Major transportation projects like airports and train stations need lots of operating space. In crowded urban areas, space is limited. The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 was created so that state or city governments or any other entities don't unjustly displace people living in homes when acquiring construction space. To be eligible for federal funds, fair market value appraisals must be taken and paid to those homeowners before the property can be acquired. The FTA must agree to those appraisals.
After the fair market value appraisal, a title search will be performed to ensure ownership. The staff at the FTA will review the appraisal and issue a written report stating what they believe is just compensation. Both parties must then agree before the organization managing the transportation project can make the offer to the owner.
Appraisals are not needed if the owner of the property is donating the property, the agency is not a state agency and does not have the right to acquire property by using eminent domain laws, or the fair market value is less than $10,000. The FTA still may ask for documentation that proves any of the above.
