PRESIDENT’S MESSAGE Kenneth L. Dicks, MAI, 2015 Chapter President

Massachusetts and Rhode Island Chapter Newsletter

May 2015

March (verb) a steady advance. Looking back at my path to designation, the March, as

measured over a career, was in the greater context, a steady advance.

In the hundreds of e-mails I receive on a weekly basis, there are, at times, gems that

come across the mail servers. So far, this year, I have seen five such e-mails coming

from National AI to inform me of newly designations members of the Chapter. These

are notifications and congratulatory e-mails to newly designated members of the

Appraisal Institute. These notifications are recognition of achieving a prestigious

designation that differentiates our members in a highly competitive marketplace. These

notifications acknowledge that our members have made a commitment to advanced

education, higher ethical requirements and elevated expectations for the appraisal

profession as a whole.

(cont’d on page 3):

UPCOMING EDUCATION

Case Studies in Appraising Green Commercial Buildings

June 10 – 11, 2015 Burlington, MA

Real Estate Finance Statistics

and Valuation Modeling June 18 – 19, 2015

Burlington, MA

Uniform Appraisal Standards for Federal Land Acquisitions

June 23 – 24, 2015 Dedham, MA

2014 - 2015 7 Hour National

USPAP Update Course June 25, 2015 Warwick, RI

General Market Analysis and

Highest and Best Use July 15 – 18, 2015

Woburn, MA

Register Now

ONLINE EDUCATION

Comparative Analysis Learn More

MEETINGS & EVENTS

The next Chapter Membership will be in September

Look for details in August!

IN THIS ISSUE

New Designated Members

New AI Professionals

Economic Outlook and RE Trends – Summary

2015 Nomination Committee Report

Government Affairs

News from the National Office

Quality Matters

SAVE THE DATE

2015 Summer Social

Boston Harbor Sunset Cruise Thursday, August 13th

Enjoy a 75-minute sunset cruise of Boston Harbor aboard one of Charles River Boat Company's fleet of harbor boats while experiencing breathtaking views of the fading daylight against Boston's city skyline. Boat departs at 6PM from Rowes Wharf.

Relax after work. This is a great opportunity to network with other real

estate professionals. Join us for this informal meet and greet. Co-

workers, friends, and spouses are invited to attend.

DETAILS WILL BE AVAILABLE IN LATE JUNE.

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The Rhode Island Branch Chapter meeting was held on March 26, 2015 at the Sheraton Providence Hotel in Warwick. Chapter President Ken Dicks, MAI was able to attend and gave an overview of chapter activities and initiatives planned for the remainder of 2015.

It was my pleasure to present Review Designation Certificates to Douglas Gablinske, SRA, AI-RRS, Jennifer Schnell, SRA, AI-RRS, and Michael Shand, MAI, AI-GRS.

We formed the nominating committee for the 2016 Branch Advisory Board. The Committee, comprised of Past Chair George Demopulos, SRA, AI-RRS, Gregory Accetta, MAI, and Jerry Roch, SRA, completed it work on May 14

th. The Election of the 2016 Branch

Advisory Board will take place on June 23 2015. View the Report of the RI Branch Chapter Nominating Committee here.

At the March meeting, Bill McGovern, SRA reviewed the Branch Chapter’s Hope Scholarship with those in attendance. Recent designees have been taking advantage of this program which awards up to $500 for designation (MAI, SRA, and Review) path classes. The Capstone Program scholarship is $750. The Hope Scholarship will sunset on December 31, 2017 when the remaining balance will be merged with the Chapter’s Hewitt Scholarship Fund.

Designated members, Candidates, and Affiliates are encouraged to check the Chapter’s web site to review currently scheduled classes. Many are being offered nearby in the Boston metro area. The Education tab has a link to all classes in Region IV which includes eastern New York. The Calendar of Events tab is a helpful planning tool that aids in visualizing the time line of multi-day classes. Early in my appraisal career I joined the Society of Real Estate Appraisers because of the high quality education and knowledgeable instructors. The Appraisal Institute classes continue that tradition for all who desire to be true professionals.

Picture (L) Douglas Gablinkse, SRA, AI-RRS receives his AI-RRS designation from Fred Eichmann, MAI, SRA.

This is Douglas' second designation in less than one year. Congratulations Doug!

Picture (R) Jennifer Schnell, SRA-AI-RRS receives her AI-RRS designation from Fred Eichmann, MAI, SRA.

Congratulations Jennifer!

RHODE ISLAND BRANCH CHAPTER CORNER Fred C. Eichmann, MAI, SRA, Chair, RI Branch Chapter

2015 OFFICERS & DIRECTORS

President Kenneth L. Dicks, MAI Vice President John P. Mello, SRA Treasurer Karen Friel, MAI Secretary Bud Clarke, MAI Immediate Past President Joseph V. Comperchio, SRA

DIRECTORS

Thomas Andolfo, MAI, SRA

Jonathan Avery, MAI, SRA

Zach Bowyer, MAI

Deborah Carlson

Daniel Clifford, MAI

John Drew

Jeffrey Klein, SRA

William McLaughlin, MAI

Chair of the RI Branch Chapter

Fred Eichmann, MAI, SRA

Newsletter Committee

Lisa Marlin Winter

Abby Petty

Chapter Office

Lianne Andreucci

Executive Director

51 Pleasant Street

PMB 164

Malden, MA 02148

781.397.8922

Website

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WELCOME to the Massachusetts and Rhode Island Chapter!

