Expenses incidental to transfer of title to United States

Section 303 provides for reimbursement of the owner as soon as possible after the real property has been purchased or compensation awarded under condemnation with respect to the following expenses:

(1) Recording fees, transfer taxes, and similar expenses in conveying such real property to the United States;

(2) Penalty costs for prepayment of mortgage incident to such real property, provided that such mortgage shall be of record as required by law on the date the official announcement of the project is made by the authorized Federal agency; and

(3) The pro rata portion of real property taxes allocable to a period subsequent to the date of vesting title or the effective date of a court order of possession, whichever is the earlier, unless such pro rata portion of the taxes may be canceled under State or local laws.

Part B-Federally assisted programs

Requirements for approval of contracts or agreements for Federal financial

assistance

Section 321 sets forth the requirements and conditions which must be agreed to by State or local recipients of Federal assistance in connection with projects involving the acquisition of real property.

Section 321(a) states that no Federal assistance will be available to any State or local agency in whole or in part to pay the cost of acquisition of real property or of a public improvement for which real property is to be acquired unless such agency agrees to the following:

(1) That every reasonable effort shall be made to acquire the real property by negotiated purchase;

(2) That the construction or development of the public improvement shall be so scheduled that, to the greatest extent practicable, no person will be required to move from a home, farm, or business location without at least 90 days' written notice from such State agency of the date by which the move is required; and

(3) That it shall be the policy of the head of the State agency, before initiating negotiations for real property, to establish an amount which he believes to be just compensation, under the laws of the State, such amount not to be less than the appraised value of the property as approved by such State agency head and to make a prompt offer to acquire the property for the full amount so established.

Section 804(b) states that no Federal assistance shall be available for land acquisitions by State and local agencies unless such agency agrees to the following:

(1) That no owner will be required to surrender possession of real property before the head of the State agency (a) pays the agreed purchase price; (b) makes available to the owner, by court deposit or otherwise, an amount not less than the appraised fair value of such property, as approved by such State agency head, without prejudice to the right of the owner to contest the amount of compensation due for the property; or (c) deposits or pays the final award of compensation in the condemnation proceeding for such property;

(2) That the head of the State agency, as soon as practicable after the date of payment of the purchase price or the date of deposit of funds to satisfy the award of compensation in a condemnation proceeding to acquire real property, whichever is the earlier, shall reimburse the owner, to the extent the head of such agency deems fair and reasonable, for expenses necessarily incurred for

(a) Recording fees, transfer taxes, and similar expenses in conveying such real property to the United States; (b) Penalty costs for prepayment of mortgage incident to such real property; and

(c) The pro rata portion of real property taxes allocable to a period subsequent to the date of vesting title or the effective date of a court order of possession, whichever is the earlier, unless such pro rata portion of the taxes may be canceled under State or local laws.

(3) That any decrease in the value of real property prior to the date of valuation caused by the public improvement for which such property is acquired, or by the likelihood that the property would be acquired for the proposed public improvement, other than that due to physical deterioration within the reasonable control of the owner, will be disregarded in determining the compensation for the property; and

(4) That for the purpose of determining the extent of the acquisition of real property and the valuation thereof, no building, structure, or other improvement will be deemed to be other than a part of the real property solely because of the right or obligation of a tenant, as against the owner of any other interest in the real property, to remove such building, structure, or improvement at the expiration of his term, and the head of the State agency shall pay to the tenant the fair value of the building, structure, or improvement, which fair value shall be determined by such agency head as the greatest of (1) the contributive value of the improvement to the present use of the entirety; (2) the current cost of reproduction less depreciation of the improvements; or (3) the value of the improvement for removal from the property; provided (1) that payment hereunder will not result in duplication of any payments otherwise authorized by law; (2) that the fee owner of the land involved disclaims any interest in the improvements of the lessee; and (3) the lessee in consideration for such payment shall assign, transfer, and release to the State agency all his right, title, and interest in and to such improvements; provided further, that no provision of this paragraph (2) shall be construed to deprive the lessee of his right to reject the payments hereunder and to obtain payment for his property interests of just compensation as otherwise defined by law.

Provisions repealed

Section 322 repeals sections of the Housing Act of 1949 and of the Federal Aid Highway Act of 1968 which will be superseded by provisions of this title.

Effective date

Section 323 specifies the times when provisions of title III shall become effective. In general, the title goes into effect 6 months after the date of its enactment, and thereafter all State agencies that are able to do so under their laws will be required to comply with all provisions of the title that are applicable to them. To allow those State agencies which now lack authority for compliance sufficient time to obtain the needed changes, the date on which section 321(b), applying to federally assisted programs, and section 322, repealing certain existing Federal statutes, become fully effective is deferred to July 1, 1971.

TITLE IV-JUDICIAL REVIEW

Section 401 makes appropriate provisions of the Administrative Procedure Act applicable to all actions of a Federal agency under titles II and III. For clarification, the term "person" contained in such provisions shall be deemed to include a State as defined in the proposed act, section 102.

Section 402 states that any person or State adversely affected or aggrieved by a final action of a Federal agency under title II or title III of this act may seek judicial review of such final agency action and demand appropriate relief in a judicial district of the United States as follows:

(1) If the agency action pertains to property or any interest therein acquired or being acquired by the United States, or the ownership or right of the United States to possession of property, by an action in the judicial district in which the property is situated; and

(2) In all other matters, by an action in a judicial district as provided for in section 1391 (e) of title 28, United States Code.

