WSR 01-02-027

PERMANENT RULES

DEPARTMENT OF TRANSPORTATION


[ Filed December 22, 2000, 1:33 p.m. ]

Date of Adoption: December 29 [22], 2000.

Purpose: This chapter promulgates rules to implement chapter 8.26 RCW pertaining to policies for relocation assistance and real property acquisition.

Citation of Existing Rules Affected by this Order: Amending WAC 468-100-002, 468-100-102, 468-100-203, 468-100-208, 468-100-209, and 468-100-306.

Statutory Authority for Adoption: Chapter 8.26 RCW.

Other Authority: WSR 89-17-048 (Order 121).

Adopted under notice filed as WSR 00-17-061 on August 9, 2000.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 6, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 6, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 6, Repealed 0. Effective Date of Rule: Thirty-one days after filing.

December 22, 2000

Sid Morrison

Secretary

for Gerald E. Smith, P.E.

Deputy Secretary, Operations

OTS-4130.2


AMENDATORY SECTION(Amending Order 121, filed 8/14/89, effective 9/14/89)

WAC 468-100-002   Definitions.   Certain terms used in this chapter are defined as follows:

     (1) Agency: Means the state agency or local public agency which acquires the real property or displaces a person.

     (2) Alien not lawfully present in United States: Means an alien who is not "lawfully present" in the United States as defined in Public Law 104-193 and includes:

     (a) An alien present in the Unites States who has not been admitted or paroled into the United States pursuant to the Immigration and Nationality Act and whose stay in the United States has not been authorized by the United States Attorney General; and

     (b) An alien who is present in the United States after the expiration of the period of stay authorized by the United States Attorney General or who otherwise violates the terms and conditions of admission, parole or authorization to stay in the United States.

     (3) Appraisal: Means a written statement independently and impartially prepared by a qualified appraiser setting forth an opinion of defined value of an adequately described property as of a specific date, supported by the presentation and analysis of relevant market information.

     (((3))) (4) Business: Means any lawful activity, except a farm operation, that is conducted:

     (a) Primarily for the purchase, sale, lease, and/or rental of personal and/or real property, and/or for the manufacture, processing, and/or marketing of products, commodities, and/or any other personal property; or

     (b) Primarily for the sale of services to the public; or

     (c) Solely for the purpose of WAC 468-100-303, conducted primarily for outdoor advertising display purposes, when the display must be moved as a result of the project; or

     (d) By a nonprofit organization that has established its nonprofit status under applicable federal or state law.

     (((4))) (5) Comparable replacement dwelling: Means a dwelling which meets the additional rules in WAC 468-100-403 and which:

     (a) Is decent, safe, and sanitary according to the definition in ((WAC 468-100-002(6))) subsection (7) of this section.

     (b) Is functionally similar to the displacement dwelling with particular attention to the number of rooms and living space.

     (c) Is adequate in size to accommodate the occupants.

     (d) Is located in an area that is not subject to unreasonable adverse environmental conditions, is not generally less desirable than the location of the displaced person's dwelling with respect to public utilities and commercial and public facilities, and is reasonably accessible to the person's place of employment.      Comparables may be used from neighborhoods similar to that of the acquired dwelling.

     (e) Has a site that is typical in size for residential development with normal site improvements, including customary landscaping.      The replacement site need not include either a special improvement or a major exterior attribute of the displacement site in accordance with WAC 468-100-403 (1)(b).

     (f) Is currently available to the displaced person on the private market.      However, a comparable replacement dwelling for a person receiving government housing assistance before displacement may reflect similar government housing assistance.

     (g) Is priced within the financial means of the displaced person.

     (i) For a one hundred eighty-day owner-occupant described at WAC 468-100-401, a comparable dwelling is considered to be within the displacee's financial means.

     (ii) For a ninety-day tenant-occupant described at WAC 468-100-402, a comparable dwelling is considered to be within the displacee's financial means if after application of the rental assistance payment, described in said section, the displacee's portion of the monthly rent plus utilities would be thirty percent or less of his total monthly income from all sources.

