Real Solutions Seminar 012711

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NHI Real Solutions Seminar

Making Every Day Count:

Addressing Uniform Act Requirements

When ImplementingLocal Transportation Projects

January 27, 2011

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Presenters

Robert Merryman636-916-3293

[email protected]

Lisa Barnes850-907-0400

[email protected]

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Real Property

Interests, benefits and rights inherent inownership of physical real estate

Often considered thebundle of rights

Includes fee simple,

permanent easementsand temporary easements

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Eminent Domain

The power of any sovereign government totake private property without the consent

of the owner.

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U. S. Constitutional Limitationson Power of Eminent Domain

5th Amendment

nor shall private property be taken forpublic use without just compensation.

14th Amendment

nor shall any State deprive any personof life, liberty, or property, without due

process of law

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Uniform Act

Uniform Relocation Assistance and RealProperty Acquisition Policies Act of 1970,

as amended (Public Law 91-646)

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Uniform Act: Twofold Purpose

Provide for uniform and equitabletreatment of persons displaced from their

homes, businesses or farms by Federaland federally-assisted programs

Establish uniform and equitable landacquisition policies for Federal andfederally-assisted programs

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When Must an Agency FollowThe Uniform Act ?

When any phase of a project isfederally-funded, and:

Real property is acquired, and/or

Property owners and/or tenants are

displaced as a direct result of landacquisition, demolition or propertyredevelopment

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Federal Regulations

49 CFR Part 24 Department of

Transportation

23 CFR Part 710 - Highways

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Real Estate AcquisitionActivities

FHWA

LPAs

PropertyOwners

$$$Policies

State DOT

Policies $$$

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State DOT and LPA Relationship

State DOT oversees LPAs administration ofproject

LPAs should consult State DOT for assistance

23 CFR 710.201 11


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National Environmental Policy Act(NEPA)

Establishes national environmental policy

and goals for the protection, maintenance,and enhancement of the environment.

P. L. 91-190, as amended

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1-161-161-16

NEPA Environmental Documents

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ROW Involvement inEnvironmental Activities

Development of the environmental documentAnalysis of social impacts and relocation impacts

Cost estimates

Alternate site locations Feasibility and cost of wetland replacement

Application of agreements arising out of theenvironmental document

http://www.environment.fhwa.dot.gov/

guidebook/index.asp

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Project Development Process

PlanningCorridor SelectionNEPA Process

Project Design

Real Estate Preliminary ROW Activit iesAppraisalAcquisition/Relocation Property Management

ConstructionROW Ce r t i fi c a t ion

Start End

ROW Cost EstimatesROW Plans

Complete ROWcertification exceptions

Monitor negotiated

construction features 15


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When Can You Begin to Purchase ROWfor a Federal-Aid ROW Project?

The project:

Must be identified in the StatewideTransportation Improvement Plan (STIP)

Must have completed environmental

document in compliance with NEPA

Must have Federal funding authorization

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ROW Certification Statement

The Agency certifies:All properties needed

for construction are obtained

All properties are freeand clear of anystructures, businesses

or people Utility relocation is

addressed23 CFR 635.309

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ROW Certification Statement (con.)

The Agency certifies:

All displacees are

appropriately relocated

Compliance with all

State laws, the UniformAct and implementingregulations

23 CFR 635.30918


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Risks Associated with EarlyAcquisition

Purchasing a listed property withoutfollowing Uniform Act requirements

Purchasing property that is ultimately notneeded for project - no Federalreimbursement

Not purchasing enough property andhaving to negotiate with owner a secondtime

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Before You Advertise Your

Project for ConstructionYou must have:

Environmental decision

ROW certification

Utility agreement

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Key Elements of the

Valuation ProcessAppraisalFair Market Value

Review Appraisal

Just Compensation

P. L. 91-646, as amended

Title III, Section 301 21


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The Agency acquiring real property has alegitimate role in contributing to the

appraisal process, especially in developingthe scope of work and defining theappraisal problem.

Preliminary Scope of Work

49 CFR 24.103(a)(1)

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Selecting and Contracting withAppraisers

Before you hire anappraiser, consult withyour State DOT

Appraisers must meetState DOT qualifications

Appraisers must be State

certified or licensed49 CFR 24.103(d)(2)

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Selecting and Contractingwith Appraisers (con.)

