Presentation on theme: "ACQUISITION MANUAL UPDATE OF THE 5000 THROUGH 5700 SERIES FOR 2012 PROCEDURES TO ACQUIRE RIGHTS OF WAY PRESENTED BY: WAYNE E. PACE, ACQUISITION UNIT MANAGER."— Presentation transcript:
ACQUISITION MANUAL UPDATE OF THE 5000 THROUGH 5700 SERIES FOR 2012 PROCEDURES TO ACQUIRE RIGHTS OF WAY PRESENTED BY: WAYNE E. PACE, ACQUISITION UNIT MANAGER
OLD 2010 REAL ESTATE PROCEDURES MANUAL
2012 REAL ESTATE ACQUISITION MANUAL
Posting Date onto ODOT’s Web page: January 3, 2012 Date Procedures Effective:January 3, 2012
OVERALL CHANGES TO THE ACQUISITION MANUAL: A complete rewrite of the Acquisition Manual The size of the manual was reduced 2010 Version 373 pages 2012 Version 245 pages All Addendums in each section of the manual were removed Filled out examples of the Acquisition are now Online Removed redundant statements in the manual Eliminated all reference to Region Project Manager and Regions in general SUMMARY OVERVIEW 34%
5000 SECTION OF THE REAL ESTATE MANUAL INTRODUCTION TO ODOT’S ACQUISITION AND NEGOTIATION POLICY AND PROCEDURES
The Acquisition of Right of Way that is governed by Federal Regulations and State Law The Uniform Act 49 CFR Part 24 Subparts A,B,C,D,E,F and G 23 CFR Part 710 – Right of Way 23 CFR Subpart A, Section 630 Project Authorization 23 CFR Subpart C Section 635 Clearance 5000 Section - Real Estate Manual Federal Government
State of Ohio Ohio Revised Code (ORC) Chapter 163 Ohio Revised Code (ORC) Chapter 5501 Ohio Administrative Code (OAC) Section 5501: through Section - Real Estate Manual
Introduction To The Steps To Acquire Right of Way: Title Report – required to identify the owner of the property ORC ( E ), Section 5100 Real Estate Manual. Appraisal Report – required to establish value for just compensation to the owner. Section 4000 Real Estate Manual. Appraisal Review - Federal & State regulations require a review of all appraisals to ensure just compensation is made to the owner Section - Real Estate Manual
Negotiations – There can be no negotiations with the owner until just compensation is establish. 49 CFR (D) Section 5200 & 5300 Real Estate Manual Relocation – Provide relocation benefits to persons & businesses displaced by the highway project. Section 6100 – 6600 Real Estate Manual Closings – Funds are disbursed to the owner and the property is conveyed to ODOT or the acquiring agency. Section 5600 – 5700 Real Estate Manual 5000 Section - Real Estate Manual
Appropriation – Any acquisition is subject to the Power of Eminent Domain under Chapter 163 ORC. Condemnation – (also known as appropriation) is the process where ODOT exercises its power of eminent domain and acquires the property needed for the highway project. Section (B) 5000 Section - Real Estate Manual
5000 SECTION MANUAL - CHANGES ● No major changes Acronyms section was removed This section was reduced from 14 pages to 5 pages
5100 SECTION OF THE REAL ESTATE MANUAL
Title Reports: - The written analysis of the status of title to real property. This function is to identify an owner: ORC ( E ) States: Is the aggregate ownership that includes any individual, partnership, association, or corporation having any estate, title, or interest in any real property sought to be appropriated Section - Real Estate Manual
ODOT FORMS: RE 46 TITLE REPORT RE 46-1 (TITLE CHAIN) 5100 Section - Real Estate Manual
