Appraisal Foundation

TO ADVANCE THE VALUATION PROFESSION BY SETTING STANDARDS OF EXCELLENCE, PROMOTING EDUCATION AND UPHOLDING THE PUBLIC TRUST.

2022 SAW THE RETURN OF THE BOARD OF TRUSTEES' IN-PERSON MEETINGS. AFTER TWO YEARS OF VIRTUAL MEETINGS DUE TO THE CORONAVIRUS PANDEMIC, TRUSTEES MET IN SAN DIEGO, CALIFORNIA, IN THE SPRING AND BOSTON, MASSACHUSETTS, IN THE FALL. DIVERSITY, EQUITY, AND INCLUSION CONTINUED TO BE A MAJOR FOCUS OF THE BOARD THROUGHOUT THE YEAR, AND AT THE FALL MEETING, ALL BOARD MEMBERS AND FOUNDATION STAFF TOOK PART IN A HALF-DAY DIVERSITY, EQUITY, AND INCLUSION TRAINING. COURSES LIKE THIS WILL CONTINUE TO BE HELD ON A REGULAR BASIS TO ENSURE ALL TRUSTEES UNDERGO THIS CRITICAL TRAINING DURING THEIR TIME ON THE BOARD. LIKEWISE, THE SPECIAL COMMITTEE ON DIVERSITY, EQUITY, AND INCLUSION WORKED WITH THE CONSUMER AFFAIRS AND STAKEHOLDER OUTREACH COMMITTEE TO DEVELOP A NEW VIDEO RESOURCE FOR CONSUMERS THAT GUIDES THEM THROUGH WHAT TO DO IF THEY NEED TO MAKE A COMPLAINT. THIS VIDEO IS NOW AVAILABLE ON THE FOUNDATION'S WEBSITE, AND BOTH COMMITTEES WILL CONTINUE TO IDENTIFY OPPORTUNITIES TO BETTER ASSIST CONSUMERS NAVIGATING THE APPRAISAL PROCESS. LIKE BOTH THE APPRAISAL STANDARDS BOARD AND THE APPRAISER QUALIFICATIONS BOARD, THE BOARD OF TRUSTEES CAREFULLY REVIEWED THE BIDEN ADMINISTRATION'S PROPERTY APPRAISAL AND VALUATION EQUITY (PAVE) TASK FORCE REPORT. MANY OF THE RECOMMENDATIONS WERE ITEMS THAT TRUSTEES WERE ABLE TO ACT ON SWIFTLY. THIS INCLUDED UPDATES TO THE FOUNDATION BYLAWS TO REFLECT THE TRANSPARENT RULEMAKING PROCESS OF BOTH TECHNICAL BOARDS AND GETTING RID OF A REQUIREMENT THAT A MAJORITY OF THE BOARD OF TRUSTEES CONSIST OF APPRAISERS. THE BOARD OF TRUSTEES ALSO RETAINED AN OUTSIDE CONSULTANT TO EXAMINE THE BOARD'S GOVERNANCE. THIS WORK IS ONGOING AS ARE A NUMBER OF OTHER INITIATIVES BASED ON THE PAVE TASK FORCE REPORT. AS A CONTINUATION OF AN UPDATE FROM LAST YEAR'S ANNUAL REPORT, THE BOARD OF TRUSTEES IMPLEMENTED RECOMMENDATIONS MADE BY AN OUTSIDE DIVERSITY, EQUITY, AND INCLUSION CONSULTANT TO THE TRUSTEE AND BOARD'S NOMINATION PROCESS. THESE UPDATES INCLUDED THE CREATION OF RUBRICS FOR SCORING APPLICANTS THROUGH EACH STEP OF THE PROCESS AND BLIND SCORING OF APPLICATIONS PRIOR TO A CANDIDATE MAKING IT TO THE FIRST ROUND OF INTERVIEWS. THESE NEW PROCESSES RESULTED IN A DIVERSE NEW SET OF APPOINTMENTS TO ALL THREE BOARDS. AS THE BOARD OF TRUSTEES LOOKS TO 2023, IT WILL CONTINUE TO IMPLEMENT THESE AND MANY OTHER PROJECTS TIED TO THE FOUNDATION'S STRATEGIC PLAN.VISION 2030 WAS ADOPTED BY THE BOARD OF TRUSTEES IN OCTOBER 2021, AND 2022 WAS THE YEAR THE APPRAISAL FOUNDATION BEGAN WORKING ON THE GOALS OUTLINED IN THIS LONG-TERM STRATEGIC PLAN IN EARNEST. DETAILS ABOUT THE ACTIVITIES RELATED TO VISION 2030 CAN BE FOUND IN THE FOUNDATION'S ANNUAL REPORT.

