70-31-301. Appraisal, negotiation, and other condemnation policies mandated. An agency that acquires real property for a program or project (for which federal financial assistance will be available to pay all or any part of the cost of the program or project) shall comply with the following policies:
     (1) The agency shall make every reasonable effort to expeditiously acquire real property by negotiation.
     (2) Real property must be appraised before the initiation of negotiations, and the owner or the owner's designated representative must be given an opportunity to accompany the appraiser during the appraiser's inspection of the property. The head of the agency may prescribe a procedure to waive the appraisal in cases involving the acquisition by sale or donation of property with a low fair market value.
     (3) Before the initiation of negotiations for real property, an amount must be established that is reasonably believed to be just compensation for the property or interest taken, and that amount must be offered for the property. The amount may not be less than the approved appraisal of the fair market value of the property. Any decrease or increase in the fair market value of real property prior to the date of valuation caused by the public improvement for which the property is acquired or by the likelihood that the property would be acquired for the improvement, other than an amount due to physical deterioration within the reasonable control of the owner, must be disregarded in determining the compensation for the property. The owner of the real property to be acquired must be provided with a written statement of and summary of the basis for the amount established as just compensation. When appropriate, the just compensation for the real property acquired and for damages to remaining real property must be separately stated.
     (4) An owner may not be required to surrender possession of real property before the agreed purchase price is paid or before there is deposited with the court, in accordance with applicable law, for the benefit of the owner, an amount not less than the approved appraisal of the fair market value of the property or the amount of the award of compensation in the condemnation proceeding of the property.
     (5) The construction or development of a program or project (for which federal financial assistance will be available to pay all or any part of the cost of the program or project) must be scheduled so that, to the greatest extent practicable, a person lawfully occupying real property is not required to move from a dwelling (assuming a replacement dwelling will be available) or to move the person's business or farm operation without at least 90 days' written notice of the date by which a move is required.
     (6) If an owner or tenant is permitted to occupy the real property acquired on a rental basis for a short term or for a period subject to termination by the acquiring agency on short notice, the amount of rent required may not exceed the fair rental value of the property to a short-term occupier.
     (7) The time of condemnation may not be advanced, negotiations or condemnation and the deposit of funds in court for the use of the owner may not be deferred, and any other action coercive in nature may not be taken to compel an agreement on the price to be paid for the property.
     (8) If an interest in real property is to be acquired by exercise of the power of eminent domain, formal condemnation proceedings must be instituted as provided in Title 70, chapter 30. The acquiring agency may not intentionally make it necessary for an owner to institute legal proceedings to prove the fact of the taking of the owner's real property.
     (9) If the acquisition of only part of the property would leave its owner with an uneconomic remnant, an offer to acquire the uneconomic remnant must be made.
     (10) A person whose real property is being acquired may, after being fully informed of the person's right to receive just compensation, donate to an agency the property, any interest in the property, or any compensation received for the property.

     History: En. Sec. 11, Ch. 3, 2nd Ex. L. 1971; R.C.M. 1947, 93-9937; amd. Sec. 5, Ch. 374, L. 1989; amd. Sec. 85, Ch. 125, L. 2001.