New Hampshire Code of Administrative Rules
Rev - Department of Revenue Administration
Chapter Rev 600 - PROPERTY ASSESSMENT
Part Rev 604 - PARTIAL UPDATE CONTRACT REQUIREMENTS
Section Rev 604.02 - Partial Update Contract Services

Universal Citation: NH Admin Rules Rev 604.02

Current through Register No. 12, March 21, 2024

For a partial update contract the following services shall be performed and provided by the contractor:

(a) Identification and documentation of affected areas or classes of property:

(1) By completion of statistical testing and ratio studies to determine the need for a reappraisal of affected areas or of a class of property; or

(2) Pursuant to an order by the BTLA for a partial update of an affected area or of a class of property;

(b) Property data shall be collected and inspected as follows:

(1) The applicable property data shall be collected and utilized in the partial update appraisal work as identified in (a), above;

(2) All applicable land parcels and any attributes that may affect the market value shall be listed accurately, which may include, but not be limited to:
a. Number of acres;

b. Road frontage;

c. Water frontage;

d. Water access;

e. Views;

f. Topography;

g. Access;

h. Neighborhood;

i. Betterments;

j. Approvals;

k. Easements;

l. Deeded restrictions; and

m. Other factors that might affect the market value;

(3) For applicable improved properties, every principal building(s), and any appurtenant building(s), or other improvements, shall be accurately measured and listed to account for the specific elements and details of construction that may affect the market value, which may include, but not be limited to:
a. The quality of construction;

b. The approximate age of the structure;

c. Depreciation factors;

d. Foundation type;

e. Basement area;

f. Insulation;

g. Roofing;

h. Exterior cover;

i. Flooring;

j. Interior finish;

k. Fireplaces;

l. Heating and air conditioning systems;

m. Solar collectors;

n. Plumbing and plumbing fixtures;

o. Electric service;

p. Story height;

q. The total number of rooms;

r. The total number of bathrooms;

s. The total number of bedrooms;

t. Sprinkler systems;

u. Elevators; and

v. Any other features, attributes, or factors that might affect market value;

(4) The contractor shall provide in the contract the employee protocol and procedure for inspection of the property as detailed in (10) below;

(5) When entrance to a building or a parcel of land cannot be obtained as detailed in (10) below, the contractor shall make:
a. A note of the date of the visit to the property; and

b. A notation of the reason the inspection of the property could not be obtained as detailed in (10) below;

(6) All partial update contracts shall provide the procedure for inspection, call backs, and notification;

(7) A BTLA ordered partial update shall make an attempt to inspect the property, unless prohibited pursuant to (10) below, and if the attempt is unsuccessful, the contractor shall:
a. Make a note of the date of the visit to the property;

b. Leave a notification card at the property requesting that the property owner call the contractor's designee, within a stated time frame as agreed upon by the municipal assessing officials and the contractor, to arrange for an interior inspection; or

c. Send a letter to the property owner requesting that the property owner call the contractor's designee, within a stated time frame as agreed upon by the municipal assessing officials and the contractor, to arrange for an interior inspection; and

d. Notify the municipal assessing officials that the property was not accessed and that the contractor has not been contacted by the property owner or occupant, within the prescribed time frame;

(8) For a BTLA ordered partial update, the municipal assessing officials, when notified by the contractor pursuant to (4) above:
a. May attempt to make arrangements with the owner or occupant for an interior inspection of the property; and

b. Shall notify the contractor within 10 working days of whether or not inspection arrangements were made;

(9) If the contractor or the municipal assessing officials are not able to arrange for an interior inspection, the contractor shall:
a. Estimate the value of the improvements using the best evidence available; and

b. Annotate the property record card accordingly; and

(10) The contractor shall complete interior inspection of all properties except:
a. Vacant or unoccupied structures;

b. Where multiple attempts for inspection have been made without success and the owner or occupant has not responded to the contractor or the municipal assessing officials' notifications;

c. Where postings prevent access;

d. When the owner has refused access to the contractor or designee;

e. Unsafe structures;

f. When inhabitants appear impaired, dangerous or threatening; and

g. Any other reason for which the municipal assessing officials agree that the property is inaccessible;

(c) The contractor shall provide to the municipality a complete copy of the:

(1) Field data collection card(s);

(2) Worksheet(s); and

(3) Other document(s) used in the valuation process;

(d) For a BTLA ordered partial update the contractor shall provide monthly progress reports indicating the percentage of completion of the partial update to the municipal assessing officials and the DRA, and all other contracts shall specify the reporting requirements;

(e) Property records shall be compiled for the affected property as identified in 604.02 as follows:

