Cal. Civ. Code § 5:11-3.12
Payment in lieu of moving and related expenses
Operative Text
(a) The owner of a displaced business may receive an in lieu of moving and related expenses payment equal to the average net income for the last two years, but not less than $ 2,500 nor more than $ 10,000. 1. A person whose sole business at the displacement location is the rental of the property to others, or the owner of an outdoor advertising display at the displacement location, shall not qualify for a payment under this section. (b) In order for an applicant to be eligible for an in lieu payment, the displacing agency shall determine that: 1. The business cannot be relocated without a substantial loss of its existing patronage; and 2. The business is not a part of a commercial enterprise having another business of the same or similar nature that is not being acquired; and 3. The business contributes materially to the income of the owner. (c) The owner of a farm operation may receive payment in lieu of moving expenses calculated on the same basis as for a business, provided the displacing agency determines that: 1. The farm operation contributes materially to the operator's income; and 2. The displacement renders the farm operation an uneconomic unit.
N.J.A.C. § 5:11-3.12 establishes an alternative payment option for certain displaced businesses and farm operations that cannot practicably relocate, allowing them to receive a fixed payment instead of reimbursement for actual moving and related expenses. The payment is calculated based on the business's average net income over the last two years, with a floor of $2,500 and a ceiling of $10,000. Landlords whose sole business is renting property to others, and owners of outdoor advertising displays, are explicitly excluded from eligibility under this provision.
Plain English — not legal advice.
Property owners who operate a genuine business or farm at a displacement location—not merely a rental operation—should be aware that N.J.A.C. § 5:11-3.12 may provide an alternative payment pathway when relocation would cause substantial loss of patronage or render a farm economically unviable. Compliant operators typically document two years of net income records and demonstrate that the business materially contributes to their livelihood, since the displacing agency must make specific eligibility determinations before approving any in lieu payment. Owners whose sole activity at the site is renting property to others do not qualify and should look to other provisions for applicable relocation assistance.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Tenants who operate a qualifying business or farm at a displacement location may have a right under N.J.A.C. § 5:11-3.12 to request an in lieu payment ranging from $2,500 to $10,000 instead of standard moving expense reimbursement, provided the displacing agency finds the business cannot relocate without substantial patronage loss and materially contributes to the owner's income. If a displacing agency denies or limits this payment, affected parties generally have the option of raising the denial as a grievance through the agency's administrative process or consulting a tenant-rights or relocation-assistance organization familiar with New Jersey displacement law. Keeping thorough records of business income and operations at the displacement site is commonly understood to support eligibility determinations under this section.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated November 3, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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