Texas Appraiser Licensing and Certification Board approves $15,500 MOU payment, adopts FY26 budget and backs new practicum approval process

The Texas Appraiser Licensing and Certification Board on the morning of its meeting approved a $15,500 administrative cost allocation to a long-standing memorandum of understanding with the Texas Real Estate Commission (TREC), adopted the board’s fiscal year 2026 budget and related financial policies, and directed staff to develop a state approval process for practicum providers and courses intended to help aspiring appraisers satisfy experience requirements.

The board said the $15,500 payment — described by staff as a ‘‘general administrative cost allocation’’ meant to offset shared services such as communications, human resources and finance that TREC currently covers — will be recorded in the MOU’s exhibit and leave the board’s FY26 bottom-line unchanged. Board members approved the MOU amendment and the allocation by voice vote.

Executive Director Chelsea Buckholz told the board the agencies are still implementing a new license-management system the staff is calling the Realm portal and that the project is delayed by a data conversion and integration work. “Data conversion is really what is holding us up as of now,” Buckholz said. She said the board is testing a mock conversion and integrating the new portal with external systems including fingerprinting, education and exam vendors, and remains “extremely hopeful about a go live later this year.”

Why it matters: The MOU change and the budget move are linked: staff said shifting staff percentage allocations reduces certain payroll costs but the $15,500 payment will function as a good-faith contribution to general administrative services provided by TREC without increasing the board’s projected expenditures for FY26. The board’s action preserves its projected reserves and supports continuing shared-service arrangements while the agencies await longer-term budget decisions at TREC.

Budget details and board action

Chief Financial Officer Renata Williams summarized the FY26 budget presented as a three-year plan with 2026 to be adopted and 2027–28 shown for forecasting. The board approved the FY26 budget, the budget and financial administration policy, and the investment policy as presented.

Key numbers in the FY26 materials presented to the board include: a beginning balance of roughly $4.0 million, an operating reserve set at about $1.2 million (approximately six months of expenditures), an unreserved fund balance near $2.7 million, projected revenues of about $2.5 million and projected expenditures of roughly $2.5 million, producing a planned operational drawdown of about $84,000 for FY26. The presentation shows the board expects revenue fluctuations across even and odd renewal years (appraisal management company renewals typically fall in even years), which drives the multiyear forecast.

Williams noted staff are not proposing new full-time equivalent positions in FY26, but the budget includes a 3% merit pool for salaries and a $5,000 increase to professional fees to expand internal-audit scope; a $150,000 contract-support placeholder remains in the plan.

Practicum approval: a new pathway for experience

Board members voted to direct staff to create a state-level approval process for practicum providers and practicum courses. Director Melissa Tran — who told the board the primary barrier to entering appraisal work is the current experience requirement and supervisor model — said outreach to appraisals management companies yielded limited responses but that demand from aspiring appraisers is evident: the two known practicum providers reported a combined waiting list of about 100 Texas applicants.

“One of the biggest barriers to entry into the appraiser profession is the experience requirement,” Tran said, describing the practicum as an alternate pathway similar to programs used successfully in other states. The board also authorized staff to propose rule changes to add a definition of practicum courses, allow approved practicum completion to count toward required experience, and create rules for approval, compliance and enforcement of providers and courses. Those proposals will be published for public comment per the Texas Register rulemaking process.

Rulemaking actions

The board approved multiple rule-related staff recommendations at the meeting, including: authorizing staff to submit for adoption several amendments to 22 Texas Administrative Code, chapter 153 (related to online application language and AQB training changes); authorizing the reproposal and public-comment process for updates to section 153.19 to align with recent statutory changes; and authorizing new rules establishing provider/course approval and compliance standards for practicum programs. Board general counsel Kathleen Santos said the changes are part of the board’s quadrennial rule review and are being aligned with recent legislation and federal/Appraiser Qualification Board (AQB) requirements, including a valuation-bias and fair-housing course that will take effect in January 2026.

Other items

- Election and appointments: The board unanimously elected Martha Gail Reed Lynch as vice chair and announced several committee assignments, including chairs and new members added to committees. The board also ratified minutes from the May 16, 2025 meeting by voice vote and excused the absences of two members earlier in the meeting. - National oversight and training: Buckholz reported that the Appraisal Subcommittee (ASC) is undergoing leadership change and that the ASC’s valuation-bias and fair-housing education requirement (AQB-adopted) will apply to renewals effective January 2026. She said approved courses are available and staff have increased outreach to licensees.

Votes at a glance

- Excuse absences (McAnally, Eggleberger): approved by voice vote; outcome: approved (motion carried). - Ratify minutes (05/16/2025): approved unanimously by voice vote; outcome: approved. - Elect vice chair (Martha Gail Reed Lynch): approved by voice vote; outcome: elected. - Approve administrative cost allocation of $15,500 in MOU with TREC and related exhibit changes: motion carried by voice vote; outcome: approved. (Board recorded that the adjustment would leave the FY26 budget line totals as presented.) - Approve FY26 budget, budget & financial administration policy, and investment policy: approved by voice vote; outcome: approved. - Direct staff to create an approval process for practicum providers and courses: approved by voice vote; outcome: approved. - Authorize staff to submit for adoption or proposal multiple rule amendments (22 TAC ch. 153; sections cited in materials including 153.1, 153.6, 153.15, 153.19, 153.42, 153.43 and related sections): motions carried by voice vote; outcome: authorized for publication and public comment or adoption as specified in each item.

What to watch next

- Realm portal: the board expects further updates as mock data conversions and system integrations progress; a fall or late‑year go‑live remains the stated target if testing and integrations succeed. - Practicum rulemaking: proposed rules and the provider-approval process will be published for public comment; interested providers should watch the Texas Register notices and the board’s website for application materials and timing. - Implementation of valuation-bias and fair-housing course requirements: these AQB-adopted education requirements take effect January 2026 and will be enforced at renewal or for new applicants as specified by the AQB and board rules.

The board concluded its business and scheduled a November workshop for onboarding and training topics, and tentative meeting dates into 2026.