(1) The contractor shall prepare an individual property record for each separate parcel of property being appraised arranged to show:
a. The owner's name, street number, map and lot number, or other designation of the property;

b. The owner's mailing address;

c. All information necessary to derive and understand:
1. The land value;

2. The number of acres of the parcel;

3. The land classification;

4. The adjustments made to land values;

5. The value of the improvements on the land;

6. The accurate description of all the improvements whether affecting market value or not;

7. The improvement pricing details;

8. The allowances made for physical, functional and economic depreciation factors;

9. The outline sketch of all principal improvements with dimensions with the street side or waterfront toward the bottom of the diagram;

10. The base valuation year; and

11. The print date of the property record;

d. The specific elements and details of construction, which may include, but not be limited to, the items contained in Rev 604.02(b) (2) and (3);

e. Photograph(s) of the principal building, if required by the contract;

f. History of the property transfer to include:
1. Date of sale;

2. Consideration amount;

3. Qualification code; and

4. Property type noted as either vacant or improved;

g. A notation area to record comments pertaining to the property; and

h. A notation area to record the history of the property, which may include, but not be limited to:
1. Property inspection date;

2. Individual's identification number or initials associated with the inspection;

3. The extent of the inspection;

4. Reason of the inspection; and

5. Any value adjustment(s);

(f) A statistical analysis and market analysis shall be completed as follows:

(1) A DRA-certified property assessor supervisor shall include the statistical analysis, or the BTLA order for a partial update, in the market analysis documentation;

(2) A DRA-certified property assessor supervisor shall conduct the partial update and market analysis;

(3) A DRA-certified property assessor assistant, under the guidance of a DRA-certified property assessor or a DRA-certified property assessor supervisor, may validate or invalidate sales for the market analysis;?

(4) The contract shall specify that the municipality shall provide to the contractor a copy of all property transfers for a minimum of 2 years immediately preceding the effective date of the partial update;

(5) A market analysis shall be conducted by the contractor using accepted mass appraisal methods in order to determine land, improvements and any other contributory values or factors including:
a. A review of all property transfers provided by the municipal assessing officials to the contractor;

b. An addendum for the existing base year market analysis report containing a compilation of all unqualified property transfers into a list containing:
1. The parcel map and lot number;

2. The disqualification code;

3. The date of sale; and

4. The sale price;

c. An addendum for the existing base year market analysis report containing a compilation of all qualified property transfers into a list including:
1. The parcel map and lot number;

2. The date of sale;

3. The sale price;

4. The newly established value;

5. If required by the contract, a photocopy or printout of the property record card for each property transferred; and

6. If required by the contract, a photograph of the principal improvements attached thereto;

d. An addendum for the existing base year market analysis report containing the estimated land values for the affected property, or classes of property, with the documented results, as follows:
1. Utilizing vacant land sales whenever possible; and

2. In the absence of an adequate number of vacant land sales, the land residual method or other recognized land valuation methodologies shall be used to assist in the determination of land unit values;

e. The indicated land values shall be documented as:
1. Site;

2. Front or square foot;

3. Front acre;

4. Rear acre units; and/or,

5. Other appropriate units of comparison;

f. An addendum for the existing base year market analysis report containing an analysis section for the affected property, or classes of property, to include:
1. The sale price; and

2. Supporting adjustments made in sufficient detail to be understood by the municipal assessing officials and taxpayers;

g. An addendum for the existing base year market analysis report containing the market analysis used to indicate unit values for the affected property, or classes of property, with the documentation of the method(s) employed and any special adjustment factors; and

h. Tax maps showing the locations of all qualified sales and the delineation of neighborhoods for the affected property, or classes of property if required by the contract;

(6) The addendum to the base year preliminary market analysis for the partial update shall:
a. Be provided to the municipal assessing officials and the DRA prior to the acceptance of the new values by the municipal assessing officials;

b. Be printed in its final form and provided to the municipal assessing officials and the DRA at the completion of the partial update as part of the USPAP compliant report; and

c. Become property of the municipality;

(g) The valuation of the affected property, or classes of property, for the partial update shall bring those properties to the municipality's general level of assessment based upon the existing base year and data collection manual by utilizing recognized approaches to value, which may include, but not be limited to:

(1) The cost approach, when utilized, shall be implemented by calibrating and applying land valuation tables, building valuation tables, and unit costs for the affected property, or classes of property, reflective of the base year as follows:
a. Investigate, with documented analysis, land values for residential, commercial, industrial and any other special use properties in the area;

b. Documentation of the land valuation tables and unit costs by including statistical testing to compare the calculated preliminary land value to the sale properties to ensure accuracy before the land valuation tables and unit costs are implemented for the affected property, or classes of property;

c. Documentation for the development of the units of comparison that shall be used for the base land prices for the affected property, or classes of property, which may include, but not be limited to:
1. Site;

