Transcription
REAL ESTATEOPERATIONSMANUAL
REAL ESTATE OPERATIONS MANUALT ABLE OF CONT ENTST A B L E O F C O N T E N T S . IINTRODUCTION. 1RULES AND LAWS GOVERNING REAL ESTATE ACTIVITIES: . 2OVERVIEW OF REAL ESTATE SECTION . 3ORGANIZATIONAL STRUCTURE . 3SECTION 1: APPRAISAL . 41.1 PURPOSE . 41.2 OVERVIEW OF THE PURPOSE OF THE APPRAISAL AND APPRAISAL REQUIREMENTS61.3 SCOPE OF WORK . 61.4 CONDUCT OF APPRAISER. 81.5 AGREEMENT FOR APPRAISAL SERVICES. 81.6 CONTRACT / TASK ORDER FOR APPRAISAL SERVICES . 91.7 CONTRACT / TASK ORDER EXTENSIONS . 91.8 APPRAISAL FORMATS . 91.9 INTEREST BEING APPRAISED . 101.10HIGHEST AND BEST USE. 101.11LAND VALUATION . 111.12VALUATION OF THE ENTIRE TRACT (LARGER PARCEL) . 121.13VALUATION OF THE REMAINDER. 121.14VALUATION OF THE IMPROVEMENTS . 131.15COMPLETENESS OF APPRAISAL AND APPRAISAL REPORTS . 151.16ROLE OF THE COST AND OTHER SPECIALTY VALUATION CONSULTANTS . 151.17THE ROLE OF THE REVIEW APPRAISER. 171.18ESTABLISHMENT AND PAYMENT OF FEES . 191.19TYPES OF APPRAISAL FORMATS . 201.20FORM A . 211.21FORM B. 221.22FORM C. 231.23ESTIMATE OF COMPENSATION. 251.24PERSONAL PROPERTY. 251.25SIGNS . 251.26ITEMS EXCLUDED FROM APPRAISALS . 251.27CONTROL OF ACCESS. 261.28MINERAL RIGHTS . 261.29TIMBER VALUE . 261.30CROP VALUE. 271.31LEASE INTERESTS . 271.32FENCING VALUE . 271.33CONSTRUCTION AND DRAINAGE SERVITUDES . 28iRevised December 13, 2018
REAL ESTATE OPERATIONS MANUAL1.341.351.361.37RAILROAD PARCEL ACQUISITION . 28PROPERTY INSPECTION WITH THE OWNER(S) . 29OWNERS REFUSAL TO PERMIT ENTRY . 30UPDATE OF APPRAISALS . 31SECTION 2: ACQUISITION . 332.1 GENERAL PROJECT PRE-ACQUISITION ACTIVITIES . 332.1.1 REQUESTS FOR RIGHT OF WAY CONCEPTUAL STAGE RELOCATION PLANAND RIGHT OF WAY AND RELOCATION ASSISTANCE COST ESTIMATE . 332.1.2 INITIAL REQUEST FOR TITLE RESEARCH REPORT . 332.1.3 TITLE RESEARCH REPORT UPDATE . 332.1.4 ASSIGNMENT OF LEAD REAL ESTATE AGENT . 342.1.5 RECEIPT OF PLAN-IN-HAND PRINTS AND NOTIFICATION OF PLAN-IN-HANDMEETING . 342.1.6 RECEIPT OF TAKING LINES. 352.1.7 RECEIPT OF PRELIMINARY RIGHT OF WAY MAPS . 352.1.8 RECEIPT OF FINAL RIGHT OF WAY MAPS . 362.1.9 CHANGE IN OWNERSHIP . 372.1.10 DECEASED OWNER AND SUCCESSION . 382.2 GENERAL PROJECT ACQUISITION ACTIVITIES . 392.2.1 RECEIPT OF APPRAISAL REPORTS OR COST ESTIMATE DATA . 392.2.2 JUST COMPENSATION OFFER LETTERS. 402.2.3 NEGOTIATION TIME TABLE. 412.2.4 COUNTER-OFFER AND ADMINISTRATIVE SETTLEMENT . 412.2.5 ACQUISITION CHECK . 422.2.6 DEED, SALE, SERVITUDE AND AGREEMENT DOCUMENTS. 432.2.7 EXPROPRIATION . 432.2.8 OWNERSHIP LOG OF CONTACTS . 442.2.9 SPECIAL AGREEMENTS . 442.2.10 DISPOSAL OF IMPROVEMENTS . 452.2.11 PROJECT CERTIFICATION . 452.2.12 CONDITIONAL ROW CERTIFICATIONS . 452.2.13 RIGHT OF WAY MAP RECORDATION . 452.2.14 FILE MANAGEMENT . 462.3 UNECONOMIC REMAINDER (UR) . 462.4 ADVERSELY IMPACTED (AI) IMPROVEMENT . 472.5 PROCEDURES FOR A FEDERAL LAND TRANSFER OF UNITED STATES FORESTSERVICE LANDS . 522.6 PERMIT PROJECTS . 522.7 DESIGN BUILD PROJECTS. 522.8 EARLY ACQUISITION . 52SECTION 3: IMPROVEMENT CONTROL . 543.13.23.33.4IMPROVEMENT CONTROL - GENERAL . 54INVENTORIES . 54UNDERGROUND STORAGE TANK AND CONTAMINATION POLICY . 55OWNER RETENTION – POLICY . 56iiRevised December 13, 2018
REAL ESTATE OPERATIONS MANUAL3.5 LEASE POLICIES. 573.5.1 TIME FRAMES FOR INITIATION AND TERMINATION OF LEASES . 573.5.2 SETTING AMOUNT OF RENT . 583.5.3 LEASE ACTIVITIES AFTER SIGNING . 583.6 EVICTIONS . 593.7 GENERAL DISPOSAL POLICIES . 603.8 IMPROVEMENT OBLIGATIONS FOLLOWING ACQUISITION . 613.9 DISPOSAL OF IMPROVEMENTS . 643.10ASBESTOS INSPECTION PROCEDURES . 653.11OUTDOOR ADVERTISING SIGNS AND BILLBOARDS . 67SECTION 4: RELOCATION AND ASSISTANCE . 684.1 PURPOSE AND AUTHORIZATION . 684.2 DEFINITIONS . 704.3 RECORDS AND REPORTS . 774.4 CONCEPTUAL STAGE RELOCATION PLAN . 784.5 RIGHT OF WAY STAGE RELOCATION PLAN . 804.6 RELOCATION SERVICES . 834.7 GENERAL PROVISIONS . 