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kdot row acquisition policy 9/6/1985 - . ~aK6a6 ':DepartmeKt 01 ~raK6portatioK September 6, 1985 BRUD MEMO 85-4 MEMORANDUM TO: MAYORS, COUNTY COMMISSIONERS, CITY ENGINEERS, COUNTY ENGINEERS, STREET SUPERINTENDENTS, ROAD SUPERVISORS SUBJECT: RIGHT OF WAY ACQUISITION POLICIES (Rescinds Secondary Road Memo 77-1, dated 3-25-77) The Federal Highway Administration has notified us of new regulations contained in 49 CFR, Part 25 entitled "Uni form Relocation and Real Property Acquisition for Federal and Federally Assisted Programs". These regulations became effective July 3, 19B5 and all right of way for city or county federal- aid projects which has not been acquired at this time must be acquired in conformance with these regulations. The attached procedures (3 pages) were developed for implementation of the new regulations on a typical project involving simple acquisitions. The proce- dures and use of attached forms are effective immediately for projects where federal funds will be used to participate in any part of the costs. If build- ings, structures or other improvements are to be acquired, the Bureau of 'Rural and Urban Development must be contacted for guidance. These procedures do not cover necessary relocation procedures. Prior to any project going to contract, the city or county is required to furnish the Bureau of Rural and Urban Development a Certification of Real Property Acquisition Procedures (see attached copy). All right of way transac- tions necessary for a proje~t should be made in compliance with the certifica- tion including purchase of right of way by deed or permanent easement, easement for channel change maintenance and temporary construction easements. This certification will be reviewed by the Bureau of Rural and Urban Development's engineer with the city or county representative at the time of the project's field check. For rojects ast the office check sta e which right of wa has not been ac uired and w ic ou have received t e 0 ert1f1cat on 0 Real ro ert cquis1t10n Proce ures orm, pease 0 ow new proce ures and su st1tute 1n your submission the new form. When federal funds are anticipated to be used for grading, bridges or surfacing now or in the future, the county or city should not acquire right of way prior to receiving design approval from this office. If there are any plans to use future federal funds for surfacing of a locally financed grading project, these federal-aid procedures should be followed in acquiring the right of way for the grading. The Kansas Department of Transportation will monitor right of way acquisi- tion on a spot-check basis. The monitoring process will be conducted by person- nel from KDOT's Bureau of Rural and Urban Development and Bureau of Right of Way. Some of the items which will be checked in the monitoring of right of way acquisitions are as follows: · - 1 - . Attachments: 1. Procedures for Acquisition of Simple Projects with No Federal Funds Participating in the Cost of the Right of Way (3 Pages) 2.* Certification of Real Property Acquisition Procedures (2 Pages) 3.* County Offer to Purchase Stat~ment of Compensation (1 Page) 4.* City Offer to Purchase Statement of Compensation (1 Page) 5.* Partial Donation of Right of Way (1 Page) 6.* Donation of Right of Way (1 Page) 7.* Value Funding Appraisal (1 Page) *Note: Attachments 2-7 are forms that may be copied as necessary to complete and return to the Bureau of Rural and Urban Development. Page 1 of 3 , PROCEDURES FOR ACQUISITION OF SIMPLE PROJECTS WITH NO FEDERAL FUNDS PARTICIPATING IN THE COST OF THE RIGHT OF WAY 1. DONATION Property owners whose real property is to be acquired for a highway project may make a gift or donation of the property, or any part of it, or of any of the compensation paid for it, to the acquiring agency. A. The owners must be fully informed of the right to receive just compensation for the acquisition of the prpperty. One method of informing property owners is by providing them with a written document, such as a KDOT brochure, which explains the land acquisition process under State law and the owner's rights, privileges, and obligations. The information provided in the written document should be clearly presented in non-technical terms to the extent practicable. KDOT brochures are available upon request. B. The owners must also be fully informed that they are entitled to have an appraisal made of the property along with an offer of just compensation. The, owner may release the agency from either or both of the ob- ligations. I! is ~ property owner option. This can be accom- plished by utilizing the attached donation or partial donation letter. II. APPRAISAL AND APPRAISAL REVIEW The acquiring agency should select a qualified appraiser and review appraiser. Their qualifications should be consistent with the level of difficulty. Typical rural project acquisitions can normally be done by a person familiar with real estate values in the community. The attached approved KDOT appraisal form should be used by the ap- praiser on simple acquisitions. The form is consistent with the definition of appraisal and appraisal standards in the regulations. The form provides only a minimum of space for