Companion Guide to Video August 2012

www.fhwa.dot.gov/federal-aidessentials

For local public agencies, or LPAs, pursuing 

transportation projects, acquiring property to 

establish the right-of-way is a critical project 

component. 

Managing these properties 

appropriately, both before and after 

construction, is vital to protecting 

the public’s investment and 

preserving Federal funding.

To understand Federal requirements for 

managing right-of-way properties, let’s look at 

the fictional community of Auburn Plains. 

The city plans to widen and add shoulders to

this stretch of Highway 50 for safety and to 

accommodate growing traffic demands. The 

city plans to increase the right-of-way, which 

will result in the purchase improvements 

along the proposed highway. 

Since the city will use Federal funds 

to acquire the right-of-way, the city 

needs to meet certain requirements 

before and after construction.

Keeping detailed, accurate records is 

important to effective property management 

before construction begins. 

The city needs to create and maintain an 

inventory of all the property it plans to acquire 

for the project. 

This inventory should include all land and 

improvements, such as buildings, machinery, 

equipment and fixtures. 

Once the properties are acquired, the city will 

update the inventory as changes occur.

Right-of-Way

Property Management 

Properly acquiring and managing property for project right-of-way 

is vital to protecting the public's investment and securing Federalaid funding
Federal-aid Essentials for Local Public Agencies

The city will have to clear the right-of-way of 

improvements for construction. 

But first, the city notifies all owners and 

tenants of the affected property. Then the city 

ensures that all displaced people will be 

relocated to comparable properties that are 

decent, safe, and sanitary.

Auburn Plains monitors acquired 

properties to ensure they are safe 

and secure by providing pest control, 

preventing vandalism or theft, and ensuring 

that the property is not used for illegal 

activities, such as dumping or squatting.

Once property owners and tenants have been 

relocated, Auburn Plains will clear the right-ofway for construction while protecting 

environmentally sensitive areas. 

The city can either issue a demolition contract 

in the right-of-way phase of the project, or 

include the clearing of the right-of- way as a 

part of the construction contract.

After construction is completed, the city must 

meet requirements for the long-term 

management of the property by fulfilling any 

right-of-way commitments made during the 

environmental review process.

Auburn Plains continues to maintain a detailed 

inventory of the acquired properties, including 

all real property and improvements that were 

surplus to the needs of the finished project. 

Sometimes a local public agency will finish the 

construction project and have a remnant of a 

property as surplus.

After construction, the agency then identifies 

and inventories any surplus property. 

If the LPA decides to sell the 

properties, it should contact its State 

department of transportation (State 

DOT) for guidance and note any 

money received from the sales must 

be applied to a Federal-aid eligible 

transportation project.

Finally, Auburn Plains will continue to provide 

adequate maintenance and security for the 

properties, and ensure that the properties are 

fully devoted to the transportation project and 

no other purpose.

For Auburn Plains – and all LPAs – managing 

right-of-way properties appropriately is vital to 

protect the public’s investment and to secure 

Federal-aid. For additional information on 

property management activities, and guidance 

regarding the management of excess property, 

contact your State DOT. 
Federal-aid Essentials for Local Public Agencies

The content of this 

document is not a 

substitute for 

information obtained 

from State departments 

of transportation, 

appropriate FHWA 

Division Offices, and 

applicable laws. 

Scenarios have been 

simplified for emphasis 

and do not necessarily 

reflect the actual range of 

requirements applicable 

to the scenario or this 

topic. This document

was created under 

contract number 

DTFH63-11-F-00026 by 

the Federal Highway 

Administration, U.S. 

Department of 

Transportation, and is 

offered to the public to 

heighten and focus 

awareness of Federal-aid 

requirements within the 

local public agencies 

community and 

reinforces the 

importance of these 

necessary policies, 

procedures, and 

practices.

This Companion Resource 

is the script content for 

the video production of 

the same name. 

Additional Resources

• Information addressing property management of highway airspace

http://www.fhwa.dot.gov/realestate/pdg12.htm