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Property Acquisition Guide for

Multimodal Transportation
Projects Undertaken by PennDOT

PUB 774 (6-15)


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Property Acquisition Guide for Multimodal Transportation Projects Undertaken by PennDOT

Table of Contents

1. General Provisions ............................................................................................................................ 1


1.1 Introduction .................................................................................................................................. 1
1.2 Document Objectives .................................................................................................................... 2
1.3 Applicability................................................................................................................................... 2
1.4 Authority and Responsibilities ...................................................................................................... 2
1.5 Roles and Responsibilities ............................................................................................................. 3
1.6 Right-of-Way Files and Recordkeeping ......................................................................................... 3
1.7 Resources ...................................................................................................................................... 5
2. Multimodal Property Acquisition Process ........................................................................................ 7
2.1 Process .......................................................................................................................................... 7
2.2 Timeframes ................................................................................................................................... 8
3. Project Planning and Funding ........................................................................................................... 9
3.1 Funding Sources ............................................................................................................................ 9
3.2 Project Purpose and Need .......................................................................................................... 10
3.3 Project Scope .............................................................................................................................. 10
3.4 Environmental Compliance ......................................................................................................... 11
3.5 Property Acquisition Plan............................................................................................................ 15
3.6 Property Acquisition Methods .................................................................................................... 15
3.7 Right-of-Way Plan ....................................................................................................................... 17
3.8 Right-of-Way Payment Process................................................................................................... 17
4. Right-of-Way Plans.......................................................................................................................... 19
4.1 Right-of-Way Plan Preparation ................................................................................................... 19
4.2 Review of Preliminary Right-of-Way Plan ................................................................................... 19
4.3 Approval of Final Right-of-Way Plan ........................................................................................... 19
4.4 Authorization to Acquire............................................................................................................. 20
5. Appraisal, Appraisal Review, and Appraisal Waiver........................................................................ 21
5.1 Contracting for Appraisal and Right-of-Way Services ................................................................. 21
5.2 Appraiser Certification ................................................................................................................ 22
5.3 Project Damage Estimate ............................................................................................................ 22
5.4 Appraisal Problem Analysis ......................................................................................................... 22
5.5 Appraisal Process, Forms, and Reports ....................................................................................... 22
5.6 Revising and Updating Appraisals ............................................................................................... 23
5.7 Appraisal Review ......................................................................................................................... 23
5.8 Waiver Valuation ........................................................................................................................ 24
6. Acquisition ...................................................................................................................................... 25
6.1 Personal Pre-Negotiation Contact .............................................................................................. 25
6.2 Prompt Written Offer ................................................................................................................. 25
6.3 Negotiations ................................................................................................................................ 26
6.4 Condemnation ............................................................................................................................ 26
6.5 Other Types of Acquisitions ........................................................................................................ 27

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Property Acquisition Guide for Multimodal Transportation Projects Undertaken by PennDOT

7. Relocation Assistance and Payments .............................................................................................. 29


7.1 Pre-Acquisition Survey and Relocation Plan ............................................................................... 29
7.2 Relocation Notices ...................................................................................................................... 30
7.3 Residential Relocation Payments ................................................................................................ 31
7.4 Replacement Housing of Last Resort........................................................................................... 32
7.5 Business Relocation Payments.................................................................................................... 32
7.6 Relocation Advisory Services ...................................................................................................... 32
8. Right-of-Way Clearance Certificate ................................................................................................. 34
Appendix A: Sample Real Estate Purchase Option Agreement .................................................................. 35

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Property Acquisition Guide for Multimodal Transportation Projects Undertaken by PennDOT

Property Acquisition Guide for Multimodal Transportation


Projects Undertaken by PennDOT
1. General Provisions
1.1 Introduction
Transportation projects often require the acquisition of property
to accommodate the constructed improvement. For highway What is a multimodal project?
projects, this process occurs frequently and has become
standardized over time. The acquisition of property for Multimodal projects are
transportation projects
multimodal projects occurs much less frequently than for
undertaken by the PennDOT
highway projects and can differ from the standard highway Multimodal Transportation
process in important ways. Therefore, this guide is intended to Deputate. Examples of non-
provide an overview of the property acquisition process for highway projects are the
multimodal projects undertaken by PennDOT. This guide is not improvement of a passenger rail
intended to control the acquisition of right-of-way when station on the Keystone Corridor
multimodal grants are awarded to third parties. and the construction of a new
maintenance facility for a transit
The intended audience for this document includes project agency.
managers within the bureaus of PennDOT’s Multimodal
Transportation Deputate as well as PennDOT right-of-way staff
at the Districts and Central Office.

Projects receiving federal funds may involve coordination with the appropriate modal agency of the U.S.
Department of Transportation (US DOT):

• Federal Transit Administration (FTA)

• Federal Aviation Administration (FAA)

• Federal Railroad Administration (FRA)

• Maritime Administration (MARAD)

Projects with a highway component may also include coordination with the Federal Highway
Administration (FHWA).

