50 Ways to Lose Your Money

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50 Ways to Lose Your Money

• Dave Leighow
• R/W Program Manager
• FHWA

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Money Talks! (Be sure you have the right answers)

• Federal funds are not always easy to get
• Once youve got them, you dont want to lose them
• Here are 50 great ways to lose your Federal funds

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Acquisition

• Dont give property owner opportunity to
  accompany appraiser
• Dont offer fair market value based on an
  appraisal
• Dont give property owner written offer
• Dont give property owner reasonable opportunity
  to consider offer
• Dont offer to purchase uneconomic remnant from
  property owner

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Acquisition continued

• Dont reimburse property owner for incidental
  expenses (closing costs, etc.)
• Dont offer to acquire buildings, structures,
  other improvements
• Coerce property owner into signing
• Let the same person appraise/negotiate over
  10,000
• Dont negotiate in good faith with the property
  owner

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Relocation Assistance

• Dont give displacees 90-day assurance
• Dont offer advisory services
• Dont explain relocation eligibility
• Dont explain relocation entitlements
• Dont offer comparable replacement housing
• Dont reimburse displacees for moving expenses

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Relocation Assistance continued

• Dont pay eligible RHPs
• Dont provide inventories or monitor
  non-residential moves
• Dont document actual, reasonable costs
• Dont pay mortgage interest differential
• Dont pay closing costs on replacement dwelling
• Dont do DSS inspection of replacement dwelling

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Relocation Assistance continued

• Dont allow tenant displacee to choose the down
  payment supplement option
• Dont provide justification for last resort
  housing
• Dont explain options to non-residential
  displacees (actual direct loss, in lieu of,
  substitute personal property, etc.)

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Are we having fun yet?!?
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Property Management

• Charging more than fair market rent on a
  lease-back
• Failure to account for use of proceeds from sale
  and lease on other Title 23 projects
• Disposal or lease of r/w along the Interstate
  without FHWA approval
• Failure to keep r/w free of unapproved uses

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Property Management continued

• Failure to obtain approval from FHWA for change
  in access control along the Interstate
• Failure to assure that local agencies follow
  approved procedures
• Failure to evaluate the environmental effects of
  disposal and leasing actions
• Failure to assure that an airspace lease is in
  the public interest meets safety
• Inadequate documentation (Braswell rule)

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Ready for some more?!?
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Youll Lose It IF ..

• 35.40. You fail to comply with the Uniform
  Relocation Act

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Youll Lose It IF ..

• 41.45. You fail to comply with 49 CFR Part 24

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Youll Lose It IF ..

• 46.50. You fail to comply with your approved
  (by FHWA) R/W Manual

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Driving home the point!