Temporary Relocation: What Costs Must Be Covered

Most rehabilitation projects rely on temporary relocation: residents leave while work is done, then come back. HUD Handbook 1378 sets the baseline for what a temporarily relocated resident is owed under HUD-assisted projects. Under-budgeting these costs is a frequent source of resident complaints and audit findings.

The core obligations

For temporary relocation, HUD guidance generally requires that residents receive:

• A decent, safe and sanitary temporary unit: suitable for the household, including any accessibility needs.
• Reimbursement of reasonable out-of-pocket expenses connected with the temporary move.
• Appropriate advisory services, including reasonable advance written notice of the date and approximate length of the temporary move, the address of the temporary unit, and the terms of the assistance.

What "out-of-pocket" usually includes

• moving costs to the temporary unit and back again;
• increased housing costs during the temporary period, such as higher rent or utility costs;
• utility disconnection and reconnection, and deposits where required;
• storage of household goods when the temporary unit is smaller;
• other reasonable costs directly tied to the move, such as mail forwarding.

For RAD conversions, the RAD relocation Notice adds program-specific protections on top of these baseline requirements, including the right to return.

Common gaps

• Rent differences. If a household pays more at the temporary unit than its tenant share at home, the difference is an out-of-pocket cost.
• Commuting and school costs. Temporary units far from work, school or medical care create real costs. Locate temporary housing to keep them down.
• The move back: temporary relocation means two moves. Budget for the return trip as well as the move out.
• The one-year line. If the stay passes 12 months, URA displacement rights may apply.

How to manage it

Define reimbursable expenses in the relocation plan, explain them to residents in plain language, and process claims quickly. Prompt payment prevents most disputes. Track every payment in the resident log so totals reconcile with the relocation budget.