Biden picks Ohio Rep. Marcia Fudge for HUD secretary, Tom Vilsack to lead Agriculture
If confirmed, Fudge, 68, would be the first Black woman to lead the department in decades.
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Marcia Fudge To Be Biden's HUD Secretary
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Claims of Flood Relief Discrimination in Texas, HUD Threatens Possible Legal Action
The faded and weathered construction permits still taped to Houston resident Mal Moses’ front door are reminders of the difficulties he faced in trying to get his mold-infested walls and leaky roof repaired after Hurricane Harvey in 2017.
But living in his neighborhood of Trinity-Houston Gardens has always been hard, Moses said. His family endured racial slurs and harassment as some of the first Black residents to move in during the late 1960s. When white residents left, he said, it seemed resources such as consistent trash collection or a properly working drainage system fled as well.
So after Harvey, Moses, 65, expected to be denied government help. And he certainly wasn’t surprised by federal officials’ conclusion this year that the state had discriminated against minorities, particularly Black residents, in how it distributed flood relief money from the hurricane.
“It was just another example (of discrimination) for me. ... I wasn’t shocked that it was being done because I experienced it firsthand growing up,” said Moses, who ultimately got help from local nonprofit West Street Recovery to repair his home.
Texas had faced a Friday deadline to enter into a voluntary agreement to address an investigation by the U.S. Department of Housing and Urban Development that in March found the state had violated the Civil Rights Act of 1964 by causing there “to be disproportionately less funding available to benefit minority residents than was available to benefit white residents” in how it distributed more than $2 billion to fund flood mitigation projects after Harvey. That deadline passed without any resolution to the dispute.
The Texas General Land Office, or GLO, which is in charge of distributing the funding, says its actions were not unlawful.
In a letter sent Thursday to HUD Secretary Marcia Fudge, Republican Gov. Greg Abbott said he did not plan to force the GLO to enter into any agreement because HUD had not proven that the state agency had discriminated based on race or national origin.
“HUD should close this case without following through on the threats made in your letter, which would only slow funding for Texans who truly need disaster mitigation,” Abbott said.
HUD has threatened to refer the matter to the Justice Department for possible legal action.
“We are considering our options and have no further comment at this time,” HUD spokesman Michael Burns said in an email Friday.
The deadline passed amid the five-year anniversary of Harvey, which inundated the Houston area with torrential rain for days, flooding more than 150,000 homes and 300,000 vehicles. The storm, which first made landfall more than 200 miles (321 km) southwest of Houston near Corpus Christi on Aug. 25, 2017, killed 68 people and caused an estimated $125 billion in damage in Texas. Many residents still have not recovered.
In an April letter to HUD, the land office’s attorneys defended how the funds were awarded, saying of the 108 projects that received money, 59% served minority-majority populations and of the 1.5 million Texans benefiting from the projects, more than 1 million were Hispanic.
“HUD’s objections are politically motivated and are factually and legally baseless. GLO did not engage in discrimination,” the land office’s attorneys said.
Many Houston-area residents and officials were outraged when they learned the land office’s initial distribution of $1 billion didn’t include one cent for their hard-hit communities. Other cities with large minority populations also flooded by Harvey, including Beaumont, Corpus Christi and Port Arthur along the Texas Gulf Coast, also got no funding.
A Houston Chronicle investigation found the land office’s initial $1 billion distribution disproportionately flowed to inland counties with less damage than coastal communities that bore the brunt of Harvey.
Where the money was spent is “so clearly not where the harm was done and where the risk is for future disasters,” said Ben Martin, research director for Texas Housers, an Austin-based nonprofit that joined Houston group Northeast Action Collective in filing the initial complaint with HUD.
After bipartisan criticism of the lack of funding for the Houston area, the land office awarded $750 million to Harris County, home to the nation’s fourth-largest city, but still nothing for Houston.
Houston Mayor Sylvester Turner on Wednesday urged HUD to enforce its ruling against the state, saying the federal agency’s integrity “is on the line.”
Moses, who is part of the Northeast Action Collective, said that after Harvey, he had to live in his home, full of mold and dust, while it was repaired and as he underwent treatment for lung cancer. During the two-year repair process, his mother, who shared the house with him and adored it, had to live elsewhere.
