Financially Feasible
Senior Member
- Joined
- Jun 25, 2007
- Professional Status
- Certified General Appraiser
- State
- Pennsylvania
This just in (well... it's a couple of days old anyway! :icon_mrgreen
from the Appraisal Instutite regarding the "45-day Notice of Proposed Amendments to Appraisal Institute Bylaws and Regulations". I know how people feel about the SRA "cliff class"... but this should bring out some good, passionate feelings... 
If you have any comments on the proposed changes, please contact your elected Directors and/or send your comments via email to 45daynotice@appraisalinstitute.org. Comments sent to this email address will be compiled for distribution to the Board of Directors prior to the Board meeting.
I. Online General Demonstration Report Alternative
Over recent years, the requirements for the MAI designation have significantly increased:
Based on this monitoring process, the ADQC continues to believe in the importance of requiring effective analysis and expression from general Associate Members and that the demonstration appraisal report requirement, the research report alternative, and multiple reports alternative are effective tools to do so. The ADQC also believes that the demonstration appraisal report requirement can be enriched, can take advantage of advanced technology, and can provide the flexibility to better enable committed appraisers to complete the requirement while fulfilling the professional and personal demands of today.
Therefore, the ADQC proposes amending Regulation No. 1 to provide for an Online General Demonstration Appraisal Alternative to the traditional demonstration appraisal report. This Alternative would integrate the goals of the traditional demonstration appraisal report into an online format with an "Advisor" and other resources. The result of the process would be a product that demonstrates high levels of analysis and expression. This Alternative would examine not only the Associate Member's competence but would facilitate enhancement and development of the skills being tested.
To be eligible for the Online General Demonstration Report Alternative, a general Associate Member would need to have completed Level I and Level II education requirements, the college degree requirement, and a demonstration appraisal seminar, as well as be current in Standards and Ethics requirements,.
Before a general Associate Member would receive permission to work with an Advisor, the general Associate Member would need to summarize initial research on the subject property that indicates the property is appropriate and that sufficient data exists. The general Associate Member would need to complete the various components of an appraisal including an introduction (cover page through improvements), market analysis and highest and best use, land valuation, cost, sales, income, and reconciliation. These sections would be completed and graded in stages. The Advisor would provide access to resources for each section as appropriate. A general Associate Member would have six (6) months to complete the process.
The proposed changes to Regulation No. 1 can be adopted only if at least 60% of Directors with voting rights relating to the designation requirements in Regulation No. 1 vote in favor at the Board of Directors meeting, regardless of how many Directors are present at such meeting.
II. Equivalencies for Level I Education for General Associate Members Outside the United States
A general Associate Member in the United States who is state certified satisfies the Level I examination requirements for the MAI designation. Regulation No. 1 provides that if a general Associate Member whose principal place of business is outside the United States meets the requirements for certification in the general Associate Member's country, the Associate Member satisfies the Level I examination requirements (except USPAP or its equivalent) for the MAI designation. This alternative has proved impractical in many countries.
Therefore, the Admissions and Designation Qualifications Committee, Education Committee and International Relations Committee recommend amending Regulation No. 1 to provide that if a general Associate Member outside the United States passes the examination for a Level I International Equivalency Examination (initially based on the retired Course 320: General Applications), such general Associate Member will be deemed to have satisfied the Level I education requirement for the MAI designation.
The proposed changes to Regulation No. 1 can be adopted only if at least 60% of Directors with voting rights relating to the designation requirements in Regulation No. 1 vote in favor at the Board of Directors meeting, regardless of how many Directors are present at such meeting.
III. General Demonstration Appraisal Report Content Requirement
Regulation No. 1 requires that a traditional general demonstration appraisal report include a detailed supply and demand study for the subject property type. The Admissions and Designation Qualification Committee (ADQC) recommends amending that provision to enable the general Associate Member to include a detailed supply and demand study for the subject property type or an analysis of either functional obsolescence or external obsolescence.
Appraisal Institute members often encounter obsolescence in the market. Providing general Associate Members with an opportunity to properly demonstrate the analysis of obsolescence within a demonstration appraisal report is a meaningful alternative to including a detailed supply and demand study for the subject property type. An MAI Designated Member should have the requisite education and experience to properly develop an appraisal of a property that suffers from some form of obsolescence, but current rules do not specifically require a general Associate Member to demonstrate this skill unless the property that is the subject of the demonstration appraisal report suffers from some form of obsolescence.
The proposal would maintain other requirements for the traditional demonstration appraisal report, including:
from the Appraisal Instutite regarding the "45-day Notice of Proposed Amendments to Appraisal Institute Bylaws and Regulations". I know how people feel about the SRA "cliff class"... but this should bring out some good, passionate feelings... 45-Day Notice of Proposed Amendments to Appraisal Institute Bylaws and Regulations
At its meeting on August 14-15, 2008 at the Hyatt Regency Hotel, Chicago, Illinois, the Appraisal Institute Board of Directors will consider proposed amendments to Appraisal Institute Regulation No. 1. The full text of the proposed changes is available on the "My Appraisal Institute" page of the Appraisal Institute's Web site at www.appraisalinstitute.org. (You will need to enter your username and password on the home page to reach the "My Appraisal Institute" page.) The full text is also available upon request to the National Office. Unless otherwise noted, the proposed changes have no, or minimal, financial impact.If you have any comments on the proposed changes, please contact your elected Directors and/or send your comments via email to 45daynotice@appraisalinstitute.org. Comments sent to this email address will be compiled for distribution to the Board of Directors prior to the Board meeting.
