Section 4.5.5

4.5.5. Limits of the Scope of the Project Rule.The scope of the project rule “is designed to ensure that the landowner is neither hurt nor helped in a takings valuation by any action done by the Government within the scope of the project leading to the taking.” 701 The scope of the project rule applies only to changes in value attributable to the government’s project: the rule does not allow an appraiser to disregard changes in value attributable to other factors.702 For this reason, changes in value prior to the date of valuation due to physical deterioration within the landowner’s reasonable control must be considered.703 Similarly, the scope of the project rule does not permit the appraiser to ignore market realities beyond the government project. 704 It also bears noting that the requirement to consider the government project’s direct and special benefits to remainder property in partial acquisitions (discussed in Section 4.6) does not conflict with the scope of the project rule.705 Rather, as the Fifth Circuit explored at length in 320 Acres, these requirements stem from the same underlying principles.706