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Property Acquisition Guide for Multimodal Transportation Projects Undertaken by PennDOT

1.2 Document Objectives


This document has the following objectives:

• 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.

1.4 Authority and Responsibilities


Several federal and state laws govern the acquisition of private property for transportation
improvements. These laws are further supplemented by the professional standards for real property
valuation. Noted below are the most important laws and standards governing property acquisition.

• 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.

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• 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.

1.5 Roles and Responsibilities


The Multimodal Project
Property acquisition for multimodal projects is a complex process with
Manager should begin
varying roles and responsibilities. In general, it will be the District Right-of- coordinating with the
Way Unit’s responsibility to manage the acquisition of property for the District Right-of-Way
project. The District’s efforts will be overseen and supplemented by the Administrator as early
Multimodal Transportation Deputate, the Central Office Utilities and Right- as possible in the
of-Way Section, and the PennDOT Office of Chief Counsel. Table 1 project development
summarizes the key property acquisition tasks and the group responsible process.
for leading that task.

1.6 Right-of-Way Files and Recordkeeping

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.

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Property Acquisition Guide for Multimodal Transportation Projects Undertaken by PennDOT

Table 1 – Property Acquisition Task Responsibility Matrix


Multimodal District Central Office PennDOT
Property Acquisition Tasks Transportation Right-of-Way Right-of-Way Office of
Deputate Unit Section Chief Counsel

Create right-of-way plan •


(design consultant)

Perform DM-3 right-of-way •


plan review and approval (2nd design consult.)

Sign right-of-way plan •


Authorization to acquire •
Execute fee appraiser
contract • •
Initiate project and oversee
fee appraiser •
Execute review appraiser
purchase order • •
Initiate project with review
appraiser •
Oversee review appraiser •
Review Declaration of • • • •
Taking and deposits (R/W consultant)
Execute right-of-way
consultant contract • •
Oversee right-of-way
consultant and relocation •
process

Approve payments • • •
Issue right-of-way clearance •
Disposition of excess lands • • •

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B. ROW Office Database Application


In order to track and maintain information for property acquisition, PennDOT implemented the
Right-of-Way Office application (ROW Office). This computer application is a statewide, web-
based database that serves as PennDOT’s official record of all property acquisition activities. ROW
Office tracks project information, establishes parcel and claim numbers, records parcel take area
and valuation data, controls claim payment activities through system edits, details property
management and relocation assistance events, and serves as a historical database for all
claimant contacts. Multimodal projects will be tracked in ROW Office in the same manner as
highway projects.

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.

B. Federal Transit Administration (FTA)


FTA website
http://www.fta.dot.gov/

Grant Management Requirements (FTA C 5010.1D dated 11/01/08 (rev. 1 08/27/12))


http://www.fta.dot.gov/legislation_law/12349_8640.html

Transit and Real Estate


http://www.fta.dot.gov/12304_5937.html

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C. Federal Aviation Administration (FAA)


FAA website
http://www.faa.gov/

Acquiring Land for Airports and Relocation Assistance


http://www.faa.gov/airports/environmental/relocation_assistance/

Land Acquisition and Relocation Assistance for Airport Projects


http://www.faa.gov/regulations_policies/orders_notices/index.cfm/go/document.current/docume
ntNumber/5100.37

D. Federal Highway Administration (FHWA)


FHWA website
http://www.fhwa.dot.gov/

FHWA Office of Real Estate Services


https://www.fhwa.dot.gov/real_estate/

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

E. Federal Railroad Administration (FRA)


FRA website
http://www.fra.dot.gov/

F. Maritime Administration (MARAD)


MARAD website
http://www.marad.dot.gov/

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Property Acquisition Guide for Multimodal Transportation Projects Undertaken by PennDOT

2. Multimodal Property Acquisition Process


2.1 Process
The major steps in the Property Acquisition Process are Planning, Appraisal, Acquisition, and Relocation.
They are detailed below in Figure 1.

Figure 1 - Property Acquisition Flowchart

Planning Appraisal Acquisition Relocation

Project Damage Relocation


Project Funding1 Negotiation
Estimate Notices

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

Right-of-Way Clearance Certification

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.

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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.

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Property Acquisition Guide for Multimodal Transportation Projects Undertaken by PennDOT

3. Project Planning and Funding


Project planning is the foundation for project decisions and successful project implementation. If factors
such as, but not limited to, public involvement, consideration of the environment, and a clear cut
funding strategy are not addressed early in the planning process, a multimodal transportation project
will not be completed on time and within budget. Key to project planning is the determination of which
federal agency has jurisdiction over real property acquisition procedures. Upfront project planning
results in an acquisition process that is efficient and will reduce costs and project delays.

3.1 Funding Sources


The use of state or federal funding is an important variable in determining how project planning is
accomplished. As noted in Section 3.4, the approval process and level of environmental clearance for
the acquisition of property for multimodal projects differs depending on the funding source used.