CHANGES IN EXISTING LAW

In compliance with subsection 4 of rule XXIX of the Standing Rules of the Senate, changes in existing law made by the bill, as reported, are shown as follows (matter omitted enclosed in brackets; new matter printed in italic; existing law in which no change is reported shown in roman):

MOVING EXPENSES RESULTING FROM ACQUISITION OF LANDS BY SECRETARY OF INTERIOR

The bill repeals 43 U.S.C. 1231-1234, relating to payment of moving expenses resulting from acquisition of lands by the Secretary of the Interior:

[MOVING EXPENSES RESULTING FROM ACQUISITION OF LANDS BY

SECRETARY OF INTERIOR

[§ 1231. Payment of moving expenses to owners and tenants of lands acquired for developments; limitation on amount;

application for payment.

[The Secretary of the Interior is authorized, to the extent administratively determined by him to be fair and reasonable, to reimburse the owners and tenants of lands acquired for the construction, opera

tion, or maintenance of developments under his jurisdiction for expenses and other losses and damages incurred by them in the process and as a direct result of such moving of themselves, their families, and their possessions as is occasioned by said acquisition, which reimbursement shall be in addition to, but not in duplication of, any payments that may otherwise be authorized by law: Provided, That the total of such reimbursement to the owners and tenants of any parcel of land shall in no event exceed 25 per centum of its fair value, as determined by the Secretary. No payment under sections 1231-1234 of this title shall be made unless application therefor, supported by an itemized statement of the expenses, losses, and damages incurred, is submitted to the Secretary within one year from the date upon which the premises involved are vacated or, in the case of lands acquired and vacated prior to May 29, 1958 but after July 14, 1952, within one year from May 29, 1958. (Pub. L. 85-433, § 1, May 29, 1958, 72 Stat. 152.) [§ 1232. Administration; rules and regulations; exemption from Administrative Procedure Act.

[The Secretary may perform any and all acts and make such rules and regulations as he finds necessary and proper for the purpose of carrying out the provisions of sections 1231-1234 of this title. All functions performed under this Act shall be exempt from the operation of sections 1001-1011 of Title 5, except as to the requirements of section 1002 of Title 5. (Pub. L. 85-433, § 2, May 29, 1958, 72 Stat. 152.)

[§ 1233. Definitions.

[As used in sections 1231-1234 of this title, the term "lands" shall include interests in land; the term "acquisition" and its cognates shall include the exercise of a right-of-way upon lands subject thereto under section 945 of this title; and the term "fair value" shall, in the case of interests in land and of rights-of-way under section 945 of this title, mean a fair value of the interest acquired or of the right-of-way occupied. (Pub. L. 85-433, § 3, May 29, 1958, 72 Stat. 152.)

[§ 1234. Availability of appropriations.

[Funds appropriated for the construction, operation, or maintenance of developments under the jurisdiction of the Secretary shall also be available for carrying out the provisions of sections 1231-1234 of this title. (Pub. L. 85-433, § 4 May 29, 1958, 72 Stat. 152.)]

NATIONAL AERONAUTICS AND SPACE ACT OF 1958 The bill repeals paragraph 14 of section 203(b) of the National Aeronautics and Space Act of 1958 (42 U.S.C. 2473(b)(14)): [§ 2473. Functions of the Administration.

[(b) In the performance of its functions the Administration is authorized

[(14) to reimburse, to the extent determined by the Administrator or his designee to be fair and reasonable, the owners and tenants of land and interests in land acquired on or after November 1, 1961, by the United States for use by the Administration by purchase, condemnation, or otherwise for expenses and losses and damages incurred by such owners and tenants as a direct result of moving themselves, their families, and their possessions because of said

acquisition. Such reimbursement shall be in addition to, but not in duplication of, any payments that may otherwise be authorized by law to be made to such owners and tenants. The total of any such reimbursement to any owner or tenant shall in no event exceed 25 per centum of the fair value, as determined by the Administrator, of the parcel of land or interest in land to which the reimbursement is related. No payment under this paragraph shall be made unless application therefor, supported by an itemized statement of the expenses, losses, and damages incurred, is submitted to the Administrator within one year from (a) the date upon which the parcel of land or interest in land is to be vacated under agreement with the Government by the owner or tenant or pursuant to law, including but not limited to, an order of a court, or (b) the date upon which the parcel of land or interest in the land involved is vacated, whichever first occurs. The Administrator may perform any and all acts and make such rules and regulations as he deems necessary and proper for the purpose of carrying out this paragraph. All functions performed under this paragraph shall be exempt from the operation of sections 1001-1011 of Title 5, except as to the requirements of section 1002 of Title 5. Funds available to the Administration for the acquisition of real property or interests therein shall also be available for carrying out this paragraph.]

DEPARTMENT OF DEFENSE-REINBURSEMENT OF OWNERS OF PROPERTY ACQUIRED FOR PUBLIC WORKS PROJECTS FOR MOVING EXPENSES

The bill repeals section 2680 of title 10 of the United States Code: [§ 2680. Reimbursement of owners of property acquired for public works projects for moving expenses.

[(a) Under regulations approved by the Secretary of Defense and without regard to sections 551-559 and 701-706 of title 5, the Secretary of a military department, or his designee, may, upon application by the owners and the tenants of land to be acquired for a public works project of his department, reimburse those owners and tenants for those expenses, losses, or damages that he determines to be fair and reasonable and that are incurred by them as a direct result of moving themselves and their families and possessions because of that acquisition. However, application for reimbursement must be made within one year after that acquisition or within one year after the property is vacated, whichever date is later, and be accompanied by an itemized statement of the expenses, losses, and damages incurred.

[(b) The total payments under this section with respect to a parcel of land may not be more than 25 percent of the fair value of that land, as determined by the Secretary of the military department concerned. They are in addition to, but may not duplicate, any other payments that may be made under law as a result of acquisition of that land. [(c) Any funds appropriated for civil or military public works may be used to make payments under this section. (Added Pub. L. 87–651, title I, § 112(c), Sept. 7, 1962, 76 Stat. 511).]