North American Wetlands Conservation Act and Neotropical Migratory Brid Conservation Act January 2006

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U.S. GRANT ADMINISTRATION STANDARDS- JANUARY 2006 North American Wetlands Conservation Act and Neotropical Migratory Bird Conservation Act F -6 Are appraisals required? Appraisals are required unless of the following exceptions apply: (1) the market value is estimated to be less than $10,000, and appropriate documentation is provided showing that this valuation is reasonable and uncomplicated; or (2) there is an alternative valuation formula authorized by law, regulation, or FWS policy, as for specific categories of properties. An approved alternative valuation process is currently applicable to easements in the prairie pothole region of the United States. If the buyer obtains an appraisal even though the market value is $10,000 or less, it must be used as the sole determinant of market value unless the Recipient or subrecipient can conclusively demonstrate that it is not accurate. Whatever method is used to determine value, the valuation must be certified by the Recipient or subrecipient. The Grant Officer may require the Recipient or subrecipient to submit additional documentation if he or she finds any informal determination of market value to be insufficient or if the Grant Officer does not concur with the analysis and conclusions. Regardless of the method of real property valuation, the date of the valuation must be within 12 months of the buyer's contractual obligation to purchase property or of the title transfer, whichever establishes the purchase price. The FWS may require the Recipient or subrecipient to secure an updated valuation if a material change occurs in the local real estate market, the character or condition of the property, or its surroundings between the effective date of the valuation and the date of the transfer of title to the Recipient or subrecipient. F -7 What constitutes an acceptable appraisal? (a) If a non - Federal appraiser is used, the appraiser must be State - certified. (b) Any appraisal must conform to the Uniform Appraisal Standards of Federal Land Acquisition (UASFLA). F -8 Must appraisals be reviewed? Recipient or subrecipients may choose to have an appraisal reviewed by an independent state - certified or FWS review appraiser. Regardless of whether the Recipient or subrecipient requests an appraisal review, the FWS reserves the right to have any or all appraisals reviewed for federally assisted land acquisition. An appraisal must be reviewed if the notice requirements in Section F -4 are not met. F -9 Must the Recipient or subrecipient pay market value for real property? The Recipient or subrecipient must pay at least market value for any real property interest, unless the Recipient or subrecipient provides documentation of a bargain sale with a letter or signed statement from the seller that donates any difference between the market value and the selling price. If the Recipient pays more than the market value, the excess amount may not be paid with grant funds or be used as match. F -10 May the Recipient or subrecipient purchase real property subject to leases or occupied by tenants? 15