The unconstitutional practice of home equity theft has allowed individuals to be stripped of their property without fair compensation.
by Brittany Hunter
For three years, the pair scrimped and saved in order to fix up the four-unit property. On the weekends, Ramouldo would spend his days off making the 11-hour drive from New Jersey to Michigan to work on the house, making the much-needed repairs himself. In addition to the small complex, the family had purchased a small home next door. The plan was to renovate and rent out each unit and then use that money to help Ramouldo retire and move his family to the small home in Michigan, where the rest of their extended family resides.
Erica, who had seen her father work long hours and sacrifice to provide for her family over the years, was happy to help her father buy the property. She was eager to begin building her own financial legacy and saw the property as an excellent investment opportunity.
These plans were derailed, however, when their property was seized by Wayne County, Michigan, in 2017 and sold to a private buyer.
All because they unknowingly underpaid their tax bill—by $144.
While the father and daughter had been paying their property taxes diligently for each year they owned the property, in 2014, they unintentionally underpaid by $144. Neither knew about this miscalculation or the situation could have quickly been remedied. And without knowledge of this outstanding debt, the small amount grew as the county tacked on interest charges to the tune of $359.
To be sure, when interest was accounted for, the Perez family did owe roughly $500 in unpaid taxes to the county. County officials used this as justification to seize, sell, and then keep the $108,000 revenue earned from the sale of said property.
The government is allowed to seize property in order to settle a debt owed by an individual. However, it isn’t allowed to take more than it is owed.
In the American legal system, there is a maxim: the punishment must fit the crime. But when considering the small amount by which the Perez family underpaid their property taxes, this seems like a disproportionate punishment to receive.
The government is allowed to seize property in order to settle a debt owed by an individual. However, it isn’t allowed to take more than it is owed. And in the instance of the Perez family property, Wayne County kept every penny it earned from the sale of their property—a practice known as home equity theft.
Fortunately, Pacific Legal Foundation (PLF) has stepped in and on July 9th, announced that it had filed suit on behalf of the Perez family against Wayne County and County Treasurer Eric Sabree.
Home Equity Theft
Many of us have accidentally underpaid a bill before. Whether we were distracted, busy, or simply not paying enough attention to the total amount due, accidents happen to everyone. Eager to get the full amount owed, most companies will send strongly worded letters or call incessantly until you cough up the remaining amount due. It’s completely understandable as to why an entity would do this: they want what is owed.
However, if they tried to take your car away over the miscalculation of a few dollars, most people would be angry—and justifiably so.
When it comes to property taxes, if an individual underpays by even just a few dollars, there are 12 different state governments that can and will seize your property and sell it, without having to pay you a dime of the earnings. This is known as home equity theft. Unfortunately, the Perez family is not the only victim of this practice in Michigan.
In 2014, Uri Refaeli lost his home after it was foreclosed on and seized by Oakland County, Michigan. In 2011, Rafaeli purchased a small $60,000 property for his business, Rafaeli, LLC. While he had paid his 2012 and 2013 property taxes in full, he discovered that he had accidentally underpaid in 2011. When he made this realization and tried to correct his mistake in 2013, he forgot to account for the interest that had accrued on his back taxes. As a result, he underpaid by a measly $8.41. The county seized and sold his property for $24,500. Rafaeli never saw a dime of this money.
When it comes to outstanding debt, just like private companies, governments are eager to get what is owed and there nothing wrong with them attempting to do so. However, when they begin to go after more than they are owed, the situation becomes troublesome.
To make matters worse for Michigan, the state also has a shady reputation for using this practice to its own benefit. According to Pacific Legal Foundation (PLF), local governments pad their budgets with the money earned from this stolen property. Each year in Detroit’s budget, there is a line with the estimated total revenue that the government is expecting to bring in from foreclosures of this very nature.
Earlier this year, it was discovered that Wayne County Treasurer Eric Sabree had violated Treasurer’s office rules by funneling foreclosed properties to family members and well-established and connected businessman for a fraction of the cost.
While state Treasurer’s office rules prohibit family members from participating in these auctions, several Freedom of Information Act requests filed on behalf of a Detroit News investigation found that transfers involving Sabree's family overlap with his time in office. Since 2011, when Sabree began as deputy treasurer, Wayne County has transferred ownership of more than 1/4 of privately owned properties in Detroit as a result of back taxes—making the whole situation in Michigan even more suspicious.
Home Equity Theft in Montana
Michigan is not the only state guilty of using the practice of home equity theft. In Montana, local governments have been known to sell private homes of those with back taxes to “preferred” private investors, a practice that helped get the practice of home equity theft banned statewide just a few months ago.
Eighty-year-old electrician Gary Guidotti once owned four homes in Great Falls, Montana, which he rented out to help support himself and pay his bills. When the Great Recession hit in 2007, some of his tenants were no longer able to afford rent and stopped paying altogether. And without their rent helping to support him, Guidotti stopped paying his property taxes.
In 2008, Cascade County, Montana issued a tax lien of $1,125.45 on one of his homes. Just 17 months after issuing the lien, the county ended up selling it to a well-connected private entity for pennies on the dollar at $667.20. The private company, Sunrise Financial, acquired the deed to the property in 2011 and in 2015, sold the property for $139,300. Guidotti, of course, received no compensation from the sale of his home.
“This can’t be fair,” Guidotti said. “It (the law) has to be changed, but what’s the sense in fighting? The lawyers will have it all anyway. It’s just the way it goes.”
Without his properties, Guidotti was forced to move into a motorhome parked behind one of the homes that he used to own.
Challenging Home Equity Theft in Court
Our country was founded on the fervent belief that individuals have the right to their life, liberty, and, as is especially applicable here, their property. Greatly influenced by philosopher John Locke and his Second Treatise on Government, our country’s Founders understood how important property rights were to securing individual liberty and protecting Americans against government overreach.
In chapter five of Locke’s famous essay, “On Property,” he writes:
Though the earth, and all inferior creatures, be common to all men, yet every man has a property in his own person: this no body has any right to but himself. The labour of his body, and the work of his hands, we may say, are properly his. Whatsoever then he removes out of the state that nature hath provided, and left it in, he hath mixed his labour with, and joined to it something that is his own, and thereby makes it his property. It being by him removed from the common state nature hath placed it in, it hath by this labour something annexed to it, that excludes the common right of other men: for this labour being the unquestionable property of the labourer, no man but he can have a right to what that is once joined to (emphasis added), at least where there is enough, and as good, left in common for others.
When a person works, like Ramouldo Perez did, and uses the fruits of his or her labor to purchase property, that property is theirs and theirs alone. This respect for the sanctity of property rights has been one of the most defining characteristics of the American idea.
Yet, practices like home equity theft and civil asset forfeiture, which allow law enforcement to strip individuals of their property without due process, have belittled this sacred principle and harmed many innocent people in the process. The confiscation of a person’s property, especially over a few dollars of unpaid taxes, is thoroughly unAmerican. Private property should be protected by the government, not seized and sold off before an individual has an opportunity to remedy the situation.
The unconstitutional practice of home equity theft has allowed individuals to be stripped of their property without fair compensation. But there is hope that this practice could soon be reined in or perhaps even stopped altogether.
In May, after diligent efforts made by PLF, Montana passed Senate Bill 253, giving property owners further protections against home equity theft.
The new law protects homeowners’ equity by requiring homes be sold to the highest bidder. Now the extra profits must be returned to the former owner after deducting taxes, interest, penalties, and costs,
The system for inspecting federally subsidized properties is failing low-income families, seniors and people with disabilities and undermining the agency’s oversight.
by Molly Parker, The Southern Illinoisan
In the winter of 2017, a toddler was rushed to the emergency room after swallowing rodent poison inside her family’s unit at the federally subsidized Clay Arsenal Renaissance Apartments in Hartford, Connecticut. Her mother had placed sticky traps throughout the house after another one of her children was bitten on the arm by a mouse, according to a local housing advocate who worked with the family.
