CEO REPORTThe year aheadGeorges Lozano, MPAAIC Chief Executive OfficerLooking ahead instead <strong>of</strong> backwards issomething that we have been advocatingwith respect to the pr<strong>of</strong>ession for manyyears now. In this respect, I would like to take thisopportunity to <strong>of</strong>fer a look ahead and provide youwith some insight into the programs and activitiesthat we are planning to undertake in 2010.The past year was unsettling for many Canadiansas a result <strong>of</strong> the economic slowdown and itsimpact on the job market. The appraisal pr<strong>of</strong>essionwas not spared and a significant number <strong>of</strong> membersreported lower work volumes and continuedpressure on fees, especially in the residentialmarket. While the economy seems to be turningaround, we expect the year ahead to be challengingin more ways than one.At the end <strong>of</strong> 2009, membership renewalnumbers were down from the previous year withactive membership now at 4,265 (not including544 retired members) as at the time <strong>of</strong> writing.Most <strong>of</strong> this attrition came from Candidates –especially new Candidates who found it difficultunder the economic circumstances to maintaintheir membership in the <strong>Appraisal</strong> <strong>Institute</strong> <strong>of</strong><strong>Canada</strong> (AIC). This is unfortunate given the careerpotential that designated members have and thegrowing opportunities that we see in the realestate marketplace.But the news was not all negative with respectto membership, as 2009 saw enrolment in the UBCpostgraduate certificate in valuation program growto over 700 students. About half <strong>of</strong> these studentsare already Candidates working towards their AACIdesignation and the other half are expected to jointhe <strong>Institute</strong> over the next couple <strong>of</strong> years. As theeconomy rebounds, the <strong>Institute</strong> is hopeful that its“AIC is looking to 2010 as a challenging year thatwill require us to explore new ways to deliver qualityservices in a highly cost-effective manner.”members will find meaningful work and rewardingcareers <strong>of</strong>fering a wide range <strong>of</strong> valuation andrelated advisory services. But for now, AIC is lookingto 2010 as a challenging year that will requireus to explore new ways to deliver quality servicesin a highly cost-effective manner.2010 will see the launching <strong>of</strong> a few newprograms and the improvement <strong>of</strong> several <strong>of</strong> ourongoing initiatives. The programs and activitiesundertaken by AIC are linked to strategic objectivesthat are set by the <strong>Institute</strong>’s Board <strong>of</strong> Directorsand reviewed from time to time to ensuretheir currency. Last fall, the Board reviewed itsobjectives during a strategic planning session.During that meeting, the Board discussed the<strong>Institute</strong>’s stated vision that members will berecognized nationally and internationally ashighly qualified pr<strong>of</strong>essionals who have theexpertise and integrity to:• provide a broad range <strong>of</strong> services related tothe principles <strong>of</strong> value in real estate;• lead projects, initiatives and organizationsrelated to property; and• provide support, strategic advice anddecisions regarding real estate and relatedproperty.To achieve the vision, it is understood thatthe <strong>Institute</strong>’s pr<strong>of</strong>essional designations mustreflect the highest standards <strong>of</strong> pr<strong>of</strong>essionalism,knowledge and skills within the industry.8Canadian Property Valuation Volume 54 | book 1 | 2010 Évaluation Immobilière au <strong>Canada</strong>click here to return to table <strong>of</strong> contents
The <strong>Institute</strong> and its members must be recognizedas the leading multi-disciplinary real estate valuationpr<strong>of</strong>essionals and the <strong>Institute</strong>’s organizationalmodel must be cost-effective and highly beneficialto the membership. It is these concepts thatguide the <strong>Institute</strong> in its forward planning and theimplementation <strong>of</strong> its programs.In 2010, AIC will continue to work towardsachieving these objectives by introducing newprograms that advance our goals, and by improvingexisting programs.In the area <strong>of</strong> Pr<strong>of</strong>essional Affairs, a number<strong>of</strong> initiatives are being proposed to continue tosupport members in their day-to-day work. Onesuch initiative, which has been given the workingtitle <strong>of</strong> Pr<strong>of</strong>essional Excellence Program, is aimedat providing information and training primarilythrough the <strong>Institute</strong>’s website to answer memberquestions, provide best practices, and makeavailable technical information that will helpimprove the quality <strong>of</strong> appraisal work and help tomitigate problems that can lead to complaints andeven claims.To help Candidates achieve their designationas quickly as possible, the mentoringprogram is being reviewed and willbe revised with the aim <strong>of</strong> increasingaccessibility to qualified mentors andgenerally improving the mentoringexperience for both the