President’s Message (from page 1)

The Candidates for Designation program is bearing fruit, with a more focused approach to facilitate the achievement of

designation. The interaction with the Advisors has played a role in the newly designated however; the heavy lifting was done

by the Candidates themselves for the final March towards designation.

As a Chapter, the Massachusetts and Rhode Island Chapter of the Appraisal Institute was one of the leading Chapters to

successfully pair Candidates with Members as Advisors.

As an organization, and as a profession, we have our challenges. The demographic tide is shifting. The rate of attrition is

accelerating with this shift.

The latest statistics, as provided by the Appraisal Institute (AI): AI membership represents approximately 26% of the overall

population of appraisers. Of all appraisers holding a professional designation, 50% hold a designation with the AI. Here’s the

good news: For 2014, 917 new designations were awarded. The not so good news: AI membership has gone from 21,707 in

2013 to 20,697. It’s not all bad, as new candidates and affiliates in the US increased by 1,270.

Locally we lend support by offering a full slate of educational offerings to ensure the highest level of competency and

moving forward with our Advisor Program.

What else can we do? Locally, we have created a task force to identify and develop opportunities to advance our profession

within our communities. We are looking to tap into one of our region’s most valuable resources, a resource that attracts

thousands upon thousands to the Massachusetts and Rhode Island area. I hope to share with you some exciting news in the

future on that initiative, but in the meantime, March on towards your designation, and March on towards your goals.

Best of luck and success to you all.

The Chapter is pleased to welcome the following new AI Professionals to our Chapter! The real estate professionals listed below

have chosen to become part of the Appraisal Institute and open the door to world-class education and networking opportunities. As

rapidly as the profession is changing, appraisers today need to prepare for the future. But it's tough to keep up on your own.

Appraisal Institute opens the door for you to share in the collective wisdom and experience of 25,000 individuals who are working

together to build a stronger future for the profession.

John Crimmins, Newport, RI Candidate for Designation

Matthew Leibowitz, Boston, MA

Practicing Affiliate

Carol Garcia, East Wareham, MA Practicing Affiliate

Matthew Merrill, Needham, MA

Practicing Affiliate

Joshua Hansen, Boston, MA Practicing Affiliate

Philip Peters, Needham, MA

Practicing Affiliate

Thomas Kokoliadis ,Boston, MA Practicing Affiliate

Matthew Turk, Providence, RI

Practicing Affiliate

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Matthew Gleason, MAI

Ken Dicks, MAI, 2015 Chapter President presents the MAI certificate to

Matthew Gleason, MAI

Matthew Gleason, MAI, started appraising residential properties in 1992 for Don Griffin Appraisals in Waltham. Within a few years he was managing the residential division of the company and continued doing residential work throughout the nineties. After a brief stint in teaching, Matt started commercial appraising in 2007. Don was an MAI and encouraged Matt to pursue his designation. With guidance from Don and his mentor Ken Dicks he was able to achieve this goal. Matt feels strongly that the designation requirements, classes, comprehensive exam and demonstration of knowledge report have strengthened his skills as an appraiser. He is honored to join the ranks of other professionally designated members of the Appraisal Institute. Matt is also a recepient of a Hewitt Scholarship.

Michael Shand, MAI, GRS

Fred Eichmann, MAI, SRA, 2015 Branch Chapter Chair presents Michael

Shand, MAI, GRS with his AI-GRS certificate

Michael Shand, MAI, AI-GRS has been in the appraisal industry for

just over 29 years, approximately 50% in the fee world and 50% as

a reviewer appraiser. He has been with his current employer,

Citizens Financial Group for the past 7 years. In 1993, he obtained

the MAI designation. He has a Bachelor’s Degree from Michigan

State University and an MBA from Rutgers University.

Jeffrey Klein, SRA

Ken Dicks, MAI, 2015 Chapter President presents the SRA certificate to Jeff

Klein, SRA

After having worked in a corporate setting for about 15 years in

one dead end job after another, Jeff moved to the dark side and

began his career as an appraiser. The road, like most

appraisers, hasn’t been easy but Jeff has enjoyed his time as an

appraiser. One main benefit is the link to the profession and to

organizations such as the AI. Career growth for Jeff has been,

for the most part, in his hands and at a steady pace which

brings a lot of satisfaction about being an appraiser. The time

certainly hasn’t been easy but the development of his skills and

experience is ongoing with each and every assignment.

His latest achievement as an SRA is one significant chapter in

the development of his career and future along with the recent

purchase of the company he began his career with, as a trainee,

he can see the benefits of past hard work and what is needed to

succeed going forward for a bright future.

In 2011, Jeff was selected by the Chapter Board of Directors to

attend AI’s Leadership Development and Advisory Conference.

He served as the Associates Committee Chair in 2011 and 2012

and he is currently a member of the Massachusetts and Rhode

Island Chapter Board of Directors.

