(1) In addition to amounts otherwise authorized by this article, a displacing agency shall make a payment to or for any displaced person displaced from any dwelling who is not eligible to receive a payment under section 24-56-104, 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, or, in any case in which displacement is not a direct result of acquisition, such other event as the department of transportation may, within the purpose of this article, prescribe. Payment authorized by this section shall be made only to such a displaced person who leases and occupies a decent, safe, and sanitary replacement dwelling within one year after the date that such displaced person vacates the acquired dwelling. The payment shall consist of the amount necessary to enable the person to lease or rent, for a period of no longer than forty-two months, a comparable replacement dwelling, but no more than five thousand two hundred fifty dollars. At the discretion of the displacing agency, a payment under this subsection (1) may be made in periodic installments. Computation of a payment under this subsection (1) to or for a low-income displaced person for a comparable replacement dwelling shall take into account the person's income.

(2) Any person eligible for a payment under subsection (1) of this section may elect to apply such payment to a down payment on, and other incidental expenses for, the purchase of a decent, safe, and sanitary replacement dwelling. Any such person may, at the discretion of the displacing agency, be eligible under this subsection (2) for the maximum amount allowed under subsection (1) of this section; except that, in the case of a displaced homeowner who has owned and occupied the displacement dwelling for at least ninety days but not more than one hundred eighty days immediately prior to the initiation of negotiations for the acquisition of such dwelling, such payment shall not be greater than the payment such person would otherwise have received under section 24-56-104 (1) had the person owned and occupied the displacement dwelling one hundred eighty days immediately prior to the initiation of such negotiations.