NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6869
SPONSOR: Alvarez TITLE OF BILL:
An act to amend the executive law and the state finance law, in relation
to discriminatory practices by real estate appraisers and further fair
housing compliance
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to strengthen anti-discrimination
protections in real estate appraisals by prohibiting biased property
valuations and expanding penalties for violations.
SUMMARY OF PROVISIONS:
Section one of this bill would add a new subdivision defining "real
estate appraisal" to align with the existing definition in Executive Law
§ 160-a subdivision 2. This provision also specifies that appraisals
encompass those conducted by individuals or businesses presenting them-
selves as appraisers, regardless of licensure. It further includes all
oral and written communications used to support an appraisal value.
Section two would add a new paragraph to § 296 of the Executive Law by
prohibiting the denial of real estate appraisal services or alter valu-
ations based on protected classes such as race, religion, sexual orien-
tation, age, disability, etc. The protection extends to
current/prospective property owners and neighbors of the property being
appraised. Strengthening fair housing protections by preventing discri-
minatory appraisals and ensuring property values are not affected by
unlawful biases.
Section three would expand on the disciplinary measures for appraisers
by adding the authority to impose monetary fines, in addition to exist-
ing powers to suspend or revoke licenses.
Section four of this bill would amend the disciplinary process, author-
izing the Department of State to investigate appraisers by allowing them
to sanction or discipline, the department can impose fines up to $2,000,
with 50% of fines directed to the Anti-Discrimination in Housing Fund.
Section five makes technical changes, by replacing gender-specific
language in compliance with Chapter 21 of the Laws of New York of 2024.
Section six would amend the disciplinary measures by introducing fines
for violations while maintaining existing penalties (reprimands, suspen-
sions, and revocations). The language also replaces gender-specific
terms with gender-neutral language.
Section seven would include the expansion of funds received by the Anti-
Discrimination in Housing Fund, which states that 50% of fines from
appraiser violations and 50% of fines from certain real estate
violations will support fair housing testing, education, investigations,
and addressing discriminatory appraisals.
Section eight would establish the severability clause, stating that if
any part of the law is found invalid, the remaining provisions remain in
effect.
Section nine would establish the effective date.
JUSTIFICATION:
This bill strengthens anti-discrimination protections in real estate
appraisals by explicitly prohibiting biased valuations based on
protected characteristics and expanding enforcement measures.
Originally introduced as a budget proposal from the Executive without an
appropriation, the policy issue remains critical and warranted stand-
alone legislative action.
Discriminatory appraisal practices contribute to systemic wealth dispar-
ities and limit fair access to homeownership. This bill ensures account-
ability by imposing fines for violations, directing a portion of those
fines to the Anti-Discrimination in Housing Fund, and modernizing disci-
plinary procedures. By clarifying the definition of appraisals and rein-
forcing fair housing protections, this legislation helps safeguard home-
owners and buyers from unfair valuation practices.
PRIOR LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
TBD
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
6869
2025-2026 Regular Sessions
IN ASSEMBLY
March 14, 2025
___________
Introduced by M. of A. ALVAREZ -- read once and referred to the Commit-
tee on Governmental Operations
AN ACT to amend the executive law and the state finance law, in relation
to discriminatory practices by real estate appraisers and further fair
housing compliance
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 292 of the executive law is amended by adding a new
2 subdivision 42 to read as follows:
3 42. The term "real estate appraisal" shall have the same meaning as in
4 subdivision two of section one hundred sixty-a of this chapter.
5 Provided, however, that (a) real estate appraisals subject to this arti-
6 cle include those performed by any person or entity whose business holds
7 itself out as engaging in residential real estate appraisals, regardless
8 of whether or not such person or entity is certified or licensed to
9 provide real estate appraisals pursuant to the provisions of article
10 six-E of this chapter, and (b) for the purposes of this article, the
11 real estate appraisal includes all oral communications and all written
12 comments and other documents submitted as support for the estimate,
13 opinion of value, or analysis.
14 § 2. Subdivision 5 of section 296 of the executive law is amended by
15 adding a new paragraph (h) to read as follows:
16 (h) It shall be an unlawful discriminatory practice for any person to
17 discriminate against any individual in making real estate appraisal
18 services available or to base a real estate appraisal, estimate, or
19 opinion of value on the race, creed, color, national origin, citizen-
20 ship or immigration status, sexual orientation, gender identity or
21 expression, military status, sex, age, disability, marital status,
22 status as a victim of domestic violence, lawful source of income, or
23 familial status of either the prospective owners or occupants of the
24 real property, the present owners or occupants of the real property, or
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11019-01-5
A. 6869 2
1 the present owners or occupants of the real properties in the vicinity
2 of the property. Nothing in this section shall prohibit a real estate
3 appraiser from taking into consideration factors other than race, creed,
4 color, national origin, citizenship or immigration status, sexual orien-
5 tation, gender identity or expression, military status, sex, age, disa-
6 bility, marital status, status as a victim of domestic violence, lawful
7 source of income, or familial status.
