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Fair Market Value 625 Gillespie Street
THE CITY OF L~UB ~~ E .Masterpiece an the 1Vlississippi MEMORANDUM August 2, 2007 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Resolution Establishing the Fair Market Value of a Property to be Acquired for Expansion of the 32nd Street Detention Basin Housing and Community Development Department Rehabilitation Specialist Joleen Patterson recommends City Council approval of a resolution establishing the fair market value of the property located at 625 Gillespie Street at the appraised value of $120,900. This property is one of the twa remaining homes identified for purchase and removal for expansion of the 32"d Street Storm Water Detention Basin. The City has been unable to negotiate an agreement to purchase the property. This is the first step in the condemnation process. I concur with the recommendation and respectfully request Mayor and City Council approval. ~` ~ , ~ ~ ~~ i Cam!/ 1 ~. l ~ _ Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Joleen Patterson, Housing and Community Development Department THE CITY OF Dus E MEMORANDUM ~,-~-~ 2 August 07 To: Michael Van Milligen, City Manager C~ From: Joleen Pattersor~ Housing and Community Development Department Re: Resolution Establishing the Fair Market Value of a Property to be Acquired for Expansion of the 32"d Street Detention Basin Introduction The purpose of this memorandum is to request the City Council to adopt a resolution establishing the fair market value of the property located at 625 Gillespie Street for purposes of acquisition of the property for expansion of the 32"d Street storm water detention basin. Discussion The property at 625 Gillespie Street is owned by the estate of Arthur Frommelt. Mr. Frommelt died earlier this year. The Housing and Community Development Department has been negotiating with Mr. Frommelt's family since July 2005 to purchase the property. This is one of the two remaining homes identified for purchase and removal for expansion of the detention basin according to the Bee Branch Drainage Basin Master Plan. Because we have been unable to reach an agreement for the purchase of the property, we are recommending that the City begin condemnation proceedings. The first step in that process is to establish the fair market value of the property based on the appraisal. A copy of the appraisals of the property accompanies this memorandum. Action Step The action requested of the City Council is to adopt the attached resolution establishing the fair market value of the Frommelt Gillespie Street property. cc: Barry Lindahl, City Attorney RESOLUTION NO. 410-07 ESTABLISHING THE FAIR MARKET VALUE OF CERTAIN REAL PROPERTY OWNED BY THE ESTATE OF ARTHUR P. FOMMELT IN THE CITY OF DUBUQUE, IOWA WHEREAS, the City of Dubuque (City) intends to acquire certain real property owned by the Estate of Arthur P. Frommelt (Owner), legally described as follows (the Property): Lots 11, 12, 13, 14, and 15 Finks Subdivision in the City of Dubuque, Iowa as shown on Exhibit A attached hereto for the purpose of expanding the 32"d Street Detention Basin; AND WHEREAS, Iowa law requires that City must make a good faith effort to negotiate with Owner to purchase the Property before proceeding with condemnation; AND WHEREAS, City may not make an offer to purchase the Property which is less than the fair market value City has established for the Property; AND WHEREAS, City has caused an appraisal of the Property to be made and the appraised value of the Property is $120,900.00. AND WHEREAS, the City Council now desires to establish the fair market value of the Property. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA AS FOLLOWS: 1. The fair market value of the Property is hereby established to be $120,900.00. 2. The City Manager and the City Attorney are hereby authorized to commence negotiations with Owner of the Property and any other interested parties for the purchase of the Property for a purchase price which is not less than the fair market value established by this Resolution. Passed, approved and adopted this 6th day of August , 2007. Roy D. Buol, Mayor Attest Jeanne F. Schneider, City Clerk ~LTB E Condemnation Area ~~.E City of Dubuque Iowa 5 Mestrrp~ece ow the M7csiuippr i r 1 ~ l~ Jr -~ j _ t _ - tii t .,__.~a `°~°~_ ~ << ~7 _ ~sr t ,:' j I` / "' ~ i ~r' - -_ +. ~ ~ _ i _ -~7 _ ST i' _ _ _ - 1' I f ` ~Y ' rW. w~..~.en .N.ywr4p' W.M.r w ~F14 iY~Y' _~~iWi'Y~ Yr~~- fi~aMrw rr.r ~ II1C~1 8~G5 ~QQ (g0( roo0 alm iw~ Mp R7pNwtl by. Troy Kr6M Jw 1nA !~ Cw~f _m 2 X W ti File No. 2 7 7fro Pa a #1 APPRAISAL OF REAL PROPERTY LOCATED AT: Lat 11 in Finks Sub. Lot 11 in Finks Sub. Dubuque,lA 52001 FOR: City of Dubuque Housing Services 1805 Central Ave. Dubuque,lA 52001 AS OF: 07/13/07 BY: Bradley R. Brissey Form 6A6 -'WinTOTAL' appraisal software by a la mode, inc. -1-800-ALAMODE File No. 200707iro Pa a #2 City of Dubuque Housing Services 1805 Central Ave. Dubuque, IA 52001 Re: Property: Lot 11 in Finks Sub. Dubuque,lA 52001 Borrower: Frommelt, Arthur File No.: In accordance with your request, we have appraised the above referenced property. The report of that appraisal is attached. The purpose of this appraisal is to estimate the market value of the property described in this appraisal report, as improved, in unencumbered fee simple title of ownership. This report is based on a physical analysis of the site and improvements, a locational analysis of the neighborhood and city, and an economic analysis of the market for properties such as the subject. The appraisal was developed and the report was prepared in accordance with the Uniform Standards of Professional Appraisal Practice. The value conclusions reported are as of the effective date stated in the body of the report and contingent upon the certification and limiting conditions attached. It has been a pleasure to assist you. Please do not hesitate to contact me or any of my staff'rf we can be of additional service to you. Sincerely, ~~~~~~ d~~Z~oti%:~~ Bradley R. Brissey Appraiser LAND APPRAISAL REPORT zoo7o7fro ri" ni,. onmms.,. Borrower Frommelt, Arthur Census Tract 0011.02 Map Reference 20220 Property Address Lot 11 in Finks Sub. City Dubuque County Dubuque State IA Lp Code 52001 Legal Description Lot 11 in Finks Sub. Sale Price $ N/A Date of Sale N/A Loan Term N/A yrs. Property Rights Appraised ®Fee ^ Leasehold ^ De Minimis PUD Actual Real Estate Taxes $ 60.00 (yr) Loan charges to be paid by seller $ N/A Other sales concessions NIA Lender/Client City of Dubuque Housing Services Address 1805 Central Ave., Dubu ue, IA 52001 Occupant Vacant Appraiser Bradley R. Brissey Instructions to AppraiserNone Noted. Location Urban Suburban Rural Good Avg. Fair Poor Built Up ^ Over 75% ®25% to 75% ^ Under 25% Employment Stability ® ^ ^ ^ Growth Rate ^ Fully Dev. ^ Rapid ®Steady ^ Slow Convenience to Employment ^ ® ^ ^ Property Values ®Increasing ^ Stable ^ Declining Convenience to Shopping ^ ®^ ^ Demand/Soppy ®Shortage ^ In Balance ^ Oversupply Convenience to Schools ^ ® ^ ^ Marketing Time ®Under 3 Mos. ^ 4-6 Mos. ^ Over 6 Mos. Adequacy of Public Transportation ^ ® ^ ^ ,Present Land Use 70% 1 Family 5% 2-4 Family _% Apts. _% Condo 5% Commercial Recreational Facilities ^ ® ^ ^ %Industrial 20%Vacant % Adequacy of Utilities ® ^ ^ ^ Change in Present Land Use ®Not Likey ^ Likey (*) ^ Taking Place (*) Property Compatibility ^ ® ^ ^ (*) From To Protection from Detrimental Conditions ^ ® ^ ^ Predominant Occupancy ®Owner ^ Tenant 5 % Vacan< Police and Fire Protection ® ^ ^ ^ Single Family Price Range $ 8,000 to $ 35,000 Predominant Value $ 15,000 General Appearance of Properties ^ ® ^ ^ Single Famiy Age N/A yrs. to N!A yrs. Predominant Age N/A yrs. Appeal to Market ^ ® ^ ^ Comments including those factors, favorable or unfavorable, affecting marketability (e.g. public parks, schools, view, noise):Amenities such as em to ment sho in schools, rote stores restaurants, etc. are all located within a coo le of miles from the sub ect lot. Dimensions 63' x 193' Feet = 12,159 Sq. Ft. or Acres Corner Lot Zoning classification R-1 Single Family Residential District Present Improvements ®do ^ do not conform to zoning regulations Highest and best use ®Present use Other s eci Public Other (Describe) OFF SITE IMPROVEMENTS Topo Slo es to front Elec. ^ None Street Access ®Public ^ Private Size Avera e Gas ^ None Surface Asphalt ShapeRectan ular Water ^ None Maintenance ®Public ^ Private View Residential San. Sewer ^ None ^ Storm Sewer ^ Curb/Gutter Drainage Avera e ^ Underground Elect. & Tel. ^ Sidewalk ^ Street Li hts Is the property located in a HUD kleM'rfied Special Flood Hazard Area? ®No ^ Yes CommeMS (favorable or unfavorable including any apparent adverse easements, encroachments, or other adverse conditions): There are no known adverse easements, encroachments, or other adverse conditions Located on the sub'ect lot. Utilities for the vacant lot are available at the street. The undersigned has recited three recent sales of propertes most similar and proximate to subject and has considered these in the market analysis. The description includes a dollar adjustment reflecting market reacgon to those items of significant variation between the subject and comparable properties. li 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; it a significant item in the comparable is inferior to a less favorable than the subject property, a plus (+) adjustment is made thus increasing the indicated value of the subject. ITEM SUBJECT PROPERTY COMPARABLE N0.1 COMPARABLE N0.2 COMPARABLE N0.3 Address Lot 11 in Finks Sub. 1110 Roosevelt St. Lot 3 Wersinger Sub. Lot 1 Carr Addition #2 Dubu ue Dubu ue Dubu ue Dubu ue Proximit to Subect 1. 52 miles NE 1 42 milPS NE 2 32 m~ies S W Sales Price $ NiA _ _ ~ $ 15,000 $ 15,000 __ 15 000 Price _ _ , Data Source Public Record DMLS/Public Record DMLS/Public Record DML5/Public Reco rd - Date of Sale and DESCRIPTION DESCRIPTION + - Ad'ust. DESCRIPTION + - Ad'ust DESCRIPTION + - $ Ad'ust. Time Adjustment N/A 12/11/06 12/04/06 03/07/07 Location Avera a Avera a Avera a Avera e ' Sit few 12 159 SF 11 250 SF 11 250 SF 10 530 SF Sloe Slo es to front, Bluff Sli ht Sloe Sli ht Sloe Sli ht Slo e Utilities At street At Street At Street At Street Sales or financing NIA , Concessions Net Ad'. otal ^ + ^ - '. $ n + n _ $ $ ^I ~ n _ Indicated Value _ , - of Subject 15,000 15,000 I $ 15 000 Comments on Market Data: All of the com arable's were similar in size and accessibilit to utilities. Comments and Conditions of Appraisal: This appraisal is performed with the condition of the vacant lots "as is" with no improvements or future im rovements. Final Reconciliation: All of the lots that were used as wm arable's were similar to the sub ect in terrain. The a raiser feels that the com arable's used were the best available at the time. 1 ESTIMATE THE MARKET VALUE, AS DEFQIED, SUBJECT PROPERTY AS OF 07/13/07 l0 be $ 15,000 radley~~~ ^ Did ^ `Did Not Physicaly Inspect Property Ap raisers Review Appraiser if applicable r, ~,y Brissey Realty Form LND -'WinTOTAL' appraisal software by a la mode, inc. -1-800-ALAMODE LAND APPRAISAL REPORT MARKET DATA ANALYSIS r,~e ~~~ 200707fro ITEM SUBJECT PROPERTY COMPARABLE N0. 4 COMPARABLE N0. 5 COMPARABLE NO.~ 6 Address Lot 11 in Finks Sub. Dubu ue ___ 2420 Elm St. Dubu ue Proem' l0 $Ub~ect t'15 miles SE Sales Price N -", _ 15 000 _ Price $ I __ $ Data Source Public Record DMLS/Public Record Date of sale and DESCRIPTION DESCRIPTION + - Ad'ust. DESCRIPTION + - Ad'ust. DESCRIPTION + - $ Ad'ust. Time Ad'uslment N/A 10/27/06 Location Avera a Avera e Sit iew 12,159 SF 9,000 SF Sloe Slo es to front Bluff Slo es SI' htl Utilities At street At Street Sales or Financing Concessions N/A _ Unknown ~ ~ ' Net Ad'. otal ^ + n - _ ~± ^ - ; $ I~ + n I - ; Indicated Value ai Sub ect $ 15,000 ~ ,$ _ $ Comments: Brissey Realty Form LND.(AC) - "WinTOTAL' appraisal software by a b mode, inc. -1-800-ALAMODE Fle No. 2007071r Pa e # Suaplemental Addendum r~iou~ Borrower Frommelt, Arthur Propert Address Lot 11 in Finks Sub. Ci Dubu ue County Dubu ue State IA Zip Code 52001 Clierd Cit of Dubu ue Housin Services Zoning Classification and description The R-1 Single Family District is the most restrictive residential district. The principal use of land in this district is for low density single-family dwellings and related recreational, religious and educational facilities normally required to service the residents within the district. Low density residential areas shall be protected from higher density residential development and from the encroachment of incompatible uses. Form TADD - "WinTOTAL' appraisal software by a la mode, inc. - i-800-ALAMODE Plat Map Borrower Frommelt Arthur Pro a Address Lot 11 in Finks Sub. Ci Dubu ue Coun Dubu ue State IA Z Code 52001 Client Cit of Dubu ue Housin Services f ~ ~ ~~ _ ~: P ~ti. " ^w~ '`'•- \\ Lot 11 in Finks Sub. ! ~ 0 _::~>. f .f " .