874.8 WRITTEN NOTICES . 884.9 REPLACEMENT HOUSING ELIGIBILITY REQUIREMENTS . 944.10COMPUTATIONS FOR REPLACEMENT HOUSING OFFER . 964.11COMPUTATIONS FOR REPLACEMENT HOUSING PAYMENT . 1104.12INTEREST DIFFERENTIAL AND INCIDENTAL EXPENSE PAYMENTS . 1144.13MOBILE HOMES . 1184.14RETAINED REPLACEMENT DWELLING. 1244.15PURCHASE SUPPLEMENTS ON EXPROPRIATED PARCELS . 1254.16LAST RESORT HOUSING . 1264.17APPEALS PROCESS . 1304.18CLAIMS FOR REPLACEMENT HOUSING PAYMENTS . 1314.19RESIDENTIAL MOVING PAYMENTS . 1354.20BUSINESS MOVING EXPENSES. 1404.21CLAIMS FOR MOVING EXPENSES. 153SECTION 5: PROPERTY MANGEMENT . 1575.1 PROPERTY MANAGEMENT – POLICY . 1575.2 DISPOSAL OF RESIDUALS, EXCESS RIGHT OF WAY, AND EXCESS PROPERTY . 1595.2.1 PROCESSING REQUESTS FOR DISPOSAL . 1595.2.2 OBTAINING A DISPOSAL DETERMINATION . 1605.2.3 DISPOSAL BY PRIVATE SALE . 1625.2.4 DISPOSAL BY PUBLIC BID . 1635.2.5 ABANDONMENT - EXCESS PROPERTY. 1655.2.6 DISPOSAL TO GOVERNING AUTHORITIES . 1655.3 TRANSFERS, EXCHANGES, AND ABANDONMENTS. 1665.4 MISCELLANEOUS . 1695.4.1 LAND LEASES . 1695.4.2 MINERAL LEASES. 170iiiRevised December 13, 2018
REAL ESTATE OPERATIONS MANUAL5.4.35.4.4DISPOSAL OF IMPROVEMENT ON UR PARCEL . 172INSURING DOTD OFFICE BUILDINGS . 172SECTION 6: TITLE VI . 1736.1 OVERVIEW . 1736.2 TITLE VI REQUIREMENTS AND RESPONSIBILITIES . 1746.2.1 DATA COLLECTION – PROPERTY OWNERS AND DISPLACED PERSONS . 1766.2.2 DATA COLLECTION – RETAINER CONTRACT CONSULTANTS . 1776.2.3 REPORTS ON PROTECTED CLASSES . 1776.2.4 REAL ESTATE SECTION CORRESPONDENCE PROVIDED TO COMPLIANCEPROGRAMS SECTION . 1776.2.5 COORDINATION BETWEEN COMPLIANCE AND THE REAL ESTATE SECTION. 1776.3 DISCRIMINATION COMPLAINTS . 178ivRevised December 13, 2018
REAL ESTATE OPERATIONS MANUALINTRODUCTIONThis manual is a compilation of the procedures used by the Louisiana Department ofTransportation and Development (DOTD) Real Estate Section for right of way activities on Stateand Federally funded roadway projects. The procedures are in compliance with the Federal andState regulations and laws governing eminent domain.The DOTD Real Estate Section is the oversight agency for acquisition activities in Louisiana onall right of way projects receiving State and/or Federal funds. All local public agencies (LPAs)and consultants involved in such activities must provide services in compliance with applicablelaws or risk non-certification of the project by the department. Adherence to these procedures willassure that rights of way are acquired in a manner consistent with State and Federal law.The forms and procedures contained within this manual were developed in accordance with, andunder guidance provided by, statutes and regulations in effect as of the manual’s publication date.Forms and procedures outlined in this manual will be revised in the event of a change in anyapplicable statute or regulation. Users of this manual are responsible to ensure they have the latestversion of the form or procedure applicable to their needs. The DOTD shall not be responsible forany error or loss occasioned to a user who relies on an outdated form or procedure.NOTICEAll users of this manual are hereby made aware that all Federal and State laws andregulations, whether mentioned herein or not, must be observed and followed to be incompliance with DOTD requirements.1Revised December 13, 2018