A. Federal and State


Federal funding for multimodal projects is made available from:
• Federal Transit Administration (FTA)
• Federal Aviation Administration (FAA) FTA Advisory
• Federal Highway Administration (FHWA)
• Federal Railroad Administration (FRA) FTA uses Project Management
• Maritime Administration (MARAD) Oversight Contractors (PMOC)
on some projects. The PMOC
Several state funding sources are available for the supplements project
implementation of multimodal projects through the Multimodal management oversight
provided by FTA staff to ensure
Transportation Deputate. In addition, Pennsylvania state
compliance with statutory,
agencies such as the Department of Community and Economic administrative, and regulatory
Development, the Commonwealth Financing Authority, and requirements.
Department of Conservation and Natural Resources, have
provided funding for multimodal projects.

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.

Pennsylvania Act 88 of 2012 authorizes formal public-private transportation projects in


Pennsylvania. The Act allows for PennDOT and other transportation authorities and commissions in
the Commonwealth to enter into agreements with the private sector to participate in the delivery,
maintenance, and financing of transportation-related projects. If a transportation project is being

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developed through a public-private partnership, it is essential to ensure contractual agreements are


in place to hold each partner accountable.

Additional information on the formation of public-private partnerships can be obtained through


PennDOT’s Office of Policy & Public Private Partnerships
(http://www.dot.state.pa.us/Internet/P3info.nsf/P3Home?OpenFrameset) and through FHWA’s
Office of Innovative Program Delivery (http://www.fhwa.dot.gov/ipd/p3/index.htm).

In addition to formal public-private partnerships authorized by Act 88 of 2012, informal


partnerships are sometimes undertaken. The nature and structure of these partnerships can vary
widely, but do not require the formal approval of the Public Private Transportation Partnership
Board.

3.2 Project Purpose and Need


Purpose and need are critical components of the transportation planning process and identify what
problems exist and what a project is intended to accomplish. Purpose and need help to explain the
reason for the proposed use of public funds to agency decision makers and the public, drive the
alternatives consideration process, and influence environmental analysis.

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.

3.3 Project Scope


Project scoping identifies what transportation improvements and associated improvements are included
in the project scope and addresses factors such as:

• What the project will accomplish.

• 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.

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The checklist to the right includes factors that should be


considered during scoping for the multimodal project. Each Scoping Checklist
federal agency has its own scoping requirements under the
National Environmental Policy Act (NEPA) (see Section 3.4).  Land use linkage to transportation
Therefore, the checklist is meant to summarize factors  Existing and future land use context
which could be identified depending on the nature of the  Land use/economic development
transportation project. The checklist emphasizes those opportunities
factors considered through PennDOT’s Linking Planning and  Planned public or private development
NEPA initiative.  Public-private partnerships
 Regional transportation/land use
3.4 Environmental Compliance implications
During project planning when federal agency funding is  Planned federal, state, local, and
programmed, the project team must ensure that the private projects
project addresses any environmental impacts in accordance  Community issues and opportunities
with NEPA and receive clearance through an agency action.  Transportation context
 National context
Each agency of the US DOT has specific review procedures  Air quality conformity
to meet NEPA requirements. Within NEPA, there are three  Public and agency involvement
tracks (each called a “class of action”) for a project to  Potential impacts to wild or stocked
follow, depending on project complexity (40 CFR 1500-1509 trout streams
and 23 CFR 771):  Potential impacts to High Quality/EV
Streams
• Categorical Exclusion (CE)  Potential impacts to wetlands
 Potential impacts to federally
• Environmental Assessment (EA) proposed, candidate, or listed; or state
listed threatened and endangered
species
• Environmental Impact Statement (EIS)
 Potential impacts to historic properties
or archaeological resources
PennDOT must consult with the lead federal agency (FTA,
FAA, FRA, FHWA, or MARAD) to determine the appropriate  Potential temporary or permanent
impacts to Section 4(f) resources
level of action. Obtaining NEPA clearance can potentially
 Public controversy on environmental
require significant time and expense; therefore, it is grounds
critically important to identify the type of NEPA class of  Potential temporary/ permanent
action required for multimodal property acquisition impacts to water trail
projects.  Potential temporary/permanent
impacts to hazardous/residual waste
In general, property cannot be acquired prior to a NEPA sites
finding, i.e., the project has been approved as a CE, a  Potential impact on regulated
Finding of No Significant Impact (FONSI) has been issued, or floodplain
a Record of Decision has been issued for a final EIS (23 CFR  Potential impacts to agriculture
771.113). Exceptions to this rule exist and are noted in  Potential impacts to navigable
watercourse involving U.S. Coast Guard
Section 3.6.C.
 Potential impacts to properties
protected under Section 6(f)
A. NEPA Process
 Potential impacts to hazard mitigation
The NEPA class of action that a project must follow is lands under the Stafford Act
dependent on the number and extent of  Potential Utility impacts
environmental impacts resulting from the project.  Within a PA Act 167 watershed
Figure 2 shows how a project may proceed through  Funding sources

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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.

