Supreme Court Disposes of Case That Could Have Reduced the Ability of “Testers” to Bring Lawsuits

The National Fair Housing Alliance (NFHA) has praised the Supreme Court disposal of a critical case about the ability of testers to determine compliance with civil rights laws. The case regarding a Maine hotel that could have made it harder for people with disabilities to learn in advance whether a hotel’s accommodations meet their needs. Hotels and other business interests had urged the justices to limit the ability of fair housing testers to file lawsuits against hotels that fail to disclose accessibility information on their websites and through other reservation services.

“The Supreme Court exhibited sound judicial prudence in disposing of the Acheson v. Laufer case on mootness grounds. The long-standing precedent allowing for civil rights ‘testers’ to uncover unlawful discrimination across a range of markets – housing, employment, credit, and technology – continues to serve an invaluable function in vindicating our nation’s civil rights laws. The Acheson case had carried significant implications for the ability of “testers” to bring lawsuits, potentially jeopardizing the essential work undertaken by advocates in the pursuit of fair housing and equitable opportunities. Because the potential detrimental effects of this case were so profound, NFHA filed an amicus brief with the Supreme Court, joined by 50 of our operating members, which are local fair housing enforcement agencies, and three fair housing testers.

The decision provides stability under long-standing Supreme Court jurisprudence to those working to advance fair housing initiatives.  

*****

Read the December 5, 2023 NFHA release.

Read the December 5, 2023 Evansville Tristate Homepage article.

The largest credit union rejected over 50% of its Black home mortgage applicants

A CNN analysis has found that Navy Federal Credit Union (Navy Federal) - the largest credit union - has the widest disparity in mortgage approval rates between White and Black borrowers of any major lender. In 2022, the disparity increased.

Navy Federal was founded in 1933 to serve Navy employees, but is now open to all members of the armed forces, Department of Defense personnel, veterans, and their relatives. With a membership around 13 million, it has over $165 billion in assets. Navy Federal lends to military servicemembers and veterans. 

Navy Federal approved more than 75% of the White borrowers who applied for a new conventional home purchase mortgage in 2022, according to the most recent data available from the Consumer Financial Protection Bureau. Less than 50% of Black borrowers who applied for the same type of loan were approved. In 2022, the credit union rejected about 3,700 Black applicants for home purchase mortgages. Navy Federal also approved Latino borrowers at significantly lower rates than White borrowers.

While many banks - in Baltimore and elsewhere - also approved White applicants at higher rates than Blacks, the almost 29% gap in Navy Federal’s approval rates was the widest of any of the 50 U.S. lenders that originated the most mortgage loans in 2022. The disparity was the same for White and Black applicants who had similar incomes and debt-to-income ratios. Navy Federal approved a slightly higher percentage of applications from White borrowers making below $62,000 a year than it did of Black borrowers making $140,000 or more.

CNN's statistical analysis also found that Black applicants to Navy Federal were over twice as likely to be denied as White applicants even when over 12 different variables – such as income, debt-to-income ratio, property value, downpayment percentage, and neighborhood characteristics – were the same.

Mortgage lending experts and fair housing advocates commented that the racial gaps in Navy Federal’s approval rates were very large and raised questions about the institution’s lending practices. Lisa Rice, the president and CEO of the advocate National Fair Housing Alliance said the racial gaps in Navy Federal’s lending identified by CNN were “some of the largest I’ve seen.”

It is important to note that CNN’s analysis doesn’t prove that Navy Federal discriminated against any borrowers. However, it does show significant disparities in the credit union’s approval rates for borrowers of different races – and that it has larger racial gaps than many other large financial institutions. The analysis was based on data collected under the Home Mortgage Disclosure Act.

*****

Read the December 14, 2023 CNN article.

Register for NCRC's 2024 Just Economy Conference

 

Are you passionate about building a more just and equitable future? If so, would you be interested in becoming an NCRC member and enjoying discounted tickets for the 2024 Just Economy Conference?    The 2024 Just Economy Conference is the leading national conference for economic and social justice. Don’t miss your chance to join activists, elected officials, policymakers, community leaders, civil rights groups, faith-based organizations and economic and social justice advocates from across the nation. This is your chance to connect with a vibrant community of individuals dedicated to making a difference.   Join NCRC today and gain access to exclusive member benefits, including discounted tickets for the conference. NCRC members will also have the opportunity to participate in our Hill Day on April 2.    Treat yourself to a holiday gift of a Just Economy Conference ticket today!    We can’t wait to see you there, Team NCRC P.S. If your organization doesn’t qualify for NCRC membership, you can join our Just Economy Club, and still enjoy some of the perks of membership, like discounted tickets to the Just Economy Conference!