OTHER

IN 2022, A KEY FOCUS OF THE APPRAISER QUALIFICATIONS BOARD (AQB) WAS UPDATING THE REAL PROPERTY APPRAISER QUALIFICATION CRITERIA TO INCLUDE EDUCATION ON FAIR HOUSING LAWS AND VALUATION BIAS. FAIR HOUSING LAWS AND VALUATION BIAS EDUCATION REAL PROPERTY APPRAISER QUALIFICATION CRITERIA ON SEPTEMBER 12, 2022, THE APPRAISER QUALIFICATIONS BOARD (AQB) HELD A FORUM TO EXPLORE EDUCATION REQUIREMENTS: FAIR HOUSING LAWS AND VALUATION BIAS EDUCATION. PANELISTS ON THE FORUM INCLUDED FEDERAL REGULATORS, STATE APPRAISER REGULATORY AGENCIES, PROFESSIONAL APPRAISER ORGANIZATIONS, EDUCATION PROVIDERS, AND CONSUMER, CIVIL RIGHTS, AND FAIR HOUSING ADVOCACY GROUPS. THE FORUM'S PANELISTS INDICATED BROAD SUPPORT FOR REQUIRING THAT QUALIFYING EDUCATION AND CONTINUING EDUCATION INCLUDE FOCUSED DISCUSSION OF FAIR HOUSING LAWS AND VALUATION BIAS. THE AQB EXPLORED DEVELOPING A PROPOSED COURSE OUTLINE THAT EDUCATION PROVIDERS OUTSIDE OF THE FOUNDATION COULD USE TO DEVELOP THESE COURSES. THE FORUM WAS ATTENDED BY 293 ATTENDEES; A RECORDING IS AVAILABLE ON THE FOUNDATION'S YOUTUBE CHANNEL. AS A RESULT OF THIS FORUM AND OTHER WORK, THE AQB FINISHED THE YEAR WITH PLANS TO DRAFT AND RELEASE, IN 2023, A FIRST EXPOSURE DRAFT OF PROPOSED CHANGES TO THE REAL PROPERTY APPRAISER QUALIFICATION CRITERIA. THE PROPOSED CHANGES ARE RELATED TO ADDING REQUIREMENTS FOR COURSES THAT FOCUS SOLELY ON FAIR HOUSING LAWS AND VALUATION BIAS AS REQUIRED COMPONENTS OF AN APPRAISER'S QUALIFYING AND CONTINUING EDUCATION. PAREA A NEW PATHWAY FOR ASPIRING APPRAISERS THE PRACTICAL APPLICATIONS OF REAL ESTATE APPRAISAL (PAREA) PROVIDES ANOTHER PATHWAY, IN ADDITION TO THE PRACTICUM EXPERIENCE MODEL AND THE EXISTING SUPERVISOR/TRAINEE MODEL, FOR ASPIRING APPRAISERS TO FULFILL THEIR EXPERIENCE REQUIREMENTS BY TAKING ADVANTAGE OF INNOVATIVE TECHNOLOGY. IN 2022, THE AQB CONTINUED TO REVIEW PRELIMINARY CONCEPT SUBMISSIONS FROM PAREA DEVELOPERS. AS OF DECEMBER 31, 2022, THE AQB HAD REVIEWED NINE CONCEPT PROPOSALS FROM POTENTIAL PAREA PROVIDERS. THE AQB PROVIDED MATRICES AND OTHER RESOURCE MATERIALS FOR POTENTIAL PAREA PROVIDERS TO GUIDE THEM AS THEY DEVELOPED THEIR PROGRAMS. THE AQB ALSO CONDUCTED OUTREACH TO STATES BY OFFERING TO ATTEND STATE BOARD MEETINGS TO SPEAK ABOUT PAREA. THE AQB PRESENTED ON PAREA AT MEETINGS IN ALASKA, ARKANSAS, FLORIDA, HAWAII, IOWA, MAINE, MASSACHUSETTS, MISSOURI, MONTANA, NEW MEXICO, NEW YORK, OHIO, OREGON, PENNSYLVANIA, TEXAS, VIRGINIA, WEST VIRGINIA, AND WISCONSIN. THE AQB PLANS TO CONTINUE THIS OUTREACH IN 2023, FOCUSING ON THE STATES THAT HAVE NOT YET DECIDED ABOUT ADOPTING PAREA. AS OF DECEMBER 31, 2022, THE AQB'S INFORMAL TRACKING INDICATED THAT 39 STATES HAD ELECTED TO ADOPT PAREA AS AN ALTERNATIVE WAY TO GAIN EXPERIENCE. IMPROVING THE COURSE