Acquisition under the Uniform Act Uniform Relocation

Acquisition under the Uniform Act • Uniform Relocation Assistance and Real Property Acquisitions Policies Act of 1970 • How is the Uniform Act Relevant to an LCDBG Project? – Like a blueprint – Establishes a set of required procedures for property acquisition • Could cost the local government time and money if not followed properly

The Uniform Act covers acquisition of property. In the context of an LCDBG project, what does “property” refer to? • • • Parcels of Land Servitudes (also temporary and easements) Leases (Long-term: 15+ years, automatically renewable) Rights of Way Much of the Property that a state agency acquires for any activity funded in whole or in part with LCDBG funds is subject to the Uniform Act – …even future projects • A state agency includes a village, town, city, or parish which has the legal power to expropriate property

LCDBG Acquisition Steps under the Uniform Act (The Blueprint) 1. Determine Ownership 2. Preliminary Acquisition Notice 3. Determine if appraisals are required 4. Obtain a valuation of the property 5. Statement of the Basis for the Determination of Just Compensation 6. Written offer to purchase 7. Conclude final negotiations 8. Contract of Sale 9. Statement of Settlement Costs 10. Recordation of Title * Notices, letters, and other documents regarding acquisition must be sent by certified or registered mail, return receipt requested, or hand-delivered with receipt documented

Acquisition Steps 1. Determine Ownership – Title search – Sometimes hardest/longest step 2. Preliminary Acquisition Notice – p. 372 (Exhibit C-1, p. 397) – Letter explaining situation and interest in property – Allows owners to sell, donate, or reject (“do not intend”) – Brochure: When a Public Agency Acquires Your Property 3. Appraisals – 2 things trigger an appraisal (generally) • Request of property owner • Fair Market Value is greater than $10, 000

Acquisition Steps (continued) 4. Obtain valuation – Done by “knowledgeable person” (locally recognized authority on property value) • Real estate broker, banker, etc. – Written valuation – not complicated • Qualifications of knowledgeable person • Brief description of property • Estimated value of property – Needed regardless of appraisal status • If appraisals used, those determine valuation • If appraisal is done, review appraisal is required – If the values disagree, review appraisal value is used – Appraisal process – p. 375

Acquisition Steps (continued) 5. Statement of Just Compensation – p. 373 – Sample Statement for the Determination of Just Compensation (Exhibit C-2, p. 406) 6. Written Offer to Purchase – Official offer to property owner – Certified/Registered mail, return receipt requested 7. Final Negotiations – Negotiate sale • Owner may accept, reject, or counter – Any amount exceeding FMV for the property must be approved by OCD – If not approved, local government may spend more $, but not CDBG funds

Acquisition Steps (continued) 8. Sales Contract/Complete Sale – If negotiations are successful, act of sale must be prepared and executed and transfer documents secured – Local government must also reimburse owner (fairly and reasonably) costs associated with title transfer • such as recording fees, transfer taxes, etc. 9. Statement of Settlement Costs – p. 374 (Exhibit C-4, p. 409) – Must be dated and certified as true and correct – Local government must also be able to prove payment of purchase price (canceled check and Act of Sale) 10. Recordation of Title – Must be filed and recorded at courthouse (“on record”)

Options in the Event of Failure • Decide To Not Acquire (p. 374) • Expropriation Procedure – p. 377 • What Must a Local Government do when Deciding Not to Acquire Property after Initiating Uniform Act Procedures? – Inform the property owners. – A sample notice is provided as Exhibit C-5 (p. 410)

Donations • Several Uniform Act steps are irrelevant • “Property and/or Servitude Acquisition Waiver” –Exhibit C-6, p. 411

Five Types of Acquisition not Subject to the Uniform Act As Listed in Grantee Handbook 1. Acquisition from another public agency 2. Temporary Construction Servitude/easement (for purposes of rehab) 3. Short Term Leases (<15 years, not automatically renewable) 4. Voluntary Acquisition 5. Streets, public in nature by virtue of LRS 48: 491, maintained by local governments for three years prior to LCDBG application submittal

Examination of Voluntary Acquisition • Public Advertisement – owner responds and submits proposal for his/her property • Advertisement must state that if a mutually satisfactory agreement cannot be reached you will not buy or condemn the property for the same purpose • V. A. can be useful, but it’s not a way to circumvent the Uniform Act • Voluntary Acquisition Policy (Exhibit C-12, p. 438)

Three types of documentation of ownership of property are acceptable. What are these three types? 1. Attorney’s Opinion 2. A copy of the title of the property as recorded at the Parish Courthouse 3. Proof of maintenance of streets for at least three years under Louisiana Revised Statue 48: 491 The End