SUBJECT: Fair Housing Laws and Appraisal Report Content ( USPAP-AO 16 )
APPLICATION: Real Property
THE ISSUE:
In developing and reporting an appraisal or appraisal review assignment, what should an appraiser consider to
comply with current fair housing laws?
BACKGROUND:
Fair housing law(s) preclude the use of certain specific information or supported conclusions related to
protected group(s) in some assignments. Accordingly, an appraiser should be knowledgeable about the laws that
affect the subject property of an assignment. Laws and regulations on fair lending and fair housing (such as the
Fair Housing Act; the Equal Credit Opportunity Act (ECOA), and the laws and regulations of applicable
federal, state, and local jurisdictions) continue to evolve. Further, appraisers must continue to provide appraisals
that do not illegally discriminate or contribute to illegal discrimination. The Conduct section of the ETHICS
RULE states in part, An appraiser must not use or rely on unsupported conclusions relating to characteristics
such as race, color, religion, national origin, gender, marital status, familial status, age, receipt of public
assistance income, handicap, or an unsupported conclusion that homogeneity of such characteristics is
necessary to maximize value (bold added for emphasis).
NOTE: In some cases, even supported conclusions in assignments relating to characteristics such as race, color,
religion, national origin, gender, marital status, familial status, age, receipt of public assistance income,
handicap, or group homogeneity cannot be used because they are precluded by applicable law.