Exhibit_B_-_AC-150-5100-17-Change-7-Land-Acquisition.pdf

U.S. Department of Transportation

Federal Aviation

Administration

Advisory Circular

Subject: Land Acquisition and Relocation

Assistance for Airport Improvement Program

(AIP) Assisted Projects

Date: 7/10/2017

Initiated By: APP-400

AC No: 150/5100-17

Change: 7

1 Purpose.

This change is made to update the subject advisory circular for amendments to the

Uniform Relocation Act (Section 1521 of the Moving Ahead for Progress in the 21st

Century Act; MAP-21). This AC contains the Federal Aviation Administration’s

(FAA) standards and requirements for airport land acquisition and relocation procedures in conformance with the Uniform Relocation Assistance and Real Property Acquisition

Policies Act of 1970 (Pl 91-646, as amended), also known as the Uniform Relocation

Act (URA). Title 49 Code of Federal Regulations Part 24 (49 CFR 24), Uniform

Relocation Assistance and Real Property Acquisition for Federal and Federally Assisted

Programs implements the Uniform Relocation Act on AIP assisted projects and programs. This advisory circular (AC) provides guidance to airport owners and operators (sponsors) for Airport Improvement Program (AIP) assisted projects to develop their land acquisition and relocation assistance procedures in conformance to the Uniform Relocation Act and its implementing regulations.

The URA provides minimum real property acquisition policies, and requires uniform and equitable treatment of persons displaced as a result of a federally-assisted program or project. The stated purpose of the URA is to ensure that affected persons do not suffer disproportionate injuries as a result of programs and projects designed for the benefit of the public as a whole and to minimize the hardship of displacement on such persons. The provisions of the URA and 49 CFR Part 24 apply to all AIP projects with federal funds in any phase or portion of the project, i.e., the planning, design, land acquisition, or construction phases.

2 Cancellation.

AC 150/5100-17, Land Acquisition and Relocation Assistance for Airport Improvement

Program (AIP) Assisted Projects, change 6, dated November 7, 2005, is cancelled.

7/10/2017 AC 150/5100-17 CHG 7

ii

3 Application.

The FAA requires the procedures and documentation standards described in this AC for use in implementing land acquisition and relocation assistance measures on AIP programs and projects. The FAA on AIP programs has the responsibility to ensure uniform and equitable treatment to persons affected by federally-assisted airport land acquisition programs, within the provisions and entitlements of the 49 CFR 24. Use of the AC is mandatory for all projects funded with federal grant monies through the

Airport Improvement Program (AIP). These procedures are recommended and reimbursable but are not mandatory for projects where all work and phases are locally funded under the Passenger Facility Charges (PFC) Program.

4 Principal Changes.

Changes are marked with vertical bars in the margin. The AC incorporates the following principal changes:

1. The MAP-21 eligibility and payment amendments listed below are inserted in the

AC to replace the former requirement:

a. The maximum statutory benefit for replacement housing payments for displaced homeowners is increased from $22,500 to $31,000 and replacement housing payments for displaced tenants from $5,250 to $7,200. Note this is a change to the statutory limit as a threshold amount for Housing of Last Resort Procedures

(per 49 CFR 24.404, see Section 6.5 of this AC). There is no change in the eligible calculation of the replacement housing payment amount.

b. The length of occupancy requirement for homeowners was reduced from 180 days to 90 days in occupancy before the initiation of negotiations.

c. The MAP-21 also amended the maximum statutory benefit for business reestablishment benefits from $10,000 to $25,000, and the fixed payment for nonresidential moves from $20,000 to $40,000.

d. By law, these changes became effective on October 1, 2014.

2. Technical corrections have been made to Appendix D Sponsor Certification of Title.

3. This AC is formatted to the current style template that results in updated paragraph numbering (see table of contents of change 7).

5 Feedback on this AC.

If you have suggestions for improving this AC, you may use the Advisory Circular

Feedback form at the end of this AC.

Elliott Black

Director, Office of Airport Planning and Programming

CONTENTS

Paragraph Page iii

Chapter 1. Uniform Act Requirements ..................................................................................1-6

1.1 Applicability to Airport Improvement Program (AIP) ................................................. 1-6

1.2 Project Clearance under 49 CFR Part 24 Requirements ............................................. 1-10

1.3 Sponsor Program Requirements. ................................................................................ 1-15

Chapter 2. Real Property Appraisal ......................................................................................2-1

2.1 Requirements. ............................................................................................................... 2-1

2.2 Appraisal Procedures. ................................................................................................... 2-5

2.3 Appraisal Review. ....................................................................................................... 2-15

Chapter 3. Real Property Acquisition ...................................................................................3-1

3.1 Requirements. ............................................................................................................... 3-1

3.2 Purchase Negotiations. .................................................................................................. 3-7

3.3 Acceptance of Administrative Settlement. ................................................................. 3-12

3.4 Condemnation Awards................................................................................................ 3-14

Chapter 4. Relocation Assistance .........................................................................................4-1

