Dated: April 2015
The U.S. Department of Transportation (DOT) is the Lead Agency for implementing the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (Uniform Act), as amended. The Secretary of Transportation delegated Lead Agency responsibility to the Administrator of the Federal Highway Administration (FHWA). This report on Uniform Act implementation activities in calendar year 2014 is in response to the Presidential memorandum of February 27, 1985, which called for annual reports on Uniform Act implementation.
As Lead Agency, FHWA’s primary responsibilities are to:
The Uniform Act applies to all programs or projects undertaken by Federal Agencies with Federal financial assistance that require the acquisition of real property or that cause displacement of people. This report will be used to integrate several reports the Lead Agency develops throughout the year.
In 2012, the Moving Ahead for Progress in the 21st Century Act (MAP-21) modified the Uniform Act to provide enhanced Federal Agency coordination, statutory benefit-level increases, a regulatory method for determining and adjusting certain benefit levels, a relocation streamlining demonstration initiative, and new annual reporting requirements. The FHWA is developing a Notice of Proposed Rulemaking (NPRM) to make regulatory changes to Title 49, Code of Federal Regulations (CFR), Part 24, covering the Uniform Act.
The FHWA began its outreach to 17 other Federal Agencies subject to the Uniform Act immediately after MAP-21 was enacted. For this purpose, FHWA and the other Federal Agencies formed a working group of about 25 people to discuss not only the amendments to the 49 CFR 24 required by MAP-21 but other clarifications or modifications that could be considered at this time to streamline, improve, and update the regulation for practitioners and grantees.
The FHWA led 10 conference calls with the initial working group covering 84 sections of 49 CFR 24. After concluding the first working group’s efforts by developing a comprehensive list of proposed changes and the rationale for the changes, FHWA convened a second working group. During seven conference calls, this second group reviewed the proposed changes and identified approximately 50 items that should be advanced in an NPRM for 49 CFR 24.
Per Section 214 (Agency Coordination) of the Uniform Act, the Office of Real Estate Services has been negotiating Memoranda of Understanding (MOU) with the Federal Agencies that are subject to the Uniform Act. The Office has executed agreements with the Department of the Interior and the General Services Administration, while expecting to complete MOUs with the Department of Energy and the Federal Emergency Management within 60 days. By the end of calendar year 2015, the Office hopes to have MOUs signed with other agencies such as the Department of Health and Human Services, the Environmental Protection Agency, and the Department of Housing and Urban Development. The remaining agreements will be signed with the other Uniform Act Agencies in early calendar year 2016.
The MAP-21 Relocation Streamlining initiative is meant to find ways to accelerate project delivery by establishing a relocation streamlining demonstration program. The demonstration program, which is scheduled to run through 2016, allows a lump-sum payment for the acquisition amount and relocation benefits at settlement rather than a two-part payment process in which the displaced person must demonstrate incurred expenses and request reimbursement. This lump-sum payment, if elected by the displaced occupant, will represent final just compensation for the property acquired as well as an estimated amount for eligible relocation benefits. The streamlining initiative applies only to FHWA’s program and is available only for residential relocations.
Three States (California, Maryland, and Utah) have approved work plans to participate in the demonstration program. The FHWA produced a relocation brochure that participating States can give to displaced persons explaining the demonstration program.
Maryland and Utah advanced a project using the demonstration program in 2014. They reported that the parcels using the streamlined process settled 35-47 days faster than with the traditional program. As part of the demonstration program, the States will conduct followup interviews with participants and displaced persons to gather feedback on the process. In addition, the States will use the interviews to find out how many displacees relocated into Decent, Safe, and Sanitary (DSS) housing, whether displacees spent more or less than they received, and the level of satisfaction of the displacees with the streamlining program.
Utah has several more projects with 25-50 relocations each on which they will be using the lump-sum payment method. California and Maryland have indicated they do not have any relocations planned for the demonstration program. In June 2014, FHWA sent a second invitation to its field offices to solicit additional participation, but no further States agreed to do so.
The FHWA, which has written an interim report on the program’s midpoint achievements, found that too few parcels had been acquired to base conclusions on whether the program might be successful nationally.
Each year, FHWA supports projects to advance the state of the practice and to identify and disseminate best practices in Uniform Act implementation. When research projects are completed, FHWA shares the results with other Uniform Act agencies at bi-annual implementation meetings. In addition, FHWA posts the research reports on its Web site at this link: https://www.fhwa.dot.gov/real_estate/right-of-way/research/index.cfm.
The following information summarizes research activity during 2014:
Electronic Offers and Notices
The purpose of this research is to determine if the use of electronic offers could be carried out in a manner consistent with the Uniform Act requirements. The FHWA conducted research to consider if proposed regulatory changes allowing electronic offers and notices should be included in NPRM for 49 CFR 24. The Office of Real Estate Services submitted the initial draft report to FHWA’s Office of Chief Counsel for review and approval.
Option Contract Valuation
In addition to revising the Uniform Act, MAP-21 amended Title 23, United States Code, Section 108 (Advance Acquisition of Real Property) making it possible for State departments of transportation (SDOT) to use option contracts to purchase property right or acquire other limited property rights as part of a federally funded early acquisition project. The FHWA initiated research to examine what types of options are appropriate for SDOT usage, how consideration should be determined, and if and to what extent Federal-aid highway funds should participate in the option consideration.
Reverse Mortgages
The FHWA launched this research to identify the unique issues and challenges associated with acquiring and relocating individuals with reverse or Home Equity Conversion Mortgages (HECM) on property to be acquired for federally funded projects. Although most homeowners make monthly payments on their mortgages, HECM’s involve a single equity payment to the homeowner, with the loan repaid upon disposal of the house, often following the death of the owner. This reverse situation poses unique challenges for a federally funded real property acquisition program, including how to determine the cost of a replacement HECM and displaced persons eligibility for a payment necessary to purchase a replacement HECM.
