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HomeMy WebLinkAboutR-2001-176 Property Exchange with Clay WithrowRESOLUTION NO. R-2001- 176 A RESOLUTION approving a real estate exchange involving properties located at 211 South 4th Street and 1218 South Fair Avenue within the City of Yakima. WHEREAS, the City of Yakima, through the Office of Neighborhood Development Services (ONDS) is engaged in the development of affordable housing; and WHEREAS, the City of Yakima currently owns a four-plex, located at 211 South 4th Street; and WHEREAS, ONDS is developing land for new affordable homes adjacent to a tri-plex owned by Clay Withrow, located at 1218 South Fair Avenue; and WHEREAS, there is undeveloped land attached to the tri-plex property, which can be developed as an additional lot; and WHEREAS, the tri-plex and four-plex are approximately equal in value; and WHEREAS, the owner of the tri-plex is interested in exchanging it for the four-plex, now, therefore BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: 1. A real estate property exchange involving properties located at 211 South 4th Street and 1218 South Fair Avenue within the City of Yakima is authorized by the City Council. 2. The City Manager is hereby authorized and directed to execute all necessary real estate exchange documents, between the City of Yakima and Clay Withrow, subject to approval of all transaction documents by the City Attorney. th ADOPTED BY THE CITY COUNCIL this 18 of December 2001. 12�� Ll' -le" XIZ16;e� Place, Mayor ATTEST: City Clerk RESOLUTION re ONDS property exchange/ms ARLINGTON STREET i w Cn S4e: 1"=100' I -- 7F 1 z ,os a 66.0' 0 o h D-1 9,900 sq.ft. 0-2 6,060. sq.ft. oo 0-3 ^ 8,877. sq.ft. 60.6' 52.8' 84.6' 170.0' D-6 6,000 sq.ft. 120.0' C5 170.0' D-7 17,000. sq.ft. D-5 6,379. sg.ft. 130.0 170.0' D-4 7,057. sq..0'ft. 0 TRI—PLEX 130 CENTRAL AVENUE Conceptual Plan "D" NINTH STREET DEVELOPMENT prepared for City of Yakima O.N.D.S. Office of Neighborhood Development 112 South 8th Street Yakima, Washington 98901 0 0 0 Thomas F. Upton Professional Land Surveyor PO BOX 2514, YAKIMA, WASHINGTON 98907 Tele (509) 576-0441, Fax (509) 452-0581 Toll Free 1-888-576-0441 21510po1 October22, 2001 - — --- -- -- File No. 010006A Page #2 Property Address: 211 S. 4TH ST. A -D YAKIMA, WA 98901 Appraisal Prepared For: CITY OF YAKIMA (ONDS) 112 S. 8TH ST., YAKIMA, WA 98901 Prepared As Of: 10-18-01 Prepared By: JOHN F. - IMM, IFAS 1024 S. 2ND AVE., YAKIMA, WA 98902 (509) 248-2609 This form was reproduced by United Systems Software Company (800) 969 -8727 Form Coverpg Ver. 1.1 File No. 010006A Page #3 WESTERN AP 1.1-07-2001 Western Appraisers, Inc. 1024 S. 2nd Avenue Yakima, WA 98902 Attention: CITY OF YAKIMA (ONDS) 112 S. STH ST., YAKIMA, WA 98901 Dear DONNA, In accordance with your request, I have personally inspected and appraised the real property located at: 211 S. 4th ST. YAKIMA, WA 98901 The purpose of the appraisal was to estimate the market value of the property, as improved, in fee simple, unencumbered by liens. A legal description of the property will be found herein. In my opinion, the estimated market value of the property, as of 10-18-01, is: $125,000 The attached report contains the description, analysis and supportive data for the conclusions and final estimate of value together with descriptive photographs. I0has been a pleasur to assist you; if I may be of further service to you in the future, please let me know. Si cerely, , T j �S HMM, IFA U� ilename: 010006 Designed by United Systems Company (800) 969-8727 File No. 010238 Page #4 SMALL RESIDENTIAL INCOME PROPERTY APPRAISAL REPORT File No. 010238 Property Address 1218 FAIR AVE. City YAKIMA State `/t/A Zip Code 98901 Legal Description The South. 50' of North 1/2 of LOT 5, CENTAL PARK ADDITION County YAKIMA Assessor's Parcel No. 191330-14414 Tax Year 01 R.E. Taxes $ 1147.30 Special Assessments $ N/A Neighborhood or Project Name N/A Map Reference 1-B Census Tract 0015.00 Borrower CITY OF YAKIMA ONDS Current Owner CHARLES WITHROW Occupant Owner Tenant Vacant Property rights appraised Fee Simple Leasehold Project Type PUD Condominium HOA $ N/A /Mo. Sales Price $ REFINANCE Date of Sale N/A Description and $ amount or loan charges/concessions to be paid by seller N/A Lender/Client CITY OF YAKIMA (ONDS) Address 112 S. 8TH ST., YAKIMA, WA 98901 Appraiser inHN F TTMM TFAS Address 1 n,)4 q -)Nn A\/F YAICTMA WA QAcin7 Location x, Urban Suburban Rural Predominant SI YAKIMA, WA YAKIMA, WA YAKIMA, WA Proximity to subject Single Family F Built u p Over 75% ° 25-75/° ° Under 25/° Occupancy $ Growth rate Rapid Stable Slow Owner Property values Increasing ., Stable Declining Tenant Demand/supply Shortage k In balance Over supply Vacant (0-5%) Marketing time Under 3 mos. 3-6 mos. Over 6 mos. Vacant (Over 5%) Typical 2-4 family bldg. Type DET Comparison of listings to subject property: See Attached Addenda. No. stories 1 No. units 1 Typical rents $ 300 to $ 650 Increasing Stable Declining Est. neighborhood apt. vacancy 3 % Increasing Stable Declining Rent controls Yes ' , No Likely It yes or likely describe (000) NO 45 Low 25 115 High 100 Predominant 85 75 Age 0 yrs. 2-4 Owner 0 Y, Tenant _ Vacant (0-5%) Vacant (Over 5%) Present land use % One family 75 2-4 family 15 Multi -family 5 Commercial 5 80 Low NEW 2.15 High 35 Predominant 135 15 Land use change i1' Not likely Likely In process to: Note: Race and the racial composition of the neighborhood are not appraisal factors. Neighborhood boundaries and characteristics: Neighborhood boundaries are S St, to the North, E. Mead Ave. to the South, 18th Street to the East, and Front Street to the West. Varied compatible area. Factors that affect the marketability of the properties in the neighborhood (proximity to employment and amenities, employment stability, appeal to market, etc.). The subject is located about 6 blocks from the main business district of Yakima. This neighborhood is comprised primarily of homes reflecting average quality, utility and marketability. Availability of public services combined with average access to employment, shopping, and schools make this neighborhood competitive in the market place. The following available listings represent the most current, similar, and proximate competitive properties to the subject property in the subject neighborhood. This analysis is intended to evaluate the inventory currently on the market competing with the subject property in the subject neighborhood and recent price and marketing time trends affecting the subject property (Listings outside the subject neighborhood are not considered applicable) The listing comparables can be the rental or sale comparables if they are currently for sale. ITEM SUBJECT COMPARABLE LISTING NO.1 COMPARABLE LISTING NO.2 COMPARABLE LISTING NO.3 1218 FAIR AVE. 412 S. 4TH ST. 706 N. 6TH ST. 310 S. 3RD ST. Address YAKIMA, WA YAKIMA, WA YAKIMA, WA YAKIMA, WA Proximity to subject 10 BLOCKS 20 BLOCKS 12 BLOCKS Listing price $ N/A Unf. Furn. $128500 X, Unf. Furn. $110000 Unt. Furn. $113950 Approximate GBA 1948 3588 1912 3030 Data source INSPECTION MLS MLS MLS # Units/Tot. rms/BR/BA 3 12 3 3.00 4 15 5 4.00 4 14 4 4.00 6 12 0 6.00 Approximate year built 1960 1920 1920 1920 Approx days on market N/A 85 DAYS 103 DAYS 155 DAYS Comparison of listings to subject property: See Attached Addenda. Market conditions that affect 2-4 family properties in the subject neighborhood (including the above neighborhood indicators of growth rate, property values, demand/supply, and marketing time) and the prevalence and impact in the subject market area regarding loan discounts. interest buydowns and concessions, and identification of trends in listing prices, average days on market and any change over past year etc.. According to the Local Multiple Listing Service, the approximate marketing time for the subject area is 118 days. Present market conditions are favorable, and do not require creative financing. Dimensions 50x296 (APPROX.) Site area 0.34 Acres Corner Lot , , Yes No Specific zoning classification and description R-2 (TWO FAMILY RESIDENTIAL) Zoning compliance Legal Legal nonconforming (Grandfathered use) Illegal No zoning Highest & best use as improved Present use Other use (explain) Utilities Public Other Off-site Improvements Type Public Private Electricity Street PAVED Gas Curb/Gutter YES Water Sidewalk YES Sanitary Sewer Street Lights YES Storm Sewer Allev ntn Topography LEVEL AT GRADE Size 0.34 Acres Shape RECTANGULAR Drainage APPEARS ADEQUATE View AVG/NEIGHBORHOOD Landscaping AVERAGE/LAWN & SHRUBS Driveway CONCRETE Apparent Easements TYPICAL UTILITIES FEMA Special Flood Hazard Area Yes X No FEMA Zone C Map Date 03-02-98 FEMA Man No. i;ini11 nnns R Comments (apparent adverse easements, encroachments, special assessments. slide areas, illegal or legal nonconforming zoning use, etc.): Subject is an older tirplex reflecting normal maintenance, landscaping is minimal as the majority of remaining site is used for off-street parking. The rear portion of lot had a foundation for additional triplex, not acceptable by local codes. The subject is legally zoned (grandfathered) for the present improvements. No adverse easements, encroachments, or conditions noted at time of inspection. File No. 010238 Page #5 SMALL RESIDENTIAL INCOME PROPERTY APPRAISAL REPORT File No. 010238 General description Exterior description (Materials/condition) Foundation 649 Insulation (R -value if known) Units/bldgs. 3 / 1 Foundation CONC Slab YES Roof Stories 1 Exterior walls T-111 Crawl space X Ceiling UNKWN Type (det./att.) DET, Roof surface COMP Sump Pump Total Estimated Cost New `n', Walls UNKWN Design (style) 1 STORY Gutters a dwnspts. AD. OVHG Dampness Depreciation 44200 Floor Existing/proposed EXIST Window type ALUM SLID Settlement INDICATED VALUE BY COST APPROACH None Under construction NO Siorn, sash/screens YES Infestation Adequacy Year Built 1960 Manufactured housing" Yes "I"', No Basement % of 1 st floor area Energy efficient items: Effective age (yrs.) 25 "(Complies with the HUD Manufactured Housing Basement finish 0 Floors CPT/VINYL Type BASEBD Refrigerator 1/AVG Construction and Safety Standards.) None Garage Units Level(s) Foyer Living Dining Kitchen Den Family rm.# # Bedrooms # Baths Laundry Other Sq.Ft./Unit Total A 1 1 1 1 1 1.00 0 Sq.Ft. ((i) $ _$ 649 B 1 1 1 1 1 1.00 649 C 1 1 1 1 1 1.00 _$ 650 =$ Porches. Patios, etc. _$ Total Estimated Cost New =$ Physical Functional External 0 Improvements contain: 12 Rooms: 3 Bedroom(s); 3.00 Bath(s), Depreciation 44200 1948 Sq. ft. of GROSS BUILDING AREA GROSS BUILDING AREA (GBA) IS DEFINED AS THE TOTAL FINISHED AREA (INCLUDING COMMON AREAS) OF THE INDICATED VALUE BY COST APPROACH = $ IMPROVEMENTS BAUPON SED EXTERIOR MEASUREMENTS. Surfaces (Materials/condition) Heating Kitchen equip. (#/unit-cond) Attic Car storage: No. Cars Floors CPT/VINYL Type BASEBD Refrigerator 1/AVG None Garage Walls DRYWALL Fuel ELEC Range/oven 1/AVG Stairs Carport Trim/finish AVERAGE Condition AVERAGE Disposal Drop stair Attached Bath floor VINYL Dishwasher Scuttle Detached Bath wainscot FIBERGLASS Cooling Fan/hood 1/AVG Floor Adequate Doors HOLLOW CORE Central YES Compactor Heated Inadequate Other washer/Dryer Finished Offstreet Condition AVERAGE Microwave Unfinished None Fireplace(s) NONE # Intercom Comments of the improvements, repairs needed, quality of construction, additional features, modernization, etc.. The subject is of new construction of average design and utility. The exterior finish of the subject is very similar to other newer units in the neighborhood. ThE interior is of average quality with carpets in family room and bedrooms. Vinyl in kitchen, laundry, and bath rooms. No physical or functional inadequacies or adverse factors affecting marketing. 4 Depreciation (physical, functional, and external inadequacies. etc.): The subject property is typical in style and quality of new construction of 2-4 family units. The floor plan, utility and room size is considered typical for similar size units. The subject is within 25 blocks of the main business district of Yakima and within easy access of all public services of Yakima. Adverse environmental conditions (such as, but not limited to. hazardous wastes, toxic substances, etc.) present in the improvements, on the site, or in the immediate vicinity of the subject property- No adverse environmental conditions noted during inspection of this property. ESTIMATED SITE VALUE ... _$ ESTIMATED REPRODUCTION COST - NEW - OF IMPROVEMENTS 1948 Sq.Ft. (4) $ 64.89 =$ Sq.Ft. (rd $ _$ 0 Sq.Ft. ((i) $ _$ 0 Sq.Ft.c $ _$ Sq.Ft. (ii) $ _$ _$ _$ _$ Special Energy Efficient Items =$ Porches. Patios, etc. _$ Total Estimated Cost New =$ Physical Functional External Less 35% 0 0 Depreciation 44200 =$ Depreciated Value of Improvements =$ "As is" Value of Site Improvements =$ INDICATED VALUE BY COST APPROACH = $ W'" VALUATION ANALYSIS 32000 Comments on Cost Approach (such as, source of cost estimate, site value, square foot calculation and, for HUD and VA, the estimated remaining economic life of the property). 126406 Marshall & Swift Residential Cost Handbook, contractors' costs and appraiser's experience used to arrive at replacement cost figures. Sales of lots indicate a site value of $32,000. 126406 -44200 82206 2500 Physical depreciation estimated by 25 years effective /70 years expected life. The estimated remaining life is 45 years. File No. 010238 Page #6 ITEM SUBJECT COMPARABLE RENTAL NO.1 COMPARABLE RENTAL NO.2 COMPARABLE RENTAL NO.3 1218 FAIR AVE. 716 N. 3RD ST. 1005 S. 12TH AVE. 209 N. 5TH ST. Address YAKIMA, WA YAKIMA, WA YAKIMA, WA SELAH, WA 120 BLOCKS 25 BLOCKS 3 MILES Proximity to subject Lease dates (it available) MO TO MO MO TO MO MO TO MO MO TO MO Rent survey elate N/A N/A N/A N/A INSPECTION MLS/REALTOR MLS/REALTOR TENANTS Data source INSPECTION MLS/COUNTY RECORDS Rent concessions N/A N/A N/A N/A #Units3 #Vac.O #Units4 #Vac.O Yr.Blt.10 #Units3 #Vac.d Yr.Blt..55 #Units4 #Vac.0 Yr.Blt..70 Description of property -units, Yr.Blt. 1960 1 STY-SIXPLEX 1 STY -TRIPLEX 1 STY-FOURPLEX design. appeal, 1 -STY TRIPLEX AVERAGE DESIGN AVERAGE DESIGN AVERAGE DESIGN age, vacancies AVE QUALITY AVE QUALITY AVE QUALITY AVG QUALITY and conditions AVG CONDITION AVG CONDITION AVG CONDITION AVERAGE CONDITION Room Count Size Room Count SizeTotal Monthly Room Count Size Total Monthly Room Count Size Total Monthly Tot Br Bath Sq. Ft. Tot Br Bath Sq. Ft. Rent Tot Br Bath Sq. Ft. Rent Tot Br Bath Sq. Ft. Rent Individual 4 1 1 1.00 649 3 .1 1.00 528 350 4 1. ' 1.00 813 395 4 .1._ 1.00 920 375 unit breakdown 4 _1.-1 1.00 649 3 ;1__ 1.00 528 350 4 .1 `` 1.00 813 395 4 ° 1.00 920 375 4 1 ( 1.00 649 3 1 , 1.00 528 350 4 1.' 1.00 813 395 4 1 11.00 920 375 0 .