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About The skanner. (Portland, Or.) 1975-2014 | View Entire Issue (Aug. 20, 2014)
National News By Andre F. Shashaty Special to the NNPA from New America Media NEWS ANALYSIS On the surface, the unrest in Ferguson, Mo., was about local police using deadly force on an unarmed young man. But on a deeper level, it reflected the increasing poverty and economic decline that affects ethnic communities all over Amer- ica. Despite rosy reports in the media about the end of the national foreclosure crisis and the recession that fol- lowed, all is not well in our inner cities and suburbs with largely minority popu- lations, like Ferguson. The foreclosure crisis was hard on many Americans, but it was a disaster for communities of color, including the citizens of Ferguson. Half of Ferguson Homes Underwater In the zip code that encompasses Ferguson, half (49 percent) of homes were underwater in 2013, mean- ing the home’s market value was below the mortgage’s outstanding balance. This condition (also called “neg- ative equity”) is often a first step toward loan default or foreclosure, according to the recent report, “Under- water America,” from the Haas Institute for a Fair and Inclusive Society at the University of California, Berkeley. Mortgage lenders targeted predominantly black and Hispanic areas for the high- est-risk, highest-cost types were sold risky mortgages had good credit, decent incomes and everything else necessary to qualify for traditional long-term, fixed- rate loans. Yet, they were not offered those kinds of loans, but instead “steered into exotic and costly mort- gages they did not fully understand and could not afford,” the commission said. This “deliberate targeting of minority areas for the sale of risky and expensive Mortgage lenders targeted predominantly black and Hispanic areas for the highest- risk, highest-cost types of mortgage loans of mortgage loans, such as adjustable-rate mortgages and loans with high prepay- ment penalties. This led to higher-than-average default rates, according to the Housing Commission estab- lished by the Bipartisan Policy Center in Washing- ton, D.C. Many of the families that loans,” as the commission described it, wreaked havoc on the financial wellbeing of affected families and undermined the stability of entire neighborhoods. African-American and Lati- no borrowers were almost twice as likely to have lost their homes to foreclosure as non-Hispanic whites, We honor the many accomplishments of African Americans. It is our primary goal as a labor union to better the lives of all people working in the building trades through advocacy, civil demonstration, and the long-held belief that work- ers deserve a "family wage" - fair pay for an honest day's work. A family wage, and the benefits that go with it, not only strength- ens families, but also allows our communities to become stronger, more cohesive, and more responsive to their citizens' needs. Our family wage agenda reflects our commitment to people working in the building trades, and to workers everywhere. In this small way, we are doing our part to help people achieve the American Dream. This dream that workers can hold dear regard- less of race, color, national origin, gender, creed, or religious beliefs. The Pacific Northwest Regional Council of Carpenters Representing more than 5.000 construction workers in Oregon State. Do you want to know more about becoming a Union carpenter? Page 8 The Portland and Seattle Skanner August 20, 2014 PHOTO COURTESY SILICON VALLEY DE-BUG Behind Ferguson’s Unrest: Black-white Housing gap A local organizer in a town neighboring Ferguson, Mo., shows a typical “porch.” according to the Center for Business and Professional among mostly white com- People for the Public Inter- munities against federal Responsible Lending. legal initiatives to enforce est. Black-White Housing Adding to the impact of the fair housing and fair Divide “Historic” foreclosures is the ongoing lending laws. The homeownership rate economic slump and the ‘Arrested Progress’ for African-American high rate of black unem- Against Poverty households peaked at 49 ployment. As a After the riots in 1965, percent in 2004, according consequence, poverty and to Harvard’s Joint Center the despair and anger that 1966 and 1967, the National for Housing Studies report, go with it, are increasing in Advisory Commission on “The State of the Nation’s suburbs like Ferguson. Civil Disorders (known as Housing 2013.” The rate of Between 2000 and 2011, the the Kerner Commission) black home ownership–with impoverished population in issued a report saying, “Our all the potential for upward suburbs grew by two- nation is moving toward mobility it offers–fell to thirds—more than twice the two societies, one black, 43.9 percent in 2012. The rate of growth in cities, one white—separate and homeownership rate among according to Confronting unequal. Segregation and white households declined Suburban Poverty in Ameri- poverty have created in the during that time, too, but ca, a 2013 book from the racial ghetto a destructive totally remained at 73.5 percent. Brookings Institution Press. environment unknown to most white “The black-white gap [in 50 Years Since Watts homeownership rates] has The year 2015 will mark Americans.” Today, ethnic communi- reached historic propor- the 50th anniversary of the tions,” Harvard’s report beginning of an explosive ties are suffering setbacks said. series of urban events in again. Even as our popula- There has also been a American history. An tion is becoming more powerfully negative ripple August 1965 traffic arrest in diverse, our communities effect on other property South Central Los Angeles are becoming more segre- owners who never had a lit the fuse on one of the gated and income inequality increasing. problem making their mort- most devastating civil is gage payments but owned upheavals in American his- “Arrested progress in the fight against poverty and property near people who tory. did. The losses in household African-American resi- residential segregation has wealth that resulted from dents of the Watts section of helped concentrate many foreclosures and abandon- Los Angeles rebelled African Americans in some ment of nearby properties against a mayor and a police of the least desirable hous- have disproportionately hurt force many considered to be ing in some of the communities of color, racist. The fires and the vio- lowest-resourced communi- according to many sources lence raged for six days, ties in America,” according that have studied the issue. resulting in 34 deaths and to a 2013 report from the In ethnic neighborhoods, the destruction, damage or Economic Policy Institute (EPI). the average decline in home looting of 1,000 buildings. In addition to much higher prices from 2006 to 2013 After more rioting in 1966 was 26 percent, according and 1967, a presidential poverty rates, African to Harvard’s 2014 report. commission on urban prob- Americans suffer much That’s roughly three times lems was convened and more from the concentra- the decline experienced in Congress enacted programs tion of poverty. Nearly half white areas. to provide affordable hous- (45 percent) of poor black Nationwide, about 27 per- ing and revitalize cities. In children live in neighbor- cent of homeowners in 1968, equal access to hous- hoods with concentrated minority areas had negative ing regardless of race poverty, but only one in equity compared to about became the law of the land. eight low-income white 15 percent of owners in To a very large extent, children live in similar white areas. most of those programs neighborhoods, EPI said. If the recent trends contin- worked as intended, Little Prospect for ue, the unrest in Missouri improving conditions for Recovery may not be an isolated reac- Lower-income areas have millions of Americans, tion to a tragic shooting, but little prospect for home many of them ethnic fami- a harbinger of things to prices to recover soon, or lies. Unfortunately, the United come. for businesses or banks to Andre Shashaty is presi- start reinvesting in hard-hit States government’s com- dent of the nonprofit mitment to housing and neighborhoods. Partnership for Sustainable “In some communities cities has waned in recent Communities and author of with many foreclosed prop- years. The decline in fund- “Rebuilding a Dream: erties, the crisis threatens to ing and elimination of America’s New Urban Cri- doom the entire neighbor- certain key programs could sis, the Housing Cost hood to a cycle of not have come at a worse Explosion, and How We disinvestment and decay,” time. Meanwhile, there has Can Reinvent the American according to Chicago’s been a powerful backlash Dream for All.”