4.1 Requirements. ............................................................................................................... 4-1

4.2 Relocation Planning and Advisory Assistance. ............................................................ 4-6

4.3 Relocation Notices. ..................................................................................................... 4-14

Chapter 5. Payments for Moving and Related Expenses ....................................................5-1

5.1 Requirements. ............................................................................................................... 5-1

5.2 Residential Moving Payments. ..................................................................................... 5-2

5.3 Non-Residential Moving Payments. ............................................................................. 5-5

Chapter 6. Replacement Housing Payments ........................................................................6-1

6.1 Requirements. ............................................................................................................... 6-1

6.2 90-Day Owner-Occupants. ........................................................................................... 6-3

6.3 90-Day Tenant. ........................................................................................................... 6-17

6.4 Replacement Housing Payment Claims. ..................................................................... 6-20

6.5 Replacement Housing of Last Resort. ........................................................................ 6-24

6.6 Mobile Homes. ............................................................................................................ 6-26

Chapter 7. Management of Acquired Property .....................................................................7-1

7.1 Requirements. ............................................................................................................... 7-1

CONTENTS (CONT.)

Paragraph Page iv

Chapter 8. Sponsor Certification ..........................................................................................8-1

8.1 Requirements. ............................................................................................................... 8-1

Appendix A. Forms Directory ............................................................................................... A-1

Appendix B. 49 CFR Part 24 ................................................................................................. B-1

Appendix C. Sponsor Quality Control Program .................................................................. C-1

Appendix D. Guidelines for Sponsor Certification of Title ................................................. D-1

FIGURES

Number Page

Figure 1-1. Exhibit “A” Property Inventory Map ........................................................................ 1-9

Figure 2-1. Appraiser and Review Appraiser Qualifications ....................................................... 2-3

Figure 2-2. Sample Scope of Work Statement ............................................................................. 2-6

Figure 2-3. Appraisal Report Requirements ................................................................................ 2-7

Figure 2-4. Avigation Easements ............................................................................................... 2-11

Figure 3-1. Example of an Offer Letter and Summary Statement ............................................... 3-3

Figure 4-1. Sample Displaced Occupant Questionnaire – Residential ........................................ 4-9

Figure 4-2. Sample Displaced Occupant Questionnaire – Business or Non-Profit Organization .. 4-10

Figure 4-3. Notice of Eligibility (Owner) and 90-Day Notice to Vacate .................................. 4-16

Figure 4-4. Notice of Eligibility (Tenant) and 90-Day Notice to Vacate .................................... 4-1

Figure 4-5. Sample Notice of Eligibility, Non-Residential Move ............................................... 4-2

Figure 6-1. RHP Eligibility Determination Form – 90-Day Owner-Occupant ........................... 6-7

Figure 6-2. Fixed Rate Mortgage Interest Differential Payment Eligibility .............................. 6-14

Figure 6-3. Adjustable Rate Mortgage Interest Differential Payment Eligibility ...................... 6-15

Figure 6-4. DSS Inspection and Certification Form .................................................................. 6-22

Figure 8-1. Sample Real Property Acquisition Sponsor Certification Form ............................... 8-2

Figure 8-2. Acquisition/Relocation Records Checklist ............................................................... 8-5

Figure C-1. Sponsor Pre-Reimbursement Federal-Aid Compliance Review Form ................... C-4

Figure D-1. Sample Certificate of Title ...................................................................................... D-4

Figure D-2. Sample Subordination Agreement - Utility ............................................................. D-5

Figure D-3. Sample Subordination Agreement – Oil, Gas, and Mineral Rights ........................ D-6

CONTENTS (CONT.)

Paragraph Page v

TABLES

Number Page

Table 1-1. Is the Owner’s Sale to an Airport Project a Voluntary Transaction Exception? ........ 1-8

Table 6-1. Comparable Dwelling Evaluation Grid ...................................................................... 6-5

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CHAPTER 1. UNIFORM ACT REQUIREMENTS

1.1 Applicability to Airport Improvement Program (AIP)

1.1.1 Uniform Relocation Assistance and Real Property Acquisition Policies Act (Uniform

Act)

The Uniform Act (42 USC 4601 et seq.) was enacted January 2, 1971. This law applies to any federal project or program that requires real property acquisition and displacement of people from their acquired home, business, farm, or nonprofit organization real property. The purpose of the Uniform Act is to ensure the following:

1.1.1.1 Fair and consistent treatment for owners of real property to be acquired for federal and federally-assisted projects, in order to encourage and expedite acquisition by agreements with such owners, minimize litigation and relieve congestion in the courts, and promote public confidence in federal and federally-assisted land acquisition programs

1.1.1.2 Fair, consistent, and equitable treatment for persons displaced as a direct result of federal or federally-assisted projects, so that such displaced persons will not suffer disproportionate injuries as a result of projects designed for the benefit of the public as a whole

1.1.1.3 Efficient and cost-effective federal agency implementation of these regulations.

1.1.2 AIP Grant Requirements, Airport Land Projects

1.1.2.1 Appendix Q and related sections of FAA Order 5100.38, the “Airport

Improvement Program (AIP) Handbook,” describe the sponsor grant requirements and eligibility for land acquisition and relocation costs. As described in the AIP Handbook, grant agreements require that the sponsor will:

1. Comply with the land acquisition policies in Subpart B of 49 CFR Part

24 (described in Chapters 2 and 3), to the greatest extent practicable under State law, in acquiring real property.

