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DEPARTMENT OF CONSUMER AND REGULATORY AFFAIRS
NOTICE OF PROPOSED RULEMAKING
The Director of the Department of Consumer and Regulatory Affairs, pursuant to the authority set forth in D.C. Official Code § 47-2853.10(a)(11) and (12) (2005 Repl.) and Mayor’s Order 2000-70, dated May 2, 2000, hereby gives notice of the intent to adopt the following amendments to chapter 23 (Real Estate Appraisers) of title 17 (Business, Occupations, and Professions) of the District of Columbia Municipal Regulations in not less than thirty (30) days from the date of publication of this notice in the D.C. Register.
This proposed rulemaking updates the real estate appraiser professional license regulations to reflect recent changes to industry standards and to clarify existing requirements implemented by the Appraisal Foundation’s Appraisal Qualifications Board. The Appraisal Foundation is congressionally authorized to establish and enforce national standards and qualifications for all real property appraisers who appraise real property in federally-related real estate transactions. All jurisdictions that license real estate appraisers must adopt standards that meet the minimum industry requirements established by the Appraisal Foundation’s Appraisal Qualifications Board.
In addition, this proposed rulemaking will allow for the adjustment of the National Registry Fee, a biennial renewal fee assessed by the Appraisal Subcommittee (ASC) of the Federal Financial Institutions Examination Council. The ASC was established to provide oversight of the real estate appraisal process as it relates to federally-related real estate transactions, and oversees the appraiser regulatory programs established by the states, territories, and the District of Columbia. The District must ensure that all licensed and certified real estate appraisers pay the National Registry Fee in accordance with section 1109 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. § 3338).
Title 17, BUSINESS, OCCUPATIONS, AND PROFESSIONS, chapter 23, REAL ESTATE APPRAISERS, of the District of Columbia Municipal Regulations is amended as follows:
Section 2301, GENERAL REQUIREMENTS FOR LICENSURE, is amended as follows:
Subsection 2301.1 is amended to read as follows:
2301.1 An applicant for a license shall do the following:
(a) Submit a completed application on a form that the Board supplies;
(c) Submit to the Board all required supporting credentials, documents, and materials that the Board requests including the following:
(4) Proof of successful completion of prelicensing or precertification coursework; and
(5) A completed and notarized affidavit of work experience;
(d) Submit with the application two (2) recent passport-type photographs of the applicant’s face measuring two inches by two inches (2 in. x 2 in.); and
(e) If applicable, the applicant shall submit proof of having passed the examination that the Board requires for the level of licensure desired by the applicant.
Section 2302, PRELICENSURE EDUCATION REQUIREMENTS, is amended to read as follows:
2302 PRELICENSURE EDUCATION REQUIREMENTS
2302.1 Prior to applying for licensure, applicants for the Appraiser Trainee classification shall fulfill the requirements of § 2323.
2302.2 Applicants for the Licensed Residential Real Property Appraiser classification shall complete one hundred fifty (150) classroom hours of courses in subjects related to real estate appraisal, including those subjects listed in § 2302.10.
2302.3 Applicants for the Certified Residential Real Property Appraiser classification shall complete two hundred (200) classroom hours in subjects related to real estate appraisal, including those courses listed in § 2302.10. The two hundred (200) classroom hours may include the one hundred fifty (150) classroom hour requirement for the Licensed Real Property Appraiser classification. Applicants shall also have at least a two (2)-year associate’s degree or have completed twenty-one (21) hours of college course work. The twenty-one (21) hours of college course work shall have been earned from an accredited college, junior college, community college, or university in the following subjects:
(b) Principles of economics (micro or macro);
(d) Algebra, geometry, or higher mathematics;
(g) Business or real estate law.
2302.4 Applicants for the Certified General Real Property Appraiser classification shall complete three hundred (300) classroom hours of courses in subjects related to real estate appraisal, including those courses listed in § 2302.10. The three hundred (300) hours may include the one hundred fifty (150) classroom hours required for the Licensed Residential Appraiser classification or the two hundred (200) classroom hours required for the Certified Residential Real Property Appraiser Classification. Applicants shall also possess at least a bachelor’s degree or have completed thirty (30) hours of college course work earned from an accredited college, junior college, community college, or university in the following subjects:
(e) Algebra, geometry, or higher mathematics;
(h) Business or real estate law; and
(i) Two (2) elective courses in accounting, geography, ag-economics, business management, or real estate.
