Responding to growing concern from the real estate industry over the U.S. Small Business Administration’s policy change on the appraisals of special purposes properties, 15 members of the House of Representatives sent a letter March 6 to the SBA’s acting administrator Marianne O’Brien Markowitz seeking clarification on the matter.
The letter asked SBA to explain why it reversed a guidance issued in 2011 that allowed an appraiser to take an accepted course in order to meet eligibility requirements for special purpose properties. Since SOP 50-10F took effect Jan. 1, significant problems have been reported, including added costs and delays.
In its letter, the House members asked the SBA to “provide details and analysis as to why an experienced real estate appraiser does not qualify to prepare ‘going concern’ appraisals if the appraiser is experienced in the particular property type and is competent to value special purpose properties.” Additionally, the letter asks the SBA to explain its process for determining whether or not an appraiser is qualified to satisfy the business valuation component of the “going concern” appraisal.
In addition to the Appraisal Institute, the letter received support from the American Bankers Association, Credit Union National Association, National Association of Federal Credit Unions, Real Estate Roundtable, National Association of Realtors, BOMA International, National Association of Convenience Stores, American Hotel and Lodging Association, Asian American Hotel Owners Association and the Petroleum Marketers Association of America.
Read the letter to Marianne O’Brien Markowitz.