A Tale of Two Recoveries: Separate and Unequal

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

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 2016. The yellow stars show cities already in the complaint against Bank of America with new evidence. New Orleans Tampa Orlando Miami 2 2

Methodology Used to Investigate Bank of America Foreclosures 3

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

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

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

National Data on Investigations 7

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 was investigated. 85 cities with predominantly African American or Latino neighborhoods 116 cities with predominantly White neighborhoods The Fair Housing Partnership has 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

Philadelphia Data Between October 2011 and July 2016, the National Fair Housing Alliance investigated 53 Bank of America foreclosures in African American, Latino, and White neighborhoods in the Philadelphia, PA metropolitan area. Of these 53 Bank of America foreclosures, 28 were located in African American neighborhoods 12 were located in Majority Non-White neighborhoods 13 were located in White neighborhoods 9

The National Fair Housing Alliance is amending its HUD complaint against Bank of America to add new evidence in the Philadelphia, PA metro area being filed today (8/31/2016). This map shows the poor quality of maintenance in African American and Latino neighborhoods by Bank of America. New evidence from 2014 and 2016 is represented by red triangles. There are many new red and orange triangles in African American and Latino neighborhoods. Green dots and triangles indicate good maintenance of the foreclosure. 10

Racial Disparities Evidence showing Bank of America fails to maintain and market its foreclosures in communities of color as compared to maintaining its foreclosures in White neighborhoods 11

Philadelphia s Racial Disparities 57.5% or 23 of the Bank of America foreclosures in African American and Latino neighborhoods had trash or debris, while only 23.1% or 3 in predominately White neighborhoods had the same problem. 30.0% or 12 of the Bank of America foreclosures in African American and Latino neighborhoods had unsecured or broken doors, while only 7.7% or 1 in predominantly White neighborhoods had the same problem. 32.5% or 13 of the Bank of America foreclosures in African American and Latino neighborhoods had holes in the structure of the home, while only 7.7% or 1 in predominantly White neighborhoods had the same problem. 72.5% or 29 of the Bank of America foreclosures in African American and Latino neighborhoods had no professional for sale sign marketing the home, while only 23.1% or 3 in predominantly White neighborhoods had the same problem. 12

Health and Safety Concerns American Heart Association http://newsroom.heart.org/news/living-near-foreclosed-property-linked-to-higher-blood-pressure 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, 2016 13

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

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

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

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.

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

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

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

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

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

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

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

Bank of America Foreclosures in Communities of Color and White Neighborhoods Unfortunately for the African American and Latino neighborhoods in Philadelphia, Bank of America consistently neglected to maintain its foreclosures in 2011, 2013, 2014, and 2016. The photos you see in this PowerPoint document the same problems of failed maintenance from 2011 to 2016. Additionally, the exact same discriminatory patterns in Philadelphia 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

New Evidence that Bank of America Continues to Fail in the Marketing and Maintenance of REO Properties Bank of America Foreclosures in African American and Latino Neighborhoods from 2014 to 2016 27

Bank of America has chosen to list this property on Auction.com. Located in an African American neighborhood, it has no for sale sign, boarded windows, damaged steps, peeling paint, and more. 28

The steps leading to the home s front door are damaged and present a tripping hazard. 29

The front yard has trash and debris laying in the grass, and invasive plants have begun to grow. 30

Bank of America has not swept the front porch and has let trash and mail accumulate. This is a poor first impression for a potential homebuyer visiting the home. 31

In the backyard there is more debris in the yard and the fence is broken, leaving the back of the home accessible. There are also invasive plants growing on the fence that need to be removed. 32

Bank of America has boarded the side door of this home and has left a broken window completely unsecured in the back of the house. 33

Here is another Bank of America foreclosure in an African American and Latino neighborhood that is being auctioned on Auction.com. 34

Taking a closer look at the front of the home, siding is missing and underneath is peeling and chipped paint. 35

Bank of America has failed to replace windows all over the home and instead has boarded them. Some of the boards are haphazardly placed and can easily be pulled off. 36

