Section Adm 92.68 - GeneralThis section describes the general requirements for a replacement housing payment to a person displaced from a dwelling. 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 replacement payment for each dwelling unit, except in the case of joint occupancy of a single family dwelling as specified under sub. (7) (d).
(1) ELIGIBILITY REQUIREMENTS. (a)Persons who meet length of occupancy requirements. An owner or tenant occupant displaced from a dwelling shall be eligible for a replacement housing payment under this subchapter, if the person occupied the dwelling 180 days before initiation of negotiations if an owner, or 90 days if a tenant, except that a 90-day owner may qualify for a tenant replacement payment.(b)Persons who do not meet length of occupancy requirements. A person who occupies real property before its acquisition, but does not meet the length of occupancy requirements in par. (a), may receive a payment equal to the difference between 30% of the person's average monthly income and the monthly housing costs of a replacement dwelling, for a period of 48 months, if a replacement rental is not otherwise available within 30% of the person's average monthly income. (2) DELAYED OCCUPANCY FOR CONSTRUCTION AND REHABILITATION. A person who contracts for the construction or rehabilitation of a replacement dwelling, but cannot occupy it within the time period as specified under s. Adm 92.70(1) (b), shall be considered to have purchased and occupied the dwelling as of the date of the contract. A replacement payment may be deferred until occupancy, provided the agency makes payment into an interest-bearing escrow account for release to a person upon occupancy. An agency may pay the person before occupancy provided the agency is assured that occupancy will occur.(3) PRIOR OWNERSHIP OF REPLACEMENT DWELLING OR LAND. An agency shall make a replacement payment to a person based on a dwelling or site owned by the person before acquisition, if the person occupies the replacement within the time limit as specified under s. Adm 92.70(1) (b), and the dwelling is decent, safe and sanitary. The fair market value of the land and the dwelling at the time of displacement shall be used as the actual cost in determining the payment.(4) HOUSING INSPECTION. (a)Person moves to decent, safe and sanitary. An agency shall make a replacement payment to a person after finding a replacement to be decent, safe and sanitary as specified under s. Adm 92.04.(b)Person moves to non-decent, unsafe or unsanitary.1. An agency shall assist in correcting deficiencies and, when necessary, refer a displaced person to other decent, safe and sanitary housing, before terminating assistance or denying a replacement housing payment.2. An agency shall notify a displaced person in writing within 10 days of an inspection regarding deficiencies to be corrected to receive payment, and shall make the payment when deficiencies are corrected, or a person moves to another decent, safe and sanitary dwelling.(5) STATEMENT OF ELIGIBILITY TO A 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 occupancy of a decent, safe and sanitary dwelling within the applicable time limit.(6) ADVANCE PAYMENT IN A CONDEMNATION CASE. An agency shall promptly pay a replacement housing payment. An advance payment shall be made when an agency determines the acquisition payment will be delayed because of condemnation proceedings. An agency's maximum 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: (a) The agency shall re-compute a replacement payment using the acquisition amount set by the court;(b) The person shall refund to an agency the excess amount from the judgment when the amount awarded as the acquisition amount plus the advance payment exceeds the amount actually paid for a replacement or an agency's determined cost of a comparable replacement. A person is not required to refund more than the advance payment. A payment shall be made after condemnation proceedings are completed when a person does not sign an affidavit.(7) CARVE-OUT AND MODIFICATION OF REPLACEMENT PAYMENT COMPUTATION. (a)Complete acquisition.1. Typical size lot. The maximum replacement payment shall be the selling price of a comparable dwelling on a lot typical for the area, less the price of the acquired dwelling and the site, when a dwelling is located on a lot typical for the area.2. Larger than typical size lot. The maximum replacement payment shall be the price of a comparable dwelling on a lot typical for the area, less the price of the acquired dwelling plus the price of that portion of the acquired land which represents a lot typical for the area, when the acquired dwelling is located on a lot size larger than typical for the area.(b)Partial acquisition.1. Typical size lot. The maximum replacement payment shall be the selling price of a comparable dwelling on a lot typical for the area, less the value of the entire property, when an acquired dwelling is located on a lot typical for the area. An agency may purchase the remainder of the lot when requested by an owner.2. Larger than typical size lot. The maximum replacement payment shall be the selling price of a comparable dwelling on a lot typical for the area, less the value of that portion which represents the homesite lot typical for the area, when the dwelling is located on a lot larger than typical for the area. An agency may purchase the remainder of the lot when requested by an owner.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. Note: Under ss. 32.05(3m) and 32.06(3m), Stats., an agency is required to offer to purchase a remainder if it is an uneconomic remnant.