APPROVAL PROGRAM THE AQB CONTINUED TO ADMINISTER ITS COURSE APPROVAL PROGRAM (CAP), A PROGRAM DESIGNED TO HELP STATE REGULATORY AGENCIES APPROVE QUALIFYING AND CONTINUING EDUCATION. TO EXPLAIN THE DETAILS OF THE CAP PROCESS, FOUNDATION STAFF PRESENTED ON CAP AT THE ASSOCIATION OF APPRAISER REGULATORY OFFICIALS SPRING CONFERENCE. AS OF DECEMBER 31, 2022, THERE WERE APPROXIMATELY 323 CAP-APPROVED COURSES, 16 OF WHICH ARE USPAP COURSES. UPDATING THE NATIONAL EXAM IN 2022, THE AQB CONDUCTED AN ANNUAL REVIEW OF THE EXAM QUESTIONS FOR THE NATIONAL UNIFORM LICENSING AND CERTIFICATION EXAMINATIONS. THE ANNUAL REVIEW WAS FIRST CONDUCTED JANUARY 1, 2008, WHEN BOTH THE UPDATED CRITERIA AND THE NATIONAL UNIFORM LICENSING AND CERTIFICATION EXAMINATIONS WERE IMPLEMENTED. TO REVIEW AND UPDATE THE EXAM QUESTIONS, THE AQB ENGAGED A GROUP OF SUBJECT MATTER EXPERTS (SMES). EACH YEAR, UNDER THE DIRECTION OF PSI, A NATIONAL TESTING FIRM, THE NATIONAL EXAM SMES REVIEW THE PERFORMANCE OF EXAM QUESTIONS. THE SME'S ALSO WRITE NEW EXAM QUESTIONS THAT UNDERGO THE ANGOFF RATING PROCESS. DEGREE REVIEW PROGRAM OUTREACH TO VETERANS, HBCUS, AND HSIS IN 2022, THE AQB CONTINUED TO RECEIVE APPLICATIONS FROM COLLEGES WHO CHOOSE TO HAVE THEIR GRADUATE AND UNDERGRADUATE REAL ESTATE DEGREE PROGRAMS EVALUATED. THE DEGREE REVIEW PROGRAM DETERMINES IF THEIR REAL ESTATE COURSES MEET THE QUALIFYING EDUCATION REQUIREMENTS OF THE CRITERIA. AS A RESULT OF THIS WORK, PROGRAMS FROM THE FOLLOWING COLLEGES/UNIVERSITIES HAD THEIR DEGREES APPROVED IN 2022: - INDIANA UNIVERSITYPURDUE UNIVERSITY INDIANAPOLIS - UNIVERSITY OF CENTRAL FLORIDA - UNIVERSITY OF MISSOURI, KANSAS CITY - TEXAS TECH UNIVERSITY SINCE THE BEGINNING OF THIS PROGRAM, THE AQB HAS APPROVED A TOTAL OF 25 UNDERGRADUATE PROGRAMS, 13 GRADUATE PROGRAMS, AND ONE ASSOCIATE PROGRAM. ADDITIONAL COLLEGE AND UNIVERSITY DEGREE PROGRAMS ARE CURRENTLY BEING REVIEWED. THE PROGRAM CONTINUED ITS OUTREACH TO COLLEGE DEGREE PROGRAMS WITH LARGE VETERAN POPULATIONS, HISTORICALLY BLACK COLLEGES AND UNIVERSITIES (HBCUS), AND HISPANIC SERVING INSTITUTIONS (HSIS) AND IS ALSO WORKING WITH SEVERAL APPRAISAL MEMBERSHIP ORGANIZATIONS TO FIND WAYS TO COLLABORATE ON FUTURE OUTREACH. IN 2022, THE FOUNDATION'S TOP VIEWED LINKEDIN AND FACEBOOK POSTS CONTAINED INFORMATION ABOUT NEWLY APPROVED DEGREE PROGRAMS. CERTIFYING USPAP INSTRUCTORS THE FOUNDATION OFFERS THE INSTRUCTOR CERTIFICATION COURSE (ICC) TO CERTIFY INSTRUCTORS TO TEACH USPAP COURSES. IT IS A CHALLENGING TWO-DAY COURSE FOLLOWED BY AN EXAM. EACH YEAR, EXISTING QUALIFIED USPAP INSTRUCTORS CAN ELECT TO REMAIN CERTIFIED BY COMPLETING AN ONLINE INSTRUCTOR RECERTIFICATION COURSE. IN 2022, THE COURSE WAS OFFERED THROUGH MARCH 31, 2022, AND 405 INSTRUCTORS RENEWED THEIR CERTIFICATION TO