REAL ESTATE OPERATIONS MANUALRULES AND LAWS GOVERNING REAL ESTATE ACTIVITIES:Federal laws governing DOTD’s real estate activities appear in:Title 23 United States Code (Highways)http://www.ecfr.gov/cgi-bin/textidx?SID 31fb1b849470aa73194bcf743de12a10&mc true&node pt23.1.710&rgn div5Title 49 United States Code (Transportation) Part 24 Uniform Relocation Assistanceand Real Property Acquisition Policies Act of 1970 as amendedhttp://www.ecfr.gov/cgi-bin/textidx?SID 11f914fc8c5b7aeff8ddaf283a4cfeb5&mc true&node pt49.1.24&rgn div5Louisiana Laws governing DOTD’s real estate acquisition activities appear in:Title 9Title 19Title 38Title 48Louisiana Civil CodeLouisiana Constitution Article I, Section 4Louisiana Constitution Article VI, Section 21Louisiana Constitution Article VII, Section 14Louisiana Administrative Code Chapter 70Promulgated Policies and ProceduresLouisiana laws governing appraisal procedures are noted in the Appraisal Section of this manual.Louisiana laws governing acquisition and relocation assistance are fashioned after the UniformRelocation and Real Property Acquisition Act of 1970 as amended, which have been promulgatedunchanged except for references to the oversight agency, which under Louisiana law is theLouisiana Department of Transportation and Development.2Revised December 13, 2018
REAL ESTATE OPERATIONS MANUALOVERVIEW OF REAL ESTATE SECTIONThe Real Estate Section is part of the Project Development Division of the Louisiana Departmentof Transportation and Development. It is the mission of the Real Estate Section to acquire andclear rights of way on projects being developed to construct and improve the transportation andpublic works infrastructure of Louisiana.The Real Estate Section is divided into four main areas of responsibility, (1) the AdministrativeUnit (2) Appraisal Division (3) the Production Unit and (4) the Support Services Unit.The Real Estate Section's activities are carried out by the headquarters office, the regional offices,and consultants. The Headquarters staff and regional right of way staff work closely together tohandle the many details of right of way acquisition.ORGANIZATIONAL STRUCTUREThe Administrative Unit is overseen by the Real Estate Administrator, who establishes andadministers the policies of the Real Estate Section and oversees the Real Estate Section’s activities.The Appraisal Division is overseen by a Chief Appraiser. The Appraisal Division is responsiblefor the appraisal function of the Department. They appraise property and review appraisals toestablish fair market value. The Appraisal Division oversees the appraisal activities of local publicagencies on state and federally funded projects to ensure full compliance with applicable laws andpolicies.The Production Unit is overseen by the Assistant Real Estate Administrator of Production. TheProduction staff is responsible for all acquisition and relocation activities. In addition, they overseelocal public agencies handling acquisition activities on state and federally funded projects to ensurefull compliance with applicable laws and policies.The Support Services Unit is overseen by Assistant Real Estate Administrator of SupportServices. The Support Services staff is responsible for overseeing consultant contracts andproperty management activities of the section.3Revised December 13, 2018
REAL ESTATE OPERATIONS MANUALSECTION 1: APPRAISAL1.1PURPOSEThe purpose of this manual is to provide the fee appraiser, fee Review Appraiser, and othervaluation specialists with a reference for information on procedures, available materialsand Department requirements for real estate appraisal reports with the intention ofstandardizing procedures to insure uniform practices. The following section summarizesthe appraisal requirements for Federal and State Projects in the State of Louisiana underTitle 49, Part 24 Subpart B - Real Property Acquisition.1.Appraisals for both federal projects, state projects and state agencies, should comply withthe Federal Uniform Act. The basic requirements under Title 49 Part 24 Subpart B – “RealProperty Acquisition for Federal and Federally Assisted Programs” include:a. Before the initiation of negotiations, the Agency shall appraise and establish anamount, which it believes to be just compensation for the real property required.b. The owner or the owner’s designated representative shall be given the opportunityto