Schedule_for_SFH_Appraisal_Services_BPA.pdf

SEE ADDENDUMIS CHECKED

CODE 18a. PAYMENT WILL BE MADE BY

CODE

FACILITYCODE

17b. CHECK IF REMITTANCE IS DIFFERENT AND PUT SUCH ADDRESS IN OFFER

OFFEROR

RD-31ME

WASHINGTON DC 20250

1400 INDEPENDENCE AVE, SW

PROCUREMENT MANAGEMENT OFFICE

USDA, RURAL DEVELOPMENT

RD-ND-66KY CODE 16. ADMINISTERED BYCODE

X

X

X

531320

SIZE STANDARD:

100.00 % FOR:SET ASIDE:UNRESTRICTED ORRD-31ME

RFPIFB

10. THIS ACQUISITION ISCODE

RFQ

14. METHOD OF SOLICITATION

13b. RATING

NAICS:

SMALL BUSINESS

01/07/2019 1200 MT

12/10/2018

505-761-4914MARISOL OLIVERA

(No collect calls)

INFORMATION CALL:

FOR SOLICITATION 8. OFFER DUE DATE/LOCAL TIMEb. TELEPHONE NUMBERa. NAME

4. ORDER NUMBER3. AWARD/ 6. SOLICITATION

12RADA19Q0001

5. SOLICITATION NUMBER

SOLICITATION/CONTRACT/ORDER FOR COMMERCIAL ITEMS 1. REQUISITION NUMBER PAGE OF

1 40 OFFEROR TO COMPLETE BLOCKS 12, 17, 23, 24, & 30

TELEPHONE NO.

17a. CONTRACTOR/

Bismarck ND 58502 P.O. Box 1737 220 E. Rosser Avenue, Room 210 USDA Rural Development USDA Rural Development

15. DELIVER TO

WASHINGTON DC 20250

1400 INDEPENDENCE AVE, SW

PROCUREMENT MANAGEMENT OFFICE

9. ISSUED BY

7.

2. CONTRACT NO.

EFFECTIVE DATE

$7.50

18b. SUBMIT INVOICES TO ADDRESS SHOWN IN BLOCK 18a UNLESS BLOCK BELOW

ISSUE DATE

DELIVERY FOR FOB DESTINA-

TION UNLESS BLOCK IS

MARKED

11.

SEE SCHEDULE

12. DISCOUNT TERMS

THIS CONTRACT IS A

RATED ORDER UNDER

DPAS (15 CFR 700)

13a.

SERVICE-DISABLED

VETERAN-OWNED

SMALL BUSINESS

HUBZONE SMALL

BUSINESS

8(A)

USDA, RURAL DEVELOPMENT

WOMEN-OWNED SMALL BUSINESS

(WOSB) ELIGIBLE UNDER THE WOMEN-OWNED

SMALL BUSINESS PROGRAM

EDWOSB

24.

AMOUNT

23.

UNIT PRICE

22.

UNIT

21.

QUANTITY

20.

SCHEDULE OF SUPPLIES/SERVICES

19.

ITEM NO.

Solicitation for USDA Single Family Housing Appraisal Services, Blanket Purchase Agreement (BPA) in the State of North Dakota.

The Ceiling Price of Award: $150,000.00 Delivery: 10 Days After Receipt Of Order Period of Performance: 01/10/2019 to 01/09/2022

001 Single Family Housing (SFH) Appraisal Services 1 EA Product/Service Code: R411

Continued ...

(Use Reverse and/or Attach Additional Sheets as Necessary)

HEREIN, IS ACCEPTED AS TO ITEMS:

X

XX

DATED

MARISOL OLIVERA

. YOUR OFFER ON SOLICITATION (BLOCK 5),

INCLUDING ANY ADDITIONS OR CHANGES WHICH ARE SET FORTH

COPIES TO ISSUING OFFICE. CONTRACTOR AGREES TO FURNISH AND DELIVER

ARE

ARE

31c. DATE SIGNED

27b. CONTRACT/PURCHASE ORDER INCORPORATES BY REFERENCE FAR 52.212-4. FAR 52.212-5 IS ATTACHED. ADDENDA

31a. UNITED STATES OF AMERICA (SIGNATURE OF CONTRACTING OFFICER)

30c. DATE SIGNED 31b. NAME OF CONTRACTING OFFICER (Type or print)

ALL ITEMS SET FORTH OR OTHERWISE IDENTIFIED ABOVE AND ON ANY ADDITIONAL

SHEETS SUBJECT TO THE TERMS AND CONDITIONS SPECIFIED.

27a. SOLICITATION INCORPORATES BY REFERENCE FAR 52.212-1, 52.212-4. FAR 52.212-3 AND 52.212-5 ARE ATTACHED. ADDENDA

26. TOTAL AWARD AMOUNT (For Govt. Use Only)

OFFER

STANDARD FORM 1449 (REV. 2/2012)

Prescribed by GSA - FAR (48 CFR) 53.212

ARE NOT ATTACHED.

ARE NOT ATTACHED.

AUTHORIZED FOR LOCAL REPRODUCTION

PREVIOUS EDITION IS NOT USABLE

30b. NAME AND TITLE OF SIGNER (Type or print)

30a. SIGNATURE OF OFFEROR/CONTRACTOR

28. CONTRACTOR IS REQUIRED TO SIGN THIS DOCUMENT AND RETURN

25. ACCOUNTING AND APPROPRIATION DATA

29. AWARD OF CONTRACT:

REF.