descriptions, support and explanations; however, it can be supplemented if desired. The acquiring agency shall contact the Bureau of Rural and Urban Develop- ment if the acquisition involves substantial damages to the remainder or other complex problems exist. The bureau will be able to provide other formats that are more appropriate for complex acquisitions and are consistent with Federal regulations. The appraisal shall be examined by qualified review appraisers to determine that the appraisal meets the requirements and approves an amount which is believed to represent just compensation. When the review appraiser is unable to approve an appraisal, he/she may in- dependently develop and support ,an offer of just compensation. The bottom of the appraisal form must be completed by the review appraiser. 9-5-85 Page 3 of 3 , shall be sufficient to demonstrate compliance with applicable laws, regulations, and requirements and shall be available for inspection at reasonable times by authorized representatives of KDOT, FHWA, and other authorized Federal representatives. The records shall be retained for at least three years after the county or city has been notified that the project has been accepted by the Kansas Department of Transportation. 9-5-85 ~. ~ Page 1 of 2 CERTIFICATION OF REAL PROPERlY A<X)UISITION PROCEDURES City/County, Kansas certifies that all real property for Project Numher was acquired, including legal and physical possess iOIl"', in compliance with BRUD memo 85-4 a ttached forms and procedures and the items listed below:*'~ 1) Real property shall be appraised before the initiation of negotiations. and the owner or his designated representative shall be given an opportunity to accompany the appraiser during his inspection of the property. 2) Before the initiation of negotiations for real property, an amount shall be established which is reasonably believed to be just compensation therefore; and a prompt offer shall be made to acquire the property for the full amount so established. In no event shall such amount be less than the approved appraisal of fair market value of such property. 3) Any decrease or increase of the fair market value of real property prior to the date of valuation caused by the project for which such property is acquired or by the likelihood that the property would be acquired for such project, other than that due to physical deterioration within the reasonable control of the owner, will be disregarded in determining the compensation for the property. 4) Every reasonable effort shall be made to acquire, expeditiously, real property by negotiation. 5) The owner of the real property to be acquired shall be provided with a written statement of, and summary of the basis for, the amount established as just compensation. On partial acquisitions, the compensation for the real property to be acquired and the compensation for damages, if any, to the remaining real property shall be separately stated. 6) In no event shall coercive action be taken to compel an agreement on the price to be paid for the property. 7) No owner shall be required to surrender possession of real property before the agreed purchase price is paid or before there is deposited with the court the amount of the award of compensation in the condemnation proceedings for such property. 8) If an interest in real property is to be acquired by exercise of the power of eminent domain, formal condemnation proceedings shall be instituted. The acquiring authority shall not intentionally make it necessary for an owner to prove the fact of taking his real property. 9) The project shall be so scheduled that, to the greatest extent practicable, no person la\vfully occupying real property shall be required to move from a dwelling or to move his business or farm operation without at least (90) ninety days written notice from the date by which such move is required. "<'This requires the conveyance document for R/W and/or permanent easement to be recorded in the Register of Deeds office. '~~Right of Way acquired or in the process of being acquired prio~ to receipt of BRUD memo 85-4 was acquired in accordance with Certification of Real Property Acquisition Procedures form dated AprilS, 1982. Rev. 9-5-85 ~ Page 2 of 2 CERTIFICATION OF REAL PROPERlY ACQUISITION PROCEDURES 10) If acquisition of only part of a property would leave its owner with an uneconomic remnant, an offer shall be made to acquire the remnant. The Bureau of Rural and Urban Development will be contacted should this situation arise. 11) If there are buildings, structures, or other improvements owned by a tenant or landowner which are to be acquired or relocated, the Kansas Department of Transportation I S Bureau of Rural and Urban Development will be contacted for guidance as to proper procedures. Buildings, structures, or other improvements are involved in this project. Yes No 12) Property owners are to be reimbursed to the extent determined fair and reasonable for expenses necessarily incurred for: (1) recording fees, transfer taxes, and similar expenses incidental to conveying such real property; (2) penalty costs for prepayment of any pre-existing recorded mortgage encumbering such real property; (3) the eligible pro-rata portion of paid real property taxes. 