Federal Financial Assistance 12/31/1991

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MEND FINDING: CONDITION: CRITERIA: Schedule of Findings and Questioned Costs A Review of an Appraisal For Property Acquisition Was Not Obtained. At the time the acquisition of the property was started it was not known that Community Development Block Grant funds would be utilized. The City obtained an appraisal for the property but the appraisal has not been reviewed by a qualified review appraiser. 49 CH( Part 24 Uniform Relocation Assistance and Real Property Acquisition Regulations for Federal and Federally Assisted Programs; Final Rule and Notice reads in part as follows: 24.104 Review of appraisals. The Agency shall have an appraisal review process and, at a minimum: (a) A qualified reviewing appraiser shall examine all appraisals to assure that they meet applicable appraisal requirements and shall, prior to acceptance, seek necessary corrections or revisions. (b) If the reviewing appraiser is unable to approve or recommend approval of an appraisal as an adequate basis for the establishment of the offer of just compensation, and it is determined that it is not practical to obtain an additional appraisal, the reviewing appraiser may develop appraisal documentation in accordance with §24.103 to support an approved or recommended value. (c) The review appraiser's certification of the recommended or approved value of the property shall be set forth in a signed statement which identifies the appraisal reports reviewed and explains the basis for such recommendation or approval. Any damages or benefits to any remaining property shall also be identified in the statement. RECOMMENDATION: As of the date of this report the City is in the process of negotiating a purchase price with the property owner. We recommend that the City obtain a review of the appraisal prior to the purchase of the property. CITY'S RESPONSE: The City has requested that the Anoka County Assessor's office review the City's appraisal of the property.