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This training module was last updated in September, 2005.
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Oftentimes,
HUD funded projects require the acquisition of real property. Agencies
may acquire the needed real property from owners by voluntary or
involuntary means. Under the URA, an acquisition is considered to
be involuntary when an agency acquires property under threat or
use of eminent domain. Eminent domain is the power of the government
to take private property for public purposes with payment of just
compensation.
The
Fifth Amendment of the U.S. Constitution states that "private
property shall not be taken without payment of just compensation"
and that "no person shall be deprived of life, liberty, or
property without due process of the law." These constitutional
rights form the basis of the URA's protections for property owners.
The
URA requirements for voluntary acquisitions and involuntary acquisitions
differ significantly. While there are protections for property owners
in both circumstances, only involuntary acquisitions trigger the
full acquisition requirements of the URA found in 49 CFR Part 24
Subpart B.
Grantees
must understand the critical differences between voluntary acquisitions
and involuntary acquisitions under the URA before acquiring property
for a HUD funded project.
What
makes a transaction "voluntary"?
- For agencies with eminent domain authority, if:
- No specific site is needed and any of several properties
could be acquired for project purposes; and
- The property is not part of an intended, planned or designated
project area where other properties will be acquired within
specific time limits; and
- The agency informs the owner in writing of the property's
market value; and
- The agency also informs the owner in writing that the property
will not be acquired, through condemnation, if negotiations
do not reach an amicable agreement.
- If tenants are displaced, the tenants are provided relocation
assistance.
- For
agencies without eminent domain authority, if:
- The agency notifies the owner in writing of the property's
market value; and
- The agency notifies the owner prior to making an offer,
that it will not acquire property if an amicable settlement
cannot be reached.
- If tenants are displaced, the tenants are provided relocation
assistance.
Where
can you go to find more information about voluntary and involuntary
acquisition?
You
should consult 49 CFR 24.101(b)(1)-(5) and Chapter 5 of HUD
Handbook 1378 for more guidance.
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