2302.5 The Board shall not grant credit toward the prelicensure classroom hour requirement unless the length of a class is at least fifteen (15) hours and the individual passes an examination pertinent to that class.
2302.6 Prelicensure course coverage on the USPAP for all license classifications shall include the greater of fifteen (15) hours or the minimum hours required by the AQB.
2302.7 Prelicensure education credit for the Uniform Standards of Professional Appraisal Practice (USPAP) course shall only be awarded to licensees completing a USPAP course taught by an Appraisal Qualifications Board (AQB)-certified instructor who is also a certified appraiser.
2302.8 The applicant shall list all qualifying courses, seminars, workshops, or conferences on the Board’s official form. The applicant shall sign the form and have the form notarized by a notary public. The applicant shall attach proof of completion of the required courses to the application, which shall consist of course certificates signed by the course providers or an official transcript in an envelope sealed by the school.
2302.9 An applicant shall not use courses that he or she has taught to satisfy the prelicensure or precertification educational requirements.
2302.10 The required prelicensure core curriculum for each license classification shall meet or exceed the requirements that the AQP establishes. Course content shall substantially comply with the AQB’s guidelines for curriculum content as indicated in the AQB required core curriculum, “AQB Guide Note 1 (GN-1).” The prelicensure core curriculum for each license classification shall be as follows:
(a) Appraisal Trainee (total – seventy-five (75) hours):
(1) Basic appraisal principles – thirty (30) hours;
(2) Basic appraisal procedures – thirty (30) hours; and
(3) The fifteen (15)-hour national USPAP course or its equivalent;
(b) Licensed Residential Real Property Appraiser classification shall include coverage of the following topics (total – one hundred fifty (150) hours):
(1) Basic appraisal principles – thirty (30) hours;
(2) Basic appraisal procedures – thirty (30) hours;
(3) The fifteen (15)hour national USPAP course or its equivalent – fifteen (15) hours;
(4) Residential market analysis and highest and best use – fifteen (15) hours;
(5) Residential appraiser site valuation and cost approach – fifteen (15) hours;
(6) Residential sales comparison and income approaches – thirty (30) hours; and
(7) Residential report writing and case studies – fifteen (15) hours;
(c) Certified Residential Real Property Appraiser (total – two hundred (200) hours):
(1) Basic appraisal principles – thirty (30) hours;
(2) Basic appraisal procedures – thirty (30) hours;
(3) The fifteen (15)-hour national USPAP course or its equivalent – fifteen (15) hours;
(4) Residential market analysis and highest and best use – fifteen (15) hours;
(5) Residential appraiser site valuation and cost approach – fifteen (15) hours;
(6) Residential sales comparison and income approaches – thirty (30) hours;
(7) Residential report writing and case studies – fifteen (15) hours;
(8) Statistics, modeling, and finance – fifteen (15) hours;
(9) Advanced residential applications and case studies – fifteen (15) hours; and
(10) Appraisal subject matter electives – twenty (20) hours (may include hours over minimum shown above in other modules); and
(d) Certified General Real Property Appraiser (total – three hundred (300) hours):
(1) Basic appraisal principles – thirty (30) hours;
(2) Basic appraisal procedures – thirty (30) hours;
(3) The fifteen (15)-hour national USPAP course or its equivalent – fifteen (15) hours;
(4) General appraiser market analysis and highest and best use – thirty (30) hours;
(5) Statistics, modeling, and finance – fifteen (15) hours;
(6) General appraiser sales comparison approach – thirty (30) hours;
(7) General appraiser site valuation and cost approach – thirty (30) hours;
(8) General appraiser income approach – sixty (60) hours;
(9) General appraiser report writing and case studies – thirty (30) hours;
(10) Appraisal subject matter electives – thirty (30) hours (may include hours over minimum shown above in other modules).
2302.11 The following factors shall be used to convert university, college, junior college, and community college course credits into classroom hours:
(a) Semester credits x fifteen (15) = classroom hours; and
(b) Quarter credits x ten (10) = classroom hours.
2302.12 Curriculum content for each course listed in § 2302.10 shall comply with the applicable portions of the “Required Core Curriculum Content Guide Note” published by the Appraisal Foundation and the AQB as part of the Real Property Appraiser Qualification Criteria. The Board may add additional requirements to the curriculum of any license classification if the Board’s additions substantially comply with AQB criteria. Additions to the curriculum content shall be effective only after the Department publishes a Notice of Final Rulemaking in the D.C. Register.
