Real Estate Acquisition Guide For Local Public Agencies  2009

Table of Contents  i 

TABLE OF CONTENTS 

Table of Contents ..................................................................................................................... i

I. Introduction ......................................................................................................................... 1

Primary Law for Acquisition and Relocation Activities ...................................................... 1

II. The Uniform Act and the Government-wide Regulation............................................... 3

What Does the Uniform Act Do? ......................................................................................... 3

When Does the Uniform Act Apply? ................................................................................... 3

The Uniform Act................................................................................................................... 4

Eminent Domain and Condemnation.................................................................................... 5

The Government-wide Regulation – 49 CFR Part 24........................................................... 5

Federal-aid Participation (Funding)...................................................................................... 6

III. Project Development........................................................................................................ 7

General.................................................................................................................................. 7

Planning ................................................................................................................................ 8

Environmental Coordination............................................................................................. 9

Public Involvement ........................................................................................................... 9

Typical Project Development Cycle ..................................................................................... 9

Development of Project Alternatives................................................................................ 9

Hazardous Materials and Contaminants ......................................................................... 10

Environmental Assessment............................................................................................. 10

Public Involvement ......................................................................................................... 11

Selection of Alignment ................................................................................................... 11

Project Design................................................................................................................. 11

Utilities......................................................................................................................... 11

Right-of-Way Plans ..................................................................................................... 12

Acquisition...................................................................................................................... 12

Right-of-Way Certification............................................................................................. 13
2009 Real Estate Acquisition Guide For Local Public Agencies 

ii Table of Contents 

IV. Administrative Matters.................................................................................................. 15

Direct Federal Acquisition vs. Federal Assistance ............................................................. 15

Federal-aid Highway programs .......................................................................................... 15

Authorization, Apportionment, Appropriation ............................................................... 15

Project Authorization and Agreements........................................................................... 15

Cost-Sharing/Credits....................................................................................................... 16

Donations ..................................................................................................................... 16

Disposition of Certain Revenues ................................................................................. 17

FHWA Contracting Requirements...................................................................................... 17

Agency Organization & Conflict of Interest....................................................................... 17

V. Valuation........................................................................................................................... 19

Just Compensation .............................................................................................................. 19

The Appraisal Requirement................................................................................................ 19

Appraisal Waiver and Waiver Valuations .......................................................................... 19

Appraisal............................................................................................................................. 21

Appraisal Standards and Requirements .............................................................................. 21

Appraiser Qualifications and State Certification ............................................................ 22

Owner Accompaniment .................................................................................................. 22

Appraisal Criteria............................................................................................................ 23

Appraisal Review................................................................................................................ 24

Deficient Appraisals........................................................................................................ 25

Review Considerations ................................................................................................... 25

Appraisal Review Certification and Report.................................................................... 26

Appraisal Review Contracting............................................................................................ 27

Approved Fair Market Value and Just Compensation........................................................ 27

VI. Acquisition....................................................................................................................... 29

Basic Acquisition Requirements......................................................................................... 29

Personal Contact ............................................................................................................. 30

First Offer by Mail....................................................................................................... 31
Real Estate Acquisition Guide For Local Public Agencies  2009

Table of Contents  iii 

Prompt Written Offer...................................................................................................... 31

Owner Opportunity to Consider Offer............................................................................ 32

No Coercive Action ........................................................................................................ 32

90-Day Notice................................................................................................................. 32

Negotiator Log................................................................................................................ 33

Negotiation Options........................................................................................................ 34

Administrative Settlements.......................................................................................... 34

Alternate Dispute Resolution - Mediation ................................................................... 35

Payment Before Possession ............................................................................................ 35

Condemnation..................................................................................................................... 36

Role of Legal Counsel .................................................................................................... 36

Condemnation Proceedings ............................................................................................ 36

Legal Settlements............................................................................................................ 37

Court Awards.................................................................................................................. 38

Alternative Means of Property Acquisition........................................................................ 38

Donations ........................................................................................................................ 38

Donations in Exchange for Construction Features ......................................................... 39

Dedications ..................................................................................................................... 39

Additional Considerations .................................................................................................. 40

Assessments .................................................................................................................... 40

Functional Replacement.................................................................................................. 41

Inverse Condemnation .................................................................................................... 42

Uneconomic Remnants ................................................................................................... 42

Tenant-Owned Improvements ........................................................................................ 43

Owner Retention of Improvements................................................................................. 43

Hardship and Protective Buying ..................................................................................... 44
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iv Table of Contents 

VII. Relocation Assistance.................................................................................................... 47

Relocation Planning............................................................................................................ 48

Notices ................................................................................................................................ 48

Advisory Services............................................................................................................... 50

Relocation Assistance Payments ........................................................................................ 51

Residential Displacements.............................................................................................. 52

Replacement Housing Standards ................................................................................. 52

Mobile Homes.............................................................................................................. 54

Business Displacements.................................................................................................. 54

Typical Relocation Process Under The Uniform Act......................................................... 57

VIII. Property Management ................................................................................................ 59

Property Management from Acquisition To Project Closeout ........................................... 60

Administration ................................................................................................................ 60

Interim Leasing ............................................................................................................... 61

Right-of-Way Clearance ................................................................................................. 61

Property Management after Project Closeout..................................................................... 62

Post-Closeout Functions ................................................................................................. 62

Glossary ................................................................................................................................. 65

Appendix 

The Uniform Act ................................................................................................................... 71

The Uniform Act –Common Rule – 49 CFR Part 24......................................................... 95

Right-of-Way Regulations – 23 CFR 710.......................................................................... 145
Real Estate Acquisition Guide For Local Public Agencies  2009

 1BI. Introduction  1 

I. INTRODUCTION 

This guide is intended to serve as a basic reference for local public agencies and others who 

receive Federal-aid highway funds for projects involving the acquisition of real property. 

Typically, the Federal Highway Administration (FHWA) provides funds to State 

governments who carry out highway projects. These funds are used to support activities 

related to building, improving, and maintaining designated public roads. In some 

circumstances, the States pass on the funds to local governments or private entities. 

Eligibility to receive Federal funds depends upon compliance with Federal laws, regulations, 

and policies. State and local governments often have additional requirements that apply. 

One set of project activities eligible for Federal-aid funding involves the acquisition of real 

property and the relocation of residents, businesses, and others. Concern for fair and 

equitable treatment in acquiring private property for public purposes goes back to the 

beginnings of the United States. The founding fathers 

placed a high value on the protection of private property. 

The United States Constitution expresses this philosophy 

in the Fifth Amendment, where ‘due process’ and ‘just 

compensation’ are required for taking private property for 

a ‘public use.’ 

The 14th Amendment to the Constitution extends to States 

the requirement of following due process when they 

acquire privately owned property. 

There are several reasons that the Federal Government 

retains a deep interest in the acquisition of real property for 

federally assisted projects. The most important is ensuring 

that the Fifth Amendment mandates of due process and 

just compensation are met when property owners are 

affected by Federal-aid projects. Another is the goal of 

acquiring property without delaying the project for which 

it is needed. Finally, the Federal government is concerned 

that Federal tax dollars used to fund public improvement 

projects are spent in an appropriate fashion. 

PRIMARY LAW FOR ACQUISITION AND RELOCATION ACTIVITIES 

Public Law 91-646, The Uniform Relocation Assistance and Real Property Acquisition 

Policies Act of 1970, as amended, commonly called the Uniform Act, is the primary law for 

acquisition and relocation activities on Federal or federally assisted projects and programs. 



From 5th Amendment

U.S. Constitution

"No person shall. . . be

deprived of life,

liberty, or property,

without due process of

law; nor shall private

property be taken for

public use without just

compensation."  


2009 Real Estate Acquisition Guide For Local Public Agencies 

2 1BI. Introduction   

Other Federal, State, and local laws also govern public project and program activities. The 

requirements of other Federal laws that affect the process of acquiring private property for 

public purposes are discussed, at least minimally. However, our primary emphasis in this 

document will be the Uniform Act and its requirements. 

Federal real estate acquisition statutes and regulations include: 

United States Code (U.S.C.) 

o Title 23 - Highways 

o Title 42, CHAPTER 61 - Uniform Relocation Assistance and Real Property 

Acquisition Policies for Federal and Federally Assisted Programs 

o Title 49 - Transportation 

Code of Federal Regulations (CFR) 

o 23 Part 710 

o 49 Part 24 

NOTES:
Real Estate Acquisition Guide For Local Public Agencies  2009

 2BII. The Uniform Act and the Government‐wide Regulation  3 

II. THE UNIFORM ACT AND THE GOVERNMENT-WIDE 

REGULATION 

WHAT DOES THE UNIFORM ACT DO? 

The Uniform Act applies to all projects receiving Federal funds or Federal financial 

assistance where real property is acquired or persons are displaced as a result of acquisition, 

demolition, or rehabilitation. Anyone connected with the process of acquiring real property 

for federally assisted projects should be familiar with its provisions. A copy of the Uniform 

Act (and its implementing regulations) may be found in the Appendix of this guide. 

The Uniform Act provides benefits and protection for persons whose real property is 

acquired or who are displaced from acquired property because of a project or program that 

uses Federal funds or receives Federal financial assistance. The Constitution requires 

payment of just compensation for real property which is acquired and, when a project results 

in displacement, the Uniform Act requires services and payments be provided for displaced 

persons. A displaced person may be an individual, family, business, farm, or non-profit 

organization. 

WHEN DOES THE UNIFORM ACT APPLY? 

The Uniform Act applies when Federal dollars are utilized in any phase of a project. The 

Uniform Act applies even when Federal dollars are not used specifically for property 

acquisition or relocation activities, but are used elsewhere in the project, such as in planning, 

environmental assessments, or construction. The Uniform Act also applies to acquisitions by 

private as well as public entities when the acquisition is for a Federal or federally-assisted 

project. 

You must advise property owners and occupants of their rights under the Uniform Act by 

means of a written statement or brochure. You may obtain electronic versions of the Federal 

Highway Administration's brochures on Acquisition and Relocation from our website at: 

http://www.fhwa.dot.gov/realestate/index.htm

You must make sure that displaced persons receive all of the benefits and protections to 

which they are entitled. A fuller discussion of the Uniform Act's benefits and protections 

will be found in the sections and chapters that follow. 

You should work closely with your State Department of Transportation (SDOT) during the 

entire acquisition process, both to expedite acquisition and to assure that all Federal and State 

requirements are met. Typically, the SDOT will have an experienced real estate staff that 

can serve as a valuable resource to your agency. Some SDOTs also have designated a staff 
2009 Real Estate Acquisition Guide For Local Public Agencies 

4 2BII. The Uniform Act and the Government‐wide Regulation   

member as a local public agency coordinator. In addition, SDOTs may have programs to 

assist local governments in complying with federally assisted project requirements. These 

programs may include providing technical assistance and training for local acquiring agency 

personnel as well as samples of informational brochures, form letters, and claim forms. 

THE UNIFORM ACT 

The Uniform Act is divided into three major sections or titles. 

Title I, "General Provisions," primarily covers definitions. 

Title II, "Uniform Relocation Assistance" contains provisions relating to the 

displacement of persons or businesses by Federal or federally assisted programs or 

projects. An overview of the relocation requirements are provided in Chapter VII, 

Relocation Assistance. However, relocation under the Uniform Act is a specialized and 

complex subject. If you do not have staff qualified to administer a relocation 

program, you should seek assistance from your SDOT to insure that displaced 

persons are provided all appropriate assistance and payments. Qualified relocation 

consultants also may provide these services.

Title III, "Uniform Real Property Acquisition Policy" pertains to the acquisition of 

real property for Federal or federally assisted programs or projects. An overview of 

acquisition requirements is provided in Chapter VI, Acquisition. One of the purposes of 

Title III is to encourage and 

expedite the acquisition of real 

property through negotiation with 

property owners, thereby avoiding 

litigation and relieving congestion 

in the courts. Other purposes 

include assuring consistent 

treatment for property owners in 

Federal programs and promoting 

public confidence in Federal land 

acquisition practices. 

Each State has provided assurances that they can fully comply with the Uniform Act. Local 

acquiring agencies must certify that they have followed their State's Uniform Act assurances 

when acquiring real property. 

Acquisition Objectives of the Uniform Act

 Treat individuals fairly and

consistently.

 Encourage acquisition by agreement.

 Minimize litigation

Note: Failure to comply with the provisions of the Uniform Act will

result in denial of Federal participation in project costs.
Real Estate Acquisition Guide For Local Public Agencies  2009

 2BII. The Uniform Act and the Government‐wide Regulation  5 

EMINENT DOMAIN AND CONDEMNATION 

When amicable agreement cannot be reached through negotiations, the governmental power 

of eminent domain (condemnation) may be utilized to acquire real property. When eminent 

domain is utilized, the judicial system becomes the forum for establishing just compensation. 

The court will determine just compensation in the context of State eminent domain statutes 

and relevant case law. Consequently, what is compensable varies among the States. A 

number of States have adopted laws providing property owners compensation for conditions 

such as loss of business, loss of good will, noise, increased travel distance, and owner 

litigation costs. 

THE GOVERNMENT-WIDE REGULATION – 49 CFR PART 24 

The basic regulation governing acquisition 

and relocation activities on all Federal and 

federally assisted programs and projects is 49 

CFR Part 24, the Uniform Act governmentwide regulation (a copy of 49 CFR Part 24 is 

in the Appendix). FHWA is the lead agency 

for the Uniform Act and is responsible for 

the promulgation and maintenance of the 

government-wide regulation. 

In addition to the government-wide 

regulation, Federal agencies adopt program 

regulations which govern acquisition, 

relocation, and other matters specific to their 

programs. For example, agencies receiving 

funds from the FHWA, directly or through an 

SDOT, are subject to the regulations found in 

23 CFR, which is entitled "Highways." These regulations are found at various locations in 

23 CFR, mostly in Part 710. These regulations address highway-related issues not covered 

by the Uniform Act. A copy of 23 CFR, Part 710, Right-of-Way and Real Estate is in the 

Appendix. 

http://www.gpoaccess.gov/cfr/index.html 

Note: You should consult with your SDOT for advice as to what is or

is not compensable under your State law.
2009 Real Estate Acquisition Guide For Local Public Agencies 

6 2BII. The Uniform Act and the Government‐wide Regulation   

The acquisition of private property for public purposes is a complex matter governed by a 

number of laws, regulations, and policies. Familiarity with these requirements is essential for 

a successful acquisition program. 

FEDERAL-AID PARTICIPATION (FUNDING) 

Because of the variations in eminent domain laws among the States, it is extremely important 

that agencies and individuals dealing with the acquisition of private property for federally 

assisted projects be familiar with applicable Federal and State laws and regulations. It is also 

important to be aware of which expenditures are reimbursable under the applicable laws and 

regulations. An overview of the acquisition process is provided in Chapter VI, Acquisition. 

NOTES:
Real Estate Acquisition Guide For Local Public Agencies  2009

 3BIII. Project Development  7 

III. PROJECT DEVELOPMENT 

In the preceding chapters, we discussed the purpose of this guide as well as the 

Constitutional, statutory (Uniform Act, found at 42 U.S.C. Chapter 61, and regulatory 

frameworks (23 and 49 CFR) in which the Federal-aid highway program operates. This 

chapter will provide an overview of the project development process, following which we 

will examine specific elements of the right-of-way function in more detail. 

GENERAL 

The project development process begins with the identification of a transportation need. The 

need may result from factors as diverse as planned or anticipated growth, obsolescence of the 

present roadway, or a change in the land use of the area surrounding a highway. In any case, 

appropriate authorities determine that addressing the need merits further study. 

Figure 1 below indicates the main components of the project development process. 

Determining the feasibility of a project is a complex process. It requires input from the 

public as well as many different transportation professionals (planners, engineers, right-ofway specialists, environmental specialists, and others). The process considers the potential 

environmental impact of the project, examines the agency's ability to financially support the 

project, and determines the priority which the project should be assigned relative to other 

planned or potential projects. Due to the many elements in the project development process 

and because each project is unique, the process may vary somewhat from project to project 

and from agency to agency. 

The first component of the project development process is planning where projects are 

prioritized based on needs and funding capabilities. The other components in the project 

development process include a group of activities which we will refer to as the "typical 

project development cycle." 

(Figure 1)
2009 Real Estate Acquisition Guide For Local Public Agencies 

8 3BIII. Project Development   

PLANNING 

The transportation planning process is an 

ongoing, multi-layered process. It 

involves both system and project level 

analysis to determine and evaluate needs 

and set priorities based on fiscal 

capabilities within the statewide and 

metropolitan areas. 

Within metropolitan areas larger than 

50,000 in population, a Metropolitan 

Planning Organization (MPO) is 

responsible for developing a long-range 

transportation plan and transportation 

improvement program (TIP) for the 

region. The long-range transportation plan addresses all elements of the transportation 

system within the planning area regardless of jurisdictional boundaries. The TIP identifies 

how transportation projects both local and regional will be funded to support the 

implementation of the long-range transportation plan. Transportation projects and programs 

for which Federal-aid funds are anticipated within the region and any non-federally funded 

project considered significant to the transportation system within the region must be included 

in the TIP. 

The State is also responsible for developing a long-range transportation plan. Statewide 

long-range transportation plans can be either a policy oriented or a project specific 

document that provides a vision for the development and implementation of the intermodal 

transportation system of the State. The plan should demonstrate transportation needs and 

address the goals, policies, objectives, and strategies to meet the needs. The State also is 

responsible for programming funding for transportation projects through the Statewide 

Transportation Improvement Program (STIP). The STIP includes all projects identified in 

the MPO TIPs and all federally funded and all non-federally funded regionally significant 

projects across the state. Projects identified for Federal-aid funds must be included in the 

STIP in order to receive the Federal-aid funding anticipated. 

Local agencies within an MPO planning area should work with the MPO for all 

transportation projects for which Federal funding is anticipated in order to ensure their 

project is included in the long-range transportation plan and TIP. If a local agency is located 

outside an MPO area and anticipates the use of Federal-aid Highway funding, the agency 

should work with the State DOT to ensure the project is consistent with the statewide longrange transportation plan and is included in the STIP. 
Real Estate Acquisition Guide For Local Public Agencies  2009

 3BIII. Project Development  9 

ENVIRONMENTAL COORDINATION 

Another requirement for funding involves compliance with the National Environmental 

Policy Act of 1969 (NEPA). NEPA requires Federal agencies to adopt policies, regulations, 

and laws in such a manner that the agencies programs and projects address protection options 

for the human and natural environment. 

FHWA policies in implementing NEPA are linked to the planning and project development 

process. The approach integrates the environmental investigations, reviews, and 

consultations into a coordinated process to achieve the best overall balance between the 

public interest in a safe and efficient transportation system and protecting the environment. 

The NEPA process is critical to successful project development and provides the framework 

for FHWA's project development process. 

 PUBLIC INVOLVEMENT 

Public involvement is necessary throughout the planning process and during the 

environmental coordination process. Public involvement may take place through the public's 

attendance at meetings of the local governing body, newspaper articles and advertisements, 

letters and newsletters, and certainly in public meetings held expressly to discuss the project. 

It is the public's right to know about and comment on proposed programs and projects and 

their potential benefits and impacts. However, the level of public participation will be based 

on the project's size and its impact on the surrounding community and the natural 

environment. 

TYPICAL PROJECT DEVELOPMENT CYCLE 

DEVELOPMENT OF PROJECT ALTERNATIVES 

Once the need for a highway project has been identified, the agency determines a broad, 

general location (the corridor) where the potential road may be constructed. A number of 

alternate routes (alignments) within the corridor will be considered. Once the alignments 

have been identified, a more detailed study of each will be undertaken. From a property 

acquisition point of view, key elements of the study are the number of people and businesses 

Note: Your SDOT should be contacted for any assistance needed in

the NEPA process coordination.
2009 Real Estate Acquisition Guide For Local Public Agencies 

10 3BIII. Project Development   

which will be displaced, the estimated cost to acquire the real property for the project, and 

the estimated costs to relocate those eligible and/or to move personal property from the rightof-way. 

HAZARDOUS MATERIALS AND CONTAMINANTS 

One concern that should be addressed early in the project development process is the possible 

presence of hazardous material, waste, or other contaminants on the sites that you are 

considering for your project. If you suspect that a site is contaminated, preliminary surveys 

should be performed. If hazardous materials or waste are detected, you may want to do an 

in-depth survey to determine the cost of clean-up. If you ultimately decide to use one or 

more contaminated sites, you should include an estimate of clean-up costs in your overall 

project cost. 

ENVIRONMENTAL ASSESSMENT 

NEPA requires an environmental analysis for any major Federal action; typically a Federalaid highway project requires such an analysis. The analysis is a broad consideration of the 

social, economic, and environmental impacts which would be caused by construction of the 

various alternate alignments being considered. The number of people and businesses which 

would be displaced by potential construction; the effects on community facilities and 

services; and potential impacts on wetlands, parklands, and wildlife habitat (especially 

endangered species) are among the many effects examined as part of the analysis. 

Consideration is given to physical impacts on facilities as well as their ability to continue 

serving the community effectively after construction. Examples of such facilities include 

police and fire stations, hospitals, places of worship, community centers, and local shopping 

centers. Special consideration of potential impacts to public parks, recreation areas, wildlife 

and waterfowl refuge and historic sites are required by Federal law and by Federal 

regulations found at 23 CFR 771.135 (commonly referred to as "Section 4f"). 

At a minimum, the funding agency (typically your SDOT) will provide you the guidelines for 

performing the environmental analysis. If the project is complex, requires acquisition of 

many parcels or the displacement of people, or has known impacts on the natural 

environment, your agency may tell you the level of environmental analysis that must be 

performed. If the project impacts an area occupied by members of minority and/or low 

income groups, the requirements for environmental justice will have to be met. Information 

on environmental justice is available on FHWA's website at: 

http://www.fhwa.dot.gov/environment/eJ2.htm
Real Estate Acquisition Guide For Local Public Agencies  2009

 3BIII. Project Development  11 

PUBLIC INVOLVEMENT 

As indicated previously, public involvement is an essential part of the planning and NEPA 

coordination processes. The purpose of public involvement during project implementation is 

to inform the public of the potential impacts of each alignment, gauge opinion and/or support 

for a project, and allow the public to comment on the project and each alignment. The scope 

of public involvement is dependent on the type of environmental documents which must be 

prepared for the project. 

SELECTION OF ALIGNMENT 

After thorough consideration of the advantages and disadvantages of potential alignments, 

your agency will decide which alternative best serves the needs of the public and will select 

the preferred alignment to advance to project design. 

PROJECT DESIGN 

In  project  design  the  construction  plans,  specification,  and  estimates  (PS&E)  are 

developed for use in advertising for and constructing the transportation project.  There 

are many  factors  that  are  considered in  developing  final  design  plans.    The  following 

two  components  are  essential  to  the  real  property  interests  that  are  affected  by  the 

proposed project. 

UTILITIES 

Utility relocation is a critical part of the construction of a project. Early and continuing 

coordination with all of the affected utilities is critical to keeping your project on schedule. 

Utilities often need extensive lead time in order to reasonably schedule their work and obtain 

materials necessary for relocation of their facilities. Any affected utility company should be 

notified as soon as a project is identified that may require utility relocation. Once the utility 

is made aware (or notified) of the future need for a utility relocation, the utility company may 

be able to provide information concerning the location of existing utilities and any proposed 

new utilities for a project corridor. If a utility occupies land outside the right-of-way of a 

public highway, you will have to pay the utility to relocate its affected facilities in the same 

manner that you would compensate any other occupant. If a utility occupies land within the 

right-of-way corridor of a highway, your local and State laws governing the utility's right of 

occupancy in the right-of-way will govern whether you have to pay for all or part of the cost 

of relocating its facilities. 
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12 3BIII. Project Development   

RIGHT-OF-WAY PLANS 

As part of project design, a right-of-way plan indicating the property required to build and 

maintain the transportation project is required. The right-of-way plan should contain 

essential data needed for appraisal and negotiation activities. Depending on your agency's 

requirements, these plans will illustrate the existing and proposed right-of-way lines, the 

property lines and owner's names for each property adjacent to the highway, the highway 

center line, design features, width of the new highway, grade changes, and other details of 

the construction. The plan should provide sufficient information for preparation of legal 

descriptions of the properties and types of property interests to be acquired. 

A right-of-way plan is a valuable visual-aid tool for negotiators, appraisers, and attorneys 

involved in acquisition transactions. It also helps property owners understand why and how 

their properties are being acquired. 

ACQUISITION 

Once the above steps have been completed, including the environmental analysis and 

development of the right-of-way plans, the project is ready to enter the acquisition phase. 

Once your agency has received authorization to proceed, the property owners and tenants 

affected by the project must be notified of the agencies intent to acquire their property. An 

appraisal or waiver valuation of the real property to be acquired for the project is the initial 

step in the acquisition process. This step uses either a formal appraisal and review or an 

administrative procedure to estimate the fair market value of the property acquisition. 

Chapter V, Valuation, provides further explanation of the property valuation and appraisal 

process used to support the agencies determination of just compensation using estimates of 

fair market value. 

After just compensation is established, the next step in the acquisition process is to present a 

written offer to the property owner. The agency, acting principally through an acquisition 

agent or negotiator, should make every reasonable effort to reach an agreement expeditiously 

with the property owner. If agreement is not reached, the agency may have to initiate 

condemnation proceedings. Chapter VI, Acquisition, provides further explanation of this 

process. 

Note: At this time, if Federal­aid funding is planned for your

project, you will need to work with your SDOT to secure

authorization to proceed.
Real Estate Acquisition Guide For Local Public Agencies  2009

 3BIII. Project Development  13 

If there are occupants (including the property owner) or personal property on the parcel, 

relocation assistance is available. Chapter VII, Relocation Assistance, further explains the 

relocation process, benefits and services. 

RIGHT-OF-WAY CERTIFICATION 

Prior to advertising for construction bids for the project, the acquiring agency must prepare a 

right-of-way certification. A right-of-way certification states that the properties needed for 

construction of the project have been obtained, they are clear of any utilities and structures 

which must be moved plus persons or businesses displaced by the project have been 

relocated. Essentially, the certification must include a statement that the agency has 

complied with Uniform Act requirements and that the project is ready for construction. Your 

agency then can advertise for bids to construct the project. In some limited circumstances, 

the agency may proceed with advertising for construction bids prior to the elements of 

certification being completed if it will not adversely affect any owners or occupants nor 

impede the construction contractors' activities. 

This chapter has provided an overview of the project development process. In the next 

chapter, we focus on several specific administrative issues which may provide flexibility in 

the management of your agency's real estate acquisition program. 

NOTES:
2009 Real Estate Acquisition Guide For Local Public Agencies 

14 3BIII. Project Development   

NOTES: 
Real Estate Acquisition Guide For Local Public Agencies  2009

 4BIV. Administrative Matters  15 

IV. ADMINISTRATIVE MATTERS

While this Guide is concerned primarily with the programmatic aspects of the Federal-aid 

highway right-of-way program, it is important also to understand the administrative 

framework in which the program operates. 

DIRECT FEDERAL ACQUISITION VS. FEDERAL ASSISTANCE 

There are two ways in which real property is acquired using Federal funds. The first is direct 

Federal acquisition. For direct Federal acquisition, an agency of the Federal Government 

buys the property directly from an owner and the United States of America becomes the title 

holder. The second method involves what is called Federal-aid or federally assisted 

acquisition. Under this method, non-Federal units of government (e.g., States, counties, 

cities, and others) and sometimes private entities, purchase real property as part of a project 

receiving Federal funds. This guide is concerned with the second method, Federal-aid. 

Under the Federal-aid highway program, FHWA expects the State to be responsible for the 

proper acquisition of real property even when it passes funds through to agencies at the local 

government level. 

FEDERAL-AID HIGHWAY PROGRAMS 

Federal-aid highway funding comes primarily from the highway trust fund that receives tax 

revenue from gasoline and diesel fuel sales. States also levy a tax on fuel sales to support 

their share of road improvement costs. 

 

AUTHORIZATION, APPORTIONMENT, APPROPRIATION 

When an authorization bill is enacted the Federal-aid program operates under contract 

authority. This means that once the authorized funds are apportioned or allocated to a State, 

they are a reliable financial commitment on the part of the Federal government on which the 

TIP and STIP documents can depend. 

PROJECT AUTHORIZATION AND AGREEMENTS 

Projects in an approved STIP that have met the NEPA requirements are funded based on 

State requests for FHWA authorization to proceed with all or select phases of project 

activity, A project agreement must be executed before project expenses can be reimbursed. 
2009 Real Estate Acquisition Guide For Local Public Agencies 

16 4BIV. Administrative Matters   

Authorizations and agreements are based on State and local agency assurances to comply 

with prevailing Federal and State laws. The Uniform Act requirements discussed in the next 

three Chapters are critical whenever right-of-way is, or will be, required for the project. The 

Uniform Act applies when Federal funds are used in any phase of the project. 

COST-SHARING/CREDITS 

Federal-aid highway projects, like most Federal assistance, typically require that the agency 

receiving funding (the assistance recipient) contribute a portion of the cost of the project, 

known as the non-Federal share. The majority of such funding comes from State or local 

funds provided by State or local legislatures for this purpose. However, an assistance 

recipient may be able to reduce the amount of funds it needs to provide by obtaining credits 

which count toward its required share. Credits may be obtained in several different ways. 

DONATIONS 

When a private party wishes to donate all or a portion of his or her property, he or she must 

be fully informed of the right to receive just compensation for the property. If he or she 

decides to donate the property to a project, the assistance recipient (your agency) may receive 

credit toward its cost share for the fair market value of the donation, determined in 

accordance with applicable Federal regulations (see Chapter V, Valuation) and its own 

agency policy. In addition, Federal highway legislation provides a credit for the value of 

State or local government-owned land which is incorporated into a project. 

Donations made by a Federal government agency are not eligible for use as matching share 

credit. In addition, the credit received by a State cannot exceed the State's matching share for 

the project to which the donation is applied. 

A donation may be made at any time during a project's development. However, a donation 

made prior to the approval of an environmental document under the National Environmental 

Policy Act of 1969 (NEPA) may not influence the environmental assessment of a project, 

Note: Remember that FHWA authorization to proceed is required

before any project related work can be eligible for Federal

reimbursement.

Note: The determination of credits can be complicated and we

encourage you to contact your SDOT for information and

assistance.
Real Estate Acquisition Guide For Local Public Agencies  2009

 4BIV. Administrative Matters  17 

including decisions on the need to construct the project or the selection of specific locations. 

Consequently, all alternatives to a proposed alignment must be studied and considered 

pursuant to NEPA. Any property acquired by donation shall be re-vested in the grantor if the 

final alignment does not require the property. 

DISPOSITION OF CERTAIN REVENUES 

When States or local governments sell, lease or rent real property previously acquired with 

Federal funds, income is generated. The income derived from these activities may be 

retained (rather than returned to FHWA) if it is used to fund projects eligible under Title 23 

U.S.C. Highways. Thus, such income may be spent on eligible activities occurring under a 

different project from the one which originally provided the funds. You should contact 

your SDOT for further information and assistance. Additional information regarding 

these issues can be found in Chapter VIII, Property Management. 

FHWA CONTRACTING REQUIREMENTS 

Federal financial assistance carries requirements as well as opportunities. Negotiations and 

relocation contacts with property owners must be conducted by qualified agency personnel; 

however, if your agency does not have personnel who are knowledgeable or experienced in 

these requirements, you can utilize consultants. Contracting for such consultants, whether 

they deal with appraisal, acquisition, or relocation, must follow approved State or local (with 

State approval) procurement procedures. [These requirements are applicable only when 

Federal funds are used in the acquisition cost of the right-of-way.] 

AGENCY ORGANIZATION & CONFLICT OF INTEREST 

The Uniform Act requires that acquiring agencies be organized in such a way that conflict of 

interest and undue influence over valuation personnel are not present. This means that 

persons functioning as an appraiser or review appraiser are not subject to supervision or 

formal evaluation by a project or program negotiator. This organizational limitation is 

intended to ensure appraisal/valuation independence and prevent inappropriate influence. 

Project information sharing between appraisers/valuation preparers and other agency 

personnel is not prohibited and should be encouraged to assist in development of project 

Note: We strongly encourage local government agencies with

limited prior experience in contracting for right­of­way

services to contact their SDOT for more detailed

information on these requirements.
2009 Real Estate Acquisition Guide For Local Public Agencies 

18 4BIV. Administrative Matters   

information and participating in determining the scope of work for the appraisal or valuation 

as long as supervisory authority is not involved. If such a requirement creates a hardship in 

your agency due to limited staffing you should consult with your SDOT representative to see 

if a waiver of this requirement can be obtained from the Federal funding Agency. 

This chapter has discussed issues which relate to the administration of your agency's real 

estate acquisition program. In the remaining chapters, we focus on elements relating to the 

acquisition of real property including valuation, acquisition, relocation assistance and 

property management. 

NOTES:
Real Estate Acquisition Guide For Local Public Agencies  2009

 5BV. Valuation  19 

V. VALUATION 

The first step in the process of acquiring a particular property is valuing the proposed 

acquisition. 

JUST COMPENSATION 

The U.S. Constitution and most State constitutions require that a property owner be paid just 

compensation when the government acquires private property. The Uniform Act requires 

that an "approved appraisal" be used to develop an amount the agency believes to be just 

compensation. The amount offered to the property owner must be at least the amount of the 

approved appraisal. 

THE APPRAISAL REQUIREMENT 

The appraisal, and its review and approval by the acquiring agency, are the cornerstones on 

which the entire effort to provide property owners just compensation is built. The Uniform 

Act requires that the property be appraised before an acquiring agency begins negotiations to 

acquire it and that the amount of the approved appraisal be the basis of the offer of just 

compensation. In addition, the Uniform Act regulations in 49 CFR, Part 24, Subpart B (see 

appendix for copy) require that appraisals be reviewed and approved. However, the Uniform 

Act also gives the Lead Agency (which is FHWA) the authority to develop procedures for 

waiving the appraisal requirement in cases of non-complex, low-value acquisitions. 

APPRAISAL WAIVER AND WAIVER VALUATIONS 

Appraisal waiver provisions are found in §24.102(c) of 49 CFR. These procedures provide 

all acquiring agencies the option to waive the appraisal requirement under two 

circumstances. First, if an owner has indicated he intends to donate his property and if the 

owner releases the agency from its obligation to appraise the property. See the next chapter 

for more information on donations. The second circumstance is if the agency determines the 

property valuation problem is uncomplicated and has an anticipated value of less than 

$10,000. In such a case the agency could waive the appraisal requirement and prepare a 

waiver valuation instead. The decision process following receipt of authorization to proceed 

for when an appraisal is necessary is indicated in Figure 2. 

The final determination to waive an appraisal may include consideration of other factors, 

such as the availability of recent sales or negotiation history in the local area, besides the 

complexity of the valuation problem and the approved low value threshold that might apply. 

Your SDOT will give you detailed procedures for use of an appraisal waiver and preparation 
2009 Real Estate Acquisition Guide For Local Public Agencies 

20 5BV. Valuation   

of a waiver valuation. Keep in mind that a waiver valuation is not an appraisal, so appraisalrelated requirements, such as owner accompaniment and appraisal review which are 

discussed in the Appraisal section below, are not Federal requirements when appraisal waiver 

procedures are used. 

(Figure 2)

Note: The regulation permits the FHWA to approve setting the

low value criteria above $10,000 if the acquiring agency

agrees to offer the owner the option to request an

appraisal. You will need to check with your SDOT to find out

what waiver limit and procedures apply to your project.
Real Estate Acquisition Guide For Local Public Agencies  2009

 5BV. Valuation  21 

The person making the decision to waive an appraisal on a parcel must have enough 

understanding of appraisal principles to determine the complexity of the appraisal problem 

and enough understanding of the local real estate market to be assured the acquisition will be 

low value. The person assigned to prepare the waiver valuation is also expected to have 

sufficient understanding of the local real estate market. 

The waiver valuation must be documented and an agency official must establish the amount 

believed to be just compensation prior to making an offer to the property owner. 

APPRAISAL 

What is an appraisal? The 1987 amendments to the Uniform Act provided, for the first time 

in Federal law, a definition of an appraisal. 

The definition contains all of the elements an 

appraisal must include to support use of Federal 

funds. Any real property valuation 

documentation that does not address these 

elements is not considered an appraisal. Once an 

appraisal of fair market value is reviewed and 

approved, it becomes the basis upon which the 

agency will establish an amount it believes to be 

just compensation. Having a well-prepared, 

unbiased and thoroughly documented appraisal 

report is the most critical step toward the goal of 

providing the property owner with the required 

estimate of just compensation. 

In addition, each State and (possibly) local 

agency has developed a unique set of rules, 

regulations, and policies applicable to its 

jurisdiction. 

APPRAISAL STANDARDS AND REQUIREMENTS 

Appraisal practice is guided by The Appraisal Foundation, a non-profit educational 

organization established in 1987. In 1989 the U.S. Congress gave the Foundation and its two 

independent Boards specific authority relating to real property appraiser qualifications and 

appraisal standards. The Uniform Standards of Professional Appraisal Practice (USPAP) 

authored by the Appraisal Standards Board is generally recognized as setting the ethical and 

performance standards for the appraisal profession. 

42 USC 61 § 4601 

(13) The term “appraisal” means a 

written statement independently and 

impartially prepared by a qualified 

appraiser setting forth an opinion of 

defined value of an adequately 

described property as of a specific 

date, supported by the presentation 

and analysis of relevant market 

information. 
2009 Real Estate Acquisition Guide For Local Public Agencies 

22 5BV. Valuation   

USPAP is consistent with the appraisal requirements of Federal and most State governmental 

organizations. The jurisdictional exception rule within USPAP provides flexibility to 

accommodate laws or regulations applicable to agency appraisal requirements. The 

requirements for appraisals and appraiser performance contained in the regulations 

implementing the Uniform Act (See copy of the January 2005 Uniform Act regulation in the 

Appendix) are consistent with the standards in USPAP. 

APPRAISER QUALIFICATIONS AND STATE CERTIFICATION 

To implement appraisal standards, each State has established a State appraiser regulatory 

agency responsible for certifying and licensing real estate appraisers and supervising their 

appraisal-related activities. If your appraisal work requires use of contract (fee) appraisers, 

they must be State licensed or certified, and qualified by experience or training to perform 

the work assignment competently. 

Under the Uniform Act regulations, each SDOT must develop criteria for determining the 

minimum qualifications of appraisers, consistent with the complexity of the appraisal 

assignment. You should review the qualifications of your staff appraisers, and utilize only 

those qualified for each assignment under SDOT requirements. 

OWNER ACCOMPANIMENT 

The Uniform Act requires that the property owner (or the owner’s designated representative) 

be given the opportunity to accompany the appraiser during inspection of the property. The 

purpose of this requirement is to ensure that the owner has the opportunity to advise the 

appraiser of features of the property which might impact the valuation of the property, as 

well as allow the owner to indicate any features of the property that might not be obvious to 

the appraiser (such as the location of underground structures, i.e., wells, septic systems, 

storage tanks, utilities). 

Either your agency or the appraiser must invite the property owner to accompany the 

appraiser during the inspection of the property. To assure that this requirement is not 

overlooked, you should advise your appraiser of this responsibility. Concurrently, you 

should contact the property owner to supply him or her with the name, address, and phone 

Note: We recommend that you contact your SDOT concerning

appraiser qualifications, any technical questions about the

appraisal process or the documentation formats preferred

for appraisal reports.
Real Estate Acquisition Guide For Local Public Agencies  2009

 5BV. Valuation  23 

number of the appraiser. An invitation to accompany the appraiser should be in writing and 

allow sufficient lead time for the owner to arrange to be present or to request an alternate 

time. You should document these steps in your parcel file. If the owner declines the 

invitation, that fact should be documented in the parcel file. 

If it later becomes necessary to update the appraisal, the owner does not have to be given an 

opportunity to accompany the appraiser on the re-inspection. 

APPRAISAL CRITERIA 

Section 24.103 of 49 CFR contains the requirements for real property appraisals for 

federally-assisted programs. It references USPAP and other supplemental requirements 

developed by State and local agencies involved in real property acquisition. The acquiring 

agency is expected to be involved in development of the scope of work and defining the 

appraisal problem for each property on which an appraisal will be prepared. 

The Uniform Act requires the appraiser to disregard any decrease or increase in fair market 

value to the property caused by the project for which the property is to be acquired. The 

requirement reflects that owners should not be penalized because of a decrease in value 

caused by the proposed project nor rewarded by speculation created by knowledge of the 

proposed project. 

Appraisals must be in writing and must be retained in your parcel file. The regulations found 

in 49 CFR Part 24 provide that the format and level of documentation for each appraisal are 

relevant to program needs and follow accepted appraisal practice. At a minimum an 

appraisal must comply with the above referenced definition of appraisal and include 

sufficient data and analysis to support the value conclusion. 

Based on the scope of work and complexity of the appraisal problem the requirements as 

described in 49 CFR 24.103, must be used, whether the acquisition is of the whole property 

or only a part of it. The appraisal report should include an appropriate analysis of such 

factors as the highest and best use of the property (especially when that use is in transition or 

a change in the highest and best use will follow the acquisition), severance damages, special 

benefits, and special purpose properties. 

Real and personal property items located on the property are to be clearly identified within 

the report. In certain instances, an appraisal may include the findings of a specialty report. A 

specialty report is a study of unique valuation aspects of the property, such as zoning and 

permit compliance, machinery or equipment on the property, mineral rights or forestation, or 

items that generally do not fall within the expertise of a real property appraiser. 
2009 Real Estate Acquisition Guide For Local Public Agencies 

24 5BV. Valuation   

An appraisal should reflect SDOT appraisal requirements and contain the following items: 

 An adequate description of the physical and legal characteristics of the property being 

appraised (and in the case of a partial acquisition, an adequate description of the 

remaining property), including items identified as personal property, a statement of 

any known or observed encumbrances, title information, location, zoning, present use, 

an analysis of highest and best use, and at least a 5-year sales history of the property. 

 All relevant and reliable approaches to value (Sales Comparison, Income, and Cost). 

When sufficient market sales data is available for the specific appraisal problem, the 

agency, at its discretion, may require only the sales comparison (market data) 

approach. If more than one approach is used, there must be an analysis and 

reconciliation of those approaches, including an explanation of the final conclusion of 

value. 

 A description of comparable sales, including a description of relevant physical, legal, 

and economic factors such as parties to the transaction, source and method of 

financing, and verification by a party involved in the transaction. 

 A statement of the value of the real property to be acquired. For a partial acquisition, a 

statement of the value of any damages and benefits to the remaining real property if 

any. 

 The effective date of valuation, date of appraisal, signature, and the certification of the 

appraiser.

APPRAISAL REVIEW 

If you get an appraisal, you must have that appraisal reviewed. The Uniform Act requires 

that the estimate of just compensation be not less than the agency’s estimate of fair market 

value from the recommended appraisal. An appraisal becomes "recommended" through 

appraisal review. 

Federal requirements for appraisal review are found in 49 CFR 24.104. The regulations 

require that acquiring agencies have an appraisal review process and that a qualified review 

appraiser: 

 Examine all appraisals to assure they meet applicable appraisal requirements, 

 Seek any necessary corrections or revisions to the appraisal, and 

 Identify each report reviewed as recommended, accepted, or not accepted for use in 

establishing just compensation. 

The complexity of the appraisal problem will have a bearing on the qualifications needed by 

the review appraiser and the degree of explanation required to support the review appraiser's 

recommended value. It is the review appraiser’s responsibility to determine if the appraisal 
Real Estate Acquisition Guide For Local Public Agencies  2009

 5BV. Valuation  25 

report contains accurate data, adequate documentation, and appropriately supported 

conclusions. 

The appraisal review process and your review appraiser also should ensure that there is 

consistency among the property valuations on a project wide basis. For example, two 

residences, which are similar in most respects and from which your agency is making similar 

acquisitions, should be appraised and valued consistently. 

DEFICIENT APPRAISALS 

If an appraisal is deficient or contains errors, the review appraiser should return the appraisal 

report to the appraiser for correction, with the deficiencies noted. 

There may be instances when the review appraiser discovers minor errors (i.e., insignificant 

math errors, misspellings, and typographical errors) in an appraisal report. In those cases 

where only minor changes and corrections are warranted, they can be made by the review 

appraiser without returning the report to the appraiser. All such changes should be initialed 

and dated by the review appraiser. It is sound policy to transmit a copy of the changes to the 

appraiser in the event an update is needed at a later date. 

A review appraiser does not have to base his/her recommendation on a particular appraisal, 

although that is the preferred option. The following situation could occur and still produce 

acceptable results. 

If acceptable corrections or revisions to an appraisal report cannot be obtained 

from the appraiser, 

and the reviewing appraiser is unable to recommend the appraisal, 

and your agency determines it is impractical to obtain an additional appraisal, 

then the reviewing appraiser may develop appraisal documentation, either 

independently or by reference to acceptable relevant information developed 

by others, to support a recommended value. 

REVIEW CONSIDERATIONS 

The review appraiser should inspect the appraised property and the comparable sales 

included in the appraisal report. If a field inspection cannot be made, the review appraiser 

should document the reason(s) in the review report. The review appraiser should examine 

the appraisal report to determine that it: 

 Follows accepted appraisal principles and techniques in the valuation of real property 
2009 Real Estate Acquisition Guide For Local Public Agencies 

26 5BV. Valuation   

in accordance with State and Federal requirements. 

 Has been completed in accordance with the agency’s appraisal specifications. 

 Contains or makes reference to the information necessary to explain, substantiate, and 

thereby document the conclusions and estimate of fair market value. 

 Contains an identification or listing of the buildings, structures, and improvements on 

the land as well as the fixtures considered part of the real property and items identified 

as personal property. 

 Includes consideration of compensable items, damages and benefits, if any, and does 

not include compensation for items non-compensable under State law. 

 Contains an estimate of fair market value for the acquisition and, for partial 

acquisitions, an allocation of the estimate of fair market value for the real property and 

for damages, if any, to the remaining property. 

APPRAISAL REVIEW CERTIFICATION AND REPORT 

The reviewing appraiser is also required to sign a certification that: 

 Sets forth the recommended or approved value of the property, 

 Identifies the appraisal report(s) reviewed, and 

 States that the reviewer has no interest, present or future, in the property being 

reviewed. 

Upon completion of the appraisal review, the review appraiser should place in the agency’s 

parcel file a signed and dated report setting forth: 

 The amount of fair market value in the recommended appraisal and the recommended 

estimate of just compensation, including an allocation of compensation for the real 

property acquired and, if applicable, of damages to remaining real property; 

identification of buildings, structures, and other improvements on the land; and 

identification of fixtures considered part of the real property being acquired. 

 Whether, as part of the appraisal review, there was a field inspection of the parcel to be 

acquired and of related comparable sales. If no field inspection was made, the 

reason(s) should be stated. 

 That the review appraiser has no direct or indirect present or contemplated future 

personal interest in the property or in any monetary benefit from its acquisition. 

 That the recommended estimate of just compensation has been reached independently, 

without collaboration or direction, and is based on appraisals and other factual data. 
Real Estate Acquisition Guide For Local Public Agencies  2009

 5BV. Valuation  27 

The degree of detail provided in the review appraiser’s written review report should reflect 

the complexity of the appraisal problem and report under review. 

APPRAISAL REVIEW CONTRACTING 

Historically, the SDOT appraisal review function has been the responsibility of staff review 

appraisers and included the responsibility of approving the appraisal and estimating just 

compensation. 

More recently, SDOTs, and especially local agencies, have hired contract review appraisers 

to perform the appraisal review function. The Uniform Act makes it clear that the agency 

must establish an amount believed to be just compensation. 

The designated agency official can consider the recommended and accepted appraisals based 

on the findings of the contract review appraiser and any other known value indicators in 

setting the approved estimate of just compensation. 

APPROVED FAIR MARKET VALUE AND JUST COMPENSATION 

Following review the recommended appraisal provides the fair market value of the property 

needed for the project. This is the minimum amount that must be offered to the owner 

provided it is approved by an agency official. This may not necessarily constitute just 

compensation as there are situations where property is so unique in nature; or the appraisal, 

although properly prepared, does not estimate fair market value with any certainty; or the 

market value does not adequately measure just compensation. In these instances an amount 

above the recommended appraisal amount could be approved using other valuation evidence 

in order that the initial offer to the owner more accurately reflects just compensation. 

Note:   An acquiring agency may not delegate the function of

determining the estimate of just compensation to be offered

to the property owner to someone outside the agency

including a contract review appraiser. This is a critical

point that must not be overlooked.

Note: The required certification forms for the appraiser and

review appraiser should be available in your SDOT FHWA

approved Right­of­Way or Appraisal Manual.
2009 Real Estate Acquisition Guide For Local Public Agencies 

28 5BV. Valuation   

Typically, it is the review appraiser who initiates the consideration that just compensation be 

based on considerations other than the approved appraisal. Depending on who is performing 

the appraisal review and agency policy, the appraisal review may include an estimate of just 

compensation; and that estimate may be based on more than the approved appraisal. In any 

case, agency files must contain documentation and justification for any amount of just 

compensation that is established. 

NOTES:
Real Estate Acquisition Guide For Local Public Agencies  2009

VI. ACQUISITION 

Acquisition is one of the most sensitive aspects of an agency's activities because it involves 

direct personal contact with the people affected by a project. Yet it is imperative that 

agencies acquire property interests expeditiously to facilitate public improvement 

construction projects. 

In obtaining needed properties, your primary goal should be to acquire through negotiation 

rather than through the use of condemnation authority. Acting as an acquisition agent or 

negotiator, you play an important role in achieving this goal. Negotiations should be 

conducted by a qualified member of the agency's staff. In cases where you have insufficient 

staff to perform negotiations, fee negotiators may be hired by contract (see Chapter IV, 

Administrative Matters, for information on FHWA contracting requirements). 

B

 6BVI. Acquisition  29 

ASIC ACQUISITION REQUIREMENTS 

The following is a list of the basic acquisition requirements for agencies receiving Federal 

financial assistance. These list items, as well as others, are discussed in this chapter. 

1. Personally contact each real property owner or the owner's designated 

representative in order to explain the acquisition process to the property owner, 

including the right to accompany the appraiser during inspection of the property, 

and provide the owner with a written notice of the agencies intent to acquire. 

2. Provide the owner with a written offer of the approved estimate of just 

compensation for the real property to be acquired and a summary statement of the 

basis for the offer. 
2009 Real Estate Acquisition Guide For Local Public Agencies 

30 6BVI. Acquisition   

3. Give the property owner an opportunity to consider the offer. 

4. Conduct negotiations without any attempt to coerce the property owner into 

reaching an agreement. 

5. Provide at least 90 days written notice of the date by which the move is required. 

6. Pay the agreed purchase price before requiring the property owner to surrender 

possession of the property being acquired. 

PERSONAL CONTACT 

Each owner is to be provided a written notice of the 

agencies intent to acquire. The acquiring agency 

should make all reasonable efforts to personally 

contact each real property owner or the owner's 

designated representative and schedule an appointment 

at a convenient time and place. The purpose of this 

contact is to explain the negotiation process to the 

property owner as well as the responsibilities of both 

the acquiring agency and the property owner. One 

way to accomplish this is to provide the property 

owner with an acquisition brochure. The FHWA’s 

Acquisition brochure (Figure 3) is available from 

either your SDOT or our website at: 

http://www.fhwa.dot.gov/realestate/index.htm

This kind of personal contact can be of great 

importance as the negotiator strives to attain rapport 

with the property owner, which can help inspire 

confidence in the acquisition process and the fairness 

of the offer being made. 

If all reasonable efforts to make personal contact with an owner fail, or if personal contact is 

impracticable, for example, such as when an owner lives in another State, the owner may be 

contacted by certified mail or other means appropriate to the situation. These alternative 

procedures (see following section), may be utilized under certain conditions. Some States 

may have additional statutory requirements regarding alternative processes. 

Note:   FHWA recommends you contact your SDOT with any

questions regarding the acquisition process.

(Figure 3)
Real Estate Acquisition Guide For Local Public Agencies  2009

 6BVI. Acquisition  31 

FIRST OFFER BY MAIL 

This is an alternative approach to contacting property owners in person. In this approach the 

initial offer to the property owner is made by mail. The mailing package consists of the offer 

letter, the summary statement of just compensation, a deed or option form, and a property 

plat or sketch showing the effect of the acquisition. 

Within a reasonable period after the mailing, you should follow up by telephone. A 

telephone conversation provides the property owner with a mechanism to obtain answers to 

questions or an opportunity to exercise the option of setting up an appointment for personal 

contact. All requests for personal contact by property owners should be honored.

When personal contact does occur, the property owner should be able to discuss substantive 

issues, having had the offer in hand for several weeks. From this point on negotiations 

should follow the normal sequence. 

Generally, the mail offer approach has resulted in positive experiences. It saves both 

administrative costs and time on minor claims in which no dispute has arisen over the 

amount of the offer. The owner signs the deed or deed option form in a timely manner which 

enables the agency to focus negotiation efforts on other parcels. 

PROMPT WRITTEN OFFER 

Once the amount of just compensation has been established (see Chapter V, Valuation), a 

prompt written offer must be made to the property owner. The offer must include a 

description of the real property or real property interests being acquired and the specific 

purchase price being offered. Along with the offer, the acquiring agency must provide the 

property owner a Summary Statement of Just Compensation which explains the basis for the 

offer and provides information necessary for the owner to make a reasonable judgment 

Note:   If the offer is based on a waiver valuation and exceeds

$10,000, the owner must be advised of his/her right to

request the agency prepare an appraisal.

Note:   The use of mail offers may not be used on parcels where

relocation is involved.
2009 Real Estate Acquisition Guide For Local Public Agencies 

32 6BVI. Acquisition   

concerning the amount of the offer. In addition to the offer amount and the property location, 

the statement should include an identification of buildings, structures, and other 

improvements to be acquired, including removable building equipment and trade fixtures 

(see Owner Retention of Improvements, p. 43) appraised as part of the real property and 

those considered to be personal property. The statement should identify any separately held 

ownership interest in the property, e.g., a tenant-owned improvement (see Tenant-Owned 

Improvements, p. 43), and indicate, if appropriate, that such interest is not covered by the 

offer. 

The agency may include additional information that it deems appropriate. 

OWNER OPPORTUNITY TO CONSIDER OFFER 

You must give the property owner a reasonable opportunity to consider the offer. This not 

only provides the owner a chance to thoroughly review and evaluate the offer (including the 

opportunity to obtain professional advice or assistance), it eliminates any appearance of 

coercion (see following paragraph). It also provides a chance for the owner to present 

material he or she believes is relevant to determining the property's value, and to suggest 

modifications to the proposed terms and conditions of the purchase. You must consider the 

owner's presentation. 