2. Pay or reimburse property owners for necessary expenses, as specified in 49 CFR 24.10.

3. Provide a relocation assistance program offering the services described in Subpart C of 49 CFR Part 24, and provide fair and reasonable relocation payments and assistance to displaced persons, as required in

Subparts D and E of 49 CFR Part 24. (See Chapters 4, 5, and 6)

4. Make comparable replacement dwellings available to displaced persons within a reasonable period prior to displacement, in accordance with Subpart E of 49 CFR Part 24.

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1.1.2.2 FAA Order 5100.37B provides guidance to FAA Airports field offices regarding review and acceptance of sponsor certification, and compliance with FAA and other regulatory requirements. This Advisory Circular

(AC) supplements the Order with detailed procedural and documentation guidance to airport sponsors to conform to 49 CFR 24.

1.1.2.3 The FAA’s Acquisition, Relocation, and Certification (ARC) instructional application provides guidance for airport sponsors to apply 49 CFR 24 requirements for small airport land projects that involve only a few properties and little, if any, relocation. ARC is available on a CD from

APP400.

1.1.3 Application of Voluntary Transaction Exemption - 49 CFR Part 24.101(b)

1.1.3.1 The regulation at 49 CFR 24.101(b) states that a property owner’s sale may be considered a voluntary transaction and exempt from the land acquisition requirements (described in Chapters 2 and 3) when the owner’s sale to the airport meets all of the qualifications listed below:

5. The acquisition and possession of the property is not a necessity to complete the airport project (e.g., airport purchase of a home under a sales assurance program). The sponsor should treat all selling property owners similarly when purchasing more than one property for such a project.

6. The owner’s property is not part of an intended, planned, or designated project area, where all or substantially all of the property within the areas is eligible and proposed for purchase within specific time limits.

An owner’s sale to the airport for an airport expansion or noise buy-out project does not meet this qualification criterion.

7. The sponsor informs the property owner in writing that the airport will not purchase the owner’s property if negotiations fail to result in an amicable agreement for the purchase.

8. The sponsor informs the property owner in writing of the market value of the property.

1.1.3.2 Table 1-1 applies these qualifying criteria to typical land acquisitions related to airport projects, in order to determine whether an owner’s sale qualifies as a voluntary transaction. Please forward specific questions to your FAA project manager.

1.1.3.3 Under the regulation, the owner of property sold as a qualified Voluntary

Transaction is not a displaced person and is not eligible for relocation assistance and payment benefits (described in Chapters 4 through 6).

However, any tenant in occupancy when agreement is reached to purchase the property is displaced for the project and is eligible for all applicable relocation payments and assistance provided for under the Uniform Act.

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Table 1-1. Is the Owner’s Sale to an Airport Project a Voluntary Transaction

Exception?

Property is Purchased For: Is Owner’s Sale a Voluntary Transaction?

Is Selling Owner Displaced?

Current or Planned Airport Expansion Project No Yes, and entitled to relocation payments

Airport Noise Compatibility Program

Buy-Out of Homes

Change in Land Use

No Yes, and entitled to relocation payments

Airport Noise Compatibility Program

Purchase /Sales Assurance

No Change in Land Use

Yes, if owner advised in writing that no purchase of the property would occur failing amicable agreement

No

Open Market Sale for AIP-Eligible Airport Standards (At the time of sale, property was not required for a current or planned FAA Assisted Expansion.)

Yes, if owner advised in writing that no purchase of the property would occur failing amicable agreement

No

1.1.4 Planning and Federal-Aid Programming

Airports included in the National Plan of Integrated Airport Systems (NPIAS) are eligible to receive AIP grant funding. In order to receive funding, a project must meet the “General Requirements for Project Funding” as established in FAA Order 5100.38.

The sponsor may confirm the planning status of a proposed project by consulting with the FAA project manager.

1.1.5 NEPA and FAR 150 Coordination

1.1.5.1 The sponsor must evaluate each federally funded project for compliance with the National Environmental Policy Act (NEPA) prior to commencing work. NEPA level of review may range from a categorical exclusion to a full Environmental Impact Statement (EIS) depending on the impacts of the proposed action. FAA Order 5050.4B, “National Environmental

Policy Act (NEPA) Implementing Instructions for Airport Actions,” provides guidance on NEPA requirements for AIP-assisted projects. The sponsor should consult the FAA project manager regarding any questions concerning completion of the environmental reviews.

