A Tale of Two Recoveries: Separate and Unequal

Transcription

1 A Tale of Two Recoveries: Separate and Unequal Bank of America Fails to Maintain Foreclosures in Tampa, FL s African American and Latino Neighborhoods NATIONAL FAIR HOUSING ALLIANCE Shanna Smith 1

2 Minneapolis Milwaukee Grand Rapids Metro Chicago 10 Cities Gary Indianapolis Suburban Detroit Cleveland Toledo Dayton Newark Philadelphia Vallejo Richmond Oakland Las Vegas Denver Kansas City Columbus Baltimore Prince George s County Washington, DC Memphis Phoenix Tucson Dallas Atlanta Charleston This maps shows all the cities where complaints against Bank of America are alleging poor maintenance in African American and Latino neighborhoods across the U.S.A. The red stars show new cities being added to the complaint in August The yellow stars show cities already in the complaint against Bank of America with new evidence. New Orleans Tampa Orlando Miami 2 2

3 Methodology Used to Investigate Bank of America Foreclosures 3

4 Methodology for Investigation Neighborhoods selected for investigations were 50% or greater: Majority African American Majority Latino Majority Non-White Majority White Neighborhoods selected had high number of foreclosed homes owned or under the control of Bank of America in the zip codes evaluated. 100% of Bank of America s REOs were evaluated within the zip codes. 4

5 Evaluation Measures Curb Appeal Accumulated mail, trash, overgrown or dead grass/shrubbery, invasive plants Structure Unsecured/broken doors, locks, windows, damaged roof, fence, deck, holes, wood rot Signage Trespass/warning signs, bank owned Auction and For Sale signs, broken/discarded signs, unauthorized occupancy 5

6 Evaluation Measures Paint/Siding Graffiti, severe peeling/chipped paint, damaged siding, missing/broken shutters Gutters Missing, out of place, broken, hanging, obstructed Water Damage Mold, discoloration, water damage, erosion Utilities Tampered with or exposed 6

7 National Data on Investigations 7

8 Bank of America Nationwide Data The investigation encompasses 30 metropolitan areas including 201 cities. Zip codes within each city were identified and every Bank of America foreclosure in those zip codes were investigated. 85 cities with predominately African American or Latino neighborhoods 116 cities with predominately White neighborhoods The Fair Housing Partnership investigated 1,267 Bank of America foreclosures: 567 in African American neighborhoods 130 in Latino neighborhoods 147 in Majority Non-White neighborhoods 423 in White neighborhoods 8

9 Tampa Data During December 2015 and February 2016, the National Fair Housing Alliance investigated 35 Bank of America foreclosures in African American, Latino, and White neighborhoods in Tampa. Of these 35 Bank of America foreclosures: 10 were located in African-American neighborhoods 3 were located in Latino neighborhoods 16 was located in a non-white neighborhood 6 were located in White neighborhoods 9

10 The National Fair Housing Alliance s HUD complaint against Bank of America alleges discriminatory treatment in its maintenance of its foreclosed homes in African American and Latino neighborhoods as compared to its properties in White neighborhoods. This map show the poor quality of maintenance in African American and Latino neighborhoods. 10

11 Racial Disparities Evidence showing Bank of America fails to maintain and market its foreclosures in African American and Latino neighborhoods as compared to maintaining its foreclosure in White neighborhoods. 11

12 Tampa s Racial Disparities 65.5% or 19 of the 29 Bank of America foreclosures in African American and Latino neighborhoods had 10 or more maintenance or marketing deficiencies, while only 16.7% or 1 of the 6 foreclosures in White neighborhoods had 10 or more deficiencies. 72.4% or 21 of the Bank of America foreclosures in African American and Latino neighborhoods had overgrown or dead shrubbery, while only 50.0% or 3 of the foreclosures in White neighborhoods had the same problem. 51.7% or 15 of the Bank of America foreclosures in African American and Latino neighborhoods had broken or boarded windows, while only 16.7% or 1 of the foreclosures in White neighborhoods had the same problem. 44.8% or 13 of the Bank of America foreclosures in African American and Latino neighborhoods had holes in the structure of the home, while only 16.7% or 1 of the properties in White communities had the same problem. 12

