ASA Equal Opportunity Resolution

A

ASA

(Adopted 1-26-75)

WHEREAS, the American Society of Appraisers has for years pursued an active program of assuring Equal Opportunity in Appraising for all persons; and

WHEREAS, the ASA program has involved clarification of its Constitution, By-Laws and Administrative Rules to assure fair, equal opportunity; and has been characterized by presentation of educational programs in appraising in Mexico, The Philippines, Puerto Rico, as well as special equal opportunity seminars in the U.S.; and has produced a Minorities Position Statement (placed before the Federal Highway Administration in 1972; the White House in 1973; the Department of Housing and Urban Development in 1974); and

WHEREAS, ASA is presently working to achieve long-range Equal Opportunity in Appraising by sponsoring programs in Appraisal Aid, in Career Counselling, and in a formal College/University degree program; and WHEREAS, HUD (through its Office of Equal Opportunity, by letter dated August 28) has recognized the significance of the work of the U.S. appraiser in the special area of Housing and has requested that this Appraisal Society adopt a Resolution reflecting our concern and wholehearted support in all efforts to eliminate bias, discrimination, "panic selling, and to equally express our support to continue "affirmative training and recruitment of minorities into the appraisal field";

THEREFORE BE IT RESOLVED: That this Society reaffirm its position that Equal Opportunity in Appraising is an important element in the fabric of the American Community and its social, cultural and business life; that ASA will continue its efforts to implement its Appraisal Aid, Career Counselling and College/University Degree Programs in order to fully and practically express our Policy of Equal Opportunity; that ASA will continue to ask other groups, such as HUD, to encourage, stimulate and support such programs; and that ASA express its support cf all programs which strive to make Fair Housing a reality of "choice and opportunity for all Americans to occupy housing anywhere based on ability to pay for such housing".

AND BE IT FURTHER RESOLVED that ASA, housing and equal opportunity in the

sharing the HUD concern that "fair
appraisal field" is of paramount

importance to the American citizenry, shall cause a copy of this Resolution to be sent to the Secretary of HUD and to the Office of the Assistant Secretary for Equal Opportunity.

Yai Resciution s escrve 'c support all 2 for al Amer

imremor v government

#uracy be construed as =csic'e acraisa tardards and prac? Coresers are coraisal Profession, Residential data in apCOs which might undermine or

nier messera canal actices.

RACHT 7 Caraners, eterate our posiCome out son ing nouc be ree to report, factuFind se semnart actor which may

* Terca y Custra property in con*****essional Inces of tppraisal Practice cute erar oceny or topraisers.

EXHIBIT 2

Your Office of Equal Opportunity requested cooperation from U.S.
Appraisal Societies by August 28, 1974 letter.

In response, this Society passed the nation's first appraisal practitioner's Resolution, dated January 21, 1975 (supportive of the Fair Housing and equal opportunity concepts).

Problem: HUD will not respond, acknowledging the ASA Resolution (copy attached, taken from "Valuation" Journal published October/November 1975).

I've talked with Office of Equal Opportunity representatives. They cannot explain why an acknowledgement has not been issued.

I've asked for help from Assistant Secretary Blair. No reply. (see 3-31-76 letter enclosed).

It may be naive to expect appreciation for our leadership in the field of Equal Rights. But, we do expect formal courtesy from the office of Equal Opportunity and from HUD.

-

Will you cause an acknowledgement of receipt of ASA Resolution dated 1-26-75 to be issued by a HUD representative? ASA members throughout the country, who do not understand HUD's "silence", will at least know that the Office of Equal Opportunity exists and responds.

Sincerely,

Dexter D. MacBride, CAE, FASA

Executive Vice President

EXHIBIT 3

Senator BAYH. I hope we can work out what appear to be legitimate differences as we see them now.

You play an important role in the buying and selling of real estate and transferring property, as you assess the legitimate value of property, and that is an important function.

I know we can handle this legislation in such a way that it makes it possible for you to perform a legitimate function without letting a few illegitimate characters take advantage of your profession.

If you gentlemen will excuse me, I have to leave.

Mr. MACBRIDE. May I introduce Mr. Robert Francy, international senior vice president of the American Society of Appraisers who would like to make a statement.