***** Source: National Community Reinvestment Coalition (NCRC) email, December 14, 2023.

Copyright © 2023 NCRC, All rights reserved. Manage Preferences/Unsubscribe

National Community Reinvestment Coalition 740 15th St NW, Suite 400 Washington,DC 20005

  HUD Settlement Agreement Requires Oklahoma Housing Provider Pay $300,000 to Victims of Housing Discrimination

The U.S. Department of Housing and Urban Development (HUD) has entered into a Voluntary Compliance Agreement-Conciliation Agreement (VCA-CA) with Cushing Housing Inc. requiring respondents to pay $300,000 to individuals, including former tenants, that were subjected to housing discrimination at Cushing’s property. Read the agreement.

“Under the Biden-Harris Administration, we are taking on housing discrimination like never before,” said HUD Secretary Marcia L. Fudge. “HUD is holding people accountable, and ensuring those who face discrimination have a voice to build a fairer nation for all.”

The agreement stems from a complaint filed by tenants alleging Cushing Housing violated civil rights laws when it failed to address serious, racially motivated harassment that denied them the ability to peacefully enjoy their housing. The harassment was so severe that it left them fearful of leaving their apartment and took a substantial toll on their mental health. The VCA-CA resolves HUD’s October 26, 2022 Letter of Findings which found respondents discriminated against the tenants in violation of Title VI of the Civil Rights Act of 1964.

Title VI prohibits discrimination based on race by recipients of federal financial assistance, including where a recipient fails to adequately respond to known racial harassment against a beneficiary of its program. Title VI also prohibits retaliating against a person engaged in a protected activity, such as where they seek to have the housing provider address such racial harassment. Cushing Housing is required to comply with Title VI because they are a recipient of Federal financial assistance from HUD.

“No tenant should be subjected to harassment and subsequent retaliation by a HUD funded housing provider” said Demetria L. McCain, HUD’s Principal Deputy Secretary for Fair Housing and Equal Opportunity. “This agreement and the previously issued Letter of Findings demonstrates HUD’s commitment to upholding our Nation’s civil rights laws.”

HUD’s investigation found that residents began harassing the complainants, a White mother and daughter, when the daughter began dating a Black man and was seen with this man at the property. HUD’s investigation found that complainants repeatedly notified Cushing Housing of this harassment, but that Cushing Housing failed to take any steps to address it. The pervasive harassment included calling the complainants racial slurs and threatening racially motivated violence. Despite being on notice of this harassment, Cushing failed to take prompt and effect steps reasonably calculated to end it, instead ultimately issuing a notice to vacate to both the complainant mother as well as the harassers, which HUD found to be unlawful retaliation against the mother for the reporting racial harassment.

In addition to the $300,000 payment to complainants and an aggrieved individual, the agreement requires Cushing Housing to establish an anti-harassment policy as well as a fair housing and civil rights compliance policy. Both policies must be made available to all tenants and include formal grievance procedures. Respondents are also required to obtain fair housing and civil rights training for all officers, agents, and employees.

People who believe they have experienced discrimination may file a complaint by contacting HUD's Office of Fair Housing and Equal Opportunity at (800) 669-9777 (voice) or (800) 877-8339 (Relay).

Housing discrimination complaints may also be filed at hud.gov/fairhousing.

Report Details Redlining of Native Lands

"REDLINING THE RESERVATION: The Brutal Cost Of Financial Services Inaccessibility In Native Communities"

The National Community Reinvestment Coalition (NCRC) and the Native Community Capital have just released in December, 2023 an analytical report detailing the severe negatives of the lack of accessibility to financial services by residents of Native Land Areas. These formerly-called "Indian reservations" have much lower levels of economic prosperity and poorer life chances than other Americans.

This is especially relevant now because in late 2023 new Community Reinvestment Act of 1977 (CRA) regulations specifically included Native Land Areas for the first time. These regulations are aimed at reducing the practice of redlining – the intentional exclusion by banks of minority, immigrant, and poor communities from financial services. Redlining denies creditworthy applicants housing loans in specific neighborhoods, irrespective of their eligibility.

The major findings of the report are:

(1) Traditional mortgage lending is failing Native American families because loan capital should instead flow through Native-led financial institutions aware of the administrative issues, geography, and culture of tribal lands. None of the three largest home lenders in the U.S. issue federally-guaranteed mortgages for the construction of new permanent homes in tribal lands. Therefore, little credit is promoting wealth-building via Native Community Development Finance Institutions (CDFIs), which are often focused exclusively on addressing the lack of access to capital in tribal communities.

(2) Half of all home purchase loans on tribal lands are used to purchase manufactured mobile homes. This is four times the rate elsewhere. Native Americans who succeed in getting a mortgage are often using it to purchase a dwelling that will decrease in value rather than foster generational wealth-building. As a result, wealth is flowing from already-impoverished Native communities because of high-cost lending on low-value housing to financier Warren Buffett, whose firms have a monopoly on manufactured home lending in the report's study area.

(3) Tribal lands received less than 1% of that loaned to small businesses in Arizona and New Mexico, starving Native American communities of economic opportunity. From 2018 to 2021, 0.004% of small business dollars loaned in Arizona and 0.012% in New Mexico went to borrowers on tribal lands. The average census tract on tribal land received only five small business loans, compared to 82 such loans made on average to non-tribal tracts.

