5241606 Consumer and Regulatory Affairs, Department of - Notice of Final Rulemaking - Title 17, Chapter 23 (Real Estate Appraisers)
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DEPARTMENT OF CONSUMER AND REGULATORY AFFAIRS
NOTICE OF FINAL RULEMAKING
The Director of the Department of Consumer and Regulatory Affairs, pursuant to the authority set forth in the Second Omnibus Regulatory Reform Amendment Act of 1998, effective April 20, 1999 (D.C. Law 12-261; D.C. Official Code §§ 47-2853.10(a)(11) and (12) (2012 Repl.)), and Mayor’s Order 2000-70, dated May 2, 2000, hereby gives notice of the intent to adopt, in not less than thirty (30) days from the date of publication of this notice in the D.C. Register, amendments to Chapter 23 (Real Estate Appraisers) of Title 17 (Business, Occupations, and Professions) of the District of Columbia Municipal Regulations (DCMR).
This rulemaking amends certain education requirements for licensure as an appraiser in the District, amends the eligibility standards for licensees seeking to serve as a supervising appraiser, place restrictions on continuing education credit, and establishes a new standard for distance learning.
This rulemaking is necessitated by a notification from the Appraisal Subcommittee (ASC) of the Federal Financial Institutions Examination Council that the District must update its real estate appraiser professional license regulations to reflect upcoming changes to industry standards, which take effect on January 1, 2015, pursuant to the Dodd–Frank Wall Street Reform and Consumer Protection Act (Pub. L. 111-203; H.R. 4173).
The ASC was established to provide oversight of the real estate appraisal process as it relates to federally-related real estate transactions and it oversees the appraiser regulatory programs established by the states, territories, and the District of Columbia. If the District’s appraisal policies and practices were found to be inconsistent with Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) (12 U.S.C. §§ 3331-3351), the District’s real estate appraisal licensure program could be subject to de-recognition by the ASC. In such an event, the ASC and all agencies, instrumentalities, and federally-recognized entities under FIRREA would be barred from recognizing the District’s appraiser certifications and licenses.
Notice of Proposed Rulemaking was published on October 31, 2014 at 61 DCR 11427. No comments were received and no substantive changes were made to rules. The Director adopted the rules as final on [date] and they will be effective upon publication of this notice in the D.C. Register.
Chapter 23, REAL ESTATE APPRAISERS, of Title 17 DCMR, BUSINESS, OCCUPATIONS, AND PROFESSIONS, is amended as follows:
Section 2302, PRELICENSURE EDUCATION REQUIREMENTS, is amended as follows:
Subsections 2302.2, 2302.3, and 2302.4 are amended to read as follows:
2302.2 Applicants for the Licensed Residential Real Property Appraiser classification shall have obtained the following education:
(a) A two (2)-year associate’s degree or higher, or not less than thirty (30) semester credit hours of college-level education, in any field of study, from an accredited college, junior college, community college, or university; and
(b) One hundred fifty (150) classroom hours of courses in subjects related to real estate appraisal as specified in § 2302.10; or
(c) A degree in Real Estate from an accredited college or university whose curriculum has been approved by the Appraisal Qualifications Board (AQB).
2302.3 Applicants for the Certified Residential Real Property Appraiser classification shall have obtained the following education:
(a) A baccalaureate degree or higher, in any field of study, from an accredited college or university; and
(b) Two hundred (200) classroom hours in subjects related to real estate appraisal as specified 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; or
(c) A degree in Real Estate from an accredited college or university whose curriculum has been approved by the AQB.
2302.4 Applicants for the Certified General Real Property Appraiser classification shall have obtained the following education:
(a) A baccalaureate degree or higher, in any field of study, from an accredited college or university; and
(b) Three hundred (300) classroom hours of courses in subjects related to real estate appraisal as specified 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; or
(c) A degree in Real Estate from an accredited college or university whose curriculum has been approved by the AQB.