__l 3 .1._:1.00 528 350 _ 4 _L 1.00 920 375 AVERAGE AVERAGE AVERAGE AVERAGE Utilities. NONE NONE NONE NONE furniture, and NONE NONE NONE NONE amenities included in rent NONE NONE NONE NONE NONE NONE NONE NONE NONE NONE NONE NONE AVG UTILITY AVG UTILITY AVG UTILITY AVG UTILITY Functional utility, NONE NONE NONE NONE basement, NO BSMT. NO BSMT. NO BSMT. NO BSMT. heating/cooling, project amenities, BB-ELEC. BB -E BB-ELEC. BB-ELEC etc. WALL A/C NONE NONE WALL A/C NONE NONE NONE NONE Reconciliation of rental data and support for estimated market rents for the individual subject units (including the adjustments used, the adequacy of comparables, rental concessions, etc.) Very limted rental available on traditional style one bedroom triplex units. In order to find sufficient data the appraiser had to extend search parameters and used converted single family dwellings to income type properties. All the rental data has been gathered via Yakima Multiple Listing Service. Subject's rent schedule The rent schedule reconciles the applicable indicated monthly market rents to the appropriate subject unit, and provides the estimated rents for the subject property The appraiser must review the rent characteristics and the comparable sales to determine whether estimated rents should reflect actual or market rents. For example, if actual rents were available on the sales comparables and used to derive the gross rent multiplier (GRM), actual rents for the subject should be used. If market rents were used to construct the comparables' rents and derive the GRM, market rents should be used. The total gross estimated rent must represent rent characteristics consistent with the sales comparable data used to derive the GRM The total gross estimated rent is not adjusted for vacancy. ACTUAL RENTS ESTIMATED RENTS Lease Date No Per Unit Total Per Unit Total Unit Units Begin End Vacant Unfurnished Furnished Rents Unfurnished Furnished Rents A MO TO MO NO $ 325 $ $ 325 $ 350 $ $ B MO TO MO NO 325 325 350 C MO TO MO NO 325 325 350 3 p Is 975' I —I $ Other monthly income (itemize) $ Vacancy- Actual last year 5 % Previous year 3 % Estimated: 5 % $ 630 Annually Total gross estimated rent $ Utilities include(] in estimated rents: Electric Water I Sewer Gas Oil , -' Trash collection Comment on the rent schedule, actual rents, estimated rents (especially regarding differences between actual and estimated rents), utilities, etc. Estimated rents based on similar units in the neighborhood and actual rents are similar. Comparable rentals used that were outside the subject's immediate neighborhood are of similar size, quality, age, and condition. Frndrlie AAnr Fnrm 79 fnAl to N This form was reorodured by United Svslems Software Company (800) 969-8727 - Page 3 of 4 Mae Form 1025 350 350 350 10501 10501 File No. 010238 Page #7 SMALL RESIDENTIAL INCOME PROPERTY APPRAISAL REPORT File No. 010238 The undersigned has recited three recent sales of properties most similar and proximate to the subject property and has described and analyzed these in this analysis. II there is a significant variation between the subject and comparable properties, the analysis includes the dollar adjustment reflecting the market reaction to those items or an explanation supported by the market data. II a significant item in the comparable property is superior to, or more favorable than, the subject properly, a minus (-) adjustment is made, thus reducing the indicated value of subject: it a significant item in the comparable is interior to, or less favorable than. the subject properly a plus ( +) adjustment is made. thus increasing [lie indicated value of the subject. [(i) Sales Price - Gross Monthly Rent] ITEM SUBJECT COMPARABLE SALE NO.1 1COMPARABLE SALE NO.2 COMPARABLE SALE NO.3 Address 1218 FAIR AVE. 1212 JEROME AVE. 912 S. 23RD AVE. 103 S. 7TH ST. YAKIMA, WA YAKIMA, WA YAKIMA, WA YAKIMA, WA Proximity to subject NONE 125 BLOCKS 35 BLOCKS 12 BLOCKS Sales price $ REFINANCE Unf. Furn. $ 141000 Unf. Furn. $ 137900 X Unf. Furn. $ 86000 Sales price per GBA $ 0.00 $ 62.31 $ 58,19 $ 53.75 Gross monthly rent $ 1150 $ 1350 $ 1275 $ 850 Gross mo. rent mull.0) 0.00 104.44 108.16 101.18 Sales price per unit $ 0.00 $ 47000.00 $ 45966.67 $ 43000.00 Sales price per room $ 0.00 $ 11750.00 $ 15322.22 $ 10750.00 Data and/or INSPECTION COUNTY RECORDS COUNTY RECORDS COUNTY RECORDS Verification Sources INSPECTION COUNTY RECORDS COUNTY RECORDS COUNTY RECORDS ADJUSTMENTS DESCRIPTION DESCRIPTION i -(-)$Adjustment DESCRIPTION -+-(-)$Adjustment DESCRIPTION +(-)$Adjustment Sales or financing N/A CONY CONV R.E.C. concessions NONE NONE NONE Date of sale/time N/A 5/03/00 5/07/01 6/01/01 Location URBAN URBAN URBAN URBAN Leasehold/Fee Simple FEE SIMPLE FEE SIMPLE FEE SIMPLE FEE SIMPLE Site 0.34 Acres 0.12 Acres 7500 0.27 Acres 0.12 Acres 7500 View AVG/NEIGH AVG/NEIGH AVG/NEIGH AVG/NEIGH Design and appeal 1 STY TRIPLEX 1 STY TRIPLEX 1 STY TRIPLEX 1 STY DUPLEX 45000 Oualily of construction AVERAGE AVERAGE AVERAGE AVERAGE Age 50/25 EFF 22/10 EFF -10600 40/20 EFF -3400 80/25 EFF Condition AVERAGE AVERAGE AVERAGE AVERAGE Gross Building Area 1948 Sq. Ft. 2263 Sq. Ft. -9500 2370 Sq. Ft. -12700 1600 Sq. Ft. -14600 No. Room Count No, No. Room Count No. No. Room Count No. No. Room Count No. Tot Br Bath unitsvac. Tot Br Bath units vac. units Tot Br Bath vac. units Tot Br Bath vac. Unit 1 4 1 1.00 0 1 4 2, 1.00 0 -2500 1 3 .2 1.00 0 -2500 1 4 2. ' 1.00 0 -2500 breakdown 1 4 1. 1.00 0 1 4 2 1.00 0 1 3 .211.00 0 -2500 1 4 .2. 1.00 0 -2500 1 4 1 1.00 _2500 0 1 4 2 1.00 0 2500 1 3 .2 1,00 0 $2500 0 0 Basement description NONE NONE NONE NONE Functional utility AVERAGE AVERAGE AVERAGE AVERAGE Healing/cooling BASEBD/WALL BB-E/WALL BB-E/WALL BB-E/WALL Parking on/off site 2- OPEN EACH 2 -OPEN EACH 2 OPEN EACH 1 GAR -3500 Project amenities and NONE NONE NONE NONE fee (Il applicable) NONE NONE NONE NONE Net Adj. (total) + - $ -20100 + - $ -21100 + - $ 29400 Adj. sales price of comparables _ I $ 120900 $ 1168001-- $ 115400 Comments on sales comparison (including reconciliation of all indicators of value as to consistency and relative strength and evaluation of the typical investors'/purchasers' motivation in that market): See Attached Addenda. ITEM SUBJECT COMPARABLE NO.1 COMPARABLE NO.2 COMPARABLE NO.3 Date, Price and Data Source for prior sales within year of NONE NONE NONE NONE appraisal COUNTY REC COUNTY RECRDS COUNTY RECORDS COUNTY RECORDS Analysis of any current agreement of sale, option, or listing of the subject properly and analysis of any prior sales of subject and comparables within one year of the date of appraisal: The subject property has not been listed or sold in the last twelve months. Total gross monthly estimated rent $ 1050 x gross rent multiplier (GRM) 104.00 = $ 109200 INDICATED VALUE BY INCOME APPROACH Comments on income approach (including expense ratios, it available, and reconciliation of the GRM) See attached addendum... INDICATED VALUE BY SALES COMPARISON APPROACH $ 116500 INDICATED VALUE BY INCOME APPROACH $ 109200 INDICATED VALUE BY COST APPROACH $ 116706 This appraisal is made , - "as is" subject to the repairs, alterations, inspections or conditions listed below subject to completion per plans and specifications. Comments and condition of appraisal: See Attached Addenda. Final reconciliation: See Attached Addenda. The purpose of this.appraisal is to estimate the market value of the real property that is the subject of this report, based on the above conditions and the certification, contingent and,limitin� conditions. and market value definition that are slated in the attached Freddie Mac Form 439/Fannie Mae 1004B ( Revised 6/93 ) . (WE) EST WTE TFjE MARKET VALUE, AS DEFINED, OF THE REAL PROPERTY THAT IS THE SUBJECT OF THIS REPORT, AS OF 07-09-01 (WHICH I. THE DAT OF )INSt�ECT ON AND TH EFFECTIVE DATE OF THIS REPORT) TO BE $ 116500 APPRAIS . / ? SUPERVISORY APPRAISER (ONLY IF REQUIRED): /// Signature f % r' Signature Did Did not Name JfJHN�� IMM', IFAS �' Name inspect property Date Ref ort Signed 07-24-01 Date Report Signed State�ertification # 1700335 State WA State Certification # State nr Cat@ I icpncp db State Or State License # State nit +­ ..,it ron-ri, File No. 010238 Page #8 TEXT ADDENDUM File No. 010238 Borrower/Client CITY OF YAKIMA (ONDS) Address 1218 FAIR AVE. Cily YAKIMA Counly YAKIMA State WA Zip Code 98901 Lender/Client CITY OF YAKIMA (ONDS) COMMENTS ON COMPARISON OF LISTINGS TO SUBJECT PROPERTY Current demand for rental units has been consistent over the past two years. Very imited listings and/or sales of similar type properties in the subject's immediate area. No listings of any similarity in the subject area. Listing #2 are more similar to the subject as all the units are one bedroom per unit. Listing #3 is also a sixplex, offering studio apartments. Listing #1 offers one-two bedroom unit and three -one bedroom units. COMMENTS ON MARKET CONDITIONS THAT AFFECT 2-4 FAMILY PROPERTIES There is a limited number of multi -unit sales and listings in subject's area, making it difficult to analyze the market conditions and their affects According to local MLS the average sale time over the past twelve months is 123 days for single dwellings as well as income type properties. Over a six month period, a 92.30% of the asking price is typically received. There is good availability of mortgage financing at present time and no sales concessions required. No adverse changes anticipated in the market place. Listings of income properties has been limited over the past two years with those listed selling the normal marketing time. There has been new construction of income properties throughout the Yakima area for the past several years. Overall the market is considered to be in shortage with a high demand and values increasing throughout the area. Value increases do in part to the increasing rents noted over the past three years, high demand for cash flow properties and limited supply in fully developed areas. Statistical information regarding days on market, information gathered through sales verification and interviews of market participants indicate a reasonable exposure and marketing time, very similar to that indicated in the neighborhood section of this report. COMMENTS ON SALES COMPARISON Research of income property finds very limited sales of similar type properties for the past three years. The limited sales are due to the lack of willing sellers who have owned the property for several years and have seen good cash flow due to rent increases. Lack of willing sellers can also be traced to the changes in tax laws within the last three years. Sales used were out of the subject's neighborhood boundaries. No sales of any newer units in the previous twelve months were found within the subject's immediate neighborhood. Sale #1 is located further out on the west side of Yakima, superior to the subject area. The units are older than subject with the overall building area being larger than subject. Sales #1 & #2 is also outside the subject's search parameters. Sale #3 is adjusted by the lack of the third unit. The size adjustment is based on differences in the square foot per unit. The sales used are considered the best avialable for the subject property. This particular neighborhood has a mixture of owner occupied residents with duplexes and rental homes within the neighborhood. After a review of all the sales data, the selected sales are considered to be the best available to lead to a reasonable indication of value. The overall adjustment process appears reasonable and in line for the limited sales data. A fairly narrow range of adjusted value is established and when combined with the subject's sales price, supports a market value estimate of $116,500. COMMENTS ON INCOME APPROACH The gross rent multiplier is based upon the actions of buyers & sellers in the open market. The expense and vacancy ratios for the comparable sales is similar to that of subject. COMMENTS ON CONDITION OF APPRAISAL This appraisal report has been completed with the subject in "As Is" conditon. No personal property included in this valuation. All freestanding appliances are considered personal property and are not included in this valuation. The function of this report is for loam underwriting purposes and has been prepared specifically for CITY OF YAKIMA (ONDS). It may not be used or relied upon by any other person or entity. Any other person or entity who uses or relies upon any information in this report, without the preparer's written consent, does so Designed by United Systems Software (800) 909-8727 File No. 010238 Page #9 at his own risk. Neither all nor any part of the contents of this report shall be conveyed to any person or entity, other than the appraiser's or firm's client, through advertising, solicitation materials, public relations, news, sales, or other media without the written consent and approval of the authors, particularly as to valuation conclusions, the identity of the appraiser or firm with which the appraiser is connected. Further, the appraiser or firm assumes no obligation, liability, or accountability to any third party. If this report is placed in the hands of anyone but the client, client shall make such party aware of all the assumptions and limiting conditions of the assignment. This appraisal report is incomplete and cannot be relied upon without the cover letter. This appraisal is not to be represented or assumed to be a building inspection. If user wishes that type of analysis, a qualified building inspector should be contacted and particular attention should be given to plumbing, electrical, heating/cooling system, roof, foundation and other structural components. Unless otherwise stated in this report, the appraiser has no knowledge of the existence of hazardous substances, including without limitation to asbestos, polychlorinated biphenyls, petroleum leakage, or agricultural chemicals which may or may not be present on the property, or of other environmental conditions which were not called to the attention of nor did the appraiser become aware of during the inspection of the subject property. The appraiser, however, is not qualified to test such substances or conditions. The presence of substances such as asbestos, urea formaldehyde foam insulation, or other hazardous substances or environmental conditions may effect the value of the property. The value estimated is predicated on the assumption that there is no such condition on or in the property or in such proximity thereto that it would cause a loss in value. No responsibility is assumed for any such condition, nor for any expertise or engineering knowledge required to discover them. The subject property was physically inspected on 07-09-01, which is the effective date of the appraisal. The appraiser is not aware of or been advised of any detrimental conditions (physical, functional, external) to the subject property and/or local market area. The market value estimated at the conclusion of this appraisal is predicated on the assumption that the subject property meets same conditions as originally noted during inspection and on the completion date of 07-24-01. This is a typical residential form appraisal, generally accepted as a Summary Appraisal Report. COMMENTS ON FINAL RECONCILIATION The Cost Approach will generally result in an excellent estimate of value for newly constructed improvement as no estimate of depreciation is required. The Income Approach finds a range of GRM as well as actual rents. There is potential error in estimating the correct GRM and market rent for each unit. The subject property is purchased based on its potential income stream, with error factors being minor, using the Income Approach to obtain value is considered a reliable indication of value. The Sales Comparison Approach offers a good indication of value. Although there is very limited data the properties reflect the attitudes of buyers and sellers in recent market conditions. All the sales reflect normal and typical adjustments for all differences. Greatest weighting is place on both the Market Comparison Approach and the Income Approach as they depict current market conditions and