N.Y. Comp. Codes R. & Regs. tit. 19 § 1103.9
Current through Register Vol. 46, No. 50, December 11, 2024
The following are the required subjects to be included in the courses of study and the required number of hours to be devoted to RE appraisal courses. All appraisal schools must utilize the following course outline in conducting their programs. The following course outline is not intended to substitute for specific outlines for the proposed course.
This regulation should be consulted for any changes prior to offering this course, since this area is evolving very quickly and constant changes are being made.
| A. | Review of Appraisal Process: | 1.5 hours |
| Define the problem Collect and analyze data Analyze highest and best use of the land and the improvement Estimate land value Apply the appropriate valuation approaches Reconciliation and final value estimate Appraisal report | ||
| B. | Discussion of Economic Principles: | 1.5 hours |
| Anticipation Balance Change Competition Conformity Opportunity Costs Substitution Supply and Demand | ||
| C. | Investor Objectives: | .5 hour |
| Return on Capital Return of Capital | ||
| D. | Appraisal Forms: | 1 hour |
| Small residential income property appraisal Single family comparable rent schedule | ||
| E. | Highest and Best Use | 1.5 hours |
| F. | Income and Expense Statements: | 1 hour |
| Owner's statement Reconstructed statement Estimating market rent, vacancy and collection laws Estimating market expenses | ||
| G. | Appraisal Math: | 3 hours |
| Financial calculator Compound interest concepts Six functions of $1 (Tables and financial calculators) | ||
| H. | Income Capitalization Approach | 8 hours |
| Total Instruction | 18 hours | |
| Final Examination (75 q. min) | 2 hours | |
| Total | 20 hours | |
| A. | Fair Housing and Fair Lending | 7.5 hours |
| 1. Fair housing and fair lending requirements | 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 Civil Rights Act of 1964 Fair Housing Act of 1968 Supreme Court decisions - 1896 Plessy vs. Ferguson - 1917 Buchanan vs. Warley - 1954 Brown vs. Board of Education The Housing and Community Development Act of 1974 The Fair Housing Amendment Act of 1988 Other legislation - Community Reinvestment Act - Equal Credit Opportunity Act - Home Mortgage Disclosure Act - Real Estate Settlement Procedures Act American Disabilities ACT (ADA) | ||
| e. New York State Law - Executive Law includes the Civil Rights Law of the State (NY Human Rights Law - article 15) - Additional protected classes; age and marital status - Includes residential property, land commercial property and credit transactions - New York City Commission on Human Rights | ||
| f. Local Regulations | ||
| g. Exemptions and Exceptions Senior citizen housing Drug users and alcohol abusers Two family exemption | ||
| h. USPAP/FIRREA | ||
| 2. Appraiser's responsibilities | 2 hours | |
| a. Discrimination b. Legal responsibilities c. Fair housing advertising d. Enforcement Department of Housing and Urban Development (HUD) - Complaint filed with HUD within one year after an alleged discriminatory housing practice has occurred or terminated. New York State Division of Licensing - Responsibilities of the office - Responsibilities of the individual appraiser U.S. Department of Justice - Administrative Law Judge - Federal Court - Complaint filed within two years if filed by own suit in Federal/State Court | ||
| e. Penalties New York State Federal Government | ||
| f. Affirmative action Compliance and recordkeeping Fair housing training Affirmative advertising Use of checklists | ||
| 3. Report writing | 1 hour | |
| a. Bias and discrimination in the report b. Documentation of sources c. Secondary market guidelines Fannie Mae Freddie Mac HUD | ||
| 4. Case studies | 2.5 hours | |
| a. Neighborhood issues b. Improvement issues c. External obsolescence d. Ethnic issues e. Rehab loans Key terms Affirmative action Americans with Disabilities Act Bias Civil Rights Act of 1964 Community Reinvestment Act Department of Housing and Urban Development Discrimination Equal Credit Opportunity Act Fair Housing Act of 1968 The Fair Housing Amendment Act of 1988 FIRREA Home Mortgage Disclosure Act The Housing & Community Development Act of 1974 New York City Commission on Human Rights N.Y. State Human Rights Law Real Estate Settlement Procedures Act Report writing | ||
| B. | Environmental Issues | 11.5 hours |
| 1. Long standing issues - familiar to all | 2 hours | |
| a. Air | ||
| - indoor/outdoor air pollutants b. Water | ||
