Welcome to the Aug. 2009 edition of the Northwest Region Real Estate Services page. This month's topic deals with the potential confusion that can arise when a parcel file contains more than one Determination of Value.
Topic for this issue: "Approving the Determination of Value"
Recommendation: include the dollar amount of just compensation in the concurrence statement.
Why: plan changes and other factors sometimes mean that a parcel file will contain more than one DV. Experience has shown that while this shouldn’t be a problem, it sometimes leads to confusion.
In the pre-certification file review it has occasionally proven impossible to decipher which DV the agency is concurring with. A good diary sometimes makes it possible to sort things out (hint, hint), but not always.
Here’s a sample statement which you are welcome to adopt:
“The [agency official / title] of [name of agency] does hereby indicate concurrence with the above certification and with the recommended value of the property in the amount of $________, and does hereby authorize further action by _____________ to proceed with the acquisition of the designated property according to established procedures.”
Previous topic: “How Current are your Appraisals?”
Appraisals should always be current. The general rule of thumb is that an appraisal remains valid for up to six months. This assumes a generally stable real estate market; however, in a fast-changing market the case could be made for an even shorter shelf life.
Keep in mind that the federal regulations state that once an acquiring agency has an approved appraisal, it will make an offer to purchase "promptly thereafter." Therefore, if unusual circumstances arise where an offer must be delayed, the agency should carefully consider updating the appraisal. The governing regulation for doing so is found at 49 CFR 24.102(g):
“Updating offer of just compensation. If the information presented by the owner, or a material change in the character or condition of the property, indicates the need for new appraisal information, or if a significant delay has occurred since the time of the appraisal(s) of the property, the Agency shall have the appraisal(s) updated or obtain a new appraisal(s). If the latest appraisal information indicates that a change in the purchase offer is warranted, the Agency shall promptly reestablish just compensation and offer that amount to the owner in writing.”
Note that the last sentence addresses the need to reestablish just compensation. This is accomplished by having the updated appraisal reviewed, and having the agency add its written concurrence.
Featured project: the City of Everett recently completed its California Street Overcrossing. See below for before and after views of this important federally assisted project.