SRA certificate.

NEWLY DESIGNATED MEMBER PROFILES The Massachusetts and Rhode Island Chapter Congratulates Our Newly Designated Members

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NEWLY DESIGNATED MEMBER PROFILES The Massachusetts and Rhode Island Chapter Congratulates Our Newly Designated Members

Richard K. Pino, MAI Richard K. Pino, MAI is a partner at Petersen LaChance Regan

Pino, LLC. PLRP, LLC is a Boston-based full service real estate

firm. Mr. Mr. Pino has been involved in real estate for over

thirty years, providing a variety of services to corporate, private

and public clients.

He has been engaged in over 800 valuation assignments,

involving over 27 million square feet of commercial / industrial

space, 6,000 residential units, 15,000 acres of land, 800 takings

and 50 miles of corridor and right of ways. Assignments have

included residential, commercial, industrial, mixed-use, vacant

land and special use properties. Mr. Pino has completed

assignments for the following purposes: property acquisition

and sale, portfolio valuation, bankruptcy, condemnation,

partnership and matrimonial dissolution, financing, estate

planning, ad valorem and estate taxation, appraisal review and

expert opinion.

His association with the Appraisal Institute began in 1984. He

has served on various committees of the Massachusetts

Chapter of the Appraisal Institute including the Newsletter and

Candidates Committees. He earned the MAI designation in

2015. He is also a member of the IRWA where he serves on

various committees.

Rick was presented with his MAI certificate at the 1st Chapter

meeting of 2015 by 2015 Chapter President Ken Dicks, MAI.

Heather Ross, SRA

John Mello, SRA, 2015 Chapter Vice President presents SRA certificate

to Heather Ross, SRA at the May Chapter Meeting

Heather Ross, owner/partner in Cape Cod & Islands Appraisal Group

LLP and Plymouth County Appraisal Group,is a Certified General Real

Estate Appraiser. Heather entered the appraisal profession in the

mid-1980s. She trained with various mentors over the years including

Robert Armstrong, MAI and Attorney Paul O’Leary. Her appraisal

experience is diverse ranging from unbuildable wetland, riparian

rights and conservation land to all types of residential property, large

multi-parcel estates and commercial and industrial properties. She

has worked for local, state and federal government agencies, lawyers,

private non–profits, institutional lenders and numerous private

clients. In addition, she is an experienced expert witness.

Heather is now a candidate for the MAI.

She has a large close knit family with whom she spends her “down-

time” and enjoys the many attributes of living on Cape Cod. Heather

was joined by her son Jacob Ross, also a candidate at her certiicate

presentation.

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APPRAISAL INSTITUTE NEWS – REGION IV Region IV Meeting Held its Quarter 1 meeting on February 2

The Massachusetts and Rhode Island Chapter is part of the Appraisal Institute’s Region IV which includes 10 chapters stretching from

Ontario Canada to Maine to New York. The regional governance structure allows Chapter representatives the opportunity to participate

with national AI representatives on a regular basis. The Region’s Chair and Vice Chair sit on the AI national Board of Directors.

The 2015 first quarter regional meeting was held via conference call on February 2.

Recent Board Actions - Adopted 2015 Budget; Amendments to Regulation 2 eliminating Residential Modular Demo Option; Adapted

Preambles to the AI Standards and CPe and adopted revisions to the SVP and CPE; Amended policy to allow eligible Practicing Affiliates

to receive credit for designation education courses under certain circumstances; revised runoff election procedures for Board-elected

position; conferred an honorary membership and directed 45-Day Notice to eliminate minimum length of candidacy, remove CE

requirements for Candidates, add Comp Exam and advanced education requirements for SRA and revised language in Regulations 1, 2

and 3.

Professional Practice Update

Appraisal Standards Board: submitted comment letter on Third Exposure Draft and provided oral comments at ASB Meeting

Appraisal Practices Board: Reviewed comment letter on Third Exposure Draft of Valuation of Green & High Performance

Property.

ICVC - Maintained calls and meeting to establish valuation certifications and organizational policies

Admissions and Candidate for Designation Program - Advisor Recruitment, AI CE credit for designated members enrolled as Advisors,

free on-line orientation. Chapters can assist by encouraging designated members to become advisors and recommending advisors for

Candidates who do not have one. Annual Minimum Progress communication has been sent to Candidates for Designation including

annual minimum progress, extensions, and degree and experience requirements, encouragement for forward progress and

communicated timelines to designation. CE Cycle Outreach program is a year-long communications plan, letters sent to Designated

Members, CE extension process and personal calls to designated members

Valuation Professions Update 12/31/2014

Total Members/Candidates/Affiliates: 20,697 (-1,010)

US Members/Candidates/Affiliates: 20,305 ( - 957)

International Members/Candidates/Affiliates: 392 (- 53)

New Designations: 935 (US 917/International 18)

New Candidates/Affiliates: 1,297 (US 1,270/International 27)

Education Update - General Demonstration Report Alternative (MAI) Capstone Program, 2015 offering are selling out. International

Education being offered at Kuwait University and in Saudi Arabia. New Programs: 2-day Income Cap A and Income Cap B

Financial Status (Oct 31, 2014)

