Pub 774
Pub 774
Pub 774
Multimodal Transportation
Projects Undertaken by PennDOT
Table of Contents
Projects receiving federal funds may involve coordination with the appropriate modal agency of the U.S.
Department of Transportation (US DOT):
Projects with a highway component may also include coordination with the Federal Highway
Administration (FHWA).
• Explain the property acquisition process in sufficient detail for project managers in PennDOT’s
Multimodal Transportation Deputate that are not typically involved in property acquisition.
• Establish a process for multimodal property acquisition that uses as many of the long-
established PennDOT right-of-way processes, policies, and forms as possible.
• Document specific differences between highway and multimodal property acquisition for
PennDOT Right-of-Way staff.
• Provide references to controlling documents, such as the Code of Federal Regulations and the
PennDOT Right-of-Way Manual, where applicable.
1.3 Applicability
The laws, regulations, policies, and procedures for the acquisition of property identified in this guide
apply to any multimodal project for which PennDOT is acquiring property and that uses state and/or
federal funding in any phase of the project. This applies even when state or federal dollars are not used
specifically for property acquisition or relocation activities but are used elsewhere in the project, such as
for planning, environmental assessments, design, and/or construction. All applicable state and federal
requirements must be followed to ensure funding is not jeopardized.
This guide is applicable to the following non-exclusive list of multimodal projects: public transit, rail
freight, aviation, ports and waterways, intermodal, and non-motorized facilities. Because these projects
are not as common as highway projects, they may often present special issues. Therefore, the
Multimodal Project Manager should begin coordinating with the District Right-of-Way Administrator (or
delegate) as early as possible in the project development process to ensure that the project will proceed
efficiently and that federal funding will not be jeopardized or delayed.
• Federal Public Law 91-646, The Uniform Relocation Assistance and Real Property Acquisition
Policies Act of 1970, as amended, commonly called the Uniform Act, is the primary federal law
for right-of-way and property acquisition and relocation activities on federally assisted projects.
• The Uniform Act is implemented in federal regulations by Code of Federal Regulations 49, Part
24 (49 CFR 24).
• The Pennsylvania Eminent Domain Code, 26 Pa.C.S. § 101 et seq., and Pennsylvania Attorney
General regulations at 37 Pa. Code Part 151 are the state laws governing right-of-way and
property acquisition and relocation.
• Pennsylvania Act 58 of 2010, the Sale of Transportation Lands Act establishes procedures for
the sale of land acquired by PennDOT.
• PennDOT Publication 378, the Right-of-Way Manual has been written to comply with the
Uniform Act and the Pennsylvania Eminent Domain Code. The Right-of-Way Manual provides
detailed procedures to follow to acquire property for transportation projects.
• The Real Estate Appraisers Certification Act (REACA), Pennsylvania Act 98 of 1990, establishes
standards to be followed by appraisers performing appraisal work in Pennsylvania.
The PennDOT District Right-of-Way Unit in the geographic location of the project is the primary source
of information concerning property acquisition matters. The Multimodal Project Manager should be in
constant contact with the PennDOT District Right-of-Way Unit before, during, and after the project, but
particularly when in doubt concerning proper acquisition policies and procedures.
A. Requirements
The Uniform Act and PennDOT policy require property acquisition records and files to be
maintained in sufficient detail to enable a reviewer to determine compliance with federal and state
requirements. General project files and individual claim files must be set up to give a chronological
listing of the events pertaining to the project and each individual acquisition.
Individual claim files must be set up to show all of the events and records pertaining to the
different aspects of the acquisition. Claim files should include a chronology of correspondence to
the claimant and documents and records of the different property acquisition processes: appraisal,
acquisition, relocation, settlement, and payment(s).
Each claim file should also contain a negotiations record, which chronologically documents events
and verbal discussions with the claimant. An accurate record of all contacts and actions pertaining
to every claim must be maintained. This report should be a logical, legible, chronological account of
information such as names, meeting places, dates, discussions, and claimant counter demands.
Every entry should be signed and dated by the person making the entry.
Approve payments • • •
Issue right-of-way clearance •
Disposition of excess lands • • •
C. Timeframe
Publication 378, Right-of-Way Manual requires records to be retained for at least 21 years after
each owner of a property and each person displaced from the property receives the final payment
to which he or she is entitled under state and federal laws and regulations. The Bureau of Public
Transportation’s retention policy requires records related to the acquisition and/or transference of
land be retained for 100 years. For multimodal projects, any records not contained within ROW
Office will be maintained by the Multimodal Transportation Deputate consistent with these
timeframes.
1.7 Resources
The following resources provide additional information applicable to property acquisition.
