UPPS 08.04.01 - Real Property Acquisitions

POLICY STATEMENT

Texas State University is committed to ensuring all real property purchases adhere to applicable laws and maximize strategic value, and responsibly managing resources for the long-term benefit of the university community.

1. SCOPE

   1. This policy statement describes the process for acquiring real property.

2. DEFINITIONS

   1. Acquisition of Real Property – includes the gifts of real property regardless of the value of the property, as specified in Chapter III Section 1. (12)1 of TSUS Rules and Regulations.

   2. Market Analysis – consists of the study of the value of the real property under consideration for acquisition. Market analysis can include real estate appraisals, as prescribed in Texas Administrative Code, Title 10, Part 1, Chapter 11, Subchapter D, Rule 11.303. Market analysis can also consist of additional consultant studies or appraisals used to assess the market value of the real property under consideration.

   3. Real Property – the asset of land and any improvement, such as buildings, for which specific Texas Higher Education Coordinating Board (THECB) procedures are prescribed, as outlined in Texas Administrative Code, Title 19, Part 1, Chapter 17, Subchapters B and F. The Texas State University System (TSUS) Board of Regents established rules for real estate acquisitions, as specified in Chapter III, Section 1.(13)1, TSUS Rules and Regulations.

3. IDENTIFICATION OF APPLICABLE LAW AND RELATED BOARD POLICY

   1. Under Texas Education Code, Chapter 61, Section 61.0572, THECB is required to, “assure efficient use of construction funds and the orderly development of physical plants to accommodate projected college student enrollments.”

   2. Under Texas Administrative Code, Title 19, Part 1, Chapter 17, Subchapter B, Rule 17.20(a)(3), “improved real property purchases that the institution intends to include in the E&G buildings and facilities inventory if the purchase price is more than $1,000,000,” shall be submitted for THECB review.

   3. Under Texas Education Code, Chapter 95, Section 95.31, “The board may acquire land, including the improvements thereupon, needed for the proper operation of a system university.”

   4. Under Texas Education Code, Chapter 95, Section 95.30, “the board has the power of eminent domain to acquire for the use of the system universities the lands necessary and proper for carrying out their purposes, in the manner prescribed in Title 4, Chapter 21, of the Property Code.”

   5. Texas Education Code, Chapter 51, Section 51.9045 prohibits an institution of higher education from using eminent domain to acquire land to be used for a lodging facility or for parking or a parking structure intended to be used in connection with the lodging facility. “Lodging facility” is defined to exclude a dormitory or other student housing.

   6. The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, provides for uniform and equitable treatment of persons displaced from their homes, businesses, or farms by federal or federally-assisted programs. This act also establishes uniform and equitable land acquisition policies for federal and federally-assisted programs.

   7. Under TSUS Rules and Regulations Chapter III, Section 1. (13)1, the TSUS Board of Regents:

      1. delegates authority to the president to purchase, exchange, or sell real property valued up to $500,000, provided the vice chancellor and The TSUS general counsel has approved the operative documents as to legal form;

      2. delegates authority to approve a purchase, exchange or sale, or easement on real property valued up to $3,000,000 to the chancellor, provided the vice chancellor and the TSUS general counsel has approved the operative documents as to legal form; and

      3. retains approval of all real property transactions valued at $3,000,000 and above.

4. PROCEDURES FOR THE OVERALL COORDINATION OF THE ACQUISITION PROCESS

   1. All acquisitions of real property, whether by purchase, lease, or other means, will be coordinated through the Office of the EVPO/CFO. The EVPO/CFO will oversee all phases of the acquisition as outlined in this university policy and procedure statement. All material documents regarding any aspect of completed acquisitions will be maintained by the assistant vice president for Financial Reporting & Planning (AVPFRP), including studies, meeting minutes, and memoranda. If the acquisition is not completed, the prospective property files will be maintained for a period of 10 years.

   2. The president will review each potential acquisition. Pursuant to the rules of the Board of Regents, the president will present for approval to the chancellor and Board of Regents those proposed acquisitions within their authority, and make all analyses, appraisals, business plans, and due diligence studies available to the chancellor and Board of Regents.

   3. During the acquisition process, Texas State elects that appraisal figures will be held in confidence and not released publicly. The requiring of appraisals in no way obligates the institution to release the figures to property owners during the acquisition process. The EVPO/CFO may authorize release of an appraisal to a property owner if the EVPO/CFO determines that release of the appraisal will facilitate negotiations.

5. PROCEDURES FOR INITIATING THE ACQUISITION PROCESS

   1. Any action taken to acquire real property through a purchase or lease type transaction will be referred to the EVPO/CFO to initiate the acquisition process. The Office of the EVPO/CFO will review the Campus Master Plan and determine if the real property under consideration is appropriate for acquisition.

   2. Master Plan Acquisitions

      1. If the property is in the Campus Master Plan, the AVPFRP will develop justification of the acquisition, proposed terms for the transaction, and report the findings for purchase to the associate vice president for Budget and Planning (AVPBP) for presentation to the EVPO/CFO.

      2. The EVPO/CFO will determine if funding is available and seek approval from the president to proceed with negotiations with the property owner.

      3. If the proposed acquisition exceeds the threshold for independent authorization under TSUS rules, the president will contact the chancellor and will advise of the negotiations and planned offer.

   3. Non-Master Plan Acquisitions

      1. If the property is not in the Campus Master Plan, strong justification supporting the acquisition will be required from the AVPFRP and must be included in the report delivered to the EVPO/CFO, as outlined in Section 05.02 a.

      2. The EVPO/CFO will, in conference with the president, determine if the property could be of interest to Texas State. If it is determined that the property is of interest, and funds are available, the EVPO/CFO will present the item with relevant justification and a recommendation for consideration to the president.

      3. If the proposed acquisition exceeds the threshold for independent authorization under TSUS rules, the president will contact the chancellor and advise of the planned negotiations and potential offer.

   4. The Office of the EVPO/CFO will review funding to determine if any federal funds will be used to acquire the property. If federal funds are involved, the EVPO/CFO will facilitate compliance with the federal requirements listed in the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970.

6. REVIEWERS OF THIS UPPS

   1. Reviewers of this UPPS include the following:

      Position	Date
      Associate Vice President for Budget and Planning	November 1 E5Y
      Executive Vice President for Operations and Chief Financial Officer	November 1 E5Y

7. CERTIFICATION STATEMENT

   This UPPS has been approved by the following individuals in their official capacities and represents Texas State policy and procedure from the date of this document until superseded.

   Associate Vice President for Budget and Planning; senior reviewer of this UPPS

   Executive Vice President for Operations and Chief Financial Officer

   President