NO COERCIVE ACTION 

Negotiations must be conducted free of any attempt to coerce the property owner into 

reaching an agreement. For example, the negotiator should be careful not to imply that the 

negotiation, and in particular the offer, is a "take it or leave it" proposition. Similarly, the use 

of condemnation as a threat must be avoided. Other examples of actions the acquiring 

agency must avoid include advancing the time of condemnation, deferring negotiations, or 

delaying the deposit of funds with the court to coerce an agreement with the property owner. 

90-DAY NOTICE 

One of the basic protections provided by the Uniform Act is that no displaced person may be 

required to move without at least 90 days' written notice of the date by which such move is 

required. We discuss this requirement as it relates to relocation in Chapter VII, Relocation 

Assistance, but it also has an acquisition aspect. Simply put, this statutory requirement 
Real Estate Acquisition Guide For Local Public Agencies  2009

 6BVI. Acquisition  33 

places limits on the scheduling of construction. An agency must schedule project 

construction so that no displaced person will have to move without being afforded the 90 

days' notice described above. 

NEGOTIATOR LOG 

Experienced negotiators tell us that a log of conversations and other contacts or interactions 

between themselves and property owners or their representatives is an essential tool and 

resource in acquiring real property. As a 

minimum, it provides the negotiator with 

an accurate record of communications, 

thus helping to avoid misunderstandings, 

hazy recollections, and unnecessary 

repetition. 

One of the functions of a negotiator's log 

is to document that negotiations have 

been conducted in an appropriate 

manner. Beyond the negotiating arena, 

acquiring agencies increasingly are being 

required by courts to demonstrate such 

compliance. Properly completed, the 

negotiator's log offers key documentation 

in these cases. 

Sometimes the initial negotiator may not complete the negotiations for a particular parcel. 

Without a complete record of preceding efforts, subsequent negotiations by a new negotiator 

will be more difficult and probably more time-consuming. In addition, the record contained 

in the log may assist in determining the prospects for a successful administrative or legal 

settlement. This supports the Uniform Act's goals of encouraging and expediting agreements 

with owners, avoiding litigation, relieving congestion in the courts, assuring consistent 

treatment for owners in public improvement programs, and promoting public confidence in 

government's land acquisition practices. 

The negotiator should maintain adequate records of negotiations or other contacts for every 

parcel. The negotiator's log or record should be written in permanent form and completed 

within a reasonable time after each contact with the property owner. Information for each 

contact should include the date and place of contact, parties of interest contacted, offers made 

(dollar amounts), counteroffers, list of reasons settlement could not be reached, and any other 

pertinent data. The log or report should be signed and dated by the assigned negotiator. 

Upon completion of negotiations, the above records become part of the project parcel file. 
2009 Real Estate Acquisition Guide For Local Public Agencies 

34 6BVI. Acquisition   

When negotiations are unsuccessful and further attempts to negotiate are considered futile, 

the negotiator's record should include documentation of the negotiator's recommendations for 

appropriate future action. 

NEGOTIATION OPTIONS 

In discussing acquisition, we have stated repeatedly that your agency's prime goal in 

obtaining real property should be to acquire through negotiations rather than condemnation 

and litigation. This approach reflects the Uniform Act requirement to "... make every 

reasonable effort to acquire expeditiously real property by negotiation." The administrative 

cost and time expended by acquiring property through litigation is significant and places 

additional burdens on a court system that is already overloaded. 

However, it is necessary to recognize the limitations of the appraisal process. This process, 

while structured and professional, is by nature not scientifically precise. Moreover, in many 

cases property owners are suspicious of governmental acquisitions and may believe that just 

compensation offers are biased. Recognizing these factors, it may be both useful and 

appropriate to consider other negotiation options if an agreement with a property owner 

cannot be reached based on the amount of the initial offer. 

One such option is the administrative settlement. An administrative settlement provides the 

flexibility needed to resolve differences of opinion as to the amount of compensation. 

Another approach, Alternate Dispute Resolution (ADR), may be helpful in removing 

communication or other barriers to agreement. Mediation, one of the many ADR techniques, 

has often been used to facilitate the acquisition of right-of-way by public agencies. Another 

option is the Legal Settlement, involving a resolution of the dispute after condemnation has 

been filed but prior to court award which is discussed later in the Condemnation section. 

We discuss the first two options in greater detail below. FHWA recommends that, in 

appropriate situations, both administrative settlements and ADR be considered prior to an 

agency initiating condemnation. 

ADMINISTRATIVE SETTLEMENTS 

An administrative settlement is a settlement which occurs prior to the invoking of the 

agency's condemnation authority. It typically is more than the agency's approved offer of 

just compensation but not excessively so, considering the expected cost of litigation and the 

potential cost of project delays. An administrative settlement should be considered when 

reasonable efforts to negotiate an agreed acquisition price have failed but there appears to be 

the potential for agreement. 
Real Estate Acquisition Guide For Local Public Agencies  2009

 6BVI. Acquisition  35 

An administrative settlement goes beyond the appraisal and appraisal review process. Your 

agency designates an official who has the authority to approve administrative settlements. 

The designated official should give full consideration to all pertinent information. He or she 

prepares a written justification which indicates that available information (e.g., appraisals, 

including the owner's appraisal if one is available, recent court awards, estimated trial costs, 

and valuation problems) supports such a settlement, and that he or she approves it as being 

reasonable, prudent, and in the public interest. The extent of the written explanation is a 

judgmental determination and should be consistent with the circumstances and the amount of 

money involved. You should maintain appropriate documentation in the parcel file to 

support this action. 

ALTERNATE DISPUTE RESOLUTION - MEDIATION 

Often contesting parties, unable to reach an agreement, turn to third parties for resolution of 

their disagreement. One such possibility, under the broad umbrella of ADR, is mediation. 

Mediation may not be appropriate in every contested case, yet acquiring agencies should give 

consideration to its potential use when confronted with an acquisition dispute. A decision to 

employ mediation should be made on a case-by-case basis. Some of the factors to consider 

include the property owner's acceptance of mediation, the uniqueness and/or complexity of 

the acquisition, the specific technical issues in dispute, the agency's historic success in 

condemnation (or lack thereof), and the potential time and administrative cost savings. For 

example, because of difficult appraisal and other technical issues involved, mediation may be 

a particularly worthwhile tool in attaining settlement on parcels encumbered with hazardous 

waste. 

PAYMENT BEFORE POSSESSION 

Under the Uniform Act, no owner may be required to surrender possession of real property 

before payment is made available. If an amicable settlement between the property owner and 

the acquiring agency is reached prior to the need to initiate condemnation, the agency will 

pay the owner the agreed-upon purchase price. Only in exceptional circumstances, with the 

property owner's voluntary consent, can the agency obtain a right-of-entry for construction 

purposes before making payment available to the owner. 

If the owner and the agency cannot reach agreement with the owner the agency may have to 

institute condemnation proceedings. 

Note:   The expense of employing a professional mediator or other

ADR specialist is considered to be a legitimate project cost.
2009 Real Estate Acquisition Guide For Local Public Agencies 

36 6BVI. Acquisition   

CONDEMNATION 

When all attempts to negotiate an agreement, including the use of administrative settlement 

or ADR procedures, have failed it may be necessary for your agency to acquire the property 

by exercising its power of eminent domain. At this point, the acquisition should be turned 

over to legal counsel to institute condemnation proceedings. 

ROLE OF LEGAL COUNSEL 

Successful condemnation is dependent on effective coordination. Careful attention to 

eminent domain considerations is vital to any acquisition program. Legal counsel should be 

an integral part of the acquisition team from the beginning of the project. During the 

planning and design stages, legal personnel may be able to detect complex title or valuation 

pitfalls which can be avoided or minimized during the appraisal process. They should be 

called upon for advice on such matters as the law on benefits, before and after appraisals, 

distinguishing whether an item is personalty or realty, and the compensability of particular 

items. 

Counsel should be given an opportunity to offer advice prior to the determination to 

condemn. Once a case is referred for condemnation, counsel must have all pertinent 

information relative to the case, including facts on construction of the project and its effect 

on the property, information gathered by negotiators, sound appraisals, and competent 

witnesses. Counsel should know the weak points as well as the strong points of each case. 

In addition, counsel should be furnished with and kept current on Federal and State 

requirements concerning documentation to ensure that there is appropriate justification for 

the actions taken. 

CONDEMNATION PROCEEDINGS 

Condemnation proceedings take place in a State or county court and, as we have noted 

previously, are governed by State law. This means that State law will determine not only the 

condemnation process but also the various items for which compensation must (or may not) 

be paid by the acquiring agency. 

In some jurisdictions, the condemner may be required to prove necessity for the acquisition 

or appropriation of the condemned property. This may only be required if a property owner 

challenges the proposed acquisition of his or her real property. Necessity is usually proved 

by offering engineering and/or design plans to substantiate the need to acquire. 
Real Estate Acquisition Guide For Local Public Agencies  2009

 6BVI. Acquisition  37 

In many States, prior to a trial before a judge or jury, the law provides the property owner a 

hearing before a board of commissioners or "viewers" who have been appointed by the court. 

Both the property owner and the agency are permitted to present information to the board, 

which forms the basis of the board's eventual award of just compensation. Once the board 

makes its determination, the property owner and the acquiring agency each may accept or 

reject it. If either party rejects the award, the court will schedule a trial. 

When filing condemnation in most States the agency requests possession. In these instances 

the full amount of the State’s offer will be deposited with the court. This amount may be 

withdrawn by the owner without jeopardizing his or her rights in the condemnation 

proceedings. 

LEGAL SETTLEMENTS

In preparing a case, the agency trial attorney will discuss the taking with the acquisition 

team, the appraiser, the review appraiser, and other potential expert and lay witnesses to 

decide whether to recommend a legal settlement or go to trial. To familiarize themselves 

with the facts of the case, counsel should carefully analyze the appraisal of the property with 

the appraiser. This analysis should include an inspection of the property as well as any other 

comparable properties that may be used during the trial. The appraisal must conform to the 

date of valuation specified under State and local eminent domain law and be based on a 

consideration of all compensable elements of damage under applicable law. Counsel should 

attempt to have the appraisers reconcile any factual or legal differences without influencing 

their independent exercise of judgment in any way. On the whole, careful attention should 

be given to any element which counsel concludes is relevant to the case. 

As noted above, legal settlements are a negotiation option available following a 

condemnation. The negotiations are between the acquiring agency's legal staff and the 

property owner and/or his or her attorney. These types of settlements may result in stipulated 

settlements approved by the court in which the condemnation action has been filed. The 

appropriate agency file must be documented whenever a legal settlement is made, and the 

rationale for the settlement set forth in writing. Legal settlements based on new or revised 

appraisal data as the principal justification must be coordinated with and approved by the 

responsible official of the acquiring agency. All pertinent data should be reviewed by the 

agency's real estate office to ensure that adequate documentation for Federal-aid funding is 

provided. 
2009 Real Estate Acquisition Guide For Local Public Agencies 

38 6BVI. Acquisition   

COURT AWARDS 

If no settlement is reached, a court trial will be required. Each side will present arguments in 

support of its position on the value of the property. The court will set an amount it 

determines to be just compensation and order the agency to pay that amount. 

ALTERNATIVE MEANS OF PROPERTY ACQUISITION 

In previous sections of this chapter we have discussed acquiring property through negotiation 

or condemnation, each ending with the payment of just compensation. While every property 

owner is entitled to receive just compensation, there may be instances where property is 

acquired through donation, donation in exchange for construction features, or dedication. 

We will discuss each of these topics below. 

DONATIONS 

Most of the time when an agency needs to acquire real property for a Federal or federally 

assisted project, it will acquire that property through negotiations with the owner or through 

the exercise of its power of eminent domain (condemnation). The preceding portions of this 

chapter have been concerned with those situations. Sometimes, however, and for various 

reasons, the owner is willing to give all or a portion of the needed property to the acquiring 

agency for less than what constitutes just compensation. Such an acquisition is referred to as 

a donation. 

When an owner is willing to make a donation, that individual or entity retains specific rights 

that must be respected. For example, you must provide the owner an explanation of the 

acquisition process, including the right of having your agency appraise the property and to 

receive an offer of just compensation. Only after receiving such an explanation may the 

property owner waive these rights and the agency accept the donation. The explanation 

should be given in a manner that is non-technical and easily understood. 

In most cases appraisal of the real property is advantageous both to the agency and the 

property owner. For example, on a federally funded project, an agency may need an 

appraisal to determine the donation's value as a credit against the agency's matching share of 

project cost (see Cost-Sharing/Credit section of Chapter IV, Administrative Matters, for more 

detail on credits). As with all acquisitions, valuation of real property donations should be 

done in accordance with applicable Federal regulations and approved agency policy. For 

properties with a low estimated fair market value where the valuation problem is 
Real Estate Acquisition Guide For Local Public Agencies  2009

 6BVI. Acquisition  39 

uncomplicated, the acquiring agency may waive the appraisal in accordance with the SDOT's 

approved procedures (for further information see the Appraisal Waiver and Waiver 

Valuations section of Chapter V, Valuation). 

Similarly, the property owner may need to know the value of the donated property for tax 

purposes. The Internal Revenue Service requires that an appraisal be prepared by a 

disinterested, unbiased third party when an owner is claiming a donation on his or her tax 

forms. While the acquiring agency is not obligated to use appraisers other than its own staff, 

the agency may find it prudent to advise the property owner to select a fee appraiser and offer 

to pay the appraisal fee. Paying the cost of the appraisal may help to facilitate the donation. 

DONATIONS IN EXCHANGE FOR CONSTRUCTION FEATURES 

An acquiring agency may accept a property owner's offer to donate a whole or part of a 

property in exchange for services or facilities that will benefit that owner. 

For instance, an agency may require a narrow strip of land for a street-widening project. The 

property owner and the agency may negotiate an agreement that would require the agency to 

provide an additional driveway, entrance, or other features in lieu of cash compensation. The 

agency should compare the donated property's value and the cost of additional construction 

features to ensure that construction costs do not exceed the value of the donated real 

property. 

DEDICATIONS 

Dedication is the process of reserving a parcel of land for a future public use. A dedication is 

usually made as part of the subdivision or zoning approval process. 

An acquiring agency may accept, as part of a Federal or federally assisted project, a parcel 

that a developer has dedicated or proposes to dedicate. The agency also may accept land 

Note:   Acquiring agencies should be aware that donations of real

property must be considered during the environmental

coordination process discussed in Chapter III. Additionally,

before accepting a donation, acquiring agencies should

have a process for determining whether or not the

property is contaminated or has hazardous wastes present.

Your SDOT should be contacted for assistance and advice.
2009 Real Estate Acquisition Guide For Local Public Agencies 

40 6BVI. Acquisition   

dedicated pursuant to the local planning process or at the request of the property owner for 

land use concessions that are consistent with applicable local and Federal project and 

environmental regulations. 

Real property obtained through normal zoning or through subdivision procedures requiring 

dedication of strips of land in the normal exercise of police power, is not considered to be a 

taking in the constitutional sense and does not call for payment of just compensation or 

compliance with the Uniform Act. Land acquired in this manner may be incorporated into a 

federally assisted project without jeopardizing participation in other project costs and may be 

eligible for obtaining the cost sharing/credit described in Chapter 4. 

ADDITIONAL CONSIDERATIONS 

The following represent a number of additional areas which impact the acquisition process 

. 

ASSESSMENTS 

An assessment is a tax or fee levied on properties that will benefit directly from a public 

construction project. 

When Federal funds participate in a project, an acquiring agency (you) may not levy a special 

assessment solely against those properties experiencing acquisitions for the public 

improvement for the primary purpose of recovering the compensation paid for the real 

property. This recapture of compensation would constitute a form of forced donation, which 

is coercive and thus not permitted under the Uniform Act. 

However, an acquiring agency may levy an assessment to recapture funds expended for a 

public improvement, provided the assessment is levied against all properties in the taxation 

area or in the district being improved and provided it is consistent with applicable local 

ordinances. 

Note:   Any dedication undertaken to circumvent Federal

requirements is not acceptable and could jeopardize project

funding.
Real Estate Acquisition Guide For Local Public Agencies  2009

 6BVI. Acquisition  41 

FUNCTIONAL REPLACEMENT 

Sometimes the real property to be acquired for a highway project includes a public facility 

such as a school or a police or fire station, the loss of which would have an adverse impact on 

essential public services for the affected community. FHWA recognizes that in such 

circumstances an alternative method of acquisition, functional replacement, may be needed 

to serve the public interest. As the term implies, functional replacement provides for the 

replacement of the public facility in question, and its use is limited to publicly owned, 

public use facilities.

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facility or add functions or services not present at the acquired site, FHWA participation 

generally will be limited to the level of function provided by the original facility. 

The use of the functional replacement approach is at the option of your agency, with the 

concurrence of your SDOT, and must be permissible under State law. FHWA must concur 

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Due to the complexities usually encountered in the construction of a replacement facility, 

early and frequent consultation among the community, the State, and FHWA is essential. 

The parties should develop an agreement setting forth appropriate conditions and

FHWA review and approval of the Project Specifications and Estimates (PS&E). 
2009 Real Estate Acquisition Guide For Local Public Agencies 

42 6BVI. Acquisition   

INVERSE CONDEMNATION 

Inverse Condemnation is the legal process by which a property owner may claim and receive 

compensation for the acquisition of or damages to his property as the result of public 

 a project may result in making the 

property owner think an acquisition has occurred, even without physical taking of the 

NECONOMIC REMNANTS 

improvement. This may occur when an agency, either actually or allegedly, acquires a 

property or property interest without either an offer to acquire through negotiations or the 

institution of condemnation proceedings. For example, the design and construction of a road 

inadvertently results in a property owner losing access to his property. The access to the 

property can be denied in a number of ways including the fencing of property, denial of 

access across easements, or the denial of access to land caused by regrading of public rightof-way. The property owner in this scenario is not contacted or compensated because the 

loss of access was not planned or anticipated by your agency. The Uniform Act prohibits an 

agency from intentionally making it necessary for the property owner to begin legal 

proceedings to prove an acquisition occurred. Planning and project development activities 

normally do not constitute acquisition without some other action that substantially deprives 

the owner of the use of and enjoyment of the property. 

Inadvertent action or unreasonable delay in beginning

property. Timely project planning and communication with property owners should prevent 

this situation from occurring. 

U

An uneconomic remnant is a portion of a larger property determined by an acquiring agency 

to have little or no utility or value to its owner because of a partial acquisition of the larger 

s whether it 

has utility or value to the present owner. The acquiring agency must make this 

 regardless 

of whether the remnants are incorporated into the highway right-of-way. Uneconomic 

portion. If the acquisition of only part of a property would leave the owner with an 

uneconomic remnant, the head of your agency must offer to acquire the remnant. 

An uneconomic remnant may still have some utility or value. The ultimate test i

determination. The agency is obligated only to offer to purchase the uneconomic remnant; 

the owner may decline the offer. The offer to purchase an uneconomic remnant may be 

included in the formal written offer for the portion of the property needed for the public 

project or, at the acquiring agency's discretion; it may be made in a separate offer. 

For highway projects, Federal funds may be used to acquire uneconomic remnants

remnants incorporated within right-of-way limits lose their separate identity and become part 

of right-of-way. Should it no longer be needed for highway purposes, the uneconomic 

remnant would be disposed of in the same manner as other portions of highway right-of-way. 
Real Estate Acquisition Guide For Local Public Agencies  2009

 6BVI. Acquisition  43 

While the preceding describes Uniform Act requirements, State laws on eminent domain 

vary in their treatment of uneconomic remnants and must be consulted before an acquiring 

agency makes an offer. 

TENANT-OWNED IMPROVEMENTS 

When you acquire a property that is occupied by a tenant, you must consider the tenant's real 

operty owner. This is most often relevant in the 

displacement of tenant-operated businesses which have erected a structure or installed other 

 from the tenant should follow the same procedures as 

those for acquiring real property from the owner. 

f the whole property, or its removal value, 

whichever is greater. Removal value is considered to be the same as salvage value. 

 The tenant-owner assigns, transfers, and releases to the acquiring agency all of the 

s of the tenant's lease. Once again, we recommend that you 

consult with your SDOT concerning payment for tenant-owned improvements. 

WNER RETENTION OF IMPROVEMENTS 

property interests as well as those of the pr

real property improvements. The Uniform Act requires that such tenants receive just 

compensation for those improvements if they will be removed or otherwise adversely 

affected by the proposed acquisition. 

An improvement located on the property to be acquired should be treated as real property 

regardless of ownership. Acquisition

Just compensation for a tenant-owned improvement should be based on the amount that the 

improvement contributes to the fair market value o

No payment should be made to a tenant-owner for improvements unless: 

tenant-owner's right, title, and interest in the improvement; 

 the owner of the real property on which the improvement is located disclaims all 

interest in the improvement; and 

 the payment does not result in the duplication of any compensation otherwise 

authorized by law. 

The compensation payable for tenant-owned improvements varies from State to State and 

may be affected by term

O

The owner of improvements located on real property being acquired for a public project may 

be offered the option of retaining those improvements at a value determined by the acquiring 
2009 Real Estate Acquisition Guide For Local Public Agencies 

44 6BVI. Acquisition   

agency. The agency's retention value determination should be available at the initiation of 

negotiations or within a reasonable period of time after the owner expresses an interest in 

retention. 

Retention value should be established by property management personnel through 

comparative analysis of improvements sold at public sale or another valuation method. Just 

responsible for removing his or her improvement prior to the initiation of 

construction. 

HARDSHIP AND PROTECTIVE BUYING 

compensation paid to the owner should be no less than the difference between the amount 

determined as just compensation for the owner's entire interest and the retention value of the 

improvement. 

The owner is 

Ordinarily, the acquisition of properties for a federally assisted project does not begin before 

the completion of the environmental review process. However, in extraordinary cases or 

 owner alleging an undue hardship caused by the impending 

project due to his or her inability to sell the property at fair market value within a time 

ent 

way 

ual circumstances, and additional 

requirements must be met for it to be used. Such requests may be submitted and approved 

 agency has given official notice to the public that it has selected a particular 

location to be the preferred or recommended alignment for a proposed highway, or, 

emergency situations, an acquiring agency may request that FHWA approve Federal 

participation in acquiring a particular parcel or a limited number of particular parcels within 

the limits of a proposed highway corridor prior to such completion. The reasons for such 

requests include the following: 

 A request from a property

period typical for similar properties not affected by the project. Undue hardship, in 

such cases, means a hardship particular to the owners/parcels in question and not 

shared in general by all the owners of property to be acquired for the project. 

 The acquiring agency's decision to acquire in order to prevent imminent developm

and the associated increased costs which would tend to limit the choice of high

alternatives. 

As noted above, this procedure is to be used only in unus

only if: 

 the

o an opportunity for public involvement has been provided; 

 the project is included in a currently approved STIP; and 
Real Estate Acquisition Guide For Local Public Agencies  2009

 6BVI. Acquisition  45 

 the agency has documented its determination that the acquisition is in the public 

OTES:

interest and is necessary 

N

Note: Hardship acquisition and protective buying procedures

may not be used in connection with properties subject to

the provisions of 49 U.S.C. 303, commonly referred to as

Section 4(f) [parks] or 16 U.S.C. 470(f) [historic properties],

until the required Section 4(f) determinations and the

procedures of the Advisory Council on Historic Preservation
2009 Real Estate Acquisition Guide For Local Public Agencies 

46 6BVI. Acquisition   

NOTES: 

. 
Real Estate Acquisition Guide For Local Public Agencies  2009

 7BVII. Relocation Assistance  47 

VII. RELOCATION ASSISTANCE 

When land needed for a public project is occupied, it may be necessary to displace the 

occupants, who may include individuals, families, businesses, farms, or even non-profit 

organizations. The Uniform Act and the government-wide rule prescribe certain benefits and 

protections for persons displaced by public projects funded, at least in part, with Federal 

money. 

Among other benefits, the Uniform Act provides relocation payments for persons displaced 

from their residences, businesses, farms, or even non-profit organizations. These payments 

include moving expenses and certain supplements for increased costs at a replacement 

location. In addition, the Act provides protections for displaced persons such as requiring the 

availability of replacement housing, minimum standards for such housing, and requirements 

for notices and informational materials. Also, the Act entitles displaced persons to certain 

"advisory services" to help them move successfully. 

The provisions of the Uniform Act concerning relocation are found in Title II which contains 

the following "Declaration of Policy.” 

It is important to understand that successful relocation is essential not only to the welfare of 

those to be displaced but to the progress of the entire highway project. 

The relocation program consists of four main components: Relocation planning, notices, 

advisory services, and payments. 

Uniform Act – Title II

"This title establishes a uniform policy for the fair and equitable

treatment of persons displaced as a direct result of programs or

projects undertaken by a Federal agency or with Federal financial

assistance. The primary purpose of this title is to ensure that such

persons shall not suffer disproportionate injuries as a result of

programs and projects designed for the benefit of the public as a

whole and to minimize hardship of displacement on such persons."
2009 Real Estate Acquisition Guide For Local Public Agencies 

48 7BVII. Relocation Assistance   

RELOCATION PLANNING 

Successful relocation requires planning. This is especially true for businesses that need 

replacement sites that will fit their operations and be convenient to their clientele. 

Businesses must be given relocation assistance as required by the Uniform Act. Housing 

resources must meet the needs of displaced residents in terms of size, price, location, and 

timely availability. Advisory services and various notices, some with specific timing 

requirements, must be provided. Payments must be made to displaced persons at the time 

they are needed to obtain replacement housing. Often coordination with other displacing 

programs or agencies is necessary. These things do not happen automatically; they require 

planning by the agency. Since the relocation of occupants is one of the major potential 

impacts of any project, the earlier such impacts are considered the easier it will be eventually 

to deal with any problems encountered. Moreover, early consideration of relocation impacts 

may influence the alignment eventually chosen for a project. Lastly, if project displacement 

involves persons with special needs such as the disabled or the elderly, particular attention 

will have to be given to advisory services. 

NOTICES 

The Uniform Act and the regulations recognize the need of displaced persons for information 

about the relocation process and require that certain information be provided to them. This 

information is provided through personal contact and through a series of notices for the 

purposes of minimizing disruption and maximizing the chances of a successful relocation. 

The following are the primary notices that must be delivered as part of the program: 

1. General Information Notice. This notice is to be 

provided to potential displaced persons at an early 

stage of the project. It is to be written in easily 

understood language and, if appropriate, in a foreign 

language. One common approach is to hand out an 

informational brochure at the public hearings for the 

project. The FHWA relocation brochure (cover 

shown in Figure 4) is available from the FHWA 

website or your SDOT. The purpose of the notice is 

to provide a general description of the agency's 

relocation program, including benefits, 

responsibilities and protection. Detailed information 

about the content of this notice may be found in the 

government-wide (Uniform Act) regulations at 49 

CFR 24.203. 

(Figure 4)
Real Estate Acquisition Guide For Local Public Agencies  2009

 7BVII. Relocation Assistance  49 

2. Notice of Relocation Eligibility. This notice is provided as soon as it has been 

determined that particular persons will be displaced by the project. The notice 

informs the occupant that he or she will be displaced and, therefore, will be eligible 

for relocation benefits, as applicable. The trigger for providing this notice is based on 

whichever of the following events occur first. 

 The notice of intent to acquire in § 24.203(d), 

 The initiation of negotiations in § 24.2(a)(15), or 

 The date the property is acquired. 

3. 90-Day Notice. The 90-day notice is a basic protection of the Uniform Act. As part 

of the general information notice described above, the displacing agency must inform 

potential displaced persons that they will not have to move without at least 90 days' 

written notice. The 90-day notice, itself, will come later, when the agency's plans for 

requiring occupants to move have become more precise. At this time (and for 

residential displacements, only after ensuring that at least one comparable 

replacement dwelling is available), the agency will inform a person to be displaced, at 

least 90 days in advance, of the earliest date by which he or she may be required to 

move. This means, for example, that if the agency believes it may require an 

occupant to move by July 15, it must inform him or her, in writing, at least 90 days in 

advance, i.e., April 16. In practice, the agency may not actually require the move 

until after July 15. Conversely, the occupant may choose to move before that date. 

In either case, the occupant does not have to move before July 15 and the requirement 

to provide 90 days' notice has been satisfied. 

Some agencies choose an optional method of delivering the 90-day notice. They 

deliver a 90-day notice which not only meets the requirements described above but 

also states that they will deliver another notice 30 days prior to the day that the 

occupant will be required to move.

Note: There can be exceptions to the 90­day notice requirement,

but only for emergency situations involving health, safety,

or similar reasons which make a delay of 90 days

impracticable. Contact your SDOT for further information

on notice requirements.
2009 Real Estate Acquisition Guide For Local Public Agencies 

50 7BVII. Relocation Assistance   

ADVISORY SERVICES 

Relocation payments alone often are not enough to minimize the hardship of a move 

necessitated by a public project and ensure a successful move to a replacement location. 

Another key element is relocation advisory services. These services provide displaced 

persons with information, counseling, advice, and encouragement and often require repeated 

and intense personal contact. A displacing agency should become knowledgeable about the 

nature of the population its project will impact and plan to provide advisory services 

accordingly. 

A typical advisory services program has a group of services as its core. These basic services, 

which must be made available to all displaced persons, include: 

 Explanation  that  no  person  can  be  required  to  move  from  a  dwelling  for  a 

Federal or  federally assisted project unless replacement housing is available  to 

such person. 

 Explanation of relocation services and appropriate payments. 

 Explanation and discussion of eligibility requirements  for each relevant  type of 

relocation payment, and, at an appropriate time, determination of eligibility  for 

each displaced person. 

 Determination  of  the  needs  and  preferences  of  the  person  to  be  displaced.  

Relocation agents must become familiar with the many different and sometimes 

special  needs  of  the  displaced  household  or  business.    A  personal interview is 

essential to accomplish these objectives.  For businesses that are to be displaced 

the interview should cover the following six areas at a minimum: 

o Replacement  site  requirements,  plus  contractual  and  financial  obligations 

that may influence their capacity to accomplish the move. 

o Identify need for outside specialists to assist in planning, conducting, and/or

reinstalling relocated machinery and/or other personal property. 

o learly  Identify  personalty/realty  items  eligible  for  relocation.    This  is 

iously in Chapter 5.  

C

coordinated during the appraisal process mentioned prev

o Estimate of the time required to vacate the acquired site. 

o Estimate of the anticipated difficulty in locating a replacement property. 

o Identification of any advance relocation payments required for the move, and 

the Agency's legal capacity to provide them. 
Real Estate Acquisition Guide For Local Public Agencies  2009

 7BVII. Relocation Assistance  51 

 Making every effort to meet identified needs, while recognizing  the importance 

of  the  displaced  persons'  priorities  and  their  desire,  or  lack  of  desire,  for 

assistance.

 Provision of the following specific types of services, as appropriate:  

o Current listings, including  prices  or  rents,  of  replacement  properties  either 

comparable  to  acquired  dwellings  or  appropriate  for  displaced  businesses 

and farms. 

o Transportation for displaced persons to inspect potential relocation housing 

if they are unable to do so on their own. 

o Information  concerning  Federal  and  State  housing,  disaster loan  assistance 

(when applicable), and other programs offering relocation or related types of 

assistance.

o Assistance  in  obtaining  and  completing  applications  or  claim  forms  for 

relocation payment or other related assistance. 

In addition, it may be necessary to provide unusual types of assistance to persons with 

unusual or special needs. 

RELOCATION ASSISTANCE PAYMENTS 

We have often noted that one of the main purposes of the Uniform Act is to prevent affected 

persons from bearing an unfair share of the burden of public projects. Such a burden could 

easily be created if a displaced person were forced to pay increased rent for a replacement 

apartment or a higher price or interest rate for a replacement home. In order to prevent this, 

the Uniform Act provides for relocation payments to displaced persons. 

There are two main categories of payments, residential and non-residential. Within each 

category there are several types of payments which address expenses incurred as a result of a 

required move. 

Note: It is important to know that, in accordance with

amendments to the Uniform Act passed in 1997, persons

who are aliens not lawfully present in the United States are

not eligible, with certain limited exceptions, to receive

relocation payments or advisory services.
2009 Real Estate Acquisition Guide For Local Public Agencies 

52 7BVII. Relocation Assistance   

The following provides brief descriptions of the relocation payments available to displaced 

persons. Each type of payment has its own eligibility criteria and computation requirements, 

the details of which are beyond the scope of this publication. 

RESIDENTIAL DISPLACEMENTS 

1. Moving and related expenses. This includes payment for the actual cost to 

move personal property. A property owner may have a commercial mover move 

personal property or may elect to move the personal property himself. If the 

person displaced elects to move the property themselves, they can be reimbursed 

for the actual costs incurred based on receipted bills (based on rates comparable to 

those charged by commercial movers), or be paid on the basis of a move cost 

schedule. The schedule is published by FHWA and available on their website at 

http://www.fhwa.dot.gov/realestate/index.htm or from the local SDOT. Use of 

the schedule saves administrative costs for the agency and is advantageous to the 

owner of the personal property. 

2. Replacement housing payment. A payment for the difference, if any, between 

the actual acquisition price or rent of a comparable replacement dwelling and the 

acquisition price or rent of the dwelling from which the occupant is being 

displaced. Additionally, increased mortgage interest costs and selected incidental 

expenses (settlement costs) also may be eligible. 

REPLACEMENT HOUSING STANDARDS 

A basic requirement of the Uniform Act is that the replacement housing made available to 

displaced persons must meet certain standards. These standards are contained in the 

interrelated concepts of "decent, safe, and sanitary housing" and "comparable replacement 

housing." 

The phrase "decent, safe, and sanitary (DSS)" refers to the physical condition of the 

replacement dwelling. Basically, a dwelling which meets the standards of a typical local 

Note: Should your project require the displacement of families,

individuals, businesses, farms, or non­profit organizations,

we recommend you contact your SDOT or other persons

knowledgeable about the limitations and conditions of

these payments and the other complex relocation

requirements of the Uniform Act.
Real Estate Acquisition Guide For Local Public Agencies  2009

 7BVII. Relocation Assistance  53 

housing or occupancy code and the minimum requirements of the Federal regulation will be 

DSS. If a community has a more stringent set of housing codes then those found in the 

government-wide rule at §49 CFR 24.2(a)(8), they may be used to determine whether a 

dwelling is DSS. 

The phrase "comparable replacement dwelling" means a dwelling which meets the 

following criteria: 

1. Decent, safe, and sanitary, as described previously. 

2. Functionally equivalent to the displacement dwelling. 

3. Adequate in size to accommodate the displaced person(s). 

4. Located in an area that is: 

o not subject to unreasonable adverse environmental conditions; 

o generally not less desirable than the location of the displacement dwelling with 

regard to public utilities and commercial and public facilities; 

o reasonably accessible to the displaced person's place of employment. 

5. Located on a typical residential site. 

6. Currently available to the displaced person(s). 

7. Within the financial means of the displaced person(s).

In carrying out this requirement, the displacing agency must offer every displaced person at 

least one comparable replacement dwelling and, if possible, three. This is a crucial part of 

the displacement process, since the comparable replacement dwelling will form the basis of 

the computation of the replacement housing payment. 

Many of the elements of comparable replacement housing deal with the specific needs of 

displaced persons, e.g., financial means, access to employment, and access to public and 

commercial facilities. This reemphasizes the critical importance of what was stressed above 

in the section on Advisory Services - the need for the agency to determine the displaced 

person's needs and circumstances. This can be accomplished only by personal contact with 

each displaced household early in the process. 

Note: The regulations require that no person may be required to

move from a dwelling unless he or she has been offered an

available comparable replacement dwelling.
2009 Real Estate Acquisition Guide For Local Public Agencies 

54 7BVII. Relocation Assistance   

MOBILE HOMES 

Mobile homes present one of the 

most complex and difficult 

situations with which displacing 

agencies must cope. Mobile homes 

differ from conventional housing in 

that their status as real or personal 

property varies from State to State. 

Also, in a mobile home situation, 

there is a separation between the 

dwelling and the site it occupies. 

For example, one may own a mobile 

home but rent its site or vice versa. 

These differences may present you 

with two general problems. The 

first involves a decision you may 

not have to make with conventional housing - whether to acquire or move the mobile home. 

The second is a major increase in the complexity of determining the relocation payments for 

which the displaced person is eligible. 

In addition, mobile homes typically will have a disproportionate number of low-income, 

elderly, and other occupants who are difficult to move successfully. For all these reasons, 

dealing with mobile home moves will require the maximum in planning, preparation, 

patience, and assistance. 

BUSINESS DISPLACEMENTS 

1. Actual moving and related expenses. The cost to move, and, if appropriate, 

disconnect and reinstall personal property will usually be reimbursable. Costs 

incurred in hiring commercial and specialized equipment movers plus certain utility 

connections, professional services related to the purchase/lease of the replacement 

property and impact fees and one-time assessments may be reimbursed if found to be 

Note: If your project might include the displacement of mobile

homes, we recommend that you contact your SDOT for

assistance.
Real Estate Acquisition Guide For Local Public Agencies  2009

 7BVII. Relocation Assistance  55 

actual, reasonable and necessary. A list of eligible and ineligible moving and related 

expenses is included in the regulations in §24.301(g) and (h) respectively. 

If a business owner decides not to move personal property, as an alternative he or she 

may elect to be paid on the basis of actual direct loss of tangible personal property or 

the cost of substitute personal property. Such alternate payments may not exceed the 

actual cost to move the items. 

2. Reestablishment expenses. In addition to a payment for moving expenses, the 

owner of a small business may be eligible for up to $10,000 for reimbursement of 

eligible expenses associated with the reestablishment of a business at a replacement 

location. 

3. Search costs. A business may be reimbursed for up to $2,500 of expenses incurred 

in connection with searching for a replacement location. 

4. Fixed moving expenses payment. A business may be eligible for a payment of not 

less than $1,000 and not more than $20,000 in place of an actual moving expense 

payment. This often is referred to as an "in lieu" payment. The payment amount is 

based on average annual net earnings of the business. There are additional 

eligibility requirements for this payment which are described in the regulations 

at 49 CFR 24.305. 

NOTES:

Note: We want to reiterate that if you undertake a federally

assisted project requiring the displacement of persons,

businesses, farms, or non­profit organizations and you do

not have the technical expertise to administer the

Relocation Assistance Program, we strongly recommend

contacting your SDOT for assistance, or referral to training

opportunities.
2009 Real Estate Acquisition Guide For Local Public Agencies 

56 7BVII. Relocation Assistance   

NOTES:
Real Estate Acquisition Guide For Local Public Agencies  2009

 7BVII. Relocation Assistance  57 

TYPICAL RELOCATION PROCESS UNDER THE UNIFORM ACT 
2009 Real Estate Acquisition Guide For Local Public Agencies 

58 7BVII. Relocation Assistance   

NOTES:
Real Estate Acquisition Guide For Local Public Agencies  2009

 8BVIII. Property Management  59 

VIII. PROPERTY MANAGEMENT 

Whenever a new highway is built, and often when an existing one is widened or otherwise 

modified, it is necessary to acquire land for the intended construction. For various reasons, 

there usually is an interim period between the acquisition of the land and construction. 

Acquired land and any accompanying improvements are valuable resources which must be 

protected and often can be productive during this interim. Even after construction is 

completed, attention must be paid to acquired land to ensure the safe and effective 

functioning of the highway facility and to protect the public and its investment. 

The administration of acquired land and improvements is called property management. It 

includes activities such as maintenance and protection of the right-of-way, rental or leasing 

of acquired property, disposal of property no longer needed for the highway, and others 

discussed later in this chapter. Many of these activities provide opportunities for a State or 

local government to generate revenue which may be used for highway-related activities. 

As a project proceeds from the planning stage through the acquisition of property, the 

relocation of right-of-way occupants, the construction of the facility, and then to the 

operation of the completed highway; property management is an ongoing concern. For 

example, well before negotiations to acquire real property have begun, the acquiring agency 

should consider and determine whether improvements can be moved so that, if appropriate, it 

may offer an owner the opportunity to retain and remove them. At the other end of the 

spectrum, even after construction of the highway is completed, the agency still will have 

property management responsibilities. Examples include ensuring the safety of the highway 

by preventing encroachments, protecting access control, disposing of excess land, and renting 

property excess to current project needs. 

In administering acquired land and improvements, you should be guided by the twin goals of 

serving the public interest and maximizing public benefit. Keeping these goals in mind is 

helpful when decisions must be made concerning situations in which the rules are not clearcut or the circumstances are ambiguous. 

For discussion purposes, we have divided property management activities into those which 

occur before the project is closed out (financially) and those which occur thereafter. 
2009 Real Estate Acquisition Guide For Local Public Agencies 

60 8BVIII. Property Management   

PROPERTY MANAGEMENT FROM ACQUISITION TO PROJECT 

CLOSEOUT 

ADMINISTRATION 

As in any activity, proper administration is a minimum requirement. The administration of 

acquired property includes a number of procedural activities and the records associated with 

them. In a very real sense, appropriate records are the backbone of the process. 

An essential component of the record-keeping process is the property inventory. It is 

preferable that the property inventory include a record of all real property and improvements 

acquired for the project. The agency should prepare a pre-acquisition inventory covering 

every parcel to be acquired, including all land, structures, machinery, equipment, and 

fixtures. In order to document what is present, the inventory should be updated when 

physical possession of the real property occurs. Property management requires maintaining 

accounting records of the expenses and receipts relating to the use (by lease or rental 

agreement), demolition, removal or disposal (by sale) of acquired real property and related 

improvements. 

Another important area involves the maintenance and security of acquired property. As 

noted above, acquired property is a valuable resource requiring protection from vandalism, 

encroachment, or other misuse. Even more importantly, the agency must take measures to 

insure public safety between acquisition and the completion of the highway. Therefore, it is 

necessary for the agency to inspect the property at appropriate intervals. Additional areas of 

concern include procedures for hiring contractors (including for the management of real 

property - see the section on FHWA contracting requirements in Chapter IV, Administrative 

Matters), the preservation and/or disposal of improvements, and rodent control. 

Note: Your SDOT should be contacted for information regarding

treatment of revenue from property management

activities.
Real Estate Acquisition Guide For Local Public Agencies  2009

 8BVIII. Property Management  61 

INTERIM LEASING 

If real property is not needed immediately for construction, it may be advantageous for the 

agency to rent or lease it. This provides revenue to the project and, often, an extra measure 

of security. Interim leasing is permissible only when the construction schedule permits. 

Typically, it involves renting property back to previous owners/occupants, which may have 

the added benefit of assisting with the timing of relocation and/or other project activities. 

Such properties generally are rented for a short term and the rent charged should be 

appropriate for short-term occupancy. The Federal share of net income from such leases 

shall be credited to an account and used for Title 23 eligible projects. 

Leases should include the following conditions in order to protect the project's/agency's 

interests in the property: 

 Tenant assurances that the rented property will not be transferred, assigned, or 

conveyed without approval from the acquiring agency. 

 Provisions that allow the lease to be revoked if substandard conditions are not 

corrected within a specified time frame. 

 Provisions requiring the tenant to purchase adequate insurance. 

 Provisions allowing inspection of the rental property at specific intervals or on an asneeded basis. 

 Provisions assuring that the use of the rental property will not interfere with project 

activities or the eventual intended use of the highway facility. 

 Provisions ensuring that those who are not eligible to receive relocation assistance 

benefits at the initiation of negotiations will not gain eligibility to receive relocation 

assistance benefits when they are required to move from the rental property. 

RIGHT-OF-WAY CLEARANCE 

If structures, utilities, equipment, or other impediments to construction are present on the 

property to be acquired, they must be cleared before construction may begin. Clearance may 

be accomplished in a variety of different ways - as part of the construction contract for 

building the highway, or through a separate demolition/ removal contract, owner retention 

and removal, negotiated sale, auction, or another method. An important aspect of clearing 

the property is the relocation of occupants which is discussed in greater detail in Chapter VII, 

Relocation. As a rule, occupants must be relocated before bids for construction of the 

highway facility may be advertised. 
2009 Real Estate Acquisition Guide For Local Public Agencies 

62 8BVIII. Property Management   

Depending on the agency that will administer the construction contract and whether Federal 

funding is utilized there are requirements for the agency acquiring the right-of-way to 

prepare right-of-way and utility certifications prior to advertising for construction. 

Within a short time following the completion of the highway's construction, the project will 

be financially closed out. When the highway facility is open to traffic, it enters its 

operational phase. 

PROPERTY MANAGEMENT AFTER PROJECT CLOSEOUT 

Even after the project has been closed out financially, the need for property management 

continues in order to protect the traveling public and its investment in the highway. This 

includes functions which occurred during the pre-closeout phase (such as leasing) and some 

new activities, such as excess property disposal and protection of access control. 

POST-CLOSEOUT FUNCTIONS 

Once a highway facility is open to traffic, decisions about leasing property and preventing 

inappropriate uses of the right-of-way take on an added dimension. Each use of the right-ofway for other than highway purposes must be weighed against the maintenance of highway 

capacity and safety. Uses which were permissible before operations began may no longer be 

acceptable. 

A number of functions typically occur after closeout. One of these is the disposal of excess 

property. After the highway has begun operations, it may become clear that some of the 

property acquired for the highway is not needed currently and will not be needed in the 

foreseeable future. The agency should maintain an inventory of such "excess properties." 

Excess property may be disposed of but FHWA policy puts some limitations on the disposal. 

If the property is sold to a private party, the acquiring agency must charge a minimum of fair 

market value, although there can be exceptions for social, economic, or environmental 

purposes. The Federal share of the sale proceeds (see the section on Cost-Sharing/Credits in 

Chapter IV, Administrative Matters) may be retained but must be used for activities eligible 

under Title 23 U.S.C. Highways. However, if a disposal is made to a government entity for 

public purposes, the disposal may be made without charge. 

One special type of disposal involves the disposal of access control, i.e., opening access to 

the highway facility at a point or points where it has been prohibited. This is a matter with 

very serious potential implications for the safety and capacity of the highway. 
Real Estate Acquisition Guide For Local Public Agencies  2009

 8BVIII. Property Management  63 

Another post-closeout function is the leasing of real property. As in the pre-closeout phase, 

leasing is a potential source of revenue. The decision to permit leasing is dependent on the 

agency's determination that it will not interfere with the safety of the traveling public or 

adversely affect the highway's capacity. You must charge fair market value for leases, but, 

once again, there can be exceptions for social, economic, or environmental purposes. As 

with the disposal of excess property, the income from leasing after closeout may be used by 

your agency for activities eligible under the federal-aid highway program. Once again, prior 

FHWA approval is required for the leasing of right-of-way on interstate highways. 

NOTES:

Note: If your agency wishes to dispose of access control, you must

seek prior approval from your SDOT.
2009 Real Estate Acquisition Guide For Local Public Agencies 

64 8BVIII. Property Management   

NOTES: 
Real Estate Acquisition Guide For Local Public Agencies  2009

 9BGlossary  65 

GLOSSARY 

(Fixed Residential Moving Cost) Schedule This schedule is used to calculate the amount of 

reimbursement that displaced persons may be eligible to receive if they decide to move their 

own personal property. We (FHWA) periodically update and distribute this schedule. A 

copy can be found on our web site at: http://www.fhwa.dot.gov/realestate/index.htm in the 

section Relocation Assistance.

30-Day Notice This is a notice that may be given to a person who will be required to move a 

residence, business or personal property as a result of your agency's project. It informs the 

person that he or she must move the residence, business or personal property 30 days from 

the date of the notice. This notice can only be given after you give a 90-day notice. 

Access Control Power of Government to restrict/control a property owner's right to create 

entrances and exits on a public road. After a roadway is designed, built, and in use, there will 

be instances in which someone will request permission to create a driveway or entrance onto 

the roadway. These requests require consideration of local access control regulations, 

potential impacts to the roadway, and safety and capacity (ability of roadway to carry the 

additional traffic), that a new entrance will create. You should consult with your SDOT 

and/or your local engineering staff when considering a request. 

Acquisition The process of obtaining right-of-way necessary to construct or support your 

project. 

Actual Moving Expenses The costs that are paid to disconnect, move and reinstall personal 

property. These costs are usually associated with the move of a business. A complete list of 

costs eligible for Federal reimbursement can be found in 49 CFR 24 301 and 303. 

Actual Direct Loss of Tangible Personal Property Businesses and farms which move as a 

result of having their real estate acquired sometimes elect not to move some of their personal 

property. They may be eligible to receive a payment for this personal property. See 49 CFR 

24.301(g)(14) for a complete explanation of how an Actual Direct Loss of Tangible Personal 

Property payment is calculated. 

After Appraisal Part of the appraisal of a property from which only a portion of that 

property is acquired for the planned project. This type of acquisition is often referred to as a 

"partial acquisition." That portion which is valued "after" the acquisition is sometimes 

referred to as the "remainder" or "remaining parcel." The After Value takes into account the 

effects of the partial acquisition and any effects (negative or positive) that it may have on the 

value of the remainder. 
2009 Real Estate Acquisition Guide For Local Public Agencies 

66 9BGlossary   

Alternate Dispute Resolution (ADR) A range of different forums and processes which can 

be utilized to resolve a dispute. We focus on two forms of ADR in this guide which might be 

used to negotiate a settlement: administrative settlements and mediation. 

Approaches to Value (Cost, Income Capitalization & Sales Comparison) Cost, Income 

Capitalization and Sales Comparison are the three approaches an appraiser can use to 

estimate the value of a property. The Cost approach estimates the value of a property by 

adding the value of the land plus estimated cost to construct/replace the improvement and 

then subtracting the estimated amount of depreciation from the current structure. The 

Income Capitalization approach estimates a property's capacity to generate income over a 

period of time and then converts that income into an estimate of the present value of the 

property. The Sales Comparison approach estimates the value of a property by comparing 

similar properties which have sold recently (comparables) and then making adjustments to 

the sale price of the comparables to account for differing characteristics. 

Approved Appraisal - An appraisal must be approved by an official of your agency before it 

can be used as the basis for offering a property owner your agency's estimate of just 

compensation. The approval process involves having the appraisal reviewed by either a 

knowledgeable agency official who can then approve the appraisal, or a contract review 

appraiser who cannot approve the appraisal but can recommend approval to an agency 

official. 

Before Appraisal Part of the appraisal of an affected property which estimates the value of 

the property as it is before the acquisition. Law and regulations typically require that this 

estimate of value cannot include any increase or decrease in the value of the property which 

results from the planned or anticipated project. 

Cost of Substitute Personal Property (Relocation Assistance) In some instances a 

business or farm owner who has to move his or her personal property as a result of your 

project may decide to replace some items of personal property instead of moving them. The 

property owner may receive some reimbursement for replacing these items of personal 

property at the site to which he or she moves. An explanation of how to calculate the 

reimbursement a property owner is eligible to receive can be found at 49 CFR 24.301(g)(16). 

Cost (appraisal approach) Cost, Income Capitalization and Sales Comparison are the three 

approaches an appraiser can use to estimate the value of a property. The Cost approach 

estimates the value of a property by adding the value of the land plus estimated cost to 

construct/replace the improvement and then subtracting the estimated amount of depreciation 

from the current structure. 

Damages In some instances when your agency acquires a part of a person's property, the 

acquisition, planned use, or construction may cause a loss in value of the remaining property 

(damages may also extend to adjoining properties in which the property owner has an 

interest). Normally, the value of the damage is based on a before and after appraisal or on 
Real Estate Acquisition Guide For Local Public Agencies  2009

 9BGlossary  67 

the cost to cure. An owner is entitled to payment of damages and receives this payment as a 

part of the payment of just compensation. 

Disconnect Costs When a business or farm owner has to move his personal property as a 

result of your project he may be eligible to receive reimbursement for the cost to disconnect, 

dismantle and remove his personal property. See 49 CFR 24.301(g)(3) for a list of federally 

reimbursable disconnect costs. 

Encroachments A situation which usually occurs when items such as a house, sign or well 

are discovered to be on your agency's property (right-of-way, etc.) illegally or without 

permission. 

Fair Market Value - The price which a willing buyer will pay a willing seller for a piece of 

real estate. The above definition is only a general definition. You should note that the exact 

definition of fair market value depends on where (the jurisdiction) the property being bought 

or sold is located, on state/local case law and on other state/local legal issues. 

Federally Assisted Project A federally assisted project is one which receives Federal 

reimbursement or payment of some project expenses such as planning, construction, right-ofway acquisition, and property management. As a local public agency you usually receive 

Federal financial assistance from your State Department of Transportation and in some 

instances directly from the Federal government. 

Functionally equivalent Term used to describe how the replacement dwelling offered to a 

displaced person is to compare to the displacement dwelling in regard to performing the same 

function, and providing the same utility. While it need not possess every feature of the 

displacement dwelling, the principal features must be present. 

Highest and Best Use The legal use (or development/redevelopment) of a property which 

makes it most valuable to a buyer or the market. 

Incidental Expenses (settlement expenses) This is a reimbursement for some settlement 

expenses that a residential property owner may receive after he or she buys a dwelling to 

replace the one that your agency acquired. A complete list of eligible expenses can be found 

at 49 CFR 24.401(e)(1-9). 

Increased Mortgage Interest Costs This is a payment that a residential property owner may 

be eligible to receive to offset the increased cost of getting a mortgage on a dwelling to 

replace the dwelling that your agency acquired. An explanation of how to determine if a 

property owner is eligible to receive this reimbursement and how to calculate the payment 

can be found at 49 CFR 24.401(d). 

Just Compensation The payment (to a property owner) your agency must make in order to 

acquire property for a federally funded or federally assisted project. The payment includes 
2009 Real Estate Acquisition Guide For Local Public Agencies 

68 9BGlossary   

the value of the real estate acquired and any damages caused to the remainder of the property 

by the acquisition and/or construction. 

Lease A lease is an agreement between a landlord, property owner or property manager and a 

tenant. The agreement covers issues such as rental amount and length of time the lease is in 

effect. The rental amount may include or exclude property taxes, garbage pickup fees, utility 

costs, property maintenance and other expenses. 

Local Public Agency Coordinator A number of State Departments of Transportation have 

appointed someone to act as a contact and coordinator for activities carried out by local 

public agencies in their State. The coordinator is a focal point for information on applicable 

laws, rules, regulations, policies and procedures which a local public agency must follow 

when using Federal funds in any part of a project. 

Minimum Qualifications of Appraisers The criteria that an agency uses to determine which 

appraisers or review appraisers are qualified based on experience, State licenses or State 

certifications to perform specific appraisal and review assignments. This list is created by 

your agency or can be obtained from your State Department of Transportation. Additional 

information on minimum qualifications of appraisers can be found at 49 CFR 24.103(d) - 

Qualifications of appraisers and review appraisers. 