A. PennDOT
The information, policies and procedures contained in PennDOT’s Publication 378, Right-of-Way
Manual have been written to comply with the Uniform Act and the Pennsylvania Eminent Domain
Code. The Multimodal Project Manager can ensure consistency with federal funding requirements
by following procedures described in the Right-of-Way Manual. Electronic copies of the most
frequently used forms are also available through the District Office.
Acquiring Real Property for Federal and Federal-aid Programs and Projects
https://www.fhwa.dot.gov/real_estate/practitioners/uniform_act/acquisition/real_property.cfm
Appraisal Relocation
Environmental Condemnation
Problem Payments
Clearance (if needed)
Analysis3
Last Resort
Final Right-of-
Appraisal Housing Plan
Way Plan2
(if needed)
Authorization to
Appraisal Review
Acquire
1
Typically the right-of-way plan is included with Preliminary Engineering, and Appraisal/Acquisition with Final
Design.
2
The Final Right-of-Way Plan can be prepared prior to Environmental Clearance but can only be submitted for
approval after Environmental Clearance.
3
PennDOT’s Waiver Valuation Process for small claims may be used in Multimodal Transportation Projects where
applicable.
2.2 Timeframes
Property acquisition can be a very time-intensive process. Early involvement of the District Right-of-Way
Unit will allow them to provide an estimated timeframe for the property appraisal and acquisition
process for a specific project. The acquisition process can take anywhere from six to 18 months or
longer, depending on the project. If relocation is involved, it can take at least six months after
negotiations are completed. If any properties are condemned, rather than settled amicably, additional
time will also be required. See Appendix G.01, Expedited Right-of-Way Procedures, Publication 378,
Right-of-Way Manual for information which can help to reduce property acquisition times.
Multimodal projects may be funded through a variety of public funding sources, some of which are
not typical transportation sources. If public funds anticipated as part of a project’s development
pro forma are not received, the resultant funding gap could seriously jeopardize project
implementation, resulting in lost time, money, and construction delays, at a minimum. Therefore, a
commitment of public funds needs to be secured in writing from each public funding agency in the
planning phase.
B. Public-Private Partnerships
A public-private partnership is a contractual agreement formed between a public agency and a
private sector entity allowing for greater private sector participation in the delivery and financing of
transportation projects. Involving the private sector early in transportation projects can leverage
creativity, efficiency, and capital to implement transportation projects.
A need is a tangible, fact-based problem or issue (such as some type of transportation deficiency like
lack of public rail access) that will be addressed by the transportation project. A project’s need justifies a
commitment of resources, including public funding, and potential impacts to the environment and
public.
The project purpose is a statement of why a project is being pursued or what the project intends to
accomplish by addressing the transportation need (such as to provide transportation mobility and safety
improvements through property acquisition).
Involving the public and federal, state, and local regulatory, environmental, and resource agencies
during the transportation planning process will help define and refine the purpose and need.
• The funding source(s) required to implement the project which will in turn help determine
which agency has jurisdiction over project review.
• The planning and environmental studies required to move the project forward.
Comprehensive project scoping will lead to the eventual preparation of several planning studies such as,
but not limited to, the following: functional studies to define the end users’ requirements; site selection
including properties identified for acquisition; technical studies such as geotechnical, soil and water, and
land use and zoning; utility investigations; environmental studies; and preacquisition surveys and
relocation plans.
one of the three classes of action. PennDOT Publication 10B, Design Manual 1B, provides detailed
requirements for NEPA compliance.
If there are no impacts or very limited impacts, the project will follow the path of a CE. The two
types of CEs are listed and documented. Listed CEs are types of projects that the US DOT agency
has identified ahead of time as having no significant impacts. Documented CEs require the project
to undertake necessary research and studies to prove that the project will not cause any significant
environmental impact.
In cases where the significance of impacts or actions is not known, an EA is performed. The purpose
of an EA is to determine whether the proposed project has the potential for significant adverse
social, economic, or environmental impact. The significance of impacts is judged on a case-by-case
basis and measured in terms of the impacts’ context and intensity (40 CFR 1508.27). The EA process
may also facilitate identification of alternatives and measures which might mitigate adverse
environmental impacts. If the EA concludes that no significant impacts are created by the project,
the lead federal agency will issue a Finding of No Significant Impact (FONSI). If significant impacts
are identified either before the EA is completed or at its completion, then the lead federal agency
will expand the study to a full EIS.
An EIS is conducted when a project will significantly affect the quality of the environment. An EIS
will include detailed environmental studies, related engineering studies, agency coordination, and
public involvement. Following the circulation and approval of a Draft Environmental Impact
Statement (DEIS) and Final Environmental Impact Statement (FEIS), the agency may issue a Record
of Decision (ROD) documenting the work performed, decisions made, and mitigation commitments
to be honored during the final design and construction. If new information is found, conditions
change, or three or more years have elapsed, a reevaluation may be required. In some cases, if the
conditions change the project significantly, a supplemental EIS will be required.
