EA – ENVIRONMENTAL ASSESSMENT – A study of LAND to determine any unique environmental attributes including everything from endangered species to existing hazardous waste and historical significance. Depending on the findings of an EA, an ENVIRONMENTAL IMPACT STATEMENT may or may not be needed.
EBITDA – EARNINGS BEFORE INTEREST, INCOME TAXES, DEPRECIATION, ACCOUNTING -Term used to ANALYZE REIT’S for AMORTIZATION of deferred changes and extraordinary items.
EIS – ENVIRONMENTAL IMPACT STATEMENT – An analysis of the expected effects of a development or action on the surrounding natural and fabricated environment. Such statements are required for many federally supported DEVELOPMENTS under the National
Environmental Policy Act of 1969.
EOY – End of Year
EPA – ENVIRONMENTAL PROTECTION AGENCY – An agency of the U.S. government established to enforce federal pollution ABATEMENT laws and implement various pollution prevention programs.
EPO – EXCLUSIVE PROVIDER ORGANIZATION – Policy whereby people who belong to an EPO must receive their care from affiliated providers. Any services rendered by unaffiliated providers are not reimbursed.
ERISA – EMPLOYEE RETIREMENT INCOME SECURITY ACT – Legislation passed in 1974 applying to most private PENSION and welfare plans that requires certain minimum standards to protect participating employees.
ESOP – EMPLOYMENT STOCK OWNERSHIP PLAN – A defined contribution pension plan which is designed to invest primarily in employer SECURITIES.
F
FAR – FLOOR-AREA Ratio.
FDIC – FEDERAL DEPOSIT INSURANCE CORPORATION – An agency of the federal government that INSURES DEPOSITS in COMMERCIAL BANKS up to a maximum amount per account.
FF&E – Furniture, FIXTURES and Equipment.
FFO – FUNDS FROM OPERATIONS – A measure of the profitability of a REAL ESTATE
INVESTMENT TRUST (REIT). FFO begins with NET INCOME as derived using
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. To that it adds
DEPRECIATION deductions and deductions for AMORTIZATION of deferred charges, which are non-cash deductions. FFO does not consider extraordinary items and gains on the sale of REAL ESTATE.
FHA – FEDERAL HOUSING ADMINISTRATION – An agency of the federal government that INSURES LOANS made by approved lending institutions.
FHA MORTGAGE LOAN – A MORTGAGE LOAN insured by the FHA.
FHLB – FEDERAL HOME LOAN BANK
FHLMC – FEDERAL HOME LOAN MORTGAGE CORPORATION – 1) The federal agency responsible for regulating federally chartered SAVINGS AND LOAN ASSOCIATIONS; 2) Also known as FREDDIE MAC – A government organization that buys existing LOANS in packages from MORTGAGE BANKERS and financial institutions and sells participation CERTIFICATES in these packages to finance the purchase of more LOAN packages.
FIABCI The international abbreviation for the INTERNATIONAL REAL ESTATE FEDERATION – An organization with worldwide membership that is devoted to encouraging private rights to REAL ESTATE. Its American chapter is an affiliate of the NATIONAL ASSOCIATION OF REALTORS.
FIRREA – FINANCIAL INSTITUTIONS REFORM, RECOVERY AND
ENFORCEMENT ACT – A federal law passed in 1990 that restructured the regulatory and deposit INSURANCE apparatus dealing with SAVINGS AND LOAN ASSOCIATIONS and changed the rules under which federally regulated S&L’S operate.
FMHA – FARMER’S HOME ADMINISTRATION – An agency within the U.S. Department of Agriculture that administers assistance programs for purchasers of homes and farms in RURAL areas and small.
FMRR – FINANCIAL MANAGEMENT RATE OF RETURN – A method of measuring investment performance that is a variation on the internal RATE OF RETURN method.
FMV – FAIR MARKET VALUE – Generally used in PROPERTY TAX and CONDEMNATION legislation, a term that refers to a PROPERY’S MARKET VALUE
FNMA – FEDERAL NATIONAL MORTGAGE ASSOCIATION – Also known by the nickname FANNIE MAE – Originally a government organization but now a private corporation, the program purchases FHA-insured, VA-guaranteed and CONVENTIONAL LOANS from lenders and thus creates a SECONDARY MORTGAGE MARKET.
