Article by Dedrick Asante-Muhammad, Jamie Buell, Joshua Devine
Originally posted by the National Community Reinvestment Corporation (NCRC)
A radical increase in Black homeownership is needed to see progress in bridging Black and White homeownership and wealth inequality. One of the defining factors of economic well-being for individuals and families is household net worth or wealth, but not all families are equal. Decades of racial injustice and economic inequality have led to persistent disparities in wealth, specifically for people of color. One of the foundational steps in building wealth is homeownership. Today, the homeownership rate for African Americans is approximately 42% – 45%, essentially unchanged from the rate decades ago and widening over the last a few years. This report highlights historic Black homeownership rates, and underscores the need to significantly increase homeownership rates for Black Americans. We believe reaching a 60% Black homeownership rate will address significant barriers to housing access and wealth creation for the African American community.
A decline over the past 20 years left the Black homeownership rate at 42% in 2018, as low as it was in 1970. The rate for White homeownership was 73% in that same year.
A 20% – 30% gap between Black/White homeownership rates has persisted for more than 100 years, despite Black homeownership increases in the mid-1900s.
African Americans go into greater debt for less valuable homes and receive less of a return on homeownership than Whites.
If holding the current rates of Black homeownership formation and loss constant, then it would require approximately 165,000 additional new Black homeowners annually over the next 20 years to get to 60% Black homeownership by 2040.
Bold new approaches to housing finance and investment in community development is required to get to a 60% homeownership rate for African Americans.
Even getting to a record-level Black homeownership rate of 60% will not bridge the Black and White wealth divide. Additional bold programs like baby bonds, full employment and reparations are needed to close the Black/White wealth divide in the foreseeable future.
Black populations with moderate incomes in geographic areas with affordable housing and low Black homeownership rates offer strong opportunities to increase African American homeownership.
If you live in Philadelphia, chances are you have seen countless examples of the “We Buy Homes” signs that are posted in different neighborhoods across the city, you may have even been targeted or contacted by one of these scammers. Due to the rising property values in some Philadelphia neighborhoods, scammers are motivated to push and pressure long term residents into selling their homes for “quick cash,” often for far below market value.
From an article in WHYY, “Residential property wholesalers use predatory tactics and target our most vulnerable residents to profit from the equity those residents have built over the years. Wholesalers go into the homes of seniors and pressure them to sign sales contracts on the spot. They convince those whose homes need repairs or are at risk of foreclosure to sell for well under market value, even when residents do not want to leave their communities and might have options to save their homes.”
Residents who are experiencing foreclosure or are in need of home repairs should avoid these scams and turn to better and more trustworthy community partners, like Clarifi, which can provide residents with foreclosure assistance and keep them in their homes, or get them access to low-interest home repair loans through the Restore, Repair, Renew program. Programs like these prevent people from losing their homes or being displaced, and are intended to protect Philadelphians and the intergenerational wealth they have created through their homes.
“On December 1, 2020, Mayor Kenney signed a new law that will curb the worst abuses in this industry.
This new law will:
Require residential property wholesalers to provide homeowners with a Bill of Rights at least three days before a sale.
Require residential property wholesalers to be licensed with the City and follow a code of ethics.
Give homeowners important new rights when residential property wholesalers do not follow the law.
Create a Do Not Solicit list that homeowners can join if they do not want to receive solicitations to sell their house.
Assess a fine of up to $2,000 if a wholesaler tries to get homeowners on the Do Not Solicit list to sell their home.”
The new law comes into effect on February 1, 2021. Homeowners that are interested in joining the Do Not Solicit list should check in with the Community Legal Services of Philadelphia once the new law is put into place on the first.
As the months go by and winter sets in along with a new wave of guidelines and restrictions being put into place as COVID-19 cases rise across the country, people are going to be spending more and more time inside their homes. On Friday November 20th, a new set of “Safer at Home” restrictions are going to be put into action in Philadelphia. The Safer at Home restrictions and guidelines are intended to limit the spread of COVID-19 and to protect the health and lives of Philadelphians. Some of the restrictions include necessitating all high schools and colleges to move to online instruction only, the closing of libraries and many other businesses, and the halting of recreational activities and sports for youth, community groups, and schools. While these restrictions are necessary and potentially lifesaving, they will limit access to important resources that people rely on. As more and more people return to their homes for work and school, access to things such as food, the internet, and suitable living and working environments will become even more important.
