Governor Phil Murphy | Official website of Phil Murphy
Governor Phil Murphy | Official website of Phil Murphy
Acting Governor Tahesha Way has signed a new law in New Jersey aimed at eliminating discrimination in real estate appraisals. The legislation mandates anti-bias training for appraisers and updates the Real Estate Appraisal Act to prohibit considering personal characteristics such as race, color, religion, and other protected attributes when determining property value.
The law is enforced by the Appraisal Qualifications Board and aligns with efforts like the Division on Civil Rights' Home Appraisal Discrimination Initiative. It offers property owners various ways to address appraisal discrimination.
Acting Governor Way emphasized fair treatment in homeownership: “When buying or owning a home in New Jersey, we must strive to provide our residents with fair and equal treatment.” Attorney General Matthew J. Platkin highlighted the importance of this step for community stability and wealth creation: “Discrimination in the housing appraisal industry has prevented far too many – particularly people of color – from acquiring the benefits of community stability and wealth creation through homeownership.”
Cari Fais, Acting Director of the Division of Consumer Affairs, noted that the legislation confronts appraisal bias directly: “The legislation signed into law today confronts the problem of appraisal bias head-on.” Sundeep Iyer, Director of the Division on Civil Rights, remarked on its significance for combating barriers to homeownership: “The signing of this legislation will play an important role in the ongoing fight to tackle barriers to homeownership.”
The bill's primary sponsors include Assemblywoman Lopez, Assemblywoman Reynolds-Jackson, Assemblywoman McCoy, Senator Pou, and Senator Ruiz. Senate Majority Leader M. Teresa Ruiz pointed out how these practices affect low-income communities: “Roadblocks within the housing industry are extremely detrimental to low-income communities.”
Assemblywoman Verlina Reynolds-Jackson stressed the importance of unbiased evaluations: "Mandating anti-bias training for real estate appraisals is crucial if we want to ensure fair property valuation." Assemblywoman Tennille McCoy described it as a victory for fair appraisals free from bias.
Assemblywoman Yvonne Lopez expressed satisfaction with New Jersey's proactive measures against discrimination: "In the aftermath of widespread reports...I am glad that New Jersey has taken a step in protecting consumers."
Laura Sullivan from the New Jersey Institute for Social Justice called it crucial for reducing racial disparities: "Home appraisal discrimination strips wealth from Black and other families of color." Staci Berger from Housing and Community Development Network praised efforts toward closing NJ’s racial wealth gap.
Beverly Brown Ruggia from New Jersey Citizen Action noted that holding appraisers accountable helps ensure proper property valuation. Adam Gordon from Fair Share Housing Center emphasized addressing multi-generational harms caused by appraisal bias.
Diane Yentel from NLIHC acknowledged ongoing discriminatory practices despite existing laws like the Fair Housing Act. Jesse Van Tol from National Community Reinvestment Coalition highlighted this reform as an example for others to follow.