In addition to amounts otherwise authorized by this chapter, a relocation agency shall make a payment to or for any displaced person displaced from any dwelling not eligible to receive a payment under § 45-31.2-4 which dwelling was actually and lawfully occupied by the displaced person for not less than ninety (90) days prior to the initiation of negotiations for acquisition of the dwelling. The payment is either:

(1)  The amount necessary to enable the displaced person to lease or rent for a period not to exceed any limitation provided in federal law, a decent, safe, and sanitary dwelling of standards adequate to accommodate the person in areas not generally less desirable in regard to public utilities and public and commercial facilities, and reasonably accessible to his or her place of employment, but not to exceed the amount established by the federal law; or

(2)  The amount necessary to enable the person to make a down payment (including incidental expenses described in § 45-31.2-4(a)(3)), on the purchase of a decent, safe, and sanitary dwelling of standards adequate to accommodate the person in areas not generally less desirable in regard to public utilities and public and commercial facilities, but not to exceed the amount established by federal law, except that if the amount exceeds the amount established by federal law, in making the down payment.