Mass Appraiser Qualifications The Future of Education & Experience Requirements in the IAAO

1. Mass Appraiser QualificationsThe Future of Education & Experience Requirements in the IAAO A Presentation for the Florida Chapter of the IAAO by Jim Todora, CAE, MAI

2. Why are we talking about appraiser qualifications? On February 20, 2004 the AQB adopted sweeping changes to appraiser qualifications The changes are effective January 1, 2008

3. Amended condition by TAF on October 16, 2004 • Organization must require all its appraisal-designated members to meet, in the areas of education, experience and continuing education, the minimum criteria adopted by the Appraiser Qualifications Board for corresponding Uniform Standard(s), which were in effect at the time the designation was awarded. The organization will also require its designated members to fulfill the continuing education requirements as reflected in the current AQB Criteria. Where no minimum qualification criteria have been adopted by the Appraiser Qualifications Board, the organization will demonstrate meaningful requirements for education, experience and continuing education, and examination for its designated members.

4. Excerpts from IAAO response dated April 28, 2007 • Because the new AQB rules speak to real estate valuation under USPAP Standard Rules 1&2, rather than Rule 6, it is the Executive Board’s position that IAAO and our members are exempt from having to meet the new regulations. • IAAO’s USPAP committee has been tasked with the responsibility of developing recommended experience and education qualifications for our profession under standard 6

5. IAAO Executive Board Action • In August 2005 the IAAO Executive Board approved two project plans that set in action changes to it’s education program • To rewrite and update all of its education programs • To pursue a licensing agreement with another education provider for AQB approved education offerings

6. IAAO Areas of Education

7. IAAO Education Program Structure Self Study

8. Courses that have been updated • Real Property • Fundamentals of Real Property Appraisal - 101 • Income Approach to Valuation - 102 • Income Approach to Valuation II - 112 • Appraisal of Land - 201 • Mapping • Principles & Techniques of Cadastral Mapping - 600 • Cadastral Mapping Methods & Applications - 601 • Personal Property • Assessment of Personal Property - 500 • Assessment Administration • Assessment Administration - 400

9. A New Paradigm for Mass Appraisal Education • The IAAO Executive Board approved the use of a project team to craft the cornerstones to a new mass appraisal education program • A fresh look at new programs not just an update of existing material • Provide students with material useful in the workplace • Employ hands-on classroom computer use • Design programs from elementary to advanced • Address all size Jurisdictions

10. Specific Items • Retain the prerequisite for basic appraisal education • Design five core Mass Appraisal courses • Courses are to be taken in sequence • Employ Microsoft Excel with intermediate courses • Employ SPSS in advanced courses • Design the textbook to correspond to the core courses

11. Current Mass Appraisal Offerings • Courses • Fundamentals of Mass Appraisal – 300 (30 hrs) • Applications of Mass Appraisal – 310 (30 hrs) • Residential Modeling Concepts – 311 (30 hrs) • Commercial Industrial Modeling Concepts – 312 (30 hrs) • Multiple Regression Analysis– 320 (30 hrs) • Workshops • Introduction to Computer Assisted Mass Appraisal – 350 (21.5 hrs) • Multiple Regression Analysis for Real Property Valuation-354 (11 hrs) • One-day Forums • Preparation of Data for Analysis for Modeling - 929 (7 hrs) • USPAP Standard 6, Mass Appraisal - 949 (7 hrs)

12. Current Mass Appraisal Programs and Suggested Path Basic Appraisal 101 & 102 Fundamentals of Mass Appraisal Residential Modeling Concepts Comm/Industrial Modeling Concepts Applications of Mass Appraisal Multiple Regression Analysis

13. New Five Course Design • The proposed core course concept starts at an entry level providing the basic building blocks of mass appraisal. • Each subsequent course is to be taken in sequence before moving to the next level • The first course will be lecture style • The intermediate and advanced courses include hands-on computer application each building upon the accomplishments of the previous course

