New Jersey Assembly Bill AR40

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

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.

Impact

The resolution aligns with ongoing efforts by HUD to promote affordable homeownership and address the systemic undervaluation of properties in neighborhoods that have historically suffered from bias. Citing a study from the Brookings Institution, it notes that homes in these areas are estimated to be undervalued by 21 to 23 percent compared to properties in less diverse neighborhoods, resulting in significant financial disadvantages for black homeowners. This underscores the importance of equitable practices to ensure fair access to home equity and the ability to build generational wealth.

Summary

Assembly Resolution No. 40 recognizes the significant contributions made by United States Department of Housing and Urban Development (HUD) Secretary Marcia L. Fudge in addressing bias in home valuation through the Interagency Task Force on Property Appraisal and Valuation Equity (PAVE) initiative. The resolution, introduced in the New Jersey Assembly, highlights the need for equitable treatment in property appraisal processes, particularly focusing on eradicating racial bias that affects housing values in predominantly black neighborhoods.

Contention

Notations in the resolution indicate that Secretary Fudge's leadership in the PAVE initiative intends to bring systemic change to appraisals used for FHA-insured mortgages, aiming for full elimination of discriminatory practices. The emphasis on eliminating appraisals based on racial, ethnic, or other biases speaks to a broader aim of comprehensive equity in housing, which may face both political support and opposition as stakeholders assess the implications for long-standing industry practices. Furthermore, it highlights ongoing actions and resources made available to address and rectify instances of perceived bias in home valuation.

Recognition

This Assembly resolution thus serves not only as recognition of Secretary Fudge’s efforts but also as a call to action for sustaining focus on equitable housing policies. The acknowledgment sets a precedent for legislative bodies to support initiatives that ensure fair housing practices and reflect the state's commitment to remedying historical injustices in property valuation and ownership over time.