Acquiring Real Estate

Q. We are in the process of planning a subway improvement project that will be financed by a grant from the FTA. This project involves acquiring private real estate. Are we required to have completed the acquisition of the RE before we can procure and or award a contract for this subway improvement if we are receiving FTA funds. A. There is no statutory or regulatory requirement to complete the acquisition of real estate prior to contracting for the construction. However, it would be prudent to be sure there will be no compensable delays to the construction contractor, arising out of real estate problems, for which you will be responsible.

Q. Please direct me to the circular or CFR detailing the process for a subrecipient to procure an existing structure for use as a transit facility. A. The following is excerpted from section 1.3.3.4 - Real Estate Contracts of the FTA Best Practices Procurement Manual (BPPM) that deals with the acquisition of Real Property: Requirements related to the acquisition, use and disposal of real property may be found in the following regulations: FTA Circular 5010.1C, Grant Management Guidelines, Chapter II-2 Real Property. This Circular defines the requirements of the Federal Transit Laws that are codified at 49 U.S.C. Chapter 53. 49 CFR §18.31 Real Property, and 49 CFR Part 24, Subpart B Real Property Acquisition. FTA Master Agreement (MA(12) Section 19. The acquisition of real property, either by purchase or lease, is not subject to the requirements of FTA Circular 4220.1E. Real property is defined in 49 CFR Section 18.3 as "land, including land improvements, structures and appurtenances thereto, excluding movable machinery and equipment." The acquisition of easements and rights of way are considered real estate acquisitions and the requirements discussed herein pertain to these types of acquisitions. Real property acquisition, use and disposal is covered by FTA Circular 5010.1C, Chapter II-2; 49 CFR Part 18.31; 49 CFR Part 24 Subpart B; and by the FTA Master Agreement, Section 19.1. It is important that the grantee be familiar with the requirements established by FTA in Circular 5010.1C, Chapter II-2. This circular establishes procedures to be followed by grantees in the following areas: The conduct of Hazardous Waste Site Assessments before acquiring real property. The conduct of an independent appraisal by a certified appraiser. The requirement for a review appraisal of the initial appraisal. FTA review and concurrence requirements related to the grantee's offer to buy the property. Incidental use of acquired real property as a means to supplement transit revenues. Disposition of excess real property by sale, transfer to other programs, etc. The requirement to prepare an excess property utilization plan for all real property no longer used for its original purpose. MA(12), dated October 1, 2005.

Q. Can you provide a reference regarding the use of land as an in-kind local match for federal funds? Specifically, where is it stated that a grantee must use federal procedures to purchase land with local funds if it intends to use the land value as an in-kind match for the future? A. Answer (1): Authority is in the Common Grant Rule at 49 CFR 18.24 "Matching or Cost Sharing." (2) FTA's administration of this authority is in FTA C5010.1C, "Grant Management Guidelines," Chapter II, "Management of Real Property, Equipment & Supplies." Answer (2): (a) Authority is in the statute, 42 USC 61, Section 4627 http://www4.law.cornell.edu/uscode/42/4627.html (b) The implementing regulations (government-wide regulation) are found in 49 CFR Part 24 http://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/05-6.htm (c) The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, may be viewed at: http://www.fhwa.dot.gov/realestate/act.htm