11
Communities of Opportunity:Communities of Opportunity:Reporting on Fair Housing, Opportunity Reporting on Fair Housing, Opportunity
and Equityand EquityPresentation to the New York Press Association Presentation to the New York Press Association
Spring Convention 2008, Albany NYSpring Convention 2008, Albany NYJason Reece, AICPJason Reece, AICPSenior ResearcherSenior [email protected]@osu.edu
The Kirwan Institute for the Study of Race & EthnicityThe Kirwan Institute for the Study of Race & EthnicityThe Ohio State UniversityThe Ohio State University
April 4April 4thth 2008 2008
22
About the InstituteAbout the Institute Founded in 2003 at The Ohio State Founded in 2003 at The Ohio State
UniversityUniversity– Under the leadership of john a. powell, a Under the leadership of john a. powell, a
national expert on issues of race, class, national expert on issues of race, class, poverty, civil rights and housingpoverty, civil rights and housing
– Interdisciplinary and externally focusedInterdisciplinary and externally focused– Working on projects at both the local, Working on projects at both the local,
national and international levelnational and international level– One of the largest race research centers One of the largest race research centers
in the nationin the nation More than 30+ staffMore than 30+ staff
33
Discussion PointsDiscussion Points
Access to Opportunity MattersAccess to Opportunity Matters– Race, poverty, place and inequityRace, poverty, place and inequity
Housing: Our Link to OpportunityHousing: Our Link to Opportunity Reflecting on the 40Reflecting on the 40thth Anniversary of the Anniversary of the
Fair Housing ActFair Housing Act– Have we achieved “fair” housing?Have we achieved “fair” housing?
New and future challengesNew and future challenges– Reflecting on equity and social justice issues Reflecting on equity and social justice issues
that need more public discourse and exposurethat need more public discourse and exposure
44
Opportunity MattersOpportunity MattersRace, Poverty, Place and InequityRace, Poverty, Place and Inequity
55
Neighborhoods and Neighborhoods and Access to OpportunityAccess to Opportunity
Five decades of research Five decades of research indicate that your indicate that your environment has a environment has a profound impact on your profound impact on your access to opportunity and access to opportunity and likelihood of successlikelihood of success
Impoverished Blacks and Impoverished Blacks and Latinos are far more likely Latinos are far more likely to live in neighborhoods of to live in neighborhoods of concentrated povertyconcentrated poverty– These high poverty These high poverty
environments create environments create deplorable living deplorable living conditions and are a conditions and are a manifestation of living manifestation of living isolated from opportunityisolated from opportunity
66
Neighborhood Neighborhood SegregationSegregation
School SegregationSchool Segregation
Racial stigma, other Racial stigma, other psychological impactspsychological impacts
Job segregationJob segregation
Impacts on community Impacts on community power and individual power and individual
assetsassets
Impacts on Educational Impacts on Educational AchievementAchievement
The Cumulative Impacts of Spatial, Racial and The Cumulative Impacts of Spatial, Racial and Opportunity SegregationOpportunity Segregation
Exposure to crime; arrestExposure to crime; arrest
Transportation limitations Transportation limitations and other inequitable public and other inequitable public servicesservices
Adapted from figure by Barbara Reskin at: http://faculty.washington.edu/reskin/
Segregation impacts a number of life-opportunitiesSegregation impacts a number of life-opportunities
Impacts on HealthImpacts on Health
77
Housing location determines access to Housing location determines access to schools….schools….