14. Title & Sequence of Mass Appraisal Courses Fundamentals of Mass Appraisal Mass Appraisal Practices and Procedures Modeling Concepts Modeling Applications Application of Mass Appraisal to Non-residential Properties

15. Glossary • IAAO – Int. Assoc. Asesing. Officers • CAE – Cert. Assessment Evaluator • RES – Residential Evaluation Specialist • AAS – Assessment Administration Spec. • PPS – Personal Property Specialist • CMS – Cadastral Mapping Specialist • DOR – FL Dept. of Revenue • CFE – Certified Florida Evaluator • CFA – Certified Florida Appraiser • DBPR – Dept. of Busi. & Prof. Reg. • Registered (R.P.)Trainee • Certified Residential (R.P.) Appraiser • Certified General (R.P.) Appraiser

16. Glossary Con’t. • TAF – The Appraisal Foundation • ASB – Appraisal Standards Board • (USPAP) • AQB – Appraiser Qualifications Board • Real Property Appraiser Credentials • Trainee • Licensed • Residential • General

17. Glossary • AQB - Segments • Education • Academic • Professional Qualifying • Professional Continuing • Experience • Examination

18. IAAO Draft White Paper (AQB) Model Certification Requirements for Ad Valorem Mass Appraisal • Creates Three Credentials • Certified Mass Appraisal Specialist • Residential Mass Appraisal Specialist • Mass Appraisal Specialist Trainee

19. IAAO Draft White Paper (AQB) Model Certification Requirements for Ad Valorem Mass Appraisal • Follows the Same Segment Requirements as the AQB Real Property Credentials • Education • Experience • Examination

20. Core Education Requirements(Noted Education Subcommittee Changes) Mass Appraisal Specialist Trainee Fundamentals of Real Property Appraisal 30 Hours The 15-Hour National USPAP 15 Hours Appraisal of Land 30 Hours Fundamentals of Mass Appraisal 30 Hours Mass Appraisal Practices and Procedures 3015 Hours Income Approach to Valuation 30 Hours Total 135150 Hours

21. Residential Mass Appraisal Specialist(Noted Education Subcommittee Changes) Fundamentals of Real Property Appraisal 30 Hours The 15-Hour National USPAP 15 Hours Appraisal of Land 30 Hours Fundamentals of Mass Appraisal 30 Hours Mass Appraisal Practices and Procedures30 Hours Residential Modeling Concepts 30 Hours Residential Modeling Applications 30 Hours Modeling Concepts30 Hours Income Approach to Valuation 30 Hours Cadastral Mapping 15 Hours Modeling Application30 Hours Mass Appraisal Subject Matter Electives7 Hours Total 202210 Hours

22. Certified Mass Appraisal Specialist(Noted Education Subcommittee Changes) Fundamentals of Real Property Appraisal 30 Hours The 15-Hour National USPAP 15 Hours Appraisal of Land 30 Hours Fundamentals of Mass Appraisal 30 Hours Assessment Administration 30 Hours Residential Modeling Applications 30 Hours Mass Appraisal Practices and Procedures30 Hours Modeling Concepts30 Hours Modeling Application30 Hours Income Approach to Valuation 30 Hours Income Approach to Valuation II 30 Hours App. of Mass App. to Non-resid. Property 30 Hours Cadastral Mapping 30 Hours Fundamentals of Industrial Valuation 15 Hours Mass Appraisal Subject Matter Electives 15 30 Hours Total 300 Hours

23. Creditable Experience Data Collection Sales Verification Model Specification Model Calibration Final Review Valuation and Assessment Appeals

24. General Credential Comparison

25. Residential Credential Comparison

26. Trainee Credential Comparison

27. IAAO Professional Designations • CAE Affected • RES Affected • AAS Unaffected • PPS Unaffected • CMS Unaffected

28. Important Points • Existing Designees will likely be Grandfathered • States May or May Not adopt Mass Appraisal Certifications • If adopted who will administer? • DOR? • DBPR?

29. Thank You Questions/Comments