This August, Missouri Attorney General Josh Hawley sued the St. Louis Housing Authority and the private management company it hired to run the Clinton-Peabody Housing Complex, saying they both violated the state’s consumer protection laws by advertising that the development was habitable even though it was plagued by a pest infestation, black mold and water damage.
That same month, residents of Texas Coppertree Village Apartments in Houston filed suit against the U.S. Department of Housing and Urban Development, saying the federal government had failed to hold their landlord accountable for deplorable conditions and criminal activity at the federally subsidized complex, including rapes, aggravated assaults and robberies.
In all three cases, despite well-known, long-standing problems, the properties had passed their most-recent inspections mandated by HUD.
Apartment complexes subsidized by HUD collectively house more than 2 million low-income families around the country. Some are run by public housing authorities and others are owned by private for-profit or nonprofit landlords. By law, the owners of such complexes must pass inspections demonstrating they are decent, safe and sanitary in exchange for millions of dollars in federal money each year.
But as thousands of renters across the country have discovered, passing scores on HUD inspections often don’t match the reality of renters’ living conditions. The two-decade-old inspection system — the federal housing agency’s primary oversight tool — is failing low-income families, seniors and people with disabilities and undermining the agency’s oversight of billions of dollars in taxpayer-funded rental subsidies, an investigation by The Southern Illinoisan and ProPublica has found.
HUD has given passing inspection grades for years to dangerous buildings filled with rats and roaches, toxic mold and peeling lead-based paint, which can cause lifelong learning delays when ingested by young children. The same goes for buildings where people with disabilities have been stranded in high-rise apartments without working elevators, or where raw sewage backs up into bathtubs and utility drains. The agency has passed buildings where ceilings are caving in and the heat won’t kick on in frigid winter months as old boiler systems give out.
The failure of HUD’s inspection system has been on display in the southern Illinois towns of Cairo and East St. Louis, which have had their public housing taken over by HUD. In both towns, complexes received passing scores as decades-old buildings deteriorated.
HUD’s inspection system “is pretty much a failure,” and the agency’s staffing levels after years of budget cuts are “wholly inadequate” to assess properties, said Sara Pratt, a former senior HUD official who worked at the agency under Presidents Bill Clinton and Barack Obama.
Kate Walz, director of housing justice with the Sargent Shriver National Center on Poverty Law, a social justice and legal advocacy organization based in Chicago, said, “We just shake our heads sometimes.”
“Some owners fail an inspection and they have a great building, and some owners pass it, and they have just a horrible building,” she added. “We’re running up against this all the time.”
The consequences of these failures are made more severe by the paucity of affordable housing in communities across the country. Nearly one in five of the nation’s 43 million renters spend more than half of their income on housing, according to an April report by The Pew Charitable Trusts. With few alternatives available to families who live in deep poverty, many choose to stay where they are and endure their conditions rather than complain and risk eviction and homelessness.
That’s why it’s critical that HUD ensures the safety and stability of government-funded housing units set aside for low-income families, housing advocates say. It’s a difficult charge given that the vast majority of these apartments are decades old, and many of them have gone without routine maintenance for years.
Representatives of the Clay Arsenal Renaissance Apartments have said that they tried to fix problems there and that the property’s passing scores meant it met HUD’s standards. After a yearslong effort led by tenants, HUD ended its contract with the owner in May. The St. Louis Housing Authority did not respond to a call seeking comment, but in news reports it said that efforts have been made to improve conditions at Clinton-Peabody, including by addressing the mice problem. And after tenants of the Texas Coppertree Village Apartments filed suit against HUD, inspectors gave the building a failing score and HUD has issued two default notices to its owner. HUD’s response to the tenants’ lawsuit was due on Tuesday, but the department has sought an extension.
The Southern emailed a synopsis of its findings to a HUD spokesman several weeks ago. The agency declined to comment in detail. HUD spokesman Jereon Brown said in an email that “the perfect system hasn’t been, and probably will not be designed. That given, the agency continues to learn and we realize the challenges of a 20-year old system.”
HUD declined to make Secretary Ben Carson available for an interview, but in late October, Carson shared a two-page statement on Twitter that said he “directed a wholesale reexamination” of how the department conducts inspections. Carson wrote that the agency is exploring “immediate improvements and those refinements over the long-term.”
The letter did not elaborate on those changes or when additional details would be made public.
“We’re simply signaling that change is coming,” Brown said. “The details will be released when we’re convinced we have a system that will better serve the residents.”
HUD’s inspection system was born out of political fallout from the agency’s previous oversight failures.
“HUD has been plagued for years by scandal and mismanagement,” then-HUD Secretary Andrew Cuomo told lawmakers during a Senate hearing in 1997, announcing a reform plan, of which standardized inspections was a central feature. In the 1980s, he said, HUD was the “poster child for fraud, waste and abuse.”
“At the time, if you knew HUD at all, you knew it through its failures,” Cuomo said, citing as examples Cabrini-Green in Chicago and Pruitt-Igoe in St. Louis, large public housing complexes that have since been leveled.
Facing calls for his department’s elimination, Cuomo called for the creation of a Real Estate Assessment Center within HUD, which would largely rely on contractors to assess the financial and physical conditions of landlords managing HUD-subsidized properties.
All properties are supposed to be inspected at least once every three years, and poorer performing ones more often. HUD also has the ability to perform an inspection at other times in response to complaints by tenants or others. Scores are issued on a 100-point scale, with a 60 needed to pass. After the inspection, landlords receive a list of all life-threatening health and safety violations, and they have three days to fix those problems. If a privately owned property fails with a score below 30 or has two consecutive scores below 60, it is referred for enforcement action, which can include termination of a contract.
HUD survived the 1990s, but not before Congress cut a quarter of its annual budget and ordered a massive downsizing. The agency’s workforce has been reduced by more than half since the mid-1980s, from roughly 17,000 to about 8,000.
HUD has fielded complaints for years about flaws with its inspection system, particularly with respect to its complicated scoring algorithm that struggles to tell the difference between unsafe properties and decent ones, said Mike Gantt, senior vice president of The Inspection Group, a consulting company that helps properties prepare for their inspections.
“Many people have believed these scores to be largely meaningless for nearly 20 years, and this includes many HUD officials who will say so privately,” Gantt said. “This is not a newly discovered problem. Any claim to the contrary amounts to a cover up or ignorance of historical fact.”
Through a spokesman, Cuomo, now the governor of New York, defended the creation of the inspection system in the 1990s, saying that before it, there was no uniform system for inspecting federally subsidized housing across the nation. But spokesman Tyrone Stevens added that, with the passing of two decades and a dropoff in federal funding and oversight, Cuomo believes the system needs to be reevaluated.
The system’s flaws were brought into sharp relief a few years ago, when deplorable conditions in apartment buildings owned by the nonprofit Global Ministries Foundation prompted news reports and a 2016 Senate hearing that called into question HUD’s oversight.
Over a number of years, the nonprofit and a subsidiary had purchased 60 properties for low-income residents in Alabama, Florida, Georgia, Indiana, Louisiana, New York, North Carolina and Tennessee. The nonprofit, run by an evangelical minister in Memphis, Tennessee, named Richard Hamlet, entered into contracts with HUD to house thousands of tenants in about 40 of the properties.
By 2014, Global Ministries was receiving about $40 million in federal funds annually to offset reduced rents through HUD’s project-based Section 8 program.