Minimum Standards A set of requirements which specifies what information must be 

included in an appraisal report and the formats which are acceptable to use for preparing the 

appraisal report. Additional information on minimum standards can be found in 49 CFR 

24.103(a) - Appraisal requirements. 

Mobile home The term mobile home includes manufactured homes and recreational vehicles 

used as residences (See Appendix A, § 24.2(a)(17)). 

Negotiation This is the primary method for acquiring property for your project. It involves 

explaining items such as details of construction, your agency's offer of just compensation and 

what just compensation is. A property owner must have these details in order to consider 

your agency's offer. The negotiation process involves listening to the property owner and 

determining the best way (negotiated settlement/administrative settlement) to reach an 

agreement for the sale of property. You should contact your LPA coordinator or SDOT to 

determine how the administrative settlement (negotiated settlement) approval process works. 

NEPA - National Environmental Policy Act of 1969 (NEPA) NEPA applies to all Federal 

agencies and most of the activities they manage, regulate or fund that affect the environment. 

It requires all agencies to disclose and consider the environmental implications of their 

proposed actions. In most instances Federal aid for local public agency projects is given out 

by the State (or your SDOT). If your project will use any Federal funds you will have to 

comply with NEPA requirements. Information on NEPA and Federal Aid project 

requirements can be found in the regulations at 23 CFR 771. 
Real Estate Acquisition Guide For Local Public Agencies  2009

 9BGlossary  69 

Personal Property In general refers to property that can be moved. It is not permanently 

attached to, or a part of, the real estate. For example, if your agency purchases a strip of 

property and that strip has a dog house on it, in most cases the dog house would be personal 

property. An example of business personal property may be desks and chairs. If you need 

information or assistance in determining what makes up personal property under your State 

and local laws you should contact your LPA coordinator or legal counsel. 

Personalty Refers to items which are determined to be personal property. 

Preferred Alignment As part of the planning process, an agency identifies a number of 

project possibilities including no-build and several alternate alignments and then determines 

which of the possibilities appears to be most feasible. This is usually the agency's preferred 

alignment. If your agency will use any Federal funds in its project, then it must follow 

NEPA process requirements in order to determine which alternative will be used by your 

agency. 

Realty Refers to items which are determined to be real property. 

Reestablishment Expenses A business, farm or non-profit organization may be eligible to 

receive reimbursement for some of its expenses related to relocating and reestablishing when 

it is required to move for a federally-aided project. A list of expenses which are 

reimbursable can be found at 49 CFR 24.304. 

Regulatory (Federal Aid program) This refers to the regulations which tell how the 

Federal aid highway program is administered. The primary regulations for right-of-way real 

property acquisition, relocation, appraisal, property management, junkyard control, outdoor 

advertising and property management are 23 CFR 710, 750, 751 and 49 CFR 24. 

Relocation Planning A process for federally aided projects and programs which involve 

identifying and considering the potential impact created by displacing residences, farms, 

businesses and non-profit organizations and planning methods to minimize that impact. 

Information on relocation planning requirements can be found at 49 CFR 24.205. 

Statutory (Federal Aid program) This refers to the laws passed by Congress which govern 

real estate acquisition activities for Federal and federally assisted programs and projects. The 

primary statute governing Federal and federally assisted real estate acquisition activities is 

the Uniform Act. 

Stipulated (Legal) Settlement In instances in which condemnation proceedings have begun, 

parties can still negotiate, and in some instances, can agree to a settlement before their case is 

heard. In order to conclude the negotiation, the parties present the Judge or presiding 

authority their agreement to settle (which is called a stipulated settlement). 
2009 Real Estate Acquisition Guide For Local Public Agencies 

70 9BGlossary   

Uneconomic remnant The term uneconomic remnant means a parcel of real property in 

which the owner is left with an interest after the partial acquisition of the owner's property, 

and which the Agency has determined has little or no value or utility to the owner. 

Utility relocation The term utility relocation means the adjustment of a utility facility 

required by the program or project undertaken by the displacing Agency. It includes 

removing and reinstalling the facility, including necessary temporary facilities; acquiring 

necessary right-of-way on a new location; moving, rearranging or changing the type of 

existing facilities; and taking any necessary safety and protective measures. It shall also 

mean constructing a replacement facility that has the functional equivalency of the existing 

facility and is necessary for the continued operation of the utility service, the project 

economy, or sequence of project construction. 

Waiver valuation The term waiver valuation means the valuation process used and the 

product produced when the Agency determines that an appraisal is not required, pursuant to 

49 CFR 24.102(c)(2) appraisal waiver provisions. 

Website (Environmental Justice) http://www.fhwa.dot.gov/environment/ej2.htm

Website (Office of Real Estate Services) http://www.fhwa.dot.gov/realestate/index.htm
Real Estate Acquisition Guide For Local Public Agencies  2009

 10BThe Uniform Act  71 

THE UNIFORM ACT 

Note:  The  following  statute is  from  the Office  of  the  Law Revision  Counsel  of  the 

U.S. House of Representatives as of January 2008. You should check our website at 

http://www.fhwa.dot.gov/hep/legreg.htm#l to access the most current copy of the 

statute  using  the  link  to  Title 42, United States Code, Chapter 61, Uniform

Relocation Assistance and Real Property Acquisition Policies for Federal and

Federally Assisted Programs

42 USC, CHAPTER 61 

UNIFORM RELOCATION ASSISTANCE 

AND REAL PROPERTY ACQUISITION 

POLICIES FOR FEDERAL AND 

FEDERALLY ASSISTED PROGRAMS 

01/08/2008 

SUBCHAPTER I - GENERAL PROVISIONS 

Sec. 

4601. Definitions. 

4602. Effect upon property acquisition. 

4603. Additional appropriations for moving 

costs, relocation benefits and other 

expenses incurred in acquisition of 

lands for National Park System; waiver 

of benefits. 

4604. Certification. 

4605. Displaced persons not eligible for 

assistance. 

SUBCHAPTER II - UNIFORM RELOCATION 

ASSISTANCE 

4621. Declaration of findings and policy. 

4622. Moving and related expenses. 

4623. Replacement housing for homeowner; 

mortgage insurance. 

4624. Replacement housing for tenants and 

certain others. 

4625. Relocation planning, assistance 

coordination, and advisory services. 

4626. Housing replacement by Federal 

agency as last resort. 

4627. State required to furnish real property 

incident to Federal assistance (local 

cooperation). 

4628. State acting as agent for Federal 

program. 

4629. Public works programs and projects of 

District of Columbia government and 

Washington Metropolitan Area Transit 

Authority. 

4630. Requirements for relocation payments 

and assistance of federally assisted 

program; assurances of availability of 

housing. 

4631. Federal share of costs. 

4632. Administration; relocation assistance in 

programs receiving Federal financial 

assistance. 

4633. Duties of lead agency. 

4634. Repealed. 

4635. Planning and other preliminary 

expenses for additional housing. 

4636. Payments not to be considered as 

income for revenue purposes or for 

eligibility for assistance under Social 

Security Act or other Federal law. 

4637. Repealed. 

4638. Transfers of surplus property. 

SUBCHAPTER III - UNIFORM REAL 

PROPERTY ACQUISITION POLICY 

4651. Uniform policy on real property 

acquisition practices. 

4652. Buildings, structures, and 

improvements. 

4653. Expenses incidental to transfer of title 

to United States. 

4654. Litigation expenses. 

4655. Requirements for uniform land 

acquisition policies; payments of 

expenses incidental to transfer of real 

property to State; payment of litigation 

expenses in certain cases. 
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72 10BThe Uniform Act   

SUBCHAPTER I - GENERAL PROVISIONS 

§ 4601. Definitions 

As used in this chapter – 

(1) The term "Federal agency" means any 

department, agency, or instrumentality in the 

executive branch of the Government, any wholly 

owned Government corporation, the Architect of 

the Capitol, the Federal Reserve banks and 

branches thereof, and any person who has the 

authority to acquire property by eminent domain 

under Federal law. 

(2) The term "State" means any of the several 

States of the United States, the District of 

Columbia, the Commonwealth of Puerto Rico, 

any territory or possession of the United States, 

the Trust Territory of the Pacific Islands, and any 

political subdivision thereof. 

(3) The term "State agency" means any 

department, agency, or instrumentality of a State 

or of a political subdivision of a State, any 

department, agency, or instrumentality of 2 or 

more States or of 2 or more political subdivisions 

of a State or States, and any person who has the 

authority to acquire property by eminent domain 

under State law. 

(4) The term "Federal financial assistance" 

means a grant, loan, or contribution provided by 

the United States, except any Federal guarantee 

or insurance, any interest reduction payment to 

an individual in connection with the purchase and 

occupancy of a residence by that individual, and 

any annual payment or capital loan to the District 

of Columbia. 

(5) The term "person" means any individual, 

partnership, corporation, or association. 

(6)(A) The term "displaced person" means, 

except as provided in subparagraph (B) 

(i) any person who moves from real 

property, or moves his personal property from 

real property - 

(I) as a direct result of a written notice 

of intent to acquire or the acquisition of 

such real property in whole or in part for a 

program or project undertaken by a 

Federal agency or with Federal financial 

assistance; or 

(II) on which such person is a 

residential tenant or conducts a small 

business, a farm operation, or a business 

defined in paragraph (7)(D), as a direct 

result of rehabilitation, demolition, or 

such other displacing activity as the lead 

agency may prescribe, under a program or 

project undertaken by a Federal agency or 

with Federal financial assistance in any 

case in which the head of the displacing 

agency determines that such displacement 

is permanent; and 

(ii) solely for the purposes of sections 

4622(a) and (b) and 4625 of this title, any 

person who moves from real property, or 

moves his personal property from real 

property - 

(I) as a direct result of a written notice 

of intent to acquire or the acquisition of 

other real property, in whole or in part, on 

which such person conducts a business or 

farm operation, for a program or project 

undertaken by a Federal agency or with 

Federal financial assistance; or 

(II) as a direct result of rehabilitation, 

demolition, or such other displacing 

activity as the lead agency may prescribe, 

of other real property on which such 

person conducts a business or a farm 

operation, under a program or project 

undertaken by a Federal agency or with 

Federal financial assistance where the 

head of the displacing agency determines 

that such displacement is permanent. 

(B) The term "displaced person" does not 

include - 

(i) a person who has been determined, 

according to criteria established by the head 

of the lead agency, to be either in unlawful 

occupancy of the displacement dwelling or to 

have occupied such dwelling for the purpose 

of obtaining assistance under this chapter; 

(ii) in any case in which the displacing 

agency acquires property for a program or 

project, any person (other than a person who 

was an occupant of such property at the time 

it was acquired) who occupies such property 

on a rental basis for a short term or a period 

subject to termination when the property is 

needed for the program or project. 

(7) The term "business" means any lawful 

activity, excepting a farm operation, conducted 

primarily - 

(A) for the purchase, sale, lease and 
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rental of personal and real property, and for 

the manufacture, processing, or marketing of 

products, commodities, or any other personal 

property; 

(B) for the sale of services to the public; 

(C) by a nonprofit organization; or 

(D) solely for the purposes of section 

4622 of this title, for assisting in the purchase, 

sale, resale, manufacture, processing, or 

marketing of products, commodities, personal 

property, or services by the erection and 

maintenance of an outdoor advertising display 

or displays, whether or not such display or 

displays are located on the premises on which 

any of the above activities are conducted. 

(8) The term "farm operation" means any 

activity conducted solely or primarily for the 

production of one or more agricultural products 

or commodities, including timber, for sale or 

home use, and customarily producing such 

products or commodities in sufficient quantity to 

be capable of contributing materially to the 

operator's support. 

(9) The term "mortgage" means such classes 

of liens as are commonly given to secure 

advances on, or the unpaid purchase price of, real 

property, under the laws of the State in which the 

real property is located, together with the credit 

instruments, if any, secured thereby. 

(10) The term "comparable replacement 

dwelling" means any dwelling that is 

(A) decent, safe, and sanitary; 

(B) adequate in size to accommodate the 

occupants; 

(C) within the financial means of the 

displaced person; 

(D) functionally equivalent; 

(E) in an area not subject to unreasonable 

adverse environmental conditions; and 

(F) in a location generally not less 

desirable than the location of the displaced 

person's dwelling with respect to public 

utilities, facilities, services, and the displaced 

person's place of employment. 

(11) The term "displacing agency" means any 

Federal agency carrying out a program or project, 

and any State, State agency, or person carrying 

out a program or project with Federal financial 

assistance, which causes a person to be a 

displaced person. 

(12) The term "lead agency" means the 

Department of Transportation. 

(13) The term "appraisal" means a written 

statement independently and impartially prepared 

by a qualified appraiser setting forth an opinion 

of defined value of an adequately described 

property as of a specific date, supported by the 

presentation and analysis of relevant market 

information. 

 (Pub. L. 91-646, title I, Sec. 101, Jan. 2, 1971, 84 Stat. 

1894; Pub. L. 100-17, title IV, Sec. 402, Apr. 2, 1987, 

101 Stat. 246.) 

REFERENCES IN TEXT 

This chapter, referred to in introductory provision 

and par. (6)(B)(i), was in the original "this Act", 

meaning Pub. L. 91-646, Jan. 2, 1971, 84 Stat. 

1894, known as the Uniform Relocation Assistance 

and Real Property Acquisition Policies Act of 1970. 

For complete classification of this Act to the Code, 

see Short Title note set out below and Tables. 

AMENDMENTS 

1987 - Par. (1). Pub. L. 100-17, Sec. 402(a), 

amended par. (1) generally. Prior to amendment, 

par. (1) read as follows: "The term 'Federal agency' 

means any department, agency, or instrumentality 

in the executive branch of the Government (except 

the National Capital Housing Authority), any wholly 

owned Government corporation (except the District 

of Columbia Redevelopment Land Agency), and the 

Architect of the Capitol, the Federal Reserve banks 

and branches thereof." Par. (3). Pub. L. 100-17, 

Sec. 402(b), amended par. (3) generally. Prior to 

amendment, par. (3) read as follows: "The term 

'State agency' means the National Capital Housing 

Authority, the District of Columbia Redevelopment 

Land Agency, and any department, agency, or 

instrumentality of a State or of a political subdivision 

of a State, or any department, agency, or 

instrumentality of two or more States or of two or 

more political subdivisions of a State or States." 

Par. (4). Pub. L. 100-17, Sec. 402(c), inserted ", any 

interest reduction payment to an individual in 

connection with the purchase and occupancy of a 

residence by that individual," after "insurance". Par. 

(6). Pub. L. 100-17, Sec. 402(d), amended par. (6) 

generally. Prior to amendment, par. (6) read as 

follows: "The term 'displaced person' means any 

person who, on or after January 2, 1971, moves 

from real property, or moves his personal property 

from real property, as a result of the acquisition of 

such real property, in whole or in part, or as the 

result of the written order of the acquiring agency to 

vacate real property, for a program or project 

undertaken by a Federal agency, or with Federal 
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74 10BThe Uniform Act   

financial assistance; and solely for the purposes of 

sections 4622(a) and (b) and 4625 of this title, as a 

result of the acquisition of or as the result of the 

written order of the acquiring agency to vacate other 

real property, on which such person conducts a 

business or farm operation, for such program or 

project." Par. (7)(D). Pub. L. 100-17, Sec. 402(f), 

substituted "section 4622" for "section 4622(a)". 

Pars. (10) to (13). Pub. L. 100-17, Sec. 402(e), 

added pars. (10) to (13). 

EFFECTIVE DATE OF 1987 AMENDMENT 

Section 418 of title IV of Pub. L. 100-17 provided 

that: "The amendment made by section 412 of this 

title [amending section 4633 of this title] (to the 

extent such amendment prescribes authority to 

develop, publish, and issue regulations) shall take 

effect on the date of the enactment of this title [Apr. 

2, 1987]. This title and the amendments made by 

this title [enacting section 4604 of this title, 

amending this section and sections 4621 to 4626, 

4630, 4631, 4633, 4636, 4638, 4651, and 4655 of 

this title, repealing sections 4634 and 4637 of this 

title, and enacting provisions set out as a note under 

this section] (other than the amendment made by 

section 412 to such extent) shall take effect on the 

effective date provided in such regulations but not 

later than 2 years after such date of enactment." 

EFFECTIVE DATE 

Section 221 of Pub. L. 91-646 provided that: "(a) 

Except as provided in subsections (b) and (c) of this 

section, this Act and the amendments made by this 

Act [see Short Title note below] shall take effect on 

the date of its enactment [Jan. 2, 1971]. "(b) Until 

July 1, 1972, sections 210 and 305 [sections 4630 

and 4655 of this title] shall be applicable to a State 

only to the extent that such State is able under its 

laws to comply with such sections. After July 1, 

1972, such sections [sections 4630 and 4655 of this 

title] shall be completely applicable to all States. "(c) 

The repeals made by paragraphs (4) [repealing 

section 1606(b) of former Title 49, Transportation], 

(5) [repealing section 1465 of this title], (6) 

[repealing section 1415(7)(b)(iii) and (8) second 

sentence of this title], (8) [repealing section 3074 of 

this title], (9) [repealing section 3307(b), (c) of this 

title], (10) [repealing chapter 5 (sections 501-511) of 

Title 23, Highways], (11) [repealing provisions set 

out as notes under sections 501 and 510 of Title 

23], and (12) of section 220(a) of this title and 

section 306 of title III [repealing sections 3071 to 

3073 of this title, section 141 of Title 23, and section 

596 of Title 33, Navigation and Navigable Waters] 

shall not apply to any State so long as sections 210 

and 305 [sections 4630 and 4655 of this title] are 

not applicable in such State." 

SHORT TITLE OF 1987 AMENDMENT 

Section 401 of title IV of Pub. L. 100-17 provided 

that: "This title [enacting section 4604 of this title, 

amending this section and sections 4621 to 4626, 

4630, 4631, 4633, 4636, 4638, 4651, and 4655 of 

this title, repealing sections 4634 and 4637 of this 

title, and enacting provisions set out as a note under 

this section] may be cited as the 'Uniform 

Relocation Act Amendments of 1987'." 

SHORT TITLE 

Section 1 of Pub. L. 91-646 provided: "That this Act 

[enacting this chapter, amending sections 1415, 

2473, and 3307 of this title and section 1606 of 

former Title 49, Transportation, repealing sections 

1465 and 3071 to 3074 of this title, section 2680 of 

Title 10, Armed Forces, sections 141 and 501 to 

512 of Title 23, Highways, section 596 of Title 33, 

Navigation and Navigable Waters, sections 1231 to 

1234 of Title 43, Public Lands, and enacting 

provisions set out as notes under this section and 

sections 4621 and 4651 of this title, and repealing 

provisions set out as notes under sections 501 and 

510 of Title 23] may be cited as the 'Uniform 

Relocation Assistance and Real Property 

Acquisition Policies Act of 1970'." 

TERMINATION OF TRUST TERRITORY OF THE 

PACIFIC ISLANDS 

For termination of Trust Territory of the Pacific 

Islands, see note set out preceding section 1681 of 

Title 48, Territories and Insular Possessions. 

TREATMENT OF REAL PROPERTY BUYOUT 

PROGRAMS 

Pub. L. 103-181, Sec. 4, Dec. 3, 1993, 107 Stat. 

2055, provided that: "(a) Inapplicability of URA. - 

The purchase of any real property under a qualified 

buyout program shall not constitute the making of 

Federal financial assistance available to pay all or 

part of the cost of a program or project resulting in 

the acquisition of real property or in any owner of 

real property being a displaced person (within the 

meaning of the Uniform Relocation Assistance and 

Real Property Acquisition Policies Act of 1970 [42 

U.S.C. 4601 et seq.]). "(b) Definition of 'Qualified 

Buyout Program'. - For purposes of this section, the 

term 'qualified buyout program' means any program 

that - "(1) provides for the purchase of only property 

damaged by the major, widespread flooding in the 

Midwest during 1993; "(2) provides for such 

purchase solely as a result of such flooding; "(3) 

provides for such acquisition without the use of the 

power of eminent domain and notification to the 

seller that acquisition is without the use of such 

power; "(4) is carried out by or through a State or 

unit of general local government; and "(5) is being 

assisted with amounts made available for - "(A) 
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disaster relief by the Federal Emergency 

Management Agency; or "(B) other Federal financial 

assistance programs." [For transfer of all functions, 

personnel, assets, components, authorities, grant 

programs, and liabilities of the Federal Emergency 

Management Agency, including the functions of the 

Under Secretary for Federal Emergency 

Management relating thereto, to the Federal 

Emergency Management Agency, see section 

315(a)(1) of Title 6, Domestic Security.] [For transfer 

of functions, personnel, assets, and liabilities of the 

Federal Emergency Management Agency, including 

the functions of the Director of the Federal 

Emergency Management Agency relating thereto, to 

the Secretary of Homeland Security, and for 

treatment of related references, see former section 

313(1) and sections 551(d), 552(d), and 557 of Title 

6, Domestic Security, and the Department of 

Homeland Security Reorganization Plan of 

November 25, 2002, as modified, set out as a note 

under section 542 of Title 6.] 

§ 4602. Effect upon property acquisition 

 (a) The provisions of section 4651 of this 

title create no rights or liabilities and shall not 

affect the validity of any property acquisitions by 

purchase or condemnation. 

(b) Nothing in this chapter shall be 

construed as creating in any condemnation 

proceedings brought under the power of eminent 

domain, any element of value or of damage not in 

existence immediately prior to January 2, 1971. 

 (Pub. L. 91-646, title I, Sec. 102, Jan. 2, 1971, 84 Stat. 

1895.) 

§ 4603. Additional appropriations for moving 

costs, relocation benefits and other 

expenses incurred in acquisition of lands 

for National Park System; waiver of 

benefits 

 (a) In all instances where authorizations of 

appropriations for the acquisition of lands for the 

National Park System enacted prior to January 9, 

1971, do not include provisions therefor, there 

are authorized to be appropriated such additional 

sums as may be necessary to provide for moving 

costs, relocation benefits, and other expenses 

incurred pursuant to the applicable provisions of 

this chapter. There are also authorized to be 

appropriated not to exceed $8,400,000 in addition 

to those authorized in Public Law 92-272 (86 

Stat. 120) to provide for such moving costs, 

relocation benefits, and other related expenses in 

connection with the acquisition of lands 

authorized by Public Law 92-272. 

(b) Whenever an owner of property elects to 

retain a right of use and occupancy pursuant to 

any statute authorizing the acquisition of property 

for purposes of a unit of the National Park 

System, such owner shall be deemed to have 

waived any benefits under sections 4623, 4624, 

4625, and 4626 of this title, and for the purposes 

of those sections such owner shall not be 

considered a displaced person as defined in 

section 4601(6) of this title. 

 (Pub. L. 93-477, title IV, Sec. 405, Oct. 26, 1974, 88 

Stat. 1448.) 

REFERENCES IN TEXT 

Public Law 92-272, referred to in subsec. (a), is 

Pub. L. 92-272, Apr. 11, 1972, 86 Stat. 120, which 

to the extent classified to the Code, amended 

sections 284b, 428m, 459f-10, 460m-1, 460m-7 and 

460t- 4 of Title 16, Conservation, and amended a 

provision set out as a note under section 450ll of 

Title 16. For complete classification of this Act to the 

Code, see Tables. 

CODIFICATION 

Section was not enacted as part of the Uniform 

Relocation Assistance and Real Property 

Acquisition Policies Act of 1970 which comprises 

this chapter. 

§ 4604. Certification 

(a) Acceptance of State agency certification 

 Notwithstanding sections 4630 and 4655 of 

this title, the head of a Federal agency may 

discharge any of his responsibilities under this 

chapter by accepting a certification by a State 

agency that it will carry out such responsibility, if 

the head of the lead agency determines that such 

responsibility will be carried out in accordance 

with State laws which will accomplish the 

purpose and effect of this chapter. 

(b) Promulgation of regulations; notice and 

comment; consultation with local governments 

(1) The head of the lead agency shall issue 

regulations to carry out this section. 

(2) Repealed. Pub. L. 104-66, title I, Sec. 

1121(f), Dec. 21, 1995, 109 Stat. 724. 

(3) Before making a determination regarding 

any State law under subsection (a) of this section, 

the head of the lead agency shall provide 

interested parties with an opportunity for public 

review and comment. In particular, the head of 

the lead agency shall consult with interested local 

general purpose governments within the State on 
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76 10BThe Uniform Act   

the effects of such State law on the ability of 

local governments to carry out their 

responsibilities under this chapter. 

(c) Effect of noncompliance with certification 

or with applicable law 

(1) The head of a Federal agency may 

withhold his approval of any Federal financial 

assistance to or contract or cooperative 

agreement with any displacing agency found by 

the Federal agency to have failed to comply with 

the laws described in subsection (a) of this 

section. 

(2) After consultation with the head of the 

lead agency, the head of a Federal agency may 

rescind his acceptance of any certification under 

this section, in whole or in part, if the State 

agency fails to comply with such certification or 

with State law. 

(Pub. L. 91-646, title I, Sec. 103, as added Pub. L. 100-

17, title IV, Sec. 403, Apr. 2, 1987, 101 Stat. 248; 

amended Pub. L. 104-66, title I, Sec. 1121(f), Dec. 21, 

1995, 109 Stat. 724.) 

AMENDMENTS 

1995 - Subsec. (b)(2). Pub. L. 104-66 struck out 

par. (2) which read as follows: "The head of the lead 

agency shall, in coordination with other Federal 

agencies, monitor from time to time, and report 

biennially to the Congress on, State agency 

implementation of this section. A State agency shall 

make available any information required for such 

purpose." 

EFFECTIVE DATE 

Section effective on effective date provided in 

regulations promulgated under section 4633 of this 

title (as amended by section 412 of Pub. L. 100-17), 

but not later than 2 years after Apr. 2, 1987, see 

section 418 of Pub. L. 100-17, set out as an 

Effective Date of 1987 Amendment note under 

section 4601 of this title.

§ 4605. Displaced persons not eligible for 

assistance 

(a) In general 

Except as provided in subsection (c) of this 

section, a displaced person shall not be eligible to 

receive relocation payments or any other 

assistance under this chapter if the displaced 

person is an alien not lawfully present in the 

United States. 

(b) Determinations of eligibility 

(1) Promulgation of regulations 

Not later than 1 year after November 21, 

1997, after providing notice and an 

opportunity for public comment, the head of 

the lead agency shall promulgate regulations 

to carry out subsection (a) of this section. 

(2) Contents of regulations 

Regulations promulgated under paragraph 

(1) shall - 

(A) prescribe the processes, procedures, 

and information that a displacing agency 

must use in determining whether a 

displaced person is an alien not lawfully 

present in the United States; 

(B) prohibit a displacing agency from 

discriminating against any displaced 

person; 

(C) ensure that each eligibility 

determination is fair and based on reliable 

information; and 

(D) prescribe standards for a displacing 

agency to apply in making determinations 

relating to exceptional and extremely 

unusual hardship under subsection (c) of 

this section. 

(c) Exceptional and extremely unusual 

hardship 

 If a displacing agency determines by clear 

and convincing evidence that a determination of 

the ineligibility of a displaced person under 

subsection (a) of this section would result in 

exceptional and extremely unusual hardship to an 

individual who is the displaced person's spouse, 

parent, or child and who is a citizen of the United 

States or an alien lawfully admitted for 

permanent residence in the United States, the 

displacing agency shall provide relocation 

payments and other assistance to the displaced 

person under this chapter if the displaced person 

would be eligible for the assistance but for 

subsection (a) of this section. 

(d) Limitation on statutory construction 

 Nothing in this section affects any right 

available to a displaced person under any other 

provision of Federal or State law. 

(Pub. L. 91-646, title I, Sec. 104, as added Pub. 

L. 105-117, Sec. 1, Nov. 21, 1997, 111 Stat. 

2384.) 
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 10BThe Uniform Act  77 

SUBCHAPTER II - UNIFORM 

RELOCATION ASSISTANCE 

§ 4621. Declaration of findings and policy 

(a) Findings 

The Congress finds and declares that - 

(1) displacement as a direct result of 

programs or projects undertaken by a Federal 

agency or with Federal financial assistance is 

caused by a number of activities, including 

rehabilitation, demolition, code enforcement, 

and acquisition; 

(2) relocation assistance policies must 

provide for fair, uniform, and equitable 

treatment of all affected persons; 

(3) the displacement of businesses often 

results in their closure; 

(4) minimizing the adverse impact of 

displacement is essential to maintaining the 

economic and social well-being of 

communities; and 

(5) implementation of this chapter has 

resulted in burdensome, inefficient, and 

inconsistent compliance requirements and 

procedures which will be improved by 

establishing a lead agency and allowing for 

State certification and implementation. 

(b) Policy 

 This subchapter establishes a uniform policy 

for the fair and equitable treatment of persons 

displaced as a direct result of programs or 

projects undertaken by a Federal agency or with 

Federal financial assistance. The primary purpose 

of this subchapter is to ensure that such persons 

shall not suffer disproportionate injuries as a 

result of programs and projects designed for the 

benefit of the public as a whole and to minimize 

the hardship of displacement on such persons. 

(c) Congressional intent 

It is the intent of Congress that - 

(1) Federal agencies shall carry out this 

subchapter in a manner which minimizes 

waste, fraud, and mismanagement and 

reduces unnecessary administrative costs 

borne by States and State agencies in 

providing relocation assistance; 

(2) uniform procedures for the administration of relocation assistance shall, to the 

maximum extent feasible, assure that the 

unique circumstances of any displaced person 

are taken into account and that persons in 

essentially similar circumstances are accorded 

equal treatment under this chapter; 

(3) the improvement of housing 

conditions of economically disadvantaged 

persons under this subchapter shall be 

undertaken, to the maximum extent feasible, 

in coordination with existing Federal, State, 

and local governmental programs for 

accomplishing such goals; and 

(4) the policies and procedures of this 

chapter will be administered in a manner 

which is consistent with fair housing 

requirements and which assures all persons 

their rights under title VIII of the Act of April 

11, 1968 (Public Law 90-284), commonly 

known as the Civil Rights Act of 1968 [42 

U.S.C. 3601 et seq.], and title VI of the Civil 

Rights Act of 1964 [42 U.S.C. 2000d et seq.]. 

(Pub. L. 91-646, title II, Sec. 201, Jan. 2, 1971, 

84 Stat. 1895; Pub. L. 100-17, title IV, Sec. 404, 

Apr. 2, 1987, 101 Stat. 248.) 

REFERENCES IN TEXT 

This chapter, referred to in subsecs. (a)(5) and 

(c)(2), (4), was in the original "this Act", meaning 

Pub. L. 91-646, Jan. 2, 1971, 84 Stat. 1894, known 

as the Uniform Relocation Assistance and Real 

Property Acquisition Policies Act of 1970, which 

enacted this chapter, amended sections 1415, 

2473, and 3307 of this title and section 1606 of 

former Title 49, Transportation, repealed sections 

1465 and 3071 to 3074 of this title, section 2680 of 

Title 10, Armed Forces, sections 141 and 501 to 

512 of Title 23, Highways, section 596 of Title 33, 

Navigation and Navigable Waters, sections 1231 to 

1234 of Title 43, Public Lands, and enacted 

provisions set out as notes under sections 4601, 

4621, and 4651 of this title and under section 501 of 

Title 23. For complete classification of this Act to the 

Code, see Short Title note set out under section 

4601 of this title and Tables. 

This subchapter, referred to in subsecs. (b) and 

(c)(1), (3), was in the original "this title", meaning 

title II of Pub. L. 91-646, Jan. 2, 1971, 84 Stat. 

1895, which enacted this subchapter, amended 

sections 1415, 2473, and 3307 of this title and 

section 1606 of former Title 49, repealed sections 

1465 and 3074 of this title, section 2680 of Title 10, 

sections 501 to 512 of Title 23, sections 1231 to 

1234 of Title 43, and enacted provisions set out as 

notes under sections 4601 and 4621 of this title and 

under sections 501 to 512 of Title 23. For complete 

classification of title II to the Code, see Tables. 

Title VIII of the Act of April 11, 1968 (Public Law 90-

284), commonly known as the Civil Rights Act of 
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78 10BThe Uniform Act   

1968, referred to in subsec. (c)(4), is title VIII of 

Pub. L. 90-284, Apr. 11, 1968, 82 Stat. 81, as 

amended, known as the Fair Housing Act, which is 

classified principally to subchapter I (Sec. 3601 et 

seq.) of chapter 45 of this title. For complete 

classification of this Act to the Code, see Short Title 

note set out under section 3601 of this title and 

Tables. 

The Civil Rights Act of 1964, referred to in subsec. 

(c)(4), is Pub. L. 88-352, July 2, 1964, 78 Stat. 241, 

as amended. Title VI of the Civil Rights Act of 1964 

is classified generally to subchapter V (Sec. 2000d 

et seq.) of chapter 21 of this title. For complete 

classification of this Act to the Code, see Short Title 

note set out under section 2000a of this title and 

Tables. 

AMENDMENTS 

1987 - Pub. L. 100-17 substituted "Declaration of 

findings and policy" for "Declaration of policy" in 

section catchline and amended text generally. Prior 

to amendment, text read as follows:"The purpose of 

this subchapter is to establish a uniform policy for 

the fair and equitable treatment of persons 

displaced as a result of Federal and federally 

assisted programs in order that such persons shall 

not suffer disproportionate injuries as a result of 

programs designed for the benefit of the public as a 

whole." 

EFFECTIVE DATE OF 1987 AMENDMENT 

Amendment by Pub. L. 100-17 effective on effective 

date provided in regulations promulgated under 

section 4633 of this title (as amended by section 

412 of Pub. L. 100-17), but not later than 2 years 

after Apr. 2, 1987, see section 418 of Pub. L. 100-

17, set out as a note under section 4601 of this title. 

SAVINGS PROVISION 

Section 220(b) of Pub. L. 91-646 provided that: "Any 

rights or liabilities now existing under prior Acts or 

portions thereof shall not be affected by the repeal 

of such prior Acts or portions thereof under 

subsection (a) of this section [repealing sections 

1415(7)(b)(iii), (8) second sentence, 1465, 

2473(b)(14), 3074, and 3307(b), (c) of this title, 

section 2680 of Title 10, Armed Forces, sections 

501 to 512 of Title 23, Highways, sections 1231 to 

1234 of Title 43, Public Lands, and section 1606(b) 

of former Title 49, Transportation, and provisions 

set out as notes under sections 501 and 511 of Title 

23]." 

§ 4622. Moving and related expenses 

(a) General provision 

Whenever a program or project to be 

undertaken by a displacing agency will result in 

the displacement of any person, the head of the 

displacing agency shall provide for the payment 

to the displaced person of - 

(1) actual reasonable expenses in moving 

himself, his family, business, farm operation, 

or other personal property; 

(2) actual direct losses of tangible 

personal property as a result of moving or 

discontinuing a business or farm operation, 

but not to exceed an amount equal to the 

reasonable expenses that would have been 

required to relocate such property, as 

determined by the head of the agency; 

(3) actual reasonable expenses in 

searching for a replacement business or farm; 

and 

(4) actual reasonable expenses necessary 

to reestablish a displaced farm, nonprofit 

organization, or small business at its new site, 

but not to exceed $10,000. 

(b) Displacement from dwelling; election of 

payments: expense and dislocation 

allowance 

Any displaced person eligible for payments 

under subsection (a) of this section who is 

displaced from a dwelling and who elects to 

accept the payments authorized by this 

subsection in lieu of the payments authorized by 

subsection (a) of this section may receive an 

expense and dislocation allowance, which shall 

be determined according to a schedule 

established by the head of the lead agency. 

(c) Displacement from business or farm 

operation; election of payments; minimum 

and maximum amounts; eligibility 

Any displaced person eligible for payments 

under subsection (a) of this section who is 

displaced from the person's place of business or 

farm operation and who is eligible under criteria 

established by the head of the lead agency may 

elect to accept the payment authorized by this 

subsection in lieu of the payment authorized by 

subsection (a) of this section. Such payment shall 

consist of a fixed payment in an amount to be 

determined according to criteria established by 

the head of the lead agency, except that such 

payment shall not be less than $1,000 nor more 

than $20,000. A person whose sole business at 

the displacement dwelling is the rental of such 

property to others shall not qualify for a payment 

under this subsection 
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(d) Certain utility relocation expenses 

(1) Except as otherwise provided by Federal 

law – 

(A) if a program or project (i) which is 

undertaken by a displacing agency, and (ii) 

the purpose of which is not to relocate or 

reconstruct any utility facility, results in the 

relocation of a utility facility; 

(B) if the owner of the utility facility 

which is being relocated under such program 

or project has entered into, with the State or 

local government on whose property, 

easement, or right-of-way such facility is 

located, a franchise or similar agreement with 

respect to the use of such property, easement, 

or right-of-way; and 

(C) if the relocation of such facility 

results in such owner incurring an 

extraordinary cost in connection with such 

relocation; 

the displacing agency may, in accordance with 

such regulations as the head of the lead agency 

may issue, provide to such owner a relocation 

payment which may not exceed the amount of 

such extraordinary cost (less any increase in the 

value of the new utility facility above the value of 

the old utility facility and less any salvage value 

derived from the old utility facility). 

(2) For purposes of this subsection, the term - 

(A) "extraordinary cost in connection with 

a relocation" means any cost incurred by the 

owner of a utility facility in connection with 

relocation of such facility which is 

determined by the head of the displacing 

agency, under such regulations as the head of 

the lead agency shall issue - 

(i) to be a non-routine relocation 

expense; 

(ii) to be a cost such owner ordinarily 

does not include in its annual budget as an 

expense of operation; and 

(iii) to meet such other requirements 

as the lead agency may prescribe in such 

regulations; and 

(B) "utility facility" means - 

(i) any electric, gas, water, steam 

power, or materials transmission or 

distribution system; 

(ii) any transportation system; 

(iii) any communications system 

(including cable television); and 

(iv) any fixtures, equipment, or 

other property associated with the 

operation, maintenance, or repair of any 

such system; 

located on property which is owned by a State 

or local government or over which a State or 

local government has an easement or right-ofway. A utility facility may be publicly, 

privately, or cooperatively owned. 

(Pub. L. 91-646, title II, Sec. 202, Jan. 2, 1971, 

84 Stat. 1895; Pub. L. 100-17, title IV, Sec. 405, 

Apr. 2, 1987, 101 Stat. 249.) 

AMENDMENTS 

1987 - Subsec. (a). Pub. L. 100-17, Sec. 405(a)(1), 

inserted introductory provisions and struck out 

former introductory provisions which read as 

follows: "Whenever the acquisition of real property 

for a program or project undertaken by a Federal 

agency in any State will result in the displacement 

of any person on or after January 2, 1971, the head 

of such agency shall make a payment to any 

displaced person, upon proper application as 

approved by such agency head, for - ". 

Subsec. (a)(4). Pub. L. 100-17, Sec. 405(a)(2)-(4), 

added par. (4) 

Subsec. (b). Pub. L. 100-17, Sec. 405(b), 

substituted "an expense and dislocation allowance, 

which shall be determined according to a schedule 

established by the head of the lead agency" for "a 

moving expense allowance, determined according 

to a schedule established by the head of the 

Federal agency, not to exceed $300; and a 

dislocation allowance of $200". 

Subsec. (c). Pub. L. 100-17, Sec. 405(c), amended 

subsec. (c) generally. Prior to amendment, subsec. 

(c) read as follows: "Any displaced person eligible 

for payments under subsection (a) of this section 

who is displaced from his place of business or from 

his farm operation and who elects to accept the 

payment authorized by this subsection in lieu of the 

payment authorized by subsection (a) of this 

section, may receive a fixed payment in an amount 

equal to the average annual net earnings of the 

business or farm operation, except that such 

payment shall be not less than $2,500 nor more 

than $10,000. In the case of a business no payment 

shall be made under this subsection unless the 

head of the Federal agency is satisfied that the 

business (1) cannot be relocated without a 

substantial loss of its existing patronage, and (2) is 

not a part of a commercial enterprise having at least 

one other establishment not being acquired by the 

United States, which is engaged in the same or 
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80 10BThe Uniform Act   

similar business. For purposes of this subsection, 

the term 'average annual net earnings' means onehalf of any net earnings of the business or farm 

operation, before Federal, State, and local income 

taxes, during the two taxable years immediately 

preceding the taxable year in which such business 

or farm operation moves from the real property 

acquired for such project, or during such other 

period as the head of such agency determines to be 

more equitable for establishing such earnings, and 

includes any compensation paid by the business or 

farm operation to the owner, his spouse, or his 

dependents during such period." 

Subsec. (d). Pub. L. 100-17, Sec. 405(d), added 

subsec. (d). 

EFFECTIVE DATE OF 1987 AMENDMENT 

Amendment by Pub. L. 100-17 effective on 

effective date provided in regulations promulgated 

under section 4633 of this title (as amended by 

section 412 of Pub. L. 100-17), but not later than 2 

years after Apr. 2, 1987, see section 418 of Pub. L. 

100-17, set out as a note under section 4601 of this 

title. 

§ 4623. Replacement housing for homeowner; 

mortgage insurance 

(a)(1) In addition to payments otherwise 

authorized by this subchapter, the head of the 

displacing agency shall make an additional 

payment not in excess of $22,500 to any 

displaced person who is displaced from a 

dwelling actually owned and occupied by such 

displaced person for not less than one hundred 

and eighty days prior to the initiation of 

negotiations for the acquisition of the property. 

Such additional payment shall include the 

following elements: 

(A) The amount, if any, which when 

added to the acquisition cost of the dwelling 

acquired by the displacing agency, equals the 

reasonable cost of a comparable replacement 

dwelling. 

(B) The amount, if any, which will 

compensate such displaced person for any 

increased interest costs and other debt service 

costs which such person is required to pay for 

financing the acquisition of any such 

comparable replacement dwelling. Such 

amount shall be paid only if the dwelling 

acquired by the displacing agency was 

encumbered by a bona fide mortgage which 

was a valid lien on such dwelling for not less 

than 180 days immediately prior to the 

initiation of negotiations for the acquisition of 

such dwelling. 

(C) Reasonable expenses incurred by 

such displaced person for evidence of title, 

recording fees, and other closing costs 

incident to the purchase of the replacement 

dwelling, but not including prepaid expenses. 

(2) The additional payment authorized by this 

section shall be made only to a displaced person 

who purchases and occupies a decent, safe, and 

sanitary replacement dwelling within 1 year after 

the date on which such person receives final 

payment from the displacing agency for the 

acquired dwelling or the date on which the 

displacing agency's obligation under section 

4625(c)(3) of this title is met, whichever is later, 

except that the displacing agency may extend 

such period for good cause. If such period is 

extended, the payment under this section shall be 

based on the costs of relocating the person to a 

comparable replacement dwelling within 1 year 

of such date. 

(b) The head of any Federal agency may, 

upon application by a mortgagee, insure any 

mortgage (including advances during 

construction) on a comparable replacement 

dwelling executed by a displaced person assisted 

under this section, which mortgage is eligible for 

insurance under any Federal law administered by 

such agency notwithstanding any requirements 

under such law relating to age, physical 

condition, or other personal characteristics of 

eligible mortgagors, and may make commitments 

for the insurance of such mortgage prior to the 

date of execution of the mortgage. 

(Pub. L. 91-646, title II, Sec. 203, Jan. 2, 1971, 

84 Stat. 1896; Pub. L. 100-17, title IV, Sec. 406, 

Apr. 2, 1987, 101 Stat. 251.) 

AMENDMENTS 

1987 - Subsec. (a)(1). Pub. L. 100-17, Sec. 406(1)-

(3), substituted "displacing agency" for "Federal 

agency" and "$22,500" for "$15,000" in introductory 

provisions, and in subpar. (A) "acquired by the 

displacing agency, equals the reasonable cost of a 

comparable replacement dwelling" for "acquired by 

the Federal agency, equals the reasonable cost of a 

comparable replacement dwelling which is a decent, 

safe, and sanitary dwelling adequate to 

accommodate such displaced person, reasonably 

accessible to public services and places of 

employment and available on the private market. All 

determinations required to carry out this 

subparagraph shall be made in accordance with 

standards established by the head of the Federal 
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agency making the additional payment". 

Subsec. (a)(1)(B). Pub. L. 100-17, Sec. 406(4), 

added subpar. (B) and struck out former subpar. (B) 

which read as follows: "The amount, if any, which 

will compensate such displaced person for any 

increased interest costs which such person is 

required to pay for financing the acquisition of any 

such comparable replacement dwelling. Such 

amount shall be paid only if the dwelling acquired by 

the Federal agency was encumbered by a bona fide 

mortgage which was a valid lien on such dwelling 

for not less than one hundred and eighty days prior 

to the initiation of negotiations for the acquisition of 

such dwelling. Such amount shall be equal to the 

excess in the aggregate interest and other debt 

service costs of that amount of the principal of the 

mortgage on the replacement dwelling which is 

equal to the unpaid balance of the mortgage on the 

acquired dwelling, over the remainder term of the 

mortgage on the acquired dwelling, reduced to 

discounted present value. The discount rate shall be 

the prevailing interest rate paid on savings deposits 

by commercial banks in the general area in which 

the replacement dwelling is located." 

Subsec. (a)(2). Pub. L. 100-17, Sec. 406(5), added 

par. (2) and struck out former par. (2) which read as 

follows: "The additional payment authorized by this 

subsection shall be made only to such a displaced 

person who purchases and occupies a replacement 

dwelling which is decent, safe, and sanitary not later 

than the end of the one year period beginning on 

the date on which he receives from the Federal 

agency final payment of all costs of the acquired 

dwelling, or on the date on which he moves from the 

acquired dwelling, whichever is the later date." 

EFFECTIVE DATE OF 1987 AMENDMENT 

Amendment by Pub. L. 100-17 effective on effective 

date provided in regulations promulgated under 

section 4633 of this title (as amended by section 

412 of Pub. L. 100-17), but not later than 2 years 

after Apr. 2, 1987, see section 418 of Pub. L. 100-

17, set out as a note under section 4601 of this title. 

§ 4624. Replacement housing for tenants and 

certain others 

(a) In addition to amounts otherwise 

authorized by this subchapter, the head of a 

displacing agency shall make a payment to or for 

any displaced person displaced from any 

dwelling not eligible to receive a payment under 

section 4623 of this title which dwelling was 

actually and lawfully occupied by such displaced 

person for not less than 90 days immediately 

prior to (1) the initiation of negotiations for 

acquisition of such dwelling, or (2) in any case in 

which displacement is not a direct result of 

acquisition, such other event as the head of the 

lead agency shall prescribe. Such payment shall 

consist of the amount necessary to enable such 

person to lease or rent for a period not to exceed 

42 months, a comparable replacement dwelling, 

but not to exceed $5,250. At the discretion of the 

head of the displacing agency, a payment under 

this subsection may be made in periodic 

installments. Computation of a payment under 

this subsection to a low-income displaced person 

for a comparable replacement dwelling shall take 

into account such person's income. 

(b) Any person eligible for a payment under 

subsection (a) of this section may elect to apply 

such payment to a down payment on, and other 

incidental expenses pursuant to, the purchase of a 

decent, safe, and sanitary replacement dwelling. 

Any such person may, at the discretion of the 

head of the displacing agency, be eligible under 

this subsection for the maximum payment 

allowed under subsection (a) of this section, 

except that, in the case of a displaced homeowner 

who has owned and occupied the displacement 

dwelling for at least 90 days but not more than 

180 days immediately prior to the initiation of 

negotiations for the acquisition of such dwelling, 

such payment shall not exceed the payment such 

person would otherwise have received under 

section 4623(a) of this title had the person owned 

and occupied the displacement dwelling 180 days 

immediately prior to the initiation of such 

negotiations. 

(Pub. L. 91-646, title II, Sec. 204, Jan. 2, 1971, 

84 Stat. 1897; Pub. L. 100-17, title IV, Sec. 407, 

Apr. 2, 1987, 101 Stat. 251.) 

AMENDMENTS 

1987 - Pub. L. 100-17 amended section generally, 

revising and restating as subsecs. (a) and (b) 

provisions formerly contained in introductory 

provisions and in pars. (1) and (2). 

EFFECTIVE DATE OF 1987 AMENDMENT 

Amendment by Pub. L. 100-17 effective on effective 

date provided in regulations promulgated under 

section 4633 of this title (as amended by section 

412 of Pub. L. 100-17), but not later than 2 years 

after Apr. 2, 1987, see section 418 of Pub. L. 100-

17, set out as a note under section 4601 of this title. 
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82 10BThe Uniform Act   

§ 4625. Relocation planning, assistance 

coordination, and advisory services 

(a) Planning of programs or projects 

undertaken by Federal agencies or with 

Federal financial assistance 

Programs or projects undertaken by a Federal 

agency or with Federal financial assistance shall 

be planned in a manner that (1) recognizes, at an 

early stage in the planning of such programs or 

projects and before the commencement of any 

actions which will cause displacements, the 

problems associated with the displacement of 

individuals, families, businesses, and farm 

operations, and (2) provides for the resolution of 

such problems in order to minimize adverse 

impacts on displaced persons and to expedite 

program or project advancement and completion. 

(b) Availability of advisory services

The head of any displacing agency shall 

ensure that the relocation assistance advisory 

services described in subsection (c) of this 

section are made available to all persons 

displaced by such agency. If such agency head 

determines that any person occupying property 

immediately adjacent to the property where the 

displacing activity occurs is caused substantial 

economic injury as a result thereof, the agency 

head may make available to such person such 

advisory services. 

(c) Measures, facilities, or services; description

Each relocation assistance advisory program 

required by subsection (b) of this section shall 

include such measures, facilities, or services as 

may be necessary or appropriate in order to - 

(1) determine, and make timely 

recommendations on, the needs and 

preferences, if any, of displaced persons for 

relocation assistance; 

(2) provide current and continuing 

information on the availability, sales prices, 

and rental charges of comparable replacement 

dwellings for displaced homeowners and 

tenants and suitable locations for businesses 

and farm operations; 

(3) assure that a person shall not be 

required to move from a dwelling unless the 

person has had a reasonable opportunity to 

relocate to a comparable replacement 

dwelling, except in the case of - 

(A) a major disaster as defined in 

section 5122(2) of this title; 

(B) a national emergency declared 

by the President; or 

(C) any other emergency which 

requires the person to move immediately 

from the dwelling because continued 

occupancy of such dwelling by such 

person constitutes a substantial danger to 

the health or safety of such person; 

(4) assist a person displaced from a 

business or farm operation in obtaining and 

becoming established in a suitable 

replacement location; 

(5) supply 

(A) information concerning other 

Federal and State programs which may be 

of assistance to displaced persons, and 

(B) technical assistance to such 

persons in applying for assistance under 

such programs; and 

(6) provide other advisory services to 

displaced persons in order to minimize 

hardships to such persons in adjusting to 

relocation. 

(d) Coordination of relocation activities with 

other Federal, State, or local 

governmental actions 

The head of a displacing agency shall 

coordinate the relocation activities performed by 

such agency with other Federal, State, or local 

governmental actions in the community which 

could affect the efficient and effective delivery of 

relocation assistance and related services. 

(e) Selection of implementation procedures 

Whenever two or more Federal agencies 

provide financial assistance to a displacing 

agency other than a Federal agency, to implement 

functionally or geographically related activities 

which will result in the displacement of a person, 

the heads of such Federal agencies may agree 

that the procedures of one of such agencies shall 

be utilized to implement this subchapter with 

respect to such activities. If such agreement 

cannot be reached, then the head of the lead 

agency shall designate one of such agencies as 

the agency whose procedures shall be utilized to 

implement this subchapter with respect to such 

activities. Such related activities shall constitute a 

single program or project for purposes of this 

chapter. 
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(f) Tenants occupying property acquired for 

programs or projects; eligibility for 

advisory services 

Notwithstanding section 4601(1) of this title, 

in any case in which a displacing agency acquires 

property for a program or project, any person 

who occupies such property on a rental basis for 

a short term or a period subject to termination 

when the property is needed for the program or 

project shall be eligible for advisory services to 

the extent determined by the displacing agency. 

(Pub. L. 91-646, title II, Sec. 205, Jan. 2, 1971, 

84 Stat. 1897; Pub. L. 100-17, title IV, Sec. 408, 

Apr. 2, 1987, 101 Stat. 252.) 

AMENDMENTS 

1987 - Pub. L. 100-17, substituted "Relocation 

planning, assistance coordination, and advisory 

services" for "Relocation assistance advisory 

services" in catch line and amended text generally, 

revising and restating as subsecs. (a) to (f) 

provisions formerly contained in subsecs. (a) to (d). 

EFFECTIVE DATE OF 1987 AMENDMENT 

Amendment by Pub. L. 100-17 effective on effective 

date provided in regulations promulgated under 

section 4633 of this title (as amended by section 

412 of Pub. L. 100-17), but not later than 2 years 

after Apr. 2, 1987, see section 418 of Pub. L. 100-

17, set out as a note under section 4601 of this title. 

§ 4626. Housing replacement by Federal 

agency as last resort 

(a) If a program or project undertaken by a 

Federal agency or with Federal financial 

assistance cannot proceed on a timely basis 

because comparable replacement dwellings are 

not available, and the head of the displacing 

agency determines that such dwellings cannot 

otherwise be made available, the head of the 

displacing agency may take such action as is 

necessary or appropriate to provide such 

dwellings by use of funds authorized for such 

project. The head of the displacing agency may 

use this section to exceed the maximum amounts 

which may be paid under sections 4623 and 4624 

of this title on a case-by-case basis for good 

cause as determined in accordance with such 

regulations as the head of the lead agency shall 

issue. 

(b) No person shall be required to move 

from his dwelling on account of any program or 

project undertaken by a Federal agency or with 

Federal financial assistance, unless the head of 

the displacing agency is satisfied that comparable 

replacement housing is available to such person. 

(Pub. L. 91-646, title II, Sec. 206, Jan. 2, 1971, 

84 Stat. 1898; Pub. L. 100-17, title IV, Sec. 409, 

Apr. 2, 1987, 101 Stat. 253.) 

AMENDMENTS 

1987 Subsec. (a). Pub. L. 100-17 amended subsec. 

(a) generally. Prior to amendment, subsec. (a) read 

as follows: "If a Federal project cannot proceed to 

actual construction because comparable 

replacement sale or rental housing is not available, 

and the head of the Federal agency determines that 

such housing cannot otherwise be made available 

he may take such action as is necessary or 

appropriate to provide such housing by use of funds 

authorized for such project." 

Subsec. (b). Pub. L. 100-17 amended subsec. (b) 

generally. Prior to amendment, subsec. (b) read as 

follows: "No person shall be required to move from 

his dwelling on or after January 2, 1971, on account 

of any Federal project, unless the Federal agency 

head is satisfied that replacement housing, in 

accordance with section 4625(c)(3) of this title, is 

available to such person." 