RE 46 Title Report Instruction Section: Defines An Owner Section 1: Primary Owners Section 2: Description of the subject premises Section 3: Mortgages, Liens & Encumbrances Section 3(B – C): Leases & Easements Section 4: Defects in the title- Irregularities-Comments Section 5: Taxes Section 6: CAUV
RE 46 Page 2 Signature Section Update Title block
RE Title Chain Form Contains : District CRS Parcel PID Grantor Grantee Date Signed Date & Time Recorded Volume / Page Conveyance Fee Type Instrument
TWO TYPES TITLE REPORTS: 42 YEAR TITLE REPORT: This method can be used anytime for public records research: THE ABBREVIATED TITLE REPORT: When the FMVE offer to the owner is based on the waiver of appraisal provision Section - Real Estate Manual
5100 SECTION MANUAL- CHANGES Title Reports: ● No major changes to the procedures Process remains the same. The Addendum for the example of a Title Reports was removed. Manual section reduced from 40 pages to 33 pages Specific Addendums 1. Original Title Report 2. Update Title Report – No Change 3. Update Title Report – Reflecting Changes 4. Update Title Report – For Appropriations
An Example of a Title Report w/Addendum
5200 SECTION OF THE REAL ESTATE MANUAL
BASIC ACQUISITION / NEGOTIATION PROCEDURES 5200 SECTION OF THE REAL ESTATE MANUAL
1.Introduction letter 2. Notice Of Intent to Acquire and Good Faith Offer (NIAGFO) 3.The Contract For Sale and Purchase 4.Contact with the Owner 5.Time to consider the offer 6.Types of forms used to document compliance 7.Administrative Settlement: - High dollar settlement process 8.Beginning the Process to Appropriate 9.Mortgage Releases 10.Billing Package 5200 SECTION OF THE REAL ESTATE MANUAL Basic Acquisition / Negotiation Procedures
Major Overhaul Removed much of the guidance & direction Eliminated the examples of filled out forms This section was reduced from 83 to 31 pages 5200 SECTION OF THE REAL ESTATE MANUAL
Old Version- Legal Requirements (D) (2) (c ) The negotiator shall always meet personally with the owner unless the owner’s circumstance Qualifies as a mail away offer – See Section (B), (B) (4) and and ODOT’s Real Estate Manual. COMPENSATION TO THE OWNER - CHANGE NEW Version- The Initial Offer of Compensation to the Owner (B) The Ohio Revised Code mandates the NIAGFO shall be presented to the owner by certified mail or by personal visit. The difference is the negotiator is not required to meet personally with the owner
5201 Section Contact with the Owner: Old- The negotiator must meet with the owner at least three times over a period of time not less than 30 days Section Real Estate Manual New – There is no set minimum number of negotiations visits prior to initiating appropriation. Recommend that the negotiator contacts the owner three times.
NOTICE OF INTENT TO ACQUIRE AND GOOD FAITH OFFER LETTER (NIAGFO)
(NIAGFO)- OWNER OBJECTION Within10-days of the offer to the Owner.
OHIO REVISED CODE
DELEGATION OF GOVERNOR'S AUTHORITY The Department of Administrative Services is the agency that represents ODOT and ODNR Owner Objections
1.Department of Administrative Services (DAS) will contact ODOT Central Office. 2.ODOT Central office will respond to DAS ODOT shall not respond to the property owner. 3.ODOT Central Office will notify the District and request parcel file information. 4.DAS will receive all parcel information from Central Office ODOT 5.DAS will correspond with the owner on ALL Owner Objection issues. (NIAGFO)- Owner Objection Process
5200 SECTION - MANUAL ADMINISTRATIVE SETTLEMENTS ODOT may need to settle an acquisition parcel greater than the FMVE under certain criteria.
