Pryor: National report lays out discrimination in appraisals, legislature fails to act

INDIANAPOLIS - State Representative Cherrish Pryor (D-Indianapolis) today released the following statement in response to a new federally-commissioned report from the National Fair Housing Alliance (NFHA):

“The NFHA report, the most comprehensive study of appraisal bias to date, raises serious concerns about discrimination in the residential real estate appraisal process. The report specifically calls out an instance of appraisal discrimination in Indiana as a reflection of a larger national trend.  

“Appraisers have the ultimate power to determine the value of a family’s most valuable financial asset, their home,” Pryor said. “This determination lays the foundation for a family’s future financial security and opportunity to build generational wealth. As the report lays out, too often racial and ethnic minorities are deprived of the wealth of their home due to implicit bias of the appraiser.

“My legislation, House Bill 1326 aligns with the NFHA’s policy roadmap to address bias in the appraisal process,” Pryor said. “It requires appraisers to complete cultural competence and implicit bias training and finally puts into statute that redlining is illegal. The bill also establishes a fund through the Indiana Housing and Community Development Authority (IHCDA) that will provide mortgage down payment assistance for families who have suffered from housing discrimination.”

According to the report, bias in the assessment has gotten worse over time with racial composition being a stronger determinant of home value in 2015 than it was in 1980.

“This report points out that the problem of discrimination in the home appraisal process is only getting worse with time,” Pryor added. “The legislature must intervene to ensure economic opportunities are available to all Hoosiers on an even playing field. 

“The findings in the NFHA report combined with recent reports pointing out  lending discrimination and redlining in our state, emphasize the need for the legislature to take swift action to address this in the 2022 session,” Pryor explained. “My legislative agenda this session is intended to put an end to historical housing discrimination, however the only way we can start to address these issues is if the legislature agrees to give the bills a hearing and pass them.

“With only one week of committee hearings left, I encourage citizens to contact their legislators to emphasize the need for legislation to address housing discrimination.”