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Acquisition
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  1. Acquisition James Robnett Jr. Acquisition Specialist CDBG Program

  2. Uniform Act Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as Amended 49 CFR Part 24 www.hud.gov/relocation

  3. Uniform Act Purpose 49 CFR 24.1 • To ensure that owners of real property to be acquired are treated…fairly and consistently: • To ensure that persons displaced are…treated fairly, consistently, and equitably; and, • To ensure that agencies implement these regulations in a manner that is efficient and costs effective.

  4. Acquisition Requirements Do Not Apply • If the grantee acquired the property prior to the date of the pre-application public hearing • If property is for a temporary easement, not necessary for the project • If property is acquired from another government agency without the power of condemnation • If it is a non-site specific acquisition

  5. Why does the Uniform Act Apply to CDBG projects?

  6. Uniform Act Applies To • Acquisitions in a “federally-assisted” project Uniform Act at 24.101(b) & (d) from the date of the CDBG application public hearing • Acquisitions whether done by • Grantee • Sub-grantee - water or sewer district • Corporation or business • Non-profit, such as a senior center organization • Acquisition whether done with or without the use of CDBG funds. The source of funds used for the acquisition does not matter; it only matters that CDBG funds are used in your project - no matter the purpose or activity.

  7. Uniform Act Applies To • ALL CDBG project categories whether it is: • Economic Development • Public Facility – water or sewer • Downtown Revitalization, • Community Facility, • Other Public Need: • ADA compliance • bridge/street/drainage • Rural Affordable Housing (RFP) • Regardless of the category or the source of funds used to acquire an easements, parcel, building, or right of way the requirements of the Uniform Act apply.

  8. Types of Acquisitions Subject to Uniform Act • Fee simple title/parcel of land • Permanent easement(s) • Temporary easements necessary for the project, i.e., construction-easement • Right of Way • Long-term leases of 50 years or more

  9. Check Deed Records to Determine Ownership

  10. A Preliminary Acquisition Notice Must Contain • Statement of Grantee’s Interest to acquire the property for the purpose of their CDBG project • Request Seller’s Disclosure of any tenants • Notice of right of “just compensation” • Notice of right to an appraisal and review appraisal and right to accompany the appraiser during the appraisal • Copy of HUD brochure, “When a Public Agency Acquires Your Property.” Download HUD brochures at: www.hud.gov/offices/cpd/library/relocation/publications/ • Name, address, and phone number of grantee’s project acquisition contact person

  11. Document Deliver Of Preliminary Acquisition Notice

  12. Seller’s Disclosure of Tenant(s) • NEW - Sample Tenant Disclosure Letter to Seller • NEW - Sample Seller Disclosure Verification of Tenant form online at: www.ded.mo.gov; CDBG Forms • Seller of a home must complete it and sign it • Submit a copy to your CDBG field rep • Grantee must have the signed Seller Disclosure form in grantee’s project files at monitoring visit.

  13. Determine Just Compensation/Appraisals • If the property is valued at greater than $10,000, then two appraisals are required • The first appraisal must meet the state’s professional appraisal standards • The second appraisal is only a “review appraisal” • Property valued less than $10,000 only needs proof of how the property’s value was actually determined “based on a review of available data”

  14. Grantee’s Offer Letter

  15. Develop Written Statement for Basis of Just Compensation • Description & location of property and name of owner • Purpose of purchase • Inventory, is applicable if home or building acquired • Declaration of offer - amount based on appraisal, or based upon “review of available data”

  16. Successful Acquisition • 99.9% of project acquisitions are successful whether achieved by donation or purchase. • However, if necessary, a grantee may have to exercise their statutory right of condemnation. • A Condemnation Petition should only be filed after all Uniform Act procedures have been completed/exhausted.

  17. Final Offer & Condemnation • Issue “final offer” letter: • Emphasize benefits of project • Costs of delay to citizens • Final offer based on appraised value • Include a response deadline/failure to meet deadline will result in grantee’s exercise of statutory right of condemnation • If no response by property owner, Grantee may decide to file a condemnation petition

  18. Recordkeeping and Monitoring • One or two monitoring visits are conducted during the course of a project, at which, the project’s acquisition records will be reviewed. Have an organized individual file for each easement or parcel acquisition • Interim monitoring visit, if necessary • Close-out monitoring visit

  19. Recordkeeping and Monitoring • Each family’s acquisition file must have: • Ownership documentation of property owner(s) and their property - deed • Documentation that owner was informed of: • Uniform Act Rights • Received Timely Preliminary Acquisition Notice • Copy of appraisal and review appraisal • Copy of the offer letter inclusive of the statement of the basis for the determination of just compensation

  20. Recordkeeping and Monitoring

  21. Easements/Donations • NO Blanket Easements – per RSMo 523.282.1 The Grantee’s or Subgrantee’s attorney must ensure compliance with this state statutory requirement. • Sample Easement format is available, but it is strictly a sample that the grantee or subgrantee may use and have their attorney modify to achieve compliance with the above statute.

  22. Easements/Donations • We DO NOT review draft easements for compliance; your attorney must review all easements for state statutory complaiance • Uniform Act acquisition procedures apply to easement donations and purchases and must be followed. • Use CDBG easement brochure at IX-21

  23. Easements/Donations • Easement Owners Have Same Three Uniform Act Rights • Just Compensation • Appraisal & Review Appraisal • Right to Accompany the Appraiser • Donation of Easement • A property owner may donate their easement to the project after being fully informed of their Uniform Act Rights. • Have them sign donation & waiver of rights form

  24. Jointly Funded Projects • Always follow the Uniform Act procedures as outlined in the CDBG Manual even when projects are jointly funded with other agencies, i.e., Rural Development, DNR, and/or MO DOT; EXCEPT with SEMA projects. • Then, follow SEMA’s appraisal and review appraisal regulations. • Only a first appraisal required to determine offer. • Only if offer appealed, then do a desk-top review appraisal • Please contact your field rep with any compliance questions you may have.

  25. Acquisition ComplianceTHE END!