Environmental StigmaEssay Preview: Environmental StigmaReport this essayEnvironmental Stigma: Case Study ApproachEnvironmental Stigma is easier to define than it is to quantify. The Appraisal Institute seminar, Environmental Risk and the Appraisal Process, defines Environmental Stigma as “an adverse effect on the markets perception of the value of property containing an environmental risk even after cleanup costs have been expended or considered in estimating value”1. However, accurately predicting how a given market will perceive these intangible costs is no easy task. An appraiser does not have access to a ready repository of comparable sales history to draw inference from. Given the paucity of comparable information, Case Study Analysis can be a helpful technique when estimating the effect of stigma on a contaminated property. Also, the Appraisal Institute recognizes “Case Study Analysis” as an appropriate valuation technique.
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The New York City Realtor’s Price Index (PMI) is a useful measure that can be applied to appraising a property’s potential value. The PIO® Index (pIO) is created by the State Appraisal Commission and is a comprehensive index of assessed city property prices based on current historical data, current price trends, citywide prices, and average annual median and yearly median sales prices. The PIO® Index is published annually by the Federal and local government’s Property Assessment Commission, the most common federal agency charged with evaluating real estate markets. Most property appraisals are conducted by city and county appraisers, and in most of those cases, the federal and local government’s PIO® indexes are issued after a property’s condition, economic conditions, availability, and price declines. The public’s PIMA index (PII), originally used by the Public Works Department, requires local, state, and federal appraisals of the same to be conducted by them. In recent years, the PIO® Index has evolved much more rapidly, and, especially for the United States, we have changed our methodology to include the PIO® indexes based on real estate events in order to identify the value and type of property that is most likely to be appraised, and have applied the PIO® index over the last 20 years. This will improve transparency and will require appraiser accountability, and the creation of a new, standardized index that provides an opportunity to provide greater detail, accuracy, and accountability to appraisers and the public. The PIO® Initiative is now authorized by the New York State legislature. For more information visit www.nysm.ca.gov/pio
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As a new and better standardized index of real estate prices, new and improved appraisals, and more precise appraisal tests are needed, our research team will develop a suite of standardized appraisals for NYSDOT agencies ranging from $5,000 up to $10,000 in size. The PIO® index will be updated regularly, along with the new, standardized assessments, to help guide and alert appraisals officials and others in the field regarding the current condition of real estate in the district. The PIO® (PIO® Index) is one of three appraisals issued by the Public Works Department, each conducted over the last decade. The PIO® was recently upgraded, and its use will be validated as the standard in NYSDOT by the City of Staten Island. The new PIO® Standards and Practices incorporate the PIO®, MPS/CPI®, and CPSPII standardized appraisals. The PIO® Standards and Practices will be updated periodically with new appraisals for all districts. For more information visit their website at www.pio.org.
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The New Jersey Residential Housing Development Authority, or NJREA, is a local government with a long history of appraisals based on specific characteristics and specific market conditions. Since its inception in 1937, NJREA appraisals have yielded high scores and standardized results. New JerseyREA appraisals are widely recognized as the nation’s most accurate, reliable, cost-effective, and cost-effective appraisal services. The NJREA also offers the lowest cost of real estate appraisals available, making it one of the lowest risk institutions. For more information regarding appraisal practices within a district, call the Office of Inclusion & Transparency at 1-800-432-7501.
A New York Estates (New York Public Market), on November 30, 2011, announced: “We have committed to working with our government partners in various ways, including the NJREA, and will continue to work to build relationships among government officials and business leaders around the world to ensure the best possible results for all New Yorkers (including people in minority neighborhoods).
New Jersey Estates® Inc. today announced that it has purchased New York Public Markets Group for $1 million, including $750,000 of unsecured debt equity from the New York Public Market Advisory Board (NPMAC), and will invest approximately $250,000 of this to enhance the quality of service to New Jersey families, improve the affordability of neighborhood housing, and grow our long-term commercial partnerships with the market.
Prior to joining the NYSE, New Jersey Estates made an active commitment to help improve quality of life, provide opportunities for self-sufficiency and ensure an effective national affordable housing plan.
New York PUBLIC MARKETS GROUP has more than 2,700 members nationwide in 30 states, with more than 700 in the U.S.
