Title 831 | Chapter 003 | Regulation 040REG


PROPOSED
This document is not yet current.
PUBLIC PROTECTION CABINET
Real Estate Appraisers Board
(New Administrative Regulation)

831 KAR 3:040.Appraisal experience requirements for certification and licensure.

Section 1.

Required appraisal experience.

(1)

No appraisal experience is required for licensure as an associate real property appraiser.

(2)

Licensure as a residential real property appraiser shall require 1,000 hours of appraisal experience, which shall not be acquired in a period of fewer than six (6) calendar months.

(3)

Certification as a residential real property appraiser shall require 1,500 hours of appraisal experience, which shall not be acquired in a period of fewer than twelve (12) calendar months.

(4)

Certification as a general real property appraiser shall require:

(a)

3,000 hours of appraisal experience, which shall not be acquired in a period of fewer than eighteen (18) calendar months; and

(b)

At least 1,500 hours of appraisal experience that is nonresidential.

Section 2.

How to receive credit for appraisal experience.

(1)

Real property appraisal assignments submitted for appraisal experience credit shall be completed:

(a)

In compliance with the requirements of USPAP as incorporated by reference in 831 KAR 3:020 and defined in KRS 324A.010(7);

(b)

In compliance with the requirements for supervisors and associates set forth in 831 KAR 3:030.

(c)

Under the supervision of a certified residential real property appraiser for experience of one (1) to four (4) unit residential properties; and

(d)

Under the supervision of a certified general real property appraiser for experience of all property uses other than one (1) to four (4) unit residential properties.

(2)

To receive credit for appraisal experience, an applicant must submit an appraisal log completed in accordance with 831 KAR 3:030.

(3)

The appraisal experience required by Section 1 may have been acquired in any calendar years, whether or not the calendar years are consecutive, except all appraisal experience must be obtained after January 30, 1989. Hours may be treated as cumulative in order to achieve the necessary hours of appraisal experience.

(4)

For an appraisal to qualify for experience, there need not be a client in a traditional sense (e.g., a client hiring an appraiser for a business purpose). Experience gained for work without a traditional client can meet any portion of the total experience requirement.

(5)

Up to 100 percent of the required appraisal experience may be obtained in a board-approved practicum course that requires students to:

(a)

Produce credible appraisals that utilize an actual subject property;

(b)

Perform market research containing sales analysis;

(c)

Perform assignments that require problem solving skills for a variety of property types; and

(d)

Apply and report the appraisal approaches in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP), incorporated by reference in 831 KAR 3:020 and defined in KRS 324A.010(7).

Section 3.

Practical Applications of Real Estate Appraisal.

(1)

Practical Applications of Real Estate Appraisal (PAREA) programs approved by the AQB use simulated experience training and shall be accepted by the board as an alternative to the traditional supervisor-associate experience model for obtaining experience required for certification or licensure set forth in Sections 1 and 2.

(2)

Only PAREA programs approved by the AQB shall satisfy the requirements of this administrative regulation.

(3)

Participants successfully completing approved PAREA programs will receive the following experience credit toward the appraisal experience requirements set forth in Section 1:

(a)

For participants completing an approved licensed residential PAREA program:

1.

Up to 1,000 hours of the required experience hours for credit toward licensure as a residential real property appraiser.

2.

Up to 1,000 hours of the required experience hours for credit toward certification as a certified residential real property appraiser.

3.

Up to 1,000 hours of the total required residential experience hours, none of which is eligible towards the required non-residential hours, for certification as a general real property appraiser.

(b)

For participants completing an approved certified residential PAREA program:

1.

Up to 1,000 hours of the required experience hours for credit toward licensure as a licensed residential real property appraiser.

2.

Up to 1,500 hours of the required experience hours for credit toward certification as a certified residential real property appraiser.

3.

Up to 1,500 hours of the total required residential experience hours, none of which is eligible towards the required non-residential hours, for certification as a general real property appraiser.

