1. Introduction to the Uniform Act and the Right of Way Process
November 20, 2014

2. Real Property
Interests, benefits and rights inherent in ownership of physical real estate
Often considered the
“bundle of rights”
Includes fee simple,
permanent easements
and temporary easements

3. Eminent Domain
The power of any sovereign government to take private property without the consent of the owner.

4. U. S. Constitutional Limitations on Power of Eminent Domain
5th Amendment
“…nor shall private property be taken for public use without just compensation.”
14th Amendment
“…nor shall any State deprive any person of life, liberty, or property, without due process of law…”

5. Uniform Act
Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (Public Law )

6. Uniform Act Twofold Purpose
Provide for uniform and equitable treatment of persons displaced from their homes, businesses or farms by Federal and federally-assisted programs
Establish uniform and equitable land acquisition policies for Federal and federally-assisted programs

7. Major Components of the Uniform Act

8. When Must an Agency Follow The Uniform Act ?
When any phase of a project is federally-funded, and:
Real property is acquired, and/or
Property owners and/or tenants are displaced as a direct result of land acquisition, demolition or property redevelopment

9. ROW Impacts
Temporary Construction Easement

10. ROW Impacts (con.)
Temporary Construction Easement
2-6
2-6

11. ROW Impacts (con.)
Temporary Construction Easement
2-7

12. Project Development Process
Start
End
Planning
Corridor Selection
NEPA Process
Project Design
ROW Cost Estimates
ROW Plans
Real Estate
Preliminary ROW Activities
Appraisal
Acquisition/Relocation
Property Management
Construction
ROW Certification
Complete ROW certification exceptions
Monitor negotiated construction features

13. Key Elements of the Valuation Process
Appraisal
Fair Market Value
Review Appraisal
Just Compensation
P. L , as amended
Title III, Section 301

14. Definition of an Appraisal
“a written statement independently and impartially prepared by a qualified appraiser setting forth an opinion of defined value of an adequately described property as of a specific date, supported by the presentation and analysis of relevant market information.”
49 CFR 24.2(a)(3)

15. How Does an Appraiser Arrive at a Value
Three generally accepted approaches to value
Sales comparison approach
Income approach
Cost approach

16. Selecting and Contracting with Appraisers
Appraisers must be State certified or licensed
Define the appraisal problem, and select appraiser based on individual project or complexity of parcels identified for acquisition
Consider appraiser’s past eminent domain experience and quality of services provided to other clients
49 CFR (d)(2)

17. Preliminary Scope of Work
“The Agency acquiring real property has a legitimate role in contributing to the appraisal process, especially in developing the scope of work and defining the appraisal problem.”
49 CFR (a)(1)

18. Purpose of an Appraisal Review
“…examine the presentation and analysis of market information in all appraisals to assure that they meet the definition of appraisal found in 49 CFR 24.2(a)(3), appraisal requirements found in 49 CFR …”
49 CFR (a)
Critically examines appraisal work prepared by others
Brings consistency to the project

19. Just Compensation Equals or Exceeds Fair Market Value1 2 3
Appraisal Yardstick
Other Considerations
Fair Market Value (FMV)
Just Compensation
Appraised value and just compensation are usually equal.
Actual JC

20. Land Acquisition Process FlowchartNo
Give owner opportunity to consider offer
Follow-up with phone call(s) or personal contacts
Present written offer to Property Owner
(in person or by mail)
Owner signs conveyance instrument
Yes
Condemnation
Negotiations complete – consider property management activities
Complete Relocation Process
Property acquisition displaces residents?
If possible, make combined relocation and acquisition offers together
Property owner accepts offer?
Continued
negotiations
Agency prepares ROW Certification
Will acquisition displace occupants?
Successful?
START
END 20

21. Basic Acquisition Policies
Expeditious acquisition
Notice to owner
Just compensation offer established
Prompt written offer to purchase with summary statement
49 CFR
49 CFR, Appendix A,

22. Basic Acquisition Policies (con.)
Basic negotiation procedures
No coercive action
90-Day Notice
Payment before possession
Conflict of interest
Documentation of negotiations
49 CFR
49 CFR, Appendix A,

23. Alternative Settlement Techniques
Administrative Settlement
Purchase price for property exceeds amount offered as just compensation
Agency official approves settlement as reasonable, prudent and in the public interest
State DOT approval may be required
Federal-aid participation requires written justification supporting the settlement
49 CFR (i)

