Right of Way Success in Right of Way Under the Uniform Act Alaska - - PDF document

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NEGOTIATION WORKSHOP: Success in Right of Way

Right of Way Under the Uniform Act

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WORKSHOP GOAL The purpose of this WORKSHOP is to provide knowledge and skills for effective right of way negotiations and relocations in Federal funded projects.

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Marshall.Wainright@dot.gov

Michele Palicka

• Realty Specialist
• Michele.Palicka@dot.gov

Chad Crawford

• Realty Specialist
• Chad.A.Crawford@dot.gov

404‐290‐0089

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404‐274‐5235 404‐895‐6158

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Introductions

My name is… I work in ….ROW Section I have been in the position for ……………… What I would like to learn before I leave ……..

Logistics/Schedule

• Start and End time for Workshop
• Lunch / Breaks
• Restrooms
• Emergency Procedures
• Other details

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Project Development and Program Delivery

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Key Elements:

• Planning
• Environment
• Design
• Right of Way
• Construction
• Maintenance and Operation

PROJECT DELIVERY PROJECT DELIVERY

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• Project Needs
• Scope Developed
• STIP / TIP
• LTRP

Planning

When Can You Begin to Purchase ROW for a Federal‐Aid ROW Project?

The project:

• Must be identified in the Statewide

Transportation Improvement Plan (STIP)

• Must have completed environmental

document in compliance with NEPA

• Must have Federal funding authorization‐ if

using federal funds in the phase

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ROW Activity – Planning Phase

• Surveying and initial property descriptions
• General right-of-way cost estimates
• Analysis of impacts and solutions for

Relocation issues, if any, for landowners or tenants.

• Coordination with utilities - planning, right-of-

way and or easement acquisition, and relocation

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Preliminary Engineering

• Preliminary Engineering Phase
• Obtain PE Authorization.
• Solicitation and Hiring of Professional
• Engineering Firm including Advertising
• Preparation of Conceptual and Final Design
• Environmental Analysis
• Preparation of Bidding Document

(Plans, Specifications and Estimate (PS&E))

Preliminary Engineering

Repayment of PE Engineering Costs –

• 10th Fiscal year
• Time Extensions

Preliminary ROW work paid in PE

Design

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• Details necessary to construct

– Attend Concept Meeting

• Plans

– Preliminary and Final Plans – Contract Specifications – Estimated Costs Aid in getting good bids and assist in little to no problems in construction

Design

ROW Activity – P.E. / Design Phase

• Survey and complete property descriptions
• Finalize right-of-way requirements
• Finalize right-of-way cost estimates
• Construction features
• Context sensitive design
• Perform advance acquisition of hardship cases and

protective purchases of properties (subject to statute and funding constraints) that could potentially be developed and compromise the project location

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Environment

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• Title VI of Civil Rights Act of 1964
• Uniform Relocation Assistance and

Real Property Acquisition Policies Act

• f 1970
• Americans with Disabilities Act
• Executive Order 12898 (Environmental

Justice)

• Section 4(f)
• Clean Air Act
• Clean Water Act 404
• Executive Order 11988 (Floodplain

Management)

• Executive Order 11990 (Protection of

Wetlands)

• Endangered Species Act
• Farmland Protection Policy Act
• Noise 23 CFR 772
• Wetlands 23 CFR 777
• National Historic Preservation Act
• Economic, Social and Environmental

Effects

• Public Hearing Requirements 23 USC 128
• Archaeological and Historic Preservation

Act

• Archaeological Resources Protection Act

The “NEPA Umbrella”

Environmental Considerations

Relocations Historic Sites Wetlands Noise Air Quality Wildlife Farmland Archeological Sites Hazardous Waste Water Quality

• Social Impacts
• Relocations
• Displacements

Human Environment

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• Environmental Justice
• Section 106 – History
• 4(f)
• Farmlands

Human Environment Natural Environment

• Changes in

–Neighborhoods –Community –Travel Patterns –Schools –Churches –Public facilities

Social Impacts

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• Impacts on..

–Minority groups –Low income populations –Elderly –Handicapped –Businesses

Social Impacts Right of Way

Right of Way

Construction

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Construction

• Commitments made

during NEPA and negotiations on the plans

• Changes in Design
• Issues out in the field
• Need to follow Uniform

Act

• Update NEPA

ROW Activity – Construction Phase

• Address any construction related issues with

landowners adjoining the project

• Manage any excess land owned, including remnants

acquired, that is not being used temporarily by the contractor

• Ensure that any construction features that were agreed

to in any right-of-way settlement or environmental commitment are accomplished

Example: Complete landscaping and beautification agreed to with landowner satisfactorily

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Environment, PE and Design Review

• What are some of the areas that ROW staff can

get involved in the project development process?

• What are some of the key elements of the

Environmental Process that intersect with ROW?

• Can any ROW costs or activities be done/paid for

in/with the PE Phase?

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Impediments to Project Delivery

• Compressed project schedules
• Limited project funds
• Complicated regulatory environment
• Extended supplemental studies, EIS
• Lack of coordination within or by project team
• Design behind schedule or late changes
• Exclusion of ROW coordination and or activities early

in project planning and design phases

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Right of Way

CREATING SUCCESSFUL NEGOTIATIONS

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NEGOTIATIONS

What does this word mean to you?

A means of resolving differences to reach an agreement.

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Conditions for Negotiations

• Issue is Negotiable
• Willing and able to compromise
• Some level of trust

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WHAT IS YOUR ROLE ?

To be a problem solver:

• Be a team player
• Represent the agency

as well as the property

• wner

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ATTITUDE

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ATTITUDE of a SUCCESSFUL AGENT

• No one attitude(s)

fits all negotiations

• Self trust
• Creative with

conformity

• Like People

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ATTITUDE of a SUCCESSFUL AGENT

(CONT.)

• Self motivated
• Adaptability to change
• Ethical Sensitivity
• Good Record Keeper

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EXERCISE

Sitting Positions & Body Language

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DOCTOR’S RECEPTION ROOM

• Think of a room full of strangers…….
• Choose where you think the first person in the room will sit
• Second person walks in …where would they sit
• Third person walks in …where would they sit
• Fourth – Ninth person ….label where they would sit

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SKILLS

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SKILLS NEEDED TO NEGOTIATE

• Communication
• Credibility
• Empathy
• Listening

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COMMUNICATION

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Exercise:

What do you see?

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• What did you see?
• Describe it to your partner
• Did everyone see the same

thing?

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What do "I” mean when I say the word “communication? “

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Communic Communication tion

Message

Encoding/ Decoding Decoding / Encoding

Words, Gestures, Facial Expressions

.

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Communication

• Thought: First, information exists in the mind of the sender. This can

be a concept, idea, information, or feelings. How do I say this?

• Encoding: Next, a message is sent to a receiver in words or other
• symbols. You choose the best way you think it will convey properly.
• Decoding: Lastly, the receiver translates the words or symbols into a

concept or information that he or she can understand

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MESSA MESSAGE GE

• Shared Meaning / Understanding
• Clear Goals / Purpose
• Verbal and Nonverbal

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CREDIBILITY

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CREDIBILITY

The quality of being convincing and believable; trustworthy resulting from expertise and experience.