purchasers attitudes for investment properties. The Cost Approach, which tends to set the upper limit of value, gives supportive value. File No. 010238 Page #10 Operating Income Statement File No. 010238 One- to Four -Family Investment Property and Two- to Four -Family Owner -Occupied Property Property Address Street 1218 FAIR AVE. Citv YAKIMA State WA Zip Code 98901 General Instructions: This form is to be prepared jointly by the loan applicaht, the appraiser, and the lender's underwriter. The applicant must complete the following schedule indicating each unit's rental status, lease expiration date, current rent, market rent, and the responsibilly for utility expenses. Rental figures must be based on the rent for an "unfurnished" unit. Adjustments by Currently Expiration Current Rent Market Rent By Applicant/Appraiser Paid Paid Rented Date Per Month Per Month Utility Expenses By Owner By Tenant Unit No. 1 Yes No mo to mo $ 325.00 $ 350.00 Electricity .......... X Unit No. 2 Yes ; , No mo to mo $ 325.00 $ 350.00 Gas ............. $ 0 Unit No. 3 Yes No mo to mo $ 325.00 $ 350.00 Fuel Oil - 0 ( %) Unit No. 4 Yes No mo to mo $ $ Fuel (Other) $ 0 Total $ 975.00 $ 1050.00 Water/Sewer ....... X Trash Removal ..... X The applicant should complete all of the income and expense projections and for existingproperties provide actual year-end operating statements for the past two years (for new properties, the applicant's projected income and expenses must be provided). This Operating Income Statement, and any previous operating statements the applicantprovides, must then be sent to the appraiser for review, comment, and/or adjustments next to the applicant's figures (e.g., Applicant/Appraiser 288/300). If the appraiser is retained to complete the form instead of the applicant, the lender must provide to the appraiser the aforementioned operating statements, mortgage insurance premium, HOA dues, leasehold payments, subordinate financing, and/or any other relevant information as to the income and expenses of the subject property received from the applicant to substantiate the projections. The underwriter should carefully review the applicant's/appraiser's projections and the appraiser's comments concerning those projections. The underwriter should make any final adjustments that are necessary to more accurately reflect any income or expense items that appear unreasonable for the market. (Real estate taxes and insurance on these types of properties are included in PIT[ and not calculated as an annual expense item.) Income should be based on current rents, but should not exceed market rents. When there are no current rents because the property is proposed, new, or currently vacant. market rents should be used. Annual Income and Expense Projection for Next 12 Months Adjustments by Income (Do not include income for owner -occupied units) By Applicant/Appraiser Lender's Underwriter Gross Annual Rental (from unit(s) to be rented) ... .. $ 12600 $ Other Income (include sources) + + Total $ 12600 $ 0 Less Vacancy/Rent Loss .... . , ... - 630 ( 5.00 %) - 0 ( %) Effective Gross Income $ 11970 $ 0 Expenses (Do not include expenses for owner -occupied units) Electricity .. . .. ....... . . .. ......... Gas.......... .... .. ... ............ ... .... Fuel Oil ............ ... . .... .. .... . Fuel . .... ... . . ...... (Type- Water/Sewer ....... . ........................ . Trash Removal ..... ... , .. . . .. . . . .......... Pest Control ......... . . .... ....... Other Taxes or Licenses ..... .... .... .I ................ .. Casual Labor ..... ...... This includes the costs for public area cleaning, snow removal. etc., even though the applicant may not elect to contract for such services. Interior Paint/Decorating This includes the costs of contract labor and materials that are required to maintain the interiors of the living units. General Repairs/Maintenance This includes the costs of contract labor and materials that are required to maintain the public corridors. stairways. roofs. mechanical systems, grounds, etc. Management Expenses . . . .. ...... .I ... I........ These are the customary expenses that a professional management company would charge to manage the property Supplies .. ... . . . .... .. . . . ..... This includes the costs of items like light bulbs. janitorial supplies, etc. Total Replacement Reserves - See Schedule on Pg. 2 . ... ......... 890 Miscellaneous .. ... ........ . . . ...... . . ..... . . .. .. ........... . . .. .... ... Total Operating Expenses ... $ 890 $ Freddie filar, Designed by United Systems Software (800) 969-8727 Fannie Mae Form 998 Aug n8 Page 1 of 2 Form 216 Aug 88 File No. 010238 Page #11 Replacement Reserve Schedule Adequate replacement reserves must be calculated regardless of whether actual reserves are provided for on the owner's operating statements or are customary in the local market. This represents the total average yearly reserves. Generally. all equipment and components that have a remaining life of more than one year -- such as refrigerators, stoves. clothes washers/dryers, trash compactors, furnaces, roofs, and carpeting, etc. -- should be expensed on a replacement cost basis. Equipment Replacement Remaining By Applicant/ Cost Life Appraiser Stoves/Ranges @ $ 300 ea. - 10 Yrs. X 3 Units = $ 90 $ Refrigerators @ $ 350 ea. _ 10 Yrs. X 3 Units = $ 105 $ Dishwashers @ $ ea. _ Yrs. X Units = $ 0 $ A/C Units @ $ 250 ea. - 10 Yrs. X 3 Units = $ 75 $ C Washer/Dryers @ $ ea. - Yrs. X Units = $ 0 $ HW Heaters @ $ 300 ea. _ 10 Yrs. X 3 Units = $ 90 $ Furnace(s) @ $ ea. - Yrs. X Units = $ $ (Other) .. ...... @ $ ea. _ Yrs. X Units = $ $ Roof .......... @ $ 7500 ea. _ 30 Yrs. X One Bldg. _ $ 250 $ Remaining Carpeting (Wall to Wall) Life (Units) 175 Total Sq. Yds. @ $ 16.0 Per Sq. Yd. - 10 Yrs. = $ 280 $ (Public Areas) Total Sq. Yds. @ $ Per Sq. Yd. - Yrs. = $ $ Total Replacement Reserves. (Enter on Pg. 1) $ 890 $ Operating Income Reconciliation Lender Adjustments $ 11970 – $ 890 = $ 11080 _ 12 = $ 923.33 Effective Gross Income Total Operating Expenses Operating income Monthly Operating Income $ 923 – $ = $ Monthly Operating Income Monthly Housing Expense Net Cash Flow (Note: Monthly Housing Expense includes principal and interest on the mortgage, hazard insurance premiums, real estate taxes, mortgage insurance premiums, HOA dues, leasehold payments, and subordinate financing payments.) Underwriter's instructions for 2-4 Family Owner -Occupied Properties If Monthly Operating Income is a positive number, enter as "Net Rental Income" in the "Gross Monthly Income" section of Freddie Mac Form 65/Fannie Mae Form 1003. If Monthly Operating Income is a negative number, it must be included as a liability for qualification purposes. * The borrower's monthly housing expense -to -income ratio must be calculated by comparing the total Monthly Housing Expense for the subject property to the borrower's stable monthly income. Underwriter's instructions for 1-4 Family Investment Properties If Net Cash Flow is a positive number, enter as "Net Rental Income" in the "Gross Monthly Income" section of Freddie Mac Form 65/Fannie Mae Form 1003. If Net Cash Flow is a negative number, it must be included as a liability for qualification purposes. The borrower's monthly housing expense -to -income ratio must be calculated by comparing the total monthly housing expense for the borrower's primary residence to the borrower's stable monthly income. Appraiser's Comments (Including sources for data and rationale for the projections) Due to lack of housing in the Yakima area, rents have been increasing over the past few years— CG rding to local realtors, property managers and landlords, most have waiting list upon vacancy. Ttfe only acancy time is for. -clean up purposes. JOHN F. TIMM, IFAS - 1 �. ��'� 07-24-01 Appraiser Name g rai, r ignatureDate Underwriter's Comments and Rationale for Adjustments Underwriter Name Underwriter Signature Date Freddie Mac Designed by United Systems Software (800) 969-8727 Form 998 Aug 88 Page 2 of 2 Fannie Mae Form 216 Aug 88 SKETCH/AREA TABLE ADDENDUM File No: 010238 S Borrower/Client U CHARLES WITHROW B Property Address 1 1218 FAIR AVE. E City County State Zip Code C YAKIMA YAKIMA WA 98901 T Lender 1947.75 CITY OF YAKIMA ONDS I M truw.�' SUMMARY Size Totals STC STG P �r 24.9 .� l_It�)I T A 24.50 24-5 UNIT C 24.x' 649.25 R UNIT C UNIT C 649.25 1947.75 0 Utility LNDY R v 130.00 E TOTAL LIVABLE (rounded) E M E C N T A S L S C K E T L C H A SCALE: 1 inch = 13 feet 2r�.�' truw.�' SUMMARY Size Totals STC STG STG STG �r 24.9 .� l_It�)I T A 24.50 24-5 UNIT C 24.x' 649.25 X UNIT C UNIT C 649.25 1947.75 0TH Utility LNDY R Storage 130.00 AREA Area CALCULATIONS Name of Area SUMMARY Size Totals GLA1 UNIT A 649.25 X 24.50 A 649.25 X 24.50 UNIT C 649.25 1947.75 0TH Utility 115.00 R Storage 130.00 E TOTAL LIVABLE (rounded) 1948 A C A L C U L A T 1 0 N S WESTERN APPRAISERS APEX SOFTWARE, INC. 1 {210) 699-6666 APEX II Form 2739 AREA Area CALCULATIONS Name of Area SUMMARY Size Totals GLA1 UNIT A 649.25 X 24.50 UNIT B 649.25 X 24.50 UNIT C 649.25 1947.75 0TH Utility 115.00 Storage 130.00 245.00 TOTAL LIVABLE (rounded) 1948 LIVING AREA CALCULATIONS Breakdown Subtotals 26.50 X 24.50 649.25 26.50 X 24.50 649.25 26.50 X 24.50 649.25 1948 SKETCH/AREA TABLE ADDENDUM File No: 010238 S Borrower/Client U CHARLES WITHROW B Property Address i 1218 FAIR AVE. E City County State Zip Code C YAKIMA YAKIMA WA 98901 T Lender R CITY OF YAKIMA ONDS I M A R E A C A L C U L A T I O t`I S ' APPRAISERS APEX SOFTWARE, INC. 1 (210) 699-6666 APEX 11 Form 2739 WESTERN CALCULATIONS Name of Area SUMMARY Size Totals GLA1 UNIT A 649.25 AREA P UNIT B 649.25 UNIT C 649.25 R 0TH UNI T A 1311T D UNI T C Storage O 245.00 TOTAL LIVABLE (rounded) 194$ V E NG, DI N1h�d t� tial TCHEf�J BATH � �.� BATH t �.l T `"� HEP�d DI NI NGDINING KITCHEN BATH ATG STG E N T ATG STG S S LI'S�9 t'wJr, � LI'�il h •1r•� LI `�•!1 Pw1G BEDRr )Gf•,;�1 BEDROOM ROOM LPJDY E ROOMROOM T C H SCALE: 1 inch = 13 feet Area CALCULATIONS Name of Area SUMMARY Size Totals GLA1 UNIT A 649.25 AREA 26.50 UNIT B 649.25 UNIT C 649.25 1947.75 0TH Utility 115.00 Storage 130.00 245.00 TOTAL LIVABLE (rounded) 194$ Area CALCULATIONS Name of Area SUMMARY Size Totals GLA1 UNIT A 649.25 649.25 26.50 UNIT B 649.25 UNIT C 649.25 1947.75 0TH Utility 115.00 Storage 130.00 245.00 TOTAL LIVABLE (rounded) 194$ LIVING AREA CALCULATIONS Breakdown Subtotals 26.50 X 24.50 649.25 26.50 X 24.50 649.25 26.50 X 24.50 649.25 194$ ----- ------- .__ File No 010238 Pae #11 SUBJECT PHOTOGRAPH ADDENDUM Borrower/Client: CITY OF YAKIMA (ONDS) Address: .1218 FAIR AVE. City: YAKIMA .._._...__.__. County: YAKIMA State: WA Zip Code: 98901 Lender/Client: CITY OF YAKIMA (ONDS) i - :. i:."F:'i -•a'<: -ri�Fr`v �Y.��.Y�•• _ �r_i^:i :..1'.'+t ��.:�t..V',f'Y�, i�Y+, "". •?"J,i. �"y; n':.T,.a"=it:f�•;,f`r��.A"iE'r$i'u+ t+ Front View Rear View Street View This form was reproduced by United Systems software Company (800) 969-8727 PLAT MAP File No. 010238 Page #13 File No. 010238 Borrower/Client CITY OF YAKIMA (ONDS) Address 1218 FAIR AVE. City YAKIMA County YAKIMA State WA Zip Code 98901 Lender/Client CITY OF YAKIMA (ONDS) Designed by United Systems Software Company (800) 969-8727 1# 1 r f ,[st55 t; r' L ' Designed by United Systems Software Company (800) 969-8727 LOCATION MAP File No. 010238 Page #14 File No. 010238 Borrower/Client CITY OF YAKIMA (ONDS) Address 1218 FAIR AVE. City YAKIMA County YAKIMA State WA Zip Code 98901 Lender/Client CITY OF YAKIMA (ONDS) Scale: 8.77 miles Subject Radius: 2.54 miles .7- 7 17 T__ P, J t. . r b�d T­ "ALI ...... .... nal _r -PH 19111" I ill F_ i.t;h .......... — 4, RAd K _7 _M J ftva ...... . . .... Fultvale 'A Val A Comparable'l r .11212 JEROM LL Z -T1 i i I E A' L! AVS .• 1* A Comparable 3 10 S. 7TH ST, Subject 4.: -4 T -, _47: I J7, A .1218FAIR AVE. V +i i. t DIM Lai Comp,,rable 2 -4 12S.2 RD AVE.11- T 7Z� n ta.—4 J T J. ......... ..... 79T -D A. X -T Designed by Uni!ed Syslems Sollware Company (800) 969-8727 File No. 01 COMPARABLE PHOTOGRAPH ADDENDUM Borrower/Client: CZTV OF YAKIMA (O 1�S� Address: 1218 FAIR AVE. City: YAKIMA .__.__--_ County: YAKIMA State: WA Zip Code: 9801 Lender/Client: CITY OF YAKIMA BONDS __ � ,y r •/ t.. ��,•i Y 3 Fk Not Sales Comparable 1 Front View Address: 1212 TEROME AVE. Prox. to Subject: 25 BLOCKS Sales Price: $ 141000 Gross Living Area: 2263.00 Total Rooms: 12 Total Bedrooms: 6 Total Bathrooms: 3.00 Location: URBAN Sales Comparable 2 Front View Address: 912 S. 23RD AVE. Prox. to Subject: 35 BLOCKS Sales Price: $ 137900 Gross Living Area: 2370.00 Total Rooms: 9 Total Bedrooms: 6 Total Bathrooms: 3.00 Location: URBAN Sales Comparable 3 Front View Address: 103 S. TFH ST. Prox. to Subject: 12 BLOCKS Sales Price: $ 86000 Gross Living Area: 1600.00 Total Rooms: 8 Total Bedrooms: 4 Total Bathrooms: 2.00 Location: URBAN This form was reproduced by United Systems Software Company (800) 969-8727 File No. 010238 Page #16 File No. 010238 DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from selle r to buyer under conditions whereby- (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he considers his own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions* granted by anyone associated with the sale *Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments are necessary for those costs which are normally paid by sellers as a result of tradition or law in a market area; these costs are readily identifiable since the seller pays these costs in virtually all sales transactions Special or creative financing adjustments can be made to the comparable property by comparisons to financing terms offered by a third party institutional lender that is not already involved in the property or transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession, but the dollar amount of any adjustment should approximate the market's reaction to the financing or concessions based on the appraiser's judgement. STATEMENT OF LIMITING CONDITIONS AND APPRAISER'S CERTIFICATION CONTINGENT AND LIMITING CONDITIONS: The appraiser's certification that appears in the appraisal report is subject to the following conditions: 1. The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title to it. The appraiser assumes that the title is good and marketable and, therefore, will not render any opinions about the title. The property is appraised on the basis of it being under responsible ownership. 2. The appraiser has provided a sketch in the appraisal report to show approximate dimensions of the improvements and the sketch is included only to assist the reader of the report in visualizing the property and understanding the appraiser's determination of its size 3 The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted in the appraisal report whether the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, expressed or implied, regarding this determination. 4. The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific arrangements to do so have been made beforehand. 