By Madie McGay, NorthJersey.com
January 12, 2024
New Jersey is cracking down on home appraisal discrimination against homeowners, buyers and real estate agents based on their race or nationality, according to a new set of initiatives announced January 19 by Attorney General Matthew Platkin.
The state Division on Civil Rights and the Division of Consumer Affairs developed the Home Appraisal Discrimination Initiative — designed to address inequities in home appraisals that have been documented in New Jersey and the nation. The initiative was informed by Gov. Phil Murphy’s existing Wealth Disparity Task Force, established in 2021.
This comes after the state Senate approved a pair of bills in December — one being the Fair Appraisals Act — that were aimed at cutting down discrimination during property appraisals in New Jersey.
“Discriminatory practices in home appraisals violate our civil rights laws, and we are committed to ensuring that all entities involved in the home appraisal process, including appraisers, lenders and appraisal management companies, comply with their legal obligations, said Sundeep Iyer, director of the Division on Civil Rights. “The initiative marks an important first step toward eradicating discrimination in home appraisals and opening new doors to homeownership and wealth-building for communities of color in our state.”
The initiative includes a set of enforcement guidelines that outline how New Jersey’s existing Law Against Discrimination applies to home appraisals. According to the law, it prohibits discrimination “in the terms, conditions or privileges of the sale, rental or lease of any real property or part or portion thereof” based on any protected characteristic, such as race, gender and religion.
Additionally, the initiative established several new entities aimed at stopping future discrimination. They includes the Appraisal Discrimination Task Force — responsible for launching investigations of discrimination and addressing complaints from the public — and the Appraisal Equity Subcommittee, a division of the State Real Estate Appraisal Board tasked with creating a pilot program to reduce existing barriers when entering the appraisal profession.
“Home appraisals must be fair, objective and unbiased,” said Cari Fais, acting director of the Division of Consumer Affairs. “This initiative will provide the Real Estate Appraiser Board with additional resources to promote equity and accountability in the real estate appraisal industry, and ensure that the wealth-building benefits of homeownership are equally available to all.”
There will also be complaint sharing between the Division on Civil Rights and the State Real Estate Appraiser Board, as well as anti-bias training for board members and appraisers.