| municipal drinking water - public private distribution systems private water systems - wells - private - community health related issues - bacteria - minerals - hardness - Ph - organic testing procedures and remediation | ||
| c. Private sewerage disposal systems - septic systems - governed by the Department of Health - must be designed by professional engineer or a registered architect - most septic for homes have as built drawings filed with the local health department - testing & remediation | ||
| d. Termite testing - must be licensed by the New York State Department of Health - testing & remediation | ||
| 2. Contemporary issues | 4 hours | |
| a. Asbestos historical overview - what is asbestos? - what are its uses? health effects - asbestosis - lung cancer - mesothelioma testing procedures - bulk sampling - air monitoring - wipe sampling removal procedures | ||
| b. Lead paint water soil health effects - adults - children testing and remediation disclosure requirements | ||
| c. Radon - including health effects radon entry/behavior testing & remediation new construction | ||
| d. Indoor air quality | ||
| e. Poly-Chlorinated Biphenyls - (PCB's) where they come from testing & remediation | ||
| f. Environmental assessments primarily used during commercial real estate transactions screening Fannie Mae (1990) Appraisal Standards Board Advisory Opinion Freddie Mac USPAP "Standards of Practice" Phase I, II, III and IV - Phase I - investigative - Phase II - testing phase - Phase III - remediation - Phase IV - management phase | ||
| g. Underground storage tanks concerns of leaking age of tanks testing and remediation | ||
| h. Electro-magnetic fields health effects testing and remediation | ||
| i. Chloro-fluoro carbons - CFC's problems with CFC's depletes ozone layer major CFC problems in homes - aerosols - air conditioners - testing techniques | ||
| j. Wetlands and flood plains inland lakes and streams flood plains riparian rights soil erosion and permits water table flowage easements and storm water regulation | ||
| k. Hazardous waste sites effect on value - abatement costs - market perception | ||
| 3. Environmental laws and regulations affecting real estate | 3 hours | |
| Resource Conservation and Recovery Act (RCRA) National Environmental Policy Act (NEPA) Clean Water Act (CWA) Rivers and Harbors Act of 1899 (RHA) Coastal Zone Management Act Clean Air Act (CAA) Toxic Substances Control Act (TSCA) Solid Waste Disposal Act of 1965 Asbestos Hazardous Emergency Response Act (AHERA) Federal Insecticide, Fungicide & Rodenticide Act (FIFRA) Hazardous Material Transportation Act (HMTA) Occupational Safety and Hazard Act (OSHA) EPA board powers over air, soil and water contamination U.S. v. Maryland Bank & Trust Co. | ||
| 4. Comprehensive Environmental Response, Compensation and Liability Act (CERCLA OR SUPERFUND) | 1 hour | |
| liability for contaminated property defenses to liability piercing the corporate veil for CERCLA liability successor liability lender liability under CERCLA | ||
| 5. Responsibility of appraisers concerning substance contamination | 1 hour | |
| How does it apply to the property? - recognition of contamination - remediation and compliance cost estimation - value estimates of interests in impacted real estate | ||
| 6. Liability of lenders Types of loans - mortgage - secured - unsecured Key terms Air monitoring Appraisal Standards Board Advisory option Asbestos Asbestos Hazardous Emergency Response Act (AHERA) Asbestosis Bacteria Built drawings Bulk sampling CERCLA or SUPERFUND Chlordane Chloro-fluoro carbons (CFC's) Clean Air Act (CAA) Clean Water Act (CWA) Coastal Zone Management Act (CZMA) Due diligence Electro-magnetic field Environmental impact statement Environmental Protection Agency (EPA) Fannie Mae (1900) Federal Insecticide, Fungicide & Rodenticide Act (FIFRA) Freddie Mac Groundwater Hazardous Material Transportation Act (HMTA) Lead Mesothelioma Minerals National Environmental Policy Act (NEPA) Occupational Safety and Hazard Act (OSHA) Organic Ph Phases I, II, III and IV Poly-chlorinated Biphenyls (PCB's) Radon Resource Conservation and Recovery Act (RCRA) Rivers and Harbors Act of 1899 (RHA) Screening Solid Waste Disposal Act of 1965 Successor liability Toxic Substances Control Act (TSCA) Underground storage tanks U.S. vs. Maryland Bank & Trust Co. Water hardness Wipe sampling | ||
| Instruction Hours | ||
| Final Examination (35-50 questions) | 1 hour | |
| Total | 20 hours | |
N.Y. Comp. Codes R. & Regs. Tit. 19 § 1103.9