2302.13 The education and experience requirements for all classes of licensure shall meet or exceed the standards established by the AQB.
2302.14 If the AQP amends the education or experience requirements for any license classification, and the amendments increase the education or experience requirements beyond the requirements established by the Board in this chapter, then the corresponding requirements established by the Board shall be deemed amended to reflect the AQB’s requirements. The Board shall amend this chapter as soon as practicable to reflect any changes that the AQP makes to the education and experience requirements.
2302.15 Amendments to the prelicensing education, and experience requirements shall not affect the status of licensees possessing current active licenses unless the AQP otherwise requires.
Section 2306, TEMPORARY PRACTICE, is amended as follows:
Subsection 2306.1 is amended to read as follows:
2306.1 Pursuant to section 1121 of the Federal Financial Institutions Reform, Recovery, and Enforcement Act of 1989, 12 U.S.C. § 1811, and the Act, the Board shall issue an individual a temporary license if the individual completes an application that the Board requires and provides documentation that he or she meets the following requirements:
(a) The individual is licensed or certified and in good standing under the laws of another state;
(b) The property or properties to be appraised by the individual is part of a federally-related transaction, is located in the District, and the assignment and property or properties are specifically identified in the application;
(c) The appraisal assignment is of a temporary nature and is limited to one (1) specific assignment or six (6) months, whichever is shorter;
(d) Upon completion of the assignment, the temporary license is surrendered to the Board; and
(e) The individual pays the applicable fee.
Section 2309, LICENSE RENEWAL, is amended to read as follows:
2309 LICENSE RENEWAL
2309.1 At least sixty (60) days prior to the expiration of a license, the Board shall send a renewal application by first class mail to the holder of a license at the licensee’s address on record with the Board.
2309.2 A holder of a license shall meet all of the requirements for license renewal prior to the issuance of the renewal.
2309.3 A holder of a license shall provide the Board a street address for the licensee’s residence, not a post office box, and shall notify the Board in writing of any change to the home or business address within thirty (30) days of the change.
2309.4 The failure of a holder of a license to receive the notice required by § 2309.1 of this section does not relieve the holder of the responsibility of renewing the license.
2309.5 A holder of a license who fails to renew before the expiration date may renew the license within sixty (60) days after expiration upon paying the required late fee and submitting proof of having completed the required continuing education prior to the expiration date of the license. Upon renewal, the holder shall be deemed to have possessed a valid license during the period between the expiration of the license and its renewal.
2309.6 If a licensee fails to renew his or her license within sixty (60) days after its expiration, the license shall be deemed to have lapsed on the date of expiration and the holder shall be required to apply for reinstatement of the expired license pursuant to D.C. Official Code § 47-2853.15 (2005 Repl.) and § 3308 of chapter 33 (GENERAL RULES: FUNERAL DIRECTORS, VETERINARIANS, INTERIOR DESIGNERS AND REAL ESTATE APPRAISERS) of this title and pay the required reinstatement fee. A licensee may not apply for reinstatement if the license has been expired for five (5) years or more.
2309.7 The Board shall deny a renewal application if the applicant has not completed the continuing education requirements prior to the expiration date of the license.
2309.8 Denial of an application for renewal for failure to complete the continuing education requirements shall require the applicant to complete the continuing education requirements prior to submitting an application for reinstatement pursuant to § 2310.
Section 2310, CONTINUING EDUCATION REQUIREMENTS, is amended to read as follows:
2310 CONTINUING EDUCATION REQUIREMENTS
2310.1 Except as provided in § 2310.2, this section shall apply to all applicants for the renewal or reinstatement of each license classification.
2310.2 An applicant for renewal or reinstatement of a real estate appraiser license shall be required to satisfactorily complete continuing education courses according to the following schedule:
(a) Applicants obtaining a license one hundred eighty-five (185) days or less from the renewal date required by the license cycle are not required to complete any hours of continuing education for that license cycle;
(b) Applicants obtaining a license during the last twelve (12) months of a license cycle, but before the one hundred eighty-five (185) day period must complete fourteen (14) hours of continuing education for that license cycle;
(c) All other licensees must complete the full twenty-eight (28) hours of continuing education for the license cycle; and
(d) All licensees must complete the seven (7) hour National USPAP Update Course as part of the twenty-eight (28) hours of continuing education.
2310.4 The Board will grant credit toward the classroom hour requirement only when the length of the educational offering is at least three (3) hours.