REMAIN QUALIFIED TO TEACH THROUGH MARCH 31, 2024. ON MARCH 15, 2022, THE AQB ALSO RELEASED REVISED INSTRUCTOR CERTIFICATION COURSE (ICC) POLICIES. STUDENTS CAN NOW TAKE ICC ANY TIME THE COURSE IS OFFERED, AND THERE IS NO LONGER A LIMIT ON THE NUMBER OF TIMES THE COURSE MAY BE TAKEN IN A 10-YEAR PERIOD. CLICK HERE TO READ THE FULL POLICIES. USPAP EDUCATION REVISED PART 2 OF THE 7-HOUR UPDATE COURSE THE AQB, IN COLLABORATION WITH THE APPRAISAL STANDARDS BOARD, UPDATED PART 2 OF THE STUDENT MANUAL FOR THE 7-HOUR NATIONAL USPAP UPDATE COURSES TO FOCUS ON AN ISSUE THAT HAS GREAT IMPORTANCE FOR THE APPRAISAL PROFESSION: APPRAISAL BIAS AND ILLEGAL DISCRIMINATION. ALLEGATIONS OF DISCRIMINATION OR BIAS IN RESIDENTIAL REAL PROPERTY APPRAISALS HAVE RECEIVED CONSIDERABLE MEDIA COVERAGE IN THE RECENT PAST, HIGHLIGHTING THE IMPORTANCE OF THE APPRAISER'S RESPONSIBILITY TO COMPLY WITH APPLICABLE ANTIDISCRIMINATION LAW AND PROTECT THE OVERALL PUBLIC TRUST. THE REVISED PART 2, RELEASED IN NOVEMBER, IS TITLED: "FAIR HOUSING UPDATE: CRITICAL NEW INFORMATION FOR APPRAISERS." Q&AS RELEASED IN 2022, THE AQB RELEASED SEVEN Q&AS: THE APPRAISAL EXPERIENCE LOG AND SUCCESSFUL COMPLETION OF A PAREA PROGRAM COMPLETING AN APPRAISAL WITHOUT A CLIENT (FOR EXPERIENCE CREDIT) HYBRID COURSE OFFERINGS PAREA & GEOGRAPHICAL COMPETENCY VERIFYING QUALIFYING EDUCATION AFTER THE SUCCESSFUL COMPLETION OF A PAREA PROGRAM PARTIAL PAREA ADOPTION AND EXPERIENCE REQUIREMENTS PERSONAL PROPERTY CRITERIA AND THE 7-HOUR USPAP UPDATE COURSE THE BOARD ALSO ISSUED SERIES OF Q&AS: PAREA MENTORS USPAP EXTENSION

PUBLICATIONS AND INSTRUCTOR EDUCATION THE FINANCIAL INSTITUTIONS REFORM, RECOVERY, AND ENFORCEMENT ACT OF 1989 RECOGNIZES THE UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE (USPAP) AS THE GENERALLY ACCEPTED REAL PROPERTY APPRAISAL STANDARDS AND REQUIRES USPAP COMPLIANCE FOR APPRAISERS IN FEDERALLY RELATED TRANSACTIONS. THE APPRAISAL FOUNDATION PUBLISHES AND SELLS THE USPAP MANUAL ALONG WITH A SERIES OF COURSES RELATED TO THE STANDARDS. THESE COURSES ARE AVAILABLE FOR SEVERAL APPRAISAL DISCIPLINES: BUSINESS VALUATION, PERSONAL PROPERTY, MASS APPRAISAL, AND REAL PROPERTY. THE FOUNDATION ALSO IS THE PUBLISHER AND SELLS THE US DEPARTMENT OF JUSTICE'S UNIFORM APPRAISAL STANDARDS FOR FEDERAL LAND ACQUISITIONS (YELLOW BOOK). THE FOUNDATION OFFERS THE INSTRUCTOR CERTIFICATION COURSE (ICC) TO CERTIFY INSTRUCTORS TO TEACH USPAP COURSES. IT IS A CHALLENGING TWO-DAY COURSE FOLLOWED BY AN EXAM. IN OCTOBER 2021, THE COURSE WAS OFFERED VIRTUALLY FOR THE SECOND TIME. AFTER THE SUCCESSFUL ONLINE COURSE, THE AQB WAS ABLE TO WELCOME 11 NEW USPAP INSTRUCTORS. THE INSTRUCTOR RECERTIFICATION COURSE (IRC) OPENED ON OCTOBER 1, 2021, AND INSTRUCTORS HAVE UNTIL MARCH 31, 2022, TO RECERTIFY.