HB 1297 — 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
 1   Amending the act of July 10, 1990 (P.L.404, No.98), entitled "An
 2      act providing for the certification of real estate
 3      appraisers; specifying requirements for certification;
 4      providing for sanctions and penalties; and making an
 5      appropriation," further providing for definitions and for
 6      powers and duties of board; and providing for bias and
 7      discrimination training, for prohibition of appraisal
 8      discrimination and for disparate impact study.
 9      The General Assembly of the Commonwealth of Pennsylvania
10   hereby enacts as follows:
11      Section 1.    Section 2 of the act of July 10, 1990 (P.L.404,
12   No.98), known as the Real Estate Appraisers Certification Act,
13   is amended by adding a definition to read:
14   Section 2.   Definitions.
15      The following words and phrases when used in this act shall
16   have the meanings given to them in this section unless the
17   context clearly indicates otherwise:
18      * * *
19      "Fair Housing Act."      The Fair Housing Act (Public Law 90-284,
20   42 U.S.C. § 3601 et seq.).
 1      * * *
 2      Section 2.         Section 5 of the act is amended by adding
 3   paragraphs to read:
 4   Section 5.      Powers and duties of board.
 5      The board shall have the following powers and duties:
 6            * * *
 7            (7.1)    To submit annually a report to the Professional
 8      Licensure Committee of the House of Representatives and the
 9      Consumer Protection and Professional Licensure Committee of
10      the Senate concerning the bias and discrimination training
11      required under section 10.1.
12            * * *
13            (12)    To conduct annually, in collaboration with the
14      Department of Community and Economic Development and the
15      Pennsylvania Housing Finance Agency, an audit of appraisal
16      issues statewide. The board shall provide any recommendations
17      included in the audit report to the Department of Community
18      and Economic Development for inclusion in the Department of
19      Community and Economic Development's analysis of impediments
20      to fair housing choice.
21      Section 3.         The act is amended by adding sections to read:
22   Section 10.1.         Bias and discrimination training.
23      (a)   Development of training.--The board, in consultation
24   with the Pennsylvania Human Relations Commission, shall develop
25   bias and discrimination training, to which the following shall
26   apply:
27            (1)    The training may be in person or online.
28            (2)    The training shall include:
29                   (i)    the history of discrimination and segregation
30            and the role of the appraisal industry in establishing

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 1            and perpetuating discrimination and segregation;
 2                (ii)    information about the costs of appraisal bias
 3            for families, communities, the housing industry and the
 4            Commonwealth, including the impact on the racial
 5            homeownership and wealth gaps;
 6                (iii)    an in-depth explanation of Federal fair
 7            housing laws, including the Fair Housing Act and Federal
 8            regulations, as well as the role of State and local
 9            housing laws;
10                (iv)    recent case examples that clearly identify fact
11            patterns representing illegal appraisal discrimination
12            and focusing on situations that are common and clearly
13            covered by the Fair Housing Act;
14                (v)    an explanation of how compliance with fair
15            housing laws and standards benefits the appraisal and
16            housing industry, consumers, communities and greater
17            society;
18                (vi)    best practices to ensure compliance with the
19            letter and spirit of applicable fair housing laws;
20                (vii)    instruction in cultural competency; and
21                (viii)    instruction in the elimination of bias,
22            including implicit bias.
23      (b)   Training required.--Prior to receiving or renewing a
24   certification or license under this act, an applicant must
25   complete the training developed under subsection (a).
26   Section 10.2.      Prohibition of appraisal discrimination.
27      (a)   Prohibition.--A licensee or certificate holder under
28   this act may not base, either partially or completely, an
29   analysis or opinion of market value on any of the following
30   related to either the present or prospective owners or occupants