     (iii) For a displaced person who is not eligible to receive a replacement housing payment under WAC 468-100-402 due to failure to meet the length of occupancy requirements, comparable housing is considered to be within the displacee's financial means if the acquiring agency pays that portion of the monthly housing costs which would exceed thirty percent of the displacee's monthly income for forty-two months.      Replacement housing payments would be paid under WAC 468-100-601.

     (((5))) (6) Contribute materially: Means that during the two taxable years prior to the taxable year in which displacement occurs, or during such other period as the agency determines to be more equitable, a business or farm operation:

     (a) Had average annual gross receipts of at least five thousand dollars; or

     (b) Had average annual net earnings of at least one thousand dollars; or

     (c) Contributed at least thirty-three and one-third percent of the owner's or operator's average annual gross income from all sources.

     (d) If the application of the above criteria creates an inequity or hardship in any given case, the agency may approve the use of other criteria as determined appropriate.

     (((6))) (7) Decent, safe, and sanitary (DSS) dwelling: Means a dwelling which meets applicable housing and occupancy codes.      However, any of the following standards which are not met by an applicable code shall apply, unless waived for good cause by the agency funding the project.      The dwelling shall:

     (a) Be structurally sound, weathertight, and in good repair.

     (b) Contain a safe electrical wiring system adequate for lighting and other electrical devices.

     (c) Contain a heating system capable of sustaining a healthful temperature (of approximately seventy degrees) for a displaced person.

     (d) Be adequate in size with respect to the number of rooms and area of living space needed to accommodate the displaced person.      There shall be a separate, well-lighted and ventilated bathroom that provides privacy to the user and contains a sink, bathtub or shower stall, and a toilet, all in good working order and properly connected to appropriate sources of water and to a sewage drainage system.      In the case of a housekeeping dwelling, there shall be a kitchen area that contains a fully usable sink, properly connected to potable hot and cold water and to a sewage drainage system, and adequate space and utility service connections for a stove and refrigerator.

     (e) Contains unobstructed egress to safe, open space at ground level.      If the replacement dwelling unit is on the second story or above, with access directly from or through a common corridor, the common corridor must have at least two means of egress.

     (f) For a displaced person who is handicapped, be free of any barriers which would preclude reasonable ingress, egress, or use of the dwelling by such displaced person.

     (((7))) (8) Displaced person:

     (a) General: Means any person who moves from the real property or moves his or her personal property from the real property:

     (i) As a direct result of the agency's acquisition of, or the initiation of negotiation for, such real property in whole or in part for a project; or

     (ii) As a direct result of a written order from the acquiring agency to vacate such real property for a project; or

     (iii) As a direct result of the agency's acquisition of, or written order to vacate for a project, other real property on which the person conducts a business or farm operation; or

     (iv) As a direct result of a voluntary transaction by the owner pursuant to WAC 468-100-101 (2)(a) thereby displacing a tenant.

     (b) Persons not displaced: The following is a nonexclusive listing of persons who do not qualify as a displaced person under this chapter.

     (i) A person who moves before the initiation of negotiations except one who is required to move for reasons beyond his or her control as explained in WAC 468-100-403(5); or

     (ii) A person who initially enters into occupancy of the property after the date of its acquisition for the project; or

     (iii) A person whom the agency determines is not required to relocate permanently as a direct result of a project; or

     (iv) A person whom the agency determines is not displaced as a direct result of a partial acquisition; or

     (v) A person who, after receiving a notice of relocation eligibility also receives a notice of noneligibility (described in WAC 468-100-203 (2)(b)); or

     (vi) An owner who voluntarily sells his or her property pursuant to WAC 468-100-101 (2)(a) after being informed in writing that if a mutually satisfactory agreement of sale cannot be reached, the agency will not acquire the property; or

     (vii) A person who retains the right of use and occupancy of the real property for life following its acquisition by the agency; or

