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.