Internally, HUD officials were raising serious questions about the conditions at the properties, said John Gemmill, who retired from the department in 2016 as director of the agency’s Memphis office. But externally, little happened, and tenants suffered.
When Cynthia Crawford moved into Warren Apartments in Memphis in 2013, she was desperate for a place to live. For nearly four years prior, she had been homeless, bouncing between friends’ couches and shelters. Her children were in foster care, and to get them back, she had to have a home. But the conditions they endured were horrendous. “These were not just any house mice. I’m talking about rats so big we thought they were possums. A lot of ceilings were falling in on families. Stoves and fridges didn’t work. We had issues with floors falling out from under people,” Crawford said. “It was just an absolutely hopeless feeling.”
For years, the inspection scores assigned to the Memphis properties were inflated as they fell into disrepair, well before Global Ministries purchased them, said Brad Watkins, director of the Mid-South Peace and Justice Center, a civil rights organization that works with tenants. The scores began to drop only after Watkins and others raised concerns with HUD, he said.
Then, in the spring of 2015, Crawford and other residents began organizing and Memphis’ local paper, The Commercial Appeal, revealed that people were living in unsafe units at Warren Apartments, one of the Global Ministries properties. At roughly the same time, Hamlet paid himself a salary of $500,000. After the story ran, HUD inspectors returned, this time issuing a failing score for Warren and Tulane apartments, which were inspected jointly. Months later, HUD moved to end a contract with Global Ministries for these two properties.
This prompted reporters and advocates in other states to start asking questions. In the spring of 2016, U.S. Sen. Marco Rubio, R-Fla., visited a troubled 400-unit apartment complex in his home state that was owned by Global Ministries. During the visit to Eureka Garden Apartments in Jacksonville, Rubio told a representative of the owner that the conditions he had witnessed were “terrifying and inexcusable,” according to news reports. Days later on the Senate floor, Rubio turned his attention to HUD. He criticized the agency for not giving the property a failing inspection score.
“I, for the life of me, don’t know how they passed any inspections because, I’m telling you, I visited and I’m not a building inspector, but you don’t have to be one to visit this building and know there is no inspection that the building should ever pass,” Rubio said.
That August, under pressure from HUD and the public over poor housing conditions, Hamlet announced plans to put all of Global Ministries’ HUD-subsidized properties up for sale.
Brown, the HUD spokesman, said that Global Ministries “hurt a lot of folks in Memphis” and that the department forced Hamlet to sell his HUD-subsidized properties. But in an interview, Hamlet said that the department had been familiar with deteriorating conditions in the properties that Global Ministries bought, as they had long been a part of HUD’s rental subsidy program under prior owners. The department also had to review his financing plans, approve the purchases and enter into contracts with the nonprofit.
In the interview, Hamlet blamed tenants for lacking basic housekeeping skills, faulted the management companies he hired to run day-to-day operations and said he was targeted by HUD officials because he’s a pastor. He defended his salary, saying a consultant told the nonprofit’s board that he was “underpaid.” “It’s clear we became the pinata of all the frustrations of the whole Section 8 program on some of these older properties,” Hamlet said.
The problems with Global Ministries prompted a broad re-examination of oversight at HUD and promises of reform.
In the last two years alone, Brown said, HUD has increased training and oversight of contractors who conduct inspections on the agency’s behalf. In 2016, HUD ordered inspectors to mark down properties for shoddy repairs such as using plywood to cover holes in drywall or tape to fix a rotting refrigerator gasket. And in 2016 and 2017, the agency decertified more than 50 contract inspectors after determining they had not properly followed protocols.
These changes had a dramatic effect on inspection scores nationally. From 2015 to 2017, the failure rate nationwide roughly tripled — from 4 percent to 13 percent for public housing complexes, and more than doubled from 2 percent to 5 percent for privately owned projects subsidized under HUD’s project-based multifamily programs. About 260 private properties with housing assistance failed, roughly one of out of every 19, as did about 430 public housing complexes, roughly one in eight properties inspected in 2017.
At the same time, the number of inspections of privately owned multifamily properties has decreased dramatically over the same period, from 8,400 in 2015 to 4,900 last year. HUD declined to answer a question about the reason for the drop.
But even after the changes HUD made to improve inspection protocols, unsafe properties continue to pass in some places. Nowhere is that more apparent than in Hartford.
In early 2017, a school family resource coordinator reached out to the Christian Activities Council, a neighborhood advocacy organization in Hartford, after a child at her school said she’d been bitten by a mouse. A community organizer with the nonprofit arranged a meeting with the child’s mother to find out more. But at the appointed time, the mother wasn’t home. Her other child had swallowed rat poison and was in the emergency room at a local hospital.
Shortly after this incident, Cori Mackey, the nonprofit’s executive director, and other advocates began knocking on doors in Hartford’s North End, a distressed neighborhood that sits a half-mile from the capital city’s downtown.
The Clay Arsenal Renaissance Apartments consist of 26 buildings, each containing six to 12 units. Most tenants did not realize that they shared a landlord, Mackey said. But after speaking about their shared concerns, the tenants decided they wanted to take on the landlord, Ah Min Holding LLC, and its managing member, Emmanuel Ku, and ultimately, HUD. A core group of six residents led the charge.
In April 2017, the Christian Activities Council reached out to HUD’s regional office in Boston to express concerns about unsafe conditions despite the property’s passing inspection scores. The following month, a construction analyst from HUD’s Boston office visited the property and found outdated kitchens, dead mice, nonfunctioning baseboard heaters and rickety outdoor decks, according to a report obtained by The Southern in a records request.
The next month, HUD issued Ah Min Holding a notice of default, giving the owner seven days to fix the most serious health and safety violations. But nothing really changed, the residents said.
Between late June and early July 2017, a HUD inspector assessed the property again. Because the department had been made aware of problems, this particular inspection was more intensive than is typical. Still, the property passed, scoring 73, just one point less than the previous year’s 74.
The property was marked down for mold and mildew, infestation and defective windows and doors inside units. But the owner compensated for those problems by posting high scores in other categories, including the exterior of the buildings and the grounds, which tenants said were manicured in the days before HUD officials arrived, while their units received little attention.
In early July, a little more than a week after the inspection, tenants held a rally and press conference where several detailed their poor living conditions and what they said was an absentee landlord. Afterward, Joseph Crisafulli, a senior HUD official from the agency’s Boston office, addressed the tenants, saying, “The stories I’ve heard about are as far away from acceptable HUD housing as I’ve heard in my 29 years at HUD.”
That same month, a rodent expert from Cornell University found that the mouse problem at Clay Arsenal defied amateur mouse traps. Because mice were living and breeding behind fridges, in walls and cabinets and in the cushions of plush furniture, he recommended an extensive and professional extermination effort to control the problem.
In September 2017, Yulissa Espinal, one of the tenants’ leaders, gave birth to a baby girl. She and her baby had to stay in the hospital for a week and then in a hotel for another while a social worker and city code enforcement officer attempted to force her landlord to rid her unit of rodents.
When Espinal returned home two weeks later, she said she found a dead mouse in the living room. It wasn’t long before the live mice returned, she said, forcing her to set traps around her baby’s crib at night. “I worried one would get into the crib and bite her,” said Espinal, a school bus driver raising four children on a limited income.
She and others continued to plead with HUD for help, while Ah Min Holding mounted a challenge to another default notice sent by the department, threatening to cancel the company’s contract. Ku’s attorney, Carl A. S. Coan III, told HUD that such a decision was “arbitrary” and “completely contrary” to the department’s enforcement regimen for a property that had passed its most recent inspection. Ku did not respond to request for comment through Coan. HUD withdrew the second default notice and instead required Ku to fix a lengthy list of problems by January 2018, a deadline the department extended numerous times.
