Bill Text: NJ AR40 | 2024-2025 | Regular Session | Introduced
Bill Title: Recognizes United States Department of Housing and Urban Development Secretary Marcia L. Fudge for leadership in ending bias in home valuation through Interagency Task Force on Property Appraisal and Valuation Equity (PAVE) initiative.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced) 2024-01-09 - Introduced, Referred to Assembly Housing Committee [AR40 Detail]
Download: New_Jersey-2024-AR40-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Assemblywoman VERLINA REYNOLDS-JACKSON
District 15 (Hunterdon and Mercer)
Assemblyman BENJIE E. WIMBERLY
District 35 (Bergen and Passaic)
Assemblyman REGINALD W. ATKINS
District 20 (Union)
SYNOPSIS
Recognizes United States Department of Housing and Urban Development Secretary Marcia L. Fudge for leadership in ending bias in home valuation through Interagency Task Force on Property Appraisal and Valuation Equity (PAVE) initiative.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Assembly Resolution recognizing the United States Department of Housing and Urban Development Secretary Marcia L. Fudge for leadership in ending bias in home valuation through the Interagency Task Force on Property Appraisal and Valuation Equity (PAVE) initiative.
Whereas, The United States Department of Housing and Urban Development (HUD), including the Federal Housing Administration (FHA), continues to focus on its longstanding commitment and central role in providing accessible, affordable, and equitable homeownership opportunities to Americans nationwide; and
Whereas, Under the leadership of Secretary Marcia L. Fudge, HUD is committed to addressing critical housing supply and affordability challenges, while working to advance affordable homeownership opportunities that ultimately serve as a means to unlock generational, wealth-building potential; and
Whereas, A 2022 study conducted by the Brookings Institution concluded that homes in predominantly black neighborhoods are undervalued roughly 21 to 23 percent below what their valuations would be in non-black neighborhoods, accumulating an estimated total valuation loss of $162 billion for homeowners across 113 metro areas; and
Whereas, Secretary Fudge credits the formation of the Interagency Task Force on Property Appraisal and Valuation Equity (PAVE), a unique interagency task force dedicated to ending bias in home valuation, with being a significant and important initiative by HUD to identify discrimination and bring about systemic change in the appraisal of properties that will serve as security for FHA-insured mortgages; and
Whereas, In its effort to advance equity for people who have been historically underserved, marginalized, and adversely affected by persistent poverty and inequality, HUD expects all parties engaged in FHA's mortgage insurance programs to eliminate all considerations of race, color, national origin, religion, sex, familial status, or disability from the appraisal process; and
Whereas, For black homeowners who may be looking to access their home equity and are looking for recourse to their home valuation, Secretary Fudge pointed to recent actions by regulatory and law enforcement agencies, including the Department of Justice and the Consumer Financial Protection Bureau, to identify and offer resources to those affected by discrimination bias; and
Whereas, HUD, through the FHA, created a process where people seeking FHA financing can request a review of their appraisal if they believe the results may have been skewed by racial bias to ensure that their appraisal is fair; and
Whereas, The PAVE initiative presents opportunities to advance affordable and equitable homeownership opportunities to all Americans; and
Whereas, It is altogether fitting and proper to recognize HUD Secretary Marcia L. Fudge for her leadership in advancing the goals of the PAVE initiative and commend her tireless commitment to ending discrimination in home valuation; now, therefore,
Be It Resolved by the General Assembly of the State of New Jersey:
1. This House recognizes the United States Department of Housing and Urban Development Secretary Marcia L. Fudge for leadership in ending bias in home valuation through the Interagency Task Force on Property Appraisal and Valuation Equity (PAVE) initiative.
2. Copies of this resolution, as filed with the Secretary of State, shall be transmitted by the Clerk of the General Assembly to the President of the United States, the Vice President of the United States, and the Secretary of the United States Department of Housing and Urban Development.
STATEMENT
This Assembly resolution recognizes the United States Department of Housing and Urban Development (HUD) Secretary Marcia L. Fudge for leadership in ending bias in home valuation through the Interagency Task Force on Property Appraisal and Valuation Equity (PAVE) initiative.
HUD, including the Federal Housing Administration (FHA), continues to focus on its longstanding commitment and central role in providing accessible, affordable, and equitable homeownership opportunities to Americans nationwide. Under the leadership of Secretary Marcia L. Fudge, HUD is committed to addressing critical housing supply and affordability challenges, while working to advance affordable homeownership opportunities that ultimately serve as a means to unlock generational wealth-building potential.
A 2022 study conducted by the Brookings Institution concluded that homes in predominantly black neighborhoods are undervalued roughly 21 to 23 percent below what their valuations would be in non-black neighborhoods, accumulating an estimated total valuation loss of $162 billion for homeowners across 113 metro areas. In its effort to advance equity for people who have been historically underserved, marginalized, and adversely affected by persistent poverty and inequality, HUD expects all parties engaged in FHA's mortgage insurance programs to eliminate all considerations of race, color, national origin, religion, sex, familial status, or disability from the appraisal process.
Secretary Fudge credits the formation of the Interagency Task Force on Property Appraisal and Valuation Equity (PAVE), a unique agency, with being a significant and important initiative by HUD to identify discrimination and bring about systemic change in the appraisal of properties that will serve as security for FHA-insured mortgages.
For black homeowners who may be looking to access their home equity and are looking for recourse to their home valuation, Secretary Fudge pointed to recent actions by regulatory and law enforcement agencies, including the Department of Justice and the Consumer Financial Protection Bureau, to identify and offer resources to those affected by discrimination bias. Further, HUD, through the FHA, created a process that people seeking FHA financing can use to request a review of their appraisal if they believe the results may have been skewed by racial bias to ensure that their appraisal is fair.
The PAVE initiative presents opportunities to advance affordable and equitable homeownership opportunities to all Americans and Secretary Fudge should be commended for her dedication ending racial bias in home valuation.
