A3656

An Act concerning property appraisals following natural disasters and supplementing chapter 9 of Appendix A.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Except as otherwise provided under federal law, whenever a government entity, or other party commissioned by or contracting with a government entity, undertakes an appraisal to value property that was damaged or destroyed by a natural disaster, for which a state of emergency has been declared by the Governor, in order to determine eligibility or an offer amount for acquisition as a Blue Acres project, or home elevation project, the property owner shall have the right to access the property appraisal, and shall also have the right to challenge the appraisal, and any monetary offer in connection with the home elevation or acquisition. Under such circumstances, the property owner, along with the owner’s agents and consultants, shall also have the following rights:

a. The opportunity to accompany the appraiser during inspection of the property;

b. The right to provide to the appraiser any information related to the valuation of the property;

c. The right to obtain a signed statement from the appraiser stating that the additional information provided through subsection b. of this section has been considered in the appraisal process;

d. A period of at least 60 calendar days from receipt of an appraisal or monetary offer to review the appraisal or offer, seek any clarifications, and file an appeal if necessary;

e. The opportunity to hire a State licensed real estate appraiser or certified general or residential real estate appraiser to conduct an appraisal of the property, and to hire an adjuster licensed pursuant to the “Public Adjusters' Licensing Act,” P.L.1993, c.66 (C.17:22B-1 et al.) to conduct an adjustment of the property; and

f. The right to obtain a written response to any appeal of an appraisal or monetary offer, explaining why any changes have or have not been made to the valuation or offer.

2. On or before the first day of the fourth month next following enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), the Commissioner of Community Affairs, in accordance with the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), and in consultation with the Commissioner of Banking and Insurance, shall adopt and promulgate such rules and regulations as may be necessary for the implementation of this act.

3. This act shall take effect on the first day of the fourth month next following enactment.

STATEMENT

This bill establishes certain rights related to property appraisals following natural disasters whenever the appraisals are undertaken by a government entity or other party contracting with a government entity. This bill guarantees that, following a declared natural disaster, an owner who may be eligible for a Blue Acres property buyout or home elevation assistance, shall have the right to access the appraisal, and shall also have the right to challenge the appraisal, and any monetary offer. This bill would specifically guarantee the property owner, or certain representatives thereof, the opportunity to:

· accompany the appraiser during inspection of the property;

· provide to the appraiser any information related to the valuation of the property;

· obtain a signed statement from the appraiser or adjuster stating that the additional information provided has been considered;

· be afforded at least 60 calendar days from receipt of an offer to review the offer, seek any clarifications, and file an appeal if necessary;

· To be given the opportunity to have their own appraisal or adjustment conducted by a State licensed or certified appraiser or adjuster; and

· To obtain a written response to any appeal of an appraisal or monetary offer, explaining why any changes have or have not been made to the valuation or offer.

This bill takes effect on the first day of the fourth month next following enactment.