Chapter 6 Acquisition

Transcription

1 Chapter 6 Acquisitin Intrductin The Unit f General Lcal Gvernment (UGLG) is required t cmply with the acquisitin and relcatin plicies and prcedures as set frth in the Unifrm Relcatin Assistance and Real Prperty Acquisitin Plicies Act f 1970, as amended (Unifrm Act r URA). Under Sectin 104(d) f the Husing and Cmmunity Develpment Act f 1974, as amended [Sectin 104(d)], the UGLG als has the respnsibility t minimize displacement that results frm CDBG funded prjects. Fr mre details n Relcatin Prcedures under the URA and Anti displacement requirements under Sectin 104(d) f the Act, refer t Chapter 7 Relcatin. The URA applies t any acquisitin f real prperty fr prgrams and prjects where there is Federal Financial Assistance in any part f the prject csts. There are a cuple instances, ne f which is a vluntary acquisitin, when the URA des nt apply. Hwever, even with a vluntary acquisitin, sme type f paperwrk will be required. Once an Offer Letter has been issued by the Michigan Ecnmic Develpment Crpratin (MEDC), the UGLG must ensure that the Agency acquiring the Real Prperty cmplies with the URA, regardless f wh purchases the prperty r wh pays fr the prperty. Accrding t the U.S Department f Husing and Urban Develpment s Handbk 1378, an Agency may be a State, a State Agency, r a persn wh has the authrity t acquire prperty by eminent dmain under State law. This definitin includes UGLGs but des nt include persns wh d nt have the pwer f eminent dmain. Real prperty includes: Permanent and temprary easements necessary fr the prject. Fee simple title/a parcel f land. Lng-term leases f 50 years r mre. Rights f way. As explained in this chapter, there are certain ntices that must be sent even if the acquisitin is nt subject t the URA. If Federal financial assistance is used in any part f the prject, the Unifrm Act gverns the acquisitin f real prperty fr the prject and any resulting displacement, even if lcal r private funds are used t pay the acquisitin csts. Again, CDBG acquisitin and relcatin guidelines are applicable t a prject nce the MEDC issues an Offer Letter. If acquisitin and relcatin are nt invlved, the MEDC may require ntificatin in writing that the Unifrm Act des nt apply. (Frm 6-A). Sectin 1 General Acquisitin Requirements The Agency (State, State Agency, UGLG r ther persn wh has the pwer f eminent dmain) acquiring the prperty shuld nt begin the acquisitin prcess until the envirnmental review has been cmpleted. In certain instances, an ptin r purchase agreement, meeting the belw 1

2 requirements and cntingencies, may be executed prir t the cmpletin f the envirnmental review, as lng as an Offer Letter has been issued by the MEDC. Requirements: An ptin r purchase agreement may be executed prir t the cmpletin f the envirnmental review when the fllwing requirements are met: Prir t signing the ptin r purchase agreement, the Agency infrms the prperty wner f the prperty s market value (refer t Determining the Value f Prperty fr a Vluntary Acquisitin under Sectin 3 f this Chapter and Determining the Value f Prperty fr an Invluntary Acquisitin under Sectin 4 f this Chapter) and that the pwer f eminent dmain will nt be used. (Frm 6-B). The cst f the ptin r purchase agreement must be a nminal prtin f the purchase price. The prvisin allws flexibility regarding the term nminal and any reasnable interpretatin is acceptable, prvided that it des nt exceed five percent f the purchase price. Fr instance, it is reasnable t cnclude that the nminal amunt fr ptin r purchase cntracts will vary depending upn the lcal real estate market and the purchase price. Cntingencies: Prir t the cmpletin f the envirnmental review, the fllwing cntingencies must be included in the ptin r purchase agreement: Ntwithstanding anything t the cntrary in this Agreement, Buyer s bligatins under this Agreement are cntingent upn the cmpletin f an envirnmental review in accrdance with 24 CFR Part 50 and 24 CFR Part 