Introduction to the
Uniform Act and the
Right of Way Process
November 20, 2014
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
Eminent Domain
The power of any sovereign government to
take private property without the consent
of the owner.
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…”
Uniform Act
Uniform Relocation Assistance and Real
Property Acquisition Policies Act of 1970,
as amended (Public Law 91-646)
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
Major Components of the
Uniform Act
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
ROW Impacts
Temporary
Construction
Easement
ROW Impacts (con.)
Temporary
Construction
Easement
2-6
2-6
ROW Impacts (con.)
Temporary
Construction
Easement
2-11
2-7
Project Development Process
Start
Planning
• Corridor Selection
• NEPA Process
Project Design
• ROW Cost Estimates
• ROW Plans
Real Estate
•
•
•
•
Preliminary ROW Activities
Appraisal
Acquisition/Relocation
Property Management
Construction
• Complete ROW
certification exceptions
• Monitor negotiated
construction features
ROW Certification
End
Key Elements of the
Valuation Process
Appraisal
Fair Market Value
Review Appraisal
Just Compensation
P. L. 91-646, as amended
Title III, Section 301
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)
How Does an Appraiser
Arrive at a Value
Three generally accepted approaches to value
• Sales comparison approach
• Income approach
• Cost approach
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 24.103(d)(2)
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 24.103(a)(1)
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 24.103…”
49 CFR 24.104(a)
• Critically examines appraisal work prepared by
others
• Brings consistency to the project
Just Compensation Equals or
Exceeds Fair Market Value
Actual JC
Appraised value and just
compensation are usually
equal.
Land Acquisition Process Flowchart
START
No
Property
acquisition
displaces
residents?
Present written offer
to Property Owner
(in person or by mail)
Give owner
opportunity to
consider offer
Yes
If possible, make
combined relocation
and acquisition offers
together
No
Continued
negotiations
Successful?
Condemnation
No
Yes
Follow-up with
phone call(s)
or personal
contacts
Property
owner
accepts
offer?
Yes
Will
acquisition
displace
occupants?
Owner signs
conveyance
instrument
Negotiations complete –
consider property
management activities
END
No
Agency
prepares ROW
Certification
Complete
Relocation
Process
Yes
Basic Acquisition Policies
• Expeditious acquisition
• Notice to owner
• Just compensation offer
established
• Prompt written offer to
purchase with summary
statement
49 CFR 24.102
49 CFR, Appendix A, 24.102
Basic Acquisition Policies
(con.)
• Basic negotiation procedures
• No coercive action
• 90-Day Notice
• Payment before possession
• Conflict of interest
• Documentation of
negotiations
49 CFR 24.102
49 CFR, Appendix A, 24.102
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 24.102(i)
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
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 24.106
Eminent Domain and the
Condemnation Process
Eminent Domain
Condemnation
• The legal doctrine
that government has
the power to acquire
private property for
public purposes
• Legal process to
invoke eminent
domain
• Governments invoke
eminent domain
proceedings as a last
resort
• Conducted in a judicial
venue
State laws vary regarding the authority
and implementation of eminent domain
Case Study 4.2
Liberty County Project
Negotiations
4-27
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 24.205(a)
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 24.205(c)
Relocation Assistance Flowchart
Plan Project
Interview
Persons to
be Displaced
Process
Claims and
Make
Payments
Project
Approved
Work with
Persons to
be Displaced
Follow-up
Inform
Persons to
be Displaced
Person
Chooses
Replacement
Property and
Moves
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
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 24.203(a)
Notice of Relocation Eligibility
• Format: letter that is handdelivered 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 24.203(b)
Ninety-Day Notice
• Format: letter that is handdelivered 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 24.203(c)
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)
Comparable Replacement Housing
• Displacing Agency must offer at least one
comparable replacement dwelling
49 CFR 24.204(a)
• Comparable replacement dwelling forms
the basis of the computation of the
replacement housing payment (RHP)
Relocation Payments and Services
Residential:
Advisory Services
Nonresidential:
Advisory Services
Fixed or Actual
Moving Costs
Fixed or Actual
Moving Costs
Replacement Housing
Payments
Business
Reestablishment
Expenses
Related
Nonresidential
Expenses
Note: Persons not lawfully present in the US are not eligible
for relocation payments or advisory services. 49 CFR 24.208
Relocation Case Study
industrial
plant
Vacant pasture
vacant
SFR
commercial
commercial
building
convenience
store
P/L
P/L
SFR
•
•
•
Pcl 102
Pcl 103
apartment
building
Parking
Lot
ROW line
Pcl 101
ROW line
P/L
Pcl 104
•
•
•
•
Pcl 105
Pcl 106
Pcl 107
•
•
•
Pcl 108
SFR
Pcl 109
•
•
•
Pcl 110
Property Management Activities
Flowchart
Manage
Property
Acquire Property
Construct
Facility
(Acquisition)
Identify
Short-term Uses
Rent/Lease
Sell Improvements
Manage Property
Long-Term
(Post-Construction)
Sell excess/surplus
property
Tasks and Timing
Pre-Acquisition
• Assemble property descriptions
• Prepare inventory of properties to be
acquired
• Identify NEPA requirements
• Identify potential owner retention items
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
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 635.309
ROW Certification Statement
The Agency certifies:
• All displacees are
appropriately relocated
• Compliance with all
State laws, the Uniform
Act and implementing
regulations
23 CFR 635.309
(con.)
Other Things ORC Does
•
•
•
•
•
Provide project planning
Provide oversight
Solve specific problems
Develop training
Assist with grants