(a) Education requirements for New York State appraiser assistants. An applicant must satisfactorily complete the following courses within the five (5) year period prior to the date of submission of an appraiser assistant application:

19 NYCRR § 1103.2(b)(2) is amended to read as follows:

(2) In addition to the education requirements in paragraph 1 of this subdivision, a licensed real estate appraiser applicant must also satisfactorily complete two years of real property appraisal experience as provided in section 160-k of the Executive Law. Applicants for a license as a real estate appraiser shall also successfully complete 30 semester hours of college-level education from an accredited college, junior college, community college or university, or hold an associate degree, or higher from an accredited college, junior college, community college or university. The college or university must be a degree-granting institution accredited by the Commission on Colleges, a regional or national accreditation association, or by an accrediting agency that is recognized by the U.S. Secretary of Education. If an accredited college or university accepts the College-Level Examination Program (CLEP) and examination(s) and issues a transcript for the exam showing its approval, it will be considered as credit for the college course. Applicants with a college degree from a foreign country may have their education evaluated for equivalency by one of the following:

(i) An accredited, degree-granting domestic college or university;

(ii) The American Association of Collegiate Registrars and Admissions Officers (AACRAO);

(iii) A foreign degree credential evaluation service company that is a member of the National Association of Credential Evaluation Services (NACES); or

(iv) A foreign degree credential evaluation service company that provides equivalency evaluation reports accepted by an accredited degree-granting domestic college or university or by a state licensing board that issues credentials in another discipline.

19 NYCRR § 1103.2(c)(2) is amended, and a new § 1103.2(c)(3) is added to read as follows:

(2) In addition to the aforementioned education requirements, prospective licensees for a New York State certified residential real estate appraiser certification shall [either:

(i) hold an associate degree, or higher, from an accredited college, junior college, community college, or university; or

(ii) have successfully completed 21 semester hours in the following courses from an accredited college, junior college, community college, or university: English composition; principles of economics (micro or macro); finance; algebra, geometry, or higher mathematics; statistics; computer science; and business or real estate law.] hold a bachelor’s degree or higher from an accredited college or university. The college or university must be a degree-granting institution accredited by the Commission on Colleges, a regional or national accreditation association, or by an accrediting agency that is recognized by the U.S. Secretary of Education.

(3) Applicants with a college degree from a foreign country may have their education evaluated for equivalency by one of the following:

(i) An accredited, degree-granting domestic college or university;

(ii) The American Association of Collegiate Registrars and Admissions Officers (AACRAO);

(iii) A foreign degree credential evaluation service company that is a member of the National Association of Credential Evaluation Services (NACES);

(iv) A foreign degree credential evaluation service company that provides equivalency evaluation reports accepted by an accredited degree-granting domestic college or university or by a state licensing board that issues credentials in another discipline.

19 NYCRR § 1103.2(d)(2) is amended, and a new § 1103.2(d)(3) is added to read as follows:

(2) In addition to the aforementioned education requirements, prospective licensees for a NYS certified general real estate appraiser certification shall [either:

(i)] hold a bachelor’s degree, or higher, from an accredited college or university[; or

(ii) have successfully completed 30 semester hours in the following courses from an accredited college, junior college, community college or university: English composition; micro economics; macro economics; finance; algebra, geometry or higher mathematics; statistics; computer science; business or real estate law; and two elective courses in accounting, geography, agricultural economics, business management, or real estate]. The college or university must be a degree-granting institution accredited by the Commission on Colleges, a regional or national accreditation association, or by an accrediting agency that is recognized by the U.S. Secretary of Education.

(3) Applicants with a college degree from a foreign country may have their education evaluated for equivalency by one of the following:

(i) An accredited, degree-granting domestic college or university;

(ii) The American Association of Collegiate Registrars and Admissions Officers (AACRAO);

(iii) A foreign degree credential evaluation service company that is a member of the National Association of Credential Evaluation Services (NACES);

(iv) A foreign degree credential evaluation service company that provides equivalency evaluation reports accepted by an accredited degree-granting domestic college or university or by a state licensing board that issues credentials in another discipline.

19 NYCRR § 1103.6(b) is amended to read as follows:

19 NYCRR § 1103.6(e) is amended to read as follows:

19 NYCRR § 1103.6(g) is amended to read as follows:

19 NYCRR § 1103.10(b) is amended to read as follows:

A new 19 NYCRR § 1107.4(a)(1) is added to read as follows:

(1) Notwithstanding this subdivision (a) of this Section, an applicant for recertification or renewal of license may receive credit of up to 50% of the hourly requirements by presenting evidence of acceptable equivalency experience as provided by subdivisions (b)-(d) of this Section.

