DOJ Files Statement of Interest in Case Alleging Appraisal Discrimination

Recently, the U.S. Department of Justice (DOJ) Civil Rights Division filed a Statement of Interest in Austin v. Miller, 3:21-cv-09319 (N.D. Cal. 2022) concerning housing discrimination in connection with appraisals of residential real property.  The DOJ explained that its interest in the case is to “respond[] directly to President Biden’s command to rating agencies to advance fairness for all, especially marginalized groups with a long history of racial discrimination in the labor market.”

The Plaintiffs filed a lawsuit alleging that an appraisal company gave them an unreasonably low valuation on their home after they had spent more than $40,000 on renovations. In supporting the Plaintiffs’ opposition to the appraisal company’s motion to dismiss, the DOJ asserted that (1) the Fair Housing Act text and case law apply to residential appraisers, and (2) that the Act simply requires the Plaintiffs to allege a plausible entitlement to relief as a result of Defendants’ “discriminatory housing practices.”