~ .. r r ~ a' 4 ~ ~ , f ~ ~ { °°° ~ "w x ;~ F i ~:, ,fix ~~~ Form MAP.PLAT -'WinTOTAL" appraisal sottware by a la mode, inc. -1-800-ALAMODE File No. 200707fro Pa e #7 Location Map Borrower Frommelt, Arthur Property Address Lot 11 in Finks Sub. City Dubu ue County Dubu ue State IA Zip Code 52001 Client Cit of Dubu ue Housin Services Form MAP.LOC - "WinTOTAL' appraisal software by a la mode, inc. -1-800-ALAMODE Flood Map File No. 200707fro Paae #8 Borrower Frommelt, Arthur Property Address Lot 11 in Finks Sub. City Dubu ue Counry Dubu ue State IA Zp Code 52001 Client Cit of Dubu ue Housin Services Prepared for: In~e~F~00~ Brissey Realty ~~~~¢ ." `=~ `~' "~ ""~ 625 Gillespie 5t ww~v.interFlaodcam • i-890 252-6633 Dubuque, IA 52001-1163 ,%' .. ZdME X ,~ ~,~ ~ ~ ~~~~ ~ i `\ ~;~, 1., I FLOODSG4PE Food Nazar Map; ~ ~. Map Number } ,19518000038 i t Effective Oate e @ September 6, 1989 I WI Form MAP.FIood - "WinTOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE Flle N . 2 07 7fro Pa a #9 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 prudentty, 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 seller 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 albwed far exposure in ifre 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 arryone 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 resuti of tradition or law in a market area; these costs are readily identifiable since the seller pays tfrese 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. Arty adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession but the dollar amount of any adjusbnent should approximate the market's reaction to the Tinancing 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 tollowing 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 Doty 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, express 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 presence of hazardous wastes, toxic substances, etc.) observed during the inspection of the subject property or that he or she became aware of during the rrormal research irnolved 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 rw such conditions and makes no guarantees or warranties, express or implied, regarding the condition of ttw property. The appraiser will not be responsible for any such conditions that do exist or far 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 intormalion, estimates, and opinions that were expressed in the appraisal report from sources ihai 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 far 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. Tire appraiser must provide his or her prior written consent before the antler/client specified in the appraisal report can distribute the appraisal report (including conclusions about tfre property value, the appraiser's identity and professional designations, and references to any professional appraisal organizations or the Tirm with wfuch the appraiser is associated) to anyone other than the borrower; the mortgagee or its successors and assigns; the mortgage insurer; consu0ants; professional appraisal orgartizations; any state or federally approved financial institution; or any tlepartrnent, 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) wittrout 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 corneyed by anyone to tire public through advertising, public relations, news, sales, or other media. Freddie Mac Form 439 6-93 Page 1 of 2 Fannie Mae Form 10048 6-93 Brissey Reahy Form ACR - "WinTOTAL' appraisal software by a la mode, inc. -1-800-ALAMDDE Fil No.200707fr Pa #10 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 anaysis ark have made a dollar adjustment when appropdate to reflect the market reaction to those items of signiticant variatidn. ti 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 property, I have made a positive adjustment to increase the adjusted sales price of the comparable. 2. I 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 krgwingry withheld any sign'rficant information from the appraisal report and I believe, to the best of my knowledge, that all statements and information in the appraisal report are tme and correct. 3. I stated in the appraisal report only my own personal, unbiased, and professional anaysis, opinions, and conclusions, which are subject only to the contingent and limiting conditions specified in this form. 4. I have no present or prospective interest in the property that is the subject to 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, etlher 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 odgin 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. I have no present or comemplated future interest in the subject property, and neither my current or future employment rar my compensation for performing this appraisal is contingent on the appraised value of the property. 6. I was not required to report a predetermined value or direction in value that favors the cause of the client or any related parry, the amount of the value estimate, the attainment of a specific result, or the occurrence of a subsequent evens 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. I 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. I 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. I personally prepared all conclusions and opinions about the real estate that were set forth in the appraisal report. It 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 far it. SUPERVISORY APPRAISER'S CERTIFICATION: Ii a supervisory appraiser signed the appraisal report, he or she certifies and agrees that: I directry 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 certifications numbered 4 through 7 above, and am taking full responsibility for the appraisal and the appraisal report. ADDRESS OF PROPERTY APPRAISED: Lot 11 in_Finks Sub., Dubuque, IA 52001 APPRAISER: ~ SUPERVISORY APPRAISER (only if required: Signature: _ Signature: Name: a is Name: Date Signed: 07/13/07 Date Signed: State Certification #: CR01925 State Certification #: or State License #: or State License #: State: IA State: Expiration Date of Certification or License: 6/30/2008 Expiration Date of Certification or License: ^ Did ^ Did Not Inspect Property Freddie Mac Form 439 6-93 Page 2 of 2 Fannie Mae Farm 10048 6-93 Form ACH - •WinTOTAL' appraisal software by a la mode, inc. -1-800-ALAMODE Fil N . 20 7 7fr P #11 MULTI-PURPOSE SUPPLEMENTAL ADDENDUM FOR FEDERALLY RELATED TRANSACTIONS 8rissey Realty BorrowedClient Frommelt Arthur Pro ert Address Lot 11 in Finks Sub. Cit Dubu ue Coun Dubu ue State IA r Code 52001 Lender Cit of Dubu ue Housin Services This Multi-Purpose Supplemental Addendum for Federally Related Transactions was designed to provide the appraiser with a convenient way to comply with the current appraisal standards and requirements of the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of Currency (OCC), The Office of Ttriff Supervision (OTS), the Resolution Tmst 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. ^ PURPOSE & FUNCTION OF APPRAISAL 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. ® EXTENT OF APPRAISAL PROCESS ® 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. ^ The Reproduction Cost is based on supplemented by the appraiser's knowledge of the bcal 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 tamily 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. ^ For income producing properties, actual rents, vacancies and expenses have been reported and anatyzed. They have been used to project future rents, vacancies and expenses. ® SUBJECT PROPERTY OFFERING INFORMATION According to Dubuque Multiple Listing Service the subject property: ® has not been offered for sale in the past: ^ 30 days ^ 1 year ®3 years. ^ is cumentty offered for sale for $ ^ Ytas-gttgted for sale within the past: ^ 30 days ^ 1 year ^ 3 years for $ ^ 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. ® SALES HISTORY OF SUBJECT PROPERTY According to Dubuque City Assessor's records the subject property: ® Has not transferred ^ in the past twelve months. ®in the past thirty-six months. ^ in the past 5 years. ^ Has transferred ^ in the past twelve months. ^ in the past thirty-six months. ^ in the past 5 years. ^ All prior sales which have occurred in tfre past are listed bebw and reconciled to the appraised value, either in the body of the report or in the addenda. Dato Sales Price Document # Seller Bu er ® FEMA FLOOD HAZARD DATA ® Subject property is not located in a FEMA Special Flood Hazard Area. ^ Subject property is located in a FEMA Special Flood Hazard Area. Zone FEMA Map/Panel # Map Date Name of Community X 195180 0003B 09/06/89 Cd of Dubu ue, Iowa ^ The community does not participate in the National Flood Insurance Program. ® The community dge~particigatQ in the National Fbod Insurance Program. ® his covered by a regular program. ^ It is covered by an emer°encv program. Page 1 of 2 Farm MPA3 -'WinTOTAL" appraisal software by a la mode, inc. -1-800-ALAMODE Fit No. 2007 7ffo P e #1 ® CURRENT SALES CONTRACT ® The subject property is tune b not under contract. ^ The contract and/or escrow instmctions 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 folbwing summarizes the contract: Contract Date Amendment Data Contract Price Seller ^ The contract indicated that personal property was not included in the sale. ^ The contract indicated that personal property was included. tt 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 Tolb~wi q concessions or incentives: ^ It 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. ® MARKET OVERVIEW Include an explanation of current market conditions and trends. 3-6 months is considered a reasonable marketing period for the subject property based on Dubuque Multiple Listing Service ® ADDITIONAL CERTIFICATION The Appraiser certifies and agrees that: (1) The anayses, opinions and conclusions were developed, and this report was prepared, in conformity with the Uniform Standards of Professional Appraisal Practice ("USPAP'), except that the Departure Provision of the USPAP does not apply. (2) Their compensation is not contingent upon the reporting of predetermined value or direction in value that favors the cause of the clierd, 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 rr~nimum valuation, a specific valuation, or the approval of a loan. ® ADDITIONAL (ENVIRONMENTAL) LIMITING CONDITIONS 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 fhe subject property did not develop any information that indicated any apparent significant hazardous substances or detrimental ernironmental conditions which would affect the property negativey unless otherwise stated in this report. tt 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 COMMENTS ® APPRAISER'S SIGNATURE & LICENSE/CERTIFICATION J~~/, ~~~,.~C Appraiser's Sig . M ~ "'"" " r Effective Date 07/13/07 Date Prepared 07/13/07 Appraiser's Name (print) Bradley R. Brissev Phone # _{563) 583-1737 State IA ^ License ®Certification # CR01925 Tax ID # 42-1096446 ^ CO-SIGNING APPRAISER'S CERTIFICATION ^ The co-signing appraiser bas p~r~iy in~nected 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 far the contents of the report including the value conclusions and the limiting conditions, and confirms that the certifications apply tally to the co-signing appraiser. ^ The co-signing appraiser has not personalpr inspected the interior of the subject property and: ^ 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. ^ Tf~e co-signing appraiser's level of inspection, involvement in the appraisal process and certification are covered elsewhere in the addenda section of this appraisal. ^ CO-SIGNING APPRAISER'S SIGNATURE & LICENSE/CERTIFICATION Co-Signing Appraiser's Signature Effective Date Date Prepared Co•Sigring Appraiser's Name (print) Phone # State ^ License ^ Certification # Tax ID # Page 2 of 2 Form MPA3 - "WinTOTAL' appraisal software by a la mode, inc. -1-800-ALAMODE File No. 2 707fro Pa e #13 FROM: Bradley R. Brissey Brissey Realty 3388 Kennedy Circle, Suite A Dubuque,lA 52002 Telephone Number: 563-583-1737 Fax Number: 563-582-2099 T0: City of Dubuque Housing Services 1805 Central Ave. Dubuque,lA 52001 Telephone Number: fax Number: Alternate Number. E-Mail: INVOICE INYOIGE NtNV~BEA 200707fro DATE 07!13/07 REFI?RENGE Internal Order #: 200707fro Lender Case #: 200707fro Client File #: 200707fro Main Fle # on form: 200707fro Other File # on form: 200707fro Federal Tax ID: 42-1096446 Employer ID: DESCRIPTION Lender: City of Dubuque Housing Services Client: City of Dubuque Housing Services Purchaser/Borrower: Frommelt, Arthur Property Address: Lot 11 in Finks Sub. Cfty: Dubuque County: Dubuque State: IA Zip: 52001 Legal Description: Lot 11 in Finks Sub. FEES AMOUNT Land Appraisal in Dubuque 170.00 Courtesy Discount -95.00 SUBTOTAL 75.00 PAYMENTS AMOUNT Check#: Date: Description: Check #: Date: Description: Check #: Date: Description: SUBTOTAL TOTAL DUE $ 75.00 Form NN5 - "WinTOTAL" appraisal software by a la mode, inc. -1-800.AtAMODE Brissey Realty File No. 2 0707fro Pa a #1 APPRAISAL OF REAL PROPERTY LOCATED AT: Lot 12 in Finks Sub. Lot 12 in Finks Sub. Dubuque,lA 52001 FOR: City of Dubuque Housing Services 1805 Central Ave. Dubuque,lA 52001 AS OF: 07/13/07 BY: Bradley R. Brissey Form GA6 - •VJin70TAL• appraisal software by a la mode, inc. -1-800-ALAMODE Fil No. 20 707fr P e #2 City of Dubuque Housing Services 1805 Central Ave. Dubuque,lA 52001 Re: Property: Lot 12 in Finks Sub. Dubuque,lA 52001 Borrower: Frommelt, Arthur File No.: In accordance with your request, we have appraised the above referenced property. The