5. The appraiser has estimated the value of the land in the cost approach at its highest and best use and the improvements at their contributory value. These separate valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are so used. 6 The appraiser has noted in the appraisal report any adverse conditions (such as, needed repairs, depreciation, the present of hazardous wastes, toxic substances, etc.) observed during the inspection of the subject property or that he or she became aware of during the normal research involved in performing the appraisal. Unless otherwise stated in the appraisal report, the appraiser has no knowledge of any hidden or unapparent conditions of the property or adverse environmental conditions (including the presence of hazardous wastes, toxic substances, etc.) that would make the property more or less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, expressed or implied, regarding the condition of the property The appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because the appraiser is not an expert in the field of environmental hazards, the appraisal report must not be considered as an environmental assessment of the property. 7 The appraiser obtained the information, estimates, and opinions that were expressed in the appraisal report from sources that he or she considers to be reliable and believes them to be true and correct. The appraiser does not assume responsibility for the accuracy of such items that were furnished by other parties. 8 The appraiser will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice 9 The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, repairs, or alterations on the assumption that completion of the improvements will be performed in a workmanlike manner. 10. The appraiser must provide his or her prior written consent before the lender/client specified in the appraisal report can distribute the appraisal report (including conclusions about the property value, the appraiser's identity and professional designations, and references to any professional appraisal organizations or the firm with which the appraiser is associated) to anyone other than the borrower; the mortgagee or its successors and assigns, the mortgage insurer, consultants; professional appraisal organizations, any state or federally approved financial institution; or any department, agency, or instrumentality of the United States or any state or the District of Columbia; except that the lender/client may distribute the property description section of the report only to data collection or reporting service(s) without having to obtain the appraiser's prior written consent. The appraiser's written consent and approval must also be obtained before the appraisal can be conveyed by anyone to the public through advertising, public relations, news, sales, or other media. Freddie Mac Form 439 6-93 Page 1 of 2 Fannie Mae Form 10046 6-93 This form was reproduced by United Systems Software Company 1800) 969-8727 File No. 010238 Page #17 File No. 010238 APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that: 1. I have researched the subject market area and have selected a minimum of three recent sales of properties most similar and proximate to the subject property for consideration in the sales comparison analysis and have made a dollar adjustment when appropriate to reflect the market reaction to those items of significant variation If a significant item in a comparable property is superior to, or more favorable than, the subject property, I have made a negative adjustment to reduce the adjusted sales price of the comparable and, if a significant item in a comparable property is inferior to, or less favorable than the subject, I have made a positive adjustment to increase the adjusted sales price of the comparable. 2 1 have taken into consideration the factors that have an impact on value in my development of the estimate of market value in the appraisal report. I have not knowingly withheld any significant information from the appraisal report and I believe, to the best of my knowledge, that all statements and information in the appraisal report are true and correct. 3. 1 stated, in the appraisal report, only my own personal, unbiased, and professional analysis, opinions, and conclusions, which are subject only to the contingent and limiting conditions specified in this form. 4. 1 have no present or prospective interest in the property that is the subject of this report, and I have no present or prospective personal interest or bias with respect to the participants in the transaction. I did not base, either partially or completely, my analysis and/or the estimate of market value in the appraisal report on the race, color, religion, sex, handicap, familial status, or national origin of either the prospective owners or occupants of the subject property or of the present owners or occupants of the properties in the vicinity of the subject property. 5. 1 have no present or contemplated future interest in the subject property, and neither my current or future employment nor my compensation for performing this appraisal is contingent on the appraised value of the property. 6. 1 was not required to report a predetermined value or direction in value that favors the cause of the client or any related party, the amount of the value estimate, the attainment of a specific result, or the occurrence of a subsequent event in order to receive my compensation and/or employment for performing the appraisal. I did not base the appraisal report on a requested minimum valuation, a specific valuation, or the need to approve a specific mortgage loan. 7 1 performed this appraisal in conformity with the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place as of the effective date of this appraisal, with the exception of the departure provision of those Standards, which does not apply. I acknowledge that an estimate of a reasonable time for exposure in the open market is a condition in the definition of market value and the estimate I developed is consistent with the marketing time noted in the neighborhood section of this report, unless I have otherwise stated in the reconciliation section. 8. 1 have personally inspected the interior and exterior areas Otthe subject property and the exterior of all properties listed as comparables in the appraisal report. I further certify that I have noted any apparent or known adverse conditions in the subject improvements, on the subject site, or on any site within the immediate vicinity of the subject property of which I am aware and have made adjustments for these adverse conditions in my analysis of the property value to the extent that I had market evidence to support them. I have also commented about the effect of the adverse conditions on the marketability of the subject property. 9 1 personally prepared all conclusions and opinions about the real estate that were set forth in the appraisal report. If I relied on significant professional assistance from any individual or individuals in the performance of the appraisal or the preparation of the appraisal report, I have named such individual(s) and disclosed the specific tasks performed by them in the reconciliation section of this appraisal report. I certify that any individual so named is qualified to perform the tasks. I have not authorized anyone to make a change to any item in the report; therefore, if an unauthorized change is made to the appraisal report, I will take no responsibility for it. SUPERVISORY APPRAISER'S CERTIFICATION: If a supervisory appraiser signed the appraisal report, he or she certifies and agrees that: I directly supervise the appraiser who prepared the appraisal report, have reviewed the appraisal report, agree with the statements and conclusions of the appraiser, agree to be bound by the appraiser's certification numbered 4 through 7 above, and am taking full responsibility for the appraisal and the appraisal report. ADDRESS OF PROPERTY APPRAISED: 1218 FAIR AVE., YAKIMA, WA 98901 APPRAISE Signature: Name:,)O IMM, IFAS Date/Signed: 07-24-01 Stgfe� eftification #: 1700335 or State License # State: WA Expiration Date of Certification or License: 7/14/03 SUPERVISORY APPRAISER: (only if required) Signature: Name - Date Signed: State Certification #: or State License #: State - Expiration Date of Certification or License: Did Did Not Inspect Property Freddie Mac Form 439 6-93 Page 2 of 2 Fannie Mae Form 10048 6-93 This form was reproduced by United Systems Software Company (800) 969-8727 1. 0. 6 b 49 WMIN '4 Property Address: 1218 FAIR AVE. YAKIMA, WA 98901 Appraisal Prepared For: CITY OF YAKIMA (ONDS) 112 S. 8TH ST., YAKIMA, WA 98901 Prepared As Of: 07-09-01 Prepared By: JOHN F. TIMM, IFAS 1024 S. 2ND AVE., YAKIMA, WA 98902 (509) 248-2609 File No. 010238 Page #2 This form was reproduced by United Systems Software Company (800) 969 -8727 Form Coverpg Ver. 1.1 File No. 010238 Page #3 WESTERN AP 07-24-2001 Western Appraisers, Inc. 1024 S. 2nd Avenue Yakima, WA 98902 Attention: CITY OF YAKIMA (ONDS) 112 S. 8TH ST., YAKIMA, WA 98901 Dear DONNA, In accordance with your request, I have personally inspected and appraised the real property located at: 1218 FAIR AVE. YAKIMA, WA 98901 The purpose of the appraisal was to estimate the market value of the property, as improved, in fee simple, unencumbered by liens. A legal description of the property will be found herein. In my opinion, the estimated market value of the property, as of 07-09-01, is: $116,500 The attached report contains the description, analysis and supportive data for the conclusions and final estimate of value together with descriptive photographs. qh s been a pleasure to assist you; if I may be of further service to you in the future, please let me know. Sinc rely, 1 JO NIY�IIMM, IFAS i Rename: 010238 Designed by Uniled Syslems Company (800) 969-8727 ' File No.,010006A Page #4 01VIHLL n1=011 CMIMAL initoV1Y1C MKVI GKIi iArrnH10HL KCI"VRI rile "U. UlUUUbA Properly Address 211 S. 4TH ST. A -.D City YAKIMA_._ .._. _._._ ._ State WA Zip Code 9890.1 Legal Description LOT 11, BLOCK 93: YAKIMA _ - _ _ .. County_y A KIMA _ ._... Assessor's Parcel No 191319-24488._. _. - - _Tax Year 99 R.E. Taxes $ .1688.30_ _._.__._Special Assessments $ Neighborhood or Project Name N/A Map Reference _ 1-B __ Ce_nsus Tract 0001.00._. Borrower CITY OF YAKIMA ONDS Current Owner SAMMY TROTTER _. _ Owner Occupant X p � Tenant ( Vacant Property rights appraised X, Fee Simple Leasehold Project Type _ PUD i_ Condominium HOA $ N/A /Mo. Sales Price $ REFINANCE Date of Sale N/A Description and $ amount of loan charges/concessions to be paid by seller N/A Lender/Client CITY OF YAKIMA (ONDS.) Address 112.S. 8TH ST., YAKIMA,..WA 98901_ Appraiser jOHN F, TIMM, IFAS Address Location X Urban Suburban Rural Predominant Single family housing Predominant 2-4 family housing i = Single Family PRICE AGE 2-4 Family PRICE AGE Built up X Over 75% 25-75% Under 25% Occupancy $(000) (yrs) Occupancy $(000) (yrs) Growth rate Rapid X. Stable Slow ' Owner _ 45 ._ Low - 25 _ X Owner 0 80.._. -Low .NEW Property values Increasing X Stable '_._ Declining : Tenant 115._. High _1QQ._._ X Tenant 215. ._High 35.11-1 Demand/supply Shortage X: In balance Over supply i. i Vacant (0-5%) Predominant Vacant (0-5%) Predominant Marketing time Under 3 mos. X' 3-6 mos. Over 6 mos._ Vacant (Over 5%)g5 75 _. Vacant (Over 5%) Typical 2-4 family bldg. Type DET ._. ._. No. stories 1 No. units 1 _ Age _0 yrs. Present land use % Land use change Typical rents $ 300 to $ 650 Increasing Xi Stable i Declining One family75. __, X' Not likely �` ! Likely Est. neighborhood apt. vacancy 3 % Increasing X1 Stable Declining 2-4 family 15 , _ ' In process to: Rent controls Yes X No Likely If yes or likely, describe _-_ __. _ ._..._. . Multi -family - Commercial 5 Note: Race and the racial composition of the neighborhood are not appraisal factors. Neighborhood boundaries and characteristics: Neigh borhood_boundaries are- S_St..to the North,. Race St.. to the South, _N._ -10th. __ _.._ Street to the East, and Front Street. to the West. Factors that affect the marketability of the properties in the neighborhood (proximity to employment and amenities, employment stability, appeal to market, etc.). The subject is located about 6 blocks from the.main business district.of_Yakima..This.neighborhood is comprised primarily of homes reflecting- average quality, utility and marketability,Availability of .public _ .__ . services combined with average access -to employment, shopping,_and.schools-make this. -neighborhood competitive in the.market place. The following available listings represent the most current, similar, and proximate competitive properties to the subject property in the subject neighborhood. This analysis is intended to evaluate the inventory currently on the market competing with the subject property in the sub'ect neighborhood and recent price and marketing time trends affecting the subject property. (Listings outside the subject neighborhood are not considered applicable;. The Listing comparables can be the rental or sale comparables if they are currently for sale. ITEM SUBJECT COMPARABLE LISTING NO.1 I COMPARABLE LISTING_ NO.2 COMPARABLE LISTING NO.3 211 S. 4TH ST. A -D 209 N. 5TH ST. 1809 S. 9TH ST. '111 N. 6TH ST. Address YAKIMA, WA _._. �_.. .,. YAKIMA, WA YAKIMA, WA ._ rYAKIMA,.WA ._ ...__._._ .. Proximity to subject Imo; . 6. BLOCKS_ ...._._.. 4 BLOCKS Listing price ;$ N/A. _. X Unf,_. �.� Furn. $135000 X' Unf.._ ! Furn_$109900__... _X_Unf. _ :: Furn. $.1100.00_. Approximate GBA i3038 13908 _ ;1813_ 2054_. _ Data source INSPECTION , MLS MLS_.. ; _ _ _.__ _. I MLS # Units/Tot. rms/BR/BA 4 , 15 ! 8 5.00 4 12 .; 4 4.00 _; __._4 - :._.121-. 4 _! 4.00 _ ; 4 14. 6 Approximate year built 1996 ;1.950 11.975_ _ !1930 Approx days on market 'N/A 95 DAYS _ _ 137 DAYS_ _. _ ' 67 DAYS . _ Comparison of listings to subject property: See Attached Addenda. Market conditions that affect 2-4 family properties in the subject neighborhood (including the above neighborhood indicators of growth rate, property values, demand/supply, and marketing time) and the prevalence and impact in the subject market area regarding loan discounts, interest buydowns and concessions, and identification of trends in listing prices, average days on market and any change over past year, etc.: According to the Local -Multiple Listing _------- .__..... Service, the approximate marketing time for the -subject area. is 118 days—Present market.conditions.are favorable, and do not require creative financing. -- Dimensions 50X140 _ _ Topography LEVEL.AT GRADE_.__. .._ Site area 0.16 Acres _ _ Corner Lot Xi Yes ;! No Size 0.16 Acres_. ____. Specific zoning classification and description R-3 (MULTI -FAMILY_ RESIDENTIAL) __. _ __ Shape RECTANGULAR._ _. Zoning compliance X Legal ' Legal nonconforming (Grandfathered use) 1 Illegal No zoning Drainage APPEARS ADEQUATE— - Highest & best use as improved X. Present use , Other use (explain) _ . View AVG/_NEIGHBORHOOD Landscaping AVERAGE/LAWN & SHRUBS-.._... Utilities Public Other Off-site Improvements Type Public Private - Driveway CONCRETE Electricity ` Street PAVED ._ _ .. _._ _ _ ._ ._ _ ._ r X ) Apparent Easements TYPICAL. UTILITIES _. . Gas Curb/Gutter YES Water X; Sidewalk YES X I . FEMA Special Flood Hazard Area i._._I Yes X No - - Sanitary Sewer - Street Lights YES.- _ _. __ _____ X FEMA Zone C__. _ _ - Map Date 03-02-98. Storm SewerAlley YFS is �_J FEMA Map No. ()3110007 B Comments (apparent adverse easements, encroachments, special assessments, slide areas, illegal or legal nonconforming zoning use, etc.): Subject is an older single family dwelling that has been completely updated to the most.recent codes -and converted to a :• fourplex, landscaping is minimal as the majority of remaining site is used for off -street -parking. The subject is.._ _ legally zoned for the present improvements. No adverse easements, encroachments, or conditions noted at . time of inspection. File No. 010006A - Page #5 SMALL RESIDENTIAL INCOME PROPERTY APPRAISAL REPORT File No. 010006A General description Exterior description (Materials/condition) Foundation Insulation (R -value it known) Unils/bldgs. 