CONTENTS

I. Creation of the subcommittee__

II. Purpose of the subcommittee__

III. Legislative background and scope of subcommittee study.

IV. Activities of the subcommittee_.

V. Magnitude of real property acquisition and human disruption under

Federal and federally assisted programs..

A. Agencies providing data.......

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1

1

B. Magnitude of past acquisitions___

C. Magnitude of future acquisitions_

D. Comparative summary of past and future acquisitions.

E. Magnitude of human disruption expected from future ac-

quisitions.

F. Comparative summary of expected future and past human

disruptions._.

G. Experiences of families and individuals displaced from

dwelling units in past acquisitions--

H. Experiences of displaced businesses in past acquisitions__

I. Experiences of displaced farms in past acquisitions--

J. Leadtime for Federal-aid highway displacees in past acquisi-

tions---

K. Relocation payments-average amounts and range in size_

L. Purchases and condemnations___.

M. Negotiation procedures used by acquiring agencies in pur-

chasing private property--

N. Pelative size of various project costs-relocation costs,

real property payments, total project costs, and others.

VI. The scope of public use.

VII. Summary of the judicial rules defining the scope and limitations of

the just compensation required by the Fifth Amendment...

A. Payment required for the property taken_

B. Payment not required for incidental losses –

C. Exception to general rule of no compensation for incidental

losses...

G

D. No payment required if no property "taken”.

E. The market value standard..

1. General_ _ _

2. Market value means a transferable value..

3. Market value may be more or less than the owner's

investment in his property---

4. Market value means cash or equivalent of cash.

5. Market value, not value to the owner.

6. Market value, not value to the taker..

7. Market value, a practical but imperfect standard...

F. Changes in market value caused by project for which prop-

erty is acquired__

1. Enhancement in market value....

III

VII. Summary of the judicial rules-Continued

H. Benefits__.

I. The before and after procedure-

J. Compensation for buildings, structures, and fixtures..

1. General matters affecting compensation....

2. Tenant owned buildings and fixtures...

(a) Effect of separate agreement with landlord__

(b) The railroad lessee problem....

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78

K.

3. Conflicts in Federal law concerning fixtures..

Acquisition by condemnation proceedings accompanied by

inverse condemnation of other interests.

81

85

L. The Mayme Riley problem...

86

VIII. Authority of the Congress___

88

A. To pay more than the just compensation required by the

Fifth Amendment...

88

B. To grant broad discretionary powers to heads of government

agencies.

C. To impose conditions for grants of funds..

D. To declare public policy --

IX. Federal and State laws providing for relocation payments and

relocation assistance___

2. Variations in items of relocation expense authorized_

3. Statutory requirements for relocation assistance and

assurance of standard housing____

102

103

4. States with provisions differing from Federal Aid

Highway Act of 1962_.

2. Federal land acquisition practices (title I, sec. 101)-

Uniform policy for all Federal agencies__-

3. The market value standard (title I, sec. 102) ---

(a) The highest reasonable price for property-

(b) No penalty to owner for decreases in mar-

ket value caused by administrative ac-

tions or public announcements of a

proposed public project__

(c) Compensation in partial takings based on

before-and-after values__

127

127

X. Summary, conclusions, and recommendations—Continued

B. Recommendations-Continued

4. Acquisition of buildings and structures (title I,

sec. 103(a)).-

Pago

128

5. Tenant owned buildings and structures (title I, sec.

103(c)).

128

6. Uniform Federal standard for determining the

fixture problem in Federal takings (title I, sec.

103(b)) =

7. The Mayme Riley problem (title I, sec. 104).

8. Reimbursement of expenses incidental to transfer

of title to the United States (title I, sec. 105)__

9. Limited reimbursement for litigation expenses (title

I, sec. 106) ---

10. Relocation payments and relocation assistance

(title I, secs. 107-108, 110–115).

(a) Uniform policy on relocation payments and

provision of relocation assistance in all

Federal and federally assisted programs.

(b) Four types of relocation payments

(1) Reimbursement for actual and

reasonable expenses -

(2) Optional fixed payment for busi-

nesses dependent on neighbor-

hood trade or special locations_

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130

130

131

(3) Optional fixed payment for resi-

dential occupants.

131

(4) Optional fixed payment for farm

operators--

132

(c) Maximum relocation payment required of

State or local government agencies--

132

(d) Relocation assistance program..

132

Relocation assistance for persons suffering

substantial economic injury, but not

physically displaced...

