19 NYCRR 1103.11

General elective (GE) course outlines

The following are the required subjects to be included in the courses of study and the required number of hours to be devoted to GE appraisal courses. All appraisal schools must utilize the following course outline in conducting their programs. The following course outline is not intended to substitute for specific outlines for the proposed course. (a) GE-1 / Environmental Issues. This regulation should be consulted prior to offering this course for any changes, since this area is evolving very quickly and constant changes are being made. A. Environmental Issues 14 hours (1) Long standing issues 1 hour (a) Air - indoor/outdoor air pollutants (b) Water municipal drinking water - public private distribution systems private water systems - wells - private - community health related issues - bacteria - minerals - hardness - Ph - organic Testing procedures and remediation (c) Private sewerage disposal systems - septic systems -governed by the Department of Health -must be designed by professional engineer or a registered architect -most septic for homes have as built drawings filed with the local health department -testing & remediation (d) Termite Testing -must be licensed by the New York State Department of Health -testing & remediation (2) Contemporary issues 6 hours (a) Asbestos

historical overview - what is asbestos? - what are its uses? health effects - asbestosis - lung cancer - mesothelioma testing procedures - bulk sampling - air monitoring - wipe sampling removal procedures (b) Lead paint water soil health effects - adults - children testing & remediation disclosure requirements (c) Radon - including health effects radon entry/behavior testing & remediation new construction (d) Indoor air quality (e) Poly-Chlorinated Biphenyls - (PCB's) where they come from testing & remediation (f) Environmental assessments primarily used during commercial real estate transactions screening Fannie Mae (1990) Appraisal Standards Board Advisory Opinion Freddie Mac USPAP “Standards of Practice” Phase I, II, III and IV - Phase I - investigative - Phase II - testing phase - Phase III - remediation - Phase IV - management phase (g) Underground storage tanks concerns of leaking age of tanks testing and remediation (h) Electro-magnetic fields health effects testing and remediation (i) Chloro-fluoro carbons - CFC's problems with CFC's depletes ozone layer major CFC problems in homes - aerosols

- air conditioners - testing techniques (j) Wetlands and flood plains inland lakes and streams flood plains riparian rights soil erosion and permits water table flowage easements and storm water regulation (k) Hazardous waste sites effect on value - abatement costs - market perception (3) Environmental laws and regulations affecting real estate 3 hours Resource Conservation and Recovery Act (RCRA) National Environmental Policy Act (NEPA) Clean Water Act (CWA) Rivers and Harbors Act of 1899 (RHA) Coastal Zone Management Act (CZMA) Clean Air Act (CAA) Toxic Substances Control Act (TSCA) Solid Waste Disposal Act of 1965 Asbestos Hazardous Emergency Response Act (AHERA) Federal Insecticide, Fungicide & Rodenticide Act (FIFRA) Hazardous Material Transportation Act (HMTA) Occupational Safety and Hazard Act (OSHA) EPA board powers over air, soil and water contamination National Environmental Policy Act (NEPA) U.S. v. Maryland Bank & Trust Co. (4) Comprehensive Environmental Response, Compensation and Liability Act (CERCLA OR SUPERFUND) 2 hours liability for contaminated property defenses to liability piercing the corporate veil for CERCLA liability successor liability lender liability under CERCLA (5) Responsibility of appraisers concerning substance Contamination 1 hour

How does it apply to the property? - recognition of contamination - remediation and compliance cost estimation - value estimates of interests in impacted real estate (6) Liability of lenders

1 hour Types of loans - mortgage

- secured - unsecured Key terms Air monitoring Appraisal Standards Board Advisory option Asbestos Asbestos Hazardous Emergency Response Act (AHERA) Asbestosis Bacteria Built Drawings Bulk sampling CERCLA or SUPERFUND Chlordane Chloro-fluoro carbons (CFC's) Clean Air Act (CAA) Clean Water Act (CWA) Coastal Zone Management Act (CZMA) Due diligence Electro-magnetic field Environmental impact statement Environmental Protection Agency (EPA) Fannie Mae (1900) Federal Insecticide, Fungicide & Rodenticide Act (FIFRA) Freddie Mac Groundwater Hazardous Material Transportation Act (HMTA) Lead Mesothelioma Minerals National Environmental Policy Act (NEPA) Occupational Safety and Hazard Act (OSHA) Organic Ph Phases I, II, III and IV Poly-chlorinated Biphenyls (PCB's) Radon Resource Conservation and Recovery Act (RCRA) Rivers and Harbors Act of 1899 (RHA) Screening Solid Waste Disposal Act of 1965 Successor liability Toxic Substances Control Act (TSCA) Underground storage tanks U.S. vs. Maryland Bank & Trust Co. Water hardness Wipe sampling Instruction 14 hours Final Examination (35-50 questions) 1 hour

Total 15 hours

Bulkhead/Tidal erosion Governmental approval/costs (dredging, etc.) case studies Instruction 14 hours Final Examination (35-50 questions) 1 hour Total 15 hours (c) GE-3 /Using the Hp12c Financial Calculator A. Introduction to Functions of the HP12C: 2 hours Financial, Mathematical and statistical Modes (RPN, ALG). Basic Arithmetic calculations. B. Compound Interest and Discount 3 hours Factors Six functions of the dollar. C. Introduction to Variable/irregular 3 hours Cash Flows Selecting and supporting the discount rate. Calculating internal rate of return. D. Determining Overall Capitalization 3 hours Rates Case study valuation Direct capitalization. Discount cash flow yield capitalization. E. Income Valuation Comparison 3 hours Overall rate. Mortgage rate. Equity rate. Comparison of cost and sales approaches. Instruction 14 hours Final examination (35-50 questions) 1 hour Total 15 hours