2. Front foot;

3. Square foot;

4. Front acre;

5. Rear acre; and

6. Other appropriate units of comparison;

d. Documentation for site specific characteristic adjustments for the affected property or classes of property, which may include, but not be limited to:
1. Topography;

2. View;

3. Size;

4. Location; and

5. Access;

e. Documentation of the calibration of the land tables for the affected property, or classes of property;

f. Investigate, with documented analysis, the building costs of residential, commercial, industrial and any other special use properties in the area;

g. Documentation of the testing of the contractor's building valuation tables and unit costs by comparing the calculated preliminary building value to the sale properties, for which the building costs are known, to ensure accuracy before the building valuation tables and unit costs are implemented for the affected property, or classes of property;

h. In utilizing building costs as the basis of appraisal for the affected property, or classes of property, the building cost tables shall consist of unit prices based upon relevant factors, which may include, but not be limited to:
1. Specifications for various types of improvements;

2. The quality of construction;

3. The building customs and practices in the municipality;

4. Various story heights and square foot areas adequate for the valuation of all types of buildings or other improvements to the land;

5. Tables for additions and deductions for variations from the base cost specifications; and

6. Tables for depreciation based upon age and condition of the improvements;

i. Documentation of the calibration of the building cost tables and models for the affected property, or classes of property;

(2) The income approach, when utilized, shall be implemented by calibrating and applying the valuation models for the affected property, or classes of property, reflective of the base year as follows:
a. Investigate and qualify, with documented analysis, market data for the affected property, or classes of property, which may include, but not be limited to:
1. Income, expenses, vacancy and capitalization rates for residential income, commercial, industrial and any other special use properties;

2. Property specific characteristics;

3. Documented statistical testing for the income valuation models for the affected property, or classes of property to known sales of similar properties;

4. Valuation models for the affected property, or classes of property consisting of market data based upon:
(i) Defined descriptions and specification based upon property type; and

(ii) Quality and size of the improvements; and

5. Documentation of the calibration of the income valuation tables and models for the affected property, or classes of property; and

(3) The market-sales comparison approach, when utilized, shall be implemented by calibrating and applying valuation models for the affected property, or classes of property, as follows:
a. The contractor shall qualify, analyze, and use sales as direct units of comparison in the valuation of residential, commercial, industrial and any other special use properties;

b. An investigation with documented analysis of comparable sales for the affected property, or classes of property;

c. Documentation of the adjustments for specifics for the affected property, or classes of property, which may include, but not be limited to:
1. Location;

2. Time;

3. Size;

4. Features; and

5. Condition;

d. Documentation on how the adjustments for the affected property, or classes of property were derived;

e. Documentation of final value reconciliation for the affected property, or classes of property; and

f. Documented calibration for the sales comparison tables and models for the affected property, or classes of property.

(h) In the utilization of the appraisal approaches to valuation, the contractor shall make and document adjustments made to the affected property, or classes of property for depreciation factors, which may include, but not be limited to, physical, functional, and economic conditions;

(i) The contractor shall identify any affected utility and special use properties within the partial update and shall:

(1) Provide full documentation of the methodology and analysis that was utilized by the contractor in the establishment of the assessed value(s) for the affected utility or special use property; or

(2) Identify the source of the appraisal for the affected utility or special use property for the partial update;

(j) If required buy the contract, the contractor shall ensure that a final comprehensive review of the newly established values for the affected property, or classes of property shall be performed by a DRA-certified property assessor supervisor utilizing a parcel by parcel field review of the properties to:

(1) Ensure that all affected properties are valued at their highest and best use and as applicable appraised pursuant to RSA 75:1;

(2) Ensure that all affected properties are at the municipalities general level of assessment; and

(3) Identify and correct any mechanical errors, inconsistencies, unusual features, or value influencing factors;

(k) The value notification and informal reviews shall be completed as follows:

(1) The contractor shall provide to the municipal assessing officials:
a. A list of the newly established values for review;

b. A preliminary value analysis with a copy delivered to DRA for review; and

c. The informal review schedule in advance for a BTLA ordered partial update and for all other partial updates if requested by the municipality;

(2) For a BTLA ordered partial update the contractor shall mail, first class, to all affected property owners, the notification of the newly established value of their property by sending to the property owner either of the following and for all other partial updates as requested by the municipality:
a. A list of all property owners containing the newly established valuations of all affected properties within the municipality; or

b. A letter to the owner stating the newly established value of their property and whether the contractor has either:
1. Published a list of all affected property owners containing the newly established valuations for all affected properties within the municipality in an identified newspaper of general circulation for the entire municipality; or