     (viii) A person who retains the right of use and occupancy of the real property for a fixed term after its acquisition for a program or project receiving federal financial assistance from the Department of Interior; or

     (ix) A person who has occupied the property for the purpose of obtaining assistance under the Uniform Act; or

     (x) An owner who retains the right of use and occupancy of the real property for a fixed term after its acquisition by the Department of Interior under Public Law 93-477 or Public Law 93-303, except that such owner remains a displaced person for purposes of subpart D of this code; or

     (xi) A person who is determined to be in unlawful occupancy or a person who has been evicted for cause prior to the initiations of negotiations for the property; or

     (xii) A person who is not lawfully present in the United States and who has been determined to be ineligible for relocation benefits in accordance with WAC 468-100-208.

     (((8))) (9) Dwelling: Means the place of permanent or customary and usual residence of a person, as determined by the agency according to local custom or law, including a single family house; a single family unit in a two-family, multifamily, or multipurpose property; a unit of a condominium or cooperative housing project; a nonhousekeeping unit; a mobile home; or any other fixed or installed residential unit other than a unit customarily used, and currently (although not necessarily immediately) capable of use, for transportation or recreational purposes.

     (((9))) (10) 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.

     (((10))) (11) Financial assistance: Means any grant, loan, or contribution, except a federal guarantee or insurance.

     (((11))) (12) Initiation of negotiations: Means the date of delivery of the initial written offer by the agency to the owner or the owner's representative to purchase real property for a project for the amount determined to be just compensation, unless applicable agency program regulations specify a different action to serve this purpose.      However:

     (a) If the agency issues a notice of its intent to acquire the real property, and a person moves after that notice, but before delivery of the initial written purchase offer, the "initiation of negotiations" means the date the person moves from the property.      (See also WAC 468-100-505(3).)

     (b) In the case of a permanent relocation to protect the public health and welfare under the Comprehensive Environmental Response Compensation and Liability Act of 1980 (Pub. L. 96-510, or "Superfund"), the "initiation of negotiations" means the formal announcement of such relocation or the federal or federally-coordinated health advisory where the federal government later decides to conduct a permanent relocation.

     (((12))) (13) Mortgage: Means any of 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.

     (((13))) (14) Owner of displacement dwelling: A displaced person is considered to have met the requirement to own a displacement dwelling if the person holds any of the following interests in real property acquired for a project:

     (a) Fee title, a life estate, a ninety-nine year lease, or a lease, including any options for extension, with at least fifty years to run from the date of acquisition; or

     (b) An interest in a cooperative housing project which includes the right to occupy a dwelling; or

     (c) A contract to purchase any of the interests or estates described in subsection (1) or (((2))) (3) of this section; or

     (d) Any other interests, including a partial interest, which in the judgment of the agency warrants consideration as ownership.

     (((14))) (15) Person: Means any individual, family, partnership, corporation, or association.

     (((15))) (16) Salvage value: Means the probable sale price of an item, if offered for sale on the condition that it will be removed from the property at the buyer's expense, allowing a reasonable period of time to find a person buying with knowledge of the uses and purposes for which it is adaptable and capable of being used, including separate use of serviceable components and scrap when there is no reasonable prospect of sale except on that basis.

     (((16))) (17) Small business: Means any business having not more than five hundred employees working at the site being required or permanently displaced by a program or project, which site is the location of economic activity. Sites operated solely by outdoor advertising signs, displays, or devices do not qualify as a business for purposes of WAC 468-100-306.

     (((17))) (18) State: Means any department, commission, agency, or instrumentality of the state of Washington.

     (((18))) (19) Tenant: Means a person who has the temporary use and occupancy of real property owned by another.

     (((19))) (20) Uneconomic remnant: Means a parcel of real property in which the owner is left with an interest after the partial acquisition of the owner's property, and which the acquiring agency has determined has little or no value.