She died four days after she was finally able to return in 2020.
While his house is in fairly good shape now, Moses said many of his neighbors are still struggling to fully restore their homes or recover financially from repairs they paid for themselves. They also worry if enough has been done to protect them from the next storm.
“I’m just holding on, holding on ... and I’m hoping that the (federal) government steps in ... and makes sure the money gets appropriated correctly,” Moses said.
The faded and weathered construction permits still taped to Houston resident Mal Moses’ front door are reminders of the difficulties he faced in trying to get his mold-infested walls and leaky roof repaired after Hurricane Harvey in 2017.
But living in his neighborhood of Trinity-Houston Gardens has always been hard, Moses said. His family endured racial slurs and harassment as some of the first Black residents to move in during the late 1960s. When white residents left, he said, it seemed resources such as consistent trash collection or a properly working drainage system fled as well.
So after Harvey, Moses, 65, expected to be denied government help. And he certainly wasn’t surprised by federal officials’ conclusion this year that the state had discriminated against minorities, particularly Black residents, in how it distributed flood relief money from the hurricane.
“It was just another example (of discrimination) for me. ... I wasn’t shocked that it was being done because I experienced it firsthand growing up,” said Moses, who ultimately got help from local nonprofit West Street Recovery to repair his home.
Texas had faced a Friday deadline to enter into a voluntary agreement to address an investigation by the U.S. Department of Housing and Urban Development that in March found the state had violated the Civil Rights Act of 1964 by causing there “to be disproportionately less funding available to benefit minority residents than was available to benefit white residents” in how it distributed more than $2 billion to fund flood mitigation projects after Harvey. That deadline passed without any resolution to the dispute.
The Texas General Land Office, or GLO, which is in charge of distributing the funding, says its actions were not unlawful.
In a letter sent Thursday to HUD Secretary Marcia Fudge, Republican Gov. Greg Abbott said he did not plan to force the GLO to enter into any agreement because HUD had not proven that the state agency had discriminated based on race or national origin.
“HUD should close this case without following through on the threats made in your letter, which would only slow funding for Texans who truly need disaster mitigation,” Abbott said.
HUD has threatened to refer the matter to the Justice Department for possible legal action.
“We are considering our options and have no further comment at this time,” HUD spokesman Michael Burns said in an email Friday.
The deadline passed amid the five-year anniversary of Harvey, which inundated the Houston area with torrential rain for days, flooding more than 150,000 homes and 300,000 vehicles. The storm, which first made landfall more than 200 miles (321 km) southwest of Houston near Corpus Christi on Aug. 25, 2017, killed 68 people and caused an estimated $125 billion in damage in Texas. Many residents still have not recovered.
In an April letter to HUD, the land office’s attorneys defended how the funds were awarded, saying of the 108 projects that received money, 59% served minority-majority populations and of the 1.5 million Texans benefiting from the projects, more than 1 million were Hispanic.
“HUD’s objections are politically motivated and are factually and legally baseless. GLO did not engage in discrimination,” the land office’s attorneys said.
Many Houston-area residents and officials were outraged when they learned the land office’s initial distribution of $1 billion didn’t include one cent for their hard-hit communities. Other cities with large minority populations also flooded by Harvey, including Beaumont, Corpus Christi and Port Arthur along the Texas Gulf Coast, also got no funding.
A Houston Chronicle investigation found the land office’s initial $1 billion distribution disproportionately flowed to inland counties with less damage than coastal communities that bore the brunt of Harvey.
Where the money was spent is “so clearly not where the harm was done and where the risk is for future disasters,” said Ben Martin, research director for Texas Housers, an Austin-based nonprofit that joined Houston group Northeast Action Collective in filing the initial complaint with HUD.
After bipartisan criticism of the lack of funding for the Houston area, the land office awarded $750 million to Harris County, home to the nation’s fourth-largest city, but still nothing for Houston.
Houston Mayor Sylvester Turner on Wednesday urged HUD to enforce its ruling against the state, saying the federal agency’s integrity “is on the line.”
Moses, who is part of the Northeast Action Collective, said that after Harvey, he had to live in his home, full of mold and dust, while it was repaired and as he underwent treatment for lung cancer. During the two-year repair process, his mother, who shared the house with him and adored it, had to live elsewhere.
