DOS-08-08-00004-E Uniform Standards of Professional Appraisal Practice
2/20/08 N.Y. St. Reg. DOS-08-08-00004-E
NEW YORK STATE REGISTER
VOLUME XXX, ISSUE 8
February 20, 2008
RULE MAKING ACTIVITIES
DEPARTMENT OF STATE
EMERGENCY RULE MAKING
I.D No. DOS-08-08-00004-E
Filing No. 96
Filing Date. Jan. 31, 2008
Effective Date. Jan. 31, 2008
Uniform Standards of Professional Appraisal Practice
PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following action:
Action taken:
Amendment of section 1106.1 of Title 19 NYCRR.
Statutory authority:
Executive Law, section 160-d
Finding of necessity for emergency rule:
Preservation of general welfare.
Specific reasons underlying the finding of necessity:
The Federal Appraisal Qualification Board (AQB), in accordance with the authority granted to said body pursuant to Title XI of the Financial Institutions Reform, Recover and Enforcement Act of 1989 (FIRREA), establishes the minimum education, experience and examination requirements for real property appraisers to obtain state certification. State are required to implement appraiser certification requirements that are no less stringent than those issued by the AQB.
On a bi-annual basis, the AQB adopts an updated version of the Uniform Standards of Professional Appraisal Practic (USPAP). States are required to adopt the most recent version of USPAP. New York State, in accordance with this requirement has adopted prior versions of USPAP. The AQB recently adopted the 2008–2009 version of USPAP. Public interest necessitates this rule making, not only because of the AQB mandate, but because public protection requires that appraisers follow the most current standards applicable to their industry.
Subject:
Uniform standards of professional appraisal practice.
Purpose:
To adopt the 2008–2009 edition of the Uniform Standards of Professional Appraisal Practice.
Text of emergency rule:
Section 1106.1 (Appraisal Standards) of Title 19 of the NYCRR is amended to read as follows:
§ 1106.1 Appraisal standards.
(a) Every appraisal assignment shall be conducted and communicated in accordance with the following provisions and standards set forth in the [2006] 2008-2009 edition of the Uniform Standards of Professional Appraisal Practice:
(1) Definitions;
(2) Preamble;
(3) Ethics rule;
(4) Competency rule;
(5) [Departure rule] Scope of Work Rule;
(6) Jurisdictional exception rule;
(7) [Supplemental standard rule;
(8)] Standard 1-Real Property Appraisal, Development;
[(9)] (8) Standard 2-Real Property Appraisal, Reporting;
[(10)] (9) Standard 3-[Real Property and Personal Property] Appraisal Review, Development and Reporting;
[(11)] (10) Standard 4-Real Property Appraisal Consulting, Development;
[(12)] (11) Standard 5-Real Property Appraisal Consulting, Reporting; and
[(13)] (12) Standard 6-Mass Appraisal, Development and Reporting.
(13) Standard 7- Personal Property Appraisal, Development
(14) Standard 8- Personal Property Appraisal, Reporting
(15) Standard 9-Business Appraisal, Development
(16) Standard 10-Business Appraisal, Reporting
(b) The [2006] 2008-2009 edition of the Uniform Standards of Professional Appraisal Practice is published by the Appraisal Foundation, which is authorized by the United States Congress as the source of appraisal standards. Copies may be obtained from:
Copies are also available for inspection and copying at the following offices of the Department of State:
Division of Licensing Services
N.Y.S. Department of State
[84 Holland Avenue] Alfred E. Smith State Office Building
80 South Swan Street
P.O. Box 22001
Albany NY [12208] 12231-0001
tel: 518-473-2728
Division of Licensing Services
N.Y.S. Department of State
656 Court Street
Buffalo NY 14202
tel: 716-847-7110
Division of Licensing Services
N.Y.S. Department of State
123 William St.
New York NY 10038
tel: 212-417-5747
Division of Licensing Services
N.Y.S. Department of State
250 Veterans Memorial Highway
Hauppauge NY 11788
tel: 631-952-6579
This notice is intended
to serve only as a notice of emergency adoption. This agency intends to adopt this emergency rule as a permanent rule and will publish a notice of proposed rule making in the State Register at some future date. The emergency rule will expire April 29, 2008.
Text of emergency rule and any required statements and analyses may be obtained from:
Whitney A. Clark, Department of State, 41 State St., Albany, NY 12231, (518) 473-2728, e-mail: whitney.clark@dos.state.ny.us
Regulatory Impact Statement
1. Statutory authority:
Executive Law section 160-d authorizes the New York State Board of Real Estate Appraisal to adopt regulations in aid or furtherance of the statute. One of the purposes of Article 6-E is to ensure that licensed and certified real estate appraisers utilize certain minimum standards in preparing and communicating appraisal reports. To meet this purpose, the Department of State, in conjunction with the New York State Board of Real Estate Appraisal, has issued rules and regulations which are found at Part 1106 of Title 19 NYCRR and is proposing this rule making.
2. Legislative objectives:
Executive Law, Article 6-E, requires the Department of State to license and regulate real estate appraisers. The statute requires licensees to comply with certain minimum standards in preparing and communicating real estate appraisals. This rule making advances the legislative objective by conforming existing regulations with the recently adopted federal standards.
3. Needs and benefits:
The Federal Appraisal Qualifications Board (AQP), in accordance with the authority granted to said body pursuant to Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), establishes the minimum standards for the preparation and communication of appraisals. States are required to adopt the standards approved by the AQB.
