35 appraiser organizations including the Appraisal Institute are asking Congress to prevent Freddie Mac and Fannie Mae from issuing appraisal waivers. Freddie and Fannie recently announced plans to no longer require appraisals for first purchase loans, as well as for mortgage refinancing. In a letter to the chairs and ranking members of the Senate Banking, Housing and Urban Affairs Committee and the House Financial Services Committee, the Appraisal Institute wrote: “We recognize that the Enterprises have, since 1994, been exempted from appraisal requirements established by Congress on the basis that their requirements exceeded those established by Congress and that they would continue to make responsible decisions. These new programs call this privilege into question.”

The Appraisal Institute offered some suggestions to Congress and to the FHFA: “At a minimum, the Agency should request the estimates of the number of loan purchase and refinance transactions that would be subject to the new programs and make those estimates public for comment by affected stakeholders and other experts.

In addition to the Appraisal Institute, organizations signing onto the letter to Congress were: American Society of Appraisers; American Society of Farm Managers and Rural Appraisers; Appraisers’ Coalition of Washington; Arizona Association of Real Estate Appraisers; Association of Texas Appraisers; California Coalition of Appraisal Professionals; Coalition of Appraisers in Nevada; Coalition of Arizona Appraisers; Colorado Association of Real Estate Appraisers; Columbia Society of Real Estate Appraisers; Delaware Association of Appraisers; Foundation Appraisers Coalition of Texas; Illinois Coalition of Appraisal Professionals; Kentucky Association of Real Estate Appraisers; Louisiana Real Estate Appraiser Coalition; Maryland Association of Appraisers; Massachusetts Board of Real Estate Appraisers; Michigan Coalition of Appraisal Professionals; Mississippi Coalition of Appraisers; National Association of Appraisers; National Association of Independent Fee Appraisers; New York Coalition of Appraiser Professionals; North Carolina Real Estate Appraiser Association; Ohio Coalition of Appraisal Professionals; Oklahoma Professional Appraisers’ Coalition; Real Estate Appraisers Association of California; Real Estate Appraisers of Southern Arizona; Rhode Island Real Estate Appraiser Association; South Carolina Professional Appraisers Coalition; Tennessee Appraiser Coalition; United Appraisers of Utah; Utah Association of Appraisers; Virginia Coalition of Appraiser Professionals; and West Virginia Council of Appraiser Professionals.

 

A bill was introduced in the PA House of Representatives which stating that “in the case of a partial taking of the property of a condemnee, a condemnor may not render the remaining parcel inaccessible to the condemnee by creating a landlocked property with no ingress or egress to or from a public road or highway.” The bill contains an exception in the event the condemnee consents to that taking. The bill, HB 1773, was introduced on September 12, 2017 and was referred to the Committee on State Government.

Freddie Mac announced that it will utilize automated collateral evaluations to determine when an automated appraisal can be used for new home mortgages and refinancing. ACE uses data from multiple listing services, public records and historical home values to determine collateral risks. This decision was criticized by the Appraisal Institute. “Since 1994, the government sponsored enterprises have been exempted from appraisal requirements established by Congress on the basis that they would make responsible decisions,” said Appraisal Institute President Jim Amorin, MAI, SRA, AI-GRS. “Last week’s announcement to waive appraisals in blind loan purchase decisions calls this privilege into question, as it will undoubtedly result in a race to the bottom and create more risk for taxpayers.”

A Florida developer petitioned the U.S. Supreme Court to hear a $10 million takings case against the Florida Department of Environmental Protection  The developer alleged that the DEP’s denial of a development permit for a beachfront parcel was an unlawful taking. The developer intended to build 17 luxury townhouse units Fort Pierce, Florida

The trial court found the DEP’s denial constituted a taking. However, the Florida Court of Appeals reversed that decision and the Florida Supreme Court denied the developer’s petition to hear the case. The Court of Appeals found that the developer should have applied for a variance or waiver after its permit was initially denied even though the trial court found that a request for variance or waiver would have been futile. Therefore, the Court of Appeals held, the case was not “ripe.”

The developer’s petition for writ to Scotus states, “This Court should grant Beach Group’s Petition for writ of certiorari to address the miscarriage of justice resulting from the court of appeal’s reversal of the trial court’s order of taking, and to address the important federal questions of (1) whether landowners must submit and be denied economically impracticable development plans to ripen a regulatory taking claim, and (2) whether regulatory taking ripeness always requires pursuit of a variance, essentially doing away with this Court’s futility exception.”

NC has announced that the following counties will begin the tax reassessment appraisal process of real properties in January 2018:

BEAUFORT COUNTY                  MITCHELL COUNTY

CLAY COUNTY                              ONSLOW COUNTY

FRANKLIN COUNTY                   ROBESON COUNTY

GRANVILLE COUNTY                 WATAUGA COUNTY

 

 

 

Federal agencies are considering raising the threshold for commercial real estate transactions requiring an appraisal from the current level of $250,000 to $400,000. The agencies including the Federal Reserve Board, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency have stated that they believe raising the floor will greatly reduce the number of transactions that require an appraisal and save costs and expenses in these transactions.  The proposal requires that commercial real estate transactions at or below the threshold receive an “evaluation” which are less detailed than appraisals and do not require completion by a state licensed or certified appraiser.

 

New Jersey has adopted a “property taxpayer bill of rights” seeking to assist property owners with the real estate assessment process. New Jersey has one of the nation’s highest property taxes. Bill A-4007 requires the state division of taxation director to list taxpayers’ real property rights “in simple and nontechnical terms” and post it on the website of the various county tax boards and municipalities in the state. It also provides taxpayers with the “right to understand the calculation of the assessment on their real property, the right to detailed information about how to appeal an assessment of real property and the right to view the real property assessment of any other parcel of real property in the municipality in which the taxpayer’s property is located.”

The Utah legislature is considering policy changes regarding the acquisition of land for new charter schools and further expansions of existing schools. Specifically, there currently is uncertainty as to the eminent domain powers of charter schools in that state.

The Utah Administrative Rules Review Committee questioned what authority charter schools have to call on the state to seize property through eminent domain laws. Kristen Elinowski, a spokeswoman for the State Charter School Board, said because Utah’s eminent domain statute predates Utah’s charter schools policies, there is need for specific clarification of whether it is the state board of education, the charter school board or the charter school that should be the entity involved in approving the use of eminent domain.

The Georgia Supreme Court is considering an important case involving the state’s 2006 Landowner’s Bill of Rights statute. At issue is whether certain provisions of that statute are mandatory or merely advisory. The GA appeals court ruled that the City of Marietta violated that statute by not providing the property owner with details of the city’s appraisal of his property. The Landowner’s Bill of Rights says that the condemning authority should give the property owner an opportunity to accompany the appraiser during inspection, and provide the owner with “a written statement of, and summary of the basis for,” the offered amount. Marietta argues that these are not mandatory requirements. Oral argument was done last month.

Oregon has enacted legislation establishing a specific statute of limitations on civil actions against appraisers and appraisal firms for real estate appraisal activity. The law takes applies only to appraisals performed after January 1.  It requires that any civil action against an appraiser or an appraisal firm commence within six years after the date of the “act or omission giving rise to the action.” The limitations will not apply to actions that allege fraud or misrepresentation.