FLP_Appraisal_Roles_and_Responsibilities_ODNR_2025.pdf

Basic Procedures for Forest Legacy Program Appraisals for the Ohio Department of Natural Resources

September 2025

This document is intended to provide detailed guidance for application to individual projects. These procedures are meant to provide clarity regarding the important role of each participant in the appraisal process. To that end, the roles and responsibilities of each of the project partners are outlined as follows:

A. ODNR will:

1. Obtain an appraisal that meets Forest Legacy Program (FLP) requirements. The typical and preferred method for obtaining an appraisal is for the State to contract directly for private appraisal services.

2. Be familiar with the subject property and its relevant characteristics (e.g., structures and other improvements located on the property, access to public roads, utilities, land cover and topography, etc.) prior to requesting the appraisal.

3. Work with the US Forest Service (FS) FLP Realty Specialist to prepare and jointly review documents needed for the property or property interest to be appraised prior to officially commencing the appraisal process. For all cases, provide a copy of any recent transactions involving the subject property (e.g., options to purchase or sale agreements) and information on any other nearby properties under the same or related ownership. If conservation easements are involved, provide a copy of the final proposed easements. Land area and the estates to be transferred need to be fully identified and understood prior to engaging the contract appraiser.

Mineral estates, type of conveyance deeds, reservations and exceptions need to be defined.

4. Provide the Review Appraiser on a timely basis with all other pertinent information.

5. Utilize a Contract Appraiser meeting standards that have previously been determined to be

“assignment qualified” by the Review Appraiser when contracting for appraisal services. In consultation with the Review Appraiser and/or the landowner, identify any contractors that have done prior valuation work on the subject property or that may have potential conflicts of interest.

In most cases, the FS will discourage use of a vendor that has done any prior or preliminary valuation work. The State will use its existing contracting processes and standards in bidding, identifying, and entering into an Agreement with a qualified Contract Appraiser. The final approval of Contract Appraiser qualifications will always reside with the Review Appraiser.

6. In conjunction with the Review Appraiser, review the Contract Appraiser qualifications contained in the current version of the FLP Implementation Guidelines (Section 16) before the Contract

Appraiser is employed to conduct a project appraisal. In cases where the appraisal is reviewed by a Contract Review Appraiser, it is expected that the State will verify the qualifications of potential “assignment qualified” appraisers and Contract Review Appraisers to be consistent with the scope of work for the assignment. Forest Service Appraisal Services staff are available to assist the States in these situations upon request.

7. Ensure that qualified appraisers are trained and competent in appraisal, appraisal review, and knowledgeable of Federal Standards. ODNR may use State, Contract, or Federal appraisal and/or review services.

8. Confirm that ODNR has provided a copy of the signed appraisal contract between the State and the Contract Appraiser to the Review Appraiser.

9. Attend the appraisal pre-work meeting or teleconference for the project. The State’s role at the pre-work meeting or teleconference would be to provide factual information about the subject property and to answer the Contract Appraiser’s questions regarding the contract.

10. Optionally attend the site visit with the Contract Appraiser. Coordinate with the Review

Appraiser if intending to do so. The State’s role at the site inspection may include providing factual information about the subject property, answering Contract Appraiser questions regarding the contract, and identifying whether any changes have occurred to the subject property.

11. Report any observed changes in the property condition or estate to the Review Appraiser.

12. Communicate any issues, concerns, or additional information that may arise during the appraisal process only to the Review Appraiser. ODNR FLP staff are the sole point of contact between the

Review Appraiser, the State, and the landowner. If warranted, the Review Appraiser will arrange a conference call or meeting with the Contract Appraiser, the State, and possibly the FS Realty

Specialist. The State may discuss contractual issues with the Contract Appraiser, but shall not discuss opinions, analysis, or conclusions prior to completion of the technical appraisal review report and approval of the appraisal report.

13. Provide a copy of the Technical Appraisal Review Report (TARR) to the FS Forest Legacy

Program Manager if a Contract appraisal review.

14. Promptly raise any issues to the Review Appraiser that may warrant reconsideration by the

Review Appraiser or Contract Appraiser after landowner receipt of the approved value of the subject property.