1.1.5.2 Additionally, a land acquisition project for noise compatibility must be included as an FAA-approved measure of the airport’s Title 14 Code of

Federal Regulations (CFR) Part 150 Airport Noise and Land Use

Compatibility Program. See Appendix R of the AIP Handbook (FAA

Order 5100.38) for eligibility requirements for Noise Compatibility

Programs.

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1.1.6 Project Definition

The grant agreement with the FAA requires the airport sponsor to prepare and maintain a current Property Inventory Map (i.e., Exhibit “A”) of airport owned land. The Exhibit

“A” indicates land acquired for noise mitigation purposes and redeveloped to airport and/or aviation use, as well as land not retained for airport use (see Figure 1-1).

Through the grant application and approval process, the FAA project manager will provide assistance and specific requirements for the development of the Exhibit “A”

(also see FAA Order 5100.38).

Figure 1-1. Exhibit “A” Property Inventory Map

1.1.7 Real Property Interest to be Acquired

On AIP-assisted projects, the sponsor must acquire real property rights of such nature and extent that are adequate for the construction, operation, and maintenance of the grant-assisted project. Normally the sponsor will acquire fee title to all land within the airport boundaries and for the runway protection zone (RPZ). If fee acquisition for the

RPZ is not practical, then an avigation easement is required. This easement must secure the right of flight with inherent noise and vibration above the approach surface, the right to remove existing obstruction, and a restriction against the establishment of future obstructions. Generally, where less than fee title is proposed to be acquired, the property rights acquired must be sufficient to encumber the remaining real estate with provisions that will ensure full use of the property as needed for airport construction and/or for safe airport operations, conforming to FAA requirements. The FAA project manager should be consulted to assure adequate interest is acquired. As requested, the

Applicants must submit the Exhibit “A” property inventory map as part of the project application. The primary intent is to identify all land that is designated airport property and to provide an inventory of all parcels that make up the airport. It is not an Airport Layout

Plan (ALP) and, therefore, should be limited to only those elements that will assist in the identification of property. The Exhibit A must conform to standard drafting requirements and, at a minimum, should include identification of the following:

Outside airport property boundary

All property parcels of the entire airport (numbered on the property map), including parcels that were once, but are no longer, airport property

Parcel information, including grantee (i.e., selling owner), type of interest acquired, acreage, public land record references (e.g., book and page, date of recording)

For each property parcel, FAA project number (if acquired under a grant; Surplus

Property Transfer, or AP 4 Agreement, if applicable), type of easement (e.g., clearing, avigation, utility, ROW, etc.), and date of FAA approval (if released)

Purpose of acquisition (i.e., current aeronautical, noise compatibility, or future development) and current use (if different or in interim use pending development)

Runway protection zones, runway configurations, and building restriction lines

Magnetic and true north arrows per standard drafting practices

Parcels being acquired, if submitted as part of a land acquisition project

Changes to any airport property, dated and amended as necessary

1-10 sponsor will provide evidence of adequate title to the FAA. (See Chapter 8 for Sponsor

Certification requirements.)

1.2 Project Clearance under 49 CFR Part 24 Requirements

The section provides an overview of the tasks necessary to clear a project successfully under the Federal regulatory (49 CFR Part 24) and FAA real property acquisition and relocation assistance requirements. Figure 1-2 (in Section 1.2.1) provides an overview of the typical process with the major tasks described in the following paragraphs.

Subsequent chapters of this AC, as referenced through the remainder of this chapter, provide detailed procedural guidance.

1.2.1 Required Lead Time

For any airport land project, adequate lead time is required to accomplish land acquisition and provide any needed relocation assistance, in conformance to the Federal requirements (49 CFR Part 24). Lead Time is estimable by scheduling the regulatory tasks to acquire needed property for a project. The actual purchase of property and payment of relocation claims will typically incur most of the eligible project expenses.

However, the majority of the work required for AIP cost reimbursement or conformance to 49 CFR 24 must occur in advance of actual expenditures. Therefore, when acquiring land and relocating displaced persons for an AIP-assisted project or program, the sponsor must ensure Uniform Act compliance before any grant reimbursement or authorization of grants AIP funded construction (see Chapter 8 for

Sponsor Certification requirements).

1.2.2 Title Reports, Land Surveys, and Studies

1.2.2.1 Land titles and surveys:

1.2.2.1.1 Accurate ownership information and property descriptions are required to initiate the appraisal process and negotiations. After securing adequate property descriptions (property needed for the project), the sponsor should order title insurance commitments in anticipation of delivery of these by the initiation of negotiations. Appraisal work may commence with preliminary title searches and abstracts that identify the fee interest, leaseholds, and any encumbrances or easements on the property to be acquired. For properties with tenant occupants, the sponsor must secure leases and other documents indicating ownership, and identify tenant-owned improvements. The cost of title work to ensure marketable title is acquired and supporting the sponsor’s assurance of title (see Chapter 8 of this AC) is eligible for reimbursement as part of the AIP grant.

Lead Time, which is the basis of a project clearance schedule, can be estimated by application of the following scheduling formula: Project Lead Time Estimate = (Total Parcels / Parcel Start Capacity per Agent) / (Agents X

Parcel Time) + Contingency Time.