Definition: 49 CFR (i) 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 states what available information, including trial risks, supports such a settlement.” 5200 SECTION - MANUAL ADMINISTRATIVE SETTLEMENTS - CHANGE
Old Version Regional Project Manager (RPM) settlement authority per ownership up to $10,000 or 10% over FMVE, whichever is greater. RPM has the discretion to allow realty specialist to verbally accept a counteroffer from an owner up to $500 If the settlement exceeds the authority of the RPM, the RPM must forward the request to the Administrator of the Office of Real Estate – Local Public Agency (LPA) District Real Estate Administrator authorized settlements over the FMVE of $5, SECTION – MANUAL ADMINISTRATIVE SETTLEMENTS
Old Version People Having Settlement Authority for ODOT: 1.District Real Estate Administrator 2.Regional Project Managers 3.Administrator, Office of Real Estate 5200 SECTION – MANUAL ADMINISTRATIVE SETTLEMENTS
NEW Version: Section (C ) All references of the Regional Project Manager (RPM) were removed. Districts have settlement authority per ownership up to $20,000 or 20% over FMVE, whichever is greater. District Offices have the discretion to allow realty specialist to verbally accept a counteroffer from an owner up to $1, Section - Manual Administrative Settlements
Section (C ) Settlement Authority for Districts- ODOT let Projects 1.District Real Estate Administrators (D.R.E.A.) 2.Planning and Engineering Administrator (P.E.A.) 3.District Deputy Director 4.Administrator, Office of Real Estate 5200 Section - Manual Administrative Settlements
Section (D) Settlement Authority – LPA projects having State or Federal funds in right of way. 1.LPA has settlement authority up to $1,000 2.All other settlements must be approved by the DREA 5200 Section – Manual Administrative Settlements Section (E) Settlement Authority for Districts- LPA Project Having State or Federal Funds in the Project, but not in Right of Way The LPA has full administrative settlement authority. DREA must ensure compliance with the Uniform Act.
Old Version- Before initiating appropriation, the RSM should contact the owner and personally attempt to settle any differences in an attempt to avoid appropriation Section Manual – Beginning the Process to Appropriation - Changes New Version – RSM will no longer be required to contact the owner to attempt to settle the parcel. Now- Concurrent in time with providing the owner an Appropriation Letter, the negotiator is to advise the owner of the following information for appropriation
Mortgage releases: No change Except in those instances where mortgage releases are not required pursuant to Section B of these procedures, mortgage releases are required for any property right acquired by ODOT that is encumbered by any mortgage Section In Other Areas: Section B: 1.A mortgage release is not required when FMVE has been established at an amount that is $5,000 or less. 2.A temporary easement does not create a permanent, negative affect on the residue (e.g. removal of a structure).
5300 SECTION OF THE REAL ESTATE MANUAL
Special Acquisition Procedures 5300 SECTION OF THE REAL ESTATE MANUAL
O VERVIEW OF THE S ECTIONS 5301Early (Advance) Acquisition Acquisition of real property by State or Local government in advance of Federal authorization of agreement. Areas of focus Hardship Acquisition Protective Buy Incidental Authority Whole Take Authority Full Right of Way Authorization 5300 Section of the Real Estate Manual
5302Tenant – Owned Improvements – Real property acquired for a highway project that is owned by a tenant. Areas of Focus: RE 95 form RE 56 Disclaimer Contributory Value RE-22, RE 22-1 Estimate Salvage Value Tenant Owner receives the greater of the Contributory value or Salvage Value All steps need to be carried out prior to the offer to the owner Section Real Estate Manual
5303Acquisition of publicly owned property- ODOT acquires rights of way for State / Federal government. Central Office function Acquisition of real property from railroad corporations- District Responsibilities: Title Reports Title Updates Appraisals Appraisal Review Establishment of FMVE Recording all documents 5300 Section Real Estate Manual
Central Office Responsibilities: Negotiations and closing 5304 Acquisition of real property from railroad corporations - (Continuation)
5305 Uneconomic Remnant:- Partial taking of land leaving the residue property with little utility or value to the owner. Areas of Focus: The owner does not determine an Uneconomic Remnant The appraiser does not determine an Uneconomic Remnant The review appraiser recommends the Uneconomic Remnant. If the property is valued at $50,000 or more, The Manager of Acquisition, Central Office will review the parcel for file for determination. ODOT will then make two offers Real Estate Manual
5307Right of Entries ( ROE)- The ROE is a voluntary agreement between ODOT and the Owner. Areas of Focus A s igned ROE allows ODOT to enter upon the property. Without a signed ROE, entry upon property is a TRESPASS ROE’s must be converted to a Signed Parcel or the District must forward the parcel to appropriation. ROE forms RE 222, Exhibit A & Exhibit B - Monies must be paid to the owner for enforceability Section Real Estate Manual
OTHER SECTIONS IN THE 5300 SECTION 5310 Donation of Real Estate 5311Owner Retention 5312 Encroachments 5313Boundary Survey 5316Mitigation 5319Offsetting the acquisition price 5321Garage Law 5323Life Estates 5300 Section of the Real Estate Manual
Major Overhaul: This section was reduced from 123 to 75 pages Changes to 5300 Section
5300 SECTION - MANUAL ENCROACHMENTS
Section of the Ohio Revised Code any individual, firm, or corporations using or occupying any part of a road or highway on the state’s highway system with lines, pipes, or any object or structure, without a legal permit, shall remove same from the bounds of the highway 5300 Section - Manual Encroachments
In general the information is the same, but section was added Section - Manual Encroachments Clearing Encroachments from an Active Project: Right of way encroachments shall be cleared on all federal aid projects. A determination must be made when and how the project was funded (in whole or in part- PE, R/W or Construction). If the Highway Trust funds were used in any phase, the encroachment must be removed.