YTD surplus of $916,000 (better than budget)

YTD revenues of $15.5 million (6.8% lower than budget)

YTD expenses of $15.6 million (8.3% better than budget)

Dues and fees increased 2.1%, with 2014 Designated member dues increase of 1.7% and elimination of introductory Candidate

fee discount

2014 renewals are anticipated to be 5% below budget

Reserves at 6.2 months, unrestricted reserves at 5.5 months

Submitted by Kenneth L. Dicks, MAI

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Massachusetts and Rhode Island Chapter is Sponsoring Three Participants The Leadership Development & Advisory Council strives to foster creative thought from talented individuals involved in the real estate appraisal profession while developing the future leaders of the Appraisal Institute. LDAC also establishes an “appraiser-presence” in Congress and demonstrates that the Appraisal Institute is made up of professionals who recognize the importance of being actively involved in the political process In 2015, the Chapter sponsored three LDAC participants. Jordan Hevenor, MAI and Brad Hevenor, Candidate for Designation attended the event for the first time and Maureen Mellen, Candidate for Designation, attended this year’s event as a second year participant. Participation in LDAC is a spring board for future leadership within the Appraisal Institute. We thank Jordan, Brad and Maureen for their time and participation in this conference and look forward to hearing the results of this year’s conference.

Pursuant to the procedures specified in Article X, Nominations and Elections of the Massachusetts and Rhode Island Chapter of the Appraisal Institute's bylaws, the Nominating Committee met via teleconference on April 7, 2015, and submits the following slate for Officers, Directors, and Regional Representatives for 2016.

President: John P. Mello, SRA

Vice President: Karen Friel, MAI

Treasurer: Bud Clarke, MAI

Secretary: Gregory T. Curtis, MAI

Directors for a 3-year term: Deborah Carlson Randall Harwood, MAI J. Michael Tarello, MAI

Regional Representatives - 2 yrs: Christopher Bowler, MAI, SRA and William McGovern, SRA

Regional Representative Alternates

Bud Clarke, MAI , Deborah Carlson, Karen Friel, MAI, Jeffrey Klein, SRA , Daniel Jalbert, MAI, William LaChance, MAI, SRA, Theresa McNutt, SRA, William Pastuzek, MAI, SRA

The foregoing slate was voted on Wednesday, May 20, 2015 at its regular meeting held at the Embassy Suites Hotel in Marlborough, MA. Congratulations to our 2016 Officers, Directors, and Regional Reps. Are you interested in getting more involved in the Chapter? Visit AI Volunteer Opportunities and complete the Leadership Resource Registry.

2015 REPORT OF THE NOMINATING COMMITTEE

Joseph V. Comperchio, SRA, Nominating Committee Chair

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SOCIAL COMMITTEE TO HOST TWO EVENTS IN 2015 Joseph Comperchio, SRA, Melanie Kosich, MAI, Edward Warzybok, SRA, AI-RRS, Social Committee

Summer Social/Boston Harbor Sunset Cruise - Back by popular demand! Last year's Boston Harbor Sunset Cruise got rave reviews so we are doing it again. SAVE THE DATE - Thursday, August 13th @ 6:00 pm. This year the cruise will depart from Rowes' Wharf. Look for more details via email in June.

Hewitt/McKinney/Kinsella Golf Tournament - The Massachusetts and Rhode Island Chapter's Social Committee is pleased to announce we are committed to the golf outing again this year. The event, cohosted with the MBREA, will be held September 21, 2015 at The Blackstone National Golf Club in Sutton, MA. We will tee off early afternoon and use a basic scramble format. Golf will be followed by a steak dinner. Our plan this year is to award cash prizes for the top three places and then have a raffle for various prizes afterward.

We are trying to increase participation this year and are encouraging appraisers to invite guests. The entry fee will be $125 per person for AI & MBREA professionals and guests will be charged $115. You are welcome to make your own foursome or we can put you with a group if needed. Make your reservations early and invite some clients, family members, or friends for a fun day in the sun! This event is always a great day of fun and a terrific networking opportunity. Do not feel the need to round out a foursome we will place you in a group, it’s part of the networking fun! Blackstone National is a Reese Jones designed course with many beautiful vistas. The weather and scenery at the end of September should be great, so sign up early.

Consider a sponsorship of the event. Net proceeds of the event benefit the Hewitt Fund and the Kinsella Scholarship Fund. Sponsorships matter. Last year the MA-RI Chapter awarded 7 scholarships which helped all recipients in their efforts to attain designation. For sponsorship questions please contact Joe Comperchio @ 781-249-6249.

MEMBER BENEFIT SPOTLIGHT

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Data Express Non-confidential Residential Property Data

Use this data research tool to access the National Collateral Database for information on a subject property’s physical

characteristics, details about comparable properties, and to view five years of the property’s transaction history. Users

can also download property and plat maps into a Web-based report and save the data as an Adobe PDF or an AI Ready™

ENV file.

Appraisal Institute Individuals receive a 10% discount on subscription plans for Data Express, the search engine for

the National Collateral Database.

Learn more about this AI Benefit Here.

