon wide areas. As I have said, there is a difference in kind, as well as a difference in degree, between acquiring enough land for a Federal office building, or even acquiring the Federal Triangle, and acquiring a square mile of city land for an urban-renewal project or acquiring a whole valley for the purpose of flooding it in connection with the construction of a dam.
It is because of this change in the nature and the effect of land acquisitions under Federal programs, either by condemnation or under threat of condemnation, that I think it desirable to make a thorough and impartial study of condemnation under Federal programs. This study should be under the highway program, under public works programs, under urban-renewal programs, under military programs, and any other Federal programs. It should also be broad enough to cover all the effects of land acquisition, including its effects on owners, on tenants. and on nearby property and businesses. The study should be made in the broad spirit of the just-compensation provision of the fifth amendment. It should not be limited to a determination of the legal bounds of that provision or of any particular statute. Instead, it should cover the broader subject of the extent to which the cost of Federal programs is paid by individuals or firms whose property is taken or whose property or business is either destroyed or is reduced in value by the taking of neighboring property, and the extent to which it would be feasible and proper to compensate these individuals and firms for the losses they suffer by reason of the Federal program.
Accordingly, I introduce a bill which would establish a bipartisan Federal Commission on Property Condemnation Compensation, to consist of 15 members, 7 to be appointed by the President, 4 to be appointed by the Vice President, and 4 to be appointed by the Speaker. The Commission would make a thorough study of compensation in connection with the condemnation of land, and would file a report with the Congress by December 31, 1961.
In introducing this bill, I do not, of course wish to take the position that any particular judicial awards have been either too high or too low; nor do I wish to take the position that any condemnation statute now on the books needs to be amended. But the testimony, which has been presented to the Banking and Currency Committee, on the effects on individuals and businesses of the widespread land acquisitions under Federal program convinces me that this matter should be thoroughly reviewed.
The VICE PRESIDENT. The bill will be received and appropriately referred.
The bill (S. 2802) to provide for a comprehensive study of the disposition of claims for just compensation for persons affected by the acquisition of property by the United States or under Federal programs through condemnation proceedings or otherwise, introduced by Mr. SPARKMAN, was received, read twice by its title, and referred to the Committee on the Judiciary.
The PRESIDING OFFICER. The question is on agreeing to the motion.
The motion was agreed to.