Donated Space
Donated space must not exceed the fair rental value of comparable space as established by an independent appraisal of comparable space and facilities in a privately owned building in the same locality.
Valuation and Matching
Whenever current fair market value of real property is established, the determination of value must be made by an independent real property appraiser certified or licensed in the state in which the property is located (45 CFR § 75.306(i)(1), Grants Policy Statement page II-67). The appraiser must be licensed for the type of property appraised, generally commercial real estate.
Fair market rental value is the amount that a grantee would have to pay to rent comparable space in the community. The claimed value of donated space must not exceed the fair market rental value of comparable space as established by an independent appraisal of comparable space in a privately-owned building in the same locality (45 CFR § 75.306(i)(3)).
For purposes of establishing fair market rental value of donated space from an unrelated party, the required fair market rental value may be established by an appraiser as described above, or by a licensed and independent real estate broker or real estate agent familiar with the rental market in the local community.
Less than Arm's Length
If space is donated by a related party, the amount of match the grantee may claim is limited to the amount that could have been claimed had the delegate been the titleholder of the property, generally those amounts described in 45 CFR § 75.436.