On a bi-annual basis, the AQB adopts updated standards which are codified in the Uniform Standards of Professional Appraisal Practice (USPAP). The AQB recently adopted the 2008–2009 version of USPAP. Public interest necessitates this rule making, not only because of the AQB mandate, but because public protection requires that appraisers follow the most current standards applicable to their industry.
This rule making is necessary to conform the existing education regulations with the adopted AQB standards.
4. Costs:
a. Costs to regulated parties:
The rule making will not impose any new costs on licensees. Insofar as licensees are already required to comply with USPAP, conforming the regulations to adopt the most recent version of USPAP will not result in any additional costs.
b. Costs to the Department of State:
The rule does not impose any costs to the agency, the state or local government for the implementation and continuation of the rule.
5. Local government mandates:
The rule does not impose any program, service, duty or responsibility upon any county, city, town, village, school district or other special district.
6. Paperwork:
The rule does not impose any new paperwork requirements. Insofar as prospective licensees are already required to comply with the 2006 version of USPAP, conforming the regulations to adopt the new version of USPAP will not result in additional paperwork requirements.
7. Duplication:
This rule does not duplicate, overlap or conflict with any other state or federal requirement.
8. Alternatives:
No significant alternatives exist to be considered because the Department is required to propose this rule making by Federal mandate.
9. Federal standards:
Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 establishes the Appraisal Qualifications Board (AQP) which establishes the minimum standards for real property appraisers to obtain state certification. States are required, by the AQB, to adopt the most recent version of USPAP. This rule making conforms the existing regulations with the required federal standards.
10. Compliance schedule:
Licensees are required to comply with the rule as of the date of filing. Insofar as the AQB adopts a new version of USPAP on an annual or bi-annual basis, and because licensees must receive continuing education on the most recent version of USPAP, the regulated public is aware of the relevant changes effected by this rule making and should be able to comply with the rule on its effective date.
Regulatory Flexibility Analysis
1. Effect of rule:
The rule will apply to licensed and certified real estate appraisers. Currently, these licensees are subject to the 2006 edition of the Uniform Standards of Professional Appraisal Practice. The Federal Appraisal Qualifications Board (AQB), in accordance with the authority granted to said body pursuant to Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), establishes the minimum education, experience and examination requirements for real property appraisers to obtain state certification. States are required to implement appraiser certification requirements that are no less stringent than those issued by the AQB.
On a bi-annual basis, the AQB adopts an updated version of the Uniform Standards of Professional Appraisal Practice (USPAP). States are required to adopt the most recent version of USPAP. New York State, in accordance with this requirement has adopted prior versions of USPAP. The AQB recently adopted the 2008–2009 version of USPAP. This rule making merely conforms existing regulations to the AQB requirement that New York State adopt the most recent version of USPAP. The rule making will not have any foreseeable impact on jobs or employment opportunities for real estate appraisers.
The rule does not apply to local governments.
2. Compliance requirements:
Insofar as the existing licensees are already required to comply with the 2006 edition of USPAP, this rule making, which merely adopts to 2008–2009 version of USPAP, will not add any new reporting, recordkeeping or additional compliance requirements.
The rule does not impose any compliance requirements on local governments.
3. Professional services:
Licensees will not need to rely on any new professional services in order to comply with the rule. Insofar as licensees are already required to comply with the professional standards set forth in the 2006 version of USPAP, conforming the regulations to adopt the most recent version of USPAP will not result in the need to rely on any new professional services.
The rule does not impose any compliance requirements on local governments.
4. Compliance costs:
The rule making will not result in any new compliance costs. Insofar as licensees are already required to comply with the professional standards set forth in the 2006 version of USPAP, conforming the regulations to adopt the most recent version of USPAP will not result in any new compliance costs.
The rule does not impose any compliance costs on local governments.
5. Economic and technological feasibility:
Since the rule does not provide any new recordkeeping requirements on prospective licensees, it will be technologically feasible for these persons to comply with the rule.
6. Minimizing adverse economic impact:
The Department of State has not identified any adverse economic impact of this rule. The rule does not impose any additional reporting or recordkeeping requirements on licensees and does not require licensees to take any affirmative acts to comply with the rule other than those acts that are already required pursuant to Executive Law, Article 6-E.
7. Small business participation:
The Department is required to adopt the most recent version of USPAP and, in fact, has adopted prior versions of USPAP. Prior to proposing this and prior versions of the rule, the Department discussed the proposal at numerous public meetings of the New York State Real Estate Appraisal Board, the minutes of which were posted on the Department's website. The public was given an opportunity to issue comments during the public comment period of these meetings. In addition, the Notice of Proposed Rule Making will be published by the Department of State in the State Register. The publication of the rule in the State Register will provide notice to local governments and additional notice to small businesses of the proposed rule making. Additional comments will be received and entertained.
Rural Area Flexibility Analysis
A rural flexibility analysis is not required because this rule does not impose any adverse impact on rural areas, and the rule does not impose any new reporting, recordkeeping or other compliance requirements on public or private entities in rural areas.
Licensed and certified real estate appraisers are currently subject to an 2006 edition of the Uniform Standards of Professional Appraisal Practice, which has been revised by the 2008–2009 edition. Accordingly, the adoption of the 2008–2009 edition of the Uniform Standards of Professional Appraisal Practice will not impose any new reporting, recordkeeping or other compliance requirements on public or private entities in rural areas.
Job Impact Statement
Licensed and certified real estate appraisers are currently subject to an 2006 edition of the Uniform Standards of Professional Appraisal Practice, which has been revised by the 2008–2009 edition. Accordingly, the New York State Board of Real Estate Appraisal does not believe that adoption of the 2008–2009 edition of the Uniform Standards of Professional Appraisal Practice will have any substantial adverse impact on jobs and employment opportunities.