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1.2.2.1.2 Property surveys and plats may be required for the acquisition of partial takes and for condemnation purposes. In addition, local customs and laws may necessitate the preparation of plats for the conveyance of needed property.

1.2.2.2 Investigation of hazardous materials and contamination

1.2.2.2.1 Avoidance of contaminated property:

As part of the project planning and environmental assessment phases, the sponsor should perform an environmental audit of hazardous material and contamination on any property needed for a project. The sponsor must avoid, or minimize the use of, contaminated property as feasible, to reduce project costs for cleanup and remediation of hazardous materials.

1.2.2.2.2 Appraisal of contaminated property:

Prior to the appraisal of any potentially contaminated land, the sponsor should provide the results of the environmental audit to the appraiser for inclusion in the appraisal report. Prior to completion of the appraisal, appraisers should report to the sponsor any actual property conditions that exist at a site warranting further environmental investigation. The appraiser may not condition the appraisal report with an assumption that the property is free of contamination. See Chapter 2 of this AC for further guidance on the appraisal of contaminated property.

1.2.2.2.3 Acquisition of contaminated property:

Where use of contaminated property is determined necessary, the sponsor should first secure a binding agreement with the property owner, and other identified responsible parties, assigning liability for property cleanup cost before acquiring title to such property. An offer to acquire contaminated property must be conditioned on the property owner’s remediation of the contamination threat to public health and safety. Section 2.2.10 provides guidance on the proper consideration of contamination in appraising the fair market value of property.

1.2.2.2.4 The sponsor must rely on the environmental audit (Phase I and Phase II site studies) to identify the scope of contamination and other responsible parties who have cleanup liability. The sponsor must not undertake site remediation (Phase III), without first securing adequate assurances and indemnification from other responsible parties, and securing agreement from the regulatory agency or agencies fixing the extent of the sponsor’s cleanup responsibility. A qualified environmental consultant will likely be required to assure adequate protection of the sponsor’s interests in developing the remediation requirements for the use of the site in the project, and limiting any future cleanup liability. The sponsor must consult with the FAA project manager to determine if proposed site remediation costs are reimbursable under the AIP grant.

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1.2.3 Preliminary Relocation Assistance Planning (see Chapter 4)

1.2.3.1 Project planning stage:

Early in project development, a sponsor must identify relocation assistance measures sufficient to minimize the impact of displacement on individuals, families, businesses, farms, and nonprofit organizations.

Relocation planning at this stage is typically conducted as part of the

NEPA approval process. The relocation plan at the project planning stage must provide an estimate of the number of displaced persons, business, farms, and non-profit organizations, and the characteristics and needs of the displaced persons (e.g., elderly, handicapped, minority, low income, etc.). The plan will relate the available supply of comparable replacement housing and suitable replacement business and farm sites, to the needs of the displaced persons. The plan will result in an estimate of the cost and time requirements for an orderly and humane relocation program as part of project development. Generally, secondary sources of information are sufficient to adequately prepare this plan.

1.2.3.2 Acquisition stage:

Prior to the initiation of negotiations, the sponsor must prepare a plan for acquisition stage relocation that will provide the necessary information and specific requirements for relocation of the identified displaced persons. The acquisition stage plan is prepared through interviews of displaced persons prior to the initiation of negotiations for the acquisition of a property. Additionally, the acquisition stage plan must be sufficient to establish the payment eligibility offer and ensure that adequate time is scheduled for successful relocation of any displaced persons. See Chapter

4 of this AC for detail regarding the planning requirements during the property acquisition stage.

1.2.3.3 Realty/personalty determination:

For complex acquisitions of improved commercial/industrial property, where a business (e.g., farm or non-profit organization) is being displaced for the project, a realty/personalty determination must be made and provided to the appraiser. The valuation must include all real estate items while items of personalty are not appraised. A formal realty/personalty determination is necessary for complex appraisals and must be developed in consultation with the property owner and any displaced tenants. Some items may require advice of legal counsel to determine whether the item is real estate or personalty. Generally, an item is considered a fixture and real estate if removal of the item would destroy the item or would substantially damage the real estate.

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1.2.4 Real Property Appraisal (see Chapter 2).

The sponsor must appraise the fair market value of the real property to be acquired before negotiations with an owner are initiated. The property owner must be given the opportunity to accompany the appraiser on the inspection of the property.

1.2.4.1 Appraiser selection:

The sponsor must establish qualification criteria to evaluate potential appraisers. When selecting appraisers, the sponsor must review the experience, education, training, and other qualifications, and use only those professionals determined to be qualified. The appraiser must be certified under applicable state law for all appraisal assignment.

1.2.4.2 Review of the appraisal:

A secondary qualified review appraiser must validate each appraisal and ensure compliance with FAA requirements. The appraisal review, as required by the Uniform Act, is critical to evaluate whether the report is valid and its conclusion of valuation is reasonable. The ultimate intent of the review is to produce an adequately documented appraisal with a sound and valid recommendation for unbiased compensation to be offered to the property owner.