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Ways to Gain Credibility

 Know what you are talking about  Work hard  Integrity  Be prepared  Stay calm  Keep great records

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EMPATHY

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Empathy ….not Sympathy

Understanding why and relating to others feelings because you have experienced it yourself or can put yourself in their shoes. not ……. Acknowledging another person's emotional hardships and providing comfort and assurance.

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Empathy Steps

• Listen attentively to what

the other person is saying

• Let your body language

convey empathy

• Reflect upon what the
• ther person just said

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Empathy Steps

Validate the other's emotions; and let them know you heard them and understand what they just said Offer personal support if appropriate

I know what you are going through, dear. I buried my husband last year - but they found him in time. Alaska 2018

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Empathy Steps

• Engage the other

person in a partnership

• Show respect

whenever possible

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LISTENING

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Listening

• Passive Negotiation

Listening

• Acknowledgement

Listening

• Active Negotiation

Listening

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Listening Skills

 Be motivated to listen  If you must speak, ask questions  Be alert to nonverbal cues

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Listening Skills

 Let the other party tell her/his story first  Do not interrupt when the

• ther party is speaking

 Fight off distractions

Oh, I’m sorry, Did the middle of my sentence interrupt the beginning of yours?

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Listening Skills

 Write everything down  Listen with a goal in mind  Give the other party your undivided attention

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Listening Skills

 React to the message, not the person.  Don’t get angry  Remember, it is impossible to listen and speak at the same time

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EXERCISE Listening

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Review

Can you name the four skills you need to Negotiate?

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• 1. Communication
• 2. Credibility
• 3. Empathy
• 4. Listening

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Styles of Negotiations

• Attitudinal
• Bargaining
• Integrative
• Intra ‐Agency

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Attitudinal

• Important in all negotiations
• Create relationship pattern

( open / restrictive)

• Need communication

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Bargaining

• Win‐ Lose
• Advocate for one side
• My Interests
• Restricted Communication

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Integrative

• Win – Win
• Problem Solving
• Mutual Interests
• Collaborate

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Intra‐agency

• With in your own agency
• Should not be bargaining
• Not time consuming
• Can be the hardest

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CONFLICT STYLES

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Competing/Directing

• Strategies– Discourage disagreement, persuade, be firm, set limits
• Power -

From one’s role /position

• Benefits –

Speed, stability, preservation of one’s values

• Costs –

Destruction of relationships, loss of cooperation, anger depression

Focus on Agenda - High Focus on Relationship - Low

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Collaborating

• Strategies– Assert oneself while inviting other views, welcome

difference, seek additional information

• Power -

From trust, skill, ability, creativity

• Benefits –

Mutual trust, high potential for creativity and growth

• Costs –

Fatigue and time loss, analysis paralysis

• Focus on Agenda‐ High
• Focus on Relationship – High

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Compromising

*Strategies– Urge moderation, bargain, split the difference

• Power -

From moderation and pragmatism

• Benefits –

Relatively fast, enables show to go on, provides a way out of a stalemate

• Costs –

Mediocrity, blandness, likely to patch symptoms and not solve problems Focus on Agenda‐ Medium Focus on Relationship ‐ Medium

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Avoiding

• Strategies– Withdraw, delay/ avoid response, divert attention
• Power -

From calmness, silence, non-cooperative

• Benefits –

Freedom from entanglement in trivial issues or insignificant relationships, stability, preservation

• f status quo
• Costs –

Explosions of pent up anger, slow death of relationship, loss of accountability, sapped energy

Focus on Agenda- Low Focus on Relationship - Low

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Accommodating

• Strategies– Agree, support, give in, convince it is no big deal
• Power -

From relationships and approval of others

• Benefits –

Wins approval and appreciation of others, creates pleasant atmosphere

• Costs –

Frustration of ones who want to problem solve, resentment, over dependence on others

Focus on Agenda – Low Focus on Relationship – High

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Review

• What style of negotiations do you do ?
• What conflict style is the most effective for

you?

• At work
• At home
• Buying a car

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Uniform Act Fundamentals

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• United States Constitution
• 42 USC, Chapter 61 ( The Law)
• 49 CFR Part 24 – Uniform Act
• 23 CFR Part 710 (Right of Way and Real

Estate)

Why do we do what we do?

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Eminent Domain

The power of any sovereign government to take private property without the consent of the

• wner.

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• 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…”

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Uniform Act

Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (Public Law 91‐646)

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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

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• Public Law 3.JPG

Major Components of the Uniform Act

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When Must an Agency Follow The Uniform Act ?

 When any phase of a project is federally‐funded, and:  Real property (any interest) is acquired, and/or  Property owners and/or tenants are displaced as a direct result of land acquisition, demolition or property redevelopment

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• 49 CFR Part 24 – Department of

Transportation ( all federal agencies)

• 23 CFR Part 710 – Highways

( FHWA dollars)

Federal Regulations

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Alaska State Constitution

Article I ‐Declaration of Rights § 18. Eminent Domain

Private property shall not be taken or damaged for public use without just compensation

Alaska Code 09.55.240

Uses for Which Authorized : Rights of Way

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23 CFR 710.201

(c) Right‐of‐way (ROW) operations

• manual. Each STD which receives

funding from the highway trust fund shall maintain a manual describing its right of way organization, policies, and procedures.

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102

• What are the purposes of the Uniform Act?
• Identify the regulations that implement the

Uniform Act

• Explain the importance of Uniform Act

compliance

REVIEW

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ACQUISITION

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Acquisition Before the Uniform Act

• Why would a property owner object to a

verbal offer?

• If an agency did not use an appraisal, what

would be the basis of the offer?

• If an agency did not offer relocation benefits,

what might happen to the people living in the home?

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Acquisition Before the Uniform Act

• How would you feel if the State

condemned your property without negotiating first?

• If you were the property owner, how

would you want to be treated?

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Real Property

• Interests, benefits and

rights inherent in

• wnership of physical real

estate

• Includes:

− Fee simple − Permanent easement − Temporary easement

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Real Property (cont.)

What rights or interests make up the “bundle of rights” when a person owns fee simple title to property?

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• Possession
• Control
• Enjoyment
• Exclusion
• Disposition

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W hat W ould You Do?

• Dawn Parke is the fee simple owner of a

commercial property.

• Heather Morris leases the entire property

to operate her Pizza Restaurant.

• The Agency is acquiring a portion of the

property.

• What interest(s) does the Agency need to

acquire?

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Land Acquisition Process Flowchart

No

2‐ Give owner

• pportunity to

consider offer 3‐ Negotiations ensue ‐ Follow‐up with phone call(s) or personal contacts 1‐ Present written

• ffer to property
• wner

(in person or by mail)

Yes

6‐Condemnation Agency acquires property through litigation 8 ‐ Negotiations complete – consider property management activities

No Yes

7‐ Complete relocation activities

Yes Yes No No

Property acquisition displaces residents? If possible, make combined relocation and acquisition offers together Property

• wner

accepts

• ffer?

5‐ Continued negotiations Agency prepares ROW Certification Will acquisition displace

• ccupants?

Successful? START END 4‐ Closing – Owner signs conveyance instrument & receives payment Alaska 2018

Basic Acquisition Policies

49 CFR 24.102

a) Expeditious acquisition b)Notice to Owner c) Appraisal/ waiver / invitation to owner

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Basic Acquisition Policies (cont.)

d) Establishment and

• ffer of Just

Compensation

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Fair Market Value vs. Just Compensation

The purpose of an appraisal is to estimate fair market value (FMV), which is believed to be just compensation. However JC can exceed FMV for a number of reasons.

