SB2688 103RD GENERAL ASSEMBLY

LRB103 36032 SPS 66119 b

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.

A BILL FOR

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Findings and purpose.

(a) The General Assembly finds that:

(1) in Cook County, approximately 120 out of every 1,000 homes sold in mostly Black neighborhoods and approximately 102 out of every 1,000 homes sold in mostly Latino or Hispanic neighborhoods are underappraised, compared to approximately 70 out of every 1,000 homes sold in mostly white neighborhoods;

(2) studies conducted throughout Illinois have found that Black homes are historically underappraised compared to white homes of equivalent amenities;

(3) underappraisals lead to an unjust devaluing of property that represents an obstacle to social mobility for many Black families who are unable to get a fair return on their investment, perpetuating the wealth gap; and

(4) many states and national organizations have called for the implementation of valuation bias training and fair housing laws training to combat discrimination in appraisals.

(b) The purpose of this Act is to:

(1) mandate valuation bias training and fair housing laws training in continuing education requirements for real estate appraisal licensure in Illinois; and

(2) eliminate discrimination in housing appraisals in Illinois.

Section 5. The Real Estate Appraiser Licensing Act of 2002 is amended by adding Section 5-46 as follows:

(225 ILCS 458/5-46 new)

Sec. 5-46. Continuing education on valuation bias and fair housing laws.

(a) As used in this Section, "valuation bias" means to explicitly, implicitly, or structurally select and apply data to an appraisal methodology or technique in a biased manner that harms a class protected by the federal Fair Housing Act, as amended.

(b) For license renewals under this Act occurring on or after January 1, 2025, the Department shall require that the continuing education requirements include at least 2 hours of instruction concerning the elimination of valuation bias.

(c) For license renewals under this Act 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. When approving continuing education courses under this subsection, the Department may consider recommended criteria outlined in Part II, Section D of the report titled "Identifying Bias and Barriers, Promoting Equity: An Analysis of the USPAP Standards and Appraiser Qualifications Criteria" published by the National Fair Housing Alliance in January 2022.

(d) The Department may adopt rules to implement and administer this Section.

Section 99. Effective date. This Act takes effect upon becoming law.