Notice of Proposed Rule

DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION
Florida Real Estate Appraisal Board
RULE NO: RULE TITLE
61J1-6.001: Experience Requirement
PURPOSE AND EFFECT: The Board proposes the rule amendment in order to specify requirements when obtaining experience by conducting mass appraisals.
SUMMARY: The requirements regarding mass appraisals will be added to the experience rule.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS: A Statement of Estimated Regulatory Cost was prepared. A copy can be obtained from Thomas W. O’Bryant, Jr., Deputy Director at the address listed below.
Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
SPECIFIC AUTHORITY: 475.614, 475.615(2) FS.
LAW IMPLEMENTED: 455.213, 475.611(1)(o), 475.615(2), 475.617, 475.628 FS.
IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN FAW.
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Thomas W. O’Bryant, Jr., Deputy Director, Division of Real Estate, 400 West Robinson Street, Hurston Building, North Tower, Suite N801, Orlando, Florida 32801

THE FULL TEXT OF THE PROPOSED RULE IS:

61J1-6.001 Experience Requirement.

(1) through (4) No change.

(5) Experience as defined in subsection (2) above shall be accounted for on an appraisal experience log, which shall include the following minimum information: type of property, date of report, address of appraised property, description of work performed by the registered trainee/applicant and scope of the review and supervision of the supervising appraiser, number of work hours, and signature and license number of supervising appraiser (if applicable). The log and supporting documents shall be retained for a minimum of 5 years after licensure or certification. All work submitted for experience shall comply with the Uniform Standards of Professional Appraisal Practice, as defined in Section 475.611(1)(q)(o), Florida Statutes. Types of acceptable experience are, as follows:

(a) No change.

1. through 2. No change.

(b) Mass appraisals Ad valorem tax appraisals:

1. Mass appraisals must be as set forth in Standard Rule 6 of the 2008-2009 Edition of the Uniform Standards of Professional Appraisal Practice as defined in Section 475.611(1)(q), F.S. Experience credit shall be credited when it is demonstrated that the applicant:

a. Used techniques to value properties similar to those used by appraisers; and

b. Effectively used the appraisal process.

2. Mass appraisal experience claimed by the applicant should be given credit to the extent that it demonstrates proficiency in appraisal practices, techniques, or skills used by appraisers practicing under USPAP Standard 1 adopted in June 1997. Components of the mass appraisal process on which credit will be given are:

a. Highest and best use analysis;

b. Model specification (developing the model); and

c. Model calibration (developing adjustments to the model).

All other components of the mass appraisal process are not eligible for experience credit.

3. In developing a mass appraisal, an appraiser must be aware of, understand, and correctly employ those recognized methods and techniques necessary to produce and communicate credible mass appraisals. Mass appraisals must be as set forth in Standard Rule 6 of the Uniform Standards of Professional Appraisal Practice as defined in Section 475.611(1)(q), F.S.

4. Mass appraisal experience shall include:

a. Identifying properties to be appraised;

b. Defining market area of consistent behavior that applies to properties;

c. Identifying characteristics (supply and demand) that affect the creation of value in that market area;

d.(I) Determining highest and best use;

(II) Demonstrating proficiency with elements and concept of highest and best use through separate analysis if not contained in appraisals submitted for audit;

e. Developing a model structure to determine the contribution of the individual characteristics affecting value;

f. Calibrating the model structure to determine the contribution of the individual characteristics affecting value;

g. Applying the conclusions reflected in the model to the characteristics of the property or properties being appraised; and

h. Reviewing the mass appraisal results.

All other components of the mass appraisal process are not eligible for experience credit.

5.4. Experience will be granted for appraisals of individual parcels of real estate.

(c) through (e) No change.

1. through 2. No change.

(6) No change.

Rulemaking Specific Authority 475.614, FS. Law Implemented 475.611(1)(q), 475.615(2), 475.617, 475.628 FS. History–New 10-15-91, Formerly 21VV-6.001, Amended 9-22-93, 9-6-94, 2-19-98, 9-6-98, 12-12-99, 10-1-00, 6-1-04, 3-1-06, 12-4-06, 4-18-07, 11-25-07,________.


NAME OF PERSON ORIGINATING PROPOSED RULE: Florida Real Estate Appraisal Board
NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Florida Real Estate Appraisal Board
DATE PROPOSED RULE APPROVED BY AGENCY HEAD: December 9, 2008
DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAW: March 21, 2008