4 / 1 Foundation CONC _ _.__. _ Slab NO Roof -.- Stories 2 Exterior walls T-111 _ -. _ - _._ _ ._ _ __ Crawl space _--- ._ _.._ i< Ceiling R-38__.-_ _. Type (det./att.) DEI-, Roof surface METAL ___. Sump Pump ._ ._ X. Walls R-19___ .__. Design (style) 2 STORY Gutters & dwnspts. AD. OVHG _ ._.___ Dampness _ _ _' Floor Existing/proposed EXIST Window type VINYL SLIDE _. _._. .___. _ Settlement --- i None _.-_--__.- Under construction NO Storm sash/Screens YES _._. ___ Infestation _... Adequacy _ _ Year Built 1995 Manufactured housing" Yes Xi No Basement -- - % of 1 st floor area Energy efficient items: Effective age (yrs.) 3 "(Complies with the HUD Manufactured Housing Basement finish 0 -. --. - - - - --- - Construction and Safety Standards.) ' Units Level(s) Foyer Living Dining Kitchen Den .Family rm,# # Bedrooms # Baths Laundry Other Sq:Ft./Unit ;_ _Total -I r - - - A 1 1 X 1 2 _ ._. _ 2.00 ! .__ _ _ -- _ _, _ 858, _. B 1 1 _ 1 2_- _..__ 1t00 586 C 1 1 1.00 _ _ 418 D 2 1 X __1.00 --- : _ __. _ . 1.0.7.6 -.,.- Improvements contain: 15 Rooms; 8- Bedroom(s); ---.5.00 -_ Bath_(s), 3038 Sq. ft. of GROSS BUILDING AREA -- GROSS BUILDING AREA (GBA) IS DEFINED AS THE TOTAL FINISHED AREA (INCLUDING COMMON AREAS) OF THE _ IMPROVEMENTS BASED UPON EXTERIOR -MEASUREMENTS,_ -.- Surfaces (Materials/condition) Heating Kitchen equip. (#/unit -cons) Attic Car storage: No. Cars Floors CPT/VINYL Type FORC AIR Refrigerator 1/GOOD None Garage - Walls DRYWALL _. Fuel ELEC ._. _.- __ Range/oven 1/GOOD-.- - . - Stairs Carport - Trim/finish AVERAGE Condition AVERAGE ._ _ Disposal 1/GOOD__ ._ _. __ Drop stair Attached Bath floor VINYL Dishwasher .1/GOOD _ _ X Scuttle Detached _ Bath wainscot FIBERGLASS Cooling Fan/hood 1/GOOD-_.--- Floor Adequate I - Doors HOLLOW CORE Central YES Compactor _.__ Heated Inadequate Other Washer/Dryer ___ ._ Finished Offstreet Condition AVERAGE Microwave _. Unfinished None Fireplace(s) NONE # Intercom Comments of the improvements, repairs needed, quality of construction, additional features, modernization, etc.: The_ subject.is. of --new constr_uetion__of.___.------- - average design and utility. The exterior finish of the subject is. very similar to other -newer units in -the neighborhood. The interior is of average quality -with. carpets in family room,andbedrooms.. Vinyl -in, kitchen,. laundry, and bath rooms..No physical or functional inadequacies or -adverse factors.affecting marketing.. Depreciation (physical, functional, and external inadequacies, etc.). The subject property_ is typical in- style and quality -of new construction of 2-4 family units. The floor plan, utility and.r..00m size. is_,considered -typical -for similar size units. The subject is within 25 blocks of the main. business district of Yakima .and within easy access of all public services of Yakima. — --_ --- - -- - — - - Adverse environmental conditions (such as, but not limited to, hazardous wastes, toxic substances, etc.) present in the improvements, on the site, or in the immediate vicinity of the subject property- No adverse environmental -conditions- noted during inspection of this_proper-ty. VALUATION ANALYSIS ESTIMATED SITE VALUE . ..... =$ Comments on Cost Approach (such as, source of cost estimate, site value, square foot ESTIMATED REPRODUCTION COST - NEW _ _.28000.. - OF IMPROVEMENTS: calculation and, for HUD and VA, the estimated remaining economic life of the property)* 3038 Sq.Ft. @ $ 52.72 =$ 160.163 Marshall &.Swift Residential Cost -.Handbook, contractors'_costs.._-_.__ Sq.Ft. @ $ =$ and appraiser's _experience -used - to, arrive at replacement -cost.-. 0 Sq.Ft. @ $ =$ figures. Sales -of _ -lots indicate. a. site value .of $28,000. 0 Sq.Ft. @ $ =$ - - - - - - - - Sq.Ft. @ $ _ =$ =$ - ----- —.. --- - - Special Energy Efficient Items _ =$ Porches, Patios, etc. =$ -- - - - -- Total Estimated Cost New =$ 160163 Physical Functional External --- ------ Less Less 15% 0 0 - - Depreciation 24000 � =$ 24000 -- _ - - - - - - - - -- Depreciated Value Of Improvements _$ _ 136.163 -- - "As is" Value of Site Improvements =$ - __ 0 _ _ _ __ _ _ _.__.__ ...... INDICATED VALUE BY COST APPROACH =$ 164163, Adie Mar Form 72 10-94 10 CH. This form was reoroduced by United Systems Software Company (800) 969-8727 - Page 2 of 4 Fannie Mae Form 1025 10-94 File No. 010006A Page #6 51111ALL Kt ti1VtIV11AL I14t;WIVIL YKVI'tK1Y AI'YKAI,AL KEPORI file No. 010006A At least three rental comparables should be reported and analyzed in this section. The rental comparables should represent the most current rental information on properties as similar and proximate to the subject property as possible. (This comparison is based on current rental data, therefore, the rental comparables typically are not the same comparables used in the sales comparison analysis.) The appraisal report should assure the reader that the units and properties selected as comparables are comparable to the subject property (both the units and the overall property) and accurately represent the rental market for the subject property (unless otherwise stated within the report) ITEM SUBJECT COMPARABLE RENTAL NO.1 i COMPARABLE RENTAL NO. 2 COMPARABLE RENTAL NO. 3 Address 211 S. 4TH ST. A -D .625 N. 6TH AVE 11210 W.PRASCH AVE. 209 N. 5TH ST. YAKIMA, WA _.___ YAKIMA, WA- .-! YAKIMA,_WA_ ___. __ _ YAKIMA, WA Proximity to subject 15 BLOCKS 125 BLOCKS 6 BLOCKS � I Lease dales (if available) MO TO MO ; MO TO M.- MO TO -MO- _._ __ ; MO_TO.MO Rent survey date N/A I N/A : N/A. _.-_. _ _ N/A Data source INSPECTION COUNTY RECORDS OWNER TENANTS INSPECTION TENANT INFORMATION INSPECTION MLS/COUNTY RECORDS_. Rent concessions N/A N/A N/A N/A #Units2 #Vac.0 #Units4 #Vac.0 Yr.BIL:4 i#Units2 #Vac.O Yr.Blt.:97 #Units4 #Vac.O Yr.Blt.:70 Description of ; Yr.Blt.: 1995 J STY -DUPLEX 2. STY -TRIPLEX _.__ 1_-STY-FQURPLEX property -units, ( - design, appeal, 1 -STY DUPLEX i AVERAGE.DESIGN_ _..LAVERAGE_.DESIGN _ _ _- __. _. _ AVGERAGE_DESIGN age, vacancies AVE QUALITY AVG. QUALITY _ i.AVG._QUALITY rAVG/GOOD QUALITY__._ _.. -.._. and conditions GOOD CONDITION GOOD CONDITION _------ i G00D CONDITION....-___. _ _- _ _;AVERAGE CONDITION Room Count Total Room Count Total ~ Room Count Total Size Room Count _ Size Size __. Size I Monthly l , i Monthly -�--- - - I Monthly Tot Br Bath Sq. Ft. Tot Br i Bath S . Ft. Rent Tot Br Bath Sq. Ft. Rent Tot : Br ! Bath Sq. Ft. Rent --q ;- - �s -4 --..-. Individual n ividual 4 2.00 ': _960 , 5 1.00_ 972_ 600 14 j2J 1.00._; 963_. 4 1.00 920 _.1__._37.5 breakdown 4 1.00 960 _ , 5_ J 1.00 - 972 _. 500- _ '_ 4 Z 1.00-_j-_ _963 ._. _ _ 425__ ;- 4 .�.l _ 1.00 .920 .. !.. 2 L 1.00 , 960 i4 2 1 1.00 _.963-.__. 425 :_4 X1.1.00 - 920_ l- _375 5 �J 1.00 960 0 i _ � 1.00.,_.920_.- 375.._ AVERAGE AVERAGE JAVERAGE_ ,.AVERAGE Utilities, NONE 'NONE I NONE . __ NONE furniture, and ;NONE NONE _ i NONE 1NONE amenities ! NONE NONE �-NONE._ ._ ! NONE. included in rent - - - NONE ;NONE NONE _._ _ ;NONE NONE ;NONE _ -!NONE _..-_. _ .... _._ !NONE .__ AVG UTILITY _ AVG UTILITY_ ::AVG_UTILITY ;AVG UTILITY Functional utility, NONE i NONE 1 NONE NONE basement, j NO BSMT. NO BSMT. NO BSMT_ .__. _- I NO_BSMT. healing/cooling, i project amenities, BB-ELEC. ; FA- ELE ! BB-ELEC.. __..._ BB-ELEC etc. WALL A/C CENTRAL. ._ __ _- ' WALL.A/C WALL A/C NONE NONE i NONE _ _- --. NONE Reconciliation of rental data and support for estimated market rents for the individual subject units (including the adjustments used, the adequacy of comparables, rental concessions, etc.) Rental unit #1 is of similar age, quality and age to that _of subject,.indicating thatthree_bedroom rents range between $500.00 to $600.00. Rental #2_is situated farther west than the subject,_all. units are_competitive_._._-__- _ with the subject and are similar. inmost respects for two bedroom units. The. renAt, range -for -two berooms_. range between $400.00 to $425.0.0. II the comparable -units are -similar to the subject in quality. Rental #3 are four -one bedroom units that reflect monthly rent at $375.00. All- the rents best.reflect_the economic..._.__. rent schedule for the subject property. -- -. - -- - - Subject's rent schedule The rent schedule reconciles the applicable indicated monthly market rents to the appropriate subject unit, and provides the estimated rents for the subject property The appraiser must review the rent characteristics and the comparable sales to determine whether estimated rents should reflect actual or market rents. For example, if actual rents were available on the sales comparables and used to derive the gross rent multiplier (GRM), actual rents for the subject should be used. If market rents were used to construct the comparables' rents and derive the GRM, market rents should be used. The total gross estimated rent must represent rent characteristics consistent with the sales comparable data used to derive the GRM. The a total gross estimated rent is notadjusted for vacancy. _ _ ACTUAL RENTS __. ! _- _ _ ESTIMATED RENTS _._. Lease Date No. Per Unit Total ! Per Unit_ Total Unit Begin End i Vacant 1 -. Unfurnished Furnished ! Rents Unfurnished Furnished Rents A MO, TO MO NO $ 500---. ! $ $ _. _-._.500 $ ._ ._ 500 _ __-$ B MO i _TO MO A NO . L 500._ _ .1 _-----___-.- __-.-5001-----500 -_.._.------ ---.. 500 C MO_. TO MO _ ' NO.300..;.--- .300..;.--- .325 - - - - - - ---. _._ 325 D MO .-._ TO MO NO -..I. 525 . 5251 :--5.25_,_ _ ...'- T: - _..- 525 i 0 ;" .. $ 4 �__ _ .$ _ 1825. Other monthly income (itemize) _.._.. $ _...___-...- Vacancy Actual last year 5 % Previous year 3 % Estimated: 5 _ % $ _. .-1110 Annually Total gross estimated rent $ -_ --1850 Utilities included in estimated rents: i Electric X; water X Sewer i Gas i Oil X Trash collection [- __----- Comment on the rent schedule, actual rents, estimated rents (especially regarding differences between actual and estimated rents), utilities, etc.: Estimated -rents .based_on similar units in the neighborhood. and actual rents are.similar. Comparable -rentals used. thatwere_outside_the_ subject's immediate neighborhood are of similar size, quality, age, and.condition.__. Freddie Mar. Form 72 I0-94 In CN- This form was reproduced by United Systems Software Company (800) 969-8727 - Page 3 of 4 Fannie Mae Form 1025 10-94 File No. 010006A Page V SMALL RESIDENTIAL INCOME PROPERTY APPRAISAL REPORT File No. 010006A The undersigned has recited three recent sales of properties most similar and proximate to the subject pproper)y and has described and analyzed these in this analysis. If there is a significant variation between the subject and comparable properties, the analysis includes the dollar adjustment reflecting the market reaction to those items or an explanation supported by the market data. It a significant item in the comparable property is superior to, or more favorable than, the subject property, a minus (-).adjustment is made, thus reducing the indicated value of subject; if a significant item in the comparable is interior to, or less favorable than, the subject property, a plus (+) adjustment is made, thus increasing the indicated value of the subject. [(1) Sales Price _ Gross Monthly Rent] ITEM SUBJECT COMPARABLE SALE NO._1 COMPARABLE SALE NO.2 COMPARABLE SALE NO.3 Address 211 S. 4TH ST. A -D 906 S. 42ND AVE. 4115 S. 2ND ST. 2205 SUMMITVIEW AVE. YAKIMA, WA ._,. ..... .. YAKIMA, WA_.. _ ! UNION GAP, WA - : YAKIMA WA Proximity to subject I . __ J 3.5 MILES J 2.5 MILES_ . _ :_1.5 MILES _ i Sales price $REFINANCE X Unf. Furn, $ _.1.45000 1 Unf. !-Furn. $_ 115000__ _ .Unf. _' Furn. $ _.1.39000 Sales price per GBA ; $ 0.00 $ 39.75. $._ 41.7.9._... _. 1.$_61.53 _ _...... Gross monthly rent $ 1150 ; $ 2100 _ _ 1$ 1650.. :$ 1900_ Gross mo. rent mull.(i) 0.00 69..05 _. .__ __. 169.70_. ._, 73.16 _ - - - Sales price per unit ; $ 0.00 ; $ 36250.00 _ _ i_ $ .38333.33..___ ___ _ .__: $ .34750.00. Sales price per room $ 0.00 $ 9.062.50 _ $- -7666.67-.- _ _ _ __ A926.6.67 Data and/or INSPECTION COUNTY RECORDS COUNTY RECORDS Verification Sources INSPECTION ;COUNTY RECORDS._ : COUNTY RECORDS . ADJUSTMENTS DESCRIPTION DESCRIPTION +(-)$Adjustment ; DESCRIPTION +(-)$Adjustment ; DESCRIPTION +(-)$Adjustment IN A (�/ Sales orfinancing CONV CONV CONV / concessions i _ NONE _ ;..NONE ;_NONE _._._.._. Date of sale/time NA iO3/01/00 _ _I _. 03/06/.01 _ -,_07./13/01 ._ Location URBAN _.._ URBAN+ __-15000.1.URBAN+__ ._ -10000.1 URBAN -15.000 Leasehold/Fee Simple FEE SIMPLE 'FEESIMPLE- ___. _ ; ; FEE SIMPLE__ ..__.:. _ _. FEE SIMPLE . Site 0.16 Acres _ 0.22 Acres _ 0.21 Acres _ ..__.. _0.37 Acres View ; AVG/NEIGH AVG/NEIGH-_.._ _._1. _ AVG/NEI.G.H_._._ _ _ _._.._ AVG/NEIGH _. Design and appeal ; FOURPLEX FOURPLEX ;. --!.TRIPLEX- _ _ 125-0-0-!-FOURPLEX. ._ Quality of construction ;AVERAGE AVERAGE _. ._ _ ._ _ _... ;AVERAGE ._ .__. _ 1 _. _ 'AVERAGE ._._.._. Age 4yrs/3 EFF 25yrs/15 EFF ;._._ _ _j45yrs/15 EFF _ _ _',80yrs/30 EFF _ Condition AVG/GOOD. 'AVG/GOOD- __ 'AVG/GOOD ._. _ _ _ .; AVG/GOOD Gross Building Area ; 3038 _ Sq. Ft. 3648 Sq. Ft. -12200:2752 Sq. ft. 5700-2259 Sq. Ft. 15600 No. Room Count No. No. - Room Count No. No.. Room Count ' No. No. Room Co_ unt No. el of - of ; - - - ---- of - -- ; unfts'Tot Br Bath vac.:unils;Tot ' Br Bath ivac. unils,Tot Br. Bath vac. units Tot Br ' Bath 'vac. Unit 1 j4 r2_. 2.00 0 1 ;_4 22 `1.0010 ; 1500 ._1 5 _3__1.00 0_., -1-. 4_ kZ....1..00 1.0. breakdown 1 4 � 2.. 1.00' 0 :1 i4 i2_ 1.00-.'-0 : 1 5 �3_ .1.00 ; 0.; .1-3--U- 1.00.i.0-11 1 2 ;_1._ 1.00! 0 1' 4. 2- 1.0.0.: 0 1 5 1.00! 0 1, 4 12..1.00.x._0_; 1 5 _3_� 1.00;' G. 1 4 � _ 1.00 i 0 ; ._ l �. - - �----- - 1 4 ILL 1.00.' 0 i--- - ------ Basement description ',NONE NONE _ ; NONE. _ ;_NONE Functional utility AVERAGE AVERAGE iAVERAGE._.._..._ .__ ____ __. :AVERAGE. Heating/cooling FA-E/CENTRL. _ _BB-E/WALL __ j E313.--E/WALL. ._. _ BB-E/WALL. ! Parking on/off site ; 2- OPEN '2 -OPEN 12 OPEN Project amenities and 1 NONE NONE 'NONE NONE fee (If applicable) , NONE NONE __. NONE. __. .,.NONE Net Adj. (total) i + X - $ -25700 X + _ -$ - _ - 8200.1. -:,_ + __ $_.. -6.900 Adj. sales price of comparables I $ 11930.0', .1_ 1_.$ _ 123200_' I $. _132100 Comments on sales comparison (including reconciliation of all indicators of value as to consistency and relative strength and evaluation of the typical investors' /purchasers' motivation in that market): See Attached Addenda. _ .___..__ _ _ _.__ ._. _ ----- ITEM SUBJECT COMPARABLE N0.1 COMPARABLE N0.2 COMPARABLE NO.3 Date, Price and Data j Source for prior sales i within year of NONE 'NONE NONE NONE i appraisal COUNTY REC i COUNTY RECORDS '-COUNTY. RECORDS __ I COUNTY.RECORDS_ Analysis of any current agreement of sale, option, or listing of the subject property and analysis of any prior sales of subject and comparables within one year of the date of appraisal: The subject property has not been -.listed or sold .in the -last twelvemonths. Total gross monthly estimated rent $ 1850 x gross rent multiplier (GRM) 70.00 .._ _ = $ _ 12950.0_. INDICATED VALUE BY INCOME APPROACH Comments on income approach (including expense ratios, if available, and reconciliation of the GRM) See attached addendum... INDICATED VALUE BY SALES COMPARISON APPROACH $ INDICATED VALUE BY INCOME APPROACH $ INDICATED VALUE BY COST APPROACH _ $ ._. ___-164163_ This appraisal is made ; as is,- subject to the repairs, alterations, inspections or conditions listed below ._.i subject to completion per plans and specifications_ Comments and condition of appraisal: See Attached Addenda...