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Terminology 43
Additional or Alternative Terminology
The terminology presented in this section was identified during the course of NCHRP Project
8-55A. Where possible, a source is included in parenthesis. However, this does not indicate that the
official definition of the term comes from that source, just that it was identified from that source.
Terms in italics were identified as alternative terminology for more uniformly accepted terms.
30-day notice: This is a notice that may be given to a person who will be required to move a
residence, business, or personal property as a result of an agency's project. It informs the person
that he or she must move the residence, business, or personal property 30 days from the date of
the notice. (FHWA 2009)
access control: Power of Government to restrict/control a property owner's right to create
entrances and exits on a public road. (FHWA 2009)
acquisition: The process of obtaining right-of-way necessary to construct or support a project.
(FHWA 2009)
actual moving expenses: The costs that are paid to disconnect, move, and reinstall personal
property. These costs are usually associated with the move of a business. A complete list of costs
eligible for Federal reimbursement can be found in 49 CFR 24.301 and 303. (FHWA 2009)
actual direct loss of tangible personal property: Businesses and farms that move as a result of
having their real estate acquired sometimes elect not to move some of their personal property.
They may be eligible to receive a payment for this personal property. See 49 CFR 24.301(g)(14)
for a complete explanation of how an Actual Direct Loss of Tangible Personal Property payment
is calculated. (FHWA 2009)
administrative settlement: Payment amount offered by a state transportation agency to encourage
the owner to agree to settle. (FHWA 2007)
after appraisal: Part of the appraisal of a property from which only a portion of that property
is acquired for the planned project. This type of acquisition is often referred to as a "partial
acquisition." That portion that is valued "after" the acquisition is sometimes referred to as the
"remainder" or "remaining parcel." The after value takes into account the effects of the partial
acquisition and any effects (negative or positive) that it may have on the value of the remainder.
(FHWA 2009)
alternate dispute resolution (ADR): A range of different forums and processes that can be used
to resolve a dispute. Two forms of ADR include administrative settlements and mediation.
(FHWA 2009)
approved appraisal: An appraisal must be approved by an agency official before it can be used
as the basis for offering an estimate of just compensation. (FHWA 2009)
before appraisal: Part of the appraisal of an affected property that estimates the value of the
property as it is before the acquisition. Law and regulations typically require that this estimate
of value cannot include any increase or decrease in the value of the property that results from the
planned or anticipated project. (FHWA 2009)
condemnation: The legal process of acquiring private property for public use or purpose
through the state's power of eminent domain. Condemnation is usually not used until all
attempts to reach a mutually satisfactory agreement through negotiations have failed. (Vir-
ginia DOT)
cost of substitute personal property (relocation assistance): In some instances a business or
farm owner who has to move his or her personal property may decide to replace some items of
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44 Guide for Implementing a Geospatially Enabled Enterprise-wide Information Management System
personal property instead of moving them. The property owner may receive some reimburse-
ment for replacing these items of personal property at the site to which he or she moves. An
explanation of how to calculate the reimbursement a property owner is eligible to receive can be
found at 49 CFR 24.301(g)(16). (FHWA 2009)
cost (appraisal approach): Cost, income capitalization, and sales comparison are the three
approaches an appraiser can use to estimate the value of a property. The cost approach estimates
the value of a property by adding the value of the land plus estimated cost to construct/replace
the improvement and then subtracting the estimated amount of depreciation from the current
structure. (FHWA 2009)
damages: In some instances, the acquisition, planned use, or construction may cause a loss in
value of remaining property (damages may also extend to adjoining properties in which the
property owner has an interest). Normally, the value of the damage is based on a before and after
appraisal or on the cost to cure. An owner is entitled to payment of damages and receives this
payment as a part of the payment of just compensation. (FHWA 2009)
disconnect costs: When a business or farm owner has to move personal property, he may be eligible
to receive reimbursement for the cost to disconnect, dismantle, and remove his personal property.