accompany the appraiser during the appraiser’s inspection of the property.c. Appraisal Requirements1) The appraisals are to be prepared in conformance with the UniformStandards of Appraisal Practice (USPAP); Louisiana State Law and theguidelines of the Department of Transportation and Development and theUniform Appraisal Standards For Federal Land Acquisitions (UASFLA where applicable).2) The State Agency has a legitimate role in the appraisal process, especiallyin determining the “scope of work” necessary to complete the appraisalprocess and in “defining the appraisal problem”. (24.103 & 24.103(a))3) The appraisals must comply with the following minimum requirements.a) Adequate description of the physical characteristics of the realproperty including any personal property (and in the case of partialacquisitions, an adequate description of the remaining property)b) Title data, location data, zoning (if zoned, a map should beprovided), present use, analysis of the highest and best use, and a 5year sales history of the property. If the real property is improved, adiscussion of the highest and best use “as though vacant” and “asimproved” must be provided.c) Any known or observed encumbrances.4Revised December 13, 2018
REAL ESTATE OPERATIONS MANUALd) The appraiser must consider the three traditional approaches tovalue (Cost, Sales Comparison, and Income Capitalization) withapplication of any relevant and reliable approaches to value. Anyomission of one of the traditional appraisal approaches should bejustified. The appraiser must include an analysis of the approachesdeveloped with a correlation to value that is sufficient to support theconclusion to value.e) The description of each comparable sale shall include all relevantphysical, legal and economic factors, including parties to thetransaction, the type and method of financing, verification with aparty involved in the transaction and the date of verification. Thepersonal analysis portion of the comparable sheet should be theappraiser’s independent determination. A photograph of eachcomparable sale is required along with the date the photograph wastaken and the date the comparable sale was inspected by theappraiser.f) The appraisal shall include a statement of the appraised value of theproperty to be acquired and for a partial acquisition, the value of anydamages or benefits, if any, to the remaining real property, whereappropriate along with any additional compensation that may accruebased on the acquisition.g) The appraisal shall state the effective date of the valuation, date ofthe appraisal report, signature and certification of the appraiser.h) In the before valuation, the appraiser shall include a statement thatno consideration was given to any increase or decrease indetermining the fair market value of the real property caused by theproject for which the property is being acquired or that would beacquired for the project. This should be disclosed as a DOTDAssignment Condition in the appraisal.A licensed appraiser should prepare real estate appraisals which meet the above requirements andare complete and well documented.2.Appraisal reviews must comply with the Federal Uniform Act Title 49, Part 24.104. TheReview Appraiser shall examine the presentation and analysis of market information in allappraisals to assure that they meet the guidelines of the State of Louisiana, FederalHighway Department, and the Louisiana Department of Transportation and Development.The complexity of the Appraisal Problem will determine the level of the Review Analysis.The Review Appraiser shall obtain any corrections or revisions prior to acceptance of theappraisal as recommended for the basis of compensation. The Review Appraiser shouldidentify each appraisal report as “Recommended” (as the basis for the amount believed to5Revised December 13, 2018