58. Ntwithstanding anything t the cntrary in this Agreement, Buyer s bligatins under this Agreement are cntingent upn btaining CDBG funds thrugh the Michigan Strategic Fund. The Agency shuld nt enter int any cnstructin cntract prir t cmpleting the acquisitin f all prperties required fr prject cmpletin. If a prperty is in the prcess f being cndemned, the actin must be filed in curt prir t executin f a cnstructin cntract. Again nte: Once a MEDC Offer Letter has been issued, n prject related acquisitin may ccur until after the Envirnmental Review prcess has been cmpleted and the MEDC has prvided written authrizatin t incur the csts. Optin r purchase agreements, which meet certain requirements and include certain cntingencies, may be used prir t the cmpletin f the envirnmental review. Yur CDBG Prgram Specialist must be cntacted prir t signing an ptin r purchase agreement r incurring ther prject csts. See Chapter 5: Envirnmental Review and the Funding Guide, with regard t the envirnmental review requirements and incurring prject csts. Sectin 2 Vluntary and Invluntary Acquisitins (under URA) In rder t further understand the applicability f the URA requirements and prceed with an acquisitin, the UGLG must understand the critical difference between acquisitin f prperty when the sale is vluntary and when the sale is invluntary. While there are prtectins fr prperty wners in bth vluntary and invluntary sales, the key difference between the tw types f acquisitin depends n the use f eminent dmain and prject/prperty alternatives. When a vluntary sale ccurs, there can be n threat f eminent dmain r cndemnatin and ther prject/site alternatives must be available. 2

3 Prperties acquired by Agencies with the pwer f eminent dmain are nly cnsidered vluntary if the Agency ntifies the prperty wner f the prperty s market value and ntifies the prperty wner that the Agency will nt use the pwer f eminent dmain if negtiatins d nt result in an amicable agreement. The sales price may be negtiated. Other alternatives must be available (i.e. nt prceeding with the prject r prceeding with alternative sites). Example: The City f Anywhere, Michigan wuld like t acquire a parcel f private prperty t expand public parking that benefits the entire lwer incme City. The City has determined that it will nt prceed with the prject if the City and the prperty wner cannt cme t an amiable agreement. Prir t entering int an agreement fr the prperty, the City must infrm the prperty wner f the market value f the prperty and that the City will nt use its pwer f eminent dmain. The use f eminent dmain fr ecnmic develpment prjects that benefit private entities is prhibited. Therefre, the acquisitin must be vluntary. Example: In rder t expand, ABC Cmpany needs public water t be extended thrugh the adjacent privately wned prperty. In rder t extend the water, the City needs an easement thrugh the adjacent privately wned prperty fr the water line. Since this is an ecnmic develpment prject (n public benefit), the pwer f eminent dmain cannt be used. When an invluntary sale ccurs, the use f eminent dmain r cndemnatin may be required. Typically, invluntary transactins ccur when an Agency with the pwer f eminent dmain MUST acquire prperty fr a prject invlving a public benefit and there are n ther alternatives (i.e. the prject must happen and there is nly ne site where the prject can happen). Example: The City f Anywhere, Michigan wuld like t acquire a parcel f private prperty t expand public parking that benefits the entire lwer incme City. The City has determined that it will prceed with the prject even if the City and the prperty wner cannt cme t an amiable agreement. Guidance pertaining t vluntary acquisitins is detailed in Sectin 3 f this Chapter. Guidance pertaining t invluntary acquisitins is detailed in Sectin 4 f this Chapter. Sectin 3 Vluntary Acquisitin Prcedures (under URA) Steps fr Meeting URA Vluntary Acquisitin Requirements Remember, these requirements apply t all Real Prperty vluntarily acquired by an Agency. Accrding t the U.S Department f Husing and Urban Develpment s Handbk 1378, an Agency may be a State, a State Agency, r a persn wh has the authrity t acquire prperty by eminent dmain under State law. This definitin includes UGLGs but des nt include persns wh d nt have the pwer f eminent dmain. Real prperty includes: Permanent and temprary easements necessary fr the prject. 3