1.2.5 Real Property Acquisition (see Chapter 3)

1.2.5.1 Just compensation:

Before initiating negotiations for the property, the sponsor must establish an amount considered as just compensation for the real property. The amount must not be less than the appraised fair market value approved by the review appraiser.

1.2.5.2 Written offer to purchase:

Promptly following the appraisal review and the establishment of just compensation, the sponsor must make a written offer to acquire the property for the full amount of just compensation. The Uniform Act defines the date of this written offer as the initiation of negotiations. The initiation of negotiations typically establishes eligibility of relocation payments for displaced persons who were occupants on the property as of this date. The sponsor’s negotiator must personally contact each owner with the sponsor’s written offer of just compensation. Nonresident owners may be contacted by certified mail.

1.2.5.2.1 Required Negotiations Procedure:

The goal of negotiations is to secure an amicable purchase agreement with the property owner for the just compensation of the needed property. The airport must not undertake coercive measures to force agreement. Instead, the airport’s negotiator must fully explain the airport offer and help the property owner evaluate the airport offer. The airport must also consider

1-14 property value information provided by the property owner during negotiations. If the property owner’s information is creditable and/or the circumstances of the proposed acquisition change, the airport must update its offer of just compensation.

1.2.5.2.2 Settlement/condemnation:

Should negotiations fail to secure an agreement, an airport with eminent domain authority may proceed to take the needed property through condemnation. Airports also have discretion to enter administrative settlements when the public interest in a proposed settlement is apparent.

1.2.5.2.3 Possession of the property:

After reaching an agreement, the airport must pay the agreed purchase price to the owner. In the case of condemnation, the airport must deposit with the court, for the benefit of the owner, an amount not less than the approved appraisal before requiring possession of the needed property.

The property owner is not required to surrender possession of their real property until just compensation is paid or deposited with the condemnation court.

1.2.6 Relocation Assistance (see Chapters 4 through 6)

1.2.6.1 Sponsor obligations:

It is the sponsor’s obligation under the Uniform Act to provide an adequate relocation assistance program that ensures the prompt and equitable relocation and reestablishment of persons displaced as a result of the federally-assisted airport project(s). The term “person” as defined in the Uniform Act (and as used in this AC) refers to any individual

(residential or business occupant), family, partnership, corporation, or association. Sponsors must provide assistance and conduct the relocation program so that displaced persons receive uniform and consistent services and payments regardless of race, color, sex, or national origin. The sponsor must maintain documentation to show compliance to the Uniform

Act and its grant assurances.

1.2.6.2 Types of relocation assistance:

Relocation assistance activities involve relocation planning, information and notices, advisory services, relocation assistance payments (e.g., replacement housing payment, incidental closing costs, increased interest costs, residential moving costs), nonresidential (e.g., business, farms, nonprofit organizations) relocation payments (e.g., reestablishment expenses, moving costs), replacement housing of last resort, and mobile homes. Later chapters of this AC provide detail regarding specific procedural requirements for the sponsor to provide the required assistance and payments.

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1.2.7 Property Management (see Chapter 7)

Property management activities include disposal or demolition of improvements, clearing of trees and vegetation, and interim use or rental of the property until needed for a subsequent construction project, if applicable. Additionally, specific grant assurances apply to the ongoing use or disposal of airport property. The airport must maintain its Exhibit “A” (refer to Figure 1-1) to ensure it has a current inventory of airport property.

1.2.8 Sponsor Certification (see Chapter 8)

The sponsor must certify that real property was acquired in conformance with the

Uniform Act. The sponsor must also certify, as applicable, that all persons displaced from their homes for the project were offered comparable replacement housing and that all persons in occupancy at the initiation of negotiations had vacated the property and were provided reimbursement of their moving expenses to a replacement site in accordance with the requirements of the Uniform Act. This certification must be provided concurrently with a sponsor’s request for reimbursement and must cover the specific parcels for which the sponsor is requesting reimbursement of costs.

1.3 Sponsor Program Requirements.

1.3.1 Sponsor Organization and Staffing Requirements.

1.3.1.1 Conformance to Uniform Act requirements necessitates sufficient professional staff and operational procedures to assure property owners and displaced persons are provided all entitlements and protections contained in the Uniform Act. This AC provides detailed procedural guidance, sample documentation formats, and quality control requirements to assist sponsor compliance and AIP reimbursement eligibility. Sponsor staff and/or their consultant must demonstrate an adequate working knowledge of 49 CFR Part 24 requirements and the capability and expertise to complete the work proposed in conformance to applicable requirements.

1.3.1.2 Where the sponsor does not have sufficient qualified staff available for a project, the sponsor may secure qualified property acquisition and relocation consultant services. When soliciting consultants, land acquisition and relocation assistance are considered professional program management services and should be selected based on adequate qualifications. Sponsors should include the following qualification requirements in their request for proposals/qualifications:

For AIP funded projects, the hiring of appraisers, acquisition and relocation consultants must conform to requirements of AC 150/5100-14. Appraisal and acquisition/relocation services are included in “certain other related areas” as described within that document. Eligibility requirements for contracting professional services are detailed in Chapter 9 of the AIP Handbook (FAA Order 5100.38).

