Companion Guide to Video August 2012

www.fhwa.dot.gov/federal-aidessentials

Right-of-Way

Introduction to Right-of-Way 

Requirements and the Uniform Act

All project right-of-way requirements must be met when Federalaid is used

If a local public agency needs to acquire vacant 

property, or property improved with a home or 

business to construct a Federal-aid project, the 

local public agency (LPA) must follow a process 

for acquiring that property. Federal right-of-way

requirements apply if Federal dollars are used to 

fund any phase of the project. Failing to meet the 

right-of-way requirements can jeopardize your 

project from being eligible to receive Federal 

funds. For this reason, it’s important to know the 

Federal requirements and when they apply.

When an agency acquires property for a Federalaid project, right-of-way requirements are in place 

to provide benefits, protection, and payment of just

compensation. When a project displaces an 

individual, family, business, farm or non-profit 

organization, additional services and payments 

are required. 

The Uniform Relocation Assistance and Real 

Property Acquisition Policies Act of 1970, 

otherwise known as the Uniform Act, is the 

primary, but not exclusive, law for right-of-way 

related acquisition and relocation activities on 

Federal-aid projects. The Uniform Act establishes 

the requirements and procedures that you, as an 

LPA, must follow when Federal dollars are used to 

fund a project. 

The Uniform Act consists of 

three titles or parts:

• Title I, the General 

Provisions, contains 

definitions and eligibility

criteria for displaced persons.

• Title II addresses relocation assistance. This 

part contains housing payments for owners 

and tenants and assures that displaced 

persons are provided with comparable 

replacement housing prior to displacement. 

This section also covers moving and related 

expenses, as well as relocation planning and 

advisory services.

• Title III establishes the policy and 

requirements for acquiring property on 

Federal-aid projects. In this section, standards 

are set for appraisals, offers, negotiations, 

payment, possession, settlement, and other 

equitable considerations.

The Uniform Act and right-of-way requirements 

apply any time an agency seeks to acquire real 

property to make way for the 

construction of a Federal-aid 

project. Real property is a term 

that is used to describe land or 

improvements to land, fee 

interests, easements, air or 

access rights, or the rights to 

control the use of land, such as 

leases. 
Federal-aid Essentials for Local Public Agencies

For example, an agency might ask a property 

owner to convey a temporary or permanent 

easement in order to construct a project. When 

agencies acquire temporary or permanent 

easements from a property owner, that agency 

is acquiring real property interests, which is 

considered right-of-way. Because this is a 

Federal-aid project, the Uniform Act and right-ofway requirements would apply.

In order to comply with right-of-way-related 

requirements on Federal-aid projects, you must 

understand when to follow the requirements. 

The Uniform Act requirements apply:

• Any time real property or interests in real 

property is required for a project and the 

agency chooses to use Federal-aid funds in 

any phase of the project. 

• Any time people or businesses are 

displaced by a project and the agency 

chooses to use Federal funds for any phase 

of that project. 

These requirements 

must not be overlooked 

in a situation where a 

project does not use 

Federal funding until the 

construction phase. For 

example, many agencies 

use local money to fund 

the design and right-ofway phases of a project. Upon reaching the 

construction phase of the project, a request for 

Federal assistance is made. The project would 

be eligible for Federal funds provided the 

agency complied with the requirements of the 

Uniform Act during the right-of-way phase of the 

project. 

Now that we understand when right-of-way 

requirements are applicable, let’s review the 

right-of-way procedures that an agency needs to 

follow. These procedures ultimately determine 

just compensation. 

If it is determined that real 

property is needed to 

construct the project, the 

appropriate right-of-way 

procedures should be 

followed. Here is an 

overview of the primary 

steps an agency must follow to meet the 

requirements of the Uniform Act: 

First, you must determine the fair market value 

of the property being acquired. Next, you must 

offer just compensation and negotiate the 

acquisition of the property or property interests. 

Finally, after acquiring the property, the agency 

must provide relocation assistance to those who 

are displaced. 

If all attempts to negotiate an agreement to 

acquire property fail, it may be necessary for 

your agency to exercise the power of eminent 

domain. Property acquired through eminent 

domain means the government uses its power to 

acquire private property for a public use. Each 

State has specific laws governing condemnation 

procedures. Make sure you are familiar with 

your State’s requirements. 

The Uniform Act is the primary law for right-ofway related acquisition and relocation activities 

on federally assisted projects. Right-of-way 

requirements are applicable if an agency 

chooses to accept Federal funds for any phase 

of a project that acquires real property or 

displaces people or businesses. State 

departments of transportation play a vital role in 

the right-of-way process on Federal-aid projects, 

and they are available to provide assistance 

when you have questions concerning right-ofway and the Uniform Act. 
Federal-aid Essentials for Local Public Agencies

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• Link to Real Estate Acquisition Guide For Local Public Agencies

http://www.fhwa.dot.gov/realestate/lpaguide/

• Information on right-of-way-related topics

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

• Information covering Uniform Act regulations and guidance

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

• Information covering real property acquisition for Federal-aid projects

http://www.fhwa.dot.gov/realestate/realprop/index.html

• Information on how to properly manage right-of-way on Federal-aid projects

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