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that payment by the State or local agencies of any such expenses, in the absence of specific enabling legislation, would constitute a donation of public funds to a private individual or organization and would therefore be unconstitutional. The very nature of public improvement projects has meant that the public agency, in order to keep costs down and to remove blighted areas rather than more attractive areas, located the projects in the lower income group neighborhoods when feasible. Thus, the brunt of the land acquistions and re- locations of persons for public improvement proj- ects fell upon the lower income groups. Although the higher income groups could afford to fight the condemnation proceedings or other forms of acqui- sition and often obtain very favorable settlements, the majority of the lower income groups could not do so, and many sustained additional losses. More- over, many of the displaced persons were tenants without any interest in the property that would be compensated as a result of the condemnation proceedings. The net effect has been that the lower income groups have paid a disproportionate price for the majority of the public improvement projects. In recognition of these injustices and in an effort to remedy them, the Uniform Act was adopted. As stated in the act, its purpose is: To provide for uniform and equitable treat- ment of persons displaced from their homes, businesses, or farms by Federal and federally assisted programs and to establish uniform and equitable land acquisition policies for Federal and federally assisted programs. The provisions of the act are mandatory and are applicable to each public agency that administers programs or provides financial assistance under pro- grams which involve the acquisition of real prop- erty or the displacement of persons, farms or businesses, regardless of whether the acquisition of the real property is included in the project as a proj- ect cost item. Part 25 of the Regulations of the Office of the Secretary of Transportation has been issued to pro- vide information concerning the requirements which must be met in projects to which it relates. Failure on the part of a Sponsor to comply with the require- ments could result in the Sponsor's incurring project costs that would be unallowable under ADAP or FAAP, or even to a denial of further Federal assistance. 2 In any event, before proceeding with the acquisi- tion of land or the taking of any action that would require the relocation of persons, businesses or farms, a Sponsor is urged to consult with FAA to assure that its actions will comply fully with the requirements of the act and regulations and there- fore not jeopardize the Sponsor's eligibility for a grant on a current airport project or for a grant covering acquisition and relocation transactions that will be part of a future airport project. 5. DEFINITIONS. For the purpose of this cir- cular, the following terms are defined: a. Business. The term "business" means any law- ful activity other than a farm operation conducted primarily: (1) For the purchase, sale, lease or rental of personal and real property, and for the manu- facture, processing or marketing of products, commodities or any other personal property. (2) For the sale of services to the public. (3) By a nonprofit organization. (4) Solely for the purpose of moving and related expenses under paragraph 77 for assisting in the purchase, sale, resale, manufacture, processing, or marketing of products, com- modities, personal property or services by the erection and maintenance of an outdoor advertising display (s), whether or not the displays) is located on the premises on which any of the above activities are conducted. b. Comparable Replacement Dwelling. A "com- parable replacement dwelling" is one which is: (1) Decent, safe, and sanitary as defined in para- graph 5c. (2) Functionally equivalent and substantially the same as the acquired dwelling with respect to: (a) Number of rooms; (b) Area of living space; (c) Type of construction; (d) Age; (e) State of repair. Fair housing is open to all persons regard- less of race, color, religion or national origin and consistent with title VI of the Civil Rights Act of 1964 and title VIII of the Civil Rights Act of 1968. (4) In areas not generally less desirable than the dwelling to be acquired in regard to: (a) Public utilities; (b) Public and commercial facilities. (3) • 0 a