1 2 3 Appraisal Yardstick

Most often appraised value and JC are equal. JC Can Exceed FMV for Various Reasons

• Property difficult to value accurately.
• Recent court awards are higher.
• Cost of litigation.
• Risk of trial.

Fair Market Value (FMV) Just Compensation (JC)

Administration or Legal Settlement

Just Compensation (JC) – Actual

115

Basic Acquisition Policies (cont.)

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d) Summary Statement e) Basic Acquisition procedures

Basic Acquisition Policies (cont.)

g) Updating offer of just compensation h)Coercive action i) Administrative Settlements

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Basic Acquisition Policies (cont.)

j) Payment before possession k) Uneconomic remnant l) Inverse condemnation

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Basic Acquisition Policies (cont.)

• m) Fair rental
• n) Conflict of interest

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Grand Street Exercise

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Negotiation Preparation

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Purpose of Negotiations

• Acquire property and property interests
• Expeditiously By Negotiation
• Establish Rapport
• Inspire confidence
• Meet Agency Needs
• Meet the Needs of the Public

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Preparation

• How do you prepare?
• What documents do you look at/ review

before making an appointment to meet with the owner?

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Preparation

• Check ownership
• Be familiar with need / history of the

project

• Review the Appraisal / Plans

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Preparation (cont.)

• Confirm property description
• Funding available
• Visit the project site

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Key Elem ents of the Valuation Process

Appraisal Appraisal Review Establishment of amount agency believes to be just compensation

• P. L. 91-646, as amended

Title III, Section 301

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Basic Appraisal Concepts for the Acquisition Agent

• Sales verification

process

• Approaches to Value

– Sales comparison approach – Income approach – Cost approach

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Basic Appraisal Concepts for the Acquisition Agent

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• Larger parcel
• Highest and best use
• Consistent use

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Uneconomic Remnants

Property remnant with little or no value or utility to the owner

49 CFR 24.2(a)(27)

Agency must offer to acquire uneconomic remnants

49 CFR 24.102(k)

131

Remainder Acquisition

Buildable Lot

3) If the acquisition of a portion of a typical residential property causes the displacement of the

• wner from the dwelling and the remainder is a

buildable residential lot, the Agency may offer to purchase the entire property. If the owner refuses to sell the remainder to the Agency, the fair market value of the remainder may be added to the acquisition cost of the displacement dwelling for purposes of computing the replacement housing payment

49 CFR 24.403

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Exercise Prepare to Meet the Owners!

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FIRST MEETING WITH OWNER

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First meeting to make offer

• The appointment has been made, you arrive to make

the first offer, what happens now?

• Both the owner and you want to settle this without

condemnation, how do you facilitate that outcome?

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Offer Meeting

• Make the offer
• Let the owner talk
• Listen to the owners comments and questions (
• bjections / concerns)
• Take Notes – ask questions
• Do not argue
• Engage in problem solving

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Offer meeting (cont.) Working with the Owner

• Review the owner’s concerns / objections
• Separate out what you can answer immediately and others you

will need to follow up on

• Set appointment for next meeting / interaction
• Discuss monetary issues after addressing objections and

concerns

• Thank the owner for their time

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Techniques Reduce conflict

• Focus on the facts
• Investigate the owner’s objections
• State a firm position
• Explain the alternatives

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Time to meet the owner

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Set up the Meeting

Chris tries to set up a meeting with Karen Jones

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Meeting

Chris finally meets with Karen Jones

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Demand to Change the Project

Karen is not happy with a temporary construction easement

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More Money

Karen wants more money

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MANAGING THE RIGHT OF WAY PROCESS

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Right of Way Planning

• Federal Funding in Phase
• Staffing / In‐house
• Number of Parcels
• Relocation
• Complicated Acquisitions
• Timeframe

Schedule

• Critical Element
• Tracking Delivery
• Manage tasks Day to Day

Why do we need schedules?

• Think through a project
• Provide a Road map for success
• Manage Dollar Commitment
• Increases efficiency
• Prevent Problems
• Create Performance Measures

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How to use them?

• Use historical data
• Determine if behind or ahead of schedule
• Determine allocation of additional funds
• Mentoring for future managers

ROW Plans

• ROW Limits
• Utility Easements
• Structures / Monuments
• Signs / Fences
• Encroachments
• Septic Tanks, Sprinklers , Wells
• Driveways and Parking Lots
• Landscaping

Title Reports

• Accurate Ownership
• Verification of Easements
• Mineral Rights
• Utilities
• Ingress/Egress Rights
• Secretary of State
• Zoning

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Relocations

• Planning
• Notices
• Advisory Services
• Housing Payments
• Residential
• Housing of Last Resort
• Business

Acquisitions

• Appraisal
• Early Acquisitions
• Administrative Settlements
• Payment before Possession
• Uneconomic Remnants
• Donations
• Federal land transfer

Some key terms

• Real property interest:
• Any interest in land;
• a contractual right to acquire any interest in land;
• any other similar action to acquire or preserve rights‐of‐way

for a transportation facility.

• Donation: A property owner’s right ….
• after being fully informed by the agency of the right to

receive just compensation;

• the agency is responsible for preparing an appraisal, unless

released from such obligation by the property owner.

• Matching credit:
• Value of property contributed toward the State’s matching

share of project costs.

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Alternative Acquisition Techniques

Some other ways to acquire ROW:

• 1. Early Acquisition
• State funded, no match or reimbursement
• State funded, matching credits
• State funded, federal funds reimbursement
• Federal funding
• 2. Matching Credit for Contributions
• 3. Donations

Acquisition of Real Property Interests Prior to NEPA Clearance

EARLY ACQUISITION

State funded, no match or reimbursement

• The State may acquire real property interests any

time it has legal authority to do so, with limited conditions if no matching credit or reimbursement will be requested:

– Must comply with the Uniform Relocation Act – Must comply with Title VI of the Civil Rights Act – Cannot have an adverse environmental impact – Cannot limit the choice of reasonable alternatives

• Authorities: 23 CFR 771.113(d)(4) and 40 CEQ 1506.1

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State funded, matching credit

• If the State will seek to use the value of real

property interests acquired prior to NEPA clearance as a credit toward their matching share

• f project costs, the following additional

conditions apply:

• The real property interests acquired did not include lands

protected under Section 4(f), pursuant to 23 U.S.C. 138;

• The State determined and the FHWA concurs that the action

taken did not influence the environmental assessment of the project, including the decision on the need to construct the project, the consideration of alternatives, and the selection

• f the design or location.

State funded, federal reimbursement

• If the State will seek reimbursement from FHWA for State funds

spent on early acquisition, the following conditions apply:

– Must be acquired in compliance with the Uniform Act; – Must comply with title VI of the Civil Rights Act of 1964; – State must have a comprehensive & coordinated land use, environment, and transportation planning process; – The early acquisition must be certified by the Governor as consistent with the State’s planning process; – The property must be incorporated into the selected alternative; – Environmental compliance of project required prior to reimbursement; – FHWA concurs that the early acquisition did not influence the environmental assessment of the project.