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Figure 2 - NEPA Classes of Action

Proposed Action

Coordination and Analysis

No Significant Impacts? Yes


----- -----
Categorical Environmental
Exclusion Impact
Statement

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)

Agency Action Agency Action Agency Action

B. Federal Agency NEPA Compliance


Each federal agency with jurisdiction over a multimodal project has developed agency-specific
checklists, worksheets, and guidance to help evaluate the significance of potential environmental
impacts to determine what class of action is appropriate for a project. Below are listed online
resources for environmental compliance from each of the federal modal agencies.

Federal Aviation Administration


General Environmental Information
http://www.faa.gov/airports/environmental/

National Environmental Policy Act (NEPA) Implementing Instructions for Airport Projects
http://www.faa.gov/airports/resources/publications/orders/environmental_5050_4/

FAA Order 1050.1E - Environmental Impacts: Policies and Procedures


http://www.faa.gov/documentLibrary/media/order/energy_orders/1050-1E.pdf

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Environmental Desk Reference for Airport Actions


http://www.faa.gov/airports/environmental/environmental_desk_ref/media/desk_ref.pdf

Categorical Exclusions
http://www.faa.gov/airports/resources/publications/orders/environmental_5050_4/media/chapte
r6.pdf

Federal Transit Administration


General Environmental Information
http://www.fta.dot.gov/about/12347.html

NEPA and Early Real Estate Activities


http://www.fta.dot.gov/documents/NEPA_and_Early_Real_Estate_Activities.pdf

Categorical Exclusions
http://www.fta.dot.gov/12347_15129.html

Federal Railroad Administration (FRA)


General Environmental Information
http://www.fra.dot.gov/Page/P0183

FRA Procedures for Considering Environmental Impacts


http://www.fra.dot.gov/eLib/details/L02561

Categorical Exclusion Guidance


http://www.fra.dot.gov/Page/P0550

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

C. Compliance with Other Environmental Requirements


In addition to NEPA, there are several federal and state requirements and laws governing
environmental protection. At the federal level these include: the Threatened Species Act (Title 7 of
the U.S. Code) regulated by the United States Fish and Wildlife Service, Section 106 of the National
Historic Preservation Act, Section 4(f) of the U.S. Department of Transportation Act, and Section
404 of the Clean Water Act. At the state level, requirements include: the PA Clean Streams Law (25
Pa Code Chapter 102), the Dam, Safety, and Encroachment Act (25 Pa Code Chapter 105), the
Floodplain Management Act (25 Pa Code 106), and the History Code and state regulations
governing threatened and endangered species.

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In addition, projects with no federal funding must provide environmental documentation in


accordance with Pennsylvania Act 120 of 1970. Section 2002 of this act states in part:
“No highway, transit line, highway interchange, airport or other transportation corridor or facility
shall be built or expanded in such a way as to use any land from any recreation area, wildlife and/or
waterfowl refuge, historic site, state forest land, state game land, wilderness area, or public park
unless: (i) there is no feasible and prudent alternative to the use of such land, and (ii) such corridor
or facility is planned and constructed as to minimize harm to such recreation area, wildlife and/or
waterfowl refuge, historic site, state forest land, state game land, wilderness area, or public park.”

3.5 Property Acquisition Plan


Property acquisition is an involved process and may be accomplished in several ways. Therefore, an
acquisition plan could be a helpful part of project planning.

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.

3.6 Property Acquisition Methods


As noted in the flowchart in Section 2.1, property acquisition in most instances can only be undertaken
after appropriate environmental clearance. However, options do exist for acquiring property earlier in
the project development process (Section 3.6.C). These instances involve acquiring property prior to the
completion of environmental studies and, therefore, require coordination with the appropriate modal
agency at the US DOT.

The following sections discuss the various methods of property acquisition.

A. Amicable Property Transfer


The Uniform Act requires every reasonable effort be made to acquire property amicably, or by the
mutual agreement of the property owner and PennDOT.

1. Negotiated Purchase Price


Most amicable property acquisition happens through the negotiation process. This occurs
when the seller and PennDOT negotiate and eventually agree on a purchase price and
conditions of sale and ultimately consummate the sale of the property. See Section 6 for the
negotiation process.

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

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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.

3. Advanced Acquisition Using Established Categorical Exclusions


In some cases, categorical exclusions (CE) for specific instances have been established. The
most notable of these was instituted in February 2013 when FTA and FHWA issued a final rule
on CEs under NEPA that apply to FTA and FHWA actions. 23 CFR 771.118(c) (6) addresses CEs
for the acquisition or transfer of real property interest. According to the guidance, this CE
covers cases where the property is acquired and remains essentially unchanged from its
previous use until NEPA is completed for a future federally-assisted project that may make use
of the property.

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

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for Implementation of FTA’s Categorical Exclusions (23 CFR 771.118) is located at


http://www.fta.dot.gov/documents/Section_118_Guidance-May_2013.pdf

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

4. Real Estate Purchase Option Agreement


Acquiring property in advance of the actual need for the property can also be accomplished by
the use of a purchase option agreement (see sample in Appendix A). A real estate purchase
option agreement is a contract that allows the buyer the exclusive right to buy a property from
the property owner at a later date at a price agreeable to both parties. The buyer pays for this
option contract and the seller retains this option fee even if the buyer decides not to purchase
the property. Options are used to provide PennDOT the right to acquire land and may be used
to secure a purchase price in advance or attach other conditions to the negotiations. These
may include reference to an eventual appraisal or the establishment of a range of value for the
purchase.

