15 Barriers to Acquisition

Acquisition Step: Purchase

Acquisition implementers utilizing grant funds are required to pay fair market value determined by an independent property appraiser. During negotiations some landowners will want, and can potentially get, more than appraised value for properties on the public real estate market. Some grant programs (e.g. FbD; some of RCO’s grants) allow for paying up to 10% over fair market value to account for the necessity of key parcels on a case-by-case basis. Acquisition implementers note that even 10% over market value is sometimes not enough to secure key parcels, hampering conservation, restoration and/or resilience goals.

Acquisition Process Step: Scope; Budget and Engagement; Purchase.

Governor’s Executive Order 21-02 requires that “[Washington State] Agencies shall consult with DAHP and affected tribes on the potential effects of projects on cultural resources proposed in state-funded construction or acquisition projects that will not undergo Section 106 review under the National Historic Preservation Act of 1966 (Section 106), including grant or pass-through funding that culminates in construction or land acquisitions, to determine potential effects to cultural resources…Should DAHP or the affected tribes identify a known archaeological or historic archaeological site, historic building/structure, cultural or sacred place that may be impacted by either direct or indirect effects of the proposed undertaking or activity, the agency must consult with DAHP and the affected tribes on avoidance strategies or methods to minimize harm…In the case of historic buildings/structures, the agency shall develop mitigation strategies in consultation with DAHP and if requested, affected tribes. For all other cultural resources including archaeological and historic archaeological sites or traditional and sacred places the agency may only develop mitigation strategies upon notifying DAHP and the affected tribes that avoidance cannot be attained…”

Acquisition implementers may be unaware of the process, costs and time needed to complete cultural resource review, especially if using state grant funds for the first time. Common components of the review process include: desktop reconnaissance, pedestrian survey, and historic structure review. Each of these components can present unknown challenges that come with cost or time delays.

Acquisition Process Step: Scope; Budget and Engagement; Purchase.

Governor’s Executive Order 21-02 requires that “[Washington State] Agencies shall consult with DAHP and affected tribes on the potential effects of projects on cultural resources proposed in state-funded construction or acquisition projects that will not undergo Section 106 review under the National Historic Preservation Act of 1966 (Section 106), including grant or pass-through funding that culminates in construction or land acquisitions, to determine potential effects to cultural resources…Should DAHP or the affected tribes identify a known archaeological or historic archaeological site, historic building/structure, cultural or sacred place that may be impacted by either direct or indirect effects of the proposed undertaking or activity, the agency must consult with DAHP and the affected tribes on avoidance strategies or methods to minimize harm…In the case of historic buildings/structures, the agency shall develop mitigation strategies in consultation with DAHP and if requested, affected tribes. For all other cultural resources including archaeological and historic archaeological sites or traditional and sacred places the agency may only develop mitigation strategies upon notifying DAHP and the affected tribes that avoidance cannot be attained…”

Mitigating impacts to historic structures that can be demolished can bring unanticipated time and cost impacts to an acquisition project. Mitigation requirements are at the discretion of DAHP. There isn’t firm policy guidance available to practitioners on mitigation requirements at this time. Mitigation can include Level II survey requirements, Story Maps, photographic documentation, architectural salvage, etc. Uncertainty may exist around organizational responsibility for long-term access, maintenance and storage of electronic mitigation deliverables (e.g. costs to maintain Story Maps through time).

Acquisition Process Step: Scope; Budget and Engagement; Stewardship.

Stewarding purchased property includes dealing with illegal dumping, graffiti and vandalism, adjacent landowner complaints, illicit activities, invasive plant management, trespassing and other issues. It is challenging to predict what challenges managing a property will entail, creating a potential funding/resource gap that acquisition implementers have to navigate.

Acquisition Process Step: Scope; Budget and Engagement; Purchase.

Acquisition implementers relying on grant funds to complete property acquisition are running into significant funding gaps caused by differences in property valuation at the time of grant application vs. time of grant award sometimes multiple years later. The real estate market remains competitive in many locations across Washington State, meaning that property targeted for acquisition may rapidly increase in value year over year. Even with budget contingencies built into grant applications, some acquisition implementers still face significant gaps in funding leading to inability to complete property acquisition.

Acquisition Process Step: Scope; Budget; and Engagement; Purchase.

