Appraisal Journal articles from January 2005

Appraisal Journal archives from January 2005

From the editor-in-chief.(Editorial)
January 1, 2005... As 2005 begins, it is appropriate to reflect on The Appraisal Journal, its mission, and the nature of the articles it publishes. As Editor-in-Chief, it is my goal is to ensure the Journal publishes articles that * Contribute to the...

Inverse condemnation requires an affirmative, positive, aggressive act.(cases in brief)(Brief Article)
January 1, 2005... A city's allegedly improper and negligent design and maintenance of its drainage system that caused a business to flood did not constitute inverse condemnation, according to the Court of Appeals of South Carolina. On July 24, 1997, Louie...

Municipal hospital's assisted-living facilities are exempt from property taxes.(cases in brief)(Orange City Mun. Hosp. v. Board of Review, Supreme Court of Iowa 2004)
January 1, 2005... The Supreme Court of Iowa ruled that a municipal hospital's assisted-living facilities and independent-living facilities were operated for a public purpose and were exempt from property tax assessment. Orange City Municipal Hospital and...

Testimony regarding value of land's future use deemed inadmissible.(cases in brief)(Southwestern Illinois Dev. v. Al-Muhajirum, Appellate Court of Illinois 2004)
January 1, 2005... A landowner in a condemnation case was not entitled to admit testimony of an expert witness who would testify regarding the value of property, not as it was, but as it would be upon completion of a building project that the landowner hoped to...

Nonchartered city cannot condemn property outside its boundaries.(cases in brief)(Provo City v. Ivie, Supreme Court of Utah 2004)
January 1, 2005... The Supreme Court of Utah ruled that a nonchartered city was not empowered to condemn property outside its boundaries. Several property owners have property consisting of essentially a small, unincorporated island of Utah County surrounded...

Planning board's designation does not result in inverse condemnation.(cases in brief)(AEL Realty Holdings v. Board of Rep., Appellate Court of Connecticut 2004)
January 1, 2005... A change in the classification of an owner's property on a city's master plan did not amount to a taking of the property by inverse condemnation (when a governmental agency takes property even though no formal exercise of the power of eminent...

Assisted-living facility does not serve a charitable purpose so does not qualify for property tax exemption.(cases in brief)(Brief Article)
January 1, 2005... An assisted-living facility operated by nonprofit organizations did not serve a sufficiently large or indefinite class so as to qualify as having a charitable purpose entitling it to a property tax exemption, according to a Massachusetts...

Church must prove it is a purely public charity in order to receive tax exemption.(cases in brief)(Brief Article)
January 1, 2005... The upper level of a church's parish house did not qualify for exemption from real estate taxation as an institution of "purely public charity," according to the Commonwealth Court of Pennsylvania. St. Aloysius Roman Catholic Church owns a...

Appellate court may review the validity of reasons for rejecting expert testimony.(cases in brief)
January 1, 2005... If a trial court rejects the valuation testimony of an expert for specified reasons, an appellate court may review the validity of those reasons, according to the Commonwealth Court of Pennsylvania. Koppel Steel Corporation owns eleven...

The wave of recovery: capital flows and spatial ripples.(financial views)
January 1, 2005... Commentary Going into the fourth quarter of 2004, a number of major issues loomed over the economy, including the presidential election. While the election is behind us, other issues continue to nag-in particular, the conflict in Iraq, the...

Fannie Mae announces "round two" of appraisal report revisions.(residential appraising)
January 1, 2005... Amended Test Forms Are Released for Comment In June 2004, Fannie Mae released "test" versions of three appraisal reports: 1. Test Form 1004, Uniform Residential Appraisal Report (URAR), 2. Test Form 1004B, Definitions, Statement of...

Uncertainty and feasibility studies: an Italian case study.(international appraising)
January 1, 2005... Abstract Feasibility studies are extensively used in Italy to determine land value, but they tend to provide single-point analysis based upon a single set of "likely" inputs. This paper examines the practical impact of uncertainty in...

Fundamentals of the Low Income Housing Tax Credit program.
January 1, 2005... abstract Working in the affordable housing field is often a challenge for appraisers and market analysts. Projects are complicated, developers are impatient, government regulations change, and lenders and other clients see things from...

