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Section 7: Matching Fund Credits for LPAs

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Matching Fund Credits to LPA (State Funded Project; No Federal-Aid)

Donations

  • For local participation projects in which TxDOT is acquiring the ROW, the value of ROW donated by the LPA may be used as a credit toward the LPA’s matching share of cost of ROW to be acquired for the project. Donation credit will not be applied if the LPA is the acquiring agency.
  • This credit must be supported by an appraisal and should include the fair market value of the land and improvements being conveyed to TxDOT, but should exclude any damage to the remainder. The fair market value should be established as of the effective date of the LPA’s contractual agreement and should not include increases or decreases in value caused by the project. The cost of appraisal will be the responsibility of TxDOT. TxDOT will review the submitted documentation and make a final determination of value; provided however, TxDOT may perform any additional investigation deemed necessary, including supplemental appraisal work by TxDOT employees or employment of fee appraisers.
  • Credit will be given only for property transferred at no cost to TxDOT after the effective date of the LPA’s contractual agreement and TxDOT’s issuance of a letter of funding authority, and only for property which is necessary to complete the project. There will be no credit for property which is already dedicated and/or in use as a public road. Donation credit will be in lieu of monetary contributions required to be paid to TxDOT for the LPA’s funding share of ROW to be acquired for the project. The total credit cannot exceed the LPA’s matching share of the right of way obligation under their contractual agreement, and credits cannot be reimbursed in cash to the LPA, applied to project phases other than right of way, nor used for other projects. In the event the LPA’s monetary contributions to TxDOT for acquisition of ROW, when added to its donation credits, exceed the LPA’s matching share of the right of way obligation, there will be no refund to the LPA of any portion of its contributed money.
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Matching Fund Credits to LPA (Federal-aid Project)

Donations

  • If Federal funds are used in any part of a project (preliminary engineering, ROW, or construction), the value of donated ROW may be used as a credit toward the LPA’s matching share on the Federal project, provided that the additional Federal funds are available for the project.
  • This credit must be supported by an appraisal and should include the value of the land and improvements in the acquisition, but should exclude any damages to the remainder. If Federal funds are used in ROW, costs to obtain the donation (e.g., appraisal and negotiations costs) would be eligible for Federal reimbursement. If the owner waives the right to an appraisal, the appraisal to support the credit is not considered as part of the negotiations with the owner and owner accompaniment would not be required.

Method of Credit

  • If an LPA wants to obtain any ROW credits on a Federal project, the District should contact the ROW Division to discuss the particular circumstances and procedures needed to obtain the credit.
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