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In an episode of the 1970s sitcom Good Times, the Evans family goes house hunting. In one scene, Florida, the family's matriarch, and her eldest son, J.J., return to their small two-bedroom one-bathroom in a Chicago high-rise housing project with the exciting news of having found a fixer-upper in a tough neighborhood. "You know, it's really not a bad $15,000 house — and we're getting it for a real steal at $25 (thousand)," J.J. deadpans. The joke here, of course, is a reference to the practice of redlining, a discriminatory housing practice where Black residents from within particular boundaries are denied home loans or charged exorbitant interest rates. Despite being fully aware that they would be exploited, the Evanses are filled with hope of achieving their piece of the American Dream and owning their home. Fast forward to today and little has changed. America is still seducing its people with that dream, and Black folks are still chasing it. Today, Black Americans hold about 70% less wealth than non-Black families. However, of the wealth African Americans do possess, about 70% of it is tied up in assets such as pensions and their homes. This week, Reckon's Alexis Wray brings us a story about a recent Biden Administration push to encourage HBCU graduates toward homeownership despite persistent housing discrimination, rising interest rates and other economic factors, particularly for younger Americans. — R.L. and Alexis |
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The housing market is as unpredictable as McDonald’s ice cream machines and even if they are working – it’s unclear if you will even get a cone, particularly if you're Black. Despite the legacy of racism in housing, the federal government nonetheless persists in trying to get Black people to buy houses. Recently, the U.S. Department of Housing and Urban Development hosted a roundtable discussion about "reimagining the HBCU student pathway to homeownership" by highlighting the importance of credit in the buying process, essential housing programs and counseling sessions. “It is so critically important we focus on every corner and aspect of our country. If we allow this time – our moment in history to ignore and leave behind segments of our community then shame on us,” Alan Williams, HUD Deputy Assistant Secretary stated in his welcome. Historically, housing discrimination against Black folks like redlining, which labeled certain areas with neighborhoods of racial and ethnic minorities as risky for home loans and biased appraisals undervaluing Black homeowners has made the reality of equitable home buying and selling immensely challenging. While the Fair Housing Act of 1968 was created to prohibit discrimination in the sale, rental and financing of housing based on race, religion, national origin and sex, future and current Black homeowners continue facing systemic racism. With HUD’s new 2023 Affirmatively Furthering Fair Housing rule under the Fair Housing Act, the agency aims "to remedy the effects of the long history of discrimination in housing." Visit Reckon to read the full story. |
The "racial homeownership gap" between Black and white families that own homes is now 29% compared to 26% in 2011, according to the National Association of Realtors, meaning the gap grew over the span of a decade. The next generation of HBCU graduates is Gen Z and they not only contend with student loan debt but 50% of them are also challenged with making just enough to cover basic living expenses, let alone saving. With close to 60% of Gen Zassociating owning a home with achieving the American Dream, this American Dream of homeownership also requires maintenance like cleaning out gutters, cutting grass and unexpected housing issues that renters don’t have to face with their predictable expenses. As of fall 2022, average rents had increased about 10% over the previous two years. In the same period, mortgage payments had increased 60%, according to this video from the Wall Street Journal. |
If making steps toward homeownership as a Black American is your goal then these housing programs might just be for you. T.D. Jakes Real Estate Ventures LLC Later this year Bishop T.D. Jakes will break ground in Atlanta, beside Tyler Perry Studios on more than 95 acres of land with T.D. Jakes Real Estate Ventures, LLC. (TDJ REV), a group making housing more attainable for the Black community by building a development of affordable homes for lease or sale. T.D. Jakes Real Estate Ventures, LLC also plans to offer its programs to mixed-income housing residents, as well as gather retail constituents to create grocery stores and hospitals within his 95 acres. Home Free-USA Owners of the largest African American mortgage servicing company in the country, National Loan Service Center started Home Free-USA in 1994 as a way of closing the homeownership gap between Black and white Americans by preparing renters of color for mortgage approvals and counseling future homeowners through the buying process. Home Free-USA also offers free home-buying counseling for the 14 HBCUs connected to their next network Home Free-USA specifically works with HBCU students to land them internships and careers in mortgage and real estate companies. H.E.L.P. Community Development Corporation From financial management, and first-time home buyers counseling to student loan debt action plans, the H.E.L.P. Community Development Corporation creates pathways to economic stability for interested homebuyers across the country. H.E.L.P. Community Development Corporation not only works to empower future home buyers but also creates programs to steer homeowners away from the possibility of foreclosure. |
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Thanks for reading. Aria's back next week. Until then... peace! R.L. |
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