13 Health and Safety Concerns American Heart Association National Center for Healthy Housing How foreclosed homes and used tires can threaten public health in the age of Zika. Washington Post Sonia Shah July 29,

14 Mosquito breeding grounds: These breeding grounds are found at too many foreclosed homes in communities of color across America simply because banks fail to do routine maintenance. 14

15 How foreclosed homes and used tires can threaten public health in the age of Zika Washington Post July 29, 2016 Just such an epidemic occurred in 2009, when dengue broke out in Florida. When Florida Keys mosquito-control expert, Lawrence Hribar, explained what had happened, he didn t point to an invasion of bugs or infected people. He began his explanation with the following: There were houses in foreclosure. The housing crisis forced 3.1 million American properties into foreclosure in 2008 alone, leaving behind a rash of abandoned homes and neighborhoods that have yet to be fully re-occupied. Even today, there are more than 1 million abandoned properties across the country, and Florida counts more zombie closures than almost every other state. And their neglect amplifies and spreads vectors of disease even more effectively than the wild landscapes they replaced. 15

16 Today, abandoned properties and deteriorating infrastructure, brought on by housing crises and climate change, similarly threaten us with epidemics of mosquito-borne pathogens such as Zika. first critically acknowledging and assessing our role in bringing about the conditions driving epidemics, whether abandoned homes or neglected neighborhoods, aging infrastructure or trade patterns. And then we would need to enlist a response not just from the biomedical establishment but from all sectors of society, from consumers to banks to builders. 16

17 Health and Safety Impact on Neighbors Living by Foreclosed Properties Studies indicate that people living next to or near foreclosed homes suffer from stress, high blood pressure, asthma, and anxiety. People report feeling their neighborhood is stigmatized by a foreclosed home even a well-maintained foreclosure. These health conditions have to be intensified when you live next to a poorly maintained foreclosure with boarded windows, unlocked doors, graffiti, dead animals or trash left on the property. Bank of America is guilty of allowing these conditions to fester at its poorly maintained foreclosed homes in communities of color across the United States.

18 American Heart Association The American Heart Association examined families living in an upper middle class neighborhood outside of Boston where there was one well-maintained foreclosed home. AHA found: The increases in blood pressure observed could be due in part to unhealthy stress from residents perception that their own properties are less valuable, their streets less attractive or safe and their neighborhood less stable, said Mariana Arcaya, Sc.D., M.C.P. Safety could also be a concern that affects their ability to exercise in these neighborhoods. Because the study involved predominately white, middle-class, suburban neighborhoods with singlefamily homes, research on different populations in urban and rural settings is needed, Arcaya said. 18

19 The Impact of Vacancy on Health According to the National Center for Healthy Housing... 19

20 Increase in Crime Abandoned homes and vacant buildings cause rapid neighborhood decay and blight. (Broken Window Theory) Residents feel unsafe walking on streets with boarded homes, broken windows, unsecured doors. 20

21 Poor Quality of Life Boarded up housing and vacancies contribute to social isolation, anxiety, and feelings of stigmatization. Residents fear of crime in neighborhoods with high vacancy rates may cause significant barriers to exercise and physical activity. 21

22 Unsafe Neighborhoods Unattended and unmaintained properties result in: Illegal dumping and rodent infestation 22

23 Health Risks Another slide Vacancy, along with other housing indicators, is associated with pre-term birth and poor birth outcomes that can increase the risk of developing other diseases, such as asthma, later in life. 23

24 Bank of America s Failure to Maintain Foreclosures in Tampa s African American and Latino Neighborhoods A Stark Tale of Two Recoveries: Separate and Unequal 24

