Section Adm 92.90 - GeneralThis 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.
(1) ELIGIBILITY REQUIREMENTS. An agency shall make a replacement payment to a displaced business or farm operation provided: (a) The property is subsequently acquired, a tenant is affected by displacement, or a notice to vacate is issued;(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.(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.(d) For the purpose of this section, a replacement business or farm property is purchased when a person: 1. Acquires an existing property as a replacement for the business or farm operation;2. Relocates or rehabilitates a property owned or acquired. Note: 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.
3. Contracts to, or constructs a building or structure for a new business or farm operation on a site owned or acquired. Note: 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.
(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: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;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.(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.(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. (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; (a) Assist a person to correct a deficiency and when necessary, refer a person to another facility in compliance with applicable codes;(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. (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.(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: (a) The agency shall re-compute the replacement payment using the acquisition amount, set by the court;(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.(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 replacement on land typical in size for the business less the price of the acquired building and the site when the acquired business is located on land typical in size for the type of business conducted.2. `Larger than typical size lot.' The maximum replacement payment shall be the selling price of a comparable replacement on land typical in size for the business, less the price of the acquired building, plus the price of that portion of the acquired land typical in size for the business being conducted, when the acquired business is located on land larger in size than typical for the type of business conducted.(b)Partial acquisition.1. `Typical size lot.' The maximum replacement payment shall be the selling price of a comparable replacement on land typical in size for the business, less the value of that portion of the acquired property which represents the typical size for the business, when the acquired business is located on land larger than typical for the business conducted.2. `Larger than typical size lot.' The maximum replacement payment shall be the selling price of a comparable replacement on land typical in size for the business, less the value of that portion of the acquired property which represents the typical size for the business, when the acquired business is located on land larger in size than typical for the business conducted.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)A business or farm operation on land with higher and better use. The maximum payment shall be the selling price of a comparable replacement business or farm operation on land typical in size for the existing business or farm use in the area, less the price for the acquired property and the price of that portion of the acquired land which represents land typical for the existing use, when the market value is based on a higher and better use than the existing use.(d)Mixed residential and nonresidential use property. An agency shall determine a replacement payment by using only that portion of the acquired or displacement property occupied by the displaced business or farm.(e)Multiple occupancy of the same parcel.1. Each separately organized business or farm operation which occupies a parcel shall be eligible for a replacement payment. The acquisition price or rent used for a replacement payment computation shall be the amount each business or farm occupant receives from the total payment for the property acquired, or the rent each tenant-occupant pays toward the total rent.2. There shall be only one business or farm operation replacement payment for a business or farm operation under one ownership but engaged in more than one operation. Note: An agency shall consider the factors under s. Adm 92.66 in determining whether more than one business or farm is eligible for payment under this subchapter.
(f)Decentralization of business or farm. The purchase price or the cost of a replacement, when a business or farm operation displaced from one site relocates to more than one site. The replacement payment shall be limited to a selected comparable at one site unless an agency determines the needs of a business or farm operation require location at more than one site.(g)Joint business and investment use. A person who owns and occupies a business and also rents out a residence or business facility on the same property, shall receive a replacement payment based only on that portion of the space and that portion of the acquisition price utilized by the business.(8) NONPROFIT ORGANIZATION. A nonprofit organization is eligible for a replacement business payment as specified under this chapter, provided the organization has not claimed a replacement housing payment under subch. V.(9) OUTSIDE PROFESSIONAL ASSISTANCE. The agency may use professional assistance to reestablish a displaced business or farm operation. Professional assistance for searching and other incidental expense incurred by a displaced person shall be compensable if the costs are necessary for reestablishment of the business or farm operation.Wis. Admin. Code Department of Administration § Adm 92.90
Cr. Register, March, 1986, No. 363, eff. 4-1-86; am. (1) (a) and (b), (3) and (7) (d), Register, November, 1989, No. 407, eff. 12-1-89.