EFFECTS OF PROPOSED HIGHWAY IMPROVEMENTS ON PROPERTY VALUES

THE DATE OF VALUATION OF PROPERTY ACQUIRED BY PUBLIC AGENCIES IS NORMALLY THE SAME AS THE DATE OF TAKING OF SUCH PROPERTY. DUE TO PROPOSED PUBLIC IMPROVEMENTS, OR THE ANNOUNCEMENT THEREOF, THERE MAY BE ENHANCEMENT OR DIMINUTION IN VALUE OF THE PROPERTY TAKEN. THIS CHANGE IN VALUE MAY COME ABOUT BECAUSE THE PROPERTY IS UNDER THREAT OF CONDEMNATION OR BECAUSE THERE IS EXCESSIVE SPECULATION AND CHANGE IN OWNERSHIP OF SURROUNDING PROPERTIES RESULTING FROM KNOWLEDGE OF THE PENDING PUBLIC IMPOVEMENT. ENHANCEMENT OCCURS WHEN KNOWLEDGE OF THE PENDING IMPROVEMENT APPRECIATES THE PROPERTY VALUE PRIOR TO THE ACTUAL TAKING OF SUCH PROPERTY. CONVERSELY, DIMINUTION OCCURS WHEN THE PENDING HIGHWAY IMPROVEMENT DEPRESSES THE VALUE OF THE PROPERTY. THE GENERAL OBJECTIVES OF THIS RESEARCH WERE TO (1) ASSEMBLE AND OVERVIEW STATUTORY AND CASE LAW ON THE SUBJECT OF ENCHANCEMENT AND DIMINUTION, (2) STUDY THE VALUATION AND LEGAL PROBLEMS INVOLVED, (3) DEVELOP ALTERNATIVE LEGAL AND VALUATION METHODS, AND (4) PRESENT CASE STUDIES TO DEMONSTRATE THE EFFECT OF SUCH CHANGE IN VALUE. BASIC PRINCIPLES OF VALUATION PRACTICE ARE DESCRIBED, FACTORS THAT CAUSE ENCHANCEMENT OR DIMINUTION IN VALUE ARE IDENTIFIED, AND THE IMPACT OF CONDEMNATION ON MARKET VALUE OF REAL PROPERTY IS DISCUSSED. STATUTORY AND CASE LAW PROVISIONS BEARING ON THE SUBJECT ARE ALSO IDENTIFIED. INTERVIEWS WERE CONDUCTED, WITH A SELECTED SAMPLING OF HIGHWAY DEPARTMENT PERSONNEL, AND CERTAIN PARCELS WERE PERSONALLY INSPECTED BY THE RESEARCH TEAM TO IDENTIFY THEIR CHARACTERISTICS AS THEY MAY APPLY TO THE STUDY. THE REPORT CONTAINS A COMPREHENSIVE TABLE OF STATUTORY EMINENT DOMAIN PROVISIONS FOR THE 50 STATES AS PERTAINING TO MARKET VALUE ENHANCEMENT, AND DIMINUTION. THE CONCLUSIONS INCLUDE AN IDENTIFICATION OF THE ADVANTAGES AND DISADVANTAGES OF ALTERNATIVES PROPOSED TO REDUCE THE PROBLEM OF ENHANCEMENT AND DIMINUTION. THE ASSIGNMENT INDICATED THAT PARTICULAR ATTENTION WAS TO BE GIVEN TO THE STATUTE AND EXPERIENCE IN MINNESOTA, ALABAMA, TEXAS, AND CALIFORNIA, AS REPRESENTATIVE OF FOUR OTHER REGIONS OF THE COUNTRY WERE EXAMINED IN MORE DETAILED. ALTHOUGH CASE LAW WAS INVESTIGATED IN THESE FIVE STATES, THE AGENCY DID NOT EXCLUDE READILY IDENTIFIABLE CASE LAW IN ANY OTHER STATE DURING THE COURSE OF THE STUDIES. /NCHRP/

  • Availability:
  • Supplemental Notes:
    • ProJ 11-1 (1), 42 PP, 1 FIG, 2 TAB, 34 REF, 5 APP
  • Authors:
    • Miller, S F
  • Publication Date: 1971

Media Info

  • Serial:
    • NCHRP Report
    • Issue Number: 114
    • Publisher: Transportation Research Board
    • ISSN: 0077-5614

Subject/Index Terms

Filing Info

  • Accession Number: 00200886
  • Record Type: Publication
  • Files: TRIS, ATRI
  • Created Date: Oct 3 1971 12:00AM