NJ lawmakers move on two bills to bar discrimination in real estate appraisals

The state Senate on Monday approved a pair of bills that are aimed at cutting back on discrimination during property appraisals in New Jersey.

What will the 'Fair Appraisals Act' do?

Known as the Fair Appraisals Act, the first bill would ban appraisal professionals from discriminating against people based on race, creed, color, national origin or other characteristics during the appraisal process of a residential property.

It would also clarify enforcement of discrimination in housing appraisals, whether that discrimination is shown toward the property buyer or the seller.

The bill, sponsored by state Sens. Nellie Pou and Troy Singleton, also stipulates that professionals who are found to be discriminating would be subject to punishment imposed by the New Jersey State Real Estate Appraiser Board and the Division on Civil Rights. Punishments could range from a suspended appraiser’s license, certification or registration to an order for the holder to make restitution of the cost of the discriminatory appraisal. It would also require the license holder to attend an anti-bias seminar approved by the appraiser board.

“Sadly, housing appraisal discrimination remains alive and well in New Jersey and elsewhere. As recent research has borne out, appraisals are systematically lower for Black and Latino families than for white families across the country,” Pou said in a statement. “This law will help us further protect families from this discrimination and also contribute to lowering the racial wealth gap in our state.”

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What would the second bill do?

The second bill, sponsored by Pou and Senate Majority Leader Teresa Ruiz, would prohibit discrimination based on race, sexual orientation and other personal characteristics as part of the appraisal analysis of a property and require real estate appraisers to participate in anti-bias training.

The training would require appraisers to complete a fair housing and appraisal bias education course offered by the Appraiser Qualifications Board of the Appraisal Foundation as a precondition to satisfy the appraiser’s continuing education requirements.

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What comes next?

Although both bills were passed by the state Senate, they still would have to pass in the Assembly before they can head to the governor’s desk.

The Institute for Social Justice released a statement commending the Senate for its work. In that statement, Laura Sullivan, director of the Economic Justice Program, said that “housing appraisal discrimination strips wealth from Black communities who continue to face barriers to fair lending and wealth-building opportunities through homeownership.”

Katie Sobko covers the New Jersey Statehouse. Email: sobko@northjersey.com

This article originally appeared on NorthJersey.com: NJ real estate appraisals: New bills to bar discrimination