2.5. Project Appraisal Reports.Some government projects require the acquisition of many parcels of real property, and individual appraisers are assigned to appraise a number of these

properties at the same time. On occasion, it is logical to include the appraisal of more than one parcel in a single report. Such project appraisal reports (or multiple-parcel appraisal reports) are not appraisal shortcuts; they are clerical shortcuts. A separate opinion of market value must still be developed for each acquisition; but the results of each valuation can be reported in a more efficient form. Project appraisal reports that meet the criteria set forth here may be acceptable for agency negotiation purposes under the Uniform Act and for initial review purposes by the Department of Justice. 

Project appraisal reports are rarely conducive to litigation purposes, as they typically contain opinions of value of properties owned by persons not parties to the lawsuit and introduce a myriad of collateral issues.144 But they can be a useful tool to assist in fair and efficient acquisitions for agencies engaged in large projects in which the vast majority of acquisitions can be completed voluntarily without condemnation litigation. 

The project appraisal report consists of three major parts: Part I contains an introduction, factual data, and analysis relating to all properties included in the report; Part II includes the individual parcel reports; and Part III provides addenda and exhibits relating to all properties included in the report. 

Part I—Introduction, General Factual Data, and Analysis 

(1) Title Page.This should include the government project title, the number of individual parcels included in the report, the name and address of the individual(s) making the report, and the date on which the appraisals were prepared. 

(2) Letter of Transmittal.This should include the date of the letter; identification of the government project; the number of parcels included in the appraisal report; statement of the range of effective dates of the appraisals; identification of any hypothetical conditions, extraordinary assumptions, limiting conditions or legal instructions relating to all parcels included in the report; and the appraiser’s signature. 

(3) Table of Contents.The major parts of the appraisal report and their subheadings shall be listed. The location of each individual parcel report shall be specifically identified and items in the addenda of the report shall be individually listed in the table of contents. 

(4) Executive Summary.The appraiser should report the value findings for each parcel appraised. These findings should include the agency-assigned parcel number, the owner of the property, the effective date of the value estimate(s), and the value conclusion(s). In partial acquisitions, the before value, after value, and difference should be shown. If the project appraisal encompasses a larger number of parcels, it is desirable to include a second summary listed alphabetically, by owners’ names. 

(5) Statement of Assumptions and Limiting Conditions.The requirements of Section 2.3.1.7 must be addressed. All assumptions and limiting conditions that universally apply to the appraisal of all parcels in the project appraisal report must be listed. Assumptions and limiting conditions that are not applicable to all parcels included in the project appraisal report should not be included in this section, but rather should be noted in the individual parcel reports. 

(6) Scope of Work.The requirements of Section 2.3.1.8 must be addressed. 

(7) Area, City, and Neighborhood Data.The requirements of Section 2.3.2.3.2 must be addressed. In partial acquisitions, this discussion should be clearly broken down into two subsections: before the acquisitions and after the acquisitions. 

(8) Zoning and Other Land Use Regulations.Include a general discussion of the zoning and other land use regulations that affect all parcels in the report. General trends in land use regulations in the area and recent zoning activity should be discussed. In partial acquisitions, this discussion should be clearly broken down into two subsections: before the acquisitions and after the acquisitions. 

(9) Analysis of Highest and Best Use.The general content requirements of Section 2.3.3 must be addressed. Inasmuch as all parcels in the report will have the same or similar highest and best use, the appraiser should discuss and develop the highest and best use of the parcels in this section. If, after in-depth analysis an appraiser determines that the highest and best use of a parcel is not the same as or similar to that of the other parcels to be included in the report, the unique parcel should be excluded from the project report and a separate narrative appraisal report should be prepared for this unique parcel in accordance with Section 2.3 of these Standards. In partial acquisitions, this discussion should be clearly divided into two subsections: before the acquisitions and after the acquisitions. 

(10) Discussion of Approaches to Value.The appraiser should discuss the standard approaches to value and their applicability or non-applicability to the subject parcels in the project appraisal report. If any modification to the typical application of the approaches to value is required, such modification should be discussed. In partial acquisitions, this discussion should be clearly broken down into two subsections: before the acquisitions and after the acquisitions. 

(11) Land Valuation.The appraiser should identify, describe, and discuss all comparable land sales that will be used in the individual parcel reports. A discussion of how the comparable sales will be used in the individual reports can be included in this section of the report. Reference should be made to comparable sales data sheets, photos, and a comparable sales map, which shall be included in the addenda of the report. 

