835 R.I. Code R. 835-RICR-30-00-3.6

Current through December 3, 2024

Section 835-RICR-30-00-3.6 - The Review Process

A. The review process operates in conformance with the Rhode Island General Laws and the Federal Uniform Relocation Assistance and Real Property Acquisition Policies for Federal and Federally Assisted Programs (42 U.S.C. § 4651).

B. The Reviewer has both a routine function, such as factual and mathematical verification and an analytical function. He/she is responsible for assuring that all computations within the appraisal report are correct. This includes verifying that factual information is accurate. It also includes proper identification of the property being appraised and the conformance with standard appraisal procedures and Federal guidelines. The analytical function of the review process and an analysis of the appraiser's reasoning are the most important aspects of this process. In this portion of the review, the individual should be concerned with the general analysis of the appraiser's thought process and the approach of the appraisal problem to the current real estate market. The Reviewer must be sure that the appraiser has not only prepared a report that meets all technical requirements, but more importantly, that the final estimate of market value adequately reflects just compensation. It is not the Reviewer's function to second guess the appraiser, but rather to assure that the Commission's estimate of market value is supported, and fair and equitable to the property owner, the tenant, and the public.

C. Responsibilities of the Review Appraiser:

1. The Reviewer must:

a. Verify all data contained in the appraisal report such as zoning classifications, tax rates, square foot area affected, adjustments, etc.

b. Ascertain that all computations and calculations in the appraisal report are correct. This would include cubic or square foot computations; referral and recalculation of cost index figures used; calculation of interest rates, land areas; the transposition of all the data on the comparable sales from the project data book to the appraisal report; verification of correct plat and parcel numbers; ascertaining that proper identification is contained on all photographs, and that all sales have been appropriately verified, etc. In substance, this check is of all the specific data used in the appraisal.

c. In addition to verifying the property zoning classification against the appraiser's determination of same, verify the tax assessment data. The Reviewer should also verify all physical details of the subject property such as land areas, improvements, building measurements, and topography. He/she must review the sales location map, property sketch, and the drawings indicating the areas of the land acquisition and/or temporary and permanent easements. The construction plans and cross sections should be reviewed to determine if the effect of construction is correctly reported and interpreted in the appraisal report.

d. As the review of the appraisal is completed, the completed project is given to the Project Coordinator, along with a notation of the deficiencies and/or recommendation for payment. In the case of a questionable appraisal, the Project Coordinator must make the determination as to what steps are necessary on the part of the appraiser prior to payment being authorized.

D. Market Value Review

1. The second portion of the review process is the establishment of the Commission's estimate of market value. This review, discussed in § 3.5 of this Part under Authority and Responsibilities of the Review Appraiser, is accomplished through:

a. A qualitative analysis of each appraisal report, including an evaluation of the plans and specifications to ascertain a determination of direct and indirect damages and that the value after acquisition is consonant with the effect of construction and the right of way appraisal requirements.

b. Verification that the mandated personal inspection of each property appraised is performed including a personal inspection of the interior of all buildings acquired or damaged.

c. A thorough check and analysis to be sure that all factual and supporting data is included in the appraisal.

d. A personal inspection of all comparable sales. When buildings are acquired or damaged, the Review Appraiser will perform a complete interior inspection of the applicable comparable sales. If a large number of sales are involved, he/she will perform sufficient interior inspections to check on the qualitative and quantitative judgments contained in the appraiser's analysis.

E. Uneconomic Remnant

1. Once a review is completed of the "before and after" appraisal format, the Review Appraiser may be of the opinion that the remainder portion of the subject parcel had been affected to a degree that it would be considered to have little or no value or utility to the property owner of record as of the date of the appraisal. In this case, the Review Appraiser would then submit written comments to the Project Coordinator explaining the conditions that may exist, so as to aid in the Coordinator's concurrence to suggest the remainder portion of the subject parcel be declared an uneconomic remnant. The Executive Director will then be notified by the project Coordinator regarding this matter. The Chairman, Executive Director, or Director of Executive Affairs will make the final decision and will notify the Project Coordinator to proceed accordingly.

2. The culmination of the review process is the point when the Review Appraiser, in writing, establishes the actual figure that represents market value. In order to supply adequate documentation, the Review Appraiser is required to include on the Review Form the date on which the appraisal was reviewed. In addition, the date on which site inspections of the property and comparable sales (exterior or interior, as necessary) were made and a complete discussion of his/her reasoning together with any additional documentation required that summarizes the estimate of market value.

3. Upon completion of the review, the pertinent data is entered on the Project Appraisal and appraisal Review Record by the Reviewer. Copies of the appraisals with the Review Form are provided to the Project Coordinator.

F. Excess Acquisition

1. In certain instances, it may be both feasible and equitable to acquire a large portion or the whole property rather than the required portion of the subject property for sewer related needs.

G. Building Sellback Valuation

1. It is the responsibility of the review appraiser to determine a sellback value for all building structures and residential dwellings.

2. On occasion there are instances where a sewer acquisition may render a dwelling damaged, without actually necessitating the demolition or removal of the dwelling. In such instances, the Commission may decide to acquire the dwelling and treat the occupants as displaced persons, and thereby afford all applicable relocation benefits. When this situation occurs, it would not be appropriate to sellback the dwelling to the original owner unless the dwelling itself was to actually be relocated. To sellback an acquired dwelling at a salvage value without the need to actually relocate the dwelling could result in an unintended windfall profit for the original owner. In such cases, there will be no sell back value offered to the original owner and the dwelling will be scheduled for eventual demolition as part of the sewer project.

3. Where sellback values for structures are necessary, the following procedure is to be employed:

a. The sellback value assigned to a dwelling should be based on past historical values actually bid at public auctions held by this Commission or any other auctions that may have taken place in the open market where the dwelling had to be relocated to another site.

835 R.I. Code R. 835-RICR-30-00-3.6