Columbia Society Newsletter Jan 2013

Columbia Society
News & Views
Volume 7
We b si t e : www. C ol u m b i a Soc i e t y . or g
INSIDE THIS ISSUE
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2
3
4
5
Alexan Replaces Crime
Haven in West Hempstead
From the Desk of…
In the News
Residential Appraising in a
Declining Market
Upcoming Changes to Real
Property Appraiser
Qualifications
In Memory of Walter D.
Messina Jr.
Columbia Society
News and Views
A Publication of
Columbia Society of Real Estate
Appraisers Inc.
Linda J. Fusco, Editor
Send Questions, Comments,
Articles, and Letters to
[email protected]
Jan 2013
Issue 1
Em a i l : N e ws@C ol u m b i a Soc i e t y . or g
Alexan Replaces Crime Haven in
West Hempstead
By Elizabeth Dupuy, CSA-R
There once
stood a place called
Courtesy Hotel, a
haven for thugs,
drugs and hookers.
As is the way with
housing, it was
eventually
torn
down and replaced
with a development
called the Alexan.
This
is
no
longer an eye sore
or a place of crime.
It is now homes – a place where families can live and bring up their
children, and a place that the West Hempstead community can be proud
of.
The Alexan is located on 1.72 acres and included 150 residential units
and 255 parking spaces. Monthly rents range from $1,900 to $2,700, and
units range from 1-3 bedrooms. Amenities include spacious walk-in
closets, full-size washer/dryer units, wall-to-wall carpeting, mini and
vertical blinds, and designer kitchens. The community features an on-site
management and leasing office, clubroom/lounge, business center, fitness
center with locker rooms, and landscaped courtyards and swimming pool.
Tenants are subject to credit check, criminal background check, and
occupancy restrictions of 2 people per # of bedrooms rented. No
subletting is allowed. The buildings were built to meet U.S. Green Building
Council guidelines under the program known as Leadership in Energy and
Environmental Design (LEED).
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Columbia Society News and Views
From the Desk of…William H. Green III
President 2013
A Year to Strengthen and Enhance Our Objectives
We all survived the Mayan calendar end-of-the-world crisis which was
to occur on December 21, 2012; and now we’re in the Cosmic Dawn - a new
beginning as some would say. So what’s in store for us for 2013?
From my point of view, 2013 will be an exciting year for the Columbia
Society, as we move together to strengthen and enhance our objectives by
adding several new affiliations and programs to our repertoire.
Just to remind everyone why we exist (we were formed
incorporated in 1951), the Columbia Society’s three main objectives are: 1) to unite in a
organization those interested in the advancement of the art of real estate appraising, 2) to
maintain ethical standards for the guidance of our members in their relation to one another
public and 3) to promote the educational and professional welfare of our members.
in 1945 and
co-operative
develop and
and with the
So first and foremost on the agenda this year, your Board of Governors has voted to submit an
application to become an Appraisal Sponsor of the Appraisal Foundation. We think this affiliation will result
in many benefits to our group, including:
•
•
•
•
•
•
•
•
National Recognition as one of a select few (10 to be exact) Appraisal Sponsors of the Foundation
Enhanced value for the Columbia Society’s designations
The right to nominate an individual to become a Trustee on the Board of Trustees of the
Foundation.
National free advertising, as we will be listed as a sponsor in all Foundation materials
Ability to attract additional members at a national level
Access to educational materials at discounted prices through a partnership program with other
Sponsors
Unlimited reproduction rights for the USPAP book, resulting in significant savings to the Society
The ability to work closely with the Foundation to proactively represent the interests of our
appraisers at a local and national level
Who is the Appraisal Foundation?
The Foundation was founded out of a savings and loan debacle that occurred in the 1980s,
whereby faulty appraisals and shaky lending practices led to a mass deterioration of the housing market in
general. Recognizing that appraisals based upon established recognized standards were a big part of the
solution, in 1986 nine leading professional appraisal organizations in the United States and Canada formed
the Ad Hoc Committee on the Uniform Standards of Professional Appraisal Practice. The eight United
States committee members of the group adopted a generally accepted set of standards and in 1987
formed The Appraisal Foundation for the purpose of implementing the Uniform Standards of Professional
Appraisal Practice.
Continued on Page 3 – From the Desk of…
Columbia Society News and Views
In the News
Joseph Joins Board
Matthew Joseph was elected for a one-year term
(2013) as Governor of the Columbia Society at the
November 19, 2011 general membership meeting at
Koenig’s Restaurant in Floral Park, N.Y.
Matthew currently works as the Assessor-in-Charge
of Queens County, City of New York. He is a member of
the Institute of Assessing Officers. (IAO) and holds a CSAG designation.
Also elected as Governors that evening were Richard M. Berntsen,
Jeffrey C. Kjellgren, Maurice N. Perkins, Frank X. Romito and Steven L. Corte.
Neglia Returns as V.P.
Domenick Neglia, long-time member and Staten Island Coordinator, will
be returning as Vice President of the
Board of Governors in 2013. Dom is the
owner of Neglia Appraisals Inc., based in
Brooklyn, New York.
Dom served as President of the
Society in 2000. He holds a CSA-G
designation and is a Columbia Society
instructor.
Dom joins Bill Green, President; Janine Campeau-Ewald, Secretary;
and Elizabeth Dupuy, Treasurer, as 2013 Officers of the Society.
Page 3
2013
Board of Governors
President
William H. Green III
•
Vice President
Domenick Neglia
•
Secretary
Janine Campeau-Ewald
•
Treasurer
Elizabeth Dupuy
•
Governors
Richard M. Berntsen
Steven L. Corte
Stephen S. Deutsch
Thomas Donato
Mathew Joseph
Jeffrey C. Kjellgren
Maurice N. Perkins
Frank X. Romito
Ex-Officio Members
Director of Education
Richard C. Berntsen
•
Scholarships Chairman
Richard G. Hoesch
•
Past Presidents
Stephanie Cilla 2012
From the Desk of…Continued from Page 2
Green Appraiser Courses Will Be Among New Lineup
Also in 2013 we will continue to expand our fine educational curriculum
with courses designed specifically for county and town Assessors, qualifying
classes geared for select bank personnel and new and different continuing
education seminars. We will be adding a series of studies in Green Appraising,
which will result in a Green Appraiser designation for members taking the
course and passing the exam.
Increasing Membership a Top Priority
Last but not least, we will be working hard to increase our membership
rolls in 2013 by speaking with and encouraging local bankers, brokers,
attorneys and of course appraisers to join our fine organization.
We are
looking to you, our current members, to help us with this goal, by asking that
each of you bring in just one new member in 2013. This effort is good for the
Society at large and certainly beneficial to new and old members alike. I am
looking forward to a productive and exciting year working with all of you.
Supporting Staff
Staten Island Coordinator
Domenick Neglia
•
Executive Secretary
Linda J. Fusco
•
Class Coordinator
Robert R. Coltun
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Columbia Society News and Views
Residential Appraising in a Declining
Market
A Market versus a Neighborhood
By Stan Timari, CSA-R, AQB Certified USPAP
Instructor
Earlier this year, the Appraisal
Practices Board (APB) of the Appraisal
Foundation issued a valuation advisory with
regard to residential appraising in a declining
market (Advisory #3).
What caught my interest was a section titled “Defining a Market
vs. a Neighborhood.” The reason my interest was piqued is because
many appraisers have a difficult time differentiating
between the two, which becomes evident with regard to market
conditions, where Page 1 has a box checked that is different from the
statistics provided on the 1004MC.
Both Page 1 of the 1004 and the 1004MC request neighborhood trends.
However, this has the potential to mislead the appraiser in trying to
determine market conditions affecting the subject. First, a neighborhood
can contain many different uses, especially in an urban market, but also
in most suburban markets, as both would include supporting commercial
uses at a minimum. Trending statistics provided by Fannie Mae, the
Appraisal Institute and other national on‐line sources may not accurately
depict market trends solely for residential real estate due to the sample’s
inclusion of non‐residential uses.
Moreover, the subject’s market, defined as areas that compete with the
subject and are recognized by informed buyers as having viable housing
substitutes for the subject, could include statistical sampling outside the
subject’s neighborhood that would actually impact residential price trends.
The APB provides a good example in its advisory: there could be several
golf communities in a larger geographical area where dwellings enjoy a
golf course view amenity. While a single community would be correctly
labeled a neighborhood, one or more of the other golf communities could
be considered the subject’s market as defined by the view amenity.
Defining the subject’s market area is necessary before you can
draw conclusions regarding market conditions. A subdivision may be an
exception that a neighborhood’s statistics can allow market condition
analysis, but there could be competing subdivisions as well. The real
lesson to be learned is the quality and quantity or the statistics you
considered to analyze the market to conclude a market trend that you
relied upon in your appraisal. The ASP concludes this section stating:
“use of minimal unverified data with statistical analysis should be
avoided.”
Calendar of Events
Monday, Jan 28, 2013
3-Hour C.E. Seminar
Koenig’s Restaurant
Floral Park, NY
3:30 – 6:30 p.m.
Monday, Feb 18, 2013
Board of Governors Meeting
Davenport Press Restaurant
Mineola, NY
6:00 – 8:00 p.m.
Monday, Mar 18, 2013
3-Hour C.E. Seminar
Koenig’s Restaurant
Floral Park, NY
3:30 – 6:30 p.m.
Monday, Apr 15, 2013
Board of Governors Meeting
Davenport Press Restaurant
Mineola, NY
6:00 – 8:00 p.m.
Friday, May 17, 2013
7-Hour USPAP Seminar
Koenig’s Restaurant
Floral Park, NY
9:00 a.m. – 5:00 p.m.
Monday, May 20, 2013
3-Hour C.E. Seminar
Koenig’s Restaurant
Floral Park, NY
3:30 – 6:30 p.m.
Dates and Locations
Subject to Change
Note: The articles
published in this
newsletter are the
opinions of the
authors and not
necessarily those of
the Society or its staff.
Columbia Society News and Views
Page 5
UPCOMING CHANGES TO REAL PROPERTY APPRAISER
QUALIFICATIONS in 2015
Beginning January 1, 2015, the minimum national requirements for property appraisers will change
significantly. College-level education will be required for 3 of the 4 categories of appraisers. Listed below
are the new college-level education requirements. These are only some of the changes that will go into
effect on January 1, 2015. Please consult www.appraisalfoundation.org for other requirements.
Classification
Trainee Appraiser
Current Requirements
None
Licensed Residential Appraiser None
1/1/15 Requirements
None
30 semester credit hours of college
level education from an accredited
college, junior college, community
college, or university OR an
Associate’s degree or higher (in any
field).
Bachelor’s degree or higher (in any
field) from an accredited college or
university.
Certified Residential Appraiser 21 semester credit hours in
specified collegiate subject
matter courses from an
accredited college or university
OR an Associate’s degree or
higher.
Certified General Appraiser
30 semester credit hours in
Bachelor’s degree or higher (in any
specific collegiate subject matter field) from an accredited college or
courses from an accredited
university.
college or university OR a
Bachelor’s degree or higher.
*These requirements are effective for individuals seeking a real property appraiser credential after January 1, 2015. However, in
some cases, the requirements may also apply to existing real property appraisers (for example, a state may require a credentialed
appraiser to meet the new Criteria if he or she moves from a state that does not have reciprocity with that state. Or some states may
require appraisers seeking to change their credential level to meet all of the 2015 Criteria prior to obtaining the new credential).
Credentialed appraisers are urged to contact the applicable state appraiser regulatory agencies if they are contemplating
relocation or changing credential levels.
In Memory Of
Walter D. Messina Jr., Past President of the Columbia Society in 2009
October 29, 1937 - November 5, 2012
Age 75, of Lynbrook, New York.
Walter will be missed by many loving relatives, friends, and business associates.
Please send donations in Walter’s memory to:
Lustgarten Foundation http://www.lustgarten.org
American Heart Association, http://www.heart.org
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Columbia Society News and Views