(4)

To receive credit for completion of PAREA, an applicant shall submit proof of completion of one or more PAREA courses.

JOHN DEXTER OUTLAW, Board Chairperson
TRACY CARROLL, Director
RAY A. PERRY, Secretary
APPROVED BY AGENCY: March 25, 2026
FILED WITH LRC: March 30, 2026 at 2:50 p.m.
PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this administrative regulation shall be held on June 24, 2026, at 1:00 P.M. Eastern Time at the Mayo-Underwood Building, Room 133CE, 500 Mero Street, Frankfort, Kentucky 40601. Individuals interested in being heard at this hearing shall notify this agency in writing by five workdays prior to the hearing, of their intent to attend. If no notification of intent to attend the hearing was received by that date, the hearing may be canceled. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted through June 30, 2026. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.
CONTACT PERSON: Patrick Riley, General Counsel, Kentucky Real Estate Appraisers Board, 500 Mero Street, Frankfort, Kentucky 40601, Email patrick.riley@ky.gov, Tel. (502) 782-2618.

REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Patrick Riley
Subject Headings:
Boards and Commissions, Real Estate, Licensing, Fees
(1) Provide a brief summary of:
(a) What this administrative regulation does:
This regulation provides definitions for terms used throughout the Kentucky Real Estate Appraisers Board’s ("Board’s") administrative regulations.
(b) The necessity of this administrative regulation:
This regulation is necessary to establish requirements for certification and licensure.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
KRS 324A.035 authorizes and requires the Board to promulgate administrative regulations for certification or licensure of appraisers who perform appraisals of real property in federally related transactions, including experience requirements.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
The Board is charged with licensing and regulating the practice of appraisal in Kentucky. This administrative regulation will clarify the standards for certification and licensure of appraisers in Kentucky.
(2) If this is an amendment to an existing administrative regulation, provide a brief summary of:
(a) How the amendment will change this existing administrative regulation:
Not applicable.
(b) The necessity of the amendment to this administrative regulation:
Not applicable.
(c) How the amendment conforms to the content of the authorizing statutes:
Not applicable.
(d) How the amendment will assist in the effective administration of the statutes:
Not applicable.
(3) Does this administrative regulation or amendment implement legislation from the previous five years?
Yes, this regulation implements the following legislation from the previous five years. HB 172 (Acts Chapter 21) "AN ACT relating to the Kentucky Real Estate Appraisers Board;" effective June 29, 2021. HB 403 (Acts Chapter 182) "AN ACT relating to real property boards;" effective July 15, 2024.
(4) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
As of October 22, 2025, the Board licenses and regulates over 1,564 individual appraisers and 106 appraisal management companies ("AMCs") that will be affected by this administrative regulation, as follows: 721 Certified General Real Property Appraisers, 664 Certified Residential Real Property Appraiser, 13 Licensed Residential Real Property Appraisers, and 166 Associate Real Property Appraisers. This regulation will impact an unknown number of prospective applicants for certification and licensure. Further, an unknown number of current licensees who are applying for an upgraded certification will also be impacted.
(5) Provide an analysis of how the entities identified in question (4) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:
(a) List the actions that each of the regulated entities identified in question (4) will have to take to comply with this administrative regulation or amendment:
Current licensees will not need to take any new steps to comply with this regulation, unless they are using PAREA as a substitute for certain experience requirements. This regulation is a new regulation and recodification of prior 201 KAR Chapter 30. Prospective applicants for licensure will need to follow the requirements set forth in this administrative regulation.
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (4):
This regulation will impose no new costs on licensees.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (4):
Prospective applicants for licensure will be able to identify requirements for licensure.
(6) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
There will be no additional cost to the Board to implement this administrative regulation initially.
(b) On a continuing basis:
There will be no additional cost to the Board to implement this administrative regulation on a continuing basis.
(7) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation or this amendment:
There is no additional funding necessary to implement this administrative regulation.
(8) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment:
The implementation of this administrative regulation requires no increase in fees or funding.
(9) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees:
This administrative regulation does not establish any fees and neither directly nor indirectly increases any fees.
(10) TIERING: Is tiering applied?
No, tiering is not applied because this administrative regulation applies equally to all applicants for certification and licensure.

