fair housing

  • May 14, 2012
    Guest Post

    By Melissa Rothstein, deputy director of the Equal Rights Center, and Megan K. Whyte, director of the Fair Housing Project at the Washington Lawyers’ Committee for Civil Rights and Urban Affairs. This is cross-posted at The Equal Rights Center’s blog.


    Fair Housing Month recently ended, and for most it was an opportunity to celebrate our country’s commitment to equal opportunity in housing for all people. Unfortunately, for some, it was instead another occasion for attacks on the crucial efforts to ensure enforcement of our country’s fair housing laws.

    In one such example, Congress launched an investigation into why the City of St. Paul withdrew an appeal in the Supreme Court that had the potential to eviscerate the validity of disparate impact challenges under the Fair Housing Act (FHA), despite the rulings of eleven federal circuit courts of appeal that uniformly held that disparate impact claims are cognizable under the FHA. In another example, Republican presidential candidate Mitt Romney suggested that, if elected president, he would consider disbanding the Department of Housing and Urban Development (HUD), an agency for which his father once served as Secretary.

    These actions come on the heels of a disturbing trend by federal courts of imposing additional hurdles on fair housing plaintiffs. Even in the face of efforts to make it more difficult for plaintiffs to enforce their statutory rights, the continuing role of fair housing organizations in enforcing the provisions of the FHA cannot be overstated. Private fair housing organizations and other civil rights groups investigate two out of every three fair housing complaints filed across the country – and their ability to enforce fair housing violations is critical to the promise of equal housing opportunity for all. These organizations are able to conduct investigations efficiently and effectively with little of the bureaucracy and overhead costs that may be associated with governmental agencies, and to gain the trust of disenfranchised community members who may not feel comfortable lodging a complaint with a government entity. 

    Officials at HUD and DOJ – the federal agencies with authority to enforce the FHA – recognize the importance and value of private enforcement, as they lack the resources to effectively enforce the FHA on their own. As detailed in our recent American Constitution Society Issue Brief, Congress intended for private enforcement to be a key component of ensuring FHA compliance, and the 1988 FHA amendments were largely intended to amend the law’s enforcement mechanism so that, in Senator Kennedy’s words, it would no longer be “a toothless tiger.”  

  • April 27, 2012
    Guest Post

    By Leslie Proll, Director of the NAACP Legal Defense & Educational Fund’s Washington Office


    The current foreclosure crisis constitutes a monumental civil rights issue. Communities of color were targeted for risky mortgage loans, have experienced disproportionately high foreclosure rates, and have been stripped of vast amounts of wealth because of discriminatory lending practices. From 2005 to 2009, median wealth fell by 66 percent among Latino households and 53 percent among African-American households, compared with just 16 percent among white households, largely due to declining home values. From 2009 through 2012, African Americans are projected to lose an estimated $194 billion in housing equity, and Latinos are expected to lose $177 billion.

    Unfortunately, there is reason to believe that the destructive effects of the foreclosure crisis on communities of color have yet to be fully realized. They face another devastating blow caused by further discriminatory treatment towards homes and neighborhoods by the very lenders who initiated the foreclosures. 

    The civil rights problems that permeate the foreclosure crisis are unfolding in stages. First, lenders targeted communities of color with subprime and other risky loan products that led to foreclosure. Last year, the U.S. Department of Justice (DOJ) announced the largest residential fair lending settlement in history, in which Bank of America agreed to pay $335 million to settle allegations that Countrywide Financial discriminated against African-American and Latino borrowers during the housing boom. DOJ found that Countrywide loan officers and brokers charged higher fees and interest rates to 200,000 African-American and Latino borrowers than to white borrowers who posed the same credit risk. Countrywide also steered borrowers of color into costly subprime mortgages when white borrowers with similar credit profiles received prime loans. Countrywide was not an isolated example. Other research has found that African-American and Latino borrowers were much more likely to receive subprime loans than white borrowers, even after controlling for income level or credit risk. 