report of that appraisal is attached. The purpose of this appraisal is to estimate the market value of the property described in this appraisal report, as improved, in unencumbered fee simple title of ownership. This report is based on a physical analysis of the site and improvements, a locational analysis of the neighborhood and city, and an economic analysis of the market for properties such as the subject. The appraisal was developed and the report was prepared in accordance with the Uniform Standards of Professional Appraisal Practice. The value conclusions reported are as of the effective date stated in the body of the report and contingent upon the certification and limiting conditions attached. It has been a pleasure to assist you. Please do not hesitate to contact me or any of my staff rf we can be of additional service to you. Sincerely, C ~~ 2ts~~~~~ 1'~~~'~ Bradley R. Brissey Appraiser LAND APPRAISAL REPORT File No. 0707h Pa #3 200707fro FaP Nn ~nrvmr~~ Borrower Frommelt, Arthur Census Tract 0011.02 Map Reference 20220 Property Address Lot 12 in Finks Sub. City Dubuque County Dubuque State IA Zip Code 52001 Legal Description Lot 12 in Finks Sub. Sale Price $ N/A Date of Sale N/A Loan Term N/A yrs. Property Rights Appraised ®Fee ^ Leasehold ^ De Minintis PUD Actual Real Estate Taxes $ 48.00 (yr) Loan charges to be paid by seller $ N/A Other sales concessions N/A Lender/Client City of Dubuque Housing Services Address 1805 Central Ave., Dubu ue, IA 52001 Occuparn Vacant Appraiser Bradley R. Brissey Instructions to Appraiser None Noted. Location Urban Suburban Rural Good Avg. Fair Poor Built Up ^ Over 75% ®25% to 75% ^ Under 25% Employment Stability ® ^ ^ ^ Growth Rate ^ Fully Dev. ^ Rapid ®Steady ^ Slow Convenience to Employment ^ ® ^ ^ Property Values ®Increasing ^ Stable ^ Declining Convenience to Shopping ^ ® ^ ^ Demand/Supply ®Shortage ^ In Balance ^ Oversuppty Convenience to Schools ^ ® ^ ^ Marketing Time ®Under 3 Mos. ^ 4-6 Mos. ^ Over 6 Mos. Adequacy of Public Transportation ^ ®^ ^ Present Lantl Use 70% 1 Family 5% 2-4 Family _% Apts. _% Cando 5% Commercial Recreational Facilities ^ ® ^ ^ % Industrial 20% Vacarn _% Adequacy of Utilities ® ^ ^ ^ ,Change in Presern Land Use ®Not Likely ^ Likely (*) ^ Taking Place (*) Property Compatibility ^ ®^ ^ (*) From To Protection from Detrimental Conditions ^ ® ^ ^ Predominant Occupancy ®Owner ^ Tenant 5 % Vacant Police and Fre Protection ® ^ ^ ^ Single Famiy Price Range $ 8,000 to $ 35,000 Predominant Value $ 15,000 General Appearance of Properties ^ ® ^ ^ Single Family Age N/A yrs. to N/A yrs. Predominarn Age NIA yrs. Appeal to Market ^ ® ^ ^ Comments including those factors, favorable or unfavorable, affecting marketability (e.g. public parks, schools, view, noise):Amenities such as em to ment sho in schools, race stores, restaurants, etc. are all located within a cou le of miles from the sub'ect lot. Dimensions 50' x 187' Feet = 9,350 Sq. Ft. or Acres Corner Lot Zoning classification R-1 Single Family Residential District Present Improvements ®do ^ do not conform to zoning regulations Highest and best use ®Present use Other s eci Public Other (Describe) OFF SITE IMPROVEMENTS Topo Slo es to front Elec. ^ None Street Access ®Public ^ Private Size Avera e Gas ^ None Surface Asphalt ShapeRectan ular Water ^ None Maintenance ®Public ^ Private View Residential San. Sewer ^ None ^ Storm Sewer ^ Curb/Gutter Drainage Avera e ^ Underground Elect. & Tel. ^ Sidewalk ^ Street Li hts Is the property boated in a HUD kentified Special Flood Hazard Area? ®No ^ Yes Comments (favorable or unfavorable including any apparent adverse easements, encroachments, or other adverse conditions): There are no known adverse easements, encroachments, or other adverse conditions located on the sub ect lot. Utilities for the vacant lot are available at the street. The undersigned has recited three recent sales of properties most similar and proximate to subject and has considered these in the market analysis. The description includes a dollar adjustment reflecting market reactlon to those items of significant variation between the subject and comparable properties. If a significant item in the comparable property is superior to or mare favorable than the subject property, a minus (-) adjustment is made thus reducing the indicated value of subject; if a significant ftem in the comparable is inferior to or less favorable than tfle subject property, a plus (+) adjustment is made thus increasing the indicated value of the subject. ITEM SUBJECT PROPERTY COMPARABLE N0.1 COMPARABLE N0.2 COMPARABLE N0.3 Address Lot 12 in Finks Sub. Dubu tie 1110 Roosevelt Dubu tie Lot 95 Finley Waples & Burtons Dubu tie Lot 1 Carr Add. #2 Dubu tie Proximit to Subject _ 1.53 miles N E 2 3 2 m~le~ SW d 04 miles SE Sales Price N/A _ 15,000 _ __ 15 000 _ 15,000 Price $ ~ Data Source Public Record DMLS/Public Record Public Record Public record Date of Sale and T Ad t t DESCRIPTION DESCRIPTION + - $ Ad'ust. DESCRIPTION + - Ad'ust DESCRIPTION + - $ Atl'ust. ime jus men N/A 12/11/06 05/10/07 03!07/07 Location Avera a Avera a Avera a Avera e Sit few 9 350 SF 11 250 SF 8 410 SF 10 530 SF Sloe Slo es to front, Bluff Sli ht Sloe Sli ht Sloe Sli ht Slo e Utilities At street At Street At Street At Street Sales or Fnancing Concessions N/A Cash Unknown Unknown Indicated Value - ot Subject 15,000 $ 15,000 15,000 Comments on Market Data: All of the com arable's are similar in size and accessibilit to utilities. Comments and Conditions of Appraisal: This appraisal is performed with the condition of the vacant lots "as is" with no improvements or future im rovements. Fnal Reconciliation: All of the lots that were used as com arable's were similar to the sub'ect in terrain. The a raiser feels that the com arable's used were the best available at the time. 1 ESTIMATE TXE MARKET VALUE, AS UEF(pEO, SUBJECT PROPERTY AS OF 07/13/07 to be $ 15 000 radley R. Bn sev ^ Ditl ^ Did N t Ph i ll I P IV o ys ca y nspect roperty A praisers Review A praiser if applicable ~KI Brissey Realty Form LND -'WinTOTAL• appraisal software by a la mode, inc. -1-80D-ALAMODE LAND APPRAISAL REPORT Fil N . zo 7 7h Pa #4 MARKET DATA ANALYSIS 200707fro ITEM SUBJECT PROPERTY COMPARABLE N0. 4 COMPARABLE N0. 5 COMPARABLE N0. 6 Address lot 12 in Finks Sub. Dubu ue 2420 Elm St. Dubu ue Praximi to Sub'ect 1 ~5_mi_Ic+_c ~F Sales Price LJ n 15 000 i Price $ $ Data Source Public Record Public Record _ Date of sale and ' DESCRIPTION DESCRIPTION + - Ad'ust. DESCRIPTION + - Ad'ust. DESCRIPTION + - $ Ad'ust. Time Ad ustment NIA 10/27106 Location Avera a Avera e Sit iew 9,350 SF 9,000 SF Sloe Sb es to front Bluff Sli ht Sloe ' Utilities At street At Street Sales or Rnancing Concessions N/A Unknown Net Ad'. otal n ; n - ; $ I-1 + I-1 - I $ I I ~ I-I Indicated Value of Sub'ect $ 15,000 __ -- Comments: Brissey Realty Form LND.(AC) -'WinTOTAI" appraisal software by a la mode, inc. -1-80QALAMODE Fil o. 2 707fr Pa e # Suuolemental Addendum ~;~o~~~ ., Borrower Frommelt Arthur Property Address Lot 12 in Finks Sub. Cit Dubu ue Coun Dubu ue State IA Lp Code 52001 Client Cit of Dubu ue Housin Services Zoning Classification and description The R-1 Single Family District is the most restrictive residential district. The principal use of land in this district is for low density single-family dwellings and related recreational, religious and educational facilities normally required to service the residents within the district. Low density residential areas shall be protected from higher density residential development and from the encroachment of incompatible uses. form TADD -'WinTOTAI' appraisal software by a la mode, inc. - 1-800-ALAMODE Plat Map Borrower Frommelt, Arthur Property Address Lot 12 in Finks Sub. City Dubu ue Coun Dubu ue State IA Zip Code 52001 Client Cit of Dubu ue Housin Services Form MAP.PLAT - "WinTOTAL" appraisal software by a la mode, inc. - 1-80o-ALAMODE Location Map Borrower Frommelt, Arthur Property Address Lot 12 in Finks Sub. City Dubu ue County Dubu ue State IA Zip Code 52001 Client Cit of Dubu ue Housin Services ;~.:nnne Vr~ a x `r. = a a 9 ~naW ,. '~ ~.. ~ ..., ~ BN,neR 3! '° ~ ..,r fir. _ ~ - ~~z m ` W 3N m ~emeor~ .. ~. ~~ F. A 3 ~ ~ m ~ NaH St ~~t ~!`~ ~ V 1 ~ ~ S! y - 8t DoagA St = .oDMga S1:: ,. D~ k A , o $, Hospeei ~~St ~~. .. 1p a g~ g~ A P m S~ A q C A, Y~ St a S ~ ~ . , R~.. 31 IX.C aragM C~tae ~ 'F +P~x, a ay"i ~ ~. `~ c ~ yo aY~ ~ . i9ae ~ ..... $SP ~ ' SM r~rae Awe .. ~m ~wi C R~ ~ kg~ d ~ ~ ~ g 0 :.: ~ c ~ ~ ~ ~ ~' a ~ G~ .ham or Kely' Ln s. Form MAP.LOC -'WinTOTAL' appraisal software by a la mode, inc. -1-800-ALAMODE Fle No. 200707fro Pa e #8 Flood Map Borrower Frommelt, Arthur Property Address Lot 12 in Finks Sub. City Dubu ue County Dubu ue State IA Zip Code 52001 Client Cit of Dubu ue Housin Services ~~ Prepared for: In~erFiood Brissey Realty ~ ~' ~ ~* ^'~^' 625 Gillespie St www.nEerfiood.com • 1-800-252-b633 Dubuque, IA 52DD1-1163 ZONE l( ,; .~ , .~~. l ~,. ~~ ~ - `~ `t~ ~ ,i E ~ r ~" Subject Lot ~i~ ~ ,~l ~ i ~ '= ,, ~'~" -"~f~ °"'- FLOODSCAPE : 1s Flood Ha2afd5 E~1ap MepHumber 19518000038 f ~r~ t Effective Date - q,:?1 i, t-'. September 6, 1989 '. f~j r=~. } ' t i~~ ai ((i t For more infortna[ion about flood zones and flood insurance. comact: j i ° A30' 800 120(Y 1€OfJ' ~ - - -~~ --~ t I, 4 E'. r ;.I ~ ,; i~ i I Powered by Flood Souroe _.... _... _ 4 877.77.FLOOD 5''" .floodsoutce com ©1999-2005 SouroeProse andlor Flood Source Corporations. WI rights reserved. Patents 6,631,326 and 8,873,d15. Dther pa[errts pending. For Info infor$ifloodsouroe.com. Form MAP.FIood -'WinTOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE Fle No. 200707fro Pa e # 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 prudentty, krwwledgeably 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 seller to buyer under conditions whereby: (1) buyer and seller are typicalty 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 albwed 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 sole unaffected by special or creative financing or sales concessions* granted by arryone 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 wf»ch are rwrmalty paid by sellers as a resuA of tradition or law in a market area; these costs are reality 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 parry institutional lender that is not already involved in the property or transaction. Any adjustment should not be calculated on a mechanical dollar for doNar cost of the financing or concession but the dollar amount of any adjustment should approximate the markets reaction to the financing or concessions based on the appraiser's judgement. STATEMENT OF LIMITING CONDITIONS AND APPRAISER'S CERTIFICATION CONTINGENT AND LIMITING CONDITIONS: Tire appraiser's certification that appears in ttre 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 food 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, express 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 spec'rfic 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 presence 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 irnolved 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 nrore or less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express or implied, regarding the condition of the property. The appraiser will not be responsible for any such conditions that do exist or far any engineering or testing that might be required to discover whether such conditions exist. Because the appraiser is rrot 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. Tire 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 ttre 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 corxlusions about the property value, the appraiser's identity and professional designations, and references to any professional appraisal organizations or the firm with wMch the appraiser is associated) to anyone other than the borrower; the mortgagee or its successors and assigns; the mortgage insurer; consuttaMS; professional appraisal organizations; any state or federalty approved financial institution; or arty 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 onty 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 1(104B 6-93 Brissey Really Farm ACR -'WinTOTAL' appraisal software by a la mode, inc. -1-800-ALAMODE File No. 200707fro P e #10 APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that: 1. I have researched the subject market area and have selected a rrdnimum of three recent sales of properties most similar and proximate to the subject property far consideration in the sales comparison anaysis and have made a dollar adjustment when appropriate to reflect the market reaction to those items of significant variation. M 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 tfx: adjusted sales price of the comparable and, if a significant item in a comparable property is inferior to, or less favorable than the subject property, I have made a positive adjustment to increase the adjusted sales price of the comparable. 2. I have taken into consideration the factors that have an impact on value in my devebpment of the estimate of market value in the appraisal report. I have not knowingty withheld any significant information from the appraisal report and I believe, to the best of my knowledge, that all statements and intonnation in the appraisal report are tme and correct. 