The South Carolina State Housing Finance and Development Authority has added a new requirement which only applies to Acquisition/Rehabilitation applications for Tax-Exempt Bond financing with non-competitive 4% tax credits:
4. Appraisal Valuation: Land value and building(s) value must be appraised “as is” and reported
a) Land value – Land should be valued without regard to any improvements/restrictions. This value should be based on similar land sales in the sub-market or the value of the “land only” portion of improved sales in the sub-market. Land value must not be less than the greatest of i) the tax assessor’s land value (USD); ii) the tax assessor’s land value as a percentage of total tax value; or iii) ten percent (10%) of the total purchase price.
b) Building value – Building(s) must be valued following all existing guidance found on page 14 of the Tax Credit Manual.