EFFECTIVE DATE OF 1987 AMENDMENT 

Amendment by Pub. L. 100-17 effective on effective 

date provided in regulations promulgated under 

section 4633 of this title (as amended by section 

412 of Pub. L. 100-17), but not later than 2 years 

after Apr. 2, 1987, see section 418 of Pub. L. 100-

17, set out as a note under section 4601 of this title. 

§ 4627. State required to furnish real property 

incident to Federal assistance (local 

cooperation) 

Whenever real property is acquired by a State 

agency and furnished as a required contribution 

incident to a Federal program or project, the 

Federal agency having authority over the 

program or project may not accept such property 

unless such State agency has made all payments 

and provided all assistance and assurances, as are 

required of a State agency by sections 4630 and 

4655 of this title. Such State agency shall pay the 

cost of such requirements in the same manner 

and to the same extent as the real property 

acquired for such project, except that in the case 

of any real property acquisition or displacement 

occurring prior to July 1, 1972, such Federal 

agency shall pay 100 per centum of the first 

$25,000 of the cost of providing such payments 

and assistance. 
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84 10BThe Uniform Act   

(Pub. L. 91-646, title II, Sec. 207, Jan. 2, 1971, 

84 Stat. 1898.) 

§ 4628. State acting as agent for Federal 

program 

Whenever real property is acquired by a State 

agency at the request of a Federal agency for a 

Federal program or project, such acquisition 

shall, for the purposes of this chapter, be deemed 

an acquisition by the Federal agency having 

authority over such program or project. 

(Pub. L. 91-646, title II, Sec. 208, Jan. 2, 1971, 

84 Stat. 1899.) 

§ 4629. Public works programs and projects of 

District of Columbia government and 

Washington Metropolitan Area Transit 

Authority 

Whenever real property is acquired by the 

government of the District of Columbia or the 

Washington Metropolitan Area Transit Authority 

for a program or project which is not subject to 

sections 4630 and 4631 of this title, and such 

acquisition will result in the displacement of any 

person on or after January 2, 1971, the Mayor of 

the District of Columbia or the Washington 

Metropolitan Area Transit Authority, as the case 

may be, shall make all relocation payments and 

provide all assistance required of a Federal 

agency by this chapter. Whenever real property is 

acquired for such a program or project on or after 

such effective date, such Mayor or Authority, as 

the case may be, shall make all payments and 

meet all requirements prescribed for a Federal 

agency by subchapter III of this chapter. 

(Pub. L. 91-646, title II, Sec. 209, Jan. 2, 1971, 

84 Stat. 1899; Pub. L. 93-198, title IV, Sec. 421, 

Dec. 24, 1973, 87 Stat. 789.) 

REFERENCES IN TEXT 

Subchapter III of this chapter, referred to in text, 

was in the original "title III of this Act", meaning title 

III of Pub. L. 91- 646, Jan. 2, 1971, 84 Stat. 1904, 

which enacted subchapter III of this chapter, 

repealed sections 3071 to 3073 of this title, section 

141 of Title 23, Highways, and section 596 of Title 

33, Navigation and Navigable Waters, and enacted 

provisions set out as a note under section 4651 of 

this title. For complete classification of title III to the 

Code, see Tables. 

CODIFICATION 

Section is also set out in D.C. Code, Sec. 5-834(a).-

TRANSTRANSFER OF FUNCTIONS 

"Mayor" substituted for "Commissioner" pursuant to 

section 421 of Pub. L. 93-198. Office of 

Commissioner of District of Columbia, as 

established by Reorg. Plan No. 3 of 1967, abolished 

as of noon Jan. 2, 1975, by Pub. L. 93-198, title VII, 

Sec. 711, Dec. 24, 1973, 87 Stat. 818, and replaced 

by Office of Mayor of District of Columbia by section 

421 of Pub. L. 93-198. 

§ 4630. Requirements for relocation payments 

and assistance of federally assisted 

program; assurances of availability of 

housing 

Notwithstanding any other law, the head of a 

Federal agency shall not approve any grant to, or 

contract or agreement with, a displacing agency 

(other than a Federal agency), under which 

Federal financial assistance will be available to 

pay all or part of the cost of any program or 

project which will result in the displacement of 

any person on or after January 2, 1971, unless he 

receives satisfactory assurances from such 

displacing agency that - 

(1) fair and reasonable relocation 

payments and assistance shall be provided to 

or for displaced persons, as are required to be 

provided by a Federal agency under sections 

4622, 4623, and 4624 of this title; 

(2) relocation assistance programs 

offering the services described in section 

4625 of this title shall be provided to such 

displaced persons; 

(3) within a reasonable period of time 

prior to displacement, comparable 

replacement dwellings will be available to 

displaced persons in accordance with section 

4625(c)(3) of this title. 

(Pub. L. 91-646, title II, Sec. 210, Jan. 2, 1971, 

84 Stat. 1899; Pub. L. 100-17, title IV, Sec. 410, 

Apr. 2, 1987, 101 Stat. 254.) 

AMENDMENTS 

1987 - Pub. L. 100-17 in introductory provisions 

substituted "displacing agency (other than a Federal 

agency)" for "State agency" and "assurances from 

such displacing agency" for "assurances from such 

State agency", and in par. (3) substituted 

"comparable replacement dwellings" for "decent, 

safe, and sanitary replacement dwellings". 

EFFECTIVE DATE OF 1987 AMENDMENT 

Amendment by Pub. L. 100-17 effective on effective 
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 10BThe Uniform Act  85 

date provided in regulations promulgated under 

section 4633 of this title (as amended by section 

412 of Pub. L. 100-17), but not later than 2 years 

after Apr. 2, 1987, see section 418 of Pub. L. 100-

17, set out as a note under section 4601 of this title. 

EFFECTIVE DATE 

Section as completely applicable to all States after 

July 1, 1972, but until such date applicable to a 

State to extent the State is able under its laws to 

comply with this section, see section 221(b) of Pub. 

L. 91-646, set out as a note under section 4601 of 

this title. 

§ 4631. Federal share of costs 

(a) Cost to displacing agency; eligibility 

The cost to a displacing agency of providing 

payments and assistance under this subchapter 

and subchapter III of this chapter shall be 

included as part of the cost of a program or 

project undertaken by a Federal agency or with 

Federal financial assistance. A displacing agency, 

other than a Federal agency, shall be eligible for 

Federal financial assistance with respect to such 

payments and assistance in the same manner and 

to the same extent as other program or project 

costs. 

(b) Comparable payments under other laws 

No payment or assistance under this 

subchapter or subchapter III of this chapter shall 

be required to be made to any person or included 

as a program or project cost under this section, if 

such person receives a payment required by 

Federal, State, or local law which is determined 

by the head of the Federal agency to have 

substantially the same purpose and effect as such 

payment under this section. 

(c) Agreements prior to January 2, 1971; 

advancements 

Any grant to, or contract or agreement with, a 

State agency executed before January 2, 1971, 

under which Federal financial assistance is 

available to pay all or part of the cost of any 

program or project which will result in the 

displacement of any person on or after January 2, 

1971, shall be amended to include the cost of 

providing payments and services under sections 

4630 and 4655 of this title. If the head of a 

Federal agency determines that it is necessary for 

the expeditious completion of a program or 

project he may advance to the State agency the 

Federal share of the cost of any payments or 

assistance by such State agency pursuant to 

sections 4626, 4630, 4635, and 4655 of this title. 

(Pub. L. 91-646, title II, Sec. 211, Jan. 2, 1971, 

84 Stat. 1900; Pub. L. 100-17, title IV, Sec. 411, 

Apr. 2, 1987, 101 Stat. 254.) 

REFERENCES IN TEXT 

Subchapter III of this chapter, referred to in 

subsecs. (a) and (b), was in the original "title III of 

this Act", meaning title III of Pub. L. 91-646, Jan. 2, 

1971, 84 Stat. 1904, which enacted subchapter III of 

this chapter, repealed sections 3071 to 3073 of this 

title, section 141 of Title 23, Highways, and section 

596 of Title 33, Navigation and Navigable Waters, 

and enacted provisions set out as a note under 

section 4651 of this title. For complete classification 

of title III to the Code, see Tables. 

-AMENDMENTS 

1987 - Subsec. (a). Pub. L. 100-17, Sec. 411(a), 

amended subsec. (a) generally. Prior to 

amendment, subsec. (a) read as follows: 

"The cost to a State agency of providing payments 

and assistance pursuant to sections 4626, 4630, 

4635, and 4655 of this title, shall be included as part 

of the cost of a program or project for which Federal 

financial assistance is available to such State 

agency, and such State agency shall be eligible for 

Federal financial assistance with respect to such 

payments and assistance in the same manner and 

to the same extent as other program or project 

costs, except that, notwithstanding any other law in 

the case where the Federal financial assistance is 

by grant or contribution the Federal agency shall 

pay the full amount of the first $25,000 of the cost to 

a State agency of providing payments and 

assistance for a displaced person under sections 

4626, 4630, 4635, and 4655 of this title, on account 

of any acquisition or displacement occurring prior to 

July 1, 1972, and in any case where such Federal 

financial assistance is by loan, the Federal agency 

shall loan such State agency the full amount of the 

first $25,000 of such cost." 

Subsec. (b). Pub. L. 100-17, Sec. 411(b), amended 

subsec. (b) generally. Prior to amendment, subsec. 

(b) read as follows: "No payment or assistance 

under section 4630 or 4655 of this title shall be 

required or included as a program or project cost 

under this section, if the displaced person receives 

a payment required by the State law of eminent 

domain which is determined by such Federal 

agency head to have substantially the same 

purpose and effect as such payment under this 

section, and to be part of the cost of the program or 

project for which Federal financial assistance is 

available." 
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86 10BThe Uniform Act   

EFFECTIVE DATE OF 1987 AMENDMENT 

Amendment by Pub. L. 100-17 effective on effective 

date provided in regulations promulgated under 

section 4633 of this title (as amended by section 

412 of Pub. L. 100-17), but not later than 2 years 

after Apr. 2, 1987, see section 418 of Pub. L. 100-

17, set out as a note under section 4601 of this title. 

§ 4632. Administration; relocation assistance 

in programs receiving Federal financial 

assistance 

In order to prevent unnecessary expenses and 

duplications of functions, and to promote uniform 

and effective administration of relocation 

assistance programs for displaced persons under 

sections 4626, 4630, and 4635 of this title, a State 

agency may enter into contracts with any 

individual, firm, association, or corporation for 

services in connection with such programs, or 

may carry out its functions under this subchapter 

through any Federal or State governmental 

agency or instrumentality having an established 

organization for conducting relocation assistance 

programs. Such State agency shall, in carrying 

out the relocation assistance activities described 

in section 4626 of this title, whenever practicable, 

utilize the services of State or local housing 

agencies, or other agencies having experience in 

the administration or conduct of similar housing 

assistance activities. 

(Pub. L. 91-646, title II, Sec. 212, Jan. 2, 1971, 

84 Stat. 1900.) 

§ 4633. Duties of lead agency 

(a) General provisions 

The head of the lead agency shall - 

(1) develop, publish, and issue, with the 

active participation of the Secretary of 

Housing and Urban Development and the 

heads of other Federal agencies responsible 

for funding relocation and acquisition actions, 

and in coordination with State and local 

governments, such regulations as may be 

necessary to carry out this chapter; 

(2) provide, in consultation with the 

Attorney General (acting through the 

Commissioner of the Immigration and 

Naturalization Service), through training and 

technical assistance activities for displacing 

agencies, information developed with the 

Attorney General (acting through the 

Commissioner) on proper implementation of 

section 4605 of this title; 

(3) ensure that displacing agencies 

implement section 4605 of this title fairly and 

without discrimination in accordance with 

section 4605(b)(2)(B) of this title; 

(4) ensure that relocation assistance 

activities under this chapter are coordinated 

with low-income housing assistance programs 

or projects by a Federal agency or a State or 

State agency with Federal financial 

assistance; 

(5) monitor, in coordination with other 

Federal agencies, the implementation and 

enforcement of this chapter and report to the 

Congress, as appropriate, on any major issues 

or problems with respect to any policy or 

other provision of this chapter; and 

(6) perform such other duties as may be 

necessary to carry out this chapter. 

(b) Regulations and procedures 

The head of the lead agency is authorized to 

issue such regulations and establish such 

procedures as he may determine to be necessary 

to assure - 

(1) that the payments and assistance 

authorized by this chapter shall be 

administered in a manner which is fair and 

reasonable and as uniform as practicable; 

(2) that a displaced person who makes 

proper application for a payment authorized 

for such person by this subchapter shall be 

paid promptly after a move or, in hardship 

cases, be paid in advance; and 

(3) that any aggrieved person may have 

his application reviewed by the head of the 

Federal agency having authority over the 

applicable program or project or, in the case 

of a program or project receiving Federal 

financial assistance, by the State agency 

having authority over such program or project 

or the Federal agency having authority over 

such program or project if there is no such 

State agency. 

(c) Applicability to Tennessee Valley 

Authority and Rural Electrification 

Administration 

The regulations and procedures issued 

pursuant to this section shall apply to the 

Tennessee Valley Authority and the Rural 

Electrification Administration only with respect 
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to relocation assistance under this subchapter and 

subchapter I of this chapter. 

(Pub. L. 91-646, title II, Sec. 213, Jan. 2, 1971, 

84 Stat. 1900; Pub. L. 100-17, title IV, Sec. 412, 

Apr. 2, 1987, 101 Stat. 254; Pub. L. 102-240, title 

I, Sec. 1055, Dec. 18, 1991, 105 Stat. 2002; Pub. 

L. 105-117, Sec. 2, Nov. 21, 1997, 111 Stat. 

2385.) 

AMENDMENTS 

1997 - Subsec. (a)(2) to (6). Pub. L. 105-117 added 

pars. (2) and (3) and redesignated former pars. (2) 

to (4) as (4) to (6), respectively. 

 1991 - Subsec. (c). Pub. L. 102-240 inserted "and 

the Rural Electrification Administration" after 

"Tennessee Valley Authority". 

1987 - Pub. L. 100-17 in amending section 

generally, substituted "Duties of lead agency" for 

"Regulations and procedures" in section catchline. 

Subsec. (a). Pub. L. 100-17 amended subsec. (a) 

generally. Prior to amendment, subsec. (a) read as 

follows: "In order to promote uniform and effective 

administration of relocation assistance and land 

acquisition of State or local housing agencies, or 

other agencies having programs or projects by 

Federal agencies or programs or projects by State 

agencies receiving Federal financial assistance, the 

heads of Federal agencies shall consult together on 

the establishment of regulations and procedures for 

the implementation of such programs." 

Subsec. (b). Pub. L. 100-17 amended subsec. (b) 

generally. Prior to amendment, subsec. (b) read as 

follows: "The head of each Federal agency is 

authorized to establish such regulations and 

procedures as he may determine to be necessary to 

assure – 

"(1) that the payments and assistance 

authorized by this chapter shall be administered in a 

manner which is fair and reasonable, and as 

uniform as practicable; 

"(2) that a displaced person who makes proper 

application for a payment authorized for such 

person by this subchapter shall be paid promptly 

after a move or, in hardship cases, be paid in 

advance; and 

"(3) that any person aggrieved by a 

determination as to eligibility for a payment 

authorized by this chapter, or the amount of a 

payment, may have his application reviewed by the 

head of the Federal agency having authority over 

the applicable program or project, or in the case of a 

program or project receiving Federal financial 

assistance, by the head of the State agency." 

Subsec. (c). Pub. L. 100-17 amended subsec. (c) 

generally. Prior to amendment, subsec. (c) read as 

follows: "The head of each Federal agency may 

prescribe such other regulations and procedures, 

consistent with the provisions of this chapter, as he 

deems necessary or appropriate to carry out this 

chapter." 

EFFECTIVE DATE OF 1991 AMENDMENT 

Amendment by Pub. L. 102-240 effective Dec. 18, 

1991, and applicable to funds authorized to be 

appropriated or made available after Sept. 30, 1991, 

and, with certain exceptions, not applicable to funds 

appropriated or made available on or before Sept. 

30, 1991, see section 1100 of Pub. L. 102-240, set 

out as a note under section 104 of Title 23, 

Highways. 

EFFECTIVE DATE OF 1987 AMENDMENT 

Amendment by Pub. L. 100-17 effective Apr. 2, 

1987, to the extent such amendment prescribes 

authority to develop, publish, and issue regulations, 

and otherwise to take effect on effective date 

provided in such regulations but not later than 2 

years after Apr. 2, 1987, see section 418 of Pub. L. 

100-17, set out as a note under section 4601 of this 

title. 

ABOLITION OF IMMIGRATION AND 

NATURALIZATION SERVICE AND TRANSFER OF 

FUNCTIONS 

For abolition of Immigration and Naturalization 

Service, transfer of functions, and treatment of 

related references, see note set out under section 

1551 of Title 8, Aliens and Nationality. 

IMPROVEMENT OF ADMINISTRATION AND 

IMPLEMENTATION OF THIS CHAPTER 

Memorandum of the President dated February 27, 

1985, 50 F.R. 8953, provided: 

The purpose of this Memorandum is to improve 

administration and implementation of the Uniform 

Relocation Assistance and Real Property 

Acquisition Policies Act of 1970 [42 U.S.C. 4601 et 

seq.] 

Specifically, I hereby direct the following actions: 

1. The Presidential Memorandum of September 

6, 1973 on this subject is superseded. 

2. As with other Administration management 

improvement initiatives, a lead agency, the 

Department of Transportation (DOT), is designated 

to coordinate and monitor implementation of the 

Act, and consult periodically with State and local 

governments and other organizations and interest 

groups affected by administration of the Act. 
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88 10BThe Uniform Act   

3. DOT, jointly with the Department of Housing 

and Urban Development, shall interact with the 

principal executive departments and agencies 

affected by the Act in developing Administration 

policy. 

4. Within 90 days of the date of this 

Memorandum, all affected executive departments 

and agencies shall propose common regulations 

under the Act. Within one year of the date of this 

Memorandum, such departments and agencies 

shall issue common regulations under the Act. Such 

regulations shall be consistent with the model policy 

promulgated by DOT, in consultation and 

coordination with other affected agencies, and 

published in final form in the Federal Register 

simultaneously with this Memorandum. 

5. DOT shall report annually to the President's 

Council on Management Improvement, through the 

Office of Management and Budget, on 

implementation of the Act. 

§ 4634. Repealed. Pub. L. 100-17, title IV, Sec. 

415, Apr. 2, 1987, 100 Stat. 255 

Section, Pub. L. 91-646, title II, Sec. 214, Jan. 

2, 1971, 84 Stat. 1901, required head of each 

Federal agency to submit an annual report to the 

President respecting programs and policies 

established or authorized by this chapter, and the 

President to submit such reports to Congress. 

EFFECTIVE DATE OF REPEAL 

Repeal effective on effective date provided in 

regulations promulgated under section 4633 of this 

title (as amended by section 412 of Pub. L. 100-17), 

but not later than 2 years after Apr. 2, 1987, see 

section 418 of Pub. L. 100-17, set out as an 

Effective Date of 1987 Amendment note under 

section 4601 of this title.

§ 4635. Planning and other preliminary 

expenses for additional housing 

In order to encourage and facilitate the 

construction or rehabilitation of housing to meet 

the needs of displaced persons who are displaced 

from dwellings because of any Federal or Federal 

financially assisted project, the head of the 

Federal agency administering such project is 

authorized to make loans as a part of the cost of 

any such project, or to approve loans as a part of 

the cost of any such project receiving Federal 

financial assistance, to nonprofit, limited 

dividend, or cooperative organizations or to 

public bodies, for necessary and reasonable 

expenses, prior to construction, for planning and 

obtaining federally insured mortgage financing 

for the rehabilitation or construction of housing 

for such displaced persons. Notwithstanding the 

preceding sentence, or any other law, such loans 

shall be available for not to exceed 80 per centum 

of the reasonable costs expected to be incurred in 

planning, and in obtaining financing for, such 

housing, prior to the availability of such 

financing, including, but not limited to, 

preliminary surveys and analyses of market 

needs, preliminary site engineering, preliminary 

architectural fees, site acquisition, application 

and mortgage commitment fees, and construction 

loan fees and discounts. Loans to an organization 

established for profit shall bear interest at a 

market rate established by the head of such 

Federal agency. All other loans shall be without 

interest. Such Federal agency head shall require 

repayment of loans made under this section, 

under such terms and conditions as he may 

require, upon completion of the project or sooner, 

and except in the case of a loan to an 

organization established for profit, may cancel 

any part or all of a loan if he determines that a 

permanent loan to finance the rehabilitation or 

the construction of such housing cannot be 

obtained in an amount adequate for repayment of 

such loan. Upon repayment of any such loan, the 

Federal share of the sum repaid shall be credited 

to the account from which such loan was made, 

unless the Secretary of the Treasury determines 

that such account is no longer in existence, in 

which case such sum shall be returned to the 

Treasury and credited to miscellaneous receipts. 

(Pub. L. 91-646, title II, Sec. 215, Jan. 2, 1971, 

84 Stat. 1901.) 

§ 4636. Payments not to be considered as 

income for revenue purposes or for 

eligibility for assistance under Social 

Security Act or other Federal law 

No payment received under this subchapter 

shall be considered as income for the purposes of 

title 26; or for the purposes of determining the 

eligibility or the extent of eligibility of any 

person for assistance under the Social Security 

Act [42 U.S.C. 301 et seq.] or any other Federal 

law (except for any Federal law providing lowincome housing assistance). 

(Pub. L. 91-646, title II, Sec. 216, Jan. 2, 1971, 

84 Stat. 1902; Pub. L. 99-514, Sec. 2, Oct. 22, 

1986, 100 Stat. 2095; Pub. L. 100- 17, title IV, 

Sec. 413, Apr. 2, 1987, 101 Stat. 255.) 
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REFERENCES IN TEXT 

The Social Security Act, referred to in text, is act 

Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended, 

which is classified generally to chapter 7 (Sec. 301 

et seq.) of this title. For complete classification of 

this Act to the Code, see section 1305 of this title 

and Tables. 

AMENDMENTS 

1987 Pub. L. 100-17 inserted "(except for any 

Federal law providing low-income housing 

assistance)" before period at end. 

1986 - Pub. L. 99-514 substituted "Internal Revenue 

Code of 1986" for "Internal Revenue Code of 1954", 

which for purposes of codification was translated as 

"title 26" thus requiring no change in text. 

EFFECTIVE DATE OF 1987 AMENDMENT 

Amendment by Pub. L. 100-17 effective on effective 

date provided in regulations promulgated under 

section 4633 of this title (as amended by section 

412 of Pub. L. 100-17), but not later than 2 years 

after Apr. 2, 1987, see section 418 of Pub. L. 100-

17, set out as a note under section 4601 of this title. 

§ 4637. Repealed. Pub. L. 100-17, title IV, Sec. 

415, Apr. 2, 1987, 101 Stat. 255. 

Section, Pub. L. 91-646, title II, § 217, Jan. 2, 

1971, 84 Stat. 1902, related to displacement by 

code enforcement, rehabilitation, and demolition 

programs receiving Federal assistance. 

EFFECTIVE DATE OF REPEAL 

Repeal effective on effective date provided in 

regulations promulgated under section 4633 of this 

title (as amended by section 412 of Pub. L. 100-17), 

but not later than 2 years after Apr. 2, 1987, see 

section 418 of Pub. L. 100-17, set out as an 

Effective Date of 1987 Amendment note under 

section 4601 of this title. 

§ 4638. Transfers of surplus property 

The Administrator of General Services is 

authorized to transfer to a State agency for the 

purpose of providing replacement housing 

required by this subchapter, any real property 

surplus to the needs of the United States within 

the meaning of the Federal Property and 

Administrative Services Act of 1949, as 

amended.1

 Such transfer shall be subject to such 

terms and conditions as the Administrator 

                                                       

1 See References in Text note below 

determines necessary to protect the interests of 

the United States and may be made without 

monetary consideration, except that such State 

agency shall pay to the United States all net 

amounts received by such agency from any sale, 

lease, or other disposition of such property for 

such housing. 

(Pub. L. 91-646, title II, Sec. 218, Jan. 2, 1971, 

84 Stat. 1902; Pub. L. 100-17, title IV, Sec. 414, 

Apr. 2, 1987, 101 Stat. 255.) 

REFERENCES IN TEXT 

The Federal Property and Administrative Services 

Act of 1949, as amended, referred to in text, is act 

June 30, 1949, ch. 288, 63 Stat. 377, as amended. 

Except for title III of the Act, which is classified 

generally to subchapter IV (Sec. 251 et seq.) of 

chapter 4 of Title 41, Public Contracts, the Act was 

repealed and reenacted by Pub. L. 107-217, Secs. 

1, 6(b), Aug. 21, 2002, 116 Stat. 1062, 1304, as 

chapters 1 to 11 of Title 40, Public Buildings, 

Property, and Works. 

AMENDMENTS 

1987 - Pub. L. 100-17 inserted "net" after "all". 

EFFECTIVE DATE OF 1987 AMENDMENT 

Amendment by Pub. L. 100-17 effective on effective 

date provided in regulations promulgated under 

section 4633 of this title (as amended by section 

412 of Pub. L. 100-17), but not later than 2 years 

after Apr. 2, 1987, see section 418 of Pub. L. 100-

17, set out as a note under section 4601 of this title. 

SUBCHAPTER III - UNIFORM REAL 

PROPERTY ACQUISITION POLICY 

§ 4651. Uniform policy on real property 

acquisition practices

In order to encourage and expedite the 

acquisition of real property by agreements with 

owners, to avoid litigation and relieve congestion 

in the courts, to assure consistent treatment for 

owners in the many Federal programs, and to 

promote public confidence in Federal land 

acquisition practices, heads of Federal agencies 

shall, to the greatest extent practicable, be guided 

by the following policies: 

(1) The head of a Federal agency shall make 

every reasonable effort to acquire expeditiously 

real property by negotiation. 

(2) Real property shall be appraised before 

the initiation of negotiations, and the owner or his 
2009 Real Estate Acquisition Guide For Local Public Agencies 

90 10BThe Uniform Act   

designated representative shall be given an 

opportunity to accompany the appraiser during 

his inspection of the property, except that the 

head of the lead agency may prescribe a 

procedure to waive the appraisal in cases 

involving the acquisition by sale or donation of 

property with a low fair market value. 

(3) Before the initiation of negotiations for 

real property, the head of the Federal agency 

concerned shall establish an amount which he 

believes to be just compensation there for and 

shall make a prompt offer to acquire the property 

for the full amount so established. In no event 

shall such amount be less than the agency's 

approved appraisal of the fair market value of 

such property. Any decrease or increase in the 

fair market value of real property prior to the date 

of valuation caused by the public improvement 

for which such property is acquired, or by the 

likelihood that the property would be acquired for 

such improvement, other than that due to 

physical deterioration within the reasonable 

control of the owner, will be disregarded in 

determining the compensation for the property. 

The head of the Federal agency concerned shall 

provide the owner of real property to be acquired 

with a written statement of, and summary of the 

basis for, the amount he established as just 

compensation. Where appropriate the just 

compensation for the real property acquired and 

for damages to remaining real property shall be 

separately stated. 

(4) No owner shall be required to surrender 

possession of real property before the head of the 

Federal agency concerned pays the agreed 

purchase price, or deposits with the court in 

accordance with section 3114(a) to (d) of title 40, 

for the benefit of the owner, an amount not less 

than the agency's approved appraisal of the fair 

market value of such property, or the amount of 

the award of compensation in the condemnation 

proceeding for such property. 

(5) The construction or development of a 

public improvement shall be so scheduled that, to 

the greatest extent practicable, no person lawfully 

occupying real property shall be required to move 

from a dwelling (assuming a replacement 

dwelling as required by subchapter II of this 

chapter will be available), or to move his 

business or farm operation, without at least 

ninety days' written notice from the head of the 

Federal agency concerned, of the date by which 

such move is required. 

(6) If the head of a Federal agency permits 

an owner or tenant to occupy the real property 

acquired on a rental basis for a short term or for a 

period subject to termination by the Government 

on short notice, the amount of rent required shall 

not exceed the fair rental value of the property to 

a short-term occupier. 

(7) In no event shall the head of a Federal 

agency either advance the time of condemnation, 

or defer negotiations or condemnation and the 

deposit of funds in court for the use of the owner, 

or take any other action coercive in nature, in 

order to compel an agreement on the price to be 

paid for the property. 

(8) If any interest in real property is to be 

acquired by exercise of the power of eminent 

domain, the head of the Federal agency 

concerned shall institute formal condemnation 

proceedings. No Federal agency head shall 

intentionally make it necessary for an owner to 

institute legal proceedings to prove the fact of the 

taking of his real property. 

(9) If the acquisition of only a portion of a 

property would leave the owner with an 

uneconomic remnant, the head of the Federal 

agency concerned shall offer to acquire that 

remnant. For the purposes of this chapter, an 

uneconomic remnant is a parcel of real property 

in which the owner is left with an interest after 

the partial acquisition of the owner's property and 

which the head of the Federal agency concerned 

has determined has little or no value or utility to 

the owner. 

(10) A person whose real property is being 

acquired in accordance with this subchapter may, 

after the person has been fully informed of his 

right to receive just compensation for such 

property, donate such property, and part thereof, 

any interest therein, or any compensation paid 

therefor to a Federal agency, as such person shall 

determine. 

(Pub. L. 91-646, title III, Sec. 301, Jan. 2, 1971, 

84 Stat. 1904; Pub. L. 100-17, title IV, Sec. 416, 

Apr. 2, 1987, 101 Stat. 255.) 

REFERENCES IN TEXT 

Subchapter II of this chapter, referred to in par. (5), 

was in the original "title II of this Act", meaning title II 

of Pub. L. 91- 646, Jan. 2, 1971, 84 Stat. 1895, 

which enacted subchapter II of this chapter, 

amended sections 1415, 2473, and 3307 of this title 

and section 1606 of former Title 49, Transportation, 

repealed sections 1465 and 3074 of this title, 
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 10BThe Uniform Act  91 

section 2680 of Title 10, Armed Forces, sections 

501 to 512 of Title 23, Highways, sections 1231 to 

1234 of Title 43, Public Lands, and enacted 

provisions set out as notes under sections 4601 and 

4621 of this title and under sections 501 to 512 of 

Title 23. For complete classification of title II to the 

Code, see Short Title note set out under section 

4601 of this title and Tables. 

This chapter, referred to in par. (9), was in the 

original "this Act", meaning Pub. L. 91-646, Jan. 2, 

1971, 84 Stat. 1894, known as the Uniform 

Relocation Assistance and Real Property 

Acquisition Policies Act of 1970, which enacted this 

chapter, amended sections 1415, 2473, and 3307 of 

this title and section 1606 of former Title 49, 

repealed sections 1465 and 3071 to 3074 of this 

title, section 2680 of Title 10, sections 141 and 501 

to 512 of Title 23, section 596 of Title 33, Navigation 

and Navigable Waters, sections 1231 to 1234 of 

Title 43, and enacted provisions set out as notes 

under sections 4601, 4621, and 4651 of this title 

and under section 501 of Title 23. For complete 

classification of this Act to the Code, see Short Title 

note set out under section 4601 of this title and 

Tables. 

This subchapter, referred to in par. (10), was in the 

original "this title", meaning title III of Pub. L. 91-

646, Jan. 2, 1971, 84 Stat. 1904, which enacted this 

subchapter, repealed sections 3071 to 3073 of this 

title, section 141 of Title 23, and section 596 of Title 

33, and enacted provisions set out as a note under 

section 4651 of this title. For complete classification 

of title III to the Code, see Tables. 

CODIFICATION 

In par. (4), "section 3114(a) to (d) of title 40" 

substituted for "section 1 of the Act of February 26, 

1931 (46 Stat. 1421; 40 U.S.C. 258a)" on authority 

of Pub. L. 107-217, Sec. 5(c), Aug. 21, 2002, 116 

Stat. 1303, the first section of which enacted Title 

40, Public Buildings, Property, and Works. 

AMENDMENTS 

1987 - Par. (2). Pub. L. 100-17, Sec. 416(a), 

inserted provision respecting the waiver of appraisal 

in cases involving the acquisition of property with a 

low fair market value. 

Par. (9). Pub. L. 100-17, Sec. 416(b), amended par. 

(9) generally. Prior to amendment, par. (9) read as 

follows: "If the acquisition of only part of a property 

would leave its owner with an uneconomic remnant, 

the head of the Federal agency concerned shall 

offer to acquire the entire property." 

Par. (10). Pub. L. 100-17, Sec. 416(c), added par. 

(10). 

EFFECTIVE DATE OF 1987 AMENDMENT 

Amendment by Pub. L. 100-17 effective on effective 

date provided in regulations promulgated under 

section 4633 of this title (as amended by section 

412 of Pub. L. 100-17), but not later than 2 years 

after Apr. 2, 1987, see section 418 of Pub. L. 100-

17, set out as a note under section 4601 of this title. 

SAVINGS PROVISION 

Section 306 of Pub. L. 91-646 provided in part that: 

"Any rights or liabilities now existing under prior Acts 

or portions thereof shall not be affected by the 

repeal of such prior Act or portions thereof under 

this section [repealing sections 3071 to 3073 of this 

title, section 141 of Title 23, Highways, and section 

596 of Title 33, Navigation and Navigable Waters]." 

§ 4652. Buildings, structures, and 

improvements 

(a) Notwithstanding any other provision of 

law, if the head of a Federal agency acquires any 

interest in real property in any State, he shall 

acquire at least an equal interest in all buildings, 

structures, or other improvements located upon 

the real property so acquired and which he 

requires to be removed from such real property or 

which he determines will be adversely affected 

by the use to which such real property will be 

put. 

(b)(1) For the purpose of determining the 

just compensation to be paid for any building, 

structure, or other improvement required to be 

acquired by subsection (a) of this section, such 

building, structure, or other improvement shall be 

deemed to be a part of the real property to be 

acquired notwithstanding the right or obligation 

of a tenant, as against the owner of any other 

interest in the real property, to remove such 

building, structure, or improvement at the 

expiration of his term, and the fair market value 

which such building, structure, or improvement 

contributes to the fair market value of the real 

property to be acquired, or the fair market value 

of such building, structure, or improvement for 

removal from the real property, whichever is the 

greater, shall be paid to the tenant therefor. 

(2) Payment under this subsection shall not 

result in duplication of any payments otherwise 

authorized by law. No such payment shall be 

made unless the owner of the land involved 

disclaims all interest in the improvements of the 

tenant. In consideration for any such payment, 

the tenant shall assign, transfer, and release to the 

United States all his right, title, and interest in 
2009 Real Estate Acquisition Guide For Local Public Agencies 

92 10BThe Uniform Act   

and to such improvements. Nothing in this 

subsection shall be construed to deprive the 

tenant of any rights to reject payment under this 

subsection and to obtain payment for such 

property interests in accordance with applicable 

law, other than this subsection. 

(Pub. L. 91-646, title III, Sec. 302, Jan. 2, 1971, 

84 Stat. 1905.) 

§ 4653. Expenses incidental to transfer of title 

to United States 

The head of a Federal agency, as soon as 

practicable after the date of payment of the 

purchase price or the date of deposit in court of 

funds to satisfy the award of compensation in a 

condemnation proceeding to acquire real 

property, whichever is the earlier, shall reimburse 

the owner, to the extent the head of such agency 

deems fair and reasonable, for expenses he 

necessarily incurred for - 

(1) recording fees, transfer taxes, and 

similar expenses incidental to conveying such 

real property to the United States; 

(2) penalty costs for prepayment of any 

preexisting recorded mortgage entered into in 

good faith encumbering such real property; 

and 

(3) the pro rata portion of real property 

taxes paid which are allocable to a period 

subsequent to the date of vesting title in the 

United States, or the effective date of 

possession of such real property by the United 

States, whichever is the earlier. 

(Pub. L. 91-646, title III, Sec. 303, Jan. 2, 1971, 

84 Stat. 1906.) 

§ 4654. Litigation expenses 

(a) Judgment for owner or abandonment of 

proceedings 

The Federal court having jurisdiction of a 

proceeding instituted by a Federal agency to 

acquire real property by condemnation shall 

award the owner of any right, or title to, or 

interest in, such real property such sum as will in 

the opinion of the court reimburse such owner for 

his reasonable costs, disbursements, and 

expenses, including reasonable attorney, 

appraisal, and engineering fees, actually incurred 

because of the condemnation proceedings, if - 

(1) the final judgment is that the 

Federal agency cannot acquire the real 

property by condemnation; or 

(2) the proceeding is abandoned by the 

United States. 

(b) Payment 

Any award made pursuant to subsection (a) of 

this section shall be paid by the head of the 

Federal agency for whose benefit the 

condemnation proceedings was instituted. 

(c) Claims against United States 

The court rendering a judgment for the 

plaintiff in a proceeding brought under section 

1346(a)(2) or 1491 of title 28, awarding 

compensation for the taking of property by a 

Federal agency, or the Attorney General effecting 

a settlement of any such proceeding, shall 

determine and award or allow to such plaintiff, as 

a part of such judgment or settlement, such sum 

as will in the opinion of the court or the Attorney 

General reimburse such plaintiff for his 

reasonable costs, disbursements, and expenses, 

including reasonable attorney, appraisal, and 

engineering fees, actually incurred because of 

such proceeding. 

(Pub. L. 91-646, title III, Sec. 304, Jan. 2, 1971, 

84 Stat. 1906.) 

§ 4655. Requirements for uniform land 

acquisition policies; payments of 

expenses incidental to transfer of real 

property to State; payment of litigation 

expenses in certain cases 

(a) Notwithstanding any other law, the head 

of a Federal agency shall not approve any 

program or project or any grant to, or contract or 

agreement with, an acquiring agency under which 

Federal financial assistance will be available to 

pay all or part of the cost of any program or 

project which will result in the acquisition of real 

property on and after January 2, 1971, unless he 

receives satisfactory assurances from such 

acquiring agency that - 

(1) in acquiring real property it will be 

guided, to the greatest extent practicable 

under State law, by the land acquisition 

policies in section 4651 of this title and the 

provisions of section 4652 of this title, and 

(2) property owners will be paid or 

reimbursed for necessary expenses as 

specified in sections 4653 and 4654 of this 

title. 
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 10BThe Uniform Act  93 

(b) For purposes of this section, the term 

"acquiring agency" means - 

(1) a State agency (as defined in section 

4601(3) of this title) which has the authority 

to acquire property by eminent domain under 

State law, and 

(2) a State agency or person which does 

not have such authority, to the extent 

provided by the head of the lead agency by 

regulation. 

(Pub. L. 91-646, title III, Sec. 305, Jan. 2, 1971, 

84 Stat. 1906; Pub. L. 100-17, title IV, Sec. 417, 

Apr. 2, 1987, 101 Stat. 256.) 

AMENDMENTS 

1987 - Pub. L. 100-17 designated existing 

provisions as subsec. (a), substituted "an acquiring 

agency" for "a State agency" and "such acquiring 

agency" for "such State agency", and added 

subsec. (b). 

EFFECTIVE DATE OF 1987 AMENDMENT 

Amendment by Pub. L. 100-17 effective on effective 

date provided in regulations promulgated under 

section 4633 of this title (as amended by section 

412 of Pub. L. 100-17), but not later than 2 years 

after Apr. 2, 1987, see section 418 of Pub. L. 100-

17, set out as a note under section 4601 of this title. 

NOTES:
2009 Real Estate Acquisition Guide For Local Public Agencies 

94 10BThe Uniform Act   

NOTES: 
Real Estate Acquisition Guide For Local Public Agencies  2009

 11BThe Uniform Act –Common Rule – 49 CFR Part 24  95 

THE UNIFORM ACT –COMMON RULE – 49 CFR PART 24 

From the GPO Access eCFR website as of March 2009 ‐ 

http://www.gpoaccess.gov/cfr/index.html

Title 49: Transportation

PART 24—UNIFORM RELOCATION 

ASSISTANCE AND REAL PROPERTY 

CQUISITION FOR FEDERAL AND 

EDERALLY-ASSISTED PROGRAMS 

A

F

Subpart A—General 

§ 24.1 Purpose. 

§ 24.2 Definitions and acronyms. 

§ 24.3 No duplication of payments. 

§ 24.4 Assurances, monitoring and corrective 

action. 

§ 24.5 Manner of notices. 

§ 24.6 Administration of jointly-funded 

projects. 

§ 24.7 Federal Agency waiver of regulations. 

§ 24.8 Compliance with other laws and 

regulations. 

§ 24.9 Recordkeeping and reports. 

§ 24.10 Appeals. 

Subpart B—Real Property Acquisition 

§ 24.101 Applicability of acquisition 

requirements. 

§ 24.102 Basic acquisition policies. 

§ 24.103 Criteria for appraisals. 

§ 24.104 Review of appraisals. 

§ 24.105 Acquisition of tenant-owned 

improvements. 

§ 24.106 Expenses incidental to transfer of title 

to the Agency. 

§ 24.107 Certain litigation expenses. 

§ 24.108 Donations. 

Subpart C—General Relocation Requirements 

§ 24.201 Purpose. 

§ 24.202 Applicability. 

§ 24.203 Relocation notices. 

§ 24.204 Availability of comparable 

replacement dwelling before displacement. 

§ 24.205 Relocation planning, advisory 

services, and coordination. 

§ 24.206 Eviction for cause. 

§ 24.207 General requirements—claims for 

relocation payments. 

§ 24.208 Aliens not lawfully present in the 

United States. 

§ 24.209 Relocation payments not considered as 

income. 

Subpart D—Payments for Moving and 

Related Expenses 

§ 24.301 Payment for actual reasonable moving 

and related expenses. 

§ 24.302 Fixed payment for moving expenses—

residential moves. 

§ 24.303 Related nonresidential eligible 

expenses. 

§ 24.304 Reestablishment expenses—

nonresidential moves. 

§ 24.305 Fixed payment for moving expenses—

nonresidential moves. 

§ 24.306 Discretionary utility relocation 

payments. 

Subpart E—Replacement Housing Payments 

§ 24.401 Replacement housing payment for 

180-day homeowner-occupants. 

§ 24.402 Replacement housing payment for 90-

day occupants. 

§ 24.403 Additional rules governing 

replacement housing payments. 

§ 24.404 Replacement housing of last resort. 

Subpart F—Mobile Homes 

§ 24.501 Applicability. 

§ 24.502 Replacement housing payment for 

180-day mobile homeowner displaced from a 

mobile home, and/or from the acquired mobile 

home site. 

§ 24.503 Replacement housing payment for 90-

day mobile home occupants. 
2009 Real Estate Acquisition Guide For Local Public Agencies 

96 11BThe Uniform Act –Common Rule – 49 CFR Part 24   

Subpart G—Certification 

§ 24.601 Purpose. 

§ 24.602 Certification application. 

§ 24.603 Monitoring and corrective action. 

Appendix A to Part 24—Additional Information 

Appendix B to Part 24—Statistical Report Form 

Authority: 42 U.S.C. 4601 et seq. ; 49 CFR 

1.48(cc).

Source: 70 FR 611, Jan. 4, 2005, unless 

otherwise noted. 

SUBPART A—GENERAL 

§ 24.1 PURPOSE. 

The purpose of this part is to promulgate rules to 

implement the Uniform Relocation Assistance 

and Real Property Acquisition Policies Act of 

1970, as amended (42 U.S.C. 4601 et seq. ) 

(Uniform Act), in accordance with the following 

objectives: 

(a) To ensure that owners of real property to be 

acquired for Federal and federally-assisted 

projects are treated fairly and consistently, to 

encourage and expedite acquisition by 

agreements with such owners, to minimize 

litigation and relieve congestion in the courts, 

and to promote public confidence in Federal and 

federally-assisted land acquisition programs; 

(b) To ensure that persons displaced as a direct 

result of Federal or federally-assisted projects are 

treated fairly, consistently, and equitably so that 

such displaced persons will not suffer 

disproportionate injuries as a result of projects 

designed for the benefit of the public as a whole; 

and 

(c) To ensure that Agencies implement these 

regulations in a manner that is efficient and cost 

effective. 

§ 24.2 DEFINITIONS AND 

ACRONYMS. 

(a) Definitions. Unless otherwise noted, the 

following terms used in this part shall be 

understood as defined in this section: 

(1) Agency. The term Agency means the Federal 

Agency, State, State Agency, or person that 

acquires real property or displaces a person. 

(i) Acquiring Agency. The term acquiring Agency 

means a State Agency, as defined in paragraph 

(a)(1)(iv) of this section, which has the authority 

to acquire property by eminent domain under 

State law, and a State Agency or person which 

does not have such authority. 

(ii) Displacing Agency. The term displacing 

Agency means any Federal Agency carrying out a 

program or project, and any State, State Agency, 

or person carrying out a program or project with 

Federal financial assistance, which causes a 

person to be a displaced person. 

(iii) Federal Agency. The term Federal Agency 

means any department, Agency, or 

instrumentality in the executive branch of the 

government, any wholly owned government 

corporation, the Architect of the Capitol, the 

Federal Reserve Banks and branches thereof, and 

any person who has the authority to acquire 

property by eminent domain under Federal law. 

(iv) State Agency. The term State Agency means 

any department, Agency or instrumentality of a 

State or of a political subdivision of a State, any 

department, Agency, or instrumentality of two or 

more States or of two or more political 

subdivisions of a State or States, and any person 

who has the authority to acquire property by 

eminent domain under State law. 

(2) Alien not lawfully present in the United 

States. The phrase “alien not lawfully present in 

the United States” means an alien who is not 

“lawfully present” in the United States as defined 

in 8 CFR 103.12 and includes: 

(i) An alien present in the United States who has 

not been admitted or paroled into the United 

States pursuant to the Immigration and 

Nationality Act (8 U.S.C. 1101 et seq. ) and 

whose stay in the United States has not been 

authorized by the United States Attorney 

General; and, 

(ii) An alien who is present in the United States 

after the expiration of the period of stay 

authorized by the United States Attorney General 

or who otherwise violates the terms and 

conditions of admission, parole or authorization 

to stay in the United States. 
Real Estate Acquisition Guide For Local Public Agencies  2009

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(3) Appraisal. The term appraisal means a 

written statement independently and impartially 

prepared by a qualified appraiser setting forth an 

opinion of defined value of an adequately 

described property as of a specific date, 

supported by the presentation and analysis of 

relevant market information. 

(4) Business. The term business means any 

lawful activity, except a farm operation, that is 

conducted: 

(i) Primarily for the purchase, sale, lease and/or 

rental of personal and/or real property, and/or for 

the manufacture, processing, and/or marketing of 

products, commodities, and/or any other personal 

property; 

(ii) Primarily for the sale of services to the 

public; 

(iii) Primarily for outdoor advertising display 

purposes, when the display must be moved as a 

result of the project; or 

(iv) By a nonprofit organization that has 

established its nonprofit status under applicable 

Federal or State law. 

(5) Citizen. The term citizen for purposes of this 

part includes both citizens of the United States 

and noncitizen nationals. 

(6) Comparable replacement dwelling. The term 

comparable replacement dwelling means a 

dwelling which is: 

(i) Decent, safe and sanitary as described in 

paragraph 24.2(a)(8) of this section; 

(ii) Functionally equivalent to the displacement 

dwelling. The term functionally equivalent means 

that it performs the same function, and provides 

the same utility. While a comparable replacement 

dwelling need not possess every feature of the 

displacement dwelling, the principal features 

must be present. Generally, functional 

equivalency is an objective standard, reflecting 

the range of purposes for which the various 

physical features of a dwelling may be used. 

However, in determining whether a replacement 

dwelling is functionally equivalent to the 

displacement dwelling, the Agency may consider 

reasonable trade-offs for specific features when 

the replacement unit is equal to or better than the 

displacement dwelling ( See appendix A, 

§24.2(a)(6)); 

(iii) Adequate in size to accommodate the 

occupants; 

(iv) In an area not subject to unreasonable 

adverse environmental conditions; 

(v) In a location generally not less desirable than 

the location of the displaced person's dwelling 

with respect to public utilities and commercial 

and public facilities, and reasonably accessible to 

the person's place of employment; 

(vi) On a site that is typical in size for residential 

development with normal site improvements, 

including customary landscaping. The site need 

not include special improvements such as 

outbuildings, swimming pools, or greenhouses. 

(See also §24.403(a)(2)); 

(vii) Currently available to the displaced person 

on the private market except as provided in 

paragraph (a)(6)(ix) of this section (See appendix 

A, §24.2(a)(6)(vii)); and 

(viii) Within the financial means of the displaced 

person: 

(A) A replacement dwelling purchased by a 

homeowner in occupancy at the displacement 

dwelling for at least 180 days prior to initiation of 

negotiations (180-day homeowner) is considered 

to be within the homeowner's financial means if 

the homeowner will receive the full price 

differential as described in §24.401(c), all 

increased mortgage interest costs as described at 

§24.401(d) and all incidental expenses as 

described at §24.401(e), plus any additional 

amount required to be paid under §24.404, 

Replacement housing of last resort. 

(B) A replacement dwelling rented by an eligible 

displaced person is considered to be within his or 

her financial means if, after receiving rental 

assistance under this part, the person's monthly 

rent and estimated average monthly utility costs 

for the replacement dwelling do not exceed the 

person's base monthly rental for the displacement 

dwelling as described at §24.402(b)(2). 

(C) For a displaced person who is not eligible to 

receive a replacement housing payment because 

of the person's failure to meet length-ofoccupancy requirements, comparable 

replacement rental housing is considered to be 

within the person's financial means if an Agency 

pays that portion of the monthly housing costs of 

a replacement dwelling which exceeds the 
2009 Real Estate Acquisition Guide For Local Public Agencies 

98 11BThe Uniform Act –Common Rule – 49 CFR Part 24   

person's base monthly rent for the displacement 

dwelling as described in §24.402(b)(2). Such 

rental assistance must be paid under §24.404, 

Replacement housing of last resort. 

(ix) For a person receiving government housing 

assistance before displacement, a dwelling that 

may reflect similar government housing 

assistance. In such cases any requirements of the 

government housing assistance program relating 

to the size of the replacement dwelling shall 

apply. ( See appendix A, §24.2(a)(6)(ix).) 

(7) Contribute materially. The term contribute 

materially means that during the 2 taxable years 

prior to the taxable year in which displacement 

occurs, or during such other period as the Agency 

determines to be more equitable, a business or 

farm operation: 

(i) Had average annual gross receipts of at least 

$5,000; or 

(ii) Had average annual net earnings of at least 

$1,000; or 

(iii) Contributed at least 331/3percent of the 

owner's or operator's average annual gross 

income from all sources. 

(iv) If the application of the above criteria creates 

an inequity or hardship in any given case, the 

Agency may approve the use of other criteria as 

determined appropriate. 

(8) Decent, safe, and sanitary dwelling. The term 

decent, safe, and sanitary dwelling means a 

dwelling which meets local housing and 

occupancy codes. However, any of the following 

standards which are not met by the local code 

shall apply unless waived for good cause by the 

Federal Agency funding the project. The 

dwelling shall: 

(i) Be structurally sound, weather tight, and in 

good repair; 

(ii) Contain a safe electrical wiring system 

adequate for lighting and other devices; 

(iii) Contain a heating system capable of 

sustaining a healthful temperature (of 

approximately 70 degrees) for a displaced person, 

except in those areas where local climatic 

conditions do not require such a system; 

(iv) Be adequate in size with respect to the 

number of rooms and area of living space needed 

to accommodate the displaced person. The 

number of persons occupying each habitable 

room used for sleeping purposes shall not exceed 

that permitted by local housing codes or, in the 

absence of local codes, the policies of the 

displacing Agency. In addition, the displacing 

Agency shall follow the requirements for 

separate bedrooms for children of the opposite 

gender included in local housing codes or in the 

absence of local codes, the policies of such 

Agencies; 

(v) There shall be a separate, well lighted and 

ventilated bathroom that provides privacy to the 

user and contains a sink, bathtub or shower stall, 

and a toilet, all in good working order and 

properly connected to appropriate sources of 

water and to a sewage drainage system. In the 

case of a housekeeping dwelling, there shall be a 

kitchen area that contains a fully usable sink, 

properly connected to potable hot and cold water 

and to a sewage drainage system, and adequate 

space and utility service connections for a stove 

and refrigerator; 

(vi) Contains unobstructed egress to safe, open 

space at ground level; and 

(vii) For a displaced person with a disability, be 

free of any barriers which would preclude 

reasonable ingress, egress, or use of the dwelling 

by such displaced person. (See appendix A, 

§24.2(a)(8)(vii).) 

(9) Displaced person. (i) General. The term 

displaced person means, except as provided in 

paragraph (a)(9)(ii) of this section, any person 

who moves from the real property or moves his 

or her personal property from the real property. 

(This includes a person who occupies the real 

property prior to its acquisition, but who does not 

meet the length of occupancy requirements of the 

Uniform Act as described at §24.401(a) and 

§24.402(a)): 

(A) As a direct result of a written notice of intent 

to acquire (see §24.203(d)), the initiation of 

negotiations for, or the acquisition of, such real 

property in whole or in part for a project; 

(B) As a direct result of rehabilitation or 

demolition for a project; or 

(C) As a direct result of a written notice of intent 

to acquire, or the acquisition, rehabilitation or 

demolition of, in whole or in part, other real 

property on which the person conducts a business 

or farm operation, for a project. However, 
Real Estate Acquisition Guide For Local Public Agencies  2009

 11BThe Uniform Act –Common Rule – 49 CFR Part 24  99 

eligibility for such person under this paragraph 

applies only for purposes of obtaining relocation 

assistance advisory services under §24.205(c), 

and moving expenses under §24.301, §24.302 or 

§24.303. 

