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This training module was last updated in September, 2005.
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The
following steps represent the general process an agency must follow
under the URA when acquiring property under threat of eminent domain:
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Notify owner of the agency's intentions to acquire the property
and their protections under the URA
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Appraise the property and invite the owner to accompany the
appraiser
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Review the appraisal
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Establish just compensation for the property
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Provide owner with written offer and summary statement for property
to be acquired
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Negotiate with owner for the purchase of property
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If negotiations are successful, complete the sale and reimburse
property owner for related incidental expenses
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If negotiations are unsuccessful, consider an administrative
settlement to complete the sale
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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.
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