Federally funded early acquisition

• In order to obtain and use federal funds in early acquisition, the

following conditions must be met:

– The acquisition must be programmed and included as a project in the State’s transportation improvement program; – The programmed project may consist of the acquisition of a specific parcel, a portion of a transportation corridor, or an entire corridor; – In order to obtain FHWA authorization to proceed, the State must certify in writing that it has authority to acquire the real property interest under State law and that the acquisition:

• Is for a transportation purpose;
• Will not cause any significant adverse environmental impact;
• Will not limit the choice of reasonable alternatives;
• Does not prevent making an impartial decision on the choice of alternatives;
• Will be acquired by negotiation without threat of condemnation;
• Will not result in a reduction of benefits or assistance;

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• (continuation of conditions which must be met):

– A NEPA review of the early acquisition project must be completed and approved by FHWA; – The early acquisition project will be treated as having independent utility; – The early acquisition project shall not limit consideration of alternatives for future transportation improvements; – Real property interests acquired for federally funded early acquisition projects may not be developed in anticipation of a project until all required environmental reviews for the project are completed; – If federal funds are used in the early acquisition and some of the acquired real property interests are not incorporated into the project, FHWA will offset the participating amount against funds apportioned to the State.

Summary of key points

• State may do early acquisition with its own funds; or,
• State may do early acquisition and use matching credits; or
• State may do early acquisition and seek federal reimbursement; or,
• State may program and FHWA may fund an early acquisition

project.

• In all cases, these conditions must be met:

– Property interests are acquired per all applicable laws & regulations; – Early acquisition cannot create significant environmental impacts; – Early acquisition cannot prejudice the selection of the alternatives;

• Additional conditions apply to match and reimbursement.

Alternative Funding Option for Early Acquisition

MATCHING CREDITS

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Matching credits for early acquisition

• Title 23 U.S.C. 323 allows state Departments
• f Transportation (DOTs) to credit the non‐

federal share of project costs with the fair market value (FMV) of lands donated or lawfully obtained, and/or donated materials, and services that are incorporated into a specific transportation project.

How it works

• The FMV of real property contributions may be

credited to the state matching share of the project

• cost. The value of land contributions for credit

purposes is not related to just compensation, in that damage to the remainder property is not considered. Costs relative to relocation and incidental costs related to acquiring these properties are not eligible for credit.

• Credits are not available for lands acquired with any

form of Federal financial assistance, or for lands already incorporated and used for transportation purposes, as set out in 23 CFR 710.507(c).

Example

A project with a 20% match requirement has incurred cash costs of $1 million and the value

• f donations and previously acquired property is

$100,000. The project has a total value of $1,100,000. To determine the Federal/state pro rata shares, apply the appropriate ratio to the total value of the project. To determine the actual cash outlay by the state DOT, calculate the state's pro rata share, then deduct the value

• f the real property contribution.

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Property Donations

Agency must inform owner of right to:

• have Agency appraise property
• receive offer of just compensation
• Agency must advise owner about effect of acquisition on

remainder

• Owner can donate all or a portion of real property

Alaska 2018

Property Management

• Disconnect Utilities
• Asbestos/ Contamination
• Demolition
• Rodent Control
• Exclusively for purposes of

transportation facility

Property Management Surplus

• Inventories
• Leasing
• Right of Way Use

Agreement (air rights)

• Disposals

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Certifications

• Prior to Advertising for

Construction

• ROW Availability Statement
• Utility
• Railroad
• Exceptions

Eminent Domain

• Attorney Early Involvement
• Necessity Clause
• Legal Settlements
• Court Deposit
• Quick Take States
• Court Awards

CLOSING THE LOOP

Alaska 2018

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Documentation

• Enter all interactions in a log or diary ( as soon as

possible)

• Maintain records of all paperwork, items discussed,

people present

• Written in legible, permanent form
• If it is not written down, it did not happen

Alaska 2018

Administrative Settlement

• Purchase price exceeds amount offered as just

compensation

• Agency official approves settlement as reasonable,

prudent and in the best interest.

• Federal participation requires written statement

Alaska 2018

Activity

Evaluate the Silver Road Project acquisition files.

Alaska 2018

2/1/2018 FHWA Resource Center Env ‐ Realty Team 59

Closings

• Obtain property encumbrances releases
• Prepare Settlement Statement
• Pay Just Compensation
• Pay incidental expenses

Alaska 2018

Review

• 1. What are key elements of a negotiator’s attitude

that make them successful ?

• 2. Name 4 skills needed to be an effective negotiator
• 3. What are some different negotiation styles ?

Alaska 2018

Review

• 4. Describe different conflict styles
• 5. List at least 5 Basic Acquisition Polices found in 49

CFR Part 24

• 6. List keys to proper preparation for a negotiation
• 7. Name 2 techniques to reduce conflict

Alaska 2018

2/1/2018 FHWA Resource Center Env ‐ Realty Team 60

Questions

Alaska 2018

Resource Center Realty Team

RELOCATION

Moving and Related Expenses – Business Reestablishment payments up to $25,000 ($10,000) – Fixed Payments in lieu of actual moving and reestablishment up to $40,000 ($20,000) Replacement Housing for Homeowners – 90 day homeowner ‐ $ 31,000 ($22,500) – Reduces 180 days to 90 Day occupancy requirement Replacement Housing for Tenants – 90 day tenants ‐ $7,200 ($5,250)

• SEC. 1521: Uniform Act Amendments

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49 CFR 24.401(d) Increased mortgage interest costs

NOT changed by MAP‐21

…….In addition, payments shall include other debt service costs, if not paid as incidental costs, and shall be based only on bona fide mortgages that were valid liens on the displacement dwelling for at least 180 days prior to the initiation of negotiations.

182

Important Aspects

Planning Notices Payments Advisory Services

• Who will be displaced?
• What replacements are available?
• Special problems.
• General information notice
• Notice of relocation eligibility
• 90 day notice
• Replacement housing
• Moving cost
• Reestablishment cost

Residential Non- Residential

• Explanation of

benefits and or services

• Personal interview
• Needs of those being

displaced

• Referral to available

property

• Referral to other

services

• Transportation

Relocation Planning & Advisory Services

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General Relocation Requirements

49 CFR 24.205(a)

• Relocation Planning (§24.205(a))
• Advisory Services (§24.205(c))
• Relocation Notices (§24.203)
• Availability of Comparable

Replacement Dwellings (§24.204)

• Claims for Relocation Payments

(§24.207)

RELOCATION PLANNING

Relocation Planning

• Begins early in the development of

the process

• Minimize adverse impacts to

displaced persons

• Expedite program or project

completion

49 CFR 24.205 (a)

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Relocation Planning Occurs at Various Project Times:

• Early Project Planning Stage
• Environmental Assessment
• Project Implementation

49 CFR 24.205(a) 49 CFR 24.205(a)

Conceptual Stage Study

• .. An estimate of the

number of households to be displaced

• ..An estimate of the number

business, farms and non profits

Components of a Relocation Plan

• Data
• Resources
• Interviews

2/1/2018 FHWA Resource Center Env ‐ Realty Team 64

Housing/Commercial Resources

MLS Internet Searches

Relocation Plan Template

• Executive Summary
• Description of project
• Environment of project
• Inventory of characteristics of families
• Inventory of replacement properties
• Residential analysis and correlation
• Business displacements
• Any Need for Last Resort Housing *
• Conclusion

Relocation Planning

• Estimate the:
• Number of households
• Availability of comparable replacement

dwellings

• Number of businesses
• Availability of replacement business sites
• Identify special relocation services needed
• Housing of Last Resort

49 CFR 24.205(a) & §24.404

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Case Studies

Relocation Plan

Highway 205 Relocation Plan

ADVISORY SERVICES

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Advisory Services

• Providing information, counseling, advice, and

encouragement

• Often requires repeated and intense personal

contact.