REAL ESTATE OPERATIONS MANUALbe just compensation), “Accepted” (meets all requirements, but not selected asrecommended or approved), or “Not Accepted”. The Review Appraiser should alsoapprove the appraisal as the basis for the establishment of the amount believed to be justcompensation and prepare a report reflecting the amount believed to be just compensation.If the Review Appraiser is unable to recommend or approve an appraisal as an adequatebasis for the establishment of the offer of just compensation, the reviewer should preparea separate written appraisal report that identifies the appraisal reports reviewed and outlinesthe Review Appraiser's findings, support and conclusions to the value of the property beingacquired and any damages or benefits to the remainder property. The appraiser shallprepare a certification that states the parameters of the review. The certification shall statethe approved value which is believed to be just compensation for acquisition.The Review Appraiser will disclose the dates that the subject property and the comparablesales included in the appraisal report were inspected. If the right of way maps are revisedand/or the appraisal requires updating due to time, the Review Appraiser will be requiredto re-inspect.1.2OVERVIEW OF THE PURPOSE OF THE APPRAISAL AND APPRAISALREQUIREMENTS1. The laws of Louisiana provide that compensation must be paid for the value of real propertyor rights acquired.The appraiser should perform an analysis of the market demand giving consideration to theproperty’s highest and best use. When a property is composed of more than a single highestand best use, the appraiser must determine the highest and best use for each larger parcelbeing appraised and support each portion separately.2. All market data, comparable sales, forms, etc., are required items in the DOTD appraisalreport. The appraisal must meet Uniform Standards of Professional Appraisal PracticeUSPAP, State and Federal Laws, DOTD policies and procedures and the UniformAppraisal Standards for Federal Land Acquisitions (UASFLA – where applicable).3. All recognized appraisal procedures and approaches to value: the cost approach, the salescomparison approach, and the income capitalization approach, which apply to the propertyunder appraisement, must be considered by the appraiser and utilized if found to beapplicable. Analysis and reconciliation of approaches to value used must be sufficient tosupport the appraiser’s opinion of value. Omission of an approach must be explained.1.3SCOPE OF WORK1.When acquiring real property, DOTD has a legitimate role in contributing to the appraisalprocess, especially in developing the scope of work and defining the appraisal problem.6Revised December 13, 2018
REAL ESTATE OPERATIONS MANUAL2.The scope of work and development of the appraisal under these requirements depends onthe complexity of the appraisal. Immediately contact the Review Appraiser, if during theappraisal process the appraiser determines the scope of work for an appraisal reportrequires revision.3.The DOTD has the responsibility to assure that the appraisals it obtains are in compliancewith the definitions of “appraisal” in 49 CFR 24.2(a)(3) and uses federal and federallyassisted appraisal practice relevant to its’ program needs.4.They must also meet the following requirements:a. provide an adequate description of the physical characteristics of the property beingappraised (and, in the case of a partial acquisition, an adequate description of theremaining property), including:1) Items identified as personal property2) A statement of the known and o
REAL ESTATE OPERATIONS MANUAL TABLE OF CONTENTS . property management activities of the section. 4 . Revised December 13, 2018. REAL ESTATE OPERATIONS MANUAL SECTION 1: APPRAISAL . 1.1 PURPOSE . The purpose of this manual is to provide the fee appraiser, fee Review Appraiser, and other .
