BILL NUMBER: S7320
SPONSOR: KAVANAGH
 
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
section 160-a subdivision 2. This provision also specifies that
appraisals encompass those conducted by individuals or businesses
presenting themselves 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 section 296 of the Executive
Law by prohibiting the denial of real estate appraisal services or alter
valuations based on protected classes such as race, religion, sexual
orientation, 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:
This is a new bill.
 
FISCAL IMPLICATIONS:
TBD.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S7320: 292 executive law, 296 executive law, 296(5) executive law, 160-e executive law, 160-e(9) executive law, 160-u executive law, 160-u(1) executive law, 160-v executive law, 160-v(1) executive law, 160-w executive law, 160-w(2) executive law