DOS-41-14-00021-A Appraiser Certification and License Update Requirements
12/31/14 N.Y. St. Reg. DOS-41-14-00021-A
NEW YORK STATE REGISTER
VOLUME XXXVI, ISSUE 52
December 31, 2014
RULE MAKING ACTIVITIES
DEPARTMENT OF STATE
NOTICE OF ADOPTION
I.D No. DOS-41-14-00021-A
Filing No. 1065
Filing Date. Dec. 16, 2014
Effective Date. Jan. 01, 2015
Appraiser Certification and License Update Requirements
PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following action:
Action taken:
Amendment of sections 1102.2(a), (b), (c), 1102.3(a), 1102.4, 1103.4(b)(1), (c) and 1104.1(b)(1) of Title 19 NYCRR.
Statutory authority:
Executive Law, section 160-d and art. 6-E
Subject:
Appraiser Certification and License Update Requirements.
Purpose:
To conform current appraiser qualifications to federal standards while simultaneously removing unnecessary requirements.
Text of final rule:
Subdivisions (a), (b), and (c) of 19 NYCRR § 1102.2 are amended to read as follows:
(a) Applicants for residential licensing must have at least 2,000 hours of real estate appraisal experience over a period of not less than 24 months. [At least 75 percent of that experience must be residential appraisal experience.]
(b) Applicants for residential certification must have at least 2,500 hours of real estate appraisal experience over a period of not less than 24 months. [At least 75 percent of that experience must be residential appraisal experience.] The residential experience must include experience in single-family, two- to four-family, cooperatives, condominiums, or other residential experience. [At least 80 percent of the residential experience must be in the single-family category. At least 10 percent of the residential experience must be in each of the remaining residential categories set forth in § 1102.3 of this Part.]
(c) Applicants for general certification must have at least 3,000 hours of experience over a period of not less than 30 months, of which, a minimum of 1500 hours must be in non-residential appraisal work.[At least 75 percent of that experience must be general real estate experience. The general experience must include experience in multi-family properties, commercial, industrial or other non-residential categories. At least 60 percent of the general experience must be in one of the general categories as set forth in § 1102.3 of this Part. At least 20 percent of the general experience must be in each of the remaining categories.]
Subdivision (a) of 19 NYCRR § 1102.3 is amended to read as follows:
(a) Hours of experience shall be credited to an applicant based on actual time spent on appraisal assignments up to a maximum numbers of hours in accordance with the following schedule. [However, to ensure that experience is distributed over a reasonable period of time, an applicant may not claim or be credited with more than 400 experience hours for any calendar quarter.]
APPRAISAL EXPERIENCE SCHEDULE
Type of Property Appraised
Assigned hours
Residential
Residential Single-Family (Single Coop or Condo)
6
Residential Multi-Family (2-4 units)
12
Vacant Lot (Residential, 1-4 units)
3
Farm (Less than 100 acres, with residence)
12
General
Land: Farms of 100 acres or more in size, undeveloped tracts, residential multifamily sites, commercial sites, industrial sites
18
Residential Multi-Family (5-12 units):
Apartments, condominiums, townhouses and mobile home parks
36
Residential Multi-Family (13+ units):
Apartments, condominiums, townhouses and mobile home parks
48
Commercial/Industrial Single-Tenant: Office buildings, R&D, retail stores, restaurants, service stations, warehouses, day care centers, etc.
Institutional: Rest homes, nursing homes, hospitals, schools, churches, government buildings
48
Subdivisions (a), (b), (c), and (d) of 19 NYCRR § 1102.4 are repealed as follows:
[(a) For standard appraisals, an applicant shall receive full credit for an appraisal if the applicant performed at least 75 percent of the work associated with the appraisal even if the applicant’s work was reviewed by a supervising appraiser who signed the appraisal report. For the purposes of this section, the work associated with an appraisal shall include preparation of the appraisal report.
(b) For standard appraisals, an applicant shall receive pro rata credit for performing less than 75 percent of the work associated with an appraisal. For example, if an applicant performed 50 percent of the work associated with an appraisal, the applicant may claim 50 percent of the experience credit associated with performing that type of appraisal. However, an applicant shall not receive any credit for an appraisal if the applicant performed less than 25 percent of the work associated with the appraisal.
(c) For review appraisals, an applicant shall receive 25 percent of the hours normally credited for an appraisal if the applicant performed a review appraisal, which shall include a field review, a documentary review, or a combination of both.
(d) An applicant shall have the burden of establishing to the satisfaction of the Department of State that the applicant actually performed the work associated with the appraisal or appraisals which the applicant claims appraisal-experience credit.]
