State_Apprisal_PWS.pdf

PERFORMANCE WORK STATEMENT

State Single-Family Housing Appraisal

1.0 OVERVIEW

The United States Department of Agriculture (USDA), Rural Development (RD), Procurement

Management Office (PMO), intends to procure contractor provided services for the purpose of:

Providing single family appraisal services and to provide written reports for estimates of opinions of market value and/or liquidation values for single family homes and some vacant lots in rural areas. The function of the appraisal reports will be to determine and report to the USDA the value of Single-Family properties.

EXPERT WITNESS TESTIMONY: If required, the Contractor shall defend the appraisal in court or in the Rural Development appeals process. In the event the contractor is requested by Rural

Development to present testimony at any hearing or legal proceeding, the contractor agrees to perform such services for an hourly rate which is as low as or lower than the rate offered to the contractor’s most favored customer, plus “reasonable” reimbursement for transportation, lodging, and meals.

(“Reasonable” is defined as that rate applicable to government personnel as defined in the travel regulations of the agency.)

2.0 BACKGROUND

The United States Department of Agriculture (USDA), Rural Development (hereby referred to as RD) provides support and services that improve the quality of life in rural communities. RD programs help rural communities build or improve housing, community facilities, and extend utilities, including water, electricity, and telecommunications services. RD programs also create jobs by funding the growth and creation of rural businesses and cooperatives. RD provides assistance through direct or guaranteed loans, grants, technical assistance, research, and educational materials.

Rural Development provides loans to low and moderate income applicants located in rural geographic areas to assist them in obtaining single family housing through multiple programs. A limited number are larger than one acre of land with the home. The Single-Family Housing Direct loans are located in each of the 50 states and U.S. territories that include Puerto Rico, Guam (and its Islands) and the Virgin

Islands.

The Agency processes loan originations and limited servicing functions through state and field offices.

3.0 OBJECTIVE

To support this program, USDA Rural Development, PMO requires the services of qualified persons or firms to provide appraisal services, in accordance with Title 7 Code of Federal Regulations (CFR) Part

3550 and Handbook-1-3550, Chapter 5, Section 5 “Appraisals” which may be located at:

http://www.rurdev.usda.gov/Handbooks.html or http://www.rurdev.usda.gov/SupportDocuments .

The contractor shall meet the following minimum qualifications in order to meet the appraisal criteria:

• Have a valid State Appraisers License in Real Estate Property Appraisals, for the state the property is located;

• Comply with Title 7 Code of Federal Regulations (CFR) Part 3550 and Handbook-1-3550, Chapter

5, Section 5 “Appraisals” http://www.rurdev.usda.gov/Handbooks.html http://www.rurdev.usda.gov/SupportDocuments

NOTE TO QUOTERS: Award of an Agreement does not guarantee the Contractor any minimum number of accounts during the term of this contract.

4.0 REQUIREMENTS

4.1 Unusual Situations: Delays. In the event that a situation arises that will prevent timely completion, the Contractor must notify the Contracting Officer or designee within 5 business days of becoming aware of the delay. The following delays shall be considered as no fault of the contractor.

The time frame of completion may be adjusted accordingly when such action occurs.

• Natural disaster which has caused substantial and immediate damage to entire area

5.0 DELIVERABLES

5.1 Acknowledgement of Assigned Cases. Within 3 working days after physical acceptance of a borrower case file, the contractor shall acknowledge receipt by written memorandum to the

Contracting Officers Representative (COR) with a courtesy copy to the Contracting Officer (CO). A single memorandum may acknowledge receipt of multiple cases. Memorandums may be delivered via e-mail or electronic system. OR, acceptance may be in the form of starting performance. IAW FAR

13.004(b), When appropriate, under Simplified Acquisition Procedures, the vendor may indicate acceptance by furnishing the services ordered or by proceeding with the work to the point where substantial performance has occurred.

5.2 Communication. The contractor shall document all communication with the borrower in writing and provide a copy to the Contracting Officer’s Representative.