13) If the final jud@TIent is that the property cannot be acquired by condemnation or the proceeding is abandoned by the city/county, or if a property owner successfully maintains an inverse condemnation action, the property owner is to be reimbursed for reasonable costs awarded to the owner by the court for such items as attorney, appraiser and engineering fees actually incurred because of the condemnation proceedings. The Bureau of Rural and Urban Development will be contacted before payment is made to the landowner should this situation arise. 14) Property owners may donate right of way after they have been fully informed of their right to have the property to be acquired appraised and to receive an offer of just compensation based on the appraisal. The appropriate donation or partial donation form signed by grantor(s) must be placed in the file for any donated parcel. If the Grantor of donated property intends to claim a tax deduction for a charitable contribution, an appraisal must be provided to establish the amount of the deduction. 15) Records will be maintained on file for at least three years after the county/city has been notified that the project has been accepted by the Kansas Department of Transportation. City/County Clerk Mayor/Chairman of Board Date 1 copy to Secretary of Transportation 1 copy to City/County Rev. 9-5-85 ~ COUNTY OFFER TO PURCHASE STATEMENT OF COMPENSATION Project Date County Tract No. Location: ,Sec. Twp. Range Dear County, Kansas, has approved a program for the construction and improvements of the above mentioned project. To accomplish the anticipated highway improvements, it will be necessary to acquire certain real property as indicated on the engineering plan and more particularly described in the instruments which will be presented to you for proper signatures, if you are receptive to the offer. Based upon the fair market value determined by established procedures, Kansas, offers you the sum of Dollars ($ property, which has been determined to property, or the portion thereof to be of such real property, as the County of ), for your real be just compensation for your acquired. The amount quoted includes the following items: Real Property to be acquired as right of way (Sq.Ft.) , (Acres) Buildings acquired with right of way (Sq.Ft.) (Acres), Temporary (Sq.Ft. ) (Acres) Other easements, if any: Permanent This offer is based on a review and analysis of an appraisal(s) of this property by a qualified appraiser(s). Value of the right of way to be acquired $ Damages $ $ $ TOTAL COMPENSATION $ County of By: Address: Agent Phone: 9-5-85 ~ CITY OFFER TO PURCHASE STATEMENT OF COMPENSATION Project Date City of Tract No. Location: Lot Block Sub/Add Dear The City of , Kansas, has approved a program for the construction and improvements of the above mentioned project. To accomplish the anticipated highway improve- ments, .it will be necessary to acquire certain real property as indicated on the engineering plan and more particularly described in the instruments which will be presented to you for proper signatures, if you are receptive to the offer. Based upon the fair market value determined by established procedures, Kansas, offers you the sum of Dollars ($ property, which has been determined to property, or the portion thereof to be of such real property, as the City of ), for your real be just compensation for your acquired. The amount quoted includes the following items: Real property to be acquired as right of way (Sq.Ft.), (Acres) Buildings acquired with right of way (Sq.Ft.) (Acres), Temporary (Sq.Ft.) (Acres) Other easements, if any: Permanent This offer is based on a review and analysis of an appraisal(s) of this property by a qualified appraiser(s). Value of the right of way to be acquired $ Damages $ $ $ TOTAL COMPENSATION $ City of By: Agent Address: Phone: 9-5-85 . PARTIAL DONATION OF RIGHT OF WAY Date County Project C~ Tract No. Gentlemen: This letter will serve to verify that we were fully informed and advised of our rights to receive just compensation for the acquisition of a portion of our property for the construction of the above noted project. We further wish to acknowledge that because of the benefits to be derived from this highway improvement, we willingly accept $ as full compensation, realizing this may be less than just compensation for the property to be acquired. Any difference between the compensation we are receiving and what might be actual just compensation is considered by us to be a donation to the County/City. We also release the agency from the obligation to make an appraisal.* Grantors Orig. to County/City Copy to Grantors *If the owner wishes to donate but wants an appraisal for the purposes of establishing a tax deduction for a charitable contribution, cross out the last sentence. 