     (((20))) (21) Uniform Act: Means the Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (84 Stat. 1894; 42 U.S.C. 4601 et seq.; Pub. L. 91-646), and amendments thereto.

     (((21))) (22) Unlawful occupancy: A person is considered to be in unlawful occupancy when such person has been ordered to move by a court prior to the initiation of negotiations for the acquisition of the occupied property.

     (((22))) (23) Voluntary transaction: Means a donation, exchange, market sale, or other type of agreement entered into without compulsion on the part of the agency.

[Statutory Authority: Chapter 8.26 RCW.      89-17-048 (Order 121), § 468-100-002, filed 8/14/89, effective 9/14/89.]


AMENDATORY SECTION(Amending Order 121, filed 8/14/89, effective 9/14/89)

WAC 468-100-102   Criteria for appraisals.   (1) Standards of appraisal: The format and level of documentation for an appraisal depend on the complexity of the appraisal problem.      The agency shall develop minimum standards for appraisals consistent with established and commonly accepted appraisal practice for those acquisitions which, by virtue of their low value or simplicity, do not require the in-depth analysis and presentation necessary in a detailed appraisal.      A detailed appraisal shall be prepared for all other acquisitions.      A detailed appraisal shall reflect nationally recognized appraisal standards.      An appraisal must contain sufficient documentation, including valuation data and the appraiser's analysis of that data, to support the appraiser's opinion of value.      At a minimum, the appraisal shall contain the following items:

     (a) The purpose and/or the function of the appraisal, a definition of the estate being appraised, and a statement of the assumptions and limiting conditions affecting the appraisal.

     (b) An adequate description of the physical characteristics of the property being appraised (and, in the case of a partial acquisition, an adequate description of the remaining property), a statement of the known and observed encumbrances if any, title information, location, zoning, present use, an analysis of highest and best use, and at least a five-year sales history of the property.

     (c) All relevant and reliable approaches to value consistent with commonly accepted professional appraisal practices.      When sufficient market sales data are available to reliably support the fair market value for the specific appraisal problem encountered, the agency, at its discretion, may require only the market approach.      If more than one approach is utilized, there shall be an analysis and reconciliation of approaches to value that are sufficient to support the appraiser's opinion of value.

     (d) A description of comparable sales, including a description of all relevant physical, legal, and economic factors such as parties to the transaction, source and method of financing, and verification by a party involved in the transaction.

     (e) A statement of the value of the real property to be acquired and, for a partial acquisition, a statement of the value of the damages and benefits, if any, to the remaining real property.

     (f) The effective date of valuation, date of appraisal, signature, and certification of the appraiser.

     (2) Influence of the project on just compensation.      To the extent permitted by applicable law, the appraiser in his "before" valuation shall disregard any decrease or increase in the fair market value of the real property caused by the project for which the property is to be acquired, or by the likelihood that the property would be acquired for the project, other than that due to the physical deterioration within the reasonable control of the owner.

     (3) Owner retention of improvements: If the owner of a real property improvement agrees and is permitted to obtain the right to remove it in whole or in part from the project site, the amount to be offered for the interest in the real property to be acquired shall be the amount determined to be just compensation for the owner's entire interest in the real property.      The salvage value (defined in WAC 468-100-002(15)) of the improvement to be removed shall be deducted from the agency's payment.

     (4) Qualifications of appraisers: The agency shall establish criteria for determining the minimum qualifications of appraisers.      Appraiser qualifications shall be consistent with the level of difficulty of the appraisal assignment.      The agency shall review the experience, education, training, and other qualifications of appraisers, including review appraisers, and utilize only those determined to be qualified.

     (5) Conflict of interest: No appraiser or review appraiser shall have any interest, direct or indirect, in the real property being appraised for the agency that would in any way conflict with the preparation or review of the appraisal.      Compensation for making an appraisal shall not be based on the amount of the valuation.      No appraiser shall act as a negotiator for real property which that person has appraised, except that the agency may permit the same person to both appraise and negotiate an acquisition where the value of the acquisition is ((two)) ten thousand ((five hundred)) dollars, or less.

