An Act amending the act of July 10, 1990 (P.L.404, No.98), known as the Real Estate Appraisers Certification Act, further providing for definitions and for powers and duties of board; and providing for bias and discrimination training, for prohibition of appraisal discrimination and for disparate impact study.

PRINTER'S NO. 1493
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1297
Session of
2025
INTRODUCED BY MAYES, CEPHAS, GIRAL, SANCHEZ, BURGOS, HOHENSTEIN,
KHAN, MADDEN, HANBIDGE, D. WILLIAMS, SHUSTERMAN, BELLMON,
SCHLOSSBERG AND GREEN, APRIL 28, 2025
REFERRED TO COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT,
APRIL 28, 2025
AN ACT
Amending the act of July 10, 1990 (P.L.404, No.98), entitled "An
act providing for the certification of real estate
appraisers; specifying requirements for certification;
providing for sanctions and penalties; and making an
appropriation," further providing for definitions and for
powers and duties of board; and providing for bias and
discrimination training, for prohibition of appraisal
discrimination and for disparate impact study.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 2 of the act of July 10, 1990 (P.L.404,
No.98), known as the Real Estate Appraisers Certification Act,
is amended by adding a definition to read:
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
"Fair Housing Act." The Fair Housing Act (Public Law 90-284,
42 U.S.C. § 3601 et seq.).
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* * *
Section 2. Section 5 of the act is amended by adding
paragraphs to read:
Section 5. Powers and duties of board.
The board shall have the following powers and duties:
* * *
(7.1) To submit annually a report to the Professional
Licensure Committee of the House of Representatives and the
Consumer Protection and Professional Licensure Committee of
the Senate concerning the bias and discrimination training
required under section 10.1.
* * *
(12) To conduct annually, in collaboration with the
Department of Community and Economic Development and the
Pennsylvania Housing Finance Agency, an audit of appraisal
issues statewide. The board shall provide any recommendations
included in the audit report to the Department of Community
and Economic Development for inclusion in the Department of
Community and Economic Development's analysis of impediments
to fair housing choice.
Section 3. The act is amended by adding sections to read:
Section 10.1. Bias and discrimination training.
(a) Development of training.--The board, in consultation
with the Pennsylvania Human Relations Commission, shall develop
bias and discrimination training, to which the following shall
apply:
(1) The training may be in person or online.
(2) The training shall include:
(i) the history of discrimination and segregation
and the role of the appraisal industry in establishing
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and perpetuating discrimination and segregation;
(ii) information about the costs of appraisal bias
for families, communities, the housing industry and the
Commonwealth, including the impact on the racial
homeownership and wealth gaps;
(iii) an in-depth explanation of Federal fair
housing laws, including the Fair Housing Act and Federal
regulations, as well as the role of State and local
housing laws;
(iv) recent case examples that clearly identify fact
patterns representing illegal appraisal discrimination
and focusing on situations that are common and clearly
covered by the Fair Housing Act;
(v) an explanation of how compliance with fair
housing laws and standards benefits the appraisal and
housing industry, consumers, communities and greater
society;
(vi) best practices to ensure compliance with the
letter and spirit of applicable fair housing laws;
(vii) instruction in cultural competency; and
(viii) instruction in the elimination of bias,
including implicit bias.
(b) Training required.--Prior to receiving or renewing a
certification or license under this act, an applicant must
complete the training developed under subsection (a).
Section 10.2. Prohibition of appraisal discrimination.
(a) Prohibition.--A licensee or certificate holder under
this act may not base, either partially or completely, an
analysis or opinion of market value on any of the following
related to either the present or prospective owners or occupants
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of the subject property or of the present owners or occupants of
the properties in the vicinity of the subject property:
(1) Race.
(2) Color.
(3) Religion.
(4) Gender or gender expression.
(5) Age.
(6) National origin.
(7) Disability.
(8) Marital status.
(9) Source of income.
(10) Sexual orientation.
(11) Familial status.
(12) Employment status.
(13) Military status.
(14) Any other basis prohibited by section 3 of the act
of October 27, 1955 (P.L.744, No.222), known as the
Pennsylvania Human Relations Act.
(b) Penalty.--
(1) If the board finds that a licensee or certificate
holder under this act has violated this section:
(i) the discriminatory appraisal shall be void;
(ii) the licensee or certificate holder shall have
the license or certificate suspended;
(iii) the licensee or certificate holder shall pay a
fine that shall equal the cost of the discriminatory
appraisal;
(iv) the licensee or certificate holder must attend
an anti-bias seminar approved by the board, which shall
include information on existing antidiscrimination laws
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and how they relate to housing and appraisals; and
(v) the licensee or certificate holder shall pay a
civil penalty not to exceed:
(A) $10,000 for the first violation of this
section;
(B) $25,000 for the second violation of this
section occurring within five years of the first
violation; and
(C) $50,000 for a third or subsequent violation
that occurs within seven years of the second
violation.
(2) A license or certification suspended under paragraph
(1)(ii) shall be restored if the licensee or certificate
holder:
(i) pays the fine under paragraph (1)(iii);
(ii) pays the civil penalty under paragraph (1)(v);
and
(iii) attends the anti-bias seminar under paragraph
(1)(iv).
(c) Reporting.--The board shall:
(1) Create a form by which property owners may report a
suspected violation of subsection (a), which shall be made
available on a publicly accessible Internet website.
(2) Investigate each allegation reported under
subparagraph (1).
(d) Notice.--Prior to the initiation of a property
appraisal, a licensee or certificate holder under this act shall
provide a property owner or agent of the property owner with a
document, given free of charge, informing the property owner or
agent of the property owner of the opportunity to report to the
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board any suspicion of a discriminatory appraisal by the
licensee or certificate holder.
Section 10.3. Disparate impact study.
(a) Study.--The board shall conduct a study to identify and
make recommendations for the alleviation of elements of the
appraisal industry that disparately impact individuals based on
race, color or ethnicity. The board shall consider:
(1) qualification, examination, certification, licensure
and other requirements that serve as barriers to entry to the
appraisal profession for potential appraisers based on race,
color or ethnicity, the business justification for those
requirements and whether there are less discriminatory
alternatives that can achieve the business interest;
(2) how standard appraisal datasets and data collection
forms may be adjusted to reduce opportunities for appraisers
to apply subjective criteria;
(3) how potential bias in the use of technology-based
valuation tools may be addressed;
(4) how coordination between agencies involved in the
enforcement of and compliance with fair lending and fair
housing laws may be strengthened to address appraisal
discrimination;
(5) how regulatory agency examination procedures of
mortgage lenders may include identification of patterns of
appraisal bias;
(6) how information and resources relating to appraisal
bias may be made more available and accessible to consumers;
and
(7) potential legislative solutions related to
paragraphs (1), (2), (3), (4), (5) and (6).
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(b) Issue report.--Within one year of the effective date of
this subsection, the board shall issue a report of its findings
and recommendations to:
(1) The Banking and Insurance Committee of the Senate.
(2) The Commerce Committee of the House of
Representatives.
(3) The Community, Economic and Recreational Development
Committee of the Senate.
(4) The Consumer Protection and Professional Licensure
Committee of the Senate.
(5) The Consumer Protection, Technology and Utilities
Committee of the House of Representatives.
(6) The Professional Licensure Committee of the House of
Representatives.
(7) The Urban Affairs and Housing Committee of the
Senate.
(8) The Housing and Community Development Committee of
the House of Representatives.
Section 4. This act shall take effect in 60 days.
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