(4) Tribal areas have far higher quantified financial need than other rural areas. The financial needs index indicates significantly worse access in tribal areas, meaning that people living on Tribal Lands are not being served nearly as well as other residents of Arizona and New Mexico.

Read the December 2023 NCRC report.

Download the report

DOWNLOAD FULL REPORT

Governor Moore Announces Program to Increase Homeownership Opportunities in Redlined Communities

 

Governor Moore Announces Program to Increase Homeownership Opportunities in Historically Redlined Communities ANNAPOLIS, MD (December 4, 2023) — Governor Wes Moore today announced the UPLIFT (Utilizing Progressive Lending Investments to Finance Transformation) program to increase homeownership opportunities, one of the most powerful drivers of the racial wealth gap, in chronically underinvested communities with a history of redlining. Administered through the Maryland Department of Housing and Community Development, the program will address homes impacted by appraisal gaps by accelerating the pace of new construction and rehabilitation of quality affordable housing in strategically identified communities across Maryland. "Tackling the racial wealth gap is a core priority of the Moore-Miller Administration. We must actively work to reverse decades of disinvestment through good policy decisions and innovative programs like this one," said Gov. Moore. "Maryland will be a leader in these efforts, and we will continue to expand work, wages, and wealth for all Maryland families." UPLIFT builds on the department's past initiatives to create a public-private partnership to invest in disinvested communities. Through the program, selected developers will build, sell, and rehabilitate quality affordable housing in targeted neighborhoods in accordance with design and construction standards that ensure quality, timely production, and accountability. Homes in these communities appraise for less than the cost to build due to patterns of historic disinvestment depressing the home values. UPLIFT funds the difference between the appraised value and the sales price, and over time the new homes will elevate home values and reduce the gap in UPLIFT neighborhoods. Additionally, 25% of the homes in the program will be reserved for households with incomes below the area median income to become homeowners. Funded for $10 million through the Fiscal Year 2024 budget, UPLIFT builds on the department's Homeownership Works (HOW) pilot program, created in 2021. The first phase of the program is investing $10 million into new construction and rehabilitation projects in two Maryland neighborhoods, Johnston Square in Baltimore and Pine Street in Cambridge. On November 15, the first four homes in Johnston Square rehabilitated through the pilot program were celebrated in a ribbon cutting ceremony. The four homes, valued at approximately $24,000 pre-rehabilitation, are now entering the market priced in the low $300,000 range. "We have an opportunity to counteract historic disinvestment in our communities by building vibrant neighborhoods, improving home energy efficiency and quality of life, and building social connections between residents," said Maryland Department of Housing and Community Development Secretary Jake Day. "This is just the beginning of those efforts, and we will continue to create new opportunities for Maryland homeowners to thrive." UPLIFT projects are required to be located in both a Low-Income Census Tract and in an area designated as a Maryland Sustainable Community. To identify qualifying areas, visit https://maryland.maps.arcgis.com/apps/instant/lookup/index.html?appid=dff652a3d61a4d79abfc64f37be38689&locale=en&findSource=2&find=12455%252C%2520Margaretville%252C%2520New%2520York. To review the UPLIFT draft program guide, visit https://dhcd.maryland.gov/HousingDevelopment/Pages/UPLIFT.aspx. Comments will be accepted through December 29 and can be sent to UPLIFT.DHCD@Maryland.gov. The UPLIFT program application will open in early 2024. # # #

CONTACT: Allison Foster, Director of Communications - allison.foster@maryland.gov Brandi Bottalico, Director, Office of Public Information - brandi.bottalico@maryland.gov

Biennial Civil Rights & Fair Housing Gala Celebration

 

Mark Your Calendars - MCCR's Biennial Civil Rights & Fair Housing Gala Celebration

Having trouble viewing this email? View it as a Web page. SAVE THE DATE Maryland Commission on Civil Rights' Biennial Civil Rights & Fair Housing Gala Celebration Celebrating Milestones: Pivotal Moments in History. Saturday, August 24, 2024 6:00pm until 10:00 pm at the Maryland Live! Hotel Ballroom 7002 Arundel Mills Circle #7777 Hanover, Maryland 21076 The Maryland Commission on Civil Rights is excited to announce that our Biennial Civil Rights & Fair Housing Gala Celebration will be held on August 24, 2024, from 6:00pm to 10:00pm at the Maryland Live! Hotel Ballroom in Hanover, Maryland. This year, our theme is "Celebrating Milestones: Pivotal Moments in History." In recent years, state and local organizations have achieved crucial milestones through their diversity in leadership. The values of cultural diversity and inclusiveness involve respect for and acceptance of different philosophies and values. By incorporating different cultures, we can inspire innovations and excellence in our lives, workplaces, communities, and the world. We look forward to seeing everyone there! Ticket Prices & Sponsorship Opportunities to Follow - Stay Tuned Victim of Discrimination? Training & Partnerships HOME      ABOUT MCCR      SERVICES      PUBLICATIONS      EVENTS      PRESS      CONTACT US

Stay Connected with the Maryland Commission on Civil Rights