F e de r al Re quir e me nts for Right of Way Training - PowerPoint PPT Presentation

F e de r al Re quir e me nts for Right of Way

Training Objectives  Identify the constitutional basis for paying just compensation to property owners.  Define the major elements of the Uniform Relocation Act.  Define the major steps in the right of way process for federally funded projects.

T he F ifth Ame ndme nt, U.S. Co nstitutio n “…no r sha ll priva te pro pe rty b e ta ke n fo r pub lic use , witho ut just c o mpe nsa tio n.” Que stio n: Wha t is just c o mpe nsatio n ?

Uniform Relocation Act  1970: Pub lic L a w 91-646—”Unifo rm Re lo c a tio n Assista nc e a nd Re a l Pro pe rty Ac q uisitio n Po lic ie s Ac t”  1987: Pub lic L a w 100-17—”Surfa c e T ra nspo rta tio n a nd Unifo rm Re lo c a tio n Ac t Ame ndme nts”

Purpo se o f the URA  F o r a c q uisitio n: T re a t o wne rs fa irly a nd c o nsiste ntly, e nc o ura g e a c q uisitio n b y a g re e me nt, minimize litig a tio n, a nd pro mo te c o nfide nc e .  F o r displa c e d pe rso ns: T re a t individua ls fa irly, e q uita b ly, c o nsiste ntly, a nd do no t c a use dispro po rtio na te injury.  F o r a g e nc ie s: Ac t e ffic ie ntly a nd in a c o st-e ffe c tive ma nne r.

Uniform Relocation Act— Title I Purpose: “To provide for uniform and equitable treatment of persons displaced … and to establish uniform and equitable land acquisition policies….”  Person/displaced person  Comparable replacement dwelling  Displacing agency  Appraisal

Uniform Relocation Act— Title II Purpose: “To provide for uniform and equitable treatment of persons displaced from their homes, businesses, or farms by Federal and federally assisted programs….”  Relocation assistance  Moving expenses  Replacement housing payments

Uniform Relocation Act—Title III Purpose: “In order to encourage and expedite the acquisition of real property by agreements with owners, to avoid litigation and relieve congestion in the courts, to assure consistent treatment for owners…(the) agency shall make every reasonable effort to acquire expeditiously real property by negotiation.”  Appraisal  Acquisition  Condemnation

Just Compensation “I n no e ve nt sha ll suc h a mo unt b e le ss tha n the a g e nc y’ s appro ve d appraisal o f the fair marke t value o f suc h pro pe rty.” [T itle I I I , Se c . 301(3)]

Uniform Act Implementing Regulations  Co de o f F e de ra l Re g ula tio ns--49 CF R Pa rt 24  Purpo se :  Pro mulg a te rule s to imple me nt the URA  E nsure pro pe rty o wne rs a re tre a te d fa irly  E nsure displa c e e s a re tre a te d fa irly  E nsure a g e nc ie s imple me nt re g s in a n e ffic ie nt a nd c o st e ffe c tive ma nne r

The R/ W Process Under the Uniform Act * Plans and Title * Appraisal * Appraisal Review * Acquisition * Condemnation * Relocation

Plans and Title R/W plans and title work must be sufficient to ensure properties to be acquired, in whole or in part, are adequately identified, and show:  Property lines  Topography  R/W lines  Widths to be acquired  Centerline/stationing  Limit of slope  Easements, etc.

Plans and Title continued Title work may include: * Ordering title reports * Obtaining title insurance * Writing legal descriptions * Examining the condition of title NOTE: R/W plans and title work are based on State laws, regulations, and practices

Que stion: What is An Appr aisal?

An appraisal is:  A writte n sta te me nt inde pe nde ntly a nd impa rtia lly pre pa re d …  b y a q ua lifie d a ppra ise r …  se tting fo rth a n opinion o f de fine d va lue …  o f a n a de q ua te ly de sc rib e d pro pe rty …  a s o f a spe c ific da te …  suppo rte d b y the pre se nta tio n a nd a na lysis o f re le va nt ma rke t info rma tio n.

Wha t is “fa ir ma rke t va lue ”?

Fair market value is: T he mo st pro b a b le pric e in te rms o f mo ne y whic h a pro pe rty sho uld b ring in a c o mpe titive a nd o pe n ma rke t unde r a ll c o nditio ns re q uisite to a sa le , the b uye r a nd se lle r e a c h a c ting prude ntly, kno wle dg e a b ly a nd a ssuming the pric e is no t a ffe c te d b y undue stimulus. [Boyc e , “Re al E state Appr aisal T e r minology” 1984]

The Appraisal Process * Define the Appraisal Problem * Collect Data * Determine Highest & Best Use * Consider the 3 Approaches to Value:  Cost,  Income,  Market * Conclude and Report Value

What is an “appr ove d” appr aisal of fair mar ke t value ?