2. Posted in 2 identified public places, a list of all affected property owners and the newly established values for the affected properties;

(3) The notification of newly established values shall contain the details of the informal review process, instructions on scheduling an informal review, and the time frame in which informal reviews shall be scheduled, if applicable;

(4) The notification of newly established values shall contain instructions in regard to the appeal process for abatements pursuant to RSA 76:16, RSA 76:16-a and RSA 76:17;

(5) After the mailing or posting of the notification of newly established values the contractor shall ensure that an informal review of the newly established property values is provided to all property owners who may, within the time prescribed by the contract, request such a review;

(6) For all partial updates, not withstanding Rev 602.05(Disclosure), the contractor shall make available to all affected property owners the property record card and market analysis related to their newly established property value(s);

(7) For a BTLA ordered partial update as required by the contract, the contractor shall notify, by first class mail, all property owners addressed during the informal reviews and indicate whether or not a change in value resulted and the amount thereof and, for all other partial updates as requested by the municipality; and

(8) For partial updates, all documentation utilized or obtained during the informal review process shall be relinquished to the municipal assessing officials;

(l) Appraisal reporting and manuals shall be completed as follows:

(1) The contractor shall provide a USPAP compliant addendum to the existing base year USPAP appraisal report in accordance with the ASB standards and the report shall contain, at a minimum, the following:
a. A letter of transmittal to include a signed and dated certification statement;

b. Sections detailing:
1. The scope of work;

2. The development of values;

3. Time trending analysis;

4. Land and neighborhood data, if applicable;

5. Improved property data, if applicable;

6. Statistical testing, analysis, and quality control; and

7. The development of approaches to value used in the valuation of the affected properties;

c. Appendices, which may include, but not be limited to:
1. Work plan;

2. Neighborhood maps, if applicable;

3. Names and levels of DRA-certified individuals authoring or assisting with the development of the addendum to the base year USPAP compliant report;

4. CAMA system codes;

5. Identification and description of zoning districts, if applicable;

6. Qualified and unqualified sale codes; and

7. Other useful definitions or information; and

d. Instructions, or as a separate document, adequate instructions for the municipal assessing officials to:
1. Understand the valuation methodologies employed;

2. Understand the market and neighborhood adjustments; and

3. Understand the conclusions of the appraisal report;

(2) The contractor shall provide a USPAP compliant addendum report to the municipal assessing officials, to be retained by the municipal officials until the next revaluation, and a copy to the DRA;

(3) If applicable, the contractor shall provide a data collection manual addendum, to be included within the USPAP report or as a separate document, which may include but not be limited to:
a. A list and description of data elements being collected by the contractor, which may include, but not be limited to:
1. Building characteristics;

2. Extra features;

3. Outbuildings;

4. Site improvements;

5. Site characteristics;

6. Road frontage;

7. Water frontage;

8. Water access;

9. Topography; and

10. View;

b. A glossary and a description of all codes used within the data collection and on property record cards;

c. A description of all grading factors utilized, which may include, but may not be limited to:
1. Condition factors;

2. Quality;

3. Depreciation;

4. Amenity values; and

5. Other factors or conditions;

d. A glossary and description of the coding used for visitation history; and

(4) If applicable, the contractor shall ensure that the municipal assessing officials have:
a. A technical CAMA manual addendum detailing the CAMA system utilized; and

b. Been provided training in the proper use of the CAMA system; and

(m) The defense of assessed values shall be completed as follows:

(1) For a BTLA ordered partial update the contractor shall, after the final property tax bills have been mailed by the municipality, support and defend the affected property values that were established by the contractor for the year of the partial update as follows:
a. At no additional cost to the municipality, property tax appeals that are timely filed with the municipality pursuant to RSA 76:16 shall have:
1. A review, by either a DRA-certified property assessor or a DRA-certified property assessor supervisor; and

2. The contractor's written recommendation provided to the municipal assessing officials for each property for which an appeal had been received;

b. The contractor shall provide a qualified representative for the defense of property tax appeals that are timely filed with the BTLA or superior court pursuant to RSA 76:16-a and RSA 76:17, whose compensation has been agreed upon by the parties to the contract as stipulated in Rev 602.06(b); and

c. The contractor shall support and defend the values established by the contractor that may have been lowered by the municipal assessing officials but shall not be required to support or defend values that have been increased by the municipal assessing officials;

(2) For all other partial updates, the contractor shall provide the procedure for handling and processing of an application for abatement that is appealed to:
a. The municipal assessing officials;

b. The BTLA; and

c. The superior court in the county in which the property is located; and

(3) All documentation utilized or obtained during the defense of assessed value process shall be relinquished to the municipality.

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