Candidatesand their mentors.In the area <strong>of</strong> Pr<strong>of</strong>essional PracticeStandards, last year saw the <strong>Institute</strong> overhaulthe Standards with the aim <strong>of</strong> making themcompliant with the International ValuationStandards (IVS). This has been achieved andthe 2010 Standards are IVS compliant. Thiswill provide appropriate guidance to membersinvolved in valuation for financial reporting. Asyou are aware, <strong>Canada</strong> will adopt internationalaccounting standards beginning in 2011and, under international financial reportingstandards, real property assets will be reportedat market value. AIC’s 2010 Standards wereprepared with this in mind. In the year ahead,additional work on the Standards will includeupdating the Pr<strong>of</strong>essional Practice Seminar,retraining standards lecturers, and movingto deliver an online version <strong>of</strong> the DistanceLearning Pr<strong>of</strong>essional Practice Seminar.With respect to peer review, the program isnow in its second phase <strong>of</strong> pilot testing and, by allaccounts, has been very successful to date. In 2010,further testing will be conducted with the view <strong>of</strong>establishing peer review as a permanent program<strong>of</strong> the <strong>Institute</strong>.In 2009, the <strong>Institute</strong> adopted a Green Policyand, in 2010, we will explore different ways to ‘gogreen,’ including reducing paper and other costsby increased use <strong>of</strong> electronic documents, virtualmeetings, and other low carbon footprint technologies.Further, the green concept will be carriedover into the <strong>Institute</strong>’s research with respect togreen valuation. As a signatory <strong>of</strong> the VancouverValuation Accord, AIC is looking into the area <strong>of</strong> sustainabledevelopment from a valuation perspectiveand developing guidelines for green valuation.The <strong>Institute</strong>’s Research and DevelopmentCommittee has been working on a program for2010 including the identification <strong>of</strong> research topics.Green valuation has been identified as a highpriority research area and the committee will belooking at the possibility <strong>of</strong> cooperating with other“In 2010, we will look to the membership to play anincreasingly important part in helping the leadership <strong>of</strong> the<strong>Institute</strong> to make the right decisions and lead the pr<strong>of</strong>essionforward in these challenging, but also promising times.”“The <strong>Institute</strong> and its members must be recognized as theleading multi-disciplinary real estate valuation pr<strong>of</strong>essionalsand the <strong>Institute</strong>’s organizational model must be costeffectiveand highly beneficial to the membership.”organizations to undertake studies in this emergingarea <strong>of</strong> valuation.In the area <strong>of</strong> marketing and communications,2010 will see the continued evolution <strong>of</strong> theadvertising messages complemented by a series<strong>of</strong> promotional pieces placed in national mediathat will continue to send a strong message toclients and stakeholders that AIC members areleading pr<strong>of</strong>essionals and real property expertswho can provide a wide range <strong>of</strong> valuation andrelated consulting services. In addition, 2010 willbe the year that a new recruitment initiative will beundertaken with the aim <strong>of</strong> raising awareness <strong>of</strong> thepr<strong>of</strong>ession among college and university studentsacross <strong>Canada</strong>.While member services are an importantcomponent <strong>of</strong> AIC’s programs, representation is alsoan area on which the <strong>Institute</strong> has been focusing,particularly in the latter half <strong>of</strong> 2009. Meetingshave been held with stakeholders and clients in thepublic and private sector to raise awareness <strong>of</strong> thepr<strong>of</strong>ession and its concerns, to provide suggestionsand advice, and to <strong>of</strong>fer assistance with the aim <strong>of</strong>protecting the public and ensuring the integrity <strong>of</strong>the real estate market. In this respect, AIC has metwith representatives from the federal governmentand its central agencies, like-minded associations,the lending community, and related organizations.In 2010, the <strong>Institute</strong> started anew by hostinga forum <strong>of</strong> valuation associations to discuss issues<strong>of</strong> common concern. The first Advisory Councilmeeting <strong>of</strong> the year was held at the end <strong>of</strong> January.These meetings, which are held twice a year,provide the <strong>Institute</strong> with the opportunity to receiveinput from the stakeholder community as well as toupdate stakeholders with respect to changes at the<strong>Institute</strong> and within the pr<strong>of</strong>ession.In 2009, AIC established a special Task Forceon <strong>Appraisal</strong> Management Companies. The TaskForce delivered a report to the Board late in the yearContinued on page 12click here to return to table <strong>of</strong> contentsCanadian Property Valuation Volume 54 | book 1 | 2010 Évaluation Immobilière au <strong>Canada</strong> 9