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DECLARATION OF POLICY

It is hereby declared to be the policy of the Congress that owners, tenants, and other persons affected by the acquisition of real property in Federal and federally assisted programs shall be afforded fair and equitable treatment on a basis as nearly uniform as practicable. It is the objective of Congress to assure that owners and tenants shall be fairly compensated for their property and for other losses and necessary expenses, and that no person who is caused to move from his home, farm, or place of business, or to lose his employment or incur other economic injury shall have to suffer hardships by reason of such programs.

TITLE I. REAL PROPERTY ACQUISITION

PART A. FEDERAL PROGRAMS

UNIFORM POLICY ON LAND ACQUISITION PRACTICES Sec. 101. (a) In order to encourage the acquisition of real property by amicable agreements with owners, to relieve congestion in the courts, to assure consistent treatment for owners in the many Federal programs, and to promote public confidence in Federal land acquisition practices, heads of Federal agencies shall, to the greatest extent practicable, be guided

by the following policies: (1) The head of a Federal agency should make every reasonable effort to acquire real property by negotiated purchase.

(2) Real property should be appraised before the initiation of negotiations, and the owner or his designated representative should be given an opportunity to accompany the appraiser during his inspection of the property.

(3) Before the initiation of negotiations for property, the head of the Federal agency concerned should establish a price which he believes to be a fair and reasonable consideration therefor and should make a prompt offer to acquire the property for the full amount so established. In no event should such price be less than the appraised fair value of such property, as approved by such agency head.

(4) If only a part or an interest in a property is to be acquired, the head of the Federal agency concerned should, if he determines that the remainder property will be benefited or damaged, provide the owner with a statement of his estimate of

(A) the fair value of the entire property immediately before the acquisition;

(B) the fair value of the property remaining immediately after the acquisition;

(C) the fair value of the part or interest actually taken;

(D) the damages, if any, resulting to the remaining property, and an explanation thereof; and

(E) the benefits, if any, accruing to the remaining property, and an explanation thereof. (5) No owner should be required to surrender possession of real property before the head of the Federal agency concerned pays the agreed purchase price, or deposits with the court for the benefit of the owner an amount not less than the appraised fair value of such property as approved by such agency head, or the amount of the award of compensation in the condemnation proceeding for such property.

(6) The construction or development of public improvements should be so scheduled that no person lawfully occupying real prop: erty will be required to move from a dwelling, or to move his business or farm operation without at least one hundred and eighty days' written notice from the head of the Federal agency concerned, of the date by which such move is required.

(7) If the head of the Federal agency concerned does not require a building, structure or other improvement acquired as a part of the real property, he should offer to permit its owner to remove it. As a condition of removal, an appropriate agreement should be required, whereby the fair value of such building, structure, or improvement for removal from the real property, as determined by such agency head, will be deducted from the compensation otherwise to be paid for the real property, however determined, or will be paid to the agency head by such owner.

(8) If the head of a Federal agency permits an owner or tenant to occupy the real property acquired on a rental basis for a short term or for a period subject to termination by the Government on short notice, the amount of rent required should not exceed the fair rental value of the property to a short-term occupier.

(9) In no event should the head of a Federal agency either advance the time of condemnation, or defer condemnation and the deposit of funds in court for the use of the owner, in order to compel an agreement on the price to be paid for the property. If an agency head cannot reach an agreement with the owner, after negotiations have continued for a reasonable time, he should promptly institute condemnation proceedings and, at the same time or as soon thereafter as practicable, file a declaration of taking and deposit funds with the court in accordance with the Act of February 27, 1931 (46 Stat. 1421).

(10) If an interest in real property is to be acquired by exercise of the power of eminent domain, the head of the Federal agency concerned should institute formal condemnation proceedings. No Federal agency head should intentionally make it necessary for an owner to institute legal proceedings to prove the fact of the taking of his property.

(11) If the acquisition of only part of a property would leave its owner with an uneconomic remnant, the head of the Federal agency concerned should acquire the entire property.

(12) In determining the boundaries of a proposed public improvement, the head of the Federal agency concerned should taken into account human considerations, including the economic and social effects of such determination on the owners and tenants of real property in the area, in addition to engineering and other factors.

(b) The provisions of this section, being general policies for the guidance of Federal agencies, shall create no rights or liabilities not otherwise existing or available, nor affect the validity of any property acquisitions by purchase or condemnation.

COMPENSATION FOR PROPERTY ACQUIRED

Sec. 102. (a) If the head of any Federal agency acquires real property for public use in any, State or the District of Columbia, by purchase or condemnation, the fair value of such property shall be paid as compensation therefor. (b) As used in this title(1) the term "fair value” means

(A) the highest cash price which a property could reasonably be expected to bring if exposed for sale in the open market for a reasonable time, taking into consideration all lawful uses to which such property is adapted and could reasonably be put: Provided, That any change in such price prior to the date of valuation caused by the public improvement for which the property is acquired, and any decrease in such price caused by the likelihood that the property would be acquired for the proposed public improvement, other than that caused by physical deterioration within the reasonable control of the owner, shall be disregarded in determining such price; or

(B) if only a part or an interest in a property is acquired, the difference between the fair value of the entire property immediately before the acquisition, determined as in paragraph (A), and the highest cash price which the remaining property could reasonably be expected to bring immediately after the acquisition allowing a reasonable period of exposure for sale in the open market, taking into consideration all lawful uses to which such property is adapted and could reasonably be put, and all benefits and damages affecting such price which result to the remaining property because of its severance from, and the use to be made of the property or property interests acquired, and because of the use of other property or property interests acquired for the same public improvement. (2) The term "date of valuation" means the date of possession, the date of a purchase agreement, the date of filing a declaration of taking, the effective date of a court order of possession, or the

date of trial, whichever is the earliest. (c) No provision of this section shall be construed as affecting any property rights of the United States or any rights of the United States under its navigation servitude.

