(a) In addition to amounts otherwise authorized by this chapter, an agency shall make a payment to or for any displaced person displaced from any dwelling not eligible to receive a payment under § 9303 of this title which dwelling was actually and lawfully occupied by such displaced person for not less than 90 days immediately prior to:

(1) The initiation of negotiations for acquisition of such dwelling and has rented or purchased and occupied a decent, safe and sanitary replacement dwelling within 1 year of moving from the displacement dwelling; or

(2) In any case in which displacement is not a direct result of acquisition, such other event as the agency shall prescribe.

Such payment shall be made in accordance with criteria established by the agency not to exceed $5,250 and shall consist of the amount necessary to enable such person to lease or rent for a period not to exceed 42 months, a comparable replacement dwelling. At the discretion of the agency, a payment under this subsection may be made in periodic installments.

(b) Any person eligible for a payment under subsection (a) of this section may elect to apply such payment to a down payment on, and other incidental expenses pursuant to, the purchase of a decent, safe and sanitary replacement dwelling. Any such person may, at the discretion of the agency, be eligible under this subsection for the maximum payment allowed under subsection (a) of this section, except that, in the case of a displaced homeowner who has owned and occupied the displacement dwelling for at least 90 days but not more than 180 days immediately prior to the initiation of negotiations for the acquisition of such dwelling, such payment shall not exceed the payment such person would otherwise have received under § 9303(a) of this title had the person owned and occupied the displacement dwelling 180 days immediately prior to the initiation of such negotiations.

(c) The full amount of the replacement housing payment for down payment assistance must be applied to the purchase price of the replacement dwelling and related incidental expenses.

29 Del. C. 1953, § 9104; 58 Del. Laws, c. 413, § 2; 67 Del. Laws, c. 8, § 5.