RIGHT OF WAY LIFE CYCLE
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1 EXPEDITING THE RIGHT OF WAY PROCESS
2 RIGHT OF WAY LIFE CYCLE Right of Way planning begins during the Feasibility Phase of a project. Determining the magnitude of the Right of Way Phase allows the LDOTD Real Estate Section to allocate resources to the project upon receiving FHWA Authorization
3 RIGHT OF WAY LIFE CYCLE
4 INCOMPRESSIBLE TIMELINES Property owners rights are protected by Federal and State Laws, State Policy and Procedure, and LADOTD s Real Estate Operations Manual.
5 RIGHT OF WAY ACQUISITION PROCESS
6 P R E - A C Q U I S I T I O N A C T I V I T I E S
7 RETAINER CONTRACTS Competitive selection to retain Right of Way consultants for all specialties. Appraisers and Specialty Valuation Consultants Title Abstractors Negotiation and Relocation Agents Asbestos Inspectors
8 TASK ORDERS SECONDARY SELECTION PROCESS Consultants are selected from our list of firms with Retainer Contracts Consultants are sent a query with project specific information and a list of questions Are you interested? Can you meet or beat our timeline? What is your relevant experience? Interested consultants who can meet our timeline are scored based on their relevant experience.
9 TASK ORDERS - CONTINUED The final selection is based on scores for: Relevant Experience Current Right of Way projects in progress Projects awarded within the past twelve months Past performance scores from the previous three years Expedited timeline if applicable Notice to Proceed is sent within two weeks of the request for a consultant.
10 TITLE RESEARCH Property rights are researched prior to FHWA authorization of the Right of Way Phase of the project. Determines which property rights must be acquired and who currently holds those property rights.
11 QUESTIONS?
12 A P P R A I S A L
13
14 How can we assist Employees and Associates of Engineering Firms, Management Companies, Public Real Estate Agency Managers, and other firms. Expedite the Appraisal of Property For Real Estate Acquisition
15 Over the past 30+ years of Appraising Reviewing Appraisals Setting up Appraisal Projects Reviewing Appraisal Plans Several factors have been found to expedite the process and avoid delays
16 EXPEDITING THE APPRAISAL PROCESS PROJECT PL ANNING PRIOR TO APPRAISAL ACTIVITIES AND AREAS THAT MAY CAUSE DEL AYS The Review Appraiser should make visits to the project in order to provide recommendations that may reduce acquisition cost. Current Title Data Title Data that is outdated results in map changes late in the appraisal process Current Right of Way Maps Right of Way Maps need to reflect any new title data, so as to eliminate map changes late in the appraisal process
17 PREPARATION OF A PROJECT COST ESTIMATE The appraisal unit provides a Cost Estimate in order to determine the anticipated cost of the project. The Project Cost Estimate should contain: The estimated cost of the land and improvements in the right of way Potential damages Relocation costs Consultant service fees Legal fees
18 CONSULTANT SCOPE OF WORK The scope of work is prepared by the Review Appraiser outlining each appraiser s assignment. Acquisition Types Partial acquisition remainder unaffected Partial acquisition remainder is affected (before and after appraisal) Total acquisition The scope of work should show the parcels requiring relocation. The scope of work should show the appraisers and any specialty consultants and their fees. The scope of work should have a statement that the appraiser must meet with the owner and the relocation agent.
19 CONSULTANT SCOPE OF WORK - CONTINUED The owner and tenant-occupied parcels should always be completed first in order to allow for relocating the occupants. The start of construction could be delayed until the owners can be relocated to new housing. Relocation guidelines require that we allow 90 day from the date of the offer before we can require the occupants to vacate the property.
20 CONSULTANT SCOPE OF WORK - CONTINUED Valuation of properties that may exceed $30,000 should be assigned two appraisers for that parcel. If the second appraiser is hired toward the end of the project when negotiation becomes eminent, two problems can develop: The second appraiser s value may exceed the first offer, requiring restarting the negotiation process. A new offer may have to be made and time must be allowed for the owner to consider the offer. This delay may force a change in the time to complete the project acquisition process.
21 PROPERTY OWNERS NOTIFICATION APPRAISAL ACTIVITIES BEGIN The Uniform Act requires that the property owner (or his 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 that might impact the valuation of the property as well as allow the owner to identify features that are not obvious to the appraiser. The appraiser must offer the owner the opportunity to accompany him/her during the inspection of the property. The earlier the letter is mailed to the owner, the earlier the appraiser can complete the appraisal. It is important to provide the appraiser contact information that allows him to begin the appraisal as early as possible. Failure to notify the owner could result in having to go back and meet with the owner later and delay negotiations.
22 PROPERTY INSPECTION A meeting between the appraiser and the relocation agent is essential with the property owner. Determination of fixtures and personal properties Determination of what will be relocated and what will be acquired Opportunity for the property owner to relay his/her concerns, as well as provide any special features regarding his property The meeting with the property owner should include all of the parties that will be meeting with the property owner. Having multiple individual appointments causes delays in the acquisition process.