[Statutory Authority: Chapter 8.26 RCW.      89-17-048 (Order 121), § 468-100-102, filed 8/14/89, effective 9/14/89.]


AMENDATORY SECTION(Amending Order 121, filed 8/14/89, effective 9/14/89)

WAC 468-100-203   Relocation notices.   Written notices shall be furnished as required by WAC 468-100-005.

     (1) General relocation information notice: As soon as feasible, a person scheduled to be displaced shall be furnished with a general written description of the agency's relocation program which does at least the following:

     (a) Informs the person that the person may be displaced for the project and generally describes the relocation payment(s) for which the person may be eligible, the basic conditions of eligibility, and the procedures for obtaining the payment(s).

     (b) Informs the person that the person will be given reasonable relocation advisory services, including referrals to replacement properties, help in filing payment claims, and other necessary assistance to help the person successfully relocate.

     (c) Informs the person that the person will not be required to move without at least ninety days' advance written notice (see subsection (3) of this section), and informs any person to be displaced from a dwelling that the person cannot be required to move permanently unless at least one comparable replacement dwelling has been made available.

     (d) Describes the person's right to appeal the agency's determination as to eligibility for, or the amount of, any relocation payment for which the person may be eligible.

     (2) Notice of relocation eligibility:

     (a) Eligibility for relocation assistance shall begin on the date of initiation of negotiations (defined in WAC 468-100-002(11)) for the occupied property.      When this occurs, the agency shall promptly provide written notice to all occupants to be displaced of their eligibility for applicable relocation assistance in accordance with WAC 468-100-005.

     (b) An occupant may subsequently be provided a notice of noneligibility if the agency determines the person will not be displaced.      Such notice may be issued only if the person has not moved and the agency agrees to reimburse the person for any expenses incurred to satisfy any binding contractual relocation obligations entered into after the effective date of the notice of relocation eligibility.

     (3) Ninety-day notice:

     (a) General: No lawful occupant shall be required to move unless the occupant has received at least ninety days advance written notice of the earliest date by which he or she may be required to move.

     (b) Timing of notice: The displacing agency may issue the notice ninety days before it expects the person to be displaced or earlier.

     (c) Content of notice: The ninety-day notice shall either state a specific date as the earliest date by which the occupant may be required to move, or state that the occupant will receive a further notice indicating, at least thirty days in advance, the specific date by which the occupant must move.      If the ninety-day notice is issued before a comparable replacement dwelling is made available, the notice must state clearly that the occupant will not have to move earlier than ninety days after such a dwelling is made available. (See WAC 468-100-204(1).)

     (d) Informs the person that any person who is an alien not lawfully present in the United States is ineligible for relocation advisory services and relocation payments, unless such ineligibility would result in exceptional and extremely unusual hardship to a qualifying spouse, parent, or child, as defined in WAC 468-100-208(9).

     (e) Urgent need: In unusual circumstances, an occupant may be required to vacate the property on less than ninety days advance written notice if the agency determines that a ninety-day notice is impracticable, such as when the person's continued occupancy of the property would constitute a substantial danger to health or safety.      A record of the agency's determination shall be included in the applicable case file.

[Statutory Authority: Chapter 8.26 RCW.      89-17-048 (Order 121), § 468-100-203, filed 8/14/89, effective 9/14/89.]


AMENDATORY SECTION(Amending Order 121, filed 8/14/89, effective 9/14/89)

WAC 468-100-208   ((Relocation payments not considered as income.)) Aliens not lawfully present in the United States.   ((No payment received by a displaced person under this chapter may be considered as income for the purpose of determining the eligibility or extent of eligibility of any person for assistance under any state law or for the purposes of any income tax or any tax imposed under Title 82 RCW, and the payments shall not be deducted from any amount to which any recipient would otherwise be entitled under Title 74 RCW.)) (1) Each person seeking relocation payments or relocation advisory assistance shall, as a condition of eligibility, certify:

     (a) In the case of an individual, that he or she is either a citizen or national of the United States, or an alien who is lawfully present in the United States.

