SENATE COMMUNITY AND URBAN AFFAIRS COMMITTEE

STATEMENT TO

SENATE, No. 4030

STATE OF NEW JERSEY

DATED:  DECEMBER 6, 2021

      The Senate Community and Urban Affairs Committee reports favorably Senate Bill No. 4030.

      This bill concerns discriminatory appraisals of residential property on the basis of race or national origin.

      Under this bill, holders of appraisal licenses or certifications, or appraisal management company registrations, may have their licenses, certifications or registrations revoked or suspended, or be subject to fines, if the board determines, after an appropriate investigation, that the holder of the license, certification or registration has knowingly engaged in a discriminatory appraisal of a residential property on the basis of the property buyer or property seller’s race, creed, color, or national origin.

      If the board finds cause to suspend, revoke, or fine a holder of a license, certification, or registration, then the board is required to notify the holder of the board’s rationale in writing.  The board is also required to provide opportunity for a hearing to be held in accordance with the State’s Administrative Procedure Act.

      Additionally, prior to the initiation of a residential property appraisal, a holder of a license, certification or registration is to provide a property seller with a document, in a form and manner prescribed by the New Jersey Real Estate Appraiser Board, informing the property seller of the opportunity to report, through the Division of Consumer Affairs’ Internet website or telephone number, any suspicion of a discriminatory appraisal by the holder of a license, certification or registration on the basis of a property buyer or seller’s race, creed, color, or national origin.  Information concerning the prohibition of discriminatory appraisals of residential property, including the statutory basis for the prohibition, is to be published on the Division of Consumer Affairs’ Internet website.

      Finally, upon first interaction with a property buyer, this bill will require a licensed real estate broker, broker-salesperson, or salesperson to provide to the property buyer a document, prescribed by the New Jersey Real Estate Appraiser Board, informing the property buyer of the opportunity to report, through the Division of Consumer Affairs’ Internet website or telephone number, any suspicion of a discriminatory appraisal by the holder of a license, certification or registration on the basis of a property buyer or seller’s race, creed, color, or national origin..