70-31-305. Acquisition of buildings and improvements affected. (1) When any interest in real property is acquired for a program or project for which federal assistance will be available to pay all or any part of the cost of the program or project, the acquiring agency shall acquire an equal interest in all buildings, structures, or other improvements that are located upon the real property acquired and that are required to be removed from the real property or that the acquiring agency determines will be adversely affected by the use to which the real property will be put.

(2) For the purpose of determining the just compensation to be paid for any building, structure, or other improvement required to be acquired by subsection (1), the building, structure, or other improvement is considered to be a part of the real property to be acquired notwithstanding the right or obligation of a tenant, as against the owner of any other interest in the real property, to remove the building, structure, or improvement at the expiration of the tenant's term. The fair market value that the building, structure, or improvement contributes to the fair market value of the real property to be acquired or the fair market value of the building, structure, or improvement for removal from the real property, whichever is the greater, must be paid to the tenant.

(3) Payment for buildings, structures, or improvements as set forth in subsection (2) may not result in duplication of any payments otherwise authorized by state law. A payment may not be made unless the owner of the land involved disclaims all interest in the improvements of the tenant. In consideration for any payment, the tenant shall assign, transfer, and release all of the tenant's right, title, and interest in and to the improvements. Subsection (2) or this subsection may not be construed to deprive the tenant of any rights to reject payment and to obtain payment for the property interests in accordance with other laws of the state.