Urging the United States House of Representatives to pass H.R. 2553, also known as the Real Estate Valuation Fairness and Improvement Act of 2021.

WHEREAS, On April 16, 2021, Rep. Emanuel Cleaver (D-MO) and Rep. Ritchie Torres (D-NY) introduced the Real Estate Valuation Fairness and Improvement Act of 2021, to address racial disparities in the residential and commercial real estate appraisal profession; and

WHEREAS, Specifically, the act would establish an interagency Task Force to analyze federal collateral underwriting standards and provide more funding for programs that promote diversity and inclusion; and

WHEREAS, The Task Force on real estate valuation would be comprised of stakeholders from various federal agencies; and

WHEREAS, This Task Force would work toward addressing six key areas:

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Harmonizing collateral underwriting standards, covering both appraisals and property valuation alternatives;

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Addressing areas where harmonization cannot occur, in a report to Congress;

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Establishing specific definitions for limited or inactive markets where there is a dearth of comparable sales data;

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Aggregating Task Force member data to determine whether and to what extent racial disparities exist in the value of homes used as lending collateral;

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Where they exist, identify and address causes of racial disparities or, where more statutory authority is required, report as such to Congress;

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Evaluating barriers to entry into the appraisal profession, such as the minimum qualifications established by the Appraiser Qualifications Board; and

WHEREAS, The Task Force would also establish an advisory committee of various stakeholders in the appraisal, lending, civil rights, and consumer rights spaces; and

WHEREAS, The Act also provides grant funding to be administered by the Appraisal Subcommittee to state agencies, nonprofit organizations, and institutions of higher education to promote diversity and inclusion in the appraisal profession, and for appraiser education to address implicit bias; and

WHEREAS, On April 20, 2021, The House Financial Services Committee approved H.R. 2553. The bill now moves to a full House vote, but no date has been set; and

WHEREAS, It is abundantly clear that there are “race gaps” when it comes to home appraisals in this country, and one of the reasons may be the overall lack of diversity in the appraisal industry. Any efforts to diversify this industry should be supported; now, therefore, be it

RESOLVED, THAT THE COUNCIL OF THE CITY OF PHILADELPHIA, Hereby urges the United States House of Representatives to pass H.R. 2553, also known as the Real Estate Valuation Fairness and Improvement Act of 2021.

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