Federal and state law require funders to ensure grant recipients comply with the URA. Local governments with eminent domain and other authorities are also required to comply with the URA. Properties purchased from willing sellers are considered voluntary transactions and the seller is not eligible for relocation. However, any tenant that qualifies as a displaced person is eligible for relocation per an approved relocation plan. A tenant is a person who has the temporary use and occupancy of real property owned by another. A tenant may have a residential or business use on the property. Relocation can slow down or even prevent acquisition completion.

Working through relocation requires special expertise. Acquisition practitioners often have to work with relocation specialists to make sure compliance with the URA is done correctly. Practitioners who don’t hire relocation specialists may struggle greatly to achieve URA compliance.

Each person/business which needs to be relocated presents unique, individual challenges. Factors that can impact relocation success for tenants include: current income, credit score, rental history, criminal justice system involvement, pets, equivalent housing, schools, etc.

Acquisition Process Step: Scope, Budget and Engagement; Stewardship.

Acquisition implementers have to carefully choose funding sources for property acquisitions to ensure the intended long-term use of the property will be compliant with the funders requirements. For example, some funding sources may not allow any development on a property post-acquisition, including infrastructure such as a setback levee which can prevent restoration or flood control actions from being completed.

Acquisition Process Step: Scope; Budget and Engagement; Purchase.

Houses, garages, barns, outbuildings, other structures, and associated utilities and foundations are often demolished before a property can be fully restored or held for long-term stewardship. Common demolition tasks include: well decommissioning, storage tank removal, septic/sewer removal, asbestos removal, solid-waste disposal, etc. Each of the demolition tasks may present unknown challenges that come with cost or time delays.

Acquisition Process Step: Scope, Budget and Engagement; Purchase.

Property acquisition may require funds from multiple agencies/sources, each with its own set of requirements. Acquisition implementers often have to balance the competing needs of each funder which can cause administrative burden causing time delays and/or incurring unanticipated costs. Known issues that frequently come up for acquisition implementers working with multiple funding sources include: conservation instrument negotiation, paying over fair market value, demolition constraints, long-term property management constraints, incompatible post-acquisition land uses, etc.

Acquisition Process Step: Purchase; Stewardship.

Floodplain management grants deal with voluntary property acquisition, working with willing sellers only. In accordance with Title 8 RCW, there are justifiable reasons why the State, a City or County may acquire property through eminent domain related to needed floodplain management activities. Funders may not allow otherwise grant-eligible activities on properties where eminent domain authority was utilized due to political or other perceived risks. In these situations, acquisition implementers may find themselves unable to move forward on stewardship actions after acquisition.

Acquisition Process Step: Community Vision and Goals

Property acquisition leading to demolition of structures may result in the loss of tax revenue. If enough structures are demolished in one community over time, significant tax revenue could be lost creating financial hardship for the community or for the government now responsible for stewarding the land.

Acquisition Process Step: Community Vision and Goals

When there are 2 million homes already in high risk of flooding and an estimated 500,000 more homes will be added over the next 20 years, what is the state strategy to address this fundamental issue knowing flood damages will continue to increase exponentially?

Acquisition Process Step: Entire Acquisition and Easement Process

The overall understanding of what is required to successfully acquire and manage a property from the beginning will help: 1) secure appropriate expertise at key junctures; 2) more closely budget and plan timing ; and 3) result in less adapting, changes and modifications.

Acquisition Process Step: Who

The length of time from when a landowner expresses interest in selling and when funds become available can be two to four years. This length of time results in some landowners selling to other private owners or developers. It also can be preferential to landowners who have the resources and flexibility to wait. These factors become especially important following a flood disaster.

Acquisition Process Step: Who, Scope, Budget and Engagement; Purchase; Stewardship.

Property acquisition involves working with people from all walks of life with different needs. Each person who needs to be relocated presents unique, individual challenges that have to be handled with care. Acquisition implementers engaging with landowners may not be skilled/ trained in social services or engagement, presenting challenges to dealing with landowners/tenants who may require care and services beyond what is available from the acquisition implementer.

Acquisition Process Step: Purchase

Property acquisition may require funds from multiple agencies/sources, each with its own set of requirements. Acquisition implementers often have to balance the competing needs of each funder which can cause administrative burden causing time delays and/or incurring unanticipated costs. Known issues that frequently come up for acquisition implementers working with multiple funding sources include: conservation instrument negotiation, paying over fair market value, demolition constraints, long-term property management constraints, incompatible post-acquisition land uses, etc.