Dismayed, the advocates and tenants kept searching for answers. They discovered what they considered an opening: Ah Min Holding had not properly obtained certificates of occupancy for its rental buildings, which require a city inspection when there is turnover of a rental unit. The city agreed. In February of this year, city officials inspected about 100 of Ah Min’s units, and nearly all of them failed.
In April, HUD once again notified Ah Min Holding that the company was in violation of its contract with the department. On May 2, the mayor of Hartford told Ku in a letter that the city would charge Ah Min $99 per violation per day until he fixed the issues. Two weeks later, a city committee voted to end Ah Min Holding’s tax abatement, which was worth about $266,000 annually.
On May 31, tenants found letters taped to their door from HUD, announcing that the agency had pulled the company’s contract and would provide them assistance in relocating. HUD also sent Ku a letter stating that “in light of the conditions at the project, and your continuing failure to provide decent, safe housing,” the agency was denying his company’s request for additional time to fix problems.
Rhonda Siciliano, spokeswoman for HUD’s Boston office, said that routine inspections are only one of the agency’s oversight tools for holding landlords accountable: “Is it the primary one? Yes. Is it 100 percent foolproof? No.”
Siciliano said that as soon as problems were brought to HUD’s attention by the advocacy organization, the agency responded. But that’s the problem, said Mackey, the executive director of the nonprofit helping the tenants.
“HUD acted only because we put pressure on them, not because that’s part of their standard oversight system,” she said.
Even as HUD is making promises to further reform the inspection system, years of inflated scores assigned to unsafe and deteriorating properties has caused harm that will be hard to reverse.
Congress has made cuts to programs that pay for renovations at apartment complexes for years, and this has led to a massive backlog of repairs. In 2011, HUD published a study saying that some 1.2 million public housing units needed about $26 billion in large-scale repairs, and that the backlog would grow by more than $3 billion annually. (There has not been a more recent assessment.)
One of the most dramatic public housing oversight failures is playing out in New York City, in Cuomo’s home state, where nearly 400,000 people live in public housing. For decades, the New York City Housing Authority, the nation’s largest, managed to avoid many of the pitfalls and public relations nightmares that plagued other large cities. It was considered a success story for government-run housing. But not anymore.
This winter, thousands of tenants were without heat. The housing authority later admitted it had not properly conducted inspections for lead paint in recent years, and hundreds of children were poisoned. Units are overrun with rats and mold. In a complaint, federal prosecutors accused local officials of trying to conceal the extent of the problems and mislead HUD inspectors with actions such as turning off the water to buildings to conceal leaks and posting “Do Not Enter” signs on basement rooms. The city, which manages the housing authority, has agreed to spend more than $2 billion over a decade on renovation efforts, and to be overseen by a federal monitor under the terms of a consent decree that still must be approved by a federal judge.
Yet, records show that HUD has known about serious health and safety deficiencies inside New York City’s public housing complexes for years. Some inspection reports estimated more than 1,000 health and safety deficiencies; the properties continued to receive passing scores. On Wednesday, a judge declined to sign off on the consent decree because he said it did not go far enough to address conditions he described as “somewhat reminiscent of the biblical plagues of Egypt.” He asked both sides to come back next month with a proposal for how to proceed.
Similarly, in the town of Cairo, located in the southern Illinois region known as “Little Egypt,” residents of the Elmwood and McBride apartment complexes lived with mice, mold and heating outages that forced them to heat their homes with gas ovens. And for years, HUD gave these buildings passing grades as they fell apart.
Today, both buildings are empty.
Vines stretch up their sides. Plywood boards have been stapled over windows. Mangled, wind-whipped metal awnings hang over them. Once home to hundreds of children, it’s now eerily quiet. Before HUD moved everyone out, nearly a sixth of the population of this town at Illinois’ southernmost border lived in the two 1940s-era apartment complexes.
When HUD placed the housing authority into receivership, an agency spokesman told The Southern that HUD was “stunned … at what it saw, not just in terms of deplorable living conditions” but also “poor and absent record keeping, the staggering backlog of critical repairs.”
When HUD finally announced a plan to address the unsafe conditions in the spring of 2017, officials told residents that the buildings were too far gone to save, and that the department was no longer in the business of building public housing. Residents were provided vouchers that subsidize rent in the private market, but many had to leave Cairo because it had few rental apartments. The shuttering of Elmwood and McBride leaves few public housing options: two high-rise towers and several smaller buildings.
When HUD’s inspector general released a report this summer examining why the department didn’t step in sooner, faulty inspections were identified as part of the problem.
Brown, the HUD spokesman, previously told The Southern that what happened in Cairo was a “rare” oversight failure on the department’s part. Three inspectors who had performed physical inspections at the Alexander County Housing Authority between 2009 and 2016 have been decertified for performance issues.
But Jeremy Kirkland, HUD’s acting deputy inspector general, told a House subcommittee in late September, “I am absolutely certain there are others out there like Elmwood and McBride.”
Republished with permission under license from ProPublica, a Pulitzer Prize-winning investigative newsroom.
The HUD secretary came to town last year and declared residents were no longer at risk, three decades after the federal government took over public housing here. In fact, the complexes are falling apart and a woman was killed in the weeks before his visit.
By Molly Parker, The Southern Illinosian
EAST ST. LOUIS, Ill. — The city’s administrative building was decorated for a festive affair when U.S. Housing and Urban Development Secretary Ben Carson arrived here last September. An Americana themed banner draped the back of a raised stage. Red, white and blue balloons floated in the foreground.
“This is really an exciting day,” Carson told a crowd of a few dozen city and community leaders. “It is a day of transition and a day of progress.”
In October 1985, HUD officials arrived here unannounced and seized control of the East St. Louis Housing Authority, citing poor living conditions and fraud. Carson was in town to return it to local control.
In a brief speech, Carson said that when former President Ronald Reagan’s HUD took over the housing authority five presidential administrations ago, “the residents were at risk, and the future of our children was at risk.”
Inspectors reported such problems as windows and doors that didn’t lock, infestation, mold and mildew, fire safety violations, holes in walls, broken appliances, peeling paint and missing lead-based paint inspection reports. Among the properties that failed, HUD inspectors estimated an astounding 5,405 violations. One-quarter were deemed life threatening.
In at least one case, persistent security problems may have played a role in a tenant’s death.
Around 4 a.m. on Aug. 8, 2017, Winston made a frantic call to 911, told dispatchers someone was trying to break in, screamed and hung up the phone. When police arrived at the John Robinson Homes, they found her first-floor kitchen window shattered and Winston dead upstairs, her body on the right side of her bed. Her toddler was in a nearby playpen.
In the months preceding her death, Winston made repeated requests to the housing authority, then still under HUD’s control, to fix the window, according to family and friends. It didn’t lock and was missing a security screen, commonly seen on other windows throughout the apartment complex. Winston’s complex failed its HUD inspection last year.
Carson did not tour any public housing complexes in East St. Louis when he visited last September, HUD spokesman Jereon Brown said in a written response to questions. At the time, Carson also was not aware of Winston’s death, Brown wrote. Asked if Carson stood by his remarks, the spokesman declined to comment.
“The path forward for public housing is not a dilemma that is limited to East St. Louis,” Brown said in an email.
The neglect of public housing in big cities like New York, Chicago and Washington, D.C. has been widely documented. But the crisis is also hitting small towns and mid-sized cities — places like Peoria, Illinois; Gary, Indiana; Birmingham, Alabama; Hoboken, New Jersey; Buffalo, New York; and Highland Park, Michigan, HUD property inspections show.