• Necessary to minimize hardships
• Provided from initial interview to final payment
• f relocation claims

No other assistance, not even relocation payments, is more important to persons being displaced.

49 CFR 24.205(c)

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)

Advisory Services

Who is Eligible?

• Persons:
• Occupying real property to be acquired
• Occupying real property adjacent to the

acquisition if agency determines it will cause substantial economic injury

• Who move or move personal property from real

property not being acquired for the project.

• Who move into property after acquisition

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Acquisition of the Parking Garage

Medical Center Parking Garage

Acquisition of Factory

Paper Factory Big Mikes Diner

Houses acquired on One Side of the Street

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Resource Center Realty Team

Advisory Services

Business Interview Requirements

• Relocation Needs and Preferences
• A. Site requirements, lease terms, etc.
• B. Need for outside specialists
• C. Identify realty/personalty
• D. Estimated time required to move
• E. Estimate availability of replacement sites
• F. Identify advance relocation payments required

49 CFR 24.205(c)(2)(i)

Advisory Services

Businesses

• Provide current & continuing

information on available sites

• Minimize hardship with counseling
• Offer information on other Federal/State
• r Local programs

49 CFR 24.205(c)(2)(i)

Advisory Services

Residents

• Relocation needs & preferences
• A. Provide current & continuing information on

available sites

• B. Inform of specific comparable in writing
• C. Inspect for applicable standards
• D. Reasonable opportunities for minorities to

relocate

• E. Offer transportation

49 CFR 24.205(c)(2)(ii)

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Advisory Services

Residents (cont.)

• Relocation needs & preferences
• F. Advise of government housing assistance

requirements

• G. Minimize hardship with counseling/advice
• H. Provide information on Federal/State or

Local housing programs/assistance

49 CFR 24.205(c)(2)(ii)

RELOCATION NOTICES

Relocation Notices

• 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

• In writing, easily understood

language

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Relocation Notices

1. General Information Notice 2. Notice of Relocation Eligibility 3. 90 Day Notice 4. Notice of Intent to Acquire* *Not required, issue with extreme caution!

49 CFR 24.5

General Information Notice

• Given anytime – typically early
• Conveys information about the

relocation program, including right to appeal

49 CFR 24.203(a)

• Format: brochure or letter

that is general in nature

Notice of Relocation Eligibility

• Delivered at initiation of

negotiations (ION) or shortly thereafter

• Establishes qualification for

relocation assistance and may set amount

49 CFR 24.203(a)

• Format: letter that is hand‐

delivered or sent by certified mail

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90 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 24.203(c)

90 Day Notice (cont.)

• For residential occupant, comparable must be
• ffered to begin the 90 days
• Emergency situations may require less than 90

day advance notice

49 CFR 24.203(c)

• Two approaches for content

Specific vacate date or 90-day notice with additional 30-day notice

Notice of Intent to Acquire

• Agency determines necessity
• Establishes eligibility for relocation assistance

prior to ION – Initiation of Negotiations

49 CFR 24.203(d)

• Format: optional letter that is hand delivered or

sent by certified mail

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Case Studies

Advisory Services

YUMM YUMMY DOUGH DOUGHNUTS TS

• Mr. Stuart Fox

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Review Learning Outcomes

• When is the ideal time to conduct

relocation planning?

• Why is it important for early identification
• f Housing of Last Resort?
• Who is eligible for advisory services?
• Name examples of possible resources for

relocation assistance

Review Learning Outcomes (cont.)

• What is the purpose of each of the four

relocation notices?

• What are the three required relocation

notices?

• How should the required notices be

delivered? Replacement Housing For Owner Occupants

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Learning Outcomes

At the end of the module you will be able to:

• Assess comparable replacement housing
• List the decent, safe and sanitary

standards

• Explain the components of the

Replacement Housing Payment for displaced 90‐day homeowner‐occupants

Learning Outcomes

You will also be able to:

• Explain the goal of the “buydown”

process

• Compute a price differential payment
• Assess the impact of a carve‐out or an

uneconomic remnant on a price differential calculation

Learning Outcomes

You will also be able to:

• Determine whether or not incidental

expenses are reimbursable

• Compute appropriate price differential

payment based on changing facts

• Identify the move options for

residential displaced persons

2/1/2018 FHWA Resource Center Env ‐ Realty Team 75

Comparable Residential Replacement Dwellings Summary (49 CFR 24.2(a)(6)) Comparable Replacement Dwellings are:

• 1. Decent, safe, and sanitary.
• 2. Functionally equivalent to the displacement

dwelling.

• 3. Adequate in size to accommodate the

displaced person.

Comparable Residential Replacement (cont.)

• 4. Located in an area that is:
• not subject to unreasonable adverse environmental conditions;
• generally not less desirable than the location of the

displacement dwelling with regard to public utilities and commercial and public facilities; and

• reasonably accessible to the displaced person's place of

employment

• 5. Located on a typical residential site.
• 6. Currently available to the displaced person.
• 7. Within the financial means of the displaced person.

Decent, Safe and Sanitary (DSS)???

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Comparable Residential Replacement Dwellings

• 1. Structurally Sound
• 2. Electrical System
• 3. Heating System
• 4. Adequate in size
• 5. Bathroom
• 6. Kitchen
• 7. Egress
• 8. Handicapped Accessible

Decent, Safe and Sanitary (DSS)??? Case Study: What is Comparable?

Mike Davis

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REPLACEMENT HOUSING PAYMENT Replacement Housing Payment Categories

1.Owner payments

• 2. Rental Assistance Payments
• 3. Down payment Assistance

Resource Center Realty Team

Replacement Housing Payments

• Price differential
• *Increased Mortgage

interest cost

• Incidental expenses

Cannot exceed $31,000

OR

• Rental assistance

cannot exceed computed price differential payment

• Own and occupy displacement dwelling 90 days

prior to initiation of negotiations

49 CFR 24.401

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Concept

Acquisition Funds

+

Relocation Funds Guarantee A Replacement Home

90‐Day Replacement Housing Payment Components

Price Differential

(49 CFR 24.401(c))

Increased Mortgage Interest Costs

(49 CFR 24.401 (d))

Incidental Expenses

(49 CFR 24.401(e))

180‐Day Replacement Housing Payment Components

• 1. Price Differential (49 CFR 24.401(c))
• 2. Increased Mortgage Interest Cost

Payment, aka MIDP or MID (49 CFR 24.401(d))

• 3. Incidental Expenses (49 CFR 24.401(e))

2/1/2018 FHWA Resource Center Env ‐ Realty Team 79

Price Differential—Example Comparison Grid

Price Differential Payment

Cost of comparable replacement dwelling $315,000 Less acquisition cost

• 300,000

Maximum price differential payment $15,000

49 CFR 24.401(c)

Acquired Dwelling Comparable Replacement Dwelling

Case Studies

Replacement Housing Payment Owner Occupant

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The Stuarts

The Stuarts

• Mr. and Mrs. Stuart own a home that they have occupied for at least 90 days prior to the

initiation of negotiations with a Local agency . The home/property is needed for a public roadway project. The fair market value of the house is $100,000. Just a few blocks away, a similar house is

• n the market and can be purchased for $120,000.