Define the appraisal problem, and selectappraiser based on individual project orcomplexity of parcels identified for

acquisition

Consider appraisers past eminent domain

experience and quality of servicesprovided to other clients

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Purpose of an Appraisal Review

examine the presentation and analysis ofmarket information in all appraisals to assurethat they meet the definition of appraisal found in

49 CFR 24.2(a)(3), appraisal requirements foundin 49 CFR 24.10349 CFR 24.104(a)

Critically examines appraisal work prepared byothers

Brings consistency to the project

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LPA Appraisal Responsibilities

Identify and select qualified appraisers

Establish process for reviewing appraisals

Ensure appraisals are completed andreviewed appropriately

Review and approve the final appraisalreport

Establish just compensation

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B i A i iti P li i


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Basic Acquisition Policies

Expeditious acquisition

Notice to owner

Just compensation offerestablished

Prompt written offer to

purchase with summarystatement

49 CFR 24.10249 CFR, Appendix A, 24.102

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Basic Acquisition Policies(con.)

Basic negotiation procedures

No coercive action

90-Day Notice

Payment before possession

Conflict of interest

Documentation ofnegotiations

49 CFR 24.10249 CFR, Appendix A, 24.102

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Administrative Settlement

Purchase price for property exceeds amountoffered 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 writtenjustification supporting the settlement

49 CFR 24.102(i) 29


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Eminent Domain Condemnation

Lega l p rocess to invokeeminent domain

Conducted in a judicialvenue

Eminent Domain and theCondemnation Process

The l ega l doc t r ine thatgovernment has the

power to acquire privateproperty for publicpurposes

Governments invokeeminent domainproceedings as a lastresort

S ta t e law s va r y r ega rd ing t he au tho r i tyand im p lem en t at ion o f em inen t dom a in

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Alternative Means to AcquireProperty

Donation

Donation in exchange for construction

features

Dedication

Incorporation of LPA-owned land in theproject

49 CFR 24.10823 CFR 710.505 and 507

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Cost SharingFederally-Funded Projects

Project cost sharing ratio is dependent onFederal program requirements

LPA may use Federal assistance for allproject phases or for a specific phase

LPA may reduce cost of matching share byaccepting private donations, using LPAowned land for the project or usingdedications

23 CFR 710.507 32


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Reimbursement of Expenditures

Federal reimbursement of LPA projectexpenditures is contingent on LPAs

compliance with the Uniform Act and

other governing Federal and Staterequirements.

23 CFR 710 33


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Relocation Planning

Begins early in the development of aproject - often part of NEPA process

Recognizes problems associated withdisplacement

Develops solutions to minimize the

adverse impacts of displacement

49 CFR 24.205(a)

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Advisory Services

Explanation of relocation services and payments

Explanation of relocation eligibility requirements

Determination of needs and preferences of

persons to be displaced through pe r sona lin te rv iew Effort to meet identified needs of displaced

persons

Provision of appropriate services

49 CFR 24.205(c)35


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Relocation Payments and Services

Residential: Nonresidential:

Note: Persons not lawfully present in the US are not eligiblefor relocation payments or advisory services. 49 CFR 24.208

Fixed or ActualMoving Costs

Replacement HousingPayments

RelatedNonresidential

Expenses

BusinessReestablishment

Expenses

Fixed or ActualMoving Costs

Advisory ServicesAdvisory Services

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Property Management ActivitiesFlowchart

Acquire PropertyConstruct

Facility

Sell excess/surplus

property

Manage PropertyLong-Term

(Post-Construction)

IdentifyShort-term Uses

Rent/Lease Sell Improvements

ManageProperty

(Acquisition)

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Real Estate Acquisition Guide forLocal Public Agencies

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http://www.fhwa.dot.gov/realestate/lpaguide/index.htm


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Other NHI Real Estate Courses (ILT)

NHI 141029 Basic Relocation under the Uniform

Act

NHI 141030Advanced Relocation under theUniform Act

NHI 141031 Business Relocation under theUniform Act

NHI 141043Appraisal for Federal-Aid HighwayPrograms

NHI 141044Appraisal Review for Federal-AidHighway Programs

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Other NHI Real Estate Courses (WBT)

NHI 141045 Real Estate Acquisition under theUniform Act an Overview

NHI 141047 Local Public Agency Real Estate

Acquisition

NHI 141048 Outdoor Advertising Control : BonusStates

NHI 141049 Outdoor Advertising Control: Non-Bonus States

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Questions Please?

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