12/10/2018

32e. MAILING ADDRESS OF AUTHORIZED GOVERNMENT REPRESENTATIVE

32c. DATE 32b. SIGNATURE OF AUTHORIZED GOVERNMENT REPRESENTATIVE

ACCEPTED, AND CONFORMS TO THE CONTRACT, EXCEPT AS NOTED:

32a. QUANTITY IN COLUMN 21 HAS BEEN

RECEIVED INSPECTED

40. PAID BY39. S/R VOUCHER NUMBER38. S/R ACCOUNT NUMBER

37. CHECK NUMBER

FINALPARTIAL

36. PAYMENT

FINALPARTIAL

35. AMOUNT VERIFIED

CORRECT FOR

34. VOUCHER NUMBER33. SHIP NUMBER

COMPLETE

32g. E-MAIL OF AUTHORIZED GOVERNMENT REPRESENTATIVE

42d. TOTAL CONTAINERS42c. DATE REC'D (YY/MM/DD)

42b. RECEIVED AT (Location)

42a. RECEIVED BY (Print)

41c. DATE41b. SIGNATURE AND TITLE OF CERTIFYING OFFICER

41a. I CERTIFY THIS ACCOUNT IS CORRECT AND PROPER FOR PAYMENT

STANDARD FORM 1449 (REV. 2/2012) BACK

24.

AMOUNT

23.

UNIT PRICE

22.

UNIT

21.

QUANTITY

20.

SCHEDULE OF SUPPLIES/SERVICES

19.

ITEM NO.

See Schedule

32f. TELEPHONE NUMBER OF AUTHORIZED GOVERNMENT REPRESENTATIVE

32d. PRINTED NAME AND TITLE OF AUTHORIZED GOVERNMENT REPRESENTATIVE

40 2 of

Table of Contents

SECTION A………………………………………………………………………………….……………………..1

SOLICITATION/CONTRACT/ORDER FOR COMMERCIAL ITEMS, FORM SF-1449…………...…………..1

SECTION B

BLANKET PURCHASE AGREEMENT

1.1 DESCRIPTION OF AGREEMENT

1.2 GENERAL AND SPECIAL PROVISIONS

1.3 SAM REGISTRATION

1.4 PERIOD OF PERFORMANCE

1.5 RENEWAL

1.6 PRICING

1.7 AUTHORIZED ORDERING OFFICIALS AND DOLLAR LIMITATIONS

1.8 EXTENT OF OBLIGATION

1.9 EXPERT WITNESS TESTIMONY

1.10 DELIVERY OF SERVICES

1.11 SFH APRAISAL REQUEST

1.12 COMMERCIAL WARRANTY

1.13 DISCLOSURE OF "SENSITIVE BUT UNCLASSIFIED" INFORMATION SAFEGUARDS

1.14 TERMINATION FOR CONVENIENCE

1.15 TERMINATION FOR DEFAULT

1.16 AGAR CLAUSE 452.409-70-4D - APPRAISERS

SECTION C

STATEMENT OF WORK (SOW)

1.1 BACKGROUND

1.2 OBJECTIVE

1.3 TYPES OF VALUES

1.4 APPRAISAL METHODOLOGY

1.5 APPRAISAL REQUIREMENTS

1.6 OBSERVED CONDITIONS

1.7 DOCUMENTATION

1.8 COMPLETION CERTIFICATION

1.9 APPRAISAL REPORT DELIVERY DEADLINES

1.10 INSPECTION AND ACCEPTANCE (AGAR 452.246-70) (FEB 1986)

1.11 ATTACHMENTS

1.12 COMPLIANCE WITH STATEMENT OF WORK (SOW)

1.13 PERFORMANCE MONITORING

SECTION D

Solicitation No. 12RADA19Q0001

PACKAGING AND MARKKING – NOT APPLICABLE

SECTION E

INSPECTION AND ACCEPTANCE – SEE SECTION C - 1.10

SECTION F

DELIVERIES OR PERFORMANCE – SEE SECTION B 1.10, C 1.9 & C 1.13

SECTION G

CONTRACT ADMINISTRATION

1.1 CONTRACTING OFFICER (CO)

1.2 CONTRACTING OFFICER’S REPRESENTATIVE (COR)

1.1 LIMITS OF INTEREST

1.2 INSURANCE

1.3 CHANGES

1.4 DISPUTES

1.5 INVOICE AND BILLING INSTRUCTIONS

1.6 PAYMENT

1.7 RETURNED INVOICES

SECTION H

SPECIAL CONTRACT REQUIREMENTS

1.1 SERVICE CONTRACT LABOR STANDARDS EXEMPTION

1.2 RECORDS MANAGEMENT OBLIGATIONS

SECTION I

CONTRACT CLAUSES

SECTION J

LIST OF ATTACHMENTS

SECTION K

REPRESENTATIONS, CERTIFICATIONS, AND OTHER STATEMENTS OF OFFERORS OR

RESPONDENTS

SECTION L

INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS OR RESPONDENTS

SECTION M

EVALUATION FACTORS FOR AWARD

SECTION B

BLANKET PURCHASE AGREEMENT

1.1 DESCRIPTION OF AGREEMENT

Contractor agrees to provide appraisal services for properties in the State of North Dakota as assigned in accordance with the Statement of Work (SOW), and contract terms and conditions. The Agreement term is three-years from date of award, unless cancelled prior by written notice from either party. In the event of cancellation, performance of outstanding orders/contracts under the terms and conditions herein shall continue until completed in accordance with order deadlines, unless the work is cancelled by the Contracting Officer.

This BPA is considered complete when the total orders hereunder equal the BPA ceiling, or when its stated time period expires, whichever occurs first. The agreement may be renewed upon or prior to its expiration by mutual written agreement between the parties. Purchase orders will be issued under this BPA when assigning work to Contractor. Total aggregate orders for all fiscal year periods shall not exceed $150,000.00.

1.2 GENERAL AND SPECIAL PROVISIONS

The following general and special provisions are applicable to this agreement from date of issuance or amendment to the cited expiration date. The Federal Acquisition Regulation (FAR), Agriculture Acquisition Regulation (AGAR) Clauses located in Section I of this package as well as Rural Development Instructions are applicable to this Agreement.

