AI PAREA Maintains 100% Pass Rate, AI Annual Conference, and More
In this issue:
- AI PAREA Graduates: 100% pass rate, Pathways scholarships open, North Carolina passes legislation
- Save the Date: AI Annual Conference is April 12-15, 2026
- Federal Tax Bill: Key provisions affecting real estate and housing
Association News
Big PAREA Updates!
The Appraisal Institute is proud to announce the reopening of applications for the Pathways to Success scholarship, funded by The Appraisal Foundation and administered by the Appraiser Development Initiative (ADI). This scholarship provides full financial support for individuals pursuing licensure through an approved Practical Applications of Real Estate Appraisal (PAREA) program—offering a flexible and accessible pathway into the valuation profession.
The 2025 program year has already awarded 42 Pathways to Success scholarships supporting a pipeline of future appraisers.
Pathways to Success Scholarship Details:
- Application Window: July 1 – September 30, 2025
- Coverage: Full tuition for a PAREA program and key startup costs
- Eligibility: Individuals pursuing an alternative path to appraiser licensure
How to Apply:
- Complete the Pathways Readiness Checklist
- Submit your application through the scholarship portal
Notably, every graduate of the AI PAREA program who has taken the Licensed Residential exam to date has passed—a 100% pass rate that reflects the quality and rigor of the program. Historically, the pass rate for first time test takers is 57-64 percent for the Licensed Residential exam, but that figure is up to 71 percent so far in 2025 largely due to the strong performance and preparation of AI PAREA graduates.
PAREA Milestones:
- 38 Total Graduates
- 27 Licensed Residential (LR) Credentials Earned
- 1 Certified Residential (CR) Credential Earned
- 23 additional participants are actively completing their final assignments
- The first AI PAREA graduate in the District of Columbia earned the LR credential in June.
- We expect to surpass 50 graduates in the coming weeks
Be Part of the 2026 AI Annual Conference in Nashville
The Appraisal Institute is “Back in Tune” for its 2026 Annual Conference, April 12–15 in Nashville. This flagship event will unite 600+ valuation professionals for three days of insight, innovation, and connection. Sponsorship and exhibitor packages are now available—including exclusive branding, prime visibility, and direct access to decision-makers. Don’t miss this opportunity to showcase your leadership in the profession’s biggest event of the year.
Secure your space as a sponsor or exhibitor today—limited packages available.
Insights
Federal Tax Bill Includes Provisions Affecting Real Estate and Housing
A newly passed federal tax package includes several provisions impacting real estate investment, housing development, and taxation for individuals and businesses. The new law extends or modifies elements of prior tax law and introduces new measures related to housing supply, wealth transfer, and investor oversight.
Key Tax Provisions
- Permanent Business Deductions - The bill makes permanent several business tax deductions from the 2017 Tax Cuts and Jobs Act, including the Section 199A deduction for pass-through income.
- Opportunity Zones – OZ are now a permanent part of the tax code, though the gain deferral period is shortened through 2026.
- Low-Income Housing Tax Credit (LIHTC) - extended to support affordable housing development.
- Bonus Depreciation and Expensing - 100% bonus depreciation restored and made permanent for qualifying property.
- SALT Workarounds Preserved - Proposed limits on state and local tax deductibility for pass-throughs were dropped, preserving current entity-level tax workarounds.
- Condo Accounting Reform - Developers may now use the completed contract method, recognizing revenue and expenses only upon project completion, aligning with actual sales.
Housing and Real Estate-Related Measures
- Incentives for Housing Supply - Includes tax credits for workforce housing, federal support to streamline local permitting, and backing for public-private partnerships.
- Capital Gains Exclusion Adjustment - Increases the capital gains exclusion on primary residence sales or ties it to inflation; implementation details to follow.
- SALT Cap Temporarily Raised - The individual SALT deduction cap increases from $10,000 to $40,000 for five years.
- Estate and Gift Tax Exclusion - The lifetime exclusion amount is permanently increased (approximately $13-14 million per person), affecting intergenerational wealth transfers. This provision may benefit real estate owners, family businesses, and farms with high value but illiquid assets.
- Investor and Rental Oversight - New provisions may affect institutional ownership of single-family homes and introduce federal standards for short-term rentals, subject to local compliance.
- ACRE Act Provisions - Incorporates provisions from the Access to Credit for our Rural Economy (ACRE) Act, allowing banks and certain financial institutions to exclude 25% of interest income on qualified rural or agricultural real estate loans. Notably, this provision is permanent and does not include a sunset clause.