4 Fee simple title/a parcel f land. Lng-term leases f 50 years r mre. Rights f way. Certain steps regarding acquisitin f prperty are necessary t meet Federal and State requirements. The steps fr the vluntary purchase f prperty, and the rder in which the steps shuld ccur, are utlined belw: Determine Ownership Ownership must be determined. The first step in the prcess is t btain title evidence, that is, the deed and the legal descriptin f the prperty. Review the cunty register f deeds recrds t determine the actual prperty wner and review the deed and legal descriptin f the prperty t determine any existing easements r liens. A title search t determine wnership is ften necessary. CDBG acquisitin funds may nt be used t remve liens r t perfect title wnership. Title defects must be cleared at the expense f the prperty wner(s). Determine the Value f the Prperty (Appraisal r waiver valuatin) Accrding t the URA, a vluntary acquisitin des nt require a frmal appraisal t determine the prperty s value. Hwever, if CDBG will be funding the acquisitin, an appraisal may be required t verify cst reasnableness. If an appraisal is nt cnducted, a waiver valuatin must be prepared. A waiver valuatin is a statement f the prperty s value. The waiver valuatin des nt need t be cmplicated but must include: the prperty t be acquired, a descriptin f the prperty, the methd used t determine the prperty s value, the estimated market value f the prperty, the name f the persn making the valuatin, and any ther ntes r cnditins applicable t the analysis. The UGLG must ensure the persn perfrming the waiver valuatin has sufficient understanding f appraisal principles and the lcal real estate market. The waiver valuatin (Frm 6-D) r similar dcument shuld be signed and a cpy kept in the UGLG s files. Send the Vluntary Acquisitin Ntice A Vluntary Acquisitin Ntice must be sent t the prperty wner (Frm 6-B). The Ntice must include the market value f the prperty and include a statement that the buyer des nt have, r will nt use, the pwer f eminent dmain. The Agency must send all ntices, letters, and ther dcuments by certified r registered mail, return receipt requested, r hand delivered with receipt dcumented. If the prperty wner des nt read r understand English, the Agency must prvide translatins and assistance. Each ntice must give the name and telephne number f a persn wh may be cntacted fr further infrmatin. In additin, this letter shuld infrm the prperty wner that he r she is nt entitled t any relcatin assistance. Nte, hwever, that if the prperty is tenant-ccupied and the tenant will be required t vacate, the tenant is eligible fr relcatin assistance. Fr mre details n Relcatin Prcedures under the URA and Anti displacement requirements under Sectin 104(d) f the Act, refer t Chapter 7 Relcatin. Negtiate, Prepare Dcuments, and Cmplete the Sale The sales price is negtiated. Fllwing successful negtiatins and receiving authrizatin t incur prject csts frm the MEDC, the sales cntract is prepared; the Statement f Settlement Csts (HUD- Frm 1) r an alternative Clsing Statement (Frm 6-L) r similar dcument is prepared; the clsing is 4

5 cmpleted; the deed (r ther wnership interest) is transferred; and the deed (r ther wnership interest) is recrded at the Cunty. Fr the envirnmental review requirements and when prject csts can be incurred, see Chapter 5: Envirnmental Review and the Funding Guide. Recrd Keeping A separate acquisitin case file including the belw dcuments must be established fr each acquisitin: Vluntary Acquisitins Cmpleted Vluntary Acquisitin Checklist (Frm 6-S) Title search/clearance f Title Waiver Valuatin (Frm 6-D)r similar dcument r an Appraisal Reprt, if required Vluntary Acquisitin Ntice and dcumentatin f receipt by prperty wner (Frm 6-B) Cntract f Sale Statement f Settlement Csts (HUD-Frm 1), alternative Clsing Statement (Frm 6-L), r similar dcument Recrded dcument as evidence f payment and prperty wnership Sectin 4 Invluntary Acquisitin Prcedures (Under URA) Prperty Owner s Basic Rights under URA When invluntary transactins are required as part f a CDBG prject, the prperty wner must be infrmed f his/her rights under the Unifrm Act. Thse basic rights include: The right t receive a Ntice f Unifrm Act Requirements prvided by the Agency frmally explaining the prperty wner s rights under the Unifrm Act. This is usually accmplished by prviding the prperty wner with a Preliminary Acquisitin Ntice and the applicable US Department f Husing and Urban Develpment (HUD) Unifrm Act Bklet. The right t an Appraisal and a Review Appraisal if the value f the prperty is greater than $10,000 r if certain cnditins exist (see belw - determining the value f the prperty). The right t accmpany the appraiser during the appraisal f their prperty. The right t Just Cmpensatin based n an appraisal r a waiver valuatin. Steps fr Meeting URA Invluntary Acquisitin Requirements Remember, these requirements apply t all Real Prperty invluntarily acquired by an Agency. Accrding t the U.S Department f Husing and Urban Develpment s Handbk 1378, an Agency may be a State, a State Agency, r a persn wh has the authrity t acquire prperty by eminent dmain under State law. This definitin includes UGLGs but des nt include persns wh d nt have the pwer f eminent dmain. Real prperty includes: Permanent and temprary easements necessary fr the prject. Fee simple title/a parcel f land. Lng-term leases f 50 years r mre. 5

6 Rights f way. Certain steps regarding acquisitin f prperty are necessary t meet federal and State requirements. The steps invlved with an invluntary transactin are utlined in Attachment 6-E (Flwchart f URA Prcess) and described belw. Determine Ownership Ownership must be determined. The first step in the prcess is t btain title evidence, that is, the deed and the legal descriptin f the prperty. Review the cunty register f deeds recrds t determine the actual prperty wner and review the deed and legal descriptin f the prperty t determine any existing easements r liens. A title search t determine wnership is ften necessary. CDBG acquisitin funds may nt be used t remve liens r t perfect title wnership. Title defects must be cleared at the expense f the prperty wner(s). Send the Invluntary Preliminary Acquisitin Ntice and Bklet An Invluntary Preliminary Acquisitin Ntice must be sent t the prperty wner (Frm 6-F). The Agency must send all ntices, letters, and ther dcuments by certified r registered mail, return receipt requested, r hand delivered with receipt dcumented. If the prperty wner des nt read r understand English, the Agency must prvide translatins and assistance. Each ntice must give the name and telephne number f a persn wh may be cntacted fr further infrmatin. The Preliminary Acquisitin Ntice: Explains the prperty wners rights under the URA, including the right t an appraisal; Explains that the ntice is nt a ntice t vacate; Des nt establish eligibility fr relcatin payments r assistance; Must be accmpanied by the bklet, When a Public Agency Acquires Yur Prperty (Frm 6-G) r fr permanent and temprary easements, When a Public Agency is Interested in Acquiring an Easement (Frm 6-H); Must include the UGLG s Acquisitin Plicy but ONLY if it affrds the wner r ccupant additinal rights. Determine the value f the prperty by an Appraisal and Review Appraisal (if required) r Waiver Valuatin An appraisal is nt required if: 1. The prperty wner ffers t dnate the prperty; r 2. The prperty s market value is less than $10,000 and it is an uncmplicated valuatin. When an