(i) has actually owned and occupied the displacement dwelling for not less than 180 days immediately prior to the initiation of negotiations; and

(ii) purchases and occupies a decent, safe and sanitary replacement dwelling within one year after the later of the following dates (except that the agency may extend such one year period for good cause):

(i) the amount by which the cost of a replacement dwelling exceeds the acquisition cost of the displacement dwelling as determined in accordance with paragraph (3) of this subdivision;

(ii) the increased interest costs and other debt service costs which are incurred in connection with the mortgage(s) on the replacement dwelling as determined in accordance with paragraph (4) of this subdivision; and

(iii) the reasonable expenses incidental to the purchase of the replacement dwelling as determined in accordance with paragraph (5) of this subdivision.

(i) Basic computation. The price differential to be paid under subparagraph (2)(i) of this paragraph is the amount which must be added to the acquisition cost of the displacement dwelling to provide a total amount equal to the lesser of:

(ii) Mixed-use and multi-family properties. If the displacement dwelling was part of a property that contained another dwelling unit and/or space used for nonresidential purposes, and/or is located on a lot larger than typical for residential purposes, only that portion of the acquisition payment which is actually attributable to the displacement dwelling shall be considered its acquisition cost when computing the price differential.

(iii) Insurance proceeds. To the extent necessary to avoid duplicate compensation, the amount of any insurance proceeds received by a person in connection with a loss to the displacement dwelling due to a catastrophic occurrence (fire, flood, etc.) shall be included in the acquisition cost of the displacement dwelling when computing the price differential.

(iv) Owner retention of displacement dwelling. If the owner retains ownership of the displacement dwelling, moves it from the displacement site and reoccupies it on a replacement site, the purchase price of the replacement dwelling shall be the sum of:

(i) The payment shall be based on the unpaid mortgage balances on the displacement dwelling; however, in the event the person obtains a smaller mortgage than the mortgage balance(s) computed in the buydown determination, the amount computed as the buydown payment must be adjusted to reflect the change. This can be done through proration by dividing the amount of the actual replacement mortgage by the computed eligible replacement mortgage amount. This calculation provides a percentage factor which can be applied to the computed buydown amount resulting in an adjusted increased mortgage interest payment. In the case of a home equity loan the unpaid balance shall be that balance which existed 180 days prior to the initiation of negotiations or the balance on the date of acquisition, whichever is less.

(ii) The payment shall be based on the remaining term of the mortgage(s) on the displacement dwelling or the term of the new mortgage, whichever is shorter.

(iii) The interest rate on the new mortgage used in determining the amount of the payment shall not exceed the prevailing fixed interest rate for conventional mortgages currently charged by mortgage lending institutions in the area in which the replacement dwelling is located.

(iv) Purchaser's points and loan origination or assumption fees, but not seller's points, shall be paid to the extent:

(i) legal, closing and related costs, including those for title search, preparing conveyance instruments, notary fees, preparing surveys and plats and recording fees;

(ii) lender, FHA or VA application and appraisal fees;

(iii) loan origination or assumption fees that do not represent prepaid interest;

(iv) certification of structural soundness and termite inspection when required;

(v) credit report;

(vi) owner's and mortgagee's evidence of title, e.g., title insurance, not to exceed the costs for a comparable replacement dwelling;

(vii) escrow agent's fee;

(viii) State revenue or documentary stamps, sales or transfer taxes (not to exceed the costs for a comparable replacement dwelling);

(ix) such other costs as the agency determines to be incidental to the purchase.

(i) has actually and lawfully occupied the displacement dwelling for at least 90 days immediately prior to the initiation of negotiations; and

(ii) has rented, or purchased, and occupied a decent, safe and sanitary replacement dwelling within one year (unless the agency extends this period for good cause) after:

(i) Amount of payment. An eligible displaced person who rents a replacement dwelling is entitled to a payment not to exceed $5,250 for rental assistance. (See also section 277.5[d].) Such payment shall be 42 times the amount obtained by subtracting the base monthly rental for the displacement dwelling from the lesser of:

(ii) Base monthly rental for displacement dwelling. The base monthly rental for the displacement dwelling is the lesser of:

(iii) Manner of disbursement. A rental assistance payment may, at the agency's discretion, be disbursed in either a lump sum or in installments. However, except as limited by paragraph (c)(6) of this section, the full amount vests immediately, whether or not there is any later change in the person's income or rent, or in the condition or location of the person's housing.

(i) Amount of payment. An eligible displaced person who purchases a replacement dwelling is entitled to a downpayment assistance payment in the amount the person would receive under paragraph (2) of this section if the person rented a comparable replacement dwelling. However, the payment to a displaced homeowner shall not exceed the amount the owner would receive under section 277.5(a)(2) if the 180-day occupancy requirement was met. A displaced person eligible to receive a payment as a 180-day owner-occupant under section 277.5(a)(1) is not eligible for this payment.

(ii) Application of payment. The full amount of the replacement housing payment for downpayment assistance must be applied to the purchase price of the replacement dwelling and related incidental expenses.

(i) If available, at least three comparable replacement dwellings shall be examined and the payment computed on the basis of the dwelling most nearly representative of, and equal to, or better than, the displacement dwelling. An adjustment shall be made to the asking price of any dwelling, to the extent justified by local market data. An obviously overpriced dwelling may be ignored.

(ii) If the site of the comparable replacement dwelling lacks a major exterior attribute of the displacement dwelling site, (e.g., the site is significantly smaller or does not contain a swimming pool), the value of such attribute shall be subtracted from the acquisition cost of the displacement dwelling for purposes of computing the payment.

(iii) If the acquisition of a portion of a typical residential property causes the displacement of the owner from the dwelling and the remainder is a buildable residential lot, the agency may offer to purchase the entire property. If the owner refuses said offer to sell the remainder, the fair market value of the remainder may be added to the acquisition cost of the displacement dwelling for purposes of computing the replacement housing payment.

(iv) To the extent feasible, comparable replacement dwellings shall be selected from the neighborhood in which the displacement dwelling was located or, if that is not possible, in nearby or similar neighborhoods where housing costs are generally the same or higher.

(i) purchases a dwelling; or

(ii) purchases and rehabilitates a substandard dwelling; or

(iii) relocates a dwelling which the person owns or purchases; or

(iv) constructs a dwelling on a site the person owns or purchases; or

(v) contracts for the purchase or construction of a dwelling on a site provided by a builder or on a site the person owns or purchases; or

(vi) currently owns a previously purchased dwelling and site, valuation of which shall be on the basis of current fair market value.

(i) a disaster, an emergency, or an imminent threat to the public health or welfare, as determined by the President, State or the agency; or

(ii) another reason, such as a delay in the construction of the replacement dwelling, military reserve duty, or hospital stay, as determined by the agency.

(i) The amount attributable to the displaced person's period of actual occupancy of the replacement housing shall be paid.

(ii) The full payment shall be disbursed in any case in which a member of a displaced family dies and the other family members continue to occupy a decent, safe and sanitary replacement dwelling.

(iii) Any portion of a replacement housing payment necessary to satisfy the legal obligations of an estate in connection with the selection of a replacement dwelling by or on behalf of a deceased person shall be disbursed to the estate.

(i) On a case-by-case basis, for good cause, which means that appropriate consideration has been given to:

(ii) By a determination that:

(i) The methods of providing housing of last resort include, but are not limited to:

(ii) Under special circumstances, consistent with the definition of a comparable replacement dwelling, modified methods of providing housing of last resort permit consideration of replacement housing based on space and physical characteristics different from those in the displacement dwelling, including upgraded, but smaller replacement housing that is decent, safe and sanitary and adequate to accommodate individuals or families displaced from marginal or substandard housing with probable functional obsolescence. In no event, however, shall a displaced person be required to move into a dwelling that is not functionally equivalent to the displacement dwelling.

(iii) The agency shall provide assistance under this subdivision to a displaced person who is not eligible to receive a replacement housing payment under section 277.5(a) or section 277.5(b) because of failure to meet the length-of-occupancy requirement when comparable replacement rental housing is not available at rental rates within the person's financial means, which is 30 percent of the person's gross monthly household income. Such assistance shall cover a period of 42 months.