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.

3.7 Right-of-Way Plan


Preparation of a right-of-way plan is required for all multimodal property acquisitions during project
planning. The plan must prepared in conformance with Publication 14M, Design Manual Part 3 (DM-3)
and contain the name of current property owners, property line descriptions, and additional information
needed to accurately portray the land to be acquired. The plan becomes the legal record of the location,
extent, and character of acquired land. The right-of-way plan is discussed in greater detail in Section 4.

3.8 Right-of-Way Payment Process


Establishing project funding and issuing claim payments requires coordination between the Multimodal
Bureau that is managing the project (Managing Bureau), Bureau of Fiscal Management, District Fiscal
Officer, and District Right-of-Way Unit. The following funding and payment procedures are to be
followed for all property acquisition for multimodal projects by PennDOT:

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.

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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.

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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.

4.2 Review of Preliminary Right-of-Way Plan


Preliminary right-of-way plans must be reviewed for completeness and accuracy. Reviewers for
multimodal projects typically include the acquisition consultant (if used), and the Multimodal Project
Manager. Reviewers should note any plan deficiencies or acquisition issues.

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.

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4.4 Authorization to Acquire


Once the final right-of-way plan is approved and signed, the project
can enter the acquisition phase. If there is federal funding in the FAA Advisory
acquisition phase, federal approval must be received prior to
proceeding with property acquisition. Property acquisition plans and
plats will have to be
If any land is being taken by condemnation, the signed right-of-way incorporated in the airport’s
Exhibit “A” Property Map for
plan constitutes authority for the filing of a declaration of taking in
reimbursement as well as be
accordance with the Eminent Domain Code, 26 Pa.C.S. §101 et. seq.
included on the Airport Layout
In this case, the plan must be filed as a public record in the county Plan/Property Plan as an
courthouse. eligible/needed land
acquisition. Proactive
coordination with FAA should
be undertaken to ensure
compliance.

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5. Appraisal, Appraisal Review, and Waiver Valuation


The Constitutions of the United States and Pennsylvania provide that private property shall not be taken
for public use without the payment of just compensation. The calculation of a dollar amount that
satisfies the requirement of just compensation is accomplished through an appraisal or, where
appropriate, a waiver valuation (See Section 5.8). The appraisal or waiver valuation is used to provide
PennDOT with an estimate of just compensation to be offered to each property owner for the taking of
their private property for public purposes.

An appraisal is a written statement independently and impartially prepared


by a qualified appraiser setting forth an opinion of defined value of an Appraisal
adequately described property at a specific date, supported by the
presentation and analysis of relevant market information. The basic
requirements for an appraisal include the following: Project Damage
Estimate
• A property to be acquired must be appraised and the appraisal must
be in writing.

• The appraisal must be reviewed by a separate and independent


review appraiser. Appraisal
Problem
• The property owner (or the owner’s designated representative) must Analysis
be given the opportunity to accompany the appraiser during the
inspection of the property. This gives the owner the opportunity to
advise the appraiser of features of the property that might impact
the valuation of the property and allow the disclosure of features
that might not be obvious to the appraiser such as wells, septic Appraisal
systems, and storage tanks.

• The recommended amount of estimated just compensation must be


the basis of the offer to the property owner.
Appraisal
Just compensation is defined under Pennsylvania law as the difference Review
between the fair market value of the property owner’s entire property
interest immediately before the acquisition and the fair market value of the
owner’s property interest remaining immediately after the acquisition and
other damages as provided in the Pennsylvania Eminent Domain Code (26
Pa.C.S. § 101 et seq., Section 702(a)).

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.

5.1 Contracting for Appraisal and Right-of-Way Services


PennDOT makes use of both staff appraisers that are PennDOT employees and fee appraisers that are
consultants under contract with PennDOT.

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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.

5.2 Appraiser Certification


The State Board of Certified Real Estate Appraisers governs all appraisers working in the
Commonwealth. All appraisers must maintain a current and valid certification and all appraisals
completed for any PennDOT project must be completed by a certified professional appraiser. PennDOT
right-of-way personnel will monitor the certification of appraisers.

5.3 Project Damage Estimate


A Project Damage Estimate consisting of an estimated acquisition cost for each claim identified on an
approved right-of-way plan must be completed for each project. Refer to Section 2.11.D, of Publication
378, Right-of-Way Manual for more information. At a minimum, the estimate must include the best
estimate of the cost of the acquisition of real property, real estate tax payments, indirect costs, moving
expense payments for businesses and residences, supplemental payments for residences, business
reestablishment payments, demolition payments, and other administrative or overhead costs. If there
are no relocation activities, it should be noted on the Project Damage Estimate.