88
jobs…jobs…
99
neighborhood amenities…neighborhood amenities…
1010
The Impact of Place: The Impact of Place: Qualitative Research from the MTO Qualitative Research from the MTO
ProgramProgram Reflections on living in a low opportunity Reflections on living in a low opportunity
communitycommunity– "It was like being in a war zone. It was really bad...A lot of "It was like being in a war zone. It was really bad...A lot of
drug dealings. Shoot-outs. Girls getting beat up by their drug dealings. Shoot-outs. Girls getting beat up by their boyfriends. Young girls…Everybody has such low self-boyfriends. Young girls…Everybody has such low self-esteem and no regard for each other. Nobody looked out esteem and no regard for each other. Nobody looked out for each other. It was horrible.“for each other. It was horrible.“
Impact of moving to opportunity: Impact of moving to opportunity: – "I just got promoted to a higher position...Moving has done "I just got promoted to a higher position...Moving has done
wonderful things for me and my family. It has given me an wonderful things for me and my family. It has given me an outlook on things that I'm surrounded by. Better outlook on things that I'm surrounded by. Better neighborhood, better schools for my kids, a better job, neighborhood, better schools for my kids, a better job, great things for me."great things for me."
– "It gave me a better outlook on life, that there is a life "It gave me a better outlook on life, that there is a life outside of that housing." outside of that housing."
1111
Racial Segregation, Opportunity Racial Segregation, Opportunity Segregation and Racial DisparitiesSegregation and Racial Disparities
Housing policies, discrimination, land use policy and patterns of regional investment and disinvestment converge to produce continued racial segregation in our society– Producing a racial isolation in
neighborhoods that are lacking the essential opportunities to advance in our society (fueling racial disparities)
1212
Who Lives in Concentrated Poverty Who Lives in Concentrated Poverty Neighborhoods?Neighborhoods?
Over 3.1 million African Americans lived in Concentrated Poverty Neighborhoods in 2000, Blacks and Latinos represent nearly 3 out of 4 residents in these neighborhoods
Nearly 1 out of 10 Blacks lived in a concentrated poverty neighborhood in 1999, compared to 1 out of 100 Whites
Whites only make 30% of people living in high poverty neighborhoods, although they represent 55% of the total population living in poverty
1313
Segregation from Opportunity: Segregation from Opportunity: Neighborhood PovertyNeighborhood Poverty
In New York’s largest metropolitan areas, African Americans & In New York’s largest metropolitan areas, African Americans & Latinos live in neighborhoods with 2 to 3 times the poverty rate Latinos live in neighborhoods with 2 to 3 times the poverty rate experienced in White Neighborhoodsexperienced in White Neighborhoods
0%
10%
20%
30%
40%
Poverty Rate: White and African American Neighborhoods in 2000
Albany MSA 9% 25% 18%
Buffalo MSA 9% 30% 28%
New York MSA 12% 26% 27%
Rochester MSA 8% 26% 25%
Syracuse MSA 11% 31% 26%
White Black Latino
1414
Neighborhood Conditions and Race: A Case Neighborhood Conditions and Race: A Case Study Mapping Neighborhood Opportunities Study Mapping Neighborhood Opportunities & African American Males in Seven Metros& African American Males in Seven Metros
Education IndicatorsEducation Indicators– Student poverty rates, test scores, Student poverty rates, test scores,
student teacher ratiosstudent teacher ratios Economic IndicatorsEconomic Indicators
– Job access, unemployment, job trendsJob access, unemployment, job trends Neighborhood QualityNeighborhood Quality
– Vacant and abandoned properties, crime Vacant and abandoned properties, crime rates, neighborhood poverty ratesrates, neighborhood poverty rates
1515
Washington DC Area
Neighborhood Opportunity Ranking and African American
Males
1616
Los Angeles Area
Neighborhood Opportunity Ranking and African American
Males
1717
New York Area
Neighborhood Opportunity Ranking and African American
Males
1818
Detroit Metro Area
Neighborhood Opportunity Ranking and African American
Males
1919
Housing: Our Link to Communities of Housing: Our Link to Communities of OpportunityOpportunity
Location, Location, LocationLocation, Location, Location
2020
