DEPARTMENT OF REGULATORY AGENCIES
DIVISION OF REAL ESTATE
BOARD OF REAL ESTATE APPRAISERS
4 CCR 725-2

NOTICE OF PROPOSED PERMANENT RULEMAKING HEARING
November 6, 2014

CHAPTER 2:  REQUIREMENTS FOR LICENSURE AS A REAL ESTATE APPRAISER

Pursuant to and in compliance with Title 12, Article 61 and Title 24, Article 4, C.R.S. as amended, notice of proposed rulemaking is hereby given, including notice to the Attorney General of the State of Colorado and to all persons who have requested to be advised of the intention of the Colorado Board of Real Estate Appraisers (the “Board”) to promulgate rules, or to amend, repeal or repeal and re-enact the present rules of the Board.

STATEMENT OF BASIS

The statutory basis for the rules titled Rules of the Board of Real Estate Appraisers is Part 7 of Title 12, Article 61, Colorado Revised Statutes, as amended.  

STATEMENT OF PURPOSE

The purpose of this rule is to effectuate the legislative directive to promulgate necessary and appropriate rules in conformity with the statute and the provisions of the federal Financial Institutions Reform, Recovery and Enforcement Act of 1989.

SPECIFIC PURPOSE OF THIS RULEMAKING

The specific purpose of this rule is to amend or repeal existing rules with license requirements for appraisers.
 
Proposed New, Amended and Repealed Rules

[Deleted material shown struck through, new material shown ALL CAPS. Rules, or portions of rules, which are unaffected are reproduced.  Readers are advised to obtain a copy of the complete rules of the Board at www.dora.state.co.us/real-estate/rulemaking/BOREA/index.htm]

