New York Codes, Rules and Regulations › Title 19 - DEPARTMENT OF STATE › Chapter XXXI - Board of Real Estate Appraisal › Part 1103 - Qualifying Course Regulations › Section 1103.11 - General elective (GE) course outlines

Current through Register Vol. 46, No. 28, July 10, 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 GE 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.
(a)
GE-1/Fair Housing, Fair Lending and
				Environmental Issues.
This regulation should be consulted prior to offering this
				  course for any changes, since this area is evolving very quickly and constant
				  changes are being made.
A.
Fair Housing and Fair Lending
7 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 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
7 hours
1. Long standing issues
30 minutes
(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
3 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 & 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
1.5 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 (CZMA) 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
30 minutes
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
30 minutes
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
14 hours
Final Examination (35-50 questions)
1 hour
Total
15 hours
(b)
GE-2/Specialty Appraisals.
A.
Public improvement projects and the effect on
							 value:
2 hours
Federal regulations (Uniform Act) Just
							 compensation/fair market value Special purpose properties Problem valuation
							 issues Low value and simple acquisitions Specialty report requirement Case
							 studies
B.
Condominiums and cooperatives:
2 hours
New York City housing market Condo vs. coop regarding
							 value Transaction costs and collective action problems Historical development
							 Legal interest (fee simple/proprietary lease) Case studies
C.
Modular/Mobile homes:
2 hours
History of manufactured/mobile homes National
							 Manufactured Construction and Safety Standards Act Federal, State and local
							 requirements for installation Data sources to establish opinion of value
							 Determining value (comparable/cost approach)
D.
Historic properties:
2 hours
Highest and best use of historic properties Historic
							 and architectural heritage/preservation Legal or statutory protection
							 Designated historic districts Grants or tax exemptions reflected in value
							 Valuation of cost to restore and maintain Case studies
E.
Convenience stores:
2 hours
Convenience store evolution Store formats (limited,
							 expanded, hyper) Quality of store performance Fuel service and equipment Site
							 evaluation (access, visibility, traffic count) Income capitalization approach
							 to value
F.
Unique architecture:
2 hours
Highest and best use of complex properties Scarcity of
							 comparable sales Analysis of cost data Potential for commercial use Current
							 construction cost Architectural styles
G.
Marinas:
2 hours
Unique features Dockage and services Bulkhead/Tidal
							 erosion Governmental approval/costs (dredging, etc.) Case studies
Instruction
14 hours
Final Examination (35-50 questions)
1 hour
Total
15 hours
(c)
GE-3/Using the HP12C Financial Calculator
A.
Introduction to Functions of the HP12C
2 hours
Financial, mathematical and statistical modes (RPN,
							 ALG). Basic arithmetic calculations.
B.
Compound Interest and Discount Factors
3 hours
Six functions of the dollar.
C.
Introduction to Variable/irregular Cash Flows
3 hours
Selecting and supporting the discount rate. Calculating
							 internal rate of return.
D.
Determining Overall Capitalization Rates
3 hours
Case study valuation. Direct capitalization. Discount
							 cash flow yield capitalization.
E.
Income Valuation Comparison
3 hours
Overall rate. Mortgage rate. Equity rate. Comparison of
							 cost and sales approaches.
Instruction
14 hours
Final examination (35-50 questions)
1 hour
Total
15 hours