Real Property Acquisition for Noise Compatibility without Changing Land use – Typical Measures
Purchase Assurance . Airport purchases a participating home at the appraised FMV, typically sound insulates it and resells the home for residential use subject to the airport’s noise/avigation easement retained on the sale to a new owner.
Sales Assurance. A participating owner is assured the appraised fair market value of their home on a timely market sale, however the airport does not acquire the property. Home is appraised “as is” and the property is listed and sold by the owner subject to an noise easement conveyed to the airport at sale of the property. In effect the owner is assured no loss on the sale of the home subject to airport’s easement for noise compatibility.
Transaction Assistance. The airport agrees to pay certain costs associated with the sale of participating owner’s home. Typically, the airport pays the real estate commission on the owner’s sale. May also include some fixed expense incurred on sale and move from home. The property is listed and sold subject to the airport’s easement that is conveyed to the airport at the assisted sale of the property. May be combined with Purchase/Sales assurance measure.
FMV Appraisal Requirements. The appraisal of the FMV of the property considers the existing noise impact, as indicated by the noise contour that the participating property is located. Comparable sales to value the property are selected from the same noise contour as the property appraised (or appropriate adjustment made for noise exposure of the subject property appraised).
On a sale an adequate easement for noise compatibility is conveyed/retained:
Provides for “right of overflight” with associated noise as mitigated under the airport’s NCP
Permanently encumbers the property of the current participating owner and subsequent owners (Easement must “Go with the Land”).
Reflects the approved NCP, but does not preclude other or future mitigation.
Owners Sale is a Voluntary Transaction under the Uniform Relocation Act. In contrast to a “Buy-out project” where land is acquired for redevelopment to compatible land use, on purchase assurance or sales assistance the selling owner is “not displaced” and is not entitled to moving or replacement housing payments under 49 CFR 24 (Uniform Relocation Act).
Market Value Sale of Participating Property.
The time exposed on the market must adequate to solicit the appraised FMV.
List price should anticipate normal negotiations, say list 2% above appraised FMV, FHA premium, etc.
The listing must notify that the property is offered subject to the easement and at closing the property is purchased subject to the airport’s easement.
The airport must be able to explain the easement to buyers (e.g. contact person, pamphlets, other available information methods). Realtors need to understand the easement.
Reasonable cost to market the property at its appraised FMV are allowable offsets against sales proceeds (transaction assistance items, e.g. realtor fee, airport expense to maintain “curb appeal” and market at FMV).