Place and Life OutcomesPlace and Life Outcomes Housing, in particular its Housing, in particular its
location, is the primary location, is the primary mechanism for accessing mechanism for accessing opportunity in our societyopportunity in our society– For those living in high For those living in high
poverty neighborhoods poverty neighborhoods these factors can these factors can significantly inhibit life significantly inhibit life outcomesoutcomes
– Individual characteristics Individual characteristics still matter but so does still matter but so does environmentenvironment
Environment can impact Environment can impact individual decision makingindividual decision making
Housing
Childcare Employment
Education
Health
Transportation
Effective Participation
2121
Housing: Housing: Location, Location, LocationLocation, Location, Location
Housing location determines (some Housing location determines (some examples)examples)– The appreciation you can expect to see in your The appreciation you can expect to see in your
home valuehome value– The quality of schools your children will attendThe quality of schools your children will attend– Your exposure to crime, violence and public Your exposure to crime, violence and public
safety risksafety risk– Your access to employment, transit and job Your access to employment, transit and job
networksnetworks Where you live is more important than Where you live is more important than
what you live inwhat you live in
2222
Housing and WealthHousing and Wealth Housing is critical to building assets Housing is critical to building assets
and wealth in the USand wealth in the US– Racial disparities in wealth are far more Racial disparities in wealth are far more
pronounced than disparities in incomepronounced than disparities in income– Wealth and assets are what we use to Wealth and assets are what we use to
buy opportunity and it allows us to take buy opportunity and it allows us to take risk which also creates new wealthrisk which also creates new wealth
2323
Home Ownership & WealthHome Ownership & Wealth
Home EquityHome Equity– Home equity is often the largest component of the Home equity is often the largest component of the
average American family’s wealthaverage American family’s wealth– It accounts for 75% of the assets held by the median It accounts for 75% of the assets held by the median
household in the U.S. household in the U.S. – It has been critical in the growth of the middle class It has been critical in the growth of the middle class
throughout the U.S. following World War II throughout the U.S. following World War II
Unequal Access to Home EquityUnequal Access to Home Equity– A legacy of historical discrimination in lending and A legacy of historical discrimination in lending and
access to home ownership, the cost of living in access to home ownership, the cost of living in segregated communities and discontinued segregated communities and discontinued discrimination in the housing market have prevented discrimination in the housing market have prevented families of color from accessing the wealth potential of families of color from accessing the wealth potential of home equityhome equity
2424
The Racial Wealth GapThe Racial Wealth Gap
2525
50 years after the 50 years after the Brown Decision, Brown Decision,
America’s schools America’s schools have re-segregated have re-segregated into affluent white into affluent white districts and poor districts and poor
under-funded under-funded African American African American
and Hispanic and Hispanic districtsdistricts
Housing
Discrimination
Produces Dysfunctional Schools
Segregation
Housing and EducationHousing and Education
2626
Cycle of School SegregationCycle of School Segregation
Lower EducationalOutcomes for Urban
School Districts
Increased Flightof Affluent
Families fromUrban Areas
Neighborhood (Housing)
Segregation
SchoolSegregation(Economic)
2727
Sprawl and Disinvestment in Sprawl and Disinvestment in Urban CommunitiesUrban Communities
Decades of suburban Decades of suburban flight have drained low flight have drained low income inner city income inner city neighborhoods of people, neighborhoods of people, business and investmentbusiness and investment
High vacancy rates and High vacancy rates and poor investment harms poor investment harms the quality of life for inner the quality of life for inner city residents and limits city residents and limits the resources (tax base) the resources (tax base) for low income for low income communitiescommunities