Methods dealing with the encroachment: 5300 Section - Manual Encroachments Remove the Encroachment Issue a permit Sell or vacate land –if the R/W is not needed for present or future highway purposes
5300 SECTION - MANUAL Section VACATION OF Rights of Way The entire section was inserted into the Property Management Manual, Section 7400.
5300 SECTION – MANUAL LIFE ESTATE Old Version -Section in the Manual -Section 5323 – Acquiring Property Subject to a Life Estate Categorizes Life Estates into 2 areas 1. Simplistic Acquisitions Partial acquisition, life tenant not displaced. 2.Acquisitions displacing life tenants.
1. Simplistic Acquisitions Partial acquisition, life tenant not displaced The valuation process assumes a single ownership. One RE 22 is created. One NIAGFO is created naming all remaindermen and life tenant(s) as the owner(s). All parties must agree to the price paid. You may need to get guidance from Office of Accounting regarding multiple warrants. Remaindermen sign the instrument. Life tenant signs a release of Life Estate.
Acquisitions Displacing Life Tenants There were four options Option 1. Dissolve the Life Estate Option 2. Life Tenant as Fractional Owner Option 3. Life Tenant to be a tenant and offer a rent supplement. Option 4. ODOT would purchase another property for Life Tenant Section – Manual Life Estate
New Version Section 5323 The categories have been renamed as: 5300 Section – Manual Life Estate - Change Acquisitions That Do Not Displace Life Tenants Acquisitions That Displace Life Tenant
In general, the procedure is the same as “ Simplistic Acquisitions Partial acquisition, life tenant not displaced”, but the procedures are consolidated. Acquisitions That Do Not Displace Life Tenants Acquisitions That Displace Life Tenant Now there is one procedure: Dissolve the Life Estate Allowing the Life Tenants to become the fee owner 5300 Section – Manual Life Estate
Steps for dissolving the Life Estate The District needs to meet with the life estate tenant and remaindermen to determine if all parties are agreeable to dissolve the life estate and making convert into a fee owner District Office is to request that the Ohio Attorney General’s Office prepare the legal documents. The appraisal process has started The appraisal will be reviewed FMVE will be established Once FMVE is established the relocation comping process can be initiated. The acquisition and relocation offer can be made once the life tenant is legally the fee owner.
5400 SECTION OF THE REAL ESTATE MANUAL
PREPARATION AND EXECUTION OF INSTRUMENTS 5400 Section Real Estate Manual 1.Section is controlled in large part by Ohio law. 2.ORC requires AGO approval of instruments used by ODOT to acquire R/W 3. This section was written with concurrence from the AGO
ODOT’s instruments used to acquire the right of rights of way consist of three parts: 5400 Section Real Estate Manual The Conveyance Section The Acknowledgement Section The Description Section or Exhibit A All three parts equal the Instrument
Instrument Forms For Land To Be Acquired: Fee Simple Interest Forms: Warranty Deed (WD) Warranty Deed Limited Access (WL) Perpetual Easements Interest Forms: Standard Highway Easement (SH) Channel Easement (CH), etc…. Temporary Easements Interest Form (T) LPA Temporary Easements (TV) 5400 Section Real Estate Manual Note: If LPA’s are involved, then a V- Designation is added at the end of the initials.
5400 SECTION – MANUAL CHANGES Minor changes All statements referencing the Office of Production were removed. The process has not changed No reduction in size.