Section 2303, ACCREDITATION AND CERTIFICATION OF PRELICENSE EDUCATION PROGRAMS, is amended as follows:
Subsection 2303.8 is amended to read as follows:
2303.8 Distance learning courses may be acceptable for prelicensure or precertification credit if the course meets the following conditions:
(a) The course is presented by an accredited college or university, or an organization whose course delivery mechanism has been approved in accordance with AQB criteria;
(b) An individual successfully completes a written and proctored examination, which may include computer-based testing;
(c) The subject matter is appraisal related, and the course content substantially complies with the AQB’s guidelines for curriculum content; and
(d) The length of the course is a minimum of fifteen (15) classroom hours, which shall be equivalent to in-class continuous instruction and attendance formats.
Section 2307, ACCREDITATION AND CERTIFICATION OF PRELICENSE EDUCATION PROGRAMS, is amended as follows:
Subsection 2307.2 is amended to read as follows:
2307.2 A candidate shall complete the educational and experience requirements prior to sitting for the examination.
Section 2310, ACCREDITATION AND CERTIFICATION OF PRELICENSE EDUCATION PROGRAMS, is amended as follows:
Subsection 2310.3 is amended to read as follows:
2310.3 A licensee shall not receive additional credit for his or her completion of any continuing education course that is the same or substantially similar to a course for which he or she has previously received credit during the same license cycle.
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 prelicensure education as follows:
(a) Seventy-five (75) classroom hours of instruction that shall include 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; and
(b) A course of instruction, approved by the Board, which covers the requirements and responsibilities of supervisory appraisers and appraiser trainees.
2323.2 The Board shall approve prelicensure education that meets the following requirements:
(a) The content of the curriculum offered in the courses, seminars, workshops, or conferences used by an applicant to meet the prelicensure education requirements shall follow the guidelines established by the AQB in the publication, “AQB Guide Note 1 (GN-1).”
(b) 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;
(c) The minimum length of the educational offering is fifteen (15) hours and the individual successfully completes an examination pertinent to that educational offering;
(d) All qualifying education shall have been obtained from, and certified by, one or more of the following:
(2) Community or junior colleges;
(3) Real estate appraisal or real estate related organizations;
(4) State or federal agencies or commissions;
(6) Other providers approved by the Board or the Educational Licensure Commission; and
(e) All qualifying education shall have been obtained within the five (5)-year period immediately preceding application for licensure.
2323.3 There are no examination or experience requirements for the appraiser trainee classification.
2323.4 Within four (4) years of the issuance of his or her license, 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.
2323.5 The appraiser trainee shall be subject to direct supervision by a supervising appraiser.
2323.6 To be eligible as a supervising appraiser, an individual must meet the following requirements:
(a) The supervising appraiser shall be licensed as a Certified Residential Real Property Appraiser or a Certified General Real Property Appraiser in the District;
(b) The supervising appraiser shall have been licensed as a Certified Residential Real Property Appraiser or a Certified General Real Property Appraiser, in the District or another jurisdiction, for at least three (3) years;
(c) The supervising appraiser shall be in good standing, and shall not have been subject to any disciplinary action that impacted his or her ability to lawfully engage in appraisal practice, in the District or another jurisdiction, within the last three (3) years; and
(d) The supervising appraiser shall complete a course of instruction, approved by the Board in accordance with AQB guidelines, which covers the requirements and responsibilities of supervisory appraisers and appraiser trainees.
2323.7 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.
2323.8 The appraiser trainee may have more than one (1) supervising appraiser, but a supervising appraiser may not have more than three (3) appraisal trainees.
2323.9 The appraiser trainee shall maintain a separate appraisal log for each supervising appraiser, and each log 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; and
(g) Signature and license number of the supervising appraiser.
2323.10 The supervising appraiser and the appraiser trainee shall be jointly responsible for ensuring that the appraiser log is accurate, current, and in compliance with § 2323.9.
2323.11 An applicant for renewal of an appraiser trainee license shall submit proof of having completed all continuing education credits required pursuant to § 2310.2 of this chapter.
2323.12 The appraiser trainee shall be entitled to obtain copies of appraisal reports that he or she prepared.
2323.13 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.