Valuation of Texas LIHTC apartments restricted by land use restriction agreements.(Low Income Housing Tax Credit.)
January 1, 2005... abstract Understanding and valuing Low Income Housing Tax Credit (LIHTC) properties is complex due to the unusual, severe restrictions imposed upon them and the limited number of these properties. In order for LIHTC property owners to...

Proprietary earnings of assisted living and nursing facilities under HUD valuation guidelines.
January 1, 2005... abstract This article examines treatment of proprietary earnings and management expenses under HUD's lending program for assisted living and skilled nursing facilities. HUD valuation guidelines require allocation of a portion of NOI to...

Deconstructing overall capitalization rates.
January 1, 2005... abstract This article examines the relation of the substitution principle and overall capitalization rates. Although investors may substitute between low- and high-quality investment-grade property of the same type and within the same...

A strategy for estimating identified intangible asset value: hotel affiliation contribution.
January 1, 2005... abstract Although researchers and practitioners generally agree that intangible value exists in hotels, methodologies for estimating it continue to evolve. This article presents a strategy for estimating identified intangible asset (IIA)...

Analysis of the effects of contamination by a creosote plant on property values.
January 1, 2005... abstract This article examines how an environmental hazard affects home values. It uses a geographic information system to obtain the straight-line distance (in feet) from the nearest source of contamination to the homesite to measure how...

The holding value premium in standing timber valuation.
January 1, 2005... abstract Institutional investors have an acute need for monitoring and reporting timber market values. Appraisal of premerchantable and immature timber is challenging because the present value of this timber usually exceeds the sales...

The ABC's of Real Estate Investing: the Secrets of Finding Hidden Profit Most Investors Miss.(Book Review)
January 1, 2005... The ABC's of Real Estate Investing: The Secrets of Finding Hidden Profit Most Investors Miss by Ken McElroy Published by Warner Business Books, New York, 2004, 193 pages $16.95, softcover The secrets of finding hidden profits that...

Comments on "Subdivision Development: Risk, Profit, and Developer Surveys".(letters to the editor)(Letter to the Editor)
January 1, 2005... I just had the opportunity to read the Letters to the Editor section of The Appraisal Journals Fall 2004 issue. I appreciate Tony Sevelka's response to my comments; however, it appears he is suggesting that the appropriate valuation model...

Response to comments on "Subdivision Development: Risk, Profit, and Developer Surveys".(letters to the editorc)(Letter to the Editor)
January 1, 2005... I apologize if my response to Mr. Kane's letter was not clear. The traditional roles of the developer (sub-divider) and builder were distinct and mutually exclusive. Over the past decade, however, within the Greater Toronto area there has been...

Comments on response to "Subdivision Development: Risk, Profit, and Developer Surveys".(letters to the editor)(Letter to the Editor)
January 1, 2005... I think we are in overall agreement on the distribution of profit centers in the development/building process, but if you will bear with me, I have a few more comments whose underlying concepts help keep my thinking straight on the issues....

Comments on "Highest and Best Use: the von Thunen Connection".(letters to the editor)(Letter to the Editor)
January 1, 2005... The article "Highest and Best Use: The von Thunen Connection" by Marvin L. Wolverton, MAI, PhD, (Fall 2004) reviews a mathematical model for determining highest and best use--a welcome insight into a subject of critical importance to...

Comments on "Private Development as Public Use: New Michigan Case Raises Questions About Power to Condemn Property for Economic Development".(letters to the editor)(Letter to the Editor)
January 1, 2005... I commend David Black on his column "Private Development as Public Use: New Michigan Case Raises Questions About Power to Condemn Property for Economic Development" (Fall 2004), which characterizes pivotal former and pending condemnation cases...

Comments on "What's a Warranty Worth? The Impact of Home Owner Warranties on Property Sales".(letters to the editor)(Letter to the Editor)
January 1, 2005... I applaud the research, analysis, and enthusiasm in the article, "What's a Warranty Worth? The Impact of Home Owner Warranties on Property Sales" by Sean P. Salter, PhD, Ken H. Johnson, PhD, and Randy I. Anderson, PhD, (Fall 2004). In summary,...

Response to comments on "What's a Warranty Worth? The Impact of Home Owner Warranties on Property Sales".(letters to the editor)(Letter to the Editor)
January 1, 2005... Mr. Lucco raises some very valid points in his letter. In fact, my coauthors and I discussed many explanations for the existence of home owner warranties, given that these instruments impact neither price nor marketing time, and Mr. Lucco's...