Sec. 04.02.02.01. Policy

A. This regulation does not apply to property to be acquired in connection with State roads, bridges, or highways.

B. Before any real property is acquired from a private owner, who occupies a dwelling there as his principal residence, the Office of Real Estate, Department of General Services, the Department of Transportation, or any of its modal administrations, may offer the owners a life estate in a portion of that property.

C. The value of the life estate, as determined by the Office of Real Estate, the Department of Transportation, or any of its modal administrations, is the amount equal to the agreed upon price of the total property, less a discount based upon the value of the life estate portion and the age of the youngest owner of record of the property. If the property is obtained through condemnation, the State shall pay the owner, or owners, a price equal to the inquisition for the total property, less a discount based upon the value of the life estate portion and the age of the youngest owner of record of the property. The discount will be determined by the Office of Real Estate, the Department of Transportation, or any of its modal administrations, by multiplying the agreed upon price or amount established by the condemnation inquisition for the life estate portion, that is, the residence, related improvements and the property which will be occupied and maintained by the former owner, or owners, by a valuation factor derived from computations using mortality tables and ages of the youngest owner, called Life Estate Valuation Table as approved by the State Board of Public Works.

D. The actual consideration to be paid for any real property subject to a life estate is subject to final approval by the Board of Public Works.