Phase: Applied learning · Worked scenarios · Calculations · Audit findings · Document drills
Apply what you've read — scenario by scenario, calculation by calculation
URA, appraisal, condemnation, certification. Each exercise has a hidden solution — work through your answer before revealing.
I
Scenario 01
URA-compliant offer to acquire
Setup
An LPA federal-aid project requires partial acquisition from a homeowner. The appraiser values the take at $48,000. The LPA wants to make an offer.
Question
What are the URA requirements for the offer?
Solution
URA requirements (49 CFR Part 24) for the offer:
1. Written offer — formal offer in writing, not verbal.
2. Summary statement — written summary of basis for the offer (appraisal-based, fair market value).
3. Just compensation amount — offer must be no less than the approved appraised value ($48,000 here).
4. Itemization of damages to remainder, severance damages, fixtures, etc.
5. Property owner's rights notice — Notice of Owner's Rights and Available Relocation Assistance.
6. Negotiation opportunity — owner has reasonable time (typically 30 days) to consider the offer.
7. No pressure — LPA cannot threaten condemnation, time pressure, or other coercion. The owner may negotiate, reject, or accept.
8. Pre-NEPA prohibition — no negotiations until NEPA is approved (LAPM Ch 6 §6.2).
Documentation requirements:
• Approved appraisal in project file.
• Independent appraisal review (LPA review of appraiser's methodology and value).
• Written offer with all required components.
• Owner's response (acceptance, counter, rejection).
Additional notes:
• Owner has right to obtain independent appraisal at LPA expense (up to $5,000 reimbursable per URA).
• Relocation assistance applies if the owner is displaced (residential displacement = relocation payments, moving expenses, replacement housing differential).
• If owner rejects, the LPA may pursue condemnation but only after good-faith negotiation has occurred.
For partial acquisition (this case), severance damages to the remaining property may need to be addressed separately.
Authority: LAPM Ch 13; 49 CFR Part 24 (URA)
III
Audit Finding 01
Read the fact pattern — what's the finding?
Facts
A federal-aid project R/W certification (R/W Cert 1) was issued by the LPA prior to construction advertisement. Subsequent audit reveals that R/W acquisition negotiations for one parcel had not yet concluded — the owner was still considering an offer.
Analysis
What is the finding? What is the exposure?
Finding · Citation · Corrective action
Finding: Premature R/W Certification 1. LAPM Ch 13 §13.6: R/W Cert 1 requires that all R/W parcels are either (a) acquired by LPA, (b) under condemnation order of possession, or (c) verified not needed for the project. An "owner considering an offer" parcel does not satisfy these conditions.
R/W Cert 1 must be in place before construction advertisement. False certification is a serious finding.
Exposure:
1. Construction phase E-76 may be voided retroactively if R/W Cert 1 is invalidated. This means construction reimbursement could be at risk.
2. Project schedule disruption — owner may negotiate or reject indefinitely; condemnation could be required, delaying construction.
3. Pre-Award audit finding affecting future federal-aid procurements.
4. Tort exposure — improper R/W certification with construction proceeding is a basis for property owner injunction.
Corrective action:
1. Stop construction advertisement or, if already advertised, pause award.
2. Complete negotiations or initiate condemnation per state procedure.
3. Once R/W is actually certified (Cert 1 conditions satisfied), proceed with construction.
4. Document the timing issue in the project file for audit response.
LPAs sometimes feel pressure to advertise on a fixed schedule. Don't certify R/W status that isn't real. R/W Cert 2 (R/W and utilities cleared for construction) is the next gate; R/W Cert 3 is the final cert. Each has specific prerequisites.
Authority: LAPM Ch 13 §13.6; 49 CFR 710
Applied learning · Companion chapter
These exercises apply the procedural framework presented in LAPM Chapter 13: Right of Way. For the full chapter reference, glossary, and recall quiz, see the deep chapter file.