CHAPTER 2:  REQUIREMENTS FOR LICENSURE AS A REAL ESTATE APPRAISER
	
2.2 An applicant for licensure as a Colorado Licensed Appraiser shallMUST successfully complete the following requirements or the substantial equivalent thereof, as set forth in the Required Core Curriculum and Guide Note 1 of the 20082015 Real Property Appraiser Qualification Criteria adopted by the Appraiser Qualifications Board of the Appraisal Foundation on February 20, 2004, and amended through May 5, 2006DECEMBER 9, 2011, with an effective date of January 1, 20082015, and incorporated by reference in Rule 1.32:
	A.  Real estate appraisal education:
		1.  Basic Appraisal Principles:  30 hours;
		2.  Basic Appraisal Procedures:  30 hours;
		3.  15-Hour National USPAP Course:  15 hours; 
		4.  Residential Market Analysis and Highest and Best Use:  15 hours;
		5.  Residential Appraiser Site Valuation and Cost Approach:  15 hours;
		6.  Residential Sales Comparison and Income Approaches:  30 hours; and 
		7.  Residential Report Writing and Case Studies:  15 hours.
B.  Real estate appraisal experience:  An applicant shall demonstrate to the satisfaction of the Board that the applicant completed at least 2,000 hours of appraisal experience in conformance with the provisions of Chapter 5 of these Rules and all of the applicant’s experience was obtained after January 30, 1989 and in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP).  Pursuant to §12-61-706(9), C.R.S., real estate appraisal experience shall be gained over a period of not less than 12 months.COLLEGE-LEVEL EDUCATION:  
1.  AN APPLICANT MUST SUCCESSFULLY COMPLETE THIRTY (30) SEMESTER HOURS OF COLLEGE-LEVEL EDUCATION, FROM AN ACCREDITED COLLEGE, JUNIOR COLLEGE, COMMUNITY COLLEGE, OR UNIVERSITY, AS DEFINED IN BOARD RULE 1.30.  IF AN ACCREDITED COLLEGE OR UNIVERSITY ACCEPTS THE COLLEGE-LEVEL EXAMINATION PROGRAM® (CLEP) AND EXAMINATION(S) AND ISSUES A TRANSCRIPT FOR THE EXAM SHOWING ITS APPROVAL, IT WILL BE CONSIDERED AS CREDIT FOR THE COLLEGE COURSE.
2.  AN APPLICANT HOLDING AN ASSOCIATE DEGREE, OR HIGHER, FROM AN ACCREDITED COLLEGE, JUNIOR COLLEGE, COMMUNITY COLLEGE, OR UNIVERSITY SATISFY THE THIRTY (30) HOUR COLLEGE-LEVEL EDUCATION REQUIREMENT.
3.  AN APPLICANT WITH A COLLEGE DEGREE FROM A FOREIGN COUNTRY MAY HAVE THEIR EDUCATION EVALUATED FOR “EQUIVALENCY” BY ONE OF THE FOLLOWING:
a. AN ACCREDITED, DEGREE-GRANTING DOMESTIC COLLEGE OR UNIVERSITY;
b. THE AMERICAN ASSOCIATION OF COLLEGIATE REGISTRARS AND ADMISSIONS OFFICERS (AACRAO);
c.  A FOREIGN DEGREE CREDENTIAL EVALUATION SERVICE COMPANY THAT IS A MEMBER OF THE NATIONAL ASSOCIATION OF CREDENTIAL EVALUATION SERVICES (NACES); OR 
d.  A FOREIGN DEGREE CREDENTIAL EVALUATION SERVICE COMPANY THAT PROVIDES EQUIVALENCY EVALUATION REPORTS ACCEPTED BY AN ACCREDITED DEGREE-GRANTING DOMESTIC COLLEGE OR UNIVERSITY OR BY A STATE LICENSING BOARD THAT ISSUES CREDENTIALS IN ANOTHER DISCIPLINE.
C. Real estate appraisal examination: Successful completion of the Licensed Appraiser examination as provided in Chapter 4 of these Rules.REAL ESTATE APPRAISAL EXPERIENCE:  AN APPLICANT MUST DEMONSTRATE TO THE SATISFACTION OF THE BOARD THAT THE APPLICANT COMPLETED AT LEAST 2,000 HOURS OF APPRAISAL EXPERIENCE IN CONFORMANCE WITH THE PROVISIONS OF CHAPTER 5 OF THESE RULES AND ALL OF THE APPLICANT’S EXPERIENCE WAS OBTAINED AFTER JANUARY 30, 1989 AND IN COMPLIANCE WITH THE UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE (USPAP).  PURSUANT TO §12-61-706(5), C.R.S., REAL ESTATE APPRAISAL EXPERIENCE MUST BE GAINED OVER A PERIOD OF NOT LESS THAN 12 MONTHS.
D.  REAL ESTATE APPRAISAL EXAMINATION:  
1.  THE PREREQUISITES TO TAKING THE LICENSED APPRAISER EXAMINATION ARE:
a.  ONE HUNDRED FIFTY (150) CREDITABLE CLASS HOURS AS SPECIFIED IN 2.2(A) OF THIS RULE; AND
b.  COMPLETION OF THE COLLEGE-LEVEL EDUCATION REQUIREMENTS AS SPECIFIED IN 2.2(B) OF THIS RULE;
c. TWO THOUSAND (2,000) HOURS OF QUALIFYING EXPERIENCE COMPLETED IN NO FEWER THAN TWELVE (12) MONTHS.  
2.  AFTER RECEIVING APPROVAL FROM THE BOARD, AN APPLICANT, WHO IS NOT CURRENTLY LICENSED OR CERTIFIED AND IN GOOD STANDING, HAS UP TO TWENTY-FOUR (24) MONTHS TO TAKE AND PASS THE LICENSED APPRAISER EXAMINATION.
3.  AN APPLICANT MUST SUCCESSFULLY COMPLETE THE LICENSED APPRAISER EXAMINATION AS PROVIDED IN CHAPTER 4 OF THESE RULES.  THE ONLY ALTERNATIVE TO SUCCESSFUL COMPLETION OF THE LICENSED APPRAISER EXAMINATION IS THE SUCCESSFUL COMPLETION OF THE CERTIFIED RESIDENTIAL OR CERTIFIED GENERAL EXAMINATION.