5.3 Expected Timeframes.

Appraisal assignments will be classified in one timeframe category at the time of engagement;

• Standard: Standard timeframe appraisal assignment requests will be completed and delivered within 14 calendar days of the appraisal order being received.

6.0 APPRAISALS

General Information and Requirements for Real Property Appraisals

6.1 Client and Intended Users

The United States Department of Agriculture (USDA), Rural Development Agency is the client and only intended user.

6.2 Purpose

For determining and reporting to the USDA the value of Single-Family properties based on one of three value types and definitions to be communicated in each individual assignment engagement;

(Market Value).

6.3 Requirements for Appraisers

All real property appraisers performing appraisals under this program shall be either State Certified

Residential or State Certified General licensed appraisers in the state where the subject property is located and be in good standing with the licensing authority where the credential was issued, in conformance with

Title XI of the Financial Institution’s Reform, Recovery and Enforcement Act of 1989 (FIRREA).

6.4 Standards

All appraisals must comply with the most current edition of the Uniform Standards of Professional

Appraisal Practice, USDA Rural Development appraisal requirements per regulation and policy in effect at time of valuation, and any and all assignment condition requirements of the United States

Department of Agriculture, Rural Development.

6.5 Property Access and Observation

All property appraisal assignments will require an interior inspection. A reasonable business effort must be made by the appraiser to gain access and observe the subject property, including the interior of the improvements. If the appraiser is unable to gain permissive access to the subject property and improvements, USDA, with prior approval, may allow the assignment to be converted to an Exterior-Only

Inspection Residential Appraisal.

6.6 Appraiser Independence

The appraiser engaged for the assignment shall develop and report an independent opinion of value. No party shall attempt to influence the results, opinions, or conclusions of the appraiser.

6.7 Delivery of Real Property Appraisal Reports

Completed appraisal reports shall be delivered electronically in a digitally signed and secured portable document format (pdf).

6.8 Opinions of Value “As-is” or “Subject to”

Individual appraisal assignment engagements may request a value opinion of the subject property in an

“as is” condition and/or “subject to” any repairs listed by the USDA in the assignment order.

7.0 REAL PROPERTY APPRAISAL REPORTING ASSIGNMENT CONDITIONS

Describing and Reporting the Observed Condition of the Subject Property

The client will rely heavily on the reported physical condition descriptions, photographs, and characteristics of the subject property to make decisions. The client requires a higher level of detail in the report’s description of the subject’s physical condition and observed deferred maintenance. The USDA requires that the appraiser be objective and report in enough detail to adequately describe the actual physical condition observed, in a manner that will be meaningful and not misleading.

7.1 Appraisal Reporting Options, Forms, and Addendums required by the Client

The client requires appraisal reports comply with the most current edition of USPAP, are reported to meet the requirements of appraisal report, and are presented in compliance with the Uniform Appraisal

Dataset (UAD). The specific reporting form types adopted and required by the USDA will be communicated in each appraiser assignment engagement. Common appraisal industry reporting forms that may be requested by the client include;

• Fannie Mae URAR (Form 1004) - This form can be found at the following websites:

https://www.fanniemae.com/content/guide_form/1004.pdf

• Fannie Mae Exterior-Only Inspection Appraisal Report (Form 2055) - This form can be found at the following websites:

https://www.fanniemae.com/content/guide_form/2055.pdf

• Fannie Mae Manufactured Home Appraisal Report (1004c) - (FNMA Form 1004C/FHLMC Form

70B) have been combined into one appraisal report. The two documents will be one and the same.

This form can be found at the following websites: https://www.fanniemae.com/singlefamily/selling-servicing-guide-forms?taskId=task-71

• Fannie Mae Individual Condominium Unit Appraisal Report (Form 1073) - FNMA Form

1073/FHLMC Form 465) has been revised; this property type is no longer indicated on the URAR.

