NEW USPAP APPRAISAL REQUIREMENTS
The Appraisal Standards Board adopted the [NEW] 2014-15 edition of the Uniform Standards of Professional Appraisal Practice, commonly known as USPAP, in February of 2013. These changes were effective 1 January 2014. As of that date there is no longer a self-contained appraisal or a summary appraisal. There are now two report options:1)Appraisal Reports and 2)Restricted Appraisal Reports.
The current Self-Contained Appraisal Report BRC has been requesting is not an option in the 2014-15 USPAP. Therefore, BRC has developed some guidelines to help guarantee that we get consistent “Appraisal Reports” for our funding source requirements.
Appraisal Reports submitted for DCNR/Bureau of Recreation & Conservation grants need to also include the following within the report:
1.Clear documentation for the Highest and Best Use (HBU) – does the property – as is – support the HBU?
Contain a clear HBU which gives all the possible legally permissible uses, physically possible and the ones that are not, and then narrowing the financially feasible and clearly explaining why and finally which one of these is going to be the maximally productive or bring the highest price.
2.Clear documentation/support and explanation of how adjustments were made. Provide narrative or reasoning & analyses/rationale for the conclusion of the opinion of value.
Show “proof” of adjustment (pairings). We are interested in facts and an explanation of why the adjustment was important and how it was determined.
3.Location Map and Photos:
For subject property include a map in the body of the report to clearly show the location of the property and surrounding area. Include photos and label where they were taken and from what direction. For comps include location maps in the Addenda.
4. Land Sales Data Sheet For Each Comparable : property location (address, township & county); grantor; grantee; date of sale; deed reference; map reference #; consideration; sales or financing conditions; land size; price per acre; legal means of access; zoning; flood plain or wetlands; present use; utilities; topography; shape; property rights; terms of sale; verification; and notes or comments.
5.Zoning Ordinances: Explain the zoning and permitted uses in the body of the report and include the Zoning Ordinance in the Addenda.
6.Flood Zone:
Include a copy of the Flood Zone Map for the subject and comparable properties if applicable. The location of a flood zone within the subject and comparable properties should be included in the adjustment evaluations.
7. Addenda:
In addition to the normal items required here and items addressed above, include a copy of the current deed.
Note: This does not affect the Uniform Appraisal Standards for Federal Land Acquisitions (UASFLA), also known as the “Yellow Book Appraisal” used for land that includes federal funding sources.