3. I stated in the appraisal report Doty my own personal, unbiased, and professional analysis, opinions, and conclusions, which are subject ony to the contingent and limiting conditions specified in this form. 4. I have no present or prospective interest in the property that is the subject to this report, and I have no present or prospective personal interest or bias with respect to the participants in tfre transaction. I did not base, either partially or completety, 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 occupards of the subject property or of the present owners or occupants of the properties in the vicinity of the subject property. 5. I have no present or contemplated future interest in the subject property, and neither my current or future employment rar my compensation for performing this appraisal is contingent on the appraised value of the property. 6. I 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 resuh, 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. I 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 tfwse 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 ifre 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. I have personally inspected the int~ior 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 adjustmerds for these adverse conditions in my anaysis of the property value to the extern 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. I personally prepared all conclusions and opinions about the real estate that were set forth in the appraisal report. tt 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. 1 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 directy 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 certifications numbered 4 through 7 above, and am taking full responsibility for the appraisal and the appraisal report. ADDRESS OF PROPERTY APPRAISED: Lot 12 in Finks Sub., Dubuque IA 52001 APPRAISER: ~ SUPERVISORY APPRAISER (only if required): Signature: Signature: Name: a is y ~ Name: Date Signed: 07/13/07 Date Signed: State Certification #: CR01925 State Certification #: or State License #: or State License #: State: IA State: Expiration Date of Certification or License: 6/30/2008 Expiration Date of Certification or License: ^ Did ^ Did Not Inspect Property Freddie Mac Form 439 6-93 Page 2 of 2 Fannie Mae Farm 10048 6-93 Form ACR -'WinTOTAL' appraisal software by a la mode, inc. -1-800-ALAMODE File N . 200707fro P e #11 MULTI-PURPOSE SUPPLEMENTAL ADDENDUM FOR FEDERALLY RELATED TRANSACTIONS Brissey Realty BgrrowedClient Frommelt Arthur Pro a Address Lot 12 in Finks Sub. Cit Dubu ue Cou Dubu ue State IA Z Code 52001 Lender Cif of Dubu ue Housin Services This Mutii-Purpose Supplemental Addendum for Federalty Related Transactions was designed to provide the appraiser with a convenient way to comply with the 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. ^ PURPOSE & FUNCTION OF APPRAISAL The purpose of tfle appraisal is to estimate the market value of the subject property as deTined herein. The function of the appraisal is to assist the above-named Lender in evaluating the subject property for lending purposes. This is a tederaly related transaction. ® EXTENT OF APPRAISAL PROCESS ® The appraisal is based on the information gathered by the appraiser from public records, other identified sources, inspection gt the subject property and neighborhood, and selection of comparable sales within the subject market area. The original source of the comparables is shown in tfle 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. ^ The Reproduction Cost is based on supplemented by the appraiser's knowledge of the bcal market. ^ Physical depreciation is based on the estimated effective age of the subject property. Functional and/or external depreciation, if present, is speciticalty 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 Mutiiplier 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 Grass Rent MuBiplier is based on prior and/or current analysis of prices and market rates for residential properties. ^ For income producing properties, actual rents, vacancies and expenses have been reported and anatyzed. They have been used to project future rents, vacancies and expenses. ® SUBJECT PROPERTY OFFERING INFORMATION According to Dubuque Multiple Listing Service the subject property: ® has not been offered for sale in the past: ^ 30 days ^ t year ®3 years. ^ is currently offered for sale for $ ^ was offered for sale within the past: ^ 30 days ^ 1 year ^ 3 years for $ ^ Ofering 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 tips addendum. ® SALES HISTORY OF SUBJECT PROPERTY According to Dubuque Citv Assessor's records the subject property: ® Has rat transferred ^ in the past twelve months. ®in the past thirty-six months. ^ in the past 5 years. ^ Has transferred ^ in the past twelve months. ^ in the past thirty-six months. ^ in the past 5 years. ^ AN prior sales which have occurred in itre past are listed bebw and reconciled to the appraised value, either in the body of the report or in the addenda. Date Sales Price Document # Seller Bu er ® FEMA FLOOD HAZARD DATA ® Subject property is not located in a FEMA Special Flood Hazard Area. ^ Subject property is located in a FEMA Special Flood Hazard Area. Zone FEMA Map/Panel # Map Data Nama of Community X 195180 00038 09!06/89 Cit of Dubu ue, Iowa ^ The community does not participate in the National Flood Insurance Program. ® The community does garticioate in the National Flood Insurance Program. ® It is covered by a regular program. ^ It is covered by an emer°encv program. Page 1 of 2 Form MPA3-'WinTOTAL" appraisal software by a la mode, inc. - f-800-ALAMODE File No. 20 707fro Pa a #12 ® CURRENT SALES CONTRACT ® The subject property is currently not under contract. ^ The contract and/or escrow instections were not available for review. The unavailability of the conUact is explained later in the addenda section. ^ The contract and/or escrow instmctions were reviewed. The tolbwing 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. tt 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, 'rf applicable, so that the final value cor~lusion is in compliance with the Market Value defined herein. ® MARKET OVERVIEW Include an explanation of current marketcandttionsandirends. 3-6 months is considered a reasonable marketing period for the subject property based on Dubuque Multiple Listing Service ® ADDITIONAL CERTIFICATION The Appraiser certifies and agrees that: (1) The anatyses, opinions and conclusions were developed, and this report was prepared, inconformity with the Uniform Standards of Professional Appraisal Practice ('USPAP"), except that the Departure Provision of the USPAP does not appy. (2) Their compensation is not contingent upon the reporting of predetermined value or direction in value that favors the cause of the cGen<, 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 (ENVIRONMENTAL) LIMITING CONDITIONS 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 signiTicant hazardous substances or detrimental environmental conditions which would affect the properly negatively unless otherwise stated in this report. tt is possible that tests and inspections made by a quaffied hazardous substance and environmental expert would reveal the existence of hazardous substances or detrimental environmerdal conditions on or around the property that would negatively affect its value. ^ ADDITIONAL COMMENTS ® APPRAISER'S SIGNATURE & LICENSE/CERTIFICATION c Appraiser's Sig ~ EifecGve Date 07/13/07 Date Prepared 07/13!07 Appraiser's Name (print) Bradley R. Brissev Phone # (563) 583-1737 State IA ^ License ®Certitication # CR01925 Tax ID # 42-1096446 ^ CO-SIGNING APPRAISER'S CERTIFICATION ^ The co-signing appraiser has personalty 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: ^ has not inspected the exterior of the subject property and all comparable sales listed in the report. ^ haTS~Dected the exterior of the subject property and all comparable sales listed in the report. ^ The report was Drepared by the appraiser under direct supervision of the co-signing appraiser. The co-signing appraiser accepts responsibility fa the contents of the report, including the value conclusions and the limiting conditions, and confirms that the certifications appy fuly 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-sigryng appraiser. ^ The co-signing appraiser's level of inspection, involvement in the appraisal process and certification are covered elsewfere in the addenda section of this appraisal. ^ CO-SIGNING APPRAISER'S SIGNATURE & LICENSE/CERTIFICATION Co-Signing Appraiser's Signature Effective Date Date Prepared Co-Signing Appraiser's Name (print) Phone # State ^ License ^ Cergfication # Tax ID # Page 2 of 2 Form MPA3 -'WinTOTAL' appraisal software by a la mode, inc. -1-800-ALAMODE FROM: Bradley R. Brissey Brissey Realty 3388 Kennedy Circe, Suite A Dubuque,lA 52002 Telephone Number: 563-583-1737 Fax Number: 563-582-2099 T0: Cily of Dubuque Housing Services 1805 Central Ave. Dubuque, IA 52001 Telephone Number: Fax Number: Akemate Number. E-Mail: INVOICE INVOICE Nt~ABER ~- "?(-, OATS ii'/13/0' REFERENCE Internal Order #: 200707fro Lender Case #: 200707fro Client File #: 200707fro Main File # on form: 200707fro Other File # on form: 200707fro Federal Tax ID: 42-1096446 Empbyer ID: DESCRIPTION Lender: City of Dubuque Housing Services Client: City of Dubuque Housing Services Purchaser/Borrower: Frommelt, Arthur Property Address: Lot 12 in Finks Sub. City: Dubuque County: Dubuque State: IA Zip: 52001 Legal Description: Lot 12 in Finks Sub. FEES AMOUNT Land Appraisal in Dubuque 170.00 Courtesy Discount -95.00 SUBTOTAL '. 75.00 PAYMENTS AMOUNT Check #: Date: Description: Check#: Date: Description: Check #: Date: Description: , SUBTOTAL TOTAL DUE $ 7s.oo Form NIVS -'WinTOTAL' appraisal software by a b mode, inc. -1-800-ALAMODE Brissey Really File No. 200707bi--T Paae #1 r "b h ~ ~ ~ ~ ~ !' ~ ~~ -s' ~." C ~" ~, ,, .~ ~ °6Ebc ^a^ 2 p g Y 9~ "+ y w ~ g * }. , .k. ' 3 r M&y ~ 4` S r V; s e 4 ~ W ~ ~ ~~ y .z ~ -, ~ .. .., 7.^ 3 k ., .~ o >~ m A ~ c _ F ~ c~ r v ~"'R c ~ ~ , ..,, o.T~ >ti, APPRAISAL OF REAL PROPERTY LOCATED AT: 625 Gillespie St Lots 13 & 14 in Finks Sub. Dubuque,lA 52001-1163 FOR: City of Dubuque Housing Services 1805 Central Ave. Dubuque,lA 52001 AS OF: 07!13/07 BY: Bradley R. Brissey Form GA1 - "WinTO7AL"appraisal software by a la mode, inc. -1-800-ALAMODE RI No. 200707bi1 Pa a #2 City of Dubuque Housing Services 1805 Central Ave. Dubuque,lA 52001 Re: Property: 625 Gillespie St Dubuque, IA 52001-1163 Borrower: Frommelt, Arthur File No.: In accordance with your request, we have appraised the above referenced property. The report of that appraisal is attached. The purpose of this appraisal is to estimate the market value of the property described in this appraisal report, as improved, in unencumbered fee simple title of ownership. This report is based on a physical analysis of the site and improvements, a locational analysis of the neighborhood and city, and an economic analysis of the market for properties such as the subject. The appraisal was developed and the report was prepared in accordance with the Uniform Standards of Professional Appraisal Practice. The value conclusions reported are as of the effective date stated in the body of the report and contingent upon the certification and limiting conditions attached. It has been a pleasure to assist you. Please do not hesitate to contact me or any of my staff'rf we can be of additional service to you. Sincerely, Bradley R. Brissey Appraiser Brissey Realty File No. 200707bi1 Pa a #3 200707gi1 Prnrorfv noecrinlinn UNIFORM RESIDENTIAL APPRAISAL REPART r;~e u.. ~„~~„~~:~ Pro Address 625 Gilles fie St Ci Dubu ue State IA Zi Code 52001-1163 Le al Descri flan Lots 13 8 14 in Finks Sub. Coun Dubu ue Assessor's Parcel No. 10-14-201-010 Tax Year 05!06 R.E. Taxes 788.00 S clot Assessments 0.00 Borrower Frommelt, Arthur Current Owner Frommelt, Arthur & Doroth OCCU ant: Owner Tenant Vacant Pro a ri his a raised Fee Si le Leasehold Project T e PUD Condominium HUD A on HOA Mo. Nei hborhood or Project Name Finks Sub. Ma Reference 20220 Census Tract 0011.02 Sale Price $ N/A Date of Sale N/A Descri Lion and amount of loan char a concessions to he aid b seller NIA Lender Client Cit of Dubu ue Housin Services Address 1805 Central Ave. Dubu ue IA 52001 A raiser Bradle R. Brisse Address 3388 Kenned Circle, Suite A, Dubu ue, IA 52002 Location Urban Suburban Rural Buifl up ^ Over 75% ®25.75% ^ Under 25% Growth rate ^ Rapid ®Stable ^ Slaw Predominant occupancy ®Owner PRirllefamilyhoACEg $(~) (yrs) 30 Low 5 Present landuse% One Tamily 70 2-4 Tamily Land use change ®Not likely ^ Likery ^ In process Property values ®Increasing ^Stable ^ Declining ^ Tenant 350 Hi h 150 MuIG-family 5 To: Demand/supply ®Shortage ^ In balance ^ Over supply ®Vacant (O 5%) " Predominant _;`~' Commercial 5 Marketin 6me Under 3 mos. 3-6 mos. Over 6 mos. vac. over 5% 95 60 Vacant 20 Note: Race and the racial composition of the neighborhood are not appraisal factors- Neighborhood boundaries and characteristics: The sub ect ro rt is bound b OI m is Hei hts Rd. to the North West 32nd St. to the South, Hi hwa 52 to the East, and Caroline St. 