This chapter sets forth requirements for acquiring real property for programs or projects which real property is required to construct, operate, and maintain the program or project.

1. (1) Expeditious acquisition. The agency shall make every reasonable effort to acquire the real property expeditiously by negotiation.

2. (2) Notice to owner. As soon as feasible, the agency shall notify the owner in writing of the agency's interest in acquiring the real property and shall provide the owner information regarding the basic protections provided by law and this section.

   In the case of a condominium, common interest community, or other types of housing with common or community areas, notification must be provided to the appropriate parties as stated in the declaration. The appropriate parties could be a condominium, unit, or homeowner's association board, a designated representative, or all individual property owners when common or community held property is being acquired for a project.

3. (3) Establishment and offer of just compensation. Before the initiation of negotiations, the agency shall establish an amount which it believes is just compensation for the real property. The amount shall not be less than the approved appraisal or waiver valuation of the fair market value of the property, taking into account the value of allowable damages or benefits to any remaining property. An agency official must establish the amount believed to be just compensation. Promptly thereafter, the agency shall make a written offer to the owner or the designated owner's representative to acquire the property for the full amount believed to be just compensation.

4. (4) Summary statement. Along with the initial written purchase offer required in subsection (3) of this section, the owner or the designated owner's representative shall be given a written statement of the basis for the offer of just compensation, which must include:

   1. (a) A statement of the amount offered as just compensation. In the case of a partial acquisition, the compensation for the real property to be acquired and the compensation for the damages, if any, to the remaining real property shall be separately stated.
   2. (b) A description and location identification of the real property and the interest of the real property to be acquired.
   3. (c) An identification of the buildings, structures, and other improvements (including removable building equipment and trade fixtures) which are included as part of the offer of just compensation. Where appropriate, the statement shall identify any other separately held ownership interest in the property, e.g., a tenant-owned improvement, and indicate that such interest is not covered by this offer.
5. (5) Basic negotiation procedures. The agency shall make all reasonable efforts to contact the owner or the owner's designated representative and discuss its offer to purchase the property, including the basis for the offer of just compensation and explain its acquisition policies and procedures, including the payment of incidental expenses in accordance with WAC 468-100-107. The owner shall be given a reasonable opportunity to consider the offer and present material which the owner believes is relevant to determining the value of the property and to suggest modification of the proposed terms and conditions of the purchase. The agency shall consider the owner's or the designated owner's representative's presentation.
6. (6) Updating the offer of just compensation. If the information presented by the owner, or a material change in the character or condition of the property, indicates the need for a new appraisal(s) or waiver valuation, or if a significant delay has occurred since the time of the appraisal(s) or waiver valuation of the property, the agency shall have the appraisal(s) or waiver valuation updated or obtain a new appraisal(s) or waiver valuation. If the latest appraisal or waiver valuation information indicates that a change in the purchase offer is warranted, the agency shall promptly reestablish just compensation and offer that amount to the owner in writing.
7. (7) Coercive action. The agency shall not advance the time of condemnation, or defer negotiations or condemnation, or the deposit of funds into the court, or take any other coercive action to induce an agreement on the price of the property to be paid.
8. (8) Administrative settlement. The purchase price for the property may exceed the amount offered as just compensation when reasonable efforts to negotiate an agreement at that amount have failed and an authorized agency official approves such administrative settlement as being reasonable, prudent, and in the public interest. A written justification shall be prepared, which states what available information, including trial risks, supports such a settlement.

9. (9) Payment before taking possession. Before requiring the owner to surrender possession of the real property, the agency shall pay the agreed purchase price to the owner, or in the case of a condemnation, deposit with the court, for the benefit of the owner, an amount not less than the agency's approved appraisal of the fair market value of such property, or the court award of compensation in the condemnation proceeding for the property.

   In exceptional circumstances, such as an emergency project, when there is no time to make an appraisal and offer, with the prior approval of the owner or the owner's designated representative, the agency may obtain a right-of-entry for construction purposes before making payment available to an owner.

10. (10) Uneconomic remnant. If the acquisition of only a portion of a property would leave the owner with an uneconomic remnant, the agency shall offer to acquire the uneconomic remnant along with the portion of the property needed for the project.
11. (11) Inverse condemnation. If the agency intends to acquire any interest in real property by exercise of the power of eminent domain, it shall institute formal condemnation proceedings and not intentionally make it necessary for the owner to institute legal proceedings to prove the fact of the taking of the real property.
12. (12) Fair rental. If the agency permits a former owner or tenant to occupy the real property after acquisition for a short term, or a period subject to termination by the agency on short notice, the rent shall not exceed the fair market rent for such occupancy.
13. (13) Conflict of interest. Persons functioning as a negotiator shall not supervise the valuation professional, except as provided for in WAC 468-100-103(5).

[Statutory Authority: RCW 8.26.085. WSR 26-11-009, s 468-100-102, filed 5/11/26, effective 6/11/26. Statutory Authority: Chapter 8.26 RCW. WSR 07-21-057, § 468-100-102, filed 10/11/07, effective 11/11/07; WSR 06-02-068, § 468-100-102, filed 1/3/06, effective 2/3/06. Statutory Authority: Chapter 8.26 RCW and WSR 89-17-048 (Order 121). WSR 01-02-027, § 468-100-102, filed 12/22/00, effective 1/22/01. Statutory Authority: Chapter 8.26 RCW. WSR 89-17-048 (Order 121), § 468-100-102, filed 8/14/89, effective 9/14/89.]