103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2688

 

Introduced 1/10/2024, by Sen. Adriane Johnson

 

SYNOPSIS AS INTRODUCED:
 
225 ILCS 458/5-46 new

    Amends the Real Estate Appraiser Licensing Act of 2002. Provides that, for license renewals occurring on or after January 1, 2025, the Department of Financial and Professional Regulation shall require that the continuing education requirements include at least 2 hours of instruction concerning the elimination of valuation bias. Provides that, for license renewals occurring on or after January 1, 2025, the Department shall require that the continuing education requirements include at least 2 hours of instruction in federal, State, and municipal fair housing laws. Provides that the Department may adopt rules to implement and administer the provisions. Effective immediately.


LRB103 36032 SPS 66119 b

 

 

A BILL FOR

 

SB2688LRB103 36032 SPS 66119 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Findings and purpose.
5    (a) The General Assembly finds that:
6        (1) in Cook County, approximately 120 out of every
7    1,000 homes sold in mostly Black neighborhoods and
8    approximately 102 out of every 1,000 homes sold in mostly
9    Latino or Hispanic neighborhoods are underappraised,
10    compared to approximately 70 out of every 1,000 homes sold
11    in mostly white neighborhoods;
12        (2) studies conducted throughout Illinois have found
13    that Black homes are historically underappraised compared
14    to white homes of equivalent amenities;
15        (3) underappraisals lead to an unjust devaluing of
16    property that represents an obstacle to social mobility
17    for many Black families who are unable to get a fair return
18    on their investment, perpetuating the wealth gap; and
19        (4) many states and national organizations have called
20    for the implementation of valuation bias training and fair
21    housing laws training to combat discrimination in
22    appraisals.
23    (b) The purpose of this Act is to:
24        (1) mandate valuation bias training and fair housing

 

 

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1    laws training in continuing education requirements for
2    real estate appraisal licensure in Illinois; and
3        (2) eliminate discrimination in housing appraisals in
4    Illinois.
 
5    Section 5. The Real Estate Appraiser Licensing Act of 2002
6is amended by adding Section 5-46 as follows:
 
7    (225 ILCS 458/5-46 new)
8    Sec. 5-46. Continuing education on valuation bias and fair
9housing laws.
10    (a) As used in this Section, "valuation bias" means to
11explicitly, implicitly, or structurally select and apply data
12to an appraisal methodology or technique in a biased manner
13that harms a class protected by the federal Fair Housing Act,
14as amended.
15    (b) For license renewals under this Act occurring on or
16after January 1, 2025, the Department shall require that the
17continuing education requirements include at least 2 hours of
18instruction concerning the elimination of valuation bias.
19    (c) For license renewals under this Act occurring on or
20after January 1, 2025, the Department shall require that the
21continuing education requirements include at least 2 hours of
22instruction in federal, State, and municipal fair housing
23laws. When approving continuing education courses under this
24subsection, the Department may consider recommended criteria

 

 

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1outlined in Part II, Section D of the report titled
2"Identifying Bias and Barriers, Promoting Equity: An Analysis
3of the USPAP Standards and Appraiser Qualifications Criteria"
4published by the National Fair Housing Alliance in January
52022.
6    (d) The Department may adopt rules to implement and
7administer this Section.
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.