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 sub'ect ro ert is located in the Northern art of the Cit of Dubu ue in a residential nei hborhood. Amenities such as em to ment, schools sho in rote stores restaurants arks etc. are all located within 35 blocks of the sub'ect ro ert . Market conditions in the subject neighborhood (including support for the above conclusions related to the trend of property values, demand/supply, and marketing time --such as data on competitive properties for sale in the neighborhood, description of the prevalence of sales and financing concessions, etc.): See Attached Addenda. Project Information far PUDs (If applicable) - - Is the developer/builder in control of the Home Owners' Association (HOA)? Yes No Approximate total number of units in the subject project Approximate total number of units for sale in the subject project Describe common elements and recreational facilities: Dimensions 100' x 175' Feet Topography Slo es to Front Site area 17,500 SF Corner Lot ^ Yes ®No Specific zoning classification and description R-1 Sin le Famil Residential District Zoning compliance ®Legal ^ Legal nonconforming (Grandtathered use) ^ Illegal ^ No zoning Hi hest ~ best use as im roved: Present use Other use ex lain Size Lar e Shape Rectangular Drainage Avera e View Residential Utilities Public Other Off-sRe Improvements Type Public Private Electricity ® Street Asphalt ® ^ Gas ® Curb/gutter None ® ^ Water ® Sidewalk None ® ® Sanitary sewer ® Street lights None ® ^ Storm sewer N/A Alle None Comments (apparent adverse easements, encroachments, special assessments, slide areas, illegal or legal nonconfor known adverse easements encroachments s eclat assessments or slide areas on the sub'ec Landscaping Avera e Driveway Surface Gravel Apparent easements Utilities FEMA Special Fbod Hazard Area ^ Yes ®No FEMA Zone X Map Date 9/6/1989 FEMA Ma No. 19518000036 ming zoning use, etc.): There are no t ro ert .The sub ect ro ert a ears to be le al in zonin tom liance as a sin le Tamil dwellin . GENERAL DESCRIPTION No. of Units 1 EXTERIOR DESCRIPTION Foundation Rock/Concrete FOUNDATION Slab None BASEMENT Area Sq. Ft. 656 INSULATION Root ^ No. of Stories 2 Exterior Walls Wood Crawl Space None % Finished 0 % Ceiling ^ Type (Def./Att.) Detached Roof Surface As halt Shin le Basement Full Ceiling None Walls ^ Design (Style) 2 Sto Gutters & Dwnspts. Aluminum Sump Pump None Walls None Fbor ^ Existing/Proposed Existin Window Type Double Hun Dampness None Seen Fbor DirUconcrete None ^ Age (Yrs.) 140 StorrNScreens Combination Settlement None Seen Outside Entry No Unknown Effective A e rs. 35 Manufactured House No Infestation None Seen ROOMS Fo er Livin Dinin Kitchen Den Famil Rm. Rec. Rm. Bedrooms # Baths Laund Ot her Area S . Ft. Basement 656 Level 1 1 1 1 1 656 Level 2 2 384 ' Finished area above rode contains: 5 Rooms 3 Bedroom s 1 Bath s 1,040 S uare Feet of Gross Livi Area INTERIOR Materials/Condition Fbors Car etBTilelAv . HEATING Type H.Water KITCHEN EQUIP. Refrigerator ^ ATTIC None ^ AMENITIES Fireplace(s) # None ^ CAR STORAGE: None ^ Walls PlasterlAvera a Fuel Gas Range/Oven ^ Stairs ^ Patio Patio ® Garage # of cars TrirNFnish WoodlAvera a Condition Av . Disposal ^ Drop Stair ^ Deck None ^ Attached 1 Bath Floor Tile/Avera a Bath Wainscot Plastic/Avera a COOLING Central None Dishwasher ^ FaNHood ^ Scuttle ® Fbor ^ Porch Enclosed ® Fence None ^ Detached Buitt-In Doors 4 & 2 anel natural Other None Microwave ^ Heated ^ Pool None ^ Carport wood/Avera a Condition N/A Washer D er finished Drivewa 1 Additional features (special energy efficient items, etc.): Nos eclat ener efficient items were noted. Condition of the improvements, depreciation (physical, functional, and external), repairs needed, quality of construction, remodeling/additions, etc.: The windows are sin le one wood sash windows in avera a to fair condition. The kitchen features natural wood cabinets with natural wood flush doors in avera a condition. The basement is unfinished with rock and concrete wall foundation. The floor is dirt under the on final art of the house and concrete on the newer side. There is a natural as boiler, and a 100 am breaker box. 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.: There were no adverse environmental conditions resent in the im rovements on the site or in the immediate vicinit of the sub ect ro rt . wumc mau roan ro q9J PAGt 1 Ut'L Fannie Mae Form 1004 6/93 Form UA2 - "WinTO7AL' appraisal software by a la mode, inc. -1-800-ALAMODE File No. 2 707 it Pa #4 UNIFORM RESIDENTIAL APPRO1SO~ REPORT zoo7D79i1 vau~~rl~,~ co~rl~~ ESTIMATED SITE VALUE ...... _ .................. .... _ $ 22,000 ESTIMATED REPRODUCTION COST-NEW-OF IMPROVEMENTS: Dwelling 1,040 Sq. ft. @$ 81.50 = $ 84,760 656 Sq. Ft. @$ 21.80 14,301 Comments on Cast Approach (such as, source of cost estimate, site value, square foot calculation and for HUD, VA and FmHA, the estimated remaining economic life of the property): The costa roach to value is based on the Marshall and Swift Residential Cost Handbook with an EFP Patio = 6,573 estimated effective a e of 35 ears and a life ex ectanc of 55 Garage/Carport 336 Sq. Ft. @$ 29.04 9,757 ears. Total Estimated Cost New ................_ .........._ $ 115,391 Less Physical Functional External Depreciation 67 308 ~ _$ 67 308 Depreciated Value of Improvements ............ .............. _$ 48 083 'As-is' Value of Site Improvements ......... _...... _$ 2,500 INDICATEDVALUEBYCOSTAPPROACH .____...._ ..............._ _$ 72,583 ITEM SUBJECT COMPARABLE N0.1 COMPARABLE N0.2 COMPARABLE N0.3 625 Gillespie St Address Dubu ue _ _ 850 Clarke Dr. Oubu ue 168 Bryant St. Dubu ue 740 West Locust St. Dubu ue Proximi fo Sub'ect 1.24 miles SE 2 as macs SE 1 41 m ile s SE Sales Price _ ___ $ N/A _ $ 75,000 500 75 . _ _ $ 79 0 0 0 Pric Gross Livin Area $ ~ ___ 66.49 ~' _ _ , 67.41 ~ , . _ $ 60 21 ~ C Data and/or Verification Source DMLS Public Record DMLS Public Record DMLS Public Record . _ DMLS Public Record VALUE ADJUSTMENTS OESCRIPTION DESCRIPTION + - $ Ad'usL DESCRIPTION ; + - $ Ad'ust DESCRIPTION ; + - $ Ad'usL Sales Or Financing Concessions _ _ VA I . Conventional Conventional Date of Sal Ime 04/20/07 12!26/06 12120/06 Location Avera a Avera a Avera a Avera e Leasehold ee Sim le Fee Sim le Fee Sim le Fee Sim le ~ Fee Sim le Site 17 500 SF hill 9,340 SF 9 338 SF 21,004 SF View Residential Residential Residential Residential Desi n and A eal 2 Sto 2 Sto 11 /2 Sto 2 Sto Ouali of Constmction Avera a Avera a Avera a Avera e A e 140 122 107 107 Condition Avera a Avera a Avera e ~ Above Avera a -5 000 Above Grade Total ~ Bdrms~ Baths Total ~Bdrms ~ Baths Total ~Btlrms ~ Baths Total Bdrms ~ Baths Room Count 5~ 3 1 6~ 3~ 1 4 2~ 1 +1 500 5 3 1 Gross Livi Area 1,040 S . Ft. 1,128 S . Ft. -1,760 , 1,120 S . Ft. ~ -1 600 1,312 S . Ft. -5,440 Basement & Finished Rooms Below Grade 65610 None 552 / 0 None 672 / 0 None 656 / 0 None Functional Utili Avera a Avera a Avera a Avera e Hea6n Conlin GHW/None GFA/Central -1 500 GFA/Central -1 500 GFA/Central -1 500 Ener Efficient ttems None None None None Gara a Car ort 1 Attached fair 1 Detached 1 Detached 1 Detached Porch, Patio, Deck, Rre laces etc. EFP, Patio OFP, FP +500 OFP +2,000 Patio +3,000 Fence Pool etc. Net Ad'. total __ ~ +_ IR - i -2,760 IR + n _ $ 400 ~ + - : $ -8 940 Adjusted Sales Price of Cam arable $ 72,240 _ 75 900 , $ 70 060 Comments on Sales Comparison (inclutling the subject property's compatibility to the neighborhood, etc.): See attached addenda. ITEM SUBJECT COMPARABLEN0.1 COMPARABLE N0.2 COMPARABLE N0.3 Date, Price and Data N/A N/A N/A N/A Source, for prior sales N/A NIA N/A N/A within ear of a raisal Public Record Public Record Public Record Public Record Analysis of any current agreement of sale, option, or listing of subject property and analysis of any prior sales of subject acid comparables within one year of the date of appraisal: There is current! no a reement of sale o lion or listin oT the sub'ect ro ert .None of the com arable's were sold rior to one ear of the date of the a raisal. INDICATED VALUE BY SALES COMPARISON APPROACH .......... . . . . . $ 75 900 INDICATED VALUE BY INCOME APPROACH if A licable Estimated Market Rent N/A Mo. x Gross Rent Multi lier N/A This appraisal is made 'as is' subject to the repairs, alterations, inspections or conditions listed below subject to completion per plans & specifications. Conditions of Appraisal: The a raiser assumes that s stems such as heatin cooli electrtcit and lumbi are o erational and in nod workin order. Rnal Reconciliation: The sales com orison anal sis a roach is iven the most consideration in this anal sis, because it reflects the best current actions of bu ers and sellers in the sub'ect's market. The costa roach lends su ort. Sufficient rental data was not available to estimate a ross rent multi tier as the ma'orit of homes in the sub ect's market area are owner occu Ted. Hence the income a roach is not used The purpose of tfis 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 limiting conditions, and market value definition that are stated in the attached Freddie Mac Form 439/FNMA form 10048 (Revised 6193 ). I (WE) ESTIMATE THE MARKET VALUE, AS DEFINED, OF THE REAL PROPERTY THAT IS THE SUBJECT OF THIS REPORT, AS OF 07/13/07 (WHICH IS THE DATE OF INSPECTION AND THE EFFEFTIVE iE OF THIS REPORT) TO BE $ 75,900 APPRAISER: Bradley riss SUPERVISORY APPRAISER (ONLY IF REQUIRED): Si natur Signature ^ Ditl ^ Did Nof Name ns e ~ Name Inspect Property Date Report Signed 07!13/07 Date Re ort Si ned State Certification # CR01925 State IA State Certification # State c A Or State License # State Or State License # State ^~~ ~ ~^~~ ~~ w~~ rRet z ur z Fannie Mae Form 1004 G93 Form UA2 -'WinTOTAL" appraisal software by a la mode, inc. -1-800-ALAMODE File No. 2 707bi1 Pa e # UNIFORM RESIDENTIAL APPRAISAL REPORT MARKET DATA ANALYSIS l nese recent sales of properties are most similar and Droximate to subject and have been considered in the market analysis. The description includes a oar adjustment, reflecting market reaction to those Items of significant variation between the subl'ect and comparable properties. B a significard item in the comparable property is superior to, or more favomble than, the subject property, a minus (-) adjustment is made, thus reducing the indicated value of the sub1ject. It a significant item in the comparable is inferior to, or less favorable than, the subject property, a plus (+) adjustment is made, thus increasing the indicated value of the subject. fTEM SUBJECT COMPARABLE N0. 4 COMPARABLE N0. 5 COMPARABLE NO. 6 625 Gillespie St Address Dubu ue 1833 Clarke Dr. Dubu ue Pro>ami to Sub'ect + S5 milws sw Sales Price N/A _ 59.0 00 _ ~ g Pric Gross Livin Area ~ . _ 56.41 ~ _ __ __ $ rp rG Data and/or Ver'rfication Sources DMLS Public Record DMLS Public Record VALUE ADJUSTMENTS DESCRIPT_ ION DESCRIPTION + - $ Ad'ust. DESCRIPTION + - $ Ad st DESCRIPTION + - $ Ad ust. Sales or Financing Concessions Cash Date of Sal ime 05131!07 Location Avera a Avera e Leasehold ee Si le Fee Sim le Fee Sim le Site 17 500 SF hill 5,700 SF +7,000 View Residential Residential Desi n and A eal 2 Sto 1.5 Sto Duali of Constmction Avera a Avera e A e 140 94 Condition Avera a BelowAvera a +5,000 Above Grade Total ~Bdrms~ Baths Total Bdrms~ Baths ~ Total Bdrms~ Baths ~ Total ~Bdrms Baths i Room Count 5 ~ 3 ~ 1 4 ~ 2 ~ 1 ~ +1,500 Gross Livin Area 1 040 S . Ft 1 046 S . Ft. -120 S . Ft. ~ S . Ft Basement & Finished Rooms Below Grade 65610 None 637 / 0 None Functionall161' Avera a Avera e Heatin Conlin GHWlNone GFAIWindow Ener Efficient Items None None Gara a Car ort 1 Attached fair 1 Detached Porch, Patio, Deck, Fre laces etc. EFP, Patio OFP +2,000 Fence Pool etc. Net Ad'. total '~ZI + n - '. $ 15, 380 n_± I~_ - $ ~± n - ; Adjusted Sales Price of Com arable , 74,380 $ Date, Price and Data Source for prior sales within ear of a raisal N/A N/A Public Record N/A NIA Public Record _ -~ Comments: Market Data Analysis 6-93 Form UA2.