Waiver Valuation Procedures for Acquisitions $25,000 or Less
UNITED STATES DEPARTMENT OF THE INTERIOR
BUREAU OF LAND MANAGEMENT
WASHINGTON, D.C. 20240-0036
http://www.blm.gov
May 8, 2015
In Reply Refer To:
2100 (350) P
EMS TRANSMISSION 05/27/2015
Instruction Memorandum No. 2015-095
Expires: 09/30/2018
To: All Field Office Officials
From: Assistant Director, Energy, Minerals, and Realty Management
Subject: Waiver Valuation Procedures for Acquisitions $25,000 or Less
Program Area: Lands and Realty.
Purpose: This Instruction Memorandum (IM) establishes guidance and sets criteria for implementing procedures for waiver valuations in accordance with regulation 49 CFR 24.102.
Policy/Action: Department of the Interior (DOI) bureaus and offices adopted regulations under 49 CFR 24.102 implementing the Uniform Relocation Assistance and Real Property Acquisitions for Federal and Federally Assisted Programs Act (Uniform Act) of 1970, as amended (42 U.S.C. 4601, et seq.) to allow the bureau or office to prepare a waiver valuation for acquisition of properties estimated at $25,000 or less. The regulation at 49 CFR 24.102(c)(2) states, “an appraisal is not required if: (i) The owner is donating the property and releases the Agency from its obligation to appraise the property; or (ii) The Agency determines that an appraisal is unnecessary because the valuation problem is uncomplicated and the anticipated value of the proposed acquisition is estimated at $10,000 or less, based on a review of available data. Agencies may exceed the $10,000 threshold up to a maximum of $25,000; however, for values above the $10,000 threshold, up to a maximum of $25,000, the Agency must offer the property owner the option of an appraisal.” If the property owner elects to have an appraisal, the DOI bureau or office will obtain an appraisal.
The BLM’s current policy for waiver valuation of $2,500 is reflected in the current Acquisition Handbook transmitted under IM 2003-029, dated October 24, 2002. Effective immediately, the Bureau of Land Management (BLM) waiver valuation limit will increase from $2,500 to $25,000.
The realty specialist/BLM staff knowledgeable of the lands and realty program may use a waiver valuation if the property owner releases the BLM from its obligation to appraise the property, the estimated value is $25,000 or less, the valuation of the property is “uncomplicated,” and the property owner is provided the opportunity to accompany the realty specialist/BLM staff to the property.
Although the regulations do not require Agencies to offer the property owner the option of an appraisal for values at $10,000 or less, the BLM’s policy is that the realty specialist/BLM staff will offer the property owner the option of an appraisal for all acquisitions. If the property owner elects to have the property appraised, the BLM will request an appraisal through the Office of Valuation Services (OVS) and not use the waiver valuation procedures.
If the property owner declines an appraisal, but the other conditions listed above are present, the realty specialist/BLM staff may prepare the waiver valuation. The OVS will provide training and maintain a list of qualified realty specialist/BLM staff. The OVS will examine and provide feedback for all waiver valuations completed by the realty specialist/BLM staff. A waiver valuation is not an appraisal; therefore, OVS will not prepare or approve the waiver valuation product as they would an appraisal. The BLM State Director or the individual with delegated authority is authorized to approve waiver valuations that are $25,000 or less.
Timeframe: Effective immediately.
Budget Impact: The efficient use of the waiver valuation authority will provide a positive impact to the budget by reducing the use of BLM-funded valuation services, contractors, and staff workloads. The new waiver valuation policy will provide for more timely real property valuations action when compared to solicitation for contract appraisals.
Background: Title 49 CFR 24 implements the Uniform Act that applies to all acquisitions of real property or displacements of persons resulting from Federal or federally assisted programs or projects. The regulations provide for an Agency to employ a waiver valuation, defined as the valuation process used and the product produced when the Agency determines that an appraisal is not required. The realty specialist/BLM staff knowledgeable about the lands and realty program may use waiver valuation when the estimated value is $25,000 or less, and the valuation of the property is “uncomplicated.” Uncomplicated properties might include road and trail easements or small parcels where mineral estate, timber, improvements, and/or encumbrances are not present. The realty specialist/BLM staff preparing the waiver valuation must have a sufficient understanding of the local real estate market in order to determine a value of just compensation for the property. The property owner must agree to waive their rights to an appraisal.
OVS records indicate that approximately 44 percent (30) of the BLM’s 68 appraisal requests involving acquisition type cases forwarded to the OVS from October 1, 2013, to September 30, 2014, could qualify for a waiver valuation if the limit were $25,000 or less. Typically, a Government contracted appraisal costs about $6,000. If 30 appraisal waivers were executed, the BLM could save up to $180,000. Typically, these cases do not warrant the time and expense of an appraisal. The appraisal cost can easily exceed the value of the property or interest of property identified for acquisition. The BLM’s use of the waiver valuation will reduce OVS’ workload.
The regulations identify the waiver provision as an Agency decision. All DOI bureaus and offices with acquisition authority have adopted regulations employing waiver valuations and most are implementing the $25,000 threshold. The BLM’s current waiver valuation policy is limited to $2,500 as reflected in the current acquisition handbook. This IM supersedes that policy and increases the BLM’s waiver valuation limit from $2,500 to $25,000.
Refer to Attachment 1 for additional guidelines for implementing the waiver valuation procedures, Attachment 2 for a sample of the memorandum format to document the waiver valuation, and Attachment 3 for the standards to follow to complete a waiver valuation.
Manual/Handbook Sections Affected: WO-350 will update BLM Manual H-2101-1 to incorporate the new guidance.
Coordination: WO-350 coordinated preparation of this IM with OVS, the Office of the Solicitor, and BLM field office realty staff.
Contact: For additional information or questions concerning this IM, please contact Lucas Lucero, Acting Branch Chief, Lands, Realty, and Cadastral Survey, at 202-912-7342.
Signed by: Authenticated by:
Michael Nedd Robert M. Williams
Assistant Director Division of IRM Governance,WO-860
Energy, Minerals and Realty Management
3 Attachments