(a) When the acquisition of real property for a federally assisted program or project undertaken by a state agency will result in the displacement of a person, the state agency responsible for the program or project shall make payment to the displaced person, upon proper application as approved by the state agency, for

(1) actual reasonable expenses in moving a person, the person's 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 the property as determined by the state agency; and

(3) actual reasonable expenses in searching for a replacement business or farm.

(b) A displaced person eligible for payments under (a) of this section who is displaced from a dwelling and who elects to accept the payments authorized by this subsection in place of payments authorized by (a) of this section may receive a moving expense allowance, determined according to a schedule established by the state agency.

(c) A displaced person eligible for payments under (a) of this section who is displaced from a place of business or from a farm operation and who elects to accept the payment authorized by this subsection in place of the payment authorized by (a) of this section may receive a fixed payment, in an amount determined by the state agency, subject to the payment amount limitations under 42 U.S.C. 4622(c), as amended. A person whose sole business at the real property acquired is the rental of the property to others does not qualify for payment under this subsection.

(d) In addition to the moving expenses allowed under this section, a displaced farm or business may receive a payment, not to exceed the amount described in 42 U.S.C. 4622(a)(4), as amended, for the actual reasonable expenses necessary to reestablish the operation at a new site.