1.3 SAM REGISTRATION

The System for Award Management (SAM) is the Official U.S. Government system that consolidated the capabilities of CCR/FedReg, ORCA, and EPLS. There is NO fee to register. The site is https://www.sam.gov/portal/SAM/#1. Your CCR username does not work in SAM. You will need a new SAM User Account to register or update your entity records. User guides and webinars are available under the Help tab. You will be required to have a DUNS number.

For Current users: If there is a change in e-mail address, designated financial institution, Company name or address, you must update your registration in SAM. SAM will send notifications to the registered user via email 60, 30, and 15 days prior to expiration of the Entity. PLEASE NOTE: If the SAM registration expires for a Vendor/Appraiser that is currently a BPA holder with USDA RD North Dakota, then appraisal requests to that Appraiser will cease immediately and will not begin again until the company can update their registration.

1.4 PERIOD OF PERFORMANCE

The effective date for this Blanket Purchase Agreement (BPA) is the date that the Contracting Officer execute the signed page 36 of this Agreement from Vendor/Appraiser. This BPA will last for three (3) years unless the total aggregate value comes close to $150,000.00 of all orders against it or until the Agreement is terminated by either party in writing. In the event of termination, delivery or performance of outstanding orders may continue for a period of thirty (30) days, after which time any remaining items will be considered cancelled. If within that 30 days the Vendor/Appraiser’s registration has expired in SAM (System for Award Management), then all work will cease immediately after which time any remaining items will be considered canceled.

1.5 RENEWAL

This Agreement will be subject to renewal upon expiration based on a continuing need for the services described and performance by the Contractor. A review will be performed by the Contracting Officer.

1.6 PRICING

Pricing shall be as low as or lower than prices charged to the Contractor’s most favored customer for comparable quantities under similar terms and conditions in addition to any trade or prompt payment discounts offered. Orders https://www.sam.gov/portal/SAM/#1 created under this agreement are Fixed-Price contracts. A Firm-Fixed-Price contract provides for a price that is not subject to any adjustments on the basis of the contractor’s cost experience in performing the contract. Pricing sheet shall be provided with a period of performance term for a two-year period. (i.e. FROM 05/26/2017 through 05/25/2019). A caveat may be added that the pricing is good from the date stipulated on Attachment B, Fee/Rate Quote and will not expire until further notice. The notification should come directly in writing to the Contracting Office with a new pricing sheet with new pricing period. Otherwise, we will be using the current pricing sheet in hand.

Please indicate the counties in North Dakota that your company is ready, willing, and able to provide the services for. Annotate “N/A” if not willing or able to provide services to a specific County:

Adams Cavalier Grant McLean Ransom Steele Barnes Dickey Griggs Mercer Renville Stutsman Benson Divide Hettinger Morton Richland Towner Billings Dunn Kidder Mountrail Rolette Traill

Bottineau Eddy LaMoure Nelson Sargent Walsh Bowman Emmons Logan Oliver Sheridan Ward

Burke Foster McHenry Pembina Sioux Wells Burleigh Golden Valley McIntosh Pierce Slope Williams

Cass Grand Forks McKenzie Ramsey Stark

1.7 AUTHORIZED ORDERING OFFICIALS AND DOLLAR LIMITATIONS

USDA Rural Development personnel authorized to place orders under this agreement are listed below. They will be referred as Ordering Officials. Any individual duly acting in the capacity of the position by a designation as “Acting” or any individual appointed to the position will be authorized to order.

Ordering Officials Purchase Limit / Ceiling Price

Contracting Officer (CO) $150,000 (Total Agreement Ceiling)

Authorized Government Representative (AGR):

North Dakota SFH Loan Specialists and Technicians $2,500 / $2,500

North Dakota State Director $2,500 / $2,500

North Dakota State or Regional Appraiser $2,500 / $2,500

North Dakota Housing Director $2,500 / $2,500

No order shall exceed $2,500.00 for services, which would include of course more than one appraisal. Orders in excess of this amount should not be honored or accepted by the Contractor unless signed by a Contracting Officer.

Failure to comply with this provision may result in termination of the BPA. If any order is acted on prior to receiving a signed purchase order by the Contracting Officer, the contractor will be working at their own risk and may not receive payment.

1.8 EXTENT OF OBLIGATION

Rural Development is obligated only to the extent of authorized purchases actually made under the BPA. Rural Development is not obligated to place any orders with the Contractor under this BPA. The Contractor is not obligated to accept orders under this BPA. However, if the Contractor accepts an order, he/she is obligated to provide the services/end products under the terms and conditions of this agreement. No order shall be acted on without an

Standard Form 1449 Solicitation/Contract/Order for Commercial Items signed by the Contracting Officer.

Failure to comply with this provision may result in termination.

1.9 EXPERT WITNESS TESTIMONY

In the event the contractor is requested to present testimony at any hearing or legal proceeding within five (5) years from the acceptance date of the appraisal, expert witness testimony will be ordered on an “as needed” basis under a separate instrument, such as a purchase order, not under this agreement. In the event the Vendor/Appraiser is requested to participate in an interview with the Office of Inspector General (OIG) relative to an investigative case; the Vendor/Appraiser shall log the beginning and ending time on a sheet of paper, have it signed by the OIG investigator then attach to the invoice and forward to the Contracting Officer for payment.

1.10 DELIVERY OF SERVICES

The appraisals shall be submitted to the Ordering Office within ten (10) business days after issuance of the appraisal request, unless otherwise noted on the SFH Appraisal Request Form. The Contracting Officer will show instructions for each appraisal request at the time the order is placed. All completed appraisals will be sent to two (2) email addresses in pdf format as directed by the Contracting Officer on the SFH Appraisal Request Form.