(ii) Persons not displaced. The following is a 

nonexclusive listing of persons who do not 

qualify as displaced persons under this part: 

(A) A person who moves before the initiation of 

negotiations (see §24.403(d)), unless the Agency 

determines that the person was displaced as a 

direct result of the program or project; 

(B) A person who initially enters into occupancy 

of the property after the date of its acquisition for 

the project; 

(C) A person who has occupied the property for 

the purpose of obtaining assistance under the 

Uniform Act; 

(D) A person who is not required to relocate 

permanently as a direct result of a project. Such 

determination shall be made by the Agency in 

accordance with any guidelines established by 

the Federal Agency funding the project (See 

appendix A, §24.2(a)(9)(ii)(D)); 

(E) An owner-occupant who moves as a result of 

an acquisition of real property as described in 

§§24.101(a)(2) or 24.101(b)(1) or (2), or as a 

result of the rehabilitation or demolition of the 

real property. (However, the displacement of a 

tenant as a direct result of any acquisition, 

rehabilitation or demolition for a Federal or 

federally-assisted project is subject to this part.); 

(F) A person whom the Agency determines is not 

displaced as a direct result of a partial 

acquisition; 

(G) A person who, after receiving a notice of 

relocation eligibility (described at §24.203(b)), is 

notified in writing that he or she will not be 

displaced for a project. Such written notification 

shall not be issued unless the person has not 

moved and the Agency agrees to reimburse the 

person for any expenses incurred to satisfy any 

binding contractual relocation obligations entered 

into after the effective date of the notice of 

relocation eligibility; 

(H) An owner-occupant who conveys his or her 

property, as described in §§24.101(a)(2) or 

24.101(b)(1) or (2), after being informed in 

writing that if a mutually satisfactory agreement 

on terms of the conveyance cannot be reached, 

the Agency will not acquire the property. In such 

cases, however, any resulting displacement of a 

tenant is subject to the regulations in this part; 

(I) A person who retains the right of use and 

occupancy of the real property for life following 

its acquisition by the Agency; 

(J) An owner who retains the right of use and 

occupancy of the real property for a fixed term 

after its acquisition by the Department of the 

Interior under Pub. L. 93–477, Appropriations for 

National Park System, or Pub. L. 93–303, Land 

and Water Conservation Fund, except that such 

owner remains a displaced person for purposes of 

subpart D of this part; 

(K) A person who is determined to be in unlawful 

occupancy prior to or after the initiation of 

negotiations, or a person who has been evicted 

for cause, under applicable law, as provided for 

in §24.206. However, advisory assistance may be 

provided to unlawful occupants at the option of 

the Agency in order to facilitate the project; 

(L) A person who is not lawfully present in the 

United States and who has been determined to be 

ineligible for relocation assistance in accordance 

with §24.208; or 

(M) Tenants required to move as a result of the 

sale of their dwelling to a person using 

downpayment assistance provided under the 

American Dream Downpayment Initiative 

(ADDI) authorized by section 102 of the 

American Dream Downpayment Act (Pub. L. 

108–186; codified at 42 U.S.C. 12821). 

(10) Dwelling. The term dwelling means the 

place of permanent or customary and usual 

residence of a person, according to local custom 

or law, including a single family house; a single 

family unit in a two-family, multi-family, or 

multi-purpose property; a unit of a condominium 

or cooperative housing project; a nonhousekeeping unit; a mobile home; or any other 

residential unit. 

(11) Dwelling site. The term dwelling site means 

a land area that is typical in size for similar 

dwellings located in the same neighborhood or 

rural area. (See appendix A, §24.2(a)(11).) 

(12) Farm operation. The term farm operation 

means any activity conducted solely or primarily 

for the production of one or more agricultural 
2009 Real Estate Acquisition Guide For Local Public Agencies 

100 11BThe Uniform Act –Common Rule – 49 CFR Part 24   

products or commodities, including timber, for 

sale or home use, and customarily producing 

such products or commodities in sufficient 

quantity to be capable of contributing materially 

to the operator's support. 

(13) Federal financial assistance. The term 

Federal financial assistance means a grant, loan, 

or contribution provided by the United States, 

except any Federal guarantee or insurance and 

any interest reduction payment to an individual in 

connection with the purchase and occupancy of a 

residence by that individual. 

(14) Household income. The term household 

income means total gross income received for a 

12 month period from all sources (earned and 

unearned) including, but not limited to wages, 

salary, child support, alimony, unemployment 

benefits, workers compensation, social security, 

or the net income from a business. It does not 

include income received or earned by dependent 

children and full time students under 18 years of 

age. ( See appendix A, §24.2(a)(14) for examples 

of exclusions to income.) 

(15) Initiation of negotiations. Unless a different 

action is specified in applicable Federal program 

regulations, the term initiation of negotiations 

means the following: 

(i) Whenever the displacement results from the 

acquisition of the real property by a Federal 

Agency or State Agency, the initiation of 

negotiations means the delivery of the initial 

written offer of just compensation by the Agency 

to the owner or the owner's representative to 

purchase the real property for the project. 

However, if the Federal Agency or State Agency 

issues a notice of its intent to acquire the real 

property, and a person moves after that notice, 

but before delivery of the initial written purchase 

offer, the initiation of negotiations means the 

actual move of the person from the property. 

(ii) Whenever the displacement is caused by 

rehabilitation, demolition or privately undertaken 

acquisition of the real property (and there is no 

related acquisition by a Federal Agency or a State 

Agency), the initiation of negotiations means the 

notice to the person that he or she will be 

displaced by the project or, if there is no notice, 

the actual move of the person from the property. 

(iii) In the case of a permanent relocation to 

protect the public health and welfare, under the 

Comprehensive Environmental Response 

Compensation and Liability Act of 1980 (Pub. L. 

96–510, or Superfund) (CERCLA) the initiation 

of negotiations means the formal announcement 

of such relocation or the Federal or federallycoordinated health advisory where the Federal 

Government later decides to conduct a permanent 

relocation. 

(iv) In the case of permanent relocation of a 

tenant as a result of an acquisition of real 

property described in §24.101(b)(1) through (5), 

the initiation of negotiations means the actions 

described in §24.2(a)(15)(i) and (ii), except that 

such initiation of negotiations does not become 

effective, for purposes of establishing eligibility 

for relocation assistance for such tenants under 

this part, until there is a written agreement 

between the Agency and the owner to purchase 

the real property. (See appendix A, 

§24.2(a)(15)(iv)). 

(16) Lead Agency. The term Lead Agency means 

the Department of Transportation acting through 

the Federal Highway Administration. 

(17) Mobile home. The term mobile home 

includes manufactured homes and recreational 

vehicles used as residences. ( See appendix A, 

§24.2(a)(17)). 

(18) Mortgage. The term mortgage means such 

classes of liens as are commonly given to secure 

advances on, or the unpaid purchase price of, real 

property, under the laws of the State in which the 

real property is located, together with the credit 

instruments, if any, secured thereby. 

(19) Nonprofit organization. The term nonprofit 

organization means an organization that is 

incorporated under the applicable laws of a State 

as a nonprofit organization, and exempt from 

paying Federal income taxes under section 501 of 

the Internal Revenue Code (26 U.S.C. 501). 

(20) Owner of a dwelling. The term owner of a 

dwelling means a person who is considered to 

have met the requirement to own a dwelling if the 

person purchases or holds any of the following 

interests in real property: 

(i) Fee title, a life estate, a land contract, a 99 

year lease, or a lease including any options for 

extension with at least 50 years to run from the 

date of acquisition; or 
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 11BThe Uniform Act –Common Rule – 49 CFR Part 24  101 

(ii) An interest in a cooperative housing project 

which includes the right to occupy a dwelling; or 

(iii) A contract to purchase any of the interests or 

estates described in §24.2(a)(1)(i) or (ii) of this 

section; or 

(iv) Any other interest, including a partial 

interest, which in the judgment of the Agency 

warrants consideration as ownership. 

(21) Person. The term person means any 

individual, family, partnership, corporation, or 

association. 

(22) Program or project. The phrase program or 

project means any activity or series of activities 

undertaken by a Federal Agency or with Federal 

financial assistance received or anticipated in any 

phase of an undertaking in accordance with the 

Federal funding Agency guidelines. 

(23) Salvage value. The term salvage value 

means the probable sale price of an item offered 

for sale to knowledgeable buyers with the 

requirement that it be removed from the property 

at a buyer's expense (i.e., not eligible for 

relocation assistance). This includes items for reuse as well as items with components that can be 

re-used or recycled when there is no reasonable 

prospect for sale except on this basis. 

(24) Small business. A small business is a 

business having not more than 500 employees 

working at the site being acquired or displaced by 

a program or project, which site is the location of 

economic activity. Sites occupied solely by 

outdoor advertising signs, displays, or devices do 

not qualify as a business for purposes of §24.304. 

(25) State. Any of the several States of the United 

States or the District of Columbia, the 

Commonwealth of Puerto Rico, any territory or 

possession of the United States, or a political 

subdivision of any of these jurisdictions. 

(26) Tenant. The term tenant means a person who 

has the temporary use and occupancy of real 

property owned by another. 

(27) Uneconomic remnant. The term uneconomic 

remnant means a parcel of real property in which 

the owner is left with an interest after the partial 

acquisition of the owner's property, and which 

the Agency has determined has little or no value 

or utility to the owner. 

(28) Uniform Act. The term Uniform Act means 

the Uniform Relocation Assistance and Real 

Property Acquisition Policies Act of 1970 (Pub. 

L. 91–646, 84 Stat. 1894; 42 U.S.C. 4601 et seq. 

), and amendments thereto. 

(29) Unlawful occupant. A person who occupies 

without property right, title or payment of rent or 

a person legally evicted, with no legal rights to 

occupy a property under State law. An Agency, 

at its discretion, may consider such person to be 

in lawful occupancy. 

(30) Utility costs. The term utility costs means 

expenses for electricity, gas, other heating and 

cooking fuels, water and sewer. 

(31) Utility facility. The term utility facility 

means any electric, gas, water, steam power, or 

materials transmission or distribution system; any 

transportation system; any communications 

system, including cable television; and any 

fixtures, equipment, or other property associated 

with the operation, maintenance, or repair of any 

such system. A utility facility may be publicly, 

privately, or cooperatively owned. 

(32) Utility relocation. The term utility relocation 

means the adjustment of a utility facility required 

by the program or project undertaken by the 

displacing Agency. It includes removing and 

reinstalling the facility, including necessary 

temporary facilities; acquiring necessary right-ofway on a new location; moving, rearranging or 

changing the type of existing facilities; and 

taking any necessary safety and protective 

measures. It shall also mean constructing a 

replacement facility that has the functional 

equivalency of the existing facility and is 

necessary for the continued operation of the 

utility service, the project economy, or sequence 

of project construction. 

(33) Waiver valuation. The term waiver valuation 

means the valuation process used and the product 

produced when the Agency determines that an 

appraisal is not required, pursuant to 

§24.102(c)(2) appraisal waiver provisions. 

(b) Acronyms. The following acronyms are 

commonly used in the implementation of 

programs subject to this regulation: 

(1) BCIS. Bureau of Citizenship and Immigration 

Service. 
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102 11BThe Uniform Act –Common Rule – 49 CFR Part 24   

(2) FEMA. Federal Emergency Management 

Agency. 

(3) FHA. Federal Housing Administration. 

(4) FHWA. Federal Highway Administration. 

(5) FIRREA. Financial Institutions Reform, 

Recovery, and Enforcement Act of 1989. 

(6) HLR. Housing of last resort. 

(7) HUD. U.S. Department of Housing and 

Urban Development. 

(8) MIDP. Mortgage interest differential 

payment. 

(9) RHP. Replacement housing payment. 

(10) STURAA. Surface Transportation and 

Uniform Relocation Act Amendments of 1987. 

(11) URA. Uniform Relocation Assistance and 

Real Property Acquisition Policies Act of 1970. 

(12) USDOT. U.S. Department of Transportation. 

(13) USPAP. Uniform Standards of Professional 

Appraisal Practice. 

§ 24.3 NO DUPLICATION OF 

PAYMENTS. 

No person shall receive any payment under this 

part if that person receives a payment under 

Federal, State, local law, or insurance proceeds 

which is determined by the Agency to have the 

same purpose and effect as such payment under 

this part. (See appendix A, §24.3). 

§ 24.4 ASSURANCES, MONITORING 

AND CORRECTIVE ACTION. 

(a) Assurances. 

(1) Before a Federal Agency may approve any 

grant to, or contract, or agreement with, a State 

Agency under which Federal financial assistance 

will be made available for a project which results 

in real property acquisition or displacement that 

is subject to the Uniform Act, the State Agency 

must provide appropriate assurances that it will 

comply with the Uniform Act and this part. A 

displacing Agency's assurances shall be in 

accordance with section 210 of the Uniform Act. 

An acquiring Agency's assurances shall be in 

accordance with section 305 of the Uniform Act 

and must contain specific reference to any State 

law which the Agency believes provides an 

exception to §§301 or 302 of the Uniform Act. If, 

in the judgment of the Federal Agency, Uniform 

Act compliance will be served, a State Agency 

may provide these assurances at one time to 

cover all subsequent federally-assisted programs 

or projects. An Agency, which both acquires real 

property and displaces persons, may combine its 

section 210 and section 305 assurances in one 

document. 

(2) If a Federal Agency or State Agency provides 

Federal financial assistance to a “person” causing 

displacement, such Federal or State Agency is 

responsible for ensuring compliance with the 

requirements of this part, notwithstanding the 

person's contractual obligation to the grantee to 

comply. 

(3) As an alternative to the assurance requirement 

described in paragraph (a)(1) of this section, a 

Federal Agency may provide Federal financial 

assistance to a State Agency after it has accepted 

a certification by such State Agency in 

accordance with the requirements in subpart G of 

this part. 

(b) Monitoring and corrective action. The 

Federal Agency will monitor compliance with 

this part, and the State Agency shall take 

whatever corrective action is necessary to comply 

with the Uniform Act and this part. The Federal 

Agency may also apply sanctions in accordance 

with applicable program regulations. (Also see 

§24.603, of this part). 

(c) Prevention of fraud, waste, and 

mismanagement. The Agency shall take 

appropriate measures to carry out this part in a 

manner that minimizes fraud, waste, and 

mismanagement. 

§ 24.5 MANNER OF NOTICES. 

Each notice which the Agency is required to 

provide to a property owner or occupant under 

this part, except the notice described at 

§24.102(b), shall be personally served or sent by 

certified or registered first-class mail, return 

receipt requested, and documented in Agency 

files. Each notice shall be written in plain, 

understandable language. Persons who are unable 

to read and understand the notice must be 

provided with appropriate translation and 

counseling. Each notice shall indicate the name 

and telephone number of a person who may be 
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 11BThe Uniform Act –Common Rule – 49 CFR Part 24  103 

contacted for answers to questions or other 

needed help. 

§ 24.6 ADMINISTRATION OF 

JOINTLY-FUNDED PROJECTS. 

Whenever two or more Federal Agencies provide 

financial assistance to an Agency or Agencies, 

other than a Federal Agency, to carry out 

functionally or geographically related activities, 

which will result in the acquisition of property or 

the displacement of a person, the Federal 

Agencies may by agreement designate one such 

Agency as the cognizant Federal Agency. In the 

unlikely event that agreement among the 

Agencies cannot be reached as to which Agency 

shall be the cognizant Federal Agency, then the 

Lead Agency shall designate one of such 

Agencies to assume the cognizant role. At a 

minimum, the agreement shall set forth the 

federally-assisted activities which are subject to 

its terms and cite any policies and procedures, in 

addition to this part, that are applicable to the 

activities under the agreement. Under the 

agreement, the cognizant Federal Agency shall 

assure that the project is in compliance with the 

provisions of the Uniform Act and this part. All 

federally-assisted activities under the agreement 

shall be deemed a project for the purposes of this 

part. 

§ 24.7 FEDERAL AGENCY WAIVER 

OF REGULATIONS. 

The Federal Agency funding the project may 

waive any requirement in this part not required 

by law if it determines that the waiver does not 

reduce any assistance or protection provided to 

an owner or displaced person under this part. Any 

request for a waiver shall be justified on a caseby-case basis. 

§ 24.8 COMPLIANCE WITH OTHER 

LAWS AND REGULATIONS. 

The implementation of this part must be in 

compliance with other applicable Federal laws 

and implementing regulations, including, but not 

limited to, the following: 

(a) Section I of the Civil Rights Act of 1866 (42 

U.S.C. 1982 et seq. ). 

(b) Title VI of the Civil Rights Act of 1964 (42 

U.S.C. 2000d et seq. ). 

(c) Title VIII of the Civil Rights Act of 1968 (42 

U.S.C. 3601 et seq. ), as amended. 

(d) The National Environmental Policy Act of 

1969 (42 U.S.C. 4321 et seq. ). 

(e) Section 504 of the Rehabilitation Act of 1973 

(29 U.S.C. 790 et seq. ). 

(f) The Flood Disaster Protection Act of 1973 

(Pub. L. 93–234). 

(g) The Age Discrimination Act of 1975 (42 

U.S.C. 6101 et seq. ). 

(h) Executive Order 11063—Equal Opportunity 

and Housing, as amended by Executive Order 

12892. 

(i) Executive Order 11246—Equal Employment 

Opportunity, as amended. 

(j) Executive Order 11625—Minority Business 

Enterprise. 

(k) Executive Orders 11988—Floodplain 

Management, and 11990—Protection of 

Wetlands. 

(l) Executive Order 12250—Leadership and 

Coordination of Non-Discrimination Laws. 

(m) Executive Order 12630—Governmental 

Actions and Interference with Constitutionally 

Protected Property Rights. 

(n) Robert T. Stafford Disaster Relief and 

Emergency Assistance Act, as amended (42 

U.S.C. 5121 et seq. ). 

(o) Executive Order 12892—Leadership and 

Coordination of Fair Housing in Federal 

Programs: Affirmatively Furthering Fair Housing 

(January 17, 1994). 

§ 24.9 RECORDKEEPING AND 

REPORTS. 

(a) Records. The Agency shall maintain adequate 

records of its acquisition and displacement 

activities in sufficient detail to demonstrate 

compliance with this part. These records shall be 

retained for at least 3 years after each owner of a 

property and each person displaced from the 

property receives the final payment to which he 

or she is entitled under this part, or in accordance 

with the applicable regulations of the Federal 

funding Agency, whichever is later. 
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104 11BThe Uniform Act –Common Rule – 49 CFR Part 24   

(b) Confidentiality of records. Records 

maintained by an Agency in accordance with this 

part are confidential regarding their use as public 

information, unless applicable law provides 

otherwise. 

(c) Reports. The Agency shall submit a report of 

its real property acquisition and displacement 

activities under this part if required by the 

Federal Agency funding the project. A report will 

not be required more frequently than every 3 

years, or as the Uniform Act provides, unless the 

Federal funding Agency shows good cause. The 

report shall be prepared and submitted using the 

format contained in appendix B of this part.

§ 24.10 APPEALS. 

(a) General. The Agency shall promptly review 

appeals in accordance with the requirements of 

applicable law and this part. 

(b) Actions which may be appealed. Any 

aggrieved person may file a written appeal with 

the Agency in any case in which the person 

believes that the Agency has failed to properly 

consider the person's application for assistance 

under this part. Such assistance may include, but 

is not limited to, the person's eligibility for, or the 

amount of, a payment required under §24.106 or 

§24.107, or a relocation payment required under 

this part. The Agency shall consider a written 

appeal regardless of form. 

(c) Time limit for initiating appeal. The Agency 

may set a reasonable time limit for a person to 

file an appeal. The time limit shall not be less 

than 60 days after the person receives written 

notification of the Agency's determination on the 

person's claim. 

(d) Right to representation. A person has a right 

to be represented by legal counsel or other 

representative in connection with his or her 

appeal, but solely at the person's own expense. 

(e) Review of files by person making appeal. The 

Agency shall permit a person to inspect and copy 

all materials pertinent to his or her appeal, except 

materials which are classified as confidential by 

the Agency. The Agency may, however, impose 

reasonable conditions on the person's right to 

inspect, consistent with applicable laws. 

(f) Scope of review of appeal. In deciding an 

appeal, the Agency shall consider all pertinent 

justification and other material submitted by the 

person, and all other available information that is 

needed to ensure a fair and full review of the 

appeal. 

(g) Determination and notification after appeal. 

Promptly after receipt of all information 

submitted by a person in support of an appeal, the 

Agency shall make a written determination on the 

appeal, including an explanation of the basis on 

which the decision was made, and furnish the 

person a copy. If the full relief requested is not 

granted, the Agency shall advise the person of his 

or her right to seek judicial review of the Agency 

decision. 

(h) Agency official to review appeal. The Agency 

official conducting the review of the appeal shall 

be either the head of the Agency or his or her 

authorized designee. However, the official shall 

not have been directly involved in the action 

appealed. 

SUBPART B—REAL PROPERTY 

ACQUISITION 

§ 24.101 APPLICABILITY OF 

ACQUISITION REQUIREMENTS. 

(a) Direct Federal program or project. 

(1) The requirements of this subpart apply to any 

acquisition of real property for a direct Federal 

program or project, except acquisition for a 

program or project that is undertaken by the 

Tennessee Valley Authority or the Rural Utilities 

Service. ( See appendix A, §24.101(a).) 

(2) If a Federal Agency (except for the Tennessee 

Valley Authority or the Rural Utilities Service) 

will not acquire a property because negotiations 

fail to result in an agreement, the owner of the 

property shall be so informed in writing. Owners 

of such properties are not displaced persons, ( see 

§§24.2(a)(9)(ii)(E) or (H)), and as such, are not 

entitled to relocation assistance benefits. 

However, tenants on such properties may be 

eligible for relocation assistance benefits. ( See 

§24.2(a)(9)). 

(b) Programs and projects receiving Federal 

financial assistance. The requirements of this 

subpart apply to any acquisition of real property 

for programs and projects where there is Federal 

financial assistance in any part of project costs 

except for the acquisitions described in 

paragraphs (b)(1) through (5) of this section. The 
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 11BThe Uniform Act –Common Rule – 49 CFR Part 24  105 

relocation assistance provisions in this part are 

applicable to any tenants that must move as a 

result of an acquisition described in paragraphs 

(b)(1) through (5) of this section. Such tenants 

are considered displaced persons. (See 

§24.2(a)(9).) 

(1) The requirements of Subpart B do not apply 

to acquisitions that meet all of the following 

conditions in paragraphs (b)(1)(i) through (iv): 

(i) No specific site or property needs to be 

acquired, although the Agency may limit its 

search for alternative sites to a general 

geographic area. Where an Agency wishes to 

purchase more than one site within a general 

geographic area on this basis, all owners are to be 

treated similarly. (See appendix A, 

§24.101(b)(1)(i).) 

(ii) The property to be acquired is not part of an 

intended, planned, or designated project area 

where all or substantially all of the property 

within the area is to be acquired within specific 

time limits. 

(iii) The Agency will not acquire the property if 

negotiations fail to result in an amicable 

agreement, and the owner is so informed in 

writing. 

(iv) The Agency will inform the owner in writing 

of what it believes to be the market value of the 

property. ( See appendix A, §24.101(b)(1)(iv) and 

(2)(ii).) 

(2) Acquisitions for programs or projects 

undertaken by an Agency or person that receives 

Federal financial assistance but does not have 

authority to acquire property by eminent domain, 

provided that such Agency or person shall: 

(i) Prior to making an offer for the property, 

clearly advise the owner that it is unable to 

acquire the property if negotiations fail to result 

in an agreement; and 

(ii) Inform the owner in writing of what it 

believes to be the market value of the property. 

(See appendix A, §24.101(b)(1)(iv) and (2)(ii).) 

(3) The acquisition of real property from a 

Federal Agency, State, or State Agency, if the 

Agency desiring to make the purchase does not 

have authority to acquire the property through 

condemnation. 

(4) The acquisition of real property by a 

cooperative from a person who, as a condition of 

membership in the cooperative, has agreed to 

provide without charge any real property that is 

needed by the cooperative. 

(5) Acquisition for a program or project that 

receives Federal financial assistance from the 

Tennessee Valley Authority or the Rural Utilities 

Service. 

(c) Less-than-full-fee interest in real property. 

(1) The provisions of this subpart apply when 

acquiring fee title subject to retention of a life 

estate or a life use; to acquisition by leasing 

where the lease term, including option(s) for 

extension, is 50 years or more; and to the 

acquisition of permanent and/or temporary 

easements necessary for the project. However, 

the Agency may apply these regulations to any 

less-than-full-fee acquisition that, in its judgment, 

should be covered. 

(2) The provisions of this subpart do not apply to 

temporary easements or permits needed solely to 

perform work intended exclusively for the benefit 

of the property owner, which work may not be 

done if agreement cannot be reached. 

(d) Federally-assisted projects. For projects 

receiving Federal financial assistance, the 

provisions of §§24.102, 24.103, 24.104, and 

24.105 apply to the greatest extent practicable 

under State law. ( See §24.4(a).) 

§ 24.102 BASIC ACQUISITION 

POLICIES. 

(a) Expeditious acquisition. The Agency shall 

make every reasonable effort to acquire the real 

property expeditiously by negotiation. 

(b) Notice to owner. As soon as feasible, the 

Agency shall notify the owner in writing of the 

Agency's interest in acquiring the real property 

and the basic protections provided to the owner 

by law and this part. ( See §24.203.) 

(c) Appraisal, waiver thereof, and invitation to 

owner. 

(1) Before the initiation of negotiations the real 

property to be acquired shall be appraised, except 

as provided in §24.102 (c)(2), and the owner, or 

the owner's designated representative, shall be 

given an opportunity to accompany the appraiser 

during the appraiser's inspection of the property. 
2009 Real Estate Acquisition Guide For Local Public Agencies 

106 11BThe Uniform Act –Common Rule – 49 CFR Part 24   

(2) An appraisal is not required if: 

(i) The owner is donating the property and 

releases the Agency from its obligation to 

appraise the property; or 

(ii) The Agency determines that an appraisal is 

unnecessary because the valuation problem is 

uncomplicated and the anticipated value of the 

proposed acquisition is estimated at $10,000 or 

less, based on a review of available data. 

(A) When an appraisal is determined to be 

unnecessary, the Agency shall prepare a waiver 

valuation. 

(B) The person performing the waiver valuation 

must have sufficient understanding of the local 

real estate market to be qualified to make the 

waiver valuation. 

(C) The Federal Agency funding the project may 

approve exceeding the $10,000 threshold, up to a 

maximum of $25,000, if the Agency acquiring 

the real property offers the property owner the 

option of having the Agency appraise the 

property. If the property owner elects to have the 

Agency appraise the property, the Agency shall 

obtain an appraisal and not use procedures 

described in this paragraph. (See appendix A, 

§24.102(c)(2).) 

(d) Establishment and offer of just compensation. 

Before the initiation of negotiations, the Agency 

shall establish an amount which it believes is just 

compensation for the real property. The amount 

shall not be less than the approved appraisal of 

the fair market value of the property, taking into 

account the value of allowable damages or 

benefits to any remaining property. An Agency 

official must establish the amount believed to be 

just compensation. ( See §24.104.) Promptly 

thereafter, the Agency shall make a written offer 

to the owner to acquire the property for the full 

amount believed to be just compensation. ( See 

appendix A, §24.102(d).) 

(e) Summary statement. Along with the initial 

written purchase offer, the owner shall be given a 

written statement of the basis for the offer of just 

compensation, which shall include: 

(1) A statement of the amount offered as just 

compensation. In the case of a partial acquisition, 

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. 

(2) A description and location identification of 

the real property and the interest in the real 

property to be acquired. 

(3) An identification of the buildings, structures, 

and other improvements (including removable 

building equipment and trade fixtures) which are 

included as part of the offer of just compensation. 

Where appropriate, the statement shall identify 

any other separately held ownership interest in 

the property, e.g. , a tenant-owned improvement, 

and indicate that such interest is not covered by 

this offer. 

(f) Basic negotiation procedures. The Agency 

shall make all reasonable efforts to contact the 

owner or the owner's representative and discuss 

its offer to purchase the property, including the 

basis for the offer of just compensation and 

explain its acquisition policies and procedures, 

including its payment of incidental expenses in 

accordance with §24.106. The owner shall be 

given reasonable opportunity to consider the 

offer and present material which the owner 

believes is relevant to determining the value of 

the property and to suggest modification in the 

proposed terms and conditions of the purchase. 

The Agency shall consider the owner's 

presentation. ( See appendix A, §24.102(f).) 

(g) Updating offer of just compensation. If the 

information presented by the owner, or a material 

change in the character or condition of the 

property, indicates the need for new appraisal 

information, or if a significant delay has occurred 

since the time of the appraisal(s) of the property, 

the Agency shall have the appraisal(s) updated or 

obtain a new appraisal(s). If the latest appraisal 

information indicates that a change in the 

purchase offer is warranted, the Agency shall 

promptly reestablish just compensation and offer 

that amount to the owner in writing. 

(h) Coercive action. The Agency shall not 

advance the time of condemnation, or defer 

negotiations or condemnation or the deposit of 

funds with the court, or take any other coercive 

action in order to induce an agreement on the 

price to be paid for the property. 

(i) Administrative settlement. The purchase price 

for the property may exceed the amount offered 

as just compensation when reasonable efforts to 
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 11BThe Uniform Act –Common Rule – 49 CFR Part 24  107 

negotiate an agreement at that amount have failed 

and an authorized Agency official approves such 

administrative settlement as being reasonable, 

prudent, and in the public interest. When Federal 

funds pay for or participate in acquisition costs, a 

written justification shall be prepared, which 

states what available information, including trial 

risks, supports such a settlement. ( See appendix 

A, §24.102(i).) 

(j) Payment before taking possession. Before 

requiring the owner to surrender possession of 

the real property, the Agency shall pay the agreed 

purchase price to the owner, or in the case of a 

condemnation, deposit with the court, for the 

benefit of the owner, an amount not less than the 

Agency's approved appraisal of the fair market 

value of such property, or the court award of 

compensation in the condemnation proceeding 

for the property. In exceptional circumstances, 

with the prior approval of the owner, the Agency 

may obtain a right-of-entry for construction 

purposes before making payment available to an 

owner. ( See appendix A, §24.102(j).) 

(k) Uneconomic remnant. If the acquisition of 

only a portion of a property would leave the 

owner with an uneconomic remnant, the Agency 

shall offer to acquire the uneconomic remnant 

along with the portion of the property needed for 

the project. ( See §24.2(a)(27).) 

(l) Inverse condemnation. If the Agency intends 

to acquire any interest in real property by 

exercise of the power of eminent domain, it shall 

institute formal condemnation proceedings and 

not intentionally make it necessary for the owner 

to institute legal proceedings to prove the fact of 

the taking of the real property. 

(m) Fair rental. If the Agency permits a former 

owner or tenant to occupy the real property after 

acquisition for a short term, or a period subject to 

termination by the Agency on short notice, the 

rent shall not exceed the fair market rent for such 

occupancy. ( See appendix A, §24.102(m).) 

(n) Conflict of interest. (1) The appraiser, review 

appraiser or person performing the waiver 

valuation shall not have any interest, direct or 

indirect, in the real property being valued for the 

Agency. 

Compensation for making an appraisal or waiver 

valuation shall not be based on the amount of the 

valuation estimate. 

(2) No person shall attempt to unduly influence 

or coerce an appraiser, review appraiser, or 

waiver valuation preparer regarding any 

valuation or other aspect of an appraisal, review 

or waiver valuation. Persons functioning as 

negotiators may not supervise or formally 

evaluate the performance of any appraiser or 

review appraiser performing appraisal or 

appraisal review work, except that, for a program 

or project receiving Federal financial assistance, 

the Federal funding Agency may waive this 

requirement if it determines it would create a 

hardship for the Agency. 

(3) An appraiser, review appraiser, or waiver 

valuation preparer making an appraisal, appraisal 

review or waiver valuation may be authorized by 

the Agency to act as a negotiator for real property 

for which that person has made an appraisal, 

appraisal review or waiver valuation only if the 

offer to acquire the property is $10,000, or less. ( 

See appendix A, §24.102(n).) 

[70 FR 611, Jan. 4, 2005, as amended at 70 FR 

22611, May 2, 2005] 

§ 24.103 CRITERIA FOR 

APPRAISALS. 

(a) Appraisal requirements. This section sets 

forth the requirements for real property 

acquisition appraisals for Federal and federallyassisted programs. Appraisals are to be prepared 

according to these requirements, which are 

intended to be consistent with the Uniform 

Standards of Professional Appraisal Practice 

(USPAP).1

 ( See appendix A, §24.103(a).) The 

Agency may have appraisal requirements that 

supplement these requirements, including, to the 

extent appropriate, the Uniform Appraisal 

Standards for Federal Land Acquisition 

(UASFLA).2

 

1

 Uniform Standards of Professional Appraisal 

Practice (USPAP). Published by The Appraisal 

Foundation, a nonprofit educational organization. 

Copies may be ordered from The Appraisal 

Foundation at the following URL: 

http://www.appraisalfoundation.org/htm/USPAP

2004/toc.htm. 

2

 The “Uniform Appraisal Standards for Federal 

Land Acquisitions” is published by the 

Interagency Land Acquisition Conference. It is a 

compendium of Federal eminent domain 

appraisal law, both case and statute, regulations 
2009 Real Estate Acquisition Guide For Local Public Agencies 

108 11BThe Uniform Act –Common Rule – 49 CFR Part 24   

and practices. It is available at 

http://www.usdoj.gov/enrd/land-ack/toc.htm or in 

soft cover format from the Appraisal Institute at 

http://www.appraisalinstitute.org/econom/public

ations/Default.asp and select “Legal/Regulatory” 

or call 888–570–4545. 

(1) The Agency acquiring real property has a 

legitimate role in contributing to the appraisal 

process, especially in developing the scope of 

work and defining the appraisal problem. The 

scope of work and development of an appraisal 

under these requirements depends on the 

complexity of the appraisal problem. 

(2) The Agency has the responsibility to assure 

that the appraisals it obtains are relevant to its 

program needs, reflect established and commonly 

accepted Federal and federally-assisted program 

appraisal practice, and as a minimum, complies 

with the definition of appraisal in §24.2(a)(3) and 

the five following requirements: ( See appendix 

A, §§24.103 and 24.103(a).) 

(i) An adequate description of the physical 

characteristics of the property being appraised 

(and, in the case of a partial acquisition, an 

adequate description of the remaining property), 

including items identified as personal property, a 

statement of the known and observed 

encumbrances, if any, title information, location, 

zoning, present use, an analysis of highest and 

best use, and at least a 5-year sales history of the 

property. ( See appendix A, §24.103(a)(1).) 

(ii) All relevant and reliable approaches to value 

consistent with established Federal and federallyassisted program appraisal practices. If the 

appraiser uses more than one approach, there 

shall be an analysis and reconciliation of 

approaches to value used that is sufficient to 

support the appraiser's opinion of value. ( See 

appendix A, §24.103(a).) 

(iii) A description of comparable sales, including 

a description of all relevant physical, legal, and 

economic factors such as parties to the 

transaction, source and method of financing, and 

verification by a party involved in the 

transaction. 

(iv) A statement of the value of the real property 

to be acquired and, for a partial acquisition, a 

statement of the value of the damages and 

benefits, if any, to the remaining real property, 

where appropriate. 

(v) The effective date of valuation, date of 

appraisal, signature, and certification of the 

appraiser. 

(b) Influence of the project on just compensation. 

The appraiser shall disregard any decrease or 

increase in the fair market value of the real 

property caused by the project for which the 

property is to be acquired, or by the likelihood 

that the property would be acquired for the 

project, other than that due to physical 

deterioration within the reasonable control of the 

owner. (See appendix A, §24.103(b).) 

(c) Owner retention of improvements. If the 

owner of a real property improvement is 

permitted to retain it for removal from the project 

site, the amount to be offered for the interest in 

the real property to be acquired shall be not less 

than the difference between the amount 

determined to be just compensation for the 

owner's entire interest in the real property and the 

salvage value (defined at §24.2(a)(24)) of the 

retained improvement. 

(d) Qualifications of appraisers and review 

appraisers. 

(1) The Agency shall establish criteria for 

determining the minimum qualifications and 

competency of appraisers and review appraisers. 

Qualifications shall be consistent with the scope 

of work for the assignment. The Agency shall 

review the experience, education, training, 

certification/licensing, designation(s) and other 

qualifications of appraisers, and review 

appraisers, and use only those determined by the 

Agency to be qualified. (See appendix A, 

§24.103(d)(1).) 

(2) If the Agency uses a contract (fee) appraiser 

to perform the appraisal, such appraiser shall be 

State licensed or certified in accordance with title 

XI of the Financial Institutions Reform, 

Recovery, and Enforcement Act of 1989 

(FIRREA) (12 U.S.C. 3331 et seq. ). 

[70 FR 611, Jan. 4, 2005, as amended at 70 FR 

22611, May 2, 2005] 

§ 24.104 REVIEW OF APPRAISALS. 

The Agency shall have an appraisal review 

process and, at a minimum: 

(a) A qualified review appraiser (see 

§24.103(d)(1) and appendix A, §24.104) shall 
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examine the presentation and analysis of market 

information in all appraisals to assure that they 

meet the definition of appraisal found in 49 CFR 

24.2(a)(3), appraisal requirements found in 49 

CFR 24.103 and other applicable requirements, 

including, to the extent appropriate, the 

UASFLA, and support the appraiser's opinion of 

value. The level of review analysis depends on 

the complexity of the appraisal problem. As 

needed, the review appraiser shall, prior to 

acceptance, seek necessary corrections or 

revisions. The review appraiser shall identify 

each appraisal report as recommended (as the 

basis for the establishment of the amount 

believed to be just compensation), accepted 

(meets all requirements, but not selected as 

recommended or approved), or not accepted. If 

authorized by the Agency to do so, the staff 

review appraiser shall also approve the appraisal 

(as the basis for the establishment of the amount 

believed to be just compensation), and, if also 

authorized to do so, develop and report the 

amount believed to be just compensation. ( See 

appendix A, §24.104(a).) 

(b) If the review appraiser is unable to 

recommend (or approve) an appraisal as an 

adequate basis for the establishment of the offer 

of just compensation, and it is determined by the 

acquiring Agency that it is not practical to obtain 

an additional appraisal, the review appraiser may, 

as part of the review, present and analyze market 

information in conformance with §24.103 to 

support a recommended (or approved) value. ( 

See appendix A, §24.104(b).) 

(c) The review appraiser shall prepare a written 

report that identifies the appraisal reports 

reviewed and documents the findings and 

conclusions arrived at during the review of the 

appraisal(s). Any damages or benefits to any 

remaining property shall be identified in the 

review appraiser's report. The review appraiser 

shall also prepare a signed certification that states 

the parameters of the review. The certification 

shall state the approved value, and, if the review 

appraiser is authorized to do so, the amount 

believed to be just compensation for the 

acquisition. ( See appendix A, §24.104(c).) 

§ 24.105 ACQUISITION OF TENANTOWNED IMPROVEMENTS. 

(a) Acquisition of improvements. When acquiring 

any interest in real property, the Agency shall 

offer to acquire at least an equal interest in all 

buildings, structures, or other improvements 

located upon the real property to be acquired, 

which it requires to be removed or which it 

determines will be adversely affected by the use 

to which such real property will be put. This shall 

include any improvement of a tenant-owner who 

has the right or obligation to remove the 

improvement at the expiration of the lease term. 

(b) Improvements considered to be real property. 

Any building, structure, or other improvement, 

which would be considered to be real property if 

owned by the owner of the real property on 

which it is located, shall be considered to be real 

property for purposes of this subpart. 

(c) Appraisal and Establishment of Just 

Compensation for a Tenant-Owned Improvement. 

Just compensation for a tenant-owned 

improvement is the amount which the 

improvement contributes to the fair market value 

of the whole property, or its salvage value, 

whichever is greater. (Salvage value is defined at 

§24.2(a)(23).) 

(d) Special conditions for tenant-owned 

improvements. No payment shall be made to a 

tenant-owner for any real property improvement 

unless: 

(1) The tenant-owner, in consideration for the 

payment, assigns, transfers, and releases to the 

Agency all of the tenant-owner's right, title, and 

interest in the improvement; 

(2) The owner of the real property on which the 

improvement is located disclaims all interest in 

the improvement; and 

(3) The payment does not result in the 

duplication of any compensation otherwise 

authorized by law. 

(e) Alternative compensation. Nothing in this 

subpart shall be construed to deprive the tenantowner of any right to reject payment under this 

subpart and to obtain payment for such property 

interests in accordance with other applicable law. 

[70 FR 611, Jan. 4, 2005, as amended at 70 FR 

22611, May 2, 2005] 
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110 11BThe Uniform Act –Common Rule – 49 CFR Part 24   

§ 24.106 EXPENSES INCIDENTAL TO 

TRANSFER OF TITLE TO THE 

AGENCY. 

(a) The owner of the real property shall be 

reimbursed for all reasonable expenses the owner 

necessarily incurred for: 

(1) Recording fees, transfer taxes, documentary 

stamps, evidence of title, boundary surveys, legal 

descriptions of the real property, and similar 

expenses incidental to conveying the real 

property to the Agency. However, the Agency is 

not required to pay costs solely required to 

perfect the owner's title to the real property; 

(2) Penalty costs and other charges for 

prepayment of any preexisting recorded mortgage 

entered into in good faith encumbering the real 

property; and 

(3) The pro rata portion of any prepaid real 

property taxes which are allocable to the period 

after the Agency obtains title to the property or 

effective possession of it, whichever is earlier. 

(b) Whenever feasible, the Agency shall pay 

these costs directly to the billing agent so that the 

owner will not have to pay such costs and then 

seek reimbursement from the Agency.

§ 24.107 CERTAIN LITIGATION 

EXPENSES. 

The owner of the real property shall be 

reimbursed for any reasonable expenses, 

including reasonable attorney, appraisal, and 

engineering fees, which the owner actually 

incurred because of a condemnation proceeding, 

if: 

(a) The final judgment of the court is that the 

Agency cannot acquire the real property by 

condemnation; 

(b) The condemnation proceeding is abandoned 

by the Agency other than under an agreed-upon 

settlement; or 

(c) The court having jurisdiction renders a 

judgment in favor of the owner in an inverse 

condemnation proceeding or the Agency effects a 

settlement of such proceeding. 

§ 24.108 DONATIONS. 

An owner whose real property is being acquired 

may, after being fully informed by the Agency of 

the right to receive just compensation for such 

property, donate such property or any part 

thereof, any interest therein, or any compensation 

paid therefore, to the Agency as such owner shall 

determine. The Agency is responsible for 

ensuring that an appraisal of the real property is 

obtained unless the owner releases the Agency 

from such obligation, except as provided in 

§24.102(c)(2). 

SUBPART C—GENERAL 

RELOCATION REQUIREMENTS 

§ 24.201 PURPOSE. 

This subpart prescribes general requirements 

governing the provision of relocation payments 

and other relocation assistance in this part. 

§ 24.202 APPLICABILITY. 

These requirements apply to the relocation of any 

displaced person as defined at §24.2(a)(9). Any 

person who qualifies as a displaced person must 

be fully informed of his or her rights and 

entitlements to relocation assistance and 

payments provided by the Uniform Act and this 

regulation. ( See appendix A, §24.202.) 

§ 24.203 RELOCATION NOTICES. 

(a) General information notice. As soon as 

feasible, a person scheduled to be displaced shall 

be furnished with a general written description of 

the displacing Agency's relocation program 

which does at least the following: 

(1) Informs the person that he or she may be 

displaced for the project and generally describes 

the relocation payment(s) for which the person 

may be eligible, the basic conditions of 

eligibility, and the procedures for obtaining the 

payment(s); 

(2) Informs the displaced person that he or she 

will be given reasonable relocation advisory 

services, including referrals to replacement 

properties, help in filing payment claims, and 

other necessary assistance to help the displaced 

person successfully relocate; 

(3) Informs the displaced person that he or she 

will not be required to move without at least 90 

days advance written notice (see paragraph (c) of 

this section), and informs any person to be 

displaced from a dwelling that he or she cannot 
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be required to move permanently unless at least 

one comparable replacement dwelling has been 

made available; 

(4) Informs the displaced person that any person 

who is an alien not lawfully present in the United 

States is ineligible for relocation advisory 

services and relocation payments, unless such 

ineligibility would result in exceptional and 

extremely unusual hardship to a qualifying 

spouse, parent, or child, as defined in §24.208(h); 

and 

(5) Describes the displaced person's right to 

appeal the Agency's determination as to a 

person's application for assistance for which a 

person may be eligible under this part. 

(b) Notice of relocation eligibility. Eligibility for 

relocation assistance shall begin on the date of a 

notice of intent to acquire (described in 

§24.203(d)), the initiation of negotiations 

(defined in §24.2(a)(15)), or actual acquisition, 

whichever occurs first. When this occurs, the 

Agency shall promptly notify all occupants in 

writing of their eligibility for applicable 

relocation assistance. 

(c) Ninety-day notice —(1) General. No lawful 

occupant shall be required to move unless he or 

she has received at least 90 days advance written 

notice of the earliest date by which he or she may 

be required to move. 

(2) Timing of notice. The displacing Agency may 

issue the notice 90 days or earlier before it 

expects the person to be displaced. 

(3) Content of notice. The 90-day notice shall 

either state a specific date as the earliest date by 

which the occupant may be required to move, or 

state that the occupant will receive a further 

notice indicating, at least 30 days in advance, the 

specific date by which he or she must move. If 

the 90-day notice is issued before a comparable 

replacement dwelling is made available, the 

notice must state clearly that the occupant will 

not have to move earlier than 90 days after such a 

dwelling is made available. ( See §24.204(a).) 

(4) Urgent need. In unusual circumstances, an 

occupant may be required to vacate the property 

on less than 90 days advance written notice if the 

displacing Agency determines that a 90-day 

notice is impracticable, such as when the person's 

continued occupancy of the property would 

constitute a substantial danger to health or safety. 

A copy of the Agency's determination shall be 

included in the applicable case file. 

(d) Notice of intent to acquire. A notice of intent 

to acquire is a displacing Agency's written 

communication that is provided to a person to be 

displaced, including those to be displaced by 

rehabilitation or demolition activities from 

property acquired prior to the commitment of 

Federal financial assistance to the activity, which 

clearly sets forth that the Agency intends to 

acquire the property. A notice of intent to acquire 

establishes eligibility for relocation assistance 

prior to the initiation of negotiations and/or prior 

to the commitment of Federal financial 

assistance. ( See §24.2(a)(9)(i)(A).) 

§ 24.204 AVAILABILITY OF 

COMPARABLE REPLACEMENT 

DWELLING BEFORE 

DISPLACEMENT. 

(a) General. No person to be displaced shall be 

required to move from his or her dwelling unless 

at least one comparable replacement dwelling 

(defined at §24.2 (a)(6)) has been made available 

to the person. When possible, three or more 

comparable replacement dwellings shall be made 

available. A comparable replacement dwelling 

will be considered to have been made available to 

a person, if: 

(1) The person is informed of its location; 

(2) The person has sufficient time to negotiate 

and enter into a purchase agreement or lease for 

the property; and 

(3) Subject to reasonable safeguards, the person 

is assured of receiving the relocation assistance 

and acquisition payment to which the person is 

entitled in sufficient time to complete the 

purchase or lease of the property. 

(b) Circumstances permitting waiver. The 

Federal Agency funding the project may grant a 

waiver of the policy in paragraph (a) of this 

section in any case where it is demonstrated that 

a person must move because of: 

(1) A major disaster as defined in section 102 of 

the Robert T. Stafford Disaster Relief and 

Emergency Assistance Act, as amended (42 

U.S.C. 5122); 

(2) A presidentially declared national emergency; 

or 
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112 11BThe Uniform Act –Common Rule – 49 CFR Part 24   

(3) Another emergency which requires immediate 

vacation of the real property, such as when 

continued occupancy of the displacement 

dwelling constitutes a substantial danger to the 

health or safety of the occupants or the public. 

(c) Basic conditions of emergency move. 

Whenever a person to be displaced is required to 

relocate from the displacement dwelling for a 

temporary period because of an emergency as 

described in paragraph (b) of this section, the 

Agency shall: 

(1) Take whatever steps are necessary to assure 

that the person is temporarily relocated to a 

decent, safe, and sanitary dwelling; 

(2) Pay the actual reasonable out-of-pocket 

moving expenses and any reasonable increase in 

rent and utility costs incurred in connection with 

the temporary relocation; and 

(3) Make available to the displaced person as 

soon as feasible, at least one comparable 

replacement dwelling. (For purposes of filing a 

claim and meeting the eligibility requirements for 

a relocation payment, the date of displacement is 

the date the person moves from the temporarily 

occupied dwelling.) 

§ 24.205 RELOCATION PLANNING, 

ADVISORY SERVICES, AND 

COORDINATION. 

(a) Relocation planning. During the early stages 

of development, an Agency shall plan Federal 

and federally-assisted programs or projects in 

such a manner that recognizes the problems 

associated with the displacement of individuals, 

families, businesses, farms, and nonprofit 

organizations and develop solutions to minimize 

the adverse impacts of displacement. Such 

planning, where appropriate, shall precede any 

action by an Agency which will cause 

displacement, and should be scoped to the 

complexity and nature of the anticipated 

displacing activity including an evaluation of 

program resources available to carry out timely 

and orderly relocations. Planning may involve a 

relocation survey or study, which may include 

the following: 

(1) An estimate of the number of households to 

be displaced including information such as 

owner/tenant status, estimated value and rental 

rates of properties to be acquired, family 

characteristics, and special consideration of the 

impacts on minorities, the elderly, large families, 

and persons with disabilities when applicable. 

(2) An estimate of the number of comparable 

replacement dwellings in the area (including 

price ranges and rental rates) that are expected to 

be available to fulfill the needs of those 

households displaced. When an adequate supply 

of comparable housing is not expected to be 

available, the Agency should consider housing of 

last resort actions. 

(3) An estimate of the number, type and size of 

the businesses, farms, and nonprofit 

organizations to be displaced and the 

approximate number of employees that may be 

affected. 

(4) An estimate of the availability of replacement 

business sites. When an adequate supply of 

replacement business sites is not expected to be 

available, the impacts of displacing the 

businesses should be considered and addressed. 

Planning for displaced businesses which are 

reasonably expected to involve complex or 

lengthy moving processes or small businesses 

with limited financial resources and/or few 

alternative relocation sites should include an 

analysis of business moving problems. 

(5) Consideration of any special relocation 

advisory services that may be necessary from the 

displacing Agency and other cooperating 

Agencies. 

(b) Loans for planning and preliminary expenses. 

In the event that an Agency elects to consider 

using the duplicative provision in section 215 of 

the Uniform Act which permits the use of project 

funds for loans to cover planning and other 

preliminary expenses for the development of 

additional housing, the Lead Agency will 

establish criteria and procedures for such use 

upon the request of the Federal Agency funding 

the program or project. 

(c) Relocation assistance advisory services —(1) 

General. The Agency shall carry out a relocation 

assistance advisory program which satisfies the 

requirements of Title VI of the Civil Rights Act 

of 1964 (42 U.S.C. 2000d et seq. ), Title VIII of 

the Civil Rights Act of 1968 (42 U.S.C. 3601 et 

seq. ), and Executive Order 11063 (27 FR 11527, 

November 24, 1962), and offer the services 

described in paragraph (c)(2) of this section. If 
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the Agency determines that a person occupying 

property adjacent to the real property acquired for 

the project is caused substantial economic injury 

because of such acquisition, it may offer advisory 

services to such person. 

(2) Services to be provided. The advisory 

program shall include such measures, facilities, 

and services as may be necessary or appropriate 

in order to: 

(i) Determine, for nonresidential (businesses, 

farm and nonprofit organizations) displacements, 

the relocation needs and preferences of each 

business (farm and nonprofit organization) to be 

displaced and explain the relocation payments 

and other assistance for which the business may 

be eligible, the related eligibility requirements, 

and the procedures for obtaining such assistance. 

This shall include a personal interview with each 

business. At a minimum, interviews with 

displaced business owners and operators should 

include the following items: 

(A) The business's replacement site requirements, 

current lease terms and other contractual 

obligations and the financial capacity of the 

business to accomplish the move. 

(B) Determination of the need for outside 

specialists in accordance with §24.301(g)(12) 

that will be required to assist in planning the 

move, assistance in the actual move, and in the 

reinstallation of machinery and/or other personal 

property. 

(C) For businesses, an identification and 

resolution of personalty/realty issues. Every 

effort must be made to identify and resolve 

realty/personalty issues prior to, or at the time of, 

the appraisal of the property. 

(D) An estimate of the time required for the 

business to vacate the site. 

(E) An estimate of the anticipated difficulty in 

locating a replacement property. 

(F) An identification of any advance relocation 

payments required for the move, and the 

Agency's legal capacity to provide them. 

(ii) Determine, for residential displacements, the 

relocation needs and preferences of each person 

to be displaced and explain the relocation 

payments and other assistance for which the 

person may be eligible, the related eligibility 

requirements, and the procedures for obtaining 

such assistance. This shall include a personal 

interview with each residential displaced person. 

(A) Provide current and continuing information 

on the availability, purchase prices, and rental 

costs of comparable replacement dwellings, and 

explain that the person cannot be required to 

move unless at least one comparable replacement 

dwelling is made available as set forth in 

§24.204(a). 

(B) As soon as feasible, the Agency shall inform 

the person in writing of the specific comparable 

replacement dwelling and the price or rent used 

for establishing the upper limit of the 

replacement housing payment ( see §24.403 (a) 

and (b)) and the basis for the determination, so 

that the person is aware of the maximum 

replacement housing payment for which he or she 

may qualify. 

(C) Where feasible, housing shall be inspected 

prior to being made available to assure that it 

meets applicable standards. ( See §24.2(a)(8).) If 

such an inspection is not made, the Agency shall 

notify the person to be displaced that a 

replacement housing payment may not be made 

unless the replacement dwelling is subsequently 

inspected and determined to be decent, safe, and 

sanitary. 

(D) Whenever possible, minority persons shall be 

given reasonable opportunities to relocate to 

decent, safe, and sanitary replacement dwellings, 

not located in an area of minority concentration, 

that are within their financial means. This policy, 

however, does not require an Agency to provide a 

person a larger payment than is necessary to 

enable a person to relocate to a comparable 

replacement dwelling. ( See appendix A, 

§24.205(c)(2)(ii)(D).) 

(E) The Agency shall offer all persons 

transportation to inspect housing to which they 

are referred. 

(F) Any displaced person that may be eligible for 

government housing assistance at the 

replacement dwelling shall be advised of any 

requirements of such government housing 

assistance program that would limit the size of 

the replacement dwelling ( see §24.2(a)(6)(ix)), 

as well as of the long term nature of such rent 

subsidy, and the limited (42 month) duration of 

the relocation rental assistance payment. 
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114 11BThe Uniform Act –Common Rule – 49 CFR Part 24   

(iii) Provide, for nonresidential moves, current 

and continuing information on the availability, 

purchase prices, and rental costs of suitable 

commercial and farm properties and locations. 

Assist any person displaced from a business or 

farm operation to obtain and become established 

in a suitable replacement location. 

(iv) Minimize hardships to persons in adjusting to 

relocation by providing counseling, advice as to 

other sources of assistance that may be available, 

and such other help as may be appropriate. 

(v) Supply persons to be displaced with 

appropriate information concerning Federal and 

State housing programs, disaster loan and other 

programs administered by the Small Business 

Administration, and other Federal and State 

programs offering assistance to displaced 

persons, and technical help to persons applying 

for such assistance. 

