ICAP- Legislative Update

Below is a summary of ICAP’s Legislative efforts during Illinois 98th General Assembly, adjourned Friday, May 31, 2014.

ICAP opposed HB5709 which allowed municipality employees to perform waiver valuations (without a state certification) on properties where the compensation for the proposed take is less than $10,000. Through a series of negotiations including testifying before the Business & Occupational Licenses Committee ICAP agreed to allow municipal employees to perform waiver valuations if they complete 45 hours of real estate appraisal coursework, including:

• The principles of real estate appraisals,
• Appraisal of partial acquisitions,
• Easement valuation,
• Reviewing appraisals in eminent domain,
• Appraisal for federal aid highway programs, and
• Appraisal review for federal aid highway programs.

In addition to the education requirement either 2 years of real estate experience or 20 hours of additional coursework is required.

ICAP withdrew its opposition to SB1841 allowing an Illinois licensee to petition the Illinois State Appraisal Board (after 7 years) to have an offense relating to failure to pay taxes, student loans or relating to continuing education or advertising removed from the IDFPR’s website. ICAP’s directors felt that after 7 years State Appraisal Board members should be able to use their discretion with the removal of a non-practicing offense from the IDFPR’s website.

ICAP was successful in amending SB 3044 (The Real Estate License Act of 2000) adding definitions for Brokers Price Opinions (BPOs) & Competitive Market Analysis (CMAs). Previously BPOs and CMAs were not defined or regulated (for a person holding a valid real estate license). ICAP worked to define and regulate BPOs and CMAs which now require the flowing disclaimer:

“This is a broker price opinion/comparative market analysis, not an appraisal of the market value of the real estate, and was prepared by a licensed real estate broker or managing broker, not by a State certified real estate appraiser.”

ICAP believes defining and regulating these products will protect the public’s trust and reduce consumer confusion.

ICAP amended the Real Estate Appraiser Licensing Act of 2002 including removing the language “in connection with a federally related transaction” which enables the regulation of appraisals regardless of the intended use. ICAP inserted the definitions of BPOs and CMAs in the Real Estate Appraisal Act, stating that they are an “estimate or analysis of the probable selling price” and “not an estimate of market value provided by a State certified real estate appraiser”. The Appraisal Licensing Law was also revised to meet new federal requirements for certification, including removing the Bachelor’s degree alternative, thus requiring all applicants to have a Bachelor’s degree or higher from an accredited university. In compliance with the new federal requirements the law was also was revised to require criminal history record checks for each applicant for licensure either by examination or restoration. The criminal history record check includes having applicants fingerprints submitted to the Department of State Police in electronic format. Appraisal Consulting was removed from the definition of appraisal report and due to the new changes in the Appraisal Licensing Law; Real Estate Trainee Appraisers are not limited to the number of supervising appraisers they can work for. In addition, the revised Appraisal Licensing Law removed the term limits for board members. This bill passed both houses May 30th and will be sent to Governor who will have 60 days from date transmitted to take action.

ICAP took action to oppose SB3499. This bill states that in counties with less than 3,000,000 residents, a taxpayer may choose to be represented before the Board of Review by a tax representative, including a person who is a licensed IL real estate agent; possesses a Certified IL Assessing Officer certificate from IL Property Assessment Institute; possesses a Certified Assessment Evaluator designation from the International Association of Assessing Officers, or has obtained a Certification as a Member of the Appraisal Institute, is a Senior Real Estate Analyst, or a Senior Real Property Appraiser. ICAP opposed the bill due to concerns with terminology and definitions. Due to the opposition, this bill never made it out of the Senate Committee.

ICAP drafted language, intended for the Administrative Rules, defining how appraisal firms that have been required to register as an appraisal management company based on ownership can act as an appraisal firm. ICAP is planning to summit the following language to the Illinois State Appraisal Board with a recommendation that it be summated to the IDFPR for inclusion into the Administrative Rules.

The draft language is as follows:

Section 1452.20 Application for Original Registration
An individual or entity solely engaged in performing appraisals required to register as an appraisal management company based on an ownership percentage less than 100%, but acting as an appraisal firm and not as an appraisal management company, must at a minimum;

1) Submit an application for registration as an appraisal management company with the Division;

2) Obtain a surety bond pursuant to Section 50 of the Act.

No other requirements and conditions of the Act and Rules would apply

With the recent Executive Order by Illinois Governor Pat Quinn creating a Division of Real Estate ICAP has taking pro-active steps to keep the lines of communication open with the new Director of Real Estate.

In addition, ICAP along with 12 other State Appraisal Organizations signed a letter in response to the Agencies’ request for comments on the Proposed Minimum Requirements for Appraisal Management Companies. Among other things the letter recommends prohibiting the practice of sending a large number of appraisers the same appraisal order via email and posting orders on electronic bulletin boards for a large number of appraisers to simultaneously bid on. The comment letter also addresses appraiser independence and mentions the importance of engaging the most qualified appraisers.  The letter was a collaboration of 13 State organizations representing thousands of appraisers nationwide. It’s important to note that not every member of every coalition agrees with everything in the letter; however, what is agreed on is that national AMC legislation must be created and regulated in such a way that protects the public’s trust.

ICAP values your support, and encourages you to share your opinions, suggestions, and concerns with us.

Richard deVerdier, MAI, SRA, AI-GRS
2014 ICAP President

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About icapweb

ICAP was established in 1994 to be a unified voice for Real Estate Appraisers in the State of Illinois

Posted on June 26, 2014, in The Good Stuff. Bookmark the permalink. Leave a comment.

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