5.4 Appraisal Problem Analysis


The Appraisal Problem Analysis (APA) is used to establish a scope of
work for the appraisal. The APA defines general parameters of the The Appraisal Problem Analysis
work to be performed before the appraiser starts the assignment, is used to establish a scope of
and may be updated as needed. The APA will also identify any work for the appraisal and
personal property that should or should not be included in the must be written by an
value conclusions, and identify the need for specialty reports appraiser familiar with eminent
needed to complete the assignment. An APA is required for all fee domain appraising.
appraiser assignments. For staff appraisals, an APA is required for
complex appraisal problems, as defined by Publication 378, Right-of-Way Manual. An APA is not
required for a waiver valuation (see Section 5.8).

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.

5.5 Appraisal Process, Forms, and Reports


The appraiser assigned to the project will field inspect each property to be acquired and conduct
associated research. Data collection will likely include sources such as public records, various real estate

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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:

• Form RW-270 Strip Appraisal - Partial Take


If the appraiser obtains an
• Form RW-270A Before-and-After Appraisal Report M&E report, it must be
delivered to PennDOT separate
from the appraisal report.
• Form RW-270B Total Take Appraisal Report

• Form RW-277 Machinery & Equipment Valuation Report

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.

5.6 Revising and Updating Appraisals


Appraisal revisions may be necessary due to changing circumstances. These may include plan changes, a
property owner selling or acquiring property during the appraisal process, a legal decision that impacts
the appraisal problem, or a change in local land use or market conditions. Updates within six months to
one year and/or minor revisions to the appraisal may be requested as part of the fee proposal if the
District so chooses. The RW-218 Real Estate Appraisal Fee Proposal allows for this provision.

5.7 Appraisal Review FTA Advisory


To ensure that offers to property owners are based upon properly
prepared and well-documented real estate appraisal reports, an For projects funded by FTA
grants, special provisions apply
independent professional staff or fee review appraiser must review
for large acquisitions. FTA
all appraisals. The reviewer will perform an examination of the
concurrence is required when
appraisal to assure that it conforms to approved appraisal practices grantee’s recommended offer
and techniques and to establish the amount of just compensation to of just compensation exceeds
be offered to the property owner. Reviewers must be certified for $500,000, or when a property
the classification of appraisal they will be reviewing. appraised at $500,000 or more
must be condemned. See FTA
As needed, the review appraiser will seek necessary corrections or Circular 5010.1D for additional
revisions to an appraisal. The reviewer will prepare a written report, information.
Form RW-273, Appraisal Review Report, that identifies the appraisal
reports reviewed and documents the findings and conclusions
arrived at during the review of the appraisal. As per 49 CFR 24.104(a), the review appraiser must identify
each appraisal report as one of the following:

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• Recommended - Recommended as the basis for the establishment of the amount believed to be
just compensation.

• Accepted - Meets all requirements, but not selected as recommended.

• 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.

5.8 Waiver Valuation


There are instances where an appraisal is not required and the property is instead valued using a Waiver
Valuation. The use of the Waiver Valuation process for multimodal projects shall be governed by Section
2.12 of Publication 378, Right-of-Way Manual, in the same manner as a standard highway project.

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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).

The following is a list of the basic acquisition requirements:

• 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.

• Give the property owner an opportunity to consider 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.

6.1 Personal Pre-Negotiation Contact


The negotiator must make all reasonable efforts to personally contact each real property owner or the
owner’s designated representative and schedule an appointment at a convenient time and place. The
purpose of this contact is to explain the negotiation process to the property owner as well as the
responsibilities of both the negotiator and the property owner. This kind of personal contact can be of
great importance as the negotiator strives to attain rapport with the property owner that can help
inspire confidence in the process and the fairness of the offer.

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.

6.2 Prompt Written Offer


Once the amount of just compensation has been determined, a prompt written offer must be made to
the property owner. The offer must include a description, including location, of the real property or real
property interests being acquired and the specific purchase price being offered. Along with the offer,
the negotiator must provide the property owner a Summary Statement of Just Compensation that
explains the basis of the offer and provides information necessary for the owner to make a reasonable

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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

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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.

6.5 Other Types of Acquisitions

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:

The District Right-of-Way Administrator possesses the authority to approve an administrative


increase up to $50,000 over the approved estimate of just compensation. The District Right-of-Way
Administrator and a designated Bureau Director within the Multimodal Transportation Deputate
together may approve an administrative increase up to $100,000 over approved damages. On
claims where the amount of the administrative increase is more than $100,000, the written
concurrence of the Deputy Secretary for Multimodal Transportation, along with the approval of the
District Right-of-Way Administrator and the designated Bureau Director within the Multimodal
Transportation Deputate is necessary. When appropriate, the District Executive may be consulted
for approval in addition to, or in lieu of, the Multimodal Bureau Director. In any event, where an
administrative settlement is used, the claim file and ROW Office must be documented
appropriately.

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.

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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.

