Before the department of state highways evicts families or individuals from residential property or orders the demolition of a residential dwelling acquired for such highway purpose, it shall obtain a written certification that the occupants of such dwelling have relocated to suitable housing or have been offered suitable housing. Such certification shall be provided by the designated local governmental agency except that if the occupants have relocated to suitable housing outside the boundaries of the city or incorporated village or have been offered suitable housing outside of but in reasonable proximity to such boundaries, the certification shall be provided by the department of state highways. If the occupants relocate outside the boundaries of this state, or if after persons have been offered assistance in relocating to suitable housing but refuse or fail to accept assistance, certification of such facts by the department of state highways shall be sufficient.

     If the governing body of the city or incorporated village does not supply such written certification within 30 days of a written request by the department of state highways, the department of state highways may file a petition with the state administrative board asking for a determination that the provisions of this section have been met. The determination of the state administrative board shall be reduced to writing and if it is that the occupants of such dwelling have been relocated in suitable housing or that such occupants who refuse to relocate have been offered suitable housing in accordance with the provisions of this act then the determination of the state administrative board shall take the place of the certification required by this section.