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Critics attack bill that would add energy efficiency to appraisals

By: Tom Henderson//May 7, 2013//

Critics attack bill that would add energy efficiency to appraisals

Tom Henderson//May 7, 2013//

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Republicans and Democrats in the are sharply divided over a bill that would enable property appraisers to evaluate buildings for energy efficiency.

House Bill 2801 would direct the Oregon Appraiser Certification and Licensure Board to come up with a program to certify that its licensed appraisers are qualified to judge green building features.

The bill squeaked out of the House Energy and Environment Committee on April 15 by one vote. The 5-4 decision was cast along strict party lines, with all Republicans voting against it.

Republicans and Democrats were similarly divided when the bill came to a vote on the House floor on April 17. The bill passed with 35 aye votes from Democrats; all 25 nay votes were cast by Republicans.

Now the bill is before Senate Environment and Natural Resources Committee, and it does not seem to be gaining any popularity.

“Requiring an additional certification above an appraiser’s state-issued credential is unnecessary, impractical and has unintended consequences, which obviously have not been considered,” Laurie Egan, an Oregon City appraiser and vice president of the National Association of Appraisers, testified on Monday.

The federally mandated Uniform Standards of Professional Appraisal Practice already have a provision requiring appraisers to be competent when performing appraisals, she added.

“There are also numerous, highly qualified organizations that provide appraiser education, professional development programs and certifications in energy efficiency,” Egan said.

The Appraiser Certification and Licensure Board is not the proper agency to oversee the proposed program, said Scott DiBiasio, manager of state and industry affairs for the Appraisal Institute (a professional association of real estate appraisers).

“The ACLB administers the program of minimum licensure and certification for practice of appraisal in Oregon, but is only an administrator of such programs,” he testified. “Their current role is only to approve education from professional organizations, universities and private education providers.”

The bill is rife with other problems, Egan said.

“No threshold has been specified with regard to what constitutes an energy-efficient item or who would be required to hold this certification,” she said. “As an example, would an appraiser be required to hold the certification to appraise an older home retrofit with new double-paned windows or a high-energy furnace?”

She agreed with DiBiasio that the appraiser board is not up to the task the bill would impose.

“The Appraiser Certification and Licensure Board doesn’t have the expertise to establish an energy-efficiency certification program and would either have to go to enormous expense to develop the program or contract with an existing entity which already issues certifications.”

No attendees spoke in favor of the legislation at Monday’s public hearing.



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