19 NYCRR § 1107.12 is amended to read as follows:

Approval may be granted for courses of study which cover real estate appraisal related topics such as the following:

(a) ad valorem taxation;

(b) arbitration[s], dispute resolution;

(c) [business] courses related to the practice of real estate appraisal or consulting;

(d) [construction estimating] development cost estimating;

(e) ethics and standards of professional practice, USPAP;

(f) land use planning, zoning [and taxation];

(g) [litigation;]

[(h)] management, leasing, [brokerage,] time sharing;

(h)[(i)] property development, partial interests;

[(j) real estate appraisal (valuations/evaluations);]

(i)[(k)] real estate (financing and investment);

(j)[(l)] real estate law, easements, and legal interests;

(k)[(m)] real estate litigation, damages, condemnation;

(l)[(n)] real estate appraisal related computer applications;

(m)[(o)] real estate securities and syndication;

[(p) real property exchange;]

(n) developing opinions of real property value in appraisals that also include personal property and/or business value;

(q) any other subject matter directly related to real estate appraisal.

1. Statutory authority:

Executive Law section 160-d (Art. 6-E) authorizes the New York State Board of Real Estate Appraisal (the “Board”) to adopt regulations in aid or furtherance of the statute. One of the purposes of Executive Law Article 6-E is to ensure the qualification of licensed and certified real estate appraisers. To meet this purpose, the Department of State (the “Department”), in conjunction with the Board, has issued rules and regulations which are found at Chapter XXXI of Title 19 of the NYCRR and is proposing this rulemaking.

2. Legislative objectives:

Pursuant to Executive Law Article 6-E, the Department, in conjunction with the Board, licenses and regulates real estate appraisers. To provide protections against unqualified appraisers, the statute requires licensees and certificate holders to satisfy minimum educational and experiential requirements. The proposed rule advances this legislative objective by ensuring that appraiser applicants satisfy the minimum standards required for licensure or certification.

3. Needs and benefits:

The Federal Appraisal Qualifications Board (the “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 (Title XI), establishes minimum qualification standards for real property appraisers. Recent changes to the AQB requirements mandate that new appraisers seeking certification or licensure satisfy new requirements with respect to hours of education and experience. States are required to implement appraiser standards that are no less stringent than those issued by the AQB.

By adding the regulations as proposed, the Department will meet updated AQB requirements and ensure that appraiser applicants meet federal minimum qualification standards.

4. Costs:

a. Costs to regulated parties:

The Department anticipates that individuals seeking new licensure and/or certification will have to assume additional costs associated with new educational requirements. Such costs however are necessary to ensure that the State’s appraiser licensing and certification program remains in good standing.

b. Costs to the Department of State:

The Department does not anticipate any additional costs to implement the rule. Existing staff will handle the processing of applications received from both individual applicants seeking appraiser licensure or certification, and occupational schools seeking approvals for courses that incorporate the updated requirements.

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:

In applying for an appraisal license or certification, applicants are required to complete an application establishing that they have satisfied the educational and hours of experience standards set by statute for the relevant license or certification. The proposed rule would retain this existing requirement.

7. Duplication:

This rule does not duplicate, overlap or conflict with any other state or federal requirement.

8. Alternatives:

The Department considered not proposing these amendments. It was determined, however, that the proposed regulatory amendments are necessary to meet the Department’s obligation to ensure that licenses are granted to qualified applicants in compliance with minimum federal standards established by the AQB. If the Department fails to adopt these requirements, the New York appraisal program could lose Federal recognition. This could result in federal financial institutions and many State financial institutions being prohibited from accepting appraisals from New York real estate appraisers. This would affect virtually all mortgage and refinance transactions. Appraisers licensed or certified by the State of New York would possibly be prohibited from preparing an appraisal for any such transaction. The hardship and disruption for the State’s financial community, as well as for buyers and sellers of real estate within the State would be significant if the Department does not adopt the instant rulemaking.

9. Federal standards:

The Federal Appraisal Qualifications Board (the “AQB”), in accordance with the authority granted to said body pursuant to Title XI, establishes minimum qualification standards for real property appraisers. States are required to implement appraiser standards that are no less stringent than those issued by the AQB.

