Office of Planning, Environment, & Realty (HEP)
Planning • Environment • Real Estate
Reference examples of acceptable and non acceptable organizational/supervisory arrangements
Notes:
SUBPART B Reference § 24.102(n)
Supervision of Appraisers
The following are examples of organizational structures that do and that do not comply with new regulatory requirements. (Reference § 24.102(n) and Appendix A.) The Federal funding agency may waive the organizational structure requirement if it would create a hardship for the acquiring agency due to insufficient staffing.
There are three elements of this requirement to minimize the risk of fraud while allowing agencies to operate as efficiently as possible.
Neither the appraiser, review appraiser or valuer (waiver valuation) shall have any interest in the property being valued.
No person functioning as a negotiator can supervise or formally evaluate the performance of any appraiser or review appraiser. This relates directly to the following examples.
The same person can, however, prepare a value estimate and negotiate that acquisition, if the valuation amount is $10,000 or less. (Or not to exceed $25,000 if a programmatic waiver is approved.)
The following examples will deal with the requirement described in the second bullet above.