23 CHANGES TO THE ASSIGNMENT Should be done without delay Can affect delivery of the required appraisal Meeting with the property owner may result in additional changes
24 A P P R A I S A L R E V I E W
25 THE ROLE OF THE REVIEW APPRAISER Outlines and implements the Scope of Work for the project Appraisal Plan Appraisal Forms Appraisal Plan Process The Appraisal The Review Process
26 QUESTIONS?
27 N E G O T I AT I O N
28 NEGOTIATION Certain procedural time protocols must be followed as set by Federal Law and State Policy and Procedure Time required to acquire all property rights needed for a project can vary from six months to several years
29 THE RIGHT OF WAY PHASE DOES NOT BEGIN UNTIL CERTAIN REQUIREMENTS ARE MET: Environmental clearance has been received Right of Way Maps have been finalized Funding is in place
30 KEY ACQUISITION STEPS Appraisal Negotiation Relocation Assistance, when applicable Closeout Expropriation, where property cannot be acquired through negotiation Certification
31 NEGOTIATION Once the appraisal is complete, the negotiating agent is provided with a copy of the appraisal and the appraisal review sheet. The agent will become familiar with the acquisition facts, including: Is there an uneconomic remainder? Is the parcel improved? Is there relocation on this parcel? Are there any other mitigating factors that may impede negotiation?
32 INITIATION OF NEGOTIATIONS Property owners residing within the State of Louisiana are offered the opportunity to meet in person with the negotiating agent. Owners are presented with a Just Compensation Offer Package The just compensation offer letter The summary of just compensation The retention value of any improvement The proposed Act of Sale A copy of the right of way maps showing the property they own and what the Department intends to acquire A copy of the construction plan sheet showing their property A copy of the Department s brochure entitled Acquisition of Right of Way and Relocation Assistance Relocation assistance offers, if applicable
33 CONTINUING NEGOTIATIONS Federal Law requires that a property owner must be allowed a minimum of 30 days to consider the offer The owner may accept the offer, reject the offer or submit a counter-offer for the Department to consider Any property remainders that were determined to uneconomic to the property owner are addressed
34 AMICABLE ACQUISITION Once an offer or counter-offer is accepted, the property owner executes the Act of Sale pursuant to the requirements of Louisiana Law The negotiation agent will ensure that the property is free of encumbrances or that the Department will be able to obtain the necessary partial releases An acquisition check is then requested and delivered to the property owner The agent then delivers the acquisition deed to the Parish Clerk of Court for recordation
35 EXPROPRIATION Amicable acquisition may not be possible Title issues Rejection of the offer Other issues When amicable acquisition is not possible, the negotiating agent will advise the Real Estate Region Manager who will make a recommendation to expropriate the ownership
36 CERTIFICATION When all required properties have been acquired, a right of way Certification Letter is prepared to be forwarded to the Federal Highway Administration
37 EARLY ACQUISITION Large or complex projects Projects involving multiple relocations of residential and/or nonresidential displacees Environmental approval and/or Final Right of Way Maps are delayed House are available for sale on the market on or near the corridor Property owners in the corridor voluntarily approach the agency Corridor preservation to prevent development
38 QUESTIONS?
39 R E L O C A T I O N P L A N N I N G A N D A S S I S T A N C E U N D E R T H E U N I F O R M R E L O C A T I O N A C T
40 UNIFORM RELOCATION ACT (URA) Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended Applies to all Federally Funded Projects Protects the Right of Property Owners Provides Assistance to Displaced Persons To have uniform, fair and equitable treatment of persons from whom real property is acquired or for persons displaced on a federally funded project To treat individuals fairly, equally and consistently For Agencies to act efficiently and in a cost effective manner
41 RELOCATION PLANNING
42 RELOCATION PLANNING Begins early in the developmental process Minimizes adverse impact to displaced persons Expedites program or project completion Occurs at various project times Early Project Planning Stage Environmental Assessment Project Implementation
43 RELOCATION PLANNING CONTINUED Estimate the: Number of households Availability of comparable replacement dwellings Number of businesses Availability of replacement business sites Identify special relocation services needed Housing of Last Resort
44 RELOCATION TOOLS Temporary moves Protective rent Advance relocation Purchasing vacant properties
45 THE RELOCATION PROCESS Collect and verify data during the planning process Identify specific site or replacement unit Issue Eligibility Notice or Nondisplacement Notice Move Occupants Approve and pay relocation and/or displacement claims
46 CHALLENGES & ISSUES Must be Decent, Safe & Sanitary (DS&S) Must be comparable and make them whole What s suitable may be larger than what they are currently living in New Construction or model required Occupants may be under-housed or pay little or no rent May have large storage facilities or major external attributes Individual needs Transportation, Health Issues, Accessibility, Frail or Diminished Capacity Social Issues Zoning Issues Multiple family units in a house Cannot relocate to separate locations Hard to find comparable housing that is equivalent and functional
47 QUESTIONS?
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