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 acquisitions involving federal funds.

In federal acquisitions, the purpose of an appraisal—whether prepared for the government or a landowner—is to develop an opinion of market value that can be used to determine just compensation under federal law. As a result, appraisals in federal acquisitions face different—and often more rigorous— valuation problems and standards than those typically encountered in appraisals for other purposes, such as private sales, tax, mortgage, rate-making, or insurance. These Standards set forth the guiding principles, legal requirements, and practical implications for the appraisal of property in all types of federal acquisitions.

These Standards may need to be modified to meet specific requirements of agency programs, special legislation, or negotiated agreements between agencies and landowners.2 Any such modifications to these Standards require specific written instructions from the acquiring agency, as do modifications to comply with court rulings or stipulations between parties in litigation.

Legal questions often arise when applying these Standards to the facts of a specific appraisal assignment, requiring appropriate written legal instructions. Appraisers and agency counsel should work closely to ensure legal instructions not only are legally correct, but also adequately address the valuation problem to be solved. Federal agencies are also encouraged to consult with the U.S. Department of Justice on challenging legal and valuation issues, regardless of whether condemnation is anticipated. Appropriate legal instructions can resolve doubt about the proper method of valuation or the application of particular rules to specific factual situations. If these Standards are properly applied, under sound legal instructions, the resulting appraisal will be a credible, reliable, and accurate opinion of market value that can be used for purposes of just compensation.

1 The Uniform Act, also called the URA, is discussed throughout these Standards. The Uniform Act addresses two principal areas:

• Real Property Acquisition policies set out agency appraisal criteria and negotiation obligations in order to encourage acquisitions by agreement, avoid
litigation, ensure consistent treatment for landowners across federal programs, and promote public confidence in federal property acquisition practices.

• Relocation Assistance policies are designed to ensure uniform, fair, and equitable treatment of those who are displaced by government programs and projects, and to minimize the hardships displaced persons may face as a result of programs and projects intended to benefit the public as a whole.

Federal regulations direct agencies to implement the Uniform Act in an efficient, cost-effective manner, and specifically reference these appraisal Standards at 49 C.F.R. § 24.103. In turn, these appraisal Standards presume full compliance with all applicable provisions of the Uniform Act and related regulations. The full Uniform Act is codified at 42 U.S.C. §§ 4601 to 4655, and enforced by federal regulations at 49 C.F.R. Part 24.

2 Some federal agencies have adopted appraisal and/or appraisal review handbooks or manuals that may modify these Standards to meet other criteria for specific acquisition programs.