     (b) In the case of a family, that each family member is either a citizen or national of the United States, or an alien who is lawfully present in the United States. The certification may be made by the head of the household on behalf of other family members.

     (c) In the case of an unincorporated business, farm, or nonprofit organization, that each owner is either a citizen or national of the United States, or an alien who is lawfully present in the United States. The certification may be made by the principal owner, manager, or operating officer on behalf of other persons with an ownership interest.

     (d) In the case of an incorporated business, farm, or nonprofit organization, that the corporation is authorized to conduct business within the United States.

     (2) The certification provided pursuant to subsection (1)(a), (b) and (c) of this section shall indicate whether such person is either a citizen or national of the United States, or an alien who is lawfully present in the United States. Requirements concerning the certification in addition to those contained in this rule shall be within the discretion of the federal funding agency and, within those parameters, that of the displacing agency.

     (3) In computing relocation payments under the Uniform Act, if any member(s) of a household or owner(s) of an unincorporated business, farm, or nonprofit organization is (are) determined to be ineligible because of a failure to be legally present in the United States, no relocation payments may be made to him or her. Any payment(s) for which such household, unincorporated business, farm, or nonprofit organization would otherwise be eligible shall be computed for the household, based on the number of eligible household members and for the unincorporated business, farm, or nonprofit organization, based on the ratio of ownership between eligible and ineligible owners.

     (4) The displacing agency shall consider the certification provided pursuant to subsection (1) of this section to be valid, unless the displacing agency determines in accordance with subsection (6) of this section that it is invalid based on a review of an alien's documentation or other information that the agency considers reliable and appropriate.

     (5) Any review by the displacing agency of the certifications provided pursuant to subsection (1) of this section shall be conducted in a nondiscriminatory fashion. Each displacing agency will apply the same standard of review to all such certifications it receives, except that such standard may be revised periodically.

     (6) If, based on a review of an alien's documentation or other credible evidence, a displacing agency has reason to believe that a person's certification is invalid (for example a document reviewed does not on its face reasonably appear to be genuine), and that, as a result, such person may be an alien not lawfully present in the United States, it shall obtain the following information before making a final determination:

     (a) If the agency has reason to believe that the certification of a person who has certified that he or she is an alien lawfully present in the United States is invalid, the displacing agency shall obtain verification of the alien's status from the local Immigration and Naturalization Service (INS) Office. A list of local INS offices was published in the Federal Register in November 17, 1997, at 62 FR 61350. Any request for INS verification shall include the alien's full name, date of birth and alien number, and a copy of the alien's documentation. (If an agency is unable to contact the INS, it may contact the FHWA in Washington, DC at 202-366-2035 (Marshall Schy, Office of Real Estate Services) or 202-366-1371 (Reid Alsop, Office of Chief Counsel), for a referral to the INS.)

     (b) If an agency has reason to believe that the certification of a person who has certified that he or she is a citizen or national is invalid, the displacing agency shall request evidence of United States citizenship or nationality from such person and, if considered necessary, verify the accuracy of such evidence with the issuer.

     (7) No relocation payments or relocation advisory assistance shall be provided to a person who has not provided the certification described in this section or who has been determined to be not lawfully present in the United States, unless such person can demonstrate to the displacing agency's satisfaction that the denial of relocation benefits will result in an exceptional and extremely unusual hardship to such person's spouse, parent, or child who is a citizen of the United States, or is an alien lawfully admitted for permanent residence in the United States.

     (8) For purposes of subsection (7) of this section, "exceptional and extremely unusual hardship" to such spouse, parent, or child of the person not lawfully present in the United States means that the denial of relocation payments and advisory assistance to such person will directly result in:

     (a) A significant and demonstrable adverse impact on the health or safety of such spouse, parent, or child;

     (b) A significant and demonstrable adverse impact on the continued existence of the family unit of which such spouse, parent, or child is a member; or

     (c) Any other impact that the displacing agency determines will have a significant and demonstrable adverse impact on such spouse, parent, or child.