C. Offer to Purchase Uneconomic Remnants


When federal funds are involved in a project, PennDOT is required to make a formal, written offer
to purchase land that it determined to be an uneconomic remnant. This is a minimum $100 offer
and is separate from the offer to purchase the required property. However, unlike the acquisition
of required property, the owner may decline the offer. Once declined, the matter is simply dropped
and no further negotiations or action is necessary on the part of PennDOT. The offer officially
expires when the right-of-way required has been acquired (either by deed or through the filing of a
declaration of taking).

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.

D. Offer and Payment for Tenant-Owned Improvements


An improvement located on the property to be acquired should be treated as real property
regardless of ownership. Acquisition from the tenant should follow the same procedures as those
for acquiring real property from the owner. The exception to this rule is “off-premise” outdoor
advertising devices, which should be acquired as personal property.

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.

• The payment does not result in the duplication of any compensation.

Refer to Section 3.03E, Acquisition of Land and Tenant-Owned Improvements, of Publication 378,
Right-of-Way Manual for more information.

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7. Relocation Assistance and Payments


The relocation of residential and non-residential properties is the most sensitive of all the right-of-way
activities since people are being asked to move from their homes and businesses in addition to giving up
a portion of their land. For that reason, federal and state laws and regulations have established an
additional set of benefits and payments over and above the fair market value payment to assist persons
in this situation.

The basic relocation requirements are:


Relocation
• No residential occupant can be displaced unless and until comparable
(decent, safe and sanitary) replacement housing has been provided
Conceptual
for or is built. Stage Survey
and Report
• Replacement housing will be fair housing, open and offered to all
affected persons regardless of race, color, religion, national origin,
age, gender, or disability.
Pre-Acquisition
• Replacement housing will be within the financial means of the Survey and
displaced persons and reasonably accessible to their places of Relocation Plan
employment, public services, and other conveniences.

• No person, family, business, farm operation, or non-profit


organization will be required to move as a result of a project without
having received a written General Information Notice, a Notice of Relocation
Notices
Relocation Eligibility, and at least 90 days written notice of the
proposed move date. Off-premise outdoor advertising devices are
included within the definition of a business and require the above
notices.
Relocation
• Displaced persons must be informed of their right to appeal a Payments
determination of their eligibility for, or the amount of, any relocation
payment.

• Claim files must contain documentation showing compliance with the


above requirements. Last Resort
Housing Plan
(if needed)
Relocation procedures are detailed in Chapter 4, Relocation Assistance, of
Publication 378, Right-of-Way Manual, and Bulletin 47, A General Guide to
the Relocation Assistance Program of the Pennsylvania Department of
Transportation.

7.1 Pre-Acquisition Survey and Relocation Plan


Relocation creates the most significant social and economic impacts of a project. Successful relocation
requires planning. The relocation program is structured in an orderly and logical sequence of reports,
assurances, and activities which are required on each project where displacement may occur, beginning
with the preliminary engineering report and ending with the relocation of the last person or business on
the project.

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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.

7.2 Relocation Notices


State and federal law and regulations recognize the need of displaced persons to have access to
information about the relocation process and require that certain notices be provided to them. The
following are the notices that must be delivered to displaced persons. Refer to Section 4.02H,
Relocation Notices, Publication 378, Right-of-Way Manual for more information on these notices.

General Information Notice


The purpose of the notice is to provide a general description of the PennDOT relocation program.
PennDOT’s Bulletin 47 serves as this notice. This notice is given as a handout at public meetings for the
project and eventually to individuals being displaced.

Notice of Relocation Eligibility


This notice informs the occupant that he or she will be displaced and, therefore, will be eligible for
relocation benefits, as applicable. PennDOT's RW-592 serves as this notice. This notice is given to the
property owner at the initiation of negotiations.

90-Day Notice (Advance Notice of Move Date)


The 90-day notice is a basic protection for displaced persons. As part of the General Information Notice
mentioned above, potential displaced persons must be informed that they will not have to move
without at least 90 days written notice. The 90-day Advance Notice of Move Date is then sent once the
relocation plans for a displaced person becomes more precise. At this time, the displaced person will be
informed at least 90 days in advance, of the earliest date by which he or she will be required to move.

30-Day Notice (Notice to Vacate)


When actual possession of the property is required, a 30-day Notice to Vacate will be issued
containing the required date of possession. The required date of possession cannot be less than the full
90-day period established by the Advance Notice of Move Date. Note that the 30-day period in the

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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.

7.3 Residential Relocation Payments


Residential displaced persons are eligible to receive certain relocation benefits. Depending on length of
occupancy and type of tenancy, a displaced person may be eligible to receive a Down Payment
Supplement, Rent Supplement, or a Replacement Housing Supplement. Eligibility and limits for each
benefit type are summarized below. Refer to Section 4.03, Relocation of Residential Owner and Tenant-
Occupants, Publication 378, Right-of-Way Manual, for more information and for current eligibility
requirements and limits.
Replacement Housing Supplement
This payment is to assist a displaced person to purchase a replacement dwelling. This is a 3-part
payment consisting of the supplement, closing costs, and increased mortgage interest costs.

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.

