§ 45-31.2-4. Payment for replacement housing for displaced homeowners. (a) In addition to payments otherwise authorized by this chapter, the relocation agency shall make an additional payment not in excess of an amount established by federal law to any displaced person who is displaced from a dwelling actually owned and occupied by the displaced person for not less than one hundred and eighty (180) days prior to the initiation of negotiations for the acquisition of the property. The additional payment includes the following elements:

(1) The amount, if any, which, when added to the acquisition cost of the dwelling acquired, equals the reasonable cost of a comparable replacement dwelling which is a decent, safe, and sanitary dwelling adequate to accommodate the displaced person, reasonably accessible to public services and places of employment, and available on the private market. All determinations required to carry out this subdivision are determined by regulations issued pursuant to § 45-31.2-8.

(2) The amount, if any, which will compensate the displaced person for any increased interest costs which the person is required to pay for financing the acquisition of the comparable replacement dwelling. The amount is paid only if the dwelling acquired was encumbered by a bona fide mortgage which was a valid lien on the dwelling for not less than one hundred and eighty (180) days prior to the initiation of negotiations for the acquisition of the dwelling. The amount shall be equal to the excess in the aggregate interest and other debt service costs of that amount of the principal of the mortgage on the replacement dwelling which is equal to the unpaid balance of the mortgage on the acquired dwelling, over the remainder term of the mortgage on the acquired dwelling, reduced to discounted present value. The discount rate is determined by regulations issued pursuant to § 45-31.2-8.

(3) Reasonable expenses incurred by the displaced person for evidence of title, recording fees, and other closing costs incident to the purchase of the replacement dwelling, but not including prepaid expenses.

(b) The additional payment authorized by this section is made only to a displaced person who purchases and occupies a replacement dwelling which is decent, safe, and sanitary not later than the end of the one year period beginning on the date on which he or she receives final payment of all costs of the acquired dwelling, or on the date on which he or she moves from the acquired dwelling, whichever is the later date.

History of Section. (P.L. 1972, ch. 129, § 1.)