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Public Act 102-0934 Public Act 0934 102ND GENERAL ASSEMBLY |
Public Act 102-0934 | HB4410 Enrolled | LRB102 20964 RJF 29860 b |
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| 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.
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| (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;
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| (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.
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Effective Date: 1/1/2023
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