appraisal is nt required, a waiver valuatin must be prepared. A waiver valuatin is a statement f the prperty s value. The waiver des nt need t be cmplicated but must include: the prperty t be acquired, a descriptin f the prperty, the methd used t determine the prperty s value, the estimated market value f the prperty, the name f the persn making the valuatin, and any ther ntes r cnditins applicable t the analysis. The UGLG must ensure the persn perfrming the waiver valuatin has sufficient understanding f appraisal principles and the lcal real estate market. The waiver valuatin (Frm 6-D) r similar dcument shuld be signed and a cpy kept in the UGLG s files. 6

7 Nte: If CDBG funds are used t pay fr the acquisitin, please check with yur CDBG Prgram Specialist as the MEDC may require an appraisal (instead f a waiver valuatin) t verify cst reasnableness. In this case, a review appraisal may nt be required. The fllwing cnditins will trigger an appraisal: 1. The value f the prperty is estimated t be mre than $10,000; 2. The prperty wner wants an appraisal; 3. Pssible damages exist t the remaining prperty; 4. Questins exist n the highest and best use; 5. The use f eminent dmain is anticipated; 6. Hazardus material/waste may be present; r 7. Fr ther reasns the Agency determines an appraisal is required. See the appraisal requirements belw fr selecting an appraiser and the appraisal requirements. If an appraisal is required, the prperty wner must be invited t accmpany the appraiser (Frm 6-M). When an appraisal is required, a review appraisal will autmatically be required. Fr mre infrmatin n review appraisals, including what t d if the appraiser cnducting the review des nt agree with the methdlgy used by the riginal appraiser, please refer t the sectin later in this chapter entitled The Review Appraisal. Establish Just Cmpensatin After valuatin f the prperty, just cmpensatin must be established. The amunt determined t be just cmpensatin cannt be less than the market value as determined by the Appraisal/Review Appraisal r waiver valuatin. The establishment f an amunt believed t be just cmpensatin cannt be delegated t a private cnsultant. Establishment f the amunt believed t be just cmpensatin must be made by an apprpriate fficial f the UGLG. Cuncil r Bard apprval is suggested but nt required. A sample Statement f Just Cmpensatin is included as Frm 6-I. Send the Written Offer t Purchase The Agency must send the prperty wner a written Offer t Purchase (Frm 6-J) r similar dcument, alng with the written Statement f Just Cmpensatin (Frm 6-I) r similar dcument. As with all ntices, the written Offer t Purchase must be sent certified r registered mail, return receipt requested r hand delivered with evidence f receipt. Remember, if the prperty is tenant-ccupied and the tenant will be required t vacate, the tenant is eligible fr relcatin assistance. Fr mre details n Relcatin Prcedures under the URA and Anti displacement requirements under Sectin 104(d) f the Act, refer t Chapter 7 Relcatin. Cmplete Acquisitin, Cndemn Prperty r Decide Nt T Acquire Depending upn whether the Agency and the prperty wner can reach an agreement n an acquisitin price, the Agency will cmplete the acquisitin prcess, initiate cndemnatin prceedings, r decide nt t acquire the prperty. Negtiate, Prepare Dcuments, and Cmplete the Acquisitin Prcess The sales price is negtiated. The prperty wner may accept the market value and enter int an agreement. Hwever, the prperty wner must be prvided an pprtunity t discuss the ffer, 7