(c)Dwelling on land with higher and better use. The maximum replacement payment shall be the selling price of a comparable dwelling on a lot typical in the area, less the price of the acquired dwelling, and the price of that portion which represents a lot typical for residential use in the area, when the market value is based on a higher and better use then residential.(d)Multiple occupancy of a dwelling.1. An agency shall make one replacement payment when there are 2 or more families occupying a dwelling, except when there is no comparable dwelling available. A replacement payment shall be paid to each family when a comparable is not available. The payments shall be based on housing comparable to that occupied by each family plus space shared by other persons. The acquisition price or rent used for payment computations shall be the amount each person receives from the total property acquisition payment, or when tenants, the amount each pays toward the total rent.2. Two or more individuals who occupy a dwelling unit, shall be considered as one person for a replacement payment. An agency shall pay individuals a pro rata share of one payment, based on a comparable dwelling, regardless of whether the individuals relocate together or separately, except that payment shall be made to persons moving to decent, safe and sanitary housing.(e)Joint residential and business use.1. An agency shall make a replacement housing payment to a person displaced from a dwelling separately from a payment required for a business or farm on the same property.2. An agency shall compute a replacement housing payment for a person who occupied one unit of a multi-family or a mixed-use property provided:a. The comparable property shall be the same as a property acquired. For example, a comparable shall be a triplex when the acquired property is a triplex. Dwellings of the next lower density shall be used when there is no comparable. A single-family dwelling shall be used as the comparable for a person's dwelling when there are no comparable multi-family or mixed-use dwellings;b. The carve-out value of the dwelling shall be used for a replacement housing determination, not the market value of an entire property. A replacement housing payment is the difference, if any, between the value of the acquired dwelling unit and the value of a comparable dwelling unit in the most comparable property.(8) NONPROFIT ORGANIZATION. A nonprofit organization or a religious society which meets the eligibility requirements applicable for a residential tenant or owner shall be eligible for a replacement housing payment under this subchapter. A nonprofit organization or religious society eligible for and claiming a replacement business payment under this subchapter may not receive a payment under subch. VI.(9) PAYMENT AMOUNT. A differential payment, an increased interest payment and an incidental expense payment may not exceed $25,000 for a 180-day owner-occupant, and a rent differential or downpayment may not exceed $8,000 for a 90-day occupant, except for the following: (a) An agency may exceed the amounts in sub. (9) if necessary to obtain a comparable replacement dwelling;(b) An agency may provide assistance in addition to that required in sub. (9) if a comparable dwelling is unavailable within a person's financial means. The additional assistance may include one or more of the following methods:1. A replacement payment in excess of the amounts in sub. (9);2. An offer of government assisted housing which is available and adequate for the needs of the displaced person;3. Rehabilitation of or addition to an existing dwelling;4. Provision of a direct loan requiring regular amortization or a deferred repayment;5. Relocation and rehabilitation of a dwelling;6. Purchase of land or a replacement dwelling by the displacing agency with subsequent sale or lease back to, or exchange with, a displaced person;7. Construction of a new dwelling.8. Change in occupancy status of the displaced person from tenant to homeowner when it is more cost effective to do so.(c) An agency may limit payment to the amount necessary to relocate to a comparable replacement within one year from the date the person is paid for the displacement dwelling, or one year from the date the person is initially offered a comparable replacement dwelling and advised of replacement payment entitlements, whichever is later.Wis. Admin. Code Department of Administration § Adm 92.68
Cr. Register, March, 1986, No. 363, eff. 4-1-86; renum. (1) to be (1) (a) and am., cr. (1) (b), (9) (b) 8. and (c), am. (3), Register, November, 1989, No. 407, eff. 12-1-89; corrections made under s. 13.93(2m) (b) 7, Stats., Register, April, 1996, No. 484; am. (9) (b) (intro.), Register, March, 1997, No. 495, eff. 4-1-97; correction in (2), (3), (4) (a) made under s. 13.92(4) (b) 7, Stats., Register December 2011 No. 672.