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An understanding of the governing regulations provided at 49 CFR

Part 24, FAA policies described in AC 150/5100-17A and other applicable law and regulation provided under state and local law

Experience and expertise to undertake real property acquisition and relocation assistance functions as prescribed under the governing regulations and this AC

Ability to undertake and complete the required work within your proposed project schedule

A listing of references for current jobs and completed projects that the

Sponsor may contact

Education and training evidencing expertise and competence to perform professional real property acquisition and relocation assistance work

Professional designation, license, or certification

Quality control system to ensure Uniform Act compliance and adequate documentation to ensure maximum FAA reimbursement

1.3.2 Sponsor Must Keep Acceptable Acquisition and Relocation Records.

The airport sponsor must maintain adequate records, including real estate appraisals, acquisition, relocation, and property management records, and other documentation necessary to show compliance to 49 CFR Part 24. Documentation must be in an easily retrievable format, available during regular business hours for inspection by representatives of the FAA, Department of Transportation (DOT) Office of the

Inspector General, and the Government Accountability Office (GAO). The airport sponsor must keep records for at least three years after FAA grant closeout. Chapter 8 provides guidance on required documentation to support the sponsor’s grant assurance and certifications to FAA. Refer to Figure 8-2 a documentation checklist for sponsor parcel or project files.

1.3.3 Required Appeal Procedure to Address Grievances under 49 CFR 24.

1.3.3.1 Appealable actions.

Any aggrieved person may file a written appeal with the sponsor for any case in which the person believes that the sponsor has failed to consider the person’s application or claim for payments or assistance properly under the Uniform Act. This assistance may include, but is not limited to, the person’s eligibility for, or the amount of, a payment of closing costs and incidental expenses as provided in Section 3.2.2, certain litigation

Sponsor project schedule must be realistic and correspond to the availability of qualified resources.

Appendix C of this AC describes minimum quality control criteria and sample documentation formats. Quality control may be separately contracted or provided by qualified sponsor staff.

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Chapters 5 and 6. The sponsor must consider a written appeal regardless of form and must promptly review appeals. The appeal process is intended for determinations of disputed eligibility or payment that may not be resolved by the sponsor’s staff or agent. However, where a request for relief is reasonable and has merit for resolution at the agent level, it is not necessary to pursue the formal appeal process in order to resolve the problem or dispute. Sufficient discretion within program guidelines is available at the agent level to respond to special and individual circumstances and needs.

1.3.3.2 Time limit for initiating an appeal.

The sponsor may set a reasonable time limit for a person to file an appeal.

The time limit must not be less than 60 days after the person receives written notification of the sponsor’s determination on the person’s claim or application for a payment.

1.3.3.3 Right to representation.

A person has the right to legal counsel or representation in connection with an appeal, but solely at his/her own expense.

1.3.3.4 Review of files by appellant.

The sponsor must permit a person to inspect and copy all materials pertinent to the appeal, except materials that are classified as confidential by the sponsor. The sponsor may impose reasonable conditions on a person’s right to inspect records, consistent with applicable laws.

1.3.3.5 Scope of appeal review.

In deciding an appeal, the sponsor must consider all pertinent justification and other material submitted by the person, and all other information needed to ensure a fair and full review of the appeal.

1.3.3.6 Determination and notification after appeal.

Promptly after receipt of all information submitted by a person in support of an appeal, the sponsor must make a written determination about the appeal, including an explanation of the basis on which the decision was made, and furnish the person a copy. If the full relief requested is not granted, the sponsor must advise the person of their right to seek judicial review of the sponsor’s decision. Normally, the person would be advised to consult their legal counsel to pursue judicial review.

1.3.3.7 Sponsor official for conduct of appeal review.

The official conducting the review of an appeal must be the sponsor’s chief executive officer (CEO) or his/her authorized designee. The reviewing official must not have been directly involved in the action appealed.

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1.3.4 No Duplication of Payments

No person will receive any payment required under the Uniform Act, as described in this AC, if that person receives a payment under federal, state, or local law that is determined by the sponsor to have the same purpose and effect as the payment provided under the Uniform Act. Persons eligible for and opting for publicly assisted housing as their replacement dwelling may only claim replacement housing payments to the monetary extent necessary, if any, to occupy the assisted housing (see Chapter 6). The

FAA is available to clarify applicability of this provision should there be apparent conflict between the Uniform Act and another federal program or mandate.

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CHAPTER 2. REAL PROPERTY APPRAISAL

2.1 Requirements.

2.1.1 Required Sponsor Appraisal Process (49 CFR 24.103-104).

On AIP projects, the Uniform Act obligates the sponsor to provide an appraisal process that, at a minimum provides for the following:

2.1.1.1 The sponsor must appraise fair market value of the real property to be acquired before initiation of negotiations with an owner. The sponsor may waive this requirement for an appraisal where the sponsor determines that an appraisal is unnecessary on a particular parcel because the appraisal is non-complex and the estimated fair market value is $10,000 or less, based on a review of available market data (see Section 2.2).

