12 USC 4103 - Appraisal and preservation value of eligible low-income housing

U.S Code last checked for updates: May 01, 2024

§ 4103.

Appraisal and preservation value of eligible low-income housing

(a)

Appraisal

Upon receiving notice of intent regarding an eligible low-income housing project indicating an intent to extend the low-income affordability restrictions under section 4109 of this title or transfer the housing under section 4110 of this title, the Secretary shall provide for determination of the preservation value of the housing, as follows:

(1)

Appraisers

(2)

Notice

Not later than 30 days after the filing of a notice of intent to seek incentives under section 4109 of this title or transfer the property under section 4110 of this title, the Secretary shall provide written notice to the owner filing the notice of intent of—

(A)

the need for the owner to acquire an appraisal of the property under paragraph (1);

(B)

the rules and guidelines for such appraisals;

(C)

the filing deadline for submission of the appraisal under paragraph (1);

(D)

the need for an appraiser retained by the Secretary to inspect the housing and project financial records; and

(E)

any delegation to the appropriate State agency by the Secretary of responsibilities regarding the appraisal.

(3)

Timeliness

(b)

Preservation value

For purposes of this subchapter, the preservation value of eligible low-income housing appraised under this section shall be—

(1)

for purposes of extending the low-income affordability restrictions and receiving incentives under section 4109 of this title, the fair market value of the property based on the highest and best use of the property as residential rental housing; and

(2)

for purposes of transferring the property under section 4110 or 4111 of this title, the fair market value of the housing based on the highest and best use of the property.

(c)

Guidelines

The Secretary shall provide written guidelines for appraisals of preservation value, which shall assume repayment of the existing federally assisted mortgage, termination of the existing low-income affordability restrictions, simultaneous termination of any Federal rental assistance, and costs of compliance with any State or local laws of general applicability. The guidelines may permit reliance upon assessments of rehabilitation needs and other conversion costs determined by an appropriate State agency, as determined by the Secretary. The guidelines shall instruct the appraiser to use the greater of actual project operating expenses at the time of the appraisal (based on the average of the actual project operating expenses duri

(1)

Residential rental value

(2)

Highest and best use value

(Pub. L. 100–242, title II, § 213, as added Pub. L. 101–625, title VI, § 601(a), Nov. 28, 1990, 104 Stat. 4250; amended Pub. L. 102–550, title III, § 302, Oct. 28, 1992, 106 Stat. 3763.)

cite as: 12 USC 4103