Revitalization projects, reserve studies, and new URAR learning opportunities
In this issue:
- Office of Management and Budget proposal underscores the importance of independent appraisals in federal grant programs
- AI members receive 15% off their first-year LightBox subscription
- Register for a free Trending Topics Thursdays webinar on reserve studies for HOA and condominium associations
- Explore upcoming classroom and synchronous education opportunities, including income capitalization approach, USPAP, and expert witness courses
Insights
Appraisal Institute Supports OMB Proposal Preserving Independent Appraisals for Donated Property
The Appraisal Institute recently submitted comments to the Office of Management and Budget (OMB) supporting a proposed rule that would continue to require independent appraisals when donated real property is used to satisfy matching requirements under federal grant programs.
While the proposal is part of a broader Administration effort to revise federal grant regulations, the treatment of donated land, buildings, easements, and other real property interests carries important implications for taxpayers and program integrity.
Under many federal programs, donated property may be counted toward the non-federal share of a project. As a result, the value assigned to that property can directly affect project eligibility, matching requirements, and the amount of federal assistance ultimately provided.
In its comment letter, the Appraisal Institute noted that the valuation of donated property is not merely an accounting exercise. When property values are overstated, federal expenditures may exceed the level of support intended by Congress or program administrators. Independent appraisals help ensure that matching contributions are based on credible market evidence and provide a safeguard against both the intentional and unintentional inflation of non-federal contributions.
The Appraisal Institute also urged the OMB to continue relying on fair market value established through independent appraisal rather than property tax assessments or other administrative valuation measures, which can vary significantly among jurisdictions and may not reflect current market conditions.
According to the Appraisal Institute, independent appraisals are particularly important in economic development, redevelopment, infrastructure, housing, and conservation projects, where donated property often represents a substantial portion of the required local contribution and may involve complex valuation issues related to future development expectations, zoning changes, or public investments.
The Appraisal Institute's comments emphasized that independent appraisals provide transparency, create an auditable record for federal agencies and inspectors general, and help ensure the consistent treatment of grant applicants nationwide.
As the OMB considers public comments on the proposal, the Appraisal Institute continues to advocate for valuation standards that promote accountability, program integrity, and responsible stewardship of taxpayer resources.
Your Benefits
All AI members get 15% off their first-year subscription of a revolutionary end-to-end workflow solution that helps commercial real estate appraisers win more engagements, research property and market data, complete an income analysis, and write high-quality appraisal reports in less time.
AI members will have access to the following benefits:
- 15% off their first-year subscription of LightBox
- The complete suite of apps within LightBox: Jobs, Research, CashFlow, Report Writer, and Insights
- The ability to capture front-end subject property information in as little as six minutes
- Lightbox proprietary data via Bid Intelligence and Insights to help you make smarter bids and grow your business
- A discounted cash flow analysis in under 30 minutes
AI Blog
Every appraisal assignment rests on a foundation of concepts that new appraisers must learn early in their careers. Property rights, value theory, economic principles, and legal considerations shape how appraisers define problems and develop credible opinions of value.
A new AI blog explores why Basic Appraisal Principles is more than an introductory course—and how it provides the professional foundation for the rest of the qualifying education pathway.
The next live online session begins July 7. Read the blog and register today.
Trending Topics Thursdays:
Sign up for our next free webinar
Reserve Studies for HOA & Condominium Associations - What Appraisers Need to Know
June 18, 2026 at 11:00 AM CDT
Reserve studies are increasingly shaping how community associations plan, fund, and disclose long‑term capital needs, and this has real implications for valuation, risk, and marketability. In this one‑hour, appraiser‑focused webinar, a reserve-study practitioner and an HOA general manager (end user) discuss how reserve studies are developed and used, what boards and managers look for when hiring reserve professionals, and practical ways appraisers can interpret and evaluate reserve-related information when working on condominium and HOA‑governed properties. The program also highlights emerging legislative requirements affecting association reserves and introduces how appraisers can leverage core cost approach competencies to expand into reserve-study work.
Key takeaways include:
- Reserve study fundamentals: scope, major components, and common terminology
- How associations use reserve studies for budgeting, capital planning, and communicating funding needs
- What an HOA/condominium manager looks for when procuring reserve-study services and reviewing deliverables
- Legislative and regulatory trends influencing reserve requirements and disclosures
- Opportunity for appraisers: how reserve studies align with, and can leverage, core cost approach competencies, plus practical career pathway insights for adding reserve studies to your service offerings
Panelists:
- Bernie Guthrie, General Manager, CMCA, AMS, LSM, PCAM, Lake of the Woods Association, Inc
- Jon (Jay) Dawson, SRA, AI-RRS, RS, Edge Realty Advisors
Advocacy Updates
MISMO Updates Valuation Procurement Standard for UAD 3.6 Era
The Mortgage Industry Standards Maintenance Organization (MISMO) announced an update to its Property and Valuation Services (PaVS) Procurement Dataset Specification, providing a standardized, data-driven framework for ordering valuation services. The update is designed to support the industry's transition to UAD 3.6 and move away from traditional form-based appraisal ordering. Lenders, appraisal management companies, and valuation providers will be able to exchange standardized data elements that define the scope and requirements of an assignment rather than requesting valuation services based primarily on appraisal form numbers. MISMO says the new specification is intended to streamline integrations between industry participants and support a broader range of valuation products and workflows.
For appraisers, the change is another sign of the mortgage industry's ongoing shift from form-centric processes toward data-centric valuation systems. Appraisers and appraisal firms that invest in technology, data standards, and UAD 3.6 readiness will likely be best positioned as lenders modernize their valuation procurement systems. The update also underscores the importance of ensuring that appraisers remain central participants in a rapidly evolving valuation ecosystem where expertise in analyzing market value remains essential, even as the technology used to order, transmit, and review appraisal assignments continues to change.
Member Moves and Media
Capright Team Publishes Self-Storage REIT Market Update
Doug Ticus, MAI, MRICS, Kris Oxtal, MAI, and Associate Member Isabella C. Mendoza recently authored Capright’s Self-Storage REIT Update – June 2026, providing analysis of occupancy trends, rental rate performance, acquisition activity, and the evolving outlook for the self-storage sector.
DeVries Shares Chicago Housing Market Insights on FOX 32
Ron DeVries, MAI, SRA, recently appeared on FOX 32 Chicago to discuss local housing market trends and the factors influencing residential real estate values across the Chicago area.
Real Estate Horizons
Stay updated and check out links to the latest major real estate industry stories!
More Opportunities to Learn
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Until Next week
Team Appraisal Institute
