[Code of Federal Regulations]
[Title 23, Volume 1]
[Revised as of April 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 23CFR710.203]

[Page 336-337]
 
                           TITLE 23--HIGHWAYS
 
 CHAPTER I--FEDERAL HIGHWAY ADMINISTRATION, DEPARTMENT OF TRANSPORTATION
 
PART 710--RIGHT-OF-WAY AND REAL ESTATE--Table of Contents
 
                    Subpart B--Program Administration
 
Sec. 710.203  Funding and reimbursement.

    (a) General conditions. The following conditions are a prerequisite 
to Federal participation in the costs of acquiring real property except 
as provided in Sec. 710.501 for early acquisition:
    (1) The project for which the real property is acquired is included 
in an approved Statewide Transportation Improvement Program (STIP);
    (2) The State has executed a project agreement;
    (3) Preliminary acquisition activities, including a title search and 
preliminary property map preparation necessary for the completion of the 
environmental process, can be advanced under preliminary engineering 
prior to National Environmental Policy Act (NEPA) (42 U.S.C. 4321 et 
seq.) clearance, while other work involving contact with affected 
property owners must normally be deferred until after NEPA approval, 
except as provided in 23 CFR 710.503 for protective buying and hardship 
acquisition; and in 23 CFR 710.501, early acquisition. Appraisal 
completion may be authorized as preliminary right-of-way activity prior 
to completion of the environmental document; and
    (4) Costs have been incurred in conformance with State and Federal 
law requirements.
    (b) Direct eligible costs. Federal participation in real property 
costs is limited to the costs of property incorporated into the final 
project and the associated direct costs of acquisition, unless provided 
otherwise. Participation is provided for:
    (1) Real property acquisition. Usual costs and disbursements 
associated with real property acquisition required under the laws of the 
State, including the following:
    (i) The cost of contracting for private acquisition services or the 
cost associated with the use of local public agencies.
    (ii) The cost of acquisition activities, such as, appraisal, 
appraisal review, cost estimates, relocation planning, right-of-way plan 
preparation, title work, and similar necessary right-of-way related 
work.
    (iii) The cost to acquire real property, including incidental 
expenses.
    (iv) The cost of administrative settlements in accordance with 49 
CFR 24.102(i), legal settlements, court awards, and costs incidental to 
the condemnation process.
    (v) The cost of minimum payments and appraisal waiver amounts 
included in the State approved manual.
    (2) Relocation assistance and payments. Payments made incidental to 
and associated with the displacement from acquired property under 49 CFR 
part 24.
    (3) Damages. The cost of severance and/or consequential damages to 
remaining real property resulting from a partial acquisition, actual or 
constructive, of real property for a project based on elements 
compensable under applicable State law.
    (4) Property management. The net cost of managing real property 
prior to and during construction to provide for maintenance, protection, 
and the clearance and disposal of improvements until final project 
acceptance.
    (5) Payroll-related expenses and technical guidance. Salary and 
related expenses of employees of an acquiring

[[Page 337]]

agency are eligible costs in accordance with OMB Circular A-87 
(available at http://www.whitehouse.gov/omb/circulars). This includes 
State costs incurred for managing or providing technical guidance, 
consultation or oversight on projects where right-of-way services are 
performed by a political subdivision or others.
    (6) Property not incorporated into a project funded under title 23 
of the United States Code. The cost of property not incorporated into a 
project may be eligible for reimbursement in the following 
circumstances:
    (i) General. Costs for construction material sites, property 
acquisitions to a logical boundary, or for eligible transportation 
enhancement, sites for disposal of hazardous materials, environmental 
mitigation, environmental banking activities, or last resort housing.
    (ii) Easements not incorporated into the right-of-way. The cost of 
acquiring easements outside the right-of-way for permanent or temporary 
use.
    (7) Uneconomic remnants. The cost of uneconomic remnants purchased 
in connection with the acquisition of a partial taking for the project 
as required by the Uniform Act.
    (8) Access rights. Payment for full or partial control of access on 
an existing highway (i.e., one not on a new location), based on elements 
compensable under applicable State law. Participation does not depend on 
another real property interest being acquired or on further construction 
of the highway facility.
    (9) Utility and railroad property. (i) The cost to replace operating 
real property owned by a displaced utility or railroad and conveyed to 
an STD for a highway project, as provided in 23 CFR part 140, subpart I, 
Reimbursement for Railroad Work, and 23 CFR part 645, Subpart A, Utility 
Relocations, Adjustments and Reimbursement, and 23 CFR part 646, Subpart 
B, Railroad-Highway Projects.
    (ii) Participation in the cost of acquiring non-operating utility or 
railroad real property shall be in the same manner as that used in the 
acquisition of other privately owned property.
    (c) Withholding payment. The FHWA may withhold payment under the 
conditions in 23 CFR 1.36 where the State fails to comply with Federal 
law or regulation, State law, or under circumstances of waste, fraud, 
and abuse.
    (d) Indirect costs. Indirect costs may be claimed under the 
provisions of OMB Circular A-87. Indirect costs may be included on 
Federal-aid billings after the indirect cost rate has been approved by 
FHWA.