(1) All residential appraisers must receive specific training and testing to certify that they possess the required knowledge, skills, and abilities to perform residential property appraisals as outlined in this rule.

(2) Training and testing criteria shall be as follows:

(a) International association of assessing officers (IAAO) certified training sessions will be offered annually if funding is available and if there are sufficient numbers of field staff who require the course.

(b) Employees shall attend the first residential training session offered by the department after commencement of employment. Satisfactory completion of the residential training session shall include successful completion of the written residential examination. If the employee fails to successfully complete the first written examination, attendance at the next residential training session shall be required. Failure to successfully complete the second written examination shall result in the immediate termination of employment.

(3) After successful completion of the residential training session, the employee shall prepare a written residential demonstration appraisal narrative report (residential narrative report) . Employees will be granted a maximum of 40 hours of administrative leave to complete the report. The report must be submitted to the department within six months after successful completion of the training session, or within 30 days after using the administrative leave granted, whichever occurs first.

(a) The residential narrative report must include:

(i) title page;

(ii) letter of transmittal;

(iii) table of contents;

(iv) assumptions and limiting conditions;

(v) photographs of subject property;

(vi) identification of property;

(vii) purpose of appraisal;

(viii) definition of market value;

(ix) date of appraisal;

(x) assessment and taxes;

(xi) city data;

(xii) neighborhood data;

(xiii) site data;

(xiv) plot plan;

(xv) zoning;

(xvi) description of improvements;

(xvii) construction features;

(xviii) property history;

(xix) highest and best use;

(xx) estimate of remaining economic life;

(xxi) cost approach with summary;

(xxii) market data approach with summary;

(xxiii) income approach with summary;

(xxiv) correlation and final estimate of value;

(xxv) certification;

(xxvi) qualification of appraiser; and

(xxvii) addenda and exhibits.

(b) Within two months after submission of the residential narrative report, the department shall advise the employee, in writing, whether the report is satisfactory. If the report is unsatisfactory, the employee shall have two months from the date of notification to correct and resubmit the report to the department. Additional administrative leave will not be granted for this purpose. Failure to successfully complete a written narrative report shall result in immediate termination of employment. Upon final acceptance, the residential narrative report shall become the property of the department.

(c) The required timeframes for submitting reports may be extended upon written request by the employee's direct supervisor. Written requests shall be directed to the appropriate regional manager for consideration. The regional manager will approve or deny the request. Copies of the regional manager's determination will be distributed to the employee, the employee's immediate supervisor, and the administrator.

(4) Upon commencement of employment with the department, the employee shall undertake a one-year period of on-the-job appraisal work. During this period, in order to ensure that the employee has the aptitude for appraisal work, the employee shall be in a probationary status. Failure to perform the appraisal work satisfactorily at any time during the one-year probationary period shall result in immediate termination of employment.

(5) The department may waive the criteria set forth in (2) , (3) , or (4) if sufficient proof is provided that the employee has previously fulfilled those requirements. For example, the employee may have completed a course of instruction from the society of real estate appraisers whose complexity was equal to or greater than that of IAAO course I.