This program supports the following:
• The expansion and expansion of New Yorkers’ affordable real home care coverage through the New York Community Reinvestment Plan, a program designed to make housing the most affordable in the United States, a key driving force behind the Affordable Care Act – including its impact on the nation’s median home price.
New York Public Markets Group (NYPMG), which owns 1,300 homes, represents all New York residents within our public and community-developed affordable housing project as well as existing New York neighborhoods. It is our goal to maximize the financial capital, expertise and education required to build truly community-oriented new residential housing solutions.
On March 8, 2011, the New York Federal Reserve Board of Governors approved a bond buyback plan, which increased the value of existing commercial properties into a market value of $8.6 Billion. The bond purchaseback process was designed to reduce the amount of debt the New York Federal Reserve will be required to repay each year. Our goal is to get up to $60 Billion in new lending that can meet the growing needs of residents, our businesses, our local economies. The bond buyback program will allow us to
A New York Estates (New York Public Market), on November 30, 2011, announced: “We have committed to working with our government partners in various ways, including the NJREA, and will continue to work to build relationships among government officials and business leaders around the world to ensure the best possible results for all New Yorkers (including people in minority neighborhoods). New Jersey Estates® Inc. today announced that it has purchased New York Public Markets Group for $1 million, including $750,000 of unsecured debt equity from the New York Public Market Advisory Board (NPMAC), and will invest approximately $250,000 of this to enhance the quality of service to New Jersey families, improve the affordability of neighborhood housing, and grow our long-term commercial partnerships with the market. Prior to joining the NYSE, New Jersey Estates made an active commitment to help improve quality of life, provide opportunities for self-sufficiency and ensure an effective national affordable housing plan. New York PUBLIC MARKETS GROUP has more than 2,700 members nationwide in 30 states, with more than 700 in the U.S. This program supports the following: • The expansion and expansion of New Yorkers’ affordable real home care coverage through the New York Community Reinvestment Plan, a program designed to make housing the most affordable in the United States, a key driving force behind the Affordable Care Act – including its impact on the nation’s median home price.
New York Public Markets Group (NYPMG), which owns 1,300 homes, represents all New York residents within our public and community-developed affordable housing project as well as existing New York neighborhoods. It is our goal to maximize the financial capital, expertise and education required to build truly community-oriented new residential housing solutions.
On March 8, 2011, the New York Federal Reserve Board of Governors approved a bond buyback plan, which increased the value of existing commercial properties into a market value of $8.6 Billion. The bond purchaseback process was designed to reduce the amount of debt the New York Federal Reserve will be required to repay each year. Our goal is to get up to $60 Billion in new lending that can meet the growing needs of residents, our businesses, our local economies. The bond buyback program will allow us to
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Case Study: Fuel Oil Contamination of a ResidenceIn the article Fuel-Oil Contamination of a Residence: A case study in stigma2, Bruce M Closser details his use of the Case Study technique in his valuation of the effect of stigma on a fully remediated home in Upper Peninsula Michigan that experienced contamination that resulted from a basement oil spill. In Clossers research, he found an instance of a nearby home that experienced a similar oil spill, resulting in what the Bell Chart designates a Class VIII detrimental condition (one involving soil or building contamination) 4. Closser used this previous case as a basis to estimate the effect of stigma on his base case.
Clossers reference case involved a Michigan home that was impacted by a flood that caused a fuel tank to spill oil throughout the case homeowners (Baker) basement. Upon noticing the flood water, Baker began pumping from the basement into his yard, spreading the damage to his yard, resulting in a Class VIII detrimental condition. This case property changed ownership four times over a six-year history, leaving a rich history of clues for Closser to base his valuation. I have listed below a brief chronological breakdown of the circumstances surrounding the reference case that Closser used to base his estimation of value.
Adams (Owner #1) sells home to Baker (Owner #2) on seller-financed land contract for $42,000Chocolay River floods Bakers basementRising water causes basement fuel tank to spill oilBaker pumps contaminated water into yard, causing soil contamination.Contaminated soil is removed (cost: $1,200)Acrid smell remainsBaker defaults on land contractHome reverts back to Adams (Owner #1)Adams defaults on mortgageHome reverts back to bank (Owner #3)Bank replaces furnace and hires professional maintenance company to clean basement.Bank rents remediated home to Carters