The bill establishes the Homeowner Protection Unit within the office of the attorney general, which will investigate alleged violations of fair housing laws, particularly in appraisal practices. It requires real estate appraisers to undergo cultural competency and implicit bias training as a condition for licensing and certification, promoting diversity in the appraisal profession. It also creates a Fair Housing Practices Fund to offer financial assistance to victims of discriminatory appraisals and to fund community education initiatives, thus fostering a more equitable housing environment.
Summary
House Bill 1112 aims to strengthen protections against discriminatory appraisal practices in the real estate market. The bill stipulates that individuals involved in the appraisal of residential properties must not provide excessively low appraisals based on the race, color, religion, sex, disability, familial status, or national origin of the loan applicant or residents in the property’s neighborhood. This legislation is set to enhance accountability within the real estate appraisal industry and provide a clear legal framework for addressing discriminatory practices.
Contention
Despite its supportive intentions, the bill has faced scrutiny regarding potential implications for appraisers and the appraisal process. Critics express concerns that mandatory training and oversight could result in additional burdens on appraisers, possibly affecting the availability and cost of appraisal services. Supporters, however, argue that the long-term benefits of preventing discrimination and promoting fairness in housing outweigh these concerns, emphasizing the necessity of protecting vulnerable populations from biased practices.
Establishes penalties for appraisers who engage in discriminatory real estate appraisals and requires certain information to be provided to present and prospective owners or occupants of real estate.
Establishes provisions relating to discriminatory employment practices and discriminatory housing practices based on a person's private medical history or medical choices
Permits State Real Estate Appraiser Board to revoke, suspend, or fine appraisers or appraisal management companies who knowingly engage in discriminatory appraisals of residential property on basis of race or national origin.