8 prpse a higher value and dcument that higher value. There may be ccasins when a prperty wner prpses r insists n mre than the market value. If this ccasin arises, the Agency may request apprval frm the MEDC t prceed with a purchase price higher than the market value r may btain a new valuatin. Fllwing successful negtiatins and receiving authrizatin t incur prject csts frm the MEDC, the sales cntract and Statement f Settlement Csts (HUD-Frm 1) r an alternative Clsing Statement (Frm 6-L) r similar dcument are prepared. The Statement f Settlement Csts r Clsing Statement r similar dcument must identify all settlement csts regardless f whether they are paid at, befre, r after clsing. In the case f an easement, right-f-way, servitude r similar cnveyance, the Agency must prvide a similar statement f the clsing csts detailing all f the attendant csts. If a title r escrw cmpany is used, their standard frm is acceptable. The Statement f Settlement Csts r the Clsing Statement r similar dcument must be dated and certified as true and crrect by the clsing attrney r ther persn handling the transactin. The Agency must reimburse the prperty wner t the extent deemed fair and reasnable fr incidental csts assciated with transfer f title (i.e., recrding fees, transfer taxes, penalty cst r ther charges fr prepayment f any pre-existing recrded mrtgages, etc.). In all cases, the clsing is cmpleted; the deed (r ther wnership interest) is transferred; and the deed (r ther wnership interest) is recrded at the Cunty. Fr the envirnmental review requirements and when prject csts can be incurred, see Chapter 5: Envirnmental Review and the Funding Guide. Dcumentatin f negtiatin prceedings shuld be placed in the prject acquisitin file. Cndemnatin Prceedings Cndemnatin is the legal prcess by which a fee simple title t prperty is acquired thrugh the prcess f eminent dmain. The initial steps in an invluntary acquisitin are fllwed but the Agency must acquire the prperty by filing cndemnatin against the prperty wner because a mutually agreed upn price cannt be determined. Once it has been determined that the pwer f eminent dmain must be used, the fllwing steps are required: Frmally terminate negtiatins in writing. File cndemnatin suit with apprpriate curt in accrdance with State law. Depsit, as directed by the curt, the amunt f curt-determined just cmpensatin in an escrw accunt. Prceed with payment t the prperty wner in accrdance with curt instructin. Decide Nt T Acquire If the Agency decides nt t acquire the prperty at any time after infrming the prperty wner f its interest, the Agency must ntify the prperty wner and all tenants in residence in writing f its intentin nt t acquire the prperty (Frm 6-K). Any persn mving frm the prperty thereafter will nt be eligible fr relcatin payments and assistance. This ntice shuld be sent within 10 days f the Agency s determinatin nt t acquire. 8

9 Recrd Keeping Recrd f Persnal Cntacts (Frm 6-Q) is used in maintaining persnal cntacts with the wner. A separate acquisitin case file including the belw dcuments must be established fr each acquisitin: Invluntary Acquisitins Cmpleted Invluntary Acquisitin Checklist (Frm 6-T) Recrd f Persnal Cntacts (Frm 6-Q) r similar dcument Title Search/Clearance f Title Invluntary Preliminary Acquisitin Ntice (Frm 6-F) HUD Brchure (Frm 6-G r 6-H) Evidence f Invitatin t Accmpany Appraiser (Frm 6-M) Waiver Valuatin (6-D) r similar dcument/appraisal Reprt & Review f Appraisal Written Statement f Just Cmpensatin (Frm 6-I r similar) Written Offer t Purchase and Evidence f Receipt (Frm 6-J r similar) Cntract f Sale Statement f Settlement Csts (HUD-Frm 1) r an alternative Clsing Statement (Frm 6-L) r similar dcument If Dnatin, Waiver f Relcatin Benefits (Frm 6-O; cannt be used fr tenants) If Acquisitin Terminated, Ntice f Intent Nt t Acquire (Frm 6-K) If Cndemnatin, Evidence f Curt Depsit f Fair Market Value If Cndemnatin, Curt Reslutin Recrded dcument as evidence f payment and prperty wnership A cpy f each acquisitin file, nce cmplete, must be sent t the Prgram Specialist. Appraisals under the Unifrm Act Typically, appraisals are cnsidered a preliminary cst because they are paid fr with nn-cdbg csts during the applicatin prcess in rder t determine prject csts. Fr preliminary csts, see the Funding Guide fr additinal guidance. Selecting Appraisers The Agency must select an independent appraiser. The appraiser shuld have n interest in the prperty r be related t, r in business with, anyne having any interest in the prperty t be acquired. The appraiser shuld be qualified, reputable and prfessinal. Lk fr appraisers wh have had experience ding the types f appraisals needed. An appraiser wh usually establishes values fr vacant, unimprved land may nt be apprpriate t establish accurate values f huses. State-certified r licensed real estate appraisers eligible t perfrm appraisals fr federally related transactins are nw listed n the Internet. 9

