Sacramento (CA) – Today, Governor Newsom signed Assemblymember Chris Holden’s legislation, AB 948 which would address discrimination in the real estate appraisal process.
“Black homeowners in predominately white neighborhoods are getting their homes appraised for far less than their neighbors,” said Assemblymember Chris Holden. “It’s just another example of how bias, whether explicit or implicit, creates inequity for Black Americans. This is redlining 2.0.”
AB 948 would require the Bureau of California Real Estate Appraisals to gather data on demographic information of buyers and sellers of real estate property and compile data of homeowners from protected classes who file complaints based on low appraisals. The legislation also requires appraisers to take anti-bias training when renewing their license.
In just one example, a Black couple in Marin City, had their home value lowballed by nearly $500,000. Similar incidents have been recorded throughout California and the Country.
“This bill reflects a starting point in a much needed conversation about how discrimination is still prevalent in the home buying and selling process, and I am committed to addressing this inequity,” said Holden.
Governor Newsom also signed AB 1297, authored by Holden, which expands the financing authority of the California Infrastructure and Economic Bank (IBank) to include housing projects, when the housing is necessary for the operation of the financed project.