This side door is missing a screen door and is only secured with a padlock. The windowpane has been broken and someone could easily reach inside to unlock the door. 37

In the backyard Bank of America has failed to repair a damaged and dilapidated fence, and shrubbery has begun to overtake the yard. 38

This Bank of America foreclosure in an African American neighborhood only has an auction sign in the yard. It was listed for sale on Bank of America s website and yet, was in deplorable condition. Let s take a look 39

There is a boarded window in the front of the home, visible to the entire neighborhood. The porch railing is damaged and caution tape was haphazardly laid around it. There is also debris on the front porch. 40

The side of the home is covered in invasive plants, some dead, and backyard access is hindered by overgrown shrubbery. 41

Bank of America has left a large pile of trash and debris in the backyard instead of disposing of them properly. 42

The entire back of the house is covered in invasive plants it is not possible to access the back door or even see the upstairs windows. How can Bank of America consciously list this home on their website when it is in this condition? 43

This Bank of America foreclosure located in an African American neighborhood has no for sale sign and its front view is almost completely covered with overgrown shrubbery. 44

Here is a closer look at the front steps grass and weeds are growing onto the concrete. This is not a very welcoming first glance at the home. 45

From the top of the front steps the overgrown front yard is more visible. There are missing downspouts and an entire gutter piece laying in the grass. Invasive plants are also 46 growing up the gutter.

The backyard is also overgrown and trash has been left to accumulate. There are more missing and damaged gutters in the back of the house as well. 47

These neighbors have beautiful, wellmaintained yards and must live next to Bank of America s unmaintained eyesore. 48

This Bank of America property in an African American neighborhood has accumulated mail in the front yard and trash on the front patio. It is clear that no one from the bank has been by to visit this property in some time. 49

A closer look at the front patio shows trash, unruly invasive plants, and a broken window that has not been fixed. 50

In the backyard Bank of America has left more trash and invasive plants. The front and back sides of this home are an eyesore for the community. 51

Bank of America Foreclosures in White Neighborhoods from 2014 to 2016 52

Bank of America can get maintenance and marketing right when the property is in a White neighborhood. This property was listed on Bank of America s website and has a nice for sale sign and the grass is mowed and edged. 53

The side yard is nicely mowed and there is no trash or debris. 54

The back of the home is clear of trash and debris and all doors and windows are secured. 55

This Bank of America foreclosure in the middle of the photograph is located in a White neighborhood and has a professional for sale sign posted. The front yard is free of trash and debris and was recently mowed. 56

The back of this home is also clean and well kempt. 57

Here are some of the foreclosures filed in Philadelphia's first complaint in 2013 Bank of America was placed on notice by the National Fair Housing Alliance in 2009 that there were serious problems with the quality of it maintenance and marketing of foreclosures in communities of color. Philadelphia investigations began in October 2011 and you can see that there has been no improvement in the quality of maintenance since the beginning. 58

This Bank of America foreclosure in an African American neighborhood was visited in October 2011 and had no for sale sign and a severely overgrown front yard that was accumulating leaves and trash. 59

This Bank of America foreclosure in an African American neighborhood was visited in April 2013 and again had no for sale sign. The front steps to the home were covered in discarded mail and glass shards. 60

This Bank of America foreclosure in an African American neighborhood was visited in April 2013 and had no for sale sign. The front yard was almost completely dead and devoid of healthy grass; where there was grass or weeds it was overgrown. There was also a damaged fence. 61

Another Bank of America foreclosure in an African American neighborhood visited in April 2013 that had no for sale sign. The front steps were in complete disrepair, the front yard was covered in weeds, and there was a boarded window and wood rot. 62

This Bank of America foreclosure visited in May of 2013 is located in a White neighborhood and had a professional for sale sign in the front yard and was well-maintained. 63

Another Bank of America foreclosure visited in May of 2013 is located in a White neighborhood and was well-maintained with a mowed front and backyard. 64