8 § 3. Subdivision 9 of section 160-e of the executive law, as amended
9 by chapter 397 of the laws of 1991, is amended to read as follows:
10 9. To suspend and revoke certificates or licenses or impose fines
11 pursuant to the disciplinary proceedings provided for in this article.
12 § 4. The opening paragraph of subdivision 1 of section 160-u of the
13 executive law, as amended by chapter 397 of the laws of 1991, is amended
14 to read as follows:
15 The rights of any holder under a state certificate as a state certi-
16 fied real estate appraiser, or a license as a state licensed real estate
17 appraiser, may be revoked or suspended, or the holder of the certif-
18 ication or license may be otherwise disciplined in accordance with the
19 provisions of this article, upon any of the grounds set forth in this
20 section. As an alternative or in addition to such suspension or revoca-
21 tion, a fine not exceeding two thousand dollars may be imposed on any
22 holder of the certification or license, provided that fifty percent of
23 all moneys received by the department of state for such fines shall be
24 payable to the anti-discrimination in housing fund established pursuant
25 to section eighty-a of the state finance law. The department may inves-
26 tigate the actions of a state certified or licensed real estate
27 appraiser, and may [revoke or suspend the rights of] sanction or other-
28 wise discipline a certificate or license holder [or otherwise discipline
29 a state certified or licensed real estate appraiser] for any of the
30 following acts or omissions:
31 § 5. Subdivision 1 of section 160-v of the executive law, as amended
32 by chapter 241 of the laws of 1999, is amended to read as follows:
33 1. Before suspending or revoking any certification or license or
34 imposing any fines on a holder of a certification or license, the
35 department shall notify the state certified or licensed real estate
36 appraiser or licensed real estate appraiser assistant in writing of any
37 charges made at least twenty days prior to the date set for the hearing
38 and shall afford [him or her] such real estate appraiser or such real
39 estate appraiser assistant an opportunity to be heard in person or by
40 counsel.
41 § 6. Subdivision 2 of section 160-w of the executive law, as amended
42 by chapter 241 of the laws of 1999, is amended to read as follows:
43 2. If the department determined that a state certified or licensed
44 real estate appraiser or licensed real estate appraiser assistant is
45 guilty of a violation of any of the provisions of this article, it shall
46 prepare a finding of fact and recommend that such appraiser be repri-
47 manded [or], that [his or her] their certification or license be
48 suspended or revoked, and/or indicate whether a fine shall be imposed.
49 The decision and order of the department shall be final.
50 § 7. Subdivisions 2 and 3 of section 80-a of the state finance law,
51 subdivision 2 as added by chapter 687 of the laws of 2021 and subdivi-
52 sion 3 as amended by chapter 89 of the laws of 2022, are amended to read
53 as follows:
54 2. The anti-discrimination in housing fund shall consist of moneys
55 appropriated thereto, moneys transferred from any other fund or sources,
56 fifty percent of all fines and forfeitures collected pursuant to subdi-
A. 6869 3
1 vision one of section one hundred sixty-u of the executive law, and
2 fifty percent of all fines and forfeitures collected pursuant to para-
3 graph (a) of subdivision one of section four hundred forty-one-c of the
4 real property law. Nothing contained in this section shall prevent the
5 state from receiving grants, gifts or bequests for the purposes of the
6 fund as defined in this section and depositing them into the fund
7 according to law.
8 3. The moneys in the anti-discrimination in housing fund shall be kept
9 separate from and shall not be commingled with any other moneys in the
10 custody of the state comptroller. Such moneys shall be made available to
11 the office of the attorney general, for [fair housing testing] programs
12 assisting with fair housing compliance, which includes, but is not
13 limited to, fair housing testing, outreach and education on fair housing
14 protections, addressing and investigating fair housing allegations and
15 complaints, and addressing discrimination in appraisals, including new
16 appraisals and appraisal review, through allocation of grants to duly
17 applying county, city, town or village human rights commissions, or
18 other duly applying county, city, town, village or not-for-profit enti-
19 ties specializing in the prevention of unlawful discrimination in hous-
20 ing, to detect unlawful discrimination in housing.
21 § 8. Severability. If any provision of this act, or any application of
22 any provision of this act, is held to be invalid, that shall not affect
23 the validity or effectiveness of any other provision of this act, or of
24 any other application of any provision of this act, which can be given
25 effect without that provision or application; and to that end, the
26 provisions and applications of this act are severable.
27 § 9. This act shall take effect immediately.