10. Compliance schedule:

The rule will be effective January 1, 2015. Insofar as the AQB and the Department have conducted outreach to the regulated public and considered the relevant changes that will be effected by this rulemaking, licensees and prospective licensees will be able to comply with the rule.

1. Effect of rule:

The proposed rulemaking amends experiential and educational qualification standards for individuals applying for state licensure or certification as a real estate appraiser. To provide protections against unqualified appraisers, Article 6-E of the Executive Law requires licensees and certificate holders to satisfy minimum standards. The proposed rule advances this legislative objective by ensuring that appraiser applicants satisfy the minimum educational standards required for licensure or certification as established by state and federal laws, regulations and guidelines. The Federal Appraisal Qualifications Board (the “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 (Title XI), establishes minimum qualification standards for real property appraisers. States are required to implement appraiser standards that are no less stringent than those issued by the AQB.

By amending the regulations as proposed, the Department will satisfy recently updated AQB requirements and ensure that appraiser applicants meet such minimum qualification standards.

The proposed amendments will: 1) require new appraiser assistants to complete an additional 4-hour trainee course; 2) require new licensed appraisers to complete 30 hours of college-level education prior to licensure; 3) require new certified residential appraisers to hold a bachelor’s degree or higher prior to certification; 4) require new certified general appraisers to hold a bachelor’s degree or higher prior to certification; 5) amend various course outlines to conform to AQB standards; 6) amend equivalency standards for renewals and certifications to conform to AQB standards; and 7) amend topics of course study for which the Department may grant course approvals.

The rule does not apply to local governments.

2. Compliance requirements:

Because the proposed rulemaking applies only to individuals seeking licensure and/or certification, small businesses and local governments will not have additional reporting, recordkeeping or other affirmative obligations with the implementation of these regulations. The existing state statutes and regulations already require minimum education and experience for licensure; the proposed rulemaking will supplement these current requirements by satisfying new federal AQB requirements.

3. Professional services:

Small businesses and local governments will not need professional services to comply with this rule. Further, applicants seeking licensure or certification will not need to rely on any new professional services in order to comply with the rule. Applicants and licensees are already required to satisfy minimum education and experience qualifications pursuant to Article 6-E of the Executive Law and AQB standards. Because licensees must already complete approved education courses and attain a specified amount of hours of experience, conforming the regulations to the updated AQB standards will not result in their needing to rely on any new professional services.

4. Compliance costs:

The Department anticipates that individuals seeking new licensure and/or certification will have to assume additional costs associated with new educational requirements. Such costs however are necessary to ensure that the State’s appraiser licensing and certification program remains in good standing.

The rule does not impose any compliance costs on local governments.

5. Economic and technological feasibility:

Small businesses and local governments will not incur any significant costs as a result of the implementation of, or require technical expertise to comply with, these rules.

6. Minimizing adverse impact:

The Department did not identify any alternatives which would achieve the results of the proposed rules and at the same time be less restrictive and less burdensome in terms of compliance. The rule does not impose any additional reporting or recordkeeping requirements on licensees and does not require prospective 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 and the AQB standards. The instant rulemaking is necessary to ensure that the State’s appraiser licensing and certification program maintains its good standing. If the Department fails to adopt these requirements, the New York appraisal program could lose Federal recognition. This could result in federal financial institutions and many State financial institutions being prohibited from accepting appraisals from New York real estate appraisers. This would affect virtually all mortgage and refinance transactions. Appraisers licensed or certified by the State of New York would possibly be prohibited from preparing an appraisal for any such transaction. The hardship and disruption for the State’s financial community, as well as for buyers and sellers of real estate within the State would be significant if the Department does not adopt the instant rulemaking.

7. Small business and local government participation:

No significant comments have been received regarding the proposed rulemaking. On April 8, 2014 the Department and the New York State Board of Real Estate Appraisal discussed at an open meeting the updated AQB requirements. Moreover, the Department and the AQB have conducted outreach to regulated parties regarding the new requirements, including a description of the changes which has been available on the Department’s website. Finally, the Notice of Proposed Rule Making will be published by the Department 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 rulemaking. Additional comments will be received and entertained.

8. Compliance:

The rule will be effective January 1, 2015.

9. Cure period:

The Department is not providing for a cure period prior to enforcement of these regulations. Prior to proposing this rule, information regarding the updated AQB requirements was provided on the Department’s website and discussed at an open meeting. As such, licensees have had sufficient prior notice of the proposed regulation and will be given additional notice by way of publication of this Notice of Proposed Rulemaking. The proposed rulemaking is necessary to ensure that new applicants seeking licensure and/or certification satisfy minimum standards established by federal guidelines.

