Section 1107.2. Individual continuing education requirements

(a) For State license and certification periods that commence on or after January 1, 2000, real estate appraisers and real estate appraiser assistants who hold State licenses or certifications must successfully complete 28 hours of approved continuing education, every two years including the seven-hour National USPAP update course, or its equivalent, as prescribed by section 1107.9 of this Part, in order to renew their licenses or certifications.

New Section 1107.33 is added to Title 19 of the NYCRR as follows:

New Section 1107.34 is added to Title 19 of the NYCRR as follows:

(1) Fair housing, fair lending requirements, and the history of lending 2 hours

(a) What is fair housing?

(b) What is fair lending?

(c) Roadblocks to fair housing/lending

(d) Federal laws Civil Rights Act of 1866

(e) New York State Law - Executive Law includes the Civil Rights Law of the State (NY Human Rights Law - Article 15)

(f) Local Regulations

(g) Exemptions and Exceptions

(h) USPAP/FIRREA

(i) Enforcement and Duties

1. Statutory authority:

New York Executive Law section 160-d authorizes the New York State Board of Real Estate Appraisal (the “Board”) to adopt regulations in aid or furtherance of Article 6-E of the Executive Law. One of the purposes of Article 6-E is to ensure, among other things, that appraisers demonstrate competency in providing appraisal services by completing appropriate continuing education coursework. 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 rule making.

2. Legislative objectives:

Pursuant to Executive Law, Article 6-E, the Department, in conjunction with the Board, licenses and regulates real estate appraisers and real estate appraiser assistants. To provide protections against unqualified persons, the Article and existing regulations require licensees and certificate holders complete 28 hours of continuing education. The proposed rule advances this legislative objective by ensuring that individuals holding a license or certification complete educational courses of study specifically devoted to fair housing matters which ensures appraisers are producing accurate and fair appraisals.

3. Needs and benefits:

By mandating fair housing education, this rulemaking will assist in combating discrimination in real estate transactions and appraisal practices. The rule therefore advances a compelling public interest of promoting equality and greater accuracy in appraisal reporting.

4. Costs:

a. Costs to regulated parties:

The Department anticipates no new costs to licensed or certified appraisers seeking a renewal. Appraisers customarily pay for their education by the credit hour and as the total number of hours are not being changed, the Department does not anticipate that appraisers will see any new costs as a result of this rule. The Board contacted educational providers prior to proposing this rule and does not believe that providers will incur additional costs either.

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 for both individual applicants and occupational schools seeking course approvals.

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:

Individuals seeking to renew a license or certification are required to complete an application establishing, among other things, that they have satisfied the educational standards required by statute for the relevant license or certification. The proposed rule would retain this existing requirement.

Schools seeking authorization to provide an approved course of study are required to apply and provide the Department with course information verifying it will meet the educational objectives. 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 Board and the Department considered not proposing a new rule. It was determined, however, that the proposed regulatory amendments are necessary to address discrimination in the appraisal industry. The Board also contemplated requiring a 3-hour course but determined it was not sufficient to cover the number of topics needed to adequately educate appraisers. The Board also considered mandating these courses as a pre-requisite to original licensure or certification but determined that doing so would adversely impact the licensing process.

9. Federal standards:

The Federal Appraisal Subcommittee (ASC) is granted authority by Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (Title XI), to establish the minimum qualifications for real property appraisers performing appraisals for federally related transactions. States are required to implement appraiser qualifications that are no less stringent than those issued by the ASC. This rule would impose specific fair housing educational requirements that are not mandated by the ASC.

10. Compliance schedule:

The rule will go into effect immediately, upon publication of the notice of adoption, allowing appraisers that desire to take the course early the option to do so. Appraisers starting January 1, 2022 must complete an approved course prior to renewal. The Department believes a cure period is not necessary insomuch as interested parties will have sufficient time to prepare for this rule prior to January 1, 2022.

1. Effect of rule:

The proposed rulemaking amends continuing education requirements for real estate appraisers and appraiser assistants. To provide protections against unqualified appraisers, Article 6-E of the Executive Law requires licensees and certificate holders to satisfy minimum educational requirements. The proposed rule advances this legislative objective by ensuring that appraiser applicants satisfy the minimum educational standards relating to fair housing matters.

Applicants will not be required to take additional hours of education beyond what is currently required, rather the specific hours of education will be adjusted such that an appropriate number of educational hours will now be devoted to fair housing.

