Redlining and the idea how the Real Estate Industry was institutionalizing or solidifying racial bias the way the autonomy was built but this new book that has been written picks up the story and it doesnt get better. And that the unc press could support this and university of North Carolina press it is amazing vital work of the Civil Rights Movement i would recommend checking out it is an amazing list. It is just the latest in that so please join me to welcome ms. Taylor. Thank you very much. Race for profit how banks in the Real Estate Industry undermine black homeowners. It isnt particularly conducive for reading bits and parts i have a 15 minute overview of what i think are the most important aspects of the book. So to give some context that we can discuss afterwards. And to describe the baltimore as a rat infested mass but that cool and thinly veiled code and to convey that fatalistic disregard to have a decided lack of ambition as rodent infestation. So it is not evident of africanamerican indifference and that substandard housing to thrive in that closure of racial segregation. Then black workingclass neighborhoods in the sixties also inspired ridicule for white conservatives and governments and also activism was sparked an uprising. To have that rare deployment and thousands of demonstrators burst into the chamber of the house of representatives and days earlier congress had protected dollar bill to exterminate rent in cities across the country. They sat down across the hall for 20 minutes we want a rat to bill. Those that were passing the bill were not merely voted down but ridiculed in the process. A Virginia Republican and the smart thing for us to do and with another civil rights bill that rat infestation in black neighborhoods was profound when africanamerican children had given a vocabulary test with those objects more than 60 percent misidentified in the aftermath city commissions report it happened was segregated black majority neighborhoods to maintain through a combination of white terrorism and the exclusionary practices of the private sector to ensure that dilapidated and substandard condition of black housing. By the end of the sixties the Carter Commission had left no doubt substandard housing was a recurring factor in the riots that broiled throughout the decade to identify segregation at the root of those can get dash conditions with a significant source of rage to call for historic changes to a male American Housing policies. The Landmark Supreme Court case jones versus mayor decided after the passage of the Fair Housing Act, the 1866 Civil Rights Act in the 13th amendment and comparing housing segregation to slavery arguing when Racial Discrimination herdsmen into ghettos that makes their ability to turn on the color of their skin. The final piece of the battle to open us Housing Markets came with housing and urban Development Act august 1968 it was his greatest legislative accomplishment a bill planned in collaboration with private enterprise of what was known as the kaiser commission. Those who participated had their promotion to poor people associate commercial enterprise or business with a conscience. It goes on to describe the legislation as the magna carta but its focus on the market and ownership ensures it is a bipartisan bill. At the heart of the new legislation that aims to transform low income into homeowners federal officials turned to homeownership as a cheaper program where the cost was absorbed by the homeowners while the federal government paid out subsidies of the duration of the mortgages with a big upfront cost for a new Housing Program. These financial concerns with the growing idea that homeownership could stabilize the anger coursing through American Cities. A republican from illinois describes the benefits of homeownership with a new dawn of opportunity on which the new National Effort brings dignity and a better life. We can democratize our cities and get people of the ghetto a piece of the action to let them be somebody and achieve something. Richard nixon said people who own their own homes dont burn their neighborhoods they fix up their communities to make them livable for themselves. The terms of the new Homeownership Program and with the cost of the house and those Interest Rates that were capped at 1 percent. The inclusion of federal mortgage insurance in the worstcase scenario is foreclosure or abandonment. The federal government was obligated to step in and pay back the lender in full for the cost of the mortgage. Keeping the prices low and manageable for workingclass people. And as one official described its like doing business in heaven and you cant lose money. The Unprecedented Program linked federal agencies to Real Estate Brokers and Mortgage Bankers to supply loans for housing to people in neighborhoods that these organizations previously excluded or redlined. But with lucrative subsidies and guarantees of mortgage insurance and the promise of profit that came with them , the historic hostility of these forces melted away. The same conditions opened new pathways and speculators brought up cheap Dilapidated Properties to flip for higher prices for those who would qualify. The entirety of the program is in the hands of real estate operatives. Head on had sent for eligible property when a Real Estate Broker match the person with the house they connected the prospective buyer then the lender would consult to determine if the person qualified for the program but at no time did the prospective homeowner ever speak with a representative from local or state or federal governments. Not only could money be made the brokers found it easy to bribe those appraisers to inflate the value in the new urban market they made money on the front and by securing the loan in the first place and then they made money on the backend with expensive closing cost for everyone made money except the poor black families that were disproportionately saddled with these broken homes and in the cities across the country. The federal government turned to homeownership with postwar racial liberalism through the vehicles citizenship as the key to have social mobility for black citizens as it had done through the new deal and the g. I. Bill after world war ii. But access alone racial liberals overlooked those racial practices embedded in these institutions after all banks and real estate played a Critical Role for segregation and the distressed