A. In addition to amounts otherwise authorized by this article, a displacing agency shall pay to or for a person who is displaced from a dwelling and who is not eligible to receive a payment under section 28-7144 if the dwelling was actually and lawfully occupied by the displaced person for at least ninety days immediately before either:

1. 1. The initiation of negotiations for acquisition of the dwelling.
2. 2. In a case in which displacement is not a direct result of acquisition, another event as the department prescribes.

C. A person who is eligible for a payment under subsection A of this section:

1. 1. May elect to apply the payment to a down payment on and other incidental expenses relating to the purchase of a decent, safe and sanitary replacement dwelling.
2. 2. At the discretion of the displacing agency, may be eligible under this subsection for the maximum payment allowed under subsection B of this section, except that the payment to a displaced homeowner who has owned and occupied the displacement dwelling for at least ninety days immediately before the initiation of negotiations for the acquisition of the dwelling shall not exceed the payment the person otherwise would have received under section 28-7144, subsection A if the person had owned and occupied the displacement dwelling ninety days immediately before the initiation of the negotiations.