25 The National Fair Housing Alliance s HUD complaint against Bank of America alleges discriminatory treatment in its maintenance of its foreclosed homes in African American and Latino neighborhoods as compared to its properties in White neighborhoods. This map show the poor quality of maintenance in African American and Latino neighborhoods. 25

26 Bank of America Foreclosures in Communities of Color and White Neighborhoods 2015 and 2016 Unfortunately for the African American and Latino neighborhoods in Tampa, Bank of America consistently neglected to maintain the its foreclosures in 2015 and The photos you see in this power point document the same problems of failed maintenance from 2015 and Additionally, the exact same discriminatory patterns in Tampa are replicated in all the cities that were investigated by the National Fair Housing Alliance and the fair housing partnership across the United States. 26

27 Bank of America s Poorly Maintained Foreclosures in Communities of Color 27

28 This is a Bank of America foreclosure located in a Latino neighborhood. There is no for sale sign and the shrubbery in the front yard has not be trimmed. Around back there are accumulated leaves, trash, boarded doors, holes, and more. 28

29 Bank of America boarded the front door and it is secured by a flimsy padlock. The doorknob is missing. 29

30 The side and back yards are covered in dead leaves. Bank of America also left a pile of dead shrubbery in the yard. This creates the perfect breeding ground for insects and rodents to nest. 30

31 The backyard and patio are also covered in dead leaves. There are significant amounts of mold and algae on the structure what homebuyer would want to purchase the home in this condition? 31

32 Bank of America failed to properly secure holes leading into the roof, allowing critters, insects, and the elements into the structure. In fact, a bird has nested inside one of the home s eaves. 32

33 The neighbors of the Bank of America foreclosure have well maintained homes with clean and mowed yards. Bank of America s property is creating an eyesore for the entire community. 33

34 Here is another Bank of America foreclosed property in a Latino neighborhood. Again there is no for sale sign. Multiple windows in the front are boarded, and around the property there is trash, dead leaves and overgrown shrubbery, holes, broken, missing, and obstructed gutters, and more. 34

35 The shrubs in the front yard are overgrown and Bank of America left trash and leaves at the base of the plants instead of cleaning it up properly. 35

36 The side yard is covered in trash and dead leaves, which are spilling over to the other side of the sidewalk. Bank of America failed to maintain the yard of its foreclosure in this Latino neighborhood. Notice that the neighbor s yard across the street is free of leaves and debris. 36

37 Here, another view of the side yard and side of the house shows accumulated dead leaves, overgrown shrubbery, and boarded windows at the Bank of America foreclosure. 37

38 Around back, Bank of America has boarded almost every single window. The gutters of the home are also completely missing. 38

39 On the other side of the foreclosure, small plants have begun to grow on top of the roof. This signals that Bank of America has not serviced this home in a long time. 39

40 The neighbor is taking great care of his or her property and lawn, yet must live next door to the poorly maintained Bank of America foreclosure. 40

41 This Bank of America property in an African American neighborhood should have great potential for a perspective homebuyer. However, Bank of America has failed to market the home with a for sale sign and the home looks blighted from the curb with its various boarded windows. 41

42 Above the front door Bank of America has left an active wasps nest. Potential homebuyers and their agents are at risk of getting stung if they want to view the inside of the home. 42

43 In the back of the Bank of America foreclosure there are more boarded windows as well as algae, overgrown shrubbery, and an unsecured door. Let s take a closer look 43

44 Along the back wall of the foreclosure, Bank of America has neglected to remove dead shrubbery and has not treated the mold/algae growth on the siding. 44

45 More boarded windows in the back of the home. The back door of the home is damaged and completely unsecured. The doorframe is also damaged with nails sticking out. A potential homebuyer would have to choose between the safety hazard of getting stung by wasps in the front or scratched by 45 rusty nails in the back if they wanted to view this home.