See 49 CFR 24.301(g)(3) for a list of federally reimbursable disconnect costs. (FHWA 2009)
DSS survey: Survey of physical condition of a replacement dwelling and its effect on the health
and safety of the occupants. (FHWA 2009)
easement: An easement is the right of one person to use all or part of the property of another
person for some specific purpose. Easements can be permanent or temporary. The term may be
used to describe either the right itself or the document conferring the right. (Virginia DOT)
eminent domain: The right to take private property for public use. In the United States, just
compensation must be paid for private property. (Virginia DOT)
encroachments: A situation that usually occurs when items such as a house, sign or well are discov-
ered to be on agency property (right-of-way, etc.) illegally or without permission. (FHWA 2009)
fair market value: The price which a willing buyer will pay a willing seller for a piece of real estate.
The exact definition of fair market value depends on where (the jurisdiction) the property being
bought or sold is located, on state/local case law and on other state/local legal issues. (FHWA 2009)
federally assisted project: A federally assisted project is one which receives Federal reimbursement
or payment of some project expenses such as planning, construction, right-of-way acquisition,
and property management. (FHWA 2009)
(fixed residential moving cost) schedule: This schedule is used to calculate the amount of
reimbursement that displaced persons may be eligible to receive if they decide to move their own
personal property. A copy can be found at http://www.fhwa.dot.gov/realestate/index.htm in the
section Relocation Assistance. (FHWA 2009)
functionally equivalent: Term used to describe how the replacement dwelling offered to a displaced
person is to compare to the displacement dwelling in regard to performing the same function,
and providing the same utility. (FHWA 2009)
highest and best use: The legal use or development/redevelopment of a property that makes it
most valuable to a buyer or the market. (FHWA 2009)
housing of last resort: Justification for additional or alternative assistance when a program or
project cannot proceed on a timely basis because comparable replacement dwellings are not
available. (FHWA 2009)
Also referred to as last resort housing.
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Terminology 45
incentive payment: payments that are over and above the just compensation offer or computed
relocation benefits. (FHWA 2006)
incidental expenses (settlement expenses): Reimbursement for some settlement expenses that a
residential property owner may receive after he or she buys a dwelling to replace the acquired prop-
erty. A complete list of eligible expenses can be found at 49 CFR 24.401(e)(1-9). (FHWA 2009)
increased mortgage interest costs: This is a payment that a residential property owner may be
eligible to receive to offset the increased cost of getting a mortgage on a replacement dwelling.
An explanation of how to determine if a property owner is eligible to receive this reimbursement
and how to calculate the payment can be found at 49 CFR 24.401(d). (FHWA 2009)
initiation of negotiations: The date an agency makes the first personal contact with the owner
of real property, or his/her representative, to provide a written offer to purchase the property
being acquired. (Virginia DOT)
interest: A right, title, or legal share in something. People who share in the ownership of real
property have an interest in the property. (Virginia DOT)
just compensation: The payment to a property owner to acquire property for a federally funded
or federally assisted project. The payment includes the value of the real estate acquired and any
damages caused to the remainder of the property by the acquisition and/or construction.
(FHWA 2009)
last resort housing: Same as housing of last resort
lease: An agreement between a landlord, a property owner or property manager, and a tenant.
(FHWA 2009)
loss of tangible personal property: Same as alternate actual payment [California DOT (Caltrans)]
memorandum appraisal: See minimum standards appraisal. (Caltrans)
minimum payment method: See waiver valuation. (Caltrans)
minimum qualifications of appraisers: The criteria that an agency uses to determine which
appraisers or review appraisers are qualified based on experience, state licenses, or state certifi-
cations to perform specific appraisal and review assignments. Additional information on minimum
qualifications of appraisers can be found at 49 CFR 24.103(d), Qualifications of appraisers and
review appraisers. (FHWA 2009)
mobile home: The term mobile home includes manufactured homes and recreational vehicles
used as residences [See 49 CFR 24.2(a)(17)]. (FHWA 2009)
negotiation: The primary method for acquiring property. It involves explaining items such as
details of construction, offer of just compensation, and what just compensation is. The negotia-
tion process involves listening to the property owner and determining the best way (negotiated
settlement/administrative settlement) to reach an agreement for the sale of property. (FHWA 2009)
NEPA (National Environmental Policy Act of 1969): NEPA applies to all Federal agencies and
most of the activities they manage, regulate, or fund that affect the environment. It requires all
agencies to disclose and consider the environmental implications of their proposed actions.