Proposed Action
Unknown
Notice of Intent
----- Significant
and Scoping
Documented Environmental Impacts
Listed CE Process
CE Assessment
Draft EIS
Coordination and Analysis As
Needed No Significant
Impacts
Public Input
Documentation
Final EIS
Finding of No
Significant
Impact (FONSI)
Record of
Decision (ROD)
National Environmental Policy Act (NEPA) Implementing Instructions for Airport Projects
http://www.faa.gov/airports/resources/publications/orders/environmental_5050_4/
Categorical Exclusions
http://www.faa.gov/airports/resources/publications/orders/environmental_5050_4/media/chapte
r6.pdf
Categorical Exclusions
http://www.fta.dot.gov/12347_15129.html
Maritime Administration
General Environmental Information
http://www.marad.dot.gov/environment_safety_landing_page/O_of_Environment/office_of_envir
onment.htm
Categorical Exclusions
http://www.marad.dot.gov/documents/mao_600-001-0.pdf
For major capital transit projects, which generally involve a new or expanded fixed guideway system or
or meet other criteria, an acquisition plan called the Real Estate Acquisition Management Plan (RAMP) is
required. A RAMP is required for major capital projects as a part of the Project Management Plan (PMP)
under 49 CFR 633.25 and in accordance with the Uniform Act. A full RAMP is not required for other
capital projects with real estate acquisition; however, all capital projects must be in compliance with the
Uniform Act if property acquisition or relocation assistance is involved. The RAMP is a planning
document for the acquiring agency and is a control document for FTA that includes real estate goals and
methodology from the perspective of timing, staffing, statutory, and policy issues. Refer to FTA Grant
Management Requirements in FTA Circular 5010.1D and the sample RAMP plan outline
at http://www.fta.dot.gov/documents/RAMP_Outline_Revised.doc.
2. Donation
In some cases, a transportation project may be developed in conjunction with a commercial
project, such as a transit station and adjacent housing. In these instances, a developer may
purchase the land to be used for a transportation project and donate it to PennDOT. See
Section 3.03.L, Donations of Real Property by a Property Owner, of Publication 378, Right-of-
Way Manual.
B. Condemnation
As noted above, every reasonable effort must be made to proceed to an amicable settlement.
However, when irreconcilable differences between a property owner and PennDOT exist,
condemnation proceedings can be initiated. Condemnation involves PennDOT’s use of its powers of
eminent domain to take private property for public use without the property owner’s consent upon
payment of just compensation. See Section 6.4 for additional information on condemnation.
C. Advanced Acquisition
Advanced acquisition is done prior to environmental clearance to ensure corridor or property
preservation, access management, or other critical purposes. Use of this process requires careful
consideration and close coordination with the appropriate modal agency of the US DOT. Advanced
acquisition is discussed in Section 3.12, Early Acquisition, of Publication 378, Right-of-Way Manual.
There are several types of advanced acquisition.
1. Hardship Acquisitions
Property may be purchased early in the project development process when the current
property owner experiences a unique hardship. In these instances, the property owner must
demonstrate an inability to sell the property and demonstrate a particular medical or financial
hardship. Detailed requirements are contained in Section 3.11.B, Hardship Acquisitions, of
Publication 378, Right-of-Way Manual.
2. Protective Buying
Property may also be purchased early in instances where a parcel which may be necessary for
the project is about to be further developed, raising the future purchase price of the property
to a point where it restricts the ability to complete the project. The procedures for this process
are detailed in Section 3.11.D, Protective Buying, of Publication 378, Right-of-Way Manual.
Pennsylvania courts have established legal limits on the use of condemnation procedures for
protective buying purposes.
In order to purchase property using this CE, an agency must make a request to FTA and receive
subsequent approval. There are also several stipulations for its use. The property cannot be
within or adjacent to recognized environmentally sensitive areas. In addition, the purchase
must not result in a substantial change in the functional use of the property or substantial
displacements, or limit the evaluation of alternatives for future FTA-assisted projects on the
acquired property. The purchase must also comply with Uniform Act requirements. Guidance
Other federal agencies funding multimodal property acquisition projects do not have
directives as clear as that of FTA and FHWA regarding early land acquisition. However, MARAD
provides some guidance on CEs. Administrative Order 600-1, Procedures for Considering
Environmental Impacts, dated July 23, 1985, states that a CE may potentially be issued for the
acquisition of land in which the property will not be modified, its use will not be changed, and
displacements will not occur. Maritime Administrative Order 600-1, Procedures for
Considering Environmental Impacts, is located at
http://www.marad.dot.gov/documents/mao_600-001-0.pdf
The option may be implemented either before or after the NEPA process. However, the
exercise of the option (i.e., the actual purchase) cannot occur until after NEPA clearance. In
addition, the Uniform Act still applies to options to purchase to ensure land owners are
treated fairly and receive just compensation for their property.
