Leaders in Washington, D.C. revealed the Pave action plan this week. The Property Appraisal and Valuation Equity plan aims to prevent racial bias during the home lending and appraisal process. In addition, leaders say this plan will also promote generational wealth through homeownership. According to The U.S. Department of Housing and Urban Development, the average white family holds eight times the wealth of an average black family and five times that of a Latino family.
As a result, The Pave Action plan will also represent the most wide-ranging reforms to ensure equity during home appraisals. President Joe Biden first announced the PAVE task force in 2021, marking the centennial of the Tulsa Race Massacre. Biden challenged federal agencies to determine the extent and cause of appraisal bias and eliminate the practice. HUD Secretary, Marcia L. Fudge, will co-chair the task force. It is the first of its kind multi-agency effort to eliminate racial bias in home appraisals.
PAVE Action Plan: How it will eliminate Racial Bias
Fudge says, ” homeownership gives people a pathway to build wealth. But for too long, biased appraisals have obstructed that pathway for people of color.” White House Domestic Policy Advisor will share co-chair duties with Fudge. 13 addition senior leaders found round out the task force to eliminate racial bias.
How will the plan eliminate racial bias? First, it details actions that will reduce bias in home appraisals, including steps federal agencies will take using their existing authorities to enhance oversight. Second, the plan requires more accountability of the appraisal industry. Finally, the plan will detail how homeowners and buyers can take action when they get a valuation lower than expected.
Again, Secretary Fudge reinforced the bias has existed for too long. “For generations, millions of Black and brown Americans have had their homes valued for less than their white counterparts simply because of the color of their skin or the racial makeup of the neighborhood.” Fudge says she is looking forward to the work the Pave task force will achieve.
Also, Housing Equity can impact people’s health. Specifically, research published last fall showed a 20 percent drop in emergency room visits for Medicaid patients who had access to affordable housing options. Finally, anyone who feels like they are experiencing housing discrimination should report it immediately.