NOTE: Completion time will not exceed ten (10) business days unless authorized by the Contracting Officer. In emergency cases, a shorter time period may be required for submission of the appraisal(s). Any problems that would delay completion of the appraisal beyond the stated delivery date (i.e. gaining access to the property, obtaining plans and specifications) should be reported to the Contracting Officer as soon as possible.

The Contractor shall acknowledge receipt and acceptance of each order in writing via email within two (2) business days of the order being issued. Acknowledgement shall be submitted via email by the Appraiser (or authorized representative) to the Ordering Official.

1.11 SFH APRAISAL REQUEST

All deliveries/services under this Agreement shall be accompanied by an Appraisal Request Form (See Attachments) and shall contain the following:

(a) BPA Number (g) Due Appraisal needed

(b) BPA Call Order Number (h) Persons to deliver completed Appraisal to

(c) Requesting Office (i) Applicant/Borrower Name

(d) Contractor’s Name (j) Property Address

(e) Quote from Vendor (k) Instructions to gain access to Property

(f) Date Ordered (l) Type of Appraisal and Additional Information

The Contractor is to submit a copy of the applicable Invoice with his finished appraisal report to the Ordering Office.

1.12 COMMERCIAL WARRANTY

The Contractor agrees that the services furnished under this Agreement shall be covered by the most favorable commercial warranties the Contractor gives to any customer for such services.

1.13 DISCLOSURE OF "SENSITIVE BUT UNCLASSIFIED" INFORMATION SAFEGUARDS

Any USDA Information made available or to which access is provided, and which is marked or should be marked "Sensitive but Unclassified Use Only", shall be used only for the purpose of carrying out the provisions of this contract and shall not be divulged or made known in any manner to any person except as may be necessary in the performance of the contract.

Disclosure to anyone other than an officer or employee of the contractor or subcontractor at any tier shall require prior written approval of the USDA. Requests to make such disclosure should be addressed to the USDA Contracting Officer.

1.14 TERMINATION FOR CONVENIENCE

The Contracting Officer, by written notice, may terminate this contract, in whole or in part, when it is in the Government’s interest. If this contract is terminated, the Government shall be liable only for payment under the payment provisions of this contract for services rendered before the effective date of termination. See FAR Clause 52.249-4 TERMINATION FOR THE CONVENIENCE OF THE GOVERNMENT (SERVICES) (SHORT FORM).

1.15 TERMINATION FOR DEFAULT

The Contracting Officer, by written notice, may terminate any order herein, in whole or in part, for failure of the Contractor to perform any of the provisions of this Agreement. In such an event, the Contractor shall be liable for damages, including the excess cost of reprocuring the services. (See FAR Clause 52.249-8 (DEFAULT [FIXED-

PRICE SUPPLY AND SERVICE]).

1.16 AGAR CLAUSE 452.409-70-4D - APPRAISERS

Appraisers and their affiliates are ineligible to purchase inventory property or to receive loan assistance for property they have appraised.

SECTION C

STATEMENT OF WORK (SOW)

FOR APPRAISAL SERVICES AND APPRAISAL INSTRUCTIONS

SINGLE FAMILY HOUSING RESIDENTIAL PROPERTY

1.1 BACKGROUND

USDA Rural Development (RD) provides direct loans to eligible applicants for single family housing (SFH) residential property. To support this program, RD requires qualified appraisers to provide appraisal services, in accordance with 7 Code of Federal Regulations (CFR) Part 3550, at https://www.rd.usda.gov/files/3550appendix01.pdf.

1.2 OBJECTIVE

USDA Rural Development requires the services of North Dakota Licensed, Certified Residential, or Certified General Real Estate Appraisers to provide high quality appraisals to determine market value of SFH residential properties are key to ensuring the Agency obtains adequate security for its loans.

REQUIREMENTS FOR APPRAISALS:

A. The appraiser(s) signing the appraisal must be currently licensed in the State of North Dakota as a Certified General, Certified Residential, or Licensed Appraiser. The appraiser shall be identified as active on the Appraisal Subcommittee website (www.asc.gov) at time of award and maintain professional errors and omissions insurance coverage in accordance with local and state government requirements. The appraiser shall have the specialized knowledge and experience necessary to be competent to appraise single-family housing.

A trainee may sign the report. If a trainee signs the report, the trainee’s registration shall be provided to RD and the qualified appraiser shall sign as Supervisory Appraiser and personally inspect the subject property.

If an appraisal assignment is awarded to a contractor not holding an appraisal license, the awarded contractor may subcontract the appraisal assignment (or any part of it) to a qualified appraiser as outlined above with prior written consent of the RD Contracting Officer (CO). In the event of subcontracting the assignment, the contractor must also adhere to any licensure requirements imposed by any entity having jurisdiction in the state where the property is located.

If required by RD, the appraiser(s) signing the report shall defend the appraisal in court or in the RD appeals process. Cost associated with the defense of the appraisal, when necessary, will be negotiated under a separate purchase order/contract.

Except where noted herein, the contractor or appraiser shall provide all facilities, materials, supplies, tools, equipment, personnel, and travel to accomplish the performance of the requirements of this agreement.

B. The appraisal must comply with the current edition of the Uniform Standards of Professional Practice (USPAP) and agency requirements as described in Handbook-1-3550 https://www.rd.usda.gov/files/hb-1- 3550.pdf , Handbook-2-3550, Chapter 2, https://www.rd.usda.gov/files/3550-2chapter02.pdf , together with 7 CFR 3550 as applicable to all additional appraisal requirements https://www.rd.usda.gov/files/3550appendix01.pdf, and Rural Development Instruction 1922-A, https://www.rd.usda.gov/files/1922a.pdf .

