Section 7: Eligible Condemnation Costs and Methods of Reimbursement (for LPA)
Anchor: #i1000492Overview
LPA reimbursement for a condemned parcel is based on the final judgment amount and on eligible ED costs. Eligibility for reimbursement of condemnation charges (adjudged against the LPA and/or the State and paid by the LPA) is determined according to Attorney General's Opinion Nos. M-134, M-142, M-483, H-886 and DM-26. The cost of recording judgments in the deed records is not eligible for State participation because of the division of responsibilities in the contractual agreement, which states that the LPA must record all conveyance instruments at their own expense. Except for this, there is no distinction between the condemnation charges for which the city can be reimbursed and those for which the State can pay, as discussed in Payment of Litigation Expenses. The differences between charges that the State can pay and those that can be paid by a county are discussed in Attorney General's Opinion No. M-142. Counties should refrain from entering judgments calling for county payment of court costs that are a transfer of money from one county fund to another.
LPAs should normally make a single reimbursement request covering all eligible costs on a condemned parcel. However, in appealed cases the LPA also has the option of (1) asking for partial reimbursement at the award stage, and (2) then billing the State for the remaining costs following the final judgment, as discussed in Submissions for Partial Reimbursement Based on 80% of the State’s Participation Amount.
When objections to the Award of Special Commissioners are filed and the LPA has deposited the amount of the award in the court, the LPA may request reimbursement based on 80% of the State's participation of the amount awarded by the special commissioners and 100% of all eligible costs incurred up to the time of the reimbursement request. Following the final judgment and its full payment into the court, the LPA must submit a second reimbursement request for (1) the difference between 80% of the State's participation of the award and the final judgment, and (2) all other eligible costs not included in the previous billing, as discussed in Submission for Reimbursement Following Partial Reimbursement on the Commissioners’ Award.