United Auto Workers v. Department of Transportation

I

Relocation Assistance

Introduction

In February of 1986, appellant California Department of Transportation (Caltrans) acquired by condemnation property belonging to respondent United Auto Workers’ Local 887 (the UAW), paying $1.275 million. The property was acquired for the Century Freeway, a project which was partially federally funded.

Under both state and federal law, a person displaced by the acquisition of real property for public use is entitled to specified relocation assistance from the displacing public entity, including payment for moving and related costs. (Gov. Code, §§ 7260 et seq., 7262; 42 U.S.C. § 4601 .) Guidelines adopted by the Department of Housing and Community Development (HCD) pursuant to California law provide that renovation costs may be payable as relocation assistance benefits, at the discretion of the public entity and subject to specified criteria. (Cal. Code Regs., tit. 25, § 6090, subd. (b)(1). ) However, regulations adopted by Caltrans do not include as allowable payments costs for renovation of replacement premises, and under federal law, a displaced business is not entitled to payment for physical changes to the replacement premises.…