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Steve Mollica, Northeast Regional Vice President for W.D. Schock Company, Inc. Publishes Article in Airport Magazine.
"Understanding Revised URA Rule"
There are scores of federal regulations that impact the function of airports. Keeping track of changes to these regulations can be a challenging task for even the most diligent airport operators. Very recent revisions to one set of these federal regulations, codified at 49 Code of Federal Regulations Part 24, are worth some attention, as they affect any airport that is undertaking, or may undertake in the future, projects using federal funding that result in the acquisition of real property.
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The regulation 49 CFR 24 implements the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, commonly referred to as the URA. The URA was established to create a uniform approach for public agencies that acquire real property, through either negotiation or eminent domain, as part of a federally funded or financed program or project. The URA also established a standardized process for providing advisory services and payments to businesses and residents displaced as a direct result of property acquisition by a public agency.
There have been a few significant changes to 49 CFR 24 since 1987. The most recent changes to these regulations became effective on February 3. According to the Federal Highway Administration (designated by Congress as the "lead agency" on matters pertaining to the URA), it received 775 official comments on these revised regulations. Coordinating the review of these comments with 18 federal agencies, including FAA, and writing a coherent revised regulation was no small undertaking. However, the result is a revised regulation that attempts to resolve what had been consistently problematic issues in the acquisition of property, and the relocation of its occupants, for federally funded projects.
Airports frequently undertake projects that necessitate the acquisition of property and the subsequent displacement of residents and businesses. They can include, but not be limited to, clearance of runway protection zones, construction of new runways, and construction of parking and other airport related support facilities. Because these projects often involve federal funding, it is not unusual for airports to be required to comply with the requirements of 49 CFR 24 when faced with acquiring property for these projects.
The most recent changes to 49 CFR 24 are too numerous to describe in length. Highlights of the significant changes include:
- Relocation Planning and Advisory Services. The revised regulations have placed a greater emphasis on planning that should be done before commencing a project that will result in the displacement of businesses. This includes a new requirement that agencies interview business owners in advance of acquiring property to properly assess the needs of businesses before being displaced and make reasonable efforts to classify property as real estate or personal property prior to any property acquisition.
- Waiver of Relocation Payments. The new regulations prohibit displacing agencies to waive relocation payments that may be due to displaced businesses or residents. This change means that public agencies will need to follow established methods for determining relocation payments that may be due to displaced businesses or residents rather than negotiating settlements with such displaced persons.
- Appraisal Standards. There are numerous refinements to the approach and procedures to be taken when appraising real estate for the purposes of acquiring property for federally funded projects.
- Enhanced benefits to displaced businesses. The revised regualtions have established a new category of benefits for displaced businesses and have also marginally raised the cap on other benefits. In addition, clarifications have been made on reimbursing relocation expenses incurred by displaced businesses for reinstalling personal property as well as enhanced benefits to businesses that close rather than relocate.
Airport operators undertaking projects that require property acquisition and relocation of residents and businesses should know that FAA has staff proficient in 49 CFR 24. In addition, FAA publishes supplemental guidance manuals that provide helpful assistance. Close coordination with FAA is generally beneficial to the airport operators, property owners and displaced persons.
Property acquistion and relocation can be a daunting exercise for event the most experienced airport operators. A poorly managed effort to acquire property from private owners can be a public relations nightmare at best and result in the loss of federal funding or costly project delays at worst. For these reasons, many airports tap consultants to manage the acquisition and relocation process for them. No matter how such projects are managed, understanding these revised regulations is a critical part of the process.
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(Steven J. Mollica is Regional Vice President for WD Schock Company, Inc. (WDSCO) and runs the Boston, Massachusetts office. For more on Mr. Mollica and his expertise in this and other areas, see the Board Member section of the web-site.)
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