Discussion in 'FHA/HUD and VA' started by Jerry Bone Jr, Nov 21, 2013.
The pole is 65 feet tall and is located 30 feet from house. The power line is 13kV.
Is a property eligible for FHA if there are overhead or high voltage power lines nearby?
The appraiser must indicate whether the dwelling or related property improvements is located within the easement serving a high-voltage transmission line, radio/TV transmission tower, cell phone tower, microwave relay dish or tower, or satellite dish (radio, TV cable, etc).
1) If the dwelling or related property improvement is located within such an easement, the lender must obtain a letter from the owner or operator of the tower indicating that the dwelling and its related property improvements are not located within the tower’s (engineered) fall distance in order to waive this requirement.
2) If the dwelling and related property improvements are located outside the easement, the property is considered eligible and no further action is necessary. The appraiser, however, is instructed to note and comment on the effect on marketability resulting from the proximity to such site hazards and nuisances.
Handbook 4150.2, Section 2-2(J)
Handbook 4150.2, Section 2-2(J)
All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.
What Mr CANative posted.
I did a similar power line property for FHA about 3 months ago
Find similar comps to see if a view adjustment is warranted. I was surprised but based on similar sales in this subdivision, a view adjustment was not warranted. (may differ in your market)
I spoke to the power company and they told me they are designed to crumple in on themselves. They sent me a letter which I put in the file.
You can use a pencil at your inspection to see if it is tall enough to fall on the house.
Most that I have done have been collapsible towers, however the one in front of this property is not. OP do not say it will not fall on the property, you have already provided the measurements. If the UW wants to override you, that's fine. But, protect yourself.
I've never understood why HUD has a problem with towers. What's the difference from an EF 4 tornado hitting the home? Oh wait... the difference is the Gobment will sound the warning sirens after it's "verified" and has passed.
The pole is 65' in height, what is the distance from the base of the pole to the improvements? No, a wood pole, as this appears to be, won't collapse on itself, what typically happens is they snap off below the cross arms so the full pole would probably never hit the home.
A 13 kV line is fairly innocuous, I'd check the width of the easement to make sure the entirety of the property is outside the easement area. As far as an effect on value, I'd be surprised if the presence of the poles has any effect at all.
Taken from Handbook 4150.2 section 2-10:
OVERHEAD HIGH-VOLTAGE TRANSMISSION LINES
No dwelling or related property improvement may be located
within the engineering (designed) fall distance of any pole,
tower or support structure of a high-voltage transmission
line, radio/TV transmission tower, microwave relay dish or
tower or satellite dish (radio, TV cable, etc.). For field
analysis, the appraiser may use tower height as the fall
For the purpose of this Handbook, a High-Voltage Electric
Transmission Line is a power line that carries high voltage
between a generating plant and a substation. These lines
are usually 60 Kilovolts (kV) and greater, and are
considered hazardous. Lines with capacity of 12-60 kV and
above are considered high voltage for the purpose of this
Handbook. High voltage lines do not include local
distribution and service lines.
Low voltage power lines are distribution lines that commonly
supply power to housing developments and similar facilities.
These lines are usually 12 kV or less and are considered to
be a minimum hazard. These lines may not pass directly over
any structure, including pools, on the property being
insured by HUD.
> If the property is within the unacceptable distance,
mark "YES" in VC-1.