She died four days after she was finally able to return in 2020.
While his house is in fairly good shape now, Moses said many of his neighbors are still struggling to fully restore their homes or recover financially from repairs they paid for themselves. They also worry if enough has been done to protect them from the next storm.
“I’m just holding on, holding on ... and I’m hoping that the (federal) government steps in ... and makes sure the money gets appropriated correctly,” Moses said.
Bridging the Racial Homeownership Gap: The Power of Special-Purpose Credit Programs
Introduction
In today's discourse, we explore the significance of Special-Purpose Credit Programs (SPCPs) in addressing persistent disparities in homeownership rates in the United States. Hosted by Grovetta Gardineer, Senior Deputy Comptroller for Bank Supervision Policy at the Office of the Comptroller of the Currency (OCC), this event brings together key stakeholders from various government agencies and the financial industry. In this article, we will delve into the key takeaways from the forum and highlight the essential role of SPCPs in narrowing the racial homeownership gap.
Recognizing the Need for Change
Secretary Marcia L Fudge
Secretary Fudge, the 18th Secretary of the US Department of Housing and Urban Development (HUD), set the stage by acknowledging the persistent racial homeownership gap. Despite 55 years passing since the Fair Housing Act was enacted, the gap remains substantial. Secretary Fudge stressed the importance of addressing this issue and expressed her commitment to making homeownership accessible to all, especially those who have historically been marginalized.
A Call to Action
Acting Comptroller Michael J Hsu
Acting Comptroller Hsu emphasized the urgent need to tackle inequality in banking, particularly the wealth and income disparities between racial groups. He highlighted the stark wealth gap figures and called for innovative solutions to address these issues. Acting Comptroller Hsu stressed that SPCPs are a critical tool to target lending in vulnerable communities and reduce inequality.
Regulatory Clarity
Director Rohit Chopra
Director Chopra, from the Consumer Financial Protection Bureau (CFPB), provided insights into the regulatory aspects of SPCPs. He clarified that under the Equal Credit Opportunity Act (ECOA) and Regulation B, there is substantial flexibility for lenders to design and customize programs that promote fairness in lending. Director Chopra expressed concerns about whether the industry's hesitancy to adopt SPCPs is due to regulatory barriers or a lack of will.
Moving the Needle
Director Sandra L. Thompson
Director Thompson of the Federal Housing Finance Agency (FHFA) discussed the importance of SPCPs in the broader context of housing finance. She emphasized that these programs can help target lending in underserved communities and stressed the need for greater collaboration among lenders, agencies, and regulators to implement and execute SPCPs effectively.
Moderated Panel Discussion
The forum also featured a moderated panel discussion, with experts from organizations such as the National Fair Housing Alliance, the National Association of Realtors, the Urban Institute, and the Center for Responsible Lending. The panel explored the specifics of SPCPs and their role in reducing the racial homeownership gap.
Special-Purpose Credit Programs: Bridging the Homeownership Gap
Introduction
In a nation where homeownership remains the primary path to a prosperous future, discussions around special-purpose credit programs (SPCPs) have gained prominence. These programs are seen as essential tools to address longstanding racial disparities in homeownership and wealth. As we mark 55 years since the Fair Housing Act was enacted, it is evident that the legacy of discriminatory housing policies continues to affect communities of color. This article explores the significance of SPCPs in promoting equitable access to housing and their role in reshaping the American dream.
The Historic Divide
The history of housing in the United States is marred by systemic racism, from the discriminatory policies of the past to the present-day challenges faced by marginalized communities. Even after landmark civil rights legislation, such as the Civil Rights Act and the Fair Housing Act, we have failed to rectify past injustices fully. Today, the wealth gap between Whites and Blacks stands at a staggering 90%, with White households holding 84% of all household wealth. This stark divide is a consequence of policies that favored White families and excluded others from equitable opportunities.
The Urgent Need for SPCPs
It is in this context that we must recognize the importance of SPCPs. These programs operate under the Equal Credit Opportunity Act (ECOA) and provide a means to address racial inequality in housing and lending. SPCPs offer a chance to reverse historical wrongs, dismantling the false narrative that equates race with risk. Moreover, they are essential for the health and stability of the mortgage market, ensuring that it serves all communities and borrowers equitably.