2828
Jobs have moved away from the labor Jobs have moved away from the labor pool in many metropolitan areas, pool in many metropolitan areas, making connecting job-seekers with jobs making connecting job-seekers with jobs a challenge (compounded by poor a challenge (compounded by poor public transportation)public transportation)
– Public investment disproportionately favors Public investment disproportionately favors highways over public transportation; public highways over public transportation; public transportation can not access most transportation can not access most suburban job sitessuburban job sites
Sprawl, Inequity and Economic Sprawl, Inequity and Economic OpportunityOpportunity
2929
Neighborhood Conditions and Race: A Case Neighborhood Conditions and Race: A Case Study Mapping Neighborhood Opportunities Study Mapping Neighborhood Opportunities & African American Males in Seven Metros& African American Males in Seven Metros
Education IndicatorsEducation Indicators– Student poverty rates, test scores, Student poverty rates, test scores,
student teacher ratiosstudent teacher ratios Economic IndicatorsEconomic Indicators
– Job access, unemployment, job trendsJob access, unemployment, job trends Neighborhood QualityNeighborhood Quality
– Vacant and abandoned properties, crime Vacant and abandoned properties, crime rates, neighborhood poverty ratesrates, neighborhood poverty rates
3030
Washington DC Area
Neighborhood Opportunity Ranking and African American
Males
3131
Los Angeles Area
Neighborhood Opportunity Ranking and African American
Males
3232
New York Area
Neighborhood Opportunity Ranking and African American
Males
3333
Detroit Metro Area
Neighborhood Opportunity Ranking and African American
Males
3434
FindingsFindings 2 out of 3 African American males in the 2 out of 3 African American males in the
seven metropolitan areas were found in seven metropolitan areas were found in low opportunity communitieslow opportunity communities– Compared to 1 out 5 White malesCompared to 1 out 5 White males
Neighborhood Type
% of Total AfricanAmerican Male
Population% of Total White Male
Population
% of Total AfricanAmerican Female
Population
Very Low Opportunity 36.8% 6.9% 37.6%Low Opportunity 29.6% 14.1% 30.0%Moderate Opportunity 16.6% 21.4% 16.4%High Opportunity 10.6% 25.2% 10.4%Very High Opportunity 6.3% 32.4% 5.6%Outside Study Area 0.1% 0.0% 0.0%
Opportunity Analysis and Location of African American Males,White Males and African American Females in Seven Major Metros:
(Atlanta, Chicago, Detroit, Houston, Los Angeles, New York, Washington DC
3535
Reflecting on the 40Reflecting on the 40thth Anniversary of Anniversary of the Fair Housing Actthe Fair Housing Act
Have we Achieved Fair Housing?Have we Achieved Fair Housing?
3636
The Significance of the Fair The Significance of the Fair Housing ActHousing Act
Signed into law by President Johnson on Signed into law by President Johnson on April 11April 11thth 1968 1968– Direct result of the tremendous efforts of Dr. Direct result of the tremendous efforts of Dr.
Martin Luther King in opening up segregated Martin Luther King in opening up segregated communities (Bill passage tied directly to Dr. communities (Bill passage tied directly to Dr. King’s assassination on April 4th)King’s assassination on April 4th)
Places significant limitations on housing Places significant limitations on housing discrimination in the private marketdiscrimination in the private market
Places burden on the government to Places burden on the government to “affirmatively further fair housing”“affirmatively further fair housing”– A critical provision in cases challenging the A critical provision in cases challenging the
actions of public housing authoritiesactions of public housing authorities
3737
Have we Achieved Fair Housing?Have we Achieved Fair Housing?
Progress but no victory yetProgress but no victory yet– Homeownership increasesHomeownership increases– Slight decline in segregation but still Slight decline in segregation but still
very prevalentvery prevalent– Decline in incidence of housing Decline in incidence of housing
discrimination but still prevalentdiscrimination but still prevalent– Isolation from opportunity?Isolation from opportunity?