133

(f) Authority to contract with agencies having

established relocation organizations -

133

(g) Federal share of cost.

133

(h) Effective dates__

134

11. Federal programs with local cooperation (title I,

(c) Beginning of replacement period___

(d) Exclusion of certain relocation payments..

(e) Exemption from documentary stamp tax..

14. Loans and counseling for displaced and injured small

businesses (title III, sec. 301)..

137

137

138

139

15. Retraining (title III, sec. 302) -

140

X. Summary, conclusions, and recommendations-Continued

B. Recommendations-Continued

16. Unemployment compensation for employees of

displaced business concerns having less than

four employees (title III, sec. 303) -

17. Rental adjustment payments (title IV, secs. 401

and 403..

18. Low-interest loans for the purchase or construction

of single-family homes by low- or moderate-in-

come displaced homeowners (title IV, secs. 402

and 403) -

Pago

140

141

143

19. Public housing subsidy for displaced families or

individuals (title IV, sec. 404)...

143

144

145

20. FHA section 221 housing for low- or moderate-

income displaced individuals (title IV, sec. 405)__

C. Proposed bill

APPENDIXES

A. Federal and State constitutional provisions relating to compensation

for the taking or damage of private property for public use.

B. Federal and State statutes relating to relocation payments, relocation

assistance, or assurances of availability of standard housing, and

Federal statutes authorizing other assistance for displaced persons, in-

cluding the specal subsidy for urban renewal and low rent housing

project displacees admitted to public housing units; the FHA section

221, housing insurance for low or moderate income families and

elderly or handicapped individuals; the small business administrations

disaster loan program for displaced small business concerns; and

other concerns

C. Statistical data on magnitude of real property acquisition and human

disruption in federal and federally assisted programs, supplement

to chapter V.....

D. A comprehensive questionnaire relating to Federal practices for the

evaluation, negotiation, and acquisition of real property, with answers

by the principal Federal land acquisition agencies...--

E. An analysis of the small business administration's disaster loan program

for displaced small business concerns..

F. A report of the "before and after earnings" of owners of business con-

cerns displaced by urban renewal in Southwest Washington, D.C.

during 1959 and 1960_.

G. A report on the railroad lessee problem. Uncompensated losses by

owners of permanent buildings or structures constructed on railroad

rights-of-way or other private property, because of lease provisions

providing for removal of the improvements on short notice, or at the

expiration of the term..

H. Bibliography--.

I. Tables of contents for each public hearing of the Select Subcommittee

on Real Property Acquisition

168

194

238

298

455

473

487

499

513

STUDY OF COMPENSATION AND ASSISTANCE FOR PERSONS AFFECTED BY REAL PROPERTY ACQUISITION IN FEDERAL AND FEDERALLY ASSISTED PROGRAMS

I. CREATION OF THE SUBCOMMITTEE

The Select Subcommittee on Real Property Acquisition was first created in the 87th Congress by resolution of the Committee on Public Works adopted August 24, 1961, under the authority of House Resolution 23. The subcommittee was recreated in the 88th Congress under the authority of House Resolution 56, and is presently constituted as follows:

Robert E. Jones

Ed Edmondson
Harold T. Johnson

T. A. Thompson

Clifford Davis, Chairman

Howard W. Robison

John C. Kunkel

James H. Quillen
Don H. Clausen

II. PURPOSE OF THE SUBCOMMITTEE

The subcommittee was directed to make a comprehensive, impartial, and nonpartisan study, in order to determine whether owners, tenants, and other persons affected by the acquisition of real property in Federal and federally assisted programs receive fair and equal treatment, and adequate compensation, considering the value of their property and the losses and expenses they incur on being required to move from their homes, farms, or business locations. The subcommittee was directed also to develop specific legislative proposals, as necessary, in order to eliminate inequities and to prevent or minimize hardships in these programs.

III. LEGISLATIVE BACKGROUND AND SCOPE OF SUBCOMMITTEE STUDY

There have been a growing number of complaints to the Congress in recent years, questioning the fairness of Government agency land acquisition practices, the sufficiency of traditional standards of compensation, and the adequacy of assistance for persons adversely affected by public improvement programs undertaken by the Federal Government, or with the aid of Federal funds.

There were reports of many persons suffering severe hardships and financial losses and of others being overpaid. There was particular concern about the lack of uniformity in the various programs, with citizens apparently receiving varying amounts of compensation or assistance depending on the program involved rather than the actual loss suffered.

In recent sessions of Congress, legislation has been enacted to provide more liberal payments in specific programs, and numerous bills