(AC) -'WinTOTAL' appraisal software by a la mode, inc. -1-800-ALAMODE Sunnlemental Addandom Borrower Frommelt Arthur Pro Address 625 Gilles ie St City Dubu ue County Dubu ue State IA Tap Code 52001-1163 Client Cit of Dubu ue Housin Services Marketing Conditions Sales volume for April is up 41 °/ from the previous April, and sales volume for March is up 20% from the previous March. First quarter sales were up 22% from the previous 1st quarter. Sales volume for 2006 was up 13% from sales volume for 2005. Sellers are paying between 5.5% and 7.5% interest depending on the length of the loan and amount of points paid. Zoning Classification and description The R-1 Single Family District is the most restrictive residential district. The principal use of land in this district is for low density single-family dwellings and related recreational, religious and educational facilities normally required to service the residents within the district. Low density residential areas shall be protected from higher density residential development and from the encroachment of incompatible uses. • URAR :Sales Comparison Analysis - Summary of Sales Comparison Approach All four comparable's were used in the valuation process. Comparable sale no. 1 was adjusted for having more SF of living area, central air, and there is a fireplace and open porch instead of an enclosed porch and patio. Comparable sale no. 2 was adjusted for having only two bedrooms, more SF of living area, central air, and an open porch instead of an enclosed porch and patio. Comparable sale no. 3 was adjusted for being in better overall condition, (which includes: new flooring, carpeting, interior paint, and newer cabinets), for having more SF of living area, central air, and no enclosed porch. Comparable sale no. 4 was adjusted for having a lower valued lot, for being in worse overall condition, (which includes: flooring, cabinets, fixtures, and paint in worse condition), for having only two bedrooms, more SF of living area, and an open porch instead of an enclosed porch and patio. Form TADD -'WinTOTAI' appraisal software by a la mode, inc. - 1-800-ALAMODE Subject Photo Page File No. 200707bi1 Paae #7 Borrower Frommelt, Arthur Property Address 625 Gilles ie St City Dubu ue Coun Dubu ue State IA Zip Code 52001-1163 Client Cit of Dubu ue Housin Services Subject Front 625 Gillespie St Sales Price N/A Gross Living Area 1,040 Total Rooms 5 Total Bedrooms 3 Total Bathrooms 1 Location Average View Residential Site 17,500 SF(hill) Quality Average Age 140 ~~s ~ ^~ Subject Rear ~~ ,~ ~' it ~;~+ r~~ .~ ~ _ „~ '* ~' , , ~ - °~ F ~ .. ~I .. x. <. Jas ~ x ~ ~< ~a ""-%/~`,x:..:: as ~ ~ .ts .e ° - ,~,.~..~ - ,~" o- :r a 3€ Subject Street Form PIC3x5.SR - "WinTOTAL" appraisal software by a la mode, inc. -1-800-ALAMODE PHOTOGRAPH ADDENDUM File No. 200707bi1 Pa e #8 Borrower Frommelt, Arthur Property Address 625 Gilles ie St City Dubu ue County Dubu ue State IA Zip Cotle 52001-1163 Client Cit of Dubu ue Housin Services left side view Right side view Attached Garage Farm GPIC3X5 - "WinTOTAL' appraisal software by a la mode, inc. -1-800-ALAMODE PHOTOGRAPH ADDENDUM File No. 200707bi1 Pa e #9 Borrower Frommelt, Arthur Property Address 625 Gilles ie St City Dubu ue County Dubu ue State IA Lp Code 52001-1163 Client Cit of Dubu ue Housin Services Shed on property Misc. materials on property. Form GPIC3X5 - "WinTOTAL" appraisal soRware by a la mode, inc. -1-800-ALAMODE Comparable Photo Page File No. 200707bi1 Pa e #10 Borrowef Frommelt, Arthur Properly Address 625 Gilles ie St City Dubu ue Coun Dubu ue State IA Zip Code 52001-1163 Client Cit of Dubu ue Housin Services Comparable 1 850 Clarke Dr. Prox. to Subject 1.24 miles SE Sale Price 75,000 Gross Living Area 1,128 Total Rooms 6 Total Bedrooms 3 Total Bathrooms 1 Location Average View Residential Site 9,340 SF Quality Average Age 122 Comparable 2 168 Bryant St. Prox. to Subject 2.85 miles SE Sale Price 75,500 Gross Living Area 1,120 Total Rooms 4 Total Bedrooms 2 Total Bathrooms 1 Location Average View Residential Site 9,338 SF Quality Average Age 107 Comparable Photo Page File No. 200707bi1 Pa e #1 t Borrower Frommelt, Arthur Property Address 625 Gilles ie St City Dubu ue County Dubu ue State IA Zp Code 52001-1163 Client Cit of Dubu ue Housin Services Comparable 4 1833 Clarke Dr. Prox. to Subject 1.55 miles SW Sale Price 59,000 Grass Living Area 1,046 Total Rooms 4 Total Bedrooms 2 Total Bathrooms 1 Location Average View Residential Site 5,700 SF Quality Average Age 94 Comparable 5 Prox. to Subject Sale Price Gross Living Area Total Rooms Total Bedrooms Total Bathrooms Location View Site Duality Age Comparable 6 Prox. to Subject Sale Price Gross Living Area Total Rooms Total Bedrooms Total Bathrooms Location View Site Duality Age Farm PIC3x5.CR -'WinTOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE Building Sketch (Page - 11 File No. 200707bi1 Pa e #12 Borrower Frommelt, Arthur Propert Address 625 Gilles ie St City Dubu ue County Dubu ue State IA Zip Code 52001-1163 Client Cit of Dubu ue Housin Services za.o• -- za.o' CL B a th CL B-~'s CL - ~~}'~~''~ \ I l~ CL ~ /~ ~ ` \ ' \ / 9 I JJJ Living Room 13' x 15' Bedroom Kitchen Bedroom 9' x 12' i6' x 10' Bedroom 13' x 13' ' ' ~ A O~ 9 x9 41_0' 24 0' i o' EFP . ~ Pat+o d ~ Second Floor 22 0' ~ s~rrn erape. rvm __ " 970' _.,=i Comments: Code AREA CALCULATIONS SUMMARY Description Size Net Totals GLAl First Floor 656.00 656.00 GLA2 Second Floor 394.00 384.00 P/P EFP 154.00 Patio 153.00 307.00 GAR Garage 336.00 336.00 TOTAL LIVABLE (rounded) 1040 LIVING AREA BREAKDOWN Breakdown Subtotals First Floor 16.0 x 61.0 656.00 Second Floor 16.0 x 24.0 394.00 2 Calculations Total (rounded) 1040 Form SKT.BIdSkI -'WinTOTAL' appraisal software by a la mode, inc. -1-800-ALAMODE Plat Map File No. 200707bi1 Pa e #13 Borrower Frommelt, Arthur Property Address 625 Gilles ie St City Dubu ue Counry Dubu ue State IA Zip Code 52001-1163 Client Cit of Dubu ue Housin Services I f r "' "- P ~_ f _ ,$ t ,f : jf :' ~,'~; r~~ ~ I '~~' '° ~ ~~ ~x ~:_ t _,~ ~ ~ x-'~ ~ ... . x+., t ~ . ~ _ b ~. t .f; ~,. t~ ^-- ~.. ti'"~t. P ~~ 1 f ~~ ~ >,~ l ~, -~ _ ~ ~ ° ~ ~ *~; .s., -~ / ~ :_ Sub}ect r~ ~'~ .spa¢ ~ ~ ~ ~ 625 Gillespie St ~~ ~ ~.. ~ ~ ~ t~" ,~„ ~ti tpr°' ~ r Form MAP.PLAT - •WinTOTAL° appraisal software by a la made, inc. -1-800-ALAMODE Location Map File No. 200707bi1 Pa e #14 Borrower Frommelt, Arthur Property Address 625 Gilles ie St Cit Dubu ue County Dubu ue State IA Zip Cade 52001-1163 Client Cit of Dubu ue Housin Services farm MAP.LOC - •WinTOTAL" appraisal software by a la mode, inc. -1-800-ALAMODE Flood Man File No. 200707bi1 Pa e #15 Borrower Frommelt, Arthur Property Address 625 Gilles ie St City Dubu ue Coun Dubu ue State IA Zip Code 52001-1163 Client Cit of Dubu ue Housin Services Prepared for: InterF~ood . Brissey Realty ~' ~° '~"^'~~ 625 Gillespie St wwwv.triterflood.c~n~ • 1-804-252-6G33 Dubuque, IA 52001-1163 ZONE X com. Form MAP.FIood - "WinTOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE File No. 707bi1 Pa #16 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 pmdertlly, knowledgeably and assuming tfre 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 seller to buyer under conditions whereby: (1) buyer and seller are typicalty motivated; (2) both parties are well informed or well advised, and each acting in what he considers fws own best interest; (3) a reasonable time is albwed Tor 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 compambles must be made for special or creative financing or sales concessions. No adjustments are necessary for those costs which are rarmalty paid by sellers as a result of tradition or law in a market area; these costs are readily identifiable sirx;e 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. Arty adjustment should not be calculated on a mechanical dollar for doNar 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 dirr~nsions of the improvements and the sketch is included onty 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, express 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 presence 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 unapparerd 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 aril makes no guarantees or warranties, express ar 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 rat an expert in the field of environmental hazards, the appraisal report must rat 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 et 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 wtuch 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, a 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 cotlection 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 t of 2 Fannie Mae Form 10048 6.93 Brissey Realty Form ACR - "WinTOTAL" appraisal software by a la mode, inc. -1.800-ALAMODE File N . 2 7 7bil P #17 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 anaysis and have made a dollar adjustment when appropriate 1o reflect the market reaction to those items of significant variation. M a significant item in a comparable property is superior to, or more favorable than, the subject properly, I have made a negative adjustment to reduce the adjusted sales price of the comparable and, it a significant item in a comparable property is inferior to, or less favorable than the subject property, I have made a positive adjustment to increase the adjusted sales price of the comparable. 2. I 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 knowingry 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 tme and correct. 3. I stated in the appraisal report onry 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 to 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 comp~tely, my anaysis 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. I 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 [he appraised value of the property. 6. I 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 resufl, 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 spectlic valuation, or the need to approve a specific mortgage loan. 7. I 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. I 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 anaysis 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. I personally prepared all conclusions and opinions about the real estate that were set forth in the appraisal report. tf 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, tl an unauthorized change is made to the appraisal report, I will take no responsibility for it. SUPERVISORY APPRAISER'S CERTIFICATION: b 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 whh the statements and conclusions of the appraiser, agree to be bound by the appraiser's certiticaiions numbered 4 through 7 above, and am taking full responsibility for the appraisal and the appraisal report. ADDRESS OF PROPERTY APPRAISED: 625 Gillespie St Dubuque IA 52001-1163 APPRAISER: ~ SUPERVISORY APPRAISER (only ii required): SignatureB ~ _ Signature: ~ rt Yr~'eF Name: a is v Name: Date Signed: 07/13/07 Date Signed: State Certification #: CR01925 State Certification #: or State License #: or State License #: State: IA State: Expiration Date of Certification or License: 6/30/2008 Expiration Date of Certification or ^ Did ^ Did Not Inspect Property Freddie Mac Form 439 6-93 Page 2 of 2 Fannie Mae Form 10048 6-93 Form ACR - "WinTOTAL' appraisal software by a la mode, inc. -1-800-ALAMODE MULTI-PURPOSE SUPPLEMENTAL ADDENDUM FOR FEDERALLY RELATED TRANSACTIONS Brissey Realty Borrower/Client Frommelt Arthur Pro a Address 625 Gilles ie St Ci Dubu ue Coun Dubu ue State IA Zi Code 52001-1163 Lender Cit of Dubu ue Housin Services This Multi-Purpose Supplemental Addendum for Federaly Related Transactions was designed to provide the appraiser with a convenient way to comply with the 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. ^ PURPOSE & FUNCTION OF APPRAISAL Tice 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. ® EXTENT OF APPRAISAL PROCESS ® 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 corylarables 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. ® The Reproduction Cost is based on Marshall and 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 specificaly addressed in the appraisal report or other addenda. In estimating the site value, the appraiser has relied qn 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 Grass Rent Multiplier is based on prior and/or current analysis of prices and market rates for residential properties. ^ For income producing properties, actual rents, vacancies and expenses have been reported and anayzed. They have been used to project future rents, vacancies and expenses. ® SUBJECT PROPERTY OFFERING INFORMATION According to Dubuque Multiple Listing Service the subject property: ® has not been gffered for sale in the past: ^ 30 days ^ t year ®3 years. ^ is currently offered for sale for $ ^ was offered for sale within the past: ^ 30 days ^ 1 year ^ 3 years for $ ^ 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. ® SALES HISTORY OF SUBJECT PROPERTY According to Dubuque City Assessor's records the subject property: ® Has rat transferred ^ in the past 1weNe months. ®in the past thirty-six months. ^ in the past 5 years. ^ Has transferred ^ in the past twelve months. ^ in the past thirty-six months. ^ in the past 5 years. ^ All prior sales which have occurred in the past are listed bebw and reconciled to the appraised value, either in the body of the report or in the addenda. Date Sales Price Document # Seller Bu er ® FEMA FLOOD HAZARD DATA ® Subject prgperty is not located in a FEMA Special Flood Hazard Area. ^ Subject property is located in a FEMA Special Flood Hazard Area. Zone FEMA Map/Panel # Map Date Name of Community X 19518000036 9!6/1989 Cit of Dubu ue, Iowa ^ The community does ngt participate in the National Fbod Insurance Program. ® The community does participate in the National Flood Insurance Program. ® It is covered by a rep la program. ^ It is covered by an a program. Page 1 of 2 Form MPA3-'WinTOTAL' appraisal software by a la mode, inc. -1-800-ALAMODE ® CURRENT SALES CONTRACT ® The subject property is curve b not under contract. ^ The contract and/or escrow instmctions were not available for review. The unavailability of the contract is explained later in the addenda section. ^ The contract and/or escrow instmctions were reviewed. The folowing summarizes the contract: Contract Date Amendment Date Contract Price Seller ^ The contract indicated that personal property was not included in the sale. ^ The cornract indicated that personal property was included. tt 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 conract indicated tire following concessions or incentives: ^ tt concessions or incentives exist, the comparables were checked for similar concessions and appropriate adjustments were made, fl applicable, so that the final value conclusion is in compliance with the Markel Value defined herein. ® MARKET OVERVIEW Include anexpWnationoicurrentmarketconditiansandtrends. 