Key Acquisition Steps - Involuntary Acquisition

Information by State  Print version   In This Section Introduction and Objectives   Overview of the URA   Planning   What is a Program or Project?   Voluntary vs. Involuntary Acquisition   Involuntary Acquisition   Who is/ Who is Not Displaced?   Relocation Notices   Relocation Advisory Services   Residential Relocation   Housing of Last Resort   Temporary Relocation   Nonresidential Relocation   Overview of Section 104(d)   Additional Information This training module was last updated in September, 2005.

The following steps represent the general process an agency must follow under the URA when acquiring property under threat of eminent domain:

• Notify owner of the agency's intentions to acquire the property and their protections under the URA
  
  
• Appraise the property and invite the owner to accompany the appraiser
  
  
• Review the appraisal
  
  
• Establish just compensation for the property
  
  
• Provide owner with written offer and summary statement for property to be acquired
  
  
• Negotiate with owner for the purchase of property
  
  
• If negotiations are successful, complete the sale and reimburse property owner for related incidental expenses
  
  
• If negotiations are unsuccessful, consider an administrative settlement to complete the sale
  
  
• If negotiations are still unsuccessful, the agency should acquire the property through use of eminent domain

What is "just compensation"?

Just compensation is derived from the appraisal process. Typically, the approved appraisal's estimate of fair market value is the basis for the amount of just compensation offered for the property to be acquired. Just compensation cannot be less than the approved appraisal's estimate of fair market value of the property being acquired.

What is an administrative settlement?

When negotiations result in a purchase price exceeding the agency's estimate of just compensation, it is called an administrative settlement. Administrative settlements are made for administrative reasons that are considered to be in the best interest of the public. Authorized agency officials may approve administrative settlements if they are:

• Reasonable
• Prudent, and
• In the public interest
  

Agency files should include proper documentation to justify and support the decision for an administrative settlement.

Where can you go to find more information about these acquisition process and related requirements?

You should consult 49 CFR 24.102-.108 and Chapter 5 of HUD Handbook 1378 for more guidance.