Groundbreaking HUD Settlement Promotes Racial Equity in Home Appraisals

On July 12, the Department of Housing and Urban Development (HUD) announced that it had reached an historic agreement to address racial discrimination in the home appraisal profession. The Conciliation Agreement is a binding legal agreement with The Appraisal Foundation (TAF), an organization that sets standards and qualifications for real estate appraisers.

According to the Bureau of Labor Statistics' 2023 data, the property appraisers and assessors' occupation was 94.7% White and 0.6% Black, ranking as the least racially diverse of 800 occupations surveyed. The workforce disparity and other factors have led to a pattern of undervaluation of homes owned by racial minorities; today, the median white family holds eight times the wealth of the typical Black family and five times the wealth of the typical Latino family.

The agreement settles a complaint initiated by former HUD Secretary Marcia Fudge alleging discriminatory barriers in TAF and industry practices that prevent people of color from participating in the appraisal profession. The agreement requires corrective action by TAF, including the establishment of a scholarship fund to subsidize the cost of real estate appraisal programs for diverse applicants.

"This settlement will help bring us one step closer to rooting out discrimination in housing and opening doors to opportunity for all," said Acting HUD Secretary Adrianne Todman.

LeadingAge applauds the agreement as a first step toward a more racial equity in housing.