|
<br />j
<br />
<br />
<br />ANALYSIS OF DATA AND CONCLUSIONS
<br />
<br />B. As Improved
<br />
<br />Legally Permissible
<br />No change in zoning is anticipated, and all dimensional standards are met, considering the 10' variance. The
<br />improvements represent a legally conforming use, and are compatible with surrounding land uses.
<br />
<br />Physically Possible
<br />Physical considerations of the property, as improved, include the size, design, and condition of the
<br />improvements, The improvements consist of an average quality detached single-family residence, with some
<br />good quality refinements. The overall condition is good, and its physical layout has been designed to provide
<br />adequate ingress-egress. However, soil failure is occurring, and is within 16 feet of the residential structure.
<br />This detrimental condition poses safety issues for the inhabitants of the structure.
<br />
<br />Financially Feasible and Maximally Productive
<br />
<br />A home reprysents both an expenditure and an investment, providing the pwner with safety, shelter, and
<br />personal satisfaction, The Department of Housing and Urban Development defines safe, sanitary housing as
<br />being free of all known hazards and adverse conditions that:
<br />
<br />May affect the health and safety of the occupants;
<br />May affect the structural soundness of the improvements
<br />May impair the customalY use and enjoyment of the property.
<br />
<br />A detrimental condition can reduce the market value of the property by restricting its use, by making the
<br />property less desirable in the market place, and/or by increasing the potential risk of ownership (incremental
<br />costs). The following value issues were considered in this analysis:
<br />
<br />1. The Cost to Cure includes not only the correction ofthe condition, but also preventative measures,
<br />cleanup and contingencies, engineering, scientific analysis, monitoring, legal-review, possible
<br />improvement removal, reconstruction, liability issues, etc, The total cost to cure or remediate can be
<br />significantly greater than the market value of the property as improved, and significantly greater than
<br />the cost to correct the condition. The estimates submitted by Moore Engineering for damaged sales 1
<br />- 4 are examples of partial costs to cure ranging from $210,000 to $250,000, They include only those
<br />costs related to the site, but not to the(improvements.) ~)'- C;A"J. G,o.Nljl.
<br />
<br />2. Use I Utility: The existing detrimental conditions may restrict the utility or use of a property. In this
<br />instance, the livability of the subject has been compromised by the instability of the soils. This
<br />conclusion is supported by the damaged residential sales used in this analysis, whereby the livability
<br />of each sale had been compromised. These sales are very comparable in detrimental conditions to the
<br />subject. In each case, these properties were bought by the appropriate County, The improvements
<br />were sold off, and the basements and remaining site improvements (driveways and the like) were
<br />razed, Additional sale data from Grand Forks is included in the sales comparison approach,
<br />
<br />3. Risk is associated with the reluctance by the market to purchase a property with a history of
<br />detrimental conditions; i.e" stigma. Given this, 'a purchaser of a damaged property will require
<br />substantial incentives,
<br />
<br />As previously stated, the livability of the subject has been compromised, implying that the current residential
<br />use is not financially feasible and, as a result, has little or no remaining economic life.
<br />
<br />Conclusions
<br />The subject, as impaired, does not meet any of the criteria set down by HUD for safe, sanitary housing.
<br />Health and safety issues are present, the structural integrity of the improvements is compromised and a
<br />P?te,l1tial further damage exists, Therefore, it is reasonable and logical that the fee simple bundle of rights is
<br />dl111111ished as the use and enjoyment of the property is impaired, Finally, based on market information, it is
<br />
<br />RM HOEFS & ASSOCIATES. INC,
<br />
<br />95
<br />
|