Information on NEPA and Federal aid project requirements can be found in the regulations at
23 CFR 771. (FHWA 2009)
nonprofit organization: A public or private entity that has established its nonprofit status under
applicable Federal or state law. (Virginia DOT)
parcel diary: See waiver valuation. (Caltrans)
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46 Guide for Implementing a Geospatially Enabled Enterprise-wide Information Management System
personal property: In general, refers to property that can be moved and is not permanently
attached to, or a part of, the real estate. (FHWA 2009)
personalty: Refers to items that are determined to be personal property. (FHWA 2009)
realty: Refers to items that are determined to be real property. (FHWA 2009)
reestablishment expenses: A business, farm, or nonprofit organization may be eligible to receive
reimbursement for some of its expenses related to relocating and re-establishing when it is
required to move for a federally aided project. A list of expenses that are reimbursable can be
found at 49 CFR 24.304. (FHWA 2009)
regulatory (Federal aid program): This refers to the regulations that tell how the Federal aid
highway program is administered. The primary regulations for right-of-way real property acqui-
sition, relocation, appraisal, property management, junkyard control, outdoor advertising, and
property management are 23 CFR 710, 750, 751 and 49 CFR 24. (FHWA 2009)
relocation assistance program (RAP): Structured program to ensure that persons displaced as
a result of a state highway project are treated fairly, consistently, and equitably. (Caltrans)
relocation impact document: See relocation survey. (Caltrans)
relocation planning: A process for federally aided projects and programs that involve identifying
and considering the potential impact created by displacing residences, farms, businesses, and
nonprofit organizations and planning methods to minimize that impact. Information on relo-
cation planning requirements can be found at 49 CFR 24.205. (FHWA 2009)
relocation survey: The preparation of an inventory of characteristics and needs of individuals,
families, businesses and non-profit organizations, and farms to be relocated including (1) a survey
of the real estate market to determine if an adequate supply of comparable replacement housing
and suitable replacement locations for businesses and farms will be available to meet the needs
of the displaced persons in a timely manner, (2) an analysis of the problems anticipated in
the relocation of the occupants including any special relocation advisory services that may be
necessary, and (3) proposed solutions for resolving anticipated problems. (FHWA 2009)
replacement housing valuation: Same as DSS survey.
small business: A business having not more than an established number of employees working
at a site that is the location of economic activity and that will be acquired for a program or project
or is displaced by a program or project. (Virginia DOT)
statutory (Federal aid program): This refers to the laws passed by Congress that govern real
estate acquisition activities for Federal and federally assisted programs and projects. The primary
statute governing Federal and federally assisted real estate acquisition activities is the Uniform Act.
(FHWA 2009)
stipulated (legal) settlement: In instances in which condemnation proceedings have begun,
parties can still negotiate, and in some instances, can agree to a settlement before their case is
heard. To conclude the negotiation, the parties present the judge or presiding authority their
agreement to settle, which is called a stipulated settlement. (FHWA 2009)
uneconomic remnant: A segment of real property in which the owner is left with an interest after
the partial acquisition of the owner's property, and which has been determined has little or no
value or utility to the owner. (FHWA 2009)
utility relocation: The adjustment of a utility facility required by the program or project
undertaken by the displacing agency. It includes removing and reinstalling the facility, including
necessary temporary facilities; acquiring necessary right-of-way on a new location; moving,
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Terminology 47
rearranging, or changing the type of existing facilities; and taking any necessary safety and
protective measures. (FHWA 2009)
waiver valuation: The valuation process used and the product produced when the agency
determines that an appraisal is not required, pursuant to 49 CFR 24.102(c)(2) appraisal waiver
provisions. (FHWA 2009)
Also referred to as minimum payment method; parcel diary (Caltrans)