And now, after years of congressional funding cuts to public housing programs, the Trump administration has proposed slashing far more. HUD funding for major repairs at public housing complexes, for instance, has fallen 35 percent — from about $4.2 billion in fiscal 2000 to $2.7 billion in 2018, according to the Center on Budget and Policy Priorities, a liberal-leaning think tank. Earlier this year, the White House proposed completely eliminating this funding.
St. Clair County State’s Attorney Brendan Kelly said a homicide investigation into Winston’s death remains open.
Kelly, who is also the Democratic nominee for a U.S. House district that includes East St. Louis, has been critical of HUD. After reviewing inspection reports for the properties given to him by The Southern Illinoisan, Kelly said they should have prompted the housing authority to further assess and fix security concerns in all units, and flagged HUD to make sure it was done.
Roughly one in every four of the 27,000 East St. Louis residents live in public housing.
“HUD failed Alexis and so many others there that simply want to live in peace and safety,” he said. “How can anyone put their lives together and lift themselves out of the circumstances that lead them to public housing if you are fighting for your own safety every day?”
A century ago, the city of East St. Louis was a powder keg. During the World War I industrial boom, African Americans flooded the city, looking for jobs. Shut out of work in the South, some were willing to cross picket lines, angering many white workers.
In the summer of 1917, a white person drove into a black neighborhood and sprayed homes with gunfire. Other black people reported being pulled from their cars by whites and beaten that night. Black citizens returned fire, unintentionally striking two police officers in a parked car who had arrived to investigate the shootings. Over the course of three days in July, dozens of black people were beaten and lynched, one of the most savage race-based attacks in the 20th century. Whites set fire to their homes and shot at them when they ran.
Some black residents fled town and never came back, but far more moved in.
In the 1930s, between the world wars, discussions began about building two public housing developments in East St. Louis — one each for black and white residents. After years of political infighting, protests and attempts to scrap plans for African-American housing altogether, more than 400 families moved into the Samuel Gompers Homes and John Robinson Homes in 1943.
East St. Louis’ population peaked at more than 82,000 in the 1950s — and several additional large public housing complexes were built.
But since then, the city has been in a freefall. Between roughly 1960 and 1990, the city lost more than 13,000 jobs. The white middle class had already moved. During this time period, much of the black middle class packed up and left, too.
In 1990, about five years after HUD took over the housing authority, then-Illinois Gov. James Thompson agreed to spend $34 million to pull the city from the brink of bankruptcy. But that couldn’t prevent East St. Louis from turning over the deed to its four-year-old City Hall that same year after losing a lawsuit filed by a man who was beaten by another inmate while in jail on a traffic violation.
“Many American cities such as Los Angeles, Baltimore and Detroit have neighborhoods where need is urgent, but they differ from East St. Louis in one important respect,” East St. Louis noted in a 1995 report to HUD, discussing its housing needs. “They can shift resources from more affluent neighborhoods into poorer ones, whereas East St. Louis has such pervasive poverty and a woefully inadequate tax base that shifting is exceedingly difficult.”
“As an East St. Louis native, it pains me to see my old home town in such extreme distress,” said Sen. Dick Durbin, D-Ill., who was raised in East St. Louis. Residents here “suffer from one of the highest violent crime and homicide rates in the country” and “deserve better,” he said.
Durbin, a member of the Senate Appropriations Committee, said he’s helped East St. Louis secure half a million dollars to install a new security and lighting system at two large public housing complexes. Durbin also supported efforts by Mayor Emeka Jackson-Hicks to end the receivership. In an interview last year, the senator said the federal takeover had long been a “sticking point” for city leadership because they wanted the opportunity to manage the housing authority on behalf of their residents. Durbin said he has confidence in Jackson-Hicks, who was elected in 2015, that he didn’t have in previous leaders.
“But it is clear that more work remains to keep the families living within ESLHA [housing authority] safe,” he said.
Neither Winston nor any immediate family members had ever lived in East St. Louis Housing Authority apartments, but she added her name to the waiting list in the winter of 2017.
At the time, Winston and her baby were staying with Winston’s mom, Florince Harlan, in Belleville, Illinois, a short distance away. When Royal turned 1, Winston had started working as a clerk at Circle K in St. Louis and she was eager to establish her independence.
The first apartment she was offered was in the John Robinson Homes. Harlan said she was concerned about it by reputation. “I didn’t want her to go there,” she said.
The John Robinson Homes was named for an ex-slave, a Civil War captain and turn-of-the-century civil rights leader. The complex sits downtown, in the shadow of the Gateway Arch on the Illinois side of the Mississippi River. The signs of neglect are clear: holes in the soffit lining of the roof exposing ragged yellow insulation, a boarded-up community center with holes in the windows that appear to have been caused by bullets. Inside the units, there are mice, roaches, holes in walls, leaky ceilings and missing appliances.
After moving in, Winston reconnected with Devanie Moran, a close friend from grade school who lived in another public housing complex, John DeShields Homes, a half-mile away. They had children about the same age; the moms worried together about keeping their kids safe.
Moran showed Winston where the management office of the apartment complex was located, and how to file a work order. Moran knew the drill, having moved in several years before Winston. At one point, Moran’s living room ceiling leaked so badly “it was basically raining inside.”
Farlon Wilson lives on the opposite end of the complex from Winston. Leaking pipes caused a hole in Wilson’s living room ceiling that the housing authority patched over, and she continues to battle a mold problem with bleach, which she believes is making her children sick. Her bathroom sink fell off the wall. She would have preferred to live elsewhere but this was the apartment offered to her and she took it.
Winston’s mom and sister said that Winston wasn’t thrilled about moving into the John Robinson Homes, either. But she was determined to keep an upbeat attitude, her mom said.
“We accepted this because you have to accept something low in order to get to something big,” Harlan said.
When HUD officials took over the housing authority in 1985, they told reporters that they would improve living conditions and the housing authority’s finances. Over three decades, the housing authority’s financial condition improved from a $14 million deficit to a surplus. A few longtime residents said living conditions had also improved in the earlier years of HUD’s takeover, but then declined again.
Longtime tenants such as Delbra Myles have complained that the housing authority hasn’t painted occupied units for 20 years. This isn’t just a cosmetic problem. The paint chipping from window sills and bathtubs may contain toxic levels of lead, according to a lead paint assessment that was conducted in April for the Samuel Gompers Homes, which was built for whites but is now occupied almost exclusively by black families. That report was obtained by The Southern Illinoisan through a public-records request.
HUD inspectors have cited Gompers for missing lead-based paint inspection reports for years. From 1995 to 2016, while HUD was the receiver, state health department test records show at least 70 cases of children with dangerously elevated lead levels. Lead poisoning can cause lifelong developmental delays and health problems in affected children. The cause of the children’s high lead levels has not yet been established.
Mildred Motley, the East St. Louis Housing Authority’s executive director, said her agency is examining “the exact impact of the alleged lead levels” and has applied for a grant from HUD to assist with removing or sealing lead paint, if necessary. Brown, the HUD spokesman, declined comment on the missing lead paint assessments during HUD’s receivership.
The troubles go beyond lead paint. In audits of the East St. Louis Housing Authority in 2011 and 2012, HUD found that the housing authority double-billed the federal government for certain salaries and unit renovations, and mismanaged stimulus funds during the recession of the late 2000s.
In 2012, HUD’s Office of Inspector General found that the department’s failures to give East St. Louis the consistent leadership and detailed attention it needed had prolonged its receivership and led to “significant management and operational” shortcomings.
The report concluded that HUD “needs to improve its structure for managing receiverships.” Since taking over East St. Louis, HUD has placed about 20 more housing authorities into administrative receivership. Three remain under HUD’s control, all of them in small majority African-American cities in the Midwest: Gary, Indiana; Wellston, Missouri; and Alexander County, Illinois, home of Cairo, the southernmost town in the state.
