Companion Guide to Video August 2012

www.fhwa.dot.gov/federal-aidessentials

Right-of-Way

Project Development

Many highway projects 

require the acquisition of 

property rights for the 

project’s right-of-way. 

Right-of-way activities 

may occur during any 

phase of the project 

development process, 

which includes the planning, National 

Environmental Policy Act (NEPA) review, 

design, right-of-way, and construction program 

areas. These phases often overlap, and right-ofway regulations govern the right-of-way activities 

that occur in these program areas.

Since each project is unique and laws vary from 

State to State, understanding your State laws 

and the Federal regulations before you start 

your project development process will help to 

ensure a successful project. Let’s look at the 

project development process to see how rightof-way activities may be involved.

During the planning phase, an agency identifies 

the need and purpose for a project and 

determines its feasibility. A project’s feasibility is 

based on input from transportation planners, 

engineers, right-of-way specialists, 

environmental specialists, and the public.

An agency must also determine what priority to 

give a project and how to support it financially.

Often the project’s preliminary engineering 

phase will begin before the planning phase is 

complete.

The NEPA process is one of the main activities

of the preliminary engineering phase to assess 

the project’s environmental impacts and obtain 

Federal Highway Administration (FHWA)

approval of the project’s environmental 

document. To be eligible for Federal right-of-way 

funding, a project must be consistent with the 

long-range plans that provide a comprehensive 

blueprint for State transportation needs 20 years 

into the future.

Depending on whether the project is located in a 

rural or urban area, these long-range plans may 

include the Metropolitan Transportation Plan and 

Statewide Transportation Plan, both of which 

prioritize projects and consider all factors that 

may impact future transportation. In addition, 

two short-range programs -- the Statewide 

Transportation Improvement Program (STIP) 

and the Transportation Improvement Program 

(TIP), include State projects that are expected to 

receive Federal funding within the next four 

years. Your agency needs to verify that your 

project is included in its metropolitan area’s TIP.

Following all Federal and State regulations governing right-ofway acquisitions helps ensure a successful project
Federal-aid Essentials for Local Public Agencies

The project design phase includes completing 

surveys, preparing right-of-way plans or maps, 

and performing cost estimates. Once an 

Authorization to Proceed is given, right-of-way 

activities can begin.

When the design is sufficiently complete, an 

agency can appraise, negotiate, and acquire all 

of the necessary properties and ensure that all 

displaced landowners and tenants are 

appropriately relocated. Before construction 

begins, the agency must secure, clear, and 

properly manage the acquired properties.

The agency must also issue a right-of-way 

certification before construction can begin. This 

certification states that all properties needed for 

the construction, operation and maintenance of 

the project have been acquired and that all 

affected or displaced persons, businesses, and 

farms are relocated to safe and sanitary 

facilities.

In addition, the certification verifies that the 

agency complies with the Uniform Act and all 

relevant Federal regulations and State laws. 

Once the State accepts the certification, the 

agency can proceed to advertise the project for 

construction bids.

After construction, properties that are no longer 

needed for the project can be offered for sale or 

lease in accordance with the Federal 

regulations. 

To see how one city works through the right-ofway acquisition process, let’s look at an example 

of a city called Smithville.

To relieve congestion on its secondary roads, 

the city identified that it needed to extend a sixlane highway from downtown to the suburbs.

In the planning phase of the project, the city 

assessed the feasibility of the project, 

determined a funding mechanism, and ensured 

that the project was consistent with the State 

and metropolitan area’s transportation plans and 

programs, and completed the NEPA process. 

Because the project required Federal funding for 

the right-of-way, the city is following Federal 

regulations and State statutes.

In the design phase, Smithville completed the 

surveys, prepared right-of-way plans, performed 

cost estimates, and determined which properties 

to acquire for the project. The city then sent a 

request to the State DOT to proceed.

After obtaining the authorization to proceed, 

Smithville began acquiring the right-of-way 

properties and relocated landowners and 

tenants according to Federal and State laws and 

regulations. The city managed all the acquired 

properties to ensure they were safe and secure.

Before construction began, Smithville issued a 

right-of-way certification verifying that all the 

necessary properties for the construction, 

operation and maintenance of the project were 

acquired, and that all affected homeowners and 

businesses were relocated. Once the State 

accepted the right-of-way certification statement, 

the city could advertise for construction bids for

the project.

After construction of the highway extension was 

complete, Smithville determined that it no longer 

needed some project properties and could offer 

them for sale following the Federal regulations.

We have seen that right-of-way acquisition is a 

key component of project development and 

right-of-way project activities may occur at any 

time during the project development process. By 

following all Federal, and State regulations that 

govern right-of-way activities, your agency can 
Federal-aid Essentials for Local Public Agencies

help ensure that a project’s acquisition costs can 

remain eligible for Federal funding.

The staff at your State department of 

transportation is available to provide information 

about right-of-way project development and 

administration, and offer guidance.
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-D-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

• Regulations pertaining to project development, real property 

management, property acquisition alternatives

http://www.ecfr.gov/cgi/t/text/textidx?c=ecfr&tpl=/ecfrbrowse/Title23/23cfr710_main_02.tpl

• Regulation pertaining to uniform relocation assistance and real property 

acquisition 

http://www.ecfr.gov/cgi/t/text/textidx?c=ecfr;sid=5f90caab488da5f817086e999d972d33;rgn=div5;view=text;n

ode=49%3A1.0.1.1.18;idno=49;cc=ecfr

• Real Estate Acquisition Guide for LPAs 

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

• Description of free FHWA Web-based training for LPA real estate 

acquisition 

http://www.nhi.fhwa.dot.gov/training/course_detail.aspx?num=FHWANHI141047&cat=&key=&num=&loc=&sta=%25&typ=3&ava=1&str=&end=&tit

=&lev=&=drl