housing that came with it so the sudden involvement of the same private sector forces those that were serving the urban housing crisis should have been alarming evidence of racial segregation in substandard housing and the rebellion through the 19 sixties the appearance in the federally subsidized homes add by black families, as an illusion but simply transforming and redlined exclusion into inclusion with the Housing Market built upon the edifice of Racial Discrimination exploitive practices and segregation could somehow produce the equitable and just outcome for africanamericans. Indeed with minimal oversight to the bottom line of the real estate and Banking Industry to search for safe and sound housing for black families and foreclosures and abandonment. The experience is Janice Johnson who bought her first home in philadelphia with the mortgage guaranteed by the fha. By all previous standards johnson was the atypical buyer, black single mother on welfare living with her eight yearold son and an apartment recently condemned by city officials. Now facing eviction she quickly needed to find a new place to live and she was told of an apartment for rent in the same neighborhood. She called the landlord in anticipation but with the hopes were dashed when he told her she could not rent the apartment because she was a welfare recipient. But he quickly pivoted to suggest she buy a house in the same neighborhood. As a welfare recipient she qualified for one of the new low Income Program to purchase with the fha back loan for 5600 she realized her home is not the fulfillment of the American Dream but her american nightmare. Within days of moving in the sewer line broke spewing wastewater all over the basement floor and electricity for the house was sporadic , there were holes and other irregularities in the foundation of the house the structure was not the worst on halloween night her son woke up to find a rat in his bed she saw a rats throughout her house including the kitchen and bathroom. She called the agent who sold for the house to complain about the condition and he said the workmen out on a couple of occasions to fix the problems within the house but soon after the Real Estate Agent reminded her that her problems and her house are now her own that is homeowners business. For Janice Johnson the new terms that allowed her and thousands of other like her to buy new homes that i describe as predatory inclusion i use that to describe the ways black buyers were granted access to conventional real estate practices and mortgage financing with more expensive and unequal terms. This proportionate condition for poverty and dilapidation produced in black housing with years of public and private institutions were twisted into the visual evidence to be considered risky and treated differently within the Housing Market. Also vulnerable to ongoing predatory practices because the way segregation persisted to maintain africanamericans which inflated prices when it came to securing housing that describes the way africanamericans were welcome into institutions of which they were formally excluded because there were new ways to be extracted from the financially exploited. Miserable and dangerous Housing Conditions in the existing urban market led people to walk away from homes they recently purchased and the numbers of defaults and foreclosures of fha insurance payments began to rise. By the end of 73 tens of thousands of homes purchased with a loan fha programs had fallen into foreclosure. May 74 had was in possession of 78000 singlefamily homes that were foreclosed upon. Tens of thousands of more homes were in default meaning they were one or two payments from falling into foreclosure congressional investigation of homeownership shows federal appraisers were taking bribes and inflating the value of dilapidated homes of three or four times are actual worth. Local Mortgage Bankers to ignore the inconsistencies of paperwork to approve even more loans. Newspaper reports on hundreds of federal indictments and all those that were involved in the swindle. And with that private sector it with those people like Janice Johnson. To marshal the assumed dysfunction and then to be attributed and elected official in the media were more than willing listeners to use this opportunity to completely reconfigure and those in need of housing with the secretary of hud the National Moratorium on all subsidized Housing Programs and just as the long economic postwar boom comes to an end with the worst recession since the Great Depression nixon used the crisis to pivot towards a new Housing Venture Program voucher program. Romney justify the transition by disparaging low income homeowners. Housing by itself cannot solve the problems of people and the negative selfimage. And then to describe the problem differently to say the outright murder of our neighborhoods aided and abetted by the fha aided and abetted the mortgage industry , insurance industry. These institutions are working together to systematically destroy whats left of American Cities and what for so long has been considered a natural phenomenon changing neighborhoods and deteriorating cities it is an outright plan of the government and realtors big money people are making a lot of money of exchanging communities that we call home. Thank you. [applause] lets take questions or comments. So first of all thank you for being here. Two weeks ago you said Bernie Sanders is the only candidate within the democratic field who mentions in any meaningful way ending housing segregation as an objective so could you elaborat elaborate . Sanders relates to his Housing Program maybe two weeks ago and its the only one that has come out to actually talk about segregation as a problem and not just a description of existing patterns of urban and suburban areas. So without getting into the weeds the call for 10 Million Units special housing that is newly built in different areas or places within metropolitan areas is a concrete measure. But then his discussion with the lack of enforcement which is another issue that people talk about in a descriptive way but not with much clarity of how to change that. On the public and private side. And as it relates to housing which is only one of the central problems with the persistence of segregation or a lack of will to enforce its own civil rights laws. New housing in the existence of rent flow goes significantly further from other