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Public Act 102-0934


 

Public Act 0934 102ND GENERAL ASSEMBLY

  
  
  

 


 
Public Act 102-0934
 
HB4410 EnrolledLRB102 20964 RJF 29860 b

    AN ACT concerning State government.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 1. Short title. This Act may be cited as the Real
Estate Valuation Task Force Act.
 
    Section 5. Findings. The General Assembly finds and
declares the following:
        (1) Two federal agencies, the Federal Home Owners'
    Loan Corporation and the Federal Housing Administration,
    played a major role in the development of the modern home
    mortgage origination industry.
        (2) Both federal agencies explicitly considered the
    racial and ethnic make-up of neighborhoods when
    underwriting loans and valuing the real estate to be used
    as home loan collateral.
        (3) Both agencies devalued property or refused to make
    loans secured by property in communities of color.
        (4) The harmful consequences of this discrimination
    remain unresolved.
 
    Section 10. Real Estate Valuation Task Force.
    (a) The Real Estate Valuation Task Force is hereby
established.
    (b) The Task Force shall consist of the following members:
        (1) 4 members appointed one each by the Speaker of the
    House of Representatives, the Minority Leader of the House
    of Representatives, the President of the Senate, and the
    Minority Leader of the Senate;
        (2) the Secretary of Financial and Professional
    Regulation, or a designee;
        (3) the Director of Commerce and Economic Opportunity,
    or a designee;
        (4) the Director of Human Rights, or a designee;
        (5) the Director of Revenue, or a designee;
        (6) the Executive Director of the Illinois Housing
    Development Authority, or a designee;
        (7) a representative of a statewide banking
    association representing banks of all asset sizes,
    appointed by the Governor;
        (8) a representative of a statewide banking
    association exclusively representing banks with assets
    below $20,000,000,000, appointed by the Governor;
        (9) a representative of a statewide association
    representing credit unions, appointed by the Governor;
        (10) a representative of an agency, organization, or
    association advocating for fair housing, appointed by the
    Governor;
        (11) a representative of an agency, organization, or
    association for consumer protection, appointed by the
    Governor; and
        (12) a representative of a statewide appraisal
    organization, appointed by the Governor.
    (c) Initial appointments to the Task Force shall be made
as soon as practicable after the effective date of this Act.
The Task Force shall hold its first meeting within a
reasonable period of time after the completion of the
appointment of its members, and shall convene regularly to
carry out its duties and submit the reports required under
this Act. At its first meeting, the Task Force shall elect its
chair and any other officers from among its members.
    (d) Members of the Task Force shall serve without
compensation.
    (e) The Department of Financial and Professional
Regulation shall provide administrative and other support to
the Task Force. Each agency and entity represented on the Task
Force shall also share with the Task Force any data of the
agency or entity necessary for the Task Force to carry out its
duties under this Act.
 
    Section 15. Task Force duties.
    (a) The Task Force shall have the following duties:
        (1) harmonize to the greatest extent possible the
    various collateral underwriting standards and guidance of
    the agencies and entities represented on the Task Force
    governing residential and commercial real estate
    valuations, including standards and guidance with respect
    to appraisals, non-traditional and alternative methods of
    providing real estate property evaluations, such as
    automated valuation models, processes, and procedures for
    managing reconsiderations of value by consumers, and
    standards and guidance with respect to common collateral
    underwriting challenges, such as energy efficient housing
    and limited or inactive markets;
        (2) to the extent that standards or guidance described
    under paragraph (1) are not harmonized, the Task Force
    shall issue a report to the General Assembly explaining
    why harmonization cannot or should not be implemented;
        (3) establish specific definitions for limited or
    inactive housing markets in which comparable sales are
    limited or unavailable over a certain period of time, and
    establish greater flexibilities and guidance for
    appraisals and any underwriting processes associated with
    appraisals conducted in such markets, such as the ability
    to consider market evidence for similar properties in
    other geographic areas or utilizing a range of value;
        (4) aggregate data across Task Force members and
    conduct a study to determine whether there are racial
    disparities at both the borrower and community level in
    the valuation and price of the residential real estate to
    be used as collateral for mortgage applications processed
    by Task Force members;
        (5) identify specific causes of such racial
    disparities and (i) adopt changes to address such causes;
    or (ii) if the Task Force determines that additional
    statutory authority is needed to adopt such changes, issue
    a report to the General Assembly describing the needed
    statutory authority; and
        (6) evaluate whether there are any barriers to entry
    that are disproportionately preventing minorities from
    entering into the appraisal profession.
    (b) In carrying out its duties under this Act, the Task
Force shall consult with the following individuals or
entities: (i) civil rights advocates; (ii) consumer advocates;
(iii) real estate appraisers; (iv) small lenders; (v) trade
groups; (vi) appraisal management companies; (vii) experts on
alternative valuation models; and (viii) an organization that
adopts appraisal standards and appraiser qualification
criteria.
 
    Section 20. Reports.
    (a) The Task Force shall submit a report to the Governor
and the General Assembly not later than the expiration of the
24-month period beginning on the effective date of this Act
detailing the findings and any actions taken to further the
duties of the Task Force as of such time and describing any
planned efforts and activities.
    (b) Periodically, after the submission of the initial
report under subsection (a), the Task Force shall submit
reports to the Governor and the General Assembly setting forth
updates of the findings and actions taken to further the
duties of the Task Force. The reports required under this
subsection (b) shall continue for the duration of the Task
Force.
 
    Section 25. Termination of Task Force; repeal.
    (a) The Task Force shall terminate upon the expiration of
the 5-year period beginning on the effective date of this Act.
    (b) This Act is repealed on January 1, 2029.

Effective Date: 1/1/2023