0-3 months is considered a reasonable marketing period for the subject property based on Dubuque Multiple Listing Service statistics ® ADDITIONAL CERTIFICATION The Appraiser certifies and agrees that: (1) The analyses, opinions and conclusions were developed, and this report was prepared, in conformity with the Uniform Standards of Professional Appraisal Practice ('USPAP'), except that tlw Departure Provision of the USPAP does not apply. (2) Their compensation is not contingent upon the reporting of predetermined value or direction in value that favors the cause of the cliern, 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 (ENVIRONMENTAL) LIMITING CONDITIONS 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 apparern significant hazardous substances or detdmenal environmental conditions which would affect the property negatively unless otherwise stated in this report. his possible that tests and inspections made by a qualified hazardous substance and environmenal expert would reveal the existence of hazardous substances or detrimental ernironmenlal conditions on or around the property that would negatively affect its value. ® ADDITIONAL COMMENTS Since this home was built rior to 1978 there is a ossibilit that the dwellin contains lead-base aint. For more information re ardin the don ers of lead-base aint, contact the De artment of Housin and Urban Develo ment. ® APPRAISER'S SIGNATURE & LICENSE/CERTIFICATION c Appraiser's Siggttt~Y~~+1+ ~ Effective Date 07/13/07 Date Prepared 07/13/07 Appraiser's Name (print) Bradlev R. Brissev Phone # (563) 583-1737 State IA ^ License ®Cert'rfication # CR01925 Tax ID # 42-1096446 ^ CO-SIGNING APPRAISER'S CERTIFICATION ^ The co-signing appraiser has oersonal(y 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 cornents 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: ^ 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 otthe 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. ^ 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. ^ CO-SIGNING APPRAISER'S SIGNATURE & LICENSE/CERTIFICATION Co-Signing Appraiser's Signature Effective Date Date Prepared Co-Signing Appraiser's Name (print) Phone # State ^ License ^ Certification # Tax ID # Page 2 of 2 Form MPA3 -'WinTOTAI' appraisal software by a la mode, inc. -1-800-ALAMODE FROM: Bradley R. Brissey Brissey Realty 3388 Kennedy Circle, Suite A Dubuque,lA 52002 Telephone Number: 563-583-1737 Fax Number: 563-582-2099 T0: City of Dubuque Housing Services 1805 Central Ave. Dubuque,lA 52001 Teleptone Number: Fax Number: Alternate Number. E-Mail: INVOICE ~Ilr01CE NUAiBER ~'gil -- DATE -- REFERENCE Internal Order #: 200707gi1 Lender Case #: 200707bi1 Client File #: 200707gi1 Main Fle # on form: 200707 bit Other File # on form: 200707gi1 Federal Tax ID: 42-1096446 Employer ID: DESCRIPTION Lender: City of Dubuque Housing Services Client: City of Dubuque Housing Services Purchaser/Borrower: Frommelt, Arthur Property Address: 625 Gillespie St City: Dubuque County: Dubuque State: IA Zip: 52001-1163 Legal Description: Lots 13 & 14 in Finks Sub. FEES AMOUNT URAR in Dubuque 270.00 Courtesy Discount -120.00 SUBTOTAL 1so.oo PAYMENTS AMOUNT Check #: Date: Description: Check #: Date: Description: Check#: Date: Description: , SUBTOTAL TOTAL DUE $ 150.00 form NNS - "WinTOTAL' appraisal software by a la mode, inc. -1-800-ALAMODE Brissey Realty Flle No. 200707fr Pa a #1 APPRAISAL OF REAL PROPERTY LOCATED AT: Lot 15 in Finks Sub. Lot 15 in Finks Sub. Dubuque,lA 52001 FOR: City of Dubuque Housing Services 1805 Central Ave. Dubuque,lA 52001 AS OF: 07/13!07 BY: Bradley R. Brissey Form GA6 - "WinTOTAL" appraisal software by a la mode, inc. -1.800-ALAMODE City of Dubuque Housing Services 1805 Central Ave. Dubuque,lA 52001 Re: Property: Lot 15 in Finks Sub. Dubuque,lA 52001 Borrower: Frommelt, Arthur File No.: In accordance with your request, we have appraised the above referenced property. The report of that appraisal is attached. The purpose of this appraisal is to estimate the market value of the property described in this appraisal report, as improved, in unencumbered fee simple title of ownership. This report is based on a physical analysis of the site and improvements, a locetional analysis of the neighborhood and city, and an economic analysis of the market for properties such as the subject. The appraisal was developed and the report was prepared in accordance with the Uniform Standards of Professional Appraisal Practice. The value conclusions reported are as of the effective date stated in the body of the report and contingent upon the certification and limiting conditions attached. It has been a pleasure to assist you. Please do not hesitate to contact me or any of my staff fi we can be of additional service to you. Sincerely, A C Bradley R. Brissey Appraiser LAND APPRAISAL REPORT 2oo707fro Filc Nn ~nn~n~r.~ Borrower Frommelt, Arthur Census Tract 0011.02 Map Reference 20220 Property Address Lot 15 in Finks Sub. City Dubuque County Dubuque State IA Zp Code 52001 _ Legal Description Lot 15 in Finks Sub. Sale Price $ N/A Date of Sale N/A Loan Term N/A yrs. Property Rights Appraised ®Fee ^ Leasehold ^ De Minimis PUD Actual Real Estate Taxes $ 114.00 (yr) Loan charges to be paid by seller $ N/A Other sales concessions N/A Lender/Client City of Dubuque Housing Services Address 1805 Central Ave., Dubu ue, IA 52001 Occupant Vacant Appraiser Bradley R. Brissey Instructions to Appraiser None Noted. Location Urban Suburban Rural Good Avg. Fair Poor Suitt Up ^ Over 75% ®25% to 75% ^ Under 25% Employment Stability ® ^ ^ ^ Growth Rate ^ Fulty Dev. ^ Rapid ®Steady ^ Slow Convenience to Employment ^ ® ^ ^ Property Values ®Increasing ^ Stable ^ Declining Convenience to Shopping ^ ® ^ ^ Demand/Supply ®Shortage ^ In Balance ^ Oversupply Convenience to Schools ^ ® ^ ^ Marketing Time ®Under 3 Mos. ^ 4-6 Mos. ^ Over 6 Mos. Adequacy of Public Transportation ^ ® ^ ^ Present Land Use 70% 1 Family 5% 2-4 Family _% Apts. _% Condo 5% Commercial Recreational Facilities ^ ® ^ ^ % Industrial 20% Vacant _% Adequacy of Utilities ® ^ ^ ^ Change in Present Land Use ®Nat Likey ^ Likely (') ^ Taking Place (") Property Compa6biGty ^ ® ^ ^ (') From To Protection from Detrimental Conditions ^ ® ^ ^ Predominant Occupancy ®Owner ^ Tenant 5 % Vacant Police and Fire Protection ® ^ ^ ^ Single Family Price Range $ 8 000 to $ 35,000 Predominant Value $ 15,000 General Appearance of Properties ^ ® ^ ^ Single Famiy Age N/A yrs. to N/A yrs. Predominant Age NIA yrs. Appeal to Market ^ ® ^ ^ Comments including those factors, favorable or unfavorable, affecting marketability (e.g. public parks, schools, view, noise):Amenities such as em Io ment sho in schools, rote stores restaurants, etc. are all located within a cou le of miles from the sub'ect lot. Dimensions 50' x 165' Feet = 8,250 Sq. ft. or Acres Corner Lot Zoning classification R-1 Single Family Residential District Present Improvements ®do ^ do not conform to zoning regulations Highest and best use ®Present use Other s eci Public Other (Describe) OFF SITE IMPROVEMENTS Topo Slo es to front Elec. ^ None Street Access ®Public ^ Private Size Avera e Gas ^ None Surface Asphalt ShapeRectan ular Water ^ None Maintenance ®Public ^ Private Vew Residential San. Sewer ^ None ^ Storm Sewer ^ Curb/cutler Drainage Average ^ Underground Elect. & Tel. ^ Sidewalk SVeel Li hts Is the property located in a HUD klentified Special Flood HazaM Area? ®No ^ Yes Comments (favorable or unfavorable including any apparent adverse easements, encroachments, or other adverse conditions): There are no known adverse easements, encroachments, or other adverse conditions located on the sub ect lot. Utilities for the vacant lot are available at the street. The undersigned has recited three recent sales of propeNes most similar and proximate to subject and has considered these in the market analysis. The description includes a dollar adjustment reflecting market reaction to those items of significant varia0on between the subject and comparable propedies. If 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 Ne comparable is inferior to a less favorable than the subject property, a plus (+) adjustment is made thus increasing the indicated value of the subject. ITEM SUBJECT PROPERTY COMPARABLE N0.1 COMPARABLE N0.2 COMPARABLE N0.3 Address Lot 15 in Finks Sub. 1110 Roosevelt Lot 1 Carr Add. #2 Lot 95 Finley Waples & Burtons Dubu ue ____ Dubu ue Dubu ue Dubu ue Proximi t0 Sub'eCt r 53 mitwc NF 4.08 miles SE 2.32 miles SW Sales Price $ NU. - ____ r $ 15 000 __ $ 15,000 ---- $ 15,000 Price __ ___ Data Source Public Record DMLS/Public Record UMLS/Public Record Public Record Date of Sale and DESCRIPTION DESCRIPTION + - Ad'ust. DESCRIPTION + - Ad'ust DESCRIPTION + - $ Ad'ust. TimeAdjusbnent N/A 12/11/06 03/07107 05/10/07 Location Avera a Avera a Avera a Avera e Sit iew 8 250 SF 11 250 SF 10 530 SF 8 410 SF Sloe Slo es to front, Bluff Sli ht Sloe Sli ht Sloe Sli ht Slo e Utilities At street At Street At Street At Street Sales or Financing Concessions N!A Cash Unknown ~ Unknown ' Net Ad'. otal - I~ - : $ ~I + f~ + n - ' $ ~I + I - ; Indicated Value _ _ _ _ of Subject 15,000 15,000 $ 15,000 Comments on Market Data: All tom arable's were similar in size and accessibil d to unltues. Comments and Conditions of Appraisal: This appraisal is performed with the condition of the vacant lots "as is" with no improvements or future im rovements. Final Reconciliation: All of the lots that were used as tom arable's were similar to the sub'ect in terrain. The a raiser feels that the tom arable's used were the best available. 1 ESTIMATE THE MARKET VAIUE, AS DEFQIEO, SUBJECT PROPERTY AS OP 07/13/07 to be $ 15 000 radley~3~~ ^ Did ^ Did Not Physicalry Inspect Property Appraisers Review Appraiser it a plicable p cnt Brissey Realty Form LND - "WinTO7AL' appraisal software by a la mode, inc. -1-800-ALAMODE LAND APPRAISAL REPORT FI N . 0 707iro P #4 MARKET DATA ANALYSIS 200707fro File No. 200707fro ITEM SUBJECT PROPERTY COMPARABLE N0. 4 COMPARABLE N0. 5 COMPARABLE N0. 6 Address Lot 15 in Finks Sub. Dubu ue 2420 Elm St. Dubu ue Proximi to Sub'ect 1 ~8 miles SE _ _ Sales Price N'-+ 15 000 $ _ Price ___ _ Data Source Public Record Public Record Date of sale and DESCRIPTION DESCRIPTION + - $ Ad'ust. DESCRIPTION + - Ad'ust. DESCRIPTION + - Ad ust. Time Ad'ustrnent N/A 10/27/06 ' Location Avera a Avera e Sit iew 8,250 SF 9 000 SF Sloe Slo es to front Bluff Sli ht Slo Utilities At street At Street Sales or Financing Concessions N/A Unknown ' Net Ad'. otal Indicated Value of Sub'ect I] + ^ - : $ $ 15,000 n + ~- , $ I $ n + n Comments: Brissey Realty Form LND.~AC) - "WinTOTAL' appraisal software by a la made, inc. -1-804ALAMODE File No. 20 707fr Pa e # Supplemental Addendum FileNo.200707fro Borrower Frommelt Arthur Propert Address Lot 15 in Finks Sub. Ci Dubu ue Coun Dubu ue Sfate IA Zi Code 52001 Client Cit of Dubu ue Housin Services Zoning Classification and description The R-1 Single Family District is the most restrictive residential district. The principal use of land in this district is for low density single-family dwellings and related recreational, religious and educational facilities normally required to service the residents within the district. low density residential areas shall be protected from higher density residential development and from the encroachment of incompatible uses. Form TADD -'WinTOTAL' appraisal software by a la mode, inc. -1-800-ALAMODE Plat Map Borrower Frommelt, Arthur Prope Address Lot 15 in Finks Sub. City Dubu ue Coun Dubu ue State IA Zp Code 52001 Client Cit of Dubu ue Housin Services j ~` j r' ..~, ~ _ ,..-. ~ j a ~ ~- ~ ~ ~ t~ ~~ ~ ~ ~ ,,. '~ ~ r ~_ .,,,_ ?' Subject ~"'"~-~,~.~ Lot 15 in Finks Sub. ~' ~ "'^^-~ `""'=° ~ - "~ _ l '~,, z Form MAP.PLAT -'WinTOTAL' appraisal software by a la mode, inc. -1-800-ALAMODE Location Map File No. 2 7 7fro Pa e #7 Borrower Frommelt, Arthur Prope Address Lot 15 in Finks Sub. Ci Dubu ue County Dubu ue State IA Z Code 52001 Client Cit of Dubu ue Housin Services ~. - Ma~Fnini A Ee~ve ~` ~ ~ ~' ~ ~ O~ ~~ S ~ ~ FHuM W a 6derm+fC -~-.. ..~, r,m sw ~" rn Dian Cx 'Ay a,. ~y~sa. ~ : ~ ~ .... ... a' ~ ~ --' ' .~. „~° _ -.. ~ te , o i9n=pie o, 4 s r ~'m P`~ U ~^ 6~V ~ ~ _ b _ g.. V'aaprr { ~ `~ ~ GQ-' - Q m ,_ d H `eh d D {~~~ ~ ~~ ~ Walkar SI ~ ^" f4amny° '~ - v m m a.-. oo r d - fi y ' ~ ' a "~y ~ °p ~ ~. Jenae~ryy + Q~ d ~+ 1 9 '>~ ~ ~ ~ucen h onY d~ __p s:. ~ [ems .we $ a ors ~w ~ ~~s 0 ~~ ONeill SI ~ 6 0 9 6 DA° iw.1..`. :~.i ~: ~s,~ds ~n ~,' ~ ~ , ~` E ~ ~ • ~' c~ b - ~~ ~~ ,y~ a~ ~ o S~in~ Va11eY.. 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Cit Dubu ue County Dubu ue State IA Lp Code 52001 Client Cit of Dubu ue Housin Services Prepared for: It'1~~'C-~~,~~~ ,~-~~ Brissey Realty '_} ~'~ ' ~~~ 625 Gillespie St www.irlterflood.cam . 