FISCAL IMPACT STATEMENT
(1) Identify each state statute, federal statute, or federal regulation that requires or authorizes the action taken by the administrative regulation:
KRS 324A.015, 324A.020, 324A.035, KRS Chapter 324A, 12 U.S.C. § 3350
(2) State whether this administrative regulation is expressly authorized by an act of the General Assembly, and if so, identify the act:
(3)(a) Identify the promulgating agency and any other affected state units, parts, or divisions:
The Kentucky Real Estate Appraisers Board ("Board") is the agency responsible for implementing this regulation. No other divisions of state or local government entities should be affected.
(b) Estimate the following for each affected state unit, part, or division identified in (3)(a):
1. Expenditures:
For the first year:
There is no cost to administer this administrative regulation for the first year.
For subsequent years:
There is no cost to administer this administrative regulation for subsequent years.
2. Revenues:
For the first year:
This administrative regulation is not intended to generate revenue for any state or local government agency for the first year.
For subsequent years:
This administrative regulation is not intended to generate revenue for any state or local government agency for subsequent years.
3. Cost Savings:
For the first year:
There are no cost savings to administer this administrative regulation for the first year.
For subsequent years:
There are no cost savings to administer this administrative regulation for subsequent years.
(4)(a) Identify affected local entities (for example: cities, counties, fire departments, school districts):
None
(b) Estimate the following for each affected local entity identified in (4)(a):
1. Expenditures:
For the first year:
N/A
For subsequent years:
N/A
2. Revenues:
For the first year:
N/A
For subsequent years:
N/A
3. Cost Savings:
For the first year:
N/A
For subsequent years:
N/A
(5)(a) Identify any affected regulated entities not listed in (3)(a) or (4)(a):
N/A
(b) Estimate the following for each regulated entity identified in (5)(a):
1. Expenditures:
For the first year:
N/A
For subsequent years:
N/A
2. Revenues:
For the first year:
N/A
For subsequent years:
N/A
3. Cost Savings:
For the first year:
N/A
For subsequent years:
N/A
(6) Provide a narrative to explain the following for each entity identified in (3)(a), (4)(a), and (5)(a)
(a) Fiscal impact of this administrative regulation:
None.
(b) Methodology and resources used to reach this conclusion:
Methodology and resources used are the fiscal department within the Public Protection Cabinet, Division of Real Property Boards.
(7) Explain, as it relates to the entities identified in (3)(a), (4)(a), and (5)(a):
(a) Whether this administrative regulation will have a "major economic impact", as defined by KRS 13A.010(14):
This administrative regulation is not intended or anticipated to have a major economic impact as defined by KRS 13A.010(14).
(b) The methodology and resources used to reach this conclusion:
Methodology and resources used are the fiscal department within the Public Protection Cabinet, Division of Real Property Boards.

FEDERAL MANDATE ANALYSIS COMPARISON
(1) Federal statute or regulation constituting the federal mandate.
12 U.S.C. 3345, 12 U.S.C. 3347
(2) State compliance standards.
KRS 324A.020, 324A.035
(3) Minimum or uniform standards contained in the federal mandate.
12 U.S.C. 3345, 12 U.S.C. 3347
(4) Will this administrative regulation impose stricter requirements, or additional or different responsibilities or requirements, than those required by the federal mandate?
This administrative regulation does not impose stricter requirements, or additional or different responsibilities or requirements, than those required by the federal mandate.
(5) Justification for the imposition of the stricter standard, or additional or different responsibilities or requirements.
This administrative regulation does not impose a stricter standard, or additional or different responsibilities or requirements.

7-Year Expiration: 3/31/2033


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