Studies show that poor housing quality can directly relate to school performance and can lead to other health issues caused by things like mildew, mold, and lead paint. The Healthy Rowhouse Project found that more than a quarter of Philadelphia seniors live in a home with damage to the roof, the plumbing system, or the heating system. Seniors in homes with health-related repair needs are far more likely than others to have chronic conditions, visit the emergency room, or experience falls. Moreover, some 39 percent of asthma diagnoses in children can be attributed to risk factors in the home. According to the American Housing Survey, more than 235,000 homes in Philadelphia have leaks, with the most common leaks coming from the roof. Meanwhile, 90,000 homes have cracks in the floors or walls, 77,000 have inadequate heating, and 45,000 have broken windows. As it gets colder this winter, issues with heating systems within the home will become even more problematic and apparent as more time is spent inside.
Here at the Healthy Rowhouse Project we understand that there is a strong connection between health and housing, something that has only become more relevant in the midst of a pandemic that has required people to stay home. Because of this, we have worked with Clarifi and the City of Philadelphia to create the Restore, Repair, Renew program, which was recently featured in the Philadelphia Inquirer, in order to provide Philadelphians access to affordable home repair loans. These accessible loans can be used to fund a range of home repairs that focus on health, safety, weatherization, accessibility, and more, and provide low-to-moderate income Philadelphians the opportunity to protect their most important assets.
As we approach the 2020 presidential election, it is important for you to make sure you know how, when, and where to vote. Your vote, and your voice, matter. Make sure that you are heard, not voting is essentially voting for the candidate or candidates who do not represent your voice. According to Pew Research Center, in 2016, four-in-ten Americans who were eligible did not vote. So, those who won their political office did so with only 60% of eligible voters casting their vote. 40% of eligible voters were silent. 40% did not have their voices represented at the polls. How would you feel if you invited 50 people to celebrate a special occasion, and 40% of those who said yes, did not show? In 2016, the number of eligible voters that “Did not vote” beat the number of those who did vote for either Hilary Clinton or Donald Trump by almost 30 million. Over 94 million eligible voters chose not to vote in 2016. That means 40 percent of Americans who were eligible to vote had no voice in their communities or their country. Due to the covid-19 pandemic, there are a variety of options that voters can use to cast their ballot, such as mail in ballots or in person voting. Election day is Tuesday, November 3rd, which is less than one month away.
It is easier than ever to vote this year. Pennsylvania, New Jersey, and Delaware all have a way to mail in your vote and in some cases vote early to avoid the lines on Election Day. Make sure you plan your vote. State-specific resources are below. If you don’t live in PA, NJ, or DE go to Vote.org to find the requirements and deadlines for your state. In order to vote, it is necessary for you to be registered within your state!
In Pennsylvania, residents must register by October 19, 2020 in order to vote in the 2020 election. You can register to vote in PA online here.
New Jersey residents much register by October 12, 2020, New Jersey residents can register online here
Delaware residents must register by October 10, 2020 in order to vote, and Delaware residents can register here.
To apply for a mail-in ballot in PA, follow this link, as well as these links for NJ and DE. In PA, mail-in ballot registration is due by October 27, 2020, in NJ, all registered voters will automatically get a mail in ballot, and in DE, mail-in registration is due by October 30, 2020.
In PA, Mailed Ballots must be postmarked on or before November 3 and received by your county’s Board of Elections by November 6. You can drop it off at your county’s election office by November 3 (check hours before you go).
In NJ, If you mail it – Mailed Ballots must be postmarked on or before November 3 and received by your county’s Board of Elections by November 10. Or you can place your ballot in a secure drop box by 8:00 PM on November 3.
In DE, Mailed Ballots must be received no later than 8:00 PM on Election Day. Postmarks are not enough! You can drop it off to the county elections office that issued the ballot or mail it.
To vote in person, prior to election day, confirm that you are registered, your polling location (which can be found online, your location may have changed from the last election!), and if there are any ID requirements. On election day, if you are in line, stay in line. If you plan to vote in person, put your state’s election complaint number in your phone!
To vote by mail, make sure that you carefully follow all instructions, sign things where needed, and double check your envelope before sending it or dropping it off. Send in your ballot early if possible, different states have different rules regarding the deadline to receive the mail-in ballot. When possible, use drop-off locations for your ballot.
If you received a mail in ballot but have decided to vote in person, check your state’s voting information to determine what you should do with your mail in ballot. DO NOT throw it away, states have rules about how to “cancel” a mail in ballot if you decide to show up in person to vote.
This year, your voice matters more than ever. For more info, go to vote.org.