plans that are announced and what im trying to do to raise bigger questions with a deeper problem of private property and what it means in a society we are told they are color neutral or colorblind we are the market and so they reflect all the racism and bias and prejudice in the Broader Society at then seems that private property and the buying and selling of private property reinforced that as well. So theres a limit to what the state can actually do to stop racial segregation when Property Ownership in our society. So to really answer questions i was confronted with repeated the with housing and public policy. And many of my students wanted to know by redlining or segregation continues a Landmark Supreme Court says why do they continue to happen . And what systemic racism means to be voted on to be solved through the passage of a particular piece of legislation to go through that judicial process. That are some of the deeper questions im trying to address with the book. Can you talk about how you found these people and the sources that allow you to tell this story like the woman janice quex how did you find her and why did it take to tell the story that might seem from the outside how do you actually uncover the sources that it takes to do that quick. Its a great question. Of poor and workingclass people to have their own archives and collection and reflection or intervention. It is the same way that Public Officials the way state agencies do. And to tell the stories. And with those institutional practices their lives and their families lives are not affected by these things. So the issues are coming to light at the same time of the emergence of investigative journalism. Journalism plays an important part in this story because it what drives the exposure of the problems in these programs to expose thes conspiracies. They are not conspiracy theories it is really collusion between different groups of people who have an interest ripping off poor black families and they Work Together in very open and deliberate ways. But i found lots of interviews and coverage in the Philadelphia Inquirer in the seventie seventies, baltimore sun, the Detroit Free Press , Chicago Tribune as well. That is why aspect. Another strange place to be there were a number of congressional hearings that were organized in response and almost all of that was driven to be started off as a Johnson Program so now all of a sudden nixon is saddled with this program so democrats are very enthusiastic and they still controlled the congress and with many investigations and in those hearings to submit and introduce their own findings in their own experience into the congressional record of grassroots organizing the last quote that i made from American Cities as an activist in chicago to testify 1973 and march so that was a rich source in the last place was through the gold depositions and then to file classaction lawsuits against hud these practices continued and i did want to write a book about state, power and its relationship and the Real Estate Industry and how these two powerful entities shaped the conditions of workingclass people. I didnt want to have that poverty poor narrative i didnt want to do dilapidated buildings but i want to talk about policy through the lives of ordinary people and this is why it matters and exercise in lawmaking. But these policies have an impact and the problems they create are important because they turn on the individuals for gaming those that are victimized in part of turning that story around is to show the impact and the role the institutions play. Thank you for that. With that Investigative Reporter and of that Baltimore City to be placated by john hopkins. And the Baltimore Community action it echoes we are talking about with miss janice which is also tying into the fact of disparate impact to be pulled out of the Fair Housing Act so im wondering what types of options forward thinking we could do to lose that powerful piece of policy that makes it easier to identify or discriminate. A couple of things. One is that the things especially toward the end of the book looking at the contemporary housing crisis and the collapse of the Housing Market 2008 and the fact 244,000 black families lost their homes in the last generation of this crisis but it isnt just history repeating itself its the market and the outcome the Public Private and to regulate and oversee its own laws and to oversee programs because in this country the federal government has outsourced the production of low Income Housing to the private sector and the reason why there is never any principal source of Affordable Housing because its not profitable. So continuing to leave it to those it in a sufficient way. And with those tax breaks and financial incentives for those privatesector forces to create low Income Housing instead of doing that itself and to remove the market from the equation. One of the things i try to emphasize in my book with the dance of conflict between public and private sector in the creation of Public Services because on a very basic level the game in real estate is by low sell high thats where the profit margin comes from. So how do you get to that point to maximize the profit margin . Policy is about the publics interest in publics welfare. As a repeatedly put the square pagan to a round hole multiple generations of programs as living proof that this actually does not work. When asked about the solution the first is that we have to get the Public Sector from the private and the federal government should be in the business of producing safe and Affordable Housing for its citizens. So that is one thing. And there is a larger discussion to have about how to do that because in the same way that we are living through a moment with the idea to have a discussion in the United States about universal healthcare likened to wanting three pony rides in Hillary Clinton in 2016. The fact that you can argue for Free Education College Education makes for a more informed citizenry that should be open and available to anyone who wants it. But i cant be mocked or dismissed. And a different way to organize housing. So thats the discussion were trying to open for. But to force the city to do Affordable Housing other fighting to make sure its permanently affordable in the form of Community Land trust or coops but there are other places where the effort has not been sustained to make sure it remains