1. The District Right-of-Way Unit creates the project damage estimate. 1. The District
Right-of-Way
Administrator (or
delegate) forwards the project damage estimate to the Bureau of Fiscal Management and to the
Managing Bureau.
2. The Center for Program Development and Management sets up the project in MPMS.
3. The Managing Bureau requests that the Bureau of Fiscal Management reserve funding for the
project and provides the MPMS number, the WBS Elements, the project timeline, and the
estimated cost of acquisition.
4. The Bureau of Fiscal Management grants the District budget authority for the estimated
amount.
5. The District Fiscal Officer submits an SAP-7 to encumber funds. The project will be set up as a
100% State funded highway project using Program Code 341.
6. The District Right-of-Way Administrator (or delegate) sets up the project in ROW Office.
7. The District Right-of-Way Unit will submit payments and generate invoices via the normal Right-
of-Way Office payment process.
8. On a quarterly basis, the District Fiscal Officer will notify the Bureau of Fiscal Management and
the Managing Bureau of the amount invoiced during the quarter.
9. The Bureau of Fiscal Management will transfer the quarterly invoice amount from the
multimodal funding reserved for the acquisition to Highway funds.
4. Right-of-Way Plans
A right-of-way plan is a drawing showing a combination of real property data, survey data, and design
engineering related to property that must be acquired in order to complete a transportation project.
Right-of-way plans are the basis for determining all property damages that may be involved in the
construction of a transportation project. Right-of-Way plans are
also the legal record indicating the location, the extent, and the Right-of-Way Plans
character of any acquisition of property.
A right-of-way plan is required
for all property acquisitions for
A right-of-way plan is required for all multimodal property multimodal transportation
acquisitions. When acquiring property through condemnation, a projects. The right-of-way plan
right-of-way plan is required by law. Preparing a right-of way plan, must be signed by the
therefore, serves as insurance in case property negotiations fail and Secretary of Transportation
the property must be condemned. and recorded in order to file a
declaration of taking.
4.1 Right-of-Way Plan Preparation
A right-of-way plan is generally initiated during preliminary engineering and finalized at the beginning of
final design. The plan must be prepared showing the relevant property or properties and must contain
the names of the owners or reputed owners, an indication of the estate or interest to be acquired,
survey data associated with the property, and relevant design engineering. A detailed discussion of
right-of-way plan preparation is contained in Publication 14M, Design Manual Part 3 (DM-3), Plans
Presentation, Chapter 3, Right-of-Way Plans. In addition, Subsection G of Chapter 3 describes Simplified
Right-of-Way Plans and may be especially relevant to many multimodal projects.
All recommended changes arising from the review will be discussed State Funding for Airport
fully with the design engineer and with the professional land Acquisitions
surveyor in control of the plan. Any problems must be resolved prior
All airport property acquisitions
to the submission of the right-of-way plans to the DM-3 plan using state funds must have
reviewer. title to the property along with
the associated PennDOT grant
4.3 Approval of Final Right-of-Way Plan assurances recorded with the
Once a final right-of-way plan is issued, it must be independently recorder of deeds of the
reviewed for compliance with DM-3. The Multimodal Project county in which the airport is
Manager must coordinate the DM-3 plan review of the multimodal located.
right-of-way plan and issue approval of the plan. If a design
consultant is hired to review the plan, this design consultant must
be independent of the design consultant who prepared the plans. The DM-3 plan reviewer will review
the plan and request any necessary changes. When the review is complete and Environmental Clearance
has been obtained, the right-of-way plan may be approved and executed. The right-of-way plan must be
executed by the Secretary of Transportation.
Appraisal and appraisal review procedures are detailed in Chapter 2, Appraisals, of PennDOT’s
Publication 378, Right-of-Way Manual, and that manual’s Appendix A, the Appraisal Guide.
The first step in the appraisal process is the Project Damage Estimate, which is followed by the Appraisal
Problem Analysis, the Appraisal, and the Appraisal Review.
Section 2.11.J.1.a of Publication 378, Right-of-Way Manual specifies the accepted contracting methods
for consultants to assist with property acquisition. The methods are briefly described below.
• Appraisal services must be procured using the ITQ process specified in Section 2.13.
• Appraisal review services must be procured via the current Appraisal Review Services Contract
• Right-of-Way Acquisition Services can be procured using the consultant engineering selection
process in ECMS, as detailed in Section 3.01.E. The right-of-way acquisition consultant on a
project may not perform appraisal or appraisal review services for that project.
It is expected that fiscal procedures will be in place to allow consultant expenses to be charged directly
to the multimodal project.