2.3 An applicant for licensure as a Colorado Certified Residential Appraisal shallMUST successfully complete the following requirements  or the substantial equivalent thereof, as set forth in the Required Core Curriculum and Guide Note 1 of the 2015 Real Property Appraiser Qualification Criteria adopted by the Appraiser Qualifications Board of the Appraisal Foundation on February 20, 2004, and amended through May 5, 2006,DECEMBER 9, 2011, with an effective date of January 1, 20082015, and incorporated by reference in Rule 1.32:
	A.  Real estate appraisal education:
		1.  Basic Appraisal Principles:  30 hours;
		2.  Basic Appraisal Procedures:  30 hours;
		3.  15-hour National USPAP Course:  15 hours;
		4.  Residential Market Analysis and Highest and Best Use:  15 hours;
		5.  Residential Appraiser Site Valuation and Cost Approach:  15 hours;
		6.  Residential Sales Comparison and Income Approaches:  30 hours;
		7.  Residential Report Writing and Case Studies:  15 hours;
		8.  Statistics, Modeling and Finance:  15 hours;
		9.  Advanced Residential Applications and Case Studies:  15 HOURS; AND
		10.  Appraisal Subject Matter Elective:  20 HOURS.;and
11.  hold an associate degree, or higher, from an accredited college, junior college, community college or university as defined in Board Rule 1.30; or
12.  Successfully complete at least 21 semester credit hours or 32 quarter credit hours in the following collegiate subject matter courses from an accredited college, junior college, community college or university as defined in Board Rule 1.30.  Courses in all the listed topics shall be completed.  No topics shall be omitted.  Credits earned through the college level examination program (“CLEP”) are acceptable to meet the requirement.
	A.  English Composition;
	B.  Principles of Economics;
	C.  Finance;
	D.  Algebra, Geometry or Higher Mathematics;
	E.  Statistics;
	F.  Computer Science; and
	G.  Business or Real Estate Law.
B.   Real estate appraisal experience:COLLEGE-LEVEL EDUCATION:
	An applicant for licensure as a Colorado Certified Residential Appraiser shall demonstrate to the satisfaction of the Board that the applicant completed at least 2,500 hours of appraisal experience in conformance with the provisions of Chapter 5 of these Rules and all of the applicant’s experience was obtained after January 30, 1989 and in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP).  Real estate appraisal experience shall have been gained across a period of not less than 24 months.
1.	AN APPLICANT FOR THE CERTIFIED RESIDENTIAL CREDENTIAL MUST HOLD A BACHELOR’S DEGREE, OR HIGHER, FROM AN ACCREDITED COLLEGE OR UNIVERSITY, AS DEFINED BY BOARD RULE 1.30.  
2.	AN APPLICANT WITH A COLLEGE DEGREE FROM A FOREIGN COUNTRY MAY HAVE THEIR EDUCATION EVALUATED FOR “EQUIVALENCY” BY ONE OF THE FOLLOWING:  
a.	AN ACCREDITED, DEGREE-GRANTING DOMESTIC COLLEGE OR UNIVERSITY;
b.	THE AMERICAN ASSOCIATION OF COLLEGIATE REGISTRARS AND ADMISSIONS OFFICERS (AACRAO);
c.	A FOREIGN DEGREE CREDENTIAL EVALUATION SERVICE COMPANY THAT IS A MEMBER OF THE NATIONAL ASSOCIATION OF CREDENTIAL EVALUATION SERVICES (NACES); OR 
d.	A FOREIGN DEGREE CREDENTIAL EVALUATION SERVICE COMPANY THAT PROVIDES EQUIVALENCY EVALUATION REPORTS ACCEPTED BY AN ACCREDITED DEGREE-GRANTING DOMESTIC COLLEGE OR UNIVERSITY OR BY A STATE LICENSING BOARD THAT ISSUES CREDENTIALS IN ANOTHER DISCIPLINE.
C.  Real estate appraisal examination:  Successful completion of the Certified Residential Appraiser examination as provided in Chapter 4 of these Rules.REAL ESTATE APPRAISAL EXPERIENCE:  AN APPLICANT FOR LICENSURE AS A CERTIFIED RESIDENTIAL APPRAISER MUST DEMONSTRATE TO THE SATISFACTION OF THE BOARD THAT THE APPLICANT COMPLETED AT LEAST 2,500 HOURS OF APPRAISAL EXPERIENCE IN CONFORMANCE WITH THE PROVISIONS OF CHAPTER 5 OF THESE RULES AND ALL OF THE APPLICANT’S EXPERIENCE WAS OBTAINED AFTER JANUARY 30, 1989 AND IN COMPLIANCE WITH THE UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE (USPAP).  REAL ESTATE APPRAISAL EXPERIENCE MUST HAVE BEEN GAINED ACROSS A PERIOD OF NOT LESS THAN TWENTY-FOUR (24) MONTHS.
D.   REAL ESTATE APPRAISAL EXAMINATION:
1. THE PREREQUISITES TO TAKING THE CERTIFIED RESIDENTIAL APPRAISER EXAMINATION ARE:
a.  TWO HUNDRED (200) CREDITABLE CLASS HOURS AS SPECIFIED IN 2.3(A) OF THIS RULE; AND
b.  COMPLETION OF THE COLLEGE-LEVEL EDUCATION REQUIREMENTS AS SPECIFIED IN 2.3(B) OF THIS RULE;
c. TWO THOUSAND FIVE HUNDRED (2,500) HOURS OF QUALIFYING EXPERIENCE COMPLETED IN NO FEWER THAN TWENTY-FOUR (24) MONTHS.  
2.  AFTER RECEIVING APPROVAL FROM THE BOARD, AN APPLICANT, WHO IS NOT CURRENTLY LICENSED OR CERTIFIED AND IN GOOD STANDING, HAS UP TO TWENTY-FOUR (24) MONTHS TO TAKE AND PASS THE CERTIFIED RESIDENTIAL APPRAISER EXAMINATION.
3. AN APPLICANT MUST SUCCESSFULLY COMPLETE THE CERTIFIED RESIDENTIAL APPRAISER EXAMINATION AS PROVIDED IN CHAPTER 4 OF THESE RULES.  THE ONLY ALTERNATIVE TO SUCCESSFUL COMPLETION OF THE CERTIFIED RESIDENTIAL APPRAISER EXAMINATION IS THE SUCCESSFUL COMPLETION OF THE CERTIFIED GENERAL EXAMINATION.

