The Appraisal Foundation Board of Trustees Overhauls Governance Structure, Ending Direct Appointments by Outside Organizations

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Dec 12, 2023, 15:38 ET

WASHINGTON, Dec. 12, 2023 /PRNewswire/ -- The Appraisal Foundation Board of Trustees today adopted the Foundation's first major governance overhaul in over a decade, making comprehensive changes that completely restructure the Board of Trustees, end the ability of any organization to directly appoint someone to the Foundation's Board of Trustees, and introduces a new opportunity for organizations to partner with the Foundation in their mission to build public trust in the appraisal profession.

"Today's vote is the culmination of 18 months of hard work by the Board Structure Work Group," said Board of Trustees Chair Dayton Nordin. "The Appraisal Foundation's boards and staff have done extensive listening and reflection over the last three years to identify opportunities to be more responsive to stakeholders and better uphold the public trust. I am pleased with our proactive efforts to make The Appraisal Foundation's governance nimbler and more transparent."

Other changes to the Foundation's bylaws include:

Open new opportunities for stronger, more equitable relationships between the Foundation and the organizations who support its work to promote public trust in the appraisal profession through a system redesign that sunsets the current sponsor category and ability of any organization to make a direct trustee appointment.
Create a category of organizations called partners. These nonprofit organizations demonstrate their support for The Appraisal Foundation by meeting publicly listed benchmarks and can include appraiser membership organizations, users of appraisal services, regulators, fair housing, consumer and civil rights advocates. As confirmed allies who are committed to the Foundation's mission and vision, partners will be trusted resources to nominate candidates to be considered for the Board of Trustees.
Change the structure of the Board of Trustees so that there are nine to ten trustees nominated by a partner organization & nine to eleven public interest trustees, three of whom are nominated by Foundation councils. All trustees will undergo vetting and public interviews with the Trustee Nominating Committee before being seated.
Remove earmarks from all seats on the Board of Trustees and transition to using targets to ensure equitable representation among stakeholder groups.
Change nominating committee policy and structure to ensure that no more than half of each nominating committee is comprised of partner nominated trustees.
Streamline the Board of Trustees' committee structure.
Update trustee terms and term limits so that all trustees can serve up to two four-year terms.
Streamline the Board of Trustees' leadership structure to enhance continuity and stability. This approach not only promotes efficiency but also provides a clear trajectory for individuals progressing through the leadership ladder, ensuring that their roles are well-defined and understood for the upcoming year.
Each new trustee will be assigned a mentor and will have regular check-ins with the Oversight Subcommittee to discuss their development as a trustee.
The Board of Trustees will appoint an Ad Hoc Review Committee to examine issues of governance and board structure at regular intervals to determine if any further changes are needed.

These changes to the Bylaws are effective immediately. Learn more about the new Partner category on the Foundation's website.

Background: The Appraisal Foundation is the nation's foremost authority on the valuation profession. The Appraiser Qualifications Board is congressionally-authorized under Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989 to set the minimum qualifications for real estate appraisers. This work advances the profession by ensuring appraisals are independent, consistent, and objective. More information on The Appraisal Foundation is available at www.appraisalfoundation.org.

Media Contact:
Amy Kaufman
Director of Communications
The Appraisal Foundation
[email protected]
direct phone 202.624.3048

SOURCE The Appraisal Foundation