New York Codes, Rules and Regulations › Title 19 - DEPARTMENT OF STATE › Chapter XXXI - Board of Real Estate Appraisal › Part 1103 - Qualifying Course Regulations › Section 1103.9 - Residential elective (RE) course outline

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 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.
(a)
RE-1/Introduction to Residential
				Income Properties.
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
(b)
RE-2/Fair Housing, Fair Lending and Environmental Issues.
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