1-800-252-6633 Dubuque, IA 52001-1163 ZONE X ~~`~ ' i ._ , ~~ -~.~-~_ off" "~-'~~-~ ~ FLOODSCAPE __. ,z ~ I~ ~ ~ Food Marards Map j Ri I •~ Map Number -119518000038 f ETfective Date I ~. ~ September 6,1989 ~~ j fi ,~ I ,' ~ For more information about ! - ~. ~° flood zones and flood ~ :~~iu insurance, contact: i I I '~ r •,I ~~ ~ QDD -~1t2D __ 1f+00 ~ ~ ~#i Powered by FloodSouroe -- ~ ' .___._ ~ ;I~il 877.77.FLOOD I, .~ WWW.iloodsource.com J .. ©1999-2005 SouroeProse andlor Flood Source Corporations. All rights reserved. Patertts 6,931,328 and 0,678,815. Other patents pending. For Info: info~Floodsouroe.com. Form MAP.FIood -'WinTOTAL` appraisal software by a la mode, inc. -1-800-ALAMODE Fle No. 200707fr Pa # 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 pmdenlly, knowledgeably and assuming the price is not affected by undue sli~lus. Implicit in this definition is tine consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typicalty motivated; (2) both parties are weU informed or well advised, and each acting in what he considers Ms own best interest; (3) a reasonable time is albwed 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 arryone 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 normalty paid by sellers as a result of tradition or law in a market area; these costs are readiry 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 compadsons to financing terms offered by a third party institutional lender that is not already involved in the property or transaction. Arty adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or corxession but the dollar amount of any adjusbnent 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 folbwing 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 ft. The appraiser assumes that the title is goad 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 oNy to assist the reader of the report in visualizing 8ie 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, express or implied, regarding this determination. 4. The appraiser will not give testinrony 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. Tire appraiser has noted in the appraisal report any adverse conditions (such as, needed repairs, depreciation, the presence of hazardous wastes, to>oc substances, etc.) observed during the inspection of the subject property or that he or she became aware of during the normal research irnolved in performing the appraisal. Unless otherwise stated in the appraisal report, tfre appraiser has no knowledge of any Mdden 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, express 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 whetfrer such conditions exist. Because tine 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. Tire appraiser will not disclose tfre 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 wdtten consent before the lender/client specified in the appraisal report can distribute the appraisal report Qncluding 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 tfre borrower; the mortgagee or its successors and assigns; the mortgage insurer; consultants; processional appraisal organizations; any state or tetleralry 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 ony to data coNection 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 relatior>s, news, sales, or otfrer media. Freddie Mac Form 439 6-93 Page 1 of 2 Fannie Mae form 10046 6-93 Brissey Realty form ACR -'WinTOTAL' appraisal software by a la mode, inc. -1-800-ALAMODE Fil No. 2007 7fr Pa a #1 APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that: t. 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 anaysis and have made a dollar adjustment when appropriate to reflect the market reaction to those items of significard variation. fl a significant item in a comparable property is superior to, or more tavaable than, the subject property, I have made a negative adjustmerd 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 property, I have made a positive adjustment to increase the adjusted sales price of the comparable. 2. I 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 knowirgry 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. I stated in the appraisal report only my own personal, unbiased, and professional anarysis, opinions, and conclusions, which are subject onry to the contingent and limiting conditions specified in this form. 4. I have no present or prospective interest in the property that is the subject to this report, and I have no present or prospective personal interest or bias with respect to the participants in the transaction. I tlitl not base, either partialry 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. I 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. I 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 resuh, 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. I performed this appraisal in coniorrrwty 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. I have personalty 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. 1 have also commented about the effect of the adverse conditions on the marketability of the subject property. 9. I personally prepared all conclusions and opinions about the real estate that were set forth in the appraisal report. tt 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 auttarizetl 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 (or it. SUPERVISORY APPRAISER'S CERTIFICATION: It a supervisory appraiser signed the appraisal report, he or she certifies and agrees that: I directry 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 certifications numbered 4 through 7 above, and am taking full responsibility for the appraisal and the appraisal report. ADDRESS OF PROPERTY APPRAISED: Lot 15 in Finks Sub., Dubuque IA 52001 APPRAISER: ~ SUPERVISORY APPRAISER (only if required): Signature: ~rs~ ~ Signature: Name: is Name: Date Signed: 07/13/07 Date Signed: State Certification #: CR01925 State Certification #: or State License #: or State License #: State: IA State: Expiration Date of Certification or License: 6!30/2008 Expiration Date of Certification or License: ^ Ditl ^ Did Not Inspect Property Freddie Mac Form 439 6-93 Page 2 of 2 Fannie Mae Form 10048 6-93 Form ACR -'WinTOTAL' appraisal software by a la made, inc. -1-800-ALAMODE MULTI-PURPOSE SUPPLEMENTAL ADDENDUM FOR FEDERALLY RELATED TRANSACTIONS Brissey Realty Borrower/Client Frommelt Arthur Pra a Address Lot 15 in Finks Sub. Cit Dubu ue Coun Dubu ue State IA Zi Code 52001 Lender Cit of Dubu ue Housin Services This Muni-Purpose Supplemental Addendum for Federally Related Transactions was designed to provide the appraiser with a convenient way to comply with the 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 Tmst 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. ® PURPOSE 8 FUNCTION OF APPRAISAL The purpose of the appraisal is to estimate the market value of the subject property as defined herein. The furx:tion of the appraisal is to assist the above-named Lender in evaluating the subject property for lending purposes. This is a federally related transaction. ® EXTENT OF APPRAISAL PROCESS ® 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 preserved 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. ^ The Reproduction Cost is based on 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 specificaly 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 krwwledge of the subject market area. The rental knowledge is based on prior and/or current rental rate surveys of residerdial propedies. The Gross Rent Multiplier is based on prior and/or current anaysis of prices and market rates for residential properties. ^ For income producing properties, actual rents, vacancies and expenses have been reported and anayzed. They have been used to project future rents, vacancies and expenses. ® SUBJECT PROPERTY OFFERING INFORMATION According to Dubuque Multiple Listing Service the subject property: ® has not been offered for sale in the past: ^ 30 days ^ 1 year ®3 years. ^ is currency offered for sale for $ ^ was offered for sale within the past: ^ 30 days ^ 1 year ^ 3 years for $ ^ 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 Tor unavailability and the steps taken by the appraiser are explained later in this addendum. ® SALES HISTORY OF SUBJECT PROPERTY According to Dubuque City Assessor's records the subject propeRy: ® Has not transferred ^ in the past twelve months. ®in the past thirty-six months. ^ in the past 5 years. ^ Has transferred ^ in the past twelve months. ^ in the past thirty-six months. ^ in the past 5 years. ^ All prior sales which have occurred in tfle past are listed below and reconciled to the appraised value, either in tfre body of the report or in thre addenda. Date Sales Price Document Jf Seller Bu er ® FEMA FLOOD HAZARD DATA ® Subject property is not located in a FEMA Special Flood Hazard Area. ^ Subject property is located in a FEMA Special Flood Hazard Area. Zone FEMA Map/Panel 7i Map Date Name of Community X 1951800003B 09/06/859 Cit of Dubu ue, Iowa ^ The community does not participate in the National Flood Insurance Program. ® The community does participate in the National Flood Insurance Program. ® tt is covered by a (eoular program. ^ It is covered by an emermencv program. Page 1 of 2 Farm MPA3 -'WinTOTAL' appraisal software by a la mode, inc. -1-800-ALAMODE File No. 2 0707fr Pa #1 ® CURRENT SALES CONTRACT ® The subject property is curve jy not under contract. ^ The contract and/or escrow instmctions were not available for review. The unavailability of the conUact is explained later in the addenda section. ^ The contract and/or escrow instmctions were reviewed. The tolbwing 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. tt 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 cordract indicated no financing concessions or other incentives. ^ The contract indicated iLie 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 cgnclusion is in compliance with the Market Value defined herein. ® MARKET OVERVIEW Include an explanation of current market conditions and trends. 3-6 months is cgnsidered a reasonable marketing period for the subject property based on Dubuque Multiple Listing Service ® ADDITIONAL CERTIFICATION The Appraiser certifies and agrees that: (1) The anatyses, opinions and conclusions were developed, and this report was prepared, inconformity with the Uniform Standards of Professional Appraisal Practice ('USPAP"), except that the Departure Provision of the USPAP does 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 atlainmenl of a stipulated resufl, 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 (ENVIRONMENTAL) LIMITING CONDITIONS Tile 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 ernironmental conditions which would affect the property negatively unless otherwise stated in this report. his possible that tests and inspections made by a qualified hazardous substance and environmental expert would reveal the existence of hazardous substances or detrimental ernironmeMal conditions on or around the property that would negatively affect its value. ^ ADDITIONAL COMMENTS ® APPRAISER'S SIGNATURE & LICENSE/CERTIFICATION ~c Appraiser's Sig ~ ~ - " Effective Date 07/13/07 Date Prepared 07/13107 Appraiser's Name (print) Bradlev R. Brissev Phone # (563) 583-1737 State IA ^ License ®Cerfificaton # CR01925 Tax ID # 42-1096446 ^ CO-SIGNING APPRAISER'S CERTIFICATION ^ The co-signing appraiser has personally inspected the subject prgperty, 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 tulty to the co-signing appraiser. ^ The co-signing appraiser has not personally inspected rite interior of the subject property and: ^ 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 Cully 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. ^ 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. ^ CO-SIGNING APPRAISER'S SIGNATURE & LICENSE/CERTIFICATION Co-Signing Appraiser's Signature Effective Date Date Prepared Co-Signing Appraiser's Name (print) Phone # State ^ License ^ Certification # Tax ID # Page 2 of 2 Form MPA3 -'WinTOTAL' appraisal software by a la mode, inc. -1-800-ALAMODE __ FROM: Bradley R. Brissey Brissey Realty 3388 Kennedy Circe, Suite A Dubuque,lA 52002 Telephone Number: 563-583-1737 Fax Number: 563-582-2099 T0: City of Dubuque Housing Services 1805 Central Ave. Dubuque, IA 52001 Telephone Number: Fax Number: Attemate Number: E-Mail: INVOICE INVOICE NUMBER 'ir DATE i, REFERENCE Internal Order #: 200707fro Lender Case #: 200707fro Client File #: 200707fro Main Rle # on form: 200707fro Other File # on form: 200707fro Federal Tax M: 42-1096446 Employer ID: DESCRIPTION Lender: City of Dubuque Housing Services Client: City of Dubuque Housing Services PurchaserBorrower: Frommelt, Arthur Property Address: Lot 15 in Finks Sub. City: Dubuque County: Dubuque State: IA Zip: 52001 Legal Description: Lot 15 in Finks Sub. FEES AMOUNT Land Appraisal in Dubuque 170.00 Courtesy Discount -95.00 SUBTOTAL ' 75.00 PAYMENTS AMOUNT Check #: Date: Description: Check #: Date: Description: Check #: Date: Description: SUBTOTAL TOTAL DUE $ 7s.oo Fonn NNS -'WinTOTAL' appraisal software by a la mode, inc. -1-800-ALAMODE Brissey Realty