2.4  An applicant for licensure as a Colorado Certified General Appraiser shall successfully complete the following requirements or the substantial equivalent thereof, as set forth in the Required Core Curriculum and Guide Note 1 of the 20082015 Real Property Appraiser Qualification Criteria adopted by the Appraiser Qualifications Board of the Appraisal Foundation on February 20, 2004, and amended through May 5, 2006DECEMBER 9, 2011, with an effective date of January 1, 20082015, as incorporated by reference in Rule 1.32:
	A.  Real estate appraisal education:
		1.  Basic Appraisal Principles:  30 hours;
		2.  Basic Appraisal Procedures:  30 hours;
		3.  15-Hour National USPAP Course:  15 hours;
		4.  General Appraiser Market Analysis and Highest and Best Use:  30 hours;
		5.  Statistics, Modeling and Finance;  15 hours;
		6.  General Appraiser Sales Comparison Approach:  30 hours; 
		7.  General Appraiser Site Valuation and Cost Approach:  30 hours; 
		8.  General Appraiser Income Approach:  60 hours;
		9.  General Appraiser Report Writing and Case Studies;  30 hours;  AND
		10.  Appraisal Subject Matter Electives:  30 hours.; and
11. hold a bachelor’s degree or higher from an accredited college or university as defined in Board Rule 1.30, or
12.  successfully complete not less than 30 semester hours or 45 quarter credit hours in the following collegiate subject matter courses from an accredited college, junior college, community college or university as defined in Board Rule 1.30.  Courses in all of the listed topics shall be successfully completed.  No topics shall be omitted.  Credits earned through the college level examination program (“CLEP” are acceptable to meet this requirement.
	A.  English Composition;
	B.  Macro Economics;
	C.  Micro Economics;
	D.  Finance;
	E.  Algebra, Geometry or Higher Mathematics;
	F.  Statistics;
	G.  Computer Science;
	H.  Business or Real Estate Law; and
I.  Two elective courses in Accounting, Geography, Agricultural Economics, Business Management or Real Estate
B.  Real estate appraisal experience:COLLEGE-LEVEL EDUCATION:
	An applicant submitting an application in the offices of the Board for licensure as a Colorado Certified General Appraiser shall demonstrate to the satisfaction of the Board that the applicant completed at least 3.000 hours of appraisal experience in conformance with the provisions of Chapter 5 of these Rules and all of the applicant’s experience was obtained after January 30, 1989 and in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP).  Real estate appraisal experience shall have been gained across a period of not less than 30 months and shall include at least 1,500 hours of appraisal of non-residential property, as defined in Chapter 1 of these Rules. 	
1.	AN APPLICANT FOR THE CERTIFIED GENERAL CREDENTIAL MUST HOLD A BACHELOR’S DEGREE, OR HIGHER, FROM AN ACCREDITED COLLEGE OR UNIVERSITY, AS DEFINED BY BOARD RULE 1.30.
2.	AN APPLICANT WITH A COLLEGE DEGREE FROM A FOREIGN COUNTRY MAY HAVE THEIR EDUCATION EVALUATED FOR “EQUIVALENCY” BY ONE OF THE FOLLOWING:  
