Summary of Assembly Resolution AR 40
Bill Number: AR 40 (New Jersey)
Title: Recognizes United States Department of Housing and Urban Development Secretary Marcia L. Fudge for leadership in ending bias in home valuation through the Interagency Task Force on Property Appraisal and Valuation Equity (PAVE) initiative.
Status and timeline
- Introduced: January 9, 2024
- Status: Introduced in the Assembly, referred to the Assembly Housing Committee
- Type: Resolution (commemorative)
Purpose and intent
- The resolution honors and commends HUD Secretary Marcia L. Fudge for leadership in addressing bias in home valuation.
- It highlights the Interagency Task Force on Property Appraisal and Valuation Equity (PAVE) as a key initiative within HUD’s efforts to identify discrimination and promote equity in property appraisals, particularly for homes financed with FHA mortgage insurance.
Key provisions
- Section 1: The New Jersey General Assembly recognizes Secretary Marcia L. Fudge for leadership in ending bias in home valuation through PAVE.
- Section 2: Requires that copies of the resolution, once filed with the Secretary of State, be transmitted to the President, the Vice President, and the HUD Secretary.
- The language reflects a commemorative acknowledgment rather than new regulatory or fiscal obligations.
Background and rationale
- HUD’s mission in promoting accessible, affordable, and equitable homeownership is emphasized.
- Cites a 2022 Brookings Institution study showing significant undervaluation of homes in predominantly Black neighborhoods (roughly 21–23%), with an estimated total valuation loss of about $162 billion across 113 metro areas.
- Describes PAVE as an interagency effort to end bias in home valuation and to drive systemic change in property appraisals securing FHA-insured mortgages.
- Notes HUD’s stance that parties involved in FHA mortgage insurance should eliminate consideration of race, color, national origin, religion, sex, familial status, or disability from the appraisal process.
- Mentions a HUD/FHA process allowing individuals financing with FHA to request a review of their appraisal if bias is suspected, as part of efforts to ensure fair valuations.
Impact and affected parties
- Primarily symbolic and ceremonial in nature; it does not create new state law or funding obligations.
- Acknowledges and aligns New Jersey’s legislative stance with federal efforts to reduce appraisal bias.
- Aims to elevate awareness of PAVE and promote continued attention to equitable home valuation practices.
Procedural notes
- As a resolution, its effect is commemorative and informational; it does not establish new programs or funding at the state level.
- Next steps would depend on the Assembly’s process and potential passage within the Housing Committee and the full Assembly.
Overall, AR 40 serves to recognize federal leadership on property appraisal equity and to signal support for ongoing efforts to eliminate racial bias in home valuations.