2310.5 The Board may approve the following continuing education activities, not to exceed (10) hours, if the activity relates to real estate appraising:
(a) Serving as an instructor or speaker at a conference, seminar, or workshop; and
(b) Publication of an article in a professional journal, publication of a book or a chapter in a book, or publication of a review in a professional journal.
2310.6 A continuing education credit shall be valid only if it is a part of a Board-approved program or activity.
2310.8 Continuing education credit for the National USPAP Update Course shall only be awarded to licensees completing USPAP continuing education courses taught by an AQB-certified instructor who is also a certified appraiser.
Section 2313, INACTIVE STATUS, is amended to read as follows:
2313 INACTIVE STATUS
2313.1 Upon application by a licensee and payment of the required fee, the Board shall place a licensee on inactive status.
2313.2 The Board shall issue a license to an individual who is on inactive status and who desires to resume practice as a real estate appraiser if the individual meets the following requirements:
(b) Demonstrates completion of all continuing education that would have been required had the individual been on active status; and
(c) Applies for license renewal within five (5) years of going on inactive status.
2313.3 The Board may take disciplinary action against a licensee on inactive status.
2313.4 A licensee may remain on inactive status for a period not to exceed five (5) consecutive years.
Section 2315, CHANGE OF NAME OR ADDRESS, is repealed and replaced with:
2315 REQUIRED NOTIFICATIONS
2315.1 A licensee shall notify the Board in writing within thirty (30) days of any name change or change of business address or residence address.
2315.2 A licensee shall inform the Board in writing within thirty (30) days of pleading guilty or nolo contendere, or being convicted or found guilty of any felony or of any misdemeanor.
2315.3 A licensee shall inform the Board in writing within thirty (30) days of the suspension, revocation, or surrender of his or her appraiser license or certificate held in any other jurisdiction.
Section 2317, NATIONAL REGISTRY FEE ASSESSMENT, is amended as follows:
Subsection 2317.1 is amended to read as follows:
2317.1 In accordance with the requirements of section 1109 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. § 3338), a biennial renewal fee, in an amount set by the Appraisal Subcommittee, assessed for all licensed and certified real estate appraisers, except licensed appraisal trainees, shall be submitted by the Department to the Appraisal Subcommittee.
Section 2319, APPRAISER RECORDKEEPING AND NOTIFICATION REQUIREMENTS, is repealed and replaced with:
2319 APPRAISER RECORDKEEPING
2319.1 A licensee shall retain records of appraisal, analysis, and review assignments, including oral testimony, in the following manner:
(a) For a period of at least five (5) years after preparation of the report generated by the activity; or
(b) If a report was the subject of or used for litigation purposes, and testimony was given, the report shall be kept for two (2) years after final disposition of any judicial proceeding in which testimony was given.
2319.2 A licensee shall, upon demand or request by the Board, promptly produce any document, book, or record concerning any appraisal that the licensee or certificate holder performed.
Section 2320, APPRAISAL INSTRUCTORS, is amended to read as follows:
2320 APPRAISAL INSTRUCTORS
2320.1 To be approved by the Board for prelicensing credit, a course instructor shall be an individual who has been approved as an instructor by one (1) of the bona fide professional appraisal organizations that is a member of the Appraisal Foundation, or be a professor or instructor at a college or university which has an accredited department of real estate and economics.
2320.2 An appraiser instructor of a prelicensing (residential appraisal) course shall possess one hundred five (105) classroom hours of real estate appraisal education and two thousand (2,000) hours experience as a residential real estate appraiser within the previous five (5) years.
2320.3 An appraiser instructor of a precertification (general appraisal) course shall possess two hundred five (205) classroom hours of real estate appraisal education and two thousand (2,000) hours experience as a general real estate appraiser within the previous five (5) years, with at least one-half (1/2) of such experience being in income property appraising.
2320.4 All USPAP courses taught for prelicensure or continuing education purposes shall be taught by AQB-certified instructors who are also certified appraisers.
