7.3.1 Appraiser Qualifications

• A. Each third-party appraiser must meet the following minimum qualification requirements:

1. Be a Certified General Appraiser under the appraiser certification requirements of the state in which the subject project is located;

2. Be currently active and regularly engaged in the appraisal of multifamily properties;

3. Meet all requirements of the Competency Rule described in USPAP, which applies to each certified appraiser who signs the report. If any of the persons involved in preparing the report is a trainee acting as an assistant, this must be disclosed in the report;

4. Have at least three years of income project appraisal experience; and

5. Be knowledgeable concerning current real estate market conditions and financing trends in the geographic market area where the subject project is located and be experienced in appraising multifamily properties with the complexity and characteristics similar to those of the subject project. If the subject contains commercial space, Low Income Housing Tax Credits (LIHTC), or other subsidies, the appraiser must have acceptable prior experience in the appraisal of comparable properties.

B. The above requirements apply to each Certified General Appraiser signing the report. It is not permissible for an appraiser who is not certified in the appropriate jurisdiction to circumvent certification requirements by having a locally certified appraiser co-sign the report. Appraisers who are not certified in the appropriate jurisdiction may not perform the required project inspections of the subject or comparable properties. The appraiser must disclose any of the persons involved in preparing the report who are not certified general appraisers and are acting as an analyst, assistant, or trainee.

C. Temporary certifications are permissible; however, the above competency requirements still apply. The appraiser is responsible for checking the accuracy of all information obtained from local sources and must indicate the names of all individuals who provided material assistance in preparing the appraisal. A temporary certification must be obtained prior to beginning the assignment. The Lender may select appraisers with a temporary certification who have documented how they will achieve competence in the subject area in accordance with USPAP.