24. Alternative Settlement Techniques (con.)
Alternate Dispute Resolution - Mediation
A third party mediator may be able to resolve the conflict and achieve settlement
May be useful in particularly complex situations, or where negotiations have become blocked

25. Parcel Closings Obtain property encumbrance releases
Prepare settlement statement and deed
Pay just compensation to the property owner
Pay property owner’s expenses incidental to transfer of title to Agency
49 CFR

26. Eminent Domain and the Condemnation Process
The legal doctrine that government has the power to acquire private property for public purposes
Governments invoke eminent domain proceedings as a last resort
Condemnation
Legal process to invoke eminent domain
Conducted in a judicial venue
State laws vary regarding the authority and implementation of eminent domain

27. Liberty County Project Negotiations
Case Study 4.2
Liberty County Project Negotiations

28. Relocation Planning
Begins early in the development of a project - often part of NEPA process
Recognizes problems associated with displacement
Develops solutions to minimize the adverse impacts of displacement
49 CFR (a)

29. Advisory Services Explanation of relocation services and payments
Explanation of relocation eligibility requirements
Determination of needs and preferences of persons to be displaced through personal interview
Effort to meet identified needs of displaced persons
Provision of appropriate services
49 CFR (c)

30. Relocation Assistance Flowchart
Plan Project
Project Approved
Inform Persons to be Displaced
Interview Persons to be Displaced
Work with Persons to be Displaced
Person Chooses Replacement Property and Moves
Process Claims and Make Payments
Follow-up

31. Relocation Notices In writing, easily understood language
Foreign language may be appropriate
Delivered in person or certified mail, return receipt requested
Contain name and telephone number of contact person
49 CFR 24.5

32. General Information Notice
Format: brochure or letter that is general in nature
Given anytime – typically early
Conveys information about the relocation program, including right to appeal
49 CFR (a)

33. Notice of Relocation Eligibility
Format: letter that is hand- delivered or sent by certified mail
Delivered at initiation of negotiations (ION) or shortly thereafter
Establishes qualification for relocation assistance and may set amount
49 CFR (b)

34. Ninety-Day Notice
Format: letter that is hand-delivered or sent by certified mail
Delivered at or subsequent to ION or after property acquisition
Assures displaced person minimum of 90 days to move
For residential occupant, a comparable must be offered
49 CFR (c)

35. Decent, Safe, and Sanitary
Replacement dwelling must meet certain standards
Standards refer to physical condition of replacement property
Generally, a dwelling which meets local housing and occupancy codes will be decent, safe and sanitary (DSS)

36. Comparable Replacement Housing
Displacing Agency must offer at least one comparable replacement dwelling
49 CFR (a)
Comparable replacement dwelling forms the basis of the computation of the replacement housing payment (RHP)

37. Relocation Payments and Services
Slide 7-5
Relocation Payments and Services
Residential:
Nonresidential:
Fixed or Actual Moving Costs
Replacement Housing Payments
Related Nonresidential Expenses
Business Reestablishment Expenses
Advisory Services
Note: Persons not lawfully present in the US are not eligible for relocation payments or advisory services. 49 CFR

38. Relocation Case Study Pcl 105 Pcl 103 Vacant pasture vacant Pcl 102
commercial
building
Parking
Lot
SFR •
ROW line
P/L
industrial
plant
Pcl 102
convenience
store
Pcl 109
apartment
Pcl 104
Pcl 101
Pcl 106
Pcl 107
Pcl 108
Pcl 110

39. Property Management Activities Flowchart
Acquire Property
Construct
Facility
Sell excess/surplus property
Manage Property
Long-Term
(Post-Construction)
Identify
Short-term Uses
Rent/Lease
Sell Improvements
Manage
Property
(Acquisition)

40. Tasks and Timing Pre-Acquisition Assemble property descriptions
Prepare inventory of properties to be acquired
Identify NEPA requirements
Identify potential owner retention items

41. Acquisition and Management
Tasks and Timing (con.)
Acquisition and Management
Prepare/update inventory of acquired properties
Identify short-term uses
Dispose of improvements
Implement NEPA compliance
Identify potential excess property
Identify maintenance/security issues

42. ROW Certification Statement
The Agency certifies:
All properties needed
for construction are obtained
All properties are free
and clear of any
structures, businesses
or people
Utility relocation is
addressed
23 CFR

43. ROW Certification Statement (con.)
The Agency certifies:
All displacees are appropriately relocated
Compliance with all State laws, the Uniform Act and implementing regulations
23 CFR

44. Other Things ORC Does Provide project planning Provide oversight
Solve specific problems
Develop training
Assist with grants