__. Final reconciliation', SE The purpose t this appra contingent an limiting c I (NIE) ESTI ATE THE (Will If IS 1E DATE APPRAISER: Signature _1 Attached Addenda. is to estimate the market value of the real property that is the subject of this report, based on the above conditions and the certification, tions, and market value definition that are stated in the attached Freddie Mac Form 439/Fannie Mae 1004B ( Revised 6/93 RKET VALU AS' DEFT D, OF THE REAL PROPERTY THAT IS THE SUBJECT OF THIS REPORT, AS OF 10-.18-01_ INSP TIONNID THE FFECTIVE DATE OF THIS REPORT) TO BE $ 125000_..___ SUPERVISORY APPRAISER (ONLY IF REQUIRED): Signature. - r- ...._ ; - - -- - - - - - -- i !Did t _1 Did not Name JOHN F.,TIM , , IF/�S _ _ _ Name. _._..__._ inspect property Date Report Si fled` 11-07-01 _ Date-Report..Signed__._.____. State Certifi , tiod #_- 1700335 State WA State Certification # State Or State LIGWe # State Or State License # State co Ad- 1:r- 79 to od in rw Thi, form u- rnnmri-od hu I Wind C -t- Qnnwara r. -nano Innol QfiQ_R797 - Pana d of 4 Fannie Mae Form 1025 10-94 File No. 010006A Page #8 TEXT ADDENDUM File No. 010006A Borrower/Client CITY OF YAKIMA (ONDS) Address 211 S. 4TH ST. A -D City YAKIMA County YAKIMA State WA._. Zip Code 98901 Lender/Client CITY OF YAKIMA (ONDS) .__. _ __..._.... COMMENTS ON COMPARISON OF LISTINGS TO SUBJECT PROPERTY Current demand for rental units has been consistent over the past two years. Very imited listings and/or sales of similar type properties in the subject's immediate area. No listings of any similarity in the subject area. Listing #1 & #2 are more similar to the subject for location, but only offer one bedroom per unit. Listing #3 is also a fourplex, offering two - two bedroom units and two - one bedroom units. COMMENTS ON MARKET CONDITIONS THAT AFFECT 2-4 FAMILY PROPERTIES There is a limited number of multi -unit sales and listings in subject's area, making it difficult to analyze the market conditions and their affects According to local MLS the average sale time over the past twelve months is 123 days for single dwellings as well as income type properties. Over a six month period, a 92.30% of the asking price is typically received. There is good availability of mortgage financing at present time and no sales concessions required. No adverse changes anticipated in the market place. Listings of income properties has been limited over the past two years with those listed selling the normal marketing time. There has been new construction of income properties throughout the Yakima area for the past several years. Overall the market is considered to be in shortage with a high demand and values increasing throughout the area. Value increases do in part to the increasing rents noted over the past three years, high demand for cash flow properties and limited supply in fully developed areas. Statistical information regarding days on market, information gathered through sales verification and interviews of market participants indicate a reasonable exposure and marketing time, very similar to that indicated in the neighborhood section of this report. COMMENTS ON SALES COMPARISON Research of income property finds very limited sales of similar type properties for the past three years. The limited sales are due to the lack of willing sellers who have owned the property for several years and have seen good cash flow due to rent increases. Lack of willing sellers can also be traced to the changes in tax laws within the last three years. Sales used were out of the subject's neighborhood boundaries. No sales of any newer units in the previous twelve months were found within the subject's immediate neighborhood. Sale #1 is located further out on the west side of Yakima, superior to the subject area. The units are older than subject with the overall building area being larger than subject. Sales #2 & #3 is also outside the subject's search parameters. Sale #3 is much smaller in size, similar in quality, but also an older set of units. Sale #3 is slightly smaller in size. This particular neighborhood has a mixture of owner occupied residents with duplexes and rental homes within the neighborhood. After a review of all the sales data, the selected sales are considered to be the best available to lead to a reasonable indication of value. The overall adjustment process appears reasonable and in line for the limited sales data. A fairly narrow range of adjusted value is established and when combined with the subject's sales price, supports a market value estimate of $125,000. COMMENTS ON INCOME APPROACH The gross rent multiplier is based upon the actions of buyers & sellers in the open market. The expense and vacancy ratios for the comparable sales is similar to that of subject. COMMENTS ON CONDITION OF APPRAISAL This appraisal report has been completed with the subject in "As Is" conditon. No personal property included in this valuation. All freestanding appliances are considered personal property and are not included in this valuation. The function of this report is for loan underwriting purposes and has been prepared specifically for CITY OF YAKIMA (ONDS). It may not be used or relied upon by any person or entity. Any person or entity who uses or relies upon any information in this report, without the preparer's written consent, does so at his own risk. Neither all nor any part of the contents of this report shall be conveyed to any person or entity, other Designed by United Systems Software (800) 969-8727 File No. 010006A Page #9 than the appraiser's or firm's client, through advertising, solicitation materials, public relations, news, sales, or other media without the written consent and approval of the authors, particularly as to valuation conclusions, the identity of the appraiser or firm with which the appraiser is connected. Further, the appraiser or firm assumes no obligation, liability, or accountability to any third party. If this report is placed in the hands of anyone but the client, client shall make such party aware of all the assumptions and limiting conditions of the assignment. This appraisal report is incomplete and cannot be relied upon without the cover letter. This appraisal is not to be represented or assumed to be a building inspection. If user wishes that type of analysis, a qualified building inspector should be contacted and particular attention should be given to plumbing, electrical, heating/cooling system, roof, foundation and other structural components. Unless otherwise stated in this report, the appraiser has no knowledge of the existence of hazardous substances, including without limitation to asbestos, polychlorinated biphenyls, petroleum leakage, or agricultural chemicals which may or may not be present on the property, or of other environmental conditions which were not called to the attention of nor did the appraiser become aware of during the inspection of the subject property. The appraiser, however, is not qualified to test such substances or conditions. The presence of substances such as asbestos, urea formaldehyde foam insulation, or other hazardous substances or environmental conditions may effect the value of the property. The value estimated is predicated on the assumption that there is no such condition on or in the property or in such proximity thereto that it would cause a loss in value. No responsibility is assumed for any such condition, nor for any expertise or engineering knowledge required to discover them. The subject property was physically inspected on 10-18-01, which is the effective date of the appraisal. The appraiser is not aware of or been advised of any detrimental conditions (physical, functional, external) to the subject property and/or local market area. The market value estimated at the conclusion of this appraisal is predicated on the assumption that the subject property meets same conditions as originally noted during inspection and on the completion date of 11-07-01. This is a typical residential form appraisal, generally accepted as a Summary Appraisal Report. COMMENTS ON FINAL RECONCILIATION The Cost Approach will generally result in an excellent estimate of value for newly constructed improvement as no estimate of depreciation is required. The Income Approach finds a range of GRM as well as actual rents. There is potential error in estimating the correct GRM and market rent for each unit. The subject property is purchased based on its potential income stream, with error factors being minor, using the Income Approach to obtain value is considered a reliable indication of value. The Sales Comparison Approach offers a good indication of value. Although there is very limited data the properties reflect the attitudes of buyers and sellers in recent market conditions. All the sales reflect normal and typical adjustments for all differences. Greatest weighting is place on both the Market Comparison Approach and the Income Approach as they depict current market conditions and purchasers attitudes for investment properties. The Cost Approach, which tends to set the upper limit of value, gives supportive value. File No. 010006A Page #10 Operating Income Statement File No. 010006A One- to Four -Family Investment Property and Two- to Four -Family Owner -Occupied Property Property Address Street 211 S. 4TH ST. A -D City YAKIMA State WA Zip Code 98901 General Instructions: This form is to be prepared jointly by the loan applicant, the appraiser, and the lender's underwriter. The applicant must complete the following schedule indicating each unit's rental status, lease expiration date, current rent, market rent, and the responsibilty for utility expenses. Rental figures must be based on the rent for an "unfurnished" unit. The applicant should complete all of the income and expense projections and for existingproperties provide actual year-end operating statements for the past two years (for new properties, the applicant's projected income and expenses must be provided). This Operating Income Statement, and any previous operating statements the applicant provides, must then be sent to the appraiser for review, comment, and/or adjustments next to the applicant's figures (e.g., Applicant/Appraiser 288/300). If the appraiser is retained to complete the form instead of the applicant, the lender must provide to the appraiser the aforementioned operating statements, mortgage insurance premium, HOA dues, leasehold payments, subordinate financing, and/or any other relevant information as to the income and expenses of the subject property received from the applicant to substantiate the projections. The underwriter should carefully review the applicant's/appraiser's projections and the appraiser's comments concerning those projections. The underwriter should make any final adjustments that are necessary to more accurately reflect any income or expense items that appear unreasonable for the market. (Real estate taxes and insurance on these types of properties are included in PITI and not calculated as an annual expense item.) Income should be based on current rents, but should not exceed market rents. When there are no current rents because the property is proposed, new, or currently vacant, market rents should be used. Annual Income and Expense Projection for Next 12 Months Currently Expiration Current Rent Market Rent Paid Paid Income (Do not include income for owner -occupied units) Rented Date Per Month Per Month Utility Expenses By Owner By Tenant Unit No. i Yes X No mo to mo _. $ 500.00_ _ _ $ 500.00._...______. Electricity .......... X• Unit No. 2 Yes X No mo to mo $ .500.00 _ $ 500,00 Gas ..... ..... A Unit No. 3 Yes X No mo tomo $ .300.00 _ $ 325.00 _ Fuel Oil ........... Unit No. 4 Yes X No mo to mo _ .__. _ $ 525.00 _ _ $ 525.00.------ Fuel Other i ! Total $ 1825.00 $ 185.0.00._ ._ _._ Water/Sewer Trash Removal X J. - The applicant should complete all of the income and expense projections and for existingproperties provide actual year-end operating statements for the past two years (for new properties, the applicant's projected income and expenses must be provided). This Operating Income Statement, and any previous operating statements the applicant provides, must then be sent to the appraiser for review, comment, and/or adjustments next to the applicant's figures (e.g., Applicant/Appraiser 288/300). If the appraiser is retained to complete the form instead of the applicant, the lender must provide to the appraiser the aforementioned operating statements, mortgage insurance premium, HOA dues, leasehold payments, subordinate financing, and/or any other relevant information as to the income and expenses of the subject property received from the applicant to substantiate the projections. The underwriter should carefully review the applicant's/appraiser's projections and the appraiser's comments concerning those projections. The underwriter should make any final adjustments that are necessary to more accurately reflect any income or expense items that appear unreasonable for the market. (Real estate taxes and insurance on these types of properties are included in PITI and not calculated as an annual expense item.) Income should be based on current rents, but should not exceed market rents. When there are no current rents because the property is proposed, new, or currently vacant, market rents should be used. Annual Income and Expense Projection for Next 12 Months Adjustments by Income (Do not include income for owner -occupied units) By Applicant/Appraiser Lender's Underwriter Gross Annual Rental (from unit(s) to be rented) ......... .... $ 22200 $ _._._. Other Income (include sources) . .. + + Total ...... .... ...... $ _ 22200- - - $ 0 ...... . ............ .. Less Vacancy/Rent Loss .. . .... I ..... I .... , .. ..... - .1.11.0. __ ___ ___ (5.00 %) - 0 _ ( %) Effective Gross Income . ......................... ....... $ 21090- _._ $ 0 Expenses (Do not include expenses for owner -occupied units) Electricity ... .................. .. ..... ..... ...... Gas. ................... ...................... ..... FuelOil ............................... ............. Fuel .......... .............. (Type- Water/Sewer ....... ..... ............. . ..... ... ..... Trash Removal .................... . .......... ....... ... Pest Control ............................................. Other Taxes or Licenses ............ .......... ......... . Casual Labor ............ .... ........... . ....... .... This includes the costs for public area cleaning, snow removal, etc., even though the applicant may not elect to contract for such services. Interior Paint/Decorating .... .......... . . ...... ........... This includes the costs of contract labor and materials that are required to maintain the interiors of the living units. General Repairs/Maintenance .... ........ . .... .. ...... This includes the costs of contract labor and materials that are required to maintain the public corridors, stairways, roofs, mechanical systems, grounds, etc. Management Expenses ..... .... These are the customary expenses that a professional management company would charge to manage the property. Supplies ... .... . ... . , . This includes the costs of items like light bulbs, janitorial supplies, etc. Total Replacement Reserves - See Schedule on Pg. 2 ...... ... Miscellaneous ...... ......... . .. ....... .... ... Total Operating Expenses ...I .......................... 