Appraisal Review Appraisals must be reviewed for:  Compliance  Value NOTE: The reviewer may be delegated the responsibility for establishing just compensation

Wa ive r o f Appra isa l Appra isa l ma y b e wa ive d if:  L o w va lue  Unc o mplic a te d Re g ula tio ns inc lude two thre sho lds:  $10,000  $25,000

Acquisition/ Negotiations T itle I I I – Unifo rm Re lo c a tio n Ac t: * Writte n o ffe r b a se d o n just c o mpe nsa tio n * Ade q ua te time to re vie w & c o nside r o ffe r * I f o ffe r no t a c c e pte d, a g e nc y ma y ma ke a n a dministra tive se ttle me nt--the URA e mpha size s a mic a b le ne g o tia tio ns

Ade q ua te I nte re st T he Unifo rm Ac t 23 CF R 1.23(a )  T  “T he Ag e nc y “…sha ll he Sta te sha ll ma ke e ve ry a c q uire rig hts-o f-wa y re a so na b le e ffo rt to o f suc h na ture a nd a c q uire e xpe ditio usly e xte nt a s a re re a l pro pe rty b y a de q ua te fo r the ne g o tia tio n.” c o nstruc tio n, o pe ra tio n a nd ma inte na nc e o f a pro je c t.”

T he Bundle o f Rig hts  T he to ta l ra ng e o f o wne rship inte re sts in re a l pro pe rty is c a lle d the “b undle o f rig hts”. T he b undle o f rig hts c o nta ins a ll the inte re sts in re a l pro pe rty, inc luding the rig ht to use it, se ll it, le a se it, e nte r it, divide it, g ive it a wa y.  E a c h “stic k” in the b undle c a n b e se pa ra te d fro m the b undle a nd tra de d in the ma rke t.

Ac q uiring “Stic ks” fro m the Bundle  Yo u c a n a c q uire the e ntire  Yo u c a n a c q uire so me o f b undle o f stic ks, g iving yo u the stic ks in the b undle . a ll o f the rig hts o f Yo u c a n a c q uire a o wne rship o f the re a l po rtio n o f the pro pe rty; pro pe rty. yo u c a n a c q uire a n e a se me nt, whic h ma y  Whe n yo u o wn the b e sho rt o r lo ng -te rm; “b undle o f stic ks”, yo u c a n yo u c a n le a se it; e tc . do a nything the la w a llo ws  Whe n yo u a c q uire ANY yo u to do with tha t pro pe rty—se ll, le a se , sub - o f the se rig hts fro m the divide , g ra nt e a se me nts, pro pe rty o wne r to use fo r e tc . a pub lic purpo se , wha t a re yo u sub je c t to ?

F o r the Owne r’ s Be ne fit Q: Wha t if the wo rk yo u a re do ing is “fo r the o wne r’ s b e ne fit”? Do yo u ha ve to o ffe r just c o mpe nsa tio n? A: T he pro visio ns o f the Unifo rm Ac t imple me nting re g ula tio ns “…do no t a pply to te mpo ra ry e a se me nts o r pe rmits ne e de d so le ly to pe rfo rm wo rk inte nde d e xc lusive ly fo r the b e ne fit o f the pro pe rty o wne r, whic h wo rk ma y no t b e do ne if a g re e me nt c a nno t b e re a c he d.” >>>>>Oka y, wha t’ s the c a tc h?

F o r the Owne r’ s Be ne fit c o ntinue d T he pro visio ns o f the Unifo rm Ac t imple me nting re g ula tio ns “…do no t a pply to te mpo ra ry e a se me nts o r pe rmits ne e de d sole ly to pe rfo rm wo rk inte nde d e xc lusive ly fo r the b e ne fit o f the pro pe rty o wne r, whic h work ma y not be done if a g re e me nt c a nnot be re a c he d .”

Acquisition by Condemnation * If no settlement is reached, condemnation is filed * Process of condemnation in accordance with State law NOTE: Agency may consider mediation, binding arbitration, or other alternative dispute resolution.

Relocation Assistance Displaced Person: “Any person who moves from real property or moves personal property from real property.” May be:  Residential owner  Residential tenant  Business owner  Business tenant  Farm  Nonprofit organization  Personal property

The Relocation Process * Re lo c a tio n pla nning during NE PA * I nte rvie w, c o lle c t info rma tio n * Mo re pla nning * F ind c o mpa ra b le re pla c e me nt ho using * Pro vide a dviso ry se rvic e s * Pro vide no tic e s: E lig ib ility, 90-da y * Pro vide mo ving e xpe nse s * Pro vide re pla c e me nt ho using pa yme nts * Pro vide la st re so rt ho using

Relocation Assistance RHP fo r Owne rs - Sa mple Ca lc ula tio n * Pric e o f Co mpa ra b le Re pla c e me nt Dwe lling $230,000 * Ac q uisitio n Pric e o f Sub je c t Pro pe rty $220,000 * Ma ximum purc ha se supple me nt $10,000 RHP inc lude s c lo sing c o sts a nd mo rtg a g e inte re st diffe re ntia l