     (9) The certification referred to in subsection (1) of this section may be included as part of the claim for relocation payments described in WAC 468-100-207.

[Statutory Authority: Chapter 8.26 RCW.      89-17-048 (Order 121), § 468-100-208, filed 8/14/89, effective 9/14/89.]


NEW SECTION
WAC 468-100-209   Relocation payments not considered as income.   No payment received by a displaced person under this chapter may be considered as income for the purpose of determining the eligibility or extent of eligibility of any person for assistance under any state law or for the purposes of any income tax or any tax imposed under Title 82 RCW, and the payments shall not be deducted from any amount to which any recipient would otherwise be entitled under Title 74 RCW.

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AMENDATORY SECTION(Amending Order 121, filed 8/14/89, effective 9/14/89)

WAC 468-100-306   Reestablishment expenses -- Nonresidential moves.   In addition to the payments available under WAC 468-100-303, a small business, as defined in WAC 468-100-002(16), farm or nonprofit organization may be eligible to receive a payment, not to exceed ten thousand dollars, for expenses actually incurred in relocating and reestablishing such small business, farm, or nonprofit organization at a replacement site.

     (1) Eligible expenses.      Reestablishment expenses must be reasonable and necessary, as determined by the agency.      They may include, but are not limited to, the following:

     (a) Repairs or improvements to the replacement real property as required by federal, state, or local law, code, or ordinance.

     (b) Modifications to the replacement property to accommodate the business operation or make replacement structures suitable for conducting the business.

     (c) Construction and installation costs((, not to exceed one thousand five hundred dollars)) for exterior signing to advertise the business.

     (d) Provision of utilities from right of way to improvements on the replacement site.

     (e) Redecoration or replacement of soiled or worn surfaces at the replacement site, such as paint, panelling, or carpeting.

     (f) Licenses, fees, and permits when not paid as part of moving expenses.

     (g) Feasibility surveys, soil testing and marketing studies.

     (h) Advertisement of replacement location((, not to exceed one thousand five hundred dollars)).

     (i) Professional services in connection with the purchase or lease of a replacement site.

     (j) Increased costs of operation during the first two years at the replacement site((, not to exceed five thousand dollars,)) for such items as:

     (i) Lease or rental charges;

     (ii) Personal or real property taxes;

     (iii) Insurance premiums; and

     (iv) Utility charges, excluding impact fees.

     (k) Impact fees or one-time assessments for anticipated heavy utility usage.

     (l) Other items that the agency considers essential to the reestablishment of the business.

     (m) Expenses in excess of the regulatory maximums set forth in (c), (h) and (j) of this subsection may be considered eligible if large and legitimate disparities exist between costs of operation at the displacement site and costs of operation at an otherwise similar replacement site.      In such cases the regulatory limitation for reimbursement of such costs may, at the request of the agency, be waived by the agency funding the program or project, but in no event shall total costs payable under this section exceed the ten thousand dollar statutory maximum.

     (2) Ineligible expenses.      The following is a nonexclusive listing of reestablishment expenditures not considered to be reasonable, necessary, or otherwise eligible:

     (a) Purchase of capital assets, such as, office furniture, filing cabinets, machinery, or trade fixtures.

     (b) Purchase of manufacturing materials, production supplies, product inventory, or other items used in the normal course of the business operation.

     (c) Interior or exterior refurbishments at the replacement site which are for aesthetic purposes, except as provided in WAC 468-100-306 (1)(e).

     (d) Interest on money borrowed to make the move or purchase the replacement property.

     (e) Payment to a part-time business in the home which does not contribute materially to the household income.

[Statutory Authority: Chapter 8.26 RCW.      89-17-048 (Order 121), § 468-100-306, filed 8/14/89, effective 9/14/89.]

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