Displacement Plan for CDBG and HOME

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Federal Register / Vol. 54. No. 40 / Thursday. March 2, 1989 / Rules and Regulations lite property W be acquired is not of an intended. planned. or wanted project area where all or ohstantially all of the property within -td10 area is to be acquired within specific dote limits. (shit The Agency will not acquire the ,property in the event negotiations fail to result in an amicable agreement, and the owner is so informed in writing. (iv) The Agency will inform the owner of what It beeves to be the fair market *slue of the property. (2) Acquisitions for programs or projects undertaken by an agency or person that receives Federal financial assistance but doesnot have authority. veatdome to acquire property by provided that such Agency or person shall: (1) Prior to making an offer for the property. clearly advise the owner that It is unable to acquire the property in the event negotiations fail to result in an amicable agreement; and (ii) Inform the owner of what it believes to be fair market value of the property. (3) The acquisition of real property &cin a Federal agency, State. or State agency. if the Agency desiring to make the purchase does not have authority to acquire the property though condemnation. (4) The aeon of real property by a cooperative from a perion who. as a condition of membership in the cooperative. has agreed to provide without charge any real property that b needed by the cooperative, (b) Less -than -full -fee interest in real property. In addition to fee simple title, the provisions of this subpart apply when acquiring fee title subject to retention of a life estate or a life use; to acquisition by leasing where the lease terra. including option(a) for extension. to 50 years or more; and to the acquisition of permanent easements. (See Appendix A of this part, li 24.101(b).) (c) Federally -assisted projects. For projects receiving Federal financial assistance. the provisions of 11 24.102. 24.103, 24.104, and 24.105 apply to the :realest extent practicable =der State law. (See f 24.4(a).] fM102 y (a) Expeditious acquisition. The Agency shall make every reasonable effort to acquire the real property expeditiously by negotiation. (b) Notice to owner. As soon as feasible, the owner shall be notified of the Agency's interest in acquiring the real property and the basic protections agency'sinchiding the don to secure ; apprgisal, to the owner by law and this part. (See also 24.20'.) (c) Appraisal. waiver thereof. and invitation to owner. (1) Before the initiation of negotiations the real properry to be acquired shall be appraised except as provided in 1 24.102(c)(2), and the owner, or the owner's designated representative, shall be giver: an opportunity to accompany the appraiser during the appraiser's inspection of the property. (2) An appraisal is not required if the owner is donating the property and releases the Agency from this obligation. or the Agency determines that an appraisal is unnecessary because the valuation problem is uncomplicated and the fair market value 1s estimated at $2.500 or less. based on a review of available data. (d) Establishment and offer of just compensation. Before the initiation of negotiations. the Agency shall establish an amount which it believes is just compensation for the real property. The amount shall aot be less than the approved appraisal of the fair market value of the property. taking into account the value of allowable damages or benefits to any remaining property. (See also !E 24.104.) Promptly thereafter. the Agency shall make a written offer to the owner to acquire the property for the full amount believed to be just (e) Summary statement. Along with the initial written purchase offer, the owner shall be given a written statement of the basis for the offer of just compensation, which shall include. (1) A statement of the amount offered as just compensation. In the case of a partial acquisition. the compensation for the real property to be acquired and the compensation for damages, if any. to the remaining real property shall be separately stated. (2) A description and location identification of the real property and the interest in the real property to be acquired (3) An identification of the buildings' structures, and other improvements (including removable building equipment and trade fixtures) which are considered to be part of the real property for which the offer of just complain ...ia made. Where appropriate, the statement shall identify any separately held ownership interest in the property, e.g., a tenant -owned improvement, and indicate that such interest is not covered by the offer, (1) Basic negotiation procedures. The Agency shall inake reasonable efforts to contact the owner or the owner's rwe,.prres�e__nta�iti�ve.,and discuss its offer to Purchase the di. , Iodla the basis for the offer of just compensation: and, explain its acquisition policies and procedure.. including its payment of incidental expenses in accordance with 24.108. The owner ahaU be given reasonable opportunity to consider the offer and present material which the owner believes 1s relevant to determining the value of the property and to suggest modification in the proposed terms and conditions of the purchase. The Agency shall consider the owner's presentation. (g) Updating offer of just compensation. if the information presented by the owner. or a material change in the character or condition of the property. indicates the need for new appraisal information. or if a significant delay has occurred since the time of the appraisals) of the property. the Agency shall have the appraisal(s) updated or obtain a new appraisal(.). If the latest appraisal information indicates that a change in the purchase offer is warranted. the Agency shall pmahptly reestablish Just compensation and offer that amount to the owner is writing. (h) Coercive action. The Agency shall not advance the time of condemnation. or defer negotiations or condemnation or the deposit of finds with the court. or take any other coercive action in order to induce an agreement on the price to be paid for the property. (1) Administrative settlement The purchase price for the property may exceed the amount offered as just compensation when reasonable efforts to negotiate an agreement at that amount have failed and an authorized Agency official approves such administrative settlement as being reasonable, prudent, and in the public interest. When Federal funds pay for or participate in acquisition Costs, a written justification shall be prepared which indicates that available information (e.g., appraisals. recent court awards, estimated trial coats, or valuation problems) supporta such a settlement , (j) Payment before taking possession. Before requiring the owner to surrender possession of the realproperty„ the Agency shalipay the agreed purchase price to the owner. or in the case of a condemnation. deposit with the court. for the benefit of the owner, an amount not less than the Agency's approved appraisal at the fair market value of such property. or the court award of compensation in the condemnation proceeding for the property. la exceptional circumstances, with the prior approval of the owner. the Agency may obtain,* rlgbtraf-entry foe .1: ,. „