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rate, but may not exceed the pre- vailing interest rate currently charged by mortgage lending institutions in the vicinity. (d) The discount rate will be the pre- vailing rate of interest paid on pass- book savings account deposits by commercial banks in the general area in which the replacement dwell- ing is located. (3) The payment described in this paragraph may be made directly to the relocated in- dividual or family, or upon written instruc- tion from the relocated individual or family, directly to the mortgagee of the replacement dwelling. In cases where an applicant other- wise qualifies for an interest payment, and upon his specific request, the Sponsor may make an advance payment into escrow prior to the displaced person's moving. (4) On property with partial acquisition only, the following will apply: (a) Where the dwelling is located on a tract normal for residential use in the area, the interest payment will be reduced to the percentage ratio that the acquisition price bears to the be- fore value; except, the reduction will not apply when the mortgagee re- quires the entire mortgage balance to be paid because of the acquisition and it is necessary to refinance. (b) Where a dwelling is located on a tract larger than normal for residen- tial use in the area, the interest pay- ment will be reduced to the percent- age ratio that the value of the residential portion bears to the before value. This reduction will apply whether or not it is required that the entire mortgage balance be paid. (5) The interest payment on multiuse properties will be reduced to the percentage ratio that the residential value of the multiuse property bears to the before value. (6) If a dwelling is located on a tract where the fair market value is established on a higher and better than residential use, and if the mortgage is based on residential value, the interest payment will be computed as pro- vided in the appropriate paragraphs above. If the mortgage is obviously based on the 58 higher use, however, the interest payment will be reduced to the percentage ratio that the estimated residential value of the parcel has to the before value. d. Incidental Expenses. (1) The incidental expenses payment is the amount necessary to reimburse the home- owner for the actual costs incurred by him incident to the purchase of the replacement dwelling, excluding prepaid expenses, but does not exceed the costs normally incurred on a comparable replacement dwelling. Such costs may include the following items if nor- mally paid by the buyer: (a) Legal, closing, and related costs in- cluding title search, preparing con- veyance contracts, notary fees, sur- veys, preparing drawings or plats and charges paid incident to recordation. (b) Lenders, FHA or VA appraisal fees. (c) FHA or VA application fee. (d) Certification of structural soundness when required by lender, FHA or VA. (e) Credit report. (f) Title policy or abstract of title. (g) Escrow agent's fee. (h) State revenue stamps. (i) Sales or transfer taxes. (2) No fee, cost, charge or expense is reimbursa- ble as incidental expenses which is deter- mined to be a part of the debt service, or finance charge under the Truth in Lending Act, title I (Public Law 90-321) and Reg- ulation Z issued by the Board of Governors of the Federal Reserve System. e. Combined Payments Not To Exceed $15,000. If an owner -occupant is otherwise qualified for a payment in the manner described in this paragraph but has previously received a payment under pro- cedures described in paragraph 93, the amount of such payment received shall be deducted from the amount to which he is entitled in the manner de- scribed in this paragraph. In no event may the combined payments exceed $15,000. f. Owner Retention. The replacement housing payment for a displaced person who has retained his dwelling from the acquired property should be computed in accordance with the guides of the appropriate paragraph below. (1) If the dwelling is decent, safe, and sanitary, the payment, if any, should be the amount by which the costs to move the retained