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Office of Planning, Environment, & Realty (HEP
49 CFR 24 - Non-Regulatory Supplements
Subpart B - Real Property Acquisition Criteria For Appraisals
|Federal-Aid Policy Guide
February 16, 2006, Transmittal 35
|NS 49 CFR 24B
APPRAISAL REVIEW (49 CFR 24.104 and Appendix A). Documentation standards for appraisal/appraisal review should be commensurate with the complexity of the appraisal problem. Review appraisers are expected to prepare an appropriate written explanation supporting the reviewer's estimate of fair market value.
When reconciling divergent appraisal reports or establishing an independent estimate of value, the review appraiser must provide a written explanation sufficient to convey the basis for the approved amount. Review appraisers should participate in the planning and scheduling of right-of-way activities, evaluation of fee appraisal proposals, and the evaluation of performance of staff and contract appraisers.
USE OF CONTRACT (FEE) REVIEW APPRAISERS (49 CFR 24.104). While Section 24.104 requires the agency to have an appraisal review process and a qualified review appraiser, it does not specifically address the status of the review appraiser, e.g., staff, contract, or fee review appraiser. Because the review appraiser's activity is closely connected with the offer to be made to the property owner on behalf of the acquiring agency (essentially amounting to a commitment of public funds), it is recommended and encouraged that the review appraiser should be a member of the staff of the acquiring agency with all the requisite authority and responsibilities of such public employment. Each funding agency decides whether to use fee review appraisers. If contract or fee review appraisers are permitted, an official of the acquiring agency must approve the estimate of just compensation before any offer to acquire is made.
APPRAISAL REVIEW REQUIREMENTS (49 CFR 24.104). The review appraiser must examine all agency appraisal requirements and address any items that fail to meet the requirements of the agency.
TECHNICAL APPRAISAL REVIEW (49 CFR 24.104). The requirements of the Uniform Standards of Professional Appraisal Practice (USPAP) apply to technical appraisal review, the type of review State Transportation Department review appraisers perform. The type of appraisal review conducted by the FHWA is not a technical appraisal review since FHWA realty specialists review appraisals as part of a program management activity, not for the purposes of establishing value.
LOW VALUE APPRAISAL REVIEWS (49 CFR 24.104). All appraisals must be reviewed, including those being handled by a single appraiser/negotiator.
REVIEW APPRAISER QUALIFICATION (49 CFR 24.104 (a)). The Federal requirements for review appraiser qualifications are found in 49 CFR 24.104 and 103(d)(1), where the acquiring agency is required to have an appraisal review process and, "A qualified review appraiser shall examine the presentation and analysis of market information in all appraisals.…" The agency determines what constitutes being a qualified review appraiser considering 24.103(d)(1) requirements.