in-20250924-IR-876240631FRA: Adds 876 IAC 3-3-9.1 concerning the Practical Applications of Real Estate Appraisal program administered by the Indiana real estate appraiser licensure and certification board. Effective 30 days after filing with the publisher.

TITLE 876 INDIANA REAL ESTATE COMMISSION Final Rule LSA Document #24-631 DIGEST PRACTICAL APPLICATIONS OF REAL ESTATE APPRAISAL HISTORY Notice of First Public Comment Period: 20250115-IR-876240631FNA Regulatory Analysis submitted with Notice of First Public Comment Period: 20250115-IR-876240631RAA Date of First Hearing: February 17, 2025 Notice of Second Public Comment Period: 20250507-IR-876240631SNA Date of Second Hearing: June 18, 2025 CITATIONS AFFECTED: 876 IAC 3-3-9.1 SUMMARY/RESPONSE TO COMMENTS Comments Received During First Public Comment Period The Indiana Real Estate Commission (commission) requested public comment from January 15, 2025, through February 14, 2025, and during the public hearing on February 17, 2025. The comments received and the commission’s responses to the comments are summarized as follows: Comment: The Appraisal Institute recommended modifying this language to read, "certified residential PAREA program..." The Real Property Appraiser Qualification Criteria (RPAQC) does not currently support the development of certified general PAREA programs. However, successful completion of a Certified Residential PAREA program can be applied to the residential portion of the 3,000 hours required for the Certified General Appraiser credential. Response: Further review of the proposed rule by the Real Estate Appraiser Board, it was determined the proposed rule, in its original intent, should remain as written. Section (c)(1)(B) included the Certified General credential with this language: Comments Received During Second Public Comment Period The commission requested public comment from May 7, 2025, through June 6, 2025, and during the public hearing on June 18, 2025. The comments received and the commission’s responses to the comments are summarized as follows: Comment: In a letter dated May 30, 2025, the Appraisal Institute recommended modifying this language to read, "certified residential PAREA program…" The Real Property Appraiser Qualification Criteria (RPAQC) does not currently support the development of certified general PAREA programs. However, successful completion of a Certified Residential PAREA program can be applied to the residential portion of the 3,000 hours required for the Certified General Appraiser credential. Additionally, the Appraisal Institute requested that the Indiana Real Estate Commission consider modernizing experience requirements under 876 IAC 3-3-9. To require 1,500 hours of residential experience to count toward the 3,000 hours required for the certified general credential. Response: The proposed rule, in its original intent, should remain as written.  Section (c)(1)(B) included the Certified General credential with this language: Comment: Before the second public hearing on June 18, 2025, Mark Ratterman, a board member for the Indiana Real Estate Appraiser Board, provided comments in support of the rule. He indicated that Indiana is one of the last states to approve the PAREA program. Response: The Indiana Real Estate Commission voted to approve the proposed rule as written. Comment: During the second public hearing on June 18, 2025, Dee Young, Real Estate Broker for New Day Realty, provided comments in support of the rule. She said that she believes that this rule would help develop new appraisers. Response: The Indiana Real Estate Commission voted to approve the proposed rule as written. FINAL RULE Sec. 9.1. (a) This section establishes requirements for accepting completion of a PAREA as an alternative method to satisfy the experience requirements for Indiana certified residential appraiser and general appraiser licenses issued by the Indiana real estate appraiser licensure and certification board (board). (b) For purposes of this section, "Practical Applications of Real Estate Appraisal" or "PAREA" means programs approved by the Appraiser Qualifications Board of the Appraisal Foundation that use simulated experience training and serve as an alternative to the traditional supervisor/trainee experience model of obtaining the required experience for each license. (c) Notwithstanding section 9 and sections 10 through 13.1 of this rule, an applicant for an Indiana certified residential or general appraiser license may submit documentation to the board demonstrating successful completion of a PAREA program in its entirety, and shall be given credit toward the experience hour requirements for each license as follows: (d) No credit for partial hours accrued in a PAREA program shall be awarded to an applicant if the applicant fails to complete the certified residential PAREA program. (e) Before beginning a certified residential PAREA program, an applicant shall have completed all the educational requirements for the Indiana licensed trainee appraiser license as prescribed in section 3.1 of this rule. (f) An applicant seeking to satisfy all, or part of, the experience required for an Indiana certified residential or general appraiser license is not required to obtain an Indiana licensed trainee appraiser license or pass the Indiana licensed trainee appraiser examination. (g) The board may request documentation from an applicant in the form of reports or file memoranda for any appraisal, or portion of an appraisal, completed by the applicant as part of the certified residential PAREA program. LSA Document #24-631 Notice of First Public Comment Period: January 15, 2025 Approved by Attorney General: August 26, 2025 Approved by Governor: August 27, 2025 Filed with Publisher: August 28, 2025, 10:05 a.m. Documents Incorporated by Reference: None Received by Publisher Small Business Regulatory Coordinator: Elizabeth Walker, Small Business Regulatory Coordinator, Indiana Professional Licensing Agency, 402 West Washington Street, Room W072, Indianapolis, IN 46204, (317) 234-2912, elwalker@pla.in.gov