HEWITT AND HOPE SCHOLARSHIP COMMITTEES

Kenneth L. Dicks, MAI Chapter President

The Chapter’s two scholarship committees continue to offer scholarships in 2015. Scholarships have been awarded by

both committees to candidates who have attended programs to assist them in completing the Demonstration of

Knowledge Requirement.

The Hewitt Scholarship Committee recently awarded a scholarship to William J. Lanciloti, SRA who completed the

45-Hour Residential Demonstration Appraisal Report Option. Bill completed the requirements for designation and received

the SRA in March.

The Hope Scholarship Committee continues to offer scholarships to RI Branch candidates to assist them in earning

an AI Designation.

Learn how the Chapter’s Scholarship Committees can help you in your path to designation. Information can be found on

the Chapter website.

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ECONOMIC OUTLOOK AND REAL ESTATE TRENDS 2015 John P. Mello, SRA, Programs Committee Chair

Postponed from January 27, 2015 due to snow, the Massachusetts

and Rhode Island Chapter’s rescheduled first quarter meeting was held on

March 10th. Approximately 75 attendees gathered at the Federal Reserve Building

in Boston for a luncheon, chapter business meeting and education program.

Chapter President, Ken Dicks, MAI, opened the Chapter business session

with a Nominating Committee Appointment. That was followed by the following

designation certificate presentations: Jeff Klein, SRA, Richard Pino, MAI and

Matt Gleason, MAI. President Dicks congratulated the new designees on

behalf of the Chapter for their professional accomplishments and advancement.

Approval of the Chapter’s September, 2014 and December, 2014 meetings’

minutes followed. The Chapter’s business session was closed and the agenda

moved to the education program which was approved for continuing education

credit by the Appraisal Institute, and the Massachusetts and Rhode Island state

boards of registration.

Chapter Vice President, John Mello, SRA, introduced the education program and its panel of four distinguished real estate

experts. The program opened with the presentation made by Timothy Warren, CEO of The Warren Group and Publisher of its flagship

publication, Banker & Tradesman. Mr. Warren provided a fascinating retrospective and prospective real estate markets overview

entitled, “Economic Outlook and Real Estate Market Trends in 2015.”

Brian Cordes, Vice President with Cohen & Steers’ national accounts team traveled from New York City on behalf of Merrill-

Lynch to provide an in-depth presentation on the role of Real Estate Investment Trusts (REIT’s) entitled, “Real Estate Securities – An

Allocation, Not a Trade.” Mr. Cordes’ participation was arranged by the Chapter’s Merrill-Lynch investment advisor, Mr. Chad Brown.

The education program next looked at national commercial real estate economic trends. Paul Briggs, Vice President, Head of

U.S. Research at Bentall Kennedy of Boston gave a presentation entitled, “U.S. Commercial Real Estate Outlook.” In addition to national

economic conditions, his presentation also touched on trends in multi-family, office, industrial, retail and capital market segments.

Timothy Lyne, Executive Vice President/Partner at CBRE-Downtown Brokerage completed the education program with a

presentation entitled, “Urban Market Overviews – Boston and Cambridge Markets.” After looking at recent trends, rents and

transactions in the two urban market sectors, Mr. Lyne offered insights into prospects for the two cities’ markets.

At the close of the education program, Vice President Mello expressed the Chapter’s appreciation to the panel members for

their participation and contributions to the Chapter’s education efforts and presented each with an honorarium donation to the Jimmy

Fund. Mr. Mello also thanked Melanie Kosich, MAI, Karen Hanlon, MAI and Lianne Andreucci, Executive Director, for their contributions

which were essential to developing the education program.

From L-to-R: Tim Lyne, Brian Cordes, Paul Briggs, Tim

Warren and John P. Mello, SRA

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Featured AI Video

What Should Appraisers Know About Right of Way Valuation?

The Appraisal Institute invited Rocky Shiplett, MAI, and

Michael McCall, MAI, to discuss the opportunities for appraisers in right-of-way valuation work, the challenges with right-of-way appraisal assignments, and how appraisers can

establish relationships with potential right-of-way clients.

Watch the video here:

https://www.youtube.com/watch?v=8s9jFfizzAk

2015 CHAPTER SPONSORS Thank You to the following companies who are participating in

our Chapter Sponsorship program.

Their support of the Massachusetts and Rhode Island Chapter of the Appraisal Institute is recognized and appreciated.

We are still taking accepting sponsorships for 2015.

Contact Lianne at the Chapter office for more information at 781.397.8922.

Learn about the Sponsorship Program here.

Endorse Our Facebook Page and Be Entered to Win $25 Off A Chapter

Sponsored Event

Like the Massachusetts and Rhode Island Chapter of the Appraisal Institute’s Facebook page today and be eligible to win a $25

voucher that can be used for a 2015 Massachusetts and Rhode Island Chapter sponsored event!

Entering is easy! To enter, just visit our page at

https://www.facebook.com/AppraisalInstitute.MassandRIChapter and endorse our page by liking it. Anyone who is listed as liking

our page on the drawing dates

Don't have a Facebook page? You can still view our page, just click here.