C. All appraisals for RD will provide market value based on the following market value definition used by federally insured financial institutions; Title XI of the Financial Institutions Reform and Recovery Enforcement Act of 1989; Definition of Market Value (12 U.S.C. 1818, 1819):

Definition of Market Value:

https://www.rd.usda.gov/files/3550appendix01.pdf https://www.rd.usda.gov/files/hb-1-3550.pdf https://www.rd.usda.gov/files/hb-1-3550.pdf https://www.rd.usda.gov/files/3550-2chapter02.pdf https://www.rd.usda.gov/files/3550appendix01.pdf https://www.rd.usda.gov/files/1922a.pdf

Market value means the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:

(1) Buyer and seller are typically motivated;

(2) Both parties are well informed or well advised, and acting in what they consider their own best interests;

(3) A reasonable time is allowed for exposure in the open market;

(4) Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and

(5) The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

D. The appraisal must be completed using the most recent version one of the following forms: Fannie Mae Form 1004/Freddie Mac Form 70, "Uniform Residential Appraisal Report," for all one-unit, single family dwellings; Fannie Mae Form 1004C/Freddie Mac Form 70B, “Manufactured Home Appraisal Report,” for all manufactured homes; Fannie Mae Form 1073/Freddie Mac Form 465, “Individual Condominium Unit Appraisal Report” for all individual condominium units; Fannie Mae Form 2055/Freddie Mac Form 2055, "Exterior-Only Inspection Residential Appraisal Report," for all one-unit, single family dwellings for all properties when there is no visual inspection of the interior required or requested by RD; or Fannie Mae Form 1004D/Freddie Mac Form 442, “Appraisal Update and/or Completion Report”.

1.3 TYPES OF VALUES

Depending on the purpose of the appraisal, an appraiser will either determine the estimated market value of the property in its current condition (the “as-is” value) or; determine the estimated market value of the property, based on completion of construction in accordance with plans and specifications, or completion of rehabilitation based on a list of repairs to be considered (the “as-improved” value). https://www.rd.usda.gov/files/3550-1chapter05.pdf (Handbook-1-3550, Chapter 5 (5.15)).

A. Full Charge:

1. New Loan: “New Construction”: (also known as “as subject to completion”) Loans for planned new construction or rehabilitation require an estimate of the as-improved value. An “As-Improved” value is based on completion per construction plans and specifications that enable the appraiser to estimate the value of the property after completion of construction / rehabilitation. Plans & specifications will be included with appraisal.

2. New Loan: “As-Improved” (Existing Home With Repairs): When repairs to an existing dwelling or REO property are planned, the appraisal should provide both as-is and as-improved value estimates.

USDA Rural Development will provide copies or provide access to required construction plans or repair list(s) as required and repairs shall be reflected in the appraisal process.

3. New Loan/Existing Home: As-Is (No Repairs): Loans for existing dwellings (including a new construction dwelling that has been complete at the time of appraisal) requiring no repairs, to support servicing actions, or to determine a disposition plan for Real Estate owned (REO) properties.

4. Subsidy Recapture/Receivable/Payoff As Is: The appraiser must complete an as-is market value appraisal.

The appraiser must provide the estimated contributory value of all capital improvements added to the subject property from original date of purchase as specified / indicated by the owner. In the event the appraiser cannot determine from local records what capital improvements may have been added, the appraiser may contact the Authorized Government Representative (AGR) to determine if original loan records detail historic property conditions. Each capital improvement must be noted individually. The appraiser must provide the estimated contributory amount of market value, if any, for each capital improvement item. Items considered to be general maintenance are not considered to be capital improvements. Values shall be supported by market evidence or other valuation methods deemed https://www.rd.usda.gov/files/3550-1chapter05.pdf appropriate by the appraiser. https://www.rd.usda.gov/files/3550-2chapter02.pdf (Handbook-2-3550, Chapter2 (2.23) (8)

The appraiser must complete an “As-Is” value. The appraiser must note all capital improvements added to the subject property from date of purchase, as provided by the borrower. If available, the originating office will provide a copy of the original appraisal report. Each capital improvement must be noted individually. The appraiser must determine the estimated contributory amount of market value, if any, for each capital improvement item. Items considered to be general maintenance are not considered to be capital improvements. Values shall be supported by market evidence. (Handbook-2- 3350, Chapter2 (2.23) (8), page 2-34)

5. “As Is” Liquidation/Short Sale/Foreclosure/REO: In the event the appraiser is requested to complete a foreclosure appraisal would require an as-is value to establish the Agency net recovery value. The appraisal must conform, at minimum, to Agency and USPAP requirements and standards unless otherwise stated. Estimated net recovery value represents the amount that the Agency could expect to recover from a property if it was liquidated after considering all costs associated with liquidating, holding, and selling the property.

The agency requires modification of the forms to capture the liquidation value. As part of the appraisal assignment, the appraiser must complete the Market Conditions Addendum to Appraisal Report (Fannie Mae Form 1004MC or Freddie Mac Form 71) to support the value and condition of the property.

B. Exterior Only:

“As Is” Liquidation/Short Sale/Foreclosure/REO (Drive By, Interior not accessible): - In the event the appraiser is requested to complete an appraisal for a servicing action such as foreclosure, short sale, deed-in-lieu, etc., an appraisal reflecting the market value of the property in its “as-is” condition is necessary for RD use.

Typically, when a property in foreclosure is occupied, the appraiser will not be required to gain access for a visual inspection of the interior of the subject property. In this case, the appraiser must complete the appraisal report on the Fannie Mae Form 2055/Freddie Mac Form 2055, “Exterior-Only Inspection Residential Appraisal Report” unless specifically instructed otherwise by RD. The report must include an extraordinary assumption that there was no visual inspection to the interior and details of the sources being used for the interior components and the assumed condition of the interior.

https://www.rd.usda.gov/files/3550-1chapter13.pdf (Handbook-1-3550, Chapter 13 (13.17) (C) (3)).