1. Types and estimated numbers of rural areas:

The proposed rulemaking is not expected to have any adverse impact on rural areas. The proposed rule amends current educational and experiential requirements for certain real estate appraiser applicants by conforming them to federal minimum standards.

The Federal Appraisal Qualifications Board (the “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 (Title XI), establishes minimum qualification standards for real property appraisers. States are required to implement appraiser standards that are no less stringent than those issued by the AQB.

By amending the regulations as proposed, the Department of State (the “Department”) will meet updated AQB requirements and ensure that appraiser applicants meet minimum qualification standards.

2. Reporting, recordkeeping and other compliance requirements; and professional services:

The Department does not anticipate any additional reporting, recordkeeping or other compliance requirements as a result of this rule or that professional services are likely to be needed in rural areas to comply with the rule. Existing statutes and regulations already require minimum educational and experiential requirements for licensure; the rulemaking will not impose any new reporting, record-keeping or other compliance requirements on public or private entities in rural areas other than those acts that are already required pursuant to Executive Law Article 6-E and the AQB standards.

3. Costs:

The proposed rulemaking does not impose any costs on rural areas to comply this rule.

4. Minimizing adverse impact:

The Department did not identify any alternatives which would achieve the results of the proposed rule and at the same time be less restrictive and less burdensome.

5. Rural area participation:

No significant comments have been received regarding the proposed rulemaking. On April 8, 2014 the Department and the New York State Board of Real Estate Appraisal discussed at an open meeting the updated AQB requirements. Moreover, the Department and the AQB have conducted outreach to regulated parties regarding the new requirements including a description of the changes which has been available on the Department’s website. Finally, the Notice of Proposed Rule Making will be published by the Department in the State Register. The publication of the rule in the State Register will provide notice to interested parties in rural areas of the proposed rulemaking. Additional comments will be received and entertained.

1. Nature of impact:

The proposed rulemaking will not have a significant adverse impact on employment opportunities. The proposed rule amends current educational and experiential requirements for certain real estate appraiser applicants by conforming them to federal minimum standards.

The Federal Appraisal Qualifications Board (the “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 (Title XI), establishes minimum qualification standards for real property appraisers. States are required to implement appraiser standards that are no less stringent than those issued by the AQB. By amending the regulations as proposed, the Department of State (the “Department”) will meet updated AQB requirements and ensure that appraiser applicants meet minimum qualification standards.

The proposed amendments will: 1) require new appraiser assistants to complete an additional 4-hour trainee course; 2) require new licensed appraisers to complete 30 hours of college-level education prior to licensure; 3) require new certified residential appraisers to hold a bachelor’s degree or higher prior to certification; 4) require new certified general appraisers to hold a bachelor’s degree or higher prior to certification; 5) amend various course outlines to conform to AQB standards; 6) amend equivalency standards for renewals and certifications to conform to AQB standards; and 7) amend topics of course study for which the Department may grant course approvals.

While the Department anticipates that applicants seeking licensure and certification will have to assume some costs associated with satisfying new educational standards, including in some instances college level studies, such costs will not have a significant adverse impact on employment opportunities.

2. Categories and numbers affected:

The proposed rulemaking will not have a significant adverse impact on employment opportunities. The instant rulemaking merely conforms existing educational and experiential regulations to updated minimum standards established by the AQB.

3. Regions of adverse impact:

The proposed rulemaking will not have any disproportionate regional adverse impact on jobs or employment opportunities.

4. Minimizing adverse impact:

The proposed rulemaking will not have a significant adverse impact on employment opportunities. Moreover, the Department did not identify any alternatives which would achieve the results of the proposed rules and at the same time be less restrictive and less burdensome in terms of compliance. The instant rulemaking is necessary to ensure that the State’s appraiser licensing and certification program maintains good standing. If the Department fails to adopt these requirements, the New York appraisal program could lose Federal recognition. This could result in federal financial institutions and many State financial institutions being prohibited from accepting appraisals from New York real estate appraisers. This would affect virtually all mortgage and refinance transactions. Appraisers licensed or certified by the State of New York would possibly be prohibited from preparing an appraisal for any such transaction. The hardship and disruption for the State’s financial community, as well as for buyers and sellers of real estate within the State would be significant if the Department does not adopt the instant rulemaking.