Joe Biden’s Office of Housing and Urban Development (HUD) has released a report presented by the Interagency Property and Equity Assessments Task Force, stating that there is “racial and ethnic bias” in valuing minority homes.
Biden announced the creation of the task force on the anniversary of the non-residential tragedy last year:
On June 1, 2021, the 100th anniversary of the Tulsa massacre, President Biden announced the launch of a multi-agency initiative to combat home valuation bias. This initiative has become the Interagency Task Force on Property Valuation and Equity (PAVE).
A task force, co-chaired by US Secretary of Housing and Urban Development Marcia Fudge and Advisor to Homeland Policy Ambassador Susan Rice, was tasked with (i) assessing the causes, extent and consequences of evaluation bias and (ii) formulating a revised set of recommendations. to eliminate racial and ethnic bias in home assessments.
The task force says racism is involved in the process of evaluating homes for sale in the real estate market. The report partially states:
Examining the valuation comments (the narrative section containing the standalone form of the valuation report reflecting the appraiser’s reasoning for the property valuation opinion) revealed that appraisers sometimes referred to race and ethnicity. For example, a study by one evaluator found that the white-dominated neighborhood was “not particularly ethnically diverse”, while another evaluator noted that the area’s “predominantly Hispanic” residents were “assimilating their cultural heritage.” area.
A common pattern of impairment in communities of color can affect an entire neighborhood. Each instance of a lower purchase price qualifies for selection by the next appraiser as a comparable sale for the next community evaluation, highlighting the impact of the lower value.
Over time, even a small impairment imbalance can have a large impact on the value of property in a community and therefore on the accumulated wealth of homeowners in that community. This impact may deter families in this community from using their net worth to pay for college tuition, pay for renovations, or use it as a buffer in times of financial distress. Lowering property values can also result in lower property tax revenues, which fund the maintenance and improvement of public schools and infrastructure.
The report identifies five “working group commitments”:
- Strengthening barriers to discrimination at all stages of housing evaluation.
- Strengthening Fair Housing/Fair Loan Practice and Accountability in the Valuation Sector
- Creating a diverse, well-educated and accessible workforce of appraisers
- Allowing Consumers to Be Biased Again
- Providing researchers and law enforcement with better data to analyze and monitor analysis bias
“I live in an all-black neighborhood, I have a larger land and house, but my house is $25,000 cheaper than the house two doors away from me, which is an all-white community,” Fudge said in the report. “The Biden-Harris administration recognizes that communities of color like my own have lost billions of dollars because of the vetting process alone. We are committed to taking meaningful action to increase home ownership and welfare generation for all.”
The report also refers to the news on the left of the media that allegedly biases the estimates. Chicago Sun Times, San Francisco Chronicleand ABC in San Francisco.
“As the Task Force moves to the next phase of its work to achieve equity in housing values, it will continue to seek partnership opportunities to create coordinated collaboration with lenders, philanthropic groups, academia, civil rights groups, advocates and industry associations. strategy. . in solving this problem,” says the fact sheet on the work of the task force.
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Source: Breitbart
