Real Property

Real Property 5. Allowable costs include the costs of: A. Land acquired in fee simple title or by easement, from a willing seller, for: (i) Water supply and/or storage purposes; (ii) A consolidation project; and (iii) Protection of the source water of the system from contamination. B. Preparation of the treatment works site before, during and, to the extent agreed on in the Grant agreement, after building. These include the cost of: (i) Demolition of existing structures on the treatment works site (including rights-of-way) if building cannot be undertaken without such demolition. Demolition of existing structures on the treatment works site (including rights-of- way), when not required for building the project, will be considered to be an allowable cost only if the existing structures constitute a real and present hazard to safety, public health, or water quality and when the hazard can best be abated by the removal of the existing structures. (ii) Removal, relocation, or replacement of utilities, provided the Grant recipient is legally obligated to pay for such as a result of the ARPA RWAIG project under state or local law. (iii) Restoration of streets and rights-of-way to their original condition. The need for such restoration shall result directly from the construction of the ARPA RWAIG project and is generally limited to repaving the width of trench. 6. Unallowable costs include the costs of: A. Any amount paid by the Grant recipient for eligible land in excess of the appraised value or the Grant recipient's record of negotiation. An amount higher than the appraised value may be found allowable if the Grant recipient provides sufficient written documentation to the Department and receives allowability approval prior to the actual acquisition. B. Removal, relocation or replacement of utilities located on land by privilege, such as a franchise, unless the Grant recipient is required to pay such costs under state or local law. C. Land acquired in fee simple title or by easements for land other than that described under H.(1)(a) above, such as easements for the purpose of water distribution system expansion or improvement. Acquiring all or part of an existing publicly or privately owned drinking water treatment works. D. The demolition of an existing structure for the convenience of the owner as a means of increasing property value or property use.