The research offered several examples of calculations for estimating HECM replacement costs as a reimbursable expense under the Uniform Act. The FHWA used the findings in developing proposed changes to 49 CFR 24 that would reimburse the difference between the existing HECM balance and the minimum dollar amount necessary to purchase a replacement HECM providing the same or similar terms as that for the HECM on the displacement dwelling. In addition, payments would include other debt service costs, if not paid as incidental costs, and would be based only on HECMs that were valid liens on the displacement dwelling for at least 180 days prior to the initiation of negotiations.
Electronic Vs. Paper Systems
Many SDOTs have converted from a manual or paper system to an electronic system for data and record keeping or a hybrid mixture of paper and electronic. This research will provide FHWA with tangible and easily understandable documentation that State and local transportation professionals can use in implementing electronic information management systems for right-of-way and related activities. The FHWA expects to complete the final report in September 2015.
The Office of Real Estate Services regularly works with the National Highway Institute (NHI), to update Uniform Act training courses. The FHWA also develops courses to foster Uniform Act implementation, as needs are identified.
In 2014, the Office of Real Estates Services continued its NHI partnership in advancing the development of the following course:
Eminent Domain for Appraisers and Attorneys
The NHI and the Office of Real Estate Services are developing this course as mid-level training for Uniform Act practitioners who may not have experience in the eminent domain process. The NHI will deliver the course using a hybrid system that combines instructor-led and Web-based training. This The FHWA expects to complete preparations for the course by the end of calendar year 2015.
The FHWA posts additional information on its courses here: https://www.fhwa.dot.gov/real_estate/right-of-way/training/index.cfm
As Lead Agency, FHWA focused on several key Uniform Act program areas in 2014. The following is a representative sample of program areas where FHWA provided support and technical assistance to all Uniform Act Agencies as well as our 52 FHWA division offices.
Relocation Assistance
On March 25, 2014, FHWA issued guidance for SDOT Federal-aid recipients concerning the implementation of MAP-21 amendments to the Uniform Act that took effect on October 1, 2014. In addition, FHWA shared this implementation policy with other Federal Agencies. We also held a webinar explaining the guidance to our internal and external partners.
The Office of Real Estate Services provided relocation technical assistance on 180 relocation program inquiries to FHWA division, SDOT, other Federal and local public agencies, consultants, and private citizens.
On December 11, 2014, FHWA extended the Temporary Waiver of Methodology for calculating replacement housing payments for displacees with negative equity, also referred to as "upside-down" or “underwater” mortgages where the fair market value of the property (or just compensation) is less than the outstanding debt in the form of the mortgage. The waiver will remain in effect until December 31, 2016, unless FHWA extends or rescinds it. Under this waiver, SDOTs may enter into an administrative settlement for the acquisition of a property with negative equity without affecting the calculation and reimbursement of a replacement housing payment. The FHWA shared the waiver with other Federal Agencies, several of which implemented a similar temporary waiver.
Local Public Administration Program
The Office of Real Estate Services is finalizing research that will enhance effective oversight and stewardship of local public agencies (LPA). The final product will be an LPA oversight and stewardship toolkit to help improve the quality of LPA oversight, which will be reflected in such characteristics as active involvement between State and local agencies, delivery of programs on schedule and within budget, and compliance with the Uniform Act. The toolkit will be a data-driven resource that also identifies the state of the practice, emerging effective practices, perceived barriers, and impacts resulting from the implementation of LPA realty oversight and stewardship programs. The final contents of the toolkit will contain Microsoft Excel spreadsheets, check sheets, narrative synopsis reports, and a collection of best practices reflected in reports, and other resources.
Under MAP-21, all Federal Agencies that engage in Uniform Act acquisitions must send an annual summary report to the Lead Agency. Agencies may submit:
At the end of the second year of this MAP-21 requirement, FHWA received six annual summary reports from other Federal Agencies: Department of the Interior (DOI), General Services Administration (GSA), Department of Housing and Urban Development (HUD), National Aeronautics and Space Administration (NASA), Naval Facilities Engineering Command (NAVFAC), and U.S. Army Corps of Engineers (USACE). In addition, three Administrations within the DOT submitted annual data for fiscal year 2014: Federal Aviation Administration (FAA), Federal Transit Administration (FTA), and FHWA.
All of the annual reports FHWA received in 2014 are attached, but the following is a summary:
As Lead Agency, FHWA hosts informational meetings to identify and discuss Uniform Act implementation issues. In 2014, FHWA hosted two "All-Federal Agencies Uniform Act Implementation Meetings." Federal Agencies in attendance included the NAVFAC, FAA, HUD and FTA.
The FHWA held the first 2014 “All-Federal Agency” meeting on May 8. This meeting focused on the progress in developing a draft NPRM for 49 CFR 24. First, FHWA discussed the NPRM process and answered questions concerning timelines associated with the rulemaking. Next, FHWA explained the MAP-21 updates, including the MOU and annual reporting requirements. The FHWA also explained several relocation and acquisition research projects including the “Relocation Streamlining Demonstration Project."
The FHWA held the second "All-Federal Agency" meeting on November 14. Director Virgil R. Pridemore of the Office of Real Estate Services welcomed the group and HUD introduced new key employees. Several Agencies shared their experiences implementing the MAP-21 requirements and FHWA led discussions on the MOU, annual reporting, enhanced Lead Agency services, training, and research topics.
This report has summarized FHWA’s activities as Lead Agency for the Uniform Act. The FHWA will post the report on its Web site at https://www.fhwa.dot.gov/real_estate/. The Web site contained additional information on Uniform Act resources, efforts, and reports.