Section 2323, APPRAISER TRAINEE, is amended to read as follows:
2323 APPRAISER TRAINEE
2323.1 The Board may issue an appraiser trainee license to an applicant who has completed a prelicensure education program that meets the following requirements:
(a) Seventy-five (75) classroom hours of instruction that shall include fifteen (15) hours relative to the USPAP:
(1) A classroom hour is equal to fifty (50) minutes of each sixty (60) minute segment and includes time devoted to tests which are considered to be part of the course;
(2) Classroom hours may only be obtained where the minimum length of the educational offering is fifteen (15) hours and the individual successfully completes an examination pertinent to that educational offering;
(3) Credit for the classroom hours may be obtained from the following:
(B) Community or junior colleges;
(C) Real estate appraisal or real estate related organizations;
(D) State or federal agencies or commissions;
(F) Other providers approved by the Board or the Educational Licensure Commission;
(4) Qualifying education shall have been obtained within the five (5)-year period immediately preceding application for licensure; and
(5) The core curriculum of the prelicensure education requirements that appraiser trainees must complete prior to applying for licensure are thirty (30) hours in basic appraisal principles, thirty (30) hours in basic appraisal procedures, and the fifteen (15) hour National USPAP course or its equivalent. The content of the curriculum offered in the courses, seminars, workshops, or conferences used by an appraiser trainee to meet the prelicensure education requirements shall follow the guidelines established by the AQB in the publication, “AQB Guide Note 1 (GN-1).”
2323.2 There are no examination or experience requirements for the appraiser trainee classification.
2323.3 Within four (4) years of submitting his or her initial application for licensure, the appraiser trainee shall pass one (1) of the following examinations approved by the Board:
(a) The licensed residential real property appraiser examination;
(b) Certified residential real property appraiser examination; or
(c) Certified general real property appraiser examination.
2323.4 The appraiser trainee is subject to direct supervision by a supervising Certified Residential Real Property Appraiser or a Certified General Real Property Appraiser licensed in the District and in good standing.
2323.5 The supervising appraiser shall be responsible for the training and supervision of the trainee by:
(1) Accepting responsibility for appraisal reports prepared by the appraiser trainee by signing and certifying that the report complies with the USPAP;
(2) Reviewing the appraiser trainee reports; and
(3) Personally inspecting each appraised property with the appraiser trainee until the supervising appraiser determines that the appraiser trainee is competent in accordance with the competency provision of the USPAP for the property type.
2323.6 The appraiser trainee may have more than one (1) supervising appraiser, but a certified appraiser may not have more than three (3) appraisal trainees.
2323.7 The appraiser trainee shall maintain an appraiser log and shall include at least the following information for each appraisal record:
(d) Address of appraised property;
(e) Description of work performed, scope of review, and supervision of the supervising appraiser;
(f) Number of actual work hours;
(g) Signature and state or jurisdiction license or certification number of the supervising appraiser; and
(h) Separate appraisal logs shall be maintained for each supervising appraiser.
2323.8 There are no continuing education requirements for the appraiser trainee classification for the first two (2) years of licensure. An appraiser trainee shall complete fourteen (14) hours of continuing education during each calendar year beyond the second year of licensure prior to applying for a license as a Real Property Appraiser, Certified Real Property Appraiser, or Certified General Real Property Appraiser.
2323.9 The appraiser trainee shall be entitled to obtain copies of appraisal reports that he or she prepared.
2323.10 The supervising appraiser shall keep copies of appraisal reports for a period of at least five (5) years or at least two (2) years after the final disposition of any judicial proceedings in which testimony was given, whichever period expires last.
Section 2399, DEFINITIONS, is amended as follows:
Subsection, 2399.1 is amended to add the following terms and phrases in alphabetical order:
Supervising Appraiser – any individual holding a license issued by the Real Estate appraiser Board to act as a certified general real estate appraiser, certified residential real estate appraiser, who supervises an appraiser trainee as specified in this chapter.
Uniform Standards of Professional Appraisal Practice - those standards that the Appraisal Standards Board of the Appraisal Foundation promulgated for use by all appraisers in the preparation of appraisal reports.
USPAP – means the Uniform Standards of Professional Appraisal Practice.
All persons desiring to comment on these proposed regulations should submit written comments in to Helder Gil, Legislative Affairs Specialist, Department of Consumer and Regulatory Affairs, 1100 Fourth Street, S.W., Room 5164, Washington, D.C. 20024, or by e-mail to helder.gil@dc.gov, not later than thirty (30) days after publication of this notice in the D.C. Register. Copies of the proposed rules can be obtained from the address listed above. A copy fee of one dollar ($1.00) will be charged for each copy of the proposed rules requested. Free copies are available on the DCRA website at http://dcra.dc.gov by going to the “About DCRA” tab, clicking “News Room”, and clicking on “Rulemaking”.