Universal adjustments to the comparable sales should be discussed and developed in this section of the report. Adjustments classified as universal would include such adjustments as time (or market conditions), cash equivalency, and those adjustments that are not subject property dependent. Also, the general results of any study relating to land value (e.g., a size adjustment study) developed under item (15) (Special Studies) should be discussed. In partial acquisitions, this discussion should be clearly divided into two subsections: before the acquisitions and after the acquisitions. 

If a parcel requires land valuation by means other than comparable sales, as a general rule that parcel is not appropriate for inclusion in a project report. 

Because a high degree of similarity exists between all individual parcels included in the project report, capitalization rates applicable to each should be the same or fit into a relatively narrow bracket. Therefore, the development of applicable capitalization rates should be presented in this section of the report. Discussion of partial acquisitions should be clearly broken down into two subsections: before the acquisitions and after the acquisitions. 

(15) Special Studies.Present any special studies that are appropriate and apply to all, or most, of the individual parcels included in the project appraisal report. Such studies might include easement studies (the impact of easements on encumbered areas and abutting unencumbered areas), size adjustment studies, proximity studies (impact on remainder property values due to proximity to various public improvements), land lock studies, special benefit studies, and project influence studies. These studies may relate to the before situation, the after situation, or both, and are in addition to the capitalization rate, time or market conditions, entrepreneurial profit, depreciation, and cash equivalency studies previously mentioned. 

Part II—Individual Parcel Report 

Each individual parcel report should contain the following information. In partial acquisitions, item (26) through (34) should be repeated in the after situation, which is further discussed in Section 2.3.4. 

(16) Title Page.See Section 2.3.1.1 for content requirements. 

(17) Table of Contents.See Section 2.3.1.3 for content requirements. 

(18) Appraiser’s Certification. See Section 2.3.1.4 for content requirements. 

(19) Summary of Salient Facts and Conclusions.See Section 2.3.1.7 for content requirements. 

(20) Photographs of Subject Property.See Section 2.3.1.6 for content requirements. 

(21) Statement of Assumptions and Limiting Conditions.The appraiser should state that the assumptions and limiting conditions stated in item (5) of Part I of the project report are applicable to this parcel. If any additions, modifications, or deletions to the general assumptions and limiting conditions are necessary, they shall be noted. 

(22) Scope of Work.The appraiser should state that the scope of work for this appraisal stated in item (6) of Part I of the project report is applicable to this parcel. If any additions, modifications, or deletions to the general discussion are necessary, they shall be noted. 

(23) Executive Summary.The appraiser should discuss any specific appraisal problem unique to the individual subject parcel and briefly describe its treatment.

(24) Legal Description.See Section 2.3.2.1 for content requirements. 

(25) Area, City, and Neighborhood Data.The appraiser should reference the area, city, and neighborhood data in item (7) of Part I of the project report, discuss the parcel’s location within the neighborhood, and note any specific neighborhood factors uniquely affecting the subject parcel. 

(26) Property Data.

a. Site. See Sections 2.3.2.3.1 and 2.3.4.3.1 for content requirements. 

b. Improvements. See Sections 2.3.2.3.2 and 2.3.4.3.2 for content requirements. 

c. Fixtures. See Sections 2.3.2.3.3 and 2.3.4.3.3 for content requirements . 

d. Use History. See Sections 2.3.2.3.4 and 2.3.4.3.4 for content requirements. 

e. Sales History. See Sections 2.3.2.3.5 and 2.3.4.3.4 for content requirements. 

f. Rental History. See Sections 2.3.2.3.6 and 2.3.4.3.4 for content requirements. 

g. Assessed Value and Annual Tax Load. See Sections 2.3.2.3.7 and 2.3.4.3.5 for content requirements. 

h. Zoning and Other Land Use Regulations. The appraiser should reference the discussion of zoning and other land use regulations in Part I, item (8) of the project report. If additions, modifications, or deletions from that general discussion are required as they relate to the specific parcel, this should be noted. 

(27) Analysis of Highest and Best Use.The appraiser should reference the discussion of highest and best use in item (9) of Part I of the project appraisal report and relate that discussion specifically to the subject parcel. The appraiser shall specifically state the highest and best use of the property, both in the before and after situations if a partial acquisition, and thoroughly explain the reasoning that led to the conclusion. 