10 The Natinal Registry f State-Certified r Licensed Appraisers Website is: Prcuring Appraisal Services Again, since appraisals are typically cnducted prir t the Grant Agreement using nn-cdbg funds, the Agency shuld fllw its lcal prcurement requirements but may want t request statements f qualificatins frm a number f lcal appraisers, review thse qualificatins, and emply nly qualified appraisers. A minimum f ne appraisal is required; hwever, if the prject is ptentially cntrversial (as with an unwilling prperty wner r a cnflict f interest invlving a public fficial) r where prperty values exceed $100,000, the UGLG may want t have tw independent appraisals cnducted. A review appraisal must be prepared fr each appraisal cnducted. The Agency may use ne f its wn prfessinal services cntract r refer t the Unifrm Appraisal Standards fr Federal Land Acquisitin, which sets frth standard requirements fr appraisals invlving federally funded acquisitins. Standard Federal Husing Administratin (FHA) appraisal frms may als be used. Prperty Valued at $250,000 r Mre A cntract (fee) appraiser making a "detailed appraisal" n prperty valued at $250,000 r mre must be certified and licensed in accrdance with State law implementing Title XI f the Financial Institutins Refrm, Recvery and Enfrcement Act f 1989 (FIRREA), P.L and must be currently active n the Appraisal list. The review appraiser must als be n the State s general appraisal list. Prperty Valued at Less Than $250,000 As f September 6, 2001, fr prperty valued belw $250,000, the Agency may use a General Appraiser r a Residential Appraiser. This is als applicable t the review appraisal. Owner Invitatin Befre the first appraisal is undertaken, the Agency must frmally invite the prperty wner t accmpany the appraiser during inspectin f the prperty (Frm 6-M). This ntice shuld be in writing and a cpy placed in their prperty acquisitin file alng with evidence f receipt by the wner. Fr the review appraisal, the requirement t invite the prperty wner t accmpany the appraiser is ptinal. Servitude/Easement Appraisal Frms Frm 6-N is an example f a shrt frm that can be accepted fr an appraisal establishing the value f servitude r an easement. This frm summarizes cmplete dcumentatin which the appraiser must have n file. The Review Appraisal A review appraisal must be btained nce an appraisal has been cmpleted. The review must be dne by a qualified staff appraiser r an independent fee appraiser. The review must be written, signed and dated. It shuld assess the adequacy f the appraiser's supprting data, the appraisal prcedures used, and the sundness f the appraiser's pinin f fair market value. As needed, the review appraiser shall, prir t acceptance, seek necessary crrectins r revisins t the initial appraisal. If the review appraiser is unable t recmmend an appraisal as an adequate basis fr the establishment f the ffer f just cmpensatin, and it is determined by the acquiring Agency that it is nt practical t btain an additinal appraisal, the review appraiser may, as part f the review, present and analyze market infrmatin in cnfrmance with t supprt a recmmended value. 10

