Fort Walton Beach Council agenda — 03-23-2010 Special-Soundside Develp. Project — reading text

Exceptions to comply with these instructions. The scope of work in the process for the Limited Appraisal is as follows: Value Tech Realty Services, Inc. www.gotovalue.com Page 11 94-  Sound Side Apartments Background Information Scope of Work -Limited Appraisal Identification Description of Identification of Definition Date of of property scope of Other limiting of Appraisal/ of value rights to Appraisal/ conditions real estate Market value estimate be valued Market Study Study Preliminary Analysis and Data Selection and Collection General Specific Competitive Supply and Demand Region, city and neighborhood) Subject and comparables) The subject market) Site and improvements Inventory of competitive Social Cost and depreciation properties Economic Income /expense and Sales and listings Governmental capitalization rate Vacancies and offerings Environmental History of ownership Absorption rates and use of property Demand studies I Highest and Best Use Analysis I Projections of Income and Expenses I Report of Findings This report is intended to comply with HUD' s requirements of a Self -Contained ( limited) appraisal; thus, only estimates of revenue and expenses are provided. Inspection Kay Kauchick, MAI and Anthony Marasco conducted a detailed physical inspection of the comparables and market area. The last day of securing market data was on January 6, 2010. Data Collection Three types of data are normally gathered while completing an appraisal: general, specific, and competitive supply and demand. General Data —General data concerns the social, economic, governmental, and environmental forces that impact property values. General data presented in this market study /appraisal is found in the Area Description and Analysis and the Neighborhood Description and Analysis Sections. We gathered general data from a variety of sources and publications as noted in the analyses. General data concerning the neighborhood is also based upon observations made during our inspection of the neighborhood. Specific Data —Data relating to the property being analyzed and /or appraised, and to comparable properties, is referred to as specific data. Documents we relied upon for specific data pertaining to the subject are listed in the General Assumptions. Additional data pertaining to the subject was gathered from subject contacts, local city and county offices and chambers of commerce, various State offices, and other resources maintained in our library. Value Tech Realty Services, Inc. www.gotovalue. com Page 12 95-  Sound Side Apartments Background Information Specific comparable data was gathered from market participants. The extent of the comparable market data collection process varies for each type of comparable data. Refer to discussions preceding the presentation of data in the approaches to value for descriptions of the data sources consulted and the search criteria. Competitive Supply and Demand Data —A complete analysis of the rental apartment supply and demand conditions was prepared by Value Tech Realty Services, Inc. The market study report should be read inconjunction with this limited appraisal. Compliance We developed this report in compliance with the requirements of the Code of Ethics and the Standards of Professional Practice of the Appraisal Institute, the Uniform Standards ofProfessional Appraisal Practice promulgated by the Appraisal Foundation. USPAP contains a " Jurisdictional Exception" which permits appraisers to deviate from the standards created by USPAP where those standards are contrary to law or public policy. These provisions illustrate that USPAP contemplates that the appraiser may be subject to certain statutory requirements ( such as LIHPRHA) that supersede USPAP. USPAP also contains a " departure" provision permitting departures from certain otherwise applicable requirements that are not listed as binding. There are no provisions in HUD's Appraisal Guidelines that are inconsistent with the " binding requirements" of USPAP. Wherever the final guidelines differ from otherwise applicable provisions in USPAP, they do so in a manner consistent with either USPAP' s departure provision or Supplemental Standards provision. Competency Kay Kauchick MAI and Anthony Marasco have analyzed multifamily assignments that include HUD subsidies, market -rate, LIHTC, Bond Financing, as well as projects that contain both market and income - restricted rents. Ownership and History of the Subject The subject property is currently owned by the Fort Walton Beach Housing Authority. There have been no other transactions in the past three years. Value Tech Realty Services, Inc. www.gotovalue. com Page 13 96-  Sound Side Apartments Assumptions and Limiting Conditions Assumptions and Limiting Conditions The use of this report is subject to the following assumptions and limiting conditions: General Assumptions No responsibility is assumed for the legal description or for matters including legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated. The property was analyzed " free and clear" of any and all liens or encumbrances unless otherwise stated. Responsible ownership and competent property management are assumed. The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy. All engineering is assumed to be correct. The plot plans and illustrative material where provided in this report are included only to assist the reader in visualizing the property. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them. It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless noncompliance is stated, defined, and considered in this report. It is assumed that all applicable zoning and land use regulations and restrictions have been complied with unless non -conformity has been stated, defined, and considered in this report. It is assumed that all required licenses, certificates of occupancy, consents or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the market support and /or value estimate contained in this report is based. It is assumed that the utilization of the land and improvements is within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in this report. The appraiser has not made an environmental inspection of the subject and is not qualified to detect the existence of hazardous materials. The appraiser is relying on other third party sources for the detection of hazardous materials. The presence of hazardous materials such as asbestos, urea -formaldehyde foam insulation or other potentially hazardous materials may affect the value and /or marketability of the property. The appraiser assumes no responsibility for any existing conditions or for any expertise or engineering knowledge required to discover them. Value Tech Realty Services, Inc. www.gotovalue. com Page 14 97-  Sound Side Apartments Assumptions and Limiting Conditions The Americans with Disabilities Act (ADA) became effective January 26, 1992. Noncompliance with the ADA could cause a loss in value. Unless otherwise stated in this report, Value Tech Realty Services, Inc. has i-nade the assumption that the subject will be constructed in conformance with all applicable Fair Housing and ADA requirements. General Limiting Conditions Possession of this report, or a copy thereof, does not carry with it the right of publication. The appraiser herein by reason of this report is not required to give further consultation, testimony, or be in attendance in court with reference to the property in question unless arrangements have been previously made. Neither all nor any part of the contents of this report ( especially any conclusions as to market support and /or value estimates, the identity of the appraiser or that with which the appraiser is connected) shall be disseminated to the public through advertising, public relations, news, sales, or other media without the prior written consent and approval of the appraiser. Specific Assumptions and Limiting Conditions This report has also been made subject to the following specific assumptions and limiting conditions: We assume that the project will be developed as proposed; We assume that the project will be constructed as proposed; We assume that the subject will be aggressively marketed and professionally managed; and We assume that the project will be maintained in a quality condition. Hypothetical Assumption This report has also been prepared incorporating the hypothetical assumption that the subject property is constructed as proposed. The revenues and expenses incorporate the assumption that the project is constructed as proposed and operating at stabilized levels. The land for the subject, according to the HUD MAP Guide is to be valued based on its intended use. The intended use may be different than its highest and