The Role of Government Agencies
Government agencies, including the Department of Housing and Urban Development (HUD), play a pivotal role in shaping the future of SPCPs. Their legal opinions and guidance are crucial in providing lenders with the confidence to implement these programs effectively. Moreover, agencies must encourage flexibility, recognizing that a one-size-fits-all approach to SPCPs is inadequate.
Place-Based vs. People-Based SPCPs
A critical aspect of the SPCP discussion is whether to adopt a place-based or people-based approach. Place-based programs focus on addressing geographic disparities, tailoring solutions to specific regions. In contrast, people-based programs target individuals or groups who have been historically disadvantaged. Both approaches have merit and can be complementary, allowing for a multifaceted strategy to address the complex challenges of housing inequity.
Exploring Special-Purpose Credit Programs: Opportunities and Challenges
Introduction
The recent discussion on special-purpose credit programs (SPCPs) is a testament to the commitment and attention being given to addressing racial disparities in homeownership and lending practices. This article delves into the key points raised during the discussion and examines the opportunities and challenges associated with SPCPs.
Recognizing the Commitment
It's heartening to see the dedication of those involved in organizing and participating in events like these. Such initiatives underline the commitment to supporting marginalized communities and addressing historical inequities. The National Association of Realtors (NAR) has also officially endorsed SPCPs, highlighting the growing momentum behind these programs.
The Potential of SPCPs
SPCPs offer a unique opportunity to confront racial disparities head-on. The Equal Credit Opportunity Act explicitly paved the way for such initiatives five decades ago, with continued support from the Department of Housing and Urban Development (HUD). However, some lenders remain hesitant, possibly due to concerns about legal challenges.
The Challenge of Addressing Race
Racial disparities have deep historical roots in the United States, and confronting them directly is essential to bridge the gap. SPCPs provide a platform to do so, but there's a need for more lenders to embrace these programs fully. The fear of potential legal battles may be hindering progress.
The Pitfalls of Place-Based Approaches
While place-based approaches may promote investment in specific communities, they may not always directly benefit people of color. There's a risk that SPCPs in certain census tracts could be used by others and fail to have a significant impact. Moreover, these programs might inadvertently steer individuals towards specific communities, reinforcing segregation.
A Nuanced Approach
Serving historically marginalized communities requires a nuanced approach. Targeting entire cities or regions might be more effective for national lenders. However, we must be cautious about forcing people to move to access SPCPs, as this may not align with their preferences or needs.
Tailoring Programs for Different Racial Groups
Smaller racial groups with dispersed populations may face challenges under place-based programs. To be truly inclusive, SPCPs should consider flexibility and a more targeted approach to ensure all deserving individuals benefit.
Legal Assurance
Providing legal assurances for SPCPs is crucial. Lenders need to know that these programs can withstand legal challenges. Building a strong legal foundation will boost confidence in implementing SPCPs.
Toward Inclusive Credit Programs
In conclusion, SPCPs offer a promising path to addressing racial disparities in homeownership and lending. It's crucial to move beyond proxy-based approaches and design programs that directly benefit underserved communities. As we navigate the complexities of SPCPs, gathering data, and learning from different regions, we can work collectively toward more inclusive and equitable credit programs.
Let's continue these conversations, share insights, and take concrete actions to make homeownership a reality for all Americans, regardless of their racial or ethnic background.
Federal Housing Administration Launches New Option to Help Struggling Borrowers Keep Their Homes
The new offering, called the Payment Supplement, will help borrowers bring their mortgage payments current and avoid foreclosure. FHA will also extend its full suite of loss mitigation options for all borrowers through April 30, 2025.
U.S. Department of Housing and Urban Development
February 21, 2024
President Biden with U.S. Secretary of Housing and Urban Development Marcia Fudge
The new offering, called the Payment Supplement, will help borrowers bring their mortgage payments current and avoid foreclosure. FHA will also extend its full suite of loss mitigation options for all borrowers through April 30, 2025.
U.S. Department of Housing and Urban Development
February 21, 2024
President Biden with U.S. Secretary of Housing and Urban Development Marcia Fudge