The revised form excludes exterior inspections. Appraisals with interior inspections for condominiums should be completed on this form. This form can be found at the following websites:

https://www.fanniemae.com/singlefamily/selling-servicing-guide-forms?taskId=task-71

• Fannie Mae Exterior-Only Individual Condominium Unit Appraisal Report (Form 1075) - This form can be found at the following websites:

https://www.fanniemae.com/content/guide_form/1075.pdf

7.2 Supplemental appraisal report addendums required by the USDA:

• Floor plan or Sketch Addendum

• Subject and Comparable Sale Photo Addendums (to include interior photos of subject and all improvements located on the subject’s site)

• Location Map Addendum

• Supplemental Addendums that include copies of data or listing sheets for the subject and comparable sales utilized for analysis.

8.0 STANDARDS

8.1 Statutes, Laws and Regulations. All legal, enforcement and collection actions on the part of the contractor must be in compliance and consistent with all Federal, State and local statutes, regulations and ethical standards which apply to the liquidation of real estate collateral and collection of debt.

These include but are not limited to:

• Privacy Act of 1974, as amended (5 U.S.C. 552a)

• The Fair Debt Collection Practices Act (15 U.S.C. 1692 st seq.)

• The Debt Collection Act of 1982, as amended (P.L. 97-365)

• The American Bar Association Model Rules and Professional Responsibility (1983)

9.0 AUTOMATED INTERFACES

http://www.fanniemae.com/content/guide_form/1004.pdf http://www.fanniemae.com/content/guide_form/1004.pdf http://www.fanniemae.com/content/guide_form/2055.pdf http://www.fanniemae.com/content/guide_form/2055.pdf http://www.fanniemae.com/singlefamily/selling-servicing-guide-forms?taskId=task-71 http://www.fanniemae.com/singlefamily/selling-servicing-guide-forms?taskId=task-71 http://www.fanniemae.com/singlefamily/selling-servicing-guide-forms?taskId=task-71 http://www.fanniemae.com/singlefamily/selling-servicing-guide-forms?taskId=task-71 http://www.fanniemae.com/singlefamily/selling-servicing-guide-forms?taskId=task-71 http://www.fanniemae.com/singlefamily/selling-servicing-guide-forms?taskId=task-71 http://www.fanniemae.com/singlefamily/selling-servicing-guide-forms?taskId=task-71 http://www.fanniemae.com/content/guide_form/1075.pdf http://www.fanniemae.com/content/guide_form/1075.pdf

9.1 Automated Interfaces-On Line System Access

The Contractor’s on-line system shall be approved by USDA and have a security system that prevents unauthorized access. The Contractor shall provide access to identified authorized USDA and contractor quality assurance personnel only. The contractor shall consider all appraisal and or property information as confidential and will only allow authorized USDA personnel access to such information.

10.0 DOCUMENTATION

10.1 Bills/Remittances-Delivery Address

USDA will furnish the Contractor with a mailing address where bills and information are to be delivered. Changes in these addresses shall be made only with the authorization of the

COR.

10.2 Invoice -Delivery Schedule

The Contractor shall furnish all invoice information to USDA with sufficient lead time as to allow adequate processing time for Agency staff. The following schedule shall be adopted and adhered to by the Contractor as the shortest time frame for the delivery of bills to USDA:

• 30 days from date service is performed

PERFORMANCE REQUIREMENT SUMMARY

REQUIRED SERVICE

STANDARD

MAXIMUM ERROR

RATE (MER) or

PERFORMANCE

REQUIREMENT (PR)

METHOD OF

SURVEILLANCE

INCENTIVE

Delivery of all non-urgent appraisals within 14 calendar days of order.

Meet required service level (98%).

2% Contract Award date or

Appraisal order date by state housing field staff to date receipt of compete appraisal report.

Re-inspection reports are due within 7 business days after notification is received.

Meet required service level (98%)

2%

State field staff notification to the appraiser to date of receipt of re-inspection report.

Delivery of all appraisals accurately based off delivery schedule and compliance with HB-3550.

Meet required service level (99%).

1% State field staff or COR will track the overall delivery and compliance of all deliverables.