Substitute House Bill No. 5394 amends the Uniform Relocation Assistance Act to enhance the support provided to individuals displaced from their homes due to code enforcement actions. The bill mandates that state agencies offer financial assistance to those who have lawfully occupied their dwelling for at least ninety days prior to acquisition negotiations. New provisions clarify that this assistance, capped at $4,000, can be utilized for leasing or renting a new dwelling, down payments on a new home, and now includes hotel stays as an option. Additionally, landlords are held accountable for payments to displaced tenants, with municipalities authorized to place liens on landlords' properties to ensure repayment.

The bill also revises the conditions under which the Commissioner of Housing can grant funds to state agencies for relocation assistance programs, allowing for coverage of actual administration costs and advance relocation assistance for individuals not eligible for federal or other state aid. Municipalities are required to lien properties owned by landlords of displaced individuals and assign claims against those landlords to the state, with the Attorney General responsible for collection. A portion of the collected funds will be allocated to the General Fund, while the remainder will support the municipalities involved. These changes will take effect on October 1, 2026.

Statutes affected:
Raised Bill: 8-270, 8-280
PD Joint Favorable Substitute: 8-270, 8-280
File No. 263: 8-270, 8-280