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24CFR Sec. 203.43i for more information.

B.  Appraisals on DHHL - Appraisals on Department of Hawaiian Home Lands (DHHL) properties (existing and proposed construction) only require the use of the Cost Approach.  This change was brought about because appraisers felt that performing the Sales Approach on DHHL violated the Uniform Standards of Professional Appraisal Practices (USPAP).  Licensed appraisers are required to conform to USPAP which identifies Market Value as “…the most reasonable price which a property should bring in a competitive and open market:”.  The Market Approach or Sales Comparison Approach is no longer required as these properties are neither freely transferable nor subject to an open market.

In the Reconciliation Section of the URAR under Conditions of the Appraisal, the appraiser can conclude that the appraisal is being completed per HUD instructions for FHA mortgage insurance purposes only and the sales comparison approach is waived for DHHL properties.

A statement can be added in the Reconciliation Section of the URAR when estimating the final value that, “the value stated in the appraisal is not “market value” as defined in USPAP”, however, the appraiser must include a date (which is the date of the inspection), a value and sign the appraisal.

References:  24CFR Sec. 203.43i  Eligibility of mortgages on Hawaiian Home Lands insured pursuant to section 247 of the National Housing Act.

C.  Hawaiian Home Lands  The ADP code for a regular DHHL loan should be 759, if it is a DHHL buydown, then the ADP code should be 811.  


To access information quickly, click on one of the following:

A.  General

B. Underwriters' Note


Criteria for Agreement Acceptance

A.  General -  (Reference::  24 CFR Sec. 200.926d)

1.  Each property shall be provided with vehicular and pedestrian access by a public or private street. Private streets shall be protected by permanent easements.  Existing or proposed streets at the site shall connect to private or public streets and shall provide all-weather access to all buildings for essential and emergency use, including access needed for deliveries, service, maintenance and fire equipment.

FHA defines all-weather surface as a road surface over which emergency and the area’s typical passenger vehicles can pass at all times.  

2.  Private streets must be protected by permanent recorded easements and have joint maintenance agreements.

B.  Underwriters' Note - The recorded easement and road maintenance agreement must be reviewed and approved by the Direct Endorsement Underwriter and documented in

Copy Printed: REVISION  I

   02/16/0214       Revision Effective:  05-30-00

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