7.18.1 Scope of Work

A. Scope of Work includes project identification, extent of inspection, the type and extent of data researched, and the kind of analysis needed to arrive at opinions or conclusions. The rule also states that appraisers have broad flexibility and significant responsibility in determining the appropriate scope of work for an appraisal or appraisal review assignment.

B. According to USPAP, appraisers, including HRAs, are responsible for determining the scope of work. However, as an employer who is also the client, the Department may issue guidance as to what is the extent of an assignment for a review appraisal. It is not a violation of USPAP for an appraiser to accept an assignment, in which a limited scope of work is appropriate, so long as the assignment and scope of work are clearly defined, produces credible results, and is performed objectively without bias.

C. HRAs may have to expand the scope of work and do additional research in performing an assignment. The HRA should discuss such situations with management to determine whether additional work by HUD staff is appropriate, or if the application should be rejected or approved with conditions.

D. According to USPAP, if relevant information is not available because of assignment conditions that limit research opportunities (such as conditions that place limitations on inspection or information gathering), an appraiser must withdraw from the assignment unless the appraiser can still develop credible assignment results. For example, they may be able to modify the assignment conditions to expand the scope of work to include gathering the information or use an extraordinary assumption.

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Chapter 7 Valuation & Market Analysis 7.18 Appraisal Review Policy and Requirements

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