An APA may only be written by experienced and competent personnel familiar with eminent domain
appraising. The District Right-of-Way Unit determines competency. The Review Appraiser must review,
approve and sign all APAs. A copy of the APA must be included in the claim file for the project.
sale data reporting services, real estate agents and multiple listing services, appraisers, owners and
tenants, and internal PennDOT appraisals and files. The results of the data collection and appraisal are
captured on one or more of the many standard forms and report formats PennDOT has prepared to be
used in the appraisal process.
Forms have been updated to use language that is general enough so that they can be used for all
projects, both highway and multimodal. The forms used for the appraisal process are described in
Chapter 2, Appraisals, of Publication 378, Right-of-Way Manual. The most commonly used forms
include:
Some appraisal assignments require specialty reports, such as machinery and equipment (M&E), coal,
oil, gas, timber, liquor licenses, engineering studies, and cost of adjustment analyses. The District may
require the appraiser to obtain and incorporate the report in their appraisal or the District may obtain
the report and provide a copy to the appraiser. If the appraiser obtains an M&E report, it must be
delivered to PennDOT separate from the appraisal report.
• Recommended - Recommended as the basis for the establishment of the amount believed to be
just compensation.
• Not accepted - Reasons for not accepting the appraisal should be included.
The review appraiser will recommend the appraisal as the basis for the establishment of the amount
believed to be just compensation and report this amount.
6. Acquisition
Acquisition involves direct personal contact with the people affected by a project. The primary goal is to
acquire property interests through negotiation rather than through the use of condemnation.
Negotiations must be conducted by either PennDOT District staff negotiators or right-of-way consultants
hired to perform acquisition services for the project (See Section 5.1 of this guide and Section 3.01.E of
Publication 378, Right-of-Way Manual).
• Personally contact each property owner or the owner’s designated representative in order to
explain the acquisition process, including the owner’s right to accompany the appraiser during
inspection of the property.
• Provide the owner with a prompt, written offer of the approved estimate of just compensation
for the real property to be acquired and a summary statement of the basis for the offer.
• Conduct negotiations without any attempt to coerce the property owner into reaching an
agreement.
• Pay the agreed purchase price before requiring the property owner to surrender possession of
the property being acquired.
Claim files must contain documentation showing compliance with the above requirements.
Acquisition procedures are detailed in Publication 378, Right-of-Way Manual, Chapter 3, Acquisitions.
If all reasonable efforts to make personal contact fail, or if personal contact is impracticable, for
example, such as when an owner lives in another state, the owner may be contacted by certified mail or
other means appropriate to the situation. Refer to Section 3.02, The Negotiation Process, Publication
378, Right-of-Way Manual, for more information.
judgment concerning the amount of the offer. In addition to the offer amount and location, the
summary statement should include an identification of buildings, structures and other improvements to
be acquired, and an identification of any separately held ownership interest in the property such as a
tenant-owned improvement and a statement, if appropriate, that such interest is not covered by the
offer. Refer to Section 3.03, Specific Offer/Acquisition Situations, of Publication 378, Right-of-Way
Manual, for more information.
6.3 Negotiations
The negotiator must give the property owner a reasonable opportunity to consider the offer. This not
only provides the owner a chance to thoroughly review and evaluate the offer, it eliminates any
appearance of coercion. It also provides a chance for the owner to present material he or she believes is
relevant to determining the property’s value, and to suggest modifications to the proposed terms and
conditions of the purchase.
Ongoing negotiations must be conducted free of any attempt to coerce the property owner into
reaching an agreement. For example, the negotiator should be careful not to threaten condemnation,
advance the time of condemnation, defer negotiations, or delay the deposit of funds with the court to
coerce an agreement with the property owner.
At a minimum, three negotiating contacts, typically within 30 days, should be made with any property
owner. Every reasonable effort must be made to proceed to an amicable settlement. If, after three or
more contacts are made, irreconcilable differences between the property owner and the acquiring
agency exist, condemnation proceedings should be initiated. District Right-of-Way Administrator (or
delegate) oversight and concurrence is required for all condemnation proceedings. Refer to Section
3.02, The Negotiation Process, of Publication 378, Right-of-Way Manual, for more information.
The Eminent Domain Code provides that the owner of any right, title, or interest (including a tenant’s
interest) in real property acquired by an acquiring agency must be reimbursed for a portion or all
reasonable expenses actually incurred for independent appraisal, attorney, and engineering fees.
Limitations on these reimbursements are detailed in Chapters 3, Acquisitions, and 4, Relocation
Assistance of Publication 378, Right-of-Way Manual.
6.4 Condemnation
Where an amicable settlement cannot be reached despite the best efforts of the parties, PennDOT has
the power of condemnation to acquire the necessary property for its multimodal transportation project.
