2019 CDBG Compliance Workshop Acquisition of Real Property Reed Collar CDBG Program Supervisor Community and Economic Development Division Work 334 3533265 reedcollaradecaalabamagov ID: 774236
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2019 CDBG Compliance Workshop Acquisition of Real Property Reed Collar CDBG Program Supervisor Community and Economic Development Division Work (334) 353-3265 reed.collar@adeca.alabama.gov
When Real Property is Acquiredfor the use of an Easement or Right of Way ADECA CDBG PROJECTSFederal Grant Funds - Entirely or Partially Grant, Local Match Funds as well as any Local Government Funds State & Federal Statutes & Regulations
Key StatutesUniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended Section 104(d) of the Housing and Community Development Act of 1974, as amended42 USC Sec. 3537c, Prohibition of Lump Sum PaymentsNEPA of 1969 National Environmental Policy Act
Key Regulations 49 CFR Part 24, Uniform Relocation and Real Property Acquisition for Federal and Federally-Assisted Programs24 CFR Part 42, Displacement, Relocation Assistance and Real Property Acquisition for HUD and HUD-Assisted Programs24 CFR 570.606, Displacement, Relocation, Acquisition and Replacement Housing (CDBG regulations) 23 CFR 710 Right-of-Way and Real Estate Regulations4
Key Regulations Con’t2 CFR - Title 2 CFR - Office of Management and Budget (OMB), Subtitle A - Office of Management and Budget Guidance for Grants and Agreements, Part 225. Formerly known as OMB Circular A-87 and addresses allowable costs incurred by State, local and Native American tribal governments. 23 CFR - Title 23 Code of Federal Regulations (CFR) is a codification of the general and permanent rules and regulations (revised annually) required in implementing and carrying out the provisions of Federal law relating to the National Highway Traffic Safety Administration and Federal Highway Administration, Department of Transportation.
Key Regulations Con’t 49 CFR - Title 49 - Transportation, Code of Federal Regulations, Parts 1-99, contains current regulations issued under Subtitle A - Office of the Secretary of Transportation. The LP A Program will deal mostly with Parts 18, 19, 24, 26-29, 32, 37 and 38 of 49 CFR. Acquisition - The process of obtaining the Right-of-Way necessary to construct or support a project49 CFR 18.37(a) requires the state to administer sub-grants to local governments in accordance with the state's own procedures. Therefore, local government sub-grantees, i.e., LPAs are to follow the procurement procedures specified by the state, unless the state approves the sub-grantee's use of its own procurement procedures.
State of Alabama Code of 1901 & 197523-1-45 Code of AL. – ALDOT Authority to Acquire 18-1A-21 thru 30 Code of AL. – Negotiations34-27A-2 Code of AL. - Appraisal
HUD Handbook Handbook 1378.0, Tenant Assistance, Relocation and Real Property Acquisition HandbookProvides HUD policy and guidance on the implementation of acquisition, relocation and related requirements for HUD funded programs and projects
HUD Brochures When a Public Agency Acquires Your Property (HUD 1041-CPD)Relocation Assistance to Persons Displaced from Their Homes (Section 104(d)) (HUD-1365-CPD)Relocation Assistance to Tenants Displaced from Their Homes (HUD-1042-CPD)Relocation Assistance to Displaced Businesses, Nonprofit Organizations and Farms (HUD-1043-CPD)Relocation Assistance to Displaced Homeowner Occupants (HUD-1044-CPD)
Before you take on a CDBG project where the acquisition of real property may occurConsider the Following !!!
STOP
Pick up the Phone and Call me Alabama!!!
Project Redesign Temporary EasementPermanent EasementsDonate PropertyTime
Real Property Acquisition in Alabamahttps://www.dot.state.al.us/InfoServices.html Resource:LPA Manual for Federal-Aid Projects in AlabamaA Guide for Land Acquisition of Easements & Right of Way when Federal Funds are involved
Planning • Plan for budget implications• Paying for Relocation– Impact on feasibility– Public or private funds• Coordinate actions• New URA requirements emphasize planning, especially for business moves[§24.205] • Consult with property owners and residents
Planning (cont.) Determining resource needs - Workload identificationPolicies & strategies to minimize displacement and hardshipDetermine supply/cost of comparable Determine costsKeep All Parties Informed! - Public meetings - Notice requirements General Information NoticeNotice to OwnerRelocation Notices
Basic Voluntary Acquisition Requirements Voluntary Acquisition (with power of Eminent Domain) - No particular site is needed - Not part of intended, planned or designated project area - Owner notified in writing of market value - Owner notified in writing that property will not be acquired through condemnationVoluntary Acquisition (without Power of Eminent Domain) - Owner notified in writing of market value - Prior notification that amicable settlement necessary Owner-occupants NOT eligible for relocation assistanceTenant-occupants ARE eligible for relocation assistance
Involuntary Acquisition Acquisitions under threat or use of eminent domainAcquisitions which do not satisfy URA voluntary acquisition criteria– More stringent requirements in these instancesOwner-occupants ARE eligible for relocation assistance Tenant-occupants ARE eligible for relocation assistance
Appraisals Appraisals must meet requirements of 49 CFR 24.103Agencies must develop an appraisal scope of work- (See HUD Handbook 1378 – Appendix 19) Identify and resolve personal property/realty issues for businesses- (Coordination of appraisers and relocation staff) Uniform Standards of Professional Appraisal Practice (USPAP)- URA appraisal requirements are consistent with USPAP
Three Step Process Determining Compensation Appraiser estimates property’s Fair Market ValueReview appraiser evaluates appraisal; used as basis for Estimate of Just CompensationAgency establishes the Estimate of Just Compensation to be offered (may not be less than the approved fair market value)
Written Purchase Offer Just Compensation AmountSummary StatementAmount of offerDescription and location The interest acquiring (fee simple, easement)List of buildings, improvements, and propertyUsually included in appraisal
Successful Negotiations Cannot begin until written purchase offer is madeOwner provided reasonable opportunity to consider offer Given opportunity to request modification if item not addressed in appraisal Administrative settlements must be supportable and well documentedAdministrative settlement can be approved if:- Reasonable - Prudent; and- In the public interest
Coordination of Offer Just CompensationReasonable expenses related to title transfer– Recording fees, transfer taxes, mortgage penalty costs, etc.Relocation Payments
Relocation of a Business There are Federal regulations governing the relocation of a business, nonprofit organization, or farm operationTiming is Everything!Specific Procedures for Delivering Notices Eligible moving costs for displaced businesses, nonprofit organizations or farms (49 CFR 24.301(g))Some costs for moving and reestablishing a business, nonprofit organization or farm are not eligible (49 CFR 24.301(h))
Relocation of a Business (cont.) Related expenses are available to a business that has to relocate (49 CFR 24.303)Reestablishment expenses are available to a “small business”, nonprofit organization or farm (49 CFR 24.304)Fixed Payment Option available for a business or farm (49 CFR 24.305) Fixed Payment Option available for a nonprofit organization (49 CFR 24.305(d))
Relocation of a Business (cont.) Determining the Average Annual Net Earnings of a Business or Farm (49 CFR 24.305(e))Temporary Relocation of a Business
An y Questions ? Reed Collar CDBG Program Supervisor Community and Economic Development Division Work -334-353-3265Acquisition ofReal Property