communities of opportunity: reporting on fair housing, opportunity and equity

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


Males

1717

New York Area


Males

1818

Detroit Metro Area


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


Males

3131

Los Angeles Area


Males

3232

New York Area


Males

3333

Detroit Metro Area


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

communities of opportunity: reporting on fair housing, opportunity and equity

Spiritual