Donations.

If federal funds are used in any part of a project (PE, right of way, or construction), the value of donated right of way may be used as a credit toward the State's or LPA's matching share on the federal project, provided that additional federal funds are available for the project.

This credit must be supported by an appraisal and should include the value of the land and improvements in the acquisition, but should exclude any damages to the remainder. If federal funds are used in right of way, costs to obtain the donation (e.g., appraisal and negotiations costs) would be eligible for federal reimbursement. If no federal funds are used in right of way but are in PE or construction, such costs to obtain the donation are ineligible for federal reimbursement. If property is to be donated and the owner waives the right to an appraisal, there is no requirement that the owner be given an opportunity to accompany the appraiser during inspection of the property. This is an exception to the normal negotiation process.

Method of Credit.

If an LPA wants to obtain any right of way credits on a federal project, ROW PD should contact the ROW Program Office to discuss the particular circumstances and procedures needed to obtain the credit.