C. Final Re-Inspection:

The appraiser must complete a Final Re-Inspection if the property requires a second visit. Re- Inspections can include confirmation of New Construction or As-Improved appraisals. Re- Inspections can also include but are not limited to if the underwriter is simply not comfortable with the appraisal and requires a field review to confirm value or if the underwriter rejects the first appraisal altogether.

1.4 APPRAISAL METHODOLOGY

RD requires appraisers to use the following appraisal methods to arrive at a final estimate of value.

A. Sales Comparison Approach: Under this method, the appraiser uses the recent sales prices of properties that are comparable in location and characteristics to the subject property in order to estimate a market value for the property. The appraiser must use at a minimum three (3) comparable closed sales of single family residential properties that sold in the previous 12-month period unless the appraiser provides documentation that such comparable transactions are not available in the area. Comparable sales should be located as close as possible to the subject dwelling, from within the competitive market area, and should be the most comparable available for purposes of valuation.

B. Cost Approach: This method is specified in Handbook 1-3550, Chapter 5, found at this web address, http://www.rd.usda.gov/files/3550-1chapter05.pdf. For all proposed construction or all homes having an age of one year or less, RD requires that the appraiser develop, report and reconcile the cost approach to value. On homes over one year of age, the appraiser should determine whether the cost approach is https://www.rd.usda.gov/files/3550-2chapter02.pdf https://www.rd.usda.gov/files/3550-1chapter13.pdf http://www.rd.usda.gov/files/3550-1chapter05.pdf relevant or necessary to determine a valid opinion of market value. This determination must be developed and reported in accordance with the USPAP.

Under this method, the appraiser derives an estimate of value using replacement cost estimates for the improvements, less depreciation of all forms, and then adding an estimate of the site value. The appraiser will identify the source of cost estimates, such as Marshall and Swift Residential Cost service, local builder’s cost data or other national publication for residential costs, used in the cost approach. The methodology used to estimate depreciation must be stated in the report.

Properties in remote rural areas, on tribal lands (American Native and Alaskan Native), areas with a lack of market activity, or those representing a leasehold interest, where it may be difficult to obtain adequate comparable sales to be used for comparative purposes in order to appraise a property. In these areas, the sales comparison approach is not required. Instead, Marshall & Swift Form 1007, Square Foot Appraisal Form, must be used.

Remote rural areas are identified by RD and are defined as areas lacking sufficient market activity and having the following characteristics:

• Scattered population;

• Low density of residences

C. Income Approach: Under this method, the appraiser derives a value indication for an income-producing property by converting its anticipated benefits (cash flows and reversion) into property value. This conversion can be accomplished in two ways. One year’s income expectancy can be capitalized at a market-derived capitalization rate or at a capitalization rate that reflects a specified income pattern, return on investment, and change in the value of the investment. Alternatively, the annual cash flows for the holding period and the reversion can be discounted at a specified yield rate.

The Income Approach method of valuation may only be used for Agency Non-Program Properties such as Real Estate Owned (REO) or Non-Program Loan Assumptions.

USPAP Standards Rule 2-2 (a) (viii) require the appraisal report to summarize the information analyzed, the appraisal methods and techniques employed, and reasoning that supports the analyses, opinions, and conclusions; and also, exclusion of the sales comparison approach, cost approach, or income approach must be explained.

1.5 APPRAISAL REQUIREMENTS

A. The appraiser signing the appraisal report must understand and agree that RD is the client, and all reports must be addressed to USDA – Rural Development. The intended user of the report will be RD and any other intended user specified by the agency. Any questions relating to agency requirements of the appraisal assignment should be directed to the AGR and will not be directed to the property owner, real estate agent, builder/contractor, or any other party to the transaction. Communication relating to the assignment, directed to the AGR, can come from the appraiser signing the appraisal report or the contractor selected for the assignment and in all instances RD staff will be granted permission to directly communicate with the appraiser signing the report.

B. The appraisal report must be Uniform Appraisal Dataset (UAD) compliant.

C. A property contact person will be provided by the AGR and ensure the appraiser has access to the subject property for inspection, unless the property is occupied, and the appraisal is for foreclosure purposes. In this situation, a drive-by / exterior only appraisal shall be conducted utilizing the extraordinary assumption the condition of the exterior of the dwelling indicates a similar condition for the interior.

Appraisal fees or turnaround times must not be discussed with the property contact, the property owner or the borrower. The appraiser must notify the AGR immediately if any of the following occurs:

(1) The appraiser cannot gain adequate access to the property;

(2) The appraiser does not receive essential property information in a timely manner;

(3) The appraiser has previously appraised or is in the process of appraising the property for another client;

or

(4) The appraiser has any other potential conflict of interest with respect to the assignment.

D. If appropriate, the RD field office will prepare a list of repairs needed to insure the property meets the Agency regulations and guidance. The list of repairs, which is based on the inspection reports prepared by State-licensed inspectors or qualified third-party inspectors hired by the applicant will be provided to the appraiser for the purpose of obtaining an “as-improved” value. The list of repairs shall be provided by the RD Office processing the loan application. The appraiser is responsible to take into account the RD required repairs and must include the list of repairs in the addendum of the appraisal report.

E. The appraiser must provide an opinion of site value supported by a narrative of comparable land sales or other methods used for estimating site value. If support is not included in the appraisal report, a statement by the appraiser that such information is available for review upon request and in the appraiser’s work file should be made. The land must be valued as though vacant and ready for development.

• The appraiser must specify whether the site is or can be subdivided into more than one site under existing local zoning ordinances.

• The appraiser shall discuss the site size and the concluded site value and whether they are typical for the subject market.

• Any land area of the subject property that is determined by the appraiser as either excess land or surplus land must be addressed and valued accordingly together with documentation and support within the appraisal report for the appraiser’s conclusions.

