Rule 164-2-03 | Appraisals.
An application for clean Ohio funding must adhere to the commission's standards and procedures for appraisal reporting. An application for funding or an application to exchange real property previously protected by clean Ohio deed restrictions for real property not so restricted, submitted to the natural resource assistance council (NRAC) shall include an independent real estate appraisal prepared by an Ohio licensed real estate appraiser, who is also a prequalified consultant for the Ohio department of transportation. The appraisal report, a restricted appraisal report, or an appraisal review shall set forth the value of the real estate interest to be acquired and if applicable, the value of the real estate interest to be exchanged.
(A) The value of timber (the "timber value") may be used as local match on a property acquired as a bargain sale. A qualified independent forester or timber appraiser may perform a timber appraisal of the real property to be acquired to determine the timber value in accordance with normally accepted valuation criteria. The value of timber generally considers the volume of timber on the property, the species, composition, the quality, and other related factors to determine the current timber value.
If timber value is to be used as local match, it is the applicants responsibility to provide the timber value to the appraiser. The appraiser shall use the timber value in accordance with normally accepted appraising standards in determining the value of the real property being appraised.
(B) Each NRAC shall specify in their guidance to applicants whether they will accept a restricted appraisal report instead of an appraisal report with the application for funding. If an application for funding is to be funded and the application was supported by a restricted appraisal report, the restricted appraisal report must be converted to an appraisal report as part of the request to proceed submittal to the commission supporting the value of the real estate interest to be acquired.
(C) The applicants costs for obtaining an appraisal report, a restricted appraisal report, an appraisal review, or a timber appraisal are an eligible cost and reimbursable in accordance with the project agreements participation ratio.
(D) The appraiser who submits an appraisal report, a restricted appraisal report, or an appraisal review must provide written certification that they have received and have read this rule and include the certification in the appraisals letter of transmittal. The commission will not approve the request to proceed without this written certification.
If the real property interest to be acquired is a conservation easement, the appraiser may be a member of the appraisal institute who has successfully passed the valuation of conservation easements professional development program.
The commission may approve projects where the purchase price of the real estate interest to be acquired exceeds the appraised value by up to five per cent is validated and approved by the NRAC. A real estate interest to be acquired with a purchase price more than five per cent of its appraised value must be funded by the applicant with funds other than clean Ohio funds.
Last updated February 15, 2024 at 2:24 PM
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