The Stuart’s are therefore eligible to receive a replacement housing purchase differential

• f $ 20,000 plus eligible closing costs and increased mortgage interest costs.

The Stuarts

To qualify for the maximum payment of $ 20,000, the Stuart’s must do the following:

– Sell their property to the agency for $100,000 – Purchase another home for at least $ 120,000 which meets the decent, safe and sanitary standards – Purchase their replacement home within one year and file a claim within 18 months

2/1/2018 FHWA Resource Center Env ‐ Realty Team 81

Questions

1. What are the Stuarts’ relocation benefits if they are illegal aliens from France? 2. What is their replacement housing payment if they settle for $ 130,000? 3. What is their replacement housing payment if they buy a home for $ 105,000? 4. What is their replacement housing payment if they buy a home for $ 150,000? 5. What is their replacement housing payment if they move to a home that is not Decent Safe & Sanitary?

CARVE OUT

49 CFR 24.403(a)(2)

Carve‐out of Major Exterior Attribute

• Must be an exterior attribute ‐ items like

excess land, swimming pools,

• utbuildings, waterfront properties
• If selected comparable does not contain

the attribute, deduct contributory value from acquired dwelling (carve it out)

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Carve‐out Computation

Acquisition cost of acquired dwelling $300,000 Less contributory value of major exterior attribute (i.e., pool)

• 20,000

Adjusted value of acquired dwelling $280,000

49 CFR 24.403(a)(2)

Price Differential–Carve‐out Computation

Total Residential Acquisition Offer $300,000 Contributory Value of Pool ‐20,000 Adjusted Base of Acquired Dwelling

$280,000

************ Price of Comparable Replacement $315,000 Less Adjusted Base of Acquired Dwelling $280,000 Price Differential Payment

$ 35,000

Price Differential–Carve‐out Computation: Uneconomic Remnant

Acquisition ($180,000) Remainder ($5,000)

Before Value:

$185,000 $185,000

Remainder Value:

$ 5,000 $0

Acquisition Offer

$180,000 $185,000

49 CFR 24.2(a)(27) 49 CFR 24.102(k)

2/1/2018 FHWA Resource Center Env ‐ Realty Team 83

Price Differential–Carve‐out Computation: Uneconomic Remnant

Comparable Replacement Dwelling $200,000 Less Acquired Dwelling w/out UER $180,000 Price Differential Payment $20,000 (Displaced person still owns uneconomic remnant) Comparable Replacement Dwelling $200,000 Less Acquired Dwelling inc. UER $185,000 Price Differential Payment $15,000 (Displaced person sells the uneconomic remnant)

Case Studies

Carve Out Relocation

Walker Family Farm

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180‐Day Replacement Housing Payment Components

• 1. Price Differential (49 CFR 24.401(c))
• 2. Increased Mortgage Interest Cost

Payment, aka MIDP or MID (49 CFR 24.401(d))

• 3. Incidental Expenses (49 CFR 24.401(e))

90‐DAY REPLACEMENT HOUSING PAYMENT COMPONENTS

• 1. Price Differential (49 CFR 24.401(c))
• 2. Increased Mortgage Interest Cost Payment,

aka MIDP or MID (49 CFR 24.401(d))

• 3. Incidental Expenses (49 CFR 24.401(e))

NOTE: MIDP shall be based only on bona fide mortgages that were valid liens on the displacement dwelling for at least 180 days prior to the initiation of negotiations.

Increased Mortgage

http://www.fhwa.dot.gov/real_estate/uniform_act/relocation/midpcalcs/

Mortgage Interest Differential Payment

• Compensates owner‐occupant for loss of

a favorable interest rate

• Old loan must be valid lien for 180 days

prior to ION and new loan must have a higher interest rate

• Based on a buydown process

49 CFR 24.401(d)

2/1/2018 FHWA Resource Center Env ‐ Realty Team 85

http://www.fhwa.dot.gov/real_estate/uniform_act/relocation/midpcalcs/

Buydown Process

Buys the principal amount down for the replacement mortgage so the principal and interest payments remain the same for the remaining term even though the interest rate is higher

90‐DAY REPLACEMENT HOUSING PAYMENT COMPONENTS

• 1. Price Differential (49 CFR 24.401(c))
• 2. Increased Mortgage Interest Cost Payment,

aka MIDP or MID (49 CFR 24.401(d))

• 3. Incidental Expenses (49 CFR 24.401(e))

Incidental Expenses

Incidental Expenses

• Reasonable
• Necessary
• Actually

incurred

49 CFR 24.401(e)

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Incidental Expenses (cont.)

• Reimbursable items
• Partially reimbursable items
• Not reimbursable items

Incidental Expenses–Eligible

• 1. Legal closing and related costs
• 2. Loan application fees
• 3. Loan origination (not prepaid interest)
• 4. Professional home inspections
• 5. Credit Report
• 6. Title Insurance (not to exceed comparable)
• 7. Escrow agent’s fee
• 8. Doc stamps
• 9. Other incidental costs as determined by the Agency

Incidental Expenses–Ineligible

• 1. Interest
• 2. Homeowner’s Insurance Premiums
• 3. Real Estate Taxes
• 4. Water/Sewer User & Assessment fees
• 5. Mortgage Insurance Premiums

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CCase Study

Rental Assistance

Replacement Housing Payment Categories

• 1. Owner payments

2.Rental Assistance Payments

• 3. Downpayment Assistance

2/1/2018 FHWA Resource Center Env ‐ Realty Team 88

Rental Assistance Payment

• Owners who choose to rent
• Difference between comparable replacement

rent/utilities and economic rent/utilities at the displacement dwelling

• Payment cannot exceed computed price

differential payment

49 CFR 24.401(f)

Rental Assistance Payment Computation

(for 90 Day Homeowner‐Occupants)

Rental Assistance Payment Computation

(for 90 Day Homeowner‐Occupants)

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http://www.fhwa.dot.gov/real_estate/uniform_act/policy_and_guidance/fixsch96.cfm

Residential Move Options

49 CFR 24.301(b)

Residential Moving Expenses

• Transportation
• Packing/unpacking
• Disconnects/reconnects
• Storage
• Insurance
• Damage during move
• Other items, such as special services

49 CFR 24.301(g)

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Replacement Housing for Tenants and Other Residential Occupants

Comparable Residential Replacement Dwellings Decent, Safe and Sanitary (DSS)???

• 1. Structurally Sound
• 2. Electrical System
• 3. Heating System
• 4. Adequate in size
• 5. Bathroom
• 6. Kitchen
• 7. Egress
• 8. Handicapped Accessible

Purpose of Rental Assistance Payment

A payment to assure a comparable rental dwelling is made available to a displaced tenant or short‐term owner‐occupant

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Replacement Housing Payments 90‐Day Tenant

• Rental assistance payment

Cannot exceed $7,200

OR

• Downpayment assistance

cannot exceed computed price differential payment

• Rent and occupy displacement dwelling 90

days prior to initiation of negotiations

49 CFR 24.401

Replacement Housing Payments

Less Than 90‐Day Occupants

• Rental assistance

Payable under housing of last resort OR

• Downpayment assistance Payable under housing of

last resort

49 CFR 24.402 49 CFR 24.404(c)(3)

• Rent or own and occupy displacement dwelling

less than 90 days immediately prior to initiation

• f negotiations

90‐day Occupant Rental Assistance Eligibility Computation

49 CFR 24.402(b)(2)(i-iii)

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90‐day Occupant Rental Assistance Eligibility Computation

• Base Monthly Rental of Displacement dwelling is

the lesser of:

• 1. Actual Rent plus utilities
• 2. 30% of monthly income if qualified under

HUD’s Section 8 Program Limits

• 3. Total designated amounts for food & shelter if
• n welfare program

Rental Assistance Payment

49 CFR 24.402(b)

Information Needed for Payment Computation

• Length of occupancy
• Household income
• Household composition
• Current monthly rental amount
• Current average monthly utilities
• Low income criteria
• Government assistance payments
• Rental values in the area

2/1/2018 FHWA Resource Center Env ‐ Realty Team 93

Information Needed for Payment Computation (cont.)