a.	AN ACCREDITED, DEGREE-GRANTING DOMESTIC COLLEGE OR UNIVERSITY;
b.	THE AMERICAN ASSOCIATION OF COLLEGIATE REGISTRARS AND ADMISSIONS OFFICERS (AACRAO);
c.	A FOREIGN DEGREE CREDENTIAL EVALUATION SERVICE COMPANY THAT IS A MEMBER OF THE NATIONAL ASSOCIATION OF CREDENTIAL EVALUATION SERVICES (NACES); OR 
d.	A FOREIGN DEGREE CREDENTIAL EVALUATION SERVICE COMPANY THAT PROVIDES EQUIVALENCY EVALUATION REPORTS ACCEPTED BY AN ACCREDITED DEGREE-GRANTING DOMESTIC COLLEGE OR UNIVERSITY OR BY A STATE LICENSING BOARD THAT ISSUES CREDENTIALS IN ANOTHER DISCIPLINE.
C.  Real estate appraisal examination:  Successful completion of the Certified Residential Appraiser examination as provided in Chapter 4 of these Rules.REAL ESTATE APPRAISAL EXPERIENCE:  AN APPLICANT FOR LICENSURE AS A CERTIFIED GENERAL APPRAISER MUST DEMONSTRATE TO THE SATISFACTION OF THE BOARD THAT THE APPLICANT COMPLETED AT LEAST 3,000 HOURS OF APPRAISAL EXPERIENCE, OF WHICH 1,500 HOURS MUST BE IN NON-RESIDENTIAL APPRAISAL WORK,  IN CONFORMANCE WITH THE PROVISIONS OF CHAPTER 5 OF THESE RULES AND ALL OF THE APPLICANT’S EXPERIENCE WAS OBTAINED AFTER JANUARY 30, 1989 AND IN COMPLIANCE WITH THE UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE (USPAP).  REAL ESTATE APPRAISAL EXPERIENCE MUST HAVE BEEN GAINED ACROSS A PERIOD OF NOT LESS THAN THIRTY (30) MONTHS.
D.  REAL ESTATE APPRAISAL EXAMINATION:
1. THE PREREQUISITES TO TAKING THE CERTIFIED GENERAL APPRAISER EXAMINATION ARE:
a.  THREE HUNDRED (300) CREDITABLE CLASS HOURS AS SPECIFIED IN 2.4(A) OF THIS RULE; AND
b.  COMPLETION OF THE COLLEGE-LEVEL EDUCATION REQUIREMENTS AS SPECIFIED IN 2.4(B) OF THIS RULE;
c. THREE THOUSAND (3,000) HOURS OF QUALIFYING EXPERIENCE, OF WHICH NO LESS THAN 1,500 HOURS MUST BE IN NON-RESIDENTIAL APPRAISAL WORK, COMPLETED IN NO FEWER THAN THIRTY (30) MONTHS.  
2.  AFTER RECEIVING APPROVAL FROM THE BOARD, AN APPLICANT, WHO IS NOT CURRENTLY LICENSED OR CERTIFIED AND IN GOOD STANDING, HAS UP TO TWENTY-FOUR (24) MONTHS TO TAKE AND PASS THE CERTIFIED GENERAL APPRAISER EXAMINATION.
3. AN APPLICANT MUST SUCCESSFULLY COMPLETE THE CERTIFIED GENERAL APPRAISER EXAMINATION AS PROVIDED IN CHAPTER 4 OF THESE RULES.  

A hearing on the above subject matter will be held on Thursday, November 6, 2014, at the Colorado Division of Real Estate, 1560 Broadway, Suite 1250C, Denver, Colorado 80202 beginning at 9:00 a.m. 

Any interested person may participate in the rule making through submission of written data, views and arguments to the Division of Real Estate.  Persons are requested to submit data, views and arguments to the Division of Real Estate in writing no less than ten (10) days prior to the hearing date and time set forth above. However, all data, views and arguments submitted prior to or at the rulemaking hearing or prior to the closure of the rulemaking record (if different from the date and time of hearing), shall be considered.

Please be advised that the rule being considered is subject to further changes and modifications after public comment and formal hearing.