46 Also in the backyard, Bank of America has left remnants of a dilapidated shed among dead and overgrown shrubbery. The foreclosure s fence is also damaged and in disrepair. 46

47 This Bank of America foreclosure is also located in an African American neighborhood. From the curb trash is already visible. 47

48 The grass of this Bank of America foreclosure is overgrown and weeds have started to grow up the fence. More trash is left throughout the yard. 48

49 At first glance this backyard might look relatively clean. However, when we take a closer look 49

50 In the backyard there is a large pile of tree and shrub debris mixed with significant amounts of trash. Instead of disposing of it properly, Bank of America has chosen to hide it among the trees. 50

51 Also in the yard was an unidentified decomposing animal that was emitting a terrible smell. How does Bank of America expect to sell this home with a smelly dead animal in the yard? How can Bank of America say they have constant eyes on the property when this dead animal proves otherwise? 51

52 This well-maintained neighbor must live next door to a Bank of America property with a foul-smelling dead animal in its yard. The dead animal s stench permeated the entire foreclosure s yard, so there is no doubt the neighbor smelled it as well. 52

53 This Bank of America property is located in an integrated neighborhood and is in deplorable condition. You can see accumulated dead leaves and dead shrubbery, but it gets worse... 53

54 Bank of America has held this property in its inventory since July of There is no excuse for the mountain of dead shrubbery in the front driveway. 54

55 The right side of this BoA foreclosure is covered in invasive plants and overgrown shrubbery. The invasive plants are obstructing the gutters forcing rain water into the roof and down the foundation. 55

56 Bank of America has also neglected the backyard; it is covered in dead leaves and weeds and has large piles of trash. This foreclosure is an eyesore for the community at every angle. 56

57 The left side of the home is in equally bad shape. Bank of America has allowed the gutters to fill with plants and plant debris, and more trash lays in the yard. 57

58 The side door is open and ajar, posing a safety risk for people in the neighborhood, especially children. Investigators were not able to lock the door and there was no Bank of America contact information posted anywhere on the home. 58

59 Once again Bank of America is a terrible neighbor for the surrounding community. The neighboring homes are taking care of their properties and are being put at risk by Bank of America s failure to properly secure and maintain their home. This property ultimately sold to an investor. 59

60 Yet another Bank of America property in an African America and Latino neighborhood with no for sale sign. The fence of the home is almost completely missing and takes away from the home s curb appeal before you even step foot on the property. 60

61 On the side of the front porch there is a dead lizard. The lizard has already decomposed and appears to have petrified how long has Bank of America left this here? 61

62 Invasive plants have started to climb up the side of the home and snake around utility boxes. 62

63 Bank of America has failed to secure a large hole in the siding of the home, and has not repaired the broken foundation. These holes invite more vermin into the home. 63

64 The backyard of this Bank of America foreclosure is neglected and uncared for. A potential homebuyer might be discouraged after seeing this home s landscaping needs. 64

65 How does Bank of America maintain its foreclosures in White neighborhoods? Is the grass cut? Are the shrubs trimmed? Did the bank remove all trash and debris? 65

66 This Bank of America property in a white neighborhood has excellent curb appeal and a visible for sale sign. This foreclosure was in Bank of America s inventory for less than a year before selling to owneroccupants. 66

67 While there are accumulated leaves in the yard there is no trash and no boarded doors or windows. 67

68 Here is another wellmaintained Bank of America foreclosure in a white neighborhood. The grass is cut and the shrubs are nicely trimmed. 68

69 Both sides of the Bank of America foreclosure in this white neighborhood are mowed and free of trash and debris. 69

70 Bank of America has made sure to properly maintain all sides of this modest foreclosure. 70

71 Tale of Two Recoveries: Separate and Unequal Bank of America fails to take care of its foreclosed homes in African American and Latino neighborhoods. 71