Massachusetts and Rhode Island Chapter Newsletter

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Find An Appraiser Now Has a Map It Feature Gain exposure and obtain new clients - Consumers turn to the Appraisal Institute's Find An Appraiser online directory to search for appraisers to handle their assignments. And your Appraisal Institute colleagues also use "Find an Appraiser" for networking and referrals.

Feature Highlight: Map It: Once the search results are returned, your location will be mapped.

Designated members: Log into your My AI account today to update your account. Once you have logged in, click on "My AI Profile" on the left-hand side. To view a sample profile, click here.

Candidates and Practicing Affiliates: Have you checked your profile lately? Log in today and verify your information. Plus, add up to 20 city listings to your account in "Manage My Account".

Appraisal Institute Benefits Disclaimer: Appraisal Institute Benefits are intended to provide exclusive and/or special offers and discounts on products and services to

Appraisal Institute individuals. Many of the products and services offered as benefits are from third party companies or organizations. The Appraisal Institute does

not make any warranties, representations, or undertakings about any of the products or services offered (including without limitation, any as to the quality,

accuracy, completeness or fitness for any particular purpose), about the third party company or organization offering the product or service, or about the content

of any third party website. The Appraisal Institute does not endorse or approve the content of any third party website. The Appraisal Institute is not responsible or

liable in any way for any loss, damage or suffering an Appraisal Institute individual may incur or experience as a result of his/her purchase, inquiry for, application

of, commitment to, or agreement to commit to any of the products or services offered as an Appraisal Institute Benefit. The Appraisal Institute reserves the right to

discontinue offering any product or service as an Appraisal Institute Benefit at any time.

AQB Adopts New State Background Check Requirements

You just arrived at a property and saw the panels on the roof shown in the picture

above. Is the picture depicting solar thermal or solar photovoltaic? What size is the

system? How much does it produce and does it heat water or generate electricity? How

old are the panels? So, what difference does it make?

Seems the last question is too often the response to the previous questions. I am sure

there are people that do care and do feel it makes a difference. (Like the property

owner and their attorney) The first time you encounter a property with solar panels you

may be at a loss to know what questions do make a difference.

When you called your client to alert them that the property has solar panels and you do not have competency to value

them, they responded with “just value the property and ignore the solar panels”. Could you do that? If you follow their

suggestion and ignore the solar system, what USPAP rules might apply?

One commercial student raised a question about a lender that suggested he ignore the extensive solar system and its value

on a commercial building. The student admitted he followed the lenders direction. After the first day of class, he realized

how he should have handled the request. This student’s story reminds us that commercial and residential clients alike may

make requests of us that require knowledge that we may not have at this point.

This appraiser dilemma is one that is all too familiar. Countless emails flow into my box with stories that divulge appraiser

solar dilemmas. Some emails have the full appraisal attached to illustrate their points.

Our clients often do not know the property has solar and we could find ourselves in a difficult situation when we are

surprised with a solar system that we are not prepared to value. The competency issue comes to mind for residential

appraisers that work for lenders selling on the secondary market. Review the competency requirements in the table below.

Competency Required USPAP Fannie Mae Freddie Mac FHA VA

Before completing assignment

X X

Before accepting Assignment

X X X A large number of solar installations are occurring because of the growth in third party owned systems. How is an appraiser

to handle the value of a property with a leased system?

Did you know in 2013 Massachusetts ranked number 5 in the US for installed solar? Solar may not be the norm in your

market area but with the government mandates to install more renewable energy in every state, you may see solar coming

near you soon. Do you know where to find resources that will give you support for the electricity escalation rates in your

market area or the number of installs in your state? Register for the Residential and Commercial Valuation of Solar PV and

you will be able to answer every question in this article.

Has it been a long time since you’ve taken a course that actually taught you things you’d never heard before? The

Residential and Commercial Valuation of Solar PV course is coming to your chapter. You’ll find it is a hands-on course. You

will walk away with a large number of resources and a couple of valuation tools. (Discounted Cash Flow Models) Bring your

computer equipped with Excel 2007 or better to work the case studies that mirror real world dilemmas.

Government or company issued laptops often have security firewalls that block access to websites; therefore, you may not

be able to access the tool used in the course. Prior to attending the course, make sure you can access and download the

pre-class downloads shown on the Appraisal Institute Website.

I look forward to seeing a sold out class!

Click here to learn more about the class or to register now!

NEWS FROM THE NATIONAL OFFICE

The Appraiser Qualifications Board on March 20 adopted significant changes to the background check requirements of the Real

Property Appraiser Qualification Criteria. The new requirements are modifications to original background check requirements

adopted by the AQB in December 2011, which never took effect. The new requirements will take effect Jan. 1, 2017.

The new requirements state, “All applicants for a real property appraiser credential shall possess a background that would not call

into question public trust.” Applicants will be required to provide state regulatory agencies with all information and documents

necessary for the jurisdiction to determine an applicant’s fitness for licensure or certification. Applicants who have been convicted of

or pleaded guilty or nolo contendere to a crime that would call into question the applicant’s fitness for licensure with the five-year

period immediately preceding the date of the application for licensing automatically would be disqualified from obtaining an

appraiser credential.

Importantly, these new requirements provide states with much more flexibility in how they determine whether or not an applicant

has a background that would call into question the public trust. The original requirements adopted in 2011 required all candidates for

a real property appraiser credential to undergo “background screening” and to provide fingerprints to the state appraiser licensing

and certification agency for submission to the Federal Bureau of Investigation (or other government agency) to utilize in connection

with a state and national background check. Under the new requirements, states are not required to perform formal background

checks and can instead satisfy the minimum AQB criteria by asking appraisers if they have any events in their past that may disqualify

them from obtaining an appraiser credential.

Unfortunately, the impact of these new requirements on the state background checks that appraisers are required to undergo likely

will be limited because most states (42) enacted their background check requirements prior to the AQB’s requirements. Many of

these state laws contain provisions that were consistent with the 2011 criteria and require appraisers to submit fingerprints and to

undergo formal background checks by a state or a federal law enforcement agency.

Read the new background check requirements as they were proposed in the Fifth Exposure Draft of a Proposed Revision to the 2015

Real Property Appraiser Qualification Criteria and Guide Note 9 (GN-9).

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Responding to Requests by Edward V. Bowler, MAI, SRA, Education Chairman - Courses

The Chapter continues to employ an “all in” approach to education with most all of the courses required for licensing and designation

offered (or to soon be offered) locally. Most courses are offered at the accessible, comfortable Hyatt House hotel in Burlington just off

Route 128. In an effort to control cost and improve student comfort, many courses and seminars were moved to this modern facility in

January. At some facilities, activities in adjoining rooms conflicts with our courses, particularly on test days when nearby noise can

distract students. At Hyatt, we have a quiet room with no “abutters”. Take a course or seminar and check it out.

The Chapter attempts to respond quickly to the requests of our members. When two students called asking if we had any plans to offer

the Review Theory General course (which was last offered in mid 2014), interest was surveyed via email. When several members

responded in the affirmative, the course was scheduled for August 24 – 28 with popular instructor Vince Dowling teaching. When

examination of membership information revealed that many SRA candidates for designation needed the Residential Market Analysis

and Highest & Best Use course, it was added to the slate and will run in October on 14 – 15 in Braintree. Recently, we’ve been asked

about offering the advanced level Quantitative Analysis course locally. We’re thinking about it, checking it out.

Lastly, don’t forget we have only two more offerings of USPAP-7, 2014-2015 version. On June 25h, the final offering in Rhode Island will

take place at the Sheraton Providence. The final Massachusetts offering will run in September 29th but it’s not too early to sign up.

Check out our lengthy list of course and seminar offerings on the Chapter web page or on the back page of this newsletter.

Seminars 2015 by John R. Drew, Education Committee - Seminars

We expect 2015 to be another successful year for Seminars at the MA-RI Chapter of the Appraisal Institute. The Chapter has come out

strong on emerging trends in the industry, as well as topical programs for our members. To date we have offered three of the four

seminars required for the Valuation of Sustainable Buildings Professional Development Program, with the two-day Case Studies in in

Appraising Green Commercial Buildings scheduled for June 10-11. The Chapter has offered seminars for successful completion of both

the Residential and Commercial tracts of the program, which will qualify Designated Members, Candidates, Practicing Affiliates,

(cont’d on page 15)

2015 EDUCATION COMMITTEE REPORT Edward V. Bowler, MAI, SRA, and John Drew, Education Co-Chairs

We are sorry to inform our membership of the recent passing of three valuable colleagues of the Appraisal Institute.

Francis A. “Frank” Zabbo, SRA, 64, of Tyngsboro, MA died courageously fighting cancer on Tuesday, January 13, 2015 at his home. Frank owned and operated A-Zabbo Real Estate of Tyngsboro.

Sheppard M. Kolb, 58, of Newport, passed away on Monday, March 24. Mr. Kolb was a practicing affiliate in the Massachusetts and Rhode Island Chapter and the owner of Kolb Appraisals in Portsmouth, RI.

William E. Coyle, Jr, MAI, SRA of Lincoln, Rhode Island passed away peacefully on April 15, 2015. As one of his many accomplishments, Bill was past President of the International Society of Real Estate Appraisers. He also achieved the prestigious MAI Designation of the Appraisal Institute. During his tenure he formed the Rhode Island Chapter of the Society of Real Estate Appraisers and served as their first President.

In accordance with the Chapter’s Condolence Policy, a donation to the Hewitt Scholarship Fund has been made their names.

Condolences are extended to the families and former colleagues of each of these AI Professionals.

IN MEMORIAM

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QUALITY MATTERS Kenneth L. Dicks, MAI

Two of the most quoted people in history offer the following:

“Be a yardstick of quality. Some people aren’t used to an environment where excellence is expected” – Steve Jobs.

“Quality is not an act, it is a habit” - Aristotle.

When providing service, those who succeed have common strengths: Quality Control and Quality Assurance.

Often viewed interchangeably, the terms, according to the American Society for Quality, have different meanings:

Control: An evaluation to indicate needed corrective responses; the act of guiding a process in which variability is attributable to

a constant system of chance causes.

Quality Control: The observation techniques and activities used to fulfill requirements for quality.

Assurance: The act of giving confidence, the state of being certain or the act of making certain.

Quality Assurance: The planned and systematic activities implemented in a quality system so that quality requirements for a

product or service will be fulfilled.

Appraisers interpret data – integrity of the data, how it is analyzed, reported and applied are key to producing a credible

appraisal.

Over the past 30 years, various quality control and quality assurance initiatives have taken place in the appraisal environment

from a lender’s perspective - ranging from the R-41 series by the FHLBB and Currency, to the monumental Financial Institutions

Reform and Recovery Act of 1990 (FIRREA) that brought forth licensing of the real estate appraisal professional, to the more

recent Dodd-Frank Wall Street Reform and Consumer Protection Act.

FIRREA brought forth sweeping changes on how banking managed the appraisal process and oversight of appraisal products

utilized when an institution entered into a transaction - certain exemptions were granted for residential transactions, and some

may argue, the focus was taken off of residential appraisal.

As a result of the Great Recession of 2008 we are seeing industry changes on how the residential appraisal is considered in light

of transactions.

An initiative by Fannie Mae to ensure both Quality Control and Quality Assurance has been released under the name Collateral

Underwriter, and is being made available to all lenders authorized to sell to Fannie Mae. Fannie Mae advises their lenders and all

appraisers the following:

Appraisers who make a good faith effort to provide accurate data, select appropriate comparables, make market-based

adjustments, and give weight to the most relevant comparables should feel no significant negative impact as a result of the use of

CU. CU can identify issues with appraisal reports, and it can also validate the many appraisal reports that are very well-supported.

The net result should be that lenders, AMCs, and appraisers should not expect any significant increase in correction requests or

need for rework.

The Appraisal Institute recently offered a Webinar entitled Impact of Collateral Underwriter for Appraisers and Lenders. Visit the

AI website at to learn more about webinars at: http://www.appraisalinstitute.org/store/AI-Webinars/

Appraisal Institute members are recognized for their level of expertise and education, over and above the minimum

requirements for licensing. Through education and standards, the Appraisal Institute program fosters an environment where

excellence is expected, and Members develop habits of quality recognized in the marketplace.

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2015 Education Schedule

Qualifying Education (QE) Location Start Date of

Offering Instructor(s)

RE Finance and Stats - Woburn Hyatt House Burlington 6/4/2015 Dowling

Basis Appraisal Procedures Hyatt House Burlington 7/8/2015 Bowler/Comperchio

Gen. Mkt Analysis Crowne Plaza Woburn 7/15/2015 Bowler

General Appraiser Sales Comparison Hyatt House Burlington 9/24/2015 Bowler

General Appraiser Site Valuation & Cost Approach Hyatt House Burlington 10/21/2015 Bowler

Residential Mkt Analysis and HBU Hyatt Place Braintree 10/14/2015 Bowler/Elliott

General Appraiser Report Writing Hyatt House Waltham 11/4/2015 Bowler

USPAP

7 Hour USPAP - RI(2014/2015) Warwick 6/25/2015 Accetta

7 Hour USPAP - (2014/2015) Hyatt House Woburn 9/29/2015 Avery

7 Hour USPAP - Woburn (NEW 2016 -2017) Crowne Plaza Woburn 12/8/2015 Elliott

7 Hour USPAP - RI (NEW 2016 -2017) Warwick 12/15/2015 Accetta

7 Hour USPAP - Western Mass TBA TBA TBA

Advanced Education (AE)

Advanced Income Capitalization TBA 9/21 - 9/25 Slucter

Review Theory General Hyatt House Woburn 8/24 - 8/28 Dowling

Continuing Education (CE)

Uniform Appraisal Standards for Federal Land Acquisitions (14 hrs) Dedham 6/23/2015 Dowling

Business Ethics Braintree 9/17/2015 Avery

Two-day Advanced Income Capitalization - A (14 hours) TBA Fall TBA

Contract or Effective Rent: Finding the Real Rent TBA Fall Bowler

Professional Development

Case Studies in Appraising Green Commercial Buildings Burlington June 10 and 11 Chappell

2015 Education Committee Report (from page 13)

and Affiliates who have successfully completed (attended and passed the examinations) one or both of the tracts for placement on

the AI’s Valuation of Sustainable Buildings Registry. In addition to our Green programs, we have a strong schedule of new/updated

seminars with a line-up of experienced/popular instructors, including Unraveling the Mystery of Fannie Mae Appraisal Guidelines

(Steven G Elliott, SRA), Supervisory Appraiser/Trainee Appraiser Course (Jonathan H. Avery, MAI, SRA), and Real Estate Finance

Statistics and Valuation Modeling (Vincent M. Dowling, MAI, SRA).

As always, we will continue to add programs over the course of the year that our members express interest in, such as Contract or

Effective Rent: Finding the Real Rent, Advanced Income Capitalization A, and Advanced Income Capitalization B. The Contract Rent

seminar will provide members the tools to enhance their valuation analysis by understanding the complexities of calculating effective

rent, while the Advanced Income programs will review topics covered in the Advanced Income Capitalization courses, but with a

greater emphasis on the theoretical aspects of the material.

Program suggestions and interests are always welcome, as we strive to put together a schedule of compelling and topical educational

offerings throughout the year.