The PennDOT Office of Chief Counsel is involved and helps lead the condemnation process. For the filing
of a formal declaration of taking, a right-of-way plan signed by the Secretary must be recorded in the
county Recorder of Deeds office where the property is located and the taking must be within one year of
the date the plan was signed. If not, the plan must be authorized and re-recorded before the declaration
of taking can be filed. PennDOT acquisition procedures for formal condemnation are the same for
multimodal transportation projects as they are for regular highway projects. See Publication 378, Right
of Way Manual, Section 3.08.
Legal title to the required area of the taking transfers immediately upon the filing of the declaration of
taking in the county courthouse; notice of the taking is recorded in the Recorder of Deeds office the
same day the declaration is filed. A landowner has 30 days from the date the declaration of taking is
served to file preliminary objections. Where no objections have been filed or, if filed, where they are
disposed of in favor of PennDOT, the taking becomes final. The legal right to possession of the acquired
area is different from legal title. In order to obtain the legal right to possession, PennDOT complies with
the Uniform Act requirement that estimated just compensation must be either paid or deposited into
court. Refer to Publication 378, Right of Way Manual, Section 3.09.
A landowner has six years from the date estimated just compensation is paid or deposited to file a
petition for the appointment of a board of view. The petition initiates a damages action on the issue of
just compensation. Prior to the filing of a petition, PennDOT has a procedure for post-condemnation
settlement. However, once a petition for viewers is filed, the matter is deemed to be in formal litigation
and the claim will be handled by the Office of Chief Counsel in a manner similar to claims in highway
projects. See Publication 378, Right of Way Manual, Section 3.10.
A. Administrative Settlements
An administrative settlement is an administrative decision to settle a claim for an amount greater
than PennDOT’s estimate of just compensation. As a general
rule, the use of an administrative settlement should be FTA Advisory
considered only after diligent negotiations. District Right-of-Way
Administrator (or delegate) oversight and concurrence is Administrative settlements in
required for all administrative settlement actions. When the excess of $50,000 more than
property owner rejects an offer and a counter demand current fair market value
presented by the owner has merit, an administrative settlement require prior FTA concurrence.
is a viable alternative to protracted condemnation proceedings. The appropriate Bureau
The prudent use of administrative settlements is especially Director in the Multimodal
Transportation Deputate will
helpful for low-value claims. Refer to Section 3.04,
coordinate the FTA
Administrative Settlements, of Publication 378, Right-of-Way
concurrence.
Manual for more information, noting the following changes for
multimodal projects:
B. Dedications
PennDOT may accept a parcel of land that a developer of a subdivision has dedicated or proposes
to dedicate for transportation purposes. PennDOT may also accept the land if the dedication is
made pursuant to the local planning process or at the request of the property owner for land use
concessions.
Property acquired through normal zoning and subdivision procedures requiring the donation or
dedication of strips of land in the normal exercise of police power is not considered an acquisition
or taking in the constitutional sense. Thus, payment of just compensation or compliance with
provisions of the Uniform Act is not required, since police power is used. Police power is the
inherent right of government to pass such legislation as may be necessary to protect the public
health and safety and to promote the general welfare. Refer to Section 3.03M, Dedications of Real
Property by a Governmental Body, of Publication 378, Right-of-Way Manual for more information.
Federal funds may be used to acquire uneconomic remnants regardless of whether the remnants
are incorporated into the other acquired property or not. Uneconomic remnants incorporated
within the other acquired property limits lose their separate identity and become part of the
acquired property. Remnants that are not incorporated within the acquired property would be
disposed of in the same manner as disposed highway right-of-way. Refer to Section 3.03B,
Acquisition of Uneconomic Remnants, of Publication 378, Right-of-Way Manual for more
information.
No payment should be made to a tenant-owner for improvements unless all the following apply:
• The tenant-owner assigns, transfers, and releases to the acquiring agency all of the tenant-
owner’s right, title, and interest in the improvement.
• The owner of the real property on which the improvement is located disclaims all interest in
the improvement.
Refer to Section 3.03E, Acquisition of Land and Tenant-Owned Improvements, of Publication 378,
Right-of-Way Manual for more information.
Housing resources must meet the needs of displaced persons in terms of size, location, and timely
availability. Advisory services and various notices, some with specific timing requirements, must be
provided. Payments must be made to displaced persons at the time they are needed in order to obtain
replacement housing. Businesses must be given relocation assistance with a minimum of disruption to
operations.
As part of the preliminary engineering phase and concurrent with the environmental study, a
Conceptual Stage Survey is conducted prior to the right-of-way phase to provide pertinent data to
uncover any easily identified relocation problems. The formal written presentation of the data is
summarized into the Conceptual Stage Report and serves as the basis for the pre-acquisition survey to
identify relocation needs and establish an inventory of available comparable housing and replacement
housing sites.
