Define low value up to $10,000:
Increased from $2,500.
Option available for up to $25,000:
Federal funding agency must approve.
Owner must be offered option for appraisal.
Prepare a waiver valuation.
Under § 24.102(c)(2)(ii), the agency has an option to determine whether an appraisal is necessary. If certain criteria are met, a simpler approach can be used. Although the prior regulation provided such use, it was limited to $2,500, while the new rule allows agencies to use any amount up to $10,000. This has to be both a business decision and one related to the market conditions in the project area. The maximum amount does not have to be used; any amount up to $10,000 could be adopted by the agency and included in its procedures.
The waiver of appraisals for amounts more than $10,000 is covered in § 24.102(c)(2)(ii)(C). That provision creates a programmatic option up to $25,000. It requires approval by the Federal funding agency and the owner must be offered the option for an appraisal. Implementation of the owner's consent to forgo an appraisal could be placed in the offer which is acknowledged by the owner. These practices should also be included in the agency's procedure manual if the agency uses a limit over $10,000.
For FHWA, Federal funding agency approval will be done by local division offices according to FHWA policy criteria issued on January 18, 2005. Note that this is not a waiver in accordance with § 24.7.