affordable. Those are important models of what collective activism can create that there are these types of efforts but then to scratch the surface of the housing crisis with that aspect. And between 30 and 51 percent of their income every month to house themselves for shelter. So little programs or initiatives can be important of why it is possible in a particular locality. And those in this country and the second thing about Community Land trust that in some ways it shows that there is a collective effort and those that are not invested in the real estate model of buy low, sell high, high, that you can create a equitable living circumstance for people over a period of time. And then to reinforce that segregation and pulls into key people in place where they are and this is part of a longstanding faith over should black or brown people to where the resources are . Thats a debate that consistently that they want safe and sound decent housing and with that housing stratosphere not into one particular place so i worry about the way Community Land trust and often based in places where land is cheapest. Often that is in segregated black and brown neighborhoods. And then to address those issues with those resources. All those points talking about the limits in addressing private property and markets. Why dont you use the word capitalism yet . I have not read the book but i think its interesting when we talk about the limits of what the federal government can do with healthcare those systemic issues with its founding but i wont rant but im just wondering we could get the housing that we deserve and how you see organizing the working class quick. There is the assumption private property that you are a capitalist so for the record i am a socialist. Although i do believe you can have private property. And there is such a thing as a dynamic that you refer to reform and a complete social transformation. And that abject Housing Conditions and those state institutions have built what they call social housing for poor people and workingclass people not just housing last resort in a given location. With the Business Class to exert their influence and domination to deliberately leave out policies around Public Housing separate appropriations for maintenance based purely on the maintenance needs so all is tied to the number of renters in the space. When they begin to precipitously drop then the government pushes down who is eligible for housing it only becomes housing as a last resort for a small number of people than there are not enough payments to pay for the maintenance of the building. That was not an accident. That was we dont want this house so we want this to be dour and not maintains a nobody wants to live in it except those who have no choice to. Thats the private sector exerting its influence. So it doesnt have to be like that. So that we can build 10 Million Units of social housing in this country there is a bigger question of how to abolish private property. You do need some extreme social transformation we dont need a revolution in this country to improve the standard and quality of life for millions of people. Ultimately and social movements produce reform and then there is a dogged attempt of those in power to scratch back what they have lost and that is the dynamic consistently black lives matter with the local Police Forces and city council are willing to listen and talk about maybe do things differently nobody killed freddie gray he has homicide on his death certificate somebody killed him. We dont know what happened. That is a dynamic of capitalism why actually it is insufficient to keep tweaking. Theres a lot of space for tweaks in the society. And we have time for one more question. So the social housing come up excited to see people looking to the vienna model everybody lives in housing as a public good and what we should be thinking about to take into account a long legacy of racial is asian around property and access to housing in this country that maybe we cannot learn from vienna because they dont have that history. Thats a great question. The first thing i would say is everyone should read he has written most effectively of the Climate Movement and the Green New Deal and how to open up new pathways around innovative thinking around social housing. I will defer to his expertise. And for the sanders plan and those 10 Million Units so placing housing and workingclass black communities is not the shabby Public Housing that is good housing means it is available for people in those neighborhoods but also to be attractive to people outside those neighborhoods. So that is different from building in the good neighborhoods now where africanamericans are expected to uproot and leave. So now we know the majority of black people in the suburbs 60 percent. And the placement, and if were talking about the building is Something Like this in our society and civil rights laws of integrated living spaces. And the original Public Housing had an opportunity to do that and there were explicit rules that put people in different kinds of housing with the concerns of Property Values and those kinds of things are possible and have to be thought through but there has to be a commitment to that there is a lot to think about. Thats all the time weve got. [laughter]. [applause] weve got our book for sale at the table. Also hay market has some other books for sale. Buy a lot of her books and come up and get them signed. And thanks, everybody. And now its book tv in primetime. First up, university of Oklahoma History professor Wilford Mcclay provides a history of the United States. Then New York University journalism professor Pamela Newkirk examines the effectiveness of diversity programs. Followed by political analyst thoughts on the 2020 election. At 10 00 p. M. Eastern, labor reporter Steven Greenhouse discusses the challenges American Workers face today. And wrapping up the evening, Vanderbilt University professor Brian Fitzpatrick offers his thoughts on class action lawsuits. Check your Program Guide or visit book tv. Org for more information. Now heres history professor Wilford Mcclay. Good evening, everybody. Welcome to the American Enterprise institute. Im director of social cultural and constitutional studies here at aei. It is my great pleasure to welcome you to a discussion of land of hope, the new one volume history of our country by
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