Recent Newsletters

The Charitable Conservation Easement Program Integrity Act (HR 4164/S 2256) is bipartisan legislation  that targets abusive conservation syndications. It is under consideration in Congress but is no longer being considered as part of the Biden administration’s “Build Back Better” plan.

The IRS in October made changes to its Penalty Handbook and Penalties Applicable to Incorrect Appraisals. Appraisers who conduct work for the IRS are strongly encouraged to familiarize themselves with the procedures outlined in the manual, which, among other things, defines how a 6695A penalty would be applied against appraisers. Also addressed are issues surrounding the issuance of a Letter 4477, audit appointment meetings and the “more likely than not” exception.

The National Fair Housing Alliance, under contract by the Appraisal Subcommittee and the Council on Licensure, Enforcement and Regulation, on Jan. 19 released its report on whether the Uniform Standards of Professional Appraisal Practice and Appraiser Qualifications Criteria support or promote fairness, equity, objectivity and diversity in both appraisals and the training and credentialing of appraisers.

Beginning April 1, Fannie Mae will require appraisers to report a property’s gross living area and non-gross living area for appraisals involving interior and exterior inspections by using the American National Standard for Single-Family Residential Buildings, Square Footage Method of Calculating, ANSI Z765-2021. This standard was last updated in May.

Appraisers in Connecticut may now perform evaluations for federally regulated financial institutions when an appraisal is not required, according to new rules that were finalized by the Connecticut Department of Consumer Protection on Sept. 30. Evaluations may be prepared outside the scope of the Uniform Standards of Professional Appraisal Practice and in accordance with the Interagency Appraisal and Evaluation Guidelines.

Pennsylvania Gov. Richard Wolf on Dec. 2 signed HB 1255, legislation that establishes an appraiser-specific statute of repose that takes effect Feb. 20. Pursuant to this new law, an action to recover damages against an appraiser must be brought within five years of the date on which the appraisal was conducted. The repose period does not apply to actions brought against appraisers by individual property owners as part of a cash purchase of residential property or to actions where there is evidence of fraud or intentional misrepresentation.

The South Dakota Department of Labor and Regulation on Sept. 20 proposed new rules regarding virtual education, the Practical Applications of Real Estate Appraisal, known as PAREA, and a new Experience Training Program.

The legislatures in 36 states, the District of Columbia, Guam, the Northern Mariana Islands and the U.S. Virgin Islands are now in session. The Appraisal Institute’s Washington office continues to work with its chapters, regions and state coalitions to help shape public policy affecting AI professionals and the valuation profession.