UP Standards

(2.5) Recommended Project Appraisal Report Format Part I – Introduction, General Factual Data and Analysis Introduction (1) Title Page (2) Transmittal Letter (3) Table of Contents (4) Executive Summary (5) Statement of Assumptions and Limiting Conditions (6) Description of Scope of Work General Factual Data (7) Area, City, and Neighborhood Data (8) Zoning and Other Land Use Regulations Analysis (9) Analysis of Highest and Best Use (10) Discussion of Approaches to Value (11) Land Valuation (12) Cost Approach (13) Sales Comparison Approach (14) Income Capitalization Approach (15) Special Studies Part II – Individual Parcel Report Introduction (16) Title Page (17) Table of Contents (18) Appraiser’s Certification (19) Summary of Salient Facts and Conclusions (20) Photographs of Subject Property (21) Statement…

Recommended Appraisal Report Format for Partial Acquisitions 2.3.1 Introduction (2.3.1.1) Title Page (2.3.1.2) Transmittal Letter (2.3.1.3) Table of Contents (2.3.1.4) Appraiser’s Certification (2.3.1.5) Executive Summary (2.3.1.6) Photographs (2.3.1.7) Statement of Assumptions and Limiting Conditions (2.3.1.8) Description of Scope of Work 2.3.2 Factual Data – Before Acquisition (2.3.2.1) Legal Description (2.3.2.2) Area, City, and Neighborhood Data (2.3.2.3) Property Data (2.3.2.3.1) Site (2.3.2.3.2) Improvements (2.3.2.3.3) Fixtures (2.3.2.3.4) Use History (2.3.2.3.5) Sales History (2.3.2.3.6) Rental History (2.3.2.3.7) Assessed Value and Annual Tax Load (2.3.2.3.8) Zoning and Other Land Use Regulations 2.3.3 Data Analysis and Conclusions – Before Acquisition (2.3.3.1) Highest and Best Use (2.3.3.1.1) Four Tests (2.3.3.1.2) Larger Parcel (2.3.3.2) Land Valuation (2.3.3.2.1) Sales Comparison Approach (2.3.3.2.2) Subdivision Development Method (2.3.3.3) Cost Approach…

Recommended Appraisal Report Format for Total Acquisitions 2.3.1 Introduction (2.3.1.1) Title Page (2.3.1.2) Transmittal Letter (2.3.1.3) Table of Contents (2.3.1.4) Appraiser’s Certification (2.3.1.5) Executive Summary (2.3.1.6) Photographs (2.3.1.7) Statement of Assumptions and Limiting Conditions (2.3.1.8) Description of Scope of Work 2.3.2 Factual Data (2.3.2.1) Legal Description (2.3.2.2) Area, City, and Neighborhood Data (2.3.2.3) Property Data (2.3.2.3.1) Site (2.3.2.3.2) Improvements (2.3.2.3.3) Fixtures (2.3.2.3.4) Use History (2.3.2.3.5) Sales History (2.3.2.3.6) Rental History (2.3.2.3.7) Assessed Value and Annual Tax Load (2.3.2.3.8) Zoning and Other Land Use Regulations 2.3.3 Data Analysis and Conclusions (2.3.3.1) Highest and Best Use (2.3.3.1.1) Four Tests (2.3.3.1.2) Larger Parcel (2.3.3.2) Land Valuation (2.3.3.2.1) Sales Comparison Approach (2.3.3.2.2) Subdivision Development Method (2.3.3.3) Cost Approach (2.3.3.4) Sales Comparison Approach (2.3.3.5) Income…

0.5 Policy. In acquiring real property, or any interest in real property, the United States will impartially protect the interests of the public and ensure the fair and equitable treatment of those whose property is needed for public purposes. As a general policy, the United States bases its property acquisitions on appraisals of market value, the standard adopted by the courts as the practical, objective measure of just compensation. “[I]t is the duty of the state, in the conduct of the inquest by which the compensation is ascertained, to see that it is just, not merely to the individual whose property is taken but to the public which is to pay for it.” — Bauman v. Ross, 167 U.S. 548,…

About the Sixth Edition to the “Yellow Book.” In this sixth edition, the Uniform Appraisal Standards for Federal Land Acquisitions have been updated to reflect developments in appraisal methodology and theory, case law, and other federal requirements since the fifth edition was published in 2000. These Standards have also been restructured for clarity, convenience, and consistency with professional appraisal standards, as appropriate. The four-part structure is designed to follow the appraisal process, from development, to reporting, to review, while the final section explains the legal foundations for the appraisal development, reporting, and review requirements, and provides practical examples of how the underlying law applies to actual valuation problems in federal acquisitions. This sixth edition is also broadly consistent with the…

0.3. Scope. These Standards cover the following areas: (1) Appraisal Development (2) Appraisal Reporting (3) Appraisal Review (4) Legal Foundations Section 1: Appraisal Development sets forth the standards that must be followed in developing an appraisal for federal acquisition purposes to ensure a credible, reliable, and accurate valuation that reflects just compensation mandated by the United States Constitution. Section 1 derives from generally accepted professional appraisal standards and federal law. Competent development of an appraisal under these Standards requires an understanding of applicable law, described in Section 4: Legal Foundations and Guidance. Section 2: Appraisal Reporting presents the content and documentation required for appraisals developed in compliance with these Standards and applicable law. Section 2 also includes a recommended appraisal…

0.2 Governing Principles. Federal acquisitions entail different appraisal standards than other types of property transactions because they involve payment of just compensation. As the measure of just compensation is a question of substantive right “grounded upon the Constitution of the United States,” just compensation must be determined under federal common law—that is, case law.3 Federal case law holds that just compensation must reflect basic principles of fairness and justice for both the individual whose property is taken and the public which must pay for it. To achieve this, an objective and practical standard was required, and the Supreme Court has long adopted the concept of market value to measure just compensation. As a result, just compensation is measured by the…

0. Introductory Material Section 0.1 Purpose Section 0.2 Governing Principles Section 0.3 Scope Section 0.4 About the Sixth Edition to the “Yellow Book.” Section 0.5 Policy

0.1 Purpose. The purpose of the Uniform Appraisal Standards for Federal Land Acquisitions (Standards) is to promote fairness, uniformity, and efficiency in the appraisal of real property in federal acquisitions. Just compensation must be paid for property acquired for public purposes, whether by voluntary purchase, land exchange, or the power of eminent domain. Landowners should be treated equitably no matter which agency is acquiring their land. The use of public funds compels efficient, cost-effective practices. The same goals of uniformity, efficiency, and fair treatment of those affected by public projects underlie the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (hereinafterUniform Act).1 The Uniform Act applies to federal acquisitions as well as many state and local government…

4.13.4. Attorneys.Attorneys play a critical role in appraisals for federal acquisitions, whether or not litigation is involved. Legal instructions are necessary on a variety of valuation issues addressed throughout these Standards, such as ownership and title questions affecting the larger parcel determination (Section 4.3.3) or the proper application of the scope of the project rule to exclude government project influence on market value (Section 4.5). To do so, attorneys—whether agency counsel, Department of Justice attorneys, or landowners’ counsel—must often engage in nuanced discussions with appraisers to determine what legal instructions are necessary and appropriate. Agency counsel should consult the U.S. Department of Justice for assistance on novel or complex issues.