  • January 16, 2012
    Guest Post

    By Cedric Ricks, Communications Associate, National Fair Housing Alliance


    Nearly 46 years ago, Dr. Martin Luther King Jr. led a 1966 summer march in Chicago's Marquette Park demanding fair housing. King protested a dual housing market, in which whites were free to reside wherever they could afford, but African-Americans were barred from many parts of Chicago and in other American cities because of restrictive covenants, social practice and discrimination in lending

    Before he left Chicago, King referred to the historic protest as "a first-step in a 1,000-mile journey." Since then real progress has been made with the passage of the federal Fair Housing Act of 1968 - passed one week after King's assassination - and the enactment of the Equal Credit Opportunity Act of 1974.

    But to achieve a broad affirmative vision of fair housing many additional steps are still needed. It's entirely fitting we consider what comes next as our nation honors Dr. King's birthday with a federal holiday.

    Congress took an important step forward toward equality and justice with the creation of the Consumer Financial Protection Bureau, and President Obama advanced even further this month by appointing former Ohio Attorney General Richard Cordray to lead the Bureau.  

    The CFPB has one central mission: to make the market for consumer financial products and services work for ALL consumers, responsible providers and the economy as a whole. To accomplish its mission, the Bureau seeks to promote transparency and consumer choice while preventing unfair, deceptive and discriminatory practices.

  • September 22, 2011
    Guest Post

    By Lisa Rice, vice president of the National Fair Housing Alliance. Rice will be participating in a panel discussion on jobs and economic justice this Friday at the Congressional Black Caucus Foundation’s Annual Legislative Conference.


    It’s disheartening, but not surprising that the Pew Research Center reports that the median wealth of American white households is 20 times that of African American households and 18 times that of Hispanic households. This historic gap in wealth continues to widen and is the result of a toxic mix of longtime segregation, high unemployment rates, falling home values and skyrocketing home foreclosures that is severely impacting communities of color. These ills are not natural occurrences, but the result of federal policies that until recently have ignored job creation and wage support in communities of color and allowed the peddling of predatory, abusive and discriminatory loan products to African American and Hispanic homebuyers to go unchecked.

    In August, the Bureau of Labor Statistics reported an overall unemployment rate of 9.1 percent, which is unchanged from July and represents 14 million Americans. But African American unemployment jumped to 16.7 percent – the highest level since 1984 – while the white jobless rate fell slightly to 8 percent. For Hispanics, unemployment remained stable at 11.3 percent in August, while Asian-American unemployment dropped to 7.1 percent, according to the Bureau of Labor Statistics. More than 155,000 African-Americans obtained employment in August; even so that wasn’t enough to counter a surge in unemployment numbers for the group. At least 1.4 million African Americans have been out of work for more than six months.

    Some reasons for the disparity in employment for African Americans may include: a younger work force, fewer members obtaining college degrees and a larger share of the population living in areas severely impacted by the recession. Even if those factors are taken into account a disparity persists and racial discrimination can’t be ignored, explains Algernon Austin, director of Race, Ethnicity, and the Economy program for the Economic Policy Institute. Austin told CNN Money.com, “Even when you compare black and white workers, same age range, same education, you still see pretty significant gaps in unemployment rates. So I do think the fact of racial discrimination in the labor market continues to play a role.”

    For most of us employment is essential for income to sustain our most basic necessities – food, shelter and health care. That income, if sufficient and properly managed, can also be used to leverage a time honored vehicle for asset accumulation in this country: homeownership. Millions of Americans tap the equity in their homes to pay for their child’s college education, fund start-up businesses, pay for retirement, and weather economic uncertainty. For communities of color, homeownership rates have historically lagged behind that of white Americans though the long trend has been upward. African American homeownership has doubled from 22.8 percent in 1940 to 45.9 percent in 2010.  Comparatively, homeownership for whites increased from 45.6 percent in 1940 to 74.4 percent in 2010. According to the Joint Center for Housing Studies at Harvard University about 47.5 percent of Latinos and 58.2 percent of Asian-Americans owned a home in 2010.