New challenges in the futureNew challenges in the future– Sub-prime lending and foreclosureSub-prime lending and foreclosure
3838
National Trends: Home OwnershipNational Trends: Home OwnershipRenter Occupancy by Race 1950 and 2000
43.0%
28.7%
65.1%
53.6%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
% Renter 1950 % Renter 2000
White African American
3939
Fair Housing = IntegrationFair Housing = IntegrationResidential Segregation Index: Major New York Regions
64 62 61
80 80
71
82 82 82
68 68 66
74 7369
5055606570758085
1980 1990 2000
Albany Buffalo New York Rochester Syracuse
4040
Racial Disparity in Households Racial Disparity in Households Impacted by Housing Problems: Impacted by Housing Problems:
New York State 2000New York State 2000
30.2%
47.7%
58.1%54.6%
20.0%25.0%30.0%35.0%40.0%45.0%50.0%55.0%60.0%65.0%
White Black Latino Asian
% with Housing Problems in 2000
Source: US Dept. of Housing & Urban Development
4141
Subsidized Housing Policies
DiscriminatoryAnd Unfair Lending
A Housing MarketThat Does Not Serve
the Population
Racial SteeringAnd Discrimination
ExclusionaryZoning
Barriers to Fair Housing:Barriers to Fair Housing:The Web of Housing ChallengesThe Web of Housing Challenges
Housing Challenge
s
4242
New Threats: The Sub-Prime and New Threats: The Sub-Prime and Foreclosure ChallengeForeclosure Challenge
The result of the sub-prime & The result of the sub-prime & foreclosure crisis in the US may foreclosure crisis in the US may significantly erode fair housing significantly erode fair housing gains and further isolate inner gains and further isolate inner city neighborhoodscity neighborhoods– 2 million foreclosures expected in the 2 million foreclosures expected in the
next two yearsnext two years– Nationwide, nearly 55% of all high cost Nationwide, nearly 55% of all high cost
loans went to African American loans went to African American borrowersborrowers
– Experts estimate that the loss in home Experts estimate that the loss in home equity to African American and Latino equity to African American and Latino homeowners will exceed a quarter of homeowners will exceed a quarter of trillion dollarstrillion dollars
Why, direct asset loss (foreclosure) and Why, direct asset loss (foreclosure) and loss in home value due to the loss in home value due to the geographic concentration of geographic concentration of foreclosures in minority neighborhoodsforeclosures in minority neighborhoods
Source: United for a Fair Economy
4343
What’s Missing in the Media: What’s Missing in the Media: Thinking of Race as the “Miners Canary”Thinking of Race as the “Miners Canary”
The “Miner’s Canary” The “Miner’s Canary” metaphormetaphor– Disparities facing Disparities facing
communities of color are communities of color are indicators of larger indicators of larger impending societal impending societal challengeschallenges
Example: Race and Example: Race and predatory lending, which predatory lending, which contributed to the contributed to the subprime debaclesubprime debacle
Threatening the entire US Threatening the entire US economy economy
4444
Capital Market ‘Credit crunch’
Affected neighborhoods are being reduced to ‘ghost towns’
Reduced spending and retail flight
Families lose their homes, wealth and safety
Banks, police and courts saddled with foreclosures
SUBPRIME LENDING: We didn’t care about the canary...
4545
Predatory Lending and Race: Example Predatory Lending and Race: Example (Cleveland)(Cleveland)
Maps: Produced and adapted from Charles Bromley, SAGES Presidential Fellow, Case Western University
4646
Predatory Lending, Foreclosure and Race: Predatory Lending, Foreclosure and Race: Example (Cleveland)Example (Cleveland)
4747
Our Linked FatesOur Linked FatesUnderstanding the Impact of our Racial, Understanding the Impact of our Racial,
Social and Geographic InequitiesSocial and Geographic Inequities
4848
Our FutureOur Future Our economic future is dependent on our Our economic future is dependent on our
most plentiful natural resource, most plentiful natural resource, human human capacity and innovationcapacity and innovation. .