• Base Monthly Rental Determination
• Monthly rent of selected comparable
• New estimated utilities
• Actual replacement property

90‐Day Occupant Actual Rental Assistance

(49 CFR 24.402)

90‐Day Occupant Actual Rental Assistance Computation–Sample

2/1/2018 FHWA Resource Center Env ‐ Realty Team 94

Case Studies

Rental Assistance Payment

The Sharp Family

• Mr. Sharp

Sam Sharp occupies a rental dwelling unit and has lived there for more than 90 days prior to the initiation of negotiations. The agency has offered to purchase this property from Mr. Sharp’s landlord.

• Mr. Sharp pays $ 1000 per month in rent plus $150 per month in average

utility costs. A few blocks away there is a similar dwelling unit available for rent for $100 more per month ($ 1095 for rent plus $155 for utilities). Mr. Sharp is entitled to a rental subsidy of $ 4,200 ($ 100 x 42 months).

2/1/2018 FHWA Resource Center Env ‐ Realty Team 95

• Mr. Sharp

To qualify for the maximum amount of $ 4,200,

• Mr. Sharp must do the following:

– Actually expend at least $1,250 per month for rent and utilities for a decent, safe and sanitary replacement – Rent and move to the replacement housing within

• ne year and file a claim within 18 months
• Mr. Sharp

Questions:

What is the rental supplement if Mr. Sharp rents a place including utilities for $ 1500 a month? What is the rental supplement if Mr. Sharp rents a place for $ 1000 including utilities?

Fall Creek Apartments

2/1/2018 FHWA Resource Center Env ‐ Realty Team 96

Fall Creek Apartments

A large apartment complex is being acquired for a road project. The project is displacing several occupants who are not familiar with the available comparable replacement rental properties in the market. They have been unsuccessful in locating replacement housing. Furthermore, they do not have the funds to make a lease deposit and first month’s rent.

Fall Creek Apartments

Question: What can the acquiring transportation agency do in this situation?

Fair Market Rent vs. Actual Rent

49 CFR 24.402(b)(2)(i)

• If displaced person is paying little or no rent

Agency may adjust to fair market rent

• Agency may waive adjustment if it determines a

hardship exists

2/1/2018 FHWA Resource Center Env ‐ Realty Team 97

Resource Center Realty Team

90‐Day Occupant Actual Rental Assistance Computation–Sample

Market vs. Contract Rent

(49 CFR 24.402)

90‐Day Occupant Rental Assistance—Utility Adjustment

(49 CFR 24.402) 49 CFR 24.402(c)

Downpayment Assistance

• Displaced person can convert rental

assistance to downpayment

• Payment limited to amount of computed

rental assistance payment

• Agency may adopt policy of uniformly

increasing payment to $7,200

2/1/2018 FHWA Resource Center Env ‐ Realty Team 98

Case Study Down Payment Assistance

The Murphy’s currently lease and occupy the lower unit of a 2‐family flat. They have resided in the unit for about a year and a half prior to the initiation of negotiations for the purchase of the subject parcel. The Murphy’s have informed you they are planning on purchasing a replacement dwelling and they have located a home for $175,000. Current rent for the Murphy’s is $750 per month and about $150/month for utilities. Their gross monthly income is $5,000. Rental units similar to the Murphy’s flat are available for $800/month with estimated utilities at $150/month.

http://www.huduser.org/portal/datasets/ura/ura14/RelocAct.html

Case Study Down Payment Assistance

The following URA Income Limits are in effect for the Murphy’s community. What is the maximum downpayment eligibility for the Murphy’s?

Case Study Down Payment Assistance

$750 (rent) + $150 (utilities) = $900 Comp is $800 (rent) + $150 (utilities) = $950 $950 ‐ $900 = $50 x 42 months =

$2,100 Rent Supplement Payment

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Replacement Housing Payments for Less Than 90‐Day Occupants

“Subsequent occupants” cannot be denied a replacement housing payment solely because they do not meet the appropriate length of occupancy requirements.

(49 CFR 24.2(a)(6)(viii)(C) and 24.404(c)(3)

7‐7

http://www.fhwa.dot.gov/real_estate/uniform_act/policy_and_guidance/fixsch96.cfm

Resource Center Realty Team

Residential Move Options

49 CFR 24.301(b)

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49 CFR 24.301(g)

Residential Moving Expenses

• Transportation
• Packing/unpacking
• Disconnects/reconnects
• Storage
• Insurance
• Damage during move
• Other items, such as special services

Review Learning

• Explain the components of the

Replacement Housing Payment for displaced 90‐day occupants and less than 90‐day occupants

• State the purpose of a rental

assistance payment

• Explain the difference between fair

market rent and actual rent

Review Learning

• Explain downpayment assistance

eligibility

• Compute rental assistance payment

for 90‐day occupants including tenants and short‐term owners

• What are the residential move
• ptions?

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Questions?

Additional Residential Relocation Issues

Housing of Last Resort

49 CFR 24.404(a)

• Used when comparable replacement dwellings

are unavailable within monetary limits for Replacement Housing Payment

• Requires the Agency provide additional or

alternative assistance with justification

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Housing of Last Resort



Permits any legal method to cost effectively resolve the problem



Provides for payment to those who do not meet the length of occupancy requirements



Has no monetary limits

When Can You Justify Housing of Last Resort?

 Decent, Safe and Sanitary (DS&S) comparable housing is unavailable  Displaced person needs handicapped accessible housing  Displaced person has individual circumstances

Some Methods of Providing Last Resort Housing

‐ Provide RHP in excess of monetary limits ‐ Rehabilitate or add to replacement dwelling ‐ Construct new dwelling ‐ Provide direct loan

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Some Methods of Providing Last Resort Housing (con.)

‐ Move and rehabilitate existing dwelling ‐ Purchase land and/or dwelling and then sell, lease or exchange ‐ Remove barriers for disabled persons

Case Study Last Resort Housing Dawn Lopez

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Mayor Duke Simpson Aliens Not Lawfully Present in the United States

• Not eligible for relocation payments or advisory

services

• Relocation payments are computed based on the

number of eligible household members

Aliens Not Lawfully Present in the United States (con.)

• Exception made if denial of assistance will result in

“exceptional and extremely unusual hardship” to person’s spouse, parent or child who is citizen, or alien lawfully admitted for permanent residence

• Focuses on impacts on health, safety or family

cohesion

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Multiple Occupants

Single Household

• r

Separate Households?

Multiple Occupancy Situations

A household is considered as two or more people living together who are related or who live together by mutual consent

Multiple Occupancy Situations

(con.)