F. In addition, the appraisal report for a manufactured home must also meet the following requirements:

(1) Cost Approach: Manufactured Home Appraisal Reports will require a published cost data service such as the Marshall and Swift Residential Cost Guide or the N.A.D.A. Manufactured Housing Appraisal Guide calculations to be included. The appraiser must take at least one of those values into consideration in arriving at a value conclusion.

(2) Sales Comparison Approach: The appraisal report must contain at least two comparable manufactured home sales of similar configuration and quality. The appraiser may use either site-built housing or a different type of factory built housing as the third comparable sale if the appraiser explains the reason for selecting the comparable and support the appropriate adjustments in the appraisal report.

G. All extraordinary assumptions, hypothetical conditions, and limiting conditions must be clearly and prominently described in a single location near the beginning of the report and in appropriate sections of the appraisal. General assumptions and limiting conditions that reduce the normal scope of appraisal due diligence are not allowed.

H. The appraiser must keep all information and materials furnished by Rural Development, the owner, and/or property contact regarding the subject property confidential, as required by USPAP and the Gramm- Leach-Bliley Act (also known as the Financial Services Modernization Act of 1999). Any information obtained through public sources is not considered confidential information. Disregard of this privacy requirement will be cause for immediate debarment as a contractor for the federal government.

I. All appraisals must comply with the Fair Housing Amendments Act of 1988. According to the Act, it is unlawful for an appraiser to use factors that are discriminatory on the basis of race, color, religion, sex, disability, familial status, or national origin in the sale, rental, leasing, or financing of housing.

J. Each appraisal will be submitted electronically, using the industry standard Extensible Markup Language (XML) appraisal data formats Mortgage Industry Standard Maintenance Organization (MISMO), with embedded PDF. Electronic submissions, in the above formats, must be emailed to the AGR as indicated on the confirmed Single-Family Appraisal Order Form, Purchase Order, or Task Order (SF 1449).

1.6 OBSERVED CONDITIONS

The appraiser is required to make a property inspection to gather data to support the determination of value. Readily observable conditions shall be noted.

A. The appraiser(s) signing the appraisal report must make at a minimum a personal inspection of the subject

(interior and exterior) unless the appraisal is for foreclosure purposed of an occupied dwelling, then an exterior only inspection is required. Also, inspection of all comparable sales (exterior) at a minimum from the street. The appraiser must indicate that the subject’s interior and exterior and all comparable sales were personally inspected / observed within the appraisal report. Readily observable conditions must be noted for the following: attic space, crawl space, floors and walls for significant structural failure, moisture damage, or evidence of past fire damage; the roof condition for remaining life; the mechanical systems for operability; and all surfaces for defective paint.

B. In the event that access to the subject interior and/or exterior cannot be obtained, the appraiser must obtain prior authorization to continue the assignment without inspection. In the event RD authorizes valuation without an inspection, the appraiser must comply with USPAP Standard Rule 1-2 (F) which requires the appraiser to identify any extraordinary assumptions necessary in the assignment. The extraordinary assumption must include detailed disclosure of the assumed condition, the source(s) the extraordinary assumption is based upon and must be clearly labeled as such within the appraisal.

C. The appraiser must note any suspected environmental hazards, including issues external to the property that could adversely impact the property's value. Examples of environmental hazards would include damaged asbestos-containing building materials, underground storage tanks, chemical leaks, spills, staining of ground surfaces, or on-site waste disposal such as sludge, oil, paints, or chemical residues. If the appraiser observes any suspected environmental hazards, he/she must notify the AGR immediately and refrain from finalizing aspects of the appraisal that could be impacted until resolution of the issue or until instructed otherwise.

D. The appraiser must notify the AGR. In the event the appraiser observes a deficiency in the property that does not meet minimum property requirements, of decent, safe and sanitary as outlined in HB-1-3550, paragraph 5.7. https://www.rd.usda.gov/files/hb-1-3550.pdf

E. For uninhabited dwellings where utilities are temporarily disconnected, the appraiser will inspect all mechanical systems (heating, plumbing, electrical) for observable conditions, but will not be responsible for reporting operability of these systems. Unless otherwise notified, the appraiser may assume operability for valuation purposes and this must be mentioned as an “extraordinary assumption” in the appraisal report.

F. Where applicable, appraisers should be familiar with the general provisions of “green properties” in single-family housing. The appraiser shall consider what impact (if any) such factors have on the value of the subject property. Any impact on value should be supported by market evidence.

G. The Mutual Self-Help Program, is a housing program utilizing supervised labor performed by borrowers as part of the construction process. Construction conducted under the program is supervised by technical experts to assure the quality of its completion.

Appraisal of properties constructed under the Mutual Self-Help Program should consider construction, materials and finish will be completed in a workmanlike and professional manner.

1.7 DOCUMENTATION

All approaches to value and the value opinion must be in accordance with acceptable appraisal methodology.

A. All reports must include a location map (should include proximity to applicable road/highway), flood plain map when the property is located in a designated flood plain, land sales map, sales comparable map, rent comparable map (if applicable), plat map, and building sketch (indicating interior building layout, garages and all external buildings).

B. For new construction, the appraisal report must include clear original color photographs of the subject’s front, rear, street and street easement (private access), if applicable. In all other appraisals colored photographs showing at a minimum the front, rear, and both sides to the exterior. Interior photographs should be included showing each room type, attic and crawl spaces, other non-gross living area (sun rooms, patio/deck/porch/fences) and any noted structural, safety and/or sanitary deficiencies. Additionally, photographs of improvement components that have been upgraded shall be included to document and support the appraiser’s determination of the subject’s effective age if different than its actual age. A current original photograph of each comparable sale and listing used in the completion of the appraisal is required. If the comparable sale and listing photographs are not available the appraiser should provide, at a https://www.rd.usda.gov/files/hb-1-3550.pdf minimum, multiple listing service photographs, whenever possible, along with the cited source from which the photographs were obtained.

