N.J. Admin. Code § 7:1I-4.4

Current through Register Vol. 56, No. 11, June 3, 2024

Section 7:1I-4.4 - Valuation of a claim

(a) If the Department has obtained appraisals pursuant to 7:1I-4.3(a), the amount of the claim eligible for compensation from the Fund shall be computed by the difference between (a)1 and (a)2 below, adjusted in accordance with (c) below:

1. The appraised value of the subject property determined pursuant to 7:1I-4.3(a), excluding the effect of the sanitary landfill facility on such value; and

2. The greater of:

i. The appraised value of the subject property determined pursuant to 7:1I-4.3(a), reflecting the effect of the sanitary landfill facility on such value; or

ii. The price actually obtained by the claimant upon the sale of the subject property, without closing adjustments.

(b) If, pursuant to 7:1I-4.3(b), the Department has elected not to obtain an appraisal of the subject property as affected by the sanitary landfill facility, the amount of the claim eligible for compensation from the Fund shall be equal to the difference between (b)1 and (b)2 below, adjusted in accordance with (c) below:

1. The appraised value of the subject property determined pursuant to 7:1I-4.3(a), excluding the effect of the sanitary landfill facility on such value; and

2. The price actually obtained by the claimant upon the sale of the subject property, without closing adjustments.

(c) The Department may, in its discretion, adjust the amount determined pursuant to (a) or (b) above by considering other information available to the Department which supports a conclusion that the amount determined pursuant to (a) or (b) above does not accurately reflect the diminution in the value of the subject property resulting from the improper operation or improper closure of the sanitary landfill facility. Such information may include, but is not limited to, any of the following:

1. Information concerning sales of comparable properties considered in establishing an appraisal pursuant to 7:1I-4.3(a), indicating that factors other than the sanitary landfill facility affected the sale prices of such properties. Such information may include, without limitation, the prices of comparable properties within and outside the area in which the sanitary landfill facility may have affected real property values; general market conditions; the time elapsed between listing for sale and execution of an agreement of sale for comparable properties within and outside the area in which the sanitary landfill facility may have affected real property values; and specific terms of the agreements of sale (such as financing terms, personal property included in the sale, and apportionments of closing costs);

2. Information concerning sales of comparable properties considered in establishing an appraisal pursuant to 7:1I-4.3(a), indicating that such properties have characteristics which distinguish them from the subject property, and which affect the values of such properties;

3. Information concerning the sale of the subject property, indicating that the difference between the sale price and the appraised value of the property reflected factors other than the sanitary landfill facility. Such information may include, but is not limited to, the time elapsed between listing of the subject property for sale and execution of an agreement of sale; the length of time the subject property was offered for sale, the nature and number of any offers to purchase the subject property; the difference between the initial listing price and the sale price; the number and extent of intermediate reductions in the listing price; specific terms of the agreement of sale for the subject property (such as financing terms, personal property included in the sale and apportionments of closing costs); data concerning the real estate market generally at the time of the sale of the subject property; and other evidence of the good faith nature of the sale required to be submitted under 7:1I-4.5; and

4. The effect of the completion of the construction phase of the sanitary landfill facility remediation or of other amelioration of the damages resulting from the improper operation or improper closure of the sanitary landfill facility.

N.J. Admin. Code § 7:1I-4.4

Amended by R.1999 d.91, effective 3/15/1999.
See: 30 N.J.R. 4157(a), 31 N.J.R. 763(a).
In (a), substituted "computed by" for "equal to" following "shall be" in the introductory paragraph.