FRB – FEDERAL RESERVE BOARD – The federal agency responsible for regulating federally chartered COMMERCIAL BANKS.
FSBO – FOR SALE BY OWNER. – Pronounced “fizzbo” – A term referring to PROPERTIES on the market that are not LISTED with a REAL ESTATE BROKER.
FSLIC – FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION – An agency of the federal government that INSURES DEPOSITS in MUTUAL SAVINGS BANKS and loan associations up to a maximum amount per account.
FTC – FEDERAL TRADE COMMISSION – A federal agency, headquartered in Washington, DC, that regulates advertising and other promotion sales practices of firms engaged in interstate commerce. The FTC does not regulate interstate LAND sales.
G
GAAP – GENERALLY ACCEPTED ACCOUNTING PRINCIPLE – 1) The set of rules considered standard and acceptable by Certified Public Accountants; 2) principles of accounting and reporting business results developed by the American Institute of Public Accountants.
GEM – GROWING EQUITY MORTGAGE – A MORTGAGE LOAN in which the payment
is increased by a specific amount each year with the additional payment amount applied to PRINCIPAL retirement. Due to the added principal retirement, the MATURITY of the LOAN is significantly shorter than a comparable LEVEL PAYMENT MORTGAGE.
GI LOAN – Also known as a VA LOAN – For a home to be used as the PRINCIPAL RESIDENCE, a home LOAN guaranteed by the U.S. VETERANS ADMINISTRATION
(VA) under the Servicemen’s Readjustment Act of 1944 and later. The VA guarantees repayment to the LENDER in the event of DEFAULT. The guaranty is 60% of the loan but not more than $27,500.
GIS – GEOGRAPHIC INFORMATION SYSTEMS – A computer mapping program where LAND characteristics and/or demographic information are color coded and often overlaid. The purpose is to determine locations of certain activity.
GIM – GROSS INCOME MULTIPLIER – Also known as GROSS RENT MULTIPLIER – Usually measured as gross monthly income when referring to RESIDENTIAL PROPERTIES and gross annual income when referring to COMMERCIAL PROPERTIES the relationship or ratio between the sales price of a PROPERTY and its gross RENTAL INCOME as utilized in the INCOME APPROACH TO VALUE.
GLA – GROSS LEASABLE AREA – The floor area that can be used by TENANTS. Generally measured from the center of joint partitions to outside wall surfaces.
GNMA – GOVERNMENT NATIONAL MORTGAGE ASSOCIATION – Also known as GINNIE MAE – A government organization that is responsible for the SPECIAL ASSISTANCE LOAN PROGRAM which provides low-interest rate MORTGAGE LOANS.
GPM – GRADUATED-PAYMENT MORTGAGE – A MORTGAGE in which the monthly payments will generally increase for a set period of time and then level off. This increasing payment feature can be incorporated into FIXED RATE or ADJUSTABLE RATE LOANS.
GRI – GRADUATE, REALTORS INSTITUTE – An educational program sponsored by the NATIONAL ASSOCIATION OF REALTORS or State Realtor Boards.
GRM – GROSS RENT MULTIPLIER – In THE INCOME APPROACH TO VALUE, the
relationship or ratio between the sales price of a property and its gross rental income, usually gross monthly income when referring to RESIDENTIAL PROPERTIES and gross annual income when referring to COMMERCIAL PROPERTIES.
GSE – GOVERNMENT-SPONSORED ENTERPRISE – A quasi-governmental organization that is privately owned but was created by the government and retains certain privileges not afforded totally private entities.
GULP – GROUP UNIVERSAL LIFE PRODUCTS – UNIVERSAL LIFE INSURANCE
plans sold to members of a group, such as individual employees of an employer. There are some differences between GULP plans and individual universal life plans; for instance, GULP expense charges generally are lower than those assessed against individual policies.
H
HMO – HEALTH MAINTENANCE ORGANIZATION – An organization that provides a wide range of comprehensive health care services for a specified group at a fixed periodic PAYMENT. The HMO can be sponsored by the government, hospitals, medical schools, employers, consumer groups, labor unions, insurance companies and hospital-medical plans.