1403. - .- - -- -- ---- - --- - ----- -- - --- - - - - - - Freddie Mar, Designed by United Systems Software (800) 969-8727 Fannie Mae Foi in 998 Aug 88 Page 1 of 2 Form 216 Aug 88 File No. 010006A Page #11 Replacement Reserve Schedule Adequate replacement reserves must be calculated regardless of whether actual reserves are rovided for on the owner's operating statements or are customary in the local market. This represents the total average yearly reserves. GeneralPy, all equipment and components that have a remaining life of more than one year -- such as refrigerators, stoves, clothes washers/dryers, trash compactors, furnaces, roofs, and carpeting, etc. -- should be expensed on a replacement cost basis. Equipment Replacement Remaining By Applicant/ Lender Cost Life Appraiser Adjustments Stoves/Ranges ..... @ $ 300 ea. - 10_. Yrs. X _ _ 4 Units = $ .120 __.__._. Refrigerators ...... @ $ 350 ea. _ 10_. Yrs. X 4 Units = $ .140_$ -- --- _.._. ------ - ----- Dishwashers ...... a $ 250 _ ea. = 10 Yrs. X 4 Units = $ 100 _ A/C Units ........ @ $ 250 ea. - .10 Yrs. X _4 Units = $ 100 __ $ C Washer/Dryers ... @ $ 800 ea. - .15. Yrs. X _. _. 4 Units = $ 213._ $ HW Heaters @ $ 300 -- ea._ 10. Yrs. X 4 Units = $ 120_ $ _ Furnace(s) ........ @ $ ea. _ Yrs. X Units = $ _. _ $ (Other) ... .... @ $ _ ea. _ Yrs. X Units = $ _ _ $ Roof .. ........ @ $ 7500 ._ _. ea. _ 30 Yrs. X One Bldg. _ $ 250 ........ . _ Remaining Carpeting (Wall to Wall) Life (Units) 225 Total Sq. Yds. @ $ 16.0 Per Sq. Yd. _ 10 _ Yrs. _ $ 360 ._. $ (Public Areas) Total Sq. Yds. @ $ Per Sq. Yd. - Yrs. _ $ — - - $ - Total Replacement Reserves. (Enter on Pg. 1) $ 1403 __ ._ $ Operating Income Reconciliation $ 21090 — $ 1403 = $ 19687 _ .__. - 12 = $_1640.58 - Effective _1.640.58_.Effective Gross Income Total Operating Expenses Operating income Monthly Operating Income $ 1641 — $ _ $ _.._ Monthly Operating Income Monthly Housing Expense Net Cash Flow (Note: Monthly Housing Expense includes principal and interest on the mortgage, hazard insurance premiums, real estate taxes, mortgage insurance premiums, HOA dues, leasehold payments, and subordinate financing payments.) Underwriter's instructions for 2-4 Family Owner -Occupied Properties If Monthly Operating Income is a positive number, enter as "Net Rental Income" in the "Gross Monthly Income" section of Freddie Mac Form 65/Fannie Mae Form 1003. If Monthly Operating Income is a negative number, it must be included as a liability for qualification purposes. " The borrower's monthly housing expense -to -income ratio must be calculated by comparing the total Monthly Housing Expense for the subject property to the borrower's stable monthly income. Underwriter's instructions for 1-4 Family Investment Properties If Net Cash Flow is a positive number, enter as "Net Rental Income" in the "Gross Monthly Income" section of Freddie Mac Form 65/Fannie Mae Form 1003. If Net Cash Flow is a negative number, it must be included as a liability for qualification purposes. The borrower's monthly housing expense -to -income ratio must be calculated by comparing the total monthly housing expense for the borrower's primary residence to the borrower's stable monthly income. Appraiser's Comments (Including sources for data and rationale for e, rojections) Due to lack of housing in the Yakima area, rents have been increasing over the past few years Acc rding to local r altors, property managers and landlords, most have waiting list upon vacancy. Th onl vacancy tim is f r clean up purposes. JOHN F. TIMM, IFAS _ _____._ _ 01-09-01 Appraiser Name rais i lure Date Underwriter's Comments and Rationale for Adjustments Underwriter Name Underwriter Signature Date Freddie Mar, Designed by United Systems Software (800) 969-8727 Fannie Mae Foran 998 Aug 88 Page 2 of 2 Form 216 Aug 80 SKETCH/AREA TABLE ADDENDUM File No: 010006 S Borrower/Client U CITY OF YAKIMA B Property Address 24.0 I � 211 S. 4TH ST. E City County State Zip Code C YAKIMA YAKIMA WA 98901 TLender 1.00 19' 10' CITY OF YAKIMA LIVING AREA CALCULATIONS Breakdown Subtotals O 16.00 MAIN LEVEL UPPER LEVEL 96.00 8.50 24.0 I � 17 ME i 4 UNIT "C' � 20.00 140.00 1.00 19' 10' 20 R 16.00 15.51 19.00 0 3038 E 18.00 V 4' 34� 52.00 E 8.00 A 12.00 M,, El 1962.00 X 12.00 N 24.50 UNIT "B" 14.00 T 1076.00 16, 12' "D" 12' UNIT S 13.00 X 28.00 364.00 61 X 4.00 5 1.00 �-• 1 J 6.00 K , X 9.00 E 9.00 X 8.00 T 1.00 X 72.50 C UNIT "X' H 20 20 is 375 17 SCALE: 1 inch = 12 feet LIVING AREA CALCULATIONS Breakdown Subtotals O 16.00 X 6.00 96.00 8.50 AREA CALCULATIONS SUMMARY 24.00 A 7.00 Area Name of Area Size Totals 20.00 140.00 1.00 GLA1 UNIT A 858.00 6.00 6.00 16.00 R 19.00 LIVABLE (rounded) 3038 E 18.00 UNIT C 388.00 17.00 X 52.00 884.00 8.00 A 12.00 UNIT B 716.00 1962.00 X 12.00 96.00 24.50 C 14.00 GLA2 UNIT D 1076.00 1076.00 X 5.00 45.00 13.00 X 28.00 364.00 15.50 X 4.00 62.00 1.00 A 6.00 6.00 15.50 X 9.00 139.50 9.00 X 8.00 72.00 1.00 X 72.50 72.50 L 3038 C U L A T I N u TOTAL WF_S1 ERM APPRAISERS APEX SOFTWARE, INC. 1 (210) 699-6666 APEX II Form 2739 LIVING AREA CALCULATIONS Breakdown Subtotals O 16.00 X 6.00 96.00 8.50 X 24.00 204.00 7.00 X 20.00 140.00 1.00 X 6.00 6.00 16.00 X 19.00 LIVABLE (rounded) 3038 LIVING AREA CALCULATIONS Breakdown Subtotals O 16.00 X 6.00 96.00 8.50 X 24.00 204.00 7.00 X 20.00 140.00 1.00 X 6.00 6.00 16.00 X 19.00 304.00 6.00 X 18.00 108.00 17.00 X 52.00 884.00 8.00 X 12.00 96.00 8.00 X 12.00 96.00 24.50 X 14.00 343.00 9.00 X 5.00 45.00 13.00 X 28.00 364.00 15.50 X 4.00 62.00 1.00 X 6.00 6.00 15.50 X 9.00 139.50 9.00 X 8.00 72.00 1.00 X 72.50 72.50 3038 SKETCH/AREA TABLE ADDENDUM File Nn- 010006 IS Borrower/Client U CITY OF YAKIMA B Property Address 1 211 S. 4TH ST. E -- City County State Zip Code C YAKIMA YAKIMA WA 98901 Tender 686.00 1962.00 CITY OF YAKIMA M P R 0 V E M E N T S �K E T C H MAN LEVEL UNIT "C" KI TCHEN BEDR BE LIVING ROOM _j BATH LIVING ROOM KITCHEN BEDROOM BAT KITCHEN DI NI NG LIVING BEDROOM ROOM BATH BATH UNIT "A" UNIT "B" UPPED LEVEL LIVING ROOM "D" BEDROOM KITCHEN DINING BATH SCALE: 1 inch = 12 feet AREA Area CALCULATIONS Name of Area SUMMARY Size Totals GLA1 UNIT A 858.00 X 24.00 A 418.00 X 20.00 UNIT B 686.00 1962.00 GLA2 UNIT D 1076.00 R TOTAL LIVABLE (rounded) 3038 E 18.00 108.00 17.00 X 52.00 884.00 8.00 X 12.00 96.00 8.00 X 12.00 96.00 27.50 A 10.00 275.00 24.50 X 4.00 98.00 9.00 X 5.00 45.00 10.00 X 32.00 320.00 3.00 C 22.00 66.00 15.50 X 4.00 62.00 1.00 X 6.00 6.00 1.00 X 232.00 232.00 A 3038 I_ C u I_ A T C� N i WESTERN APPRAISERS APEX SOFTWARE, INC. 1 (M) 699-6666 APEX II Form 2739 AREA Area CALCULATIONS Name of Area SUMMARY Size Totals GLA1 UNIT A 858.00 X 24.00 UNIT C 418.00 X 20.00 UNIT B 686.00 1962.00 GLA2 UNIT D 1076.00 1076.00 TOTAL LIVABLE (rounded) 3038 LIVING AREA CALCULATIONS Breakdown Subtotals 16.00 X 6.00 96.00 8.50 X 24.00 204.00 7.00 X 20.00 140.00 1.00 X 6.00 6.00 16.00 X 19.00 304.00 6.00 X 18.00 108.00 17.00 X 52.00 884.00 8.00 X 12.00 96.00 8.00 X 12.00 96.00 27.50 X 10.00 275.00 24.50 X 4.00 98.00 9.00 X 5.00 45.00 10.00 X 32.00 320.00 3.00 X 22.00 66.00 15.50 X 4.00 62.00 1.00 X 6.00 6.00 1.00 X 232.00 232.00 3038 File No. 010006A Paae #11 SUBJECT PHOTOGRAPH ADDENDUM Borrower/Client: CITY QF YAKIMA UN1�8) _ Address: 211 S. 4TH ST. A -D City: YAKIMA_ County: YAKIMA State: WA Zip Code: 98901 Lender/Client: CITY OF YAKIMA (ANDS Front View Rear View Street View This form was reproduced by United Systems Software Company (800) 969-8727 File No. 010006A P qe #13 Borrower/Client CITY OF YAKIMA (ONDS)--.- City YAKIMA County YAKIMA.- State WA Zip Code 98901..--- Lender/Client CITY OF YAKIMA (ONDS)_ ~ � — ' -- --- -- File No. 010006A Page #14 LOCATION MAP File No. 010006A Borrower/Client CITY OF YAKIMA (ONDS) Address 211 S. 4TH ST. A -D City YAKIMA County YAKIMA State WA- Zip Code 98901 _ Lender/Client CITY OF YAKIMA (ONDS) _. Scale: 7.9.1 milesJr---�--`:��....j...m. —�. ✓t f '' \�JA I Sub ect Radius: 3.89 miles t r en ii za , .r li . 111 C� n' l; Raaa ` , Ear. • { , We as $eltrll \ ' Heights Avt t Y (Yf 'J ^ t � � � Fr � i vala ...._ .K �„"....-'•" 12 . 1'Y -.� L." (}�`�-- i •,. �--.. _, ......� is �..L��,...- � ,- j .. _....-`. - -'t Al , 91 ._ i LIJ - ... ........._..........r... r..,..-. _ �'Cl,; Subject - Com arable 3 i l� 1 tt 211 S. 4TH ST. A -D ......r.,t < ,� a: Hai jlatc ., [�.. 2205 SUMMITVIEW AYE.: ' V ( 1. i, , LtL� •, _ -.... . . LJ,.1...-, r � _ � ` C��'t.:., tom). �. ��i.._ ' � Y ��-•.�_ Comparable'I 906 S. 42ND AVE... , ........... r r•r. , ;. .. , L� _1..1..1... Com arable 2 3 p 4'1'15 S. 2ND ST. .. f , 9T I .,•.,,;y .rte` , 'tf,P,. a�:. .•., ir. . Y• , Designed 6y United Systems Software Company (800) 969-8727 - -- ------ File No. 010006A Pae #14 COMPARABLE PHOTOGRAPH ADDENDUM Borrower/Client: CITY OF YAICIMA (QN�$� Address: 211 S. 4TH ST. A -D City: YAKIMA County: YAKIMA State: WA Zip Code: 98901 Lender/Client: CITY OF YAKIMA (ONDS) Sales Comparable 1 Front View Address: 906 S, 42ND AVE. Prox. to Subject: 3.5 MILES Sales Price: $ 145000 Gross Living Area: 3648.00 Total Rooms: 16 Total Bedrooms: 8 Total Bathrooms: 4.00 Location: URBAN+ Sales Comparable 2 Front View Address: 4115 S. 2ND ST. Prox. to Subject: 2.5 MILES Sales Price: $ 115000 Gross Living Area: 2752.00 Total Rooms: 15 Total Bedrooms: 9 Total Bathrooms: 3.00 Location: URBAN+ Sales Comparable 3 Front View Address: 2205 SUMMITVIEW AVE. Prox. to Subject: 1.5 MILES Sales Price: $ 139000 Gross Living Area: 2259.00 Total Rooms: 15 Total Bedrooms: 7 Total Bathrooms: 4.00 Location: URBAN This form was reproduced by United Systems Software Company (800)969-8727 File No. 010006A Page #16 - MULTI -PURPOSE SUPPLEMENTAL ADDENDUM 010006A FOR FEDERALLY RELATED TRANSACTIONS (FIRREA) File No. Borrower/Client CITY OF YAKIMA (ONDS) Property Address 211 S. 4TH ST. A -D City YAKIMA County YAKIMA _. _ State WA Zip Code 98901 Lender CITY OF YAKIMA (ONDS) This Multi -Purpose Supplemental Addendum for Federally Related Transactions was designed to provide the appraiser with a convenient way to comply with current appraisal standards and requirements of the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of Currency (OCC), the Office of Thrift Supervision (OTS), the Resolution Trust Corporation (RTC) and the Federal Reserve. This Multi -Purpose Supplemental Addendum is for use with any appraisal. Only those statements which have been checked by the appraiser apply to the property being appraised. The purpose of the appraisal is to estimate the market value of the subject property as defined herein. The function of the appraisal is to assist the above-named Lender in evaluating the subject property for lending purposes. This is a Federally related transaction. -`x; The appraisal is based on the information gathered by the appraiser from public records, other identified sources, inspection of the subject property and neighborhood, and selection of comparable sales within the subject market area. The original source of the comparables is shown in the Data Source section of the market grid along with the source of confirmation, if available. The original source is presented first. The sources and data are considered reliable. When conflicting information was provided, the source deemed most reliable has been used. Data believed to be unreliable was not included in the report nor used as a basis for the value conclusion. X The Reproduction Cost is based on Marshall & Swift Residential Cost Handbook_ supplemented by the appraiser's knowledge of the local market. Physical depreciation is based on the estimated effective age of the subject property. Functional and/or external depreciation, if present, is specifically addressed in the appraisal report or other addenda. In estimating the site value, the appraiser has relied on personal knowledge of the local market. This knowledge is based on prior and/or current analysis of site sales and/or abstraction of site values from sales of improved properties. The subject property is located in an area of primarily owner -occupied single family residences and the Income Approach is not considered to be meaningful. For this reason, the Income Approach was not used. The Estimated Market Rent and Gross Rent Multiplier utilized in the Income Approach are based on the appraiser's knowledge of the subject market area. The rental knowledge is based on prior and/or current rental rate surveys of residential properties. The Gross Rent Multiplier is based on prior and/or current analysis of prices and market rates for residential properties. X' For income producing properties, actual rents, vacancies and expenses have been reported and analyzed. They have been used to project future rents, vacancies and expenses. According to Owner & Multiple Listing Service the subject property: has not been offered for sale in the past - 12 months or years. is currently offered for sale for $ was offered for sale within the past months or years. Offering information was considered in the final reconciliation of value. Offering information was not considered in the final reconciliation of value. Offering information was not available. The reasons for unavailability and the steps taken by the appraiser are explained later in this addendum. According to County Records has not transferred in the past 12 months or has transferred in the past months or All prior sales which have occurred in the past either in the body of the report or in the addenda. Date Sales Price Document # - years. years. months or Seller the subject property: years are listed below and reconciled to the appraised value, i,. The subject property is not located in a FEMA Special Flood Hazard Area. i Tile subject property is located in a FEMA Special Flood Hazard Area. Zone FEMA Map/Panel # Map Date Name of Community C 530311 0007 B 03-02-98.. The community does not participate in the National Flood Insurance Program. The community does participate in the National Flood Insurance Program. i It is covered by a regular program. It is covered by an emergency program. Revision 12/92 This form was reproduced by United Systems Software Company (800) 969-8727 Buyer -- - i i File No. 010006A Page #17 Pile No. 990695 CURRENT SALES 1 The subject property is currently not under contract. The contract and/or escrow instructions were not available for review. The unavailability of the contract is explained later in the addenda section. The contract and/or escrow instructions were reviewed. The following summarizes the contract: Contract Date Amendment Date Contract Price Seller The contract indicated that personal property was not Included in the sale. The contract indicated that personal property was included. It consisted of Estimated contributory value is $ Personal property was not included in the final value estimate. Personal property was included in the final value estimate. The contract indicated no financing concessions or other incentives. The contract indicated the following concessions or incentives: If concessions or incentives exist, the comparables were checked for similar concessions and appropriate adjustments were made, if applicable, so that the final value conclusion is in compliance with the Market Value defined herein. OVERVIEWMARKET Include an explanation 4 months is considered a reasonable marketing period for the subject property based on Multiple Listing Service. ADDITIONAL CERTIFICATI The Appraiser certifies and agrees that: (1) Their analyses, opinions and conclusions were developed, and this report was prepared, in conformity with the Uniform Standards of Professional Appraisal Practice ("USPAP"), and in accordance with the regulations developed by the Lender's Federal Regulatory Agency as required by FIRREA, except that the Departure Provisions of the USPAP do not apply. (2) Their compensation is not contingent upon the reporting of predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event. (3) This appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan. ADDITIONAL ICONDITIONS The value estimated is based on the assumption that the property is not negatively affected by the existence of hazardous substances or detrimental environmental conditions unless otherwise stated in this report. The appraiser is not an expert in the identification of hazardous substances or detrimental environmental conditions. The appraiser's routine inspection of and inquiries about the subject property did not develop any information that indicated any apparent significant hazardous substances or detrimental environmental conditions which would affect the property negatively unless otherwise stated in this report. It is possible that tests and inspections made by a qualified hazardous substance and environmental expert would reveal the existence of hazardous substances or detrimental environmental conditions on or around the property that would negatively affect its value. ADDITIONAL 1 A• 1 i Appraiser's Signature ___ __ Effective Date 01-09-(11. Date Prepared 11-07.01 Appraiser's Name (print) 30H F.MM,i FAS "'--`��,. _ Phone # (.509 ) 248-2609.-._ _ - State WAi ' License i Residential Certification i Certification # 1700335 Tax ID # CO-SIGNINGAPPRAISER'S CERTIFICATION The co-signing has personally inspected the subject property, both inside and out, and has made an exterior inspection of all comparable sales listed in the report. The report was prepared by the appraiser under direct supervision of the co-signing appraiser. The co-signing appraiser accepts responsibility for the contents of the report including the value conclusions and the limiting conditions, and confirms that the certifications apply fully to the co-signing appraiser. The co-signing appraiser has not personally inspected the interior of the subject property and: i has not inspected the exterior of the subject property and all comparable sales listed in the report. has inspected the exterior of the subject property and all comparable sales listed in the report. The report was prepared by the appraiser under direct supervision of the co-signing appraiser. The co-signing appraiser accepts responsibility for the contents of the report, including the value conclusions and the limiting conditions, and confirms that the certifications apply fully to the co-signing appraiser with the exception of the certification regarding physical inspections. The above describes the level of inspection performed by the co-signing appraiser. i i The co-signing appraiser's level of inspection, involvement in the appraisal process and certification are covered elsewhere in the addenda section of this appraisal. j APPRAISER'S SIGNATURE Appraiser's Signature Trainee _.i Review Other Appraiser's Narne (print) SS# ._ _ _ - State License ) Residential Certification Certification # Revision 12792 This form was reproduced by United Systems Software Company (800) 969-8727 File No. 010006A _ Page # 18 File No. 010006A DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from selle r to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he considers his own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions" granted by anyone associated with the sale. *Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments are necessary for those costs which are normally paid by sellers as a result of tradition or law in a market area; these costs are readily identifiable since the seller pays these costs in virtually all sales transactions. Special or creative financing adjustments can be made to the comparable property by comparisons to financing terms offered by a third party institutional lender that is not already involved in the property or transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession, but the dollar amount of any adjustment should approximate the market's reaction to the financing or concessions based on the appraiser's judgement. STATEMENT OF LIMITING CONDITIONS AND APPRAISER'S CERTIFICATION CONTINGENT AND LIMITING CONDITIONS: The appraiser's certification that appears in the appraisal report is subject to the following conditions: 1. The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title to it. The appraiser assumes that the title is good and marketable and, therefore, will not render any opinions about the title. The property is appraised on the basis of it being under responsible ownership. 2. The appraiser has provided a sketch in the appraisal report to show approximate dimensions of the improvements and the sketch is included only to assist the reader of the report in visualizing the property and understanding the appraiser's determination of its size 3 The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted in the appraisal report whether the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, expressed or implied, regarding this determination. 4. The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific arrangements to do so have been made beforehand. 5. The appraiser has estimated the value of the land in the cost approach at its highest and best use and the improvements at their contributory value. These separate valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are so used. 6. The appraiser has noted in the appraisal report any adverse conditions (such as, needed repairs, depreciation, the present of hazardous wastes, toxic substances, etc.) observed during the inspection of the subject property or that he or she became aware of during the normal research involved in performing the appraisal. Unless otherwise stated in the appraisal report, the appraiser has no knowledge of any hidden or unapparent conditions of the property or adverse environmental conditions (including the presence of hazardous wastes, toric substances, etc.) that would make the property more or less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, expressed or implied, regarding the condition of the property. The appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because the appraiser is not an expert in the field of environmental hazards, the appraisal report must not be considered as an environmental assessment of the property. 7. The appraiser obtained the information, estimates, and opinions that were expressed in the appraisal report from sources that he or she considers to be reliable and believes them to be true and correct. The appraiser does not assume responsibility for the accuracy of such items that were furnished by other parties. 8. The appraiser will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice. 9 The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, repairs, or alterations on the assumption that completion of the improvements will be performed in a workmanlike manner. 10. The appraiser must provide his or her prior written consent before the lender/client specified in the appraisal report can distribute the appraisal report (including conclusions about the property value, the appraiser's identity and professional designations, and references to any professional appraisal organizations or the firm with which the appraiser is associated) to anyone other than the borrower; the mortgagee or its successors and assigns; the mortgage insurer, consultants; professional appraisal organizations; any state or federally approved financial institution; or any department, agency, or instrumentality of the United States or any state or the District of Columbia; except that the lender/client may distribute the property description section of the report only to data collection or reporting service(s) without having to obtain the appraiser's prior written consent. The appraiser's written consent and approval must also be obtained before the appraisal can be conveyed by anyone to the public through advertising, public relations, news, sales, or other media. Freddie Mac Form 439 6-93 Page i of 2 Fannie Mae Form 10048 6-93 This form was reproduced by United Systems Software Company (800) 969-8727 File No. 010006A Page # 19 File No. APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that: 1 I have researched the subject market area and have selected a minimum of three recent sales of properties most similar and proximate to the subject property for consideration in the sales comparison analysis and have made a dollar adjustment when appropriate to reflect the market reaction to those items of significant variation. If a significant item in a comparable property is superior to, or more favorable than, the subject property, I have made a negative adjustment to reduce the adjusted sales price of the comparable and, if a significant item in a comparable property is inferior to, or less favorable than the subject, I have made a positive adjustment to increase the adjusted sales price of the comparable. 2. 1 have taken into consideration the factors that have an impact on value in my development of the estimate of market value in the appraisal report. I have not knowingly withheld any significant information from the appraisal report and I believe, to the best of my knowledge, that all statements and information in the appraisal report are true and correct. 3 1 stated, in the appraisal report, only my own personal, unbiased, and professional analysis, opinions, and conclusions, which are subject only to the contingent and limiting conditions specified in this form. 4 1 have no present or prospective interest in the properly that is the subject of this report, and I have no present or prospective personal interest or bias with respect to the participants in the transaction. I dict not base, either partially or completely, my analysis and/or the estimate of market value in the appraisal report on the race, color, religion, sex, handicap, familial status, or national origin of either the prospective owners or occupants of the subject property or of the present owners or occupants of the properties in the vicinity of the subject property. 5. 1 have no present or contemplated future interest in the subject property, and neither my current or future employment nor my compensation for performing this appraisal is contingent on the appraised value of the property. 6 1 was not required to report a predetermined value or direction in value that favors the cause of the client or any related party, the amount of the value estimate, the attainment of a specific result, or the occurrence of a subsequent event in order to receive my compensation and/or employment for performing the appraisal. I did not base the appraisal report on a requested minimum valuation, a specific valuation, or the need to approve a specific mortgage loan. 7. 1 performed this appraisal in conformity with the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place as of the effective date of this appraisal, with the exception of the departure provision of those Standards, which does not apply. I acknowledge that an estimate of a reasonable lime for exposure in the open market is a condition in the definition of market value and the estimate I developed is consistent with the marketing time noted in the neighborhood section of this report, unless I have otherwise stated in the reconciliation section 8. 1 have personally inspected the interior and exterior areas of the subject property and the exterior of all properties listed as comparables in the appraisal report. I further certify that I have noted any apparent or known adverse conditions in the subject improvements, on the subject site, or on any site within the immediate vicinity of the subject property of which I am aware and have made adjustments for these adverse conditions in my analysis of the property value to the extent that I had market evidence to support them. I have also commented about the effect of the adverse conditions on the marketability of the subject property 9. 1 personally prepared all conclusions and opinions about the real estate that were set forth in the appraisal report. If I relied on significant professional assistance from any individual or individuals in the performance of the appraisal or the preparation of the appraisal report, I have named such individuals) and disclosed the specific tasks performed by them in the reconciliation section of this appraisal report. I certify that any individual so named is qualified to perform the tasks. I have not authorized anyone to make a change to any item in the report; therefore, if an unauthorized change is made to the appraisal report, I will take no responsibility for it SUPERVISORY APPRAISER'S CERTIFICATION: If a supervisory appraiser signed the appraisal report, he or she certifies and agrees that: I directly supervise the appraiser who prepared the appraisal report, have reviewed the appraisal report, agree with the statements and conclusions of the appraiser, agree to be bound by the appraiser's certification numbered 4 through 7 above, and am taking full responsibility for the appraisal and the appraisal report. ADDRESS OF PROPERTY APPRAISED: APPRAISER: Signature: / z Name- JOHN F,: T MM, IFAS Date Signed- 41-07-01 State Certification # 1700335 or Slatekicense It- State- , Expiration Date of Certification or License: 211 S. 4TH ST., YAKIMA, WA 98901 SUPERVISORY APPRAISER: (only if required) Signature - Name: Date Signed, State Certification #: or State License #: State: Expiration Date of Certification or License: Did Did Not Inspect Property I mr141e Mar, Form 4111 6 q3 Page 2 of 2 Fannie Mae Form 10048 6-93 1his form was reproduced by United Syslerns Sollware Company (800)969-8727 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. • - J 0 For Meeting of: December 18, 2001 ITEM TITLE: South 9t` Street Development Final Parcel Acquisition SUBMITTED BY: William Cook, Director of Community and Economic Development CONTACT PERSON/TELEPHONE: William Cobabe, Neighborhood Development Services, Manager (575-6101) SUMMARY EXPLANATION: Nearly two years ago, the Office of Neighborhood Development Services acquired a four-plex through foreclosure. At the instruction of the City Council Neighborhood Development Subcommittee, we kept this property in our portfolio. At this time we have the opportunity to exchange the four-plex for a tri-plex belonging to Clay Withrow, which is adjacent to our South 9t' Street Subdivision. This final parcel (see map) will allow us to build several new homes and have a powerful impact on the neighborhood. The appraised value of the two parcels is close enough (see appraisal summary) that we recommend a straight exchange. Resolution X Ordinance Contract Other Specify Funding Source- !�`® APPROVAL FOR SUBMITTAL - City Manager STAFF RECOMMENDATION: Approve Exchange of Properties. BOARD/COMMISSION RECOMMENDATION: COUNCIL ACTION: Resolution adopted. RESOLUTION NO. R-2001-176