If relocation of residential or business owners or tenants will be required, the District Right-of-Way Unit
or the relocation consultant must prepare a pre-acquisition survey and relocation plan. The pre-
acquisition survey cannot be completed until a right-of-way plan is prepared that indicates what real
property must be acquired for the project. This report should be specific regarding the displacement of
residences or businesses and should include a detailed relocation plan. Refer to Section 4.02, Relocation
Program from the Conceptual Stage Until Initiation of Negotiations for the Project, Publication 378,
Right-of-Way Manual, for more information.
Notice to Vacate cannot be given until the PennDOT has legal right to possession of the acquired
property. The required date of possession may be extended when conditions warrant, but any
extension must be in writing and must give another specific date by which the property must be vacated.
Shortly after the notice is received by the displaced person, the relocation advisor (see Section 7.6) must
personally visit to offer relocation assistance and to establish the specific date to vacate based on the
date shown on the certified mail return receipt card. Once this date is established, it should be noted on
the District’s copy of the notice and in the Claimant Contact screen in ROW Office.
It is the relocation advisor’s responsibility to do everything possible to assist the displaced person in
meeting the established schedule to vacate the property. If the displaced person does not vacate the
premises as required, the District Right-of-Way Administrator (or delegate) can initiate a request to the
PennDOT Office of Chief Counsel to prepare a petition for writ of possession to begin the process for
eviction. See Section 3.10.D of Publication 378, Right-of-Way Manual, for additional details on eviction
and writ of possession.
Note that this requirement may also apply to the owners of outdoor advertising devices (OAD) that are
located within the required right-of-way. An owner of an OAD may choose to move the OAD and
receive an actual moving cost payment for which assistance may be required. As an alternative, the
owner may choose to abandon the OAD in-place and receive a tangible personal property loss payment
which would not require relocation assistance. Refer to Section 4.05, Relocation of Off-Premise OADs,
Publication 378, Right-of-Way Manual, for more information.
Rent Supplement
This payment is to assist a displaced person to rent a replacement dwelling. This payment consists of
the supplement only. There are no closing or increased mortgage interest costs associated with renting.
Down-payment Supplement
This payment is to assist a displaced person to put a down payment on a replacement dwelling and
help pay for closing costs. This is a lump sum payment for all eligible displaced persons.
Moving Costs
This payment is to assist a displaced person to move personal property. A displaced person may
choose an actual cost move by a mover, a fixed-schedule payment, or a combination of those
methods.
Prior to using Last Resort Housing, the District Right-of-Way Unit must prepare and submit to Central
Office Right-of-Way Acquisition Unit for approval a “Last Resort Housing Plan” outlining the proposed
method for providing comparable replacement housing. See Section 4.07.D, Last Resort Housing Plan
Requirements, of Publication 378, Right-of-Way Manual.
• Explanation that no person can be required to move from a dwelling unless replacement
housing is available.
• Explanation of the eligibility requirements for each type of relevant relocation payment.
FED.PROJ.NO.: COUNTY:
CITY-BORO-TWP: S.R./SEC.:
PROPERTY OWNER:
W I T N E S S E T H:
WHEREAS, this option agreement, in the nature of a continuing offer to purchase, is authorized
by law as being incidental to the right of the COMMONWEALTH to purchase land in fee simple or such
lesser estate or interest as it shall determine; and
WHEREAS, the parties hereto have agreed that the PROPERTY OWNER agrees to enter into an
Agreement for the voluntary sale of the Subject Property in lieu of condemnation as per the Sales
Agreement attached as Exhibit “A” and incorporated herein by reference, and to grant to the
COMMONWEALTH at this time an Option to do so as set forth and described in this Agreement; NOW
THEREFORE, for and in consideration of the foregoing premises and the mutual promises set forth below,
the parties agree, with the intention of being legally bound, to the following:
1. In consideration of the sum of $[insert amount] paid to the PROPERTY OWNER, the
receipt and sufficiency of which is hereby acknowledged, the PROPERTY OWNER grants to the
COMMONWEALTH its successors and/or assigns, the sole and exclusive right and Option to purchase the
Subject Property described in paragraph 14 of this agreement, together with all improvements, easements,
and appurtenances to the Subject Property, within the time specified in this Agreement. In the event that
the Option granted herein is exercised, the above-recited consideration shall be applied against and be
considered as a part of the purchase price.
2. Subject to the provisions of paragraph 6, below, relating to notices, and the provisions of
paragraph 11, below, relating to extensions of time, this Option may be exercised by the
COMMONWEALTH at any time on or before 18 months from the executed date of this agreement as set
forth above, by depositing written notice to that effect in the United States mail on or before that date or by
delivering written notice of the exercise of this Option to the PROPERTY OWNER at the address set forth
in this Agreement on or before the date set forth in this paragraph. Within thirty days (30) of such written
notice the parties shall complete and execute the attached Agreement of Sale (Exhibit “A”) becoming a
binding contract of purchase and sale between the parties. If the COMMONWEALTH fails to exercise this
Option before its expiration, the PROPERTY OWNER shall retain the consideration paid pursuant to
paragraph 1, above.