HOW – HOMEOWNER’S WARRANTY PROGRAM – When the builder participates in the program, a private INSURANCE program that protects purchasers of newly constructed homes against structural and mechanical faults.
HUD – HOUSING AND URBAN DEVELOPMENT DEPARTMENT – A U.S. government agency established to implement certain federal housing and community development programs to assure safe, decent, and sanitary housing for all Americans and investigates complaints of DISCRIMINATION in housing.
HUD-1 FORM – Also known as UNIFORM SETTLEMENT STATEMENT – The form prescribed by the REAL ESTATE SETTLEMENT PROCEDURES ACT for federally related MORTGAGES, which must be prepared by whoever handles a CLOSING, must contain certain relevant CLOSING information and must be given to buyer and seller.
HVAC – HEAT, VENTILATION, AND AIR-CONDITIONING – Refers to the climate control system in buildings.
I
IAAO – INTERNATIONAL ASSOCIATION OF ASSESSING OFFICERS – A professional organization of property tax assessors which awards the designation of Certified Assessment Evaluator.
IBNR – INCURRED-BUT-NOT-REPORTED RESERVES – LIABILITY account on an INSURER’S BALANCE SHEET reflecting CLAIMS that are expected based upon statistical projections but which have not yet been reported to the INSURER.
IFA – INDEPENDENT FEE APPRAISER – A designation conferred by the NATIONAL ASSOCIATION OF INDEPENDENT FEE APPRAISERS.
IFAC – INDEPENDENT FEE APPRAISER-COUNSELOR – A designation conferred by the NATIONAL ASSOCIATION OF INDEPENDENT FEE APPRAISERS.
IFAS – INDEPENDENT FEE APPRAISER-SENIOR – A designation conferred by the NATIONAL ASSOCIATION OF INDEPENDENT FEE APPRAISERS.
IPG – IMMEDIATE PARTICIPATION GUARANTEE PLAN – Type of PENSION plan in which all pension contributions are deposited in an unallocated fund and used directly to pay BENEFITS to retirees.
IRA – INDIVIDUAL RETIREMENT ACCOUNT – An account to which an individual can save for retirement on a tax-favored basis. Contributions to a standard IRA are tax DEDUCTIBLE for many workers; contributions to a ROTH IRA are made with after-tax dollars but can be withdrawn tax-free at retirement.
IRC – INTERNAL REVENUE CODE – The law passed by Congress that specifies how and what INCOME is to be TAXED and what may be DEDUCTED from taxable INCOME.
IREM – INSTITUTE OF REAL ESTATE MANAGEMENT – Affiliated with the NATIONAL ASSOCIATION OF REALTORS, a professional organization of PROPERTY MANAGERS which publishes The Journal of Property Management.
IRR – INTERNAL RATE OF RETURN – The true annual RATE of earnings on an INVESTMENT which equates the VALUE of cash returns with cash invested. While it considers the application of COMPOUND INTEREST factors, it requires a trial-and-error method for solution.
IRS – INTERNAL REVENUE SERVICE – An agency of the federal government that is responsible for the administration and collection of federal INCOME TAXES.
IRS CODE 1031 – Also known as TAX FREE EXCHANGE – Entitled “EXCHANGE of PROPERTY held for productive use or INVESTMENT,” it declares the “non-recognition of gain or LOSS from EXCHANGES solely in kind. In general, no gain or LOSS shall be recognized on the EXCHANGE of PROPERTY held for productive use in a trade or business or for INVESTMENT if such PROPERTY is exchanged solely for PROPERTY of LIKEKIND which is to be held either for productive use in a trade or business or for INVESTMENT.”
IR/WA – INTERNATIONAL RIGHT OF WAY ASSOCIATION – An individual membership association that offers courses covering various phases of RIGHT-OF-WAY work. Educational curriculum includes engineering, law and appraisal. Offers a designation, SR/WA and a bimonthly magazine.
ISO – INSURANCE SERVICES OFFICES – Major rating organization in PROPERTY and LIABILITY INSURANCE that drafts POLICY forms for personal and commercial lines of INSURANCE and provides RATE data on LOSS costs for PROPERTY and LIABILITY INSURANCE lines.
