Section 2: Computation of Payments

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Last Resort Housing is a method by which supplemental payments in excess of the normal cost limits may be approved. Computation of the various types of supplements is described in Replacement Housing Payments (see below) and Residential Housing Evaluation, with the exception of the cost limits and the policies described in the following subsections.

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Replacement Housing Payments

A displacee who meets the requirement of a 90-day owner-occupant may be eligible for a supplemental housing payment, and closing costs (incidental expenses) to purchase a comparable replacement dwelling. In addition, a 90-day owner-occupant with a 180-day bona fide mortgage on the displacement dwelling may be eligible for increased interest costs. When the sum of these items exceeds $31,000, provisions of this chapter are applicable. TxDOT shall determine the amount of the replacement housing payment according to policies and procedures for normal housing payments.

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Mortgage Interest Differential Payments

A last resort increased interest payment is the amount necessary to reduce the balance of either the existing 180-day bona fide mortgage or new mortgage, whichever is less, to an amount at which the displacee’s monthly principal and interest payment and term is the same at the new higher interest rate as it was on the existing mortgage. The same requirements for offering an estimated amount, explaining conditions under which that estimated amount would be received, including loan origination fee and discount points, and, where applicable, prorating the payment when the new principal balance is less than the computed payoff balance, apply in last resort as described in Incidental Expenses - 90-Day Owner-Occupants and Mortgage Interest Differential Payment. Since last resort calculations are the same, it will not matter if the total entitlements of replacement housing exceed $31,000.

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Rental Assistance Supplement

90-Day Owner-Occupants

Last resort rental assistance payments for 90-day owner-occupants shall not exceed the lesser of:

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  • the amount, determined by TxDOT, necessary to purchase a comparable replacement dwelling; or
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  • the difference in the amount, determined by TxDOT, necessary to rent a comparable replacement dwelling for 42 months and 42 times the fair market rent of the displacement dwelling.

90-Day Tenant-Occupants and Less Than 90-Day Owner-Occupants

A last resort rental assistance payment for a 90-day tenant-occupant, or a less than 90-day owner-occupant, shall not exceed the difference in the amount determined by TxDOT necessary to rent a comparable dwelling for 42 months and 42 times the base monthly rent being paid for the displacement dwelling. These payments are governed by policies and procedures for normal rental assistance payments.

If a suitable DSS dwelling is available for purchase, the displacees may be entitled to down payment assistance toward the purchase of the DSS dwelling actually purchased and occupied, providing the amount of the down payment assistance does not exceed the previously computed rental supplement.

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Late Residential Occupants

When a displaced residential tenant does not meet the length of occupancy requirements that apply to a 90-day tenant, or is unable to provide documentation establishing a date of occupancy, the tenant shall be considered a “late” residential tenant, and entitled to all relocation benefits afforded to a normal 90-day tenant under Chapter 17 of this manual. Any “late occupant” must continue occupancy of such dwelling until TxDOT obtains possession of the real property, in order to receive relocation benefits.

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