The day of Winston’s death, Carson was in Cairo, about two hours from East St. Louis, speaking with tenants of two 1940s era housing complexes that HUD plans to demolish because they are no longer safe. The decision to shut down the Cairo complexes after years of neglect and HUD oversight failures was one of Carson’s first major decisions as secretary.
Five days after Carson visited East St. Louis and declared the housing authority in excellent shape, HUD’s inspector general released yet another damning report about the city’s housing agency. This one accused a private management company, working on the housing authority’s behalf, of improperly paying workers and awarding contracts to companies owned by employees or their spouses instead of honestly evaluating bids. In a response contained within the report, the company noted that its president initially contacted HUD when “made aware of an employee conducting fraudulent activities,” but disagreed with the amount of money the inspector general claimed was overpaid to workers. The housing authority has ended its relationship with the company.
It didn’t take long after Winston moved in for issues to arise, Winston’s family and friends said. For starters, the mice and roaches were everywhere, her mom said. Harlan said she bought her daughter a bug bomb, and they set it off in her apartment. But what bothered Winston the most was the lack of security.
Winston tried repeatedly to get her kitchen window fixed.
Moran, Winston’s friend from grade school, recalls going to the management office more than once to help Winston file work orders. When she visited the office a final time, an employee said, “Be patient because they barely have maintenance men,” Moran said.
When that came to nothing, Harlan said she accompanied the petite 4’ 9” Winston — her family called her “Precious” — to the housing authority’s headquarters a couple of miles away.
A few weeks before her death, one of Winston’s sisters, Laquitsha Bejoile-Hayes, helped her lock the window with a broom handle and two nails. But a permanent repair was never made, and the security screen never arrived.
The inspection report noted that nearly half of inspected windows were inoperable or wouldn’t lock. More than a third had damaged or missing screens. This was out of a total of 25 units inspected between the John Robinson Homes and neighboring John DeShields Homes (the two sites are inspected together as one project).
Nationwide, the failure rate for public housing projects nearly tripled, to over 13 percent from about 4.5 percent, between 2015 and 2017. African Americans were disproportionately more likely to live in unsafe conditions, an analysis by The Southern Illinoisan and ProPublica of HUD inspection scores found. While apartment complexes are expected to pass routine inspections and fix problems in exchange for federal dollars, HUD rarely orders that they be closed and residents moved if that doesn’t happen.
During the past five years, at least 120,000 people, nearly half of them children, lived in public housing apartments that received repeated failing scores, the analysis found.
Earlier this year, Bejoile-Hayes asked Motley, who took over as executive director of the East St. Louis Housing Authority in late 2015, for copies of work order requests Winston had filed. Motley declined to provide them. Subsequently, The Southern Illinoisan submitted a public-records request for work orders from April to August 2017 for the development where Winston lived.
Among the roughly 130 requests for repairs, five were for window repairs. (Tenant names and unit numbers were not included for privacy reasons.) Of those five requests, the records show that an order to fix one broken window was closed on the day it was reported in late April. The others were not closed until at least mid-September, after Winston’s death, the records show.
Motley would not comment on any requests made by individual tenants, including Winston, to repair their units. She said in an emailed statement to The Southern Illinoisan that “window and screen replacements are major improvements which require capital funds.”
Scared to be in her apartment at night alone, Winston spent most nights at her mom’s home. But on Aug. 7, Winston decided to stay overnight at the John Robinson Homes. She had a hearing scheduled for that week at the nearby county courthouse to get child support for her daughter.
A few hours after Winston was killed, a police officer knocked on the door of her sister’s home in Belleville. Tynesha Bejoile was at work, so her fiancé answered. The officer asked him to have Bejoile call the police department as soon as she could.
When Bejoile called the police, she was told that there had been a tragedy in Winston’s apartment. The officer asked her if any immediate relatives could arrange to pick up Royal, who had been taken into the custody of the Illinois Department of Children and Family Services at the scene. “I asked if my sister was OK, and she said, ‘I can’t tell you that over the phone,” Bejoile recalled.
Bejoile-Hayes, another sister, left work and drove to their mom’s house. Florince Harlan, who was asleep, woke up to numerous missed calls, then got another from her ex-husband. A co-worker had told him that rumors were spreading on social media that Winston had been murdered in her apartment.
Bejoile-Hayes drove Harlan and Winston’s stepfather to the John Robinson Homes.
Around 8:30 a.m., they arrived at a scene filled with signs of tragedy: multiple squad cars in the parking lot, crime scene tape stretched across the apartment complex, and two armed officers guarding the front door of Winston’s apartment. Harlan collapsed in pain. Her ex-husband steadied her by the arm.
“That’s when I started screaming,” she said.
Eventually, she went to find Royal at a state office just a short drive away. An officer met Harlan there, and walked her over to the police station, where they confirmed that her daughter had been killed.
Winston’s mom and sisters spent the next 10 days planning burial services. In the days following her daughter’s death, Harlan said she kept thinking about the fact that her daughter had complained repeatedly about her unsecured apartment.
If the screen had been in place, “I think it would have saved her life,” she said.
Winston wasn’t the only East St. Louis Housing Authority tenant to die in the weeks before Carson’s visit. Last July 26, a fire broke out in an eight-story apartment complex for seniors known as the Orr-Weathers E-2 building, located about a mile from where Winston lived.
Derwin Jackson, a tenant in the building, said the alarm sounded loudly on the first floor, but was difficult for some tenants on higher floors to hear. “I’m on the sixth floor. I couldn’t hear it,” he said.
“I believe it’s going to take another life for them to even consider getting this building up to code like they are supposed to,” said Jackson, who was Jefferson’s cousin as well as his neighbor. HUD inspected the property a week before Jefferson died. Like Winston’s complex, it failed, scoring a 37 out of 100 points.
Willie McDaniel, who also lives in the building, said tenants have long complained about the building’s lack of security. People who are not authorized to be in the building sleep in the hallways at night, he said. McDaniel said that it’s not uncommon for feces and urine to linger in common areas for several days.
At a meeting last December, tenants asked for the housing authority to assign one of its security workers to patrol the hallways of this high-rise and others. The housing authority responded that security personnel visit the high-rises several times per day and monitor security cameras from their vehicles. But the housing authority “does not have sufficient resources to have Public Safety stationed at each high rise building,” according to responses included in the housing authority’s annual plan.
Terrell Wren, another resident in the Orr-Weathers high-rise, had a list of complaints, particularly about bedbugs. His bathroom is in shambles. In late April, a jammed hot water knob caused the water to run continuously. “It’s been like this going on three, maybe four months,” he said.
McDaniel said he’s so fed up that he organized a petition drive to Illinois Attorney General Lisa Madigan, asking her office to intervene. A half dozen tenants wrote to Madigan about bugs, frequent hot water outages, and security concerns they say they’ve raised for years. “Help!!!” one tenant wrote.
“They need to condemn this building,” McDaniel said.
Annie Thompson, a spokeswoman for Madigan, said the attorney general’s Consumer Fraud Bureau reviewed the complaints and determined that it does not have jurisdiction in the matter. The complaints will be forwarded to the East St. Louis Housing Authority and copied to HUD, Thompson said.
Lakena Harmon remembers hearing that Winston’s had been killed last August. It was all anyone talked about for several days. “I thought of, what if this happens to me, could this happen to me, and will these windows be able to protect me?”
Although Harmon didn’t know Winston, she thought of her when her own apartment was sprayed with gunfire this spring.
In mid-April, Harmon returned to the Samuel Gompers Homes from a get-together in Belleville. Friends and family had thrown her a gender reveal party. Excited to learn she was having a boy but worn out from the festivities, Harmon said she laid down on her bed at about 10 p.m.