• Each occupant of a single living unit is entitled to a

prorated share of the relocation benefits if he/she moves separately

• If occupants maintain separate households in the

same dwelling, each has separate entitlements to relocation benefits

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Multiple Occupancy Situations

(con.)

• Displaced person will rent or buy

a replacement dwelling with someone who is not part of the project

Case Studies

Multiple Occupants

Mom, Dad and a Son that will not leave

The Curtis Family

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Susan and Debbie and the “Steve Situation”

Government Assisted Housing

• Should be offered as comparable if displaced

person is currently occupying government assisted housing

• For person receiving government assistance, the

size of the replacement dwelling reflects requirements of the government program

Case Studies

Government Assisted Housing

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Donna Jones

Relocation Appeals

• Any person can appeal the Agency’s eligibility

determination for a relocation payment or the amount of a payment

• Agency must establish an appeal process

Review Learning

• Describe Housing of Last Resort and its

ramifications

• Determine when Housing of Last Resort is

necessary

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Review Learning (con.)

• Determine if displacees qualify for Housing of Last

Resort (HLR)

• Explain unique issues regarding illegal aliens
• Determine when multiple occupants constitute

more than one household

Review Learning Outcomes

(con.)

• Determine when to use government assisted

housing as replacement housing

• Describe when and under what circumstances a

displaced person may file a relocation appeal

• Realty

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

• Uniform Act Frequently Asked Questions (UA FAQs)

http://www.fhwa.dot.gov/real_estate/uniform_act/policy _and_guidance/uafaqs.cfm

• Non‐Regulatory Supplements 49 CFR 24

http://www.fhwa.dot.gov/real_estate/uniform_act/policy_and _guidance/non_regulatory_supplement/index.cfm

• Federally Mandated Exclusions From Income

http://www.fhwa.dot.gov/real_estate/uniform_act/relocation/ exclusions.cfm

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Questions?

Nonresidential Relocation

Business Move Benefits

Advisory Services Payments Actual Costs Fixed Payment Reestablishment

The Big Picture

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Actual Cost Elements 49 CFR 24.301

• Transportation

‐ ‐ Bids ‐ ‐ Estimates

• Packing
• Disconnecting/Reinstalling

9

Actual Cost Elements 49 CFR 24.301

• Storage
• Insurance
• Replacement value of personal property

10

Actual Cost Elements 49 CFR 24.301

• Licenses, fees, permits and certifications
• Professional services (planning)
• Signs and stationery

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Actual Cost Elements

49 CFR 24.301

• Actual direct loss
• Cost of selling
• Substitute property

12

Actual Cost Elements

49 CFR 24.301

• Searching
• Low value / high bulk

13

Actual Cost Elements

49 CFR 24.303

Additional benefits

• Utility connections
• Professional services (new property)
• Impact fees

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Case Studies

Cost Examples

Storage Insurance Professional Services Storage

The Nook Book Store had to move as a result of a federal aid DOT project. The owners had not idea where they wanted to move and placed their entire inventory in storage. Although the business was advised of the one year limitation on storage, a year has past and they are requesting an additional six months. How would you handle this situation?

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Insurance

• You notice that every time Brother’s Moving bids on a job it

always includes $15,000 of replacement value insurance coverage in their bids. You are moving a glass shop and the inventory is worth over $ 50,000. The lowest bid you receive is from Brother’s Moving and it includes on $ 15,000 worth of coverage in the bid.

• How should this be resolved?
• What are the consequences of not resolving this matter?

Professional Services

• Dolly’s Taffy has several contracts that demand timely

production of their product. Dolly can only produce and store a small quantity of their taffy in advance so they can insure a fresh and delicious product. They have hired a candy manufacturing expert to plan their

• move. Dolly feels with the help of this expert they can

complete the move with only three days of down time from production. The cost of the mover is $40,000. The move is estimated to be $ 90,000.

Professional Services

• What is your position on the cost of the

professional mover?

• What are some steps you might take to

determine the reasonableness of the cost of the mover?

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Business Move Benefits

Advisory Services Payments Actual Costs Fixed Payment Reestablishment

The Big Picture Reestablishment Elements

49 CFR 24.304

• Code modifications
• Other property modifications
• Exterior signage

Reestablishment Elements

49 CFR 24.304

• Redecoration
• Advertisements
• Estimated increased costs
• Other

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What Cannot be Paid for as Reestablishment?

49 CFR 24.304

• Capital assets
• Manufacturing materials
• Interest
• Certain in‐home businesses

Business Move Benefits

Advisory Services Payments Actual Costs Fixed Payment Reestablishment

The Big Picture

Fixed Payment/In lieu of

49 CFR 24.305

• Criteria
• Patronage
• Number of businesses
• Payment calculation

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Fixed Payment

(Special Situations)

49 CFR 24.305

• Farms
• Nonprofit

Case Studies

Business Relocation

Glamour Nail Salon

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Glamour Nail Salon

The Glamour Nail Salon is moving to make way for a new highway. The business owner has provided the agency with an inventory of the personal property to be moved and reinstalled. The agency has obtained moving estimates for these services that total $5,800. The business owner has also incurred search expenses of $800, and the owner was required by a Local health code to put in a ventilation system at his new location at a cost of $4,500. The business owner can be reimbursed for his actual costs totaling $11,100 ($5,800 + $4,500 + $800).

Glamour Nail Salon

To qualify for the maximum amount, the business owner must do the following:

• Actually incur such costs
• Complete the move within one year
• File a claim within 18 months

Clara’s Beef Jerky Store

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Donald’s Car Wash Review Learning

• What are the various move options?
• Develop advisory assistance solutions for non‐

routine situations

• Differentiate between a bid and an estimate

Review Learning (con.)

• Identify 10 or more moving benefits
• Explain the “as‐is” issue for tangible property loss
• Explain the regulations regarding reestablishment

expenses

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Review Learning (con.)

• Determine reestablishment expenses
• Explain eligibility for in‐lieu payment
• Explain fixed payment in‐lieu of actual costs for

businesses that are only in business to rent property

Review Learning

(con.)

• Select situations that may create a substantial loss
• f existing patronage
• Determine the in‐lieu payment

FHWA Right of Way Update

Alaska 2018

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What is New in Right of Way

• Option Contracts Research Study
• Appraisal Waiver Limits Research Project
• Right of Way Use Agreements
• Alternative Energy/ Utilities in the ROW
• 49 CFR NPRM

Alaska 2018 Alaska 2018 Alaska 2018

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Alaska 2018

a) A ROW use agreement for the non‐highway use of real property interests may be executed with a public entity or private party in accordance with §710.403 and this

• section. Any non‐highway alternative use of real property interests requires

approval by FHWA, including a determination by FHWA that such occupancy, use,

• r reservation is in the public interest; is consistent with the continued use,
• perations, maintenance, and safety of the facility; and such use does not impair

the highway or interfere with the free and safe flow of traffic as described in §710.403(b). Except for Interstate Highways, where the SDOT controls the real property interest, the FHWA may assign its determination and approval responsibilities to the SDOT in their Stewardship/Oversight Agreement.

23 CFR 710.405 – ROW Use Agreements

Alaska 2018

Renewable Energy Generation in the Highway Right‐of‐Way

FHWA-HEP-16-052

NPRM – 49 CFR

Notice of Proposed Rule Making

Alaska 2018

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Questions?

Thank You For Your Time