(28) Land Valuation.For content requirements, see Section 2.3.3.2. The appraiser should reference the data and discussion of land sales in item (11) of Part I of the project appraisal report and shall specifically identify which of those sales are most comparable to the parcel under appraisal and have been relied upon in developing an opinion of the parcel’s value. A comparative analysis between each of the selected comparable sales and the subject property shall be included. 

If adjustments are based on universal adjustments and/or studies discussed and developed in Part I of the appraisal, the discussion or study should be specifically referenced and related to the subject property. 

(29) Value Indication by the Cost Approach.For content requirements, see Section 2.3.3.3. The appraiser should reference the general discussion of the cost approach in item (12) of Part I of the project report. If computations or estimates are based on studies discussed and developed in Part I of the project appraisal report, the studies should be specifically referenced and related to the subject parcel.

Uniform Appraisal Standards for Federal Land Acquisitions / Appraisal Reporting 

(30) Value Indication by the Sales Comparison Approach.For content requirements, see Section 2.3.3.4. The appraiser should reference the data and discussion of the whole property sales in item (13) of Part I of the project appraisal report and shall specifically identify which of these sales are most comparable to the subject parcel and have been relied upon in developing an opinion of the parcel’s value. A comparative analysis between each of the selected comparable sales and the subject property shall be included. 

If adjustments are based on universal adjustments and/or studies discussed and developed in Part I of the project appraisal report, the discussion or study should be specifically referenced and related to the subject property. 

(31) Value Indication by the Income Capitalization Approach.For content requirements, see Section 2.3.3.5. The appraiser should reference the data and discussion of whole property rentals in item (14) of Part I of the project appraisal report and shall specifically identify which of those rentals are most comparable to the subject parcel and have been relied upon in developing an opinion of the parcel’s economic (or market) rent. A comparative analysis between each of the selected comparable rentals and the subject property shall be included. 

If the capitalization rate selected for the subject property is based on studies discussed and developed in Part I of the project appraisal report, the study should be specially referenced and related to the subject property. 

(32) Reconciliation and Final Opinion of Value.For content requirements, see Section 2.3.3.6. 

(33) Acquisition Analysis.In a partial acquisition, the appraisal report shall include an analysis of the government’s acquisition in accordance with the requirements of Section 2.3.6 of these Standards. 

(34) Exhibits and Addenda.For content requirements, see Section 2.3.7 of these Standards. 

a. Location Map 

b. Comparable Data Maps. If the comparable data maps included in Part III of the project report are not clear enough to ensure complete understanding of the relationship between the subject property and the comparable data relied on in the individual parcel report, comparable data maps should be included in the addenda of the individual parcel reports. 

c. Details of Comparable Sales and Rental Data. Detailed comparable data sheets must be included in Part III of the project report. Those comparable data sheets relating to the specific comparable sales and/or rentals relied on in estimating the value of the individual parcel may also be included here for ease of reference.78 

d. Plot Plan 

e. Floor Plan 

f. Title Evidence Report 

g. Other Pertinent Reports and Exhibits 

Part III—General Exhibits and Addenda 

Exhibits and addenda items should relate to all or most of the parcels included in the project appraisal report. Exhibits and addenda items relating only to one or a small portion of the parcels appraised should be included in the addenda of the individual parcel reports. 

(35) Location Map.(Within the city or area.) All maps should include a north arrow and the identification of the subject parcels. 

(36) Comparable Data Maps.These maps might include, among others things, a comparable land sales map, a comparable improved sales map, and a comparable rentals map. The maps should include a north arrow that shows the locations of the comparable sales and/or rentals, and shows the parcels appraised. If this requires use of a map that is not of a readable scale, secondary maps showing the specific location of each comparable relied on in making the individual parcel appraisals should be included in the addenda of the individual parcel reports. 

(37) Detail of Comparable Sales and Rental Data.See Section 2.3.7. 

(38) Other Pertinent Exhibits.These would include, for example, any written instructions given the appraiser by the agency or its legal counsel relating to all parcels in the project report, such as environmental studies relating to all parcels; fixture, timber, and/or mineral appraisals relating to multiple parcels; and any charts or illustrations that may have been referenced in the body of the report and relate to all or most of the parcels in the project report. 

(39) Qualifications of Appraiser.