Federal Lands
A controversial Senate proposal that would have required the U.S. Forest Service and Bureau of Land Management to dispose of 0.5% to 0.75% of their land holdings—potentially over 3.3 million acres in 11 Western states—was excluded from the final legislation. The proposal was dropped amid bipartisan concerns about transparency, land sale procedures, and long-term impacts.
Your Benefits
Site To Do Business for The Appraisal Institute
July 17, 2025 2 PM ET
This session will focus on how appraisers can take advantage of the Site To Do Business toolkit. The free webinar from the STDB team will highlight the platform changes as well highlight the newly available 2025 data update.
Trending Topics Thursdays:
Sign up for our next free webinar
We are deeply saddened by the devastating floods in Central Texas. Our thoughts are with the families who have lost loved ones, those who are displaced, and all who are affected. We extend our gratitude to the first responders and volunteers aiding in recovery efforts. Through the Appraisal Institute Education and Relief Foundation (AIERF), we offer emergency financial assistance to colleagues impacted by this disaster. If you or someone you know has been affected, please apply for assistance or make a donation.
In light of these events, our Trending Topics Thursday webinar, Understanding FEMA’s 50 Percent Rule, co-hosted with IAAO, has been rescheduled to Thursday, July 31 to give affected professionals and partners time to focus on urgent needs. We appreciate your understanding and continued support.
Advocacy Updates
North Carolina Passes PAREA Legislation
On July 2, 2025, North Carolina Governor Josh Stein signed into law legislation amending the state’s appraiser licensing statute to authorize the Practical Applications of Real Estate Appraisal (PAREA) as a pathway to licensure for both Licensed Residential and Certified Residential real estate appraisers. The law that was enacted reflects several key improvements that were negotiated by the North Carolina Chapter of the Appraisal Institute during the legislative process.
While the North Carolina Appraisal Board (NCAB) promulgated administrative rules related to PAREA in 2023, the rules were petitioned to legislative review and were ultimately given a delayed effective date of December 31, 2025. Those rules will go into effect as planned. However, the NCAB may release additional rules to implement this law’s provisions.
The new law—“An Act to Modify the Licensing Procedures of the North Carolina Appraisers Act…”—authorizes applicants, beginning January 1, 2026, to use an approved PAREA program to satisfy experience requirements for licensure. For Licensed Residential appraisers, PAREA may be used without any additional requirements or overlays. For Certified Residential applicants, however, the law requires completion of an approved PAREA program plus the submission of 15 residential appraisal reports of subject properties located in North Carolina, five of which will be selected by the North Carolina Appraisal Board for review to determine compliance with the Uniform Standards of Professional Appraisal Practice (USPAP).
The North Carolina Chapter of the Appraisal Institute played a critical role in improving the legislation. The original version of the bill included substantial barriers to entry into the Certified Residential PAREA pathway—specifically, a requirement that applicants, in addition to completing a Certified Residential PAREA program, either (1) perform 50 traditional appraisals of properties located in North Carolina that would be reviewed by a Certified Residential or Certified General appraiser, or (2) be licensed as a Licensed Residential appraiser for five years before becoming eligible to sit for the Certified Residential licensing exam. These provisions were inconsistent with the intent of PAREA as a complete, standalone alternative to the traditional supervisor-trainee model and would have severely limited its usefulness and accessibility.
Additionally, the original bill contained a provision that would have effectively eliminated reciprocity in North Carolina. It would have required that any appraiser seeking a reciprocal license come from a state with licensure requirements substantially similar to North Carolina’s—including the 50-post-PAREA appraisal requirement. Since no other state imposes such an overlay, this provision would have rendered reciprocal licensure functionally unavailable for most otherwise qualified out-of-state appraisers. The North Carolina Chapter recognized this issue early and successfully advocated for its removal.
Importantly, the law includes a sunset clause repealing the additional 15-report requirement for Certified Residential PAREA applicants on December 31, 2030. The North Carolina Chapter of the Appraisal Institute supported the inclusion of this sunset, recognizing that PAREA was designed by the Appraiser Qualifications Board as a complete alternative to the traditional experience pathway—without additional requirements.
Real Estate Horizons
Stay updated and check out links to the latest major real estate industry stories!
More Opportunities to Learn
Search the latest educational offerings! Find National and Chapter-sponsored classroom, synchronous, and online opportunities.
Your Community
The Appraisal Standards Board and the Appraiser Qualifications Board are accepting applications through July 31st for its boards, while two resource panels are accepting applications through September 1st.
Check out the list below to access the application for the group you think best fits your skills and interests.
- Appraisal Standards Board
- Appraiser Qualifications Board
- Business Valuation Resource Panel
- Personal Property Resource Panel
Let us know where you want to serve and how you can best contribute to the future of AI.
Until Next week
Team Appraisal Institute