The rule does not apply to local governments.

2. Compliance requirements:

Insomuch as the proposed rulemaking applies only to individuals seeking renewal thereof, small businesses and local governments, not applying for such licenses and certifications, will not have additional reporting, recordkeeping or other affirmative obligations with the implementation of these regulations. Applicants seeking a renewal of an existing license or certification are currently required to demonstrate, in part, compliance with certain educational requirements and the proposed rulemaking does not change this requirement.

3. Professional services:

Small businesses and local governments will not need professional services to comply with this rule. As is evident by the nature of this rulemaking, this proposal applies principally to individuals seeking a renewal of a license or certification.

4. Compliance costs:

As the total number of hours are not being changed, the Board and the Department do not believe that adoption of this rule will result in additional incurred costs to interested parties.

5. Economic and technological feasibility:

Small businesses and local governments, not seeking renewal as a real estate appraiser, will not incur any additional costs or require technical expertise as a result of the implementation of these rules. Prior to proposing this rule, the Board and the Department already determined that several courses are already approved to teach fair housing as an elective. Accordingly, it is both economically and technologically feasible for small businesses to comply with the proposed rule. The limitations and requirements imposed by the proposed rulemaking will not significantly increase the costs of doing business. It will also be technologically feasible for small businesses to comply with the proposed rule.

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 on them in terms of compliance.

7. Small business and local government participation:

No significant comments have been received with respect to the proposed rulemaking. On October 26, 2020, the Department and the New York State Board of Real Estate Appraisal discussed at an open meeting these potential changes and voted to move forward the proposal. The public was invited to observe this meeting. Members of the Board also discussed the proposed rule with several schools and received no significant comments suggesting the rule would be burdensome to comply with. 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 interested parties in rural areas of the proposed rulemaking. Additional comments will be received and entertained.

8. Compliance Requirements:

The rule will be effective upon publication of the Notice of Adoption.

9. Cure Period:

The Department is not providing for a cure period prior to enforcement of these regulations. The rule will go into effect immediately, upon publication of the notice of adoption, allowing appraisers that desire to take the course early the option to do so. Appraisers starting January 1, 2022 must complete an approved course prior to renewal. The Department believes a cure period is not necessary insomuch as interested parties will have sufficient time to prepare for this rule prior to January 1, 2022.

1. Types and estimated numbers of rural areas:

The proposed rulemaking does not impose any adverse impact on rural areas. The proposed rule adjusts the requirements for continuing education by mandating a new course devoted to fair housing matters. The new course would be taken within the existing 28 hours of education, of which 21 hours can be satisfied by completing any approved class. Individuals seeking to renew an existing license or certification, will not have to satisfy any additional hours of education beyond what is currently required. The rule changes the topics of mandatory education and applies equally throughout all regions of the state.

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

The Department does not anticipate any additional reporting, recordkeeping and other compliance requirements of this rule or that professional services that are likely to be needed in rural areas to comply with the rule. Existing statutes and regulations already require minimum education requirements for renewal. The rule making will not add 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. Schools will likely adjust their course outlines and curriculum to be approved to teach the new topic, if they elect to offer such courses.

3. Costs:

The proposed rulemaking does not impose any costs on rural areas to comply this rule that would not be applicable in other areas of the state.

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 with respect to the proposed rulemaking. On October 26, 2020, the Department and the New York State Board of Real Estate Appraisal discussed at an open meeting these potential changes and voted to move forward the proposal. The public was invited to observe this meeting. 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 interested parties in rural areas of the proposed rulemaking. Additional comments will be received and entertained.

As is evident by the nature of this rulemaking, this proposal will not have a substantial adverse impact on jobs or employment opportunities. The rule amends existing requirements regarding educational courses of study for those seeking to renew a license or registration, by mandating either a new 7- or 4-hour course to be taken within the existing 28 hours of mandatory continuing education. Under current requirements, real estate appraisers and real estate appraiser assistants are required to complete 28 hours of education, every two years, of which 21 hours can be satisfied by taking any approved elective courses. This rule will require that starting January 1, 2022, any person holding a license or registration to complete either the 7- or 4-hour course during such renewal period. Insomuch as the overall hours of total education are not being increased, and the Department and the Board of Real Estate found that similar courses already exist, mostly as electives, it is not anticipated that these amendments will negatively impact jobs or employment opportunities.