TESTIMONY OF ROBERT FRANCY, INTERNATIONAL SENIOR VICE PRESIDENT, AMERICAN SOCIETY OF APPRAISERS

Mr. FRANCY. I will make it very brief, Mr. Chairman, substantially. First, briefly, we support the statement you have made. The objections are well taken. They represent a very thoughtful approach to the problem.

I would only like to add a few comments, chief among those is that no public or private purpose is going to be served by hiding any facts either in an appraising report, in a hearing of this type, or in any legislation.

The truth, whether it be property values or the way the property values are arrived at, will best serve the public purpose.

One of the objections we have to the act as it is presently constituted is that there are mechanisms there for coercion, perhaps well intentioned but still coercion.

It was pointed out by the previous witness that the mere mention or the mere threat of action taken in this case by HUD could cause an appraiser to literally bankrupt himself in answering a charge that might be entirely frivolous, with no substance. To that extent, we certainly object to the form of this legislation in only that respect, for example, as I recall, there is provision to provide for the handicapped. Certainly we have no objection to that passage. If there was an oversight, they were not included in the original legislation, and certainly then they should be added.

But the primary problem we have is with this enforcement procedure. We feel the public interest is best served when all parties know all the facts affecting any decision that is to be made.

The appraisal report is an opinion of value which is based on fact. sound reasoning, research and experience, and when an appraiser is to be intimidated or not allowed to report the facts, then no public is going to be well served, and you are going to have problems that you can't even foresee now.

The truth is always the best answer.

We have to separate two functions in the granting of mortgage loans. First, is the appraiser who renders an opinion of value. His job is finished at that point.

Now, it is an underwriting decision that has to be made, and this is the point perhaps where, if a public purpose is to be served by granting a loan either in term or amount or to particular parties that go beyond the terms suggested in the appraisal report, that is a totally different decision. That is an underwriting decision which the appraiser should not be a part of.

What we have here is a lack of definition. There has been some testimony about a September 1978 memorandum or regulation from HUD which is totally unconscionable. It makes statements like all of these things are not to be considered in an appraisal report. If you do that, it is a violation. That is coercion of the worst sort.

Our position is: Appraisers should be free to report responsibly and factually what they find in the marketplace.

The dilemma we face is whether they are reporting responsibly. We heard examples today of a religious organization creating increased values. It is not unusual for a fine Catholic Church and parochial schools to have 10 percent higher comparable values than areas further away.

Furthermore, if the Charles Manson Memorial Temple were to be erected in a certain area, certainly the appraiser should be able to point that out.

In short, we should work to eliminate discrimination and achieve fair housing, but we don't necessarily want it to be at anyone's expense of the right to tell the truth.

Thank you for this opportunity to be heard briefly on my opinions. Mr. MACBRIDE. Mr. Chairman, may I introduce Mr. Peter Reclite, international ASA vice president of California, instructor in real estate at the University of San Francisco for a number of years. He would like to comment briefly.

TESTIMONY OF PETER RECLITE, INTERNATIONAL VICE PRESIDENT, AMERICAN SOCIETY OF APPRAISERS

Mr. RECLITE. I think it has all been said.

We are in favor of the Fair Housing Act with quite a few modifications, and we would be happy to work with you.

I think Mr. Francy and Mr. MacBride and the Society of Residential Appraisers made all the statements that can be made.

This is our viewpoint: That we are in favor of various fair housing legislation, but we would like to work with you in modifying your present bill.

Thank you.

Mr. DIXON. I would like to thank you all for coming today. I am sorry about the communications problems we had in concerning who would be appearing today. It was impossible for Senator Bayh to stay here much longer.

As you know, neither Senator Bayh nor Senator Mathias, the chief sponsors of the bill, had any desire to undermine anyone's first amendment freedoms. As the Senate subcommittee with jurisdiction over constitutional questions, we have been very mindful of those rights. However, as Senator Bayh said, we are concerned with those in the real estate chain who would abuse their positions to discriminate against minorities and the handicapped. S. 506 seeks simply to end such abuse.

As is generally the case, we often use these hearings to amend the legislation originally introduced if it becomes apparent that certain changes are needed.

For instance, the society mentioned in their testimony as you and others did, the deficiencies with the injunction section of the bill. It is now being redrafted.

Our aim all along was simply to clarify the provisions of title VIII as they now apply to appraisers. As Senator Bayh said, we would be consulting with you and members of the Society of Real Estate Appraisers as we once again redraft that section.