I. Online General Demonstration Report Alternative
Over recent years, the requirements for the MAI designation have significantly increased:
- The entire qualifying education curriculum was reviewed and re-written. These new courses are more rigorous and include more content.
- The number of education hours and the body of knowledge expected of an MAI member has significantly increased.
- The general experience review process was updated to bring 1,500 more hours of the Associate Members' work under the more rigorous "final level" review criteria.
- The Comprehensive Examination was a one day test but is now a two day test with four modules.
Based on this monitoring process, the ADQC continues to believe in the importance of requiring effective analysis and expression from general Associate Members and that the demonstration appraisal report requirement, the research report alternative, and multiple reports alternative are effective tools to do so. The ADQC also believes that the demonstration appraisal report requirement can be enriched, can take advantage of advanced technology, and can provide the flexibility to better enable committed appraisers to complete the requirement while fulfilling the professional and personal demands of today.
Therefore, the ADQC proposes amending Regulation No. 1 to provide for an Online General Demonstration Appraisal Alternative to the traditional demonstration appraisal report. This Alternative would integrate the goals of the traditional demonstration appraisal report into an online format with an "Advisor" and other resources. The result of the process would be a product that demonstrates high levels of analysis and expression. This Alternative would examine not only the Associate Member's competence but would facilitate enhancement and development of the skills being tested.
To be eligible for the Online General Demonstration Report Alternative, a general Associate Member would need to have completed Level I and Level II education requirements, the college degree requirement, and a demonstration appraisal seminar, as well as be current in Standards and Ethics requirements,.
Before a general Associate Member would receive permission to work with an Advisor, the general Associate Member would need to summarize initial research on the subject property that indicates the property is appropriate and that sufficient data exists. The general Associate Member would need to complete the various components of an appraisal including an introduction (cover page through improvements), market analysis and highest and best use, land valuation, cost, sales, income, and reconciliation. These sections would be completed and graded in stages. The Advisor would provide access to resources for each section as appropriate. A general Associate Member would have six (6) months to complete the process.
The proposed changes to Regulation No. 1 can be adopted only if at least 60% of Directors with voting rights relating to the designation requirements in Regulation No. 1 vote in favor at the Board of Directors meeting, regardless of how many Directors are present at such meeting.
II. Equivalencies for Level I Education for General Associate Members Outside the United States
A general Associate Member in the United States who is state certified satisfies the Level I examination requirements for the MAI designation. Regulation No. 1 provides that if a general Associate Member whose principal place of business is outside the United States meets the requirements for certification in the general Associate Member's country, the Associate Member satisfies the Level I examination requirements (except USPAP or its equivalent) for the MAI designation. This alternative has proved impractical in many countries.
Therefore, the Admissions and Designation Qualifications Committee, Education Committee and International Relations Committee recommend amending Regulation No. 1 to provide that if a general Associate Member outside the United States passes the examination for a Level I International Equivalency Examination (initially based on the retired Course 320: General Applications), such general Associate Member will be deemed to have satisfied the Level I education requirement for the MAI designation.
The proposed changes to Regulation No. 1 can be adopted only if at least 60% of Directors with voting rights relating to the designation requirements in Regulation No. 1 vote in favor at the Board of Directors meeting, regardless of how many Directors are present at such meeting.
III. General Demonstration Appraisal Report Content Requirement
Regulation No. 1 requires that a traditional general demonstration appraisal report include a detailed supply and demand study for the subject property type. The Admissions and Designation Qualification Committee (ADQC) recommends amending that provision to enable the general Associate Member to include a detailed supply and demand study for the subject property type or an analysis of either functional obsolescence or external obsolescence.
Appraisal Institute members often encounter obsolescence in the market. Providing general Associate Members with an opportunity to properly demonstrate the analysis of obsolescence within a demonstration appraisal report is a meaningful alternative to including a detailed supply and demand study for the subject property type. An MAI Designated Member should have the requisite education and experience to properly develop an appraisal of a property that suffers from some form of obsolescence, but current rules do not specifically require a general Associate Member to demonstrate this skill unless the property that is the subject of the demonstration appraisal report suffers from some form of obsolescence.
The proposal would maintain other requirements for the traditional demonstration appraisal report, including:
- The property that is the subject of the demonstration appraisal report must allow for the demonstration of the proper methods of handling physical incurable depreciation and must allow the proper analysis and development of a net income.
- All forms of depreciation present in the subject property must be identified and measured completely and properly in all three approaches to value.
- The demonstration appraisal report must meet the criteria set forth in The Official Guide to Demonstration Appraisal Reporting published by the Appraisal Institute.
