Appraisal_Instructions.docx

Attachment A – Appraisal Instructions

1. Qualifications

Appraiser shall have the following qualifications:

a. Required - Appraiser shall have a current California “Certified General” (AG) real estate appraiser license issued in accordance with Title XI of Reform, Recovery and Enforcement Act of 1989 and the California Code of Regulations Title 10, Chapter 6.5 (Real Estate Appraisers).

b. Preferred – Significant professional experience as demonstrated by professional references, including experience in valuation of government owned property. Membership and/or certifications from professional associations may be submitted in conjunction with professional references as evidence of professional experience and expertise.

2. Non-Discrimination Appraisal shall be administered without regard to race, color, national origin, or sex, in accordance with Title VI of the Civil Rights Act of 1964 (42 USC 2000d, et seq.).

3. Purpose of Appraisal The purpose of the appraisal report is to present the information gathered and reasoning used to estimate the fair market value of the subject property. The appraisal report shall be consistent with the purposes described in the RFP to which these instructions are attached.

4. Intended Use and User of Appraisal The client and property owner is the City of Hayward. The appraisal will be relied upon by the City of Hayward to evaluate the fair market value of the site and to inform internal decision making regarding potential sale or lease terms, agreements, and other issues related to potential disposition of the property.

5. Appraisal Performance Standards Compliance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (Uniform Act) and 49 CFR Part 24 is not required for this assignment, as the property is not subject to federal acquisition requirements.

The appraisal report shall be a written statement, independently and impartially prepared by a qualified appraiser, setting forth an opinion of a defined value of an adequately described property as of a specific date, supported by the presentation and analysis of relevant market information.

The appraisal shall be based on nationally recognized appraisal standards and techniques to the extent that such principles are consistent with the concepts of value and the rules on the admissibility of evidence of value in a court of law. The appraisal shall comply with the Uniform Standards of Professional Practice (USPAP).

The appraisal shall include consideration of site constraints and an analysis of the developable area. The appraiser shall conduct a detailed analysis of the site’s physical constraints, including but not limited to topography, grading limitations to maintain slope stability, drainage issues, limited access and needed infrastructure improvements.

The appraisal analysis should go beyond zoning and theoretical land use potential by considering feasibility factors such as site access, grading costs, easements, restrictive covenants, and constructible area of the site. Any limitations on developability must be explicitly stated and factored into the valuation. The appraiser must fully disclose all assumptions made, including those regarding site conditions and development feasibility.

6. Definition of Fair Market Value Appraiser shall use fair market value as the standard of value for the appraisal report. Fair market value shall be defined as per the California Code of Civil Procedure, Section 1263.320:

a. The fair market value of the property taken is the highest price on the date of valuation that would be agreed to by a seller, being willing to sell but under no particular or urgent necessity for so doing, nor obliged to sell, and a buyer, being ready willing, and able to buy but under no particular necessity for so doing, each dealing with the other with full knowledge of all the uses and purposes for which the property is reasonably adaptable and available.

b. The fair market value of property taken for which there is no relevant, comparable market is its value on the date of valuation as determined by any method of valuation that is just and equitable.

7. Organization, Content, and Sequence of Appraisal Report The city staff recommended organization, content, and sequence of the appraisal report should include, but not be limited to the following elements:

a. Front Cover

b. Title Page

c. Field Review Certificate

d. Certificate of Appraiser

e. Land value appraisal of the subject properties shown on Exhibit 2

f. Photographs

g. Parcel Remarks

h. Site Constraints and Developable Area Analysis

i. Sales Data

j. Summary of Comparable Data

k. Comparable Data Map

8. Appraisal Report Review and Submission

Appraiser shall submit an electronic copy of the draft appraisal report for the City review The reviewers shall have the opportunity to submit any comments pertaining to the draft appraisal report back to the Appraiser. Appraiser shall address all comments to the satisfaction of the reviewers prior to final submission.

The final accepted submission shall be one (1) bound original report with original wet signatures where the Appraiser’s signature is required, two (2) bound paper copies (pages in color where necessary) of the signed original and one (1) electronic copy of the signed original in PDF format.