WSP09082

• File Number: 8142
• Description: Trinidad Project
• Basin: Arkansas
• Water Division: 2
• Date: 10/1/1966
• Title: Land Acquisition Procedure - Trinidad Reservoir
• Water Supply Pro - Doc Type: Publication

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;,,,,,,,'ITLE CLEA.RANCE
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tain special provisions wi th'0\pect to gain.
deri ved from the sale of ~'Kl estate, in-
cluding sales made to the Government. The
application of these provisions should be
referred to the local Collector of Internal
Revenue .

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In some cases, the law requires that the
Attorney General of the United States approve
the title to an oVller's land before it can be
bought by the Government. If the Attorney
General finds defects in the title and it can't
be taken care of otherwise, the Government can-
not :pay the owner izmnediately for the property
but Will be required to file a cond.emnation
proceeding. When condemnation proceedings are
Instituted only for Clearing of the title,
"there is usually little for the landowner to
do except to cooperate With the Government
attorney to the extent he can in correcting
the defects found to exist. In cases where an
agreement has been rea.ched with the Govermnent,
the Court is told that the owner has accepted
the Government's offer, and the Court will not
change the price but will clear up the title at
no cost to the ov.ner.

RESERVATION OF IMPROVEMENTS

In same cases only a part of an owner I s
property is required for the project, and the
taking of this part may leave the remainder
less valuable than it "",s.before. In this case
the owner will be :paid not only for the
value of the property acquired, but also for
:the reduction in value of the remaining prop-
erty. Tais is called. lIseverance damage. II As a
general proposition, that portion of the pur-
chase price represented by the severance damage
is not subject to Federa.l income tax.. Wnere
severance d.ama.ge does occur, it is necessary
that the owner furnish proof to the Collector
of Internal Revenue as to what portion of the
.purchase price is severance dam9.ge.

Except in the fe"wl rare instances where the
~overnment needs one or more of the buildings
~n connection With the project, the owner
may salva~ the buildings or improvements an
the property. He is not required to do so.
The appraised sa.lvage value of the improvements
W'ill be deducted from the Government' B payment
for lands acquired. The improvements will be
removed from the project area within a speci-
fied date. The reservation of improvements ~
be included as an item in the option for the
purchase of the property. Owners Will be en-
couraged to reserve graVing crops except in
rare cases where there is a probability that
~os8esBion of the land wi11 be required prior
to the harvest season. If this occurs, addi-
tional :payment will be made for the fair value
of the growing crops a. they exist at the time
the Govermnent takes possession of the land.

The Bureau has certain regulations per-
taining to the repurchase or reinvestment in
real estate using funds paid by the Gove.rnJJlent
for land acquired for public works projects.
This may be of importance to you and should
be investigated if you plan to reacquire real
estate to replace that sold to the Government.

OORPS OF ENGINEERS ASSISTANCE TO LANDOWNERS

MOVDlG 006TS

In carrying out the river control and
development work assigned by Congress, the
Corps of Engineers strives earnestly to acquire
lands necessary for reservoirs in a fair and
equitable manner. It is necessa.rily restricted
to methods and procedures established by law.

The District Engineer and his staff
assigned to land acquisition are always de-
sirous of providing every assistance possible
for tbe benefit of landowners. All affected
landowners aDd tenants are urged to contact
this office at the address below for any
assistance they may desire 1n regard to their
pa~lcular situation:

Property owners and tenants will be reim-
~ursed for expenses and certain costs which
they incur as a direct result of moving them-
selves, their families and possessions because
of the acquisition of their land. The owner
or tenant must make application for such pay-
ment within one year from the date the Govern-
ment takes title to their land or from the date
they vacate the premises, whichever is latere
The law, however, prOVides that the total
amount of reimbursement to be paid to the
owners and tenants, or any parcel of land ac-
quired, shall in no event exceed 25 per cent of
the Government appraised value of the land.
The Government representat1 ve will explain the
details of :payment for moving costs at the time
~roperty oYnera are contacted for purchase of
lands.

District Engineer
U. S. Army Engineer District, Albuquerque
Corps of Engineers
P.O. Box 1580
517 Gold Avenue S. W.
Albuquerque, New Mexico 87103

PROJECT OFFICE

INCOME ThX :?!IO'ITS IOli3

In the interest of economy and convenience
to affectad property owners, it is planned to
open a Resl Estate Project Office in Trinidad
COlorado, during 1967, at such time as acqUisi:
tion of lands for the Reservoir area. will
begin.. Personnel at the Project Office will
.handle the details of acquiring project Lshds
land will render assistance to property o~ers
jin matters pertaining to the real este.,te pro-
Igram. Location and date of opening will be
lannounced at such time as the office is opened.

Responsibility for the a.dministration of
the Federal Income Te.x Laws rests with the
:Bureau of Internal Revenue, Treasury Depart-
ment. -As presently 'Written, these laws con-