2.1.1.2 The sponsor’s appraiser must afford the owner or designated representative an opportunity to accompany the appraiser during inspection of the property. The sponsor should send the property owners letters via certified mail offering them an opportunity to accompany the appraiser during inspection.

2.1.1.3 As stated in Chapter 3, the sponsor must maintain an adequate appraisal review process to establish just compensation prior to the initiation of negotiations. The amount of just compensation established must not be less than the sponsor’s approved appraisal of the fair market value of the property to be acquired.

2.1.1.4 The appraisal of the property to be acquired must disregard any change in fair market value of the real property caused by the project for which the property is to be acquired or by the likelihood that the property would be acquired for the project, other than changes due to physical deterioration within the reasonable control of the owner. In the case of partial acquisitions, project influence is disregarded in the appraisal of conditions before the project (e.g., “before condition”) but the effects of the project must be considered in the appraisal of conditions after the project (e.g., “after condition”) [see Section 2.13].

2.1.1.5 Appraisers must not consider, or include in the appraisals, any allowance for relocation assistance benefits.

2.1.2 Appraisal Waiver.

An appraisal is not required under the following situations:

2.1.2.1 The owner is donating the property and releasing the sponsor from its obligation to appraise the property.

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2.1.2.2 The sponsor determines that an appraisal is unnecessary because a review of available data estimates the market value at $10,000 or less and the valuation is non-complex. When an appraisal is determined to be unnecessary, the sponsor must prepare a waiver valuation of the proposed acquisition to document the determination.

2.1.3 Appraiser and Review Appraiser Qualifications.

The sponsor must establish qualification criteria that, at a minimum, assure the competency of its appraiser is consistent with the level of difficulty for the appraisal assignment. The sponsor must review the experience, education, training, and other qualifications of appraisers and review appraisers, and must use only those determined to be qualified. Figure 2-1 presents generalized criteria for evaluating appraisers and reviewing appraiser qualifications for a particular assignment or AIP-assisted project.

The sponsor may obtain referrals for qualified appraisers and reviewers from other airport sponsors, the local offices of the state highway department, or local housing agencies.

2.1.3.1 Certification.

All states now license or certify private appraisers in accordance with Title

XI of the Financial Institutions Reform, Recovery, and Enforcement Act of

1989 (FIRREA), providing minimum education and experience requirements for real estate appraisers. Private fee appraisers hired to prepare complex appraisals must be certified under applicable state law in conformance with FIRREA requirements. Generally, an active state licensed or certified appraiser will have adequate qualifications and is bound by ethics and state law to only accept work for which they are competent. However, a sponsor should actively solicit the most qualified appraisers available and not simply rely on the license or certification.

Government agency appraisers may be acceptable for AIP work if adequately qualified regardless of state licensing and state certification requirements.

2.1.3.2 Soliciting Professional Appraisal and Review Appraisal Services.

On AIP-funded projects, the hiring of appraisers must conform to requirements of AC 150/5100-14 “Architectural, Engineering, and

Planning Consultant Services for Airport Grant Projects.” Optimally, the appraiser and review appraiser should be from different appraisal organizations. The sponsor should also contract with the review appraiser before hiring appraisers, since the review appraiser may assist in defining the appraiser’s scope of work (see Section 2.8) for subsequent parcel assignment to appraisers. The review appraiser may also assist in many administrative aspects, such as application of legal opinions, accurate property descriptions, and guidance on needed appraiser qualifications.

FAA Forms 5100-116 “Appraisal Contract” and 5100-121, “Appraisal

Review Contract” provide acceptable contract documents (see

Appendix A).

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Figure 2-1. Appraiser and Review Appraiser Qualifications

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2.1.4 Appraisal Management.

2.1.4.1 On larger projects or programs, the sponsor should solicit a sufficient number of qualified appraisers to ensure: (1) contracted fee appraisers are independent and (2) a single appraiser does not become dependent upon airport work, whether real or perceived. For the case when the sponsor uses internal appraisal staff or a consultant for appraisal functions, reliance on the professional qualifications and adequate organizational separation of the appraisal function from conflicting activities will assure independence of the appraisal process.

2.1.4.2 The selection and assignment of multiple appraisers to a project must also consider project efficiencies and recognize that individual appraisers will normally provide slightly different valuations. Therefore, individual appraiser assignments should allow multiple appraisers to operate efficiently while minimizing valuation inconsistencies on a particular project. To this end, it is recommended that individual appraisers be assigned logical groupings of similar and proximate properties.

2.1.5 Conflict Of Interest.

2.1.5.1 No appraiser, review appraiser, or other person making an appraisal or a waiver valuation for the sponsor should have any interest, direct or indirect, in the real property being appraised that would in any way conflict with the preparation of the appraisal, waiver valuation or…