Soon after, she heard what she thought was a rock hitting her window.
When she heard it again, Harmon realized it was gunfire and rolled off her bed, hitting the floor with her pregnant belly. The window shattered, leaving a bullet hole in her bedroom closet door. She was unharmed, but for weeks her window was covered with a plywood board.
As she waited for the window to be replaced, Harmon slept on a mattress in her living room. Then, about two weeks after her window was shot out, she awoke to the smell of raw sewage. “As soon as I put my feet on the floor, it’s all water, all water,” she said. She shuffled across her wet floor to the bathroom and threw up. Then, she started mopping up the mess.
Neighbors have had similar experiences. After the incident, Harmon’s doctor wrote a note for her to give to the housing authority saying she needed to be moved or have her apartment repaired as “exposure to raw sewage creates a health hazard for the patient.” The housing authority hasn’t responded, though, and Harmon said her apartment flooded again on July 31.
Since HUD ended its receivership, living conditions have remained bleak.
A recent assessment showed a staggering backlog of needed repairs at East St. Louis’ public housing complexes. The report said that it would cost $42 million to immediately renovate units and building systems to HUD standards and another $180 million over 20 years.
To put that in context, the housing authority only receives about $3 million each year from HUD for major repairs. It also receives about $9 million in federal operating subsidies, intended to cover the difference between the reduced rents charged to tenants and the estimated cost of managing the apartment complexes. Roughly three of every four dollars the housing authority receives comes from the federal government.
Kelly, the prosecutor who is running for Congress, has been critical of HUD’s lack of investment to improve the East St. Louis housing complexes. He said last September that he was concerned the agency had sought to distance itself from ongoing problems by returning control of the housing authority to local officials without giving them enough resources to fix its problems.
“The aging housing stock continues to deteriorate. The prior repairs have been plagued with inferior workmanship and materials and unskilled maintenance staff. The lack of maintenance staff has also taken a toll on timely repairs,” the local housing authority wrote in a brief report on the issue. In recent years, major systems such as plumbing, electrical, roofing and heating, have not been properly maintained, the report said.
Based on the projected annual funding from HUD for major system repairs, “it will take over a 70-year period to correct the deficiencies” identified by inspectors and in a separate assessment of property conditions.
Brown, the HUD spokesman, called Motley, the local housing authority executive director, “a glimmer of hope for housing in East St. Louis.”
“As committed as she is, she cannot do it alone,” Brown wrote. “There is a direct, indisputable correlation between housing and the local economy.”
The local housing authority “strives to meet HUD standards,” Motley said in an email. “Inspections have identified several items that need to be addressed, and we are in the process of addressing those items.”
Under the transition plan back to local control, the housing authority also was asked to improve security on its properties and track monthly crime statistics.
In April, police received three reports of home invasions and two of shots fired at the John Robinson and John DeShields apartment complexes, which combined house about 300 families. In May, police responded to an aggravated assault and two incidents each of aggravated battery and criminal damage to property. In June, police responded to a criminal sexual assault. At the John Robinson Homes, some windows are still missing security screens, and are sealed with boards and nails.
Winston’s daughter, Royal, is now living with Bejoile-Hayes, her husband and their children.
Bejoile-Hayes said it pains her to think of all the moments her sister is missing, like when her little girl turned 2 this January. Royal was in her pretty white dress, squealing with delight at her brightly colored Trolls-themed birthday party and a few of her favorite foods: a pancake bar with whipped topping, fresh strawberries and chocolate chips.
Late last month, Harlan sued the East St. Louis Housing Authority in St. Clair County Circuit Court, alleging that its failure to secure the window after Winston’s multiple requests contributed to her death. Any money collected will go into a trust fund for Royal’s continued care, Harlan said. She’s also hoping it sends a strong message to the housing authority and HUD about the importance of fulfilling work orders so that “nobody else’s child has to die in those apartments down there.”
The housing authority and HUD, which is not a defendant in the suit, both declined to comment on pending litigation. The housing authority has yet to file a response in court.
“You knew my child needed help,” Harlan said, “and you turned a blind eye.”
Republished with permission under license from ProPublica.
Displacement of black and Latino households was so dramatic, crisis should be seen as a 'mass migration event' says lead author of paper
The foreclosure crisis that drove approximately 9 million people across the United States from their homes disproportionately displaced black and Latino households and led to a spike in segregation along racial lines, a new study finds.
In fact, displacement was so dramatic that Matthew Hall, assistant professor at Cornell University and lead author of the study, told Common Dreams that the crisis should be seen as a "mass migration event."
"We found that the racial patterns of the foreclosure crisis are shocking and perhaps even more stark than we knew before," said Hall, who is a demographer.
Examining foreclosure rates in urban areas between 2005 and 2009, researchers found that black neighborhoods faced 8.1 foreclosures per 100 homes, and Latino neighborhoods faced a rate of 6.2 per 100 homes.
This compared with the average of 2.3 foreclosures per 100 homes in white neighborhoods, meaning that majority black and Latino neighborhoods faced home-loss rates at approximately three times that of white areas.
A report summary explains that "white households were significantly more likely to leave areas with high foreclosure rates, while black and Latino families entered these neighborhoods out of necessity or to seek newly affordable housing options."
This led to the re-segregation of urban areas.
Researchers concluded that overall segregation jumped dramatically during this period, growing by 50 percent between Latinos and whites and 20 percent between blacks and whites, as people of color moved into neighborhoods vacated by white people.
"This really was a crisis that hit African-Americans and Latinos especially hard," said Hall.
"But the foreclosure crisis has not ended," Hall added. "There are still a large number of foreclosures that are unresolved and homes that are somewhere in the foreclosure process, which can take years. The impacts of the crisis on segregation have therefore not been completely borne out."
Political leaders, police and news media always seem to be perplexed about violent crime, especially when it happens in unexpected areas. The recent incidents of criminal activity in downtown St. Louis prompted people to ask why some seem to have so little regard for others.
Mayor Slay pledged a crackdown on downtown St. Louis crime, but didn't promise a similar crackdown on crime in other areas. It's as if crime happening in other areas was unimportant or as if suddenly people are now committing illegal acts, but only in areas that matter. Evidently, murders and other crime that occur in some neighborhoods are less urgent than others.
Poverty and crime are related. The United Nations and the World Bank acknowledge poverty, oppression, inequality and lack of economic opportunities results in increased criminal activity. When inequalities are great, crime goes through the roof. When people see vast wealth differences, especially if the wealth disparity is based on injustice, crime becomes even worse. People who have nothing, often feel they have nothing to lose and they aren't that concerned about what others have to lose.
Before heroin addiction became an epidemic in white middle-class communities, drug addicts, especially black ones were treated as criminals which increased the vicious nature of some crimes. Factor in poverty and drug addiction and increased criminal activity is easy to understand. Common sense tells me that since drug addiction has increased in white communities, crime has already increased or will soon. Those white drug addicts consider their drug of choice a necessity and will do anything to get them. Drug distribution networks that government and law enforcement allowed to flourish during the black crack epidemic are now fully entrenched to supply the white heroin epidemic. Ironically, most of the black heroin addicts that I have learned about recently lived in predominately white communities.
The FBI ranks St. Louis as the top US city for violent crime. St. Louis was ranked as one of the most segregated and the third poorest city with a population over 200,000 in the United States. The City of St. Louis has a legacy of racism and corruption that has contributed to poverty and current crime problems. Ferguson should have been a wake-up call for the region, instead the St. Louis City Police Chief coined the phrase "Ferguson Effect", to indicated increased crime was caused by those complaining about oppression.