15. Avoid making an offer to purchase real property or interests in real property until after the appraisal review confirms that the appraisal meets the most recent Uniform Appraisal Standards for Federal Land Acquisitions (UASFLA), in recognition of the potential risk that the appraisal will not be approved for use for FLP payment purposes.

16. Confirm that the estate appraised matches the estate to be acquired. If there are any changes to the estate (e.g., changes in ownership, title status, new legal description, modified terms in a conservation easement, etc.) after the appraisal has been approved, the State shall contact the review appraiser and provide the information concerning the revised estate.

B. The Review Appraiser will:

1. Prepare the preliminary appraisal instructions to be incorporated into the contract specifications for the project, which identifies the USDA Forest Service and Ohio Department of Natural

Resources as the only Clients; specifies that the appraisal opinions, conclusions, and/or report

(prior to review and approval) shall only be transmitted to the Review Appraiser; and requires the final, approved appraisal report be delivered to the client according to the contract and the appraisal instructions.

2. Coordinate with ODNR to identify characteristics of “assignment-qualified” appraisers for each appraisal assignment based on qualifications, market familiarity/geographic coverage, property type to be appraised, scope of work, and completion of current training in the most recent version of the UASFLA.

3. In conjunction with ODNR, review the Contract Appraiser qualifications contained in the current version of the FLP Implementation Guidelines (Section 16) before the Contract Appraiser is employed to conduct a project appraisal

4. Approve the final selection of the Contract Appraiser based on their qualifications to complete the appraisal assignment.

5. Organize and conduct a pre-work meeting or teleconference between the chosen Contract

Appraiser, the Review Appraiser, and ODNR. Per the FLP Implementation Guidelines, the pre-work meeting or teleconference must occur before the appraisal takes place. The Review

Appraiser will finalize the project specific appraisal instructions as a result of the consultation.

6. Attend the site inspection with the Contract Appraiser, at the discretion of the Review Appraiser.

7. Communicate any issues, concerns, or additional information that may arise during the appraisal process to the State. If warranted, the Review Appraiser will arrange a conference call or meeting with the Contract Appraiser and the State in attendance.

8. Promptly notify the State of any delays encountered during the appraisal process and enlist their aid in removing obstacles, as appropriate. Regularly provide status updates to the State and FS

FLP Program Manager, as necessary.

9. Review the appraisal report for compliance with the appraisal instructions, contracting specifications, including applicable appraisal standards (UASFLA, USPAP, FS policy, and FLP

Implementation Guidelines). At the discretion of the assigned Review Appraiser, perform a field review of the subject and comparable sales. In most cases, a field review by the Review

Appraiser is expected. The Review Appraiser provides comments to the Contract Appraiser regarding items found in the appraisal report. These communications are shared solely between the Review Appraiser and the Contract Appraiser.

10. Approve or reject the final appraisal report and notify the Contract Appraiser to send copies to the client per the contract.

11. Deliver a copy of the Technical Appraisal Review Report (TARR) to ODNR.

12. Respond to issues that may warrant reconsideration and determine the need for any additional appraisal or appraisal review work.

C. Contract Appraiser will:

1. Report unsolicited contact from anyone including the FS, State, or NGO to the Review

Appraiser. The Contract Appraiser shall not disclose any opinions, analysis, or conclusions to anyone other than the Review Appraiser prior to review and approval for agency use.

2. Perform work and deliver reports in accordance with the contract and appraisal instructions within the time frame specified in the contract.

3. Attend the pre-work meeting or teleconference organized by the Review Appraiser. Per the

FLP Implementation Guidelines, the pre-work meeting or teleconference must occur before the appraisal takes place.

4. Perform a site inspection of the subject property and all comparable sales relied upon in the analysis.

5. Provide advance notice of the Contract Appraiser’s request to inspect the subject property to the landowner (suggest at least 10 days advanced notice). The landowner shall be offered the opportunity to accompany the Contract Appraiser on the property inspection.