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 1   of the subject property or of the present owners or occupants of
 2   the properties in the vicinity of the subject property:
 3            (1)    Race.
 4            (2)    Color.
 5            (3)    Religion.
 6            (4)    Gender or gender expression.
 7            (5)    Age.
 8            (6)    National origin.
 9            (7)    Disability.
10            (8)    Marital status.
11            (9)    Source of income.
12            (10)    Sexual orientation.
13            (11)    Familial status.
14            (12)    Employment status.
15            (13)    Military status.
16            (14)    Any other basis prohibited by section 3 of the act
17      of October 27, 1955 (P.L.744, No.222), known as the
18      Pennsylvania Human Relations Act.
19      (b)   Penalty.--
20            (1)    If the board finds that a licensee or certificate
21      holder under this act has violated this section:
22                   (i)    the discriminatory appraisal shall be void;
23                   (ii)    the licensee or certificate holder shall have
24            the license or certificate suspended;
25                   (iii)    the licensee or certificate holder shall pay a
26            fine that shall equal the cost of the discriminatory
27            appraisal;
28                   (iv)    the licensee or certificate holder must attend
29            an anti-bias seminar approved by the board, which shall
30            include information on existing antidiscrimination laws

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 1            and how they relate to housing and appraisals; and
 2                  (v)    the licensee or certificate holder shall pay a
 3            civil penalty not to exceed:
 4                         (A)   $10,000 for the first violation of this
 5                  section;
 6                         (B)   $25,000 for the second violation of this
 7                  section occurring within five years of the first
 8                  violation; and
 9                         (C)   $50,000 for a third or subsequent violation
10                  that occurs within seven years of the second
11                  violation.
12            (2)   A license or certification suspended under paragraph
13      (1)(ii) shall be restored if the licensee or certificate
14      holder:
15                  (i)    pays the fine under paragraph (1)(iii);
16                  (ii)    pays the civil penalty under paragraph (1)(v);
17            and
18                  (iii)    attends the anti-bias seminar under paragraph
19            (1)(iv).
20      (c)   Reporting.--The board shall:
21            (1)   Create a form by which property owners may report a
22      suspected violation of subsection (a), which shall be made
23      available on a publicly accessible Internet website.
24            (2)   Investigate each allegation reported under
25      subparagraph (1).
26      (d)   Notice.--Prior to the initiation of a property
27   appraisal, a licensee or certificate holder under this act shall
28   provide a property owner or agent of the property owner with a
29   document, given free of charge, informing the property owner or
30   agent of the property owner of the opportunity to report to the

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 1   board any suspicion of a discriminatory appraisal by the
 2   licensee or certificate holder.
 3   Section 10.3.    Disparate impact study.
 4      (a)   Study.--The board shall conduct a study to identify and
 5   make recommendations for the alleviation of elements of the
 6   appraisal industry that disparately impact individuals based on
 7   race, color or ethnicity. The board shall consider:
 8            (1)   qualification, examination, certification, licensure
 9      and other requirements that serve as barriers to entry to the
10      appraisal profession for potential appraisers based on race,
11      color or ethnicity, the business justification for those
12      requirements and whether there are less discriminatory
13      alternatives that can achieve the business interest;
14            (2)   how standard appraisal datasets and data collection
15      forms may be adjusted to reduce opportunities for appraisers
16      to apply subjective criteria;
17            (3)   how potential bias in the use of technology-based
18      valuation tools may be addressed;
19            (4)   how coordination between agencies involved in the
20      enforcement of and compliance with fair lending and fair
21      housing laws may be strengthened to address appraisal
22      discrimination;
23            (5)   how regulatory agency examination procedures of
24      mortgage lenders may include identification of patterns of
25      appraisal bias;
26            (6)   how information and resources relating to appraisal
27      bias may be made more available and accessible to consumers;
28      and
29            (7)   potential legislative solutions related to
30      paragraphs (1), (2), (3), (4), (5) and (6).

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 1      (b)   Issue report.--Within one year of the effective date of
 2   this subsection, the board shall issue a report of its findings
 3   and recommendations to:
 4            (1)   The Banking and Insurance Committee of the Senate.
 5            (2)   The Commerce Committee of the House of
 6      Representatives.
 7            (3)   The Community, Economic and Recreational Development
 8      Committee of the Senate.
 9            (4)   The Consumer Protection and Professional Licensure
10      Committee of the Senate.
11            (5)   The Consumer Protection, Technology and Utilities
12      Committee of the House of Representatives.
13            (6)   The Professional Licensure Committee of the House of
14      Representatives.
15            (7)   The Urban Affairs and Housing Committee of the
16      Senate.
17            (8)   The Housing and Community Development Committee of
18      the House of Representatives.
19      Section 4.    This act shall take effect in 60 days.




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