The entire St. Louis Region appears to be in denial about racial and economic injustice and oppression. St. Louis has the Delmar Divide, a street that divides communities by race which gained international attention a few years ago. St. Louis has a reputation of being a racist city. In the short documentary film, "Racism in St. Louis", one film creator explained that even a homeless man in New York mentioned how racist St. Louis was.
Many of the U.S. Supreme Court Decisions concerning St. Louis involved racial issues including the Dred Scott Case which was one of the major issues leading the country to Civil War. In fact, in 1847, William W. Brown stated, "no part of our slave-holding country, is more noted for the barbarity of its inhabitants, than St. Louis". Racial restrictive covenants were struck down by the U.S. Supreme Court in the St. Louis case of Shelley vs Kraemer.
Even the standard test of racial employment discrimination by the U.S. Supreme Court was created in the St. Louis case of Green vs McDonnell Douglass. Until St. Louis takes steps to correct past injustices, this city and region will continue to decline.
Maslow's Hierarchy of Needs Theory
Just about every college student learns about a motivational theory developed by Abraham Maslow in the 1940's. His theory is taught in a variety of subjects including education, psychology, business management and marketing.
Abraham Maslow's hierarchy of needs theory proposed that motivation is the result of a person's attempt at fulfilling five basic needs: physiological, safety, social, esteem and self-actualization.
Physiological needs are those needs required for human survival such as air, food, water, shelter, clothing and sleep. A person will do just about anything to meet these needs; including violent crime.This doesn't mean that only poor people commit crimes, but the motivation for committing those crimes are different.
People of means often commit crimes of greed, so-called "white-collar crime".
White collar crime is usually financially motivated, nonviolent crime committed by business and government professionals such as bribery, kickbacks, corruption, fraud, embezzlement, insider trading and a variety of other crimes. These are not victimless crimes. A single scam can destroy a company, devastate families by wiping out their life savings, or cost investors billions of dollars (or even all three). Today’s fraud schemes are more sophisticated than ever.
Poor people often commit crimes of need, based on perceived necessity or survival.
When a person can't feed himself or his family and can't find work what do you think they'll do? Starve? No, depending on their level of desperateness, they will do whatever is necessary. Some will borrow, some will seek public assistance if they qualify or beg, others will steal. Some time ago, the media was reporting how theft of Tide laundry detergent had dramatically increased and most recently, a shoplifter was shot trying to steal steaks and toilet paper. Those people were stealing food and other basic need items.
Many people facing hunger or homelessness believe they have nothing to lose, and nothing is more dangerous to society than a person who has nothing to lose. St. Louis needs to start addressing the causes of crime instead of just reacting to it.
Residents in a North St. Louis, Mo., community are battling to keep their homes as city officials pursue eminent domain proceedings for a federal project that may not even take hold in the area.
Eminent domain enables the government to take private property for public use as long as the government provides just compensation.
St. Louis officials have begun purchasing property and assessing the value of homes in the region to make way for the potential relocation of the National Geospatial-Intelligence Agency.
The federal government has not yet decided whether it would move the building to the area, leaving residents uncertain about the future of their homes.
The NGA currently resides in South City St. Louis, but officials are hoping the federal government will relocate the building to the city’s north side in an attempt to reverse “decades of divestment.”
John Wright, a policy researcher at the Show-Me Institute, which is based in Missouri and advocates for free-market solutions, said residents he’s spoken to “feel like they’re being thrown under the bus.”
Others have told Wright the project is nothing more than a land clearance project to rid certain types of people from the predominantly black, working-class community.
“What they say is that they want to revitalize the community,” Wright told The Daily Signal. “I don’t know how you revitalize a community by getting rid of everybody who lives in the community and replacing it with a federal spy agency.”
City officials have begun evaluating homes, offering some residents $20,000 to $30,000 for their property, according to Wright. He said that is not nearly enough compensation for individuals to afford another home in a similar low-crime community.
The houses in the North St. Louis neighborhood were built of brick in the late 19th century. Wright said purchasing a similar Victorian house in the city would cost between $300,000 and $400,000.
“People don’t want to move; they don’t want to leave their community,” he said. “Some of these people have had these houses for generations; some were purchased back in the ’60s. We have retired people on a fixed income who live in these houses, and now they’re going to have to pick up and move, and they don’t know where to go.”
City officials have already begun excavating properties to survey the land and have prevented a grocery store from moving into the area.
Paul Larkin, director of The Heritage Foundation’s project to counter abuse of the criminal law, said even eminent domain proceedings can destroy the value of the land.
“If you have a house and it’s worth $100,000 and the government decides it’s going to take your house, in theory they’re supposed to pay you $100,000,” Larkin told The Daily Signal.
“But if on Jan. 1 they announce they may be taking it, but they’re not sure and they’ve started the eminent domain process, you may no longer have a $100,000 house … because if you sell it to someone, that person is going to be subject to whatever the state wants to do with it.”
Residents in the North St. Louis community have posted anti-eminent domain and anti-NGA signs along with Bible verses around the neighborhood. Wright said one woman posted a biblical verse reading, “Thou shall not covet thy neighbor’s house.”
Wright said the neighborhood, which is already depressed from leveled houses and a shrinking population, is a tight-knit, family-oriented community. Dozens of homeowners could lose their property as early as this summer, forcing families and retired individuals to relocate.
“If they do this here, you’re kicking people out. You’re destroying a community,” he said. “These people don’t know where they’re going to go or what they’re going to do.”
Larkin said residents are never fully compensated for the loss of their homes because the government doesn’t pay for the personal value placed on property.
“Where you live is an important part of who you are. It’s how you define yourself,” he said. “It’s not simply a place that protects you from the elements, it’s not simply a place that has memories for you, but it has a way of becoming a part of who you are as a person, and now they’re going to take this person’s home away from them.”
A castle doctrine is a legal concept that a person's home or any legally occupied place; a vehicle or workplace, that person has certain protections and immunities permitting him or her, in certain circumstances, to use force up to and including deadly force to defend themselves against an intruder.
The castle doctrine removes the duty to retreat when the victim is assaulted in a place where the victim has a right to be, such as within one's own home. Deadly force may be considered justified, and a defense of justifiable homicide applicable, in cases "when the actor reasonably fears imminent peril of death or serious bodily harm to him or herself or another".
On Sunday, November 29th, a 13-year-old child was killed while trying to steal change from a car. Obviously, all the details are not known, but so far it doesn't seem as if the three kids, ages 11, 13 and 14 posed any type of danger to the person that shot and killed the 13-year-old.
Over the years, I have had cars stolen and broken into several times. My windows have been broken out at times simply for the change in an ashtray, I've had parts stolen from my vehicle including a radio and even my catalytic converter (part of the muffler system). As frustrating and upsetting as those events were, I did not then and still do not consider that theft worth someone's life.
As a society, we are placing too little value on life and seem to believe that making a bad decision or a very poor choice is an excuse to kill. The kids involved made very stupid choices and they should have known that they were placing themselves in danger by going into someone else's car, but should we authorize the death penalty for breaking into a car or even car theft.
That child's death is a tragedy and I would bet that the person if given a second chance, would choose not to pull the trigger. My heart goes out to both the family of the child who died and the 60-year-old man who shot the child. I'm certain he was devastated once he learned he had killed a 13-year-old child.
Hopefully, this situation will make thieves think twice before stealing and make people think before pulling the trigger over property. That vehicle could have been how the man made his living, making the car more valuable in his mind than for most. However, stealing from cars should not be punishable by death!
The primary purpose of the castle doctrine is to allow people to protect themselves from harm, not their property. Had the thieves not been kids, but armed criminals, the property owner may have been the one killed.
All kids have the potential to do stupid things and make bad choices. I made a bad decision in the past and I'm sure others reading this have as well.