Without addressing the Without addressing the social, racial and social, racial and interregional inequitiesinterregional inequities facing our nation, facing our nation, the future of the entire nation is the future of the entire nation is compromisedcompromised
4949
Inequities Impact EveryoneInequities Impact Everyone
Isolation from opportunity results in lost Isolation from opportunity results in lost productive and creative capacity, depriving productive and creative capacity, depriving regions the ability to compete and innovateregions the ability to compete and innovate
Inequities create artificial impediments to Inequities create artificial impediments to economic development and affordable economic development and affordable housinghousing
Disparities drive sprawling physical growth Disparities drive sprawling physical growth without job or population growth without job or population growth
All of this can ultimately harm the quality of All of this can ultimately harm the quality of life for all residentslife for all residents
5050
So what about the canary…why care So what about the canary…why care about equity and inclusion?about equity and inclusion?
– To thrive, regions must be competitive in To thrive, regions must be competitive in the global economythe global economyInequality is a sign of an economically & Inequality is a sign of an economically &
socially inefficient region, where much of the socially inefficient region, where much of the population can not meet its creative potentialpopulation can not meet its creative potential
These disparities make the region less These disparities make the region less competitive, nationally and globallycompetitive, nationally and globally
5151
SolutionsSolutionsAn Opportunity Oriented Model of Racial An Opportunity Oriented Model of Racial
and Social Justiceand Social Justice
5252
A Transformative Agenda: A Transformative Agenda: Achieving Equity through an Opportunity Based Achieving Equity through an Opportunity Based
Model of Social JusticeModel of Social Justice Everyone should have fair Everyone should have fair
access to the critical access to the critical opportunity structures opportunity structures needed to succeed in lifeneeded to succeed in life
Low Opportunity Low Opportunity neighborhoods limit the neighborhoods limit the development of human development of human capitalcapital
A Community of A Community of Opportunity approach can Opportunity approach can develop pathways that develop pathways that result in increased social result in increased social and economic health, and economic health, benefiting everyonebenefiting everyone
5353
An opportunity based approachAn opportunity based approach
Strategies for connecting to opportunity:Strategies for connecting to opportunity:– A A people-focusedpeople-focused approach that gives families more approach that gives families more
choice in where to live and go to schoolchoice in where to live and go to school
– An An in-place in-place strategy that seeks to bring investment strategy that seeks to bring investment and resources into distressed communitiesand resources into distressed communities
– A A linkageslinkages approach that connects low-income approach that connects low-income neighborhoods and residents to opportunity through neighborhoods and residents to opportunity through improved transportation and social or business improved transportation and social or business networking networking
5454
An Opportunity Based Housing PolicyAn Opportunity Based Housing Policy
Affordable housing must Affordable housing must be deliberately and be deliberately and intelligently connected intelligently connected to high performing to high performing schools, sustainable schools, sustainable employment, necessary employment, necessary transportation transportation infrastructure, childcare, infrastructure, childcare, and institutions that and institutions that facilitate civic and facilitate civic and political activitypolitical activity
5555
Concluding Thoughts:Concluding Thoughts:Themes That Need More Public Exposure and Themes That Need More Public Exposure and
DiscussionDiscussion Place matters: understanding how Place matters: understanding how
neighborhoods-environments contribute to our neighborhoods-environments contribute to our well-beingwell-being
More discussion on the broader universal impacts More discussion on the broader universal impacts of racial/social/geographic disparity in our societyof racial/social/geographic disparity in our society
Lifting up activities and initiatives that bring Lifting up activities and initiatives that bring opportunity to distressed areasopportunity to distressed areas– Exploring cases of community revitalization that do not Exploring cases of community revitalization that do not
result in gentrificationresult in gentrification More reflection on the importance of fair housing More reflection on the importance of fair housing
(reflecting on the 40(reflecting on the 40thth anniversary of the Act) anniversary of the Act)– The broader social & racial implications of the subprime The broader social & racial implications of the subprime
lending & foreclosure crisislending & foreclosure crisis
5656
Questions or Comments? Questions or Comments? For More Information Visit Us On-Line:For More Information Visit Us On-Line:
www.KirwanInstitute.orgwww.KirwanInstitute.org