C. The bedroom shall meet legal requirements (building code, zoning ordinance, etc.) as mandated by the local county/state government enforcement agency and applicable agency regulations where subject property is located, if any such legal requirements exist.

D. Verification from third party sources should be noted within the appraisal and maintained as part of the appraiser’s work file.

E. The appraisal shall include photographs of all external buildings as well as interior photos of the external buildings (if possible). The external dimensions for each of the external buildings must be included, preferably in the building sketch or identified in the addendum of the appraisal report.

F. The appraiser must estimate the remaining economic life of the subject's improvements, (the remaining number of years that the subject's improvements will contribute value to the land) and report this estimate in the cost approach section. An explanation is required if the remaining economic life is less than 30 years (the explanation is used to justify reducing the term of the mortgage to less than 30 years).

G. All appraisals of existing properties must include a discussion of deferred maintenance for the subject property. Items of deferred maintenance must be listed, and cost to cure for each item must be estimated with support provided.

H. All reports must include a written explanation and documentation to support individual line item adjustments. Total net adjustment percentages and gross adjustment percentages when compared with the comparable sale unadjusted sale price shall be discussed.

1.8 COMPLETION CERTIFICATION

A. If determined by Rural Development (RD), the appraiser may be requested to re-inspect properties to determine if repairs to the home or construction of home were completed. RD shall determine the need for an appraiser to re-inspect a property. Re-inspection services may also be ordered on a separate contract if required. A list of additional repairs will be provided to the appraiser. Not all “subject to” appraisals will require re-inspection services.

B. The appraiser shall submit their findings using the Fannie Mae Form 1004D/Freddie Mac Form 442 “Appraisal Update and/or Completion Report.” The completed report shall be delivered to the AGR within 7 business days from the date the order was received. The report shall include pictures of completed work.

C. Re-inspection reports are due within 7 business days after notification is received from the AGR.

1.9 APPRAISAL REPORT DELIVERY DEADLINES

The appraiser shall complete and deliver appraisals to the AGR within 10 business/working days or specified noted delivery time after date of order, or upon receipt of the appraisal information from AGR unless a different deadline is set by written mutual agreement at the time of order. If corrections and/or amendments to the appraisal are requested by the AGR, the corrections and/or amendments are to be delivered as soon as possible, but not later than 4 business days following the request unless, by written mutual agreement, other arrangements are made. If, for any reason the timely delivery of the appraisal report is delayed for reasons beyond the appraiser's control, the appraiser must contact the AGR and convey the reasons for the delay.

1.10 INSPECTION AND ACCEPTANCE (AGAR 452.246-70) (FEB 1986)

There are 2 types of reviews conducted for appraisals contracted for by Rural Development --- "Administrative" and "Technical." Administrative reviews will always be conducted, and a sufficient number of technical and field reviews will be completed to ensure that the Agency is obtaining quality appraisals. The following defines the type of review and outlines the frequency of reviews, per HB-1-3550, 5.18 - 5.19.

A. Administrative review:

The Program Loan Specialist is responsible to complete the Administrative Review within 7-business days of receipt of appraisal to determine whether or not the appraisal presents an appropriate value for market conditions. The administrative reviewer determines whether the appraisal is complete, the mathematics are correct, there is a proper number of current comparables, and that both the cost and comparable sales approaches were used to establish the market value. The administrative reviewer may request a technical review when problems are detected and will forward a copy of the appraisal to the USDA Rural Development Agency Appraiser for Technical Review and comments. Appraisals not meeting the Acceptable Quality Level shall be required to correct their deficiencies within 4-business days. The Contractor will be notified that the appraisal cannot be accepted and paid until the technical review is complete.

B. Technical review:

1) After the administrative review: The RD Agency Appraiser may conduct a Technical Review to determine whether the appraisal meets the technical requirements of USPAP and is in full compliance with this Statement of Work (SOW). The RD Agency Appraiser shall provide comments and findings to the Ordering Official and appraiser within 7-business days. The appraiser shall provide a corrected appraisal within 4-business days after receipt of comments and finding from the RD Agency Appraiser.

2) For newly awarded BPA: Appraisers that have no past performance history with USDA Rural Development are subject to a Technical Desk Audit Review of their initial completed appraisal. At the discretion of the Agency, additional technical reviews may be performed. The government has 7-business days after receipt of appraisals to accept the appraisals being technically reviewed.

3) On-going Quality Control: As part of USDA quality control measures, the RD Agency Appraiser will conduct technical reviews in a random spot-check method established by the State Housing Director.

Note: Payment of the contract is initiated following acceptance of the appraisal under either an administrative or technical review.

All appraisals prepared for RD are subject to technical review by the agency. Appraisers must be prepared to discuss their analyses, reasoning, opinions, and conclusions. Additionally, if requested, they must provide additional written support, clarification, and/or corrected appraisal pages or report. If requested by the AGR or RD’s Regional Agency Appraiser, they will provide assistance to monitor the progress and quality of the appraiser’s performance and in all instances RD Regional Agency Appraisers will be granted permission to directly communicate with the appraiser signing the report as part of the review process.

1.11 ATTACHMENTS

The Agency will provide the appraiser all necessary support information available at the time of appraisal engagement.

1.12 COMPLIANCE WITH STATEMENT OF WORK (SOW)

The appraiser must follow all provisions and instructions contained in this Statement of Work (SOW). When, in the opinion of the Appraiser, the Regional Agency Appraiser or the AGR request effort(s) falling outside this Statement of Work (SOW), the Appraiser shall promptly notify the Contracting Officer, in writing.

The Regional Agency Appraiser or the AGR is not a Contracting Officer and does not have the authority to direct the accomplishment of any effort which goes beyond the Statement of…