Reference: rule and Appendix A
Administrative settlements refer to agreements reached where the just compensation amount is exceeded and is justified based on considerations other than the appraised value. Examples may involve risk of trial, recent court awards, appraisal/value elements that are hard to estimate, etc. This listing of possible justifications was deleted and only "trial risks" added. The reason for this change was that it would be impossible to create an all inclusive list that would cover every possible justification for an administrative settlement.
Again, this is not a new provision, but the itemization of possible justifications of a settlement were eliminated. Now the agency can consider anything relevant and provide the information on which the settlement was judged reasonable, prudent, and in the public interest. Also, there was a change to the documentation requirement.
Appendix A, § 24.102(i) Administrative settlement. This section provides guidance on administrative settlement as an alternative to judicial resolution of a difference of opinion on the value of a property, in order to avoid unnecessary litigation and congestion in the courts.
All relevant facts and circumstances should be considered by an agency official delegated this authority. Appraisers, including review appraisers, must not be pressured to adjust their estimate of value for the purpose of justifying such settlements. Such action would invalidate the appraisal process.