19 NYCRR § 1102.4 is added to read as follows:
§ 1102.4 Acceptable experience
An applicant shall have the burden of establishing to the satisfaction of the Department of State that the applicant actually performed the work associated with the appraisal or appraisals which the applicant claims appraisal-experience credit. Experience credit will only be granted for hours actually worked on an appraisal assignment provided that no applicant shall be permitted to claim experience hours in excess of the maximum hours per assignment as provided for by Section 1102.3 of this Part.
Subdivisions (b), and (c) of 19 NYCRR § 1103.4 are amended to read as follows:
(b) Supervising appraiser qualifications. Persons wishing to become a supervisor of one or more appraiser assistants must provide evidence of having a general or residential appraiser certification in New York State and must have been state certified for a minimum of three years[.] and complete the Supervisory Appraiser/Trainee Appraiser course.
(1) Notwithstanding any other law, rule or regulation, all supervisory appraisers must complete the Supervisory Appraiser/Trainee Appraiser course no later than December 31, 2015 or prior to entering into any new Supervisory/Trainee Appraiser relationship after January 1, 2015.
(c) Ineligibility. An individual who has had a real estate broker, salesperson or an appraisal license or certification revoked or suspended or has been subject to any disciplinary action that affects the Supervisory Appraiser’s legal eligibility to engage in appraisal practice within the last three years is ineligible to receive instructor approval from the Department and is ineligible to supervise appraiser assistants.
Subdivision (b)(1) of 19 NYCRR § 1104.1 is amended to read as follows:
(1) the state or territory’s certification and licensing program is in compliance with the provisions of [has not been disapproved by the appraisal subcommittee of the Federal Financial Institutions Examination Council pursuant to] Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989;
Final rule as compared with last published rule:
Nonsubstantive changes were made in section 1102.2(c).
Text of rule and any required statements and analyses may be obtained from:
David A. Mossberg, Esq., NYS Dept. of State, 123 William St, 20th Fl., New York, NY 10038, (212) 417-2063, email: david.mossberg@dos.ny.gov
Revised Regulatory Impact Statement
The Department of State (the “Department”) has determined that a revised regulatory impact statement is not necessary for this rulemaking.
While preparing new forms to implement the proposal, the Department discovered a drafting error which added unnecessary confusion.
The prior proposal included a new sentence which could have possibly conflicted with the original text. By correcting this typographical error, the Department is providing a clearer rule to applicants applying for a license as a general certified appraiser. Therefore, the rule, as amended by this Notice of Adoption, will not require a revised regulatory impact statement.
Revised Regulatory Flexibility Analysis
The Department of State (the “Department”) has determined that a revised Regulatory Flexibility Analysis (“RFA”) for small businesses and local governments is not necessary for this rulemaking.
While preparing new forms to implement the proposal, the Department discovered a drafting error which added unnecessary confusion.
The prior proposal included a new sentence which could have possibly conflicted with the original text. By correcting this typographical error, the Department is providing a clearer rule to applicants applying for a license as a general certified appraiser. Therefore, the rule, as amended by this Notice of Adoption, will not require a revised RFA.
Revised Rural Area Flexibility Analysis
The Department of State (the “Department”) has determined that a Revised Rural Area Flexibility Analysis (“RAFA”) is not necessary for this rulemaking as the change to the proposed rule will not have a substantial adverse impact on jobs and employment opportunities.
While preparing new forms to implement the proposal, the Department discovered a drafting error which added unnecessary confusion.
The prior proposal included a new sentence which could have possibly conflicted with the original text. By correcting this typographical error, the Department is providing a clearer rule to applicants applying for a license as a general certified appraiser. Therefore, the rule, as amended by this Notice of Adoption, will not require a revised RAFA.
Revised Job Impact Statement
The Department of State (the “Department”) has determined that a revised job impact statement is not necessary for this rulemaking as the change to the proposed rule will not have a substantial adverse impact on jobs and employment opportunities.
While preparing new forms to implement the proposal, the Department discovered a drafting error which added unnecessary confusion.
The prior proposal included a new sentence which could have possibly conflicted with the original text. By correcting this typographical error, the Department is providing a clearer rule to applicants applying for a license as a general certified appraiser. Therefore, the rule, as amended by this Notice of Adoption, will not have a substantial adverse impact on jobs and employment opportunities within New York.
Initial Review of Rule
As a rule that requires a RFA, RAFA or JIS, this rule will be initially reviewed in the calendar year 2018, which is no later than the 3rd year after the year in which this rule is being adopted.
