Chapter 1: Introduction
Anchor: #BGBIGFDDSection 1: Preface
Anchor: #i1000340Purpose
The purpose of this manual is to provide a flexible guide to the understanding and effect of the existing State and Federal laws and policies, as they apply to this field, for those appraisers or reviewers working for the Texas Department of Transportation (TxDOT) or local public agencies (LPAs) involved with TxDOT on transportation projects.
One does not usually encounter in other types of appraisals the appraisal policy subjects discussed here. They are unique to right of way appraising, particularly for partial acquisitions.
Anchor: #i1000357Manual Organization
Chapter 2, Operating Procedures, covers the number of appraisals, appraiser qualifications, & evaluations, use of fee and staff appraisers, technical and expert witness services, assigning appraisals, independent appraisals, confidentiality of appraisals, working with property owners, reappraisals, property adjustment work & economic adjustments, and other matters pertaining to the appraisal assignment.
Chapter 3, Valuation – Legal Aspects and Policy, considers those items peculiar to right of way appraising and reviewing. Items discussed are the purposes of appraisals; the definition of market value; Legal instructions on Personalty and Realty, Noncompensable Items, Damages and Enhancements, Control of Access Rights; and, procedures on appraisals of specific types and situations such as Advertising Sign and Leasehold interests, Bisected Improvements, Fencing, Mobile Homes as Realty, Partial Acquisitions, Private Utility Lines, Project Influence, etc. The discussions of a legal nature do not attempt to give the full basis for the law. They set forth the accepted opinions concerning the handling of items in the appraisal process. The appraiser may or may not agree with these conclusions. However, these conclusions conform to the laws of Texas and the appraiser must follow them for an appraisal to be legally correct. In its role as a sovereign governmental agency, TxDOT determines policy on right of way appraisal procedures with these conclusions in mind.
Chapter 4, Appraisal Forms, discusses requirements and instructions in completing the Real Estate Appraisal Report (Forms ROW-A-6 and ROW-A-5); Real Estate Value Finding Report (Form A-7); and, the Memorandum of Value Determination (Form A-8). Also discussed are miscellaneous forms such as Forms A-9 (Property Classification Agreement); A-10D (Value Determination); A-11 (Declaration of Personal Property; A-12 (Advertising Sign Computations); A-13 (Declaration as to Method of Handling of Mobile Home); and, Form A-PVD (Parcel Value Determination for LPA’s).
Chapter 5, Appraisal Review, discusses the review of appraisal reports plus special appraisal problems that do not appear in all reports. The sections within this chapter discuss reviewing personnel; reviewing for completeness, consistency, and variances in land and component values; reviewing the appraisal of the “Remainder After” and “uneconomic” remainders; and reviewing the appraisal of lessee interests and updated values.
Chapter 6, Establishing Right of Way Values, describes the completion of Form ROW-A-10 (Tabulation of Values) to obtain approval of a recommended value, a revised value, a cancellation of a value, and/or an administrative settlement. Also discussed are “overlooked items of value” and the discussion of an “X-parcel.”
Chapter 7, Eminent Domain – State Acquisition, deals with the recommendations of appraisers, technical experts and expert witnesses for eminent domain proceedings and/or jury trials; obtaining updated or new appraisal reports; Special Commissioners Award and Mediation Settlements analysis procedures; participation guidelines for the Pre-Mediation Conference and the actual Mediation hearing; and, a discussion on using comparable sales subsequent to the “Date of Taking” in appraisal reports.
Chapter 8, LPA Acquisition, provides information on the State's program to acquire right of way in cooperation with LPAs (Local Public Agencies), with or without Federal-aid, though most of the information in the Manual applies to both the Federal aid and LPA programs. The exceptions that apply to the LPA program are noted in this special chapter. Appraisal, appraisal review, and Eminent Domain guidelines are also included in this chapter.
Chapter 9, Special Site Appraisal Situations, contains information and procedures regarding appraisals and valuations of:
- engineering and maintenance sites,
- dredge disposal sites,
- surplus property and surplus right of way,
- leasing of State-owned property,
- Aviation Division site acquisitions, and
- “fee in lieu of” mitigation assignments/procedures.
There are two appendices:
- Appendix A: a review and outline of Pre-appraisal Contact Procedures
- Appendix B: the Appraisal Review Guide
Acronyms Used in This Manual
The “Commission” refers to the Texas Transportation Commission.
“District Engineer” refers to the chief administrative officer in charge of one of the Districts of the Department and includes the District Engineer’s designee and the Texas Turnpike Office Director or designee, as appropriate to the situation.
“TxDOT” refers to the Texas Department of Transportation.
“ROW Division” refers to the Right of Way Division of TxDOT.
“FHWA” refers to The Federal Highway Administration.
“OAG” refers to the Office of the Attorney General.
“LPA” refers to a Local Public Agency, i.e., a municipality, county, etc.
“ROWIS” refers to the Right of Way Information System, TxDOT’s proprietary right of way acquisition data storage, tracking, and retrieval software application.
Anchor: #i1000517The “Prompt Payment Law”
In 2001, the Texas Legislature enacted the “Prompt Payment Law,” now codified in Government Code §2251. The law prescribes that a payment by a State governmental agency under a contract executed on or after September 1, 1987, is overdue on the 31st day after the later of:
- the date the governmental entity receives the goods under the contract;
- the date the performance of the service under the contract is completed; or
- the date the governmental entity receives an invoice for the goods or service.
A payment begins to accrue interest on the date the payment becomes overdue.
The renewal, amendment, or extension of a contract executed on or before September 1, 1993, is considered the execution of a new contract; therefore, receipt of a new invoice under a revised contract begins another 30-day period during which the invoice must be paid before interest begins accruing.
Therefore, it is imperative that the Districts and ROW Division make every effort to process appraisal payments in a timely manner, and thereby avoid payment of interest.