5500 SECTION OF THE REAL ESTATE MANUAL
5500 SECTION REAL ESTATE – APPROPRIATION ODOT has the Power of Eminent Domain when highway rights of way cannot be acquired by negotiated purchases. ORC –
Major revision back in 2007 when SB 7 was passed ● SB 7 changed eminent domain law in the State of OHIO 5500 Section Real Estate Manual - Appropriation Settlements $1,000,000 and above require approval from the High Dollar Review Panel. Panel Consist of: Chief Legal Counsel & Deputy Director of Division of Engineering or designees
5500 SECTION REAL ESTATE MANUAL – APPROPRIATION - CHANGE Minor changes Removed language referencing Region offices. No reduction in size Settlements with No High Dollar settlement Old Process: District Deputy Director (DDD or Designee) Region Project Manager (RPM) Recommendation by Assistant Attorney General’s (AAG)
5500 Section Real Estate Manual – Appropriation- cont. New Process: DDD (or designee) and the AAG are the primary decision makers. If DDD and AAG cannot agree, Administrator, Office of RE is tie the breaker.
5600 SECTION OF THE REAL ESTATE MANUAL
ODOT acquires the property in fee simple interest for the state’s highway system Real Estate Manual – Taxes
For fee-acquired parcels: ● ODOT works with the County Auditor to determine the amount of Real Estate taxes owed. Form used: RE 57 form Easement acquired parcels: ODOT notifies the County that an easement encumbers the property by submitting the RE 31 form Section Real Estate Manual - Taxes
5600 SECTION – MANUAL- CHANGES Minor changes Addendum section was removed. No reduction in size of this section.
5700 SECTION OF THE REAL ESTATE MANUAL
Each ODOT District Office is responsible for closing the acquisition parcels for the project Section Real Estate Manual – Closing of Right of Way Purchases
Area of Focus: Fee Simple & Easement Closing Update Title Report Documentation of Disbursement of Compensation Form RE 57 Allocation Tax Form Form RE 44 Closing and Disbursement Statement Form RE 45 Seller Affidavit Form RE 30 Application for Tax Exemption/ Remittance Form RE 31 L ANDS A CQUIRED BY E ASEMENT FOR H IGHWAY P ROPOSES 5700 Section Real Estate Manual – Closing of Right of Way Purchase
Addendum section was removed Old – Easement Acquisition required the RE 44 & RE 45 RE 44 Closing and Disbursement Statement Form RE 45 Seller Affidavit 5700 Section Real Estate Manual – Closing and Purchase - Changes New – Easement Acquisition no longer require forms RE 44 & RE 45
5704 Recording Temporary Easement 5700 Section Real Estate Manual – Closing and Purchase - Changes New -The only exceptions to recording instruments are temporary easements for construction purposes (T parcels) when the T does not create a permanent, negative affect on the residue property Old - Acquisition management could waive the recording requirement for construction easements where the approved estimated value of the easement was $1,000 or less.
5700 SECTION - MANUAL 5400 Recording Right of Entry Old - Rights of Entry that paid more than $5,000 were to be recorded. New -The District has the discretion to determine if a right of entry needs to be recorded or not. This section of the manual was reduced from 19 to 13 pages
THE OFFICE OF REAL ESTATE WEBSITE FOR FORMS Engineering/RealEstate/Pages/Form s.aspx#Acquisition Engineering/RealEstate/Pages/Form s.aspx#Acquisition Examples of filled out ODOT forms Online
FEDERAL & STATE REGULATIONS To Access: ODOT Webpage Manuals
Acquisition Law 49 CFR Part 24: 2/7 Acquisition 102 Basic Negotiations: 3/27 – 3/28 Acquisition 103 Special Negotiations: 4/25 – 4/26 Acquisition 101 Title Reports: 5/8 - 5/9 Acquisition Plan Reading: 5/22 – 5/23 Acquisition 104 Instruments: 8/14 - 8/15 Acquisition 105 Closing & Taxes: 9/25 – 9/26 Acquisition 106 Online Title Reports: 11/13 – 11/ Acquisition Course Schedule
FILE RETENTION PROCESS Due out May 2012 As a Result of the Kaizen NEW SECTION TO THE ACQUISITION MANUAL
CONTACT INFORMATION SEND TO : DOUGLAS MAITLAND US OR WAYNE PACE US