Illinois Senate Bill SB2688

Illinois 2023-2024 Regular Session

• Introduced: 1/10/24
• Refer: 1/10/24
• Refer: 1/31/24
• Refer: 3/15/24

Caption

REAL ESTATE-CONT EDUCATION

Impact

The bill responds to considerable disparities in the appraisal of homes based on race, as outlined in its findings. Notably, homes in predominantly Black neighborhoods in Cook County face higher rates of underappraisal compared to those in majority white areas. This disparity contributes to systemic issues such as the wealth gap and limited social mobility for affected communities. By requiring mandatory training, the bill aims to improve the standards and ethics associated with real estate appraisals.

Summary

SB2688 aims to address valuation bias in real estate appraisal practices within the state of Illinois. It amends the Real Estate Appraiser Licensing Act of 2002, mandating that starting January 1, 2025, continuing education for license renewals must include 2 hours of instruction focused on the elimination of valuation bias and an additional 2 hours on federal, state, and municipal fair housing laws. The overarching goal of this bill is to foster a more equitable appraisal environment and to combat discriminatory appraisal practices, particularly relating to properties in minority neighborhoods.

Contention

While the bill has broad support aimed at reducing discrimination in appraisals, there may be concerns regarding the effectiveness of mandated training. Opponents might argue that training alone does not address the deeper systemic issues contributing to valuation bias and that more robust policy measures are necessary to create real change. Additionally, there could be discussions about the regulatory burden placed on appraisers and how these reforms might impact real estate transactions and the overall housing market.