3. The purchase price for the Subject Property shall be determined by the
COMMONWEALTH’s appraisal valuation process in compliance with PennDOT Pub. 378, Ch.2 and
Appdx. A (The Appraisal Guide). The PROPERTY OWNER acknowledges the appraisal procedures of
the COMMONWEALTH referenced herein to be a good faith methodology at arriving at a fair market
value. Notwithstanding the terms of this paragraph, it is mutually agreed that the parties reserve the right
to negotiate price. It is further understood that nothing in this Agreement constitutes a waiver of the right
of the COMMONWEALTH to exercise the sovereign power of eminent domain to acquire the Subject
Property for the payment of just compensation and other amounts as required by law.
4. Conveyance, title and possession shall be as set forth in the terms of the Agreement of Sale
(Exhibit “A”), when completed.
5. The COMMONWEALTH, its employees or agents shall have the right to enter upon the
Subject Property in order to make any inspections, studies, surveys and tests of the Subject Property that
the COMMONWEALTH shall deem appropriate.
6. All notices provided for in this Agreement, if not delivered in person, shall be sent by the
COMMONWEALTH by United States certified mail, return receipt requested, to the PROPERTY OWNER
at:
[insert address of property owner]
And by the PROPERTY OWNER by United States certified mail, return receipt requested, to the
COMMONWEALTH at:
Commonwealth of Pennsylvania
Department of Transportation
400 North Street, 9th Floor
Harrisburg, PA 17120
Either party shall have the right to designate a new address for the receipt of notices by written notice to
the other party as provided by this paragraph.
7. This Agreement contains the entire agreement between the parties relating to the Option
granted. Any oral representations or modifications concerning this Agreement shall be of no force and
effect, and no subsequent modification to the Agreement shall be made except in a writing executed by the
parties.
8. The GRANTOR agrees to comply with the Offset Provision, Contractor Integrity
Provisions, and Provisions Concerning the Americans with Disabilities Act, all attached as Exhibit “B” and
incorporated herein by reference.
10. The GRANTOR agrees to comply with the Contractor Responsibility Provisions attached
as Exhibit “E” and incorporated herein by reference.
11. The time-limit set forth in paragraph 2, above, within which the COMMONWEALTH shall
have the right to exercise this Option, may be extended at any time in writing by the execution by the parties
of an EXTENSION OF TIME, which need not be supported by any further consideration. The
EXTENSION OF TIME shall be on the form, as herein agreed to by the parties, attached as Exhibit “F”
and incorporated herein by reference, which, if executed, shall operate as an amendment to this Agreement
as a substitute for paragraph 2, above, with all other terms of this Agreement remaining in full force and
effect. The Deputy Secretary of Transportation may delegate the authority to execute the EXTENSION
OF TIME under this paragraph to the Special Assistant for Deputy for Local Area Transportation.
Extensions of time under this paragraph shall not require any other approval, provided that they are on the
form provided in Exhibit “F”. Any changes to Exhibit “F” shall be approved as to form and legality as
provided by Pennsylvania law.
12. The GRANTOR agrees to comply with the Automated Network Clearing House Provisions
attached as Exhibit “G” and incorporated herein by reference.
14. A metes and bounds description, along with a plot plan believed to be accurate, is attached
hereto and made a part hereof as Exhibit “I.”
IN WITNESS WHEREOF, the parties have executed this Agreement the date first above written.
BY________________________________ BY______________________________
Title: DATE Title: DATE
If a Corporation, the President or Vice-president must sign and the Secretary, Treasurer, Assistant
Secretary or Assistant Treasurer must attest; if a sole proprietorship, only the owner must sign; if a
partnership, only one partner need sign; if a limited partnership, only the general partner must sign. If a
Municipality, Authority or other entity, please attach a resolution.
_______________________________________________________________________________
DO NOT WRITE BELOW THIS LINE--FOR COMMONWEALTH USE ONLY
COMMONWEALTH OF PENNSYLVANIA
DEPARTMENT OF TRANSPORTATION
BY____________________________________
Deputy Secretary of DATE
Transportation
BY_______________________________ BY_____________________________
For Chief Counsel DATE Assistant Counsel DATE
RECORDED NO.___________________
BY_______________________________ CERTIFIED FUNDS AVAILABLE UNDER
Deputy Attorney DATE ACTIVITY PROGRAM_______________
General SYMBOL__________________________
AMOUNT__________________________
BY_______________________________
Deputy General DATE BY_____________________________
Counsel for Comptroller DATE