11 Acquiring Prperty withut an Appraisal (42 USC 4651 (2); 49 CFR (c) (2)) states: If the UGLG can determine that the valuatin f a parcel f land r servitude is uncmplicated and that fair market value f the prperty des nt exceed $10,000, and if the wner des nt desire an appraisal, then an ffer can be made t the wner(s) f the prperty withut a frmal appraisal but a waiver valuatin will be required (see the invluntary transactin step fr valuing prperty). Dnatins N prvisin f the Unifrm Act regulatins prevent a persn, after being fully infrmed f their right t just cmpensatin based n a review f available data r an appraisal f their real prperty, frm dnating their prperty r easement t the Agency fr a prject. They must be infrmed f their right t accmpany the appraiser during the appraisal. Because a prperty wner is entitled t just cmpensatin under the Unifrm Act, a dnatin shuld never be assumed. The Waiver f Just Cmpensatin frm (Frm 6-O) shuld be prepared by the Agency when the prperty wner agrees t dnate their easement r parcel f land. It shuld clearly state that the prperty wner understands that they cannt be required t dnate the prperty r t sell it t the Agency at less than the amunt f the appraised value unless the prperty wner vluntarily agrees t dnate. The waiver shuld clearly shw the prperty wner s intent t vluntarily release the Agency f its Unifrm Act bligatin t determine just cmpensatin based upn an appraisal after being fully infrmed f their rights under the Unifrm Act. Because a prperty wner is entitled t an appraisal befre making a decisin t dnate, it is incumbent n the Agency t dcument that the prperty wner was made aware f that right befre btaining the signed waiver. A waiver signed by each prperty wner must be kept in each prperty wner s acquisitin file. Keep in mind that a dnatin is the prperty wner s vluntary relinquishment f their land r easement fr free t the Agency after being fully infrmed f their Unifrm Act rights. The specific prperty is cnveyed t the Agency by written cnsent f the prperty wner. Here the prperty wner agrees t transfer full title f a parcel f their land, r grant a permanent and/r temprary easement, r establish a lease f 50 years r less, r grant right-f-way interest withut receiving just cmpensatin. Hwever, the Agency is respnsible fr paying all incidental csts and fees assciated with the transfer and recrding f the prperty. In summary an Agency must prvide the fllwing t the MEDC fr a prperty dnatin: Invluntary Preliminary Acquisitin Ntice (Frm 6-F); HUD brchure titled When a Public Agency Acquires Yur Prperty (Frm6-G) r When a Public Agency is Interested in Acquiring an Easement (Frm 6-H); Signed Waiver f Rights f Just Cmpensatin, and Right t an Appraisal, frm the prperty wner, if applicable (Frm 6-O); Dcumentatin t indicate hw market value was determined if the market value f the prperty r the easement is determined t be $10,000 r less (Frm 6-D); If right t an appraisal was nt waived, the Agency must appraise prperty and use the sample waiver f Right f Just Cmpensatin and prvide the amunt f the market value n that sample waiver frm (Frm 6-O); Recrded prperty deeds and easements and evidence f payment f recrding fees. 11

12 Chapter 6 Frm(s) URA Nt Applicable 6-A Prperty Acquisitin and Relcatin Will Nt Occur Letter SAMPLE Vluntary Acquisitins 6-B Vluntary Acquisitin Ntice fr UGLGs with Eminent Dmain SAMPLE 6-C Vluntary Acquisitin Ntice fr UGLGs withut Eminent Dmain SAMPLE 6-D Waiver Valuatin SAMPLE 6-S Vluntary Acquisitin Review Checklist Invluntary Acquisitins 6-E Acquisitin Prcess Under URA Flwchart 6-F Invluntary Prelminary Acquisitin Ntice SAMPLE 6-G When a Public Agency Acquires Yur Prperty, HUD-2041-CPD 6-H When a Public Agency is Interested Acquiring Easement, HUD-1041-CPD 6-D Waiver Valuatin SAMPLE 6-I Statement f Just Cmpensatin SAMPLE 6-J Written Offer t Purchase SAMPLE 6-K Ntice f Intent Nt t Acquire SAMPLE 6-L Statement f Settlement Csts 6-M Invitatin t Accmpany an Appraiser SAMPLE 6-N Easement Servitude Appraisal SAMPLE 6-O Waiver f Just Cmpensatin and Appraisal SAMPLE 6-P Acquisitin Case File Summary Reprt, DISCONTINUED AFTER AUG Q Recrd f Persnal Cntacts 6-R Waiver f Relcatin Benefits cming sn (cannt be used fr tenants) 6-T Invluntary Acquisitin Review Checklist 12