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Section 20: Reimbursement Policies and Procedures

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Payment for Appraisers’ Eminent Domain Services

When an LPA is the acquiring agency, the State does not participate in condemnation proceedings except as specified by law and agreed to in the ROW acquisition contractual agreement. Use of State-approved fee appraisers in condemnation proceedings is provided for in this contractual agreement. In executing the agreement, the LPA pays the appraiser under the terms of his appraisal contract with the State. State participation in this cost is limited as described below:

  • Before the Commissioners’ Hearing

The LPA pays for appraisal services performed at the request of the LPA in anticipation of condemnation proceedings. However, the State pays for these services when:

  • a new parcel value is established based upon the appraiser’s updated report, or;
  • the State determines that the appraisal report should not be used in the condemnation proceedings.

If the appraiser’s updated appraisal report for condemnation does not result in a new parcel value and the report is approved for testimony, the LPA may release payment for the appraiser’s fee. This payment is eligible for State reimbursement as agreed upon in the ROW acquisition contractual agreement.

  • After the Commissioner’s Hearing

The State does not make payments directly to appraisers for services rendered after the Commissioner’s Hearing. The LPA makes these payments with prorated State reimbursement, when eligible.

  • Payment and Pay Procedures for LPA Acquisition

The LPA may exercise its option to perform the required ROW acquisition activities and payments with prorated cost reimbursement by the State. Under this program (usually US or SH projects), initial payments must be made by the LPA, and State reimbursement is performed according to contractual agreement between the State and LPA.

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State Reimbursement for LPA-Acquired ROW

  • LPA’s Requests for Reimbursement

TxDOT will promptly reimburse LPAs under the terms of the contractual agreement. However, all reimbursements must be initiated by a request from the LPA. To verify that all required data is submitted, and to expedite the State’s processing of these requests, sample forms are available for the LPA’s use in billing the State.

The LPA does not need to complete its acquisitions or expenditures on an entire ROW project before requesting reimbursement. Reimbursement requests may be submitted on one or more parcels, when all reimbursable expenditures (except ROW fencing and not less than 80 percent of the State’s participation of the award on condemned parcels) are included in one billing. It is generally more practical to group several parcels in each request.

Reimbursement submission requirements for various reimbursable items are described in the following sections. Reimbursement requests may be combined into one request when each individual support requirement is fulfilled.

  • Reimbursement Forms

All LPA requests for reimbursement by the State must be billed on TxDOT Form 132. The LPA uses ROW-N-20-AB, Tabulation of Cost, to show agreement with amount to be reimbursed.

All parcel reimbursements (with the exception of those for LPA ROW fencing) done on an actual cost or lump sum basis must be supported by three copies of the Form ROW-N-20AB, Tabulation of Cost, sent to the District. The form must include ethnic coding to identify the property owner as minority or non-minority.

For condemned parcels, support Forms 132 and ROW-N-20AB with:

  • one copy of ROW-N-20C, District Check Sheet to Support Reimbursement on Condemned Parcels;
  • three copies of the breakdown of costs incurred in acquisition by condemnation;
  • 80% of the State’s participation of the billing based on Commissioners’ Award or billing based on the final judgment;

A Reimbursement Checklist for LPAs, available for reproduction, may be used to ensure the inclusion of all items in the reimbursement package.

Support Form 132 for ROW fencing by the LPA by submitting three copies of County’s or City’s Support for Form 132 on Lump Sum Fencing, or County’s or City’s Support for Form 132 on Actual Cost Fencing, to the District.

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Submission for Reimbursement of ROW Fencing

  • Lump Sum

The LPA’s reimbursement request on the firm commitment for ROW fencing (under the supplemental agreement to the project’s contractual agreement) must be made on Form 132 and supported by County’s or City’s Support for Form 132 on Lump Sum Fencing. Fencing must be completed on the entire project and only one billing per project will be processed, unless more than one agreement is authorized.

  • Actual Cost

If the LPA prefers not to use the firm commitment agreement method for ROW fencing and values for existing fences (or damages for an unfenced condition have not been included in the approved value), the LPA may be reimbursed on the basis of its actual costs instead of entering into the firm commitment agreement. The billing must be made on Form 132 and supported by a breakdown of the cost of labor, materials, and equipment. If fencing is done by contract, also attach a copy of the successful bid received on a competitive bid basis. Also, support Form 132 by showing:

  • distribution of the total cost, by parcel,
  • the description of the type of fence constructed,
  • the total linear feet of fencing constructed, and
  • the average cost per linear foot.

Fencing reimbursement on the actual cost basis can be made when ROW fencing on a parcel is complete and paid for. The number of fencing submissions should be kept to a minimum by combining as many parcels as possible in each billing.

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Incidental Expenses on Transfer of Real Property (State Participation)

  • General Requirements

On projects using State or Federal funds, reimbursement of certain incidental expenses, as outlined in the contractual agreement, is the sole responsibility of the LPA.

  • Recording and Transfer Fees

Recording fees, transfer fees and similar expenses incidental to conveying property to the State are eligible for reimbursement. The following are examples:

  • If the property owner has to pay a lending agency for execution of release, resurvey, or preparation of a deed, then these costs are eligible incidental expenses.
  • If appointment of a guardian is needed in the process of transferring property to the State, then reasonable costs for related legal services are eligible incidental expenses. It should be noted that the property owner’s attorney’s fee would not be eligible.
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Mortgage Prepayment Penalty

Eligible expenses include penalty costs for prepayment of preexisting mortgage (entered into in good faith encumbering such real property) if the mortgage was on record at the time of closing.

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