Include all buildings, structures, or other improvements located on right of way parcels in appraisals, whether owned by landowner or lessees, when determined to be real property under state law.

The LPA may make payments to the property owner, acquiring all improvements in the name of the state on state program system projects. Alternately, the LPA may allow the property owner to retain improvements. Make appropriate reductions in the parcel price if the property owner retains improvements.

If an improvement is classified as a Category II bisection, a supplemental paragraph will be submitted on the Tabulation of Values, signed by responsible engineering personnel stating that the cutting of the building is a design and location requirement and that any reduction in right of way would adversely affect requirements for highway purposes. This recommendation will then bear the signature of the district engineer.