(d) Coordination of relocation activities. 

Relocation activities shall be coordinated with 

project work and other displacement-causing 

activities to ensure that, to the extent feasible, 

persons displaced receive consistent treatment 

and the duplication of functions is minimized. ( 

See §24.6.) 

(e) Any person who occupies property acquired 

by an Agency, when such occupancy began 

subsequent to the acquisition of the property, and 

the occupancy is permitted by a short term rental 

agreement or an agreement subject to termination 

when the property is needed for a program or 

project, shall be eligible for advisory services, as 

determined by the Agency. 

§ 24.206 EVICTION FOR CAUSE. 

(a) Eviction for cause must conform to applicable 

State and local law. Any person who occupies the 

real property and is not in unlawful occupancy on 

the date of the initiation of negotiations, is 

presumed to be entitled to relocation payments 

and other assistance set forth in this part unless 

the Agency determines that: 

(1) The person received an eviction notice prior 

to the initiation of negotiations and, as a result of 

that notice is later evicted; or 

(2) The person is evicted after the initiation of 

negotiations for serious or repeated violation of 

material terms of the lease or occupancy 

agreement; and 

(3) In either case the eviction was not undertaken 

for the purpose of evading the obligation to make 

available the payments and other assistance set 

forth in this part. 

(b) For purposes of determining eligibility for 

relocation payments, the date of displacement is 

the date the person moves, or if later, the date a 

comparable replacement dwelling is made 

available. This section applies only to persons 

who would otherwise have been displaced by the 

project. ( See appendix A, §24.206.) 

§ 24.207 GENERAL REQUIREMENTS 

—CLAIMS FOR RELOCATION 

PAYMENTS. 

(a) Documentation. Any claim for a relocation 

payment shall be supported by such 

documentation as may be reasonably required to 

support expenses incurred, such as bills, certified 

prices, appraisals, or other evidence of such 

expenses. A displaced person must be provided 

reasonable assistance necessary to complete and 

file any required claim for payment. 

(b) Expeditious payments. The Agency shall 

review claims in an expeditious manner. The 

claimant shall be promptly notified as to any 

additional documentation that is required to 

support the claim. Payment for a claim shall be 

made as soon as feasible following receipt of 

sufficient documentation to support the claim. 

(c) Advanced payments. If a person demonstrates 

the need for an advanced relocation payment in 

order to avoid or reduce a hardship, the Agency 

shall issue the payment, subject to such 

safeguards as are appropriate to ensure that the 

objective of the payment is accomplished. 

(d) Time for filing. 

(1) All claims for a relocation payment shall be 

filed with the Agency no later than 18 months 

after: 

(i) For tenants, the date of displacement. 

(ii) For owners, the date of displacement or the 

date of the final payment for the acquisition of 

the real property, whichever is later. 

(2) The Agency shall waive this time period for 

good cause. 

(e) Notice of denial of claim. If the Agency 

disapproves all or part of a payment claimed or 
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refuses to consider the claim on its merits 

because of untimely filing or other grounds, it 

shall promptly notify the claimant in writing of 

its determination, the basis for its determination, 

and the procedures for appealing that 

determination. 

(f) No waiver of relocation assistance. A 

displacing Agency shall not propose or request 

that a displaced person waive his or her rights or 

entitlements to relocation assistance and benefits 

provided by the Uniform Act and this regulation. 

(g) Expenditure of payments. Payments, provided 

pursuant to this part, shall not be considered to 

constitute Federal financial assistance. 

Accordingly, this part does not apply to the 

expenditure of such payments by, or for, a 

displaced person. 

§ 24.208 ALIENS NOT LAWFULLY 

PRESENT IN THE UNITED STATES. 

(a) Each person seeking relocation payments or 

relocation advisory assistance shall, as a 

condition of eligibility, certify: 

(1) In the case of an individual, that he or she is 

either a citizen or national of the United States, or 

an alien who is lawfully present in the United 

States. 

(2) In the case of a family, that each family 

member is either a citizen or national of the 

United States, or an alien who is lawfully present 

in the United States. The certification may be 

made by the head of the household on behalf of 

other family members. 

(3) In the case of an unincorporated business, 

farm, or nonprofit organization, that each owner 

is either a citizen or national of the United States, 

or an alien who is lawfully present in the United 

States. The certification may be made by the 

principal owner, manager, or operating officer on 

behalf of other persons with an ownership 

interest. 

(4) In the case of an incorporated business, farm, 

or nonprofit organization, that the corporation is 

authorized to conduct business within the United 

States. 

(b) The certification provided pursuant to 

paragraphs (a)(1), (a)(2), and (a)(3) of this 

section shall indicate whether such person is 

either a citizen or national of the United States, or 

an alien who is lawfully present in the United 

States. Requirements concerning the certification 

in addition to those contained in this rule shall be 

within the discretion of the Federal funding 

Agency and, within those parameters, that of the 

displacing Agency. 

(c) In computing relocation payments under the 

Uniform Act, if any member(s) of a household or 

owner(s) of an unincorporated business, farm, or 

nonprofit organization is (are) determined to be 

ineligible because of a failure to be legally 

present in the United States, no relocation 

payments may be made to him or her. Any 

payment(s) for which such household, 

unincorporated business, farm, or nonprofit 

organization would otherwise be eligible shall be 

computed for the household, based on the 

number of eligible household members and for 

the unincorporated business, farm, or nonprofit 

organization, based on the ratio of ownership 

between eligible and ineligible owners. 

(d) The displacing Agency shall consider the 

certification provided pursuant to paragraph (a) 

of this section to be valid, unless the displacing 

Agency determines in accordance with paragraph 

(f) of this section that it is invalid based on a 

review of an alien's documentation or other 

information that the Agency considers reliable 

and appropriate. 

(e) Any review by the displacing Agency of the 

certifications provided pursuant to paragraph (a) 

of this section shall be conducted in a 

nondiscriminatory fashion. Each displacing 

Agency will apply the same standard of review to 

all such certifications it receives, except that such 

standard may be revised periodically. 

(f) If, based on a review of an alien's 

documentation or other credible evidence, a 

displacing Agency has reason to believe that a 

person's certification is invalid (for example a 

document reviewed does not on its face 

reasonably appear to be genuine), and that, as a 

result, such person may be an alien not lawfully 

present in the United States, it shall obtain the 

following information before making a final 

determination: 

(1) If the Agency has reason to believe that the 

certification of a person who has certified that he 

or she is an alien lawfully present in the United 

States is invalid, the displacing Agency shall 

obtain verification of the alien's status from the 
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116 11BThe Uniform Act –Common Rule – 49 CFR Part 24   

local Bureau of Citizenship and Immigration 

Service (BCIS) Office. A list of local BCIS 

offices is available at 

http://www.uscis.gov/graphics/fieldoffices/alphaa

.htm. Any request for BCIS verification shall 

include the alien's full name, date of birth and 

alien number, and a copy of the alien's 

documentation. (If an Agency is unable to 

contact the BCIS, it may contact the FHWA in 

Washington, DC, Office of Real Estate Services 

or Office of Chief Counsel for a referral to the 

BCIS.) 

(2) If the Agency has reason to believe that the 

certification of a person who has certified that he 

or she is a citizen or national is invalid, the 

displacing Agency shall request evidence of 

United States citizenship or nationality from such 

person and, if considered necessary, verify the 

accuracy of such evidence with the issuer. 

(g) No relocation payments or relocation 

advisory assistance shall be provided to a person 

who has not provided the certification described 

in this section or who has been determined to be 

not lawfully present in the United States, unless 

such person can demonstrate to the displacing 

Agency's satisfaction that the denial of relocation 

assistance will result in an exceptional and 

extremely unusual hardship to such person's 

spouse, parent, or child who is a citizen of the 

United States, or is an alien lawfully admitted for 

permanent residence in the United States. 

(h) For purposes of paragraph (g) of this section, 

“exceptional and extremely unusual hardship” to 

such spouse, parent, or child of the person not 

lawfully present in the United States means that 

the denial of relocation payments and advisory 

assistance to such person will directly result in: 

(1) A significant and demonstrable adverse 

impact on the health or safety of such spouse, 

parent, or child; 

(2) A significant and demonstrable adverse 

impact on the continued existence of the family 

unit of which such spouse, parent, or child is a 

member; or 

(3) Any other impact that the displacing Agency 

determines will have a significant and 

demonstrable adverse impact on such spouse, 

parent, or child. 

(i) The certification referred to in paragraph (a) 

of this section may be included as part of the 

claim for relocation payments described in 

§24.207 of this part. 

(Approved  by  the  Office  of  Management  and 

Budget under control number 2105–0508.) 

§ 24.209 RELOCATION PAYMENTS 

NOT CONSIDERED AS INCOME. 

No relocation payment received by a displaced 

person under this part shall be considered as 

income for the purpose of the Internal Revenue 

Code of 1954, which has been redesignated as the 

Internal Revenue Code of 1986 (Title 26, U.S. 

Code), or for the purpose of determining the 

eligibility or the extent of eligibility of any 

person for assistance under the Social Security 

Act (42 U.S. Code 301 et seq. ) or any other 

Federal law, except for any Federal law 

providing low-income housing assistance. 

SUBPART D—PAYMENTS FOR 

MOVING AND RELATED EXPENSES 

§ 24.301 PAYMENT FOR ACTUAL 

REASONABLE MOVING AND 

RELATED EXPENSES. 

(a) General. 

(1) Any owner-occupant or tenant who qualifies 

as a displaced person (defined at §24.2(a)(9)) and 

who moves from a dwelling (including a mobile 

home) or who moves from a business, farm or 

nonprofit organization is entitled to payment of 

his or her actual moving and related expenses, as 

the Agency determines to be reasonable and 

necessary. 

(2) A non-occupant owner of a rented mobile 

home is eligible for actual cost reimbursement 

under §24.301 to relocate the mobile home. If the 

mobile home is not acquired as real estate, but 

the homeowner-occupant obtains a replacement 

housing payment under one of the circumstances 

described at §24.502(a)(3), the home-owner 

occupant is not eligible for payment for moving 

the mobile home, but may be eligible for a 

payment for moving personal property from the 

mobile home. 

(b) Moves from a dwelling. A displaced person's 

actual, reasonable and necessary moving 

expenses for moving personal property from a 

dwelling may be determined based on the cost of 

one, or a combination of the following methods: 
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(Eligible expenses for moves from a dwelling 

include the expenses described in paragraphs 

(g)(1) through (g)(7) of this section. Self-moves 

based on the lower of two bids or estimates are 

not eligible for reimbursement under this 

section.) 

(1) Commercial move —moves performed by a 

professional mover. 

(2) Self-move —moves that may be performed by 

the displaced person in one or a combination of 

the following methods: 

(i) Fixed Residential Moving Cost Schedule. 

(Described in §24.302.) 

(ii) Actual cost move. Supported by receipted 

bills for labor and equipment. Hourly labor rates 

should not exceed the cost paid by a commercial 

mover. Equipment rental fees should be based on 

the actual cost of renting the equipment but not 

exceed the cost paid by a commercial mover. 

(c) Moves from a mobile home. A displaced 

person's actual, reasonable and necessary moving 

expenses for moving personal property from a 

mobile home may be determined based on the 

cost of one, or a combination of the following 

methods: (self-moves based on the lower of two 

bids or estimates are not eligible for 

reimbursement under this section. Eligible 

expenses for moves from a mobile home include 

those expenses described in paragraphs (g)(1) 

through (g)(7) of this section. In addition to the 

items in paragraph (a) of this section, the owneroccupant of a mobile home that is moved as 

personal property and used as the person's 

replacement dwelling, is also eligible for the 

moving expenses described in paragraphs (g)(8) 

through (g)(10) of this section.) 

(1) Commercial move —moves performed by a 

professional mover. 

(2) Self-move —moves that may be performed by 

the displaced person in one or a combination of 

the following methods: 

(i) Fixed Residential Moving Cost Schedule. 

(Described in §24.302.) 

(ii) Actual cost move. Supported by receipted 

bills for labor and equipment. Hourly labor rates 

should not exceed the cost paid by a commercial 

mover. Equipment rental fees should be based on 

the actual cost of renting the equipment but not 

exceed the cost paid by a commercial mover. 

(d) Moves from a business, farm or nonprofit 

organization. Personal property as determined by 

an inventory from a business, farm or nonprofit 

organization may be moved by one or a 

combination of the following methods: (Eligible 

expenses for moves from a business, farm or 

nonprofit organization include those expenses 

described in paragraphs (g)(1) through (g)(7) of 

this section and paragraphs (g)(11) through 

(g)(18) of this section and §24.303.) 

(1) Commercial move. Based on the lower of two 

bids or estimates prepared by a commercial 

mover. At the Agency's discretion, payment for a 

low cost or uncomplicated move may be based 

on a single bid or estimate. 

(2) Self-move. A self-move payment may be 

based on one or a combination of the following: 

(i) The lower of two bids or estimates prepared 

by a commercial mover or qualified Agency staff 

person. At the Agency's discretion, payment for a 

low cost or uncomplicated move may be based 

on a single bid or estimate; or 

(ii) Supported by receipted bills for labor and 

equipment. Hourly labor rates should not exceed 

the rates paid by a commercial mover to 

employees performing the same activity and, 

equipment rental fees should be based on the 

actual rental cost of the equipment but not to 

exceed the cost paid by a commercial mover. 

(e) Personal property only. Eligible expenses for 

a person who is required to move personal 

property from real property but is not required to 

move from a dwelling (including a mobile 

home), business, farm or nonprofit organization 

include those expenses described in paragraphs 

(g)(1) through (g)(7) and (g)(18) of this section. 

(See appendix A, §24.301(e).) 

(f) Advertising signs. The amount of a payment 

for direct loss of an advertising sign, which is 

personal property shall be the lesser of: 

(1) The depreciated reproduction cost of the sign, 

as determined by the Agency, less the proceeds 

from its sale; or 

(2) The estimated cost of moving the sign, but 

with no allowance for storage. 

(g) Eligible actual moving expenses. 

(1) Transportation of the displaced person and 

personal property. Transportation costs for a 
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118 11BThe Uniform Act –Common Rule – 49 CFR Part 24   

distance beyond 50 miles are not eligible, unless 

the Agency determines that relocation beyond 50 

miles is justified. 

(2) Packing, crating, unpacking, and uncrating of 

the personal property. 

(3) Disconnecting, dismantling, removing, 

reassembling, and reinstalling relocated 

household appliances and other personal 

property. For businesses, farms or nonprofit 

organizations this includes machinery, 

equipment, substitute personal property, and 

connections to utilities available within the 

building; it also includes modifications to the 

personal property, including those mandated by 

Federal, State or local law, code or ordinance, 

necessary to adapt it to the replacement structure, 

the replacement site, or the utilities at the 

replacement site, and modifications necessary to 

adapt the utilities at the replacement site to the 

personal property. 

(4) Storage of the personal property for a period 

not to exceed 12 months, unless the Agency 

determines that a longer period is necessary. 

(5) Insurance for the replacement value of the 

property in connection with the move and 

necessary storage. 

(6) The replacement value of property lost, 

stolen, or damaged in the process of moving (not 

through the fault or negligence of the displaced 

person, his or her agent, or employee) where 

insurance covering such loss, theft, or damage is 

not reasonably available. 

(7) Other moving-related expenses that are not 

listed as ineligible under §24.301(h), as the 

Agency determines to be reasonable and 

necessary. 

(8) The reasonable cost of disassembling, 

moving, and reassembling any appurtenances 

attached to a mobile home, such as porches, 

decks, skirting, and awnings, which were not 

acquired, anchoring of the unit, and utility 

“hookup” charges. 

(9) The reasonable cost of repairs and/or 

modifications so that a mobile home can be 

moved and/or made decent, safe, and sanitary. 

(10) The cost of a nonrefundable mobile home 

park entrance fee, to the extent it does not exceed 

the fee at a comparable mobile home park, if the 

person is displaced from a mobile home park or 

the Agency determines that payment of the fee is 

necessary to effect relocation. 

(11) Any license, permit, fees or certification 

required of the displaced person at the 

replacement location. However, the payment may 

be based on the remaining useful life of the 

existing license, permit, fees or certification. 

(12) Professional services as the Agency 

determines to be actual, reasonable and necessary 

for: 

(i) Planning the move of the personal property; 

(ii) Moving the personal property; and 

(iii) Installing the relocated personal property at 

the replacement location. 

(13) Relettering signs and replacing stationery on 

hand at the time of displacement that are made 

obsolete as a result of the move. 

(14) Actual direct loss of tangible personal 

property incurred as a result of moving or 

discontinuing the business or farm operation. The 

payment shall consist of the lesser of: 

(i) The fair market value in place of the item, as 

is for continued use, less the proceeds from its 

sale. (To be eligible for payment, the claimant 

must make a good faith effort to sell the personal 

property, unless the Agency determines that such 

effort is not necessary. When payment for 

property loss is claimed for goods held for sale, 

the fair market value shall be based on the cost of 

the goods to the business, not the potential selling 

prices.); or 

(ii) The estimated cost of moving the item as is, 

but not including any allowance for storage; or 

for reconnecting a piece of equipment if the 

equipment is in storage or not being used at the 

acquired site. (See appendix A, §24.301(g)(14)(i) 

and (ii).) If the business or farm operation is 

discontinued, the estimated cost of moving the 

item shall be based on a moving distance of 50 

miles. 

(15) The reasonable cost incurred in attempting 

to sell an item that is not to be relocated. 

(16) Purchase of substitute personal property. If 

an item of personal property, which is used as 

part of a business or farm operation is not moved 

but is promptly replaced with a substitute item 

that performs a comparable function at the 
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replacement site, the displaced person is entitled 

to payment of the lesser of: 

(i) The cost of the substitute item, including 

installation costs of the replacement site, minus 

any proceeds from the sale or trade-in of the 

replaced item; or 

(ii) The estimated cost of moving and reinstalling 

the replaced item but with no allowance for 

storage. At the Agency's discretion, the estimated 

cost for a low cost or uncomplicated move may 

be based on a single bid or estimate. 

(17) Searching for a replacement location. A 

business or farm operation is entitled to 

reimbursement for actual expenses, not to exceed 

$2,500, as the Agency determines to be 

reasonable, which are incurred in searching for a 

replacement location, including: 

(i) Transportation; 

(ii) Meals and lodging away from home; 

(iii) Time spent searching, based on reasonable 

salary or earnings; 

(iv) Fees paid to a real estate agent or broker to 

locate a replacement site, exclusive of any fees or 

commissions related to the purchase of such sites; 

(v) Time spent in obtaining permits and attending 

zoning hearings; and 

(vi) Time spent negotiating the purchase of a 

replacement site based on a reasonable salary or 

earnings. 

(18) Low value/high bulk. When the personal 

property to be moved is of low value and high 

bulk, and the cost of moving the property would 

be disproportionate to its value in the judgment 

of the displacing Agency, the allowable moving 

cost payment shall not exceed the lesser of: The 

amount which would be received if the property 

were sold at the site or the replacement cost of a 

comparable quantity delivered to the new 

business location. Examples of personal property 

covered by this provision include, but are not 

limited to, stockpiled sand, gravel, minerals, 

metals and other similar items of personal 

property as determined by the Agency. 

(h) Ineligible moving and related expenses. A 

displaced person is not entitled to payment for: 

(1) The cost of moving any structure or other real 

property improvement in which the displaced 

person reserved ownership. (However, this part 

does not preclude the computation under 

§24.401(c)(2)(iii)); 

(2) Interest on a loan to cover moving expenses; 

(3) Loss of goodwill; 

(4) Loss of profits; 

(5) Loss of trained employees; 

(6) Any additional operating expenses of a 

business or farm operation incurred because of 

operating in a new location except as provided in 

§24.304(a)(6); 

(7) Personal injury; 

(8) Any legal fee or other cost for preparing a 

claim for a relocation payment or for representing 

the claimant before the Agency; 

(9) Expenses for searching for a replacement 

dwelling; 

(10) Physical changes to the real property at the 

replacement location of a business or farm 

operation except as provided in §§24.301(g)(3) 

and 24.304(a); 

(11) Costs for storage of personal property on 

real property already owned or leased by the 

displaced person, and 

(12) Refundable security and utility deposits. 

(i) Notification and inspection (nonresidential). 

The Agency shall inform the displaced person, in 

writing, of the requirements of this section as 

soon as possible after the initiation of 

negotiations. This information may be included 

in the relocation information provided the 

displaced person as set forth in §24.203. To be 

eligible for payments under this section the 

displaced person must: 

(1) Provide the Agency reasonable advance 

notice of the approximate date of the start of the 

move or disposition of the personal property and 

an inventory of the items to be moved. However, 

the Agency may waive this notice requirement 

after documenting its file accordingly. 

(2) Permit the Agency to make reasonable and 

timely inspections of the personal property at 

both the displacement and replacement sites and 

to monitor the move. 

(j) Transfer of ownership (nonresidential). Upon 

request and in accordance with applicable law, 
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120 11BThe Uniform Act –Common Rule – 49 CFR Part 24   

the claimant shall transfer to the Agency 

ownership of any personal property that has not 

been moved, sold, or traded in. 

[70 FR 611, Jan. 4, 2005, as amended at 70 FR 

22611, May 2, 2005] 

§ 24.302 FIXED PAYMENT FOR 

MOVING EXPENSES—RESIDENTIAL 

MOVES. 

Any person displaced from a dwelling or a 

seasonal residence or a dormitory style room is 

entitled to receive a fixed moving cost payment 

as an alternative to a payment for actual moving 

and related expenses under §24.301. This 

payment shall be determined according to the 

Fixed Residential Moving Cost Schedule3

approved by the Federal Highway Administration 

and published in the Federal Register on a 

periodic basis. The payment to a person with 

minimal personal possessions who is in 

occupancy of a dormitory style room or a person 

whose residential move is performed by an 

Agency at no cost to the person shall be limited 

to the amount stated in the most recent edition of 

the Fixed Residential Moving Cost Schedule. 

3

 The Fixed Residential Moving Cost Schedule is 

available at the following URL: 

http://www.fhwa.dot.gov//////realestate/fixsch96.h

tm. Agencies are cautioned to ensure they are 

using the most recent edition. 

§ 24.303 RELATED NONRESIDENTIAL 

ELIGIBLE EXPENSES. 

The following expenses, in addition to those 

provided by §24.301 for moving personal 

property, shall be provided if the Agency 

determines that they are actual, reasonable and 

necessary: 

(a) Connection to available nearby utilities from 

the right-of-way to improvements at the 

replacement site. 

(b) Professional services performed prior to the 

purchase or lease of a replacement site to 

determine its suitability for the displaced person's 

business operation including but not limited to, 

soil testing, feasibility and marketing studies 

(excluding any fees or commissions directly 

related to the purchase or lease of such site). At 

the discretion of the Agency a reasonable preapproved hourly rate may be established. (See 

appendix A, §24.303(b).) 

(c) Impact fees or one time assessments for 

anticipated heavy utility usage, as determined 

necessary by the Agency. 

§ 24.304 REESTABLISHMENT 

EXPENSES—NONRESIDENTIAL 

MOVES. 

In addition to the payments available under 

§§24.301 and 24.303 of this subpart, a small 

business, as defined in §24.2(a)(24), farm or 

nonprofit organization is entitled to receive a 

payment, not to exceed $10,000, for expenses 

actually incurred in relocating and reestablishing 

such small business, farm or nonprofit 

organization at a replacement site. 

(a) Eligible expenses. Reestablishment expenses 

must be reasonable and necessary, as determined 

by the Agency. They include, but are not limited 

to, the following: 

(1) Repairs or improvements to the replacement 

real property as required by Federal, State or 

local law, code or ordinance. 

(2) Modifications to the replacement property to 

accommodate the business operation or make 

replacement structures suitable for conducting the 

business. 

(3) Construction and installation costs for 

exterior signing to advertise the business. 

(4) Redecoration or replacement of soiled or 

worn surfaces at the replacement site, such as 

paint, paneling, or carpeting. 

(5) Advertisement of replacement location. 

(6) Estimated increased costs of operation during 

the first 2 years at the replacement site for such 

items as: 

(i) Lease or rental charges; 

(ii) Personal or real property taxes; 

(iii) Insurance premiums; and 

(iv) Utility charges, excluding impact fees. 

(7) Other items that the Agency considers 

essential to the reestablishment of the business. 

(b) Ineligible expenses. The following is a 

nonexclusive listing of reestablishment 

expenditures not considered to be reasonable, 

necessary, or otherwise eligible: 
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(1) Purchase of capital assets, such as, office 

furniture, filing cabinets, machinery, or trade 

fixtures. 

(2) Purchase of manufacturing materials, 

production supplies, product inventory, or other 

items used in the normal course of the business 

operation. 

(3) Interest on money borrowed to make the 

move or purchase the replacement property. 

(4) Payment to a part-time business in the home 

which does not contribute materially (defined at 

§24.2(a)(7)) to the household income. 

§ 24.305 FIXED PAYMENT FOR 

MOVING EXPENSES—

NONRESIDENTIAL MOVES. 

(a) Business. A displaced business may be 

eligible to choose a fixed payment in lieu of the 

payments for actual moving and related expenses, 

and actual reasonable reestablishment expenses 

provided by §§24.301, 24.303 and 24.304. Such 

fixed payment, except for payment to a nonprofit 

organization, shall equal the average annual net 

earnings of the business, as computed in 

accordance with paragraph (e) of this section, but 

not less than $1,000 nor more than $20,000. The 

displaced business is eligible for the payment if 

the Agency determines that: 

(1) The business owns or rents personal property 

which must be moved in connection with such 

displacement and for which an expense would be 

incurred in such move and, the business vacates 

or relocates from its displacement site; 

(2) The business cannot be relocated without a 

substantial loss of its existing patronage (clientele 

or net earnings). A business is assumed to meet 

this test unless the Agency determines that it will 

not suffer a substantial loss of its existing 

patronage; 

(3) The business is not part of a commercial 

enterprise having more than three other entities 

which are not being acquired by the Agency, and 

which are under the same ownership and engaged 

in the same or similar business activities. 

(4) The business is not operated at a displacement 

dwelling solely for the purpose of renting such 

dwelling to others; 

(5) The business is not operated at the 

displacement site solely for the purpose of 

renting the site to others; and 

(6) The business contributed materially to the 

income of the displaced person during the 2 

taxable years prior to displacement. (See 

§24.2(a)(7).) 

(b) Determining the number of businesses. In 

determining whether two or more displaced legal 

entities constitute a single business, which is 

entitled to only one fixed payment, all pertinent 

factors shall be considered, including the extent 

to which: 

(1) The same premises and equipment are shared; 

(2) Substantially identical or interrelated business 

functions are carried out and business and 

financial affairs are commingled; 

(3) The entities are held out to the public, and to 

those customarily dealing with them, as one 

business; and 

(4) The same person or closely related persons 

own, control, or manage the affairs of the entities. 

(c) Farm operation. A displaced farm operation 

(defined at §24.2(a)(12)) may choose a fixed 

payment, in lieu of the payments for actual 

moving and related expenses and actual 

reasonable reestablishment expenses, in an 

amount equal to its average annual net earnings 

as computed in accordance with paragraph (e) of 

this section, but not less than $1,000 nor more 

than $20,000. In the case of a partial acquisition 

of land, which was a farm operation before the 

acquisition, the fixed payment shall be made only 

if the Agency determines that: 

(1) The acquisition of part of the land caused the 

operator to be displaced from the farm operation 

on the remaining land; or 

(2) The partial acquisition caused a substantial 

change in the nature of the farm operation. 

(d) Nonprofit organization. A displaced nonprofit 

organization may choose a fixed payment of 

$1,000 to $20,000, in lieu of the payments for 

actual moving and related expenses and actual 

reasonable reestablishment expenses, if the 

Agency determines that it cannot be relocated 

without a substantial loss of existing patronage 

(membership or clientele). A nonprofit 

organization is assumed to meet this test, unless 
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122 11BThe Uniform Act –Common Rule – 49 CFR Part 24   

the Agency demonstrates otherwise. Any 

payment in excess of $1,000 must be supported 

with financial statements for the two 12-month 

periods prior to the acquisition. The amount to be 

used for the payment is the average of 2 years 

annual gross revenues less administrative 

expenses. (See appendix A, §24.305(d).) 

(e) Average annual net earnings of a business or 

farm operation. The average annual net earnings 

of a business or farm operation are one-half of its 

net earnings before Federal, State, and local 

income taxes during the 2 taxable years 

immediately prior to the taxable year in which it 

was displaced. If the business or farm was not in 

operation for the full 2 taxable years prior to 

displacement, net earnings shall be based on the 

actual period of operation at the displacement site 

during the 2 taxable years prior to displacement, 

projected to an annual rate. Average annual net 

earnings may be based upon a different period of 

time when the Agency determines it to be more 

equitable. Net earnings include any compensation 

obtained from the business or farm operation by 

its owner, the owner's spouse, and dependents. 

The displaced person shall furnish the Agency 

proof of net earnings through income tax returns, 

certified financial statements, or other reasonable 

evidence, which the Agency determines is 

satisfactory. (See appendix A, §24.305(e).) 

§ 24.306 DISCRETIONARY UTILITY 

RELOCATION PAYMENTS. 

(a) Whenever a program or project undertaken by 

a displacing Agency causes the relocation of a 

utility facility (see §24.2(a)(31)) and the 

relocation of the facility creates extraordinary 

expenses for its owner, the displacing Agency 

may, at its option, make a relocation payment to 

the owner for all or part of such expenses, if the 

following criteria are met: 

(1) The utility facility legally occupies State or 

local government property, or property over 

which the State or local government has an 

easement or right-of-way; 

(2) The utility facility's right of occupancy 

thereon is pursuant to State law or local 

ordinance specifically authorizing such use, or 

where such use and occupancy has been granted 

through a franchise, use and occupancy permit, or 

other similar agreement; 

(3) Relocation of the utility facility is required by 

and is incidental to the primary purpose of the 

project or program undertaken by the displacing 

Agency; 

(4) There is no Federal law, other than the 

Uniform Act, which clearly establishes a policy 

for the payment of utility moving costs that is 

applicable to the displacing Agency's program or 

project; and 

(5) State or local government reimbursement for 

utility moving costs or payment of such costs by 

the displacing Agency is in accordance with State 

law. 

(b) For the purposes of this section, the term 

extraordinary expenses means those expenses 

which, in the opinion of the displacing Agency, 

are not routine or predictable expenses relating to 

the utility's occupancy of rights-of-way, and are 

not ordinarily budgeted as operating expenses, 

unless the owner of the utility facility has 

explicitly and knowingly agreed to bear such 

expenses as a condition for use of the property, or 

has voluntarily agreed to be responsible for such 

expenses. 

(c) A relocation payment to a utility facility 

owner for moving costs under this section may 

not exceed the cost to functionally restore the 

service disrupted by the federally-assisted 

program or project, less any increase in value of 

the new facility and salvage value of the old 

facility. The displacing Agency and the utility 

facility owner shall reach prior agreement on the 

nature of the utility relocation work to be 

accomplished, the eligibility of the work for 

reimbursement, the responsibilities for financing 

and accomplishing the work, and the method of 

accumulating costs and making payment. ( See 

appendix A, §24.306.) 

SUBPART E—REPLACEMENT 

HOUSING PAYMENTS 

§ 24.401 REPLACEMENT HOUSING 

PAYMENT FOR 180-DAY 

HOMEOWNER-OCCUPANTS. 

(a) Eligibility. A displaced person is eligible for 

the replacement housing payment for a 180-day 

homeowner-occupant if the person: 

(1) Has actually owned and occupied the 

displacement dwelling for not less than 180 days 
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 11BThe Uniform Act –Common Rule – 49 CFR Part 24  123 

immediately prior to the initiation of 

negotiations; and 

(2) Purchases and occupies a decent, safe, and 

sanitary replacement dwelling within one year 

after the later of the following dates (except that 

the Agency may extend such one year period for 

good cause): 

(i) The date the displaced person receives final 

payment for the displacement dwelling or, in the 

case of condemnation, the date the full amount of 

the estimate of just compensation is deposited in 

the court; or 

(ii) The date the displacing Agency's obligation 

under §24.204 is met. 

(b) Amount of payment. The replacement housing 

payment for an eligible 180-day homeowneroccupant may not exceed $22,500. (See also 

§24.404.) The payment under this subpart is 

limited to the amount necessary to relocate to a 

comparable replacement dwelling within one 

year from the date the displaced homeowneroccupant is paid for the displacement dwelling, 

or the date a comparable replacement dwelling is 

made available to such person, whichever is later. 

The payment shall be the sum of: 

(1) The amount by which the cost of a 

replacement dwelling exceeds the acquisition 

cost of the displacement dwelling, as determined 

in accordance with paragraph (c) of this section; 

(2) The increased interest costs and other debt 

service costs which are incurred in connection 

with the mortgage(s) on the replacement 

dwelling, as determined in accordance with 

paragraph (d) of this section; and 

(3) The reasonable expenses incidental to the 

purchase of the replacement dwelling, as 

determined in accordance with paragraph (e) of 

this section. 

(c) Price differential 

(1) Basic computation. The price differential to 

be paid under paragraph (b)(1) of this section is 

the amount which must be added to the 

acquisition cost of the displacement dwelling and 

site ( see §24.2(a)(11)) to provide a total amount 

equal to the lesser of: 

(i) The reasonable cost of a comparable 

replacement dwelling as determined in 

accordance with §24.403(a); or 

(ii) The purchase price of the decent, safe, and 

sanitary replacement dwelling actually purchased 

and occupied by the displaced person. 

(2) Owner retention of displacement dwelling. If 

the owner retains ownership of his or her 

dwelling, moves it from the displacement site, 

and reoccupies it on a replacement site, the 

purchase price of the replacement dwelling shall 

be the sum of: 

(i) The cost of moving and restoring the dwelling 

to a condition comparable to that prior to the 

move; 

(ii) The cost of making the unit a decent, safe, 

and sanitary replacement dwelling (defined at 

§24.2(a)(8)); and 

(iii) The current fair market value for residential 

use of the replacement dwelling site ( see 

appendix A, §24.401(c)(2)(iii)), unless the 

claimant rented the displacement site and there is 

a reasonable opportunity for the claimant to rent 

a suitable replacement site; and 

(iv) The retention value of the dwelling, if such 

retention value is reflected in the “acquisition 

cost” used when computing the replacement 

housing payment. 

(d) Increased mortgage interest costs. The 

displacing Agency shall determine the factors to 

be used in computing the amount to be paid to a 

displaced person under paragraph (b)(2) of this 

section. The payment for increased mortgage 

interest cost shall be the amount which will 

reduce the mortgage balance on a new mortgage 

to an amount which could be amortized with the 

same monthly payment for principal and interest 

as that for the mortgage(s) on the displacement 

dwelling. 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. Paragraphs (d)(1) 

through (d)(5) of this section shall apply to the 

computation of the increased mortgage interest 

costs payment, which payment shall be 

contingent upon a mortgage being placed on the 

replacement dwelling. 

(1) The payment shall be based on the unpaid 

mortgage balance(s) on the displacement 

dwelling; however, in the event the displaced 

person obtains a smaller mortgage than the 
2009 Real Estate Acquisition Guide For Local Public Agencies 

124 11BThe Uniform Act –Common Rule – 49 CFR Part 24   

mortgage balance(s) computed in the buydown 

determination, the payment will be prorated and 

reduced accordingly. (See appendix A, 

§24.401(d).) In the case of a home equity loan the 

unpaid balance shall be that balance which 

existed 180 days prior to the initiation of 

negotiations or the balance on the date of 

acquisition, whichever is less. 

(2) The payment shall be based on the remaining 

term of the mortgage(s) on the displacement 

dwelling or the term of the new mortgage, 

whichever is shorter. 

(3) The interest rate on the new mortgage used in 

determining the amount of the payment shall not 

exceed the prevailing fixed interest rate for 

conventional mortgages currently charged by 

mortgage lending institutions in the area in which 

the replacement dwelling is located. 

(4) Purchaser's points and loan origination or 

assumption fees, but not seller's points, shall be 

paid to the extent: 

(i) They are not paid as incidental expenses; 

(ii) They do not exceed rates normal to similar 

real estate transactions in the area; 

(iii) The Agency determines them to be 

necessary; and 

(iv) The computation of such points and fees 

shall be based on the unpaid mortgage balance on 

the displacement dwelling, less the amount 

determined for the reduction of the mortgage 

balance under this section. 

(5) The displaced person shall be advised of the 

approximate amount of this payment and the 

conditions that must be met to receive the 

payment as soon as the facts relative to the 

person's current mortgage(s) are known and the 

payment shall be made available at or near the 

time of closing on the replacement dwelling in 

order to reduce the new mortgage as intended. 

(e) Incidental expenses. The incidental expenses 

to be paid under paragraph (b)(3) of this section 

or §24.402(c)(1) are those necessary and 

reasonable costs actually incurred by the 

displaced person incident to the purchase of a 

replacement dwelling, and customarily paid by 

the buyer, including: 

(1) Legal, closing, and related costs, including 

those for title search, preparing conveyance 

instruments, notary fees, preparing surveys and 

plats, and recording fees. 

(2) Lender, FHA, or VA application and 

appraisal fees. 

(3) Loan origination or assumption fees that do 

not represent prepaid interest. 

(4) Professional home inspection, certification of 

structural soundness, and termite inspection. 

(5) Credit report. 

(6) Owner's and mortgagee's evidence of title, 

e.g. , title insurance, not to exceed the costs for a 

comparable replacement dwelling. 

(7) Escrow agent's fee. 

(8) State revenue or documentary stamps, sales or 

transfer taxes (not to exceed the costs for a 

comparable replacement dwelling). 

(9) Such other costs as the Agency determine to 

be incidental to the purchase. 

(f) Rental assistance payment for 180-day 

homeowner. A 180-day homeowner-occupant, 

who could be eligible for a replacement housing 

payment under paragraph (a) of this section but 

elects to rent a replacement dwelling, is eligible 

for a rental assistance payment. The amount of 

the rental assistance payment is based on a 

determination of market rent for the acquired 

dwelling compared to a comparable rental 

dwelling available on the market. The difference, 

if any, is computed in accordance with 

§24.402(b)(1), except that the limit of $5,250 

does not apply, and disbursed in accordance with 

§24.402(b)(3). Under no circumstances would the 

rental assistance payment exceed the amount that 

could have been received under §24.401(b)(1) 

had the 180-day homeowner elected to purchase 

and occupy a comparable replacement dwelling. 

[70 FR 611, Jan. 4, 2005, as amended at 70 FR 

22611, May 2, 2005] 

§ 24.402 REPLACEMENT HOUSING 

PAYMENT FOR 90-DAY OCCUPANTS. 

(a) Eligibility. A tenant or owner-occupant 

displaced from a dwelling is entitled to a 

payment not to exceed $5,250 for rental 

assistance, as computed in accordance with 

paragraph (b) of this section, or downpayment 

assistance, as computed in accordance with 
Real Estate Acquisition Guide For Local Public Agencies  2009

 11BThe Uniform Act –Common Rule – 49 CFR Part 24  125 

paragraph (c) of this section, if such displaced 

person: 

(1) Has actually and lawfully occupied the 

displacement dwelling for at least 90 days 

immediately prior to the initiation of 

negotiations; and 

(2) Has rented, or purchased, and occupied a 

decent, safe, and sanitary replacement dwelling 

within 1 year (unless the Agency extends this 

period for good cause) after: 

(i) For a tenant, the date he or she moves from 

the displacement dwelling; or 

(ii) For an owner-occupant, the later of: 

(A) The date he or she receives final payment for 

the displacement dwelling, or in the case of 

condemnation, the date the full amount of the 

estimate of just compensation is deposited with 

the court; or 

(B) The date he or she moves from the 

displacement dwelling. 

(b) Rental assistance payment 

(1) Amount of payment. An eligible displaced 

person who rents a replacement dwelling is 

entitled to a payment not to exceed $5,250 for 

rental assistance. (See §24.404.) Such payment 

shall be 42 times the amount obtained by 

subtracting the base monthly rental for the 

displacement dwelling from the lesser of: 

(i) The monthly rent and estimated average 

monthly cost of utilities for a comparable 

replacement dwelling; or 

(ii) The monthly rent and estimated average 

monthly cost of utilities for the decent, safe, and 

sanitary replacement dwelling actually occupied 

by the displaced person. 

(2) Base monthly rental for displacement 

dwelling. The base monthly rental for the 

displacement dwelling is the lesser of: 

(i) The average monthly cost for rent and utilities 

at the displacement dwelling for a reasonable 

period prior to displacement, as determined by 

the Agency (for an owner-occupant, use the fair 

market rent for the displacement dwelling. For a 

tenant who paid little or no rent for the 

displacement dwelling, use the fair market rent, 

unless its use would result in a hardship because 

of the person's income or other circumstances); 

(ii) Thirty (30) percent of the displaced person's 

average monthly gross household income if the 

amount is classified as “low income” by the U.S. 

Department of Housing and Urban 

Development's Annual Survey of Income Limits 

for the Public Housing and Section 8 Programs4

 . 

The base monthly rental shall be established 

solely on the criteria in paragraph (b)(2)(i) of this 

section for persons with income exceeding the 

survey's “low income” limits, for persons 

refusing to provide appropriate evidence of 

income, and for persons who are dependents. A 

full time student or resident of an institution may 

be assumed to be a dependent, unless the person 

demonstrates otherwise; or, 

4

 The U.S. Department of Housing and Urban 

Development's Public Housing and Section 8 

Program Income Limits are updated annually and 

are available on FHWA's Web site at 

http://www.fhwa.dot.gov/realestate/ua/ualic.htm. 

(iii) The total of the amounts designated for 

shelter and utilities if the displaced person is 

receiving a welfare assistance payment from a 

program that designates the amounts for shelter 

and utilities. 

(3) Manner of disbursement. A rental assistance 

payment may, at the Agency's discretion, be 

disbursed in either a lump sum or in installments. 

However, except as limited by §24.403(f), the 

full amount vests immediately, whether or not 

there is any later change in the person's income or 

rent, or in the condition or location of the 

person's housing. 

(c) Downpayment assistance payment 

(1) Amount of payment. An eligible displaced 

person who purchases a replacement dwelling is 

entitled to a downpayment assistance payment in 

the amount the person would receive under 

paragraph (b) of this section if the person rented a 

comparable replacement dwelling. At the 

Agency's discretion, a downpayment assistance 

payment that is less than $5,250 may be 

increased to any amount not to exceed $5,250. 

However, the payment to a displaced homeowner 

shall not exceed the amount the owner would 

receive under §24.401(b) if he or she met the 

180-day occupancy requirement. If the Agency 

elects to provide the maximum payment of 

$5,250 as a downpayment, the Agency shall 

apply this discretion in a uniform and consistent 

manner, so that eligible displaced persons in like 
2009 Real Estate Acquisition Guide For Local Public Agencies 

126 11BThe Uniform Act –Common Rule – 49 CFR Part 24   

circumstances are treated equally. A displaced 

person eligible to receive a payment as a 180-day 

owner-occupant under §24.401(a) is not eligible 

for this payment. (See appendix A, §24.402(c).) 

(2) Application of payment. The full amount of 

the replacement housing payment for 

downpayment assistance must be applied to the 

purchase price of the replacement dwelling and 

related incidental expenses.

§ 24.403 ADDITIONAL RULES 

GOVERNING REPLACEMENT 

HOUSING PAYMENTS. 

(a) Determining cost of comparable replacement 

dwelling. The upper limit of a replacement 

housing payment shall be based on the cost of a 

comparable replacement dwelling (defined at 

§24.2(a)(6)). 

(1) If available, at least three comparable 

replacement dwellings shall be examined and the 

payment computed on the basis of the dwelling 

most nearly representative of, and equal to, or 

better than, the displacement dwelling. 

(2) If the site of the comparable replacement 

dwelling lacks a major exterior attribute of the 

displacement dwelling site, ( e.g. , the site is 

significantly smaller or does not contain a 

swimming pool), the value of such attribute shall 

be subtracted from the acquisition cost of the 

displacement dwelling for purposes of computing 

the payment. 

(3) If the acquisition of a portion of a typical 

residential property causes the displacement of 

the owner 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. 

(4) To the extent feasible, comparable 

replacement dwellings shall be selected from the 

neighborhood in which the displacement 

dwelling was located or, if that is not possible, in 

nearby or similar neighborhoods where housing 

costs are generally the same or higher. 

(5) Multiple occupants of one displacement 

dwelling. If two or more occupants of the 

displacement dwelling move to separate 

replacement dwellings, each occupant is entitled 

to a reasonable prorated share, as determined by 

the Agency, of any relocation payments that 

would have been made if the occupants moved 

together to a comparable replacement dwelling. 

However, if the Agency determines that two or 

more occupants maintained separate households 

within the same dwelling, such occupants have 

separate entitlements to relocation payments. 

(6) Deductions from relocation payments. An 

Agency shall deduct the amount of any advance 

relocation payment from the relocation 

payment(s) to which a displaced person is 

otherwise entitled. The Agency shall not 

withhold any part of a relocation payment to a 

displaced person to satisfy an obligation to any 

other creditor. 

(7) Mixed-use and multifamily properties. If the 

displacement dwelling was part of a property that 

contained another dwelling unit and/or space 

used for nonresidential purposes, and/or is 

located on a lot larger than typical for residential 

purposes, only that portion of the acquisition 

payment which is actually attributable to the 

displacement dwelling shall be considered the 

acquisition cost when computing the replacement 

housing payment. 

(b) Inspection of replacement dwelling. Before 

making a replacement housing payment or 

releasing the initial payment from escrow, the 

Agency or its designated representative shall 

inspect the replacement dwelling and determine 

whether it is a decent, safe, and sanitary dwelling 

as defined at §24.2(a)(8). 

(c) Purchase of replacement dwelling. A 

displaced person is considered to have met the 

requirement to purchase a replacement dwelling, 

if the person: 

(1) Purchases a dwelling; 

(2) Purchases and rehabilitates a substandard 

dwelling; 

(3) Relocates a dwelling which he or she owns or 

purchases; 

(4) Constructs a dwelling on a site he or she owns 

or purchases; 

(5) Contracts for the purchase or construction of 

a dwelling on a site provided by a builder or on a 

site the person owns or purchases; or 
Real Estate Acquisition Guide For Local Public Agencies  2009

 11BThe Uniform Act –Common Rule – 49 CFR Part 24  127 

(6) Currently owns a previously purchased 

dwelling and site, valuation of which shall be on 

the basis of current fair market value. 

(d) Occupancy requirements for displacement or 

replacement dwelling. No person shall be denied 

eligibility for a replacement housing payment 

solely because the person is unable to meet the 

occupancy requirements set forth in these 

regulations for a reason beyond his or her control, 

including: 

(1) A disaster, an emergency, or an imminent 

threat to the public health or welfare, as 

determined by the President, the Federal Agency 

funding the project, or the displacing Agency; or 

(2) Another reason, such as a delay in the 

construction of the replacement dwelling, 

military duty, or hospital stay, as determined by 

the Agency. 

(e) Conversion of payment. A displaced person 

who initially rents a replacement dwelling and 

receives a rental assistance payment under 

§24.402(b) is eligible to receive a payment under 

§24.401 or §24.402(c) if he or she meets the 

eligibility criteria for such payments, including 

purchase and occupancy within the prescribed 1-

year period. Any portion of the rental assistance 

payment that has been disbursed shall be 

deducted from the payment computed under 

§24.401 or §24.402(c). 

(f) Payment after death. A replacement housing 

payment is personal to the displaced person and 

upon his or her death the undisbursed portion of 

any such payment shall not be paid to the heirs or 

assigns, except that: 

(1) The amount attributable to the displaced 

person's period of actual occupancy of the 

replacement housing shall be paid. 

(2) Any remaining payment shall be disbursed to 

the remaining family members of the displaced 

household in any case in which a member of a 

displaced family dies. 

(3) Any portion of a replacement housing 

payment necessary to satisfy the legal obligation 

of an estate in connection with the selection of a 

replacement dwelling by or on behalf of a 

deceased person shall be disbursed to the estate. 

(g) Insurance proceeds. To the extent necessary 

to avoid duplicate compensation, the amount of 

any insurance proceeds received by a person in 

connection with a loss to the displacement 

dwelling due to a catastrophic occurrence (fire, 

flood, etc.) shall be included in the acquisition 

cost of the displacement dwelling when 

computing the price differential. ( See §24.3.) 

[70 FR 611, Jan. 4, 2005, as amended at 70 FR 

22611, May 2, 2005]

§ 24.404 REPLACEMENT HOUSING 

OF LAST RESORT. 

(a) Determination to provide replacement 

housing of last resort. Whenever a program or 

project cannot proceed on a timely basis because 

comparable replacement dwellings are not 

available within the monetary limits for owners 

or tenants, as specified in §24.401 or §24.402, as 

appropriate, the Agency shall provide additional 

or alternative assistance under the provisions of 

this subpart. Any decision to provide last resort 

housing assistance must be adequately justified 

either: 

(1) On a case-by-case basis, for good cause, 

which means that appropriate consideration has 

been given to: 

(i) The availability of comparable replacement 

housing in the program or project area; 

(ii) The resources available to provide 

comparable replacement housing; and 

(iii) The individual circumstances of the 

displaced person, or 

(2) By a determination that: 

(i) There is little, if any, comparable replacement 

housing available to displaced persons within an 

entire program or project area; and, therefore, last 

resort housing assistance is necessary for the area 

as a whole; 

(ii) A program or project cannot be advanced to 

completion in a timely manner without last resort 

housing assistance; and 

(iii) The method selected for providing last resort 

housing assistance is cost effective, considering 

all elements, which contribute to total program or 

project costs. 

(b) Basic rights of persons to be displaced. 

Notwithstanding any provision of this subpart, no 

person shall be required to move from a 

displacement dwelling unless comparable 

replacement housing is available to such person. 
2009 Real Estate Acquisition Guide For Local Public Agencies 

128 11BThe Uniform Act –Common Rule – 49 CFR Part 24   

No person may be deprived of any rights the 

person may have under the Uniform Act or this 

part. The Agency shall not require any displaced 

person to accept a dwelling provided by the 

Agency under these procedures (unless the 

Agency and the displaced person have entered 

into a contract to do so) in lieu of any acquisition 

payment or any relocation payment for which the 

person may otherwise be eligible. 

(c) Methods of providing comparable 

replacement housing. Agencies shall have broad 

latitude in implementing this subpart, but 

implementation shall be for reasonable cost, on a 

case-by-case basis unless an exception to caseby-case analysis is justified for an entire project. 

(1) The methods of providing replacement 

housing of last resort include, but are not limited 

to: 

(i) A replacement housing payment in excess of 

the limits set forth in §24.401 or §24.402. A 

replacement housing payment under this section 

may be provided in installments or in a lump sum 

at the Agency's discretion. 

(ii) Rehabilitation of and/or additions to an 

existing replacement dwelling. 

(iii) The construction of a new replacement 

dwelling. 

(iv) The provision of a direct loan, which requires 

regular amortization or deferred repayment. The 

loan may be unsecured or secured by the real 

property. The loan may bear interest or be 

interest-free. 

(v) The relocation and, if necessary, 

rehabilitation of a dwelling. 

(vi) The purchase of land and/or a replacement 

dwelling by the displacing Agency and 

subsequent sale or lease to, or exchange with a 

displaced person. 

(vii) The removal of barriers for persons with 

disabilities. 

(2) Under special circumstances, consistent with 

the definition of a comparable replacement 

dwelling, modified methods of providing 

replacement housing of last resort permit 

consideration of replacement housing based on 

space and physical characteristics different from 

those in the displacement dwelling ( see appendix 

A, §24.404(c)), including upgraded, but smaller 

replacement housing that is decent, safe, and 

sanitary and adequate to accommodate 

individuals or families displaced from marginal 

or substandard housing with probable functional 

obsolescence. In no event, however, shall a 

displaced person be required to move into a 

dwelling that is not functionally equivalent in 

accordance with §24.2(a)(6)(ii) of this part. 

(3) The Agency shall provide assistance under 

this subpart to a displaced person who is not 

eligible to receive a replacement housing 

payment under §§24.401 and 24.402 because of 

failure to meet the length of occupancy 

requirement when comparable replacement rental 

housing is not available at rental rates within the 

displaced person's financial means. ( See 

§24.2(a)(6)(viii)(C).) Such assistance shall cover 

a period of 42 months. 

SUBPART F—MOBILE HOMES 

§ 24.501 APPLICABILITY. 

(a) General. This subpart describes the 

requirements governing the provision of 

replacement housing payments to a person 

displaced from a mobile home and/or mobile 

home site who meets the basic eligibility 

requirements of this part. Except as modified by 

this subpart, such a displaced person is entitled to 

a moving expense payment in accordance with 

subpart D of this part and a replacement housing 

payment in accordance with subpart E of this part 

to the same extent and subject to the same 

requirements as persons displaced from 

conventional dwellings. Moving cost payments to 

persons occupying mobile homes are covered in 

§24.301(g)(1) through (g)(10). 

(b) Partial acquisition of mobile home park. The 

acquisition of a portion of a mobile home park 

property may leave a remaining part of the 

property that is not adequate to continue the 

operation of the park. If the Agency determines 

that a mobile home located in the remaining part 

of the property must be moved as a direct result 

of the project, the occupant of the mobile home 

shall be considered to be a displaced person who 

is entitled to relocation payments and other 

assistance under this part. 
Real Estate Acquisition Guide For Local Public Agencies  2009

 11BThe Uniform Act –Common Rule – 49 CFR Part 24  129 

§ 24.502 REPLACEMENT HOUSING 

PAYMENT FOR 180-DAY MOBILE 

HOMEOWNER DISPLACED FROM A 

MOBILE HOME, AND/OR FROM THE 

ACQUIRED MOBILE HOME SITE. 

(a) Eligibility. An owner-occupant displaced 

from a mobile home or site is entitled to a 

replacement housing payment, not to exceed 

$22,500, under §24.401 if: 

(1) The person occupied the mobile home on the 

displacement site for at least 180 days 

immediately before: 

(i) The initiation of negotiations to acquire the 

mobile home, if the person owned the mobile 

home and the mobile home is real property; 

(ii) The initiation of negotiations to acquire the 

mobile home site if the mobile home is personal 

property, but the person owns the mobile home 

site; or 

(iii) The date of the Agency's written notification 

to the owner-occupant that the owner is 

determined to be displaced from the mobile home 

as described in paragraphs (a)(3)(i) through (iv) 

of this section. 

