State Legislative Sessions in High Gear; Numerous Valuation Issues Under Consideration
The legislatures in 36 states, the District of Columbia, Guam, the Northern Mariana Islands and the U.S. Virgin Islands are now in session. The Appraisal Institute’s Washington office continues to work with its chapters, regions and state coalitions to help shape public policy affecting AI professionals and the valuation profession.
Legislative activity so far this year includes:
- Illinois is considering HB 4410, legislation that would create a Real Estate Valuation Task Force charged with identifying specific causes of racial disparities in appraisals; evaluating whether barriers to entry to the valuation profession disproportionately effect minorities; and establishing “specific definitions for limited or inactive housing markets in which comparable sales are limited or unavailable … and establish greater flexibilities and guidance for appraisals conducted in such markets, such as the ability to consider market evidence for similar properties in other geographic areas.”
- Indiana is reviewing HB 1326, a bill that would require appraisers in the state to complete one hour of instruction in cultural competency training and at least one hour of instruction in implicit bias training as part of their initial qualifying education and as a condition for license renewal. The bill also makes it illegal for anyone to “make an excessively low appraisal or influence or attempt to influence another person to make an excessively low appraisal of the value of the real estate based on race, color, religion, sex, disability, familial status or national origin.” It would also prohibit excessively low appraisals based upon the demographic makeup of the neighborhood in which a property is located.
- Nebraska is considering LB 706, legislation that would authorize the use of Appraisal Qualifications Board-approved Practical Applications of Real Estate Appraisal programs, known as PAREA, to satisfy the experience hour requirements for licensure.
- Virginia is debating HB 284, a measure that would require the Virginia Real Estate Appraisal Board to ensure that appraisers complete at least two hours of fair housing courses as part of their appraiser continuing education.
- Wisconsin is reviewing SB 341 and AB 340, companion bills that would require any civil actions against real estate appraisers commence within five years of the date that an appraiser submitted the appraisal report to their client. The limitations do not apply to actions alleging fraud or concealment in the performance of appraisals.