President's Message, May 2023
Dear Appraisal Institute Colleague:
Last week I attended AI's Leadership Development and Advisory Council (LDAC) conference in Washington with the rest of the Executive Committee. At the event, a group of up-and-coming appraisers came together to focus on the future of the appraisal profession. It was once again invigorating to participate in the "think tank" environment and learn from the experiences of so many young leaders who are eager to make an impact in our profession. I've attended LDAC continuously since 2012 absent the pandemic interruption and an AARO presidential obligation that kept me away in 2018. As those who have been fortunate enough to share the LDAC Experience know, it is hard to describe the two-and-a-half days of LDAC but it's one of the best opportunities that the AI provides for its members and is always highly enlightening and rewarding.
I am also excited to share some big news that represents a major milestone - not only for the Appraisal Institute - but for the valuation profession as a whole. The AI PAREA program came one step closer to launch, as detailed in the next article. I often refer to AI PAREA as the “flight simulator for appraisers” and I know that this exciting new program will propel us towards a more diverse and representative generation of appraisers.
As an executive officer at the Appraisal Institute, I am often asked to deliver “State of AI” presentations to our regions and chapters across the country. After attending LDAC, and in announcing the exciting news of AI PAREA, I can confidently say that the state of the Appraisal Institute is strong. Our terrific reputation has been built by our many predecessors over the past 90+ years, our prospects are bright and the organization will continue to prosper under the guidance of the Appraisal Institute's future leaders.
AQB Approves AI PAREA Licensed Residential Path
It is my great pleasure to share with you, as just noted, that the Appraiser Qualifications Board approved AI's PAREA program for the licensed residential path.
The Appraisal Foundation's Board of Trustees awarded the Pathway to Success Grant to the Appraisal Institute to assist with the development of the PAREA program. The Pathway to Success Conditional Grant is designed to open the doorway to the appraisal profession to a new generation of appraisers and stipulates that participant priority be given to veterans, minorities and those in designated rural areas. AI was awarded the full grant amount of $500,000 to build its AI PAREA program in collaboration with its partners. AI also committed more than $2 million of its reserves toward AI PAREA.
AI PAREA, which is an online program, is an alternative pathway for aspiring appraisers to gain their required experience hours to become a licensed or certified appraiser. Historically, the only option for an appraiser to complete their experience hours was through a supervisor/trainee model that requires the aspiring appraiser to find their own supervisor. AI PAREA is currently accepted in 43 states, and that number is likely to increase as more states adopt this alternative pathway.
Key elements of AI PAREA include:
- Participants will be supported throughout the program by mentors who are Appraisal Institute Designated Members and full-time employees of the organization. The Appraisal Institute specifies rigorous requirements for Designated membership regarding experience, education and moral character and those individuals demonstrate the highest standards of education and ethics.
- AI PAREA participants will have access to the organization's 66 chapters to enhance networking opportunities and connect with appraisers who can potentially help participants become geographically competent, meaning that participants can learn about the specifics of local markets from appraisers with that knowledge and experience.
- In addition to the basic specification of three Uniform Standards of Professional Appraisal Practice (USPAP)-compliant reports established for PAREA programs by the AQB, AI PAREA features an additional 10 practice assignments and reports. The assignments are consistent for all participants and include a variety of complexity and property types to reinforce important appraisal concepts and skills.
- The assignments that are part of AI PAREA are developed by an organization with a 90-plus-year history of creating best-in-class education, publications and other appraisal products.
- AI PAREA participants have access to a knowledge center that includes a variety of resources that appraisers use every day including forms software and a multiple listing service (MLS).
View a clip of AI PAREA.
During the pilot program phase, AI PAREA will initially welcome select participants who have completed their Qualifying Education and reside in a state which has fully accepted PAREA in lieu of the traditional supervisor/trainee model. AI PAREA is expected to launch broadly and make registration available by September 2023.
I look forward to sharing more information about AI PAREA as it becomes available. For now, I'd encourage you to learn more about AI PAREA on the AI website.
AI Board of Directors Takes Key Actions During May Meeting
I'm happy to share some important updates from the latest Board of Directors meeting, held May 11-12, in Chicago.
After considering comments received from AI Professionals, the Board voted to adopt amendments to AI Bylaws and Regulation Nos. 7, 8 and 9 regarding the continuing education program requirement for service.
The Board also:
- Voted to establish a Region Project Team to review Regulation No. 9.
- Voted to amend the criteria for the Women's Initiative SPOTLIGHT Award.
- Voted for the Admissions and Designation Qualifications Committee to review annual income eligibility for Practicing Semi-Retired Designated Member status.
- Voted to provide an electronic copy of Robert’s Rules of Order to third regional directors.
- Voted to approve Michael Strong, SRA, to serve a third consecutive term as Alaska Chapter president in 2024.
- Directed to expose for a second time proposed amendments to the Bylaws and Regulation No. 4 regarding Life Membership with additional background and rationale.
- Directed to expose for comment proposed amendments to Regulation Nos. 2 and 3 regarding Residential and Residential Review Experience Requirements.
- Directed to expose for comment proposed amendments to Regulation No. 10 related to Designated Member CE Cycles.
- Approved the appointment of Lindsey M. Willis, MAI, AI-GRS, to the Education Committee for a term running through Dec. 31, 2023.
- The Appraisal Institute also held its Statutory Annual Membership Meeting.
The next Appraisal Institute Board meeting is scheduled for Aug. 10-11 in Schaumburg, IL.
AI Participates in HUD Panel on Equity in Property Appraisal
Last month, I had the privilege of joining an esteemed panel of speakers on a panel titled, "Fair Housing: Seeking Equity in Property Assessment, Appraisal & Valuation," hosted by Cook County (Illinois) Assessor Fritz Kaegi and HUD Regional Administrator Diane M. Shelley. I was grateful to be invited to provide the appraiser perspective on these timely issues, along with solutions that AI is implementing. Check out the discussion on the Cook County Assessor's YouTube page (beginning at the 2:08 mark).
AI Webinar Provides Perspectives from Banking and Institutional Investment Communities
Representatives from the American Bankers Association and NCREIF joined a panel hosted by AI's Government Relations Committee earlier this month to discuss bank examiner sentiments and regulatory expectations, along with other timely CRE topics. Watch the discussion on AI's YouTube channel.
National Award Nominations Now Open
We would like to recognize some of the brightest, most committed and deserving AI Professionals. If you believe you know an AI Professional who fits the criteria for the J. Scott Robinson Lifetime Achievement Award, Outstanding Service Award, Women’s Initiative SPOTLIGHT Award or the William S. Harps DEI Award, please nominate that person. Submissions for these Awards must be completed by July 31. Announcements of the awards will take place during the Appraisal Institute's Joint Region and Chapter Leadership Program meetings this October in Louisville, Ky. For more information or to nominate an AI Professional, view the nomination form on the AI website (login required).
Designated Members Called to Volunteer for National Service
If you are interested in further serving the Appraisal Institute at the national level in 2024, please complete the Leadership Resource Registry no later than 5 p.m. CDT, Aug. 2. To be considered for national committees, panels, the Appraisal Institute Insurance Trust or the Appraisal Institute Education & Relief Foundation, if eligible, you must express your interests within the Leadership Resource Registry (login required).
Even if you submitted your interests last year in the Registry, and there are no changes to your preferences, you will need to log back into the Registry.
I want to thank you in advance for indicating your preferences in the Registry. I look forward to a strong response, which will help to broaden the base of participation in the organization and serve as a source of new ideas and growth.
If you have questions, or need assistance completing the Registry, please contact Rachael Georges at rgeorges@appraisalinstitute.org.