9-5-85 ~ . DONATION OF RIGHT OF WAY Date County City Project CIA Tract No. Gentlemen: This letter will serve to verify that we were fully informed and advised of our rights to receive just compensation for the acquisition of a portion of our property for the constructi9n of the above noted project. We further wish to acknowledge that because of the benefits to be derived from this highway improvement project, we willingly waive all rights for compensation, release the agency from the obligation to make an appraisal*and will donate the necessary land to the County/City. Grantors Orig. to County/City Copy to Grantors *If the owner wishes to donate but wants an appraisal for the purposes of establishing a tax deduction for a charitable contribution, cross out the phrase "release the agency from the obligation to make an appraisal". 9-5-85 . . VALUE FINDING APPRAISAL Owner Tract Project No. Address County Purpose of Appraisal: The purpose of the appraisal is to estimate the compensation due the owner for, or'as a result of, the acquisition of a part or all of his/her real property, or interest herein, for a highway or related purpose. Areas to be Acquired: In Fee Simple Title By Permanent Easement By Temporary Easement Ac.sq.ft.@ Ac.sq.ft.@ Ac.sq.ft.@ Ac.sq.ft.@ Ac.sq.ft.@ per Ac/sq.ft. per Ac/sq.ft. per Ac/sq.ft. per Ac/sq.ft. per Ac/sq.ft. $ $ $ $ $ Improvement Acquired $ $ Cost to Cure & Damage \ \ Total Value of Land, Improvements taken and Cost'to Cure Source Data for Assigned Values; for Land, Improvement and Damage: \ I , hereby certify, that I personally made a field inspection of the property herein appraised and have afforded the owner or a _, _,_....~...............___l......_.,:_..__ . , --....-......... ..... ~- ....__...._........~_..:,............_~___T")......................a.-.._._ 1. Was proper interest acquired in right of way and was it recorded? 2. Was the right of way acquired by donation? If yes, did owner sign the waiver? 3. Was a brochure furnished the property owner? 4. Was the owner given the opportunity to accompany the appraiser? 5. Was an acceptable appraisal completed? 6. Was a review appraisal completed and just compensation established? 7. Was a written, prompt offer of compensation made? 8. Are negotiator contact records in the file? 9. Was payment made prior to possession? 10. Was an offer made to acquire uneconomical remnants? 11. Were the local officials aware of document retention requirements? . 12. Other items on the certification which may be applicable to the particular project. Again, we cannot stress too strongly the need to follow the requirements of federal and state regulations to which you are certifying and the need for documenting your contacts with the property owners or their representatives. Non-compliance could mean the loss of federal funds to your county or city. We urge you to review the enclosed attachments and if you have any questions, contact this office or bring your questions to any meeting at which we are in attendance. ~;..,,~~~ RAYMOND E. OLSON, P.E. CHIEF OF RURAL AND URBAN DEVELOPMENT REO:1b Attachments - 2 - .\ . .. Page 2 of 3 Ill. NEGOTIATION The acquiring agency's primary goal during the acquisition process should be to acquire the required property interests by negotiation. The acquiring agency or negotiator plays an important role in achiev- ing this goal. Negotiations shall be conducted by a qualified member of the agency's staff or a fee person. The negotiator shall make all reasonable efforts to personally contact each resident property owner or the owner's designated representative. The negotiator should attempt to make the appointment with the property owner at a time and place convenient to the owner. The property owner should receive an e~planation of the acquisition process which could be provided by an acquisition brochure. The owner must be provided with a Written offer of the approved esti- mate of just compensation for the property to be acquired and a sum- mary statement of the basis for the offer. The owner must be given a reasonable opportunity to consider the offer and present material which the owner believes is relevant to determine the value of the property and to suggest modification in the proposed terms and conditions of the purchase. The acquiring agency must consider the owner's presen- tation. If all reasonable efforts to make a personal contact with the owner have failed or if the owner is from out of state and personal contact is impracticable, the owner may be contacted by certified mail or other means appropriate to the situation. The attached summary sheet should be utilized to make the written offer to the property owner. The agency may include any additional information that it deems appropriate. Negotiations shall be conducted without any attempt to coerce the ~roperty owner into reaching agreement. The negotiator should be careful not to imply that the negotiation is a "take it or leave it" situation. The negotiator shall maintain adequate records of negotiations on a parcel basis. Information on each contact should be included. The record shall be signed and dated by the negotiator. The record shall become a part of the project file even when negotiations are unsuc- cessful. In cases where the owner and the agency cannot reach amicable agree- ment after conducting negotiations over a reasonable period of time, the agency shall institute condemnation proceedings in accordance with State law. IV. RETENTION OF RECORDS The acquiring agency shall maintain a separate parcel file for each acquisition of real property and each unit displaced. These records 9-5-85