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7.4 Replacement Housing of Last Resort


When it is apparent that a replacement-housing supplement in excess of $31,000 or a rent supplement
in excess of $7,200 will be required, or when comparable replacement housing is simply not available,
Housing of Last Resort must be provided. Housing of Last Resort procedures must also be used to
provide a rent supplement to any less than 90-day occupant, regardless of the amount. In Last Resort
Housing situations, PennDOT is required to provide replacement housing that places the displaced
person in the same ownership or tenancy status from which he or she is being displaced. The exception
is a less than 90-day occupant, who is entitled to receive a rent supplement only.

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.

7.5 Business Relocation Payments


Any business, farm, or non-profit organization is eligible for
relocation payments if it meets specific eligibility criteria. Relocation FAA Advisory
payments for businesses include the following items. Refer to
Section 4.05, Businesses, Farms and Nonprofit Organizations, The Business Dislocation
Publication 378, Right-of-Way Manual for more information on: Damage Payment is not a
payment required under 49
• Moving Cost Payment CFR 24. Per the AIP handbook
(FAA Order 5100.38),
• Mortgage Interest Costs relocation payments that
exceed eligible relocation
• Personal Property Loss Payment payments under 49 CFR 24 may
not be eligible for AIP
• Business Reestablishment Payment reimbursement.

• Searching Cost Payment

• Business Dislocation Damages Payment

• Appraisal, Attorney and Engineering Fees

7.6 Relocation Advisory Services


Another key element of the relocation program is relocation advisory services. These services
provide displaced persons and businesses with information, counseling, advice, and encouragement
and often require intense personal contact between a relocation advisor and the affected persons. Basic
services include (refer to Section 4.06, Relocation Assistance, Publication 378, Right-of-Way Manual for
more information):

• Explanation that no person can be required to move from a dwelling unless replacement
housing is available.

• Explanation of relocation services and benefits.

• Explanation of the eligibility requirements for each type of relevant relocation payment.

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• Determination of the needs and preferences of the displaced persons.

• Provision of specific services such as providing current listings of available replacement


properties, transportation for displaced persons to inspect potential replacement housing if they
are unable to do so on their own, assistance in obtaining and completing applications and claim
forms for relocation payments.

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8. Right-of-Way Clearance Certificate


When completing the final construction plans during final design, PennDOT must verify that all work
shown on the construction plans can be accomplished within the existing right-of-way or that all
required right-of-way has been properly acquired. This verification step concludes with a Right-of-Way
Clearance Certificate, which shows that all right-of-way and property needed for a project has been
acquired and any residents of the property have been relocated as required by federal and state laws.
The District Right-of-Way Administrator (or delegate) will evaluate all relevant acquisition and relocation
information and complete the Right-of-Way Clearance Template. If acceptable, this information is sent
along with a recommendation for certification to PennDOT Central Office. The Central Office Right-of-
Way Administration Unit will issue the Right-of-Way Clearance Certificate. The certificate must be issued
prior to authorization to advertise the project for bidding.

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Appendix A: Sample Real Estate Purchase Option Agreement


Below is a sample Real Estate Purchase Option Agreement. The agreement includes multiple Exhibits
which are not included here for brevity. The complete package, including the agreement and all
associated Exhibits will be prepared with assistance from the Office of Chief Counsel.

REAL ESTATE PURCHASE OPTION AGREEMENT

FED.PROJ.NO.: COUNTY:
CITY-BORO-TWP: S.R./SEC.:
PROPERTY OWNER:

THIS AGREEMENT, made , , by the


COMMONWEALTH OF PENNSYLVANIA, DEPARTMENT OF TRANSPORTATION, Harrisburg,
Pennsylvania, its successors and/or assigns, hereinafter, whether singular or plural, called the
COMMONWEALTH, and [insert name of property owner], his/her heirs, executors, administrators
successors and/or assigns, whether singular or plural, hereinafter called the PROPERTY OWNER or
GRANTOR.

W I T N E S S E T H:

WHEREAS, the COMMONWEALTH has the authority to acquire, by gift, purchase,


condemnation or otherwise, land in fee simple or such lesser estate or interest as it shall determine, in the
name of the Commonwealth, for all transportation purposes pursuant to Section 513(e)(1) of the
Administrative Code of 1929, as amended, 71 P.S. §513(e)(1); and

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

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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.

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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.

9. The GRANTOR agrees to comply with the Commonwealth Nondiscrimination Provisions


attached as Exhibit “C” and the Federal Nondiscrimination Provisions attached as Exhibit “D” 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.

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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.

13. The Pennsylvania Right-to-Know Law, 65 P.S. §§ 67.101—3104, applies to this


Agreement. Therefore, this Agreement is subject to, and the GRANTOR shall comply with, the clause
entitled Contract Provisions – Right to Know Law, attached as Exhibit “H” and made a part of this
Agreement.

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.”

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IN WITNESS WHEREOF, the parties have executed this Agreement the date first above written.

ATTEST [insert name of property owner]

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

APPROVED AS TO LEGALITY PRELIMINARILY APPROVED


AND FORM

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

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