(2) The person meets the other basic eligibility 

requirements at §24.401(a)(2); and 

(3) The Agency acquires the mobile home as real 

estate, or acquires the mobile home site from the 

displaced owner, or the mobile home is personal 

property but the owner is displaced from the 

mobile home because the Agency determines that 

the mobile home: 

(i) Is not, and cannot economically be made 

decent, safe, and sanitary; 

(ii) Cannot be relocated without substantial 

damage or unreasonable cost; 

(iii) Cannot be relocated because there is no 

available comparable replacement site; or 

(iv) Cannot be relocated because it does not meet 

mobile home park entrance requirements. 

(b) Replacement housing payment computation 

for a 180-day owner that is displaced from a 

mobile home. The replacement housing payment 

for an eligible displaced 180-day owner is 

computed as described at §24.401(b) 

incorporating the following, as applicable: 

(1) If the Agency acquires the mobile home as 

real estate and/or acquires the owned site, the 

acquisition cost used to compute the price 

differential payment is the actual amount paid to 

the owner as just compensation for the 

acquisition of the mobile home, and/or site, if 

owned by the displaced mobile homeowner. 

(2) If the Agency does not purchase the mobile 

home as real estate but the owner is determined 

to be displaced from the mobile home and 

eligible for a replacement housing payment based 

on paragraph (a)(1)(iii) of this section, the 

eligible price differential payment for the 

purchase of a comparable replacement mobile 

home, is the lesser of the displaced mobile 

homeowner's net cost to purchase a replacement 

mobile home ( i.e. , purchase price of the 

replacement mobile home less trade-in or sale 

proceeds of the displacement mobile home); or, 

the cost of the Agency's selected comparable 

mobile home less the Agency's estimate of the 

salvage or trade-in value for the mobile home 

from which the person is displaced. 

(3) If a comparable replacement mobile home site 

is not available, the price differential payment 

shall be computed on the basis of the reasonable 

cost of a conventional comparable replacement 

dwelling. 

(c) Rental assistance payment for a 180-day 

owner-occupant that is displaced from a leased 

or rented mobile home site. If the displacement 

mobile home site is leased or rented, a displaced 

180-day owner-occupant is entitled to a rental 

assistance payment computed as described in 

§24.402(b). This rental assistance payment may 

be used to lease a replacement site; may be 

applied to the purchase price of a replacement 

site; or may be applied, with any replacement 

housing payment attributable to the mobile home, 

to the purchase of a replacement mobile home or 

conventional decent, safe and sanitary dwelling. 

(d) Owner-occupant not displaced from the 

mobile home. If the Agency determines that a 

mobile home is personal property and may be 

relocated to a comparable replacement site, but 

the owner-occupant elects not to do so, the owner 

is not entitled to a replacement housing payment 

for the purchase of a replacement mobile home. 

However, the owner is eligible for moving costs 

described at §24.301 and any replacement 

housing payment for the purchase or rental of a 
2009 Real Estate Acquisition Guide For Local Public Agencies 

130 11BThe Uniform Act –Common Rule – 49 CFR Part 24   

comparable site as described in this section or 

§24.503 as applicable. 

§ 24.503 REPLACEMENT HOUSING 

PAYMENT FOR 90-DAY MOBILE 

HOME OCCUPANTS. 

A displaced tenant or owner-occupant of a 

mobile home and/or site is eligible for a 

replacement housing payment, not to exceed 

$5,250, under §24.402 if: 

(a) The person actually occupied the 

displacement mobile home on the displacement 

site for at least 90 days immediately prior to the 

initiation of negotiations; 

(b) The person meets the other basic eligibility 

requirements at §24.402(a); and 

(c) The Agency acquires the mobile home and/or 

mobile home site, or the mobile home is not 

acquired by the Agency but the Agency 

determines that the occupant is displaced from 

the mobile home because of one of the 

circumstances described at §24.502(a)(3). 

SUBPART G—CERTIFICATION 

§ 24.601 PURPOSE. 

This subpart permits a State Agency to fulfill its 

responsibilities under the Uniform Act by 

certifying that it shall operate in accordance with 

State laws and regulations which shall 

accomplish the purpose and effect of the Uniform 

Act, in lieu of providing the assurances required 

by §24.4 of this part. 

§ 24.602 CERTIFICATION 

APPLICATION. 

An Agency wishing to proceed on the basis of a 

certification may request an application for 

certification from the Lead Agency Director, 

Office of Real Estate Services, HEPR–1, Federal 

Highway Administration, 1200 New Jersey 

Avenue, SE., Washington, DC 20590. The 

completed application for certification must be 

approved by the governor of the State, or the 

governor's designee, and must be coordinated 

with the Federal funding Agency, in accordance 

with application procedures. 

[70 FR 611, Jan. 4, 2005, as amended at 73 FR 

33329, June 12, 2008] 

§ 24.603 MONITORING AND 

CORRECTIVE ACTION. 

(a) The Federal Lead Agency shall, in 

coordination with other Federal Agencies, 

monitor from time to time State Agency 

implementation of programs or projects 

conducted under the certification process and the 

State Agency shall make available any 

information required for this purpose. 

(b) The Lead Agency may require periodic 

information or data from affected Federal or State 

Agencies. 

(c) A Federal Agency may, after consultation 

with the Lead Agency, and notice to and 

consultation with the governor, or his or her 

designee, rescind any previous approval provided 

under this subpart if the certifying State Agency 

fails to comply with its certification or with 

applicable State law and regulations. The Federal 

Agency shall initiate consultation with the Lead 

Agency at least 30 days prior to any decision to 

rescind approval of a certification under this 

subpart. The Lead Agency will also inform other 

Federal Agencies, which have accepted a 

certification under this subpart from the same 

State Agency, and will take whatever other action 

that may be appropriate. 

(d) Section 103(b)(2) of the Uniform Act, as 

amended, requires that the head of the Lead 

Agency report biennially to the Congress on State 

Agency implementation of section 103. To 

enable adequate preparation of the prescribed 

biennial report, the Lead Agency may require 

periodic information or data from affected 

Federal or State Agencies.
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 11BThe Uniform Act –Common Rule – 49 CFR Part 24  131 

APPENDIX A TO PART 24—

ADDITIONAL INFORMATION 

This appendix provides additional information to 

explain the intent of certain provisions of this 

part. 

Subpart A—General

Section 24.2 Definitions and Acronyms 

Section 24.2(a)(6) Definition of comparable 

replacement dwelling. The requirement in 

§24.2(a)(6)(ii) that a comparable replacement 

dwelling be “functionally equivalent” to the 

displacement dwelling means that it must 

perform the same function, and provide the same 

utility. While it need not possess every feature of 

the displacement dwelling, the principal features 

must be present. 

For example, if the displacement dwelling 

contains a pantry and a similar dwelling is not 

available, a replacement dwelling with ample 

kitchen cupboards may be acceptable. Insulated 

and heated space in a garage might prove an 

adequate substitute for basement workshop 

space. A dining area may substitute for a separate 

dining room. Under some circumstances, attic 

space could substitute for basement space for 

storage purposes, and vice versa. 

Only in unusual circumstances may a comparable 

replacement dwelling contain fewer rooms or, 

consequentially, less living space than the 

displacement dwelling. Such may be the case 

when a decent, safe, and sanitary replacement 

dwelling (which by definition is “adequate to 

accommodate” the displaced person) may be 

found to be “functionally equivalent” to a larger 

but very run-down substandard displacement 

dwelling. Another example is when a displaced 

person accepts an offer of government housing 

assistance and the applicable requirements of 

such housing assistance program require that the 

displaced person occupy a dwelling that has 

fewer rooms or less living space than the 

displacement dwelling. 

Section 24.2(a)(6)(vii). The definition of 

comparable replacement dwelling requires that a 

comparable replacement dwelling for a person 

who is not receiving assistance under any 

government housing program before 

displacement must be currently available on the 

private market without any subsidy under a 

government housing program. 

Section 24.2(a)(6)(ix). A public housing unit may 

qualify as a comparable replacement dwelling 

only for a person displaced from a public housing 

unit. A privately owned dwelling with a housing 

program subsidy tied to the unit may qualify as a 

comparable replacement dwelling only for a 

person displaced from a similarly subsidized unit 

or public housing. 

A housing program subsidy that is paid to a 

person (not tied to the building), such as a HUD 

Section 8 Housing Voucher Program, may be 

reflected in an offer of a comparable replacement 

dwelling to a person receiving a similar subsidy 

or occupying a privately owned subsidized unit 

or public housing unit before displacement. 

However, nothing in this part prohibits an 

Agency from offering, or precludes a person 

from accepting, assistance under a government 

housing program, even if the person did not 

receive similar assistance before displacement. 

However, the Agency is obligated to inform the 

person of his or her options under this part. (If a 

person accepts assistance under a government 

housing assistance program, the rules of that 

program governing the size of the dwelling 

apply, and the rental assistance payment under 

§24.402 would be computed on the basis of the 

person's actual out-of-pocket cost for the 

replacement housing.) 

Section 24.2(a)(8)(ii) Decent, Safe and Sanitary. 

Many local housing and occupancy codes require 

the abatement of deteriorating paint, including 

lead-based paint and lead-based paint dust, in 

protecting the public health and safety. Where 

such standards exist, they must be honored. Even 

where local law does not mandate adherence to 

such standards, it is strongly recommended that 

they be considered as a matter of public policy. 

Section 24.2(a)(8)(vii) Persons with a disability. 

Reasonable accommodation of a displaced person 

with a disability at the replacement dwelling 

means the Agency is required to address persons 

with a physical impairment that substantially 

limits one or more of the major life activities. In 

these situations, reasonable accommodation 

should include the following at a minimum: 

Doors of adequate width; ramps or other 

assistance devices to traverse stairs and access 
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132 11BThe Uniform Act –Common Rule – 49 CFR Part 24   

bathtubs, shower stalls, toilets and sinks; storage 

cabinets, vanities, sink and mirrors at appropriate 

heights. Kitchen accommodations will include 

sinks and storage cabinets built at appropriate 

heights for access. The Agency shall also 

consider other items that may be necessary, such 

as physical modification to a unit, based on the 

displaced person's needs. 

Section 24.2(a)(9)(ii)(D) Persons not displaced. 

Paragraph (a)(9)(ii)(D) of this section recognizes 

that there are circumstances where the 

acquisition, rehabilitation or demolition of real 

property takes place without the intent or 

necessity that an occupant of the property be 

permanently displaced. Because such occupants 

are not considered “displaced persons” under this 

part, great care must be exercised to ensure that 

they are treated fairly and equitably. For 

example, if the tenant-occupant of a dwelling will 

not be displaced, but is required to relocate 

temporarily in connection with the project, the 

temporarily occupied housing must be decent, 

safe, and sanitary and the tenant must be 

reimbursed for all reasonable out-of-pocket 

expenses incurred in connection with the 

temporary relocation. These expenses may 

include moving expenses and increased housing 

costs during the temporary relocation. Temporary 

relocation should not extend beyond one year 

before the person is returned to his or her 

previous unit or location. The Agency must 

contact any residential tenant who has been 

temporarily relocated for a period beyond one 

year and offer all permanent relocation 

assistance. This assistance would be in addition 

to any assistance the person has already received 

for temporary relocation, and may not be reduced 

by the amount of any temporary relocation 

assistance. 

Similarly, if a business will be shut-down for any 

length of time due to rehabilitation of a site, it 

may be temporarily relocated and reimbursed for 

all reasonable out of pocket expenses or must be 

determined to be displaced at the Agency's 

option. 

Any person who disagrees with the Agency's 

determination that he or she is not a displaced 

person under this part may file an appeal in 

accordance with 49 CFR part 24.10 of this 

regulation. 

Section 24.2(a)(11) Dwelling Site. This definition 

ensures that the computation of replacement 

housing payments are accurate and realistic (a) 

when the dwelling is located on a larger than 

normal site, (b) when mixed-use properties are 

acquired, (c) when more than one dwelling is 

located on the acquired property, or (d) when the 

replacement dwelling is retained by an owner and 

moved to another site. 

Section 24.2(a)(14) Household income 

(exclusions). Household income for purposes of 

this regulation does not include program benefits 

that are not considered income by Federal law 

such as food stamps and the Women Infants and 

Children (WIC) program. For a more detailed list 

of income exclusions see Federal Highway 

Administration, Office of Real Estate Services 

Web site: http://www.fhwa.dot.gov/realestate/. 

(FR 4644–N–16 page 20319 Updated.) If there is 

a question on whether or not to include income 

from a specific program contact the Federal 

Agency administering the program. 

Section 24(a)(15) Initiation of negotiations. This 

section provides a special definition for 

acquisition and displacements under Pub. L. 96–

510 or Superfund. The order of activities under 

Superfund may differ slightly in that temporary 

relocation may precede acquisition. Superfund is 

a program designed to clean up hazardous waste 

sites. When such a site is discovered, it may be 

necessary, in certain limited circumstances, to 

alert individual owners and tenants to potential 

health or safety threats and to offer to temporarily 

relocate them while additional information is 

gathered. If a decision is later made to 

permanently relocate such persons, those who 

had been temporarily relocated under Superfund 

authority would no longer be on site when a 

formal, written offer to acquire the property was 

made, and thus would lose their eligibility for a 

replacement housing payment. In order to prevent 

this unfair outcome, we have provided a 

definition of initiation of negotiation, which is 

based on the date the Federal Government offers 

to temporarily relocate an owner or tenant from 

the subject property. 

Section 24.2(a)(15)(iv) Initiation of negotiations 

(Tenants.) Tenants who occupy property that may 

be acquired amicably, without recourse to the use 

of the power of eminent domain, must be fully 

informed as to their eligibility for relocation 

assistance. This includes notifying such tenants 
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of their potential eligibility when negotiations are 

initiated, notifying them if they become fully 

eligible, and, in the event the purchase of the 

property will not occur, notifying them that they 

are no longer eligible for relocation benefits. If a 

tenant is not readily accessible, as the result of a 

disaster or emergency, the Agency must make a 

good faith effort to provide these notifications 

and document its efforts in writing. 

Section 24.2(a)(17) Mobile home. The following 

examples provide additional guidance on the 

types of mobile homes and manufactured housing 

that can be found acceptable as comparable 

replacement dwellings for persons displaced from 

mobile homes. A recreational vehicle that is 

capable of providing living accommodations may 

be considered a replacement dwelling if the 

following criteria are met: the recreational 

vehicle is purchased and occupied as the 

“primary” place of residence; it is located on a 

purchased or leased site and connected to or have 

available all necessary utilities for functioning as 

a housing unit on the date of the displacing 

Agency's inspection; and, the dwelling, as sited, 

meets all local, State, and Federal requirements 

for a decent, safe and sanitary dwelling. (The 

regulations of some local jurisdictions will not 

permit the consideration of these vehicles as 

decent, safe and sanitary dwellings. In those 

cases, the recreational vehicle will not qualify as 

a replacement dwelling.) 

For HUD programs, mobile home is defined as “a 

structure, transportable in one or more sections, 

which, in the traveling mode, is eight body feet or 

more in width or forty body feet or more in 

length, or, when erected on site, is three hundred 

or more square feet, and which is built on a 

permanent chassis and designed to be used as a 

dwelling with or without a permanent foundation 

when connected to the required utilities and 

includes the plumbing, heating, air-conditioning, 

and electrical systems contained therein; except 

that such terms shall include any structure which 

meets all the requirements of this paragraph 

except the size requirements and with respect to 

which the manufacturer voluntarily files a 

certification required by the Secretary of HUD 

and complies with the standards established 

under the National Manufactured Housing 

Construction and Safety Standards Act, provided 

by Congress in the original 1974 Manufactured 

Housing Act.” In 1979 the term “mobile home” 

was changed to “manufactured home.” For 

purposes of this regulation, the terms mobile 

home and manufactured home are synonymous. 

When assembled, manufactured homes built after 

1976 contain no less than 320 square feet. They 

may be single or multi-sectioned units when 

installed. Their designation as personalty or 

realty will be determined by State law. When 

determined to be realty, most are eligible for 

conventional mortgage financing. 

The 1976 HUD standards distinguish 

manufactured homes from factory-built “modular 

homes” as well as conventional or “stick-built” 

homes. Both of these types of housing are 

required to meet State and local construction 

codes. 

Section 24.3 No Duplication of Payments. This 

section prohibits an Agency from making a 

payment to a person under these regulations that 

would duplicate another payment the person 

receives under Federal, State, or local law. The 

Agency is not required to conduct an exhaustive 

search for such other payments; it is only 

required to avoid creating a duplication based on 

the Agency's knowledge at the time a payment is 

computed. 

Subpart B—Real Property Acquisition

Federal Agencies may find that, for Federal 

eminent domain purposes, the terms “fair market 

value” (as used throughout this subpart) and 

“market value,” which may be the more typical 

term in private transactions, may be synonymous. 

Section 24.101(a) Direct Federal program or 

project. All 49 CFR Part 24 Subpart B (real 

property acquisition) requirements apply to all 

direct acquisitions for Federal programs and 

projects by Federal Agencies, except for 

acquisitions undertaken by the Tennessee Valley 

Authority or the Rural Utilities Service. There are 

no exceptions for “voluntary transactions.” 

Section 24.101(b)(1)(i). The term “general 

geographic area” is used to clarify that the 

“geographic area” is not to be construed to be a 

small, limited area. 

Sections 24.101(b)(1)(iv) and (2)(ii). These 

sections provide that, for programs and projects 

receiving Federal financial assistance described 

in §§24.101(b)(1) and (2), Agencies are to inform 
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134 11BThe Uniform Act –Common Rule – 49 CFR Part 24   

the owner(s) in writing of the Agency's estimate 

of the fair market value for the property to be 

acquired. 

While this part does not require an appraisal for 

these transactions, Agencies may still decide that 

an appraisal is necessary to support their 

determination of the market value of these 

properties, and, in any event, Agencies must have 

some reasonable basis for their determination of 

market value. In addition, some of the concepts 

inherent in Federal Program appraisal practice 

are appropriate for these estimates. It would be 

appropriate for Agencies to adhere to project 

influence restrictions, as well as guard against 

discredited “public interest value” valuation 

concepts. 

After an Agency has established an amount it 

believes to be the market value of the property 

and has notified the owner of this amount in 

writing, an Agency may negotiate freely with the 

owner in order to reach agreement. Since these 

transactions are voluntary, accomplished by a 

willing buyer and a willing seller, negotiations 

may result in agreement for the amount of the 

original estimate, an amount exceeding it, or for a 

lesser amount. Although not required by the 

regulations, it would be entirely appropriate for 

Agencies to apply the administrative settlement 

concept and procedures in §24.102(i) to negotiate 

amounts that exceed the original estimate of 

market value. Agencies shall not take any 

coercive action in order to reach agreement on 

the price to be paid for the property. 

Section 24.101(c) Less-than-full-fee interest in 

real property. This provision provides a 

benchmark beyond which the requirements of the 

subpart clearly apply to leases. 

Section 24.102(c)(2) Appraisal, waiver thereof, 

and invitation to owner. The purpose of the 

appraisal waiver provision is to provide Agencies 

a technique to avoid the costs and time delay 

associated with appraisal requirements for lowvalue, non-complex acquisitions. The intent is 

that non-appraisers make the waiver valuations, 

freeing appraisers to do more sophisticated work. 

The Agency employee making the determination 

to use the appraisal waiver process must have 

enough understanding of appraisal principles to 

be able to determine whether or not the proposed 

acquisition is low value and uncomplicated. 

Waiver valuations are not appraisals as defined 

by the Uniform Act and these regulations; 

therefore, appraisal performance requirements or 

standards, regardless of their source, are not 

required for waiver valuations by this rule. Since 

waiver valuations are not appraisals, neither is 

there a requirement for an appraisal review. 

However, the Agency must have a reasonable 

basis for the waiver valuation and an Agency 

official must still establish an amount believed to 

be just compensation to offer the property 

owner(s). 

The definition of “appraisal” in the Uniform Act 

and appraisal waiver provisions of the Uniform 

Act and these regulations are Federal law and 

public policy and should be considered as such 

when determining the impact of appraisal 

requirements levied by others. 

Section 24.102(d) Establishment of offer of just 

compensation. The initial offer to the property 

owner may not be less than the amount of the 

Agency's approved appraisal, but may exceed 

that amount if the Agency determines that a 

greater amount reflects just compensation for the 

property. 

Section 24.102(f) Basic negotiation procedures. 

An offer should be adequately presented to an 

owner, and the owner should be properly 

informed. Personal, face-to-face contact should 

take place, if feasible, but this section does not 

require such contact in all cases. 

This section also provides that the property 

owner be given a reasonable opportunity to 

consider the Agency's offer and to present 

relevant material to the Agency. In order to 

satisfy this requirement, Agencies must allow 

owners time for analysis, research and 

development, and compilation of a response, 

including perhaps getting an appraisal. The 

needed time can vary significantly, depending on 

the circumstances, but thirty (30) days would 

seem to be the minimum time these actions can 

be reasonably expected to require. Regardless of 

project time pressures, property owners must be 

afforded this opportunity. 

In some jurisdictions, there is pressure to initiate 

formal eminent domain procedures at the earliest 

opportunity because completing the eminent 

domain process, including gaining possession of 

the needed real property, is very time consuming. 

These provisions are not intended to restrict this 
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practice, so long as it does not interfere with the 

reasonable time that must be provided for 

negotiations, described above, and the Agencies 

adhere to the Uniform Act ban on coercive action 

(section 301(7) of the Uniform Act). 

If the owner expresses intent to provide an 

appraisal report, Agencies are encouraged to 

provide the owner and/or his/her appraiser a copy 

of Agency appraisal requirements and inform 

them that their appraisal should be based on those 

requirements. 

Section 24.102(i) Administrative settlement. This 

section provides guidance on administrative 

settlement as an alternative to judicial resolution 

of a difference of opinion on the value of a 

property, in order to avoid unnecessary litigation 

and congestion in the courts. 

All relevant facts and circumstances should be 

considered by an Agency official delegated this 

authority. Appraisers, including review 

appraisers, must not be pressured to adjust their 

estimate of value for the purpose of justifying 

such settlements. Such action would invalidate 

the appraisal process. 

Section 24.102(j) Payment before taking 

possession. It is intended that a right-of-entry for 

construction purposes be obtained only in the 

exceptional case, such as an emergency project, 

when there is no time to make an appraisal and 

purchase offer and the property owner is 

agreeable to the process. 

Section 24.102(m) Fair rental. Section 301(6) of 

the Uniform Act limits what an Agency may 

charge when a former owner or previous 

occupant of a property is permitted to rent the 

property for a short term or when occupancy is 

subject to termination by the Agency on short 

notice. Such rent may not exceed “the fair rental 

value of the property to a short-term occupier.” 

Generally, the Agency's right to terminate 

occupancy on short notice (whether or not the 

renter also has that right) supports the 

establishment of a lesser rental than might be 

found in a longer, fixed-term situation. 

Section 24.102(n) Conflict of interest. The overall 

objective is to minimize the risk of fraud while 

allowing Agencies to operate as efficiently as 

possible. There are three parts to this provision. 

The first provision is the prohibition against 

having any interest in the real property being 

valued by the appraiser (for an appraisal), the 

valuer (for a waiver estimate) or the review 

appraiser (for an appraisal review.) 

The second provision is that no person 

functioning as a negotiator for a project or 

program can supervise or formally evaluate the 

performance of any appraiser or review appraiser 

performing appraisal or appraisal review work 

for that project or program. The intent of this 

provision is to ensure appraisal/valuation 

independence and to prevent inappropriate 

influence. It is not intended to prevent Agencies 

from providing appraisers/valuers with 

appropriate project information and participating 

in determining the scope of work for the 

appraisal or valuation. For a program or project 

receiving Federal financial assistance, the Federal 

funding Agency may waive this requirement if it 

would create a hardship for the Agency. The 

intent is to accommodate Federal-aid recipients 

that have a small staff where this provision would 

be unworkable. 

The third provision is to minimize situations 

where administrative costs exceed acquisition 

costs. Section 24.102(n) also provides that the 

same person may prepare a valuation estimate 

(including an appraisal) and negotiate that 

acquisition, if the valuation estimate amount is 

$10,000 or less. However, it should be noted that 

this exception for properties valued at $10,000 or 

less is not mandatory, e.g. , Agencies are not 

required to use those who prepare a waiver 

valuation or appraisal of $10,000 or less to 

negotiate the acquisition, and, all appraisals must 

be reviewed in accordance with §24.104. This 

includes appraisals of real property valued at 

$10,000 or less. 

Section 24.103 Criteria for Appraisals. The term 

“requirements” is used throughout this section to 

avoid confusion with The Appraisal Foundation's 

Uniform Standards of Professional Appraisal 

Practice (USPAP) “standards.” Although this 

section discusses appraisal requirements, the 

definition of “appraisal” itself at §24.2(a)(3) 

includes appraisal performance requirements that 

are an inherent part of this section. 

The term “Federal and federally-assisted program 

or project” is used to better identify the type of 

appraisal practices that are to be referenced and 

to differentiate them from the private sector, 

especially mortgage lending, appraisal practice. 
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136 11BThe Uniform Act –Common Rule – 49 CFR Part 24   

Section 24.103(a) Appraisal requirements. The 

first sentence instructs readers that requirements 

for appraisals for Federal and federally-assisted 

programs or projects are located in 49 CFR part 

24. These are the basic appraisal requirements for 

Federal and federally-assisted programs or 

projects. However, Agencies may enhance and 

expand on them, and there may be specific 

project or program legislation that references 

other appraisal requirements. 

These appraisal requirements are necessarily 

designed to comply with the Uniform Act and 

other Federal eminent domain based appraisal 

requirements. They are also considered to be 

consistent with Standards Rules 1, 2, and 3 of the 

2004 edition of the USPAP. Consistency with 

USPAP has been a feature of these appraisal 

requirements since the beginning of USPAP. This 

“consistent” relationship was more formally 

recognized in OMB Bulletin 92–06. While these 

requirements are considered consistent with 

USPAP, neither can supplant the other; their 

provisions are neither identical, nor 

interchangeable. Appraisals performed for 

Federal and federally-assisted real property 

acquisition must follow the requirements in this 

regulation. Compliance with any other appraisal 

requirements is not the purview of this 

regulation. An appraiser who is committed to 

working within the bounds of USPAP should 

recognize that compliance with both USPAP and 

these requirements may be achieved by using the 

Supplemental Standards Rule and the 

Jurisdictional Exception Rule of USPAP, where 

applicable. 

The term “scope of work” defines the general 

parameters of the appraisal. It reflects the needs 

of the Agency and the requirements of Federal 

and federally-assisted program appraisal practice. 

It should be developed cooperatively by the 

assigned appraiser and an Agency official who is 

competent to both represent the Agency's needs 

and respect valid appraisal practice. The scope of 

work statement should include the purpose and/or 

function of the appraisal, a definition of the estate 

being appraised, and if it is fair market value, its 

applicable definition, and the assumptions and 

limiting conditions affecting the appraisal. It may 

include parameters for the data search and 

identification of the technology, including 

approaches to value, to be used to analyze the 

data. The scope of work should consider the 

specific requirements in 49 CFR 24.103(a)(2)(i) 

through (v) and address them as appropriate. 

Section 24.103(a)(1). The appraisal report should 

identify the items considered in the appraisal to 

be real property, as well as those identified as 

personal property. 

Section 24.103(a)(2). All relevant and reliable 

approaches to value are to be used. However, 

where an Agency determines that the sales 

comparison approach will be adequate by itself 

and yield credible appraisal results because of the 

type of property being appraised and the 

availability of sales data, it may limit the 

appraisal assignment to the sales comparison 

approach. This should be reflected in the scope of 

work. 

Section 24.103(b) Influence of the project on just 

compensation. As used in this section, the term 

“project” means an undertaking which is planned, 

designed, and intended to operate as a unit. 

When the public is aware of the proposed project, 

project area property values may be affected. 

Therefore, property owners should not be 

penalized because of a decrease in value caused 

by the proposed project nor reap a windfall at 

public expense because of increased value 

created by the proposed project. 

Section 24.103(d)(1). The appraiser and review 

appraiser must each be qualified and competent 

to perform the appraisal and appraisal review 

assignments, respectively. Among other 

qualifications, State licensing or certification and 

professional society designations can help 

provide an indication of an appraiser's abilities. 

Section 24.104 Review of appraisals. The term 

“review appraiser” is used rather than “reviewing 

appraiser,” to emphasize that “review appraiser” 

is a separate specialty and not just an appraiser 

who happens to be reviewing an appraisal. 

Federal Agencies have long held the perspective 

that appraisal review is a unique skill that, while 

it certainly builds on appraisal skills, requires 

more. The review appraiser should possess both 

appraisal technical abilities and the ability to be 

the two-way bridge between the Agency's real 

property valuation needs and the appraiser. 

Agency review appraisers typically perform a 

role greater than technical appraisal review. They 

are often involved in early project development. 

Later they may be involved in devising the scope 
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of work statements and participate in making 

appraisal assignments to fee and/or staff 

appraisers. They are also mentors and technical 

advisors, especially on Agency policy and 

requirements, to appraisers, both staff and fee. 

Additionally, review appraisers are frequently 

technical advisors to other Agency officials. 

Section 24.104(a). This paragraph states that the 

review appraiser is to review the appraiser's 

presentation and analysis of market information 

and that it is to be reviewed against §24.103 and 

other applicable requirements, including, to the 

extent appropriate, the Uniform Appraisal 

Standards for Federal Land Acquisition. The 

appraisal review is to be a technical review by an 

appropriately qualified review appraiser. The 

qualifications of the review appraiser and the 

level of explanation of the basis for the review 

appraiser's recommended (or approved) value 

depend on the complexity of the appraisal 

problem. If the initial appraisal submitted for 

review is not acceptable, the review appraiser is 

to communicate and work with the appraiser to 

the greatest extent possible to facilitate the 

appraiser's development of an acceptable 

appraisal. 

In doing this, the review appraiser is to remain in 

an advisory role, not directing the appraisal, and 

retaining objectivity and options for the appraisal 

review itself. 

If the Agency intends that the staff review 

appraiser approve the appraisal (as the basis for 

the establishment of the amount believed to be 

just compensation), or establish the amount the 

Agency believes is just compensation, she/he 

must be specifically authorized by the Agency to 

do so. If the review appraiser is not specifically 

authorized to approve the appraisal (as the basis 

for the establishment of the amount believed to 

be just compensation), or establish the amount 

believed to be just compensation, that authority 

remains with another Agency official. 

Section 24.104(b). In developing an independent 

approved or recommended value, the review 

appraiser may reference any acceptable resource, 

including acceptable parts of any appraisal, 

including an otherwise unacceptable appraisal. 

When a review appraiser develops an 

independent value, while retaining the appraisal 

review, that independent value also becomes the 

approved appraisal of the fair market value for 

Uniform Act Section 301(3) purposes. It is within 

Agency discretion to decide whether a second 

review is needed if the first review appraiser 

establishes a value different from that in the 

appraisal report or reports on the property. 

Section 24.104(c). Before acceptance of an 

appraisal, the review appraiser must determine 

that the appraiser's documentation, including 

valuation data and analysis of that data, 

demonstrates the soundness of the appraiser's 

opinion of value. For the purposes of this part, an 

acceptable appraisal is any appraisal that, on its 

own, meets the requirements of §24.103. An 

approved appraisal is the one acceptable 

appraisal that is determined to best fulfill the 

requirement to be the basis for the amount 

believed to be just compensation. Recognizing 

that appraisal is not an exact science, there may 

be more than one acceptable appraisal of a 

property, but for the purposes of this part, there 

can be only one approved appraisal. 

At the Agency's discretion, for a low value 

property requiring only a simple appraisal 

process, the review appraiser's recommendation 

(or approval), endorsing the appraiser's report, 

may be determined to satisfy the requirement for 

the review appraiser's signed report and 

certification. 

Section 24.106(b). Expenses incidental to 

transfer of title to the agency. Generally, the 

Agency is able to pay such incidental costs 

directly and, where feasible, is required to do so. 

In order to prevent the property owner from 

making unnecessary out-of-pocket expenditures 

and to avoid duplication of expenses, the 

property owner should be informed early in the 

acquisition process of the Agency's intent to 

make such arrangements. Such expenses must be 

reasonable and necessary. 

Subpart C—General Relocation

Requirements

Section 24.202 Applicability and Section 205(c) 

Services to be provided. In extraordinary 

circumstances, when a displaced person is not 

readily accessible, the Agency must make a good 

faith effort to comply with these sections and 

document its efforts in writing. 

Section 24.204 Availability of comparable 

replacement dwelling before displacement. 
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138 11BThe Uniform Act –Common Rule – 49 CFR Part 24   

Section 24.204(a) General. This provision 

requires that no one may be required to move 

from a dwelling without a comparable 

replacement dwelling having been made 

available. In addition, §24.204(a) requires that, 

“where possible, three or more comparable 

replacement dwellings shall be made available.” 

Thus, the basic standard for the number of 

referrals required under this section is three. Only 

in situations where three comparable replacement 

dwellings are not available ( e.g. , when the local 

housing market does not contain three 

comparable dwellings) may the Agency make 

fewer than three referrals. 

Section 24.205 Relocation assistance advisory 

services. Section 24.205(c)(2)(ii)(D) emphasizes 

that if the comparable replacement dwellings are 

located in areas of minority concentration, 

minority persons should, if possible, also be 

given opportunities to relocate to replacement 

dwellings not located in such areas. 

Section 24.206 Eviction for cause. An eviction 

related to non-compliance with a requirement 

related to carrying out a project ( e.g. , failure to 

move or relocate when instructed, or to cooperate 

in the relocation process) shall not negate a 

person's entitlement to relocation payments and 

other assistance set forth in this part. 

Section 24.207 General Requirements–Claims 

for relocation payments. Section 24.207(a) 

allows an Agency to make a payment for low 

cost or uncomplicated nonresidential moves 

without additional documentation, as long as the 

payment is limited to the amount of the lowest 

acceptable bid or estimate, as provided for in 

§24.301(d)(1). 

While §24.207(f) prohibits an Agency from 

proposing or requesting that a displaced person 

waive his or her rights or entitlements to 

relocation assistance and payments, an Agency 

may accept a written statement from the 

displaced person that states that they have chosen 

not to accept some or all of the payments or 

assistance to which they are entitled. Any such 

written statement must clearly show that the 

individual knows what they are entitled to receive 

(a copy of the Notice of Eligibility which was 

provided may serve as documentation) and their 

statement must specifically identify which 

assistance or payments they have chosen not to 

accept. The statement must be signed and dated 

and may not be coerced by the Agency. 

Subpart D—Payment for Moving and

Related Expenses

Section 24.301. Payment for Actual Reasonable 

Moving and Related Expenses. 

Section 24.301(e) Personal property only. 

Examples of personal property only moves might 

be: personal property that is located on a portion 

of property that is being acquired, but the 

business or residence will not be taken and can 

still operate after the acquisition; personal 

property that is located in a mini-storage facility 

that will be acquired or relocated; personal 

property that is stored on vacant land that is to be 

acquired. 

For a nonresidential personal property only 

move, the owner of the personal property has the 

options of moving the personal property by using 

a commercial mover or a self-move. 

If a question arises concerning the reasonableness 

of an actual cost move, the acquiring Agency 

may obtain estimates from qualified movers to 

use as the standard in determining the payment. 

Section 24.301 (g)(14)(i) and (ii). If the piece of 

equipment is operational at the acquired site, the 

estimated cost to reconnect the equipment shall 

be based on the cost to install the equipment as it 

currently exists, and shall not include the cost of 

code-required betterments or upgrades that may 

apply at the replacement site. As prescribed in the 

regulation, the allowable in-place value estimate 

(§24.301(g)(14)(i)) and moving cost estimate 

(§24.301(g)(14)(ii)) must reflect only the “as is” 

condition and installation of the item at the 

displacement site. The in-place value estimate 

may not include costs that reflect code or other 

requirements that were not in effect at the 

displacement site; or include installation costs for 

machinery or equipment that is not operable or 

not installed at the displacement site. 

Section 24.301(g)(17) Searching expenses. In 

special cases where the displacing Agency 

determines it to be reasonable and necessary, 

certain additional categories of searching costs 

may be considered for reimbursement. These 

include those costs involved in investigating 

potential replacement sites and the time of the 
Real Estate Acquisition Guide For Local Public Agencies  2009

 11BThe Uniform Act –Common Rule – 49 CFR Part 24  139 

business owner, based on salary or earnings, 

required to apply for licenses or permits, zoning 

changes, and attendance at zoning hearings. 

Necessary attorney fees required to obtain such 

licenses or permits are also reimbursable. Time 

spent in negotiating the purchase of a 

replacement business site is also reimbursable 

based on a reasonable salary or earnings rate. In 

those instances when such additional costs to 

investigate and acquire the site exceed $2,500, 

the displacing Agency may consider waiver of 

the cost limitation under the §24.7, waiver 

provision. Such a waiver should be subject to the 

approval of the Federal-funding Agency in 

accordance with existing delegation authority. 

Section 24.303(b) Professional Services. If a 

question should arise as to what is a “reasonable 

hourly rate,” the Agency should compare the 

rates of other similar professional providers in 

that area. 

Section 24.305 Fixed Payment for Moving 

Expenses—Nonresidential Moves. 

Section 24.305(d) Nonprofit organization. Gross 

revenues may include membership fees, class 

fees, cash donations, tithes, receipts from sales or 

other forms of fund collection that enables the 

nonprofit organization to operate. Administrative 

expenses are those for administrative support 

such as rent, utilities, salaries, advertising, and 

other like items as well as fundraising expenses. 

Operating expenses for carrying out the purposes 

of the nonprofit organization are not included in 

administrative expenses. The monetary receipts 

and expense amounts may be verified with 

certified financial statements or financial 

documents required by public Agencies. 

Section 24.305(e) Average annual net earnings of 

a business or farm operation. If the average 

annual net earnings of the displaced business, 

farm, or nonprofit organization are determined to 

be less than $1,000, even $0 or a negative 

amount, the minimum payment of $1,000 shall be 

provided. 

Section 24.306 Discretionary Utility Relocation 

Payments. Section 24.306(c) describes the issues 

that the Agency and the utility facility owner 

must agree to in determining the amount of the 

relocation payment. To facilitate and aid in 

reaching such agreement, the practices in the 

Federal Highway Administration regulation, 23 

CFR part 645, subpart A, Utility Relocations, 

Adjustments and Reimbursement, should be 

followed. 

Subpart E—Replacement Housing

Payments

Section 24.401 Replacement Housing Payment 

for 180-day Homeowner-Occupants. 

Section 24.401(a)(2). An extension of eligibility 

may be granted if some event beyond the control 

of the displaced person such as acute or life 

threatening illness, bad weather preventing the 

completion of construction, or physical 

modifications required for reasonable 

accommodation of a replacement dwelling, or 

other like circumstances causes a delay in 

occupying a decent, safe, and sanitary 

replacement dwelling. 

Section 24.401(c)(2)(iii) Price differential. The 

provision in §24.401(c)(2)(iii) to use the current 

fair market value for residential use does not 

mean the Agency must have the property 

appraised. Any reasonable method for arriving at 

the fair market value may be used. 

Section 24.401(d) Increased mortgage interest 

costs. The provision in §24.401(d) sets forth the 

factors to be used in computing the payment that 

will be required to reduce a person's replacement 

mortgage (added to the downpayment) to an 

amount which can be amortized at the same 

monthly payment for principal and interest over 

the same period of time as the remaining term on 

the displacement mortgages. This payment is 

commonly known as the “buydown.” 

The Agency must know the remaining principal 

balance, the interest rate, and monthly principal 

and interest payments for the old mortgage as 

well as the interest rate, points and term for the 

new mortgage to compute the increased mortgage 

interest costs. If the combination of interest and 

points for the new mortgage exceeds the current 

prevailing fixed interest rate and points for 

conventional mortgages and there is no 

justification for the excessive rate, then the 

current prevailing fixed interest rate and points 

shall be used in the computations. Justification 

may be the unavailability of the current 

prevailing rate due to the amount of the new 

mortgage, credit difficulties, or other similar 

reasons. 
2009 Real Estate Acquisition Guide For Local Public Agencies 

140 11BThe Uniform Act –Common Rule – 49 CFR Part 24   

Sample Computation 

Old Mortgage: 

Remaining Principal Balance $50,000 

Monthly Payment (principal 

and interest) $458.22 

Interest rate (percent) 7 

New Mortgage: 

Interest rate (percent) 10 

Points 

3 

Term (years) 15 

Remaining term of the old mortgage is 

determined to be 174 months. Determining, or 

computing, the actual remaining term is more 

reliable than using the data supplied by the 

mortgagee. However, if it is shorter, use the term 

of the new mortgage and compute the needed 

monthly payment. 

Amount to be financed to maintain monthly 

payments of $458.22 at 10% = $42,010.18. 

Calculation: 

Remaining Principal Balance $50,000.00 

Minus Monthly Payment 

(principal and interest) −42,010.18 

Increased mortgage interest 

costs 7,989.82 

3 points on $42,010.18 1,260.31 

Total buydown necessary to 

maintain payments at 

$458.22/month 

9,250.13 

If the new mortgage actually obtained is less than 

the computed amount for a new mortgage 

($42,010.18), the buydown shall be prorated 

accordingly. If the actual mortgage obtained in 

our example were $35,000, the buydown 

payment would be $7,706.57 ($35,000 divided by 

$42,010.18 = .8331; $9,250.13 multiplied by .83 

= $7,706.57). 

The Agency is obligated to inform the displaced 

person of the approximate amount of this 

payment and that the displaced person must 

obtain a mortgage of at least the same amount as 

the old mortgage and for at least the same term in 

order to receive the full amount of this payment. 

The Agency must advise the displaced person of 

the interest rate and points used to calculate the 

payment. 

Section 24.402 Replacement Housing Payment 

for 90-day Occupants 

Section 24.402(b)(2) Low income calculation 

example. The Uniform Act requires that an 

eligible displaced person who rents a replacement 

dwelling is entitled to a rental assistance payment 

calculated in accordance with §24.402(b). One 

factor in this calculation is to determine if a 

displaced person is “low income,” as defined by 

the U.S. Department of Housing and Urban 

Development's annual survey of income limits 

for the Public Housing and Section 8 Programs. 

To make such a determination, the Agency must: 

(1) Determine the total number of members in the 

household (including all adults and children); (2) 

locate the appropriate table for income limits 

applicable to the Uniform Act for the state in 

which the displaced residence is located (found 

at: 

http://www.fhwa.dot.gov/realestate/ua/ualic.htm 

); (3) from the list of local jurisdictions shown, 

identify the appropriate county, Metropolitan 

Statistical Area (MSA)*, or Primary 

Metropolitan Statistical Area (PMSA)* in which 

the displacement property is located; and (4) 

locate the appropriate income limit in that 

jurisdiction for the size of this displaced 

person/family. The income limit must then be 

compared to the household income (§24.2(a)(15)) 

which is the gross annual income received by the 

displaced family, excluding income from any 

dependent children and full-time students under 

the age of 18. If the household income for the 

eligible displaced person/family is less than or 
Real Estate Acquisition Guide For Local Public Agencies  2009

 11BThe Uniform Act –Common Rule – 49 CFR Part 24  141 

equal to the income limit, the family is 

considered “low income.” For example: 

Tom and Mary Smith and their three children are 

being displaced. The information obtained from 

the family and verified by the Agency is as 

follows: 

Tom Smith, employed, earns $21,000/yr. 

Mary Smith, receives disability payments of 

$6,000/yr. 

Tom Smith Jr., 21, employed, earns $10,000/yr. 

Mary Jane Smith, 17, student, has a paper route, 

earns $3,000/yr. (Income is not included because 

she is a dependent child and a full-time student 

under 18) 

Sammie Smith, 10, full-time student, no income. 

Total family income for 5 persons is: $21,000 + 

$6,000 + $10,000 = $37,000 

The displacement residence is located in the State 

of Maryland, Caroline County. The low income 

limit for a 5 person household is: $47,450. (2004 

Income Limits) 

This household is considered “low income.” 

* A complete list of counties and towns included 

in the identified MSAs and PMSAs can be found 

under the bulleted item “Income Limit Area 

Definition” posted on the FHWA's Web site at: 

http://www.fhwa.dot.gov/realestate/ua/ualic.htm. 

Section 24.402(c) Downpayment assistance. The 

downpayment assistance provisions in §24.402(c) 

limit such assistance to the amount of the 

computed rental assistance payment for a tenant 

or an eligible homeowner. It does, however, 

provide the latitude for Agency discretion in 

offering downpayment assistance that exceeds 

the computed rental assistance payment, up to the 

$5,250 statutory maximum. This does not mean, 

however, that such Agency discretion may be 

exercised in a selective or discriminatory fashion. 

The displacing Agency should develop a policy 

that affords equal treatment for displaced persons 

in like circumstances and this policy should be 

applied uniformly throughout the Agency's 

programs or projects. 

For the purpose of this section, should the 

amount of the rental assistance payment exceed 

the purchase price of the replacement dwelling, 

the payment would be limited to the cost of the 

dwelling. 

Section 24.404 Replacement Housing of Last 

Resort. 

Section 24.404(b) Basic rights of persons to be 

displaced. This paragraph affirms the right of a 

180-day homeowner-occupant, who is eligible 

for a replacement housing payment under 

§24.401, to a reasonable opportunity to purchase 

a comparable replacement dwelling. However, it 

should be read in conjunction with the definition 

of “owner of a dwelling” at §24.2(a)(20). The 

Agency is not required to provide persons 

owning only a fractional interest in the 

displacement dwelling a greater level of 

assistance to purchase a replacement dwelling 

than the Agency would be required to provide 

such persons if they owned fee simple title to the 

displacement dwelling. If such assistance is not 

sufficient to buy a replacement dwelling, the 

Agency may provide additional purchase 

assistance or rental assistance. 

Section 24.404(c) Methods of providing 

comparable replacement housing. This Section 

emphasizes the use of cost effective means of 

providing comparable replacement housing. The 

term “reasonable cost” is used to highlight the 

fact that while innovative means to provide 

housing are encouraged, they should be costeffective. Section 24.404(c)(2) permits the use of 

last resort housing, in special cases, which may 

involve variations from the usual methods of 

obtaining comparability. However, such variation 

should never result in a lowering of housing 

standards nor should it ever result in a lower 

quality of living style for the displaced person. 

The physical characteristics of the comparable 

replacement dwelling may be dissimilar to those 

of the displacement dwelling but they may never 

be inferior. 

One example might be the use of a new mobile 

home to replace a very substandard conventional 

dwelling in an area where comparable 

conventional dwellings are not available. 

Another example could be the use of a superior, 

but smaller, decent, safe and sanitary dwelling to 

replace a large, old substandard dwelling, only a 

portion of which is being used as living quarters 

by the occupants and no other large comparable 

dwellings are available in the area. 
2009 Real Estate Acquisition Guide For Local Public Agencies 

142 11BThe Uniform Act –Common Rule – 49 CFR Part 24   

[70 FR 611, Jan. 4, 2005, as amended at 70 FR 

22611, May 2, 2005]

APPENDIX B TO PART 24—

STATISTICAL REPORT FORM 

This Appendix sets forth the statistical 

information collected from Agencies in 

accordance with §24.9(c). 

General 

1. Report coverage. This report covers all 

relocation and real property acquisition activities 

under a Federal or a federally-assisted project or 

program subject to the provisions of the Uniform 

Act. If the exact numbers are not easily available, 

an Agency may provide what it believes to be a 

reasonable estimate. 

2. Report period. Activities shall be reported on a 

Federal fiscal year basis, i.e. , October 1 through 

September 30. 

3. Where and when to submit report. Submit a 

copy of this report to the lead Agency as soon as 

possible after September 30, but NOT LATER 

THAN NOVEMBER 15. Lead Agency address: 

Federal Highway Administration, Office of Real 

Estate Services (HEPR), 1200 New Jersey 

Avenue, SE., Washington, DC 20590. 

4. How to report relocation payments. The full 

amount of a relocation payment shall be reported 

as if disbursed in the year during which the claim 

was approved, regardless of whether the payment 

is to be paid in installments. 

5. How to report dollar amounts. Round off all 

money entries in Parts of this section A, B and C 

to the nearest dollar. 

6. Regulatory references. The references in Parts 

A, B, C and D of this section indicate the subpart 

of the regulations pertaining to the requested 

information. 

Part A. Real property acquisition under The 

Uniform Act 

Line 1. Report all parcels acquired during the 

report year where title or possession was vested 

in the Agency during the reporting period. The 

parcel count reported should relate to ownerships 

and not to the number of parcels of different 

property interests (such as fee, perpetual 

easement, temporary easement, etc.) that may 

have been part of an acquisition from one owner. 

For example, an acquisition from a property that 

includes a fee simple parcel, a perpetual 

easement parcel, and a temporary easement 

parcel should be reported as 1 parcel not 3 

parcels. (Include parcels acquired without 

Federal financial assistance, if there was or will 

be Federal financial assistance in other phases of 

the project or program.) 

Line 2. Report the number of parcels reported on 

Line 1 that were acquired by condemnation. 

Include those parcels where compensation for the 

property was paid, deposited in court, or 

otherwise made available to a property owner 

pursuant to applicable law in order to vest title or 

possession in the Agency through condemnation 

authority. 

Line 3. Report the number of parcels in Line 1 

acquired through administrative settlement where 

the purchase price for the property exceeded the 

amount offered as just compensation and efforts 

to negotiate an agreement at that amount have 

failed. 

Line 4. Report the total of the amounts paid, 

deposited in court, or otherwise made available to 

a property owner pursuant to applicable law in 

order to vest title or possession in the Agency in 

Line 1. 

Part B. Residential Relocation Under the 

Uniform Act 

Line 5. Report the number of households who 

were permanently displaced during the fiscal year 

by project or program activities and moved to 

their replacement dwelling. The term 

“households” includes all families and 

individuals. A family shall be reported as “one” 

household, not by the number of people in the 

family unit. 

Line 6. Report the total amount paid for 

residential moving expenses (actual expense and 

fixed payment). 

Line 7. Report the total amount paid for 

residential replacement housing payments 

including payments for replacement housing of 

last resort provided pursuant to §24.404 of this 

part. 

Line 8. Report the number of households in Line 

5 who were permanently displaced during the 
Real Estate Acquisition Guide For Local Public Agencies  2009

 11BThe Uniform Act –Common Rule – 49 CFR Part 24  143 

fiscal year by project or program activities and 

moved to their replacement dwelling as part of 

last resort housing assistance. 

Line 9. Report the number of tenant households 

in Line 5 who were permanently displaced during 

the fiscal year by project or program activities, 

and who purchased and moved to their 

replacement dwelling using a downpayment 

assistance payment under this part. 

Line 10. Report the total sum costs of residential 

relocation expenses and payments (excluding 

Agency administrative expenses) in Lines 6 and 

7. 

Part C. Nonresidential Relocation Under the 

Uniform Act 

Line 11. Report the number of businesses, 

nonprofit organizations, and farms who were 

permanently displaced during the fiscal year by 

project or program activities and moved to their 

replacement location. This includes businesses, 

nonprofit organizations, and farms, that upon 

displacement, discontinued operations. 

Line 12. Report the total amount paid for 

nonresidential moving expenses (actual expense 

and fixed payment.) 

Line 13. Report the total amount paid for 

nonresidential reestablishment expenses. 

Line 14. Report the total sum costs of 

nonresidential relocation expenses and payments 

(excluding Agency administrative expenses) in 

Lines 12 and 13. 

Part D. Relocation Appeals 

Line 15. Report the total number of relocation 

appeals filed during the fiscal year by aggrieved 

persons (residential and nonresidential). 

NOTES:
2009 Real Estate Acquisition Guide For Local Public Agencies 

144 11BThe Uniform Act –Common Rule – 49 CFR Part 24   

[70 FR 611, Jan. 4, 2005, as amended at 73 FR 

33329, June 12, 2008]
Real Estate Acquisition Guide For Local Public Agencies  2009

 12BRight‐of‐Way Regulations – 23 CFR 710  145 

RIGHT-OF-WAY REGULATIONS – 23 CFR 710 

From the GPO Access eCFR website as of March 2009 ‐ 

http://www.gpoaccess.gov/cfr/index.html

Title 23: Highways

P

R

ART 710—RIGHT-OF-WAY AND 

EAL ESTATE 

Section Contents

Subpart A—General

§ 710.101   Purpose.

§ 710.103   Applicability.

§ 710.105   Definitions.

Subpart B—Program Administr

§ 710.201   State responsibilities.

§ 710.203   Funding and reimbursement.

ation

Subpart C—Project

§ 710.301   General.

§ 710.303   Planning.

§ 710.305   Environmental analysis.

§ 710.307   Project agreement.

§ 710.309   Acquisition.

§ 710.311   Construction advertising.

§ 710.313   Design‐build projects.

Development

Subpart D—Real Pr

§ 710.401   General.

§ 710.403   Management.

§ 710.405   Air rights on the Interstate.

§ 710.407   Leasing.

§ 710.409   Disposals.

operty Management

Subpart E—Property Acqu ition

A

is

lternatives

§ 710  § 710.501   Early acquisition.

§ 710.503   Protective buying and hardship 

acquisition.

§ 710.505   Real property donations.

§ 710.507   State and local contributions.

§ 710.509   Functional replacement of real 

property in public ownership.

§ 710.511   Transportation enhancements.

§ 710.513   Environmental mitigation.

Subpart F—Federal Assistance Progra

§ 710.601   Federal land transfer.

§ 710.603   Direct Federal acquisition.

ms

Subpart G—Concess

§ 710.701   Purpose.

§ 710.703   Definitions.

§ 710.705   Applicability.

§ 710.707   Fair Market Value.

§ 710.709   Determination of Fair Market 

Value.

ion Agreements

Authority: Sec. 1307, Pub. L. 105–178, 112 

Stat. 107; 23 U.S.C. 101(a), 107, 108, 111, 114, 

133, 142(f), 156, 204, 210, 308, 315, 317, and 

323; 42 U.S.C. 2000d et seq., 4633, 4651–4655; 

49 CFR 1.48(b) and (cc), 18.31, and parts 21 and 

24; 23 CFR 1.32.

Source: 64 FR 71290, Dec. 21, 1999, unless 

otherwise noted.
2009 Real Estate Acquisition Guide For Local Public Agencies 

146 12BRight‐of‐Way Regulations – 23 CFR 710   

SUBPART A—GENERAL 

§ 710.101 PURPOSE. 

The primary purpose of the requirements in this 

part is to ensure the prudent use of Federal funds 

under title 23 of the United States Code in the 

acquisition, management, and disposal of real 

property. In addition to the requirements of this 

part, other real property related provisions apply 

and are found at 49 CFR part 24. 

§ 710.103 APPLICABILITY. 

This part applies whenever Federal assistance 

under title 23 of the United States Code is used. 

