Section 2: Computation of Payments
Anchor: #i999648Overview
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.
Anchor: #i999658Replacement Housing Payments
A displacee who meets the requirement of a 180-day residential occupant is eligible for a supplemental housing payment, increased interest costs, and closing costs (incidental expenses) to purchase a comparable replacement dwelling. When the sum of these items exceeds $22,500, provisions of this chapter are applicable. TxDOT will determine the amount of the replacement housing payment according to policies and procedures for normal housing payments.
Anchor: #i999668Increased Interest Payments
A last resort increased interest payment is the amount necessary to reduce the balance of either the existing 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 - 180-Day Owner-Occupants and Increased Interest Payment. Since last resort calculations are the same, it will not matter if the total entitlements of replacement housing exceed $22,500.
Anchor: #i999685Rental Assistance Supplement
180-Day Owner-Occupants
Last resort rental assistance payments for 180-day owner-occupants may not exceed the lesser of:
- the amount determined by TxDOT necessary to purchase a comparable replacement dwelling, or
- 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 Occupants
A last resort rental assistance payment for a 90-day occupant may 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.
Anchor: #i999725Late Residential Occupants
When a displaced residential tenant does not meet the length of occupancy requirements that apply to a 90-day tenant, 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 Volume. Any “late occupant” that enters into occupancy of the displacement dwelling after the “initiation of negotiations” must continue in occupancy of such dwelling until TxDOT obtains possession of the real property, in order to receive relocation benefits.