Appraisers and review appraisers must remember that existing improvements on a parcel may not comply with ADA requirements, which could affect their market value. Appraisal reports contain statements on “Basic Assumptions” and/or “Contingent and Limiting Conditions” such as:

“It is assumed that there is full compliance with all applicable federal, state, and local land use laws and environmental regulations and unless non-compliance is noted, described , and considered herein.”

Some appraisers may comment:

“The Americans with Disabilities Act (ADA) became effective January 26, 1992. The appraiser has not made a specific compliance survey and /or analysis of this property to determine whether it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property together with a detailed analysis of the requirements of the ADA could reveal that the property does not comply with one or more elements of the ADA. If so, this fact could have a negative effect upon the value of the property. Since the appraiser has no direct evidence relating to this issue, the appraiser did not consider possible noncompliance with the requirements of the ADA in estimating the value of the subject property.”

Though the above-noted statements may be made in appraisal reports, if an improvement is being “Category II” bisected, and depending on local requirements, older improvements may need “cost to cure” measures to add ramps, elevators, and/or other special equipment to comply with ADA requirements. A technical expert’s report could be secured to help determine the adequate measures and costs for the improvement’s compliance with ADA.

For further information and study, a special federal lists various publications and regulations on ADA.