The unwarranted stigma of lower land values can also make an area less attractive for business investment, creating a cycle of divestment that hurts job prospects and further harms a community.
While it’s been known for decades that discriminatory housing practices have hurt people of color, there’s still a lot of work to do to begin to eliminate that pain. This is where the Real Estate Appraisal Task Force, House Bill 4410, comes in.
As part of my proposal, representatives from state agencies, financial institutions, fair housing organizations, and consumer advocacy groups will come together to study and determine whether there are racial disparities both in of the borrower and at community level of real estate. If so, they will be responsible for developing legislative recommendations that can address the root causes of these disparities.
State agencies would also be the focus of the review, with the task force expected to examine ways to standardize various collateral underwriting standards, valuation guidance, automated valuation models and other relevant topics.
The task force will also assess whether there are barriers that disproportionately prevent minorities from entering the appraisal profession.
Throughout this process, the Real Estate Appraisal Task Force will need to consult and receive input from civil rights advocates, consumer advocates, real estate appraisers, small lenders, trade groups, property management companies assessments, experts in alternative assessment models and organizations that adopt assessment criteria and assessor qualification.
It will be a thorough process, which I hope will spark creative ideas that can lead to real solutions to the challenges faced by minority communities. State agencies will have the ability to recognize and implement immediate fixes. For suggestions that require statutory changes, I am ready and willing to take those proposals through the legislative process.
Under the leadership of Senator Mattie Hunter and the support of my colleagues, this proposal has already received strong bipartisan support in both houses of the General Assembly. I expect it to be approved by Governor JB Pritzker soon.
We can’t solve real estate discrimination overnight, but I’m optimistic we’re on the right track.
Rep. lamont robinson is a Democrat who represents Chicago’s 5th District in the Illinois General Assembly.