BUILDINGS, STRUCTURES, AND IMPROVEMENTS

SEC. 103. (a) Notwithstanding any other provision of law, if the head of a Federal agency acquires land or any interest in land for public use in a State or the District of Columbia, he shall acquire a like interest, or greater interest, in all buildings, structures, or other improvements comprising part of the real property which are required to be removed from the land or which in the opinion of such agency head will be adversely affected by such public use.

(b) As used in this section, the term “real property” means land, or any interest in land, and (1) any building, structure, or other improvement imbedded or affixed to land, and any article so affixed or attached to such building, structure, or improvement as to be an essential and integral part thereof; (2) any article affixed or attached to such real property in such manner that it cannot be removed without material injury to itself or the real property; and (3) any article so designed, constructed, or specially adapted to the purpose for which such real property is used that (A) it is an essential accessory or part of such real property, (B) it is not capable of use elsewhere, and (C) it would lose substantially all its value if removed from the real property.

(c) For the purpose of determining the extent of the acquisition of real property and the valuation thereof, no building, structure, or other improvement shall be deemed to be other than a part of the real property solely because of the right or obligation of a tenant, as against the owner of any other interest in the real property, to remove such building, structure, or improvement at the expiration of his term, and the fair value which such building, structure, or improvement contributes to the fair value of the real property acquired, or the fair value of such building, structure, or improvement for removal from the real property, whichever is the greater, shall be paid to the tenant therefor.

AUTHORITY TO ACQUIRE EVIDENCES OF DEBT Sec. 104. (a) If the head of a Federal agency acquires real property for public use in a State or the District of Columbia, he may acquire any note or other evidence of debt secured by such property, by purchase or condemnation, for its fair value, if in his opinion such acquisition is necessary in order to prevent injustice and to provide equal treatment for the owner and other persons having interests in the real property or the compensation therefor.

(6) Notwithstanding any other provision of law, the United States may enforce collection of any note or other evidence of debt acquired under subsection (a) of this section, in the same manner as any other holder in due course or owner thereof: Provided, That the amount of the indebtedness to the United States shall be deemed not to exceed the fair value paid by the United States for such note or other evidence of debt.

EXPENSES INCIDENTAL TO TRANSFER OF TITLE TO UNITED STATES

SEC. 105. The head of a Federal agency, not later than the date of payment of the purchase price or the date of deposit of funds to satisfy the award of compensation in a condemnation proceeding to acquire real property, whichever is the earlier, shall reimburse the owner, to the extent the head of such agency deems fair and reasonable, for expenses necessarily incurred for

(1) recording fees, transfer taxes, and similar expenses in conveying such real property to the United States;

(2) penalty costs for prepayment of mortgage incident to such real property; and

(3) the pro rata portion of real property taxes allocable to a period subsequent to the date of vesting title or the effective date of a court order of possession, whichever is the earlier.

LITIGATION EXPENSES

SEC. 106. (a) The court having jurisdiction of a proceeding insti. tuted by a Federal agency to acquire property by condemnation shall award the owner such sum as will in the opinion of the court reimburse such owner for his fair and reasonable costs and expenses, including reasonable attorney, appraisal and engineering fees, actually incurred because of the condemnation proceedings, if

(1) the final judgment is for the owner on the question of the right to condemn, or

(2) the proceeding is abandoned with respect to any such property. (b) Ăny award made pursuant to subsection (a) of this section shall be paid by the head of the Federal agency for whose benefit the condemnation proceeding was instituted out of appropriations available to such agency.

(c) The court rendering a judgment for the plaintiff in an action brought under title 28, United States Code, section 1346 (a) (2) or title 28, United States Code, section 1491, awarding compensation for the taking of property by a Federal agency, or the Attorney General effecting a settlement of any such action, may determine and award or allow to such plaintiff, as a part of such judgment or settlement, such sum as will in the opinion of the court or the Attorney General reimburse such plaintiff for his fair and reasonable costs and expenses, including reasonable attorney, appraisal, and engineering fees, actually incurred because of such action.

RELOCATION PAYMENTS

Sec. 107. (a) If the head of any Federal agency acquires real property for public use in a State, or the District of Columbia, he shall make fair and reasonable relocation payments to displaced persons in accordance with the regulations established by the President under section 110 of this title.

(b) If any displaced person who moves or discontinues his business elects to accept the payment authorized by this subsection in lieu of the payment authorized for such business by subsection (a) of this section, the head of such Federal agency shall make a fixed relocation payment to such person in an amount equal to the average annual net earnings of the business, or $5,000, whichever is the lesser. No payment shall be made under this subsection unless the head of such agency is satisfied that the business (1) cannot be relocated without a substantial loss of its existing patronage, and (2) is not part of a commercial enterprise having at least one other establishment, not being acquired by the United States, which is engaged in the same or similar business. For purposes of this subsection the term "average annual net earnings” means one-half of any net earnings of the business, before Federal, State, and local income taxes, during the two taxable years immediately preceding the taxable year in which such business moves from the real property acquired by the United States, and includes any compensation paid by the business to the owner, his spouse, or his dependent children during such two-year period. Such earnings and compensation shall be established by řed

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