6. Comply with the confidentiality provision of USPAP unless specifically waived in writing.

7. Contact the Review Appraiser once the highest and best use (HBU) and larger parcel analysis is completed. The Contract Appraiser is expected to determine the feasibility of timber production (if applicable) within the HBU analysis. Refer to UASFLA 1.13, for the process and the Contract Appraiser’s role in obtaining Supporting Expert Opinions and

Reports. If the HBU includes timber production and the Contract Appraiser deems a timber inventory or timber cruise necessary, the Contract Appraiser shall inform the

Review Appraiser and work with the State to procure a timber inventory or timber cruise under a separate contract. The Contract Appraiser should contact the Review Appraiser if they believe one will be necessary based upon the HBU conclusion as soon as possible during the appraisal process. The Contract Appraiser is solely responsible for determining the need for any consultant reports (e.g., market experts, geologists, hydrologists, mineral specialists, timber cruisers, communications experts, etc.).

8. Respond to review comments or revision requests in a timely manner.

D. FS FLP Realty Specialist will:

1. Conduct an in-person site visit of the subject property as necessary and when practicable, but in all cases be knowledgeable of its characteristics prior to submitting the Request for Appraisal

Services (RFAS) for FS Review or approval to proceed with appraisal procedures for

State/Contract Review.

2. Assure that due diligence information provided by the State and/or the NGO Third-Party

Facilitator is complete and all issues are resolved prior to submission of the RFAS or prior to approval to proceed with contracting for appraisal services for State/Contract review.

3. Assure that all elements of the estate to be appraised are described and final prior to submission of a RFAS or prior to approval to proceed with appraisal procedures for State/Contract review

(i.e., timber rights, mineral rights, water rights, development rights, legal lots, reservations, conservation easement terms, etc.).

4. Prepare the RFAS for FS Appraisal Reviews and provide to the Forest Legacy Program

Manager, who will in turn submit to the Regional Appraiser. Provide all necessary additional information, maps, and exhibits to the assigned FS Review Appraiser on a timely basis.

5. Attend the pre-work meeting or teleconference organized by the Review Appraiser, if necessary or if desired.

6. Help facilitate and/or attend the property inspection, if requested by the Review Appraiser.

7. Agree that all contact with the Contract Appraiser will be with or through the Review Appraiser.

8. Promptly report any appraisal-related contact from the Contract Appraiser, the State, the NGO, or anyone else to the Review Appraiser.

9. Report any observed changes in the property condition to the Review Appraiser.

10. Help in other ways to facilitate the appraisal process, as requested by the Review Appraiser.

E. Landowner will:

1. Provide property specific information to ODNR and answer any questions the Contract

Appraiser may have during the appraisal process, including the details of the most recent sale of the property, any pending or past offers to purchase property, and the property history. Also, the landowner will provide copies of any current, expired, or pending leases, agreements, temporary or unrecorded easements or licenses, unrecorded surveys, building floor plans, timber contracts, hunting leases, and any other property information that could assist the appraiser (e.g., any known encroachments or unauthorized access to the property).

2. Be provided advance notice of the Contract Appraiser’s request to inspect the subject property. The landowner will be offered the opportunity to accompany the Contract

Appraiser on the property inspection. The landowner’s role at the site inspection is to provide factual information about the subject property, the market, and answer any Contract

Appraiser questions.

3. Direct any questions during the appraisal process to ODNR.

Important Points to Remember:

a. The FS will not consider an appraisal report that was contracted without FS’s involvement.

b. The FS and ODNR must be listed as the only Clients of the appraisal.

c. The Review Appraiser must write the appraisal instructions and approve the selected Contract

Appraiser.

d. A report will be considered an “unsolicited appraisal” and will be returned if any of the above has not been followed.

e. A value is not final until the appraisal report is reviewed and approved by a Contract Review

Appraiser.

f. Copies of appraisal reports or opinions of values shall not be discussed prior to appraisal report approval.

g. Disclosure of the appraisal report or appraisal-related information, including consultant reports, prior to acceptance and approval for agency use by the Review Appraiser will invalidate its use in support of an agency action.

h. FS valuation services are only provided in support of an immediate need of the government. The agency is not involved in any preliminary appraisal work for planning, funding, or negotiation purposes.

i. External requests for approved appraisal reports from anyone, including an NGO, should be made to the State. If the request is made to the federal government through FOIA it will be processed in accordance with agency policy.