source:
  type: guide
  id: hud-4000-1-ii-b-section-247-hawaiian-home-lands-program
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — b. Section
    247 Hawaiian Home Lands Program (09/20/2021)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part II — b. Section
    247 Hawaiian Home Lands Program (09/20/2021).
  coverage_tier: operative
obligations:
- id: hud-4000-1-ii-b-section-247-hawaiian-home-lands-program-full
  canonical_id: hud-4000-1-ii-b-section-247-hawaiian-home-lands-program-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part II — b. Section
    247 Hawaiian Home Lands Program (09/20/2021)
  type: do
  tags:
  - regulator-direct
  - fha
  - hud-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — b. Section
      247 Hawaiian Home Lands Program (09/20/2021)
    source_class: hud-handbook
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000-1
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-05-23T00:28:40Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: 'b. Section 247 Hawaiian Home Lands Program (09/20/2021) Due
      to the nature of the title and property rights, the Appraiser must develop the
      cost for both Existing and New Construction. When appropriate, the Appraiser
      must attempt to apply the income and sales comparison approaches. The Appraiser
      must include the following language in the appraisal report: “The value defined
      for this appraisal is not ‘Market Value’ as defined in the standard documents
      of form appraisal reports. This appraisal has been completed for FHA mortgage
      insurance purposes, per HUD instructions for Department of Hawaiian Home Lands
      (DHHL) properties.” The Appraiser must develop a cost approach from a published
      cost service in addition to developing the cost approach described in this Handbook
      4000.1. The appraisal report must include: • photocopies of all pages used to
      derive the cost figures, except as noted below; • application of all current
      multipliers necessary and published by the cost service; • no marketing expense
      to the cost analysis of a DHHL property appraisal because these Properties are
      not freely marketable; • entrepreneurial venture may only be included if reasonable
      profit and overhead are not already included in all costs; and • depreciation
      due to normal aging, which may be derived from the tables in the cost service
      book. Depreciation from incurable external or functional obsolescence should
      be based on verifiable market extractions, by paired-sales analysis and capitalized
      rent loss. The Appraiser may use a computer-generated cost analysis provided
      it contains sufficient information to verify that all significant property features
      have been properly addressed in the cost analysis. Accordingly, the Appraiser
      will not be required to supplement a computer- generated cost analysis with
      photocopies from the cost service book.'
  judgment: false
