The Appraisal Foundation

Board of Trustees:Listening Tour and Stakeholder EngagementThe Board of Trustees began the year with a listening tour to engage with stakeholders across the profession, gathering their concerns and suggestions on how the Foundation could enhance public trust. These sessions were crucial in shaping the Board's agenda for the year. Regular updates were provided to demonstrate how stakeholder feedback influenced ongoing projects.Governance ModernizationOne of the major initiatives in 2023 was the Board Structure Work Group's report, which recommended streamlining and modernizing the Foundation's governance. Based on stakeholder feedback, the recommendations included eliminating direct appointments to the Board by external organizations, creating a new Partner category independent of financial contributions, and emphasizing governance responsibilities. After a public comment period, the Board adopted these recommendations and updated the bylaws accordingly. Implementation will continue through 2024.Successful Recruitment and NominationsThe Trustee and Boards Nominating Committees had a productive year, successfully recruiting new board members. The Boards Nominating Committee received a record 73 applications for the Appraisal Standards Board and Appraiser Qualifications Board. The Trustee Nominating Committee conducted two nomination cycles to ensure a full Board of Trustees for 2024. Both committees employed blind scoring and rubrics, achieving strong results.Diversity and Outreach EffortsThe Consumer Affairs and Stakeholder Outreach Committee and the Special Committee on Diversity, Equity, and Inclusion focused on outreach to aspiring appraisers in underserved communities. The Consumer Affairs Committee produced a video featuring a supervisor and trainee of color, highlighting their journey into the profession. The Chair of the Diversity, Equity, and Inclusion Committee attended an event at Morehouse College to promote the profession to students from the Atlanta University Center Consortium, where Foundation President Dave Bunton also spoke.Looking AheadAs the Board of Trustees prepares for 2024, the insights gained in 2023 will continue to guide their efforts.

Appraiser Qualifications Board:Real Property Appraiser Qualification CriteriaOn June 22, 2023, the Appraiser Qualification AQB (AQB) adopted a new edition of the Criteria with an effective date of January 1, 2026. The new Criteria was informed from two Exposure Drafts of Proposed Criteria changes that were released to the public, as well as from the AQB's Forum to Explore Education Requirements: Fair Housing Laws and Valuation Bias Education (Forum) on September 12, 2022. At the Forum, the AQB and the public heard from federal agencies, state appraiser regulatory agencies, professional appraiser organizations, education providers, and consumer, civil rights, and fair housing advocacy groups on the topic of requiring valuation bias and fair housing laws and regulations education for real property appraisers. After the Forum, and subsequently, a working group consisting of state appraiser regulatory agencies; professional appraiser organizations; education providers; appraiser coalitions; and consumer, civil rights, and fair housing advocacy groups met toto provide receive feedback to the AQB on what exactly the education requirements should contain. This was followed by the AQB issuing a First Exposure Draft in January 2023 and a Second Exposure Draft in May 2023.The adopted changes to the Criteria include new requirements for current and aspiring appraisers to complete Q.E. and/or C.E. courses which meet the content requirements of the Valuation Bias and Fair Housing Laws and Regulations Outline. Approved the First PAREA Program The Appraiser Qualifications Board approved the first two PAREA programs. Both programs are the Appraisal Institute's Practical Applications of Real Estate Appraisal (AI PAREA). One program is for the licensed residential credential and the other is for the certified residential credential. There are, however, several other developers still working to create their PAREA programs. As of December 31, 2023, the AQB reviewed 12 concept proposals from potential PAREA providers. States and territories continue to enter into rulemaking to adopt PAREA as an alternative pathway. As of December 31, 2023, the AQB's informal tracking noted PAREA adoption in 47 states and territories. The AQB continued conducting outreach to states by attending the state board meetings and speaking on PAREA. Specifically, the AQB spoke to several state appraiser boards including those in Vermont, Connecticut, Idaho, Illinois, Wyoming, Nevada, and Georgia. Improving the Course Approval Program The AQB continued to administer its Course Approval Program (CAP), a program designed to help state regulatory agencies approve qualifying and continuing education. As of December 31, 2023, there were approximately 275 CAP approved courses. Improving the National ExamIn 2023, the exam performed as intended and there was an increase in first time test takers. The exam questions for the National Uniform Licensing and Certification Examinations underwent an annual review by the AQB in 2023. An bi-annual review has been conducted by the AQB ever since both the 2008 version of the Criteria went int effect, which included the National Uniform Licensing and Certification Examinations requirements.To update the exam questions , the AQB engaged a group of appointed Subject Matter Experts (SMEs). The AQB, along with their contracted exam writing experts, and these SMEs met in-person in July to review exam questions and finalize new versions of the exams for each license classification. The new exams will launch on January 1, 2024.Degree Review Program - Outreach to Minority Serving Institutions In 2023, the AQB continued evaluating graduate and undergraduate degree programs in real estate to determine if their real estate courses meet the Q.E. education requirements of the Real Property Appraiser Qualification Criteria (Criteria). As a result, programs from the following colleges/universities had degrees approved: University of Cincinnati University of Nevada Las Vegas Mesa Community College Villanova University of Texas Arlington Since the beginning of this program, the AQB has approved a total of 29 undergraduate programs, 15 graduate programs, and 2 associate programs. The AQB continued outreach to education providers including minority serving institutions. The AQB also worked with several appraisal membership organizations to find ways to collaborate on future outreach. The AQB plans to continue their outreach to minority serving institutions, including tribal and women colleges in 2024. Certifying USPAP Instructors The Appraisal Standards Board adopted the 2024 version of USPAP in May 2023 with an effective date of January 1, 2024. Unlike previous editions, it will not have an end date. The Instructor Recertification Course (IRC) opened on October 1, 2023, and instructors have until March 31, 2024 to recertify. As of December 31, 2023, the number of USPAP Instructor who recertified to teach the 2024 USPAP courses was 240. The Instructor Certification Course (ICC) for new USPAP instructors is scheduled to be held in 2024 (the course is typically held every other year). USPAP Education The AQB, in collaboration with the ASB, revised the 7-Hour National USPAP Update courses which became available to teach on October 1. The course has again been well received, given its newer design and format. The course is designed to meet three objectives:1. Ensure that participants understand the principles and requirements of USPAP.2. Ensure participants understand USPAP in the context of current and common issues.3. Ensure participants know how to use the USPAP publication to solve their day-to-day appraisal practice related problemsAlso, the Functional Specifications and Requirements for Gaining an Equivalency Rating were updated for education providers who plan to develop their own equivalent USPAP courses.Q&As RELEASED In 2023, the AQB released four Q&As: Practicum course - Content & Experience PAREA & State Specific Certificate Mass Appraisal Experience & Supervisory Signature Can Licensed Appraisers be Supervisors