Municipal Setting Designations: A New Tool for Reducing Environmental Risk and Cost Effects on Property Values (Environmental AND THE APPRAISER‪)‬

Previous editions of "Environment and the Appraiser" have examined a number of regulatory options for achieving site remediation objectives and reducing the adverse effects of environmental risk and uncertainty, as well as remediation cost effects. These have included innocent landowner programs, (1) the use of institutional controls, (2) and remediation through monitored natural attenuation. (3) The relationship between regulatory tools and the effects of contamination on property value has been discussed with reference to the general valuation framework introduced in Advisory Opinion 9 (AO-9): "The Appraisal of Real Property That May Be Impacted by Environmental Contamination" (4) As set forth there and in a subsequent "Environment and the Appraiser" (5) column, this framework can be depicted in the following equations: