Subcommittee backs study group on appraisal bias and valuation equity, referring recommendations to appropriations

The General Laws Housing Consumer Protection Subcommittee voted to report House Bill 1932, a measure that establishes a task force to examine appraisal bias and disparities in property valuation and to make recommendations to the governor and General Assembly.

Sponsor-backed language notes research showing systematic undervaluation of homes in majority-minority neighborhoods and seeks to create a task force with representatives from government, real estate, banking, consumer advocates and appraiser associations. The task force would study causes of appraisal bias, explore tools for reconsideration of value, evaluate automated valuation models and recommend ways to increase diversity among appraisers and improve oversight.

Housing advocates supported the proposal. Laura Dodds of Housing Opportunities Made Equal told the committee that ‘‘we want leaning experts in the work group at all levels to ensure that not only are we changing looking at the regulations for appraisers... but also how reconsiderations are done,’’ adding the current reconsideration process is costly and difficult for homeowners.

Multiple witnesses described wide-ranging harms from undervaluation, including wealth disparities, and several provided personal accounts of low appraisals. The subcommittee moved the bill and referred it to the Appropriations Committee; the clerk recorded the report by a recorded vote of 6 to 2.

Supporters argued the task force would provide a coordinated, technical venue to evaluate appraisal practices, reconsideration procedures and automated valuation tools. The measure requires a report to the governor and General Assembly with recommendations for legislative or regulatory action.