The part applies to programs administered by the 

Federal Highway Administration. Where Federal 

funds are transferred to other Federal agencies to 

administer, those agencies' procedures may be 

utilized. Additional guidance is available 

electronically at the FHWA Real Estate services 

website: 

http://www.fhwa.dot.gov/realestate/index.htm

§ 710.105 DEFINITIONS. 

(a) Terms defined in 49 CFR part 24, and 23 CFR 

part 1 have the same meaning where used in this 

part, except as modified in this section. 

(b) The following terms where used in this part 

have the following meaning: 

Access rights means the right of ingress to and 

egress from a property that abuts a street or 

highway. 

Acquiring agency means a State agency, other 

entity, or person acquiring real property for title 

23 of the United States Code purposes. 

Acquisition means activities to obtain an interest 

in, and possession of, real property. 

Air rights means real property interests defined 

by agreement, and conveyed by deed, lease, or 

permit for the use of airspace. 

Airspace means that space located above and/or 

below a highway or other transportation facility's 

established grade line, lying within the horizontal 

limits of the approved right-of-way or project 

boundaries. 

Damages means the loss in value attributable to 

remainder property due to severance or 

consequential damages, as limited by State law, 

that arise when only part of an owner's property 

is acquired. 

Disposal means the sale of real property or rights 

therein, including access or air rights, when no 

longer needed for highway right-of-way or other 

uses eligible for funding under title 23 of the 

United States Code. 

Donation means the voluntary transfer of 

privately owned real property for the benefit of a 

public transportation project without 

compensation or with compensation at less than 

fair market value. 

Early acquisition means acquisition of real 

property by State or local governments in 

advance of Federal authorization or agreement. 

Easement means an interest in real property that 

conveys a right to use a portion of an owner's 

property or a portion of an owner's rights in the 

property. 

NHS means the National Highway System as 

defined in 23 U.S.C. 103(b). 

Oversight agreement means the project approval 

and agreement concluded between the State and 

the FHWA to outline which projects will be 

monitored at the plans, specifications, and 

estimate stage by FHWA as required by 23 

U.S.C. 106(c)(3). 

Real property means land and any improvements 

thereto, including but not limited to, fee interests, 

easements, air or access rights, and the rights to 

control use, leasehold, and leased fee interests. 

Relinquishment means the conveyance of a 

portion of a highway right-of-way or facility by a 

State highway department to another government 
Real Estate Acquisition Guide For Local Public Agencies  2009

 12BRight‐of‐Way Regulations – 23 CFR 710  147 

agency for continued transportation use. (See 23 

CFR part 620, subpart B.) 

Right-of-way means real property and rights 

therein used for the construction, operation, or 

maintenance of a transportation or related facility 

funded under title 23 of the United States Code. 

Settlement means the result of negotiations based 

on fair market value in which the amount of just 

compensation is agreed upon for the purchase of 

real property or an interest therein. This term 

includes the following: 

(1) An administrative settlement is a settlement 

reached prior to filing a condemnation 

proceeding based on value related evidence, 

administrative consideration, or other factors 

approved by an authorized agency official. 

(2) A legal settlement is a settlement reached by a 

responsible State legal representative after filing 

a condemnation proceeding, including stipulated 

settlements approved by the court in which the 

condemnation action had been filed. 

(3) A court settlement or court award is any 

decision by a court that follows a contested trial 

or hearing before a jury, commission, judge, or 

other legal entity having the authority to establish 

the amount of compensation for a taking under 

the laws of eminent domain. 

State agency means a department, agency, or 

instrumentality of a State or of a political 

subdivision of a State; any department, agency, 

or instrumentality of two or more States or of two 

or more political subdivisions of a State or States; 

or any person who has the authority to acquire 

property by eminent domain, for public purposes, 

under State law. 

State transportation department (STD) means the 

State highway department, transportation 

department, or other State transportation agency 

or commission to which title 23 of the United 

States Code funds are apportioned. 

Uneconomic remnant means a remainder 

property which the acquiring agency has 

determined has little or no utility or value to the 

owner. 

Uniform Act means the Uniform Relocation 

Assistance and Real Property Acquisition 

Policies Act of 1970, as amended (Public Law 

91–646, 84 Stat. 1894), and the implementing 

regulations at 49 CFR part 24. 

SUBPART B—PROGRAM 

ADMINISTRATION 

§ 710.201 STATE RESPONSIBILITIES. 

(a) Organization. Each STD shall be adequately 

staffed, equipped, and organized to discharge its 

real property-related responsibilities. 

(b) Program oversight. The STD shall have 

overall responsibility for the acquisition, 

management, and disposal of real property on 

Federal-aid projects. This responsibility shall 

include assuring that acquisitions and disposals 

by a State agency are made in compliance with 

legal requirements of State and Federal laws and 

regulations. 

(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. The manual shall describe functions 

and procedures for all phases of the real estate 

program, including appraisal and appraisal 

review, negotiation and eminent domain, 

property management, and relocation assistance. 

The manual shall also specify procedures to 

prevent conflict of interest and avoid fraud, 

waste, and abuse. The manual shall be in 

sufficient detail and depth to guide State 

employees and others involved in acquiring and 

managing real property. The State manuals 

should be developed and updated, as a minimum, 

to meet the following schedule: 

(1) The STD shall prepare and submit for 

approval by FHWA an up-to-date Right-of-Way 

Operations Manual by no later than January 1, 

2001. 

(2) Every five years thereafter, the chief 

administrative officer of the STD shall certify to 
2009 Real Estate Acquisition Guide For Local Public Agencies 

148 12BRight‐of‐Way Regulations – 23 CFR 710   

the FHWA that the current ROW operations 

manual conforms to existing practices and 

contains necessary procedures to ensure 

compliance with Federal and State real estate law 

and regulation. 

(3) The STD shall update the manual periodically 

to reflect changes in operations and submit the 

updated materials for approval by the FHWA. 

(d) Compliance responsibility. The STD is 

responsible for complying with current FHWA 

requirements whether or not its manual reflects 

those requirements. 

(e) Adequacy of real property interest. The real 

property interest acquired for all Federal-aid 

projects funded pursuant to title 23 of the United 

States Code shall be adequate for the 

construction, operation, and maintenance of the 

resulting facility and for the protection of both 

the facility and the traveling public. 

(f) Recordkeeping. The acquiring agency shall 

maintain adequate records of its acquisition and 

property management activities. 

(1) Acquisition records, including records related 

to owner or tenant displacements, and property 

inventories of improvements acquired shall be in 

sufficient detail to demonstrate compliance with 

this part and 49 CFR part 24. These records shall 

be retained at least 3 years from either: 

(i) The date the State receives Federal 

reimbursement of the final payment made to each 

owner of a property and to each person displaced 

from a property, or 

(ii) The date a credit toward the Federal share of 

a project is approved based on early acquisition 

activities of the State. 

(2) Property management records shall include 

inventories of real property considered excess to 

project needs, all authorized uses of airspace, and 

other leases or agreements for use of real 

property managed by the STD. 

(g) Procurement. Contracting for all activities 

required in support of State right-of-way 

programs through use of private consultants and 

other services shall conform to 49 CFR 18.36. 

(h) Use of other public land acquisition 

organizations or private consultants. The STD 

may enter into written agreements with other 

State, county, municipal, or local public land 

acquisition organizations or with private 

consultants to carry out its authorities under 

paragraph (b) of this section. Such organizations, 

firms, or individuals must comply with the 

policies and practices of the STD. The STD shall 

monitor any such real property acquisition 

activities to assure compliance with State and 

Federal law and requirements and is responsible 

for informing such organizations of all such 

requirements and for imposing sanctions in cases 

of material non-compliance. 

(i) Approval actions. Except for the Interstate 

system, the STD and the FHWA will agree on the 

scope of property related oversight and approval 

actions that the FHWA will be responsible for 

under this part. The content of the most recent 

oversight agreement shall be reflected in the State 

right-of-way operations manual. The oversight 

agreement, and thus the manual, will indicate for 

which non-Interstate Federal-aid project 

submission of materials for review and approval 

are required. 

(j) Approval of just compensation. The amount 

determined to be just compensation shall be 

approved by a responsible official of the 

acquiring agency. 

(k) Description of acquisition process. The STD 

shall provide persons affected by projects or 

acquisitions advanced under title 23 of the United 

States Code with a written description of its real 

property acquisition process under State law and 

of the owner's rights, privileges, and obligations. 

The description shall be written in clear, nontechnical language and, where appropriate, be 

available in a language other than English. 
Real Estate Acquisition Guide For Local Public Agencies  2009

 12BRight‐of‐Way Regulations – 23 CFR 710  149 

§ 710.203 FUNDING AND 

REIMBURSEMENT. 

(a) General conditions. The following conditions 

are a prerequisite to Federal participation in the 

costs of acquiring real property except as 

provided in §710.501 for early acquisition: 

(1) The project for which the real property is 

acquired is included in an approved Statewide 

Transportation Improvement Program (STIP); 

(2) The State has executed a project agreement; 

(3) Preliminary acquisition activities, including a 

title search and preliminary property map 

preparation necessary for the completion of the 

environmental process, can be advanced under 

preliminary engineering prior to National 

Environmental Policy Act (NEPA) (42 U.S.C. 

4321 et seq. ) clearance, while other work 

involving contact with affected property owners 

must normally be deferred until after NEPA 

approval, except as provided in 23 CFR 710.503 

for protective buying and hardship acquisition; 

and in 23 CFR 710.501, early acquisition. 

Appraisal completion may be authorized as 

preliminary right-of-way activity prior to 

completion of the environmental document; and 

(4) Costs have been incurred in conformance 

with State and Federal law requirements. 

(b) Direct eligible costs. Federal participation in 

real property costs is limited to the costs of 

property incorporated into the final project and 

the associated direct costs of acquisition, unless 

provided otherwise. Participation is provided for: 

(1) Real property acquisition. Usual costs and 

disbursements associated with real property 

acquisition required under the laws of the State, 

including the following: 

(i) The cost of contracting for private acquisition 

services or the cost associated with the use of 

local public agencies. 

(ii) The cost of acquisition activities, such as, 

appraisal, appraisal review, cost estimates, 

relocation planning, right-of-way plan 

preparation, title work, and similar necessary 

right-of-way related work. 

(iii) The cost to acquire real property, including 

incidental expenses. 

(iv) The cost of administrative settlements in 

accordance with 49 CFR 24.102(i), legal 

settlements, court awards, and costs incidental to 

the condemnation process. 

(v) The cost of minimum payments and appraisal 

waiver amounts included in the State approved 

manual. 

(2) Relocation assistance and payments. Usual 

costs and disbursements associated with the 

following: 

(i) Relocation assistance and payments required 

under 49 CFR part 24, and 

(ii) Relocation assistance and payments provided 

under the laws of the State that may exceed the 

requirements of 49 CFR part 24, except for 

relocation assistance and payments provided to 

aliens not lawfully present in the United States. 

(3) Damages. The cost of severance and/or 

consequential damages to remaining real property 

resulting from a partial acquisition, actual or 

constructive, of real property for a project based 

on elements compensable under applicable State 

law. 

(4) Property management. The net cost of 

managing real property prior to and during 

construction to provide for maintenance, 

protection, and the clearance and disposal of 

improvements until final project acceptance. 

(5) Payroll-related expenses and technical 

guidance. Salary and related expenses of 

employees of an acquiring agency are eligible 

costs in accordance with OMB Circular A–87 

(available at 

http://www.whitehouse.gov/omb/circulars ). This 

includes State costs incurred for managing or 

providing technical guidance, consultation or 

oversight on projects where right-of-way services 
2009 Real Estate Acquisition Guide For Local Public Agencies 

150 12BRight‐of‐Way Regulations – 23 CFR 710   

are performed by a political subdivision or 

others. 

(6) Property not incorporated into a project 

funded under title 23 of the United States Code. 

The cost of property not incorporated into a 

project may be eligible for reimbursement in the 

following circumstances: 

(i) General. Costs for construction material sites, 

property acquisitions to a logical boundary, or for 

eligible transportation enhancement, sites for 

disposal of hazardous materials, environmental 

mitigation, environmental banking activities, or 

last resort housing. 

(ii) Easements not incorporated into the right-ofway. The cost of acquiring easements outside the 

right-of-way for permanent or temporary use. 

(7) Uneconomic remnants. The cost of 

uneconomic remnants purchased in connection 

with the acquisition of a partial taking for the 

project as required by the Uniform Act. 

(8) Access rights. Payment for full or partial 

control of access on an existing highway ( i.e., 

one not on a new location), based on elements 

compensable under applicable State law. 

Participation does not depend on another real 

property interest being acquired or on further 

construction of the highway facility. 

(9) Utility and railroad property. (i) The cost to 

replace operating real property owned by a 

displaced utility or railroad and conveyed to an 

STD for a highway project, as provided in 23 

CFR part 140, subpart I, Reimbursement for 

Railroad Work, and 23 CFR part 645, Subpart A, 

Utility Relocations, Adjustments and 

Reimbursement, and 23 CFR part 646, Subpart 

B, Railroad-Highway Projects. 

(ii) Participation in the cost of acquiring nonoperating utility or railroad real property shall be 

in the same manner as that used in the acquisition 

of other privately owned property. 

(c) Withholding payment. The FHWA may 

withhold payment under the conditions in 23 

CFR 1.36 where the State fails to comply with 

Federal law or regulation, State law, or under 

circumstances of waste, fraud, and abuse. 

(d) Indirect costs. Indirect costs may be claimed 

under the provisions of OMB Circular A–87. 

Indirect costs may be included on Federal-aid 

billings after the indirect cost rate has been 

approved by FHWA. 

[64 FR 71290, Dec. 21, 1999, as amended at 67 

FR 12863, Mar. 20, 2002] 

SUBPART C—PROJECT DEVELOPMENT 

§ 710.301 GENERAL. 

The project development process typically 

follows a sequence of actions and approvals in 

order to qualify for funding. The key steps in this 

process are provided in this subpart. 

§ 710.303 PLANNING. 

State and local governments conduct 

metropolitan and statewide planning to develop 

coordinated, financially constrained system plans 

to meet transportation needs for local and 

statewide systems, under FHWA's planning 

regulations contained in 23 CFR part 450. In 

addition, air quality non-attainment areas must 

meet the requirements of the U.S. EPA 

Transportation conformity regulations (40 CFR 

parts 51 and 93). Projects must be included in an 

approved State Transportation Improvement 

Program (STIP) in order to be eligible for 

Federal-aid funding. 

§ 710.305 ENVIRONMENTAL 

ANALYSIS.

The National Environmental Policy Act (NEPA) 

process, as described in FHWA's NEPA 

regulations in 23 CFR part 771, normally must be 

conducted and concluded with a record of 

decision (ROD) or equivalent before Federal 

funds can be placed under agreement for 

acquisition of right-of-way. Where applicable, a 

State also must complete Clean Air Act (42 
Real Estate Acquisition Guide For Local Public Agencies  2009

 12BRight‐of‐Way Regulations – 23 CFR 710  151 

U.S.C. 7401 et seq. ) project level conformity 

analysis. In areas in which the Clean Air Act 

conformity determination has lapsed, acquiring 

agencies must coordinate with Federal Highway 

Administration for special instructions prior to 

initiating new projects or continuing activity on 

existing projects. At the time of processing an 

environmental document, a State may request 

reimbursement of costs incurred for early 

acquisition, provided conditions prescribed in 23 

U.S.C. 108(c) and 23 CFR 710.501, are satisfied. 

§ 710.307 PROJECT AGREEMENT. 

As a condition of Federal-aid, the STD shall 

obtain FHWA authorization in writing or 

electronically before proceeding with any real 

property acquisitions, including hardship 

acquisition and protective buying (see 23 CFR 

710.503). The STD must prepare a project 

agreement in accordance with 23 CFR part 630, 

subpart C. The agreement shall be based on an 

acceptable estimate for the cost of acquisition. 

On projects where the initial project agreement 

was executed after June 9, 1998, a State may 

request credit toward the non-Federal share, for 

early acquisitions, donations, or other 

contributions applied to the project provided 

conditions in 23 U.S.C. 323 and 23 CFR 710.501, 

are satisfied. 

§ 710.309 ACQUISITION. 

The process of acquiring real property includes 

appraisal, appraisal review, establishing just 

compensation, negotiations, administrative and 

legal settlements, and condemnation. The State 

shall conduct acquisition and related relocation 

activities in accordance with 49 CFR part 24. 

§ 710.311 CONSTRUCTION 

ADVERTISING. 

The State must manage real property acquired for 

a project until it is required for construction. 

Clearance of improvements can be scheduled 

during the acquisition phase of the project using 

sale/removal agreements, separate demolition 

contracts, or be included as a work item in the 

construction contract. On Interstate projects, prior 

to advertising for construction, the State shall 

develop ROW availability statements and 

certifications related to project acquisitions as 

required by 23 CFR 635.309. For non-Interstate 

projects, the oversight agreement must specify 

responsibility for the review and approval of the 

ROW availability statements and certifications. 

Generally, for non-NHS projects, the State has 

full responsibility for determining that right-ofway is available for construction. 

§ 710.313 DESIGN-BUILD PROJECTS. 

(a) In the case of a design-build project, right-ofway must be acquired and cleared in accordance 

with the Uniform Relocation Assistance and Real 

Property Acquisition Policies Act of 1970, as 

amended, and STD right-of-way procedures. The 

STD shall submit a right-of-way certification in 

accordance with 23 CFR 635.309(p) when 

requesting FHWA's authorization. If the right-ofway services are included in the Request for 

Proposal document, the STD shall ensure that 

right-of-way is available prior to the start of 

physical construction on individual properties. 

(b) The decision to advance a right-of-way 

segment to the construction stage shall not impair 

the safety or in any way be coercive in the 

context of 49 CFR 24.102(h) with respect to 

unacquired or occupied properties on the same or 

adjacent segments of project right-of-way. 

(c) Certain right-of-way acquisition and clearance 

services may be incorporated into the designbuild contract if allowed under State law. The 

contract may include language that provides that 

construction will not commence until all property 

is acquired and relocations have been completed; 

or, the construction could be phased or 

segmented to allow right-of-way activities to be 

completed on individual properties or a group of 

properties, thereby allowing certification in a 

manner satisfactory to the STD for each phase or 

segment. 

(d) If the STD elects to include right-of-way 

services in the design-build contract, the 

following provisions must be addressed in the 

request for proposals document: 
2009 Real Estate Acquisition Guide For Local Public Agencies 

152 12BRight‐of‐Way Regulations – 23 CFR 710   

(1)(i) The design-builder must submit written 

acquisition and relocation procedures to the STD 

for approval prior to commencing right-of-way 

activities. These procedures should contain a 

prioritized appraisal, acquisition, and relocation 

strategy as well as check points for STD 

approval, such as approval of just compensation, 

replacement housing payment calculations, 

replacement housing payment and moving cost 

claims, appraisals, administrative and stipulated 

settlements that exceed determined thresholds 

based on a risk management analysis, etc. STD's 

which have an FHWA approved procedures 

manual, in accordance with 23 CFR 710.201(c), 

may comply with this section by requiring the 

design-builder to execute a certification in its 

proposal that it has received the approved rightof-way manual and will comply with the 

procedures. 

(ii) The written relocation plan must provide 

reasonable time frames for the orderly relocation 

of residents and businesses on the project as 

provided at 49 CFR 24.205. It should be 

understood that these time frames will be based 

on best estimates of the time it will take to 

acquire the right-of-way and relocate families in 

accordance with certain legal requirements and 

time frames which may not be violated. 

Accordingly, the time frames estimated for rightof-way acquisition will not be compressed in the 

event other necessary actions preceding right-ofway acquisition miss their assigned due dates. 

(2)(i) The design-builder must establish a project 

tracking system and quality control system. This 

system must show the appraisal, acquisition and 

relocation status of all parcels. 

(ii) The quality control system may be 

administered by an independent consultant with 

the necessary expertise in appraisal, acquisition 

and relocation policies and procedures, who can 

make periodic reviews and reports to the designbuilder and the STD. 

(3) The STD may consider the establishment of a 

hold off zone around all occupied properties to 

ensure compliance with right-of-way procedures 

prior to starting construction activities in affected 

areas. The limits of this zone should be 

established by the STD prior to the designbuilder entering on the property. There should be 

no construction related activity within the hold 

off zone until the property is vacated. The designbuilder must have written notification of vacancy 

from the right-of-way quality control consultant 

or STD prior to entering the hold off zone. 

(4) Adequate access shall be provided to all 

occupied properties to insure emergency and 

personal vehicle access. 

(5) Utility service must be available to all 

occupied properties at all times prior to and until 

relocation is completed. 

(6) Open burning should not occur within 305 

meters (1,000 feet) of an occupied dwelling. 

(7) The STD will provide a right-of-way project 

manager who will serve as the first point of 

contact for all right-of-way issues. 

(e) If the STD elects to perform all right-of-way 

services relating to the design-build contract, the 

provisions in §710.311 will apply. The STD will 

notify potential offerors of the status of all rightof-way issues in the request for proposal 

document. 

[67 FR 75935, Dec. 10, 2002] 

SUBPART D—REAL PROPERTY 

MANAGEMENT 

§ 710.401 GENERAL. 

This subpart describes the acquiring agency's 

responsibilities to control the use of real property 

required for a project in which Federal funds 

participated in any phase of the project. Prior to 

allowing any change in access control or other 

use or occupancy of acquired property along the 

Interstate, the STD shall secure an approval from 

the FHWA for such change or use. The STD 

shall specify in the State's ROW operations 

manual, procedures for the rental, leasing, 

maintenance, and disposal of real property 

acquired with title 23 of the United States Code 

funds. The State shall assure that local agencies 
Real Estate Acquisition Guide For Local Public Agencies  2009

 12BRight‐of‐Way Regulations – 23 CFR 710  153 

follow the State's approved procedures, or the 

local agencies own procedures if approved for 

use by the STD. 

§ 710.403 MANAGEMENT. 

(a) The STD must assure that all real property 

within the boundaries of a federally-aided facility 

is devoted exclusively to the purposes of that 

facility and is preserved free of all other public or 

private alternative uses, unless such alternative 

uses are permitted by Federal regulation or the 

FHWA. An alternative use must be consistent 

with the continued operation, maintenance, and 

safety of the facility, and such use shall not result 

in the exposure of the facility's users or others to 

hazards. 

(b) The STD shall specify procedures in the State 

manual for determining when a real property 

interest is no longer needed. These procedures 

must provide for coordination among relevant 

STD organizational units, including maintenance, 

safety, design, planning, right-of-way, 

environment, access management, and traffic 

operations. 

(c) The STD shall evaluate the environmental 

effects of disposal and leasing actions requiring 

FHWA approval as provided in 23 CFR part 771. 

(d) Acquiring agencies shall charge current fair 

market value or rent for the use or disposal of 

real property interests, including access control, 

if those real property interests were obtained with 

title 23 of the United States Code funding, except 

as provided in paragraphs (d) (1) through (5) of 

this section. Since property no longer needed for 

a project was acquired with public funding, the 

principle guiding disposal would normally be to 

sell the property at fair market value and use the 

funds for transportation purposes. The term fair 

market value as used for acquisition and disposal 

purposes is as defined by State statute and/or 

State court decisions. Exceptions to the general 

requirement for charging fair market value may 

be approved in the following situations: 

(1) With FHWA approval, when the STD clearly 

shows that an exception is in the overall public 

interest for social, environmental, or economic 

purposes; nonproprietary governmental use; or 

uses under 23 U.S.C. 142(f), Public 

Transportation. The STD manual may include 

criteria for evaluating disposals at less than fair 

market value. Disposal for public purposes may 

also be at fair market value. The STD shall 

submit requests for such exceptions to the FHWA 

in writing. 

(2) Use by public utilities in accordance with 23 

CFR part 645. 

(3) Use by Railroads in accordance with 23 CFR 

part 646. 

(4) Use for Bikeways and pedestrian walkways in 

accordance with 23 CFR part 652. 

(5) Use for transportation projects eligible for 

assistance under title 23 of the United States 

Code, provided that a concession agreement, as 

defined in section 710.703, shall not constitute a 

transportation project. 

(e) The Federal share of net income from the sale 

or lease of excess real property shall be used by 

the STD for activities eligible for funding under 

title 23 of the United States Code. Where project 

income derived from the sale or lease of excess 

property is used for subsequent title 23 projects, 

use of the income does not create a Federal-aid 

project. 

(f) No FHWA approval is required for disposal of 

property which is located outside of the limits of 

the right-of-way if Federal funds did not 

participate in the acquisition cost of the property. 

(g) Highway facilities in which Federal funds 

participated in either the right-of-way or 

construction may be relinquished to another 

governmental agency for continued highway use 

under the provisions of 23 CFR 620, subpart B. 

[64 FR 71290, Dec. 21, 1999, as amended at 73 

FR 77503, Dec. 19, 2008] 

§ 710.405 AIR RIGHTS ON THE 

INTERSTATE. 

(a) The FHWA policies relating to management 

of airspace on the Interstate for non-highway 
2009 Real Estate Acquisition Guide For Local Public Agencies 

154 12BRight‐of‐Way Regulations – 23 CFR 710   

purposes are included in this section. Although 

this section deals specifically with approval 

actions on the Interstate, any use of airspace 

contemplated by a STD must assure that such 

occupancy, use, or reservation is in the public 

interest and does not impair the highway or 

interfere with the free and safe flow of traffic as 

provided in 23 CFR 1.23. 

(1) This subpart applies to Interstate facilities 

which received title 23 of the United States Code 

assistance in any way. 

(2) This subpart does not apply to the following: 

(i) Non-Interstate highways. 

(ii) Railroads and public utilities which cross or 

otherwise occupy Federal-aid highway right-ofway. 

(iii) Relocations of railroads or utilities for which 

reimbursement is claimed under 23 CFR part 

140, subparts E and H. 

(iv) Bikeways and pedestrian walkways as 

covered in 23 CFR part 652. 

(b) A STD may grant rights for temporary or 

permanent occupancy or use of Interstate system 

airspace if the STD has acquired sufficient legal 

right, title, and interest in the right-of-way of a 

federally assisted highway to permit the use of 

certain airspace for non-highway purposes; and 

where such airspace is not required presently or 

in the foreseeable future for the safe and proper 

operation and maintenance of the highway 

facility. The STD must obtain prior FHWA 

approval, except for paragraph (c) of this section. 

(c) An STD may make lands and rights-of-way 

available without charge to a publicly owned 

mass transit authority for public transit purposes 

whenever the public interest will be served, and 

where this can be accomplished without 

impairing automotive safety or future highway 

improvements 

(d) An individual, company, organization, or 

public agency desiring to use airspace shall 

submit a written request to the STD. If the STD 

recommends approval, it shall forward an 

application together with its recommendation and 

any necessary supplemental information 

including the proposed airspace agreement to the 

FHWA. The submission shall affirmatively 

provide for adherence to all policy requirements 

contained in this subpart and conform to the 

provisions in the FHWA's Airspace Guidelines 

at: http://www.fhwa.dot.gov/realestate/index.htm. 

§ 710.407 LEASING. 

(a) Leasing of real property acquired with title 23 

of the United States Code, funds shall be covered 

by an agreement between the STD and lessee 

which contains provisions to insure the safety and 

integrity of the federally funded facility. It shall 

also include provisions governing lease 

revocation, removal of improvements at no cost 

to the FHWA, adequate insurance to hold the 

State and the FHWA harmless, 

nondiscrimination, access by the STD and the 

FHWA for inspection, maintenance, and 

reconstruction of the facility. 

(b) Where a proposed use requires changes in the 

existing transportation facility, such changes 

shall be provided without cost to Federal funds 

unless otherwise specifically agreed to by the 

STD and the FHWA. 

(c) Proposed uses of real property shall conform 

to the current design standards and safety criteria 

of the Federal Highway Administration for the 

functional classification of the highway facility in 

which the property is located. 

§ 710.409 DISPOSALS. 

(a) Real property interests determined to be 

excess to transportation needs may be sold or 

conveyed to a public entity or to a private party 

in accordance with §710.403(d). 

(b) Federal, State, and local agencies shall be 

afforded the opportunity to acquire real property 

interests considered for disposal when such real 

property interests have potential use for parks, 

conservation, recreation, or related purposes, and 

when such a transfer is allowed by State law. 

When this potential exists, the STD shall notify 
Real Estate Acquisition Guide For Local Public Agencies  2009

 12BRight‐of‐Way Regulations – 23 CFR 710  155 

the appropriate resource agencies of its intentions 

to dispose of the real property interests. The 

notifications can be accomplished by placing the 

appropriate agencies on the States' disposal 

notification listing. 

(c) Real property interests may be retained by the 

STD to restore, preserve, or improve the scenic 

beauty and environmental quality adjacent to the 

transportation facility. 

(d) Where the transfer of properties to other 

agencies at less than fair market value for 

continued public use is clearly justified as in the 

public interest and approved by the FHWA, the 

deed shall provide for reversion of the property 

for failure to continue public ownership and use. 

Where property is sold at fair market value no 

reversion clause is required. Disposal actions 

described in 23 CFR 710.403(d)(1) for less than 

fair market value require a public interest 

determination and FHWA approval, consistent 

with that section. 

[64 FR 71290, Dec. 21, 1999, as amended at 67 

FR 12863, Mar. 20, 2002] 

SUBPART E—PROPERTY 

ACQUISITION ALTERNATIVES 

§ 710.501 EARLY ACQUISITION. 

 (a) Real property acquisition. The State may 

initiate acquisition of real property at any time it 

has the legal authority to do so based on program 

or project considerations. The State may 

undertake early acquisition for corridor 

preservation, access management, or other 

purposes. 

(b) Eligible costs. Acquisition costs incurred by a 

State agency prior to executing a project 

agreement with the FHWA are not eligible for 

Federal-aid reimbursement. However, such costs 

may become eligible for use as a credit towards 

the State's share of a Federal-aid project if the 

following conditions are met: 

(1) The property was lawfully obtained by the 

State; 

(2) The property was not land described in 23 

U.S.C. 138; 

(3) The property was acquired in accordance with 

the provisions of 49 CFR part 24; 

(4) The State complied with the requirements of 

title VI of the Civil Rights Act of 1964 (42 

U.S.C. 2000d–2000d–4); 

(5) The State determined and the FHWA concurs 

that the action taken did not influence the 

environmental assessment for the project, 

including: 

(i) The decision on need to construct the project; 

(ii) The consideration of alternatives; and 

(iii) The selection of the design or location; and 

(6) The property will be incorporated into a 

Federal-aid project. 

(7) The original project agreement covering the 

project was executed on or after June 9, 1998. 

(c) Reimbursement. In addition to meeting all 

provisions in paragraph (b) of this section, the 

FHWA approval for reimbursement for early 

acquisition costs, including costs associated with 

displacement of owners or tenants, requires the 

STD to demonstrate that: 

(1) Prior to acquisition, the STD made the 

certifications and determinations required by 23 

U.S.C. 108(c)(2)(C) and (D); and 

(2) The STD obtained concurrence from the 

Environmental Protection Agency in the findings 

made under paragraph (b)(5) of this section 

regarding the NEPA process. 
2009 Real Estate Acquisition Guide For Local Public Agencies 

156 12BRight‐of‐Way Regulations – 23 CFR 710   

§ 710.503 PROTECTIVE BUYING AND 

HARDSHIP ACQUISITION. 

(a) General conditions. Prior to the STD 

obtaining final environmental approval, the STD 

may request FHWA agreement to provide 

reimbursement for advance acquisition of a 

particular parcel or a limited number of parcels, 

to prevent imminent development and increased 

costs on the preferred location (Protective 

Buying), or to alleviate hardship to a property 

owner or owners on the preferred location 

(Hardship Acquisition), provided the following 

conditions are met: 

(1) The project is included in the currently 

approved STIP; 

(2) The STD has complied with applicable public 

involvement requirements in 23 CFR parts 450 

and 771; 

(3) A determination has been completed for any 

property subject to the provisions of 23 U.S.C. 

138; and 

(4) Procedures of the Advisory Council on 

Historic Preservation are completed for 

properties subject to 16 U.S.C. 470(f) (historic 

properties). 

(b) Protective buying. The STD must clearly 

demonstrate that development of the property is 

imminent and such development would limit 

future transportation choices. A significant 

increase in cost may be considered as an element 

justifying a protective purchase. 

(c) Hardship acquisitions. The STD must accept 

and concur in a request for a hardship acquisition 

based on a property owner's written submission 

that: 

(1) Supports the hardship acquisition by 

providing justification, on the basis of health, 

safety or financial reasons, that remaining in the 

property poses an undue hardship compared to 

others; and 

(2) Documents an inability to sell the property 

because of the impending project, at fair market 

value, within a time period that is typical for 

properties not impacted by the impending project. 

(d) Environmental decisions. Acquisition of 

property under this section shall not influence the 

environmental assessment of a project, including 

the decision relative to the need to construct the 

project or the selection of a specific location. 

§ 710.505 REAL PROPERTY 

DONATIONS. 

(a) Donations of property being acquired. A nongovernmental owner whose real property is 

required for a Federal-aid project may donate the 

property to the STD. Prior to accepting the 

property, the owner must be informed by the 

agency of his/her right to receive just 

compensation for the property. The owner shall 

also be informed of his/her right to an appraisal 

of the property by a qualified appraiser, unless 

the STD determines that an appraisal is 

unnecessary because the valuation problem is 

uncomplicated and the fair market value is 

estimated at no more than $2500, or the State 

appraisal waiver limit approved by the FHWA, 

whichever is greater. All donations of property 

received prior to the approval of the NEPA 

document must meet environmental requirements 

as specified in 23 U.S.C. 323(d). 

(b) Credit for donations. Donations of real 

property may be credited to the State's matching 

share of the project. Credit to the State's matching 

share for donated property shall be based on fair 

market value established on the earlier of the 

following: either the date on which the donation 

becomes effective, or the date on which equitable 

title to the property vests in the State. The fair 

market value shall not include increases or 

decreases in value caused by the project. 

Donations may be made at anytime during the 

development of a project. The STD shall develop 

sufficient documentation to indicate compliance 

with paragraph (a) of this section and to support 

the amount of credit applied. The total credit 

cannot exceed the State's pro-rata share under the 

project agreement to which it is applied. 

(c) Donations and conveyances in exchange for 

construction features or services. A property 

owner may donate property in exchange for 
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construction features or services. The value of the 

donation is limited to the fair market value of 

property donated less the cost of the construction 

features or services. If the value of the donated 

property exceeds the cost of the construction 

features or services, the difference may be 

eligible for a credit to the State's share of project 

costs. 

§ 710.507 STATE AND LOCAL 

CONTRIBUTIONS. 

(a) General. Real property owned by State and 

local governments incorporated within a federally 

funded project can be used as a credit toward the 

State matching share of total project cost. A 

credit cannot exceed the State's matching share 

required by the project agreement. 

(b) Effective date. Credits can be applied to 

projects where the initial project agreement is 

executed after June 9, 1998. 

(c) Exemptions. Credits are not available for 

lands acquired with any form of Federal financial 

assistance, or for lands already incorporated and 

used for transportation purposes. 

(d) State contributions. Real property acquired 

with State funds and required for federallyassisted projects may support a credit toward the 

non-Federal share of project costs. The STD must 

prepare documentation supporting all credits 

including: 

(1) A certification that the acquisition satisfied 

the conditions in 23 CFR 710.501(b); and 

(2) Justification of the value of credit applied. 

Acquisition costs incurred by the State to acquire 

title can be used as justification for the value of 

the real property. 

(e) Credit for local government contributions. A 

contribution by a unit of local government of real 

property which is offered for credit, in 

connection with a project eligible for assistance 

under this title, shall be credited against the State 

share of the project at fair market value of the 

real property. Property may also be presented for 

project use with the understanding that no credit 

for its use is sought. The STD shall assure that 

the acquisition satisfied the conditions in 23 CFR 

710.501(b), and that documentation justifies the 

amount of the credit. 

§ 710.509 FUNCTIONAL 

REPLACEMENT OF REAL PROPERTY 

IN PUBLIC OWNERSHIP. 

(a) General. When publicly owned real property, 

including land and/or facilities, is to be acquired 

for a Federal-aid highway project, in lieu of 

paying the fair market value for the real property, 

the State may provide compensation by 

functionally replacing the publicly owned real 

property with another facility which will provide 

equivalent utility. 

(b) Federal participation. Federal-aid funds may 

participate in functional replacement costs only 

if: 

(1) Functional replacement is permitted under 

State law and the STD elects to provide it. 

(2) The property in question is in public 

ownership and use. 

(3) The replacement facility will be in public 

ownership and will continue the public use 

function of the acquired facility. 

(4) The State has informed the agency owning 

the property of its right to an estimate of just 

compensation based on an appraisal of fair 

market value and of the option to choose either 

just compensation or functional replacement. 

(5) The FHWA concurs in the STD determination 

that functional replacement is in the public 

interest. 

(6) The real property is not owned by a utility or 

railroad. 

(c) Federal land transfers. Use of this section for 

functional replacement of real property in Federal 

ownership shall be in accordance with Federal 

land transfer provisions in subpart F of this part. 
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158 12BRight‐of‐Way Regulations – 23 CFR 710   

(d) Limits upon participation. Federal-aid 

participation in the costs of functional 

replacement are limited to costs which are 

actually incurred in the replacement of the 

acquired land and/or facility and are: 

(1) Costs for facilities which do not represent 

increases in capacity or betterments, except for 

those necessary to replace utilities, to meet legal, 

regulatory, or similar requirements, or to meet 

reasonable prevailing standards; and 

(2) Costs for land to provide a site for the 

replacement facility. 

(e) Procedures. When a State determines that 

payments providing for functional replacement of 

public facilities are allowable under State law, 

the State will incorporate within the State's ROW 

operating manual full procedures covering review 

and oversight that will be applied to such cases. 

§ 710.511 TRANSPORTATION 

ENHANCEMENTS. 

(a) General. Section 133(b) (8) of title 23 of the 

United States Code authorizes the expenditure of 

surface transportation funds for transportation 

enhancement activities (TEA). Transportation 

enhancement activities which involve the 

acquisition, management, and disposition of real 

property, and the relocation of families, 

individuals, and businesses, are governed by the 

general requirements of the Federal-aid program 

found in titles 23 and 49 of the Code of Federal 

Regulations (CFR), except as specified in 

paragraph (b)(3) of this section. 

(b) Requirements. (1) Displacements for TEA are 

subject to the Uniform Act. 

(2) Acquisitions for TEA are subject to the 

Uniform Act except as provided in paragraphs 

(b)(3), (b)(4), and (b)(5) of this section. 

(3) Entities acquiring real property for TEA who 

lack the power of eminent domain may comply 

with the Uniform Act by meeting the limited 

requirements under 49 CFR 24.101(a)(2). 

(4) The requirements of the Uniform Act do not 

apply when real property acquired for a TEA was 

purchased from a third party by a qualified 

conservation organization, and— 

(i) The conservation organization is not acting on 

behalf of the agency receiving TEA or other 

Federal-aid funds, and 

(ii) There was no Federal approval of property 

acquisition prior to the involvement of the 

conservation organization. [“Federal approval of 

property acquisition” means the date of the 

approval of the environmental document or 

project authorization/agreement, whichever is 

earlier. “Involvement of the conservation 

organization” means the date the organization 

makes a legally binding offer to acquire a real 

property interest, including an option to purchase, 

in the property.] 

(5) When a qualified conservation organization 

acquires real property for a project receiving 

Federal-aid highway funds on behalf of an 

agency with eminent domain authority, the 

requirements of the Uniform Act apply as if the 

agency had acquired the property itself. 

(6) When, subsequent to Federal approval of 

property acquisition, a qualified conservation 

organization acquires real property for a project 

receiving Federal-aid highway funds, and there 

will be no use or recourse to the power of 

eminent domain, the limited requirements of 49 

CFR 24.101(a)(2) apply. 

(c) Property management. Real property acquired 

with TEA funds shall be managed in accordance 

with the property management requirements 

provided in subpart D of this part. Any use of the 

property for purposes other than that for which 

the TEA funds were provided must be consistent 

with the continuation of the original use. When 

the original use of the real property is converted 

by sale or lease to another use inconsistent with 

the original use, the STD shall assure that the fair 

market value or rent is charged and the proceeds 

reapplied to projects eligible under title 23 of the 

United States Code. 
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§ 710.513 ENVIRONMENTAL 

MITIGATION. 

 (a) The acquisition and maintenance of land for 

wetlands mitigation, wetlands banking, natural 

habitat, or other appropriate environmental 

mitigation is an eligible cost under the Federalaid program. FHWA participation in wetland 

mitigation sites and other mitigation banks is 

governed by 23 CFR part 777. 

(b) Environmental acquisitions or displacements 

by both public agencies and private parties are 

covered by the Uniform Act when they are the 

result of a program or project undertaken by a 

Federal agency or one that receives Federal 

financial assistance. This includes real property 

acquired for a wetland bank, or other 

environmentally related purpose, if it is to be 

used to mitigate impacts created by a Federal-aid 

highway project 

. 

SUBPART F—FEDERAL ASSISTANCE 

PROGRAMS 

§ 710.601 FEDERAL LAND 

TRANSFER. 

(a) The provisions of this subpart apply to any 

project undertaken with funds for the National 

Highway System. When the FHWA determines 

that a strong Federal transportation interest exists, 

these provisions may also be applied to highway 

projects that are eligible for Federal-aid under 

Chapters 1 and 2 of title 23, of the United States 

Code, and to highway-related transfers that are 

requested by a State in conjunction with a 

military base closure under the Defense Base 

Closure and Realignment Act of 1990 (Public 

Law 101–510, 104 Stat. 1808, as amended). 

(b) Sections 107(d) and 317 of title 23, of the 

United States Code provide for the transfer of 

lands or interests in lands owned by the United 

States to an STD or its nominee for highway 

purposes. 

(c) The STD may file an application with the 

FHWA, or can make application directly to the 

land-owning agency if the land-owning agency 

has its own authority for granting interests in 

land. 

(d) Applications under this section shall include 

the following information: 

(1) The purpose for which the lands are to be 

used; 

(2) The estate or interest in the land required for 

the project; 

(3) The Federal-aid project number or other 

appropriate references; 

(4) The name of the Federal agency exercising 

jurisdiction over the land and identity of the 

installation or activity in possession of the land; 

(5) A map showing the survey of the lands to be 

acquired; 

(6) A legal description of the lands desired; and 

(7) A statement of compliance with the National 

Environmental Policy Act of 1969 (42 U.S.C. 

4332, et seq. ) and any other applicable Federal 

environmental laws, including the National 

Historic Preservation Act (16 U.S.C. 470(f)), and 

23 U.S.C. 138. 

(e) If the FHWA concurs in the need for the 

transfer, the land-owning agency will be notified 

and a right-of-entry requested. The land-owning 

agency shall have a period of four months in 

which to designate conditions necessary for the 

adequate protection and utilization of the reserve 

or to certify that the proposed appropriation is 

contrary to the public interest or inconsistent with 

the purposes for which such land or materials 

have been reserved. The FHWA may extend the 

four-month reply period at the timely request of 

the land-owning agency for good cause. 

(f) Deeds for conveyance of lands or interests in 

lands owned by the United States shall be 

prepared by the STD and certified by an attorney 

licensed within the State as being legally 

sufficient. Such deeds shall contain the clauses 

required by the FHWA and 49 CFR 21.7(a)(2). 
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160 12BRight‐of‐Way Regulations – 23 CFR 710   

After the STD prepares the deed, it will submit 

the proposed deed with the certification to the 

FHWA for review and execution. 

(g) Following execution, the STD shall record the 

deed in the appropriate land record office and so 

advise the FHWA and the concerned agency. 

(h) When the need for the interest acquired under 

this subpart no longer exists, the STD must 

restore the land to the condition which existed 

prior to the transfer and must give notice to the 

FHWA and to the concerned Federal agency that 

such interest will immediately revert to the 

control of the Federal agency from which it was 

appropriated or to its assigns. Alternative 

arrangements may be made for the sale or 

reversion or restoration of the lands no longer 

required as part of a memorandum of 

understanding or separate agreement. 

§ 710.603 DIRECT FEDERAL 

ACQUISITION. 

(a) The provisions of this section apply to any 

land and or improvements needed in connection 

with any project on the Interstate System, defense 

access roads, public lands highways, park roads, 

parkways, Indian reservation roads, and projects 

performed by the FHWA in cooperation with 

Federal and State agencies. For projects on the 

Interstate System and defense access roads, the 

provisions of this part are applicable only where 

the State is unable to acquire the required rightof-way or is unable to obtain possession with 

sufficient promptness. 

(b) To enable the FHWA to make the necessary 

finding to proceed with the acquisition of the 

rights-of-way, the STDs written application for 

Federal acquisition shall include: 

(1) Justification for the Federal acquisition of the 

lands or interests in lands; 

(2) The date the FHWA authorized the STD to 

commence right-of-way acquisition, the date of 

the project agreement and a statement that the 

agreement contains the provisions required by 25 

U.S.C. 111; 

(3) The necessity for acquisition of the particular 

lands under request; 

(4) A statement of the specific interests in lands 

to be acquired, including the proposed treatment 

of control of access; 

(5) The STDs intentions with respect to the 

acquisition, subordination, or exclusion of 

outstanding interests, such as minerals and utility 

easements, in connection with the proposed 

acquisition; 

(6) A statement on compliance with the 

provisions of part 771 of this chapter; 

(7) Adequate legal descriptions, plats, appraisals, 

and title data; 

(8) An outline of the negotiations which have 

been conducted by the STD with landowners; 

(9) An agreement that the STD will pay its pro 

rata share of costs incurred in the acquisition of, 

or the attempt to acquire rights-of-way; and 

(10) A statement that assures compliance with the 

applicable provisions of the Uniform Act. (42 

U.S.C. 4601, et seq. ) 

(c) If the landowner tenders a right-of-entry or 

other right of possession document required by 

State law any time before the FHWA makes a 

determination that the STD is unable to acquire 

the rights-of-way with sufficient promptness, the 

STD is legally obligated to accept such tender 

and the FHWA may not proceed with Federal 

acquisition. 

(d) If the STD obtains title to a parcel prior to the 

filing of the Declaration of Taking, it shall notify 

the FHWA and immediately furnish the 

appropriate U.S. Attorney with a disclaimer 

together with a request that the action against the 

landowner be dismissed (ex parte) from the 

proceeding and the estimated just compensation 

deposited into the registry of the court for the 

affected parcel be withdrawn after the 

appropriate motions are approved by the court. 
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(e) When the United States obtains a court order 

granting possession of the real property, the 

FHWA shall authorize the STD to take over 

supervision of the property. The authorization 

shall include, but need not be limited to, the 

following: 

(1) The right to take possession of unoccupied 

properties; 

(2) The right to give 90 days notice to owners to 

vacate occupied properties and the right to take 

possession of such properties when vacated; 

(3) The right to permit continued occupancy of a 

property until it is required for construction and, 

in those instances where such occupancy is to be 

for a substantial period of time, the right to enter 

into rental agreements, as appropriate, to protect 

the public interest; 

(4) The right to request assistance from the U.S. 

Attorney in obtaining physical possession where 

an owner declines to comply with the court order 

of possession; 

(5) The right to clear improvements and other 

obstructions; 

(6) Instructions that the U.S. Attorney be notified 

prior to actual clearing, so as to afford him an 

opportunity to view the lands and improvements, 

to obtain appropriate photographs, and to secure 

appraisals in connection with the preparation of 

the case for trial; 

(7) The requirement for appropriate credits to the 

United States for any net salvage or net rentals 

obtained by the State, as in the case of right-ofway acquired by the State for Federal-aid 

projects; and 

(8) Instructions that the authority granted to the 

STD is not intended to preclude the U.S. 

Attorney from taking action, before the STD has 

made arrangements for removal, to reach a 

settlement with the former owner which would 

include provision for removal. 

(f) If the Federal Government initiates 

condemnation proceedings against the owner of 

real property in a Federal court and the final 

judgment is that the Federal agency cannot 

acquire the real property by condemnation, or the 

proceeding is abandoned, the court is required by 

law to award such a sum to the owner of the real 

property that in the opinion of the court provides 

reimbursement for the owner's reasonable costs, 

disbursements, and expenses, including 

reasonable attorney, appraisal, and engineering 

fees, actually incurred because of the 

condemnation proceedings. 

(g) As soon as practicable after the date of 

payment of the purchase price or the date of 

deposit in court of funds to satisfy the award of 

the compensation in a Federal condemnation, the 

FHWA shall reimburse the owner to the extent 

deemed fair and reasonable, the following costs: 

(1) Recording fees, transfer taxes, and similar 

expenses incidental to conveying such real 

property to the United States; 

(2) Penalty costs for prepayment of any 

preexisting recorded mortgage entered into in 

good faith encumbering such real property; and 

(3) The pro rata portion of real property taxes 

paid which are allocable to a period subsequent 

to the date of vesting title in the United States or 

the effective date of possession, whichever is the 

earlier. 

(h) The lands or interests in lands, acquired under 

this section, will be conveyed to the State or the 

appropriate political subdivision thereof, upon 

agreement by the STD, or said subdivision to: 

(1) Maintain control of access where applicable; 

(2) Accept title thereto; 

(3) Maintain the project constructed thereon; 

(4) Abide by any conditions which may set forth 

in the deed; and 

(5) Notify the FHWA at the appropriate time that 

all the conditions have been performed by the 

State. 
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162 12BRight‐of‐Way Regulations – 23 CFR 710   

(i) The deed from the United States to the State, 

or to the appropriate political subdivision thereof, 

shall include the conditions required by 49 CFR 

part 21. The deed shall be recorded by the 

grantee in the appropriate land record office, and 

the FHWA shall be advised of the recording date. 

SUBPART G—CONCESSION 

AGREEMENTS 

Authority: 23 U.S.C. 156 and 315; 23 CFR 

1.32; 49 CFR 1.48.

Source: 73 FR 77503, Dec. 19, 2008, unless 

otherwise noted.

§ 710.701 PURPOSE. 

The purpose of this subpart is to prescribe the 

standards that ensure fair market value is 

received by a highway agency under concession 

agreements involving federally funded highways. 

§ 710.703 DEFINITIONS. 

As used in this subpart: 

(a) Best value means the proposal offering the 

most overall public benefits as determined 

through an evaluation of the amount of the 

concession payment and other appropriate 

considerations. Such other appropriate 

considerations may include, but are not limited 

to, qualifications and experience of the 

concessionaire, expected quality of services to be 

provided, the history or track record of the 

concessionaire in providing the services, 

timelines for the delivery of services, 

performance standards, complexity of the 

services to be rendered, and revenue sharing. 

Such appropriate considerations may also 

include, but are not limited to, policy 

considerations that are important, but not 

quantifiable, such as retaining the ability to 

amend the concession agreement if conditions 

change, having a desired level of oversight over 

the facility, ensuring a certain level of 

maintenance and operations for the facility, 

considerations relative to the structure and 

amount of the toll rates, economic development 

impacts and considerations, or social and 

environmental benefits and impacts. 

(b) Concession agreement means an agreement 

between a highway agency and a concessionaire 

under which the concessionaire is given the right 

to operate and collect revenues or fees for the use 

of a federally funded highway in return for 

compensation to be paid to the highway agency. 

A concession agreement may include, but not be 

limited to, obligations concerning the 

development, design, construction, maintenance, 

operation, level of service, and/or capital 

improvements to a facility over the term of the 

agreement. Concession agreement shall not 

include agreements between government entities, 

even when compensation is paid, where the 

primary purpose of the transaction is not 

commercial in nature but for the purpose of 

determining governmental ownership, control, 

jurisdiction, or responsibilities with respect to the 

operation of a federally funded highway. The 

highway agency's determination as to whether an 

agreement between government entities 

constitutes a concession agreement shall be 

controlling. 

(c) Concessionaire means any private or public 

entity that enters into a concession agreement 

with a highway agency. 

(d) Fair market value means the price at which a 

highway agency and concessionaire are ready 

and willing to enter into a concession agreement 

for a federally funded highway on, or as if in, the 

open market for a reasonable period of time and 

in an arm's length transaction to any willing, 

knowledgeable, and able buyer. For purposes of 

this subpart, a concession agreement based on 

best value shall be deemed fair market value. 

(e) Federally funded highway means any 

highway (including highways, bridges, and 

tunnels) acquired with Federal assistance made 

available from the Highway Trust Fund (other 

than the Mass Transit Account). A highway shall 

be deemed to be acquired with Federal assistance 

if Federal assistance participated in either the 

purchase of any real property, or in any capital 

expenditures in any fixtures located on real 
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property, within the right-of-way, including the 

highway and any structures located upon the 

property. 

(f) Highway agency means any State 

transportation department or other public 

authority with jurisdiction over a federally 

funded highway. 

§ 710.705 APPLICABILITY. 

This subpart applies to all concession agreements 

involving federally funded highways that are 

executed after January 18, 2009. 

§ 710.707 FAIR MARKET VALUE. 

A highway agency shall receive fair market value 

for any concession agreement involving a 

federally funded highway. 

§ 710.709 DETERMINATION OF FAIR 

MARKET VALUE. 

(a) Fair market value may be determined either 

on a best value basis, highest net present value of 

the payments to be received over the life of the 

agreement, or highest bid received, as may be 

specified by the highway agency in the request 

for proposals or other relevant solicitation. If best 

value is used, the highway agency should 

identify, in the relevant solicitation, the criteria to 

be used as well as the weight afforded to the 

criteria. 

(b) In order to be considered fair market value, 

the terms of the concession agreement must be 

both legally binding and enforceable. 

(c) Any concession agreement awarded pursuant 

to a competitive process with more than one 

bidder shall be deemed to be fair market value. 

Any concession agreement awarded pursuant to a 

competitive process with only one bidder shall be 

presumed to be fair market value. Such 

presumption may be overcome only if the 

highway agency determines the proposal to not 

be fair market value based on the highway 

agency's estimates. Nothing in this subpart shall 

be construed to require a highway agency to 

accept any proposal, even if the proposal is 

deemed fair market value. For purposes of this 

subsection, a competitive process shall afford all 

interested proposers an equal opportunity to 

submit a proposal for the concession agreement 

and shall comply with applicable State and local 

law. 

(d) If a concession agreement is not awarded 

pursuant to a competitive process, the highway 

agency must receive fair market value, as 

determined by the highway agency in accordance 

with State law, so long as an independent third 

party assessment is conducted and made publicly 

available. 

(e) Nothing in this subpart is intended to waive 

the requirements of Part 172, Part 635, and Part 

636 whenever any Federal-aid (including TIFIA 

assistance) is to be used for a project under the 

concession agreement. 
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NOTES: