Happy New Year. I hope all of our members enjoyed a great holiday season.
With the New Year comes new opportunities. For example, we are privileged to have the Appraisal Institute Joint Regions I & VII Meeting in San Diego on January 24th. The regional meeting schedule includes a regional committee happy hour at the downtown Karl Strauss Brewing Company on January 23rd and the Regional Conference on January 24th. In conjunction with the conference, The Cost Approach: Unnecessary or Vital to a Healthy Practice? is being offered.
The San Diego Chapter Education Committee is putting on the new USPAP class on February 5th. Sign up now and get up to speed on the latest USPAP guidance.
Our next chapter lunch meeting will be on February 19th. This is a joint meeting with IRWA and is a great opportunity for our members to expand their professional network and meeting new professionals.
The New Year also brings many changes to our profession. Here are just a few of the new laws and regulations going into effect in 2020 that you may want to be aware of.
AB 5 – This bill curbs the classification of service providers and workers as independent contractors by businesses, rather than as employees. The change stems from rulings in Dynamex Operation West, Inc. v. Superior Court and may alter taxes, not only for the appraisers acting as independent contractors but for the companies hiring them.
AB 178 – This bill makes the inclusion of solar power systems a required mandate in the construction of new homes. It will be interesting to see how this law impacts sales of new and existing homes.
AB 1482 – Known as the Tenant Protection Act, this bill places an annual cap on rent increases and creates new standards for evictions across California. This marks the most significant policy change for California’s rental housing owners and tenants in a quarter-century.
H.R 299 – This bill raises the VA loan limit for most counties. Given the generally higher home values throughout our State, it will be interesting to see if it impacts the sale and refi appraisal world.
New Appraisal Threshold for Residential Real Estate Loans – The FDIC, the Federal Reserve, and the Office of the Comptroller of the Currency (the Agencies) have jointly issued an amended rule (the Appraisal Rule) that increases the threshold for residential real estate transactions requiring an appraisal from $250,000 to $400,000.
In related news, the chapter’s Government Relations Committee will be meeting soon in Sacramento with the rest of the AI chapters in California to discuss regulatory issues. If you have any questions or comments regarding appraisal regulations, I encourage you to contact the committee for assistance.
Happy New Year,
Jeremy Darner, MAI, SRA, AI-GRS
2020 Chapter President